Business Line Summary- 12th October

Submitted by:
Ashish Bhola,
Section: F

6 Lakh investors exits Mutual funds Accounts.
• The total number of folios in the industry fell from 4.77 crore to 4.71 crore in September, a depletion of 1.2% according to the data.
• TOTAL COUNT: The mutual funds accounts saw a continuous decrease in last three to four months. July: 1.6 Lakh, August: 49,723, September: 5.8 Lakh. This is due to the stock market levels have consolidated at a high range to 2007 levels.
• TOP FUND HOUSES: Out of the five fund houses Birla Sun Life, ICICI Prudential, UTI and Reliance Capital assets management, HDFC is the only AMC has seen an increase of 40,999 in the month of September.
Microsoft unveils Windows Phone 7.
• Microsoft unveil new line of phones running its windows software on Monday, as it attempts to pull back market share from Apple and Google Android system
• Microsoft Cooperation unveils 9 new phones with the Windows Operating System.
• The windows phone software features a new design, the ability to take and post photos faster and connections to Facebook and Microsoft’s Xbox Live Game Service.

3 win Economics Nobel for ‘search theory’.
• Prof. Peter A. Diamond of the Massachusetts institute of Technology, Prof. Dale T. Mortensen of North Western University and Professor Christopher A. Pissarides of London School of Economics have been awarded the Nobel Prize in economics for 2010 for their work on “Search Theory”.
• Search Theory deals with the insight on optimal choices for labour markets is if employment benefits are too generous, people will delay accepting job offers.

Cairn India open offer price is final
• Cairn India minority shareholders hoping for a revision in the open offer price by Vedanta Group.
• Mr. Anil Agrawal, Chairman, today reiterated that there would be no change in the “lucrative price “that he had offered.
• As a part of acquisition Vedanta Group Company Sesa Goa had in august filed with the securities and exchange Board of India for making an open offer for 20% shares of Cairn India.
• Mr. Agarwal said that Vedanta has nothing to do with issue of royalty, since the company had already spelled out the same in the agreement between Cairn India and ONGC.

Tata Motors drives into crossover segment with Aria
• Tata Motors launched the Aria four-wheel crossover on Monday.
• It’s a seven-seater which combines the features of sedan and sports utility vehicle, has three variants.
• Tata Motors took 5 years the vehicle to develop the vehicle which comes with a global positioning system, climate control and darkness and rain sensing lights.
• Mr. Carl-Peter Forster, MD and CEO, said the new vehicle offers “a lot of soft SUV character”. Aria is designed according to European standards

Tata-DoCoMo to launch 3G services in Diwali
• Tata DoCoMo, the GSM unit of TATA teleservices will launch its Third Generation (3G) mobile services across nine circles starting this Diwali.
• With this customers will have access to high speed internet access and rich multimedia content and applications.
• Circles: The operators has spectrum in Delhi, Mumbai, Gujarat, TamilNadu, Haryana, Kolkata, West Bengal and U,P. Initially 3G will be available only in the top cities.
• Services: 3G mobile services is expected to bring a host of new applications and services like mobile TV, location based services, mobile health and mobile education on handsets.

Shriram Capital to offer home loans to lower income segment
• Shriram capital is looking to enter the home finance business by the next fiscal. This is natural extension for NBFC, which is currently present in commercial vehicles two wheelers, personal and gold loans.
• The company will target the lower income segment for home loans, and the ticket size could vary between Rs. 5lakh and Rs. 15lakh depending on the location.
• Shriram City Union, reported a net profit of Rs.49 crore in the June ended quarter.
• Total assets under management of the NBFC were Rs.5655 crore. It has 650 business outlets.

Crude oil falls towards $ 82
• Crude oil fell, snapping a 3-week rally that took prices to the highest levels since May.
• Oil dropped as the $ rebounded from an 8 month low against the Euro and if 15 year low versus the yen.