HEADLINES (05 June 2009)

Date: 05 June 2009

GOOD MORNING

Thought for the day

“Winners are losers who got up and gave it one more try.”

–Dennis DeYoung

GENERAL

1)With the Left parties out of the Centre’s decision-making process, the new UPA government is poised to embark on all long-pending reforms in the financial sector along with PSU disinvestment, while initiating measures to combat the ongoing slowdown by enhancing public investment in infrastructure and focussing on the recession-hit export sectors.

Hindu

ECONOMY

2)EVEN though food items became dearer because of the base effect, the wholesale price index(WPI)-measured annual inflation for the week ended May 23 dropped to 0.48%. Fruits, vegetables, pulses and cereals became costlier over the week, while fuel index and index for manufactured items remained unchanged. But agri-analysts suggests that with a normal monsoon in offing, inflation food items is likely to remain soft.

ET

CORPORATE / INDUSTRY

3)Nissan Renault Automotive India Private Ltd, the first joint venture between the global alliance partners Renault and Nissan, announced that its investment plans for India are intact, allaying fears of the project being called off due to effects of global slowdown.

BL

MONEY & BANKING

4)The rupee on Thursday recovered but still ended lower for the third straight day against the dollar, this time by 13 paise at 47.20/21, despite the late rally in bourses and the weakness of the US currency in Asian markets.

BL

5)The government is planning to infuse Rs 16,000 crore in over a dozen public sector banks by subscribing to equity shares through right issues. The move is aimed at bolstering the banks’ capital base and help them meet the domestic financing requirements. United Bank of India, Dena Bank, Bank of Maharashtra and IDBI Bank are expected to be among the next set of banks whose capital infusion proposals will be taken up.

BS

6)ICICI Bank, once a price warrior in the retail loan market, may be getting back in the game. The country’s second largest bank has lowered interest rates on loans by 50 basis points, making it the
second rate cut in six weeks. The move will reduce rates on home and auto loans for new and existing borrowers of ICICI. Other big lenders are also pruning rates in the absence of a quick loan
offtake. On May 7, India’s largest home finance company HDFC lowered its prime lending rate – the benchmark rate to which all floating rate loans are linked – by 25 basis points. In a less publicised move, HDFC made an additional 50 basis point reduction in interest rates for new borrowers availing loans in the range of Rs 30 lakh to Rs 1 crore. This was done by revising the spread between PLR and the loan rate.

ET

INSURANCE

7)INDIVIDUALS who invest their savings in annuity plans offered by insurance firm could see a drop in their tax burden. Insurance Regulatory Authority of India(Irda) is in talks with the government
to make annuity-plans more tax-efficient. If the proposal is accepted in the coming budget, it will augment returns for retired employees and help insurers market these plans better. An annuity is a contract issued by an insurer to make regular payments to a policy-holder for the rest of his life after retirement. The frequency of payment depends on the way the policy is structured.

ET

MARKETS

8)The Sensex on Thursday closed above the 15,000-level for the first time in nine months as the new UPA Government indicated that divestment of public sector companies was on the cards. The 30-share index closed at 15,008.68, or 0.90 per cent higher than on Wednesday. The broader Nifty rose 0.93 per cent, closing at 4,572.65. The BSE Midcap index rose 2.26 per cent and the small cap index gained 2.2 per cent, both outperforming the Sensex. Though the Sensex opened with a negative gap of 116 points tracking the Asian markets, they picked up following the President’s comments on the economy, with the positive European markets providing further impetus.

BL

9)Kinetic Engineering hit a 5 per cent upper circuit to Rs 55.65 on bagging an order from an European automobile manufacturer. The order requires it to supply specialised transmission gear assemblies.

BS

10)Nitin Fire Protection rose 3.84 per cent to close at Rs 312.45 on announcement of its fund-raising plans. The board today approved plans to issue capital of up to $50 million through sources such as
QIP. The stock opened at Rs 304.9 and hit an intraday high of Rs 318 and a low of Rs 295. The scrip made a 52-week high of Rs 465 (June 4,2008) and a low of Rs 115 (March 9,2009). The scrip has delivered 55 per cent returns in the last one month.

BS

11)If the global markets do not throw in more surprise and if the Indian government does go ahead with reforms, the Sensex could be trading at the 19,000 levels by the end of the current calendar
year, said Mr Ridham Desai, Managing Director at Morgan Stanley Equity Research. Even if there is bad news globally, the market here will not touch the lows it did in October of last year, he
said. Corporate earnings will rise over the next two fiscal years as there would be an increase in domestic demand with more consumers spending and with improved sentiment.

BL

12)In an order which suggests that Ketan Parekh might still be playing an active role in the stock market, the Securities and Exchange Board of India on Thursday debarred 26 entities from transaction in securities until further orders.

BL

MUTUAL FUNDS

13)Mutual fund houses which have been waiting in the wings for conditions to improve have already started flocking the markets, lining up several new fund offers(NFOs) to be launched over the next few months. In fact, Shinsei AMC, the Indian arm of Shinsei Bank, Japan, has already filed an offer document for its ‘Industry Leader Fund’ with market regulator Securities and Exchange Board of India(Sebi) and will be launching schemes in the next two months.

FE

COMMODITIES

14)Spot bullion prices ended down on Thursday, tracking intra-day losses in global markets, traders said. However, depreciation in rupee against the dollar restricted further fall in domestic prices, they said. Pure gold closed at Rs 14,830 for 10 gm, down Rs 115 from Wednesday. Standard gold declined by similar margin to end at Rs 14,830 for 10 gm. Silver closed at Rs 23,265 a kg down Rs 535 rupees.

BL

15)Pepper futures slipped to trade marginally lower on the country’s leading agri exchange, National Commodity and Derivatives Exchange (NCDEX), as traders preferred booking profits. On the NCDEX,
pepper for the most-active June month contract was trading 0.52% down at Rs 12,425 per quintal, with an open interest for 4,282 lots. The pepper for delivery in the July-month contract also turned weak.

FE

REAL ESTATE

16)Realty major Parsvnath Developers today said it bagged an order worth Rs 19.86 crore from Delhi Metro Rail Corporation(DMRC) for construction of a residential project. “The company has bagged a contract from DMRC for construction of a residential project,” Parsvnath Developers said in a filing to the Bombay Stock Exchange.

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BUSINESS PROCESS OUTSOURCING

17)SOME of the big offshoring players are now relying on ‘speed dating’ – a quicker and cheaper channel for selecting the vendor for their back office and IT outsourcing needs – in an economic climate
that is forcing these firms to reduce their sourcing time and costs. Under traditional outsourcing procedures, a contract worth $30 million to $100 million and above, could take up to nine months to
finalise a vendor. This long process includes inviting bids from several vendors, spending time in understanding each vendor’s competency, and preparing a final shortlist of suppliers to chose from.
‘Speed dating’ cuts through the expenses and time invested in clinching outsourcing contracts allowing firms to select a vendor within 60 days. The experienced outsourcers are now beginning to avoid an exhaustive analysis of the entire vendor landscape and are instead preferring to keep the work with their existing suppliers.

ET

INFORMATION TECHNOLOGY

18)Even as they moved many hundred of jobs back to India over the last couple of quarters to cut costs on the back of a slowing global economy, Indian IT firms have realised the importance of creating
more local jobs in the geographies in which they operate. This is especially true in the US where they need to counter growing “protectionist” rhetoric from US senators and pressure from the Obama
administration. Thus, over the last six months alone, analysts estimate that for the first time, Indian IT-BPO firms would have created over 10,000 jobs in international locations, the majority
of them in the US.

BS

19)With the economic downturn continuing in western markets, India’s third-largest software exporter Wipro is seeing opportunities in the domestic market in a big way. ‘Given the kind of spend that is happening and that will happen even in India and China, there will be big
opportunity,”Wipro CFO Suresh Senapathy said.

BS

INTERNATIONAL

20)Oil rose above $67 a barrel on Thursday after a 3.5 per cent decline the previous day, boosted by forecasts of higher oil prices from US investment bank Goldman Sachs.US crude for July delivery rose $1.10 to $67.22 a barrel by 1135 GMT. London Brent crude gained $1.43 to $67.31. Further support for oil prices came from a weaker US dollar, which can boost the appeal of oil and other commodities as a hedge against inflation.

BS

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

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

HEADLINES (04 JUNE 2009)

GOOD MORNING
Date: 04 June 2009

Thought for the day

“The only thing that stands between a person and what they want in life are the will to try it and the faith to believe it’s possible.”

–Rich Devos

GENERAL

1)Wednesday marked a new page in the Indian Parliament’s history with the unanimous election of Meira Kumar as the first women Speaker of the Lok Sabha. Though her election was unchallenged and evoked promises of cooperation from across the floor, members made it clear that there would be no deferential treatment on account of her gender and Ms.Kumar found herself having to expunge remarks even before her maiden address to the House as Speaker.

Hindu

ECONOMY

2)With hopes of a stable government at the Centre, at least six economic forecasters have raised their economic growth estimate for the current fiscal citing lower-than-expected political risk after the recent general elections.

BS

3)FOR portfolio investors around the world, China may be the hottest market to be in. But Stephen Roach, chairman of Morgan Stanley Asia, would rather place his bets on India. “India has made improvements in the recent years in the standpoint of macro developments, specially higher savings, increased FDI and a modest improvement in the infrastructure share of the Indian GDP,” said Mr Roach, addressing the media at the Morgan Stanley 11th India summit.

ET

CORPORATE / INDUSTRY

4)Ultra Tech Cement, part of the Aditya Birla group, is all set to overtake ACC this month as the country’s largest cement company in terms of production capacity. This will probably be the first time in the last few decades that ACC will slip to the second position.

BS

5)State-run BHEL on Wednesday said it has bagged a Rs 375-crore order for executing two gas turbine generating units for a project in Oman. “BHEL has won an export order for two gas turbine generating units of 126 MW each from Oman,” a company statement said.

BL

MONEY & BANKING

6)The rupee touched a seven-month high, but fell in the last one hour of trade on dollar buying. The domestic currency opened higher at 46.91/92 and touched a high of 46.75 during day trade. It weakened to close at 47.06/08, against the previous close of 46.97.

BL

7)Having put in place high-tech banking solutions, Union Bank of India has stepped up its business target to nearly Rs 3 lakh crore in FY10, CMD M V Nair said. Embarking upon this high-tech business model in 2007, the bank proposes to give syndicated loans of Rs 25,000 crore this year.

FE

INSURANCE

8)Bharti AXA Life Insurance, is looking at doubling its new business premium by the end of the current fiscal. Talking to reporters on the sidelines of the launch of ‘Gurarantee builder’, a Ulip product, in Mumbai on Wednesday, Nitin Chopra, CEO, Bharti AXA Life Insurance, said “We have set a target for doubling our new business premium from the mark of Rs 293 crore as achieved by our company at the end of the fiscal 2008-09. Similarly, the total revenue of the company, which was at Rs 360 crore as on March 31,2009, was likely to grow two and half times to Rs 1,000 crore by the end of the fiscal.”

FE

9)ICICI Lombard General Insurance plans to launch in the next quarter a critical illness health insurance cover for high net worth individuals, according to a senior company official. “The insurance cover with a high sum assured of around Rs 25 lakh will cover most critical illnesses, generally excluded in insurance policies, such as heart attack, kidney failure, and cancer,” the executive said.

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PENSION

10)THE New Pension Scheme(NPS) for citizens is expected to get a big push with Budget2009-10 likely to extend tax benefits to contributions to the scheme. The finance ministry is considering a proposal to include pension contributions by private citizens to NPS in the Rs 1-lakh limit for tax-deductible investments under Section 80C of the Income Tax Act,1961.

FE

MARKETS

11)Benchmark indices struggled for direction yet again on Wednesday as investors continued to book profits on concerns that valuations have become expensive and a correction was in the offing. The Sensex briefly crossed the psychological 15,000-mark, but investors chose to play it safe as far as frontline shares were concerned. Institutions, both foreign and local, were not heavy buyers, prompting traders to unwind some of their long positions. The Sensex rose to 15,046.43 early in the session before slipping to 14,870.90 at close, down four points over the previous close. The 50-share NSE Nifty gained 5.45 points to close at 4,530.70. Secondline shares continued to be in demand, with both BSE and NSE Midcap indices gaining 1.5% each.

ET

12)HAVING burnt their fingers in small and mid-cap shares last year, retail investors have taken a more cautious approach this time: they are playing the mid-cap rally through the mutual fund route. Market watchers say this could further fuel the rally in secondline stocks, as fund managers will have to deploy the money collected through this schemes, even if it means having to chase prices. As per May figures, renewed inflows as well as an appreciation in portfolio value has boosted the asset base of mid and small-cap schemes by 18-30%.

ET

13)STOCKS of the top five state-owned banks – State Bank of India (SBI), Punjab National Bank(PNB), Bank of India(BoI), Bank of Baroda (BoB) and Union Bank of India(UBI) – seem to have caught the fancy of investors since the market began the rally on March 9, as consistently strong operational performance begins to rub off on their share prices.Stock prices have more than doubled in the past three months and crossed their highest levels in a year, outpacing the 76% rise in the benchmark Nifty of the National Stock Exchange (NSE).

ET

14)The rally in mid-cap stocks has taken the fizz out of the futures and options(F&O) segment of the equity market. The interest in F&O has come down because investors are pumping in most of their funds into mid- and small-cap stocks in order to cash in on the recent rally, say market players.

FE

15)Anil Ambani-controlled Big FM, the country’s single largest private FM radio company with a licence to operate 45 radio stations, will be listed at the Bombay Stock Exchange(BSE) and the National Stock Exchange(NSE) in one to two months. Big MF will become the second FM radio operator to list on BSE after Entertainment Networks India Ltd, which operates under the Radio Mirchi brand.

BS

IPO

16)Hydro power firm National Hydroelectric Power Corporation (NHPC) Ltd is likely to launch its much-awaited Rs 1,670 crore initial public offer by August to part finance its expansion
plans.

BS

MUTUAL FUNDS

17)Portfolio management services(PMS) of mutual funds are targeting high networth individuals(HNIs) with quant-based schemes. ING Mutual Fund is planning to launch “BSE 200 Quant”, PMS scheme for HNIs and ultra HNIs. The minimum investment will be 20 lakh. It had launched another quant fund in February.

BS

CORPORATE SCORE

18)OIL India(OIL), the nation’s second-biggest state-run energy explorer, on Wednesday reported a more-than-20% jump in net profit at Rs 2,161.68 crore in 2008-09 mainly due to increase in oil and gas production. OIL, which is planning an initial public offering (IPO) by September, reported the highest-ever net profit of Rs 2,161.68 crore in 2008-09 as compared to Rs 1,790.06 crore in the previous fiscal, a company statement said.

ET

COMMODITIES

19)Copper futures climbed 0.57% in early trade, extending a long rising trend, on the Multi Commodity Exchange(MCX) largely in tandem with firming trends in the global markets where signs of a revival in the economy raised hopes of a take-off in demand for the metal. At the MCX platform, copper for delivery in June-month contract rose 0.57% at Rs 239.75 per kg, in a turnover of 22,124 lots.

FE

20)Silver prices recovered on the bullion market on fresh industrial demand. Gold prices also rebounded moderately on mild buying enquiries. Silver ready(.999 fineness) hardened by Rs 180 a kg to Rs 23,800. Standard gold(99.5 purity) moved up by Rs 20 for 10 gm to Rs 14,875. Pure gold(99.9 purity) looked up by Rs 25 for 10 gm to Rs 14,945.

BL

REAL ESTATE

21)DLF, India’s biggest real estate firm by market capitalisation, is learnt to have put its commercial property in Andheri, a suburb in Western Mumbai on the block. This property was being developed with Akruti City and the asking price for the property is said to be at least Rs 500 crore.

ET

COMMUNICATIONS

22)THE government has put loss-making PSU Indian Telephone Industries (ITI) on the block. This may perhaps be the first instance where the government plans to split up a PSU into blocks and sell it as it is unlikely to find a buyer for the entire company. This comes after all efforts to merge ITI with state-owned operator BSNL have failed.

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BUSINESS PROCESS OUTSOURCING

23)BPO firms expect a revival in business soon as their clients see stability in their own businesses. Genpact president and CEO Pramod Bhasin said the BPO clients seem to have hit bottom and are now on the path to recovery. “We are seeing clients stabilise. The resumption of business will take a little while longer,” he said. The country’s largest BPO firm by revenues counts GE, Nissan, GlaxoSmithKline and Cadbury among its clients. The BPO industry has managed to withstand the economic slowdown well, pointed out WNS Global Services CEO Neeraj Bhargava, with most companies reporting a decent growth in profitability recently. “The question now is how soon can the topline growth be restored. The deal pipeline is beginning to build up and we are in early stages of pickup,” he said.

ET

INTERNATIONAL

24)THE number of US homebuyers who agreed to buy a previously occupied home took the largest monthly jump in nearly eight years in April, but there are still plenty of danger signs for the US housing market. Home sales appear likely to head upward this summer, potentially to levels not seen since the stock market collapsed last autumn, but prices are expected to keep falling well into next year. Layoffs, which are causing foreclosures to soar, coupled with rising mortgage rates could dampen any real estate recovery.

ET

25)AUSTRALIA became the only major western nation to avoid recession during the current global economic slump as it posted surprise growth in the first quarter of 2009. The data came a day after better-than-expected export figures and led prime minister Kevin Rudd to hail Australia as the strongest advanced economy in the world.

ET

26)Crude oil futures extended declines after a US goverment report showed an unexpected increase in inventories. Supplies rose 2.87 million barrels to 366 million in the week ended May 29, the Energy Department said in a weekly report on Wednesday. Inventories were forecast to decline by 1.5 million barrels. Crude oil for July delivery fell $1.42, or 2.1 per cent, to $67.13 a barrel at 10:35 am on the New York Mercantile Exchange.

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HEADLINES (03 JUNE 2009)

GOOD MORNING Date: 03 June 2009

Thought for the day

“The results you achieve will be in direct proportion to the effort you apply.”

–Denis Waitley

GENERAL

1)Nominations in favour of Meira Kumar as Speaker of the Lok Sabha were filed on Tuesday with Secretary-General of the Lok Sabha P.D.T Achary by almost all sections of the House except the major constituents of the “Third Front’ – the Left parties, the Telugu Desam Party and the All-India Anna Dravida Munnetra Kazhagam – paving the way for a smooth and unanimous election on Wednesday.

Hindu

ECONOMY

2)APRIL is no longer the cruellest month – in the first month of the current fiscal year, six core industries together clocked the fastest growth rate in ten months, emboldening the prime minister’s economic advisor to hint at the possibility of an upward revision of economic growth forecast for the year. Power, crude oil, refinery products, coal, cement and finished steel grew by 4.3% year-on-year, recovering from the low of 1.1% in December 2008, according to a release by the ministry of commerce and industry on Tuesday.

ET

3)The government may rope in merchant banker NM Rothschild to put in place a detailed roadmap for selling stakes in state-run companies, according to a finance ministry official. “We are also working on an advisory panel on disinvestment, which could include Accenture, McKinsey and Ernst & Young among others,” the official said on conditions of anonymity.

ET

4)IN a move that would significantly benefit Indian companies seeking to aggressively expand overseas and bulk up inorganically, the government is learnt to be studying the possibility of allowing cross border mergers. “Under Indian law, a merger is only allowed if both merging companies are registered in India,” Diljeet Titus, managing director at corporate law firm Titus & Company, told FE.

FE

CORPORATE / INDUSTRY

5)THE FMCG sector has grown dramatically in April-May 2009 to log a 20% surge, compared with 17-18% in the same period last year. Across categories, companies are ploughing back savings from lower commodity prices to invest in brand building, consumer discounts and promotions, coupled with improved distribution strategies. Rough industry projections peg growth at 30% in 2009-10. FMCG companies are also investing in distribution, and tailoring their products and prices to specific geographies to increase the return on investment(RoI).

ET

6)Consumer durables company Videocon is undertaking an image makeover exercise, as it looks to position itself as a premium brand with focus on eco-friendly and youth oriented products.

BS

MONEY & BANKING

7)The rupee declined for the first time in five days on concern an advance in crude oil prices will increase import costs. The rupee declined 0.2 per cent to 47.025 a dollar at the close, according to data compiled by Bloomberg. It touched 46.89 yesterday, the strongest intraday level since December 18.

BS

8)Local cheques should be cleared on the same day or at the most the next day of their presentation. For outstation cheques, the time frame for clearing should not exceed seven days for State capitals, 10 days for major cities and 14 days for other locations, said the Reserve Bank of India in a notification issued today.

BL

9)INDIA has seen a huge spurt in overall ATM transactions since April 1, when the usage of teller machine was made free for all customers irrespective of the bank they banked with – thanks to customers opting for multiple and smaller transactions. This trend is making many banks reconsider their earlier aggressive branch expansion targets.

ET

10)KARUR-based Lakshmi Vilas bank is set to raise Rs 2,500 crore over the next five years through a combination of a rights issue, issue of subordinated debt, follow-on public offer, global depository receipt(GDR) and a perpetual bond issue. The capital is needed to augment the bank’s business from around Rs 12,000 crore to Rs 70,000 crore over the next five years.

ET

INSURANCE

11)Country’s largest private sector life insurer, ICICI Prudential Life, has launched SecureSave, which is a unit-linked product that aims to grow the value of the investor’s savings, overtime, with an assurance of a minimum guaranteed maturity amount. SecureSave will provide a guaranteed maturity benefit up to 150% of the sum of all the investment premiums paid.

FE

12)HDFC Standard Life has launched the Unit Linked Wealth Multiplier, targeting high networth individuals, with limited premium paying term of 3 years for a fixed tenure of 10 years. The product comes with five fund options including Money Plus, Bond Opportunities, Large and Mid Cap.

FE

MARKETS

13)Indian equity indices closed the day on a flat note after witnessing huge volatility throughout the trading session. The 30-share Sensex of the Bombay Stock Exchange(BSE) added 34.28 points or 0.23% to close the day at 14,874.91 points. The broader S&P CNX Nifty of the National Stock Exchange lost 4.65 points or 0.10% to end the day at 4,525.25 points. Dealers in the market said apart from strong cues from the global markets, huge profit booking was witnessed in the markets.

FE

14)Shares of KGN Industries, a non-banking finance company,hit the 5 per cent upper circuit, closing the day at Rs 395.25. The company’s board will meet on June 6, 2009, to consider a stock split (current face value is Rs 10) in the ratio of 1:10.

BS

15)The Bajaj Hindusthan scrip rose 6.6 per cent to Rs 159.65 on announcement that the company has repurchased foreign currency convertible bonds(FCCBs) worth $17.93 million for cash at a discount. A total of $119.5 million was outstanding prior to this.

BS

16)With the equity market gaining momentum and the country’s economic outlook looking stable, brokerages have started upgrading companies here. Most of the upgrades have been of companies in the capital goods, oil and gas, infrastructure and real estate sectors.

BL

17)The Securities and Exchange Board of India(Sebi) is discussing a proposal to make it mandatory for brokers to collect margins from clients in the cash market. This is now practised only in the derivative segment.

BS

IPO

18)Oil India Ltd(OIL), the nation’s second-largest state-run explorer, is likely to launch an initial public offering(IPO) by September this year, company Chairman N M Borah said today. The company has initiated discussions with its IPO advisers to decide on the timing

BS

MUTUAL FUNDS

19)The asset base of the mutual fund industry rose sharply in May and crossed the Rs 6 lakh crore-mark as equities surged and liquidity improved. The assets under management (AUM) grew over 15 per cent to Rs 6,37,609 crore from Rs 5,51,254 crore in April, according to data released by Association of Mutual Funds in India(AMFI). This is the steepest monthly rise recorded since the market fall in January 2008.

BL

20)After missing out on the initial leg of this three-month rally in stocks, equity mutual funds have managed to catch up in May. They generated an average return of 31 per cent in May against the Sensex gain of 28 per cent. The post-election spurt ensured a 71 percent gain in equity fund NAVs(averaged) from their March lows.

BL

21)After stocks and land, gold has caught the attention of mutual funds, which are bracing up to tap India’s craze for the yellow metal by launching gold funds. Several top mutual fund companies are planning new gold funds and fund of funds that would invest in gold, gold ETFs(exchange traded funds) and even in gold mining companies.

DC

22)Japan’s Nomura Group is set to acquire 35 per cent in LIC Mutual Fund, India’s seventh largest mutual fund, after the board of directors of Life Insurance Corporation(LIC) approved a proposal to induct the Japanese financial services major as a strategic partner in the mutual fund business, sources in the state-owned life insurer said.

BS

COMMODITIES

23)Gold edged higher in Europe on Tuesday, recovering from earlier losses, as dealers remained wary about the outlook for the dollar which hit its lowest level this year in the last session. New dollar weakness could spark buying of bullion as a hedge against currency weakness, analysts said. Spot gold was bid at $975.40 an ounce, against $973.95 an ounce late in New York on Monday.

BS

REAL ESTATE

24)Signing of new commercial deals in metros is seeing signs of revival in the first quarter of the financial year 2009-10. Taking advantage of the soft-scenario on real estate deals and incoming supply, corporates are finding it of an advantage to do deals in this area.

FE

INTERNATIONAL

25)GENERAL Motors Corp won court approval on its first day in bankruptcy to sell assets as soon as next month after collapsing under $172.8 billion in debt and failing to adapt to consumer demands for smaller cars.

FE

26)Morgan Stanley, the sixth-largest US bank by assets, plans to raise $2.2 billion by selling common stock to help repay a government cash infusion. The capital will satisfy regulators’ requirement that banks tap the equity markets before they can repay bailout money received under the Troubled Asset Relief Programme, New York-based Morgan Stanley said on Tuesday in a statement.

FE

27)Crude oil fell for the first time in seven days after the Organisation of Petroleum Exporting Countries and Russia raised production in May. OPEC oil output climbed 1.5 per cent to an average 28.15 million barrels a day last month, according to a Bloomberg survey. Russia’s oil production in May advanced for the third straight month, a government report showed. Crude oil for July delivery fell 28 cents, or 0.4 per cent, to $68.30 a barrel at 10:53 am on the New York Mercantile Exchange.

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Headlines (02 June 2009)

GOOD MORNING Date: 02 June 2009

Thought for the day

“A small body of determined spirits fired by an unquenchable faith in their mission can alter the course of history.”

–Mohandas Gandhi

GENERAL

1)Humility and quiet resignation marked the first day of the 15th Lok Sabha on Monday as the House met for the first time after a long and acrimonious electoral battle that saw many parties and leaders biting the dust and from which many new faces emerged.

Hindu

CORPORATE / INDUSTRY

2)THE automobile industry, though slowly, is showing signs of revival. While Maruti Suzuki India, the country’s largest passenger car manufacturer with a market share of over 50%, registered a growth of
10.4% in May at 70,785 units compared to 64,143 units in the corresponding month last year, its close competitor, Hyundai Motors, posted a decline of 4.1% in domestic sales last month at 23,503 units vis-a-vis 24,510 units in May 2008.

FE

3)AHMADABAD-based Zydus Cadila and Israeli generic major Teva have settled their patent disputes over active pharmaceutical ingredients (APIs) used to make generic versions of GlaxoSmithKline’s heart drug and Johnson & Johnson’s anti-psychotic drug. Zydus will now be able to sell its generic versions of these products in the US without legal implications from Teva.

ET

4)SUN Pharmaceuticals, India’s biggest drug company by market capitalisation, will spend Rs 332 crore in research & development of low-cost version of original drugs to be sold in domestic and global markets, a top company executive said.

ET

5)Voltas electro-mechanical business has secured two orders worth Rs 300 crore for electromechanical projects for the most prestigious and noteworthy ‘new generation’ airports in India, namely Kolkata’s Netaji Subhas Chandra Bose International(NSCBI) airport and Chennai International Airport.

FE

6)US Drug maker Mylan will pay Rs 817 crore to buy-back 24.8% equity in Matrix Labs. The price, arrived through a reverse book-building process, is Rs 236 crore (41%) higher than the indicative price. The US-based company came out with a public offer in the first week of May to buy back the remaining 24.8% equity in Matrix at an indicative price of Rs 150 per share.

ET

MONEY & BANKING

7)The rupee touched a six-month high buoyed by strong gains in the domestic equities market and a weak dollar. “Although there was a two-way movement, the strengthening bias for the rupee continues,” said a forex dealer with a private sector bank. On Monday, the rupee opened at 47 and closed at 46.97 against Friday’s close of 47.08.

BL

8)LEADING banks have told corporates that there can be no dramatic reduction in lending rates. While the government is nudging banks to cut interest rates, the lenders have told apex industry bodies
that rates cannot be lowered to the extent corporates are demanding. At a meeting last week, the Indian Banks’Association(IBA), an association of bank managements, spelt out its views to the CII
and the FICCI. “We have told corporates that lending rates can be cut by 50 to 100 basis points (bps) from the current level in the near to medium term,” said a bank CEO who attended the meeting.
Corporates have asked for a 400-500 basis points cut in lending rates.

ET

9)Overseas analysts are now bullish on the Indian economy. An analysis by Bank of America and Merrill Lynch has upgraded our FY10 capital inflow projections by $14 billion, on a mix of receding international risk aversion as well as domestic political risks.

FE

MARKETS

10)The positive momentum on the domestic equity bourses on expectations of speedy implementations of economic reforms by the new government continued to push share prices higher. The 30-share Sensex of the Bombay Stock Exchanges(BSE) extended its upward rally by another 215.38 points or 1.47% on Monday to end the trading session at 14,840.60 points, just 160 points short of the 15-k level. Similarly, the broader 50-share Nifty of the National Stock Exchange(NSE) extended its gain by 1.82% or 80.95 points to close the day at 4,529.90 points.

FE

11)WITH FIIs getting back the voracious appetite for Indian stocks, they have put in over Rs 3,500 crore through just 62 bulk deals on the BSE in the first two months of the current financial year. According to an analysis of bulk deals on the exchange in April and May this year, FIIs transacted as many as 62 bulk deals buying shares worth Rs 3,516.61 crore, with the biggest deal being the sale of over 5% stake in DLF for Rs 2,106 crore.

ET

12)Stocks of oil exploration and production companies showed good performance recently, primarily due to a steady rise in crude oil prices. Nymex crude moved up over 10 per cent in the last
one week.

BL

13)Shares of Great Offshore rose 2.68 per cent to Rs 373.70 after Bharati Shipyard announced an open offer for another 20 per cent stake on Monday. Bharati, which holds 14.89 per cent stake in the
company, is yet to announce the open offer price. Analysts expect the offer price should be around Rs 326 a share.

BL

IPO

14)CIVIL aviation minister Praful Patel has said that government will consider listing of national carrier Air India on the bourses after capital market improves. “But the airline will not lose is public
sector character and it will not be privatised,” he told media persons after assuming charge for the second consecutive term.

ET

MUTUAL FUNDS

15)Assets under management(AUM) of several fund houses gained a significant amount in May compared to April, representative of smart inflows from retail investors in the Mutual Fund(MF) industry.
AUM refers to the market value of assets that an investment company manages on behalf of investors. Reliance MF for instance, the country’s biggest fund house, crossed the Rs 1 lakh crore mark in May. Fund managers attribute these gains to a surge in the Indian equity market in the last one-month. Data released of 27 fund houses by the Association of Mutual Fund in India(Amfi) showed AUM of Rs 4,40,589.64 crore for May, gaining 16.84% or 63,502.22 compared to Rs 3,77,087.41 crore in April. AUM of Reliance MF stood at Rs 1,02,730.15 crore, up by 14,342.16 crore or 16.23% compared to Rs 88,387.98 crore in April.

FE

COMMODITIES

16)WITH monsoon activity reviving after a brief pause, fears of another spike in food price inflation is dispelled for the time being. Monsoons have advanced over the southern states of Karnataka and Andhra Pradesh, after a week’s lull, India Meteorological Department, said on Monday. Agri commodity analysts pointed out that any further delay in revival in rain would have lead to a spike in prices of kharif crops. “Further delay hereafter (in advancement of monsoon) would have affected land preparation and sowing activities. In such event the prices of Kharif crops would have moved higher,” said Harish Galipelli, chief analyst at Karvy Comtrade.

ET

17)Many commodity stocks have surged 25-60 per cent during the first five months of this calendar year. The major reason is China’s strategic buying and the re-entry of hedge funds and institutional
investors in commodities in a big way. This has led, among other things, to crude oil at a year’s high of $68 a barrel and gold is also close to the year’s high of $1,000 per ounce. Copper and lead are up over 60 per cent in the calendar year.

BS

18)Copper rose more than 3 per cent on Monday to top $5,000 a tonne for the first time since mid-October, as Chinese data and a weak dollar drove industrial metals to new multi-month highs.

BL

19)Chana futures prices on the national commodity bourses may remain weak over the next few days on higher stocks with exchange warehouses supported by continued imported inflows of pulses. Overall demand from local buyers is limited.

FE

REAL ESTATE

20)Realty firm Parsvnath Developers will invest Rs 700 crore to develop a premium luxury housing project at Civil Lines in the national capital and expects a realisation of about Rs 1,300 crore in three financial years.

BS

COMMUNICATIONS

21)LEADING GSM operators Bharti Airtel and Vodafone Essar have added 2.8 million and 2.7 million subscribers, respectively, in April, continuing with their growth momentum. The second-largest mobile
operator, Reliance Communications, added just over 2 million subscribers last month, according to data released by telecom regulator Trai on Monday.

ET

INFORMATION TECHNOLOGY

22)Summit Technology Solutions, a Summit Holding company, Egypt, has announced its partnership with Polaris Software Lab Ltd. Through this partnership, Polaris has made its first major product go live in the Egypt market.

BL

INTERNATIONAL

23)Asian automakers have largely protected themselves from any disruption from the bankruptcy filing by General Motors and should gain further market share down the road, analysts and automakers said on Monday. General Motors, the world’s largest carmaker until its 77-year reign ended last year, filed for bankruptcy protection in the US with a plan to create a 21st-century company that can compete in world markets. GM reported $82.29 billion on assets and $172.81 billion in debt. The US government will bankroll the transformation of the 100-year-old automaker, a victim of tumbling sales and higher gas prices. The US plans to convert much of its $50 billion of loans to a 60% stake in new entity, administration officials said.

ET

24)CHINA’S manufacturing sector continued to expand moderately in May as new export orders improved, two surveys showed on Monday, adding to tentative signs that the world’s third-largest economy is stabilising.

ET

25)Crude oil rose to the highest since November as China’s manufacturing expanded for a third month, signalling that fuel demand in the world’s second-biggest energy consumer may increase. Crude oil
for July delivery rose $1.25, or 1.9 per cent, to $67.56 a barrel at 9:58 am on the New York Mercantile Exchange.

BL

Todays Headline (01-06-2009)

GOOD MORNING Date: 01 June 2009

Thought for the day

“The winners in life think constantly in terms of I can, I will, and I am. Losers, on the other hand, concentrate their waking thoughts on what they should have or would have done, or what they can’t do.”

–Denis Waitley

GENERAL

1)THE new Lok Sabha, with a more dominant Congress heading a coalition having a comfortable majority with its allies, opens its first session on Monday whose highlight would be the election of the Speaker and unfolding of the UPA Government’s plan of action.

Indian Express

ECONOMY

2)WHILE finance minister Pranab Mukherjee has asserted that the next wave of economic reforms will provide a sustained stimulus to growth, the finance ministry has listed out seven important pending reform bills – on insurance, pension and banking reforms – for ‘priority’ passage by Parliament.

FE

3)THE new UPA government at the Centre plans to raise Rs 10,000 crore through stake sales in state-owned units over the next one year, more than what the previous UPA government achieved during its entire five-year tenure. With the Left off its back, the Manmohan Singh-led government is planning to unveil its disinvestment agenda in the budget, complete with annual targets, a finance ministry official said.

ET

CORPORATE / INDUSTRY

4)ANIL Ambani-promoted Reliance Power is in talks with Australian mining firms BHP Billiton and Rio Tinto for setting up a coal mining joint venture that will develop the mines allocated to the company and supply coal to its power plants. The company plans to spend close to Rs 5,000 crore in developing coal mines, said a person familiar with the development.

ET

5)THE board of Bharat Shipyard has decided to make an open offer for Great Offshore even as Vijay Sheth, the vice-chairman and managing director of the company resigned from the company on May 29. Bharti Shipyard currently holds 14.9% stake in Great Offshore while Mr Sheth, the erstwhile promoter, holds less than a 1% stake in Great Offshore.

ET

6)THE promoters of Ispat Industries, Pramod and Vinod Mittal, have pledged their entire shareholding in the company with lenders as the beleaguered steel company makes yet another attempt to rid itself of a mountain of debt and emerge healthy.

ET

7)Kowshik Kuchroo is sure that the bad days for the shipping industry are over, finally. The vice-president of Mercator Line, India’s largest dry bulk carrier, said operations have become profitable once again and the company is, in fact, looking to buy new ships.

BS

MONEY & BANKING

8)The country’s largest lender, State Bank of India, is hopeful of earning more profit than the landmark figure of Rs 10,000 crore in the current fiscal. “Looking at the past performance and(the) way the bank has been expanding its businesses, we expect the net profit to cross Rs 10,000-crore mark in FY’10,” a senior SBI official said.

ET

MARKETS

9)PRO-BUSINESS comments by the government to boost the economy and trends in overseas equities will be key to a positive market sentiment this week. Though the wider consensus among market participants is that stocks appear overbought, the existing positive undertone may extend the flow of money into Indian equities from both foreign and domestic funds.

ET

10)PSU stocks are on a roll. Market expectations that the UPA government, without the baggage of its Left allies, would push forward with the divestment of public sector undertaking(PSU) companies, is driving these stocks. As a result, since May 16 there has been investor euphoria for the stocks of government-run companies. The PSU index on BSE has gained 40%, double the sensex gain of 20% during the same period.

TOI

11)SIGNS of renewed confidence in stock markets among investors is encouraging retail broking firms to revive their nearly-dormant margin funding business. While many brokers have slashed interest rates on margin borrowing by at least 2.5% to encourage borrowing by clients to trade, a few of them have approached the stock exchanges, seeking permission to extend the scope for such lending to small and mid cap stocks.

ET

12)Before derivatives trading began, NSE and BSE were all-electronic equity spot markets. By international standards, they were small markets. Derivatives trading, which started in June 2000, was a turning point in many ways. And after all the changes had fallen into place, NSE and BSE were both amongst the top 10 exchanges in the world by the number of transactions.

FE

IPO / FPO

13)After a lull of nearly three months and following the installation of a stable government at the Centre, the capital market is set to witness action again, with Rishabhdev Technocable coming out with its Rs 22-crore follow-on public offer (FPO) scheduled to hit the market on June 4.

ET

MUTUAL FUNDS

14)Some large domestic mutual funds are asking market regulator Sebi to revise a rule that prevents them from investing more than a tenth of an equity scheme’s assets in a single stock or equity-related instrument. The main trigger for the request is that the rule is constraining or will constrain these schemes from increasing their investments in shares of Reliance Industries, usually at the vanguard of a bull rally in stock prices.

ET

15)Shinsei Asset Management (India), plans to launch its first two mutual fund products in the country before end-July and targets to have six-eight products in the market in the next 18-months, a top company official said.

ET

COMMODITIES

16)Crude oil futures on the national bourses gained further momentum on the week ended Friday and prices rose nearly over 8% during the week on continued buying support from market participants mainly on reports of OPEC’s decision to hold output and falling US crude reserves supported by dollar weakness. The rally in gold futures on the MCX continued even this week because of higher crude oil price supported by weak dollar value.

FE

REAL ESTATE

17)Enthused by a strong institutional response to QIP(qualified institutional placement) issues, builders are now anticipating revival of private equity(PE) investments at project level, but real estate funds want to see more sales in the property market before finalising deals.

BL

BUSINESS PROCESS OUTSOURCING

18)INDIA’S $47 billion IT outsourcing industry, struggling to cut costs without compromising on seat capacity, is now reinventing the wheel. Some of them have stitched up deals with telecom companies, outsourcing their own communication infrastructure, a model now known as “hosting services”.

ET

INFORMATION TECHNOLOGY

19)After the pall of gloom owing to shrinking IT budget of the corporates for over three quarters, there is a ray of hope for the sector. According to global market research firm IDC, worldwide IT spending is expected to turn positive in 2010.

FE

20)The impending bankruptcy declaration by General Motors may not have a major impact on Indian IT vendors, though analysts believe that there could be some short-term uncertainty on receivables and volumes.

BL

21)TATA Consultancy Services(TCS), the country’s largest IT services firm, is exploring new avenues in the life sciences and healthcare space, while demand from existing clients gains momentum. Out sourcing analysts say there are deals worth $300-400 million in the market at various stages of negotiations.

ET

22)Satyam Computer is planning to reduce real estate costs by terminating lease contracts for offices in India, which will help the embattled IT firm save up to Rs 100 crore by the end of this year.

BS

INTERNATIONAL

23)OPTIMISM over the US government’s stimulus programs to combat the recession lifted consumer confidence in May to its highest level in eight months, a survey released on Friday showed. The gradual healing in consumer confidence, which hit a 28-year low in November, has been seen as a sign of an economic rebound from the worst downturn since the Great Depression.

ET

Headlines (23 October 2008)

GENERAL

1)India’s Polar Satelite Launch Vehicle (PSLV-C11) on Wednesday morning successfully put Chandrayaan-1 into its initial orbit, marking the spacecraft’s long journey to the Moon. This is the first time India is sending a spacecraft to the Moon, 3.84 lakh km away. India is the sixth country to do so, after Russia, the U.S, the European Space Agency, Japan and China. It will be three weeks before Chandrayaan-1 reaches its final destination of 100-km orbit around the moon.

Hindu

CORPORATE / INDUSTRY

2)PMP Components, the auto-component company of the Ashok Piramal Group, has announced the acquisition of Czech Republic-based PAL International for an undisclosed amount. PAL International, which is the third largest wiping systems manufacturing company in Europe was earlier owned by the Canadian auto group, Magna International.

BS

MONEY & BANKING

3)THE rupee plummeted to an all-time low of 49.5 against the dollar on Wednesday, as foreign portfolio investors continued their selling spree on the stock exchanges. Heavy intervention by the central bank was of little help, as the rupee ended the day at a record closing of 49.28/29 against the dollar, weakening from Tuesday’s close of 49.04/06.

ET

4)The government is likely to infuse Rs 3,000 crore into seven public sector banks to shore up their capital adequacy ratio to 12 per cent to improve market confidence in the banking sector. The banks likely to benefit from the capitalisation programme include Central Bank of India, Vijaya Bank, Bank of Maharashtra, UCO Bank and Indian Overseas Bank, Allahabad Bank and United Bank. All these banks have a capital-to-risk-assets ratio(CRAR) of below 12 per cent.

BS

5)Bank of India reported an 80 per cent growth in second quarter net profit, beating analysts’ predictions. Mr T.S. Narayanasami, Chairman and Managing Director, attributed the better-than-expected results to robust credit growth and healthy recovery of written off assets. The bank’s net profit increased to Rs 763 crore from Rs 425 crore in the year-ago period.

BL

MARKETS

6)Key equity indices snapped their two-day gains and ended in the negative terrain on Wednesday. Intense selling pressure, coupled with weak global cues and sustained selling by foreign funds, forced the market to remain under pressure throughout the day. The 30-share Sensex of the Bombay Stock Exchange(BSE) plunged by 513.49 points, or 4.81%, and closed the day at 10,169.90 points. Earlier in the day, the Sensex opened with a negative gap and touched an intra-day high of 10,484.45 points and fell to a low of 10,128.22 points. The broader Nifty of the National Stock Exchange (NSE) also lost 169.75 points or 5.25%, ending at 3,065.15 points.

FE

7)Even as emerging markets are witnessing a massive capital outflow in the wake of the global credit crisis, foreign institutional investors (FIIs) have increased their stake in as many as eight companies in the 30-share Sensex. The major companies, in which the FII share went up from June 30 to September 30 this calendar year, include heavyweights such as HDFC, Hindalco Industries, Maruti Suzuki, BHEL and Larsen & Toubro. Analysts said the strong fundamentals of these companies continue to attract FII interest.

FE
        
8)Power Exchange India, promoted by the National Stock Exchange(NSE) and National Commodity and Derivatives Exchange(NCDEX), started operations today. The exchange received bids for 6300 MWH of power today and the matched power was cleared at the market prices between Rs 7.6/KWH and Rs 9.8/KWH.

BS

9)Nine out of the past 10 Diwalis saw Indian stocks rise after the festival. But with new and international factors at play, would this decade-long trend prevail this year as well? Fidelity Funds Network has analysed the performance of domestic stocks over the last 10 years, comparing them for the 30 days preceding and 30 days following Diwali. The analysis showed that the Indian indices did comparatively better after Diwali than before, said a release from Fidelity.

BL

10)With the rupee touching a new low on Wednesday, volumes in currency futures trading on the bourses hit new highs. A total of 2.06 lakh contracts were traded on the NSE on Wednesday, which is the highest number traded since the day currency futures commenced, on August 29. The total turnover on NSE amounted to Rs 1,026 crore.

BL

11)The Securities and Exchange Board of India(Sebi) has modified the earlier circular it had issued asking stockbrokers/clearing members to carry out complete internal audit on half-yearly basis. Now, the audit can be carried out by chartered accountants, company secretaries or cost and management accountants who are practising and do not have any conflict of interest. Earlier, Sebi had specifically stated that the half-yearly audit could be carried out only by independent qualified chartered accountants.

BS

IPO

12)THE government is likely to launch the proposed initial public offers(IPOs) and follow-on public offers(FPOs) of public sector companies only after the stock market conditions improve. It was expected that Oil India (OIL) and National Hydroelectric Power Company(NHPC) would be listed during the current fiscal, and discussions were on for floating IPOs of several other PSUs.

ET

MUTUAL FUNDS

13)ABN Amro Mutual Fund has extended the initial offer period for its bond fund until Monday, the fund house said in a notice today. ABN Amro Bond Fund, an open-ended debt scheme launched Sep 29, was slated to close initial subscription today.

BS

COMMODITIES

14)Tracking weakening global trend, gold prices dropped further by Rs 300 to 12,450 per 10 gram on the bullion market in New Delhi on heavy selling by stockists amid restricted buying. Standard gold and ornaments remained under selling pressure and plunged further by Rs 300 each to 12,450 and Rs 12,300 per 10 grams respectively. The metal fell Rs 210 in previous day’s trading.

ET

REAL ESTATE

15)Real estate major DLF has emerged as the sole bidder for the commercial development on 45,371 sq.metres of railway land in Mumbai’s Western Express highway at Bandra-east. Rail Land Development Authority(RLDA), which is executing the project, is likely to technically evaluate the project before taking a call on the next course of action, said sources in the know. Wednesday was the last day to accept the bid. Real estate firms including Akriti, DLF, Emaar-MGF, Tata Realty and Infrastructure and a subsidiary of Reliance ADAG had attended the recently held pre-bid meeting.

BL

16)Given the current global economy slowdown and its impact on the Indian economy, real estate developers have hit upon novel marketing strategies to woo reluctant flat buyers. Real estate players such as Mantri Synergy, Jains Sunderbans, ETA Rosedale and Hirco Palace Gardens have come out with new schemes to attract buyers. In what is seen as a clear move to shore up the ‘sagging morale’ of prospective buyers, property developers have now come forward to pay pre-EMI(equated monthly instalment) interest on part-money disbursed on the housing loan taken by a flat buyer. “Given the current situation, builders are taking a conscious decision to bear the interest burden of the consumer,” Prakash Challa, President, Confederation of Real Estate Developers Association of India (CREDAI).

Hindu

INFORMATION TECHNOLOGY

17)The country’s top IT firm TCS today said its net profit grew to Rs 1,270.99 crore in the quarter ended September 30 from Rs 1,251.60 crore in the year-ago period. Total income rose to Rs 6,784.45 crore in the second quarter of this financial year on a consolidated basis, nearly 18 per cent up from Rs 5,761.82 crore in the July-September quarter of last year, Tata Consultancy Services said.

BS

18)Wipro, the soaps to software major, riding on operational efficiencies has reported a 19 per cent increase in its net profit to Rs 978 crore for second quarter of the current fiscal as compared to the corresponding period last year. Revenues were up 36 per cent to Rs 6,507 crore. However, the guidance of its flagship IT services business, Wipro Technologies, indicates it will crawl by hardly a per cent during the third quarter, indicating tought times.

BS

19)Inspite of a slowdown in the US, TCS has said that it is on course to meeting its annual hiring target of 30,000 to 35,000. The Tata group company is ahead of its hiring target for the half year ended September 2008 as it added 18,664 in that period, according to Mr Ajoy Mukherjee, Vice-President, Head, Global Human resources.

BL

INTERNATIONAL

20)OIL prices fell below $69 a barrel Wednesday as investors shrugged off a looming OPEC production cut after company forecasts suggested the US may be headed for a severe economic slowdown that would crimp demand for crude. Light, sweet crude for December delivery dropped $3.37 to $68.81 a barrel in electronic trading on the New York mercantile exchange by mid-afternoon in Europe.

ET

21)THE world’s worst financial crisis in 80 years hammered emerging markets on Wednesday, prompting emergency central bank moves and call for international help to curb investor flight. Emerging market stocks, sovereign debt and currencies all came under intense pressure as investors unwound funding positions amid worries about the deteriorating world economy. That overshadowed signs that efforts to bolster the financial system were beginning to bear fruit.

ET

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 (21 October 2008)

GENERAL

1)India and Russia on Monday agreed to further cooperation in the nuclear sector during Russian President Dmitry Medvedev’s maiden visit to the country in December. The Foreign Ministers of both countries also signed a protocol outlining consultations between diplomats over the next year.

Hindu

ECONOMY

2)Prime Minister Manmohan Singh emphatically told the nation there was no place for fear because of global financial uncertainty, and assured bank depositors their savings were “entirely safe”. He spelt out the government’s stance on the liquidity crisis, offering a frank assessment that growth would slow down “temporarily”, but that inflation would also come down.

FE

3)The Finance Minister, Mr P Chidambaram, on Monday said that the Indian economy is expected to grow close to 8 per cent in fiscal 2008-09 despite the global financial turmoil. “Despite, the global slowdown, we hope that the Indian economy would grow close to 8 per cent.

BL

CORPORATE / INDUSTRY

4)INDIA’S largest drugmaker Ranbaxy is now a subsidiary of Japanese drug major Daiichi Sankyo. The Tokyo-based company on Monday bought 21.9% stake from the promoters and another 11% through allotment of preferential shares at Rs 737 per share. This is in addition to the 20% stake that Daiichi bought from the company’s shareholders through its open offer. These three transactions take the Japanese company’s stake in Ranbaxy to 52.5% making it the undisputed owner of the Indian company.

ET

MONEY & BANKING

5)SOME good news, finally, It’s just a matter of time before home loan interest rates start coming down. Since the cash crunch has turned bankers risk-averse, they may wait a while to figure out whe- ther the worst is over. But at the end of the day, they will have little choice but to cut loan rates. An unexpected interest rate cut by the Reserve Bank of India on Monday was a strong signal to banks that they should go out and lend instead of sitting on cash or parking the money in government bonds. Having raised money at high rates to battle an unprecedented liquidity crunch, banks will prefer to cut their deposit rates first before lowering interest on loans to consumers and corporates. But they know that the one percentage point(100 basis points) cut in the repo to 8% – the rate at which banks borrow from RBI – marks the beginning of a dovish monetary policy, with inflation becoming less of a concern. The RBI had last cut interest rate in 2004.

ET

6)THE rupee breached the 49-mark against the dollar on Monday, even as the unexpected repo rate cut by the Reserve Bank of India(RBI) boosted sentiment in the stock and bond markets. Heavy dollar demand by importers as well as nationalised banks for a defence-related purchase caused the rupee to fall to a low of 49.20 during the day. It finally ended the day at 48.97/98 against the dollar, weakening from the Friday’s close of 48.88/89.

ET

7)CANARA Bank has reported a 32% year-on-year rise in net profit for the second quarter(Q2) ended September 30,2008. Net profit stood at Rs 529 crore against Rs 402 crore driven by a 29% year-on-year rise in net interest income in Q2 of the current fiscal.

ET

INSURANCE

8)THE Tata Group is learnt to have started negotiations to buy AIG’s 26% stake in the life and non-life joint ventures, Tata AIG Life and Tata AIG General, respectively. The discussions between the parties has gained momentum with AIG in the process of selling its Asian operations, barring India.

ET

9)ICICI Prudential Life Insurance, the country’s leading private life insurer, has posted a growth of 56% for the half-year ended September 30,2008, garnering total received premium(new business and renewal) of Rs 6,726 crore as against Rs 4,311 crore during the corresponding period in FY2008. Renewal premium, one of the key indicators of long-term sustainability of the business,showed strong growth of 90% and stood at Rs 3,423 crore for first half of FY2009.

FE

MARKETS

10)Gains in banks after the Reserve Bank of India announced a 100-basis point cut in the reporate and bargain buying in technology shares led Indian shares to close higher Monday, snapping a three-day fall. However, the BSE’s 30-stock index pared part of its early gains on profit-taking, as investors trimmed their positions amid the current uncertainty prevailing in the US. The index ended up 247.74 points, or 2.5 per cent, at 10,223.09. It traded between 10,023.28 and 10,538.05 during the session. It had risen 5.6 per cent in intra- day trade. On the NSE, the 50-stock S&P CNX Nifty gained 48.45 points, or 1.6 per cent, to 3,122.80.

BL

11)In what can be seen as another closer step towards bringing in strict measures against short selling, or a possible ban, the Securities & Exchange Board of India(Sebi) has sent out a communication to the foreign institutional investors(FIIs), disapproving overseas lending or borrowing exerting selling pressure in the cash market in India.

FE

MUTUAL FUNDS

12)Mutual funds(MFs) heaved a sign of relief today after the Reserve Bank of India(RBI) announced a repo rate cut of 100 basis points. Repo rate is the rate at which RBI lends to banks. “The sentiment will definitely improve,” said Arvind Chari, fund manager-fixed income at Quantum Mutual Fund.

BS

13)CLOSE on the heels of providing an emergency credit line to cash starved mutual funds(MFs), financial regulators have announced another move to provide fund houses more relief. The securities and Exchange Board of India(Sebi) has announced that fund houses will now have more leeway in valuing bonds on their books. This will not only bring in more efficiency while calculating net asset values of funds, but also help fund managers get a better price while exiting their investments in times of redemptions.

ET

COMMODITIES

14)The Forward Markets Commission(FMC) hopes the ban on trading of eight commodities on exchanges will go in November. “We will take a call after studying the situation in mid-November and recommend suspension of the ban on four commodities(rice, wheat, urad and tuar),” Mr B C Khatua, Chairman of FMC, said.

BL

15)Gold was firmer on Monday as a recovery in oil prices boosted interest in the metal after last week’s sharp price fall, but retreated from earlier highs as the dollar pared losses against the euro. Spot gold was quoted at $788.40/790.40 an ounce at 1326 GMT, up from $781.70 an ounce late in New York on Friday. Earlier it touched a session high of $808.20.

BL

16)Gold prices bounced back by Rs 150 per ten gm on the bullion market on Monday on fresh buying interest. Standard gold (99.5 purity) rose by Rs 150 per ten gm to Rs 12,735. Pure gold(99.9 purity) also rose to Rs 12,800 from Rs 12,640. Silver ready(.999 fineness)moved up by Rs 90 per kg to Rs 18,065 from Rs 17,975.

BL

17)Pepper futures market witnessed high volatility on Monday as both sellers and buyers were active and good quantity was said to be traded. Prices of all the contracts moved up on buying support. October contract went up by Rs 9 a quintal to Rs 12,551. November and December deliveries increased by Rs 166 and Rs 160 a quintal to Rs 12,748 and Rs 12,890 respectively.

BL

REAL ESTATE

18)With the global economic meltdown taking its toll on the Indian real estate sector, the residential sector market has started witnessing a significant dent in demand, while demand for commercial properties nationwide, has started dipping by 70% to 80%. Retail developers too are holding on to their expansion plans and are seeing a dent of over 50% in demand, according to international property con- sultants and developers.

FE

19)Ansal Housing & Construction has launched a residential project worth Rs 140 crore, called Ansal town, at Alwar in Rajasthan. This project is spread over 42 acres and is initially offering plots for Rs 7-25 lakh. Later, built-up villas and apartments will be introduced in the township, the company has informed the BSE.

BS

20)Swarnanjali Projects Private Ltd launched its first realty project Swarnanjali Greens’ at Kottur, near the Hyderabad International Airport, Shamshabad. The project, launched by Mr C V S K Sarma, Principal Secretary, Municipal Administration, Hyderabad, would have 200 homes each on 200 square yards plots. According to Mr Syed Ahmed Rauf, Director, Swarnanjali Projects, “The project is coming up near to fully developed commercial and residential surroundings at reasonable price and easy scheme of 40 month instalments.”

BL

INFORMATION TECHNOLOGY

21)THE father of the Pentium chip, a breakthrough chip for Intel, Vinod Dham, believes that Indian outsourcers will be the beneficiaries of the current crisis in the US. Mr Dham, who is now a venture capitalist like many other successful tech entrepreneurs of his time, says the stories of gloom and doom are not entirely unfamiliar to him. “After the dotcom bust, everybody said Indian IT growth was over. But look where they are now. The same thing is likely to repeat itself,” he said.

ET

22)Having burnt fingers due to high exposure in the US and UK markets, Indian IT sector sees huge opportunity emerging in Japan. Currently, Japan contributes a mere 2% to the total revenues of the Indian IT sector at $1.1 billion. The total offshoring IT market size of the country is around $10.8 billion. That leaves a lot of room for growth for the Indian IT players considering that India is the second largest outsourcer for Japan after China, which has a 50% share of the market.

FE

INTERNATIONAL

23)European banks lined up on Monday to tap state rescue packages designed to ease the financial crisis and there were signs that institutions were beginning to lend to each other again. European shares rose by more than two percent on optimism the financial sector crisis might ease and US shares were also expected to open higher. The rate banks charge each other for dollar and euro loans fell, suggesting that confidence in dealing with other lenders was returning to the market.

FE

24)Crude oil rose for a second day on signs that the Organisation of Petroleum Exporting Countries may cut output to halt a 50 per cent drop in prices since July. OPEC may pare production by 1 million to 2 million barrels a day in stages at an October 24 meeting to stabilise prices, said Mr Chakib Khelil, the group’s President. Crude oil for November delivery rose 69 cents, or 1 per cent, to $72.54 a barrel at 11:03 a.m. on the New York Mercantile Exchange.

BL

25)FEDERAL reserve chairman Ben Bernanke told the US Congress Monday a fresh round of government stimulus is a good idea because there’s a risk the country’s economic weakness could last for some time. Bernanke’s remarks before the House budget committee marked his first endorsement of another round of energising stimulus, some- thing that Democrats on Capitol Hill have been pushing.

ET

26)SHARES in ING Group rebounded more than 20% at the start of trading Monday, after the Dutch government threw the bank and insurer a e10 billion($13.4 billion) life line to shore up its capital position. The move, which will temporarily make the state, ING’s largest share- holder, was announced late Sunday and intended to prevent the comp- any from becoming the latest victim of the global financial crisis.

ET

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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 (20 October 2008)

GENERAL

1)On his nightly stroll, G Madhavan Nair, chairman, Indian Space Research Organisation(ISRO), used to gaze at the moon for its luminous beauty. Now, whenever he hears the word ‘moon’, which he does hundreds of times a day, he thinks of the 1,304-kg space craft carrying the 29-kg moon impact probe that will crash land on the lunar surface, just days after PSLV-C11 takes off at 6.20 am on October 22.

TOI

ECONOMY

2)Inflation figures of the government agencies are in for a big dose of downward correction as commodity prices come off their highs. First off the block will be the Planning Commission. The commission has projected a 6% rate of wholesale price index-based inflation by March 2009, incidentally just about the time the elections to the Lok Sabha are scheduled.

FE

3)Economists feel a repo rate cut by the Reserve Bank of India(RBI) next week would complement its recent liquidity-boosting measures and go a long way in spurring economic growth, which of late, has been sluggish. A bold decision to cut the repo rate by 0.50% would send positive signals to the economy and perk-up the tempo of growth, both in this fiscal and in the next (FY 2010), they said.

ET

CORPORATE / INDUSTRY

4)AT A time when companies are reeling under the burden of ongoing financial turmoil, National Mineral Development Corporation(NMDC), India’s nodal agency for iron ore, has increased domestic iron ore long-term contract prices by up to 46%. Globally, prices of Iron ore and steel are plunging on the back of softening demand. The move is likely hit steelmarkets such as Ispat, Essar, JSW and RINL which have long term contracts with NMDC.

ET

MONEY & BANKING

5)Bankers have said they would wait till the reviewed monetary policy is declared to take a call on lending rate cuts despite the RBI announcing a hefty 2.5% reduction in cash reserve ratio(CRR), injecting Rs 1,00,000 crore into the banking system. Though leading public sector lender, Punjab National Bank(PNB), announced a 0.5% cut in its home, auto and education loan after the CRR cut, several other banks said they wait till the October 24 monetary policy review before taking any decision.

FE

6)Chennai-based, state-run Indian Bank has reported a 14.27 per cent increase in net profit during the second quarter ended September 2008 at Rs 282.93 crore compared with Rs 247.59 crore for the same period last year.

BS

7)State Bank of Travancore(SBT) has recorded 70.37 per cent rise in net profit during the second quarter ended September 2008, over the same period last year. The bank posted a net profit of Rs 113.83 crore as against as 66.81 crore during the corresponding quarter of the previous year.

BL

INSURANCE

8)RELIANCE Anil Dhirubhai Ambani Group (R-ADAG) is looking to buy out the Asian insurance business of US-based financial services giant AIG. The proposed deal, which would exclude AIG’s Indian insurance joint ventures, would make R-ADAG the largest life insurance firm in South East Asia.

ET
 
MARKETS

9)LIKE a dying man clutching at straws, investors have not given up hope altogether. After the benchmark Sensex fell below the 10000 mark on Friday, hopes are pinned on the Nifty’s much-talked about technical support of 3000, which is expected to trigger a rebound driven by short-covering. Investors will also keenly watch the midterm credit policy review on October 24, as the liquidity in the system continues to be tight despite the central bank’s monetary measures. In the past couple of weeks, RBI has cut the cash reserve ratio(CRR) – the amount of money that banks have to maintain with the central bank – by 250 points and relaxed the statutory liquidity ratio(SLR) requirements. Market watchers expect RBI to announce a cut in the repo rate – the rate at which it lends to banks – on the policy day. This is one move that will signal easing interest rates. Even reputed corporates have been borrowing short-term money at ex- orbitant rates. The high interest rates are forcing many of them to scale down their expansion plans. On Friday, the Nifty ended at 3074.35, down 195.95 points, or 6%, over the previous close. In the US too, markets ended weak on Friday, but the losses were limited compared with the previous sessions, sparking hopes of a bounceback early next week.

ET

IPO

10)Initial public offerings(IPOs) of the public sector units(PSUs) could revive investor confidence, which has taken a beating in wake of the global financial crisis, chief financial officers of Indian companies said in a survey. Majority of the 300 chief financial officers (CFOs), who participated in an Assocham survey said they had confidence in the Indian PSU equities.

BS

MUTUAL FUNDS

11)DESPITE mounting pessimism among investors, there is fresh money flowing into equity mutual fund schemes. Barring August, there have been fresh inflows into equity funds this year, an indicator that retail investors have chosen to stay on so far. However, fund managers are apprehensive that October could be a month of high outflows. According to AMFI data, open-ended equity schemes recorded fresh inflow worth Rs 658 crore in September. This genre of fund schemes also witnessed positive inflows between January and July. There was an outflow worth Rs 95 crore in August. Investors are not very keen on closed-ended equity funds, as most schemes of this type have logged outflows in all months after March. Though there have been a few equity New Fund Offerings(NFOs) hitting the market between March and August, very little money flowed in through these offerings. Counting out ICICI Prudential Focused Equity and AIG World Gold(both funds closed in May), almost all schemes launched during the considered period had to prune their mobilisation targests. “Over 40% of fresh money flowing into equity funds is through SIPs. Though there has been some redemption, there is an overwhelming majority who has started investing into SIPs. We are selling equity mutual fund products in these markets as well,” said Tata Mutual Fund managing director Ved Prakash Chaturvedi.

ET

COMMODITIES

12)The host of problems in the global economy, like the subprime meltdown, the financial crisis downturn in the equity markets, along with commodity prices still remaining at high levels, are all forcing investors to rediscover the lustre in gold. According to a recent report by team of analysts headed by Kevin Norrish from Barclays Capital, investing in gold will be seen as a way out of the global economic turmoil. A study made by Merrill Lynch & Co Inc under the team leader Francisco Blanch shows gold prices can shoot up to $1,500 an ounce in the near future.

FE

13)The National Commodity and Derivatives Exchange(NCDEX) has reduced the number of jeera contracts to seven from current nine per year, an exchange release said. NCDEX has dropped the contracts for April and October in 2009, taking the total available contracts to seven in the current calendar. Globally, farm commodities do not have futures contract for the period when spot trade remains subdued due to reasons like harvest, monsoon etc., the official said.

BS

REAL ESTATE

14)Makaan.com, a property portal, is hosting a two-day property show in Hyderabad bringing together more than 20 leading developers and showcasing models of over 100 plus projects. The Business Head of Makaam.com, Mr Aditya Verma, said this is the second such show in Hyderabad and 10th nationwide in a series of such events which help potential buyers get to know what is available in the market place. Property seekers get to choose from options of plots, villas and apartments with price ranging from Rs 5 lakh to Rs 5 crore.

BL

COMMUNICATIONS

15)A leading European telecom giant is set to acquire a little over 43 per cent stake in Unitech’s telecom venture for $1.4 billion. According to highly-placed sources close to the deal, the legal documentation is likely to be completed shortly and announcement to this effect is expected by the weekened or early next week.

BS

INFORMATION TECHNOLOGY
 
16)ASIA Pacific’s IT spending is expected to grow about 10-16% till 2010, beating developed markets, according to a study by consulting firm Zinnov. India and China, in particular, represent large untapped markets in the region. While India’s IT spending is likely to grow between 17.6-24% by 2010, China would grow 10-13%, according to the study. This is in comparison to the 3.3-6.5% increase expected in global IT spending. Expenditure on hardware, software and IT-BPO services comes under IT spending.

ET

17)INFOSYS Technologies has bagged an order from the Union Bank of California, US for its core banking solution(CBS) – Finacle – beating its bigger rival Tata Consultancy Services (TCS). Sources said Infosys and TCS were the two short-listed vendors which comes as a surprise given the presence of banking products companies in the US like Temenos, Fiserve and Metavante, among others.

ET

INTERNATIONAL

18)PRESIDENT Bush, looking for answers to an global economic emergency with just three months left in office, will host an international summit to discuss ways to fix the world financial system but warned on Saturday against reforms that threaten capitalism. “We will work to strengthen and modernise our nations’ fianancial systems so we can help ensure that this crisis doesn’t happen again,” Bush said at the Camp David president retreat. Bush, meeting with French president Nicolas Sarkozy and European commission president Jose Manuel Barroso, did not announce a date or site for the summit. But Sarkozy suggested it be held in the shadow of Wall Street before the end of November.

ET

19)DUTCH financial group ING is in talks with the Dutch government about a state-backed cash injection estimated to be worth up to 9 billion euros($12.12 billion), the Sunday Times reported. The Netherlands’ biggest listed bank, which said on Friday that it was about to announce its first-ever quarterly loss, is expected to announce a deal in the next 24 hours, the paper reported.
 
 ET

 
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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 (17 October 2008)

GENERAL

1)With India searching worldwide for partners in its ambitious future combat soldier programme, New Delhi and Washington on Thursday agreed to cooperate in the project to enhance the capabilities of the modern system.The agreement was reached here during the meeting of Army Chief General Deepak Kapoor and his US counterpart General George W Casey, who arrived in New Delhi on Thursday for a three day visit. The two agreed to cooperate in exchange of military and related – technologies for development of enhanced capabilities for India’s future infantry soldier as a system (F-INSAS) programme.

Indian Express
 
ECONOMY

2)Driven by the steepest week-on-week decline (0.5%) in the wholesale price index (WPI) since April 2000, inflation for the week ended October 4 dropped to 11.44% from 11.8% for the week before. Year-on-year inflation was at 3.22% for the corresponding week last year. While overall inflation continues to trend down, prices of primary articles has inched up in recent weeks. According to economists; the southward journey of inflation numbers is emerging as a convincing trend. They pointed out that the fall in commodity prices along with the tight liquidity scenario will bring down inflaion further in months to come. Saumitra Chaudhary, member Prime Minister’s Economic Advisory Council, even expects inflation to move in to single digits by December.

ET

3)The government has sought data from the Reserve Bank of India to consider a proposal to enhance the investment limit for bank exposure to equity markets as part of several measures to boost domestic institutional participation at a time when foreign institutional investors (FIIs) are exiting. At present, a bank can invest up to 20 per cent of net worth in a single company and up to 40 per cent of net worth in a group. Most banks are well below the present stipulation. The limit may be enhanced only for those banks that have sound risk management practices.

BS

CORPORATE / INDUSTRY

4)Ashok Leyland, the 53-year old brand synonymous with commercial and public transport in the country, will soon see a name change, reflecting its ownership by the Hinduja Group. The Hindujas, who took over Ashok Leyland in 1987, is planning to rename the company Hindja Leyland, in sync with the Group’s strategy to give a common brand identity to various companies within the group, spanning auto- motive to media.

FE

5)Kolkata-based Emami, today, acquired management control of Zandu Pharmaceutical Works after it bought an 18.5 per cent stake from the Parikh family, through an out-of-court settlement, ending months of uncertainty over a hostile takeover bid.

BS

MONEY & BANKING

6)The rupee ended down against the dollar as banks bought the greenback noting persistent outflows from foreign funds on a sharp fall in local share indices. However, dollar sales from the Reserve Bank of India through government-owned banks helped the rupee trim some intraday losses, dealers said. The Indian unit closed at 48.82 to a dollar, weaker by around 30 paise from 48.52 on Wednesday. It moved in 48.63-49.08 range intraday.

BS

7)Rising advances and increasing margins helped HDFC Bank report a 43.3% rise in net profit in the second quarter(Q2) ended September 30. The net profit was at Rs 528 crore against Rs 368 crore in the previous fiscal. Results for the quarter include that of the erstwhile Centurion Bank of Punjab(CBoP) which was amalgamated with the bank with effect from April 1.

ET

8)INDUSIND Bank posted a 51% rise in net profit for the quarter ended September 30,2008, thanks to higher income from fee and interest. During the quarter, the bank registered a net profit of Rs 33.6 cr compared with Rs 22.3 in the corresponding quarter last financial year.

ET

MARKETS

9)The Bombay Stock Exchange(BSE) bellwether, Sensex, plunged 790 points during trade today on fears of an imminent recession in the US, but softening inflation numbers at home and signs of recovery in overseas markets helped it trim losses to 228 points at close. The Sensex started the day with a sharp fall, showing that investors discounted the Reserve Bank of India’s (RBI’s) move to inject more liquidity into the system through a further cut in the Cash Reserve Ratio(CRR). However, the benchmark index came off lows, taking cues from European bourses and indications that US index futures would open higher on Wall Street. The 30-share Sensex ended at 10,581.49 as against yesterday’s close of 10,809.12, a loss of 227.63 points, or 2.11 per cent. The 50-share Nifty of the National Stock Exchange (NSE) also fell by 69.10 points, or 2.07 per cent, to close at 3,269.30.

BS

10)TRADERS in equity futures and options segment are getting to know the taste of a liquidity squeeze. A day after Sebi hiked exposure margins for positions, many brokers are not taking any chances. They have enforced the rule with immediate effect, though the Sebi circular says the revised margins will become effective only from October 21.

ET

11)With FIIs pulling out of stock market, Sebi on Thursday removed the conditions limiting FII’s allocation of funds between debt and equity, a decision that will provide greater flexibility and investment options to overseas investors. “It has been decided to do away with the conditions provided in…FII regulations pertain-ing to restrictions of 70:30 ratio of investment in equity and debt, respectively, with immediate effect,” the market regulator said in a circular.

ET

RIGHTS ISSUE

12)Chettinad Cement Corporation Ltd has approved and revived an earlier proposal for a rights issue to its shareholders to raise Rs 250 crore, according to information provided by the company to the stock exchange. The company plans to issue one new equity share on rights basis for every six held by a shareholder for a total value not exceeding Rs 250 crore.

BL

COMMODITIES

13)Most spices today were back in positive territory to trade a shade higher on the National Commodity and Derivatives Exchange on speculators buying, triggered by lower arrivals in the physical markets. Jeera, the most-active October contract traded Rs 70, or 0.5 percent higher at Rs 10,640 a quintal at the NCDEX on expectations of pick-up in export demand, following lower output in other major producing countries – Syria and Turkey.

BS

14)The pepper futures market, which was on a downward trend in the morning, recovered in the afternoon and closed above Wednesday’s price. Good quantity of pepper is said to have been traded at discount price. Investors were buying back their sales. Domestic buyers as well as exporters were actively buying to meet their commitments at prices below the spot prices.

BL

REAL ESTATE

15)Mid-sized real estate companies have started feeling the heat of the global meltdown. Delhi-based Omaxe Construction and Infrastructure is planning to offload 26% stake to investors and private equity (PE) players and is said to be in talks with sovereign wealth funds from Bahrain, Singapore, Kuwait, and Dubai, apart from Temasak of Singapore.

FE

COMMUNICATION

16)Bharti Airtel, the country’s leading private telecom service provider, is keen to acquire a telecom player similar in size to South African gaint MTN in the emerging markets to become a global brand, said Akhil Gupta, deputy group CEO and managing director of Bharti Enterprises.

BS

INFORMATION TECHNOLOGY

17)The gloomy global economic outlook and reduced demand for technology services in the US and Europe are likely to result in an increased pace o consolidation among small and mid-tier IT services companies in India, analysts say. Export-oriented small and midtier IT companies were able to weather the storm of rapid appreciation in the rupee against the US dollar in 2007 and early 2008, but now they are faced with the stark reality of dwindling orders. Sudin Apte of Forrester Research says that consolidation in the Indian IT industry was on the way anyway but the pace may pick up in the next 18 months.

ET

18)HCL Technologies – the sole bidder left in fray after Infosys pulled out of the race for Axon – has purchased 10.43 per cent stake in the UK-based SAP consulting firm, at 631 pence a share. “We have purchased an additional over 10 per cent of Axon shares for a net value of 631 pence per share through market purchases. It is a smart move and we will reveal our strategy in the coming days,” the HCL Technologies CEO, Mr Vineet Nayar, said.

BL

19)Cisco Systems, the global networking giant has announced the launch of its global talent acceleration programme (GTAP) in India, which will see them, for the first time, providing training directly to fresh gradu-ates as well as experienced professionals. India is the third country where the GTAP has been launched after Jordan and South Africa. The first batch in India will comprise 150 students.

ET

20)Moser Baer on Thursday said it plans to invest over $800 million in capex for its various businesses including optical media and photovoltaics, over the next 18 months. “For FY09, our capex plans stands at $550 million in capex across the Group.”

BL

INTERNATIONAL

21)THE global financial crisis shifted gears on Thursday with fears of recession battering financial markets even as governments sought yet more action to pull the world economy from the brink of collapse. European Union leaders, meeting in Brussels, were to call for action to combat economic decline, including support for industry. Switzerland’s two largest banks – UBS and Credit Suisse – became the latest to say they were receiving emergency funding as the country’s government and other investorss moved to shore them up.

ET

22)JP Morgan Chase has become the largest US bank by assets, surpassing long-time leader Citigroup. Citigroup on Thursday said it ended September with $2.05 trillion of assest, while a day earlier JP Morgan said it ended the month with $2.25 trillion.

ET

23)OIL prices slumped further on Thursday, with Brent crude briefly sliding close to $67 a barrel and the lowest level for more than 15 months, as slowing energy demand took its toll, traders said. Crude oil futures were down more than 50% from record highs of above 147 dollars reached in July, when prices had rocketed on fears of supply disruptions.

ET

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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 (16 October 2008)

GENERAL

1)The 10-day final phase of the Indo-US Malabar naval wargames kicked off on Wednesday, with an American nuclear-powered aircraft carrier, a nuclear submarine and five other warships undertaking combat manoeuvres with seven Indian warships and a diesel-electric submarine in the Arabian Sea.

TOI

ECONOMY

2)The Centre for Monitoring Indian Economy (CMIE), an independent think tank, has scaled down India’s growth rate forecast to 8.7 per cent in 2008-09, as against an earlier projection of 9.4 percent. Interestingly, the CMIE said the revised estimate was ‘not entirely’ due to turmoil in the financial markets, but because of a slowdown in the real estate sector and delays in implementation of investment projects.

BS

CORPORATE / INDUSTRY

3)POWER equipment major Bharat Heavy Electricals(BHEL) has joined the race for Czech power utility company Skoda Power. Skoda Power, a subsidiary of Skoda Holdings, is a leading European manufacturer and supplier of technological equipment and customer services in the field of power generation. The bidding will be held online and BHEL will be competing against 15 other global firms.

ET

4)Indu Projects along with Srinivasa Construction, Kirloskar Brothers and WEG Electric has bagged the Rs 1,447 crore project related to the Pranahita-Chevella lift irrigation scheme. The share of Indu Projects in this contract is expected to be Rs 588 crore.

ET

MONEY & BANKING

5)The rupee fell against the dollar on Wednesday as it tracked the equities market and on month-end dollar demand. “There are no positive signs for the rupee and it will continue to remain under pressure for some time. There was overall dollar buying with a private bank. The rupee opened on a weak note at 48.34/36 and closed at 48.52/54, against the previous close of 48.10.

BL

6)The Reserve Bank of India(RBI) today cut by a further percentage point the cash reserve ratio(CRR) or the amount of mandatory cash that banks need to park with it. The move is with retrospective effect from October 11 and is expected to unlock Rs 40,000 crore into the financial system and pave the way for lower lending rates. This is the third time the central bank has cut the CRR in two weeks, bringing the combined cut to 2.5 percentage points, releasing a total of Rs 100,000 crore into the cash-starved banking sector to allow it to resume normal lending operations.

BS

7)DENA Bank, Andhra Bank, Vijaya Bank and UCO will benefit the most, with the government decision to infuse capital into commercial banks to improve their capital adequacy ratio(CAR). On Wednesday, the government announced that it would provide banks access to finance to raise their capital adequacy ratio(CAR) up to 12%. CAR is the amount of capital that banks need to set aside as a prudential practice based on the risk associated with various assets. Among government-owned banks, Dena Bank, Andhra Bank and UCO Bank have a CAR of less than 12% and its shareholding in these banks has nearly touched 51% – a level below which the government can not reduce its stake if it wants to raise fresh equity.

ET

8)Punjab National Bank(PNB) on Tuesday decided to reduce the interest rates by 50 basis points on housing and car loans, becoming the first lender to announce a rate cut amid series of liquidity injection measures by the Reserve Bank of India (RBI) and the government. The interest rate has been reduced on housing, educational and car loans with effect from Thursday, PNB chairman and MD KC Chakrabarty said.

ET

INSURANCE

9)Private life insurer Max New York Life today launched a new policy aimed at low income group in the rural and urban areas. Max Vijay is a noval insurance and savings product primarily targetted at people in the income bracket of Rs 30,000-3 lakh per annum. The product would be made available to the customers by a wide spread distribution network, including the neighbourhood retail outlets and even NGOs. There is minimum formality in buying the policy and the premiums can be paid easily just like topping up or recharging a mobile phone.

BS

MARKETS

10)The BSE Sensex under performed major global indices today as the Indian benchmark fell 5.87 per cent, or 674 points, to close at 10,809. The broader index, S&P CNX Nifty of the National Stock Exchange (NSE), fell 5.12 per cent, or 180 points, to end the day at 3,338. Heavy selling by foreign institutional investors (FIIs) snapped the two-day rally in domestic stocks.

BS

11)SEBI on Wednesday increased the margin requirement for exchange traded equity derivatives, a step to protect the interest of investors, amid huge volatility being witnessed on bourses in the past few days. “With a view to ensure market safety and safeguard the interest of investors, it has now been decided that the expo- sure margin shall be higher of 10 per cent or 1.5 times the stand- ard deviation,” Sebi said in a circular.

BL

12)IN another move to boost investor sentiment, the government has decided to double foreign investment limits in corporate debt to $6 billion. This is the second time that the investment limits for FIIs in debt has been increased this year. Market participants have welcomed the move in the anticipation that foreign money will flow in to the cash-strapped markets. With the current investment limit of $3 billion fully utilised, bankers are bullish about further foreign investment coming in through this route.

ET

MUTUAL FUNDS

13)AT A time when investing in realty and real estate-related instruments is considered a taboo, a few fund houses – having debt port- folios – are seen holding on to their investments in debt securities issued by real estate companies. Fund houses like LIC Mutual Fund, Canara Robeco Mutual, Reliance Mutual and DSP ML reveal substantial holdings in the real estate sector at the end of September. As per mutual fund tracker MFI Explorer, the liquid and liquid-plus funds of LIC Mutual Fund hold 19% and 65%, respectively, on each portfolios in real estate debt papers. LIC’s floater fund holds nearly 71% investments in papers issued by real estate companies. The Canara Robeco floater has nearly 46% in real estate debt securities.

ET

14)Franklin Templeton Mutual Fund will Thursday launch ‘Plan D’ under Templeton Fixed Horizon Fund Series-XI, a fund house notice said today. Subscription to the 367-day income plan will close Oct 22. The close-ended scheme will invest its entire corpus in fixed-income securities with a maturity profile similar to that of the plan.

BS

15)HDFC Mutual Fund will launch a 90-day fixed term plan on Friday that will close for subscription on Tuesday. HDFC FMP 90D will be under HDFC Fixed Maturity Plans-Series IX.

BS

CORPORATE SCORE

16)Despite a pressure on profitability in some segments like its electricals business, Larsen & Toubro Ltd(L&T) has posted a net profit of Rs 460 crore for the quarter ended September 30,2008, registering an increase of 32% over the corresponding quarter of the previous year.

FE

COMMODITIES

17)Gold prices jumped by Rs 130 to close at Rs 13,330 per 10 gram in the bullion market in New Delhi on buying by stockists and investors as melting stock market boosted the demand for the precious metal as a safe haven.

BS

REAL ESTATE

18)DLF Home Developers Ltd plans to invest Rs 4000 crore in Kerala for the next years for the construction of hotels, shopping malls and office complexes along with the residential apartments. DLF lauched the mega residential project in Kochi on Wednesday which would have 1500 apartments setting new benchmarks for the industry in Kerala.

Indian Express

19)RELIANCE Infrastructure, a unit of Anil Ambani’s ADAG group, would go slow in its real estate projects, where the company has to spend about Rs 5,000 crore over the next five years. The move is because of the general tightening in liquidity conditions.

ET

20)Undeterred by the ongoing global financial meltdown, private equity(PE) firm Red Fort Capital plans to invest Rs 3,200 crore by the next year to cash in on the liquidity crunch in the real estate sector. “Since the financial crisis started last month, the number of proposals to us has increased by over 50 per cent; some of them are well-established, big developers,” Red Fort Capital Director Kuldip Chawlla said.

BS

INFORMATION TECHNOLOGY

21)If you deliver top class products or services, you can weather the current global down turn – because in the information technology business, quality sells, in good times and bad: that was the message industry leaders heard at the National Association of Software and Service Companies'(Nasscom) annual quality summit which opened in Bangalore on Wednesday.

Hindu

22)The current liquidity crunch in India seems to be creating a problem for IT companies when it comes to collection of dues. Several mid-tier IT firms have said that some of their domestic clients have delayed payments by six months to a year.

BL

23)HCL Technologies on Wednesday reported a 15.5% year-on-year and 152.5% quarter-on-quarter increase in consolidated net profit for the first quarter ended September 2008 at Rs 356.2 crore. Consolidated revenue grew 38.6% y-o-y and 9.2% sequentially to Rs 2,369.2 crore, driven by growth in verticals such as life sciences, hi-tech and telecom. HCL declared a 150% interim dividend for the first quarter of its financial year.

ET

INTERNATIONAL

24)European leaders pressed on Wednesday for an overhaul of global financial structures, as signs of global recession mounted. The United States reported its biggest monthly decline in retail sales in more than three years in September, sending stock index futures lower before Wall Street markets opened.

FE

25)Oil prices fell on Wednesday to their lowest in 13 months, dragged down by expectations that economic weakness will cut further into demand for crude. US crude was down $2.70 a barrel at $75.93 by 1335 GMT. It touched a session low of $74.97, its lowest since September last year.

BS

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