Headlines (23 Oct 2009)

Date: 23 October 2009

 Thought for the day

“The greatest thing in life is to keep your mind young.”

-Henry Ford

GENERAL

1)The armed forces are now gearing up to storm the final frontier of space. India’s first dedicated military satellite, a naval communications one, will finally be up and running in the sky  early in 2010.

TOI

ECONOMY

2)THE annual rate of inflation, as measured by the Wholesale Price Index(WPI), touched a twenty-week high of 1.21% for the week ended October 10, a release by the government on Thursday showed. Inflation was 0.92% the week before. The rapidly increasing inflation should not worry the Reserve Bank of India(RBI) just before the upcoming monetary policy review on October 27. The apex bank has already built-in a year-end 5% inflation in its policy  and is unlikely to tinker with things unless there is some  dramatic change.

ET

3)The Planning Commission expects the economy to stage a full recovery by next fiscal and register a growth of 8%. It also expects last year’s final GDP number to be a tad higher than the revised estimate of 6.7%.

FE

CORPORATE / INDUSTRY

4)THE world’s largest pharma company Pfizer is leaving no stones  unturned to pursue inorganic growth in India. The American giant has sent feelers or directly approached several big and mid-sized pharma companies for a stake buy or business alliance. The Indian companies that have been on the American company’s radar include Zydus Cadila, Emcure, Intas Pharma and Mankind Pharma, but most  of the Indian companies have not reciprocated, people familiar with the matter said.

ET

5)Power transmission company KEC International said it has bagged orders aggregating to Rs 470 crore from West Asia and Africa to design, engineer and supply power distribution equipment. The company has bagged orders from clients in Saudi Arabia and Chad for construction and supply of power distribution equipment.

BS

MONEY & BANKING

6)A strong dollar overseas coupled with weak domestic bourses pulled the rupee down on Thursday to its lowest in two weeks at 46.74/75 against the US dollar, a fall of 26 paise over the previous week.

BL

7)The recovery of Indian economy may be more than expected but the credit offtake situation is heading towards bad to worse with every passing fornight. The loan growth in the banking industry has dipped  10.75% for the year ending October 9,2009, as against 12.62% for year ending 25 September 2009, showed the data released by the Reserve Bank of India(RBI), on Thursday.

FE

8)SPURRED by an over 200% growth in non-interest income, Kolkata- based Allahabad Bank on Thursday reported an eight-fold jump in  net profit at Rs 333.59 crore for the quarter ended September 2009 (second quarter) from a modest Rs 41.68 crore in the earlier cor- responding period.

ET

9)The Credit offtake in banks is likely to gather momentum during the second half of the current fiscal year. It will be much better than what the banking sector witnessed during the first six months of this year, said OP Bhatt, chairman, State Bank of India(SBI).

FE

MARKETS

10)With the country’s equity indices continuing their downward journey for the third consecutive session following weak cues from global  markets, coupled with profit booking, overseas investors have been net sellers during the past two days. However, domestic institutional investors(DIIs), especially insurance companies, see this as a  buying opportunity and, therefore, could arrest a strong downslide. Foreign institutional investors(FIIs) were selling, as valuations had shot up and there would be profit-booking at these levels, feel dealers. The 30-share Sensex of BSE lost 219.43 points or 1.29% to end below the 17,000-mark at 16,789.74 points. The broader Nifty of the NSE tanked 75 points or 1.48% to close the day at 4,988.60 points.

FE

11)Marico Shares rose 3.78 per cent to close the day at Rs 101.65 on hopes of robust sales and earnings in the July-September quarter due to higher volumes and lower raw material costs. The company will declare second-quarter results in October. The stock was the biggest gainer in BSE’s ‘A’ group and closed at an all-time high.

BS

IPO

12)The initial public offering(IPO) of Den Networks, through which the cable company is planning to garner around Rs 400 crore, will hit the market on October 28. Den Networks’ IPO of up to two crore equity shares in a price band of Rs 195-205 will start on October 28 and closes on October 30, 2009, a company release said.

ET

MUTUAL FUNDS

 13)DESPITE a dip in new collections and a lacklustre NFO market, the mutual fund industry is drawing new players. Enam, the investment banking and brokerage group controlled by Vallabh Bhansali  and Nimesh Shah, is planning to set up a fund house. Recently, Enam Asset Management has applied for an AMC licence with capital markets regulator Sebi. With this, Enam joins the queue of as many as 17 AMCs, local as well as foreign, awaiting Sebi’s green signal.

ET

CORPORATE SCORE

 14)Engineering and construction major Larsen & Toubro(L&T) posted a 26% rise in net profit at Rs 580.40 crore for the second quarter of FY10, compared with Rs 460.26 crore a year earlier. This was aided by exceptional gains of Rs 107.84 crore. The company recorded a lower-than-expected 2.5% increase in total income, at Rs 7,918.84  crore for the quarter, compared with Rs 7,725.07 crore a year earlier.

FE

15)Asian Paints’ net profit grew 108 per cent to Rs 254.32 crore for the quarter ended September 30, against Rs 121.71 crore for the  year-ago period. Total income has increased to Rs 1,472.91 crore from Rs 1,186.09 crore, a growth of 24 per cent.

BL

16)Bangalore-based biotech major Biocon has more than tripled its net profit to Rs 76 crore in the July-September quarter compared with Rs 25 crore in the same period last year. Total revenue during the  period rose 31 per cent to Rs 581 crore, according to the consoli- dated results announced today.

BS

COMMODITIES

 17)Leading commodity exchange MCX has received market regulator FMC’s approval for launching futures trading in imported thermal coal and is likely to commence business next year. The Forward Markets Commission(FMC) has approved imported thermal coal contracts for launch between January and June 2010, an official FMC statement said.

BL

18)Pure gold prices rallied to a historic peak on the bullion market in Mumbai today even as standard gold hit an all-time high figure on persistent buying by stockists. Standard gold(99.5 purity) shot up by Rs 115 for 10 gm to Rs 16,035. Pure gold(99.9 purity) surged to Rs 16,115. Silver ready(.999 fineness) too strengthened by Rs 205 a kg to Rs 27,645.

BL

COMMUNICATIONS

 19)Not content with its joint bid for Kuwait-listed Zain Telecom, state- owned Bharat Sanchar Nigam Ltd(BSNL) and Mahanagar Telephone Nigam Ltd(MTNL) are planning to set up a special purpose vehicle (SPV) with Delhi-based Vavasi group to participate in a joint venture for Russian and western European telecom operations.

BS

INFORMATION TECHNOLOGY

 20)Microsoft Corp on Thursday finally launched the long-awaited operating system(OS) Windows 7. It will replace the failed OS Vista and the earlier version Windows XP, that still dominates most of the one-billion-plus global desktops.

ET

21)INDIAN outsourcing vendors are gearing up for significant business opportunities from the launch of Microsoft’s Windows 7(Win 7) in the areas of IT consulting, systems integration and infrastructure management as their clients look at migrate from their old operating systems(OS) to Win 7. According to industry estimates, an overwhelming 80% of systems still run on Microsoft’s older OS, Windows XP, which was released eight years ago, making a strong case for upgradation.

ET

22)Wipro Ltd has formed a joint venture with Delhi International Air- port (P) Ltd to offer IT services to airports across the country and abroad. Wipro will own 74 per cent stake in the joint venture, Wipro Airport IT Services Ltd, in which DIAL will hold the rest.

BL

INTERNATIONAL

 23)Oil slipped below $81 on Thursday as a stronger dollar encouraged investors to lock into profits from a 12-month high hit the previous day. US crude oil futures fell 68 cents to $80.69 a barrel by 1359 GMT, having dipped as low as $79.90.

BS

24)China’s economy expanded at the fastest pace in a year, as stimulus spending and record lending growth helped the nation lead the world out of recession. GDP rose 8.9% in the third quarter from a year earlier.

FE

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

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

Headlines (22-10-2009)

Date: 22 October 2009

 Thought for the day

“No iron chain, or outward force of any kind, can ever compel the soul of a person to believe or to disbelieve.”

-Thomas Carlyle

GENERAL

1)Counting of votes in Assembly elections in Maharashtra, Haryana and Arunachal Pradesh will be taken up on Thursday and the 10-day long suspense over who will form the next government is expected to be over in a few hours later.

Indian Express

ECONOMY

2)INDIA’S economy is expected to grow at 6.5% in the current fiscal, an improvement over the earlier official estimate of 6% plus growth, as robust industrial growth in the second half of the current fiscal is expected to more than make up for the monsoon-hit farm sector, according to an assessment of the economy released on Tuesday by the country’s premier thinktank – the Prime Minister’s Economic Advisory Council(EAC).

ET

3)Interest rates are likely to remain soft as FM Pranab Mukherjee on Wednesday ruled out any immediate plans to withdraw the fiscal stimulus. Prime Minister Economic Advisory Council(PMEAC) chairman C Rangarajan also indicated that the current easy monetary policy will continue till March 2010.

TOI

4)In a first government-industry synergy of efforts, a high-level trade delegation is making a two-phase visit to Europe, covering five major countries in a move to attract $6 billion of foreign direct investment(FDI) by 2015 into the country’s textile sector.

BL

CORPORATE / INDUSTRY

5)ESS Dee Aluminium, which recently acquired India Foils, is close to making its first major global acquisition in Europe. The deal is likely to be sealed within the next one or two months. As a precursor to the deal, Ess Dee is preparing to get listed on the London Stock Exchange.

ET

6)Pharma group Ind-Swift on Wednesday said it is looking for a string of acquisitions worth Rs 350 crore in Europe, the West Asia and Latin America to strengthen marketing and distribution network in the regions. The group is also looking at acquiring manufacturing assets within India in the range of RS 10-20 crore to overcome capacity constraints.

FE

7)Areva T&D India has been awarded a Rs 900-crore EPC (engineering, procurement and construction) contract by the Maharashtra State Electricity Transmission Company for turnkey design and construction of 36 sub-stations with 132 kv AND 220 kv configurations.

BL

MONEY & BANKING

8)THE rupee fell to its lowest in more than a week on Wednesday, as a fall in local share prices turned sentiment cautious about the direction of fund flows and some banks bought dollars cheaper to arbitrage offshore. The partially convertible rupee ended at 46.485/495 per dollar, off an early low of 46.52, its weakest since October 12 and 0.8% below its Tuesday’s close of 46.11/12.

ET

9)Private sector lender, Yes Bank has reported a net profit of Rs 111.71 crore for the second quarter ended September 30,2009 as against Rs 63.6 crore during the corresponding period last year, showing a growth of 75.6%.

FE

MARKETS

10)Extending the losses for the second day in succession, the Sensex on Wednesday nosedived by over 200 points on profit-selling in banking and auto segments amid weak Asian cues. The Sensex remained weak for most part of the day and closed lower by 213.84 points at 17,009.17. Similarly, National Stock Exchange index Nifty dropped by 50.85 points to 5,063.60. Marketmen said a weak trend in the Asian region influenced trading sentiment.

ET

11)As the markets and the economy have started booming again, foreign investors are back in business. Nowadays, their attention is primarily centering around the Indian exchanges such as the National Stock Exchange(NSE), National Commodity & Derivatives Exchange Ltd(NCDEX) and Multi Commodity Exchange Ltd(MCX).

FE

MUTUAL FUNDS

12)The domestic mutual fund industry has appreciated the Security and Exchange Board of India’s(Sebi’s) move on clearing and settlement of trades in corporate bonds through clearing corporations. Fund houses believe the step will bring transparency in the bond market and enhance liquidity.

BS

CORPORATE SCORE

13)Riding on strong sales during the current festive season coupled with new launches, the country’s largest two-wheeler manufacturer Hero Honda on Wednesday posted its highest-ever net profit, up 95% at Rs 597.14 crore for the quarter ending September 30 against the same period last year. This is the second consecutive quarter when the companies’ sales have crossed the million unit mark. During the quarter, the company’s total revenues recorded a growth of 26.8% at Rs 4059.44 crore against Rs 3202.05 crore in the corresponding period last fiscal.

FE

14)INFRASTRUCTURE company Jaiprakash Associates(JAL) on Wednesday reported a more than four-times jump in net profit to Rs 870 crore for the September quarter on treasury share sale, even as it announced that it would issue one bonus equity share for every two shares held in the company. The company grossed a profit of Rs 942 crore on sale of treasury shares which helped the company clock a net profit of Rs 870 crore, as against Rs 203 crore in the year-ago quarter.

ET

COMMODITIES

15)A JUMP in traded values of agri products, energy and base metals helped commodity exchanges in India record a 30% year-on-year growth in turnover at Rs 33.63 lakh crore in the first-half of the fiscal, latest data from market regulator Forward Markets Commission (FMC) on 21 commexes, including three national level bourses, show. The increase in agri traded values, by 61% to Rs 5.26 lakh crore, has enabled exchanges such as National Commodity & Derivatives Ex- change(NCDEX) and Ahmedabad-based National Multi Commodity Exchange(NMCE) increase their average daily turnover. NCDEX’s daily turnover has gone up from Rs 2048 crore in the first half of FY09 to Rs 2621 crore in H1 FY10, while NMCE has witnessed spectacular 518% jump at Rs 1,280.5 crore over the same period. Exchange officials attributed the jump in agri volumes to the re- listing of four commodities – potato, soyaoil, rubber and chana.

ET

16)High prices seem not a deterent for customers when it comes to buying gold, particularly on auspicious occasion such as Diwali and Dhanteras. Despite high prices, gold sales across the country during the Diwali week ended October 18 were marginally higher by six per cent at 56 tonnes against 53 tonnes during the same period a year ago, according to the World Gold Council, an industry association of the world’s leading gold mining companies.

BL

17)The country’s largest commodity exchange, MCX, on Wednesday launched futures contracts in four farm commodities – wheat, chana,guarseed and turmeric. The turmeric contract is available for November delivery, chana for January 2010, guarseed and wheat for February 2010 delivery, the exchange said in a circular.

FE

18)Gold prices firmed up further on the bullion market in Mumbai on renewed stockists demand. Standard gold(99.5 purity) rose by Rs 30 for 10 grams to Rs 15,920. Pure gold(99.9 purity) increased Rs 55 for 10 grams to Rs 16,000. Silver ready(.999 fineness) dropped by Rs 190 a kg to Rs 27,440.

BL

COMMUNICATIONS

19)With an estimated Rs 30,000 crore of revenue at stake to bridge a yawning fiscal deficit, Finance Minister Pranab Mukherjee has categorically told Communications Minister A Raja that auctions for licences for third-generation or 3G telecom services cannot spill over to the next calendar year under any circumstances.

BS

INFORMATION TECHNOLOGY

20)IT services provider Mahindra Satyam, formerly Satyam Computer, has secured contracts valued at Arab Emirates Dirhams 30 million (Rs 37.59 crore) in the Middle East and North Africa(MENA) markets in the second quarter of FY09-10. It expects to double its business in this region in the next 18-24 months, leveraging on the growing demand within the government, banking, telecom and real estate sectors, the company said on Wednesday.

ET

21)Software giant Microsoft will formerly launch its much touted operating system(OS) – Windows 7 – in India today. The company is on a good wicket in the country, say analysts, with a nearly 90 per cent market share comprising XP(primarily) and Vista users.

BS

INTERNATIONAL

22)Crude oil futures rose after a US Government report showed a bigger-than-forecast decline in supplies of gasoline. Crude oil for December delivery rose 52 cents, or 0.7 per cent, to $79.64 a barrel at 10:37 a.m. on the New York Mercantile Exchange.

BL

23)Yahoo Inc beat Wall Street’s profit and sales expectations as spending by advertisers showed signs of life in the third quater and as months of cost-cutting and restructuring boosted the Internet company’s bottom line. Net earnings was $186 million, or 13 cents a share, in the third quarter, up from $54.3 million, or 4 cents per share, in the year-earlier quarter.

FE

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

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

Headlines (21 Oct 2009)

Date: 21 October 2009

Thought for the day

“If you care at all, you’ll get some results. If you care enough, you’ll get incredible results.

–Jim Rohn

GENERAL

1)The Obama administration has given a thumbs-up to India’s develop- mental work in Afghanistan, rejecting Islamabad’s complaints that New Delhi’s activities there were detrimental to Pakistan’s security.

 TOI

ECONOMY

2)The Prime Minister’s Economic Advisory Council expects industrial output to grow in double digits through the remainder of 2009-10, implied by its projection of an 8.5% growth in the index of indus- trial production(IIP) for the year. The EAC, chaired by C Rangarajan, will release its economic outlook for 2009-10 on Wednesday.

FE

CORPORATE / INDUSTRY

 3)Tata Motors, India’s largest automobile producer by sales, has bought the remaining stake of 79 per cent in Hispano Carrocera SA, Spain’s largest bus and coach bodies manufacturer, for an undisclosed sum.

BS

4)India’s largest dockyard, Pipavav Shipyard, has signed a contract with ONGC for construction and supply of 12 offshore supply vessels at an aggregate value of about Rs 513.83 crore($111.849 million).

BS

5)Hindustan Construction Company(HCC) on Tuesday said it has bagged an order worth Rs 167.67 crore from Gujarat Water Infra- structure for water supply related works.

FE

MONEY & BANKING

 6)The rupee appreciated by 19 paise against the dollar on Tuesday, buoyed by the greenback’s weakness internationally. The rupee opened at 46.08 and strengthened to touch an intra-day high of
 45.94. It weakened to close at 46.11, against the previous close of 46.30.

BL

7)HOME loan borrowers can now look forward to a fairer deal from banks. A panel constituted by Reserve Bank of India has proposed a transparent pricing structure for floating rate loans where banks cannot manipulate the rate. Unlike the past, when banks passed on the benefit of falling rates only to new customers, the new structure envisages a system where the benchmark rates are automatically revised when a bank’s cost of funds come down.

ET

MARKETS

8)The Indian equity indices, after witnessing intense volatility throughout the trading session, ended the day on a negative terrain because of profit booking. The 30-share Sensex of the BSE lost 103 points or 0.59% to end the day at 17,223.01 points. The broader S&P CNX Nifty of the National Stock Exchange(NSE) was down by 27.35 points or 0.53% to close at 5,114.45 points. Dealers in the market said despite the fall in the market, foreign institutional investors continued to buy and were net buyers at Rs 275.89 crore, while domestic investors were sellers.

FE

9)Industry body Assocham has projected that the key index of Bombay Stock Exchange is likely to touch the 20,000 mark by January 2010, on the back of rising business confidence of investors and FIIs in India. The Chamber said that the National Stock Exchange may also touch the 6,000 mark by that time next year.

ET

IPO / FPO

10)THE government plans to give small investors a 5% discount when it sells shares in three state-run companies, hoping to lure individual investors who have shown lukewarm interest in two previous public issues by government firms. Retail investors in the follow-on public offers of Rural Electrification Corporation and NTPC and the initial public offer of Satluj Jal Vidut Nigam(SJVNL) due in the coming weeks will likely be alloted shares at a discount, two officials in the finance ministry said.

ET

11)Disinvestment in steel giant SAIL seems to be the next in stake sale in PSUs, with the government considering a two-phase follow- on-public offer of the navratna firm, which will fetch the Centre over Rs 8,000 crore at current share prices.

FE

 12)Leading retail chain, The Loot India Pvt Ltd, plans to raise Rs 100 crore through an IPO, likely to be launched in the next calendar year, a top company official said.

BS

BONUS ISSUE

13)Just days after petrochemical giant Reliance Industries (RIL) declared a surprise bonus issue, state-run refiner Indian Oil Corporation(IOC) said it will give one free share for every scrip held by its shareholders. IOC will dole out the bonus shares after a gap of six years. The late time the company had declared a bonus issue was in 2003. The company has fixed October 30 as the record date for the purpose of ascertaining the eligibility of shareholders for issuing the bonus shares.

ET

MUTUAL FUNDS

 14)Companies have pulled out Rs 1.44 lakh crore from the mutual funds in September, signifying an investment pick-up in the economy. The withdrawals were mostly in income and money market schemes, where corporates typically park their surplus cash.

FE

COMMODITIES

 15)Commodity market regulator FMC has said that exchanges are free to fix the transaction fees, provided these do not breach the pre- scribed minimum of Re 1 and maximum of Rs 4 for a business of Rs 1,00,000.

FE

16)Gold held above $1,060 an ounce in Europe on Tuesday as persistent weakness in the dollar fuelled buying of the precious metals as an alternative asset. Platinum and palladium reached their highest in more than a year, buoyed by gold and supply concerns.

BL

17)Pepper market is seen easing with all producing countries except India showing willingness to sell at lower levels, traders said. while stocks of pepper in India are almost exhausted, other producers like Vietnam, Brazil and Indonesia have a adequate inventories and are willing to sell them at lower rates.

FE 

REAL ESTATE

 18)With the real estate market gaining momentum, top builders feel this Diwali has been far better and rewarding for them, compared to the previous one. Navin Raheja, managing director Raheja Developers, says, “We have achieved more than what we had envisaged this Diwali. We had launched a project called Raheja Shillas in Gurgaon, thinking that it will take around two months to sell approximately 70% to 80% of the project. But, with the realty market showing positive signs of revival, we sold the project in only 10 days.”

FE

BUSINESS PROCESS OUTSOURCING

19)ETISALAT DB Telecom, a new entrant in the Indian telecom space yet to launch services, has awarded an end-to-end outsourcing con- tract to three BPO service providers – Tech Mahindra, Aegis and Con- flux, the company announced on Tuesday. The deal, spanning over 5 years, is valued at over Rs 750 crore. Etisalat DB is a joint venture between UAE’s Etisalat group and India’s Dynamic Balwas Group with Etisalat holding 45% in the venture.

ET

INFORMATION TECHNOLOGY

 20)The worst is over for the IT industry, which is expected to in- crease spending by 3.3% in 2010, said research firm Gartner. World- wide IT spending is expected to decline 5.2% in 2009, but is fore- cast to grow by 3.3% to $3.3 trillion in 2010. However, returning to 2008 revenue levels will take longer, predicted the firm.

FE

21)IT Major Tech Mahindra on Tuesday met expectations with a 21% sequential rise in net profit in the September quarter and also announced that it had reached an in-principle agreement with its largest client British Telecom(BT) to protect its future revenues. The country’s fifth largest IT exporter’s net profit rose to Rs 169 crore in the September quarter from Rs 132 crore in the June quarter, while revenues rose 2.6% to Rs 1,141.8 crore.

ET

22)MAHINDRA Satyam, formerly Satyam Computers, has initiated talks with the NYSE for seeking more time to furnish its accounts after the bourse cautioned that it reserves the right to de-list the scandal-hit IT firm if circumstances so warrant.

ET

INTERNATIONAL

23)The price of oil hit $80 for the first time in a year on Tuesday, thanks to growing optimism surrounding global economic recovery, before pulling back on profit-taking traders said. New York’s main contract, light, sweet crude for delivery in November, reached $80.05 a barrel, the highest point since October 14,2008. It later stood at $79.20, down 32 cents compared with Monday’s close.

Hindu

24)Morgan Stanley agreed on Monday to sell its mutual fund business to Invesco Ltd for $1.5 billion, as the Wall Street bank restructures its money-losing asset management division. Under the deal for the retail asset management business, which includes mutual fund subsidiary Van Kampen Investments, Morgan Stanley will get $500 million in cash and a 9.4% stake in Invesco, an independent investment management company.

FE

25)Technology giant Apple has reported a whopping 47% jump net profit at $1.67 billion for the fourth quarter, its “most profitable quarter ever”, driven by record sales of smartphone iphone and Mac Computers.

FE

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

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

Headlines (15-Oct-2009)

Date: 15 October 2009

 Thought for the day

“Self-image sets the boundaries of individual accomplishment.”

— Maxwell Maltz

GENERAL

1)INDIA and Argentina on Wednesday signed 10 agreements, including one for civil nuclear energy cooperation, and pledged to triple their bilateral trade to $3 billion by 2012. Argentinian President Cristina Fernandez de Kirchner arrived here on Tuesday and held extensive discussions with Prime Minister Manmohan Singh on Wednesday. A joint statement was released after the meeting. This was the first visit to India by a head of state from the South American nation in 15 years.

Indian Express

CORPORATE / INDUSTRY

2)Reliance Industries, which owns the world’s biggest oil refining complex, is in advanced talks to acquire refinery and petrochemical units in the US and Europe and could finalise a deal by end-2009, a senior company executive said on Wednesday.

BL

3)MAX India’s Analjit Singh is poised to become the biggest share- holder in EIH and join the founding Oberoi family as co-promoter and vice-chairman of India’s third largest hotel chain, two executives with direct knowledge of the development told ET. A deal, likely to be finalised early next month, will result in Mr Singh owning a little over 26% in EIH, the operator of the Oberoi and Trident brands and the third largest hotel chain behind Indian Hotels and ITC.

ET

4)Larsen & Toubro (L&T) has bagged order worth Rs 966 crore in the construction-related sector from Sterlite Industries, Uttar Pradesh Jal Nigam and Gujarat Water Infrastructure. The company will build a four lakh tonne per annum smelter plant at Tuticorin in Tamil Nadu for Sterlite Industries at an estimated cost of Rs 225 crore. The project is to be completed in 18 months.

BL

5)ADITYA Birla Nuvo, the sole diversified company of the $29-billion Aditya Birla group, is finalising a plan to spin off its financial ser- vices business comprising asset management, insurance, stockbroking and distribution to a wholly-owned subsidiary to unlock share- holders value.

ET

MONEY & BANKING

6)The rupee gained 35 paise against the dollar on Wednesday and came very close to breaching the 46 level, on the back of sustained FII inflows. The domestic currency opened with a positive gap at 46.28 and rose to touch an intra-day high of 46.02. It closed at 46.13, against Monday’s close of 46.48/49. These levels were last seen in September 2008.

BL

7)THE PRIME minister’s top economic adviser has said that the Re- serve Bank of India is unlikely to change key rates in response to rising inflation when it meets on October 27 for a review of monetary policy. C Rangarajan, a former RBI governor and the chairman of the Prime Minister’s Economic Advisory Council, said on Tuesday that the central bank can maintain its accommodative monetary policy for the time being unless there is a sharp spike in inflation.

ET

8)THE country’s second largest private bank has beat analysts’ expectations with a net profit of Rs 687 crore for the quarter ended September ’09 – a 30.2% increase over Rs 528 crore reported in the corresponding period last year.

ET

9)Riding on good performance on various parameters like net interest income(NII), total non-interest income and core fee-income, the net profit of IndusInd Bank grew by 131% to Rs 77.82 crore for the quarter ended September 30, 2009 as against Rs 33.66 crore in the corresponding period a year ago.

FE

10)Bajaj Auto Finance on Wednesday said its net profit jumped more than fourfold to Rs 21.69 crore for the quarter ended September 30, 2009, over the same period last year. Total income rose to Rs 219.46 crore in the latest quarter, against Rs 136.82 crore in the same period last fiscal, Bajaj Auto Finance said in a filing to the BSE.

FE

INSURANCE

 11)Universal life policies (ULP) will soon make a debut in the country with the Insurance Regulatory and Development Authority (Irda) approving ULPs of two life insurance companies, Bharti Axa Life Insurance and Max New York Life. Under ULPs, customers have flexibility in premium, sum assured as well as the tenure of the product.

BS

MARKETS

 12)Strong corporate earnings, encouraging Index of Industrial Production numbers and bullish sentiment across the globe pushed the benchmark indices to a 17-month high. The BSE Sensex soared 1.2 per cent to close at 17,231 and the NSE Nifty was up 1.27 per cent at 5,118. The Sensex rose to 17,274.59 during intra-day trade, its highest since May 21, 2008. All the sectoral indices on the BSE ended in the black, except the TECK Index. FIIs continued their buying spree as they were net buyers of equity for Rs 1,443.78 crore, while domestic institutional investors were net sellers of equity worth of Rs 196.9 crore.

BL

13)The ongoing tariff war seems to be doing more damage than good to the valuations of telecom scrips. In what seems to be a reflection of shifting investor priorities, IT major Infosys has emerged as a more valuable firm than India’s biggest mobile operator – Bharti Airtel – on the basis of Wednesday’s market capitalisation. At the end of Wednesday’s trading session, the M-cap of Infosys was Rs 1.29 lakh crore($28 billion), a tad higher than Bharti’s M-cap of Rs 1.28 lakh crore($27.9 billion). With this, Infosys has re- placed Bharti to become the seventh-most valuable company in the Indian stock market.

ET

14)Securities and Exchange Board of India has cancelled the certificate of registration granted to Pinnacle Shares Registry Private Ltd as registrar to the issue and share transfer agent with effect from February 28, 2010. During the intervening period, the regulator has ordered the firm not to take on new clients.

FE

IPO

15)The initial public offer(IPO) of Indiabulls Power Limited, which was fully subscribed within minutes of its opening, was further subscribed to by close to nine times on Wednesday with a strong response of 16.2 times from HNIs and three times from non-institutional segments. The issue will close on Thursday.

BS

MUTUAL FUNDS

16)IT IS a case of old wine in a new bottle many a time when it comes to new fund offerings(NFOs) by mutual fund houses. But fund houses may no longer have the freedom to launch NFOs that have similar features as some of their existing schemes.

ET

COMMODITIES

17)The National Commodity and Derivatives Exchange(NCDEX) has reduced the special margin, which is imposed to curb volatility, by half to 10% on buyers side in all futures contracts in turmeric. The ex- change had increased the special margin in August up to 20% on buyers side in all turmeric futures contracts and yet to be launched contracts. It has now been brought down to 10%.

ET

18)Copper rose on Wednesday, spurred by a weak dollar and data showing Chinese imports of the metal jumped unexpectedly in September. Cop- per for three-month’s delivery on the London Metal Exchange traded at $6,255 a tonne at 0928 GMT from a close of $6,140 on Tuesday.

BL

19)With only few days left for Diwali, gold prices today scaled a new high of Rs 16,250 per 10 gram on hectic buying by stockists to meet the enhanced festival demand from retailers and fabricators. Marketmen said gold soared in tune with global rates, where prices touched a new peak of $1,070.80 an ounce on weakening of dollar against its major rivals.

ET

20)The price of guar seed, an important cattlefeed crop, may rise by another 25 per cent by December, due to record low output estimates for this kharif season. It has already jumped 10 per cent in one month, to trade at more than Rs 2,300 a quintal in Rajasthan, the major producer.

BS

REAL ESTATE

 21)The demand pick-up in housing, improved cash position, and new project launches have put real-estate companies back into the hiring mode. Builders including Unitech Ltd, Ansal API and BPTP have launched recruitment drives for civil engineers and sales and marketing professionals for new and existing projects, as the market limps back into buisness after a prolonged slowdown.

BL

INFORMATION TECHNOLOGY

 22)HAVING sold its back-office and IT captives to TCS and Wipro last year, Citigroup is now exploring the sale of its internal technology platforms bundled with outsourcing contracts worth $350 million, as the bank seeks to exit non-core businesses and outsource more processes.

ET

INTERNATIONAL

 23)OIL prices on Wednesday soared to new highs for the year because of a weak dollar and the upcoming holiday shopping season that could bring more traffic to the roads. Benchmar crude for November delivery added 78 cents to $74.93 on the New York Mercantile Ex- change. Prices jumped as high as $75.40 a barrel earlier in the day.

ET

24)THE Dow Jones industrials neared the 10,000-milestone on Wednesday for the first time in a year as robust results from JP Morgan Chase and Intel boosted the outlook for earnings. Major indexes gained more than 1%, and the Dow’s reclaiming the psychological 10,000 level could convince some doubters of the durability of the stock market’s seven-month rally. JP Morgan, the first major US bank to report quarterly earnings, said profits rose sharply as underwriting revenue at its investment bank offset deeper losses on credit cards and other consumer loans.

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 (13 Oct 2009)

Date: 13 October 2009

 Thought for the day

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

 –Napolean Hill

 GENERAL

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

TOI

ECONOMY

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

ET

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

FE

CORPORATE / INDUSTRY

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

BS

MONEY & BANKING

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

 BL

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

ET

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

FE

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

FE

INSURANCE

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

FE

MARKETS

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

FE

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

ET

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

FE

 IPO

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

FE

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

FE

STOCK SPLIT

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

FE

MUTUAL FUNDS

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

ET

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

ET

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

ET

COMMODITIES

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

BL

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

BS

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

 BS

 COMMUNICATIONS

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

ET

BUSINESS PROCESS OUTSOURCING

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

ET

INFORMATION TECHNOLOGY

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

ET

INTERNATIONAL

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

BS

 FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

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

Headlines (09 October 2009)

Date: 09 October 2009

 Thought for the day

“The only way to the top is by persistent, intelligent, hard work.”

— A. T. Mercier

 GENERAL

1)A 200-strong international delegation, headed by Commonwealth Games Federation president Mike Fennell, visited seven Games venues across Delhi on Thursday to appraise the progress of the various projects.

Hindu

ECONOMY

 2)RISE in annual inflation as measured by the Wholesale Price Index (WPI) for the week ended September 26 was at 0.7%, marginally lower than previous week’s level of 0.83% as the food items became cheaper, a release by the commerce ministry on Thursday said.

ET

 CORPORATE / INDUSTRY

 3)Government-owned Steel Authority of India Ltd(SAIL), the country’s
 largest steel producer, has emerged as the top profit-making steel company in the first six months of the calendar year, leaving behind global majors like Arcelor Mittal, Posco, Bao Steel and Nippon. Sector analysts expect this trend to continue at least for the next two-three quarters.

BS

 4)THE Rs 1,100-crore Intas Pharmaceuticals has joined the swine flu drug discovery bandwagon. The Ahmedabad-based pharma major has joined hands with US-based Amarillo Biosciences Inc(ABI) for carrying out clinical trials of drug lozenges to combat influenza.

ET

5)Larsen & Toubro (L&T), the country’s largest engineering company, has raised $600 million(Rs 2,800 crore) through sale of shares and bonds to institutional investors to expand its infrastructure business.

ET

6)IVRCL Infrastructure & Projects Limited (IVRCL) has bagged orders worth Rs 523.31 crore. It has got a project worth Rs 287 crore from UP Jal Nigam, Allahabad for survey, investigation, design, construction, testing and commissioning of sewerage works.

BS

 7)Kolkata-based Shree Cement today announced its foray into commercial power business and will invest Rs 1,200 crore in the next two years to set up a 300 MW thermal power plant in Rajasthan.

BS

 MONEY & BANKING

 8)Rupee rose against the dollar for the fifth consecutive day as banks sold the greenback for foreign funds and also as the US unit declined globally, dealers said. The Indian unit ended at 46.33 a dollar compared with 46.66 on Wednesday. It rose to a one-year high of Rs 46.21 today.

 BL

 9)Leading bankers have started finalising modalities for the implementation of 1% interest rate subvention on home loans. The central government had earlier announced the decision on subvention of home loans on September 30. The Subvention scheme will be applicable for all individuals housing loans up to Rs 10 lakh and for properties costing up to Rs 20 lakh.

FE

INSURANCE

 10)Future Generali India Life Insurance on Thursday said it has launched a long-term insurance-cum-investment plan, Future Freedom Plus. The plan allows customers to choose a limited or regular premium payment options on policy term ranging from 10 to 20 years, with three fund options to choose, the company said in a statement.

FE

MARKETS

 11)Gains in consumer goods and select blue chips helped shares end slightly higher on Thursday. But telecoms remained weak, weighed down by concerns about the impact of tariff cuts. The Bombay Stock Exchange’s 30-stock Sensitive Index rose 36.88 points, or 0.22 per cent, to 16,843.54, after trading between 16,775.36 and 16,998.52. Technology bellwether Infosys Technologies will kick off the earnings season Friday when it reports its second quarter results. On the National Stock Exchange, the 50-stock S&P CNX Nifty closed up 16.50, 0.3 per cent, at 5,002.25.

BL

12)Samvat 2065, to end in the next 10 days, is proving to be quite prosperous for equity investors as it has given the highest returns for any such year in recent times. Samvat 2065(named after king Vikramaditya) gave the best returns in all years since 1991 from when data are available. Even veterans say they don’t remember if the equity market has ever given higher returns than this year. The Sensex has risen 87 per cent in the current Samvat year so far. In Samvat 2064, the Sensex was down by 52.4 per cent. Only thrice since 1991 has the Sensex given returns of over 60 per cent – in 2006, 2003 and 1999.

BS

13)The Reliance Industries Ltd’s(RIL) announcement to issue bonues share in the ratio of 1:1 post market hours on Wednesday helped the company reverse consecutive four days of losses in the domestic equity bourses. But the stock could not perform in line with the market ex-pectation due to lack of fresh buying at higher prices, according to traders and dealers. The stock opened the day with an upward gap of 2.42% at Rs 2,150 on the BSE and surged 5.24% to touch an intra- day high of Rs 2,209 on Thursday. However, profit booking at higher levels resulted in the stock closing the day at Rs 2,119, a gain of Rs 20.20 or 0.96%. “The share price movement was below market expectations,” said Ambareesh Baliga, VP, Karvy Stock Broking. “The market had expected the RIL stocks to trade at Rs 2,200-Rs 2,225. However, there was hardly any liquidity at those levels,” he said.

FE

IPO

14)Standard Chartered Private Equity Ltd(SCPEL), the PE arm of glo- bal banking major Standard Chartered, is considering an exit from its portfolio company, Endurance Technologies. The exit will be via an initial public offer(IPO). Endurance’s IPO is expected to be floated early next year.

FE

MUTUAL FUNDS

 15)Record gold prices may be deterring jewellery buyers, but they are triggering trading interest in Gold Exchange Traded Funds (ETFs). All gold-ETFs have seen volumes double in the last two days. GoldBEeS, which saw an average of 22,000 units traded last week, has seen a surge to 42,000 trades in the last two days.

BL 

COMMODITIES

16)National Commodity and Derivatives Exchange said on Thursday it will extend the evening trading session by 25 minutes to 11:55 pm between November 2,2009 and March 13,2010. Metal and energy futures, which are traded between 10 am and 11:30 pm on Monday to Friday, will now be traded till 11:55 pm, it said in a statement on its website.

FE

17)Copper rose to a two-week high on Thursday, as a weaker dollar attracted investors holding other currencies, while aluminium was given extra impetus by results from Alcoa. Copper for three-month’s delivery on the London Metal Exchange rose nearly 3 per cent and traded at $6,263 a tonne at 0958 GMT from a close of $6,095 on Wednesday. Aluminium rose more than 2 per cent, to $1,889 from $1,845.

BL

18)Gold slipped back below $1,050 an ounce in Europe on Thursday as oil prices slid briefly into the red, but persistent weakness in the dollar kept the metal within sight of the record high it hit earlier in the session. Gold’s gains lifted other precious metals, with Silver reaching its strongest level since July 2008 and palladium hitting a 13-month peak.

FE

19)Guar seed futures on the Multi Commodity is expected to rise by at- least 4-5% in the coming weeks to reach around Rs 2,450 per quintal over fears of a 30%-40% drop in output in main growing regions of the country.

FE

 REAL ESTATE

 20)After a lull, realty has begun to pick up pace in Pune. Fresh investments are being made in the hospitality and retail segments indicating early signs of revival in the market. Mumbai-based Wadhawan Retail has opened its first outlet in Pune. Realty company Nyati group has completed its first hospitality investment with a boutique hotel. The latest report published by Cushman & Wakefield(C&W) says Pune city will see 51% compounded growth over the next five years – the highest for any Indian city.

FE

 COMMUNICATIONS

21)THE telecom regulator on Thursday said it will not insist that mobile phone firms shift to charging customers for usage in seconds, instead of minutes now, as jittery investors continued to sell telecom stocks over fears about their revenue and profits.

ET

22)After cutting mobile telephony tariffs 50 per cent over the past five months, telecom operators are getting ready to slash rates another 25 per cent in the next two to three months as new competitors crowd into the market. About five new operators are ready to start operations by the end of this year, adding to the over eight incumbents slugging it out to grab a share in a mobile market that is expected to grow to 750 million subscribers by 2012 against over 450 million at present.

BS

23)MTNL is looking at expanding its operation to the African continent after losing ground to the nimble private operators in its home turf. The company, which runs telecom operation in India’s two main metros – Delhi and Mumbai – has joined the race to acquire majority stake in Zambia Telecommunication company (Zamtel). The Zambian government plans to sell 75% equity of Zamtel, valued at around $200 million in a bid to stabilise the ailing operator.

 ET

 INFORMATION TECHNOLOGY

 24)THE recovery in spending on information technology (IT) products and related services from the world’s largest economy, United States, could be well underway from the fourth quarter(Q4) of 2009 and is expected to strengthen from 2010, according to projections by a research body.

ET

25)UK-based electricity and gas company National Grid today said that it has decided to outsource some its back office administrative support services to Tata Consultancy Services(TCS) in India, even as the workers’ union represented by GMB protested this move.

BS

26)Education and placement company Edserv Softsystems said it has bagged an order worth Rs 100 crore from the government for providing training to unemployed and under-employed youth across India.

BS

INTERNATIONAL

 27)Crude oil was little changed, reversing an earlier gain of as much as 1.5 per cent. Crude oil futures for November delivery fell 9 cents to $69.48 a barrel at 9:22 a.m. on the New York Mercantile Exchange. Oil earlier rose as high as $70.58 a barrel.

BL

 28)The European Central Bank(ECB) kept its interest rates at a record low of 1 per cent on Thursday and its head Jean-Claude Trichet is expected to caution against hopes of a speedy economic recovery.

BS

 29)The Bank of England (BoE) left interest rates at a record low of 0.5 per cent for the seventh month running on Thursday and said it would keep its POUND 175-billion asset buying programme in place.

BS

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

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

Headlines (08 October 2009)

Date: 08 October 2009

Thought for the day

“One person with a commitment is worth more than 100 people who have only an interest.”

–Mary Crowley

GENERAL

1)Buoyed by the surge in its trade with the United Arab Emirates (UAE), which has touched an astounding $44.5 billion, New Delhi is looking at substantiating its ties with Abu Dhabi to cover areas such as defence and nuclear energy.
 
Hindu

ECONOMY

 2)THE Indian economy would grow at least 7% in the current financial year, according to Suresh Tendulkar, former chairman of the Prime Minister’s Economic Advisory Council (PMEAC). “Clearly, there is a problem about monsoon. But other sectors, services and manufactu- ring, are showing signs of improvement. I think, we should be able to clock at least 7%,” he said on the sidelines of a function hosted by the SME Chamber of India.

ET

CORPORATE / INDUSTRY

 3)THE stage is set for yet another bidding war for ownership of an overseas resource company. Essar Group’s Essar Minerals and the Delhi-based Jindal Steel & Power, are in race to acquire Perth-based coal and coke producer Rocklands Richfield, that will increase their ownership of key resources and lower production costs in their businesses.

ET

4)Government-owned Bharat Heavy Electricals Ltd(BHEL) is looking at Africa for setting up its first manufacturing facility abroad. The company had earlier zeroed in on the UAE, but decided to locate the plant in Africa.

BS

5)Tata Steel has reported a 19% rise in sales in the second quarter ended September 2009, in line with improved steel consumption across the country. One of the country’s largest private steel producers saw sales cross 1,456,000 tonne in the second quarter of 2009-10 compared to 12,20,000 tonne in the previous corresponding period.

ET

 6)APPAREL major Raymond which had recently restructured its 50:50 JV with Belgian denim major UCO NV, due to the global recession, is now seeing a revival of fortunes. The joint venture – Raymond UCO Denim – is hopeful the Christmas-New Year sales will further boost performance.

ET

MONEY & BANKING

 7)The rupee extended its gains for the fourth consecutive trading session, appreciating by 22 paise against the dollar on Wednesday. The domestic currency opened at 46.84 and strengthened to touch an intra-day high of 46.49. It gave up some of its gains to close at 46.66 as against the previous close of 46.88. The rupee had last touched 46.65 levels in the first week of June this year.

BL

8)Credit offtake continues to be a matter of disappointment for the domestic banking industry. There has been a further slackening in the demands of credit growth, according to a data released by the Reserve Bank of India(RBI) on Wednesday. Credit growth has further dipped to 12.62% for the fortnight ending September 25,2009, as against 13.24% recorded on September 11, 2009. At the same time, deposit growth has also witnessed a drop to 19.79% during the period from 20.19% recorded on the previous fortnight.

FE

9)The turnover in the currency futures segment in the MCX’SX touched a record high of Rs 10,798 crore on Wednesday. Currency dealers attributed this sharp spike in volume to high amount of volatility in over-the-counter (OTC) market. On the other hand, the NSE currency futures segment clocked a turnover of Rs 7,985 crore with a total volume of 16.92 lakh contracts.

FE

MARKETS

 10)Equity indices witnessed huge volatility throughout trading session and ended the day on negative terrain, on the back of intense selling in the technology stocks. The 30-share Sensex of the Bombay Stock Exchange lost 151.88 points or 0.90% to close at 16,806.66 points. The Nifty of the National Stock Exchange was down by 41.65 points. or 0.83% and ended the day below the 5,000 mark at 4,985.75 points.

FE

IPO / FPO

 11)NTPC, the country’s largest power producer, is all set to hit the market with its follow on public offer in January 2010. The offer involve government offering 5% of its equity in the company into the market. The move is part of the United Progressive Alliance(UPA) government’s disinvestment programme, under which it intends to sell minority stake in select public sector undertakings.

ET

 12)Private sector insurer Reliance Life insurance on Wednesday said it is planning to file draft prospectus for initial public offer with the market regulator Sebi in the last quarter of the current fiscal subject to regulatory approval.

FE

 13)Indiabulls Power, a subsidiary of Indiabulls Real Estate, plans an initial public offering of Rs 1,758 crore which will include a green shoe option of Rs 229 crore. In terms of total shares, this will mean offloading 39.07 crore shares at a price band of Rs 40-45. The green shoe component comprises 5.09 crore shares. The issue will open on October 12 and close on October 15 and is being lead managed by Morgan Stanley India.

BL

BONUS SHARE

14)In a big Diwali gift for its shareholders, the Reliance Industries board today recommended one bonus share for every share held and a dividend of Rs 13 a share. The announcements are subject to share- holders’ approval. The last time India’s largest private sector company gave bonus shares to its shareholders was 12 years ago. This year, 39 companies have so far announced bonus shares. Before RIL, Indian Corporation had announced a 1:1 bonus issue last month.

BS

MUTUAL FUNDS

 15)Fidelity Mutual Fund is launching a new feature Auto Switch for its funds which allows investors to automatically switch in to and switch out of Fidelity’s equity funds based on pre-set entry and exit trigger levels. With the Auto Switch – Entry Facility, investors can invest in any of Fidelity’s fixed income funds and switch in to any Fidelity’s equity funds at pre-set BSE Sensex levels. Conversely, the new facility allows investors to switch in to fixed income funds, the appreciation of their investments in equity funds or the appreciation plus the principal at pre-set NAV levels.
 
Indian Express

COMMODITIES

 16)Gold shot to a record high on Wednesday, topping the previous day’s gains, as dollar weakness and mounting worries about potential inflation enticed more investors toward the precious metal. Spot gold hit a historic $1,048.20 an ounce and was at $1,041.95 an ounce by 1200 GMT, versus $1,040.85 quoted late in New York on Tuesday.

BL

17)Gold prices on Wednesday spurted by Rs 160 per 10 gm on the bullion market in New Delhi, while silver touched one-year high of Rs 27,000 a kg on strong global cues as dollar continued to fall against major currencies, boosting the appeal of the metals as safer investment option.

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REAL ESTATE

 18)DELHI-based Ansal Properties and Infrastructure (API) is in talks with at least two private equity firms – Red Fort India Real Estate Fund and Bahrain-based Investate Realty – to raise up to $100 million(Rs 475 crore) through equity stake sales in two projects, two people close to the situation said.

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COMMUNICATIONS

19)Barely a week after talks with South Africa’s MTN failed, the country’s largest telecom operator Bharti Airtel on Wednesday said it may bid to acquire Luxembourg-based telecom firm Millicom’s operations in Sri Lanka. “We are considering it… that much I can say,” Bharti Airtel’s CEO Manoj Kohli said on the sidelines of a seminar.

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INFORMATION TECHNOLOGY

20)INDIA’S largest software services exporter Tata Consultancy Ser vices(TCS) is evaluating its currency hedging strategy as the rupee has appreciated sharply against the dollar in the past two days, a top company executive said on Wednesday. Domestic IT companies are mostly dependent on export earnings in dollar terms. Any weakness in the US dollar against the rupee leads to an adverse impact on their revenues.

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21)IT services firm Mahindra Satyam is stitching a joint-go-to-market strategy with Vision Solutions, a world-wide provider of disaster recovery(DR) and other solutions, to bolster revenues. The company on Wednesday announced that it has entered into a global alliance with Vision Solutions, hoping to tap the multi-million dollar business in disaster recovery other solutions meant to ensure non-stop operations of systems on an IBM platform. The value-added-services will be on offer to Mahindra Satyam’s clients which include Fortune 500 firms to help them save potential business losses of over a million dollars an hour in the event of any major disaster like a Tsunami.

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INTERNATIONAL

22)Indian-origin scientist Dr Venkatraman Ramakrishnan shares the Nobel Prize in Chemistry this year with Dr Thomas A. Steitz and Dr Ada E.Yonath, it was announced in Stockholm on Wednesday. The Royal Swedish Academy of Sciences said the Nobel Prize in Chemistry for 2009 awards studies of one of life’s core processes: The ribosome’s translation of DNA information into life. Ribosome produces proteins, which in turn control the chemistry in all living organisms. As ribosomes are crucial to life, they are also a major target for new antibiotics.

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23)Oil prices rose for the third straight day on Wednesday, to about $71 a barrel, after an industry report showed a drawdown in US crude inventories and gave support to the view that demand was recovering.

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24)Mammoth IPOs by the Brazilian unit of Spanish bank Banco Santander and the US risk specialist Verisk Analytics Inc raised nearly $10 billion on Tuesday, almost twice the amount raised by US-listed IPOs in 2009. Banco Santander (Brasil) SA raised $8.05 billion, after selling 600 million units for 23.5 reais each, within the estimated range.

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