1.ARL
ARVIND REMEDIES LIMITED
AGM/Book Closure
2.ESSAROIL
ESSAR OIL LIMITED
Audited Accounts/ Others
3.ICSA
ICSA (INDIA) LIMITED
Audited Financial Results/Dividend/Others
4.KEYCORPSER
KEYNOTE CORP. SERV. LTD.
Audited Financial Results
5.LLOYDELENG
LLOYD ELECTRIC & ENGINEERING LTD
Audited Accounts/Dividend/Others
6.PANORAMUNI
PANORAMIC UNIVERSAL LIMITED
Accounts/Rights/Dividend/Others
7.PIONEEREMB
PIONEER EMBROIDERIES LIMITED
Annual Accounts/Dividend/Others
8.QUINTEGRA
QUINTEGRA SOLUTIONS LIMITED
Audited Accounts/Dividend/Others
9.RUCHINFRA
RUCHI INFRASTRUCTURE LTD.
Board meeting postponed
10.RUCHISOYA
RUCHI SOYA INDUSTRIES LTD.
Board meeting postponed
Thursday, August 30, 2007
Sensex settles a tad below 15,000
The market staged solid rebound from day’s low touched in early trade, on value buying coupled with short covering in derivatives market. With today's gains, the market have now posted gains for fourth conseutive session.
The market had tumbled in early trade today following drop in US stocks overnight driven by credit concerns, US housing data and doubts about the sustainability of global economic growth. A recovery in European markets from an early slide, aided rebound on the domestic bourses.
The BSE 30-share Sensex advanced 73.85 points or 0.50% at 14,993.04. It had opened lower at 14,651.49 and slipped further to hit a low of 14,592.11. At the day's low of 14,592.11, Sensex had declined 327.08 points for the day.
Sensex rebounded sharply from lower levels to hit a high of 15,029.53 at 14:58 IST. At 15,029.53, Sensex had gained 110.34 points for the day. Sensex oscillated 437.42 points between the high and low.
From the recent low of 13,989.11 on 21 August 2007, the Sensex has recovered 1004 points to current 14,993.04.
The S&P CNX Nifty rose 38.60 points or 0.89% at 4,359.30. The Nifty August 2007 futures settled at 4363, a premium of 3.70 points as compared to spot closing.
The market breadth was strong as buying resumed for small-cap and mid-cap stocks. On BSE, with 1568 shares advanced as compared to 1102 that declined, while 66 remained unchanged. This is in contrast to 943 shares declining and 378 advancing, in opening session.
The BSE Mid-Cap index was up 0.64% to 6,450.39, while the BSE Small-Cap index rose 0.84% to 7,874.22. Both these indices, outperformed the Sensex. They recovered from their low of 6,321.33 and 7,730.18 respectively
The total turnover on BSE amounted to Rs 4797 crore as against Rs 4,206.97 crore on Tuesday, 28 August 2007. The NSE’s F&O turnover was Rs 76,510.22 crore as compared to Rs 57340.78 crore on Tuesday, 28 August 2007.
Volatility is expected to remain high in the tomorrow derivatives contracts for August 2007 series expire on Thursday, 30 August 2007.
Among the 30-member Sensex pack, 19 advanced while the rest slipped. In the opening session, all the 30-members of Sensex pack were in red.
India’s largest private sector steel maker, Tata Steel galloped 9.33% to Rs 661.90 on high volumes 34.33 lakh shares. It was the top gainer from Sensex pack. The stock advanced from its low of Rs 591, hit in early trade.
Tata Steel recorded a consolidated net turnover of Rs 31,155 crore for Q1 June 2007, an increase of 442% over the same period last year, on the back of Corus acquisition. Its consolidated operating profit surged 186% to Rs 4,904 crore. The results also include an extraordinary item of Rs 4,121 crore primarily representing actuarial gains due to increase in yield rates on bonds held by various pension funds of Corus.
The BSE Metal Index surged 4.24% to 11,203.77, and was the top gainer among the sectoral indices on BSE. Sterlite Industries (up 3.30% to Rs 619), Jindal Steel & power (up 1.97% to Rs 3770.05), Sesa Goa (up 2.61% to Rs 1922), and Hindustan Zinc (up 0.56% to Rs 700), advanced.
Oil & Natural Gas Corporation, India’s largest oil explorer in terms of revenue, soared 2.56% to Rs 830, on reports that oil ministry has sought scrapping of service tax on exploration activities due to spike in global rates for hiring rigs and other services.
State Bank of India (SBI), the country’s largest bank in terms of net profit advanced 2.21% to Rs 1583, after slipping to a low of Rs 1510.55. A block deal was executed on the counter in the FII segment on BSE on Tuesday, 28 August 2007 at Rs 1,867.95, a 20.61% premium over ruling market price.
India’s biggest power equipment maker in terms revenue, Bhel rose 2.53% to Rs 1853. Recently it won contracts worth over Rs 6,500 crore for setting up two power projects of 500 MW each at Koderma Thermal Power Station in Jharkand and Durgapur Steel Thermal Power Station in West Bengal on a turnkey basis.
Other gainers from the Sensex pack were Hindalco Industries (up 2.12% to Rs 156.55), Reliance Energy (up 2.28% to Rs 784), and ACC (up 1.69% to Rs 1043.90).
India’s top truck maker Tata Motors gained 1.80% to Rs 675 on high volumes of 14.04 lakh shares. A block deal of 5 lakh shares was struck on the counter on BSE at Rs 662.90 per share at 13:28 IST. Earlier, a block deal of 5 lakh shares was struck on the counter on BSE at Rs 667.50 per share at 10:38 IST
India’s second largest software services exporter Infosys Technologies lost 2.86% to Rs 1828.15 on 2.15 lakh shares. It was the top loser from Sensex pack. It slipped sharply from day’s high of Rs 1866.85. As per reports, Infosys BPO has lost a prime client Green-Point Mortgage. Green Point Mortgage, a mortgage arm of Capital One (a financial services company) declared its bankruptcy on 20 August 2007 in the US.
The BSE IT Index lost 1.19% at 4,504.40, and was the top loser among the sectoral indices on BSE. Among other IT pivotals, Satyam Computers declined down 1.30% to Rs 443.90. However Wipro (up 0.76% to Rs 471), and TCS (up 0.66% to Rs 1035) gained.
NTPC (down 1.46% to Rs 164.85), and HDFC (down 1.10% to Rs 1958.90), were the other losers from Sensex pack.
India’s largest private sector entity by market capitalistaion and oil refiner Reliance Industries recovered from early low of Rs 1848.25, to hit a high of Rs 1900. It ended 0.85% higher at Rs 1896 on 9.32 lakh shares. As per reports, the stalemate over the pricing of gas from its KG basin may come to an end soon. Reports say that pricing formula put forward by RIL is likely to be broadly approved by the empowered group of ministers (EGoM) within the next couple of days.
Among side counters, Lakshmi Mills (up 20% to Rs 1607.15), Ispat Industries (up 17.83% to Rs 18.37), Triveni Engineering (up 16.07% to Rs 73.30), Kesar Enterprises (up 15.51% to Rs 60.70), and Uttam Menon Pistons (up 14.40% to Rs 82.60), surged
Ankit Metals (down 7.18% to Rs 48.50), RT exports (down 7% to Rs 26), Gitanjali Gems (down 4.70% to Rs 269.75), Nucleus Software Exports (down 4.31% to Rs 343.90), and Indiabulls Financial Services (down 4% to Rs 488.10), declined.
Sugar shares surged on reports that a group of ministers had recommended mandatory blending of 10% ethanol with petrol to deal with the massive oversupply of sugar. Upper Ganges Sugar & Industries (up 13.80% to Rs 72.55), Oudh Sugar Mills (up 10% to Rs 51.45), Balrampur Chini Mills (up 9.85% to Rs 60.80), Shree Renuka Sugars (up 10.31% to Rs 537.75), Dhampur Sugar Mills (up 7.71% to Rs 52.40) and Bajaj Hindustan (up 6.89% to Rs 136.50) surged.
Ashok Leyland was up 4.15% to Rs 37.65 after it said it would jointly make light commercial vehicles in India along with Nissan Motor Co, Japan. Ashok Leyland will own a majority stake in the vehicle manufacturing venture.
Escorts soared 5.75% to Rs 86.50, despite National Stock Exchange banning fresh positions in the company’s derivatives contracts as the open interest crossed 95% of the position limit.
Abbott India jumped 8.31% to Rs 570 after it announced that the board will consider a proposal for buyback of shares in a meeting to be held on 5 September 2007. The buyback price to be determined by the board will not exceed Rs 650 per equity share.
DLF gained 1.57% to Rs 596. As per reports, it plans to ramp up the current annual delivery volume of about 20 million square feet (sq ft) to an annual delivery volume of 50 million sq ft in its office, retail, and residential businesses, over the next three to five years.
Esab India was up 0.65% to Rs 494 after its parent revised its open offer. It will now acquire 58.01 lakh shares (37.7%) from 30.78 lakh shares (20%) from the earlier open offer. Its also raised the price to Rs 505 per share from Rs 406 per share earlier.
Lanco Infratech spurted 5.42% to Rs 299.40. Earlier on 21 August 2007, Lanco Infratech secured an Rs 82.39 crore order from airports authority of India to construct a new terminal building at Varanasi Air Port.
Steel Authority of India (SAIL) jumped 5.15% to Rs 161.20. As per recent reports, the company has earmarked Rs 2,500 crore to raise its iron ore capacity to 29.5 million tonne (mt) by 2011-12 from 17 mt currently. This is in line with its ambitious plans to boost hot metal capacity to 23 mt.
Pritish Nandy Communications jumped 5% to Rs 83.85 on reports it had bagged $100 million franchisee to remake blockbuster hindi movie 'Sholay' from Sholay Media and Entertainment. PNC will not only remake Sholay, but also do an animated version of the original film, and then a prequel and a sequel.
India Foils surged 5% to Rs 10.60 on reports that Ess Dee Aluminium was in the final stages of negotiations to acquire it. Ess Dee would use the Rs 81.08 crore that it raised by selling a 5% stake to Morgan Stanley for the acquisition.
Firstsource Solutions vaulted 9.62% to Rs 79.20 after it acquired US based MedAssist Holding Inc, a leading provider of revenue cycle management in the healthcare industry in the US. The acquisition is valued at $330 million. MedAssist had revenue of $99 million for year ended December 2006
Elder Pharmaceuticals rose 0.35% to Rs 386.10 on reports it had acquired 51% stake in Bulgaria's Biomeda group for euro 5 million in an all-cash deal. Biomeda Group is a leading pharma group in Bulgaria with a turnover of about 10-12 million euros.
Nagarjuna Construction Company was up 0.86% to Rs 199.25, after hitting a high of Rs 205.95. The stock surged on reports that Blackstone Group, the global private equity firm will buy 14.5% stake in Hyderabad-based Nagarjuna Construction Company (NCCL) for $150 million (about Rs 615 crore).
Jet Airways gained 0.89% to Rs 756. As per reports, Jet would increase the fare of domestic tickets within a month in the domestic segment. The increase in the ticket prices would be in the range of Rs 200 to Rs 500 per seat, reports suggest.
Rei Agro surged 13.03% to Rs 307 after company’s board approved spinning off its retail business.
Essar Oil was up 2.35% to Rs 52.20 on reports that the firm may delist without an open offer.
The Communist Party of India (CPI) on Tuesday, 28 August 2007, said it had no intention of destabilising the government and force an immediate election on the contentious Indo-US nuclear deal issue. The party, however, wanted its concerns on the deal to be addressed by the ruling coalition by a mechanism, like a committee at the political level, to clarify all doubts on 123 agreement and allied matters like the Hyde Act.
The UPA government and the Left parties, on Monday 27 August 2007, agreed to formalise a joint mechanism to address the latter's objections on the civil nuclear deal with the US. But the Left's main demand of not proceeding with International Atomic Energy Agency (IAEA) negotiations remained unresolved, even after a series of high-profile meetings between the two sides, reports suggest. In a meeting of government with the Left party leaders held on Monday, 27 August 2007, Left parties reiterated their that they would agree to participate in the mechanism, but the government shouldn't go ahead with next round of IAEA negotiations.
The proposed mechanism in the form of a committee will also decide how long the government will stall IAEA negotiations. However, the government has refused to give any time frame for the committee to finish its work
The Left Front's opposition to the nuclear deal with US had stoked concerns over the past few days that if the Communist allies of the ruling coalition government at the Centre decide to pull their support, the government will be reduced to a minority, triggering fresh elections.
Most of the European markets were trading higher today, 29 August 2007. United Kingdom's FTSE 100 rose 0.31% to 6,121.10 and France’s CAC 40 gained 0.19% to 5,484.73. Germany’s DAX was down 0.18% to 7,416.91
In Asia, Hang Seng (down 1.47% at 23,020.60), Japan's Nikkei (down 1.69% at 16,012.83), Taiwan Weighted (down 0.97% at 8,643.22), Singapore's Straits Times (down 0.25% at 3,334.36), Shanghai Composite (down 1.64% to 5,109.27), and South Korea's Seoul Composite (down 0.17% at 1,826.19), all slipped.
US shares slumped yesterday, 28 August 2007 as investors grew more uneasy about the economy and whether the Federal Reserve will take the steps needed to prevent credit market problems from spreading further. The Dow Jones Industrial Average fell 280.28 points, or 2.10%, to 13,041.85. Broader stock indicators were also lower. The Standard & Poor's 500 index was down 34.43 points, or 2.35%, at 1,432.36, and the Nasdaq Composite index shed 60.61 points, or 2.37%, to 2,500.64.
Crude oil prices were steady on Wednesday, 29 August 2007 as mounting concerns over the health of the US economy overshadowed worries that US refinery outages could drag down fuel inventories in the world's top consumer. US crude eased 7 cents to $71.66 a barrel while London Brent crude was unchanged at $70.55
The market had tumbled in early trade today following drop in US stocks overnight driven by credit concerns, US housing data and doubts about the sustainability of global economic growth. A recovery in European markets from an early slide, aided rebound on the domestic bourses.
The BSE 30-share Sensex advanced 73.85 points or 0.50% at 14,993.04. It had opened lower at 14,651.49 and slipped further to hit a low of 14,592.11. At the day's low of 14,592.11, Sensex had declined 327.08 points for the day.
Sensex rebounded sharply from lower levels to hit a high of 15,029.53 at 14:58 IST. At 15,029.53, Sensex had gained 110.34 points for the day. Sensex oscillated 437.42 points between the high and low.
From the recent low of 13,989.11 on 21 August 2007, the Sensex has recovered 1004 points to current 14,993.04.
The S&P CNX Nifty rose 38.60 points or 0.89% at 4,359.30. The Nifty August 2007 futures settled at 4363, a premium of 3.70 points as compared to spot closing.
The market breadth was strong as buying resumed for small-cap and mid-cap stocks. On BSE, with 1568 shares advanced as compared to 1102 that declined, while 66 remained unchanged. This is in contrast to 943 shares declining and 378 advancing, in opening session.
The BSE Mid-Cap index was up 0.64% to 6,450.39, while the BSE Small-Cap index rose 0.84% to 7,874.22. Both these indices, outperformed the Sensex. They recovered from their low of 6,321.33 and 7,730.18 respectively
The total turnover on BSE amounted to Rs 4797 crore as against Rs 4,206.97 crore on Tuesday, 28 August 2007. The NSE’s F&O turnover was Rs 76,510.22 crore as compared to Rs 57340.78 crore on Tuesday, 28 August 2007.
Volatility is expected to remain high in the tomorrow derivatives contracts for August 2007 series expire on Thursday, 30 August 2007.
Among the 30-member Sensex pack, 19 advanced while the rest slipped. In the opening session, all the 30-members of Sensex pack were in red.
India’s largest private sector steel maker, Tata Steel galloped 9.33% to Rs 661.90 on high volumes 34.33 lakh shares. It was the top gainer from Sensex pack. The stock advanced from its low of Rs 591, hit in early trade.
Tata Steel recorded a consolidated net turnover of Rs 31,155 crore for Q1 June 2007, an increase of 442% over the same period last year, on the back of Corus acquisition. Its consolidated operating profit surged 186% to Rs 4,904 crore. The results also include an extraordinary item of Rs 4,121 crore primarily representing actuarial gains due to increase in yield rates on bonds held by various pension funds of Corus.
The BSE Metal Index surged 4.24% to 11,203.77, and was the top gainer among the sectoral indices on BSE. Sterlite Industries (up 3.30% to Rs 619), Jindal Steel & power (up 1.97% to Rs 3770.05), Sesa Goa (up 2.61% to Rs 1922), and Hindustan Zinc (up 0.56% to Rs 700), advanced.
Oil & Natural Gas Corporation, India’s largest oil explorer in terms of revenue, soared 2.56% to Rs 830, on reports that oil ministry has sought scrapping of service tax on exploration activities due to spike in global rates for hiring rigs and other services.
State Bank of India (SBI), the country’s largest bank in terms of net profit advanced 2.21% to Rs 1583, after slipping to a low of Rs 1510.55. A block deal was executed on the counter in the FII segment on BSE on Tuesday, 28 August 2007 at Rs 1,867.95, a 20.61% premium over ruling market price.
India’s biggest power equipment maker in terms revenue, Bhel rose 2.53% to Rs 1853. Recently it won contracts worth over Rs 6,500 crore for setting up two power projects of 500 MW each at Koderma Thermal Power Station in Jharkand and Durgapur Steel Thermal Power Station in West Bengal on a turnkey basis.
Other gainers from the Sensex pack were Hindalco Industries (up 2.12% to Rs 156.55), Reliance Energy (up 2.28% to Rs 784), and ACC (up 1.69% to Rs 1043.90).
India’s top truck maker Tata Motors gained 1.80% to Rs 675 on high volumes of 14.04 lakh shares. A block deal of 5 lakh shares was struck on the counter on BSE at Rs 662.90 per share at 13:28 IST. Earlier, a block deal of 5 lakh shares was struck on the counter on BSE at Rs 667.50 per share at 10:38 IST
India’s second largest software services exporter Infosys Technologies lost 2.86% to Rs 1828.15 on 2.15 lakh shares. It was the top loser from Sensex pack. It slipped sharply from day’s high of Rs 1866.85. As per reports, Infosys BPO has lost a prime client Green-Point Mortgage. Green Point Mortgage, a mortgage arm of Capital One (a financial services company) declared its bankruptcy on 20 August 2007 in the US.
The BSE IT Index lost 1.19% at 4,504.40, and was the top loser among the sectoral indices on BSE. Among other IT pivotals, Satyam Computers declined down 1.30% to Rs 443.90. However Wipro (up 0.76% to Rs 471), and TCS (up 0.66% to Rs 1035) gained.
NTPC (down 1.46% to Rs 164.85), and HDFC (down 1.10% to Rs 1958.90), were the other losers from Sensex pack.
India’s largest private sector entity by market capitalistaion and oil refiner Reliance Industries recovered from early low of Rs 1848.25, to hit a high of Rs 1900. It ended 0.85% higher at Rs 1896 on 9.32 lakh shares. As per reports, the stalemate over the pricing of gas from its KG basin may come to an end soon. Reports say that pricing formula put forward by RIL is likely to be broadly approved by the empowered group of ministers (EGoM) within the next couple of days.
Among side counters, Lakshmi Mills (up 20% to Rs 1607.15), Ispat Industries (up 17.83% to Rs 18.37), Triveni Engineering (up 16.07% to Rs 73.30), Kesar Enterprises (up 15.51% to Rs 60.70), and Uttam Menon Pistons (up 14.40% to Rs 82.60), surged
Ankit Metals (down 7.18% to Rs 48.50), RT exports (down 7% to Rs 26), Gitanjali Gems (down 4.70% to Rs 269.75), Nucleus Software Exports (down 4.31% to Rs 343.90), and Indiabulls Financial Services (down 4% to Rs 488.10), declined.
Sugar shares surged on reports that a group of ministers had recommended mandatory blending of 10% ethanol with petrol to deal with the massive oversupply of sugar. Upper Ganges Sugar & Industries (up 13.80% to Rs 72.55), Oudh Sugar Mills (up 10% to Rs 51.45), Balrampur Chini Mills (up 9.85% to Rs 60.80), Shree Renuka Sugars (up 10.31% to Rs 537.75), Dhampur Sugar Mills (up 7.71% to Rs 52.40) and Bajaj Hindustan (up 6.89% to Rs 136.50) surged.
Ashok Leyland was up 4.15% to Rs 37.65 after it said it would jointly make light commercial vehicles in India along with Nissan Motor Co, Japan. Ashok Leyland will own a majority stake in the vehicle manufacturing venture.
Escorts soared 5.75% to Rs 86.50, despite National Stock Exchange banning fresh positions in the company’s derivatives contracts as the open interest crossed 95% of the position limit.
Abbott India jumped 8.31% to Rs 570 after it announced that the board will consider a proposal for buyback of shares in a meeting to be held on 5 September 2007. The buyback price to be determined by the board will not exceed Rs 650 per equity share.
DLF gained 1.57% to Rs 596. As per reports, it plans to ramp up the current annual delivery volume of about 20 million square feet (sq ft) to an annual delivery volume of 50 million sq ft in its office, retail, and residential businesses, over the next three to five years.
Esab India was up 0.65% to Rs 494 after its parent revised its open offer. It will now acquire 58.01 lakh shares (37.7%) from 30.78 lakh shares (20%) from the earlier open offer. Its also raised the price to Rs 505 per share from Rs 406 per share earlier.
Lanco Infratech spurted 5.42% to Rs 299.40. Earlier on 21 August 2007, Lanco Infratech secured an Rs 82.39 crore order from airports authority of India to construct a new terminal building at Varanasi Air Port.
Steel Authority of India (SAIL) jumped 5.15% to Rs 161.20. As per recent reports, the company has earmarked Rs 2,500 crore to raise its iron ore capacity to 29.5 million tonne (mt) by 2011-12 from 17 mt currently. This is in line with its ambitious plans to boost hot metal capacity to 23 mt.
Pritish Nandy Communications jumped 5% to Rs 83.85 on reports it had bagged $100 million franchisee to remake blockbuster hindi movie 'Sholay' from Sholay Media and Entertainment. PNC will not only remake Sholay, but also do an animated version of the original film, and then a prequel and a sequel.
India Foils surged 5% to Rs 10.60 on reports that Ess Dee Aluminium was in the final stages of negotiations to acquire it. Ess Dee would use the Rs 81.08 crore that it raised by selling a 5% stake to Morgan Stanley for the acquisition.
Firstsource Solutions vaulted 9.62% to Rs 79.20 after it acquired US based MedAssist Holding Inc, a leading provider of revenue cycle management in the healthcare industry in the US. The acquisition is valued at $330 million. MedAssist had revenue of $99 million for year ended December 2006
Elder Pharmaceuticals rose 0.35% to Rs 386.10 on reports it had acquired 51% stake in Bulgaria's Biomeda group for euro 5 million in an all-cash deal. Biomeda Group is a leading pharma group in Bulgaria with a turnover of about 10-12 million euros.
Nagarjuna Construction Company was up 0.86% to Rs 199.25, after hitting a high of Rs 205.95. The stock surged on reports that Blackstone Group, the global private equity firm will buy 14.5% stake in Hyderabad-based Nagarjuna Construction Company (NCCL) for $150 million (about Rs 615 crore).
Jet Airways gained 0.89% to Rs 756. As per reports, Jet would increase the fare of domestic tickets within a month in the domestic segment. The increase in the ticket prices would be in the range of Rs 200 to Rs 500 per seat, reports suggest.
Rei Agro surged 13.03% to Rs 307 after company’s board approved spinning off its retail business.
Essar Oil was up 2.35% to Rs 52.20 on reports that the firm may delist without an open offer.
The Communist Party of India (CPI) on Tuesday, 28 August 2007, said it had no intention of destabilising the government and force an immediate election on the contentious Indo-US nuclear deal issue. The party, however, wanted its concerns on the deal to be addressed by the ruling coalition by a mechanism, like a committee at the political level, to clarify all doubts on 123 agreement and allied matters like the Hyde Act.
The UPA government and the Left parties, on Monday 27 August 2007, agreed to formalise a joint mechanism to address the latter's objections on the civil nuclear deal with the US. But the Left's main demand of not proceeding with International Atomic Energy Agency (IAEA) negotiations remained unresolved, even after a series of high-profile meetings between the two sides, reports suggest. In a meeting of government with the Left party leaders held on Monday, 27 August 2007, Left parties reiterated their that they would agree to participate in the mechanism, but the government shouldn't go ahead with next round of IAEA negotiations.
The proposed mechanism in the form of a committee will also decide how long the government will stall IAEA negotiations. However, the government has refused to give any time frame for the committee to finish its work
The Left Front's opposition to the nuclear deal with US had stoked concerns over the past few days that if the Communist allies of the ruling coalition government at the Centre decide to pull their support, the government will be reduced to a minority, triggering fresh elections.
Most of the European markets were trading higher today, 29 August 2007. United Kingdom's FTSE 100 rose 0.31% to 6,121.10 and France’s CAC 40 gained 0.19% to 5,484.73. Germany’s DAX was down 0.18% to 7,416.91
In Asia, Hang Seng (down 1.47% at 23,020.60), Japan's Nikkei (down 1.69% at 16,012.83), Taiwan Weighted (down 0.97% at 8,643.22), Singapore's Straits Times (down 0.25% at 3,334.36), Shanghai Composite (down 1.64% to 5,109.27), and South Korea's Seoul Composite (down 0.17% at 1,826.19), all slipped.
US shares slumped yesterday, 28 August 2007 as investors grew more uneasy about the economy and whether the Federal Reserve will take the steps needed to prevent credit market problems from spreading further. The Dow Jones Industrial Average fell 280.28 points, or 2.10%, to 13,041.85. Broader stock indicators were also lower. The Standard & Poor's 500 index was down 34.43 points, or 2.35%, at 1,432.36, and the Nasdaq Composite index shed 60.61 points, or 2.37%, to 2,500.64.
Crude oil prices were steady on Wednesday, 29 August 2007 as mounting concerns over the health of the US economy overshadowed worries that US refinery outages could drag down fuel inventories in the world's top consumer. US crude eased 7 cents to $71.66 a barrel while London Brent crude was unchanged at $70.55
Corus adds to Tata Steel profit
Tata Steel registered a consolidated net turnover of Rs 31,155 crores for the quarter ended June 30, 2007, as compared to Rs. 5,748 crores during the corresponding period of the previous year. The results include the provisional un-audited financial results of the former British steel giant Corus which Tata Steel had acquired. The Tata Steel board, which reviewed the results, also announced that it was going in for a rights issue.
The Company’s consolidated profit after tax increased to Rs 6,388 crores as compared to Rs 1,014 crores during the corresponding period of the previous year. The consolidated operating profit increased to Rs 4,904 crores as compared to Rs 1,712 crores during the corresponding period of the previous year while the profit before tax and exceptional items increased to Rs 3,157 crores as compared to Rs 1,498 crores during the corresponding period of the previous year. The financial results, the company said also includes an extraordinary item of Rs 4,121 crores primarily representing actuarial gains due to increase in the yie- ld rates on bonds held by various pension funds of Corus.
The Company’s consolidated profit after tax increased to Rs 6,388 crores as compared to Rs 1,014 crores during the corresponding period of the previous year. The consolidated operating profit increased to Rs 4,904 crores as compared to Rs 1,712 crores during the corresponding period of the previous year while the profit before tax and exceptional items increased to Rs 3,157 crores as compared to Rs 1,498 crores during the corresponding period of the previous year. The financial results, the company said also includes an extraordinary item of Rs 4,121 crores primarily representing actuarial gains due to increase in the yie- ld rates on bonds held by various pension funds of Corus.
Infosys to focus on Europe, Asia
Infosys BPO announced on Wedn-esday that it would focus more on the clients based in the countries other than the US to sustain its current 70 per cent annual growth. Infosys BPO Ltd CEO and managing director Amitabh Chaudhry said, “Our current business exposure to the US is around 60 per cent. Since the profit margins of most of finance sector companies in the US are currently going down, we have planned to curtail our current US exposure to maximum 50 per cent level in order to sustain the current 70 per cent annual growth of our company. Also, the last two quarters in the US have witnessed a major slowdown in the economy. We have assessed other overseas locations like Europe and Australia as more lucrative in terms of future growth prospects. Ideally, we wish to maintain our foreign business exposure in the ratio 50 (US):30 (Europe): 20 (other countries).”
Commenting on the effect of the US subprime crisis in India, he said, “The impact of the US mortgage subprime crisis is expected to cause a revenue loss of a $1 million for us in the current fiscal. However, it is too premature yet to assess the exact quantum of the damage.
Commenting on the effect of the US subprime crisis in India, he said, “The impact of the US mortgage subprime crisis is expected to cause a revenue loss of a $1 million for us in the current fiscal. However, it is too premature yet to assess the exact quantum of the damage.
Trai opposes cap on telecom firms
The Telecom Regulatory Autho-rity of India (Trai) on Wednesday refused to put a cap on the number of access service providers in any service area as demanded by some operators.Trai took this decision after a review of licensing conditions for the telecom sector. According to Trai, this step will maintain competition among the telecom operators and will compel them to keep tariff on competitive levels helping the consumer to get inexpensive services.
On merger and acquisitions, Trai said that no inorganic expansion will be allowed if the number of wireless access service providers (mobile companies) reduces below four. Trai said that the merged entity in the relevant market must not exceed 40 per cent either in terms of subscriber base or in terms of revenue. It has been done so that M&As do not create monopoly in the market. Companies like Airtel and Vodafone will not be permitted to merge in future. But either of these companies or Idea can acquire small companies like Spice or Aircel. Trai said that the existing cap of 2x15 MHz per service area for a post merged entity will be removed for the purpose of regulating M&A activity. The regulator said the merged entities should be charged spectrum fee based on the total radio wave acquired by them. It has increased operator cross holding to 20 per cent from 10 per cent.
There is also some good news for Mr Anil Ambani, as Trai said that an existing licensee may be permitted to use alternative technology to provide wireless access services in a particular area after payment of an upfront fee. The Anil Ambani-run Reliance Communications, which is major CDMA player in the country, has app-lied for the GSM licence. Trai said the fee should be equal to the entry fee for the unified access license in that area. The operator proposing to use both the technologies will have to pay fee for both the spectra. Trai has recommended a one-time spectrum charge from operators for allocation of spectrum beyond 10 Mhz in 2G bands.
Currently, the telecom firms pay one per cent of their revenue to the government for additional spectrum. The suggested charge for allocation of 2x5 Mhz of spectrum in category A circles and Mumbai and Delhi is Rs 80 crores, while for category B circles and Chennai and Kolkata, it is Rs 40 crores. For the allotment of one MHz spectrum in Mumbai and Delhi, the service provider will have to pay Rs 16 crores as one time spectrum acquisition charge.
On merger and acquisitions, Trai said that no inorganic expansion will be allowed if the number of wireless access service providers (mobile companies) reduces below four. Trai said that the merged entity in the relevant market must not exceed 40 per cent either in terms of subscriber base or in terms of revenue. It has been done so that M&As do not create monopoly in the market. Companies like Airtel and Vodafone will not be permitted to merge in future. But either of these companies or Idea can acquire small companies like Spice or Aircel. Trai said that the existing cap of 2x15 MHz per service area for a post merged entity will be removed for the purpose of regulating M&A activity. The regulator said the merged entities should be charged spectrum fee based on the total radio wave acquired by them. It has increased operator cross holding to 20 per cent from 10 per cent.
There is also some good news for Mr Anil Ambani, as Trai said that an existing licensee may be permitted to use alternative technology to provide wireless access services in a particular area after payment of an upfront fee. The Anil Ambani-run Reliance Communications, which is major CDMA player in the country, has app-lied for the GSM licence. Trai said the fee should be equal to the entry fee for the unified access license in that area. The operator proposing to use both the technologies will have to pay fee for both the spectra. Trai has recommended a one-time spectrum charge from operators for allocation of spectrum beyond 10 Mhz in 2G bands.
Currently, the telecom firms pay one per cent of their revenue to the government for additional spectrum. The suggested charge for allocation of 2x5 Mhz of spectrum in category A circles and Mumbai and Delhi is Rs 80 crores, while for category B circles and Chennai and Kolkata, it is Rs 40 crores. For the allotment of one MHz spectrum in Mumbai and Delhi, the service provider will have to pay Rs 16 crores as one time spectrum acquisition charge.
Wednesday, August 29, 2007
Rcom, Tata Tele ‘claims’ are false
Private telecom firms Reliance Communication and Tata Teleservices have been found making false claims and drawing excess subsidy from the Universal Service Obligation Fund for providing services in rural areas. Inspections in various circles revealed that their claims included urban lines (known as Direct Exchange Lines or DELs), which fall within municipal limits, as rural lines. This was not eligible for subsidy, official sources said.
“The proportion of such wrong claims by Universal Service Providers (USPs) in certain areas was found to range from 48 per cent to 70 per cent of DELs claimed. Action to disallow subsidy was taken in accordance with terms of agreement,” Mr Shantanu Consul, the Administrator of USO Fund, said in a note to the department of telecom.
In a particular case, Reliance claimed subsidy amounting to about Rs 7.63 crores for 12,469 DELs installed in four districts of Kerala Service Area, the Administrator’s note said. “On physical verification, it was found that a large number of these DELs are working in urban areas,” it said. Similarly, Tata Teleservices has also been found giving false claims. One of the example was in village Bharthana in UP (East) for the quarter ending December 2006 where it claimed to have installed 647 rural DELs.
“The proportion of such wrong claims by Universal Service Providers (USPs) in certain areas was found to range from 48 per cent to 70 per cent of DELs claimed. Action to disallow subsidy was taken in accordance with terms of agreement,” Mr Shantanu Consul, the Administrator of USO Fund, said in a note to the department of telecom.
In a particular case, Reliance claimed subsidy amounting to about Rs 7.63 crores for 12,469 DELs installed in four districts of Kerala Service Area, the Administrator’s note said. “On physical verification, it was found that a large number of these DELs are working in urban areas,” it said. Similarly, Tata Teleservices has also been found giving false claims. One of the example was in village Bharthana in UP (East) for the quarter ending December 2006 where it claimed to have installed 647 rural DELs.
SAP AG plans to invest $1 bn in India by ’10
The German business software major SAP AG said on Tuesday that it will remain invested in Indian even if the labour costs go up. “We are not in India because of the cheap labour but for high quality of workforce. We will remain in India even if the labour cost goes up,” said chairman and CEO, SAP, Henning Kagermann, who is in India to participate in the first-ever executive board meeting of the company in the country. Last year Mr Kagermann was quoted by German edition of the Financial Times as saying that rising labour costs in India were forcing him to start looking to other countries. “India is slowly getting expensive. We have decided to hire a certain number there, and then start looking at other locations’’ Mr Kagermann had said.
In India there are a concerns that as the labour costs go up, companies in US and Europe will start looking towards countries like the Philippines that are offering low cost labour. Mr Kagermann said that SAP is committed to invest $1 billion in India by 2010. A major portion of the investment is targeted at expanding the company’s global development, service and support hub in India, SAP’s Labs. SAP’s Labs two centres in Bangalore and Gurgaon are the company’s second largest reserach and development facilities after Germany. SAP right now has 4,235 employees in India out of which 3,500 are working in SAP Labs.
“I am saying what I had said then (to the newspaper),” said Mr Kagermann on Tuesday. He said that the IT sector (domestic market) in India is estimated to be around $27-32 billion by 2010. “This is a significant reason for us to be present here,” said Mr Kagermann. The company has doubled its customer base to 2,000 in India in one year. “Markets like India are at an inflection point when it comes to the adoption of technology. For instance, it took us nine years to reach the 1,000-customer mark and only one year to double it,’’ said Mr Kagermann. SAP’s sales in India grew by more than 25 per cent in the first half of this year.
In India there are a concerns that as the labour costs go up, companies in US and Europe will start looking towards countries like the Philippines that are offering low cost labour. Mr Kagermann said that SAP is committed to invest $1 billion in India by 2010. A major portion of the investment is targeted at expanding the company’s global development, service and support hub in India, SAP’s Labs. SAP’s Labs two centres in Bangalore and Gurgaon are the company’s second largest reserach and development facilities after Germany. SAP right now has 4,235 employees in India out of which 3,500 are working in SAP Labs.
“I am saying what I had said then (to the newspaper),” said Mr Kagermann on Tuesday. He said that the IT sector (domestic market) in India is estimated to be around $27-32 billion by 2010. “This is a significant reason for us to be present here,” said Mr Kagermann. The company has doubled its customer base to 2,000 in India in one year. “Markets like India are at an inflection point when it comes to the adoption of technology. For instance, it took us nine years to reach the 1,000-customer mark and only one year to double it,’’ said Mr Kagermann. SAP’s sales in India grew by more than 25 per cent in the first half of this year.
Essar wins bid for power project
Essar Power (Gujarat) Ltd (EPHL), a subsidary of Essar Power Holdings Ltd, has won the bid for the 1,200 MW power plant in Gujarat. The project will use high quality imported coal as fuel and is estimated to be completed by 2011 and cost Rs 4,800 crores. The company in a press release said that it plans to finance the project with a 3:1 debt to equity ratio.
EPHL has also planned to increase its power generation capacity from 1,200 MW to 6,500 MW by 2012 with an investment of Rs 20,000 crores. EPGL has entered into a 25-year power purchase agreement with the Gujarat government for supplying 1,000 MW of power at a levellised tariff of Rs 2.40 per unit with a clause to sell the balance power. The project will come up on 700 acres of land near Khambalia in Jamnagar district of Gujarat. Essar will create its own captive infrastructure to receive imported coal by setting up a port and other related facilities in Kutch since the region is known for its natural deep water draft and the ability to handle vessles all round the year. Essar has till date completed five power projects with a capacity of over 1,200 MW.
EPHL has also planned to increase its power generation capacity from 1,200 MW to 6,500 MW by 2012 with an investment of Rs 20,000 crores. EPGL has entered into a 25-year power purchase agreement with the Gujarat government for supplying 1,000 MW of power at a levellised tariff of Rs 2.40 per unit with a clause to sell the balance power. The project will come up on 700 acres of land near Khambalia in Jamnagar district of Gujarat. Essar will create its own captive infrastructure to receive imported coal by setting up a port and other related facilities in Kutch since the region is known for its natural deep water draft and the ability to handle vessles all round the year. Essar has till date completed five power projects with a capacity of over 1,200 MW.
Elder buys Bulgarian firm for 5m euros
Mumbai-based Elder Pharmaceutical Ltd has announced the acquisition of 51 per cent stake in Biomeda Group of Bulgaria at an investment of 5 million euros. Biomeda Group is one of the top ten manufacturers and distributors of oral dosage pharmaceutical formulations and has an annual turnover of 12 million euros. Biomeda is Elder’s second acquisition in less than 45 days. Earlier, Elder bought a 20 per cent stake of London-based NeutraHealth plc through the subscription of shares worth about Rs 47 crores.
Elder Pharmaceutical Ltd director Alok Saxena said, “Elder got attracted to the Bulgarian market because of the skilled labour force. Also, Bulgaria has an advantage in terms of lower labour cost compared to other European countries. Being a member of the European Union, the patent rules in Bulgaria are in line with EU standards.”
Elder Pharmaceutical Ltd director Alok Saxena said, “Elder got attracted to the Bulgarian market because of the skilled labour force. Also, Bulgaria has an advantage in terms of lower labour cost compared to other European countries. Being a member of the European Union, the patent rules in Bulgaria are in line with EU standards.”
Boeing firm ties up with Infotech
Infotech Enterprises America Inc., a global geospatial and engineering consulting and professional services firm, on Tuesday formed a strategic alliance with Continental DataGraphics (CDG), a subsidiary of Boeing Company. Commenting on the deal, Infotech president, engineering services division, N. Shekar said, “Infotech is very excited about our partnership with CDG, a Boeing Company, to address the ever increasing needs of our global customers in the technical documentation and publishing segment.”
Mr Gary Beyer, vice-president, business development, CDG said, “CDG has built its business around long-term strategic growth initiatives and must continually manage the challenges that come with growth. The CDG-Infotech alignment is highly complementary to our growth objectives.” He said CDG is proactively developing new strategic partnerships with companies such as Infotech to further globalise its business.
Mr Gary Beyer, vice-president, business development, CDG said, “CDG has built its business around long-term strategic growth initiatives and must continually manage the challenges that come with growth. The CDG-Infotech alignment is highly complementary to our growth objectives.” He said CDG is proactively developing new strategic partnerships with companies such as Infotech to further globalise its business.
PSUs lose out to private banks
Private banks have overtaken public sector banks in market share in the metros with a population of more than 10 million. Metro centres have emerged as the dominant areas for deposits accounting for nearly 56 per cent of aggregate deposits in the current fiscal as against 43.1 per cent in the fiscal year 1999, according to a banking sector update by Mr Hemindra Hazari of Karvy Stock Broking Limited.
In the metro segment, he says, the market share of private banks in deposits has increased to 26.7 per cent in fiscal 2005 as compared with 12.6 per cent in fiscal 1999.This significant increase has come at the cost of nationalised banks whose market share has dipped to 46.4 per cent in the current fiscal from 54.4 per cent in FY1999. Interestingly, in this period the private banks’ market share in metro regions surpassed even that of the SBI group.
The RBI quarterly statistics for the current financial year reveal that the private banks’ deposit market share has increased to 20.6 per cent from 10.7 per cent in FY1999. These gains also came at the cost of all the other categories of banks with nationalised banks losing the maximum market share — from 54.8 per cent in FY1999 to 48.4 per cent in FY 2007, while the SBI group market share has declined to 22.3 per cent from 24.5 per cent over the same period. However, Mr Hazari says that the “success of the private banks may not continue at the same pace as government banks are better prepared and the RBI is compelling private banks to open branches in unbanked areas of semi-urban and rural India.”
In the metro segment, he says, the market share of private banks in deposits has increased to 26.7 per cent in fiscal 2005 as compared with 12.6 per cent in fiscal 1999.This significant increase has come at the cost of nationalised banks whose market share has dipped to 46.4 per cent in the current fiscal from 54.4 per cent in FY1999. Interestingly, in this period the private banks’ market share in metro regions surpassed even that of the SBI group.
The RBI quarterly statistics for the current financial year reveal that the private banks’ deposit market share has increased to 20.6 per cent from 10.7 per cent in FY1999. These gains also came at the cost of all the other categories of banks with nationalised banks losing the maximum market share — from 54.8 per cent in FY1999 to 48.4 per cent in FY 2007, while the SBI group market share has declined to 22.3 per cent from 24.5 per cent over the same period. However, Mr Hazari says that the “success of the private banks may not continue at the same pace as government banks are better prepared and the RBI is compelling private banks to open branches in unbanked areas of semi-urban and rural India.”
Board Meetings For August 29, 2007
1.
BILT
BALLARPUR INDUSTRIES LTD
Audited Accounts and Dividend
2.GTOFFSHORE
GREAT OFFSHORE LIMITED
Interim Dividend
3.GUJAPOLLO
GUJARAT APOLLO INDUSTRIES LIMITED
Annual Accounts/Dividend/Others
4.KITPLYIND
KITPLY INDUSTRIES LTD
Reduction of Share Capital/Others
5.LIBERTSHOE
LIBERTY SHOES LTD
Audited Accounts
6.PRITHVI
PRITHVI INFORMATION SOLUTIONS LIMITED
Audited Financial Results/Dividend/Others
7.REIAGRO
REI AGRO LIMITED
Demerger/Others
8.SRIADIKARI
SRI ADHIKARI BROTHERS TELEVISION NETWORK LIMITED
AGM/Others
9.TECILCHEM
TECIL CHEMICALS AND HYDRO POWER LTD
Audited Accounts/ Others
10.VATSMUSC
VATSA MUSIC LTD.
Audited Financial Results
BILT
BALLARPUR INDUSTRIES LTD
Audited Accounts and Dividend
2.GTOFFSHORE
GREAT OFFSHORE LIMITED
Interim Dividend
3.GUJAPOLLO
GUJARAT APOLLO INDUSTRIES LIMITED
Annual Accounts/Dividend/Others
4.KITPLYIND
KITPLY INDUSTRIES LTD
Reduction of Share Capital/Others
5.LIBERTSHOE
LIBERTY SHOES LTD
Audited Accounts
6.PRITHVI
PRITHVI INFORMATION SOLUTIONS LIMITED
Audited Financial Results/Dividend/Others
7.REIAGRO
REI AGRO LIMITED
Demerger/Others
8.SRIADIKARI
SRI ADHIKARI BROTHERS TELEVISION NETWORK LIMITED
AGM/Others
9.TECILCHEM
TECIL CHEMICALS AND HYDRO POWER LTD
Audited Accounts/ Others
10.VATSMUSC
VATSA MUSIC LTD.
Audited Financial Results
markets 28-08-2007
Market extends gains
The market settled with decent gains as buying emerged for index pivotals. IT pivotals led the rally along with index heavyweight Reliance Industries (RIL). Yet, weak global markets capped upside. On the flip side, value buying coupled with short covering provided support at lower level.
Asian markets settled on mixed note today, 28 August 2007. Some of these markets recovered from initial weakness. However, all European markets were trading lower. US markets closed lower on Monday, 27 August 2007.
The BSE 30-share Sensex gained 76.81 points or 0.52% at 14,919.19. It had opened slightly lower at 14,841.61 and slipped further to hit a low of 14,751.68, in early trade. However it rebounded from lower levels to hit a high of 14,952.04 at 15:12 IST.
From the recent low of 13,989.11 on 21 August 2007, the Sensex has recovered 930 points or 6.65% at current 14,919.19
The S&P CNX Nifty rose 18.10 points or 0.42% at 4320.70. The Nifty August 2007 futures settled at 4298.80, a discount of 21.90 points as compared to spot closing
The total turnover on BSE amounted to Rs 4096 crore as against Rs 4,017.17 crore on Monday, 27 August 2007. The NSE F&O turnover was Rs 57,340.78 crore as compared to Rs 52749.11 crore on Monday, 27 August 2007.
The market breadth was strong on BSE, with 1593 shares advancing as compared to 1061 that declined, while 75 remained unchanged.
The BSE Mid-Cap index rose 0.77% to 6,409.64 while the BSE Small-Cap index settled with gain of 1.07% to 7,808.44. Both these indices outperformed the Sensex.
Volatility is expected to remain high in the next three days ahead of the expiry of derivatives contracts for August 2007 series on Thursday, 30 August 2007.
Among the 30-member Sensex pack, 19 rose while the rest declined.
India’s largest aluminium manufacturer Hindalco Industries advanced 3.10% to Rs 153 on 12.08 lakh shares. It was the top gainer from the Sensex pack. As per recent reports it plans to make inroads into supplies for the car market which has so far been dominated by steel manufacturers. Hindalco will soon make high-grade aluminium products for the body-in-white segment for cars.
Other metal counters, Tata Steel (up 0.50% to Rs 606), Hindustan Zinc (up 1.68% to Rs 697), and Sail (up 2.61% to Rs 153.35), also edged higher. The BSE Metal Index rose 1.04% to 10,748.27
IT pivotals made a comeback today, as rupee weakened against the dollar. Satyam Computers (up 2.10% to Rs 448) and Infosys (up 1.72% to Rs 1880), gained from IT pack. The BSE IT Index gained 1.91% at 4,558.76, and was the top gainer among the sectoral indices on BSE
TCS, the country’s largest software services exporter rose 0.13% to Rs 1027, on reports it had signed a multi-year contract with Hawaiian Airlines to provide IT, business process outsourcing and infrastructure services. Reports suggest that the deal may be worth about $40 million.
India’s third largest software services exporter Wipro gained 0.11% to Rs 465.05 on reports that it plans to open a software development center in the US city of Atlanta that will employ mostly graduates from colleges and universities in the state of Georgia. The Atlanta facility will hire more than 200 people in the first year, and is expected to employ over 500 by the third year of operations.
Financial Technologies (up 10% to Rs 2300), HCL Technologies (up 2.88% to Rs 293) and Tech Mahindra (up 1.57% to Rs 120.50), gained from mid-cap IT pack.
Rupee was hovering at 41.17 as against yesterday's close of 41.01/41.02.
India’s largest private sector entity in terms of market capitalisation and oil refiner Reliance Industries soared to a high of Rs 1890. It settled 2.80% higher to Rs 1884.25 on 8.15 lakh shares. Reliance Industries (RIL) is reportedly entering into an alliance with Container Corporation of India (Concor), the country’s largest container train operator. Under the partnership, RIL will have access to several infrastructural facilities of Concor, including almost 60 terminals across the country. RIL intends to utilise these facilities as key warehousing points for Reliance Retail.
BSE Oil and Gas Index gained 1.5% at 7,839.17
FMCG stocks were in demand on fresh buying. The BSE FMCG Index gained 0.98% at 1,930.93. ITC (up 1.40% to Rs 167.35), Marico (up 3.11% to Rs 59.70), Britannia (up 0.30% to Rs 1590), and Nirma (up 1.46% to Rs 160), gained from FMCG pack.
Larsen & Toubro (L&T) rose 0.30% to Rs 2543 after L&T Capital Company, its group company invested around Rs 100 crore for a stake in Mysore based Rangsons Electronics, an electronic manufacturing services (EMS) provider.
India’s third largest pharma company in terms of net sales, Cipla was up 0.15% to Rs 170.55 on reports that company will replace all products with chlorofluorocarbons ahead of Montreal Protocol ban deadline.
ICICI Bank, the country’s largest private sector bank in terms of net profit, extended early fall. It lost 2.89% to Rs 858.20 on 11.72 lakh shares. It was the top loser from Sensex pack. The bank got a setback today, after the Reserve Bank of India made a strong case against intermediate holding companies to float holding companies for their insurance and mutual fund business. The regulator said any clearance for foreign investment in such a holding company by other regulators could be subject to “legal review”.
State Bank of India, the country’s largest bank in terms of net profit slipped to a low of Rs 1527 in early trade. However it recovered from lower levels and ended 0.10% lower at Rs 1555.50.
Led by ICICI Bank and SBI, Bankex fell 0.25% to 7,636.21, and was the top loser among the sectoral indices on BSE.
India’s largest listed cellular services provider Bharti Airtel declined 0.34% to Rs 874. As per reports, the Telecom Regulatory and Development Authority (Trai) has alleged that the company had violated the national numbering plan that designates short codes and numbers for value-added services. It has asked the company to immediately discontinue some services.
Ranbaxy laboratories (down 1.51% to Rs 365.25), ACC (down 1.40% to Rs 1022.40), and ONGC (down 1.13% to Rs 808.90) were the other losers from Sensex pack.
Sugar shares advanced in volatile market on renewed buying interest. Shree Renuka Sugars (up 2.82% to Rs 486.20), Bajaj Hindustan (up 2.90% to Rs 127.70), Sakthi Sugar (up 3% to Rs 64.40), and Mawana Sugar (up 5.80% to Rs 26.45), advanced. Bajaj Hindustan got a boost from reports that it will clinch an export deal for 60 lakh litres of rectified spirit from Japan.
K P R Mill settled at Rs 173.50 on the BSE, a discount of 22.89% as compared to IPO price of Rs 225. On BSE, 49.21 lakh shares of the scrip were traded. The stock had debuted at Rs 201.20 on BSE, a discount of 10.57% over the IPO price. It had hit a high of Rs 209.80 and a low of Rs 169.10.
Hindustan Motors surged 20% to Rs 29.75 on reports it plans to launch premium sports utility vehicles from the Mitsubishi stable in the price range of Rs 15-25 lakh within six months. The decision follows a surge in sales of Mitsubishi’s Pajero and Montero models during 2006-07. The SUVs will be manufactured at the company's Chennai plant.
Karnataka Bank was up 1.64% to Rs 179.50. As per reports, the bank has put its asset management joint venture on hold. The bank would need capital to fund its projected business growth of 20-22% and also for the non-life insurance joint venture. Reports also suggest that the bank is planning to enter into online broking in a tie-up with an established broking firm.
Vikas WSP, which was relisted yesterday, 27 August 2007, jumped 5% to Rs 38.03 today. It was suspended from trading on the BSE on 1 October 2001. As per reports, it has lined up Rs 735 crore for capital expenditure.
Federal-Mogul Goetze (India) surged 7.70% to Rs 171.25 after company approved rights issue aggregating Rs 106.33 crore. Its board of directors approved rights issue of 73.33 lakh equity shares of Rs 10 each at an issue price of Rs 145 per equity share (including a premium of Rs 135 per equity share) aggregating Rs 106.33 crore. The rights issue will be in the ratio of 29:100 (29 equity shares for every 100 equity shares held).
Automobile batteries-maker Exide Industries jumped 6.65% to Rs 60.15. The company’s board has approved a rights issue of up to 5 crore equity shares in the ratio of 1:15 (that is, one share for every 15 shares held), priced at Rs at Rs 30 per equity share.
GMR Infrastructure, which develops various infrastructure projects, moved up 6.46% to Rs 797.25. On Monday, 27 August 2007, the company's subsidiary GMR Energy secured a major hydropower project in Himachal Pradesh, after it paid the state government Rs 82 crore as premium upfront money.
IT solutions provider i-flex Solutions spurted 5.13% to Rs 2014.45. Recently, its Dutch unit, i-flex Solutions BV, had raised its stake in Greek unit i-flex Solutions SA to 90%. The Greek unit was incorporated in May 2007 with an investment of 35% by i-flex Solutions BV.
Nicholas Piramal India surged 3.93% to Rs 257.70 after it announced that its board will consider proposal for restructuring the company's research & development division by demerging its new chemical entity (NCE) research unit into a separate entity. The board meeting will be held on 31 August 2007.
Modern Dairies hit 5% upper circuit of Rs 95.05 on BSE after it fixed 1 October 2007 as record date for issue the 1:1 bonus shares.
UTV jumped 4.92% to Rs 485.95 on reports that it is in talks to rope in a strategic investor for its broadcasting business, which entails an investment of Rs 600 crore for nine channels. The broadcasting initiatives are under UTV Global Broadcasting which is privately held. UTV Global Broadcasting has three subsidiary companies which run the different lines of businesses.
Nagarjuna Fertilisers slipped 1.47% to Rs 33.60 after the National Stock Exchange (NSE) barred further F&O positions in the stock as 95% marketwide position limit was crossed on Monday, 27 August 2007.
Centurion Bank of Punjab rose 0.91% to Rs 38.80 after the private sector bank got Reserve Bank of India's approval for the merger of Lord Krishna Bank with it. The merger is effective from 29 August 2007 and Centurion will issue seven shares in itself for every five held in Lord Krishna, the bank said.
Mold-Tek Technologies was locked at upper limit of 5% at Rs 131.90 after its board approved to de-merge plastic business and merge Teck Men Tools with itself.
Auto ancillary maker Perfect Circle India jumped 5% to Rs 26.70 after it said during market hours on Monday, 27 August 2007, that acquirer Asia Investments has accepted delisting price of Rs 35 per share for acquiring balance stake of 15.70% from the public, as discovered in the reverse book building process which closed on 24 August 2007.
All European markets were trading weak today, 28 August 2007. Key benchmark indices in France (down 0.98% to 5,535.51), Germany (down 0.38% to 7,457.54) and United Kingdom (down 0.71% to 6,176) declined.
Asian markets settled on a mixed note today, 28 August 2007. South Korea's Seoul Composite (up 1.46% at 1,829.31), Taiwan Weighted (up 0.11% at 8,727.55) and Shanghai Composite (up 0.87% to 5,194.68) rose.
Hang Seng (down 0.91% at 23,363.76), Singapore's Straits Times (down 1.34% at 3,343) and Japan's Nikkei (down 0.09% at 16,287.49) slipped.
US shares slipped yesterday, 27 August 2007 after news that sales of existing homes slipped in July 2007 for a fifth straight month stirred concerns about the strength of the economy. The Dow Jones industrial Average fell 56.74 points, or 0.42%, to 13,322.13. Broader stock indicators also declined. The Standard & Poor's 500 index fell 12.58 points, or 0.85%, to 1,466.79, and the Nasdaq Composite index fell 15.44 points, or 0.60%, to 2,561.25.
Crude oil prices were steady at above $72 on Tuesday, 28 August 2007, with US refinery shutdowns reviving supply concerns. US crude rose 6 cents to $72.03 a barrel. London Brent gained 7 cents to $71.02 a barrel.
The UPA government and the Left parties, on Monday 27 August 2007, agreed to formalise a joint mechanism to address the latter’s objections on the civil nuclear deal with the US. But the Left’s main demand of not proceeding with International Atomic Energy Agency (IAEA) negotiations remained unresolved, even after a series of high-profile meetings between the two sides, reports suggest. In a meeting of government with the Left party leaders held on Monday, 27 August 2007, Left parties reiterated their that they would agree to participate in the mechanism, but the government shouldn't go ahead with next round of IAEA negotiations.
The proposed mechanism in the form of a committee will also decide how long the government will stall IAEA negotiations. However, the government has refused to give any time frame for the committee to finish its work
The Left Front’s opposition to the nuclear deal with US had stoked concerns over the past few days that if the Communist allies of the ruling coalition government at the Centre decide to pull their support, the government will be reduced to a minority, triggering fresh elections.
The market settled with decent gains as buying emerged for index pivotals. IT pivotals led the rally along with index heavyweight Reliance Industries (RIL). Yet, weak global markets capped upside. On the flip side, value buying coupled with short covering provided support at lower level.
Asian markets settled on mixed note today, 28 August 2007. Some of these markets recovered from initial weakness. However, all European markets were trading lower. US markets closed lower on Monday, 27 August 2007.
The BSE 30-share Sensex gained 76.81 points or 0.52% at 14,919.19. It had opened slightly lower at 14,841.61 and slipped further to hit a low of 14,751.68, in early trade. However it rebounded from lower levels to hit a high of 14,952.04 at 15:12 IST.
From the recent low of 13,989.11 on 21 August 2007, the Sensex has recovered 930 points or 6.65% at current 14,919.19
The S&P CNX Nifty rose 18.10 points or 0.42% at 4320.70. The Nifty August 2007 futures settled at 4298.80, a discount of 21.90 points as compared to spot closing
The total turnover on BSE amounted to Rs 4096 crore as against Rs 4,017.17 crore on Monday, 27 August 2007. The NSE F&O turnover was Rs 57,340.78 crore as compared to Rs 52749.11 crore on Monday, 27 August 2007.
The market breadth was strong on BSE, with 1593 shares advancing as compared to 1061 that declined, while 75 remained unchanged.
The BSE Mid-Cap index rose 0.77% to 6,409.64 while the BSE Small-Cap index settled with gain of 1.07% to 7,808.44. Both these indices outperformed the Sensex.
Volatility is expected to remain high in the next three days ahead of the expiry of derivatives contracts for August 2007 series on Thursday, 30 August 2007.
Among the 30-member Sensex pack, 19 rose while the rest declined.
India’s largest aluminium manufacturer Hindalco Industries advanced 3.10% to Rs 153 on 12.08 lakh shares. It was the top gainer from the Sensex pack. As per recent reports it plans to make inroads into supplies for the car market which has so far been dominated by steel manufacturers. Hindalco will soon make high-grade aluminium products for the body-in-white segment for cars.
Other metal counters, Tata Steel (up 0.50% to Rs 606), Hindustan Zinc (up 1.68% to Rs 697), and Sail (up 2.61% to Rs 153.35), also edged higher. The BSE Metal Index rose 1.04% to 10,748.27
IT pivotals made a comeback today, as rupee weakened against the dollar. Satyam Computers (up 2.10% to Rs 448) and Infosys (up 1.72% to Rs 1880), gained from IT pack. The BSE IT Index gained 1.91% at 4,558.76, and was the top gainer among the sectoral indices on BSE
TCS, the country’s largest software services exporter rose 0.13% to Rs 1027, on reports it had signed a multi-year contract with Hawaiian Airlines to provide IT, business process outsourcing and infrastructure services. Reports suggest that the deal may be worth about $40 million.
India’s third largest software services exporter Wipro gained 0.11% to Rs 465.05 on reports that it plans to open a software development center in the US city of Atlanta that will employ mostly graduates from colleges and universities in the state of Georgia. The Atlanta facility will hire more than 200 people in the first year, and is expected to employ over 500 by the third year of operations.
Financial Technologies (up 10% to Rs 2300), HCL Technologies (up 2.88% to Rs 293) and Tech Mahindra (up 1.57% to Rs 120.50), gained from mid-cap IT pack.
Rupee was hovering at 41.17 as against yesterday's close of 41.01/41.02.
India’s largest private sector entity in terms of market capitalisation and oil refiner Reliance Industries soared to a high of Rs 1890. It settled 2.80% higher to Rs 1884.25 on 8.15 lakh shares. Reliance Industries (RIL) is reportedly entering into an alliance with Container Corporation of India (Concor), the country’s largest container train operator. Under the partnership, RIL will have access to several infrastructural facilities of Concor, including almost 60 terminals across the country. RIL intends to utilise these facilities as key warehousing points for Reliance Retail.
BSE Oil and Gas Index gained 1.5% at 7,839.17
FMCG stocks were in demand on fresh buying. The BSE FMCG Index gained 0.98% at 1,930.93. ITC (up 1.40% to Rs 167.35), Marico (up 3.11% to Rs 59.70), Britannia (up 0.30% to Rs 1590), and Nirma (up 1.46% to Rs 160), gained from FMCG pack.
Larsen & Toubro (L&T) rose 0.30% to Rs 2543 after L&T Capital Company, its group company invested around Rs 100 crore for a stake in Mysore based Rangsons Electronics, an electronic manufacturing services (EMS) provider.
India’s third largest pharma company in terms of net sales, Cipla was up 0.15% to Rs 170.55 on reports that company will replace all products with chlorofluorocarbons ahead of Montreal Protocol ban deadline.
ICICI Bank, the country’s largest private sector bank in terms of net profit, extended early fall. It lost 2.89% to Rs 858.20 on 11.72 lakh shares. It was the top loser from Sensex pack. The bank got a setback today, after the Reserve Bank of India made a strong case against intermediate holding companies to float holding companies for their insurance and mutual fund business. The regulator said any clearance for foreign investment in such a holding company by other regulators could be subject to “legal review”.
State Bank of India, the country’s largest bank in terms of net profit slipped to a low of Rs 1527 in early trade. However it recovered from lower levels and ended 0.10% lower at Rs 1555.50.
Led by ICICI Bank and SBI, Bankex fell 0.25% to 7,636.21, and was the top loser among the sectoral indices on BSE.
India’s largest listed cellular services provider Bharti Airtel declined 0.34% to Rs 874. As per reports, the Telecom Regulatory and Development Authority (Trai) has alleged that the company had violated the national numbering plan that designates short codes and numbers for value-added services. It has asked the company to immediately discontinue some services.
Ranbaxy laboratories (down 1.51% to Rs 365.25), ACC (down 1.40% to Rs 1022.40), and ONGC (down 1.13% to Rs 808.90) were the other losers from Sensex pack.
Sugar shares advanced in volatile market on renewed buying interest. Shree Renuka Sugars (up 2.82% to Rs 486.20), Bajaj Hindustan (up 2.90% to Rs 127.70), Sakthi Sugar (up 3% to Rs 64.40), and Mawana Sugar (up 5.80% to Rs 26.45), advanced. Bajaj Hindustan got a boost from reports that it will clinch an export deal for 60 lakh litres of rectified spirit from Japan.
K P R Mill settled at Rs 173.50 on the BSE, a discount of 22.89% as compared to IPO price of Rs 225. On BSE, 49.21 lakh shares of the scrip were traded. The stock had debuted at Rs 201.20 on BSE, a discount of 10.57% over the IPO price. It had hit a high of Rs 209.80 and a low of Rs 169.10.
Hindustan Motors surged 20% to Rs 29.75 on reports it plans to launch premium sports utility vehicles from the Mitsubishi stable in the price range of Rs 15-25 lakh within six months. The decision follows a surge in sales of Mitsubishi’s Pajero and Montero models during 2006-07. The SUVs will be manufactured at the company's Chennai plant.
Karnataka Bank was up 1.64% to Rs 179.50. As per reports, the bank has put its asset management joint venture on hold. The bank would need capital to fund its projected business growth of 20-22% and also for the non-life insurance joint venture. Reports also suggest that the bank is planning to enter into online broking in a tie-up with an established broking firm.
Vikas WSP, which was relisted yesterday, 27 August 2007, jumped 5% to Rs 38.03 today. It was suspended from trading on the BSE on 1 October 2001. As per reports, it has lined up Rs 735 crore for capital expenditure.
Federal-Mogul Goetze (India) surged 7.70% to Rs 171.25 after company approved rights issue aggregating Rs 106.33 crore. Its board of directors approved rights issue of 73.33 lakh equity shares of Rs 10 each at an issue price of Rs 145 per equity share (including a premium of Rs 135 per equity share) aggregating Rs 106.33 crore. The rights issue will be in the ratio of 29:100 (29 equity shares for every 100 equity shares held).
Automobile batteries-maker Exide Industries jumped 6.65% to Rs 60.15. The company’s board has approved a rights issue of up to 5 crore equity shares in the ratio of 1:15 (that is, one share for every 15 shares held), priced at Rs at Rs 30 per equity share.
GMR Infrastructure, which develops various infrastructure projects, moved up 6.46% to Rs 797.25. On Monday, 27 August 2007, the company's subsidiary GMR Energy secured a major hydropower project in Himachal Pradesh, after it paid the state government Rs 82 crore as premium upfront money.
IT solutions provider i-flex Solutions spurted 5.13% to Rs 2014.45. Recently, its Dutch unit, i-flex Solutions BV, had raised its stake in Greek unit i-flex Solutions SA to 90%. The Greek unit was incorporated in May 2007 with an investment of 35% by i-flex Solutions BV.
Nicholas Piramal India surged 3.93% to Rs 257.70 after it announced that its board will consider proposal for restructuring the company's research & development division by demerging its new chemical entity (NCE) research unit into a separate entity. The board meeting will be held on 31 August 2007.
Modern Dairies hit 5% upper circuit of Rs 95.05 on BSE after it fixed 1 October 2007 as record date for issue the 1:1 bonus shares.
UTV jumped 4.92% to Rs 485.95 on reports that it is in talks to rope in a strategic investor for its broadcasting business, which entails an investment of Rs 600 crore for nine channels. The broadcasting initiatives are under UTV Global Broadcasting which is privately held. UTV Global Broadcasting has three subsidiary companies which run the different lines of businesses.
Nagarjuna Fertilisers slipped 1.47% to Rs 33.60 after the National Stock Exchange (NSE) barred further F&O positions in the stock as 95% marketwide position limit was crossed on Monday, 27 August 2007.
Centurion Bank of Punjab rose 0.91% to Rs 38.80 after the private sector bank got Reserve Bank of India's approval for the merger of Lord Krishna Bank with it. The merger is effective from 29 August 2007 and Centurion will issue seven shares in itself for every five held in Lord Krishna, the bank said.
Mold-Tek Technologies was locked at upper limit of 5% at Rs 131.90 after its board approved to de-merge plastic business and merge Teck Men Tools with itself.
Auto ancillary maker Perfect Circle India jumped 5% to Rs 26.70 after it said during market hours on Monday, 27 August 2007, that acquirer Asia Investments has accepted delisting price of Rs 35 per share for acquiring balance stake of 15.70% from the public, as discovered in the reverse book building process which closed on 24 August 2007.
All European markets were trading weak today, 28 August 2007. Key benchmark indices in France (down 0.98% to 5,535.51), Germany (down 0.38% to 7,457.54) and United Kingdom (down 0.71% to 6,176) declined.
Asian markets settled on a mixed note today, 28 August 2007. South Korea's Seoul Composite (up 1.46% at 1,829.31), Taiwan Weighted (up 0.11% at 8,727.55) and Shanghai Composite (up 0.87% to 5,194.68) rose.
Hang Seng (down 0.91% at 23,363.76), Singapore's Straits Times (down 1.34% at 3,343) and Japan's Nikkei (down 0.09% at 16,287.49) slipped.
US shares slipped yesterday, 27 August 2007 after news that sales of existing homes slipped in July 2007 for a fifth straight month stirred concerns about the strength of the economy. The Dow Jones industrial Average fell 56.74 points, or 0.42%, to 13,322.13. Broader stock indicators also declined. The Standard & Poor's 500 index fell 12.58 points, or 0.85%, to 1,466.79, and the Nasdaq Composite index fell 15.44 points, or 0.60%, to 2,561.25.
Crude oil prices were steady at above $72 on Tuesday, 28 August 2007, with US refinery shutdowns reviving supply concerns. US crude rose 6 cents to $72.03 a barrel. London Brent gained 7 cents to $71.02 a barrel.
The UPA government and the Left parties, on Monday 27 August 2007, agreed to formalise a joint mechanism to address the latter’s objections on the civil nuclear deal with the US. But the Left’s main demand of not proceeding with International Atomic Energy Agency (IAEA) negotiations remained unresolved, even after a series of high-profile meetings between the two sides, reports suggest. In a meeting of government with the Left party leaders held on Monday, 27 August 2007, Left parties reiterated their that they would agree to participate in the mechanism, but the government shouldn't go ahead with next round of IAEA negotiations.
The proposed mechanism in the form of a committee will also decide how long the government will stall IAEA negotiations. However, the government has refused to give any time frame for the committee to finish its work
The Left Front’s opposition to the nuclear deal with US had stoked concerns over the past few days that if the Communist allies of the ruling coalition government at the Centre decide to pull their support, the government will be reduced to a minority, triggering fresh elections.
Monday, August 27, 2007
Indian Oil may rope in Petronet for Ennore project
Indian Oil Corporation Ltd (IOC) is likely to rope in Petronet LNG Ltd (PLL) as partner for its proposed liquefied natural gas (LNG) import and re-gasification terminal at Ennore, Tamil Nadu.
The IOC board is expected to consider the proposal on Monday. Subsequent to the Board approval, a memorandum of understanding (MoU) between the two entities is expected to be inked, sources said.
Sources told Business Line that bringing PLL into the project would help in sourcing LNG. Non-availability of LNG under long-term contracts has been a major deciding factor in such projects, the sources added. In fact, IOC has also been pursuing various LNG suppliers for long-term supply.
Only after an umbrella MoU is inked will the two companies define the exact role of each other in the project, sources said. While the companies remained tight-lipped on the proposal, indications are that besides the LNG terminal project, PLL would look for a larger role in its joint venture with IOC, including certain downstream activities in related areas.
The IOC board is expected to consider the proposal on Monday. Subsequent to the Board approval, a memorandum of understanding (MoU) between the two entities is expected to be inked, sources said.
Sources told Business Line that bringing PLL into the project would help in sourcing LNG. Non-availability of LNG under long-term contracts has been a major deciding factor in such projects, the sources added. In fact, IOC has also been pursuing various LNG suppliers for long-term supply.
Only after an umbrella MoU is inked will the two companies define the exact role of each other in the project, sources said. While the companies remained tight-lipped on the proposal, indications are that besides the LNG terminal project, PLL would look for a larger role in its joint venture with IOC, including certain downstream activities in related areas.
Infosys launches subsidiary in Mexico
Software major Infosys Technologies has established a subsidiary in Mexico.The new subsidiary will help Infosys to establish its services in the region.
Rural Electrification Corp files papers for Rs 1200cr IPO
State-run power sector firm Rural Electrification Corporation has filed a draft red herring prospectus (DRHP) with market regulator SEBI for its initial public offer through which it expects to raise up to Rs 1,200 crore.
The company has filed a DRHP with SEBI for the maiden public issue, in which about 15.6 crore shares would be offered, an REC spokesperson said.
These shares constitute 20% of the existing equity capital of REC, he added.
REC would issue the shares at a price to be decided through the book building process and the scrip would be listed on Bombay Stock Exchange and National Stock Exchange.
The proceeds of the issue would be utilised to meet the company's future corporate requirements, the spokesperson said.
Power Grid Corporation of India has also filed its red herring prospectus with the market regulator for an initial public offer to raise an estimated Rs 3,500 crore.
Last year, the Cabinet Committee on Economic Affairs had approved the proposal for initial public offerings of three state-owned power companies - Power Finance Corporation, Power Grid Corporation and Rural Electrification Corporation, reports Business Standard.
The company has filed a DRHP with SEBI for the maiden public issue, in which about 15.6 crore shares would be offered, an REC spokesperson said.
These shares constitute 20% of the existing equity capital of REC, he added.
REC would issue the shares at a price to be decided through the book building process and the scrip would be listed on Bombay Stock Exchange and National Stock Exchange.
The proceeds of the issue would be utilised to meet the company's future corporate requirements, the spokesperson said.
Power Grid Corporation of India has also filed its red herring prospectus with the market regulator for an initial public offer to raise an estimated Rs 3,500 crore.
Last year, the Cabinet Committee on Economic Affairs had approved the proposal for initial public offerings of three state-owned power companies - Power Finance Corporation, Power Grid Corporation and Rural Electrification Corporation, reports Business Standard.
Stocks you can pick up this week
McNally Bharat CMP: Rs 177.25 Target Price: NA
Edelweiss Capital has maintained ‘buy’ rating on McNally Bharat Engineering. “With 50, 000 MW of capacity addition expected over FY07-12, we expect a total capital expenditure of Rs 112.5 billion on the material handling equipment front over six years. McNally, being one of the bulk material handling equipment players, is expected to benefit from the same,” the Edelweiss note to clients said. “In FY07 McNally had 30-35 projects in hand, aggregating to a turnover of Rs 5 billion. Currently with an order book worth Rs 11 billion, McNally has less than 10 projects in hand. This reduces the risk points for McNally and also gives the company the option of getting selective in bidding for future projects and in turn improve margins,” the note added
Patel Engineering
CMP: Rs 391.80
Target Price: Rs 485
The retail broking arm of Kotak Securities has upgraded its rating on Patel Engineering from hold to ‘buy’ with a price target of Rs 485. “Patel Engineering enjoys very good margins as compared with other construction players due to its focus on the higher margin hydropower construction projects. Hydropower projects have operating margins in the range of 17-22% while irrigation projects have margins in the range of 7-15%,” the Kotak Securities note to clients said. “With a current order book of approximately Rs 50 billion, we expect the company to grow its revenues at a compounded annual growth rate of 30%. Adjusted with the subsidiary and land bank valuations, it is trading at 14.3 times and 11.4 times P/E multiples on FY08 and FY09 estimates, respectively,” the note added.
Ambuja Cements
CMP: Rs 135.40
Target Price: Rs 103
Citigroup Global Markets has reiterated its ‘sell’ rating on Ambuja Cements even after Holcim’s open offer at Rs 154 a share. The brokerage has a price target of Rs 103 for the stock. According to Citigroup, the ACL stock is expensive due to limited visibility on cement pricing, expected decline in 2008 earnings due to capacity addition in the sector, and risk to exports because of new capacities coming up in the Middle East. “We have factored in a slowdown in export volumes and pricing, however, these could be greater than we forecast,” the note added.
ITC
CMP: Rs 161.90
Target Price: Rs 203
Motilal Oswal has maintained its ‘buy’ rating on ITC with a price target of Rs 203. “We expect(cigarette) volumes to start recovering 4QFY08 onward and upgrade our cigarette volume growth estimates for FY08 to -3% against -6% estimated earlier, for FY09 to 5% against the earlier 4%,” the Motilal Oswal note to clients said. “We expect the paperboard and packaging business to improve topline and margins due to increasing of paper capacity by 50% in FY09. Branded foods business is likely to record higher growth rates due to the success of Bingo (potato wafers), continued growth momentum in Sunfeast (biscuits) and Aashirwad (atta),” the note added.
Indiabulls Financial
CMP: Rs 478.95
Target Price: Rs 515
Goldman Sachs has initiated coverage on Indiabulls Financial Services with a ‘neutral’ rating, saying the stock was fairly priced at current levels. “IBFSL has a well established market position in the securities business, however, we believe the key value driver for the company going forward will be the consumer finance business. We believe IBFSL’s consumer finance business caters to a niche market, which is largely untapped, giving it has an early-mover advantage,” the Goldman Sachs note to clients said. “The company is likely to expand its scale of operations significantly between FY08E and FY10E and consequently we expect this business to deliver 90% CAGR and 86% CAGR in loan assets (excluding shares) and earnings, respectively. However, we believe the current valuation captures our growth expectations from the consumer finance and capital market businesses,” the note added.
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Edelweiss Capital has maintained ‘buy’ rating on McNally Bharat Engineering. “With 50, 000 MW of capacity addition expected over FY07-12, we expect a total capital expenditure of Rs 112.5 billion on the material handling equipment front over six years. McNally, being one of the bulk material handling equipment players, is expected to benefit from the same,” the Edelweiss note to clients said. “In FY07 McNally had 30-35 projects in hand, aggregating to a turnover of Rs 5 billion. Currently with an order book worth Rs 11 billion, McNally has less than 10 projects in hand. This reduces the risk points for McNally and also gives the company the option of getting selective in bidding for future projects and in turn improve margins,” the note added
Patel Engineering
CMP: Rs 391.80
Target Price: Rs 485
The retail broking arm of Kotak Securities has upgraded its rating on Patel Engineering from hold to ‘buy’ with a price target of Rs 485. “Patel Engineering enjoys very good margins as compared with other construction players due to its focus on the higher margin hydropower construction projects. Hydropower projects have operating margins in the range of 17-22% while irrigation projects have margins in the range of 7-15%,” the Kotak Securities note to clients said. “With a current order book of approximately Rs 50 billion, we expect the company to grow its revenues at a compounded annual growth rate of 30%. Adjusted with the subsidiary and land bank valuations, it is trading at 14.3 times and 11.4 times P/E multiples on FY08 and FY09 estimates, respectively,” the note added.
Ambuja Cements
CMP: Rs 135.40
Target Price: Rs 103
Citigroup Global Markets has reiterated its ‘sell’ rating on Ambuja Cements even after Holcim’s open offer at Rs 154 a share. The brokerage has a price target of Rs 103 for the stock. According to Citigroup, the ACL stock is expensive due to limited visibility on cement pricing, expected decline in 2008 earnings due to capacity addition in the sector, and risk to exports because of new capacities coming up in the Middle East. “We have factored in a slowdown in export volumes and pricing, however, these could be greater than we forecast,” the note added.
ITC
CMP: Rs 161.90
Target Price: Rs 203
Motilal Oswal has maintained its ‘buy’ rating on ITC with a price target of Rs 203. “We expect(cigarette) volumes to start recovering 4QFY08 onward and upgrade our cigarette volume growth estimates for FY08 to -3% against -6% estimated earlier, for FY09 to 5% against the earlier 4%,” the Motilal Oswal note to clients said. “We expect the paperboard and packaging business to improve topline and margins due to increasing of paper capacity by 50% in FY09. Branded foods business is likely to record higher growth rates due to the success of Bingo (potato wafers), continued growth momentum in Sunfeast (biscuits) and Aashirwad (atta),” the note added.
Indiabulls Financial
CMP: Rs 478.95
Target Price: Rs 515
Goldman Sachs has initiated coverage on Indiabulls Financial Services with a ‘neutral’ rating, saying the stock was fairly priced at current levels. “IBFSL has a well established market position in the securities business, however, we believe the key value driver for the company going forward will be the consumer finance business. We believe IBFSL’s consumer finance business caters to a niche market, which is largely untapped, giving it has an early-mover advantage,” the Goldman Sachs note to clients said. “The company is likely to expand its scale of operations significantly between FY08E and FY10E and consequently we expect this business to deliver 90% CAGR and 86% CAGR in loan assets (excluding shares) and earnings, respectively. However, we believe the current valuation captures our growth expectations from the consumer finance and capital market businesses,” the note added.
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Board Meetings For August 27, 2007
1.ALLCARGO
ALLCARGO GLOBAL LOGISTICS LIMITED
Acquisition/Others
2.ANGAUTO
ANG AUTO LIMITED
Audited Financial Results/Dividend/Others
3.ATLASCYCLE
ATLAS CYCLES (HARYANA) LTD
Accounts/Dividend
4.BHARATRAS
BHARAT RASAYAN LTD
Annual Accounts/Dividend/Others
5.CINEVISTA
CINEVISTAAS LIMITED
Re-issue of forfeited shares
6.DYNACONS
DYNACONS SYSTEMS & SOLUTIONS LTD.
AGM/Book Closure
7.GUJSTATFIN
GUJARAT STATE FINANCIAL CORPORATION
Unaudited Financial Results
8.JPHYDRO
JAIPRAKASH HYDRO-POWER LIMITED
Interim Dividend
9.LOKESHMACH
LOKESH MACHINES LIMITED
Audited Financial Results/Dividend/Others
10.LUMAXAUTO
LUMAX AUTOMOTIVE SYSTEMS LIMITED
Dividend
11.MICROTECH
MICRO TECHNOLOGIES (INDIA) LIMITED
Audited Financial Results/Dividend/Others
12.MSKPROJ
MSK PROJECTS (INDIA) LIMITED
Audited Accounts/Dividend/Others
13.MUKTAARTS
MUKTA ARTS LTD.
Audited Accounts/ Others
14.RUCHINFRA
RUCHI INFRASTRUCTURE LTD.
Audited Financial Results/Dividend/Others
15.SMSPHARMA
SMS PHARMACEUTICALS LIMITED
Audited Accounts/Dividend/Others
16.SPLIL
SPL INDUSTRIES LIMITED
Board Meeting Re-scheduled
17.STARPAPER
STAR PAPER MILLS LTD
Miscellaneous
18.SWARAJMAZD
SWARAJ MAZDA LTD
Rights Issue
19.VATSALTD
VATSA CORPORATIONS LTD
Unaudited Financial Results
20.VISAKAIND
VISAKA INDUSTRIES LTD.
Audited quarterly results
ALLCARGO GLOBAL LOGISTICS LIMITED
Acquisition/Others
2.ANGAUTO
ANG AUTO LIMITED
Audited Financial Results/Dividend/Others
3.ATLASCYCLE
ATLAS CYCLES (HARYANA) LTD
Accounts/Dividend
4.BHARATRAS
BHARAT RASAYAN LTD
Annual Accounts/Dividend/Others
5.CINEVISTA
CINEVISTAAS LIMITED
Re-issue of forfeited shares
6.DYNACONS
DYNACONS SYSTEMS & SOLUTIONS LTD.
AGM/Book Closure
7.GUJSTATFIN
GUJARAT STATE FINANCIAL CORPORATION
Unaudited Financial Results
8.JPHYDRO
JAIPRAKASH HYDRO-POWER LIMITED
Interim Dividend
9.LOKESHMACH
LOKESH MACHINES LIMITED
Audited Financial Results/Dividend/Others
10.LUMAXAUTO
LUMAX AUTOMOTIVE SYSTEMS LIMITED
Dividend
11.MICROTECH
MICRO TECHNOLOGIES (INDIA) LIMITED
Audited Financial Results/Dividend/Others
12.MSKPROJ
MSK PROJECTS (INDIA) LIMITED
Audited Accounts/Dividend/Others
13.MUKTAARTS
MUKTA ARTS LTD.
Audited Accounts/ Others
14.RUCHINFRA
RUCHI INFRASTRUCTURE LTD.
Audited Financial Results/Dividend/Others
15.SMSPHARMA
SMS PHARMACEUTICALS LIMITED
Audited Accounts/Dividend/Others
16.SPLIL
SPL INDUSTRIES LIMITED
Board Meeting Re-scheduled
17.STARPAPER
STAR PAPER MILLS LTD
Miscellaneous
18.SWARAJMAZD
SWARAJ MAZDA LTD
Rights Issue
19.VATSALTD
VATSA CORPORATIONS LTD
Unaudited Financial Results
20.VISAKAIND
VISAKA INDUSTRIES LTD.
Audited quarterly results
Sunday, August 26, 2007
Fake goods worth USD 2.63 million seized in southern China
Amid global complaints against shoddy and toxic "Made in China" products, police in the southern Chinese city of Shenzhen have seized over 20,000 counterfeit items including shoes, wristwatches and golf gears and arrested five people.Officials of the Shenzhen Industry and Commerce Bureau, after receiving a tip that fake goods were being sold in an office building in the city's Luohuo district, conducted a raid along with the help of police.They found more than 20,000 fake products including suitcases, haute couture, shoes, wristwatches and golf gears in several shops and two warehouses on the 23rd floor of the building, Xinhua news agency reported, quoting local officials.The seized products, pirated big-name brands like LV, Nike, Gucci and Montblanc, are estimated to be worth USD 2.63 million, the report said.Most of the fakes were sold to foreign visitors and tourists from Hong Kong and Macao, who were brought in by tourist guides. Some of the fakes were also wholesaled to another market in the same district.Local police detained five dealers on the scene, and are looking into the sources of the fakes.Hit by a spate of global recalls of shoddy and toxic Chinese products, the government this week declared a four-month "special war" against poor product quality and supervision.Items under the scanner include drugs, agricultural products, pork, processed food, catering sector, import and export products, and other products related to public health such as toys and electric wires.
N-deal failure could hit FDI inflow: Tata
Tata Sons Chairman Ratan Tata has said any failure of the Indo-US nuclear deal would be a "serious setback" for India and could impact inflow of foreign direct investments to the country.In an interview with Karan Thapar for Devil's Advocate programme on television channel CNN-IBN, Tata said the civil nuclear deal with the US was in many ways the best possible thing that had happened to India in a long time.Asked would it be a setback if the deal didn't materialise, he said: "I believe it is a serious setback to India. I believe the only people happy to see this not happening are probably Pakistan and China." Apprehending implications on FDI inflows if the deal were to fail, Tata said: "I think it could because I think there would be repercussions and there would be reactions." The industry doyen felt a need for the present political system to change and take a re-look at ideologies.On a question if the Left needed to reinvent itself, he declined a direct reply but said: "We all need to reinvent ourselves. Even the Vatican reinvents itself." Hitting out at political parties for "opposing for the sake of opposing," Tata said: "I really do wish we could go back to the days when we had stronger coalitions or single parties in government and a two-party system in the House where you really dealt with issues and serious ideologies."
India's debt level on the rise
The country's economy is on a strong wicket going by the debt level while other Asian countries such as China, Hong Kong and Malaysia have witnessed a sharp rise in their domestic credit, a latest report says.According to a Citigroup analysis, the ratio of domestic credit levels in the gross domestic products in six out of the 10 economies of Asia, excluding Japan, has risen. Major economies -- China, Hong Kong, Korea, Malaysia, Taiwan and Thailand -- have recorded the credit levels higher than their gross domestic product in 2006."In six out of the 10 economies of Asia, excluding Japan, the domestic credit to GDP ratio has risen and six economies have domestic credit to GDP ratio in excess of 100 per cent," Citigroup analyst Marcus Rosen said in the report.For India, the credit to GDP ratio of 64 per cent in 2006 is at a comfortable level and much less than that of other major Asian economies. The country recorded a GDP growth rate of 9.4 per cent for the financial year 2006-07.In the United States, the credit to the GDP ratio is nearly equal. This means debt is balanced by the sum of market value of all final goods and services produced within a country in a given period of time.In Japan, the level is over 200 per cent, indicating that the debt is double the GDP, while in the Euro area it is 152 per cent, the report said.The report highlights the progression of domestic credits as a per cent of GDP over 3 time frames - 1995, 2000 and 2006.India has witnessed one of the biggest rises in credit of about 20.8 per cent from 2000 to 2006. Korea with over 29.2 per cent and China with 14.7 per cent are the other countries where big increases have been seen.
Centre's nod for Tatas, Essar
Domestic steel giants Tatas and Essar have received the Centre's nod to prospect more than 250 million tonnes of iron ore in Bailadila mines in Chhattisgarh for their proposed steel projects with a total capacity of eight million tonnes."The Centre has accorded its approval to allow us to prospect Bailadila-III deposit in Chhattisgarh. We are awaiting forest clearance from the government and will commence work only after receiving it," Essar Steel Holdings CEO J Mehra told PTI.Prospecting would be done on more than 2,000 acres of land and it is expected that the deposit has about 150 million tonnes of iron ore. "We will complete prospecting within six months after we began the work," he said.Essar Steel had signed an MoU with the Chhattisgarh government to set up a 3.2 million integrated steel plant at an estimated cost of Rs 7,000 crore, Mehra said.The licence given to Essar was earlier held by National Mineral Development Corporation, but the state-run reportedly lost this in February last as it had not excavated the mines.Similarly, Tata Steel has also received the government's nod for prospecting the Bailadila-I deposit that has an estimated reserve of up to 150 million tonnes. A Tata Steel spokesman confirmed the development and said prospecting would begin in due course of time.Tata Steel plans to build a 5 million tonne steel plant at Bastar in Chhattisgarh at an estimated investment of about Rs 10,000 crore.
SBI Life to double premium income in 2007-08
SBI Life Insurance Company Ltd is targeting to double total premium income to Rs 6,000 crore during the current financial year, a senior company official said on Tuesday. Deputy chief executive officer of SBI Life T Paola Dipaolo told reporters that total premium income was Rs 3,000 crore in the last fiscal. Of this, Rs 2,600 crore was new premium income. To sustain business growth, promoters of SBI Life would infuse Rs 400 crore as capital during the current financial year. The current capital base is Rs 500 crore. SBI Life is a joint venture between State Bank of India and Societe Generale of France. Speaking about the credit life business, he said the company is seeking to double business to Rs 500 crore during the current fiscal. Under the credit life business, SBI Life provides cover for home loans, auto loans, two-wheeler loans, consumer durables and credit cards. He said that 67 per cent of the company's products were unit linked. Through the bancassurance route, SBI Life generates 20 per cent of the total premium income. Meanwhile, SBI Life Q1 profits soared to Rs 4.75 crore as compared to a total profit of Rs 3.88 crore in entire FY06-07.
Internet telephony tariff to make calls to US cheaper
The prophecy which global telecom majors have feared for long, that voice will one day become free, is now on the horizon. The use of Internet for voice calls is helping crash tariff boundaries to unimaginable lows. MTNL has become the first traditional voice provider to announce Voice over Internet Protocol (VoIP) services in Delhi, offering international calls to its broadband subscribers at Rs 1/minute.VoIP services do not require either a computer or an Internet connection, just an adaptor or an IP phone. MTNL’s service uses SIP (Session Initiation Protocol) for transporting voice packets, which is essentially an adaptor attached to a regular phone. In IP phones, the adaptors are a part of the instrument itself. MTNL’s offer, though welcome, comes late. Government policy allowed mobile firms the unrestricted use of VoIP to offer calls as far back as April 2006. However, while ISPs (Internet service providers) offer voice services at Re 1/minute primarily to the US, mobile operators continue to charge Rs 6.40/minute for calls to the US and Rs 9.20/minute to call the Gulf. World Phone Internet Services offer ILD calls at 95 paise/minute. According to Trai’s latest figures, 10% of the 2,500 million outgoing ISD minutes in 2005-06 were on VoIP. Interestingly, VoIP grew a whopping 300% in 2006-07 with 800 million minutes, while total ISD outgoing minutes grew just 40% to 3,500 million minutes. In a country that is globally recognised for being the second most talkative nation by way of telecom minutes of usage, signs of these prices being beaten down promise untold delight to consumers. The inevitability of free voice where over 90% of the market is still vanilla voice, appears a lot closer after MNTL’s move. However, the real price threshold will come when private players follow suit. ISPs offer a serious challenge. Sify offers unlimited calls at an unbelievable price of Rs 250/month in 117 cities across India. MTNL’s price for the same service, is 10 paise and World Phone does not charge at all. For now, interconnection between ISPs is restricted. Should this be removed, the VoIP market could simply explode.
earn after your retire
Senior Citizen Savings Scheme or Post Office monthly income schemes give you a return rate of 8-9%. The flip side here is that your money gets locked for three years. While post office schemes give you income every month, returns from senior citizen savings schemes come every four months.
Fixed Deposits
While you can’t withdraw money from a fixed deposit, the monthly income plan of the FDs poses no such problem. The rate of interest on the senior citizen schemes is 8-9%, and on FDs it is 7-7.5%.
National Savings Certificates
If you are looking for tax-free investments, NSC could be your ticket. They give an 8% rate of return. You have to make a one-time investment for six years.
Public Provident FundsPPF is another tax saving investment option. You can invest up to Rs 70,000 per annum in PPF (5-year lock-in period). Even after five years you can withdraw only a part of your investment.
Fixed Deposits
While you can’t withdraw money from a fixed deposit, the monthly income plan of the FDs poses no such problem. The rate of interest on the senior citizen schemes is 8-9%, and on FDs it is 7-7.5%.
National Savings Certificates
If you are looking for tax-free investments, NSC could be your ticket. They give an 8% rate of return. You have to make a one-time investment for six years.
Public Provident FundsPPF is another tax saving investment option. You can invest up to Rs 70,000 per annum in PPF (5-year lock-in period). Even after five years you can withdraw only a part of your investment.
Blasts at Hyderabad: 30 killed, 40 injured
At least 30 people died and 40 were injured in two blasts at two places in Hyderabad on Saturday evening. The blasts occurred at around 1930 hrs IST—the first at Lumbini Park on Necklace Road near the state Secretariat and the second 15 minutes later at Gokul Chat shop, a popular eating joint in Koti. The two places are eight km apart. Several hundred people had gathered at an auditorium in Lumbini Park for a laser show off the Hussain Sagar Lake. Reddy said around 500 people were in the auditorium when the blast ripped through the middle row of seats.
Saturday, August 25, 2007
i-flex Solutions - Outcome of Board Meeting
i-flex Solutions Ltd has informed that the Board of Directors of the Company at its meeting held on August 24, 2007, has allotted 26,207 ESOP equity shares of face value of Rs 5/- each to the applicant employees of the Company.In this lot 20,000 shares have been allotted to Mr. Oliver Trancart, senior employee of the Company.
Idea Cellular - quarter ended June 30, 2007
Idea Cellular Ltd has informed that in the Limited Review report of the Company for the quarter ended June 30, 2007, the Auditors of the Company have made the following observations:The Company along with its subsidiaries namely, Idea Mobile Communications Ltd, BTA Cellcom Ltd, Idea Telecommunications Ltd, Sapte Investments Pvt Ltd, Vsapte Investments Pvt Ltd, Bhagalaxmi Investments Pvt Ltd and Asian Telephone Services Ltd have filed applications for amalgamation of these subsidiaries into the Company with the respective High Courts within whose jurisdiction the Registered Office of these Companies are situated.The appointed date as per the scheme of amalgamation is April 01, 2006. The orders of High Courts for the proposed amalgamation of subsidiaries with the Company have been received in respect of the Company & three subsidiaries of the Company and have not been received for other subsidiaries.Therefore the Statement of the Company has been prepared without giving any effect of proposed amalgamation of these subsidiaries with the Company.
Varun Shipping
Varun Shipping Company Ltd has informed that consequent to the exercise of option for conversion of 80,000 Optionally Fully Convertible Warrants (OFCWs), which were allotted on Preferential basis to Mr. Arun Mehta, Vice Chairman and Managing Director, the Committee of Directors at its meeting held on August 24, 2007 has issued and allotted 80,000 equity shares to Mr. Arun Mehta, at a price of Rs 75 per share (i.e. Rs 10 on capital account and Rs 65 on premium account).
Magnum Ventures IPO opens on 27 August 2007
Price band Rs 27 - 30 a share
Magnum Ventures is entering the capital markets with an IPO of 1.76 crore equity shares for cash at a premium to be decided through a 100% book built process. The issue will open on 27 August 2007 and will close on 30 August 2007.
The company has fixed a price band between Rs 27 - Rs 30 per equity share of Rs 10 each. The minimum lot size for the IPO is 200 share and multiples of 200 shares thereafter.
At the Rs 27-30 per share price band, the PE multiple works out in the range of 12.27- 13.63, based on the year ended March 2007 EPS of Rs 2.2.
Magnum Ventures is engaged in trading and manufacturing of paper for more then 25 years and now plans to enter into the hospitality sector by setting up a 4-star business hotel with 212 rooms, conference halls, food and beverages and other facilities at Sahidabad district near Delhi at a cost of Rs 10.63 crore.
It has entered into a management and territory licence agreement with the Country Development & Management Services Pvt Ltd (CDMS), which has the right to offer franchise of the hotel brand Country Inn & Suites by Carlson group. The proposed hotel will be fully operational by April 2009.
The company also plans to modernize its production facilities, at its two paper units by technological upgradation, including replacement of plant and machinery at a cost of Rs 50 crore.
Magnum Ventures reported net profit of Rs 8.27 crore on sales of Rs 90.74 crore in the year ended March 2007.
Magnum Ventures is entering the capital markets with an IPO of 1.76 crore equity shares for cash at a premium to be decided through a 100% book built process. The issue will open on 27 August 2007 and will close on 30 August 2007.
The company has fixed a price band between Rs 27 - Rs 30 per equity share of Rs 10 each. The minimum lot size for the IPO is 200 share and multiples of 200 shares thereafter.
At the Rs 27-30 per share price band, the PE multiple works out in the range of 12.27- 13.63, based on the year ended March 2007 EPS of Rs 2.2.
Magnum Ventures is engaged in trading and manufacturing of paper for more then 25 years and now plans to enter into the hospitality sector by setting up a 4-star business hotel with 212 rooms, conference halls, food and beverages and other facilities at Sahidabad district near Delhi at a cost of Rs 10.63 crore.
It has entered into a management and territory licence agreement with the Country Development & Management Services Pvt Ltd (CDMS), which has the right to offer franchise of the hotel brand Country Inn & Suites by Carlson group. The proposed hotel will be fully operational by April 2009.
The company also plans to modernize its production facilities, at its two paper units by technological upgradation, including replacement of plant and machinery at a cost of Rs 50 crore.
Magnum Ventures reported net profit of Rs 8.27 crore on sales of Rs 90.74 crore in the year ended March 2007.
Thursday, August 23, 2007
Board Meetings For August 23, 2007
1.ANSALHSG
ANSAL HOUSING AND CONSTRUCTION LIMITED
Audited Consolidated Accounts
2.ARAVALIIND
ARAVALI INDUSTRIES LIMITED
Annual Accounts/ Others
3.HCL-INSYS
HCL INFOSYSTEMS LTD
Audited Accounts/Dividend/Others
4.INDIACEM
INDIA CEMENTS LTD.
Miscellaneous
5. OMAXE
OMAXE LIMITED
AGM/Book Closure/Others
ANSAL HOUSING AND CONSTRUCTION LIMITED
Audited Consolidated Accounts
2.ARAVALIIND
ARAVALI INDUSTRIES LIMITED
Annual Accounts/ Others
3.HCL-INSYS
HCL INFOSYSTEMS LTD
Audited Accounts/Dividend/Others
4.INDIACEM
INDIA CEMENTS LTD.
Miscellaneous
5. OMAXE
OMAXE LIMITED
AGM/Book Closure/Others
Bharti Airtel connects gains on plan to boost rural reach
Bharti Airtel rose 4.09% to Rs 846.55 at 14:41 IST on reports it plans to double its number of telephone towers in a bid to increase its rural reach.
The BSE Sensex, meanwhile, was up 267 points or 1.81% to 14,242, in volatile trade.
On BSE, 1.66 lakh shares were traded on the counter today. The scrip had an average daily volume of 2.31 lakh shares in the past one quarter.
Bharti Airtel had hit a high of Rs 849.50 and a low of Rs 811.25 so far during the day. The stock had touched a 52-week high of Rs 960 on 26 July 2007 and 52 week low of Rs382 on 24 August 2006.
The scrip of India's largest cellular services provider had underperformed the market over the last one month to 21 August 2007, declining 13.58 % compared to the Sensex’s fall of 11.08%. It had also underperformed the market over the past quarter, declining 4.24% compared to the Sensex’s slide of 2.6%.
From a recent high of Rs 885.80 on 8 August 2007 the scrip declined 8.19% to Rs 813.20 on 21 August 2007.
The company's current equity is Rs 1897.15 crore. Face value per share is Rs 10.
The current price of Rs 846.55 discounts its Q1 June 2007 annualised EPS of Rs 30 (as per consolidated Indian GAAP results) by a PE multiple of 28.21.
As per reports, Bharti Airtel will double its number of telephone towers to 80,000 by March 2008, in bid to increase its rural reach and garner substantial market share in the largely untapped rural market.
Bharti Airtel announced on 7 August 2007 that its subsidiary plans to start direct-to-home satellite TV services by the final quarter of the fiscal year ending March 2008. Bharti Airtel said its Bharti Telemedia unit had received a letter of intent from the Indian government to commence the services.
Net profit of Bharti Airtel rose 73.50% to Rs 1412.92 crore on 52.39% rise in sales to Rs 5611.62 crore in Q1 June 2007 over Q1 June 2006. The results were announced on 26 July 2007.
Bharti Enterprises, the parent of Bharti Airtel, said in July that one of its group companies had bought a 4.99% in the telecom firm from Vodafone. The purchase takes Bharti's group's voting interest in Bharti Airtel to more than 50%.
On 18 July 2007, Bharti Airtel said it had awarded to Ericsson an estimated $2-billion expansion contract, including expansion of its GSM/EDGE network and providing capacity management.
The BSE Sensex, meanwhile, was up 267 points or 1.81% to 14,242, in volatile trade.
On BSE, 1.66 lakh shares were traded on the counter today. The scrip had an average daily volume of 2.31 lakh shares in the past one quarter.
Bharti Airtel had hit a high of Rs 849.50 and a low of Rs 811.25 so far during the day. The stock had touched a 52-week high of Rs 960 on 26 July 2007 and 52 week low of Rs382 on 24 August 2006.
The scrip of India's largest cellular services provider had underperformed the market over the last one month to 21 August 2007, declining 13.58 % compared to the Sensex’s fall of 11.08%. It had also underperformed the market over the past quarter, declining 4.24% compared to the Sensex’s slide of 2.6%.
From a recent high of Rs 885.80 on 8 August 2007 the scrip declined 8.19% to Rs 813.20 on 21 August 2007.
The company's current equity is Rs 1897.15 crore. Face value per share is Rs 10.
The current price of Rs 846.55 discounts its Q1 June 2007 annualised EPS of Rs 30 (as per consolidated Indian GAAP results) by a PE multiple of 28.21.
As per reports, Bharti Airtel will double its number of telephone towers to 80,000 by March 2008, in bid to increase its rural reach and garner substantial market share in the largely untapped rural market.
Bharti Airtel announced on 7 August 2007 that its subsidiary plans to start direct-to-home satellite TV services by the final quarter of the fiscal year ending March 2008. Bharti Airtel said its Bharti Telemedia unit had received a letter of intent from the Indian government to commence the services.
Net profit of Bharti Airtel rose 73.50% to Rs 1412.92 crore on 52.39% rise in sales to Rs 5611.62 crore in Q1 June 2007 over Q1 June 2006. The results were announced on 26 July 2007.
Bharti Enterprises, the parent of Bharti Airtel, said in July that one of its group companies had bought a 4.99% in the telecom firm from Vodafone. The purchase takes Bharti's group's voting interest in Bharti Airtel to more than 50%.
On 18 July 2007, Bharti Airtel said it had awarded to Ericsson an estimated $2-billion expansion contract, including expansion of its GSM/EDGE network and providing capacity management.
U.S. STOCKS - Indexes gain on deal talk
NEW YORK (Reuters) - U.S. stocks rose on Wednesday as takeover activity resurfaced and credit markets stabilized, luring investors back into riskier assets such as equities.
After the close, S&P 500 index futures jumped, indicating a sharply higher open on Thursday, after the Wall Street Journal reported Bank of America Corp. plans to invest $2 billion in preferred stock issued by mortgage lender Countrywide Financial Corp.
During the regular session, hopes for a Federal Reserve interest-rate cut persisted as they have since last Friday, highlighting renewed confidence that policy makers would not let financial markets go into a tailspin.
TD Ameritrade Holding Corp shares jumped 4.9 percent to $17.15 on news it was discussing a combination with other online brokers. The Wall Street Journal reported that E*Trade Financial was in talks with TD Ameritrade.
The Dow Jones industrial average climbed 145.27 points, or 1.11 percent, to end at 13,236.13. The Standard & Poor's 500 Index was up 16.95 points, or 1.17 percent, at 1,464.07. The Nasdaq Composite Index was up 31.50 points, or 1.25 percent, at 2,552.80.
In extended trading, Countrywide's shares surged 19 percent to $26, while Bank of America's stock rose 1 percent to $52.50.
"It's the continuation of money moving, and that is a positive for the market, and investor confidence. It shows that Countrywide at this price is a viable company," said Richard Sichel, chief investment officer of Philadelphia Trust Co.
In Wednesday's session, shares of industrial and material companies surged, with aluminum company Alcoa Inc. rising 4.7 percent to $36.22 after BHP Billiton Ltd, the world's largest miner, posted a 19 percent jump in second-half earnings.
Stocks also rose as the flood of cash into the safety of short-term Treasury debt slowed. At the same time, issuers returned to the corporate bond market and prices rose in the mortgage-backed securities market.
"The market senses that the Fed will make sure there's liquidity," said Mark Bronzo, managing director at Gartmore Separate Accounts LLC in Irvington, New York. "People are sensing the fears are fairly high in terms of the credit markets and, as a result. maybe the worst of that is priced in, and you're seeing some signs of stability there."
The Nasdaq's gain was its fourth in a row and the index is now up 5.7 percent for the year, led this week by gains in shares of Apple Inc.
Apple advanced 3.9 percent to $132.51 after reports that the company had reached revenue-sharing deals with several European mobile network operators as it prepares to launch the iPhone in Europe later this year.
Around midday, several big U.S. banks, including Citigroup Inc, said they had borrowed money directly from the Federal Reserve.
Analysts said the move could be encouraging for the market after the Fed said that using its discount window would be considered a sign of strength. Banks have traditionally been hesitant to use the discount window since it is a direct loan from the Fed, one of the primary federal bank regulators.
The S&P index of financial shares ended with a gain of 0.8 percent after falling earlier on the news.
Citigroup's stock also advanced 0.8 percent to close at $48.43 on the New York Stock Exchange.
In other deal news, Dubai agreed to pay up to $5.1 billion for a 9.5 percent stake in MGM Mirage Inc and half the casino company's CitiCenter hotels and apartments project in Las Vegas. MGM shares gained 8.9 percent to $80.94.
E*Trade shares fell 2.1 percent to $15.25 on the Nasdaq.
NYMEX Holdings Inc's shares rose 6.1 percent to $126.06 on the Big Board after the parent of the New York Mercantile Exchange said late Tuesday it has held preliminary discussions about a potential merger.
Besides Alcoa, the Dow's top positive influences included big manufacturers like Caterpillar Inc., up 1.4 percent at $75.30, and DuPont, up 2.5 percent at $48.92.
Speculation that the U.S. central bank will cut benchmark rates sooner rather than later increased after it surprised markets on Friday by cutting the discount rate, which it charges banks to borrow from it.
Problems in the risky U.S. subprime mortgage sector have spurred sharp declines in world stocks over the past month.
Trading was below average on the New York Stock Exchange, with about 1.45 billion shares changing hands, down from last year's estimated daily average of 1.84 billion, while on Nasdaq, about 1.84 billion shares traded, also down from last year's daily average of 2.02 billion.
Advancing stocks outnumbered declining ones by a ratio of about 4 to 1 on the NYSE and by 2 to 1 on Nasdaq.
After the close, S&P 500 index futures jumped, indicating a sharply higher open on Thursday, after the Wall Street Journal reported Bank of America Corp. plans to invest $2 billion in preferred stock issued by mortgage lender Countrywide Financial Corp.
During the regular session, hopes for a Federal Reserve interest-rate cut persisted as they have since last Friday, highlighting renewed confidence that policy makers would not let financial markets go into a tailspin.
TD Ameritrade Holding Corp shares jumped 4.9 percent to $17.15 on news it was discussing a combination with other online brokers. The Wall Street Journal reported that E*Trade Financial was in talks with TD Ameritrade.
The Dow Jones industrial average climbed 145.27 points, or 1.11 percent, to end at 13,236.13. The Standard & Poor's 500 Index was up 16.95 points, or 1.17 percent, at 1,464.07. The Nasdaq Composite Index was up 31.50 points, or 1.25 percent, at 2,552.80.
In extended trading, Countrywide's shares surged 19 percent to $26, while Bank of America's stock rose 1 percent to $52.50.
"It's the continuation of money moving, and that is a positive for the market, and investor confidence. It shows that Countrywide at this price is a viable company," said Richard Sichel, chief investment officer of Philadelphia Trust Co.
In Wednesday's session, shares of industrial and material companies surged, with aluminum company Alcoa Inc. rising 4.7 percent to $36.22 after BHP Billiton Ltd, the world's largest miner, posted a 19 percent jump in second-half earnings.
Stocks also rose as the flood of cash into the safety of short-term Treasury debt slowed. At the same time, issuers returned to the corporate bond market and prices rose in the mortgage-backed securities market.
"The market senses that the Fed will make sure there's liquidity," said Mark Bronzo, managing director at Gartmore Separate Accounts LLC in Irvington, New York. "People are sensing the fears are fairly high in terms of the credit markets and, as a result. maybe the worst of that is priced in, and you're seeing some signs of stability there."
The Nasdaq's gain was its fourth in a row and the index is now up 5.7 percent for the year, led this week by gains in shares of Apple Inc.
Apple advanced 3.9 percent to $132.51 after reports that the company had reached revenue-sharing deals with several European mobile network operators as it prepares to launch the iPhone in Europe later this year.
Around midday, several big U.S. banks, including Citigroup Inc, said they had borrowed money directly from the Federal Reserve.
Analysts said the move could be encouraging for the market after the Fed said that using its discount window would be considered a sign of strength. Banks have traditionally been hesitant to use the discount window since it is a direct loan from the Fed, one of the primary federal bank regulators.
The S&P index of financial shares ended with a gain of 0.8 percent after falling earlier on the news.
Citigroup's stock also advanced 0.8 percent to close at $48.43 on the New York Stock Exchange.
In other deal news, Dubai agreed to pay up to $5.1 billion for a 9.5 percent stake in MGM Mirage Inc and half the casino company's CitiCenter hotels and apartments project in Las Vegas. MGM shares gained 8.9 percent to $80.94.
E*Trade shares fell 2.1 percent to $15.25 on the Nasdaq.
NYMEX Holdings Inc's shares rose 6.1 percent to $126.06 on the Big Board after the parent of the New York Mercantile Exchange said late Tuesday it has held preliminary discussions about a potential merger.
Besides Alcoa, the Dow's top positive influences included big manufacturers like Caterpillar Inc., up 1.4 percent at $75.30, and DuPont, up 2.5 percent at $48.92.
Speculation that the U.S. central bank will cut benchmark rates sooner rather than later increased after it surprised markets on Friday by cutting the discount rate, which it charges banks to borrow from it.
Problems in the risky U.S. subprime mortgage sector have spurred sharp declines in world stocks over the past month.
Trading was below average on the New York Stock Exchange, with about 1.45 billion shares changing hands, down from last year's estimated daily average of 1.84 billion, while on Nasdaq, about 1.84 billion shares traded, also down from last year's daily average of 2.02 billion.
Advancing stocks outnumbered declining ones by a ratio of about 4 to 1 on the NYSE and by 2 to 1 on Nasdaq.
Pharma sector may triple by ’15
Aug. 22: If India’s high economic growth rate holds steady, the pharmaceuticals market will triple to $20 billion by 2015 and become one of the world’s top 10 markets — according to a study by McKinsey and Company, a leading management consulting firm.
At a compounded annual growth rate of 12.3 per cent, the absolute growth of $14 billion will be next to the growth potential of the US and China, and in the same league as the growth in Japan and Canada and the UK, the report states.
"Five factors will drive the growth of the Indian pharmaceuticals market over the next decade: Doubling of disposable incomes and the increase in numbers of middle-class households, significant expansion of medical infrastructure, greater penetration of health insurance, a gradual shift in disease profile and adoption of patented products, and finally population growth," says Mr Palash Mitra, partner, McKinsey and Company and co-leader of the pharmaceuticals and medical products practice.
Patented products are likely to see substantial growth momentum as their share of the pie grows from nominal levels at present, to $2 billion on the back of a supportive regulatory environment, and greater interest by MNCs, predicts the report. "For Indian companies the challenge will be to focus on not just ensuring product access and building robust sales and marketing capabilities, but also creating new markets and crafting differentiated business strategies to service these markets.
On the other hand, multinationals need to raise their game in India and accordingly customise their business models and invest in their India operations," Mr Gautam Kumar, director of McKinsey and Company (India) said.
At a compounded annual growth rate of 12.3 per cent, the absolute growth of $14 billion will be next to the growth potential of the US and China, and in the same league as the growth in Japan and Canada and the UK, the report states.
"Five factors will drive the growth of the Indian pharmaceuticals market over the next decade: Doubling of disposable incomes and the increase in numbers of middle-class households, significant expansion of medical infrastructure, greater penetration of health insurance, a gradual shift in disease profile and adoption of patented products, and finally population growth," says Mr Palash Mitra, partner, McKinsey and Company and co-leader of the pharmaceuticals and medical products practice.
Patented products are likely to see substantial growth momentum as their share of the pie grows from nominal levels at present, to $2 billion on the back of a supportive regulatory environment, and greater interest by MNCs, predicts the report. "For Indian companies the challenge will be to focus on not just ensuring product access and building robust sales and marketing capabilities, but also creating new markets and crafting differentiated business strategies to service these markets.
On the other hand, multinationals need to raise their game in India and accordingly customise their business models and invest in their India operations," Mr Gautam Kumar, director of McKinsey and Company (India) said.
MS-Bebo sign deal
Microsoft will put up its Windows Live instant messaging service on popular social networking site Bebo to enable easier communication. The software major’s deal with Bebo is part of its efforts to become a big player in the Internet services sector. Bebo has 36 million users worldwide. Microsoft will also be offering a new service on Windows Live which will enable Bebo us-ers to sent instant messages to their contacts. There are about 300 million Windows Live users in the world and Microsoft is using this big number to seek partnership with other social networking sites too.
Google still tops search terrain
Google is still the undisputed king of the search terrain, says a new study. According to research firm ComScore, about 55.2 per cent of all sea-rches conducted on the Internet are thr-ough Google. Yahoo is a distant second with 23.5 per cent searches and Microsoft is even further away with 12.5 per cent. They were followed by Ask.com at 4.7 percent and Time War-ner Network (AOL) with 4.4 per cent.
Google’s supremacy was never in doubt but the ComScore study has revealed that it has surged ahead when compared to last year, when it accounted for 46.2 per cent of searches. On the other hand, Yahoo has taken a beating in the search terrain coming down from last year’s 29.8 per cent. ComScore had revised its parameters for the study by including searches conducted from within websites too.
Google’s supremacy was never in doubt but the ComScore study has revealed that it has surged ahead when compared to last year, when it accounted for 46.2 per cent of searches. On the other hand, Yahoo has taken a beating in the search terrain coming down from last year’s 29.8 per cent. ComScore had revised its parameters for the study by including searches conducted from within websites too.
Gail to infuse Rs 475cr in Dabhol
Aug. 22: State-run gas firm GAIL (India) Ltd will infuse an additional Rs 475 crores equity in Dabhol power project to help the beleaguered unit complete the construction of an attached liquefied natural gas terminal. GAIL currently holds 28.33 per cent in Ratnagiri Gas and Power Ltd, the company which took over the Dabhol power plant after bankruptcy of Enron Corp.
After the infusion of additional funds, its equity stake would rise to 32.88 per cent. State-run power firm NTPC, which also holds 28.33 per cent stake in RGPPL, will invest Rs 475 crores, while Maharastra State Electricity Board (MSEB), having 15 per cent stake, would put in Rs 250 crores.
RGPPL needs Rs 1,200 crores to complete the receipt facility and build breakwater. MSEB, the sole purchaser of power from the plant, will see its stake rise to 17.37 per cent, while the equity of financial institutions, who are not investing fresh funds, would fall to 16.83 per cent from 28.33 per cent.
After the infusion of additional funds, its equity stake would rise to 32.88 per cent. State-run power firm NTPC, which also holds 28.33 per cent stake in RGPPL, will invest Rs 475 crores, while Maharastra State Electricity Board (MSEB), having 15 per cent stake, would put in Rs 250 crores.
RGPPL needs Rs 1,200 crores to complete the receipt facility and build breakwater. MSEB, the sole purchaser of power from the plant, will see its stake rise to 17.37 per cent, while the equity of financial institutions, who are not investing fresh funds, would fall to 16.83 per cent from 28.33 per cent.
Sensex up 260, crosses 14,000
Aug. 22: The country’s key stock market index on Wednesday gained 260 points to close above 14,000 level on revival of buying interest among investors, who were reassured by firmness in the Asian and European markets. The 30-share Bombay Stock Exchange, which had dipped 438 points on Tuesday on concerns about political instability, settled at 14,248.66, a rise of 259.55 points or 1.86 per cent.
The broader Nifty of the National Stock Exchange also bounced by 78.25 points or 1.92 per cent to close at 4,153.15. The modest recovery was in line with Asian and European markets. Benchmark indices in London and Paris were higher by up to 1.2 per cent. Hong Kong’s Hang Seng and Singapore’s Strait Times gained 2.8 per cent each. Shanghai Composite gained 0.5 per cent, while Japan’s Nikkei was unchanged.
Analysts, however, cautioned that a stand-off between the Left parties and the UPA government at the Centre over the nuclear deal with the US could act as a dampener going ahead. Domestic institutional investors were believed to have cornered a sizeable chunk of shares at the lower levels. Financial institutions and mutual funds also made heavy sector-specific purchases, particularly in capital goods, metal and FMCG sector, market players said.
Foreign institutional investors including hedge funds, remained net sellers. As per provisional numbers, FIIs pulled out Rs 138 crores on August 21 while DIIs pumped in Rs 826.84 crores on the same day.
The broader Nifty of the National Stock Exchange also bounced by 78.25 points or 1.92 per cent to close at 4,153.15. The modest recovery was in line with Asian and European markets. Benchmark indices in London and Paris were higher by up to 1.2 per cent. Hong Kong’s Hang Seng and Singapore’s Strait Times gained 2.8 per cent each. Shanghai Composite gained 0.5 per cent, while Japan’s Nikkei was unchanged.
Analysts, however, cautioned that a stand-off between the Left parties and the UPA government at the Centre over the nuclear deal with the US could act as a dampener going ahead. Domestic institutional investors were believed to have cornered a sizeable chunk of shares at the lower levels. Financial institutions and mutual funds also made heavy sector-specific purchases, particularly in capital goods, metal and FMCG sector, market players said.
Foreign institutional investors including hedge funds, remained net sellers. As per provisional numbers, FIIs pulled out Rs 138 crores on August 21 while DIIs pumped in Rs 826.84 crores on the same day.
Air India awaits formal merger order
Aug. 22: Air India chairman and managing director (CMD) V. Thulasidas on Wednesday said that the order of the corporate affairs ministry giving the go-ahead for the merger of Air India and Indian is expected very soon and that the "legal process for the merger is now coming to an end".
Speaking to reporters at the civil aviation ministry on Wednesday after a "review meeting", the Air India CMD said, "Once we get a copy of the formal order from the corporate affairs ministry, the legal process will end. We have been given to understand that we will receive the orders any time now."
"We are absolutely ready to start flights of the merged entity. The merged airline will have a strength of 112 aircraft to start with and the employee strength will be 34,000," Mr. Thulasidas said.
Both Air India and Indian have already placed orders from Boeing (68 aircraft) and Airbus (43 aircraft) respectively. Apart from these orders, Air India has already begun the process of evaluating the number of additional aircraft which should be procured in future. "We are working it out and we will forward the figures to the ministry," Mr Thulasidas said.
The Air India CMD said that various committees comprising officials of the two airlines are monitoring the proposed integration in terms of route rationalisation, human resources, operations, information technology, finance, engineering and administration.
Apart from the merged entity, which will be called Air India, there will also be the low cost carrier named Air India Express and an Air India cargo airline as well.
Speaking to reporters at the civil aviation ministry on Wednesday after a "review meeting", the Air India CMD said, "Once we get a copy of the formal order from the corporate affairs ministry, the legal process will end. We have been given to understand that we will receive the orders any time now."
"We are absolutely ready to start flights of the merged entity. The merged airline will have a strength of 112 aircraft to start with and the employee strength will be 34,000," Mr. Thulasidas said.
Both Air India and Indian have already placed orders from Boeing (68 aircraft) and Airbus (43 aircraft) respectively. Apart from these orders, Air India has already begun the process of evaluating the number of additional aircraft which should be procured in future. "We are working it out and we will forward the figures to the ministry," Mr Thulasidas said.
The Air India CMD said that various committees comprising officials of the two airlines are monitoring the proposed integration in terms of route rationalisation, human resources, operations, information technology, finance, engineering and administration.
Apart from the merged entity, which will be called Air India, there will also be the low cost carrier named Air India Express and an Air India cargo airline as well.
Tuesday, August 21, 2007
Board Meetings For August 21, 2007
1.ATLANTA
ATLANTA LIMITED
AGM/Book Closure/Others
2JSWSTEEL
JSW STEEL LIMITED
Acquisition
3. MACMILLAN
MACMILLAN INDIA LIMITED
Acquisition
4. NEPCMICON
NEPC INDIA LTD
Raising of Funds/Others
ATLANTA LIMITED
AGM/Book Closure/Others
2JSWSTEEL
JSW STEEL LIMITED
Acquisition
3. MACMILLAN
MACMILLAN INDIA LIMITED
Acquisition
4. NEPCMICON
NEPC INDIA LTD
Raising of Funds/Others
Spammers strike back
After lying low for a while, spammers are back in action. This time they are using PDF files and electronic greeting cards to infect computers and confound anti-virus programmes. In the last few weeks, security firm Postini blocked about 800 million copies of Storm, a virus pretending to be a greeting card. Those who click the link will reach a site booby trapped with malware. Spam in the PDF mode has also increased since May and now forms about eight per cent of all unsolicited mails. Spammers are also using Excel and Zip files now. “People are more likely to open a PDF file or Excel document, since they are more trusted,” says Tom Gills, a security researcher. Spammers are also using popular online appl-ications like Google news alerts to pop ads on sex toys.
Indian firms go on acquisition spree in UK
Aug. 20: The United Kingdom has emerged as a prime location on India Inc’s global acquisition map with deals worth $1.2 billion taking place in the first six months of this year, a report says. British firms, on the other hand, have also intensified their hunt for businesses in India and have already entered into acquisition deals worth $12.9 billion.
"The UK is set to be the number one acquirer of Indian businesses and also the prime acquisition target for Indian companies this year, and there is still a huge untapped potential in the subcontinent that UK firms are missing out on," a report by global financial adviser Grant Thornton said. The acquisitions made by UK firms here have witnessed a jump of over 41 fold over last year’s deals valuing $310 million, while those entered into by Indian businesses in the UK has risen three-fold, the report said.
"Strong historical ties between the UK and India combined with the rapid growth experienced by the Indian economy had led to some very large deals, although there was still underlying weaknesses in the overall picture," Mr Anuj Chande, International Business Partner and head of Grant Thornton’s South Asia Group said. This year, so far, Indian firms valuing more than $14.5 billion were acquired by overseas buyers through 78 deals. Of this, UK-based Vodafone stole the show with the $10.9-billion acquisition of Essar from Hutchison Telecommunications International.
Barring this deal, the value of UK acquisitions is spread over a total of three deals. In the first six months this year, Indian firms have spent as much as $1.2 billion on UK-based companies against $332 million invested on acquisitions in the US, the report showed.
Over 119 international acquisitions were completed in 2006 by domestic firms, which have already made 63 deals in the first six months of the current year. Of these 63, seven were acquisition in the UK. The lion’s share of India’s acquisition in the UK is of spirits giant UB Group which paid almost one billion dollars for Scotch whisky distiller Whyte & Mackay. This year’s international acquisition patterns have so far favoured raw materials, while the Essar deal in telecom sector led in terms of value.
"The UK is set to be the number one acquirer of Indian businesses and also the prime acquisition target for Indian companies this year, and there is still a huge untapped potential in the subcontinent that UK firms are missing out on," a report by global financial adviser Grant Thornton said. The acquisitions made by UK firms here have witnessed a jump of over 41 fold over last year’s deals valuing $310 million, while those entered into by Indian businesses in the UK has risen three-fold, the report said.
"Strong historical ties between the UK and India combined with the rapid growth experienced by the Indian economy had led to some very large deals, although there was still underlying weaknesses in the overall picture," Mr Anuj Chande, International Business Partner and head of Grant Thornton’s South Asia Group said. This year, so far, Indian firms valuing more than $14.5 billion were acquired by overseas buyers through 78 deals. Of this, UK-based Vodafone stole the show with the $10.9-billion acquisition of Essar from Hutchison Telecommunications International.
Barring this deal, the value of UK acquisitions is spread over a total of three deals. In the first six months this year, Indian firms have spent as much as $1.2 billion on UK-based companies against $332 million invested on acquisitions in the US, the report showed.
Over 119 international acquisitions were completed in 2006 by domestic firms, which have already made 63 deals in the first six months of the current year. Of these 63, seven were acquisition in the UK. The lion’s share of India’s acquisition in the UK is of spirits giant UB Group which paid almost one billion dollars for Scotch whisky distiller Whyte & Mackay. This year’s international acquisition patterns have so far favoured raw materials, while the Essar deal in telecom sector led in terms of value.
India’s BPO exports up 47%
Aug. 20: India’s BPO exports grew 47 per cent during 2006-07 to record revenues of $4.6 billion (Rs 20,890 crore), according to a study conducted by Dataquest. This makes the BPO chunk over 55 per cent of the entire BPO-ITES pie as estimated by Nasscom.
The top 20 companies on Dataquest’s BPO list contributed $3.57 billion (Rs 16,094 crores) nearly three-fourth of the total BPO exports. While Genpact with BPO revenue of Rs 2,220 crores held on to its No. 1 position, there have been major changes in ranking from No. 2 onwards.
Transworks, IBM Daksh, TCS BPO and Cambridge Solutions were the next four BPO firms with revenues of Rs 1,510 crores, Rs 1,260 crores, Rs 1,107 crores and Rs 1,000 crores respectively. The next five slots were taken up by WNS Global Services (Rs 990 crores), Wipro BPO (Rs 935 crores), Convergys India (Rs 890 crores), Firstsource (Rs 809 crore) and HCL BPO (Rs 746 crores).
The top 20 companies on Dataquest’s BPO list contributed $3.57 billion (Rs 16,094 crores) nearly three-fourth of the total BPO exports. While Genpact with BPO revenue of Rs 2,220 crores held on to its No. 1 position, there have been major changes in ranking from No. 2 onwards.
Transworks, IBM Daksh, TCS BPO and Cambridge Solutions were the next four BPO firms with revenues of Rs 1,510 crores, Rs 1,260 crores, Rs 1,107 crores and Rs 1,000 crores respectively. The next five slots were taken up by WNS Global Services (Rs 990 crores), Wipro BPO (Rs 935 crores), Convergys India (Rs 890 crores), Firstsource (Rs 809 crore) and HCL BPO (Rs 746 crores).
Google offers local search
Hyderabad, Aug. 20: Google India on Monday launched an innovation platform, Google India Labs, and two new products — Google Local Search and Google Local Business Centre — that will cater mainly to the Indian customers "Local Search and Local Business Centre will provide our users with better local business results by increasing the corpus and depth of business listings, and benefit local businesses by ensuring visibility on the Internet for free," said Google India head of products Vinay Goel.
Google Local Search is a tool for Indian users who are looking for locally relevant information on the web. With the launch of this product users will now be able to search for information on local businesses like restaurants, shops, and hotels by doing a search on http://local.google.co.in.
Google Local Business Centre is available at www.google.co.in/local/add and will allow any business to add its information to Google Local for free. When users search on Google Local Search, the listed business information will be displayed. Google Labs is a technology playground for products that are in the process of development and require market feedback to improve.
Launched under the sub-domain labs.google.co.in, this launch makes India one of the few countries to have a country-focused labs programme. Globally, Google has seven labs across US, China, Italy, France, Germany, the Netherlands, and Spain. India labs will serve as a platform to showcase innovations that are particularly relevant to the Indian market and will also allow users to take a peek into Google’s future offerings.
Google Local Search is a tool for Indian users who are looking for locally relevant information on the web. With the launch of this product users will now be able to search for information on local businesses like restaurants, shops, and hotels by doing a search on http://local.google.co.in.
Google Local Business Centre is available at www.google.co.in/local/add and will allow any business to add its information to Google Local for free. When users search on Google Local Search, the listed business information will be displayed. Google Labs is a technology playground for products that are in the process of development and require market feedback to improve.
Launched under the sub-domain labs.google.co.in, this launch makes India one of the few countries to have a country-focused labs programme. Globally, Google has seven labs across US, China, Italy, France, Germany, the Netherlands, and Spain. India labs will serve as a platform to showcase innovations that are particularly relevant to the Indian market and will also allow users to take a peek into Google’s future offerings.
Home loan insurance to grow 100%
Indians to hedge loan risk
Aug. 20: The credit protection insurance sector in India is expected to grow at over 100 per cent per annum. A survey indicates that about 73 per cent of the Indian population currently prefers to go for the home loan protection insurance. SBI Life Insurance managing director and CEO U.S. Roy said, "In the financial year 2006-07, the home loan protection insurance alone contributed to more than Rs 225 crores of new business premium income to SBI Life Insurance."
He said, "As awareness on the availability of such insurance products covering all sorts of loan risks increase in our country, I foresee the credit insurance sector to grow at over 100 per cent annually in India. To encash the boom witnessed in this sector, we have planned to expand the current network of our agents from 25,000 to 50,000 by the end of 2007."
Mr Roy said, "SBI Life’s recent survey conducted on credit life reveals that around 75 per cent of the Indian households declared that they would be unable to easily maintain their current lifestyle and sustain beyond six months in the event of a disability following an accident, an illness or unemployment of the principal bread-earner."
SBI Life Insurance country head Mr Rajiv Kumar Gupta said, "The survey also reveals that the 73 per cent of the Indian population that would think of home loans would also go for the home loan protection insurance. About 98 per cent of the Indians in the survey acknowledged the need for such credit insurance products." Credit insurance products cover the payment of monthly instalments that the borrower is justifiably unable to pay in the event of unforeseen circumstances
Aug. 20: The credit protection insurance sector in India is expected to grow at over 100 per cent per annum. A survey indicates that about 73 per cent of the Indian population currently prefers to go for the home loan protection insurance. SBI Life Insurance managing director and CEO U.S. Roy said, "In the financial year 2006-07, the home loan protection insurance alone contributed to more than Rs 225 crores of new business premium income to SBI Life Insurance."
He said, "As awareness on the availability of such insurance products covering all sorts of loan risks increase in our country, I foresee the credit insurance sector to grow at over 100 per cent annually in India. To encash the boom witnessed in this sector, we have planned to expand the current network of our agents from 25,000 to 50,000 by the end of 2007."
Mr Roy said, "SBI Life’s recent survey conducted on credit life reveals that around 75 per cent of the Indian households declared that they would be unable to easily maintain their current lifestyle and sustain beyond six months in the event of a disability following an accident, an illness or unemployment of the principal bread-earner."
SBI Life Insurance country head Mr Rajiv Kumar Gupta said, "The survey also reveals that the 73 per cent of the Indian population that would think of home loans would also go for the home loan protection insurance. About 98 per cent of the Indians in the survey acknowledged the need for such credit insurance products." Credit insurance products cover the payment of monthly instalments that the borrower is justifiably unable to pay in the event of unforeseen circumstances
Cipla under MRTPC scanner for overpricing
Aug. 20: MRTPC has directed its investigative arm to probe the alleged overpricing of HIV drug ‘Viraday’ by Cipla. Taking suo motu cognisance over advertisements brought out in various newspapers by an American NGO, the Aids Healthcare Foundation, the Commission has directed the Director General of Investigation and Registration (DGIR) to submit a report within 60 days.
The NGO alleged that Cipla is exporting its HIV/AIDS drug Viraday to African countries at just Rs 21,200 per patient a year while the same for Indian patients cost over Rs 54,000. According to sources in MRTPC, the anti-monopoly watchdog felt that the over 150 per cent price difference between Africa and India was unjustifiable and suspected it to be an unfair trade practice. Cipla Joint Managing Director Aman Lulla said that he has not received the notice as yet, but maintained that the company had not sold even a single pack of Viraday in Africa.
"It is shocking that AIDS Healthcare Foundation is spending lakhs of rupees on advertisements in various newspapers distorting facts and making baseless allegations," Cipla had said in a statement on August 9. Questioning the agenda of the NGO, Cipla said it sold other anti-AIDS drugs to NACO in India at the same prices as in Africa.
The NGO alleged that Cipla is exporting its HIV/AIDS drug Viraday to African countries at just Rs 21,200 per patient a year while the same for Indian patients cost over Rs 54,000. According to sources in MRTPC, the anti-monopoly watchdog felt that the over 150 per cent price difference between Africa and India was unjustifiable and suspected it to be an unfair trade practice. Cipla Joint Managing Director Aman Lulla said that he has not received the notice as yet, but maintained that the company had not sold even a single pack of Viraday in Africa.
"It is shocking that AIDS Healthcare Foundation is spending lakhs of rupees on advertisements in various newspapers distorting facts and making baseless allegations," Cipla had said in a statement on August 9. Questioning the agenda of the NGO, Cipla said it sold other anti-AIDS drugs to NACO in India at the same prices as in Africa.
Nasdaq to offload its LSE stake
London, Aug. 20: The Nasdaq Stock Market, facing a challenge to its bid for a Nordic exchange, said on Monday it will offload its 31 per cent stake in LSE. Nasdaq, which built up its ownership in LSE during a takeover attempt earlier this year, said the stock price does not reflect the value of its stake in LSE. The LSE fended off Nasdaq’s $5.3 billion offer in March and has since become a buyer itself, picking up Borsa Italiana SpA for 1.63 billion euros.
TCS signs deal with AGL
Aug. 20: Tata Consultancy Services (TCS) has signed a five-year information technology services contract with Australia’s largest retailer of gas and electricity, AGL Energy Limited (AGL). The deal is worth $16 million. Under the agreement, TCS will manage and support all SAP applications for AGL. This includes AGL’s existing SAP ERP system and the SAP Industry Solution for the utilities which is currently being implemented.
The decision by AGL to outsource all SAP applications, maintenance and support is expected to reduce the implementation time of the new utilities module and accelerate the return on investment. AGL managing director Mr Paul Anthony said: "The decision to outsource our applications management and upgrade our systems is in line with AGL’s strategy to streamline business operations and offer a competitive service. TCS was selected because of its SAP skills, utilities domain knowledge, and proven track record in technology innovations and mature methodologies."
TCS Asia Pacific executive vice-president and regional director Ms Girija Pande said, "This engagement underscores our capabilities in Asia Pacific energy and the utilities markets. The deal is supported by our global network delivery model, the global alliance network and our large regional presence."
TCS vice-president (energy and utilities practice) Mr Ajoy Mukherjee said, "Our full service capability and the domain expertise coupled with with our delivery methodology will enable us to deliver sustained value and the operational excellence to AGL.
The decision by AGL to outsource all SAP applications, maintenance and support is expected to reduce the implementation time of the new utilities module and accelerate the return on investment. AGL managing director Mr Paul Anthony said: "The decision to outsource our applications management and upgrade our systems is in line with AGL’s strategy to streamline business operations and offer a competitive service. TCS was selected because of its SAP skills, utilities domain knowledge, and proven track record in technology innovations and mature methodologies."
TCS Asia Pacific executive vice-president and regional director Ms Girija Pande said, "This engagement underscores our capabilities in Asia Pacific energy and the utilities markets. The deal is supported by our global network delivery model, the global alliance network and our large regional presence."
TCS vice-president (energy and utilities practice) Mr Ajoy Mukherjee said, "Our full service capability and the domain expertise coupled with with our delivery methodology will enable us to deliver sustained value and the operational excellence to AGL.
Sensex lags behind Asian counterparts, gains 286 pts
Aug. 20: The continuing political uncertainty cost the Sensex at least 100 points so that it could not compete with the buoyancy of its Asian counterparts. Call it the Red effect, but investors were booking profits at every rise, unwilling to hold on for fear of how the political situation would turn out.
The Sensex scaled over 400 points soon after opening trade and see sawed between 300-400 points, but towards the last hour of trade it shed those gains and closed up just 286.03 points at 14,427.55 still below the 15,000 mark. Stockbroking consultant Mr S.P. Tulsian said: "People actually don’t realise that we did not fall as much as the Asian markets fell on Friday. We were down by 500 points on Friday but recovered about 400 and closed down to lose 217 points. Since we did not fall that heavily Monday’s recovery was about 200 points. Had we fallen more on Friday we would have seen a bounce back of 500 points." However he added, "There is some concern on the political front and this has taken away at least 150 points. So these are the two main reasons for Monday’s bounce back not being as spectacular as that of the Asian markets."
Among the Asian markets, Japan gained at 458.80 points, its highest in three months. The injection of funds with the US Fed cutting interest rates marginally, gave the much needed boost to the markets. The Hang Seng gained a handsome 1,208.5 points while the Straits Times was up 191. 67 points and the Shanghai index 248.28 points. No analysts were willing to hazard a guess as to what tomorrow will bring. Mr Tulsian said, "It all depends on how the US markets play out on Monday. There is no point in taking a call."
The Sensex scaled over 400 points soon after opening trade and see sawed between 300-400 points, but towards the last hour of trade it shed those gains and closed up just 286.03 points at 14,427.55 still below the 15,000 mark. Stockbroking consultant Mr S.P. Tulsian said: "People actually don’t realise that we did not fall as much as the Asian markets fell on Friday. We were down by 500 points on Friday but recovered about 400 and closed down to lose 217 points. Since we did not fall that heavily Monday’s recovery was about 200 points. Had we fallen more on Friday we would have seen a bounce back of 500 points." However he added, "There is some concern on the political front and this has taken away at least 150 points. So these are the two main reasons for Monday’s bounce back not being as spectacular as that of the Asian markets."
Among the Asian markets, Japan gained at 458.80 points, its highest in three months. The injection of funds with the US Fed cutting interest rates marginally, gave the much needed boost to the markets. The Hang Seng gained a handsome 1,208.5 points while the Straits Times was up 191. 67 points and the Shanghai index 248.28 points. No analysts were willing to hazard a guess as to what tomorrow will bring. Mr Tulsian said, "It all depends on how the US markets play out on Monday. There is no point in taking a call."
Monday, August 20, 2007
Board Meetings For August 20, 2007
1. BIRLAPOWER BIRLA POWER SOLUTIONS LIMITED Raising of Funds/Others
2.CINEVISTA
CINEVISTAAS LIMITED
Split/Others
3. OUDHSUG
OUDH SUGAR MILLS LTD
Raising of Funds/Others
4. PAGEIND
PAGE INDUSTRIES LIMITED
Interim Dividend/Record Date
5. SUPERFORGE
SUPER FORGINGS & STEELS LTD
Financial Results
6. TALBROAUTO
TALBROS AUTOMOTIVE COMPONETS LIMITED
Accounts/Dividend/Others
7. UNIPLY
UNIPLY INDUSTRIES LIMITED
Audited Financial Results
8. VENUSREM
VENUS REMEDIES LIMITED
Annual Accounts and Dividend
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