Date: 03 September 2009
Thought for the day
“Finding is reserved for those that search.”
– Jim Rohn
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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).
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