Sensex posts biggest ever point rise in a single day; soars 654 points
The market soared to record closing with high turnover. It opened with a bang and kept on advancing during the course of the trading session as buying continued for index pivotals. Short covering might also have propelled the market higher to some extent. The total turnover on BSE crossed Rs 7000 crore mark. While the BSE Sensex settled above 16,300, the S&P CNX Nifty closed above 4,700
Shares from across sectors and market capitalisation participated in the rally which was triggered after the US Federal Reserve announced a higher than expected 50 basis points cut in fed funds rate to 4.75% from 5.25% on Tuesday, 18 September 2007, easing concerns about housing slump driving the world's largest economy into recession. Prior to this, it had hiked rates for 17 consecutive times in the span of four years.
Asian markets, which opened before Indian market, rallied today, 19 September 2007, after the Fed decision. All European markets which opened after Indian market were also trading with gains.
The 30-shares BSE Sensex surged 653.63 points or 4.17% at 16,322.75. This is the biggest single-day point gain in Sensex. It opened with a sharp 271.67 point upward gap at 15,940.79 and advanced further to hit an all-time high of 16,335.30. Its previous all-time high was 15,868.85 hit on 24 July 2007.
Sensex surged 2,333.64 points or 16.68% to 16,322.75 from a recent low of 13,989.11 on 21 August 2007, in just 21 trading sessions.
The S&P CNX Nifty up 186.15 points or 4.09% at 4,732.35. It also struck an time high of 4,739. The Nifty September 2007 futures settled at 4,747, a premium of 8 points as compared to spot closing
The BSE Mid-Cap index rose 1.88% to 7,116.61 after hitting an all time high of 7,120.91. The BSE Small-Cap index hit an all time high of 8,943.23. It settled 1.03% higher to 8,871.00. But both these indices underperformed the Sensex
The total turnover on BSE crossed Rs 7,000 crore mark. It amounted to Rs 7,405 crore as compared to Rs 5,618.94 crore on Tuesday, 18 September 2007.
The NSE F&O turnover was Rs 68,643.65 crore as compared to Rs 45,069.25 crore on Tuesday, 18 September 2007.
All the sectoral indices on BSE posted gains. Interest rate sensitive sectors like banking, real estate, auto dominated gainers.
BSE Bankex (up 4.84% at 8,691.45), BSE Realty index (up 5.77% to 8,464.54), BSE Oil and Gas Index (up 5% at 8,924.11), outperformed the Sensex.
BSE Auto Index (up 3.49% at 5,094.31), BSE PSU index (up 3.48% to 7,642.77), BSE FMCG Index (up 2.05% at 2,140.91), BSE Metal Index (up 3.82% at 12,546.34), BSE Capital Goods Index (up 1.80% at 14,112.99), The BSE Consumer Durables index (up 1.25% to 4,743.75), BSE Health Care Index (up 1.17% at 3,704.27), BSE IT Index (up 2.41% at 4,491.21), and BSE TecK index (up 3.42% to 3,619.93) were underperformers
All the 30-members from Sensex pack advanced.
India’s largest listed cellular services provider by sales Bharti Airtel jumped 6.93% to Rs 890.20 on 2.91 lakh shares after its Sri Lankan unit signed a $150 million contract with China's Huawei Technologies Co to build and manage mobile infrastructure in the island nation over three years. It was the top gainer from Sensex pack.
Bank and financial shares rallied on the reckoning that the Fed move could put pressure on RBI to loosen its monetary policy. India’s top private sector mortgage lender in terms of revenue Housing Development Corporation (HDFC) surged 6.83% to Rs 2330. The stock eased form its all time high of Rs 2415 hit earlier during the day
HDFC Bank, the country’s second largest private sector bank in terms of net profit soared 6.83% to Rs 1314
State Bank of India, the country’s largest banking entity by net profit jumped 4.52% to Rs 1770. It topped the list of advance taxpayers, after it paid reportedly paid Rs 1,050 crore in the June-September quarter, which is nearly 50% more than the tax paid during the corresponding period last year.
India’s second largest bank by net profit, ICICI Bank jumped 4.44% to Rs 966.10. As per reports it paid Rs 450 crore advance tax for the June-September 2007 period. The bank had paid the same amount for the corresponding period last year.
India’s largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) surged 5.99% to Rs 2181.70 on 10.59 lakh shares. It struck an all time high of Rs 2185. As per reports its subsidiary - Reliance Logistics (RLL) is planning to set up logistics parks within all the upcoming special economic zones (SEZs). The Reliance logistics parks will cater to the entire range of logistic requirements of the SEZs. RIL has reportedly paid Rs 650 crore in the June-September 2007 quarter. The tax outgo during the June-September period last year was about Rs 450 crore.
Oil and Natural Gas Corporation, the country’s largest oil exploration company by revenue surged 5.89% to Rs 901 after its Chairman R.S. Sharma said the company may consider a bonus issue and a share split in the future. He did not give a time frame for bonus issue and stock-split.
Infosys Technologies, the nation’s second largest software services exporter rose 3.14% to Rs 1856.55 on rumors the firm is interested in acquiring UK-based Sage Group. Infosys has denied the reports further clarifying that it also isn't negotiating with Cap Gemini SA about buying any part of the company.
Maruti Suzuki India, the country’s top car-maker by sales vaulted 5.11% to Rs 920.50 on reports that company will set up an auto component park with Japan's Futuba Industrial Company. Maruti will hold a 49% stake in the joint venture. This will be Futuba’s first project outside Japan
India’s second largest bike maker Bajaj Auto rose 4.55% to Rs 2510. It has reportedly paid Rs 120 crore for the second quarter of the current fiscal. The company has paid Rs 102 crore as the first installment during the quarter ending June 2007.
India’s second largest cellular services provider by sales Reliance Comunications, rose 5.11% to Rs 564.75 after its subsidiary Flag Telecom reportedly signed a five-year agreement with UK-based Vanco to increase its presence across 81 countries worldwide.
Sugar shares were star of the day’s trading session as they surged on frenzied buying after Agriculture Minister Sharad Pawar said the government plans to give more fiscal incentives to sugar mills. All of them saw a phenomenal spurt in volumes.
Dwarikesh Sugar (up 20% to Rs 66.60), Sakthi Sugar (up 20% to Rs 92.70), Triveni Engineering (up 22.68% to Rs 135.50), Balrampur Chini Mills (up 24.31% to Rs 83.60), Shree Renuka Sugars (up 24.68% to Rs 686.10), and Bajaj Hindustan (up 21.76% to Rs 178.50) surged. The government will detail the new financial incentives in 10 days, Pawar said today.
As per reports, sugar mills may be allowed to produce ethanol directly from cane juice, instead of molasses, to lower dependence on sugar prices. The South Asian nations may require oil refiners to double the ethanol level in gasoline to 10% from October 2008.
DLF was the top traded counter on BSE with total turnover of Rs 255.19 crore followed by Reliance Industries (Rs 226.36 crore), ICICI Bank (Rs 226.36 crore), Reliance Capital (Rs 134.16 crore), and Shree Renuka Sugars (Rs 127.42 crore).
Shares from real estate pack surged. Indiabulls Real Estate (up 6.60% to Rs 523.60), Unitech (up 3.91% to Rs 292.65), HDIL (up 2.92% to Rs 644) and Parsvnath Developers (up 5.75% to Rs 338.90) surged.
DLF galloped 8.91% to Rs 714.25 on reports that the company is getting into the retail of luxury brands and is in talks with some well-known retail chains, including Georgio Armani, Versace and Dolce Gabbana. DLF is in talks with 10-12 brands. Also another set of reports stated that DLF will tie up with a foreign major Carrefour for the supermarket business at a later stage.
Nagarjuna Construction Company surged 10.30% to Rs 240.70 after the company in consortium with POSCO E & C of South Korea bagged an engineering, procurement and construction contract valued at Rs 1558 crore from Steel Authority of India (Sail) for IISCO steel plant at Burnpur, West Bengal.
Jubilant Organosys surged 4.70% to Rs 305 after it signed a five-year multi million dollar contract with Switzerland based-Syngenta to supply chemical compounds used in manufacturing of medicines and agricultural products. The new contracts will start from early 2008.
Engineers India (EIL) jumped 6.82% to Rs 621.50. It soared 20% to Rs 582 yesterday 18 September on market talks that it is expected to bag a contract related to oil exploration. However the company denied such rumors.
The first batch of advance tax figures hint improved corporate earnings for the second quarter ended September 2007. Advance taxes are paid in four installments — in June, September, December and March. The June and September installments usually constitute about 15% and 25% respectively of the total advance tax payable in a fiscal.
European markets which opened after Indian market were trading with gains. Key benchmark indices from United Kingdom (up 2.20% to 6,621.70), Germany (up 2.10% to 7,734.35), and France (up 2.43% to 5,683.95), advanced.
Asian markets surged today, 19 September 2007 tracking overnight gains on Wall Street. Hong Kong's Hang Seng (up 3.98% at 25,554.64), Japan's Nikkei (up 3.67% at 16,381.54), Singapore's Straits Times (up 3.35% at 3,594.36), South Korea's Seoul Composite (up 3.48% at 1,902.65) and Taiwan's Taiwan Weighted (up 0.30% at 8,926.50) surged.
Wall Street shares rallied yesterday, 18 September 2007 after the Federal Reserve cut its benchmark interest rate by a larger-than-expected 0.5%. The Dow Jones industrial average soared 335.97 points, or 2.51%, to 13,739.39. This was its biggest surge since 2 April 2003. The blue-chip index is now only about 1.9% below its record close of 14,000.41, reached in mid-July. The Standard & Poor's 500 index rose 43.13 points, or 2.92%, to 1,519.78. The Nasdaq Composite index gained 70 points, or 2.71%, to 2,651.66.
Crude oil climbed above $82 a barrel on Wednesday, 19 September 2007 near a record reached a day earlier after the US Federal Reserve slashed interest rates to calm worries over economic growth ahead of peak winter fuel demand. US light crude for October delivery rose 82 cents to $82.33 a barrel, after hitting a record of $82.38 yesterday, 18 September 2007. London Brent crude gained 72 cents to trade at $78.31 a barrel.
Thursday, September 20, 2007
DLF Assets to raise $1 bn from overseas listing
DLF Assets is expected to file for REIT (real estate investment trust) IPO in Singapore next month, the company sources said. The company was looking to raise about one billion dollars from the public issue, they added. DLF Assets, which has been set up for holding completed commercial assets, is owned by DLF Ltd's promoters. It is independent of DLF Ltd. DAPL was set up for bidding along with other companies in potential assets sales by DLF Ltd. Singh, the chairman of DLF Ltd, had announced in May during the roadshows for DLF's IPO: "Eventually, DLF Assets will be a formidable listed company". The planned REIT by DLF Assets comes close on the heels of IPO by Ascendas India Trust, a business trust with similar characteristics to a REIT, in Singapore stock market. DLF Assets Pvt Ltd (DAPL) had earlier received an investment of 400 million dollars and 200 million dollars from global investing firm D E Shaw and a fund sponsored by investment banking firm Lehman Brothers respectively. The sale of commercial assets to DLF Assets contributed Rs 2,207 crore to DLF Ltd's revenue and Rs 1,564 crore to its profit before tax in 2006-07, making up around 55 per cent of DLF Ltd's revenue and 61 per cent of its pre-tax profit.
'India will become global leader in software services'
The Indian software industry may be facing hard times, but Infosys is bullish about future prospects. Infosys CEO and MD S Gopalakrishnan (Kris) says India will emerge global leader in the software services industry. Mr Gopalakrishnan feels the threat of low-cost locations in other parts of the world is being played up. He says, “India will have the largest location for software services companies. India already has the highest number of software professionals in the world. India will be the primary or largest location for all these companies and the leadership will be here,” Mr Gopalakrishnan (Kris) said.
CBI takes CRB case to apex court
Investigating agency CBI has moved the Supreme Court against the Delhi High Court (HC) order that stayed criminal proceedings against CRB Capital Markets, which had allegedly duped 1.35 lakh small investors and many financial institutions of Rs 1,200 crores in the 1990s. A bench headed by Justice Ashok Bhan asked the agency to file an affidavit, stating why it had delayed filing the appeal against the HC order.
CBI submitted that the High Court did not have the jurisdiction to stay criminal chargesheets filed under the Prevention of Corruption Act 1988 pending before the special Judge, Mumbai. The agency contended that the High Court had not only stayed the criminal proceedings, but had also approved the revival scheme of CRB Capital Markets in January last year.
CBI on the basis of complaints had registered various cases against CRB chairman Chain Roop Bhansali, SBI officials and others for duping the Bank of Baroda and State Bank of India of Rs 3.43 crore and Rs 57 crore, respectively, in 1997.According to the petitioner, CRB had issued warrants for huge amounts from these banks favouring its own associates who were ineligible for such fixed deposit repayment and brokerage warrants as they neither mobilised funds for the company nor maintained deposits with it. Such warrants were later encashed from SBI and BoB branches across the country, thus causing undue loss the banks, it added.
CBI submitted that the High Court did not have the jurisdiction to stay criminal chargesheets filed under the Prevention of Corruption Act 1988 pending before the special Judge, Mumbai. The agency contended that the High Court had not only stayed the criminal proceedings, but had also approved the revival scheme of CRB Capital Markets in January last year.
CBI on the basis of complaints had registered various cases against CRB chairman Chain Roop Bhansali, SBI officials and others for duping the Bank of Baroda and State Bank of India of Rs 3.43 crore and Rs 57 crore, respectively, in 1997.According to the petitioner, CRB had issued warrants for huge amounts from these banks favouring its own associates who were ineligible for such fixed deposit repayment and brokerage warrants as they neither mobilised funds for the company nor maintained deposits with it. Such warrants were later encashed from SBI and BoB branches across the country, thus causing undue loss the banks, it added.
Virtually sound
IBM student researchers are working on technology which will help blind people enjoy online virtual worlds, the new fad among Net users. The team in Ireland is attempting to do this by creating an impeccable audio replica of virtual worlds which will give blind people a sense of space. They are using 3D sound for this.Researchers used the Active Worlds online environment for their design. Blind people entering it will hear even the rustle of leaves. The project will now be taken up by IBM’s Human Ability and Accessibility Centre in Texas to be developed further.
TVS plans fund for family biz
The TVS group is planning to set up an India-focused equity fund that will stress on entrepreneur development and will invest in mid-cap family-owned businesses. Founded by Mr Gopal Srinivasan of the TVS group, TVS Capital Funds Ltd, an asset management company, will start its activities with an office in Chennai.
Mr Srinivasan, chairman of the company, said: "Indian entrepreneurs need a strategic growth partner that understands the nuances of building businesses and can offer professional services along the expansion path. TVS Capital Funds will strive to be a strategic partner to entrepreneurs and fund their development." He said the AMC would focus on the family-owned businesses, especially in Tier 2 and 3 cities that are looking for a strategic partner to expand their businesses.
TVS Capital Funds has hired Mr Suresh Raju as general partner from Deutsche Bank’s technology investment banking practice in Boston to help launch the activities of this new firm. He said the TVS group would be the anchor of the fund and group would raise additional fund from the market. He however declined to mention the size of the fund. Mr Raju said the company would leverage the expertise the group had in different industry verticals. In addition, the company would look at the new emerging sectors for investment.
Mr Srinivasan, chairman of the company, said: "Indian entrepreneurs need a strategic growth partner that understands the nuances of building businesses and can offer professional services along the expansion path. TVS Capital Funds will strive to be a strategic partner to entrepreneurs and fund their development." He said the AMC would focus on the family-owned businesses, especially in Tier 2 and 3 cities that are looking for a strategic partner to expand their businesses.
TVS Capital Funds has hired Mr Suresh Raju as general partner from Deutsche Bank’s technology investment banking practice in Boston to help launch the activities of this new firm. He said the TVS group would be the anchor of the fund and group would raise additional fund from the market. He however declined to mention the size of the fund. Mr Raju said the company would leverage the expertise the group had in different industry verticals. In addition, the company would look at the new emerging sectors for investment.
ONGC for hike in gas price
ONGC is seeking a 27 per cent hike in the price of government-regulated natural gas to fund its exploration and production activities. ONGC chairman and managing director R.S. Sharma said that the company wants the administered price mechanism gas price to be raised to $2.5 per mbtu from the present $1.97 per mbtu (excluding royalty). Mr Sharma said that as the Reliance issue has been resolved, ONGC hopes the government will soon take a decision on its claim. The tariff commission had in May this year recommended a base minimum producer price of $2.21 per mbtu. The increase if allowed by the government will add Rs 2,000 crores to the revenues of ONGC.
The price of gas in India is capped below international prices to provide cheap fertiliser and power to the common man. Mr Sharma said the company was also seeking market price for incremental gas production from fields given to ONGC on nomination basis. "The policy for areas awarded since 2000 under the New Exploration Licensing Policy (NELP) is clear. Oil and gas from NELP blocks are guaranteed market price. But even in nomination fields we are making fresh investments (at current prices) to raise production or arrest the decline that sets in with age. For incremental production, we should be given market price," he said.
Mr Sharma said that ONGC may consider a bonus issue and a share split in the future. "There is no decision to immediately do a share split or a bonus issue. But we are sensitive to the concerns of the small investors that they may be able to buy ONGC share at current prices (so) in due course we will resort (to share split and/or bonus issue); but when it will happen I cannot say," he said.
The price of gas in India is capped below international prices to provide cheap fertiliser and power to the common man. Mr Sharma said the company was also seeking market price for incremental gas production from fields given to ONGC on nomination basis. "The policy for areas awarded since 2000 under the New Exploration Licensing Policy (NELP) is clear. Oil and gas from NELP blocks are guaranteed market price. But even in nomination fields we are making fresh investments (at current prices) to raise production or arrest the decline that sets in with age. For incremental production, we should be given market price," he said.
Mr Sharma said that ONGC may consider a bonus issue and a share split in the future. "There is no decision to immediately do a share split or a bonus issue. But we are sensitive to the concerns of the small investors that they may be able to buy ONGC share at current prices (so) in due course we will resort (to share split and/or bonus issue); but when it will happen I cannot say," he said.
Hutch to become Vodafone on Friday
India’s second largest mobile company Hutch will be called Vodafone from Friday. The UK based company Vodafone had recently acquired a majority stake in Hutch from Hong Kong-based Hutchison Telecommunication International Ltd and the company was formally renamed Vodafone Essar in July 2007.
"We’ve had a great innings as Hutch in India and today marks a new beginning for us. Not as a departure from the fundamentals that created Hutch, but an acceleration into the future with Vodafone’s global expertise," said managing director, Vodafone-Essar Asim Ghosh, The popular brand, Hutch, will be transitioned to Vodafone across India. The brand change over the next few weeks will be unveiled nationally through a high profile media campaign.
"This transition is probably the largest brand change ever undertaken in this country and arguably as big as any in the world. It is even larger than our own previous brand transitions as it touches over 35 million customers, across 4,00,000 shops and thousands of our own and our business associates’ empl-oyees," said Mr Harit Nagpal, marketing and new business director, Vodafone Essar.
Vodafone has operations in 25 countries across five continents and 40 partner networks with over 200 million customers worldwide. Vodafone has partnered with the Essar group as its principal joint venture partner for the Indian market. The Essar group is one of India ’s largest corporate houses.
"We’ve had a great innings as Hutch in India and today marks a new beginning for us. Not as a departure from the fundamentals that created Hutch, but an acceleration into the future with Vodafone’s global expertise," said managing director, Vodafone-Essar Asim Ghosh, The popular brand, Hutch, will be transitioned to Vodafone across India. The brand change over the next few weeks will be unveiled nationally through a high profile media campaign.
"This transition is probably the largest brand change ever undertaken in this country and arguably as big as any in the world. It is even larger than our own previous brand transitions as it touches over 35 million customers, across 4,00,000 shops and thousands of our own and our business associates’ empl-oyees," said Mr Harit Nagpal, marketing and new business director, Vodafone Essar.
Vodafone has operations in 25 countries across five continents and 40 partner networks with over 200 million customers worldwide. Vodafone has partnered with the Essar group as its principal joint venture partner for the Indian market. The Essar group is one of India ’s largest corporate houses.
Wednesday, September 19, 2007
Sensex settles above 15,600
The market surged in the second half of the trading session tracking recovery in European markets which started after Indian market. The market was range-bound in early afternoon trade. Asian markets were weak. With today’s gains, the market came out of its two-day losing streak.
US stock futures pointed slightly higher opening today, 18 September 2007, ahead of the two main events viz. interest-rate decision by the US Federal Reserve and third quarter earnings from investment bank Lehman Brothers post crisis in the subprime mortgage market and the credit crunch which was triggered last month.
The BSE 30-share Sensex advanced up 164.69 points or 1.06% at 15,669.12. It opened higher at 15,547.07 but later slipped to a low of 15,468.80 briefly. Sensex hit a high of 15,691.88 in late trade. It oscillated in a range of 223.08 points for the day.
The Sensex is 199.73 points away from its all time high of 15,868.85 hit on 24 July 2007.
The S&P CNX Nifty rose 51.55 points or 1.15% at 4,546.20. The Nifty September 2007 futures settled at 4542, a discount of 4.20 points as compared to spot closing
The market breadth, indicating overall health of the market was strong on BSE, with 1794 shares advancing as compared to 958 that declined, while 55 remained unchanged.
The BSE Mid-Cap index rose 1.01% to 6,985.03 underperforming the Sensex while the BSE Small-Cap Index gained 1.63% to 8,780.89 outperforming the Sensex.
The total turnover on BSE amounted to Rs 5585 crore as compared to Rs 4688 crore on Monday, 17 September 2007
The NSE F&O turnover was Rs 45069.25 crore as compared to Rs 35768.53 crore on Monday, 17 September 2007
Among the 30-member Sensex pack, 21 gained while the rest slipped
Banking shares surged on renewed buying. India’s largest private sector bank in terms of net profit ICICI Bank advanced 3.04% to Rs 921.05 on 6.80 lakh shares. It was the top gainer from Sensex pack.
Other banking shares - State Bank of India (up 2.70% to Rs 1691), Bank of India (up 2.48% to Rs 249.80), Bank of Baroda (up 4.15% to Rs 295), Vijaya Bank (up 3.38% to Rs 61.10) and Andhra Bank (up 2.81% to Rs 93.30), also edged higher.
India’s largest listed cellular services provider by sales, Bharti Airtel advanced 2.34% to Rs 832.50. The stock gained after foreign brokerage house Citigroup recommended buy rating on the stock with a 12-month target price of Rs 1050.
India’s largest private sector power utility company in terms of sales, Reliance Energy (REL) hit all time high of Rs 933 in intra-day trade. It settled 1.97% higher at Rs 925.70. Yesterday, 17 September 2007 the stock gained 2.71% to Rs 906.60. As per recent reports, Supreme Court has allowed the company to bid for Rs 2,600 crore Mumbai sea link project.
ONGC (up 1.48% to Rs 848.10) and Mahindra & Mahindra (up 1.55% to Rs 709), were the other gainers from Sensex pack.
Bhel, the country’s largest power equipment maker in terms of sales rose 0.19% to Rs 1901, off its day’s high of Rs 1930. Bhel is reportedly looking at mergers and acquisition to fuel inorganic growth. Reports also suggest that the company is targeting a turnover of Rs 45,000 crore by 2012.
However pharma and software shares were subdued. Cipla, the country’s third largest pharma company in terms of net sales, slipped 2.04% to Rs 168.45 on 7.16 lakh shares. It was the top loser from Sensex pack.
India’s second largest pharma company in terms of net sales, Dr Reddy’s slipped 0.20% to Rs 641.
IT pivotals Wipro (down 1.20% to Rs 443.50), Satyam Computers (up 0.17% to Rs 421.50), and Infosys Technologies (down 0.03% to Rs 1805) edged lower.
India’s largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) recovered sharply from day’s low of Rs 2007. It settled 1.21% higher at Rs 2053 on 8.65 lakh shares. As per recent reports, RIL is foraying in shipbuilding and dredging business with two separate companies. It plans to invest around $1 billion each in two companies and has begun talks with international majors for a strategic tie-up for the dredging business
Reliance Capital was the top traded counter on BSE with total turnover of Rs 223.96 crore followed by Reliance Industries (Rs 176.09 crore), Reliance Industrial Infrastructure (Rs 129.33 crore), Reliance Energy (Rs 128.83 crore) and Indowind Energy (Rs 120.22 crore).
Among side counters, Engineers India (up 20% to Rs 581.80), Zandu Pharmaceuticals (up 20% to Rs 4341.65) and Kew Industries (up 19.98% to Rs 34.85) surged
Linc Pen & Plastics (down 9.64% to Rs 45), Jindal Worldwide (down 7.95% to Rs 150), Andhra Sugars (down 7.75% to Rs 91.10), and Nagreeka Exports (down 6.71% to Rs 40.30), slipped.
Raymond galloped 20.01% to Rs 323.30 on huge volumes of 17.67 lakh shares, boosted by a block deal of 6.87 lakh shares struck on the counter at Rs 273 per share by 12:36 IST on BSE. The average daily volume in the stock in the past one year was 29414 shares
GAIL (India) rose 3.38% to Rs 323.75 on its plans to raise up to $1.72 billion from domestic and foreign markets to double its pipeline network by 2011.
Neyveli Lignite Corporation slipped 3.31% to Rs 96.25 after National Stock Exchange (NSE) banned fresh positions in the derivatives contracts as 95% marketwide position limit was crossed yesterday, 17 September 2007.
Indian Hotels Company gained 1.30% to Rs 131.30 on reports that it acquired a 10% stake in US-based Orient-Express Hotels for $211.28 million.
Puravankara Projects rose 4.45% to Rs 394.40 after it reported 43.59% surge in net profit to Rs 35.64 crore on 27.79% total income rise to Rs 120.4 crore in Q1 June 2007 over Q1 June 2006.
Jai Corp jumped 5% to Rs 8951.50 after it fixed 12 October 2007 as the record date for the purpose of stock split from existing face value Rs 10 per share to a face value of Re 1 per share and also for issue bonus shares in the ratio of 1:1.
PSL had gained 0.35% to Rs 353 after it bagged a $17 million contract from Fusion Provida, England for supplying 1,24,000 meters of 3 LPE coated line pipes.
State Trading Corporation of India surged 20% to Rs 238.35 after it said that a board meeting will be held on 26 September 2007 to recommend issue of bonus shares in a ratio of 1:1.
Indo Asian Fusegear surged 6.14% to Rs 121 on its plans to foray into power distribution business. It is setting up a new company Indo Asian Power Distribution and Infrastructure (IAPDIL) with an investment of Rs 25 crore.
Lanco Infratech jumped 4.79% to Rs 331.55 after it entered into a memorandum of understanding with Gulftainer Company, UAE to co-operate on a variety of port and transportation projects. Gulftainer Company is a leading port developer and operator in the Emirate of Sharjah in the United Arab Emirates.
McNally Bharat Engineering Company surged 5% to Rs 207.20 after the company received an order from NTPC for supply of dry fly ash extraction & collection system for its Rihand plant in Uttar Pradesh. The order is valued at Rs 13.80 crore.
KLG Systel soared 4.05% to Rs 527 after it bagged orders worth Rs 32.5 crore from the Government of Haryana and Rs 7.5 crore from Government of Rajasthan. With these new orders, the company has bagged projects worth a total of Rs 100 crore in the month of September 2007 so far.
Reliance Industrial Infrastructure galloped 8.60% to Rs 782 on expectations of orders from its parent Reliance Industries (RIL) to build gas pipelines and warehouses.
European markets recovered after weak opening. Key benchmark indices in France (up 0.25% to 5,453.24) and United Kingdom (up 0.31% to 6,202) advanced. Germany’s DAX index was down 0.16% to 7,468.25.
Asian markets settled lower today, 18 September 2007 hurt by concerns related to the health of the global credit markets, as well as nervousness ahead of the US Fed meet scheduled later in the day. Japan's Nikkei (down 2.02% at 15,801.80), Hong Kong's Hang Seng (down 0.09% at 24,576.85), and South Korea's Seoul Composite (down 1.77% at 1,838.61) declined.
However Singapore's Straits Times (up 0.04% at 3,477.75) and Shanghai Composite (up 0.07% to 5,425.20) edged higher
Dow Jones industrial average futures rose 29 points or 0.21% to 13,532. S&P 500 futures rose 2 points or 0.13% to 1,491.80, and Nasdaq 100 Index futures rose 3.50 points or 0.17% to 2,009.50.
Crude oil prices surged to a record high above $81 a barrel on Tuesday, 18 September 2007 drawing strength from concerns of a winter supply squeeze in the world's top consumer where an anticipated interest rate cut is calming recession fears. US light crude for October delivery rose 56 cents to $81.13 a barrel after touching a high of $81.18 earlier in today’s session. London Brent crude for November rose 22 cents to $77.20 a barrel.
US stock futures pointed slightly higher opening today, 18 September 2007, ahead of the two main events viz. interest-rate decision by the US Federal Reserve and third quarter earnings from investment bank Lehman Brothers post crisis in the subprime mortgage market and the credit crunch which was triggered last month.
The BSE 30-share Sensex advanced up 164.69 points or 1.06% at 15,669.12. It opened higher at 15,547.07 but later slipped to a low of 15,468.80 briefly. Sensex hit a high of 15,691.88 in late trade. It oscillated in a range of 223.08 points for the day.
The Sensex is 199.73 points away from its all time high of 15,868.85 hit on 24 July 2007.
The S&P CNX Nifty rose 51.55 points or 1.15% at 4,546.20. The Nifty September 2007 futures settled at 4542, a discount of 4.20 points as compared to spot closing
The market breadth, indicating overall health of the market was strong on BSE, with 1794 shares advancing as compared to 958 that declined, while 55 remained unchanged.
The BSE Mid-Cap index rose 1.01% to 6,985.03 underperforming the Sensex while the BSE Small-Cap Index gained 1.63% to 8,780.89 outperforming the Sensex.
The total turnover on BSE amounted to Rs 5585 crore as compared to Rs 4688 crore on Monday, 17 September 2007
The NSE F&O turnover was Rs 45069.25 crore as compared to Rs 35768.53 crore on Monday, 17 September 2007
Among the 30-member Sensex pack, 21 gained while the rest slipped
Banking shares surged on renewed buying. India’s largest private sector bank in terms of net profit ICICI Bank advanced 3.04% to Rs 921.05 on 6.80 lakh shares. It was the top gainer from Sensex pack.
Other banking shares - State Bank of India (up 2.70% to Rs 1691), Bank of India (up 2.48% to Rs 249.80), Bank of Baroda (up 4.15% to Rs 295), Vijaya Bank (up 3.38% to Rs 61.10) and Andhra Bank (up 2.81% to Rs 93.30), also edged higher.
India’s largest listed cellular services provider by sales, Bharti Airtel advanced 2.34% to Rs 832.50. The stock gained after foreign brokerage house Citigroup recommended buy rating on the stock with a 12-month target price of Rs 1050.
India’s largest private sector power utility company in terms of sales, Reliance Energy (REL) hit all time high of Rs 933 in intra-day trade. It settled 1.97% higher at Rs 925.70. Yesterday, 17 September 2007 the stock gained 2.71% to Rs 906.60. As per recent reports, Supreme Court has allowed the company to bid for Rs 2,600 crore Mumbai sea link project.
ONGC (up 1.48% to Rs 848.10) and Mahindra & Mahindra (up 1.55% to Rs 709), were the other gainers from Sensex pack.
Bhel, the country’s largest power equipment maker in terms of sales rose 0.19% to Rs 1901, off its day’s high of Rs 1930. Bhel is reportedly looking at mergers and acquisition to fuel inorganic growth. Reports also suggest that the company is targeting a turnover of Rs 45,000 crore by 2012.
However pharma and software shares were subdued. Cipla, the country’s third largest pharma company in terms of net sales, slipped 2.04% to Rs 168.45 on 7.16 lakh shares. It was the top loser from Sensex pack.
India’s second largest pharma company in terms of net sales, Dr Reddy’s slipped 0.20% to Rs 641.
IT pivotals Wipro (down 1.20% to Rs 443.50), Satyam Computers (up 0.17% to Rs 421.50), and Infosys Technologies (down 0.03% to Rs 1805) edged lower.
India’s largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) recovered sharply from day’s low of Rs 2007. It settled 1.21% higher at Rs 2053 on 8.65 lakh shares. As per recent reports, RIL is foraying in shipbuilding and dredging business with two separate companies. It plans to invest around $1 billion each in two companies and has begun talks with international majors for a strategic tie-up for the dredging business
Reliance Capital was the top traded counter on BSE with total turnover of Rs 223.96 crore followed by Reliance Industries (Rs 176.09 crore), Reliance Industrial Infrastructure (Rs 129.33 crore), Reliance Energy (Rs 128.83 crore) and Indowind Energy (Rs 120.22 crore).
Among side counters, Engineers India (up 20% to Rs 581.80), Zandu Pharmaceuticals (up 20% to Rs 4341.65) and Kew Industries (up 19.98% to Rs 34.85) surged
Linc Pen & Plastics (down 9.64% to Rs 45), Jindal Worldwide (down 7.95% to Rs 150), Andhra Sugars (down 7.75% to Rs 91.10), and Nagreeka Exports (down 6.71% to Rs 40.30), slipped.
Raymond galloped 20.01% to Rs 323.30 on huge volumes of 17.67 lakh shares, boosted by a block deal of 6.87 lakh shares struck on the counter at Rs 273 per share by 12:36 IST on BSE. The average daily volume in the stock in the past one year was 29414 shares
GAIL (India) rose 3.38% to Rs 323.75 on its plans to raise up to $1.72 billion from domestic and foreign markets to double its pipeline network by 2011.
Neyveli Lignite Corporation slipped 3.31% to Rs 96.25 after National Stock Exchange (NSE) banned fresh positions in the derivatives contracts as 95% marketwide position limit was crossed yesterday, 17 September 2007.
Indian Hotels Company gained 1.30% to Rs 131.30 on reports that it acquired a 10% stake in US-based Orient-Express Hotels for $211.28 million.
Puravankara Projects rose 4.45% to Rs 394.40 after it reported 43.59% surge in net profit to Rs 35.64 crore on 27.79% total income rise to Rs 120.4 crore in Q1 June 2007 over Q1 June 2006.
Jai Corp jumped 5% to Rs 8951.50 after it fixed 12 October 2007 as the record date for the purpose of stock split from existing face value Rs 10 per share to a face value of Re 1 per share and also for issue bonus shares in the ratio of 1:1.
PSL had gained 0.35% to Rs 353 after it bagged a $17 million contract from Fusion Provida, England for supplying 1,24,000 meters of 3 LPE coated line pipes.
State Trading Corporation of India surged 20% to Rs 238.35 after it said that a board meeting will be held on 26 September 2007 to recommend issue of bonus shares in a ratio of 1:1.
Indo Asian Fusegear surged 6.14% to Rs 121 on its plans to foray into power distribution business. It is setting up a new company Indo Asian Power Distribution and Infrastructure (IAPDIL) with an investment of Rs 25 crore.
Lanco Infratech jumped 4.79% to Rs 331.55 after it entered into a memorandum of understanding with Gulftainer Company, UAE to co-operate on a variety of port and transportation projects. Gulftainer Company is a leading port developer and operator in the Emirate of Sharjah in the United Arab Emirates.
McNally Bharat Engineering Company surged 5% to Rs 207.20 after the company received an order from NTPC for supply of dry fly ash extraction & collection system for its Rihand plant in Uttar Pradesh. The order is valued at Rs 13.80 crore.
KLG Systel soared 4.05% to Rs 527 after it bagged orders worth Rs 32.5 crore from the Government of Haryana and Rs 7.5 crore from Government of Rajasthan. With these new orders, the company has bagged projects worth a total of Rs 100 crore in the month of September 2007 so far.
Reliance Industrial Infrastructure galloped 8.60% to Rs 782 on expectations of orders from its parent Reliance Industries (RIL) to build gas pipelines and warehouses.
European markets recovered after weak opening. Key benchmark indices in France (up 0.25% to 5,453.24) and United Kingdom (up 0.31% to 6,202) advanced. Germany’s DAX index was down 0.16% to 7,468.25.
Asian markets settled lower today, 18 September 2007 hurt by concerns related to the health of the global credit markets, as well as nervousness ahead of the US Fed meet scheduled later in the day. Japan's Nikkei (down 2.02% at 15,801.80), Hong Kong's Hang Seng (down 0.09% at 24,576.85), and South Korea's Seoul Composite (down 1.77% at 1,838.61) declined.
However Singapore's Straits Times (up 0.04% at 3,477.75) and Shanghai Composite (up 0.07% to 5,425.20) edged higher
Dow Jones industrial average futures rose 29 points or 0.21% to 13,532. S&P 500 futures rose 2 points or 0.13% to 1,491.80, and Nasdaq 100 Index futures rose 3.50 points or 0.17% to 2,009.50.
Crude oil prices surged to a record high above $81 a barrel on Tuesday, 18 September 2007 drawing strength from concerns of a winter supply squeeze in the world's top consumer where an anticipated interest rate cut is calming recession fears. US light crude for October delivery rose 56 cents to $81.13 a barrel after touching a high of $81.18 earlier in today’s session. London Brent crude for November rose 22 cents to $77.20 a barrel.
JP Morgan launches domestic debt funds
JP Morgan Asset Management India Pvt Ltd on Tuesday launched its maiden domestic debt funds. The subscription for the new funds — JP Morgan India Liquid Fund and JP Morgan India Liquid Plus Fund — will be open from September 18 to September 20 after which they will be opened for ongoing sales and repurchase from September 24. There is no entry or exit load for the funds and their performance will be benchmarked against the Crisil Liquid Fund Index.
The investment objective of the JP Morgan India Liquid Fund is to provide reasonable returns, commensurate with low risk, while providing a high level of liquidity, through a portfolio of money market and debt securities. The investment objective of the JPMorgan India Liquid Plus Fund aims to provide liquidity and optimal returns to investors by investing primarily in a mix of short-term debt and money market instruments which results in a portfolio having marginally higher maturity and credit risk.
The investment objective of the JP Morgan India Liquid Fund is to provide reasonable returns, commensurate with low risk, while providing a high level of liquidity, through a portfolio of money market and debt securities. The investment objective of the JPMorgan India Liquid Plus Fund aims to provide liquidity and optimal returns to investors by investing primarily in a mix of short-term debt and money market instruments which results in a portfolio having marginally higher maturity and credit risk.
GDP to grow by 9%: Montek
Deputy chairman of the planning commission Montek Singh Ahluwalia said on Tuesday that the Indian economy has the potential to grow by nine per cent over the next five years. "Infact our target is to bring the economy at the 10 per cent growth rate sometime at the end of the eleventh plan period," Mr Ahluwalia said at the fourth Indo-US Economic Summit here. He said that lack of infrastructure is one of the major constraints in the growth of the economy. "We need to spend 9 per cent of the GDP in the infrastructure sector to sustain the growth rate of 9 per cent," said Mr Ahluwalia.
On the occasion the US ambassador to India David Mulford said that one engine to advance macro economic activity across India is further liberalisation in India’s banking and financial markets. "Prime Minister Manmohan Singh spoke last week of the need for a paradigm shift in the economic and commercial use of water. This is an area where reforms that establish a price driven regulatory regime would have major economic benefits as well as positive social policy implications," said Mr Mulford. "Such bold thinking if translated into action will help reshape Indian agriculture so that portable and affordable water is accessible to village households and small farmers, " he said. He said that one sector that can make a positive impact on many of India’s poor especially in rural areas is organised retail.
On the occasion the US ambassador to India David Mulford said that one engine to advance macro economic activity across India is further liberalisation in India’s banking and financial markets. "Prime Minister Manmohan Singh spoke last week of the need for a paradigm shift in the economic and commercial use of water. This is an area where reforms that establish a price driven regulatory regime would have major economic benefits as well as positive social policy implications," said Mr Mulford. "Such bold thinking if translated into action will help reshape Indian agriculture so that portable and affordable water is accessible to village households and small farmers, " he said. He said that one sector that can make a positive impact on many of India’s poor especially in rural areas is organised retail.
DLF chief: RBI policy inimical to real estate sector
DLF chairman K.P. Singh said on Tuesday that high lending rates triggered by Reserve Bank’s tight monetary policy has effected real estate demand in the country but he hoped that demand will surge again once rates dip. Mr Singh said that RBI has been framing its credit policy with over focus on containing inflation, totally ignoring its adverse consequences on real estate and thus the policy is proving to be inimical to real estate growth.
Although, the demand for property purchases was very much there, today affordability has come into question, said the DLF Chairman. "Because of mortgage rate and monetary policy, there is no doubt that the market has got subdued temporarily," said Mr Singh, while releasing the Assocham study on ‘Reality Check on Real Estate’. "I am sure once the interest rates drop, demand will pick up," he said.
He said that government should get out of the business of infrastructure building and leave it to the private sector to spur up growth in the property businesses just as it played a role of facilitator in telecommunication a couple of years ago. Videocon chairman Venugopal N. Dhoot said that even as default rates on instalment payment of home loans have risen around 4.5 per cent, the Indian real estate market is likely to be $ 90 billion by 2015 as demand for commercial and residential property is surpassing supplies. The Indian real estate market presently is estimated at $ 14 billion. He said that the real estate sector is growing at 30 per cent and $ 10 billion worth of investment is expected to flow into the sector by end of the year 2008.
Although, the demand for property purchases was very much there, today affordability has come into question, said the DLF Chairman. "Because of mortgage rate and monetary policy, there is no doubt that the market has got subdued temporarily," said Mr Singh, while releasing the Assocham study on ‘Reality Check on Real Estate’. "I am sure once the interest rates drop, demand will pick up," he said.
He said that government should get out of the business of infrastructure building and leave it to the private sector to spur up growth in the property businesses just as it played a role of facilitator in telecommunication a couple of years ago. Videocon chairman Venugopal N. Dhoot said that even as default rates on instalment payment of home loans have risen around 4.5 per cent, the Indian real estate market is likely to be $ 90 billion by 2015 as demand for commercial and residential property is surpassing supplies. The Indian real estate market presently is estimated at $ 14 billion. He said that the real estate sector is growing at 30 per cent and $ 10 billion worth of investment is expected to flow into the sector by end of the year 2008.
IBM to challenge MS, offer free office software
IBM plans to mount its most ambitious challenge in years to Microsoft’s dominance of personal computer software, by offering free programs for word processing, spreadsheets and presentations. The company is announcing the desktop software, called IBM Lotus Symphony, at an event on Tuesday in New York. The programs will be available as free downloads from the IBM Web site.
IBM’s Lotus-branded proprietary programs already compete with Microsoft products for e-mail, messaging and work group collaboration. But the Symphony software is a free alternative to Microsoft’s mainstay Office programs — Word, Excel and PowerPoint. The Office business is huge and lucrative for Microsoft, second only to its Windows operating system as a profit maker.
In the 1990s, IBM failed in an effort to compete head-on with Microsoft in personal computer software with its OS/2 operating system and its SmartSuite office productivity programs. But IBM is taking a different approach this time. Its offerings are versions of open-source software developed in a consortium called OpenOffice.org.
The original code traces its origins to a German company, Star Division, which Sun Microsystems bought in 1999. Sun later made the desktop software, now called StarOffice, an open-source project, in which work and code are freely shared.
IBM’s engineers have been working with OpenOffice technology for some time. But last week, IBM declared that it was formally joining the open-source group, had dedicated 35 full-time programmers to the project and would contribute code to the initiative.
Free office productivity software has long been available from OpenOffice.org, and the open-source alternative has not yet made much progress against Microsoft’s Office. But IBM, analysts note, has such reach and stature with corporate customers that its endorsement could be significant.
IBM’s Lotus-branded proprietary programs already compete with Microsoft products for e-mail, messaging and work group collaboration. But the Symphony software is a free alternative to Microsoft’s mainstay Office programs — Word, Excel and PowerPoint. The Office business is huge and lucrative for Microsoft, second only to its Windows operating system as a profit maker.
In the 1990s, IBM failed in an effort to compete head-on with Microsoft in personal computer software with its OS/2 operating system and its SmartSuite office productivity programs. But IBM is taking a different approach this time. Its offerings are versions of open-source software developed in a consortium called OpenOffice.org.
The original code traces its origins to a German company, Star Division, which Sun Microsystems bought in 1999. Sun later made the desktop software, now called StarOffice, an open-source project, in which work and code are freely shared.
IBM’s engineers have been working with OpenOffice technology for some time. But last week, IBM declared that it was formally joining the open-source group, had dedicated 35 full-time programmers to the project and would contribute code to the initiative.
Free office productivity software has long been available from OpenOffice.org, and the open-source alternative has not yet made much progress against Microsoft’s Office. But IBM, analysts note, has such reach and stature with corporate customers that its endorsement could be significant.
PNB sees synergy in acquisition of IFCI
Punjab National Bank (PNB), one of the bidders eyeing 26 per cent equity stake in IFCI, is betting on high business synergy and a similar client base as key factors with the help of which it can revive the ailing financial institution.
"About 80 per cent of our assets are common, including NPAs (non-performing assets). We have a natural synergy with IFCI as both of us are north-based. Hence, there is a similarity in the clientele, including defaulters," PNB chairman and managing director K.C. Chakrabarty told NewsWire18.
PNB, the only state-run bidder in the race for acquiring the stake in IFCI, has formed a consortium with private equity firm JC Flowers and Co. and Shinsei Bank of Japan. The government had invited expression of interest for sale of 26 per cent stake in IFCI, valued at around Rs 1,300 crores, from strategic investors. The deadline for submission of EoIs expired on Friday.
"About 80 per cent of our assets are common, including NPAs (non-performing assets). We have a natural synergy with IFCI as both of us are north-based. Hence, there is a similarity in the clientele, including defaulters," PNB chairman and managing director K.C. Chakrabarty told NewsWire18.
PNB, the only state-run bidder in the race for acquiring the stake in IFCI, has formed a consortium with private equity firm JC Flowers and Co. and Shinsei Bank of Japan. The government had invited expression of interest for sale of 26 per cent stake in IFCI, valued at around Rs 1,300 crores, from strategic investors. The deadline for submission of EoIs expired on Friday.
StanChart to buy AmEx Bank
UK banking giant Standard Chartered on Tuesday announced it will acquire US-based American Express Bank for about $860 million — a deal that will give it the much-needed additional branch licences in India. The acquisition would be an all-cash deal, StanChart said in a statement. It is likely to increase the bank’s network in India to a total of 90 branches.
Immediately after the announcement, industry sources said the development would have no impact on American Express’ credit card business, which it plans to pursue aggressively across the world including India. StanChart said the American Express Bank’s acquisition from American Express Company would be for a total cash consideration equal to the net asset value of AEB at completion plus $300 million in cash. As of June 30, this would have amounted to about $860 million, it said.
AEB, whose New York-based parent company AXP is the third-largest credit card network, is a leading international bank present in 47 countries, including India. Among other benefits, "the acquisition will include valuable branch licences in India and Taiwan subject to regulatory approvals," StanChart said.
According to the data released by Reserve Bank of India, Standard Chartered is the largest foreign bank in India in terms of branches with a total of 81 branches, as against American Express Bank’s seven branches as of September 2006 out of total 258 branches of 29 foreign banks. Since then, Standard Chartered has got approval for two more branches in India, which the bank plans to open next month, a bank spokesperson said from Mumbai. Standard Chartered said it expects to further deepen its existing network and expand its access to new growth markets through this acquisition.
Immediately after the announcement, industry sources said the development would have no impact on American Express’ credit card business, which it plans to pursue aggressively across the world including India. StanChart said the American Express Bank’s acquisition from American Express Company would be for a total cash consideration equal to the net asset value of AEB at completion plus $300 million in cash. As of June 30, this would have amounted to about $860 million, it said.
AEB, whose New York-based parent company AXP is the third-largest credit card network, is a leading international bank present in 47 countries, including India. Among other benefits, "the acquisition will include valuable branch licences in India and Taiwan subject to regulatory approvals," StanChart said.
According to the data released by Reserve Bank of India, Standard Chartered is the largest foreign bank in India in terms of branches with a total of 81 branches, as against American Express Bank’s seven branches as of September 2006 out of total 258 branches of 29 foreign banks. Since then, Standard Chartered has got approval for two more branches in India, which the bank plans to open next month, a bank spokesperson said from Mumbai. Standard Chartered said it expects to further deepen its existing network and expand its access to new growth markets through this acquisition.
Tata arm to retail Benetton apparel
The market for premium class fashion garments and accessories, currently growing over 20 per cent per annum, is presently worth Rs 1,000 crores in India. However, the turnover of low and mid-priced clothing and allied accessories segment is increasing at around 50 per cent per year. This was stated by Benetton Group chairman Alessandro Benetton in Mumbai while announcing a franchisee association with a Tata enterprise, Trent Ltd.
Mr Benetton said, "The fashion industry in India is currently booming at an exponential rate. As the demand for premium class clothing and accessories priced at over Rs 4,000 per piece is growing by leaps and bounds, the country’s fashion sector has become the most promising market to retail our various brands produced by us every year." Trent Ltd MD Noel Tata said, "We have signed a five-year master franchisee agreement with the Benetton Group to retail its premium class clothing and accessories branded by the name Sisley. Within the span of five years, we plan to open at least 30 Sisley stores accross metro cities of India at an investment of about Rs 50 crores."
Trent Ltd currently operates 27 Westside brand stores and 2 Star Bazaar brand stores. It recently bought a 76 per cent stake in the Landmark retail chain that currently sells books and music products in eight cities. The total income of Trent Ltd for 2006-07 was Rs 631.86 crores.
Mr Benetton said, "The fashion industry in India is currently booming at an exponential rate. As the demand for premium class clothing and accessories priced at over Rs 4,000 per piece is growing by leaps and bounds, the country’s fashion sector has become the most promising market to retail our various brands produced by us every year." Trent Ltd MD Noel Tata said, "We have signed a five-year master franchisee agreement with the Benetton Group to retail its premium class clothing and accessories branded by the name Sisley. Within the span of five years, we plan to open at least 30 Sisley stores accross metro cities of India at an investment of about Rs 50 crores."
Trent Ltd currently operates 27 Westside brand stores and 2 Star Bazaar brand stores. It recently bought a 76 per cent stake in the Landmark retail chain that currently sells books and music products in eight cities. The total income of Trent Ltd for 2006-07 was Rs 631.86 crores.
Friday, September 14, 2007
Sensex settles above 15,600
The market today broke its two-day loosing streak to post good gains, led by steady buying support for index pivotals. Turnover was high. Stocks across sectors saw steady buying today. Asian markets were mixed while European markets were trading lower today, 13 September 2007.
The BSE 30-share Sensex gained 109.08 points or 0.70% at 15,614.44. It opened higher at 15,547.66 and advanced further to hit a high of 15,650.14.
The Sensex is 254.41 points away from all time high of 15,868.85 hit on 24 July 2007
The S&P CNX Nifty rose 32.10 points or 0.71% at 4,528.95. The Nifty September 2007 futures settled at 4,527, a marginal discount of 1.95 points as compared to spot closing
The market breadth was strong on BSE, with 1647 shares advancing as compared to 1123 that declined, while 66 remained unchanged.
The BSE Mid-Cap index rose 0.86% to 6,948.53, while the BSE Small-Cap index gained 0.77% to 8,638.20. Both these indices outperformed the Sensex by small margin
The BSE Mid-Cap index hit an all time high of 6,958.98, while the BSE Small-Cap index struck an all time high of 8,670.25 in intra-day trade today, 13 September 2007.
Turnover on BSE was above Rs 5,000 crore for the third day in a row. It amounted to Rs 5,257 crore as compared to Rs 5,391 crore on Wednesday, 12 September 2007.
The NSE’s F&O turnover was Rs 41,758.23 crore as compared to Rs 40,563.67 crore on Wednesday, 12 September 2007.
Most of the sectoral indices on BSE logged gains. BSE Bankex (up 1.28% at 8,081.94), BSE Auto Index (up 1.30% at 4,939.34), BSE PSU index (up 1% to 7,396.63), BSE Realty index (up 2.69% to 7,847.86) and BSE IT Index (up 0.87% at 4,482.57) outperformed the Sensex.
However, BSE Metal Index (up 0.05% at 11,924.63), BSE Oil and Gas Index (up 0.69% at 8,378.77), BSE Consumer Durables index (up 0.08% to 4,598.17), BSE FMCG Index (down 0.54% at 2,070.79), BSE Capital Goods Index (up 0.44% at 13,723.88), BSE TecK index (up 0.63% to 3,562.58) and BSE Health Care Index (up 0.25% at 3,693.88), were underperformers.
From 30-member Sensex pack, 20 gained while the rest slipped.
India’s top small car manufacturer in terms market share Maruti Suzuki India surged 3.73% to Rs 891.30 on 1.94 lakh shares. It was the top gainer from the Sensex pack.
Other auto shares also posted gains, on fresh buying. Tata Motors (up 1.29% to Rs 694.20), Mahindra & Mahindra (up 1.33% to Rs 707.95), and Bajaj Auto (up 1.06% to Rs 2418.10), gained.
State Bank of India (SBI), the nation’s largest bank in terms of net profit gained 3.25% to Rs 1677 on 6.31 lakh shares. As per reports, SBI plans to raise Rs 10,000 crore by December 2007.
India’s largest private sector company by market capitalisation and oil refiner Reliance Industries (RIL) struck an all time high of Rs 2034.40 in early trade. It settled 0.6% higher to Rs 2025 on 6.15 lakh shares. The stock edged higher after the empowered group of ministers (EGoM), approved RIL’s pricing formula for its gas from the Krishna-Godavari (KG) basin.
The revised formula lowers the proposed price of the gas at Kakinada to $4.20 per million British thermal unit (mmBtu) from $4.33 mmBtu that was proposed by RIL. The price at which RIL will sell its gas from the KG basin to consumers will be valid for five years, after which it will be open for revision.
Reliance Communications, the county’s second largest listed cellular services provider in terms of revenue gained 1.86% to Rs 552.15. As per reports, FLAG Telecom Group (FLAG) reportedly bagged a contract from CERN, the European Organisation for Nuclear Research, to provide Gigabit connectivity between the organisation’s research centre in Geneva and Tata Institute of Fundamental Research in Mumbai.
IT pivotals staged a comeback after their recent underperformance to the Sensex. Satyam Computers (up 1.27% to Rs 434.25), Infosys Technologies (up 0.71% to Rs 1833), Wipro (up 1.19% to Rs 458), and TCS (up 1.36% to Rs 1030), posted gains. The government on Wednesday, 12 September 2007 extended the date for corporates to submit Fringe Benefit Tax on employee stock option plans to 15 December 2007 in the absence of the method for determining the fair market value of such shares.
Second line IT stocks also surged. KPIT Cummins (up 17.51% to Rs 141.30), Aptech (up 5.40% to Rs 388.20), Hexaware Technologies (up 7.10% to Rs 131.20), Tech Mahindra (up 2.13% to Rs 1309), and MphasiS (up 3.96% to Rs 295), surged
Cement shares gained on fresh buying. ACC (up 2.55% to Rs 1130), Ambuja Cements (up 1.97% to Rs 144.60), and Grasim (up 2.52% to Rs 3285) edged higher from cement pack. Cement firms reported healthy dispatches in the month of August 2007
However, pharma pivotals saw some profit booking. Ranbaxy Laboratories (down 0.02% to Rs 417), Dr Reddy’s (down 0.44% to Rs 643.50) and Cipla (down 0.14% to Rs 175) declined.
India’s largest FMCG company by sales Hindustan Unilever was the top loser from the Sensex pack. It slipped 0.97% to Rs 215 on high volumes of 17.13 lakh shares. A block deal of 5.08 lakh shares was struck on the counter on BSE at Rs 216.05 per share by 14:38 IST. The stock recovered from its day’s low of Rs 212.70
Tata Steel (down 0.67% to Rs 706.50), and Reliance Energy (down 0.82% to Rs 887), were the other losers from Sensex pack.
Reliance Capital was the top traded counter on BSE with total turnover of Rs 177.56 crore followed by Reliance Industries (Rs 124.71 crore), IFCI (Rs 124.01 crore), MIC Electronics (Rs 115.17 crore) and Welspun Gujarat Stahl Rhoren (Rs 107.11 crore).
Real estate stocks advanced on fresh buying led by Unitech which surged 7.72% to Rs 285.55 on news it will replace Indian Petrochemicals Corporation in 50 share S&P CNX Nifty, with effect from 5 October 2007.
Other real estate shares, DLF (up 1.61% to Rs 645), Parsvnath Developers (up 0.72% to Rs 322), Orbit Corporation (up 2.57% to Rs 512.90), and Omaxe (up 4.10% to Rs 333.20), advanced.
Aftek surged 20% to Rs 73.60 after Seekport AG in which company's unit holds 24.75% stake, was listed on Frankfurt Stock Exchange. Based on the bid price of 4.75 Euro per share, the total valuation of the company works out to Euro 475 million. Earlier, Arexera had acquired a stake in Seekport AG by transfer of technology.
Bombay Dyeing & Manufacturing Company gained 1.04% to Rs 642 on reports a few private equity firms are eyeing a minor stake in the company. Wadias, the founders of Bombay Dyeing, are looking to offload less than 15% of their share holding in the company, reports suggest.
Jindal Steel & Power soared 7.55% to Rs 4690. The company is expecting an approval from Bolivian government this week to go ahead with its El Mutun iron-ore project in the region, the company's biggest-ever investment overseas.
Ajanta Pharma galloped 9.56% to Rs 110 after entering agreement with Prollenium Medical Technologies, Canada to market the latter’s dermal filler Revanesse in India.
Honda Motor Company gained 1.58% to Rs 665 on reports that Honda plans to launch various products to maintain market share of 60% in Indian two-wheeler maker.
Ipca Laboratories rose 1.12% to Rs 695.40 after it acquired 100% shareholding of a small formulation product dossier registration-cum-distribution company in Australia.
Welspun Gujarat Stahl Rohren vaulted 6.84% to Rs 267.05. With effect from 6 September 2007, Welspun Gujarat was included in the National Stock Exchanges’ derivatives segment.
Batliboi soared 10.25% to Rs 168.90 after the company fixed 4 October 2007 as the record date for the purpose of stock split from the present face value of Rs 10 to Rs 5 each.
Lupin advanced 2.39% to Rs 608 on reports the company had won a patent challenge against King Pharmaceuticals and Sanofi-Aventis over blood pressure drug Altace, in US.
West Coast Paper Mills declined 3.25% to Rs 454.30 after it went ex-dividend for a dividend of Rs 15 per share from today, 13 September 2007. It has face value of Rs 10 each.
Siemens India rose 0.29% to Rs 1270 after it acquired balance 26% equity stake in Siemens Industrial Turbomachinery Services, Bangalore (SITS) on 7 September 2007. With this acquisition, SITS has become its 100% subsidiary of Siemens. SITS specializes in the service, repair and overhaul of small gas turbines and rotating equipments.
Banco Products India surged 8.82% to Rs 151.20 after it scheduled a meeting of the board of directors to on 26 September 2007 to consider sub-division of the face value of the equity shares.
ABG Shipyard rose 3.48% to Rs 620 on the back of company's plan to revive ailing Western India Shipyard. Western India Shipyard jumped 5% to Rs 18.90. ABG Shipyard's board has considered and approved the company's involvement in the proposal for revival and rehabilitation of Western India Shipyard (WISL) in terms of a scheme of compromise and arrangement between WISL and its secured lenders with ABG as a confirming party.
Gujarat Alkalies & Chemicals moved up 2.57% to Rs 143.60 on reports the company plans to spend Rs 500 crore for taking up new projects and adding power generation capacity.
Diamond Cables jumped 4.41% to Rs 362.20 after its unit received an order for supply of 2750 transformers. These orders will be executed by company's wholly owned subsidiary Diamond Power Transformers (DPT) before 31 March 2008.
Suzlon Energy advanced 3.30% to Rs 1379 on its plans to invest about 1 billion euro ($1.4 billion) to nearly triple its production capacity by 2009. The expansion plan would raise Suzlon’s turbine production capacity in India from the present 2,700 megawatt (MW) to 5,700 MW by the close of fiscal March 2009, reports suggest.
Most of the European markets were trading lower. United Kingdom (down 0.03% to 6,304.50), France (down 0.19% to 5,497.55), and Germany (down 0.31% to 7,449.77), declined.
Asian markets were trading higher. Japan's Nikkei (up 0.15% at 15,836.27), Hang Seng (up 0.93% at 24,537.07), Seoul Composite (up 1.90% to 1,848.02), and Shanghai Composite (up 1.95% to 5,273.92) gained.
However, Taiwan Weighted (down 1.01% at 8,927.42) and Straits Times (down 0.05% to 3,504.40) slipped
US shares settled slightly lower yesterday, 12 September 2007 with investors still confident the Federal Reserve will lower rates next week but treading cautiously as oil prices crossed $80 a barrel for the first time and the dollar extended its decline. The Dow Jones industrial average fell 16.74 points, or 0.13%, to 13,291.65, after weaving in and out of positive territory throughout the session. The Standard & Poor's 500 index rose 0.07 point, or less than 0.01%, to 1,471.56, and the Nasdaq Composite index fell 5.40 points, or 0.21%, to 2,592.07.
India's industrial output rose 7.1% in July 2007 from a year earlier, sharply lower than downwardly revised annual growth of 9% in June 2007 due to slower manufacturing output, data showed on Wednesday, 12 September 2007. Manufacturing production rose 7.2% in July 2007 from a year earlier, compared with provisional annual growth of 10.6% in June 2007.
Crude oil prices dipped on Thursday, 13 September 2007, but held near $80 a barrel and the previous day's record high, as dealers watched a tropical storm in the Gulf of Mexico after a sharp fall in U.S. crude stocks. US crude was trading 23 cents lower at $79.68 a barrel, after hitting a record high of $80.18 yesterday, 12 September 2007. London Brent crude shed 9 cents to $77.59 a barrel.
The BSE 30-share Sensex gained 109.08 points or 0.70% at 15,614.44. It opened higher at 15,547.66 and advanced further to hit a high of 15,650.14.
The Sensex is 254.41 points away from all time high of 15,868.85 hit on 24 July 2007
The S&P CNX Nifty rose 32.10 points or 0.71% at 4,528.95. The Nifty September 2007 futures settled at 4,527, a marginal discount of 1.95 points as compared to spot closing
The market breadth was strong on BSE, with 1647 shares advancing as compared to 1123 that declined, while 66 remained unchanged.
The BSE Mid-Cap index rose 0.86% to 6,948.53, while the BSE Small-Cap index gained 0.77% to 8,638.20. Both these indices outperformed the Sensex by small margin
The BSE Mid-Cap index hit an all time high of 6,958.98, while the BSE Small-Cap index struck an all time high of 8,670.25 in intra-day trade today, 13 September 2007.
Turnover on BSE was above Rs 5,000 crore for the third day in a row. It amounted to Rs 5,257 crore as compared to Rs 5,391 crore on Wednesday, 12 September 2007.
The NSE’s F&O turnover was Rs 41,758.23 crore as compared to Rs 40,563.67 crore on Wednesday, 12 September 2007.
Most of the sectoral indices on BSE logged gains. BSE Bankex (up 1.28% at 8,081.94), BSE Auto Index (up 1.30% at 4,939.34), BSE PSU index (up 1% to 7,396.63), BSE Realty index (up 2.69% to 7,847.86) and BSE IT Index (up 0.87% at 4,482.57) outperformed the Sensex.
However, BSE Metal Index (up 0.05% at 11,924.63), BSE Oil and Gas Index (up 0.69% at 8,378.77), BSE Consumer Durables index (up 0.08% to 4,598.17), BSE FMCG Index (down 0.54% at 2,070.79), BSE Capital Goods Index (up 0.44% at 13,723.88), BSE TecK index (up 0.63% to 3,562.58) and BSE Health Care Index (up 0.25% at 3,693.88), were underperformers.
From 30-member Sensex pack, 20 gained while the rest slipped.
India’s top small car manufacturer in terms market share Maruti Suzuki India surged 3.73% to Rs 891.30 on 1.94 lakh shares. It was the top gainer from the Sensex pack.
Other auto shares also posted gains, on fresh buying. Tata Motors (up 1.29% to Rs 694.20), Mahindra & Mahindra (up 1.33% to Rs 707.95), and Bajaj Auto (up 1.06% to Rs 2418.10), gained.
State Bank of India (SBI), the nation’s largest bank in terms of net profit gained 3.25% to Rs 1677 on 6.31 lakh shares. As per reports, SBI plans to raise Rs 10,000 crore by December 2007.
India’s largest private sector company by market capitalisation and oil refiner Reliance Industries (RIL) struck an all time high of Rs 2034.40 in early trade. It settled 0.6% higher to Rs 2025 on 6.15 lakh shares. The stock edged higher after the empowered group of ministers (EGoM), approved RIL’s pricing formula for its gas from the Krishna-Godavari (KG) basin.
The revised formula lowers the proposed price of the gas at Kakinada to $4.20 per million British thermal unit (mmBtu) from $4.33 mmBtu that was proposed by RIL. The price at which RIL will sell its gas from the KG basin to consumers will be valid for five years, after which it will be open for revision.
Reliance Communications, the county’s second largest listed cellular services provider in terms of revenue gained 1.86% to Rs 552.15. As per reports, FLAG Telecom Group (FLAG) reportedly bagged a contract from CERN, the European Organisation for Nuclear Research, to provide Gigabit connectivity between the organisation’s research centre in Geneva and Tata Institute of Fundamental Research in Mumbai.
IT pivotals staged a comeback after their recent underperformance to the Sensex. Satyam Computers (up 1.27% to Rs 434.25), Infosys Technologies (up 0.71% to Rs 1833), Wipro (up 1.19% to Rs 458), and TCS (up 1.36% to Rs 1030), posted gains. The government on Wednesday, 12 September 2007 extended the date for corporates to submit Fringe Benefit Tax on employee stock option plans to 15 December 2007 in the absence of the method for determining the fair market value of such shares.
Second line IT stocks also surged. KPIT Cummins (up 17.51% to Rs 141.30), Aptech (up 5.40% to Rs 388.20), Hexaware Technologies (up 7.10% to Rs 131.20), Tech Mahindra (up 2.13% to Rs 1309), and MphasiS (up 3.96% to Rs 295), surged
Cement shares gained on fresh buying. ACC (up 2.55% to Rs 1130), Ambuja Cements (up 1.97% to Rs 144.60), and Grasim (up 2.52% to Rs 3285) edged higher from cement pack. Cement firms reported healthy dispatches in the month of August 2007
However, pharma pivotals saw some profit booking. Ranbaxy Laboratories (down 0.02% to Rs 417), Dr Reddy’s (down 0.44% to Rs 643.50) and Cipla (down 0.14% to Rs 175) declined.
India’s largest FMCG company by sales Hindustan Unilever was the top loser from the Sensex pack. It slipped 0.97% to Rs 215 on high volumes of 17.13 lakh shares. A block deal of 5.08 lakh shares was struck on the counter on BSE at Rs 216.05 per share by 14:38 IST. The stock recovered from its day’s low of Rs 212.70
Tata Steel (down 0.67% to Rs 706.50), and Reliance Energy (down 0.82% to Rs 887), were the other losers from Sensex pack.
Reliance Capital was the top traded counter on BSE with total turnover of Rs 177.56 crore followed by Reliance Industries (Rs 124.71 crore), IFCI (Rs 124.01 crore), MIC Electronics (Rs 115.17 crore) and Welspun Gujarat Stahl Rhoren (Rs 107.11 crore).
Real estate stocks advanced on fresh buying led by Unitech which surged 7.72% to Rs 285.55 on news it will replace Indian Petrochemicals Corporation in 50 share S&P CNX Nifty, with effect from 5 October 2007.
Other real estate shares, DLF (up 1.61% to Rs 645), Parsvnath Developers (up 0.72% to Rs 322), Orbit Corporation (up 2.57% to Rs 512.90), and Omaxe (up 4.10% to Rs 333.20), advanced.
Aftek surged 20% to Rs 73.60 after Seekport AG in which company's unit holds 24.75% stake, was listed on Frankfurt Stock Exchange. Based on the bid price of 4.75 Euro per share, the total valuation of the company works out to Euro 475 million. Earlier, Arexera had acquired a stake in Seekport AG by transfer of technology.
Bombay Dyeing & Manufacturing Company gained 1.04% to Rs 642 on reports a few private equity firms are eyeing a minor stake in the company. Wadias, the founders of Bombay Dyeing, are looking to offload less than 15% of their share holding in the company, reports suggest.
Jindal Steel & Power soared 7.55% to Rs 4690. The company is expecting an approval from Bolivian government this week to go ahead with its El Mutun iron-ore project in the region, the company's biggest-ever investment overseas.
Ajanta Pharma galloped 9.56% to Rs 110 after entering agreement with Prollenium Medical Technologies, Canada to market the latter’s dermal filler Revanesse in India.
Honda Motor Company gained 1.58% to Rs 665 on reports that Honda plans to launch various products to maintain market share of 60% in Indian two-wheeler maker.
Ipca Laboratories rose 1.12% to Rs 695.40 after it acquired 100% shareholding of a small formulation product dossier registration-cum-distribution company in Australia.
Welspun Gujarat Stahl Rohren vaulted 6.84% to Rs 267.05. With effect from 6 September 2007, Welspun Gujarat was included in the National Stock Exchanges’ derivatives segment.
Batliboi soared 10.25% to Rs 168.90 after the company fixed 4 October 2007 as the record date for the purpose of stock split from the present face value of Rs 10 to Rs 5 each.
Lupin advanced 2.39% to Rs 608 on reports the company had won a patent challenge against King Pharmaceuticals and Sanofi-Aventis over blood pressure drug Altace, in US.
West Coast Paper Mills declined 3.25% to Rs 454.30 after it went ex-dividend for a dividend of Rs 15 per share from today, 13 September 2007. It has face value of Rs 10 each.
Siemens India rose 0.29% to Rs 1270 after it acquired balance 26% equity stake in Siemens Industrial Turbomachinery Services, Bangalore (SITS) on 7 September 2007. With this acquisition, SITS has become its 100% subsidiary of Siemens. SITS specializes in the service, repair and overhaul of small gas turbines and rotating equipments.
Banco Products India surged 8.82% to Rs 151.20 after it scheduled a meeting of the board of directors to on 26 September 2007 to consider sub-division of the face value of the equity shares.
ABG Shipyard rose 3.48% to Rs 620 on the back of company's plan to revive ailing Western India Shipyard. Western India Shipyard jumped 5% to Rs 18.90. ABG Shipyard's board has considered and approved the company's involvement in the proposal for revival and rehabilitation of Western India Shipyard (WISL) in terms of a scheme of compromise and arrangement between WISL and its secured lenders with ABG as a confirming party.
Gujarat Alkalies & Chemicals moved up 2.57% to Rs 143.60 on reports the company plans to spend Rs 500 crore for taking up new projects and adding power generation capacity.
Diamond Cables jumped 4.41% to Rs 362.20 after its unit received an order for supply of 2750 transformers. These orders will be executed by company's wholly owned subsidiary Diamond Power Transformers (DPT) before 31 March 2008.
Suzlon Energy advanced 3.30% to Rs 1379 on its plans to invest about 1 billion euro ($1.4 billion) to nearly triple its production capacity by 2009. The expansion plan would raise Suzlon’s turbine production capacity in India from the present 2,700 megawatt (MW) to 5,700 MW by the close of fiscal March 2009, reports suggest.
Most of the European markets were trading lower. United Kingdom (down 0.03% to 6,304.50), France (down 0.19% to 5,497.55), and Germany (down 0.31% to 7,449.77), declined.
Asian markets were trading higher. Japan's Nikkei (up 0.15% at 15,836.27), Hang Seng (up 0.93% at 24,537.07), Seoul Composite (up 1.90% to 1,848.02), and Shanghai Composite (up 1.95% to 5,273.92) gained.
However, Taiwan Weighted (down 1.01% at 8,927.42) and Straits Times (down 0.05% to 3,504.40) slipped
US shares settled slightly lower yesterday, 12 September 2007 with investors still confident the Federal Reserve will lower rates next week but treading cautiously as oil prices crossed $80 a barrel for the first time and the dollar extended its decline. The Dow Jones industrial average fell 16.74 points, or 0.13%, to 13,291.65, after weaving in and out of positive territory throughout the session. The Standard & Poor's 500 index rose 0.07 point, or less than 0.01%, to 1,471.56, and the Nasdaq Composite index fell 5.40 points, or 0.21%, to 2,592.07.
India's industrial output rose 7.1% in July 2007 from a year earlier, sharply lower than downwardly revised annual growth of 9% in June 2007 due to slower manufacturing output, data showed on Wednesday, 12 September 2007. Manufacturing production rose 7.2% in July 2007 from a year earlier, compared with provisional annual growth of 10.6% in June 2007.
Crude oil prices dipped on Thursday, 13 September 2007, but held near $80 a barrel and the previous day's record high, as dealers watched a tropical storm in the Gulf of Mexico after a sharp fall in U.S. crude stocks. US crude was trading 23 cents lower at $79.68 a barrel, after hitting a record high of $80.18 yesterday, 12 September 2007. London Brent crude shed 9 cents to $77.59 a barrel.
Power Grid Corp’s IPO subscribed 64 times
The Initial Public Offering (IPO) of the state-owned power transmission company, Power Grid Corporation of India Ltd. (PGCIL) got subscribed 64.23 times on the last day of the issue backed by good response from the institutional investors. As of 5 pm on Thursday, PGCIL received bids for 36.8 billion shares against its equity issue size of 573.9 million shares. The price band of the 100 per cent book built issue was fixed in the range of Rs 44-52 per share by the company.
PGCIL offered to sell its 382.6 million new shares while the government of India offered to offload 191.3 million shares. The company has planned to reserve 13.98 million shares for eligible employees and the net offer to the public will be 559.9 million shares. The shares on offer will thus account for 13.6 per cent of PGCIL’s fully diluted post-issue paid up capital and the stake of the government of India is expected to decrease to 86.3 per cent from 100 per cent currently.
PGCIL’s fund raising is to part finance its capital expenditure. India’s transmission sector needs investment worth Rs 70,000 crores during the 11th five-year plan ending in 2012 as laid out by the planning commission. Most of India’s inter-state and inter-regional power transmission systems are currently owned and operated by PGCIL. The company owned and operated 61,875 km long electrical lines and 106 electrical substations in India. During the fiscal year 2006-07, PGCIL transmitted around 298 billion units power in India.
PGCIL offered to sell its 382.6 million new shares while the government of India offered to offload 191.3 million shares. The company has planned to reserve 13.98 million shares for eligible employees and the net offer to the public will be 559.9 million shares. The shares on offer will thus account for 13.6 per cent of PGCIL’s fully diluted post-issue paid up capital and the stake of the government of India is expected to decrease to 86.3 per cent from 100 per cent currently.
PGCIL’s fund raising is to part finance its capital expenditure. India’s transmission sector needs investment worth Rs 70,000 crores during the 11th five-year plan ending in 2012 as laid out by the planning commission. Most of India’s inter-state and inter-regional power transmission systems are currently owned and operated by PGCIL. The company owned and operated 61,875 km long electrical lines and 106 electrical substations in India. During the fiscal year 2006-07, PGCIL transmitted around 298 billion units power in India.
Ranbaxy suffers partial setback in Lipitor case
In a partial setback for Ranbaxy Laboratories in its ongoing patent row with Pfizer over cholesterol lowering drug Lipitor, a Canadian court has ruled that it infringed one of the US pharma major’s patent. Pfizer said that the Canadian Federal Court has ruled Ranbaxy’s process for making their proposed generic atorvastatin product would infringe the firm’s patent covering a crystalline form of atorvastatin — the active ingredient of the drug. The ruling will prevent Ranbaxy from launching its generic version of Lipitor in Canada till the patent expires in July 2016.
The court, however, turned down Pfizer’s application for a prohibition order in connection with another patent for atorvastatin. The court asked the Canadian health ministry not to issue a Notice of Compliance to launch the product until the expiry of the contested Pfizer patent in July 2016, it said. Separately, Ranbaxy said in a statement it would contest the ruling and remained confident of its position. “Ranbaxy was successful in Norway on a similar issue regarding extraterritorial coverage of a patent, other than a process patent, outside of the country in which the patent is issued,” the Gurgaon-based firm said. The court also dismissed Pfizer’s application to deny issuance of an NoC as regards to Pfizer’s atorvastatin patent CA 2,220,455, finding that Pfizer failed to meet its burden of showing that Ranbaxy’s allegation of invalidity was not justified.
The court, however, turned down Pfizer’s application for a prohibition order in connection with another patent for atorvastatin. The court asked the Canadian health ministry not to issue a Notice of Compliance to launch the product until the expiry of the contested Pfizer patent in July 2016, it said. Separately, Ranbaxy said in a statement it would contest the ruling and remained confident of its position. “Ranbaxy was successful in Norway on a similar issue regarding extraterritorial coverage of a patent, other than a process patent, outside of the country in which the patent is issued,” the Gurgaon-based firm said. The court also dismissed Pfizer’s application to deny issuance of an NoC as regards to Pfizer’s atorvastatin patent CA 2,220,455, finding that Pfizer failed to meet its burden of showing that Ranbaxy’s allegation of invalidity was not justified.
Gammon denies insurance claim
Gammon India on Thursday said that it had not claimed insurance for the portion of the flyover under construction which collapsed last Sunday in Hyderabad. Company sources said that “we have not claimed for insurance. There is no question of claiming insurance.” A news channel had said that their claim for insurance had been rejected. A company source said that it was only one span, a small portion that had caved in.
The company has insurance for Rs 30 crores. The insurance company ICICI Lombard did not wish to comment on the issue on grounds of “client confidentiality.” But it said that there were exclusion clauses in a typical general contractor all risk (CAR) policy. The spokesperson said it is a general contract and is available on their website.
According to the CAR an insurance claim can be rejected if there is a design defect or wilful negligence on the part of the contractor or a faulty workmanship. If one of these reasons is there, insurance claims can be rejected. The reasons for the collapse is still a matter of investigation so it is too early to say whether any of the three reasons could apply in this case.
The company has insurance for Rs 30 crores. The insurance company ICICI Lombard did not wish to comment on the issue on grounds of “client confidentiality.” But it said that there were exclusion clauses in a typical general contractor all risk (CAR) policy. The spokesperson said it is a general contract and is available on their website.
According to the CAR an insurance claim can be rejected if there is a design defect or wilful negligence on the part of the contractor or a faulty workmanship. If one of these reasons is there, insurance claims can be rejected. The reasons for the collapse is still a matter of investigation so it is too early to say whether any of the three reasons could apply in this case.
Novelis venture affects Hindalco issuer ratings
Hindalco’s acquisition of the US-based Novelis funded largely by borrowings and the large capital expenditure (capex) plans that the company has drawn up has been cited as reason by Fitch Ratings to downgrade Hindalco Industries Ltd’s (Hindalco) national long-term issuer rating and the ratings of its Rs 500 crore non-convertible debenture programme. The outlook on the ratings is stable.
Fitch has simultaneously affirmed the company’s Rs 250 crore commercial paper/ short-term debt programme at ‘F1+(ind)’. The agency said that its rating downgrades factor in the large debt-funded acquisition of Novelis and the large capex plans drawn out by the company. The rating action reflects additional debt of $3.03billion, guaranteed by Hindalco, to finance the acquisition and its substantial expansion plans.
The Novelis acquisition, undertaken through a special purpose vehicle (SPV), was financed through $0.45bn of equity, $3.03billion of 18-month bridge loan in the SPV guaranteed by Hindalco, and the refinancing of $2.5billion worth of debt and bonds presently on the books of Novelis without recourse to Hindalco. Based on this rating methodology, the legal and operational linkages remain weak, although the strategic imperative for the acquisition remains. Fitch says that it has consequently treated the two entities as separate, and Hindalco’s ratings remain independent of Novelis at the moment.
Fitch notes that Hindalco currently does not have access to Novelis’ cash flows to support the guaranteed debt. The company also plans to finalise the long-term refinancing of the bridge loan by November 2008. Any refinancing benefiting Hindalco (i.e. more debt on Novelis) could act as a positive rating trigger. The rating action also factors in Hindalco’s aggressive Rs 370 billion capex plan over FY08-14, with the majority of the investment to be incurred over FY09-FY11.
This includes the entire investment in Utkal Alumina post Hindalco’s acquisition of the remaining 45 per cent stake in the project. The company will raise additional equity of around Rs 37 billion through the residual portion of the rights issue, and the recently concluded preferential allotment to the sponsors over the next 12 months.
Fitch has simultaneously affirmed the company’s Rs 250 crore commercial paper/ short-term debt programme at ‘F1+(ind)’. The agency said that its rating downgrades factor in the large debt-funded acquisition of Novelis and the large capex plans drawn out by the company. The rating action reflects additional debt of $3.03billion, guaranteed by Hindalco, to finance the acquisition and its substantial expansion plans.
The Novelis acquisition, undertaken through a special purpose vehicle (SPV), was financed through $0.45bn of equity, $3.03billion of 18-month bridge loan in the SPV guaranteed by Hindalco, and the refinancing of $2.5billion worth of debt and bonds presently on the books of Novelis without recourse to Hindalco. Based on this rating methodology, the legal and operational linkages remain weak, although the strategic imperative for the acquisition remains. Fitch says that it has consequently treated the two entities as separate, and Hindalco’s ratings remain independent of Novelis at the moment.
Fitch notes that Hindalco currently does not have access to Novelis’ cash flows to support the guaranteed debt. The company also plans to finalise the long-term refinancing of the bridge loan by November 2008. Any refinancing benefiting Hindalco (i.e. more debt on Novelis) could act as a positive rating trigger. The rating action also factors in Hindalco’s aggressive Rs 370 billion capex plan over FY08-14, with the majority of the investment to be incurred over FY09-FY11.
This includes the entire investment in Utkal Alumina post Hindalco’s acquisition of the remaining 45 per cent stake in the project. The company will raise additional equity of around Rs 37 billion through the residual portion of the rights issue, and the recently concluded preferential allotment to the sponsors over the next 12 months.
Ambanis outperform Sensex
As equity markets inch ahead to regain the lost ground since late July, lady luck seems to be favouring the two Ambani brothers with most of their companies scaling new peaks in the past two days that took their collective market value above the pre-meltdown levels. While the market’s benchmark index BSE Sensex is still more than 250 points away from its all-time peak of 15,868.85 hit on July 24, after which the downslide began, the shares of the companies belonging to Mukesh and Anil Ambani groups — barring Reliance Communications and Reliance Industrial Infrastructure Ltd — are trading above their July 24 levels.
The cumulative market capitalisation of all these companies has soared well past the level recorded on July 24. Except for Reliance Communications and RIIL, all the Reliance shares — Reliance Industries, Reliance Petroleum and IPCL of Mukesh Ambani group and Reliance Capital, Reliance Energy and Reliance Natural Resources Ltd of Anil Ambani group — have reached their life-time highs in past two sessions. Reliance Capital has gained about 13 per cent in two days, while six others have gained about two per cent each.
The SC has allowed REL to bid for the Rs 2,600 crores Mumbai sea link project, while the government has approved RIL’s pricing formula for sale of KG gas. In the past two trading sessions, the investors’ wealth in these eight companies has increased by about Rs 13,500 crores, according to data available with the BSE. The collective market capitalisation of all the eight companies today soared to Rs 5,29,000 crores, representing a gain of nearly Rs 27,000 crores over the level recorded on July 24.
The cumulative market capitalisation of all these companies has soared well past the level recorded on July 24. Except for Reliance Communications and RIIL, all the Reliance shares — Reliance Industries, Reliance Petroleum and IPCL of Mukesh Ambani group and Reliance Capital, Reliance Energy and Reliance Natural Resources Ltd of Anil Ambani group — have reached their life-time highs in past two sessions. Reliance Capital has gained about 13 per cent in two days, while six others have gained about two per cent each.
The SC has allowed REL to bid for the Rs 2,600 crores Mumbai sea link project, while the government has approved RIL’s pricing formula for sale of KG gas. In the past two trading sessions, the investors’ wealth in these eight companies has increased by about Rs 13,500 crores, according to data available with the BSE. The collective market capitalisation of all the eight companies today soared to Rs 5,29,000 crores, representing a gain of nearly Rs 27,000 crores over the level recorded on July 24.
Wednesday, September 12, 2007
IT shares lead fall
The market saw trend reversal from initial firmness to end in the red. The sentiment turned nervous ahead of a key meeting of the government with left parties on the Indo-US nuclear deal. The market had opened on an upbeat note tracking steady global markets. A bout of volatility was witnessed in the second half of the day’s trading. Domestic market underperformed its global peers today.
The BSE 30-share Sensex shed 54.06 points or 0.35% at 15,542.77. It opened higher at 15,668.40 and advanced further to hit a high of 15,698.98. The index touched a low of 15,506.10.
At the day's low of 15,506.10, the Sensex had lost 90.73 points for the day. At the day’s high, the Sensex had gained 102.15 points for the day. It oscillated in a band of 192.88 points for the day.
The BSE Sensex is 326.08 points away from its all time high of 15,868.85 hit on 24 July 2007.
The S&P CNX Nifty was down 10.80 points or 0.24% at 4,497.05. The Nifty September 2007 futures settled at 4488.20, a discount of 8.85 points as compare to spot closing.
The panel set up by the government to look into the Left Front's concerns over the Indo-US nuclear deal is holding its first meeting today, 11 September 2007. While the operationalisation of the deal has been put on hold pending the findings of the panel, it cannot be stalled forever. A flashpoint may come sooner or later.
The four Communist parties have 60 members of parliament (MPs) in the 545-member lower house of parliament. Prime Minister Manmohan Singh's government could fall or be reduced to a minority if the Left withdraws support.
Yet, analysts reckon that political turmoil arising from nuke deal will not impact India’s basic economic fundamentals though some infrastructure projects may get delayed. India’s economy is expected to post strong growth for a long period of time mainly due to favourable demographics.
The market breadth was positive on BSE, with 1,410 shares advancing as compared to 1,356 that declined, while 65 remained unchanged. The breadth was much stronger in morning trade when 1231 shares had risen, 241 had declined and 30 were unchanged.
The BSE Mid-Cap index slipped 0.13% to 6,875.74, while the BSE Small-Cap index gained 0.17% to 8,529.09. Both these indices outperformed the Sensex.
The BSE Mid-Cap index hit an all-time high of 6,950.58, and the BSE Small-Cap index struck a lifetime high of 8,610.97 earlier during the day.
Sectoral indices on BSE displayed mixed trend. The BSE Oil and Gas Index (up 0.01% at 8,260.71), BSE Consumer Durables index (up 0.21% to 4,557.89), BSE Realty index (up 0.01% to 7,531.79), BSE PSU index (up 0.56% to 7,368.52), BSE Metal Index (up 1.43% at 11,772.22), BSE Capital Goods Index (up 0.44% at 13,714.26) and BSE FMCG Index (up 0.62% at 2,098.05) outperformed the Sensex.
However, the BSE Auto Index (down 0.67% at 4,867.41), BSE Bankex (down 0.77% at 8,038.07), BSE Health Care Index (down 0.46% at 3,703.82), BSE TecK index (down 1.41% to 3,554.38), and BSE IT Index (down 2.19% at 4,470.56) were underperformers.
The total turnover on BSE amounted to Rs 4935 crore as compared to Rs 4047 crore on Monday, 10 September 2007. The NSE F&O turnover was Rs 41739.52 crore as compared to Rs 37333.48 crore on Monday, 10 September 2007.
From 30-member Sensex pack, 20 declined while the rest gained.
IT pivotals edged lower for the second day in a row today after data released on Friday, 7 September 2007, showed US payrolls shrank in August 2007 for the first time in four years, raising fears that the world's largest economy was headed into a recession.
India’s third largest software services exporter Wipro was the top loser from the Sensex pack. It slipped 2.44% to Rs 455.550 on 1.86 lakh shares.
Other IT pivotals Satyam Computers (down 2.32% to Rs 432), Infosys Technologies (down 2.33% to Rs 1828), and TCS (down 2% to Rs 1026) also declined. IT companies derive over 50% of their revenue from exports from the US markets
The Indian rupee was trading slightly firm at 40.60 against the US dollar. It had settled at 40.65/66 yesterday, 10 September 2007.
The BSE IT index lost 4.22% to 4,570.89 to 10 September 2007 from its close of 4,774.13 on 10 August 2007.
Auto stocks declined on profit booking. Tata Motors (down 1.54% to Rs 691.85), Maruti Udyog (down 1.96% to Rs 859.10), and Mahindra & Mahindra (down 0.73% to Rs 696.10) dipped.
NTPC, the nation's top power generation company in terms of revenue, advanced 2.30% to Rs 195.50 on 17.20 lakh shares. It struck an all time high of Rs 197.50 in intra-day trade. It was the top gainer from the Sensex pack. As per reports, the power ministry has sought waiver of new external commercial borrowings (ECB) norms for the power sector to allow it to use funds raised abroad for rupee expenditure.
India’s largest dedicated mortgage finance firm by revenue Housing Development Corporation (HDFC) advanced 1.98% to Rs 2145.10. HDFC struck an all-time high of Rs 2153 in intra-day trade.
World’s sixth largest steel producer in terms of total steel production Tata Steel gained 2.16% to Rs 708 on reports that it is looking at building a 5-million tonne steel plant in South Africa.
Engineering companies Larsen & Toubro (up 0.48% to Rs 2590.10) and Bhel (up 1.22% to Rs 1912) were the other gainers from the Sensex pack
India’s largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) slipped from an all-time high of Rs 2007 struck in early trade. It declined 0.34% to Rs 1980.40 on 6 lakh shares.
As per reports, RIL has warned that fresh bidding for the price of natural gas produced from the Krishna Godavari’s-D6 fields could lead to market distortion and cartelisation. RIL claims that the bidding process followed by RIL (that discovered the gas price of $4.33 per million British thermal unit) was a transparent and legally-complete process in line with the provisions of the production sharing contract with the government.
Among side counters, Gulf Oil Corporation (up 17.28% to Rs 1275), Neyveli Lignite Corporation (up 10.09% to Rs 93.25), CCL Products (up 11.74% to Rs 264.05), Birla Kennametal (up 10% to Rs 299.95), and Zenith Birla (up 20% to Rs 42.40) surged.
SEL Manufacturing (down 5.60% to Rs 135.70), JRG Securities (down 6.64% to Rs 53), Bombay Burmah Trading Corporation (down 5.77% to Rs 525), Manugraph Industries (down 4.68% to Rs 123.25), and Emkay Shares & Stock Brokers (down 8.04% to Rs 142.40) slipped.
Motilal Oswal Financial Services settled at Rs 977.45 on the BSE, a premium of 18.47% over IPO price of Rs 825. On BSE, 37.19 lakh shares of the scrip were traded. The scrip had debuted at Rs 999 on BSE. It also hit a high and low of Rs 999 and Rs 913 respectively. The IPO of Motilal Oswal Financial Services had ended on 20 August 2007 with 27.41 times subscription.
Jindal Steel & Power jumped 4.87% to Rs 4150 on reports that the Bolivian parliament had approved a joint venture with the Indian company to develop iron ore mines and set up a steel plant in the country. The Bolivian government is also exploring ways and means to disburse an initial funding for the joint venture (JV) company, Empresa Siderurgica del Mutun.
IFCI rose 4.37% to Rs 77.70 on reports that US-based private equity group Blackstone is likely to join the race to acquire a 26% stake in the firm. Reportedly, Blackstone could come in as a standalone strategic investor or as the lead partner in a consortium.
Nitco Tiles gained 4.05% to Rs 238.90 on reports that firm has forayed into import and distribution of cement and is importing 1 million tonnes (MT) of cement from Pakistan. Nitco is importing through the MMTC, the nodal agency for importing cement from foreign companies, reports suggest.
Rallis India advanced 3.08% to Rs 325 on reports of that it is in the race to acquire the world’s largest privately held crop protection and life sciences firm, Arysta LifeScience Corporation, from private equity firm Olympus Capital Holdings.
United Phosphorus, which is also in the race to acquire Arysta LifeScience Corporation gained 1.81% to Rs 345. These two Indian companies are among the six contenders for the Tokyo-based firm, reports suggest. The acquisition is expected to cost nearly $2 billion (Rs 8,200 crore), or nearly double Arysta's turnover of 124.1 billion yen (Rs 4,400 crore) last year. Arysta is a leading crop protection and life sciences firm.
Shipping Corporation of India rose 2.20% to Rs 197.10 after Baltic Exchange's dry freight index, gauging the strength of the seaborne dry commodities trade, set a record for a fourth consecutive week on Monday, 10 September 2007, on surging raw materials demand and port congestion.
Modern Dairies jumped 5% at Rs 150.90 ahead of its record date for issuing bonus shares. Modern Dairies has fixed 1 October 2007 as record date for issuing bonus shares, in the ratio of 1:1 (1 bonus share for every 1 equity share held).
Blue Dart Express jumped 2.49% to Rs 622 on it plans to invest about Rs 1000 crore in the short- to medium-term to expand its air infrastructure. The company will expand its aircraft fleet, add material handling equipment and ramp up ground handling facilities.
Private equity firm IL&FS Investment Managers rose 3.87% to Rs 174.25 after the company said after market hours on Monday, 10 September 2007, it has tied up with Milestone Capital Advisors to raise up to Rs 1000 crore through a real-estate fund.
Idea Cellular rose 0.61% to Rs 123.20 after its board approved a proposal to spin off its telecom towers business into a subsidiary.
Nagarjuna Construction Company rose 2.20% to Rs 219.75 after the company during trading hours today, 11 September 2007, announced it had bagged new orders totaling Rs 272 crore.
Cairn India, a unit of Cairn Energy Plc, rose 0.80% to Rs 158 after the company said during trading hours today, 11 September 2007, it had received approval from the Indian government granting access to land for building a pipeline from Rajasthan state.
Jaiprakash Hydro-Power slipped 3.41% to Rs 49.50 after the National Stock Exchange of India (NSE) barred further F&O positions in the underlying as 95% of market wide limit was reached yesterday, 10 September 2007. Market-wide position limit for derivative contracts is the lower of 30 times the average number of shares traded daily, during the previous calendar month, in the relevant underlying security in the underlying segment (cash market segment) or 10% of the number of shares held by non-promoters in the relevant underlying security.
Moser Baer (India) gained 1.49% to Rs 308.95 after it announced its foray in computer peripherals market with the launch of its optical disk drive (ODD), a combo drive and DVD writer.
All the European markets, which opened after the Indian markets, were trading higher. Key benchmark indices in London (up 1.52% to 6,227.60), Germany (up 1.12% to 7,458.35) and France (up 1.47% to 5,465.61) edged higher.
Asian markets settled mixed today, 11 September 2007. Japan's Nikkei (up 0.71% at 15,877.67), Taiwan's Taiwan Weighted (up 0.73% at 9,003.12) and Singapore's Straits Times (up 1.53% points at 3,494.57) gained.
However, Shanghai Composite (down 4.51% to 5,113.96) and Hang Seng (down 0.20% at 23,9522.24), slipped.
US shares finished a volatile session with small gains yesterday, 10 September 2007 as investors grappled with the possibility that the Federal Reserve might not lower interest rates as much as they hope. The Dow Jones industrial average rose 14.47 points, or 0.11%, to 13,127.85. Broader stock indexes fell. The Standard & Poor's 500 index slipped 1.85 points, or 0.13%, to 1,451.70, and the Nasdaq Composite index declined 6.59 points, or 0.26%, to 2,559.11.
Crude oil prices surged to near a record high on Tuesday, 11 September 2007, after attacks on oil and natural gas pipelines rocked the world's fifth largest crude producer Mexico, ahead of an OPEC meeting to determine production policy. US light crude rose 40 cents to $77.89 a barrel and is now near its record high of $78.77 hit on 1 August 2007. London Brent crude rose 36 cents to $75.84.
The BSE 30-share Sensex shed 54.06 points or 0.35% at 15,542.77. It opened higher at 15,668.40 and advanced further to hit a high of 15,698.98. The index touched a low of 15,506.10.
At the day's low of 15,506.10, the Sensex had lost 90.73 points for the day. At the day’s high, the Sensex had gained 102.15 points for the day. It oscillated in a band of 192.88 points for the day.
The BSE Sensex is 326.08 points away from its all time high of 15,868.85 hit on 24 July 2007.
The S&P CNX Nifty was down 10.80 points or 0.24% at 4,497.05. The Nifty September 2007 futures settled at 4488.20, a discount of 8.85 points as compare to spot closing.
The panel set up by the government to look into the Left Front's concerns over the Indo-US nuclear deal is holding its first meeting today, 11 September 2007. While the operationalisation of the deal has been put on hold pending the findings of the panel, it cannot be stalled forever. A flashpoint may come sooner or later.
The four Communist parties have 60 members of parliament (MPs) in the 545-member lower house of parliament. Prime Minister Manmohan Singh's government could fall or be reduced to a minority if the Left withdraws support.
Yet, analysts reckon that political turmoil arising from nuke deal will not impact India’s basic economic fundamentals though some infrastructure projects may get delayed. India’s economy is expected to post strong growth for a long period of time mainly due to favourable demographics.
The market breadth was positive on BSE, with 1,410 shares advancing as compared to 1,356 that declined, while 65 remained unchanged. The breadth was much stronger in morning trade when 1231 shares had risen, 241 had declined and 30 were unchanged.
The BSE Mid-Cap index slipped 0.13% to 6,875.74, while the BSE Small-Cap index gained 0.17% to 8,529.09. Both these indices outperformed the Sensex.
The BSE Mid-Cap index hit an all-time high of 6,950.58, and the BSE Small-Cap index struck a lifetime high of 8,610.97 earlier during the day.
Sectoral indices on BSE displayed mixed trend. The BSE Oil and Gas Index (up 0.01% at 8,260.71), BSE Consumer Durables index (up 0.21% to 4,557.89), BSE Realty index (up 0.01% to 7,531.79), BSE PSU index (up 0.56% to 7,368.52), BSE Metal Index (up 1.43% at 11,772.22), BSE Capital Goods Index (up 0.44% at 13,714.26) and BSE FMCG Index (up 0.62% at 2,098.05) outperformed the Sensex.
However, the BSE Auto Index (down 0.67% at 4,867.41), BSE Bankex (down 0.77% at 8,038.07), BSE Health Care Index (down 0.46% at 3,703.82), BSE TecK index (down 1.41% to 3,554.38), and BSE IT Index (down 2.19% at 4,470.56) were underperformers.
The total turnover on BSE amounted to Rs 4935 crore as compared to Rs 4047 crore on Monday, 10 September 2007. The NSE F&O turnover was Rs 41739.52 crore as compared to Rs 37333.48 crore on Monday, 10 September 2007.
From 30-member Sensex pack, 20 declined while the rest gained.
IT pivotals edged lower for the second day in a row today after data released on Friday, 7 September 2007, showed US payrolls shrank in August 2007 for the first time in four years, raising fears that the world's largest economy was headed into a recession.
India’s third largest software services exporter Wipro was the top loser from the Sensex pack. It slipped 2.44% to Rs 455.550 on 1.86 lakh shares.
Other IT pivotals Satyam Computers (down 2.32% to Rs 432), Infosys Technologies (down 2.33% to Rs 1828), and TCS (down 2% to Rs 1026) also declined. IT companies derive over 50% of their revenue from exports from the US markets
The Indian rupee was trading slightly firm at 40.60 against the US dollar. It had settled at 40.65/66 yesterday, 10 September 2007.
The BSE IT index lost 4.22% to 4,570.89 to 10 September 2007 from its close of 4,774.13 on 10 August 2007.
Auto stocks declined on profit booking. Tata Motors (down 1.54% to Rs 691.85), Maruti Udyog (down 1.96% to Rs 859.10), and Mahindra & Mahindra (down 0.73% to Rs 696.10) dipped.
NTPC, the nation's top power generation company in terms of revenue, advanced 2.30% to Rs 195.50 on 17.20 lakh shares. It struck an all time high of Rs 197.50 in intra-day trade. It was the top gainer from the Sensex pack. As per reports, the power ministry has sought waiver of new external commercial borrowings (ECB) norms for the power sector to allow it to use funds raised abroad for rupee expenditure.
India’s largest dedicated mortgage finance firm by revenue Housing Development Corporation (HDFC) advanced 1.98% to Rs 2145.10. HDFC struck an all-time high of Rs 2153 in intra-day trade.
World’s sixth largest steel producer in terms of total steel production Tata Steel gained 2.16% to Rs 708 on reports that it is looking at building a 5-million tonne steel plant in South Africa.
Engineering companies Larsen & Toubro (up 0.48% to Rs 2590.10) and Bhel (up 1.22% to Rs 1912) were the other gainers from the Sensex pack
India’s largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) slipped from an all-time high of Rs 2007 struck in early trade. It declined 0.34% to Rs 1980.40 on 6 lakh shares.
As per reports, RIL has warned that fresh bidding for the price of natural gas produced from the Krishna Godavari’s-D6 fields could lead to market distortion and cartelisation. RIL claims that the bidding process followed by RIL (that discovered the gas price of $4.33 per million British thermal unit) was a transparent and legally-complete process in line with the provisions of the production sharing contract with the government.
Among side counters, Gulf Oil Corporation (up 17.28% to Rs 1275), Neyveli Lignite Corporation (up 10.09% to Rs 93.25), CCL Products (up 11.74% to Rs 264.05), Birla Kennametal (up 10% to Rs 299.95), and Zenith Birla (up 20% to Rs 42.40) surged.
SEL Manufacturing (down 5.60% to Rs 135.70), JRG Securities (down 6.64% to Rs 53), Bombay Burmah Trading Corporation (down 5.77% to Rs 525), Manugraph Industries (down 4.68% to Rs 123.25), and Emkay Shares & Stock Brokers (down 8.04% to Rs 142.40) slipped.
Motilal Oswal Financial Services settled at Rs 977.45 on the BSE, a premium of 18.47% over IPO price of Rs 825. On BSE, 37.19 lakh shares of the scrip were traded. The scrip had debuted at Rs 999 on BSE. It also hit a high and low of Rs 999 and Rs 913 respectively. The IPO of Motilal Oswal Financial Services had ended on 20 August 2007 with 27.41 times subscription.
Jindal Steel & Power jumped 4.87% to Rs 4150 on reports that the Bolivian parliament had approved a joint venture with the Indian company to develop iron ore mines and set up a steel plant in the country. The Bolivian government is also exploring ways and means to disburse an initial funding for the joint venture (JV) company, Empresa Siderurgica del Mutun.
IFCI rose 4.37% to Rs 77.70 on reports that US-based private equity group Blackstone is likely to join the race to acquire a 26% stake in the firm. Reportedly, Blackstone could come in as a standalone strategic investor or as the lead partner in a consortium.
Nitco Tiles gained 4.05% to Rs 238.90 on reports that firm has forayed into import and distribution of cement and is importing 1 million tonnes (MT) of cement from Pakistan. Nitco is importing through the MMTC, the nodal agency for importing cement from foreign companies, reports suggest.
Rallis India advanced 3.08% to Rs 325 on reports of that it is in the race to acquire the world’s largest privately held crop protection and life sciences firm, Arysta LifeScience Corporation, from private equity firm Olympus Capital Holdings.
United Phosphorus, which is also in the race to acquire Arysta LifeScience Corporation gained 1.81% to Rs 345. These two Indian companies are among the six contenders for the Tokyo-based firm, reports suggest. The acquisition is expected to cost nearly $2 billion (Rs 8,200 crore), or nearly double Arysta's turnover of 124.1 billion yen (Rs 4,400 crore) last year. Arysta is a leading crop protection and life sciences firm.
Shipping Corporation of India rose 2.20% to Rs 197.10 after Baltic Exchange's dry freight index, gauging the strength of the seaborne dry commodities trade, set a record for a fourth consecutive week on Monday, 10 September 2007, on surging raw materials demand and port congestion.
Modern Dairies jumped 5% at Rs 150.90 ahead of its record date for issuing bonus shares. Modern Dairies has fixed 1 October 2007 as record date for issuing bonus shares, in the ratio of 1:1 (1 bonus share for every 1 equity share held).
Blue Dart Express jumped 2.49% to Rs 622 on it plans to invest about Rs 1000 crore in the short- to medium-term to expand its air infrastructure. The company will expand its aircraft fleet, add material handling equipment and ramp up ground handling facilities.
Private equity firm IL&FS Investment Managers rose 3.87% to Rs 174.25 after the company said after market hours on Monday, 10 September 2007, it has tied up with Milestone Capital Advisors to raise up to Rs 1000 crore through a real-estate fund.
Idea Cellular rose 0.61% to Rs 123.20 after its board approved a proposal to spin off its telecom towers business into a subsidiary.
Nagarjuna Construction Company rose 2.20% to Rs 219.75 after the company during trading hours today, 11 September 2007, announced it had bagged new orders totaling Rs 272 crore.
Cairn India, a unit of Cairn Energy Plc, rose 0.80% to Rs 158 after the company said during trading hours today, 11 September 2007, it had received approval from the Indian government granting access to land for building a pipeline from Rajasthan state.
Jaiprakash Hydro-Power slipped 3.41% to Rs 49.50 after the National Stock Exchange of India (NSE) barred further F&O positions in the underlying as 95% of market wide limit was reached yesterday, 10 September 2007. Market-wide position limit for derivative contracts is the lower of 30 times the average number of shares traded daily, during the previous calendar month, in the relevant underlying security in the underlying segment (cash market segment) or 10% of the number of shares held by non-promoters in the relevant underlying security.
Moser Baer (India) gained 1.49% to Rs 308.95 after it announced its foray in computer peripherals market with the launch of its optical disk drive (ODD), a combo drive and DVD writer.
All the European markets, which opened after the Indian markets, were trading higher. Key benchmark indices in London (up 1.52% to 6,227.60), Germany (up 1.12% to 7,458.35) and France (up 1.47% to 5,465.61) edged higher.
Asian markets settled mixed today, 11 September 2007. Japan's Nikkei (up 0.71% at 15,877.67), Taiwan's Taiwan Weighted (up 0.73% at 9,003.12) and Singapore's Straits Times (up 1.53% points at 3,494.57) gained.
However, Shanghai Composite (down 4.51% to 5,113.96) and Hang Seng (down 0.20% at 23,9522.24), slipped.
US shares finished a volatile session with small gains yesterday, 10 September 2007 as investors grappled with the possibility that the Federal Reserve might not lower interest rates as much as they hope. The Dow Jones industrial average rose 14.47 points, or 0.11%, to 13,127.85. Broader stock indexes fell. The Standard & Poor's 500 index slipped 1.85 points, or 0.13%, to 1,451.70, and the Nasdaq Composite index declined 6.59 points, or 0.26%, to 2,559.11.
Crude oil prices surged to near a record high on Tuesday, 11 September 2007, after attacks on oil and natural gas pipelines rocked the world's fifth largest crude producer Mexico, ahead of an OPEC meeting to determine production policy. US light crude rose 40 cents to $77.89 a barrel and is now near its record high of $78.77 hit on 1 August 2007. London Brent crude rose 36 cents to $75.84.
ICICI not interested in foreign banks
ICICI Bank, the country’s biggest private lender, does not see any merit in acquiring a foreign bank at the moment and prefers to grow through the organic route in the domestic market. "Organic growth is the better way for us to grow further. We are an Indian bank and for boosting domestic operations we do not need to tie-up with foreign banks. Other than deep pockets, what can they bring for us," ICICI Bank managing director and CEO K.V. Kamath said in an interview to PTI.
"Foreign banks do not bring anything on the table except large capital. On the technology front we have everything at par with the best of them. We have the right skill set also. Why should we need to go for an acquisition?" he said. If anything was needed for boosting the bank’s growth, it was more branches. "Branch licensing needs to be liberalised in the country," he said. "There are immense opportunities in the Indian market. Even foreign banks are coming here because of huge gro-wth potential in the banking space," Mr Kamath said, replying to a query
"Foreign banks do not bring anything on the table except large capital. On the technology front we have everything at par with the best of them. We have the right skill set also. Why should we need to go for an acquisition?" he said. If anything was needed for boosting the bank’s growth, it was more branches. "Branch licensing needs to be liberalised in the country," he said. "There are immense opportunities in the Indian market. Even foreign banks are coming here because of huge gro-wth potential in the banking space," Mr Kamath said, replying to a query
iPhones sale crosses 1m
Sales of iPhones crossed the one million mark on Monday even while Apple was taking criticism for its sudden price cut which made early buyers look like fools. The protests were so loud that Apple CEO Steve Jobs apologised to iPhone users in an open letter and promised a discount of $100 to all those who bought iPhones in the last two weeks before the company cut the price by $200. More than 2,70,000 iPhones were sold by Apple in the first 24 hours after they were released with much fanfare on June 29. Many Apple fans camped overnight in front of stores to buy the instrument. “Our early customers trusted us, and we must live up to that trust,” said Mr Jobs in the open letter, responding to hundreds of protest mails.
Health science market set to boom in India
Since two new-born babies die every minute in India because of the genetic disorders, the genetic screening segment of the health science equipments and technology market is expected to reach Rs 5,000 crores turnover by 2010.
PerkinElmer Inc. (USA) chairman and CEO Gregory L. Summe said: "Around 20 per cent of the world’s infants are born in India every year. Two new-born babies die every minute in India because of the genetic disorders and hence, the turnover of genetic screening segment of the health science sector is expected to reach Rs 5,000 crores within the span of three years. The factors like rapid urbanisation of society, the growth of corporate hospital culture in the country and the boom in the Indian pharma sector are responsible for boosting the growth of the health science equipments and technology market."
PerkinElmer India president Jai Shankar said: "Ironically, terrorist activities in India have created a huge demand for the portable health science technology equipments that can easily sense and warn the presence of explosive materials in the crowded areas. Over a period of time, the sale of such security devices is expected to increase in India."
PerkinElmer Inc. (USA) chairman and CEO Gregory L. Summe said: "Around 20 per cent of the world’s infants are born in India every year. Two new-born babies die every minute in India because of the genetic disorders and hence, the turnover of genetic screening segment of the health science sector is expected to reach Rs 5,000 crores within the span of three years. The factors like rapid urbanisation of society, the growth of corporate hospital culture in the country and the boom in the Indian pharma sector are responsible for boosting the growth of the health science equipments and technology market."
PerkinElmer India president Jai Shankar said: "Ironically, terrorist activities in India have created a huge demand for the portable health science technology equipments that can easily sense and warn the presence of explosive materials in the crowded areas. Over a period of time, the sale of such security devices is expected to increase in India."
US, India join hands to work on fuel tech
A delegation of entrepreneurs from India and the US on Tuesday decided to work together in energy and environmental technology sector with emphasis on low-cost energy efficient fuel to mitigate climate change threats. Mr Prodipto Ghosh, member of PM’s Council on climate change and Ficci chairman, said there was a huge potential in Indian waste recycling industry, which has helped in a significant way in reducing greenhouse gas emission. Mr Ghosh said that major energy using sectors have become more efficient over the past 20 years.
Mr K.G. Duleep, managing director of transportation, energy and environmental analysis emphasised on promotion of new "mild" hybrid technology for the transport sector. "New mild hybrid technology concept is very useful for typical Indian driving conditions where congestion is very high," he said. The participants also took the opportunity to express their unhappiness over subsidising the power sector. Mr Phiroze J. Nagarvala, country manager, Bechtel Group questioned the Centre’s role in giving farmers subsidy in the power sector and called for sustainable development.
Mr K.G. Duleep, managing director of transportation, energy and environmental analysis emphasised on promotion of new "mild" hybrid technology for the transport sector. "New mild hybrid technology concept is very useful for typical Indian driving conditions where congestion is very high," he said. The participants also took the opportunity to express their unhappiness over subsidising the power sector. Mr Phiroze J. Nagarvala, country manager, Bechtel Group questioned the Centre’s role in giving farmers subsidy in the power sector and called for sustainable development.
20 firms get Sebi rap for violation of clause 49
The Securities and Exchange Board of India (Sebi) has finally got tough with those firms which did not comply with the Clause 49 norms. On Tuesday it initiated adjudication proceedings against a total of 20 companies from the private sector and the public sector. Of the 20, five companies are public sector companies against whom proceedings have been launched for non-compliance with provisions relating to the composition of the board. The remaining 15 companies are in the private sector.
Sebi chairman M. Damodaran in his trademark gentle but acerbic wit said, "there was serious criticism against Sebi that it was only barking and not biting. I think we barked long enough and needed to bite." Clause 49 is meant to protect shareholders. The composition of the board with independent directors, signing of accounts, constitution of committees — everything in the governance framework is meant to protect investors.
In the action taken on Tuesday proceedings have been initiated against three of the 15 private sector companies for non-compliance with almost all the major provisions of Clause 49; against two companies for non-compliance with provisions like board/audit committee composition and Ceo/Cfo certification; while for the balance 10 companies, proceedings have been initiated for non-submission of compliance reports on Clause 49 to the stock exchanges.
The regulator declined to give the names of the companies involved. It said that some companies may have a valid reason for non-compliance so it would not be fair. It said that at this stage it wanted to "send a signal to errant companies that they will have to face penalty if they do not comply with the requirements of corporate governance." Sebi wa-nts firms to be aware that they should take the implementation of clause 49 seriously in letter and spirit.
Sebi chairman M. Damodaran in his trademark gentle but acerbic wit said, "there was serious criticism against Sebi that it was only barking and not biting. I think we barked long enough and needed to bite." Clause 49 is meant to protect shareholders. The composition of the board with independent directors, signing of accounts, constitution of committees — everything in the governance framework is meant to protect investors.
In the action taken on Tuesday proceedings have been initiated against three of the 15 private sector companies for non-compliance with almost all the major provisions of Clause 49; against two companies for non-compliance with provisions like board/audit committee composition and Ceo/Cfo certification; while for the balance 10 companies, proceedings have been initiated for non-submission of compliance reports on Clause 49 to the stock exchanges.
The regulator declined to give the names of the companies involved. It said that some companies may have a valid reason for non-compliance so it would not be fair. It said that at this stage it wanted to "send a signal to errant companies that they will have to face penalty if they do not comply with the requirements of corporate governance." Sebi wa-nts firms to be aware that they should take the implementation of clause 49 seriously in letter and spirit.
Tuesday, September 11, 2007
Corporation Bank to form JV with LIC for credit cards
Mangalore-based Corporation Bank on Thursday said it will form a joint venture company with LIC and GE Money to foray into credit card business. A Memorandum of Understanding with LIC to this effect was signed by GE Money India, LIC Housing Finance Ltd and LIC Mutual Fund today to create a credit card company, Corporation Bank informed the Bombay Stock Exchange (BSE). The new venture would leverage the strengths of each company, it said. The parties aim to finalise the definitive agreements by end of October, it added.
Life insurance growth to double in five years
Management consultancy firm McKinsey has forecast that India’s life insurance industry will double in the next five years from $40 billion to $80-100 billion in 2012. This growth would improve the level of insurance penetration from 5.1% of gross domestic product to 6.2% in 2010-2012. India’s life insurance market has grown rapidly over the past six years, with new business premiums growing at over 40% per year.
Sensex settles a tad below 15,600
The market which opened on a weak note, recovered all the lost ground to post marginal gains, on strong buying in index pivotals, especially Reliance Industries. However IT pivotals stayed weak, on fears of US economy heading towards recession. The market breadth was strong on BSE in contrast to initial weakness.
The market had opened on a weak note following a sell-off in US stocks on Friday, 7 September 2007, after data showed US firms cut 4,000 jobs last month, the first such decline since August 2003.
The BSE 30-share Sensex rose 6.41 points or 0.04% at 15,596.83. It opened with a 176.84 points downward gap at 15,413.58 and slipped further to touch a low of 15,363.53. However, the index witnessed a sharp pull-back from lower levels to hit a high of 15,626.28
At the day's low of 15,363.53, the Sensex had lost 226.89 points for the day. At day’s high of 15,626.28, it had gained 35.86 points for the day. Sensex oscillated 262.75 points for the day
The BSE Sensex is now 272.02 points away from its all time high of 15,868.85 hit on 24 July 2007.
The S&P CNX Nifty was down 1.65 points or 0.04% at 4,507.85. The Nifty September 2007 futures settled at 4,500, a discount of 7.85 points as compared to spot closing
The market breadth was strong on BSE, with 1,682 shares advancing as compared to 1,083 that declined, while 58 remained unchanged. This is in sharp contract to that of opening session, when 827 shares declined, 570 rose and 31 remaining unchanged.
The BSE Mid-Cap Index rose 0.48% to 6,884.39, while the BSE Small-Cap Index gained 0.96% to 8,514.37. Both these indices outperformed the Sensex.
The BSE Small-Cap Index hit an all time high of 8,525.39 in intra-day trade today. From a recent low of 7424.39 on 23 August 2007 the BSE Small-Cap index rose 13.59% to 8433.52 on 7 September 2007.
The BSE Mid-Cap index is within striking distance from its all time high of 6,909.25 hit on 7 September 2007.
The total turnover on BSE amounted to Rs 4,026 crore as compared to Rs 4,890 crore on Friday, 7 September 2007. The NSE F&O turnover was Rs 37,333.48 crore as compared to Rs 38,666.44 crore on Friday, 7 September 2007.
Most of the sectoral indices on BSE posted gains. The BSE Oil and Gas Index (up 0.91% at 8,259.93), BSE Consumer Durables index (up 1.53% to 4,548.44), BSE Realty index (up 0.81% to 7,531.12), BSE PSU index (up 0.54% to 7,327.62), BSE Health Care Index (up 0.41% at 3,720.81), BSE Metal Index (down 0.03% at 11,606.05), BSE Capital Goods Index (up 0.30% at 13,654.29), BSE Auto Index (up 0.22% at 4,900.37), BSE Bankex (up 0.06% at 8,100.37), and BSE FMCG Index (up 1.88% at 2,085.10) outperformed the Sensex.
However, the BSE TecK index (down 1.01% to 3,605.36), and BSE IT Index (down 1.91% at 4,570.89) were underperformers.
From the 30-member Sensex pack, 16 gained while the rest slipped.
IT shares were weak on fears that the US economy may be headed into a recession. India’s top software services exporter by revenue TCS lost 2.97% to Rs 1045.30 on 2.72 lakh shares. It was the top loser from Sensex pack.
Other IT pivotals - Infosys Technologies (down 2.06% to Rs 1869.45), Wipro (down 2.45% to Rs 466.70), and Satyam Computers (down 1.39% to Rs 443.50) - declined. IT firms derive over 50% of their revenue from exports to the US.
From a recent low of 4294.86 on 21 August 2007, the BSE IT index had risen 8.49% to 4659.70 on 7 September 2007.
The Indian rupee recovered from an initial fall that was caused by fears about a reversal in risk appetite after weak US job data triggered a sell-off in Asian equity markets. Rupee was hovering at 40.64, a bit stronger than Friday (7 September 2007)’s close of 40.6875/6975.
Oil & Natural Gas Corporation (ONGC), the country’s largest oil exploration company by market capitalisation, slipped 2.20% to Rs 832. It went Rs 13 per share ex-dividend from today. ONGC’s shares have face value of Rs 10 each.
ICICI Bank (down 0.76% to Rs 912), HDFC (down 1.65% to Rs 2095) and Hindalco Industries (down 1.56% to Rs 154.50) were the other losers from Sensex pack.
India’s largest cigarette manufacturer ITC advanced 3.80% to Rs 184.60 on 15.44 lakh shares. It was the top gainer from the Sensex pack. As per recent reports, after getting approval from the shipping ministry, Kolkata Port Trust (KoPT) may give land to ITC for expanding its existing cigarette factory
Cement stocks Ambuja Cements (up 2.82% to Rs 144) and Grasim (up 0.93% to Rs 3212) edged higher on fresh buying.
India’s third largest pharma company by revenue Ranbaxy Laboratories gained 2.21% to Rs 418.95. World Health Organisation (WHO) has included the company's three drugs for treatment of AIDS in its pre-qualification list. With the new additions, 15 Anti Retroviral (ARV) products of the company are now in the WHO's pre-qualification list.
NTPC, the nation’s largest power generation company, rose 2.48% to Rs 191.80. The stock hit a record high of Rs 192. As per reports, NTPC is in talks with established players to manufacture power plant equipment.
India’s largest private sector company by market capitalisation and oil refiner Reliance Industries (RIL) staged a sharp recovery from day’s low of Rs 1945. It rose 1.27% to Rs 1986.45 on 6.19 lakh shares. It is now at a striking distance of its all-time high of Rs 1999.30 hit on 5 September 2007. RIL today, 10 September 2007, reached an agreement to acquire assets of Hualon, a leading polyester producer in Malaysia. This acquisition will bestow RIL with more than 7% global market share in polyester fibre and yarn.
Auto stocks rebounded from early lows on value buying. Tata Motors (up 0.79% to Rs 702, off its day’s low of Rs 683.05), Maruti Udyog (up 0.81% to Rs 879.95, off its day’s low of Rs 860), and TVS Motor Company (up 13.44% to Rs 73, off its day’s low of Rs 63.90) recovered from their lows.
Among side counters, Godawari Power & Ispat (up 10% to Rs 208.65), International Conveyors (up 10% to Rs 272.05), Parsoli Corporation (up 10% to Rs 56.10), Easun Reyrolle (up 10% to Rs 252.90), Artson Engineering (up 14.33% to Rs 53.50) and BPL (up 14.96% to Rs 68.40) surged.
Roto Pumps (down 8.17% to Rs 68), ITD Cementation (down 6.08% to Rs 455), and Freshtrop Fruits (down 6.43% to Rs 137.60) slumped.
IFCI topped the turnover chart on BSE notching turnover of Rs 164 crore followed by Reliance Industries (Rs 123 crore), Aptech (Rs 106 crore), Reliance Petroleum (Rs 74 crore) and State Bank of India (Rs 72.80 crore).
Brokerage shares hogged limelight on momentum buying ahead of listing of Motilal Oswal Financial Services (MOFS) on Tuesday, 11 September 2007. Emkay Shares & Stock Brokers (up 20% to Rs 154.85), JRG Securities (up 11% to Rs 56.40), Khandwala Securities (up 3.04% to Rs 47.40), Prime Securities (up 4.60% to Rs 100), India Infoline (up 9.79 to Rs 743) and Geojit Financial Services (up 7.12% to Rs 45.90) surged
MOFS fixed the IPO price at the top end of the Rs 725 - RS 825 per share price band. At the IPO price of Rs 825, PE works to 31.7 based on the consolidated year ended March 2007 EPS of Rs 26. The IPO closed on 20 August 2007 with 27.41 times subscription.
Gammon India plunged 8.92% to Rs 420 after an under-construction flyover it was constructing in Hyderabad collapsed yesterday, 9 September 2007. The collapse of the flyover could affect Gammon's ability to get new contracts.
Hindustan Zinc rose 0.11% to Rs 713.35. As per reports, it has lowered prices of the metal by Rs 2900, or 2.10% , to Rs 136300 a metric ton. Lead prices were also lowered by 1.2%, to Rs 137500 a ton.
Corporation Bank rose 0.93% to Rs 338 after it said it said after trading hours on Friday, 7 September 2007, it has sold its stake in the National Stock Exchange for Rs 35 crore.
Carborundum Universal gained 0.31% Rs 180.40 after it said after trading hours on Friday, 7 September 2007, it had acquired Russian firm Volzhsky Abrasive Works for $37 million. The company had announced the acquisition in June 2007.
Compressor maker Ingersoll Rand (India) rose 2.49% to Rs 353.50 after its board approved sale of its utility equipment business to South Korean firm Doosan Infracore for Rs 103 crore
Steel pipes and industrial tools maker Zenith Birla (India) rose 5.16% to Rs 35.65 after it said after trading hours on Friday, 7 September 2007, its board would meet on 14 September 2007 to consider spinning off its tool manufacturing division.
TRF rose 3.88% to Rs 1095 after it said before trading hours on Monday, 10 September 2007, its board has approved buying 51% stake in YORK Transport Equipment (Asia) PTE Ltd of Singapore for an undisclosed sum.
Electrosteel Castings rose 5.42% to Rs 471.95 after it fixed 24 September 2007 as the record date for the purpose of stock-split of equity shares to 10 shares of Re 1 in lieu of 1 equity share of Rs 10 each. The company made this announcement after market hours on Friday, 7 September 2007
Nagarjuna Fertilizers & Chemicals rose 1.89% to Rs 43.20 while Bongaigaon Refinery & Petrochemicals jumped 5.92% to Rs 59.95. National Stock Exchange said after trading hours on Friday, 7 September 2007, fresh positions cannot be created in the derivatives contracts of Nagarjuna Fertilizers & Chemicals and Bongaigaon Refinery & Petrochemicals. The ban in these two derivatives contracts is because the open interest has crossed 95% of the limit.
Aptech rose nearly 4.14% to Rs 380.70. Aptech said late on Friday, 7 September 2007, Bear Stearns & Co has sold 1 million shares or a 2.32% stake in the company to reduce its stake to 3.5%.
Kirloskar Brothers rose 0.1% to Rs 485 after the company said during trading hours today, 10 September 2007, it had acquired Gondwana Engineers for Rs 7.63 crore. Gondwana specialises in various water, sewage and effluent treatment plants.
Most of the European markets, which opened after Indian markets, were trading lower. Key benchmark indices in Germany (down 0.01% to 7,435.63) and France (down 0.05% to 5,527.51) declined. However United Kingdom’s FTSE 100 index rose up 0.05% to 6,194
Asian markets which opened before Indian markets, 10 September 2007, settled lower. Japan's Nikkei (down 2.22% at 15,764.94), Seoul Composite (down 2.60% to 1,835.58), Taiwan Weighted (down 0.89% to 8,937.58) and Straits Times (down 1.35% to 3,441.84) slipped.
However, Hang Seng (up 0.07% at 23,999.70) and China’s Shanghai Composite (up 1.48% to 5,355.09) rose after initial weakness.
US stocks tumbled on Friday, 7 September 2007, following weak job data. Dow Jones Industrial Average tanked 2,49.97 points, or 1.87%, to 13,113.38. The tech-laden Nasdaq Composite index lost 48.62 points, or 1.86%, to 2,565.70.
The Sensex rose 271.82 points, or 1.77%, to 15,590.42 in the week ended 7 September 2007. The S&P CNX Nifty was up 45.5 points, or 1.01%, to 4,518.60 in the week.
US light crude fell 15 cents to $76.55 a barrel while London Brent crude declined 17 cents to $74.90 a barrel today, 10 September 2007.
Meanwhile, a panel set up by the government to look into Left front's concerns over Indo-US nuclear deal is expected to hold its first meeting on Tuesday, 11 September 2007.
The market had opened on a weak note following a sell-off in US stocks on Friday, 7 September 2007, after data showed US firms cut 4,000 jobs last month, the first such decline since August 2003.
The BSE 30-share Sensex rose 6.41 points or 0.04% at 15,596.83. It opened with a 176.84 points downward gap at 15,413.58 and slipped further to touch a low of 15,363.53. However, the index witnessed a sharp pull-back from lower levels to hit a high of 15,626.28
At the day's low of 15,363.53, the Sensex had lost 226.89 points for the day. At day’s high of 15,626.28, it had gained 35.86 points for the day. Sensex oscillated 262.75 points for the day
The BSE Sensex is now 272.02 points away from its all time high of 15,868.85 hit on 24 July 2007.
The S&P CNX Nifty was down 1.65 points or 0.04% at 4,507.85. The Nifty September 2007 futures settled at 4,500, a discount of 7.85 points as compared to spot closing
The market breadth was strong on BSE, with 1,682 shares advancing as compared to 1,083 that declined, while 58 remained unchanged. This is in sharp contract to that of opening session, when 827 shares declined, 570 rose and 31 remaining unchanged.
The BSE Mid-Cap Index rose 0.48% to 6,884.39, while the BSE Small-Cap Index gained 0.96% to 8,514.37. Both these indices outperformed the Sensex.
The BSE Small-Cap Index hit an all time high of 8,525.39 in intra-day trade today. From a recent low of 7424.39 on 23 August 2007 the BSE Small-Cap index rose 13.59% to 8433.52 on 7 September 2007.
The BSE Mid-Cap index is within striking distance from its all time high of 6,909.25 hit on 7 September 2007.
The total turnover on BSE amounted to Rs 4,026 crore as compared to Rs 4,890 crore on Friday, 7 September 2007. The NSE F&O turnover was Rs 37,333.48 crore as compared to Rs 38,666.44 crore on Friday, 7 September 2007.
Most of the sectoral indices on BSE posted gains. The BSE Oil and Gas Index (up 0.91% at 8,259.93), BSE Consumer Durables index (up 1.53% to 4,548.44), BSE Realty index (up 0.81% to 7,531.12), BSE PSU index (up 0.54% to 7,327.62), BSE Health Care Index (up 0.41% at 3,720.81), BSE Metal Index (down 0.03% at 11,606.05), BSE Capital Goods Index (up 0.30% at 13,654.29), BSE Auto Index (up 0.22% at 4,900.37), BSE Bankex (up 0.06% at 8,100.37), and BSE FMCG Index (up 1.88% at 2,085.10) outperformed the Sensex.
However, the BSE TecK index (down 1.01% to 3,605.36), and BSE IT Index (down 1.91% at 4,570.89) were underperformers.
From the 30-member Sensex pack, 16 gained while the rest slipped.
IT shares were weak on fears that the US economy may be headed into a recession. India’s top software services exporter by revenue TCS lost 2.97% to Rs 1045.30 on 2.72 lakh shares. It was the top loser from Sensex pack.
Other IT pivotals - Infosys Technologies (down 2.06% to Rs 1869.45), Wipro (down 2.45% to Rs 466.70), and Satyam Computers (down 1.39% to Rs 443.50) - declined. IT firms derive over 50% of their revenue from exports to the US.
From a recent low of 4294.86 on 21 August 2007, the BSE IT index had risen 8.49% to 4659.70 on 7 September 2007.
The Indian rupee recovered from an initial fall that was caused by fears about a reversal in risk appetite after weak US job data triggered a sell-off in Asian equity markets. Rupee was hovering at 40.64, a bit stronger than Friday (7 September 2007)’s close of 40.6875/6975.
Oil & Natural Gas Corporation (ONGC), the country’s largest oil exploration company by market capitalisation, slipped 2.20% to Rs 832. It went Rs 13 per share ex-dividend from today. ONGC’s shares have face value of Rs 10 each.
ICICI Bank (down 0.76% to Rs 912), HDFC (down 1.65% to Rs 2095) and Hindalco Industries (down 1.56% to Rs 154.50) were the other losers from Sensex pack.
India’s largest cigarette manufacturer ITC advanced 3.80% to Rs 184.60 on 15.44 lakh shares. It was the top gainer from the Sensex pack. As per recent reports, after getting approval from the shipping ministry, Kolkata Port Trust (KoPT) may give land to ITC for expanding its existing cigarette factory
Cement stocks Ambuja Cements (up 2.82% to Rs 144) and Grasim (up 0.93% to Rs 3212) edged higher on fresh buying.
India’s third largest pharma company by revenue Ranbaxy Laboratories gained 2.21% to Rs 418.95. World Health Organisation (WHO) has included the company's three drugs for treatment of AIDS in its pre-qualification list. With the new additions, 15 Anti Retroviral (ARV) products of the company are now in the WHO's pre-qualification list.
NTPC, the nation’s largest power generation company, rose 2.48% to Rs 191.80. The stock hit a record high of Rs 192. As per reports, NTPC is in talks with established players to manufacture power plant equipment.
India’s largest private sector company by market capitalisation and oil refiner Reliance Industries (RIL) staged a sharp recovery from day’s low of Rs 1945. It rose 1.27% to Rs 1986.45 on 6.19 lakh shares. It is now at a striking distance of its all-time high of Rs 1999.30 hit on 5 September 2007. RIL today, 10 September 2007, reached an agreement to acquire assets of Hualon, a leading polyester producer in Malaysia. This acquisition will bestow RIL with more than 7% global market share in polyester fibre and yarn.
Auto stocks rebounded from early lows on value buying. Tata Motors (up 0.79% to Rs 702, off its day’s low of Rs 683.05), Maruti Udyog (up 0.81% to Rs 879.95, off its day’s low of Rs 860), and TVS Motor Company (up 13.44% to Rs 73, off its day’s low of Rs 63.90) recovered from their lows.
Among side counters, Godawari Power & Ispat (up 10% to Rs 208.65), International Conveyors (up 10% to Rs 272.05), Parsoli Corporation (up 10% to Rs 56.10), Easun Reyrolle (up 10% to Rs 252.90), Artson Engineering (up 14.33% to Rs 53.50) and BPL (up 14.96% to Rs 68.40) surged.
Roto Pumps (down 8.17% to Rs 68), ITD Cementation (down 6.08% to Rs 455), and Freshtrop Fruits (down 6.43% to Rs 137.60) slumped.
IFCI topped the turnover chart on BSE notching turnover of Rs 164 crore followed by Reliance Industries (Rs 123 crore), Aptech (Rs 106 crore), Reliance Petroleum (Rs 74 crore) and State Bank of India (Rs 72.80 crore).
Brokerage shares hogged limelight on momentum buying ahead of listing of Motilal Oswal Financial Services (MOFS) on Tuesday, 11 September 2007. Emkay Shares & Stock Brokers (up 20% to Rs 154.85), JRG Securities (up 11% to Rs 56.40), Khandwala Securities (up 3.04% to Rs 47.40), Prime Securities (up 4.60% to Rs 100), India Infoline (up 9.79 to Rs 743) and Geojit Financial Services (up 7.12% to Rs 45.90) surged
MOFS fixed the IPO price at the top end of the Rs 725 - RS 825 per share price band. At the IPO price of Rs 825, PE works to 31.7 based on the consolidated year ended March 2007 EPS of Rs 26. The IPO closed on 20 August 2007 with 27.41 times subscription.
Gammon India plunged 8.92% to Rs 420 after an under-construction flyover it was constructing in Hyderabad collapsed yesterday, 9 September 2007. The collapse of the flyover could affect Gammon's ability to get new contracts.
Hindustan Zinc rose 0.11% to Rs 713.35. As per reports, it has lowered prices of the metal by Rs 2900, or 2.10% , to Rs 136300 a metric ton. Lead prices were also lowered by 1.2%, to Rs 137500 a ton.
Corporation Bank rose 0.93% to Rs 338 after it said it said after trading hours on Friday, 7 September 2007, it has sold its stake in the National Stock Exchange for Rs 35 crore.
Carborundum Universal gained 0.31% Rs 180.40 after it said after trading hours on Friday, 7 September 2007, it had acquired Russian firm Volzhsky Abrasive Works for $37 million. The company had announced the acquisition in June 2007.
Compressor maker Ingersoll Rand (India) rose 2.49% to Rs 353.50 after its board approved sale of its utility equipment business to South Korean firm Doosan Infracore for Rs 103 crore
Steel pipes and industrial tools maker Zenith Birla (India) rose 5.16% to Rs 35.65 after it said after trading hours on Friday, 7 September 2007, its board would meet on 14 September 2007 to consider spinning off its tool manufacturing division.
TRF rose 3.88% to Rs 1095 after it said before trading hours on Monday, 10 September 2007, its board has approved buying 51% stake in YORK Transport Equipment (Asia) PTE Ltd of Singapore for an undisclosed sum.
Electrosteel Castings rose 5.42% to Rs 471.95 after it fixed 24 September 2007 as the record date for the purpose of stock-split of equity shares to 10 shares of Re 1 in lieu of 1 equity share of Rs 10 each. The company made this announcement after market hours on Friday, 7 September 2007
Nagarjuna Fertilizers & Chemicals rose 1.89% to Rs 43.20 while Bongaigaon Refinery & Petrochemicals jumped 5.92% to Rs 59.95. National Stock Exchange said after trading hours on Friday, 7 September 2007, fresh positions cannot be created in the derivatives contracts of Nagarjuna Fertilizers & Chemicals and Bongaigaon Refinery & Petrochemicals. The ban in these two derivatives contracts is because the open interest has crossed 95% of the limit.
Aptech rose nearly 4.14% to Rs 380.70. Aptech said late on Friday, 7 September 2007, Bear Stearns & Co has sold 1 million shares or a 2.32% stake in the company to reduce its stake to 3.5%.
Kirloskar Brothers rose 0.1% to Rs 485 after the company said during trading hours today, 10 September 2007, it had acquired Gondwana Engineers for Rs 7.63 crore. Gondwana specialises in various water, sewage and effluent treatment plants.
Most of the European markets, which opened after Indian markets, were trading lower. Key benchmark indices in Germany (down 0.01% to 7,435.63) and France (down 0.05% to 5,527.51) declined. However United Kingdom’s FTSE 100 index rose up 0.05% to 6,194
Asian markets which opened before Indian markets, 10 September 2007, settled lower. Japan's Nikkei (down 2.22% at 15,764.94), Seoul Composite (down 2.60% to 1,835.58), Taiwan Weighted (down 0.89% to 8,937.58) and Straits Times (down 1.35% to 3,441.84) slipped.
However, Hang Seng (up 0.07% at 23,999.70) and China’s Shanghai Composite (up 1.48% to 5,355.09) rose after initial weakness.
US stocks tumbled on Friday, 7 September 2007, following weak job data. Dow Jones Industrial Average tanked 2,49.97 points, or 1.87%, to 13,113.38. The tech-laden Nasdaq Composite index lost 48.62 points, or 1.86%, to 2,565.70.
The Sensex rose 271.82 points, or 1.77%, to 15,590.42 in the week ended 7 September 2007. The S&P CNX Nifty was up 45.5 points, or 1.01%, to 4,518.60 in the week.
US light crude fell 15 cents to $76.55 a barrel while London Brent crude declined 17 cents to $74.90 a barrel today, 10 September 2007.
Meanwhile, a panel set up by the government to look into Left front's concerns over Indo-US nuclear deal is expected to hold its first meeting on Tuesday, 11 September 2007.
Airtel gets global carrier licence
Bharti Airtel on Monday received a big boost for its global voice and data connectivity business, with the company getting the licence to operate its global carrier business in Singapore. Bharti Airtel (Singapore) Pte Ltd, a subsidiary of Bharti Airtel, on Monday said it has been awarded the facility-based operator (FBO) licence in Singapore, which will enable it to operate international carrier facilities from there.
Multiple cable systems such as Network i2i, SeMe-We4, Asia America Gateway, APCN2, EAC and C2C will aggregate at Singapore, making the island nation the inter-connection hub for Airtel traffic between India and over 90 countries around the world. This licence will support Airtel’s robust portfolio of international voice and data services, including private lines, Internet, MPLS, long distance, toll-free services, and mobile roaming, it said.
With the facility-based operator licence in Singapore, the company will be able to provide highly reliable services to its customers on its own infrastructure. Bharti Airtel will be set up a point of presence (PoP) in Singapore for cable interconnection at the landing station and another PoP for connectivity to telcos and local carriers. Then, it will be able to interconnect its cables with other service providers in Singapore to offer connectivity.
Bharti Airtel president, enterprise services, David Nishball said, "The FBO licence is an important step in meeting customers’ complete global communication needs." SingTel has a preferred partnership term with Airtel. It holds 31 per cent stake in Airtel. The company has two international landing stations in Chennai that connects two submarine cable systems — i2i to Singapore and SEA-ME-WE-4 to Europe.
Multiple cable systems such as Network i2i, SeMe-We4, Asia America Gateway, APCN2, EAC and C2C will aggregate at Singapore, making the island nation the inter-connection hub for Airtel traffic between India and over 90 countries around the world. This licence will support Airtel’s robust portfolio of international voice and data services, including private lines, Internet, MPLS, long distance, toll-free services, and mobile roaming, it said.
With the facility-based operator licence in Singapore, the company will be able to provide highly reliable services to its customers on its own infrastructure. Bharti Airtel will be set up a point of presence (PoP) in Singapore for cable interconnection at the landing station and another PoP for connectivity to telcos and local carriers. Then, it will be able to interconnect its cables with other service providers in Singapore to offer connectivity.
Bharti Airtel president, enterprise services, David Nishball said, "The FBO licence is an important step in meeting customers’ complete global communication needs." SingTel has a preferred partnership term with Airtel. It holds 31 per cent stake in Airtel. The company has two international landing stations in Chennai that connects two submarine cable systems — i2i to Singapore and SEA-ME-WE-4 to Europe.
XP costlier than Vista
A study commissioned by Microsoft says that the annual cost of running Windows Vista on mobile PCs was less than that of Windows XP. As per the study conducted by Wipro and GCR Custom Research, the total cost of ownership for Windows XP in a year was Rs 1,80,687 while that of Vista was Rs 1,55,882, a difference of about Rs 25,000. The resear-chers arrived at these estimates after taking into account annual costs of hardware, software, IT labour, and all other user costs. A Vista upgrade alone helps a user save Rs 10,291 per year because of security enhancements and hardware and software benefits. Microsoft is using the study results to further push Vista, which has had bad press in certain quarters since its release.
Centre to declare new FDI policy
The government will announce changes in foreign direct investment policy by the end of this month, focusing on sectors that generate maximum jobs, Union commerce and industry minister Kamal Nath said. "We are in the process of consultation between ministries, and I think in the course of this month the policy will be announced," he said. Mr Nath had earlier said that government is looking at how foreign direct investment can be used in generating employment. This would be the driving force of all policies, he had said.
Regarding government policy on growth of big domestic companies in retail, Mr Nath had said this issue need to be considered by ministry of consumer affairs. Sources said the commerce ministry is awaiting a report from economic think-tank ICRIER on the implications of foreign direct investment on small and retail traders.
The country received $11.4 billion foreign direct investment in January-June 2007, a 218 per cent jump over the same period last year. For the first quarter of the financial year 2007-08, the inflows were $4.9 billion against $1.7 billion, showing an increase of 185 per cent. In another development, dismissing reports of a delay in the announcement of duty-free and quota-free package to least developed countries, Mr Nath said the matter will soon be taken up by the Cabinet for clearance.
"There is no delay. There is a consultation process going on in the ministry. It will go next week to the Cabinet," Mr Nath said, adding that it could not be taken up by the Cabinet last week as he was not in the city. Arguing that the proposed package was "absolutely independent of World Trade Organisation talks," he said India had very old ties with the African countries, which would be major beneficiaries of the package.
At the World Trade Organisation, he said, India was waiting for the United States proposals on agriculture for progress in the ongoing talks at Geneva. Under the proposed package for least developed countries, the government is likely to allow duty-free and quota-free import of a host of products from countries in Africa, Asia and Latin America.
The package, which has been in the works for many months and has periodically been reviewed by Prime Minister Manmohan Singh, was listed on the agenda for cabinet meeting last week but was later deferred. The package in its original form entailed zero duty import of a host of industrial products and lower duty import of farm goods.
Regarding government policy on growth of big domestic companies in retail, Mr Nath had said this issue need to be considered by ministry of consumer affairs. Sources said the commerce ministry is awaiting a report from economic think-tank ICRIER on the implications of foreign direct investment on small and retail traders.
The country received $11.4 billion foreign direct investment in January-June 2007, a 218 per cent jump over the same period last year. For the first quarter of the financial year 2007-08, the inflows were $4.9 billion against $1.7 billion, showing an increase of 185 per cent. In another development, dismissing reports of a delay in the announcement of duty-free and quota-free package to least developed countries, Mr Nath said the matter will soon be taken up by the Cabinet for clearance.
"There is no delay. There is a consultation process going on in the ministry. It will go next week to the Cabinet," Mr Nath said, adding that it could not be taken up by the Cabinet last week as he was not in the city. Arguing that the proposed package was "absolutely independent of World Trade Organisation talks," he said India had very old ties with the African countries, which would be major beneficiaries of the package.
At the World Trade Organisation, he said, India was waiting for the United States proposals on agriculture for progress in the ongoing talks at Geneva. Under the proposed package for least developed countries, the government is likely to allow duty-free and quota-free import of a host of products from countries in Africa, Asia and Latin America.
The package, which has been in the works for many months and has periodically been reviewed by Prime Minister Manmohan Singh, was listed on the agenda for cabinet meeting last week but was later deferred. The package in its original form entailed zero duty import of a host of industrial products and lower duty import of farm goods.
Satyam makes Malaysia its largest offshore hub
Satyam Computer Services Ltd has announced the operation of its 500-seat Global Solutions Centre in Malaysia. The Malaysian facility has become Satyam’s largest presence outside India and employs about 300 IT engineers, mostly Malaysians who support Satyam’s Asean, Middle East and US customers.
Satyam chairman B. Ramalinga Raju said, "We consider this facility to be a significant part of Satyam’s commitment to multi-dimensional investments in Malaysia as an excellent alternative to India. We find the country attractive because of its advanced infrastructure, rich ICT talent pool, competitive cost environment and favourable business climate."
Satyam director and senior vice-president Virender Aggarwal said, "We plan to make Malaysia our largest software development hub outside India over the next few years. The strengthening of our operations is bolstering global delivery model and the international expansion plan of our company.
Satyam chairman B. Ramalinga Raju said, "We consider this facility to be a significant part of Satyam’s commitment to multi-dimensional investments in Malaysia as an excellent alternative to India. We find the country attractive because of its advanced infrastructure, rich ICT talent pool, competitive cost environment and favourable business climate."
Satyam director and senior vice-president Virender Aggarwal said, "We plan to make Malaysia our largest software development hub outside India over the next few years. The strengthening of our operations is bolstering global delivery model and the international expansion plan of our company.
Canara, HSBC and Oriental in JV on insurance
Canara Bank, HSBC Insurance (Asia-Pacific) Holdings Ltd and Oriental Bank of Commerce have signed a formal agreement to jointly establish a life insurance company in India by the name Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd.
Canara Bank, HSBC and Oriental Bank will hold 51 per cent, 26 per cent and 23 per cent stakes respectively in the new company. The new life insurance company will be capitalised at Rs 325 crores. HSBC, Canara Bank and Oriental Bank will contribute Rs 177 crores, Rs 102 crores and Rs 46 crores respectively.
Canara Bank chairman and MD M.B.N. Rao said, "The current insurance penetration in India is as low as five per cent of the country’s GDP. We are in a strong position to improve this figure since Canara Bank enjoys a wide network of branches and vast clientele base in India. The new company aims to introduce a variety of insurance products fulfilling the needs of the entire spectrum of people right from the high networth individuals to the farmers residing across rural belts of the country. We have also planned to offer micro insurance services for rural as well as the semi-urban population of India."
Oriental Bank of Commerce chairman and MD Alok K. Misra said, "Factors like low penetration of life insurance policies, a growing need for old age security, strong GDP growth and the steep rise in the savings rates in India indicate that the proposed new company is bound to reap the benefits emerging from this unique opportunity by offering tailor-made insurance products at very competitive prices. Oriental Bank of Commerce has already groomed a strong workforce of 900 employees to support the bank’s insurance business through its 1,380 core banking service outlets across the country." "CAGR from $16 billion currently to $60 billion within the span of three years," Mr Arya added.
Canara Bank, HSBC and Oriental Bank will hold 51 per cent, 26 per cent and 23 per cent stakes respectively in the new company. The new life insurance company will be capitalised at Rs 325 crores. HSBC, Canara Bank and Oriental Bank will contribute Rs 177 crores, Rs 102 crores and Rs 46 crores respectively.
Canara Bank chairman and MD M.B.N. Rao said, "The current insurance penetration in India is as low as five per cent of the country’s GDP. We are in a strong position to improve this figure since Canara Bank enjoys a wide network of branches and vast clientele base in India. The new company aims to introduce a variety of insurance products fulfilling the needs of the entire spectrum of people right from the high networth individuals to the farmers residing across rural belts of the country. We have also planned to offer micro insurance services for rural as well as the semi-urban population of India."
Oriental Bank of Commerce chairman and MD Alok K. Misra said, "Factors like low penetration of life insurance policies, a growing need for old age security, strong GDP growth and the steep rise in the savings rates in India indicate that the proposed new company is bound to reap the benefits emerging from this unique opportunity by offering tailor-made insurance products at very competitive prices. Oriental Bank of Commerce has already groomed a strong workforce of 900 employees to support the bank’s insurance business through its 1,380 core banking service outlets across the country." "CAGR from $16 billion currently to $60 billion within the span of three years," Mr Arya added.
Mexico eyes $10bn investment
Mexico is looking at $10 billion investments from India in the next five years, the head of a business delegation from the Latin American country said. "The government plans to increase Indian investment in Mexico to $10 billion within five years," Indo-Mexico Business Board, Mexico, chairman Luis Wertman said. Currently, Indian investment in the country stands at $3 billion "without any promotion", he said at an event ‘India-Mexico: Opportunities for Business’ jointly organised by industry bodies CII, Ficci and Assocham.
Mexico is looking at sectors like steel, automobile education, IT, pharmaceutical, tourism and infrastructure to draw investments. "We look forward to companies like Tata and Mahindra to invest in Mexico and are ready to provide all the facilities," Mr Luis added.
Mexico is also exploring options to invest in India. The country’s largest bread maker, Binbo and Gruma and other agro industries are looking at opportunities to step into the processed food segment in India. There is a need to boost the tourism sector in both the countries, Mr Luis said, adding that although millions of Indians go out of the country every year of which the maximum goes to the US, not even 5,000 visit Mexico, which is just a two-hour flight from New York.
He invited hospitality companies like Taj and Leela Hotels to invest in Mexico. India and Mexico also signed extradition treaty and two other pacts as Prime Minister Manmohan Singh and President Felipe Calderon Hinojosa held extensive talks to enhance bilateral relations in a wide range of areas. Improving trade and business relations was the focus of the discussions between Singh and Calderon, officials said.
Mexico is looking at sectors like steel, automobile education, IT, pharmaceutical, tourism and infrastructure to draw investments. "We look forward to companies like Tata and Mahindra to invest in Mexico and are ready to provide all the facilities," Mr Luis added.
Mexico is also exploring options to invest in India. The country’s largest bread maker, Binbo and Gruma and other agro industries are looking at opportunities to step into the processed food segment in India. There is a need to boost the tourism sector in both the countries, Mr Luis said, adding that although millions of Indians go out of the country every year of which the maximum goes to the US, not even 5,000 visit Mexico, which is just a two-hour flight from New York.
He invited hospitality companies like Taj and Leela Hotels to invest in Mexico. India and Mexico also signed extradition treaty and two other pacts as Prime Minister Manmohan Singh and President Felipe Calderon Hinojosa held extensive talks to enhance bilateral relations in a wide range of areas. Improving trade and business relations was the focus of the discussions between Singh and Calderon, officials said.
RIL to acquire assets of Hualon
Reliance Industries Ltd (RIL) will soon become the solution provider to the global textile industry. It has acquired Hualon of Malaysia which has a manufacturing capacity of half a million tonnes per annum of polyester. RIL on Monday said that it has reached an agreement with the receivers and managers of Hualon Corporation in Malaysia to acquire the assets of Hualon, a leading producer of polyester with a manufacturing capacity of half a million tonnes per annum along with downstream textile manufacturing capabilities in Nilai and Malacca in Malaysia.
The company said the acquisition of Hualon is subject to certain conditions and regulatory approvals. Mr Mukesh Ambani, chairman, RIL, said, "Reliance celebrates its silver jubilee in polyester business with the acquisition of Hualon, The integrated assets of Hualon will help RIL to strengthen its position in the entire textile value chain and RIL will graduate to become a solution provider to the global textile industry." The acquisition will be the second international one in the polyester sector of RIL after the successful takeover of Trevira in Germany in 2004.
The company said the acquisition of Hualon is subject to certain conditions and regulatory approvals. Mr Mukesh Ambani, chairman, RIL, said, "Reliance celebrates its silver jubilee in polyester business with the acquisition of Hualon, The integrated assets of Hualon will help RIL to strengthen its position in the entire textile value chain and RIL will graduate to become a solution provider to the global textile industry." The acquisition will be the second international one in the polyester sector of RIL after the successful takeover of Trevira in Germany in 2004.
Friday, September 7, 2007
Japan wants India to join talks with US, Australia
Japan wants India to join its security talks with Australia and the United States, a Japanese government official said, and insisted the dialogue was not meant to isolate China. US President George W Bush, Australian Prime Minister John Howard and his Japanese counterpart Shinzo Abe are to meet Saturday over breakfast for talks set to focus on security issues including North Korea and China. It will be the first time their nations' security dialogue has been at the level of leaders, a step-up that has irked Beijing. But while backing plans to hold the trilateral summit regularly, Tokyo is also urging its allies to let India join, said Mitsuo Sakaba, a spokesman for Foreign Minister Nobutaka Machimura. "India shares common interests -- liberalism and democracy -- with us," he told media, and all four countries should now get together to discuss "regional situations and what we can cooperate. "If we can hold such a forum regularly, it will contribute to peace and stability of the region," he added. Abe, during a visit last month to India, had already spoken of creating an "arc of freedom and prosperity" grouping the four nations. Saturday's three-way talks are being held on the margins of the Asia Pacific Economic Cooperation (APEC) forum in Sydney gathering 21 Pacific rim leaders. Sakaba sought to reassure Beijing the move was not provocative. "The trilateral talks are not directed at any specific countries," Sakaba said. "Although we have not received any official protest from China we are ready to explain about our stance to the Chinese side," he said. "The talks are just another step forward (toward) achieving stability and prosperity in the region." Besides the issue of regional security, climate change is likely to be high on the agenda, Sakaba said. APEC members remained deadlocked over a common statement on climate change to be issued by their leaders at the end of a weekend summit. Howard and Abe are expected to announce measures to cement their security cooperation, including peacekeeping operations, natural disaster measures and border security, another Japanese government official said. Japan and Australia are close US allies which supported the Iraq invasion, and the two nations signed a security pact in March. It was Tokyo's first such agreement with any country besides its main ally, the United States.
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