THE FINANCIAL EXPRESS - 30th September

Submitted by Group28 (sec-I) -
Umang Seth
Vasundhra Tyagi
Vaibhav Agarwal

BSE SENSEX 19956.34 -148.52
S&P CNX NIFTY 5991.30 -38.20


Alert, INDIA waits for Ayodhya ruling today• Prime Minister, Sonia Gandhi appeal for calm, Home Minister P. Chidambaram says country has moved on since 1992.
• The area around the building of the Lucknow bench of Allahabad High Court, which will pronounce the verdict at 3:30 pm on Thursday was declared a ‘no-access zone’
• Security of the 3 judges on the bench-Justices S.U. Khan, Sudhir Agarwal & D.V. Sharma has already been increased.
• U.P. Govt. has identified 25 districts as ‘sensitive’ & 19 others as ‘hyper-sensitive’.
• U.P. has sealed its borders with Nepal and Uttrakhand and also ordered closure of liquor and fire crackers shops today.

Talks are on with SBI for $11-billion infra fund : Montek
• The Govt. of India is in talks with SBI over an $11-billion fund as the company seeks to raise finances to build roads, ports and power plants.
• Montek Singh Ahluwalia , planning commission deputy chairman said- “we should be able to have an infrastructure debt fund announced somewhere in the beginning of the next year”.
• The government last year spent 6.5% of its gross domestic product on infrastructure, compared with about 11% by China, according to an Ernst & Young India report.
• PM Manmohan Singh last week allowed overseas investors to buy $5 billion more bonds with a 5 year maturity sold by infrastructure companies, boosting permitted foreign investment in corporate debentures to $20 billion.

Gold hits record high as markets eye more liquidity
• Spot Gold hit a record $ 1313.20
• US Gold futures of December delivery rose $ 2.60 an ounce to $ 1310.90
• Gold is flying because of concerns over a weakening dollar & prospect of quantitative earning.
• India is the biggest Gold consumer.
• Silver prices also increased making a 30 year high @ $22.00 an ounce
• Ratio of Gold to silver dropped below 60 for 1st time.
• Silver gaining 17% compared with Gold 5.4% climb

Satyam Merger to start in Mid November ; Loss at Rs 125 Crore• Tech Mahindra will start the merger process with Mahindra Satyam.
• Net loss of Rs 124.60 Cr. On net sales of Rs 5481 Cr. for F.Y 09-10.
• Merger process will start with Tech Mahindra approaching the High courts of Andhra Pradesh & Maharashtra, followed by a meeting with the accountants to decide on fair value & swap ratio.• Whole process can take up to 9-12 months.
• This marks the start of normalization of Mahindra Satyam.
• Tax payments and invoices were fictitious and inflated.

Tata Steel signs pacts to refinance loans in Europe
• Tata Steel is refinancing its European operations, TATA Steel UK holdings, a 100% indirect subsidiary of Tata steel limited.
• The New Financing structure is in two parts: A 5 year loan of around Euro 1.8 billion equivalent and a 7 year loan of Euro 1 billion equivalent revolving credit for working capital has been increased.
• The new facilities have been designed to achieve certain key financing and business objectives for the company.

Rupee rises to four-month high on record FII inflows
• Rupee rose to its strongest level in more than four months as overseas investors pumped record funds into local shares this year to benefit.
• The currency has gained 4.9% in September.
• Foreigners have invested a net Rs 83470 Cr. in Indian stock in 2010 by SEBI.
• The rupee also gained as an index that measures the dollar strength fell to a seven month low, signaling weaker demand for the greenback.

APRIL-JUNE BOP- Economist poll forecasts current account gap $12.4 billion
Problems we faced during the analysis:
• Page-6 - MFs hardsell SIPs as investors go for profit booking
• Page 13 - Bonds at 6 week high on interest rate outlook.