SUMMARY FINANCIAL EXPRESS: 28th Sep 2010

Section I: Aditya Sawant, Anirban Dutta, Akash Dewan.

Steel minister bats for PSU mine leases :
Steel minister Virbhadra Singh demanded that long term iron ore mining leases be alloted to public sector steel makers on preferential basis.In case of SAIL , the government is spending Rs. 80,000 crore for its capacity expansion and the modernization of plant. Most of this was approved in 2005 , so huge investment will be fruitful when government provide long- term guarantee for raw materials. Steel minister also suggests that SAIL should look outside the country for their supplies . Also he is not against the 26% profit sharing concept but mechanism need to work out by mines ministry.


NAC members blast execution of NREGA , Call it 'anti-labour':
Members of the National Advisory Council( NAC) Aruna Roy and Jean Dreze have accused the UPA government for increasing anti-labour. As per them “ Contractor mafia” is dominating and decreasing the potential of remunerative employment. The government attitude faded the gains of employment guarantee programme. The establishment of Rajiv Gandhi Seva Kendras leads to silent entry of contractor mafia into NREGA as ratio of material and labour was 9:1. also the major problem was under calculation of wages. As per NAC the provisions of employee act are sidelined in order to keep control. Non registration of workers union with number of questionable excuses makes matter worst.

PIOs will get to purchase property in India faster:
The government of India has decided to permit person of Indian Origin(PIO) to buy property in India without mandatory approval from RBI ( except PIOs from Pakistan and Bangladesh. It is also working for removing gender discrepancy as per FEMA. For Foreigners registration of property is not allowed. Since India is highest recipient of NRI remittance. So high investment by NRI can be possible by this step in order to generate high capital to finance various projects.

Yield on 1 yr T-bills hits 6.65%.
The yield on treasury bill(T-bill) has sore to 6.65% on Monday. The high borrowing from RBI. As per experts the rates will slightly come down if bank borrow small amount from liquidity adjustment facility(LAF) window. Meanwhile there was growth of .03% in Certificate of Deposits(CD) trading at 8.10%. and it will continue to move on as per experts. The long term yield were flat on monday and rates on one year government debt has increased by 1.97%.

RBI tightens rules for bank Finance against shares:
The RBI has tightened the rules for banks extending loans to promoters against shares. Also the restrictions against granting advances for financing promoters are extended and applicable to overseas branches/subsidiaries of Indian banks. But they can extend the financial assistance to Indian companies for acquisition of equity in overseas.

NTPC set to float Rs.18k-cr tender fos 800mw projects.:
NTPC expected to flat tender for Rs. 18K-cr contrat for the bulk supply of 800mw projects by december. The company is waiting for the approval from ministry. NTPC chairman Arup Roy Chaudhari said that NTPC similar tendering for the supply of 660mw super critical equipment is under a way.

Corus gets Tata Steel names, logo:
UK based subsidiary , europs second largetst steel producer Corus has changed its named to Tata steel on monday.



Private sector bank pip PSB peers in profit per employee:
From last 2 years it was found that the productivity of private banks was higher than nationalize banks. The avg profit per employee was higher (7.19lakh) than nationalize banks( 5.74 lakh). As per 2009-10 records Yes bank has highest productivity (15.75 lakh) while Bank of india has least ( 4.39 lakh) productivity.


Market Snapshot:
BSE: open: 20082.26 Closed: 20117.38
Nifty: Open:6018.30 Closed: 6035.65
Maximum Turnover : IT& ES sector (BSE) Banks ( NSE)

Imortant deals News:

1.Uniliver to buy Alberto For $3.7 billion:
Uniliver has agreed to buy Alberto Culver for $3.7 billion in cash. This is going to be companies biggest purchase in decades.

2.Wal-Marts likely to aquire Massmart in $4.2 bn deal.
Wal mart stores palns to buy Massmart Holdings for 29.8 billions rand. In this transaction it would added 290 stores in 13 African countries.