Headlines (03 Sep 2009)

Date: 03 September 2009

Thought for the day

 “Finding is reserved for those that search.”

 – Jim Rohn

GENERAL

1)Concerned at rising prices of essential commodities and food items, the government on Wednesday exempted transporting of foodgrain, fertilisers and petro products through rail and waterways from ser- vice tax. The exemption is with effect from September 1, a notification from the Central Board of Excise and Customs (CBEC) said.

TOI

CORPORATE / INDUSTRY

2)Bajaj Auto has for the first time in 10 months posted a positive growth of 4.09% in motorcycle sales. The country’s second largest two-wheeler manufacturer sold 1,82,441 units in August against 1,75,274 units during the same month last year.

FE

3)GODREJ Appliances, one of the largest home appliances makers in the country, is planning to make a nationwide foray into the television segment over the next one year. The company expects to corner a 5% market share and generate revenue of around Rs 600 crore by March 2011.

ET

4)Prices of hot rolled steel are on the rise again, with leading steel makers increasing rates this month. Steel Authority of India(SAIL) has increased its prices in flat products by about Rs 1,500 this month. According to Mr S K Roongta, Chairma, SAIL, prices are moving up on the back of positive sentiment. Tata Steel, too, has increased rates of HR coils by about 3-4 per cent. HR coils are used in the making of automobiles and consumer durables, amongst other things.

BL

MONEY & BANKING

5)The rupee appreciated marginally against the dollar on Wednesday after the RBI stepped in to arrest the domestic currency’s losses. It opened weak at 49.18 and touched a one-month low of 49.20. It closed at 48.96, against the previous close of 49.02/04.

BL

6)WITH sluggish demand for credit, banks have invested a record Rs 1 lakh crore in mutual funds from this April to July, which is nearly three times what they have extended as loans during the period.

ET

7)Bank of India(BoI) has earmarked as much as Rs 600 crore in a bid to penetrate over 14 foreign locations in the current financial year. The allocated funds would enable BoI to meeet the regulatory requirements in respective countries to open new branches or float subsidiary companies.

FE

8)The turnover of interest rate futures traded on the NSE fell to Rs 113 crore on Wednesday, against Rs 267 crore recorded on Monday, the first day of its launch. On Tuesday too the turnover was lower at Rs 147 crore. Many banks and primary dealers do not have systems in place and they need lot of approvals before they start trading. In IRF, the trade will pickup only after a few weeks, a market participant said.

BL

INSURANCE

9)A government-appointed committee on Wednesday proposed phased elimination of upfront commission paid to insurance agents, a suggestion if accepted would directly affect 30 lakh agents.

FE

MARKETS

10)Shares were highly volatile and ended lower for a third straight session on Wednesday, as cues from global markets remained negative. The Bombay Stock Exchange’s Sensitive Index closed down 83.73 points, or 0.5 per cent, at 15,467.46, after trading between 15,392.68 and 15,628.10. On the National Stock Exchange, the 50-stock S&P CNX Nifty fell 17 points, or 0.4 per cent, to close at 4,608.35.

BL

11)DELHI Stock Exchange(DSE), one of the demutualised regional stock exchanges in the country, may soon become operational after being dormant for the past several years. The DSE management is working on a revival plan, and is hopeful that trading will begin in the next few months.

ET

IPO / FPO

12)To ensure that a large batch of disinvestment proposals hit the primary market this fiscal, the government would depend on the follow on public offers from listed companies, instead of pushing for initial public offers, as the shelf of such proposals is nearly empty now. This means 2009-10 may not see new public sector firms debuting in the stock market, after NHPC and Oil India. For the stock market, however, even that would spell good news as the available stock of blue chip public sector companies will expand.

FE

13)OIL India Ltd, whose Rs 2,772-crore IPO is set to open on September 7, is not jittery about the lukewarm response NHPC’s issue got from the bourses on Tuesday. NHPC’s shares closed marginally above the issue price on Tuesday.

BL

OPEN OFFER

 14)Infrastructure major IL&FS, the new promoter of Maytas Infra, today made an offer to buy an additional 20 per cent stake in the crisis-hit firm at Rs 112.80 a share. In a public announcement made to the shareholders of Maytas Infra, IL&FS said its open offer would begin on October 24 and close on November 12.

BS

MUTUAL FUNDS

15)Improved condition of equity markets, coupled with inflows into debt schemes, has led to a surge in the assets under management (AUM) of several big fund houses in August. Several big assets management companies(AMC), including LICMF, Birla Sun Life MF, Kotak Mahindra MF, Reliance MF, UTI MF and ICICI Pru, have listed smart gains in August compared to July. As per data provided by Association of Mutual Funds in India, 38 fund houses witnessed a rise of Rs 59,965.78 crore or 8.69% to Rs 7,49,911.91 crore in August, compared to Rs 6,89,946.12 crore in July. Reliance MF continued to remain at top spot with its AUM for August at Rs 1,17,313.78 crore, gaining Rs 8,979.40 crore or 8.29%, as compared to Rs 1,08,334.38 crore in July.

FE

COMMODITIES

16)Gold prices held near $955 an ounce in Europe on Wednesday, awaiting fresh direction from the currency markets ahead of key US economic data due later. Losses on equity markets after Wall Street’s sell-off on Tuesday is reducing appetite for nominally higher-risk assets like commodities, with which gold is often grouped in so- called baskets for trading purposes, analysts said. Spot gold was bid at $955.80 an ounce at 1117 GMT, against $955.85 an ounce late in New York on Tuesday.

BL

REAL ESTATE

 17)WITH the buyers for residential property gradually returning, especially in the key regions like New Delhi-NCR and Mumbai, property prices here have moved upwards by 10-15%. While some developers have increased prices across their projects, there are those who are doing it on a project-specific basis.

ET

COMMUNICATIONS

 18)In a move that would expand its footprint in the country, American Tower Corporation(ATC) is in advanced talks for acquiring a couple of Indian tower companies. The Boston-based tower company is prepared to make significant investments in India but wants to buy at the right price.

BL

19)Barely a week after the government cleared the reserve price for 3G spectrum auction, the country’s largest telecom operator, Bharti Airtel, said it would launch 3G services by October 2010.

FE

20)LOOP Mobile on Wednesday said it plans to invest around $75 million in its Mumbai operations and double its subscriber base by this fiscal-end. “We have an aggressive plan to invest around $50-75 million in Mumbai this fiscal. The investment would be to increase our net- work,” the newly appointed Loop Mobile CEO Sandip Basu said.

ET

INTERNATIONAL

21)BP, Europe’s second-largest oil company, reported a “giant” oil discovery in the Gulf of Mexico after drilling one of the industry’s deepest-ever wells that may contain more than three billion barrels, it said on Wednesday, in a further boost for crude supplies.

ET

22)China’s 2.3 trillion yuan($337 billion) fund industry may triple in size in the next five years as new products attract money away from banks in the world’s fastest-growing major economy. China’s 18 year-old fund industry is stepping up innovations under Beijing’s financial reforms, preparing for products such as global exchange- traded funds(ETFs), overseas index-tracking products and real estate investment trusts(REITs).

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 (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.

BL

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.

BL

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.

ET

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.

BL

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.

BL

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