Headlines (14 Oct 2009)

Date: 14 October 2009

Thought for the day

“One of the reasons many people don’t have what they want is neglect.”

 -—Jim Rohn

 GENERAL

1)An average 66 per cent of the voters exercised their franchise in the Assembly elections in Maharashtra, Haryana and Arunachal Pradesh held on Tuesday. While Arunachal Pradesh recorded a tentative 72 per cent, it was 66 in Haryana and 60 in Maharashtra.

 ECONOMY

 2)The European Union is hopeful of entering into a “deep and proper” free trade agreement (FTA) with India in 2010. The upcoming India-EU summit on November 6 will add impulsion to the FTA talks, a top European Commission(EC) official said.

BL

CORPORATE / INDUSTRY

3)The automobile sector is poised to break its boom year sales re- cord of 10 million units this financial year, thanks to the stimulus packages, new launches and festive discounts. Bolstered by a 21% rise in passenger car sales in September, preceded by five consecutive months of growth, industry body Society of Indian Automobile Manufacturers(Siam) on Tuesday projected double-digit growth for the sector this year. The projection earlier was at 4-5%.

FE

MONEY & BANKING

 4)In a paradigm shift for Indian banks, RBI may permit each of them to decide their own lending rates without reference to the bench- mark prime lending rate (BPLR), the common reference rate for all banks. An announcement could come in the central bank’s half- yearly review of credit & monetary policy scheduled for October 27.

FE

 5)United Bank of India’s (UBI) maiden public issue proposal is understood to have been cleared and forwarded by RBI to the finance ministry for its final approval. The Kolkata-based bank is hopeful of getting clearance from the finance ministry too.

ET

6)Punjab & Sind Bank, one of the two unlisted public sector banks in the country, is aiming to dilute government holding by 20-25% through initial public offer in the first half of the next fiscal.

ET

INSURANCE

 7)COMPETITION is set to intensify in India’s insurance sector, with new entrants waiting to launch life, non-life and standalone health insurance firms. Insurance regulator Irda, on Wednesday gave its penultimate approval to State Bank of India(SBI) for its proposed non-life joint venture with IAG of Australia and Bank of Baroda for a life insurance venture with UK insurer Legal & General and Andhra Bank, said J Hari Narayan, chairman, Irda.

ET

 IPO

 8)Manipal Universal Learning(MUL), the corporate entity of Manipal Education Group – India’s largest private player in the higher education space – is mulling an initial public offering (IPO).

BS

COMMODITIES

 9)The Multi Commodity Exchange of India Limited(MCX) has recorded the highest delivery of 5,000 kg in MCX gold Oct 09 expired contracts, an exchange official said. India’s rising appetite in gold as an investment and strong demand for gold jewellery in the festive season of Diwali has strongly coincided with record deliveries of proximately 5,000.19 kg observed in the MCX gold October expiry contract which witnessed the highest deliveries ever made on the echange platform in gold.

ET

10)TRACKING overseas gold, whose price has been catapulted by dollar weakness and fears of inflation, the precious metal in local markets shattered previous records on Tuesday. The prices jumped by Rs 130 to touch a historic high of Rs 16,385 per 10 gm in Kolkata, while Delhi saw a gain of Rs 25 to Rs 16,120, the metal rose by Rs 150 before ending the business at Rs 16,070 per 10 gm in Chennai. Mumbai, the largest market for gold in India, however, stayed away from the party as the market remained closed for the Maharashtra assembly elections. In European market, gold scaled a new peak of $1,068.30 an ounce on Tuesday as the dollar’s tumble to 13-month lows against the euro fuelled buying of the precious metals.

ET

11)Copper prices rose on Tuesday, with overall sentiment capped by concerns that prices had run ahead of weak demand, as a weaker dollar supported. By 1025 GMT, copper for three-month delivery on the London Metal Exchange was at $6,300 a tonne from $6,275 at the close on Monday and compared with a session high at $6,303.

BL

 REAL ESTATE

 12)UNITECH, India’s second biggest real estate player by revenue, reported on Tuesday that it has booked sales worth Rs 3,913 crore in the first six months of the fiscal 2010, selling 10.11 million sq ft, which is almost the same space sold by it in each of fiscal 2007 and 2008 – the boom years for real estate.

ET

COMMUNICATIONS

 13)FOR India’s cellular operators, Sri Lanka appears to be the next destination. Companies see a large potential in the island nation with 12 million mobile users out of a population of 20 million. Bharti Airtel, India’s largest mobile company, has been operating in Sri Lanka starting this year and has a subscriber base of over one million.

ET

BUSINESS PROCESS OUTSOURCING

 14)THE Essar group is considering merger of Essar Information Technology Holdings(EITH), which provides common services operations across the group with its BPO firm Aegis. The diversified Essar group formed EITH three years ago to consolidate common functions such as finance and accounting(F&A), human resources(HR), and payroll to its business arms in steel, oil, shipping, power, telecom and retail. The merger will help Aegis diversify into areas such F&A, HR and payroll, as well as bring industry-specific knowledge within the company. It will also help Aegis get a higher valuation when it goes public.

ET

INFORMATION TECHNOLOGY

 15)Indian companies and Internet Service Providers could soon get their IP addresses from a local body. The Government, along with the Internet Service Providers Association of India, has approached the Australia-based Asia Pacific Network Information Centre (APNIC) seeking powers to issue IP addresses in India through a National Internet Registry(NIR). Currently, anybody wanting to get their own IP addresses in the country has to apply directly to APNIC. Globally, IP addresses are controlled by the US-based Internet Corporation for Assigned Names and Numbers (ICANN). The process of applying for an IP address through APNIC is often time consuming and expensive. Therefore, most entities in India do not own their own IP addresses and simply take whatever their bandwidth provider allocates. If the Indian efforts to set up a local National Internet Registry(NIR) are accepted by APNIC member-countries, then it will enable local entities to get IP addresses faster and at a fraction of the cost.

BL

16)MphasiS Ltd, the India listed subsidiary of computer maker Hewlett Packard, plans to step up its focus in the domestic IT market where it is eyeing business from verticals such as health- care, government, telecom and banking and financial services.

BL

17)Virtusa, the Nasdaq-listed software company, is joining a list of US-based companies with offshore centres in India to tap business opportunities in the domestic market for providing information technology services.

BL

INTERNATIONAL

 18)The UK is now the world’s leading international financial centre, according to the World Economic Forum’s Financial Development Report released this week. The report, which ranks 55 of the world’s leading financial systems and capital markets, found the UK was stronger than Australia(second position) and the US (third) because of the “relative strength of its banking and non-banking financial activities”.

BL

19)American International Group has struck a deal to sell its Taiwan life insurance unit for $2.15 billion, marking its largest disposal of a unit since a government bailout saved it from collapse last year.

FE

20)World demand for Opec’s oil will be stronger than expected next year, the producer group said on Tuesday, adding to signs that an improving economic outlook will boost oil consumption. Demand for Opec crude will average 28.39 million barrels per day(bpd) in 2010, the Organisation of the Petroleum Exporting Countries said in a monthly report. That is up 300,000 bpd from its previous forecast.

FE

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

Karvy Consultants Ltd www.karvy.com
 www.khojhyderabad.com
 www.indiacorporateadvisor.com
 www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd www.KARVYGlobal.com
KARVY Realty (India) Limited www.karvyrealty.com
Economic Times www.economictimes.com
The Financial Express www.financialexpress.com
Business Line www.businessline.in
Business Standard www.business-standard.com
The Times of India www.timesofindia.com
The Hindu www.hindu.com
Deccan Chronicle www.deccan.com
The New Indian Express www.newindpress.com

Headlines (13 Oct 2009)

Date: 13 October 2009

 Thought for the day

“Every adversity carries with it the seed of an equivalent or greater benefit.”

 –Napolean Hill

 GENERAL

1)India successfully test-fired in quick succession two nuclear- capable Prithvi-II surface-to-surface missiles with a range of 350 km from the Integrated Test Range at Chandipur off the Orissa coast on Monday. The two indigenously developed missiles were test-fired successfully at 10:28 am and 10:33 am from mobile launchers as part of user trials by the Army, defence sources said.

TOI

ECONOMY

 2)INDUSTRIAL growth rebounded to a 22-month high of 10.4% in August as companies bumped up production to meet the strong demand for consumer durables. Electricity and mining sectors pitched in with a double-digit growth, forcing economists to revise their forecast of national income for 2009-10 by an average of half a percentage point.

ET

3)Foreign direct investment(FDI) inflows into India rose 40.37% in August at $3.26 billion against $2.32-billion FDI received in the same month last year, on higher investment by investors in expanding existing business operations in the country.

FE

CORPORATE / INDUSTRY

4)Welspun-Gujarat Stahl Rohren, the flagship company of the Welspun Group, has said its outstanding order-book has reached the Rs 10,000-crore mark. The figure in the order-book includes order executed during the second quarter of the financial year 2009-10.

BS

MONEY & BANKING

5)Riding on a strong surge in the equity markets, the rupee on Mon- day pared most of the losses but still ended down by eight paise at 46.48/49 against the US dollar.

 BL

6)BUOYED by a surge in loan disbursement, the country’s biggest mortgage lender HDFC reported a 24.2% rise in net profit for the second quarter ended September 30. Net profit for the three months rose to Rs 663.9 cr against Rs 534.2 cr in the year-ago period amid a 24% rise in loan offtake.

ET

7)Axis Bank on Monday posted a 32% rise in its net profit at Rs 531.64 crore in the second quarter of 2009-10 fiscal. The bank had recorded a net profit of Rs 402.91 crore in the corresponding period of the last fiscal.

FE

8)South Indian Bank Ltd(SIBL) on Monday announced 40.43% growth in net profit for the second quarter this fiscal compared to the cor- responding quarter previous year. “The bank has registered highest- ever quarterly net profit of Rs 72.57 crore during the second quarter of this financial year against Rs 51.68 crore for the same period last year,” bank’s MD&CEO VA Joseph said. “This growth is the highest ever in the 80 years of existence of the bank,” he added.

FE

INSURANCE

9)Insurance Regulatory Development Authority(Irda) is mulling options to allow banks to tie up with two to three insurance companies to sell their insurance products, a senior Irda official said. At pre- sent, banks cannot have tie ups with more than one insurer.

FE

MARKETS

 10)The domestic equity bourses started the week on a solid note after the latest data showed a surge in industrial output in August 2009. The 30-share Sensex of the Bombay Stock Exchange(BSE) surged 384.01 points or 2.31% to end the trading session above the psycho- logical 17,000 level at 17,026.67 points. On the other hand, the broader 50 share Nifty of the National Stock Exchange(NSE) closed the day at 5,054.25 points, gaining 2.21% or 109.05 points.

FE

11)FOREIGN funds have increased their holdings in a host of bluechip firms during the second quarter ending September, endorsing their faith in India and highlighting the allure of the country’s growth prospects as a hedge against a falling dollar. Of the 59 A-group companies that have so far released shareholding data for July-September quarter, foreign institutional investors(FIIs) have raised stakes in as many as 41 firms, many of them spanning sectors such as real estate, banking and pharmaceuticals.

ET

12)All markets, including the Bombay Stock Exchange, the National Stock Exchange, Forex, Money, MCX futures, Bullion and Oils and Oilseeds, will remain closed on Tuesday on account of Assembly elections in Maharashtra.

FE

 IPO

 13)The initial public offering (IPO) of Indiabulls Power got subscribed nearly six times on the first day of issue on Monday asinstitutional investors flooded the counter with maximum number of bids.

FE

14)Jubilant Foodworks, which runs the Indian franchise for global fast food chain Domino’s Pizza, on Monday filed an application with market regulator Sebi for an initial public offering to raise up to Rs 300 crore.

FE

STOCK SPLIT

15)The board of directors of Bajaj Electricals Ltd has approved the sub-division of equity shares from 1 equity share of Rs 10 each to 5 equity shares of Rs 2 each, to improve the liquidity of the equity shares with higher floating stock in absolute numbers, subject to approval of shareholders and other authorities.

FE

MUTUAL FUNDS

 16)A NEW investment theory is gaining favour with wealth managers and mutual funds, something that could soon replace the conventional systematic investment plans(SIPs) strategy. Termed value averaging investment(VAI), the technique allows investors to determine the size of investment needed (at the time of investing) to get desired returns. Value averaging works much like rupee cost averaging, which forms the basis of systematic investment plans. “While SIP investments are made on fixed dates, irrespective of market conditions, VA investments are made on dates when the markets look investible. The best aspect of VAI is that it enables investors to buy stocks at dips – a facility that is not really possible in SIPs,” said Nipun Mehta, head of Societe Generale Private Banking India.

ET

17)FIXED Maturity Plans or FMPs – that helped fund houses turbocharge their assets under management – appear to be making a comeback, albeit in a smaller way. Hardening interest rates, improving financials of companies and a taxation benefit are drawing some investors back to this close-ended debt product.

ET

18)Union Bank of India has received the approval from the Securities and Exchange Board of India to start its joint venture mutual fund company with Belgium-based KBC group. The JV-Union KBC Asset Management Company – expects to roll out its first MF product in the market as early as February, 2010.

ET

COMMODITIES

19)Gold prices rose back above $1,055 an ounce on Monday as the dollar turned lower against the euro, adding to upward pressure from rising oil prices and improving jewellery demand.

BL

20)Prices of silver coins on Monday touched an all-time high level of Rs 32,700 per 100 pieces in the bullion market in New Delhi on brisk buying ahead of Diwali. Silver prices spurted by Rs 230 to 27,550 a kg on emergence of buying by industrial units. Silver weekly-based delivery rose by Rs 210 to Rs 27,535 a kg. Mean- while, standard gold an ornaments rose by Rs 45 each to Rs 16,095 and Rs 15,945 per 10 gm, respectively. Sovereign held steady at Rs 12,950 a piece of 8 gm.

BS

21)Copper prices rose on Monday as a recent raft of improving data brightened the demand outlook, but optimism was capped by a fresh rise in inventories. Copper for three-months delivery on the London Metal Exchange traded at $6,285.50 a tonne at 0942 GMT from a close of $6,230 on Friday.

 BS

 COMMUNICATIONS

 22)INDIA’S communications regulator is all set to take the first steps towards permitting consolidation in the country’s fragmented telecom space in a bid to address concerns of both operators and the government that existing policies which act as roadblocks for M&As will destroy the sector. The regulator is examining several issues including changes in policy that will allow operators to buy each other out and sell spectrum or radio waves between themselves. Spectrum is the lifeline for telecom companies in India.

ET

BUSINESS PROCESS OUTSOURCING

 23)AN Increasing number of business process outsourcing(BPO) firms in India are now making a beeline to locations outside of the major metros with the focus of having lower operating costs and serving the local market. Aditya Birla Minacs, a top 10 BPO firm in India and part of the Aditya Birla Group, is adopting the ‘hub and spoke’ model to get into the tier-III and rural locations.

ET

INFORMATION TECHNOLOGY

 24)IN what could be an almost $7-billion services opportunity for Indian tech firms apart from other multinational rivals, top business software customers including Siemens are questioning heavy product maintenance fees paid to companies such as SAP and are exploring third-party maintenance with Indian tech firms among other global vendors.

ET

INTERNATIONAL

 25)Oil rose by more than $1 a barrel to a six-week high above $73 on Monday, supported by optimism about the pace of global economic recovery and indications of stronger oil demand.

BS

 FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

Karvy Consultants Ltd www.karvy.com
 www.khojhyderabad.com
 www.indiacorporateadvisor.com
 www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd www.KARVYGlobal.com
KARVY Realty (India) Limited www.karvyrealty.com
Economic Times www.economictimes.com
The Financial Express www.financialexpress.com
Business Line www.businessline.in
Business Standard www.business-standard.com
The Times of India www.timesofindia.com
The Hindu www.hindu.com
Deccan Chronicle www.deccan.com
The New Indian Express www.newindpress.com

Headlines (06 October 2009)

Date: 06 October 2009

Thought for the day

 “One who fears failure limits his activities. Failure is only the opportunity more intelligently to begin again.”

–Henry Ford

GENERAL

1)India now ranks 134th in the list of 182 countries ranked by the United Nations for quality of life its citizens enjoy. This is the same ranking as in 2008. The Human Development Index(HDI), on which India scored 0.612 this time compared to 0.604 last time, takes into account measures like life expectancy, literacy, school enrolment and GDP per capita.
 
Indian Express

CORPORATE / INDUSTRY

2)BEML Ltd, the public sector heavy equipment major, which is putting up a greenfield plant at Palakkad, Kerala, expects the upcoming unit to give the company a leg-up in the lucrative spare parts business. At Palakkad, the company intends to produce spares for both metro rail and aerospace industries.

BL

3)Consumer durables company Videocon Industries today said it has signed a Letter of Intent with Finnish contract manufacturing firm Elcoteq, aimed at buying stake in the foreign firm. The Finland- based company makes gadgets such as mobile phones and set- top boxes for Sony Ericsson, Philips and Cisco.

BL

MONEY / BANKING

 4)The rupee gained by about 25 paise to touch a two-month high,  despite weak domestic equity markets and the dollar strengthening against other major currencies. Strong capital inflows related to QIP issues were the reasons for the rupee gaining, said a forex dealer with a public sector bank. The rupee opened stronger at 47.65 and closed at 47.52, against Thursday’s close of 47.74.

BL

5)Oriental Bank of Commerce is planning to set up over 100 branches across the country to take the branch network to 1,500 with a total business mix of over Rs 2 lakh crore by March 2010.

FE

MARKETS

6)Indian equity indices snapped their winning streak and closed the day in red following weak cues from the global markets and profit- booking in the benchmark heavyweight during the trading session. The 30-share Sensex of BSE lost 268.14 points or 1.56% to close the day below the 17K mark at 16,866.41 points. The broader S&P CNX Nifty  of National Stock Exchange (NSE) was down by 80.20 points(1.58%) to end the day at 5,003.20 points. “Markets are likely to go down on the back of negative cues from the Asian and European markets. Domestic markets are likely to remain volatile due to lack of any major cues in the market,” said Ambareesh Baliga, vice-president  at Karvy Stock Broking Ltd.

FE

7)The Bombay Stock Exchange on Monday said stocks of 16 companies, including Adlabs Films, Gammon India and Kesoram Industries, will be included in the midcap index with effect from October 12. However, the scrips of Ballarpur Industries, JSW Steel and Koutons Retail India would be excluded from the mid-cap index with effect from  the same date.

FE

8)Matching an earlier move by its rival, the National Stock Exchange (NSE), the Bombay Stock Exchange(BSE) today announced a cut in transaction fee in the cash segment of the market from October 7. The NSE had announced similar cut from October 1. From October 7, the cost of transaction in BSE’s cash segment will be Rs 3.25 per lakh, compared to Rs 3.50 that the exchange charges now. This is in line with what NSE charges.

BS

IPO

9)The mad rush of 2006 may still be a distant memory, but India Inc is trying hard to make up for lost time as far as raising money from the capital market is concerned. Last month saw 30 companies filing their draft red herring prospectuses(DRHPs) with the market regulator for initial public offers(IPOs), a sharp increase from six in August and three in July this year. The Securities and Exchange Board of India received eight filings in September last year, the month the Lehman Brothers meltdown brought the world economy to its knees. Prime Database Managing Director Prithvi Haldea says this year, the September rush is even greater than earlier years because companies are returning to the primary  market after a year’s gap.

BS

10)AIM-listed integrated studio operator Eros International Plc is planning to list its wholly-owned Indian subsidiary on the Bombay Stock Exchange in the current financial year.

FE

MUTUAL FUNDS

 11)Mutual fund companies, witnessing a good inflow into gold ex- change traded funds (ETFs) thanks to the festival season, are hopeful of mopping up fresh investments if there is a correction in gold  prices.

BL

12)ING Mutual Fund today declared a 20% dividend under its open- ended equity scheme ING CUB Fund. The record date for dividend of this scheme is October 9, the company said in a statement.

FE

COMMODITIES

 13)In a move that could debar rural farmers from futures trading plat- forms, the Forward Markets Commission (FMC), the commodity  derivatives market regulator, has levied a penalty of 0.5 per cent on cash transactions over Rs 20,000. The penalty is effective immediately. The FMC, in a circular to the commodity exchanges, has asked members not to accept cash from clients, either against obligations or as margin money, for trading in commodity derivatives.

BS

14)Gold prices on Monday declined by Rs 50 to Rs 15,800 per 10  gram in the bullion market as retailers and stockists refrained from buying the metal at higher levels. Silver, however, gained Rs 50 to Rs 26,100 a kg on buying by industrial units.

BS

15)Pepper futures on Monday shot up on bullish reports that the production in Karnataka and Kerala would be down as also in Vietnam and Indonesia due to heavy rains, floods and earthquake.

BL

REAL ESTATE

 16)HDFC Asset Management Company(AMC) has picked up a 10%  stake in Bangalore-headquartered real estate firm Nitesh Estates for Rs 100 crore, said banking sources privy to the development.  The transaction comes at a time when Nitesh Estates is working  towards an initial public offering in the last quarter of the current fiscal.

ET

17)Milestone Real Estate Fund said it has invested Rs 110 crore into a residential project in Kolkata. Jointly developed by Milestone & Godrej Properties, this 3-million square feet project aims to  bring a prestigious residential complex to Kolkata, a company re- lease said.

FE

COMMUNICATIONS

 18)A consortium comprising India’s telecom PSUs BSNL and MTNL, among others, today said it had started negotiations for acquiring control of Kuwait’s biggest phone company Zain Telecom that has presence in 24 countries.

BS

19)THE Telecom Regulatory Authority of India(Trai) plans to ask all mobile service providers to bill customers per seconds of actual usage, in a landmark move that will benefit 450 million customers at the cost of telcos that could face a 15% fall in revenues.

ET

20)Reliance Communications has launched a new tariff plan for its GSM and CDMA customers where all calls will cost 50 paise a minute. The ‘Simply Reliance Plan’ will be available from Tuesday for pre- paid and post-paid users. This single rate of 50 paise a minute applies to all local and STD calls, to any mobile CDMA or GSM or landline from anywhere in India.

BL

BUSINESS PROCESS OUTSOURCING

 21)ADITYA Birla Minacs, among India’s top 10 BPO firms, has snapped up a Rs 600-crore fresh outsourcing deal from Ideal Cellular,  strengthening its presence in the domestic market. The deal, spread over five years, is perhaps one of the largest BPO contracts in the domestic market in recent times.

ET

INFORMATION TECHNOLOGY

 22)With green shoots emerging in the global economy, and top Indian information technology(IT) companies like Tata Consultancy Services (TCS), Infosys Technologies, Wipro and HCL Technologies bagging large deals over the last three months, analysts expect the Q2(July- September 2009) results to be better than the last few quarters.

BS

23)CLOSE on the heels of clinching an IT outsourcing deal with  Etisalat DB, the Indian arm of Emirates Telecom, Tech Mahindra is learnt to have won another deal for a greenfield IT implementation for a telecom major in the Middle East. The IT firm has won a  deal with Saudi Telecom, which is rolling out GSM services in  Bahrain, said a person familiar with the development.

ET

24)Hospital chain, Fortis Healthcare on Monday announced a five- year outsourcing deal estimated to be over $15 million with IT  major HCL Infosystems for implementing software solutions at all its facilities.

FE

INTERNATIONAL

 25)Oil eased below $70 a barrel on Monday, extending the previous session’s losses, pressured by concern over the pace of US econo- my recovery and any revival in energy demand.

BS

26)Norway’s Telenor and Russian partner Alfa Group have agreed to  merge their Russian and Ukrainian holdings into a New York listed mobile operator worth over $23 billion, ending one of the longest ever Russian corporate wars.

BS

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

 Karvy Consultants Ltd www.karvy.com
 www.khojhyderabad.com
 www.indiacorporateadvisor.com
 www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd www.KARVYGlobal.com
KARVY Realty (India) Limited www.karvyrealty.com
Economic Times www.economictimes.com
The Financial Express www.financialexpress.com
Business Line www.businessline.in
Business Standard www.business-standard.com
The Times of India www.timesofindia.com
The Hindu www.hindu.com
Deccan Chronicle www.deccan.com
The New Indian Express www.newindpress.com

Headlines (30 Sep 2009)

Date: 30 September 2009

Thought for the day

“You can do anything in life you set your mind to, provided it is powered by your heart.”

—Doug Firebaugh

GENERAL

1)International Atomic Energy Agency (IAEA) Director-General Mohammad ElBaradei on Tuesday acknowledged India as a “leading advocate” for nuclear disarmament and felt the world must listen to its “voice” for the elimination of nuclear weapons. In the civil nuclear arena, he described India as a “role model” for developing countries and wanted them to gain from its technological expertise.

Hindu

CORPORATE / INDUSTRY

 2)The trickle has turned into a deluge. India’s Inc’s order book has more than doubled to an all-time high of Rs 73,320 crore in the second quarter of the current financial year compared to the first quarter. On a year-on-year basis, the increase is 21 per cent. An analysis of order book announcements by 63 companies shows that capital goods, engineering and infrastructure have led the way, cornering 86 per cent (Rs 63,439 crore) of the total orders. The remaining Rs 9,881 crore went to gems & Jewellery, pharmaceuticals and telecom. Larsen & Toubro (L&T) topped the list with new orders worth Rs 14,253 crore.

BS

3)Tamil Nadu-based India Cements Ltd(ICL) has firmed up plans to produce power to meet its current and future requirements. As part of its strategy to become an integrated cement company, it is looking to acquire a coal mine in Indonesia and an overseas gypsum producer to meet its fuel, as well as raw material requirement.

FE

MONEY / BANKING

 4)The rupee fell by around 14 paise against the dollar on Tuesday, in a range-bound market. It opened at 48.05 and touched an intraday high of 47.98. It weakened to close at its day’s low of 48.11, against the previous close of 47.97.

BL

5)Mid-size state-run banks should “seriously” look at consolidation and mergers in the next 5-10 years, the Union Finance Secretary, Mr Ashok Chawla, has said. This was necessary to come out with a banking structure that was not only efficient and optimally regulated as in the past, but with bank balance-sheets and asset sizes that correspond to the needs of the growing economy, Mr Chawla said after launching Vijaya Bank’s mobile banking service in the Capital on Tuesday.

BL

6)IDBI has reduced interest rate on home loan and auto loans. The bank will charge 8.75% for Rs 30 lakh home loan against 9% charged earlier, 9%(9.5%) for Rs 50 lakh and 9.25%(9.50%) for above Rs 50 lakh loan. The above rates are on floating rates basis linked to bank’s prime lending rate which is 12.75%.

ET

MARKETS

 7)Gains in technology stocks and buying by funds in index heavyweight Reliance Industries helped shares end higher on Tuesday. Sensex climbed 159.91 points, or about 1 per cent to settle at 16,852.91. It traded between 16,802.80 and 16,907.84 during the session. “Foreign institutional investors are consistently buying. Fund flow is so aggressive that it’s hard to play against the momentum,” Mr Suhas Samant, a fund manager at brokerage Sharekhan, said. On the NSE, the 50-stock S&P CNX Nifty rose 47.90 points, or about 1 per cent, to 5,006.85.

BL

8)Sebi chairman CB Bhave on Tuesday said the markets regulator will focus on listed companies which are not ready to provide information to independent research units. Sebi will also go beyond the statutory disclosure norms and look at independent research agencies for more details. Speaking at the launch of independent equity research(IER) by Crisil, Bhave said disclosing such information will ensure transparency and help investors to understand their investment decisions better.

FE

IPO

 9)Draft public offer documents for any issue size of Rs 50 crore or less are to be filed with the regional SEBI offices assigned to States and Union Territories, the markets regulator said in a circular on Tuesday.

BL

10)THE cash-starved realty sector is sprinting to the market regulator Sebi to raise around Rs 14,000 crore or $3 billion in initial public offers(IPOs). At least seven realty companies, including Lodha Developers, Sahara Prime city, Emaar MGF and BPTP, have either filed the draft red herring prospectus (DRHP) with Sebi since Friday or plan to do it on Wednesday.

ET

11)PIZZA chain Domino’s Pizza India, 67% of which is owned by the Delhi-based Jubilant Group could go for its maiden public issue to pave an exit route for its private equity(PE) partner JP Morgan who wants to sell its 33% stake, three people familiar with the matter said asking not be named. While the details of the proposed initial public offer (IPO) is not known, a listing would make Domino’s Pizza India the first eatery chain in the country to be traded publicly.

ET

MUTUAL FUNDS

12)Religare Mutual Fund has launched a PSU fund which will invest in state-owned firms, especially those that are likely to benefit from the divestment process and reforms. The ‘Religare PSU Equity Fund’ opened on Tuesday and will close on October 28. The fund will invest 65 per cent of its assets in companies in the BSE PSU index and the remaining 35 per cent in other PSUs.

BL

COMMODITITES

13)Gold firmed on Tuesday as the market attempted to consolidate recent bouts of speculative selling, but gains were limited as the dollar maintained its edge over the euro, leaving the metal exposed to further falls. Spot gold stood at $991.50 a troy ounce by 1007 GMT, compared with $989.95 quoted late in New York on Monday.

BL

14)Gold prices declined further on the bullion market on Tuesday on lack of local buying interest at higher levels. Silver also moved down in the absence of demand from industrial users. Standard gold (99.5 purity) declined by Rs 30 for ten gm to close at Rs 15,525 from the previous closing level of Rs 15,555. Pure gold (99.9 purity) also fell by Rs 35 for ten gm to Rs 15,600 against Rs 15,635. Silver ready(.999 fineness) too looked down by Rs 35 a kg to end at Rs 26,205 from its previous close of Rs 26,240.

BL

REAL ESTATE

15)FOR nearly three decades, politicians from Norway to New Delhi were flying to Colombo to facilitate peace in Sri Lanka. Now corporate executives from Larsen & Toubro’s AM Naik to Omaxe’s Rohtas Goel may join author-investorJim Rogers in flying to the once wartorn Indian Ocean island to share a pie of the future prosperity. L&T, Omaxe, Puravankara Projects are among those lining up to build projects anticipating an economic surge in Sri Lanka expected to happen after a bloody war. They are planning to build shopping complexes, residential homes and much more.

ET

16)Realty firm Omaxe on Tuesday said it would develop four new housing projects at an investment of Rs 1,500 crore over the next three years. It is mulling increasing prices of existing projects within three months.

FE

COMMUNICATIONS

 17)THE Bharti-MTN talks entered the last round as the final decision from the South African government is expected today, the last day of the exclusivity period between the two companies. A source close to finance ministry said that the Indian government is waiting for its South African counterpart to revert with a new deal structure that will comply with Indian laws.

ET

BUSINESS PROCESS OUTSOURCING

 18)The global information technology and business process outsourcing market will end 2009 with total revenues of $373 billion, 14.4 per cent higher than the $326 billion recorded in 2008. India and China will remain at the top of the list, with expected revenues amounting to $48 billion and $28 billion, respectively. India would have 44.8 per cent of the total outsourcing pie and China 25.9 per cent, ac- cording to Canadian-based ICT research and advisory firm XMG Global.

BL

INFORMATION TECHNOLOGY

19)Tata Consultancy Services(TCS) will provide end-to-end system integration services to Carnation Auto, a Jagdish Khattar initiative. The multi-year agreement envisages TCS as the full service provider responsible for enterprise IT solution implementation and includes business consulting, technology implementation & support.

BS

20)Larsen & Toubro (L&T) Infotech on Tuesday said it has bagged a multi-year, multi-million dollar contract from a large German semi- conductor manufacturer, Infineon Technogies AG(IFX). L&T Infotech is the unlisted technology arm of Rs 40,480-crore engineering and construction conglomerate, L&T.

FE

21)MINDTREE, the IT and product engineering services firm has acquired the Indian subsidiary of Kyocera, with an upfront payment of $6 million. This acquisition will give MindTree around 600 people in Bangalore and will strengthen its engineering services business.

ET

INTERNATIONAL

 22)The UK economy shrank less than previously estimated in the second quarter and mortgage approvals stayed near the highest in more than a year last month, a sign Britain is emerging from recession. Gross domestic product fell 0.6% from the first quarter, compared with a prior measurement of a 0.7% drop, the Office for National Statistics said on Tuesday in London.

FE

23)BNP Paribas SA, France’s largest bank, said it will raise 4.3 billion euros($6.3 billion) in a rights offer to help repay government funds. BNP Paribas is offering existing investors 107.6 million shares at 40 euros each, or 29% below Monday’s closing price, the Paris-based bank said on Tuesday.

FE

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 Karvy Consultants Ltd www.karvy.com
 www.khojhyderabad.com
 www.indiacorporateadvisor.com
 www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd www.KARVYGlobal.com
KARVY Realty (India) Limited www.karvyrealty.com
Economic Times www.economictimes.com
The Financial Express www.financialexpress.com
Business Line www.businessline.in
Business Standard www.business-standard.com
The Times of India www.timesofindia.com
The Hindu www.hindu.com
Deccan Chronicle www.deccan.com
The New Indian Express www.newindpress.com

Headlines (25 Sep 2009)

Date: 25 September 2009

Thought for the day

“A feeling of confidence and personal power comes from facing challenges and overcoming them.”

-—Brian Tracy

 GENERAL

1)Satellite Oceansat-2, launched by PSLV-C14 on Wednesday, is doing “absolutely fine” and the onboard camera, called the ocean colour monitor (OCM), has taken pictures of the Arabian Sea, off the coast of Gujarat’s Kutch region, an Indian Space Research Organisation official said.

Hindu

ECONOMY

 2)Essential prices rose on a yearly basis, fuelling inflation to 0.37 per cent during the second week of September from 0.12 per cent a week ago, when it first made it into positive territory after a gap of 13 weeks.

BS

CORPORATE / INDUSTRY

3)Bharat Heavy Electricals Limited (BHEL) said that it has bagged an order from the Nuclear Power Corporation of India Limited (NPCIL) worth Rs 365 crore. The order is to supply four steam generators for the country’s second 700-MWe nuclear power station, being set up at Rajasthan Atomic Power Project, Kota.

BS

4)Soon after bagging over Rs 5,000 crore worth of orders from the Oil and Natural Gas Corporation(ONGC) for the Mumbai High North (MHN) process platform and living quarter’s project, Larsen & Toubro (L&T) on Thursday said it has received a Rs 2,000-crore order from GMR Energy Limited, a GMR Group company, for setting up a 2×384 mw gas-based power plant at Vemagiri, near Rajamundry in Andhra Pradesh, on a lumpsum turnkey basis.

FE

5)Wockhardt Ltd has bagged an award instituted by the government of India as the recognition for being the pharmaceutical company with the maximum number of patent filings and grants from India. Wockhardt has been granted 70 patents, 15 from the Indian Petent Office and 55 from the American and European patent offices. Wockhardt has a team of over 500 scientists working in its R&D centres.

FE

 MONEY / BANKING

 6)The rupee gained on Thursday tracking the recovery in the domestic equity market and on the back of good dollar inflows. The month- end dollar demand was absorbed by good inflows, said a forex dealer with a public sector bank. “The overall trend of the rupee is to gain against the dollar. Although there is month-end demand from oil companies, there are persistent dollar inflows,” he said. The rupee opened at 48.18 and closed at 47.96, slightly higher than the previous close of 48.

BL

INSURANCE

 7)Assets under management (AUM) of private insurance company ICICI Prudential Life have crossed $10 billion (Rs 47,000 crore), according to the company’s managing director V Vaidyanathan. Of the total assets, the private insurer has parked Rs 30,000 crore in the capital market and the remaining in debt instruments. The company’s assets under management stood at Rs 43,000 crore as on June 30, 2009.

FE

PENSION

 8)The Pension Fund Regulatory & Development Authority has shortlisted Crisil Fund Services as the institutional adviser in framing guide- lines for the pension sector. “Crisil Fund Services would advise us on the technical aspects and provide assistance in framing regulations and rules. We have sent them the letter,” an official with PFRDA said. Besides Crisil, KPMG and PricewaterhouseCoopers were among the other firms in the race to help PFRDA in coming out with the guidelines.

FE

MARKETS

 9)Key equity indices bounced from the day’s lows to close with small gains on Thursday. Dealers attributed the volatility to the derivative contracts expiry, as old positions were squared up and fresh ones created. BSE’s 30-share Sensex closed at 16,781.43, a gain of 61 points over the previous close, after seeing a low of 16,494 earlier in the session. NSE’s 50-share Nifty rose 16.60 points to close at 4986.55. Market breadth continued to be in favour of the bulls, with gainers outnumbering losers 1466 to 1289. Foreign institutional investors continued with their aggressive purchases, net mopping up over Rs 1000 crore worth of shares.

 ET

10)BHARTI Airtel, which has underperformed the benchmark Sen- sex ever since it revived a plan to merge with South Africa’s MTN Group, may surge if the deal falls through, as it would put an end to uncertainty about the future of a combined entity with differing management styles, structures and some imponderables, investment advisors say.

ET

11)DELIVERY-based volumes have seen a substantial improvement in the Bombay Stock Exchange(BSE) in the past few months, reflecting strong buying interest among institutional buyers. The daily average delivery-based volumes on BSE shot up to 42.4% of the total volumes in September, compared to 38.2% in August and 34.8 in July. The current month’s figure is the highest recorded since April last year.

ET

IPO / FPO

 12)Reliance Infratel, a subsidiary of Reliance Communications, filed a Draft Red Herring Prospectus(DRHP) with market regulator Sebi on Thursday for its proposed initial public offering(IPO). The company received shareholders’ approval on Tuesday for an initial share sale of 10 per cent.

BS

13)THE government is considering the proposed public offer of state owned SAIL, proceeds of which will be used to part fund the steel giant’s Rs 70,000 crore expansion project. “The matter of follow- on public offer(FPO) is under the consideration of the ministry of steel,” an official familiar with the matter said.

ET

14)Thinksoft Global, whose Rs 47-crore initial public offering was scheduled to close on Thursday, has extended the IPO till October 1 and reduced offer price as the issue was not fully subscribed. The price band, which was at Rs 120-130, has been revised to Rs 115-125.

BL

MUTUAL FUNDS

 15)In a bid to protect the interests of retail investors, the Securities and Exchange Board of India(Sebi) is planning a clear segregation of retail and institutional schemes. Sources said Sebi might ask fund houses to create separate portfolios and net asset values (NAVs) for retail and institutional schemes.

BS

16)Reliance Mutual Fund on Thursday launched Reliance Fixed Horizon Fund-XIII-Series 4. The new fund offer of the 20-month plan would close on Tuesday, said an official from the fund house. The close- ended income scheme will invest its corpus in central and state government securities and other fixed income instruments maturing in line with the schemes.

BS

 COMMODITIES

 17)Gold ticked higher on Thursday, supported by recent dollar weakness and as risk-averse investors sold equities ahead of the Group of 20 summit meeting. Spot gold stood at $1,013.5 an ounce by 0920 GMT, from $1,007.05 quoted in New York on Wednesday.

BL

COMMUNICATIONS

18)The South-African delegation, comprising top officials from the national treasury and the South African Reserve Bank, met senior officials of Sebi and RBI on Thursday to discuss various possibilities regarding the issue of dual listing and mandatory open offer, which have emerged as a thorn in the proposed $23-billion Bharti- MTN deal. Though nothing was officially disclosed, sources said nothing concrete emerged from the meeting, which lasted for more than two hours.

FE

19)Telecom player Spice Communications on Thursday said it has received the approval from shareholders, secured and unsecured creditors of the company for amalgamation with Idea Cellular. The meeting was held on the directions of the Delhi High Court on September 11 to discuss the scheme of amalgamation, the company said in a filing to the Bombay Stock Exchange.

FE

20)After toppling rival Bharti Airtel by adding the highest number of sub- scribers in a month, Tata DoCoMo has said it will keep the momentum going as it takes its GSM service to new cities. The telco added over 3.4 million customers on both GSM and CDMA platforms during August, compared to 2.8 million by Bharti Airtel.

BS

BUSINESS PROCESS OUTSOURCING

21)A year after the Department of Telecommunications (DoT) conditionally relaxed rules on IT-BPO employees working from home, Raman Roy, chairman & managing director of Quatrro BPO Solutions, has started pilot projects in Mumbai and Delhi to explore the possibility of scaling up the model. Quattro is the first BPO to have secured per- mission for this model from DoT.

BS

INFORMATION TECHNOLOGY

 22)TECH Mahindra, IBM and TCS are in the race for a $400-million (Rs 1,800 crore) IT outsourcing contract from Sistema Shyam Tele- services(SSTL), a person familiar with the matter said. Negotiations are on with these companies for a 10-year deal, but the contract will contain a clause that will allow Sistema Shyam to exit after five years, he said, requesting anonymity.

ET

 23)INDIA’S top tech firms, along with multinational rivals, are preparing to bid for a key enterprise resource planning(ERP) project of the United Nations, named ‘Umoja’. Enterprise software maker SAP has already been awarded the contract for the ERP software, and the UN will start inviting bids for system integration and services, estimated to be worth up to $300 million early next year.

ET

24)US-based conglomerate General Electric (GE) has extended its multi-million dollar contract with Mahindra Satyam for three years starting January 1, 2010, giving a boost to the IT firm which has started winning new outsourcing deals. Mahindra Satyam, which also counts Citigroup, GlaxoSmithKline, Cisco Systems and Nissam among its clients, is one of the top three vendors for GE. Its contract with GE has been for over a decade now in specialised areas of development, maintenance, business intelligence and engineering services.

ET

INTERNATIONAL

25)Oil prices dropped more than $2 towards $66 a barrel and were on track to fall nearly 7 per cent this week as a surprise jump in US crude and product stocks stirred doubts that prices may have run ahead of demand fundamentals.

BL

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 www.khojhyderabad.com
 www.indiacorporateadvisor.com
 www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd www.KARVYGlobal.com
KARVY Realty (India) Limited www.karvyrealty.com
Economic Times www.economictimes.com
The Financial Express www.financialexpress.com
Business Line www.businessline.in
Business Standard www.business-standard.com
The Times of India www.timesofindia.com
The Hindu www.hindu.com
Deccan Chronicle www.deccan.com
The New Indian Express www.newindpress.com

Headlines (19 Sep 2009)

Date: 18 September 2009

Thought for the day

“Every worthwhile accomplishment, big or little, has its stages of drudgery and triumph; a beginning, a struggle and a victory.”

– Mohandas Gandhi

GENERAL

1)A SMALL Indian rover, wheeling the country’s hopes on the lunarscape, will travel to the moon on Chandrayan-II. This will be in addition to the Russian rover, one of the main payloads on board the second moon mission, making this one of the first missions to carry two robotic payloads on it.

Indian Express

ECONOMY

2)ANNUAL inflation as measured by the wholesale price index(WPI) moved into positive territory (0.12%) for the week ended September 5 after remaining in the negative for thirteen straight weeks following a further increase prices of food articles, a release by commerce ministry on Thursday showed.

ET

3)Economic think-tank CMIE has revised upwards the country’s economic growth forecast to 5.9% for this fiscal from its earlier projection of 5.8%. The recovery would come on the back of a 6.4% expected growth in the last quarter of FY’10, Centre for Monitoring Indian Economy(CMIE) said in its report on the state of the economy.

ET

CORPORATE / INDUSTRY

 4)UK-BASED GlaxoSmithKline(GSK) is in talks to buy a 5% stake in Dr Reddy’s Laboratories (DRL), four months after it entered into a marketing alliance with India’s second-largest drugmaker. Sources privy to the development said the deal may be priced at $150 million (Rs 730 crore) and could be clinched in two months if talks stay on track.

ET

5)Power equipment maker BHEL has recorded an alltime high turn- over of Rs 28,033 crore in the 2008-09 financial year. The state-run company’s exports also rose 41 per cent to Rs 3,265 during the year, Chairman and Managing Director K Ravi Kumar said, addressing the 45th Annual General Meeting of the company today.

BS

6)Thermax on Thursday announced its entry into the independent power producer (IPP) segment by bagging an order for the turnkey supply of a 270 mw power plant being set up by a Hyderabad based infra- structure company. The contract is valued at Rs 1,001 crore.

FE

MONEY / BANKING

7)The rupee on Thursday breached the 48-level to touch a one-month intra trade high before closing higher by 8 paise at 48.15/16 against dollar on heavy capital inflows amid sustained weakness in the US currency overseas.

BL

8)State Bank of India, India’s largest lender, was looking at acquisitions of up to $1 billion in the UK and expected to maintain a 40 per cent growth rate in its UK business, senior officials said on Thursday.

BS

9)The currency futures trading clocked the highest daily turnover of Rs 14,780 crore on both the National Stock Exchange(NSE) and MCX-SX on Thursday. The NSE currency derivatives registered total contracts of 15,01,209 aggregating Rs 7,219.22 crore on Thursday. Rupee futures registered an open interest of 4,31,359 lots, the NSE data said. The MCX-SX volume also zoomed to 15,71,638 lots aggregating Rs 7,560.97 crore. The MCXSX September rupee futures opened at 48.12.

ET

INSURANCE

 10)After exiting from its IT outsourcing outfit, financially battered American International Group (AIG) is now gearing up to sell its 26% in Tata AIG Life Insurance to its Indian partner. Tata, which holds 74% in the life insurance joint venture, has roped in consulting & auditing firm KPMG to structure the deal. However, AIG will continue in another joint venture, Tata AIG General Insurance.

FE

MARKETS

 11)Despite volatility throughout the trading session, the country’s equity indices managed to end the day with marginal gains shedding the days gains following huge sell-off in the benchmark heavyweight. The 30-share Sensex of the Bombay Stock Exchange added 34.07 points or 0.20% to end the day at 16,711.11.

FE

12)The S&P CNX Nifty today crossed the psychological 5,000 mark, for the first time since May 21,2008, on the back of sustained buying by foreign funds and on news of a speedy economic recovery. Rally in other Asian stocks and strong US economic data also boosted the market. The Nifty opened at 4,958.55 and soared to 5,003.05. How- ever, after hitting the 5,000 mark, it slipped to a low of 4,944.15. It finally ended on a flat note at 4,965.55, up 7.15 points, or 0.14 per cent.

BS

13)Reliance Industries’ sale of its own shares has kept the market abuzz with talks that the company may be looking at overseas asset acquisition. Reliance Industries-owned Petroleum Trust gained Rs 3,188 crore through the sale of 1.5 crore treasury shares of RIL on Thursday.

BL

14)Private airlines’ stocks, on Thursday, gained greater heights amid sudden rise in trading activity. SpiceJet witnessed bulk deals on the BSE. In one deal, Citigroup Global Markets Mauritius bought 36.80 lakh shares, representing around 1.5 per cent in the economy airlines from an unknown seller at Rs 34.41 a share.

BL

IPO

15)With strong response from retail and non-institutional investors, the initial public offer(IPO) of private ship builder Pipavav Ship- yard on Thursday got subscribed over three times on its second day of issue. The offer, through which the company hopes to raise funds up to Rs 513 crore, to over 25 crore bids for shares of the company against seven crore shares on offer.

FE

16)HDFC Mutual Fund is planning to float an initial public offer(IPO) by early 2010, industry officials said today. “The fund house is planning to list itself in January ,” a leading mutual fund distributor said.

BS

MUTUAL FUNDS

 17)Indian mutual fund houses are continuing to launch funds for investments in China. Following the footsteps of JP Asset Management Company, Mirae Asset Global Investment(India) on Wednesday floated its China fund. JP Asset in July launched Greater China Equity Off-shore Fund, which collected Rs 53 crore out of the total Rs 400 crore garnered by overseas-bound funds. These funds, which aims to provide long-term capital appreciation, have attracted interest fromcorporates, institutions as well as retail investors.

FE

18)IDFC Mutual Fund on Thursday said IDFC Money Manager Fund-Investment Plan A&B from Friday will levy an exit load of 1 per cent if investments were redeemed within 120 days from date of allotment. Currently, the scheme levies an exit load of 0.50 per cent on redemption within 45 days from allotment.

BS

COMMODITIES

 19)Gold prices hit 18-month high for a second consecutive session on Thursday as the dollar slid to one-year lows versus the euro, fuelling buying of the precious metal as an alternative asset. Traders said if dollar weakness persisted, the precious metal’s previous record high of $1,030.80 an ounce was likely to fall. Spot gold rose to $1,020.55 an ounce at 0932 GMT from $1,016.70 late in New York on Wednesday.

BL

REAL ESTATE

 20)INDIAREIT Fund advisors, which is promoted by the Piramal Group, is setting up its second real estate fund with a corpus of Rs 500 crore and expects to raise the money from investors by the end of this year. The group had earlier floated Indiareit Fund, a $450- million(Rs 2,025 crore at current exchange rates) real estate fund in 2006 and the proposed new Rs 500-crore fund is over and above this. The Piramal Group has a presence in sectors, such as health- care, diagnostics, glass manufacturing and real estate.

ET

21)TEXTILE major Raymond on Thursday announced plans to enter the real-estate development business in order to encash surplus land. To begin with, the Mumbai-based firm has decided to develop nearly 20 acre of land in its Thane plant for residential usage. Raymond’s Thane unit has land of 160 acres which also houses a school and a hospital.

ET

BUSINESS PROCESS OUTSOURCING

22)INDIA’S largest third-party outsourcing firm, Genpact, has offered to buy a majority stake in smaller rival WNS at $16 a share in an all-stock deal, said a person privy to the development. The world’s largest private equity fund Blackstone has also put in an aggressive bid for Warburg Pincus’ 50.1% stake in WNS in the range of $16-17 per share, he said, requesting anonymity.

ET

23)SWITZERLAND-based bank UBS, which is looking to exit its captive business and knowledge process outsourcing units, is in advanced negotiations with leading IT firms Cognizant and Genpact, said four people familiar with the development. The deal is expected to be announced soon, the people said.

ET

INFORMATION TECHNOLOGY

24)India’s third largest IT company Wipro is eyeing about Rs 700 crore from Government projects in the current fiscal. It intends to nearly triple this in three years. The move comes at a time when the Centre is clearing the decks for a slew of projects under the National e-Governance Plan(NeGP).

BL

25)HCL Technologies has bagged a five-year tranformational IT infra- structure management contract from Energy Future Holdings Corp (EFH), a Texas-based, privately-held energy company with a portfolio of competitive and regulated energy subsidiaries.

BL

26)Fraud-hit IT outsourcing company Satyam Computer Services Limited (rebranded as Mahindra Satyam) is getting itself back on track, and inching closer towards acquiring the multi-million multi-year contracts it lost from Telstra and Merrill Lynch, according to a source close to the development.

BS

INTERNATIONAL

27)Crude oil fluctuated in New York as a decline in US jobless claims and growth in housing starts were offset by a weakening dollar. Crude oil for October delivery rose 12 cents to $72.63 a barrel at 10:37 a.m on the New York Mercantile Exchange.

BL

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

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 www.khojhyderabad.com
 www.indiacorporateadvisor.com
 www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd www.KARVYGlobal.com
KARVY Realty (India) Limited www.karvyrealty.com
Economic Times www.economictimes.com
The Financial Express www.financialexpress.com
Business Line www.businessline.in
Business Standard www.business-standard.com
The Times of India www.timesofindia.com
The Hindu www.hindu.com
Deccan Chronicle www.deccan.com
The New Indian Express www.newindpress.com

Headlines (14 Sep 2009)

Date: 14 September 2009

GENERAL

1)THE US Government has cleared yet another high technology system for India, the “futuristic” shipboard Hawkeye E-2D aircraft for Airborne Early Warning (AEW) and battle management. The clearance has been described by diplomatic sources as a fallout of the “successful” visit of US Secretary of State Hillary Clinton and the signing of the End User Monitoring Agreement(EUMA) of military equipment being supplied or sold by the US to India.

TOI

ECONOMY

2)Negotiators from the World Trade Organization(WTO) member coun- tries will meet in Geneva on Monday to kickstart trade talks that broke down 14 months ago and will focus on specifics like farm and industrial products.

BS

CORPORATE / INDUSTRY

 3)THE GUJARAT High Court on Friday sanctioned the mega-merger of Reliance Petroleum(RPL) with Reliance Industries(RIL). The division bench of the high court overruled all objections about valuation report and share-swap ratio. The mega-merger will make RIL the world’s largest refinery at single location.

 ET

4)GLENMARK Pharmaceuticals, Mumbai-based mid-sized drug maker, has decided to set up a facility to produce oncology drugs in Buenos Aires in Argentina to strengthen its presence in the global cancer drug market that is expected to grow by nearly 80% to $85 billion in four years.

ET

5)RETAIL industry circles are abuzz with the possibility of an imminent tie-up between Future Group and the world’s No.2 retail chain, Carrefour, after a hush-hush visit by the French chain’s global chief executive Lars Olofsson to India late last week and his meeting on Saturday with Future CEO Kishore Biyani. Olofsson and Mr Biyani on Saturday visited a couple of Big Bazzar and Food Bazaar outlets in Delhi, said an executive privy to the development.

ET

MONEY / BANKING

6)MANY state-owned banks, anxious to maintain their growth rates, are queuing up before the government for money. The finance ministry has asked the banks to spell out the addtional capital they would need over the next three years for maintaining a capital-adequacy ratio (CAR) of 12% by fiscal 2012.

ET

7)Public sector lender IDBI Bank expects Government’s decision on the sale of its Pune-based home loan subsidiary – IDBI Home Finance Ltd(IHFL) – in the next three months, a top official said.

BL

INSURANCE

8)Anticipating a faster recovery of the Indian economy than its global peers, London-based global reinsurance giant Lloyd’s has decided to return to India after withdrawing from the country almost two years ago.

FE

9)Insurance companies hitting the public market will have to appoint an independent actuary as part of IPO and M&A norm to carry out valuations. The Insurance Regulatory Development Authority(Irda) is working on initial public offer(IPO) and mergers and acquisitions guidelines(M&A).

BS

MARKETS

10)Indian equity indices, which managed to end last week with some smart gains following strong cues from the global markets and in- flows from the foreign fund, is likely to witness some consolidation in the coming days. Profit-booking might be seen at higher level, due to lack of any major trigger in the domestic market. Dealers in the markets say, besides performance of global markets, foreign funds activity and progress of country’s monsoon may continue to influence sentiment on the Indian equity markets in the coming days. Last week, the 30-share Sensex of Bombay Stock Exchange (BSE) added 575 points or 3.67%, while S&P CNX Nifty of National Stock Exchange(NSE) gained 149.15 points or 3.19%. On Friday, last trading day of previous week, Sensex was up 47.44 points or 0.29% to end the day at 16,264.30 points, while Nifty rose by 10.15 points or 0.21% to close the day at 4,829.55 points.

FE

11)Foreign institutional investors(FIIs) inflows into the Indian equity markets has touched $10 billion so far in the current financial year. After pulling out $11.54 bn(Rs 47,707 crore) from Indian equity markets during 2008-09, FIIs have made net investments of $10 bn(Rs 48,511 crore) in the first six months (April to September) of 2009-10. The bulk of these investments have come through the primary market, rather than buying via secondary markets.

BS

IPO

12)Indian property developers are queuing up to raise funds through initial public offerings, buoyed by a sustained rise in equity markets and an uptick in demand for real estate. While Godrej Properties Ltd, realty arm of the Godrej Group, will make an initial share sale in the next two to three months, Oberoi Constructions plans to launch a public offering in the first quarter of 2010.

BL

13)Hospitality major, Pride Group of Hotels, is planning an IPO of around Rs 200 crore in the first quarter of financial year 2011, besides, tapping private equity funds to fuel its Rs 800 crore expansion through 2015.

BL

COMMODITIES

 14)Gold prices may rise another Rs 2,000 for a gram to Rs 18,000 during the festive season, according to an assessment made by the Associated Chambers of Commerce and Industry of India(Assocham). The yellow metal is the only commodity which has seen huge build- up in the exchange traded funds(ETF) in the last few weeks. It is likely to gain further momentum in view of the festival demand and low international production once it convincingly stays above the psychological barrier of $1000 an ounce in global markets. Investors are now used to high prices in gold, the association said.

BL

15)Pepper futures market in India witnessed a sharp fall last week on bearish operations at a time when the prices in all the other origins by and large remained firm. Buyers kept away anticipating that the prices might fall further. This is said to have happened in the domestic markets, despite the festival season nearing market sources told Business Line.

BL

REAL ESTATE

 16)THE revival of fortunes in the real estate sector is now seeing textile companies with huge land banks making a foray into the area of property development. To date, most of the textile firms sold their land to developers. That is now making way for a different model where these firms would set up real estate companies. Among the names are Bombay Dyeing, Golden Tobacco and Century Textiles. There has been a precedent with groups like Tata, Mahindra and Godrej having turned developers. The Tata group has Tata Housing and Tata Realty while Mahindra’s venture is called Mahindra Life- space Developers. Godrej’s ventures goes by the name of Godrej Properties.

ET

17)Claiming that it was the biggest township developer in the country, even ahead of rival DLF and Unitech, realty firm Ansal Properties & Infrastructure on Sunday said it will invest up to Rs 35,000 crore over the next 10 years to develop 19 township projects. “We are the largest township developer. We are currently developing 19 townships in North India. These townships are spread over about 7,000 acre of land,” Ansal API vice-chairman and managing director Pranav Ansal said.

ET

COMMUNICATIONS

 18)The much-awaited auctions for 3G spectrum will be held on December 7 and the bids for the same will be invited between October 26 and November 13, the department of telecommunications said on Sunday.

FE

BUSINESS PROCESS OUTSOURCING

 19)PICK-UP and drop facility provided by employers is not a perquisite and hence not liable to tax, a recent ruling by a tax tribunal says. In a decision that has implications for the BPO and IT sectors, the Mumbai Income Tax Apellate Tribunal has held that companies providing such facilities were not liable to deduct tax on the expenditure incurred on it.

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20)BLACKSTONE, the world’s biggest buyout firm and back-office company Genpact, have bid for a controlling stake held by Warburg Pincus in WNS Global Services, two people familiar with the development said.

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 INFORMATION TECHNOLOGY

 21)Tata Consultancy Services(TCS) the country’s largest IT services provider, will use the new data centre which was set up by the Software Technology Parks of India(STPI) in Chennai as a disaster recovery for its e-passport service.

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INTERNATIONAL

22)ONE year since after Lehman Brothers and the world financial system crumbled, the world economy has come back so quickly and unexpectedly that banks are once again making huge profits and handing out obscenely large bonuses. What was called a world-changing crisis is looking like capitalism as usual. The G20 is meeting soon to discuss a new financial architecture, but remarkably modest change seems likely. No doubt banks in future will be asked to hold more capital: may be capital requirements will be higher for the biggest banks, and in boom times. The shadow banking system will be regulated. Most derivatives will be regulated and traded on exchanges, eliminating the counter party risk that froze markets after Lehman Brothers collapsed. There is some talk of curbing financial pay but nothing specific. The G-20 meeting will talk nobly but vaguely of great things to be done, and will in practice be a photo-op for politicians.

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