22nd October - FINANCIAL EXPRESS

Pallavi Vaish
Piyush Kant Mishra
Pradeep Kumar Saini
Section - I

HEADLINE NUMBER 1:-( RBI to pump in Rs12k cr through G-sec buyback)
According to my point of view , I wnt to summarise it , with the coal India share issue set to absorb more then Rs 15000 cr. From the market and the SBI bond issue another Rs 5000 cr. , the government on thirsday decided to pump in Rs. 12000 cr. Of into the system in phases. This is the second time in this year ,the government through the RBI has pushed in additional liquidity in the system. It had pushed Rs. 10,000 cr. In june . An RBI release stated it would repurchase government stock for Rs. 12000 cr. Through multi-security action using the multiple price method on oct. 25. liquidity is in short supply in the markets. It has one example given in the article , on Thursday , banks borrowed a sum of Rs. 72.945 cr from RBI's repo window. The government of India will auction bonds worth Rs. 11000 cr on friday. R k bakshi ,ED , Bank Of Baroda said that there was some liquidity crunch i9nto the system. However it will not have it's impact on the interest rate.
BNP Pribas plans to double India incom
BNP Pribas with exposure in various segments of India financial sectors plans to double it's revenues from country to 2% in the next five to 10 years. Indain operation currently contribute 1% to the total revenue for the bank s total global income. The bank also plan to set up a non-banking financial company in India.
TCS Q2 NET PROFIT RISES 32% AND BEATS INFOSYS AGAIN
WITH GROWH OF 11%
There is a double-dip recession in the US and it impacted the IT sector .
Tata consultancy services reported a net profit of Rs. 2169 cr in the second quarter ended september 2010 up by 32%.
It has a growth rate of 30.3%.
Revenues stood at Rs 9286 cr up 25% as compared to the corresponding quarter last year.
The board declares interim dividend of Rs 2.
TCS results came few days after Infosys Technologies year of year results came out with 13.2%
rise in it's due to profit which is Rs 1.737 cr for the quarter.
So, with increase in the profit firm had addition of 10,717 employees with gross adittion of 19,293.
SENSEX RISES 388 PTS. REGAIN 20K LEVEL
The BSE sensex was the best performer in asia in on thursday rallying nearly 2% for , foreign demand for a $3.5 bl. IPO by coal India reaffermed strong risk appetite . Advancing , shares out numbered declining ones in the ratio of 1.9:1 in the broder market on the moderate volume of 416 million.
SIP irons out market rate fluctuation from your investment
NASIPOR Systematic investment plan is way to invest in mutual funds at regularinterwals. In SIP method of investment , the invester has to invest a fixed amount in a particular mutual fund regularly, say monthely or quarterly. The minimum period of investment is one year and mutual funds are sold in units . Investor can purchase the units at market rate for a fixed amount .
However if the investor uses SIP to purchase the mutual fund, the number of units purchased on jan. 7 will be 20 . when the prices are rising, the total number of units purchased under SIP would be lesser
.If the market rates are falling , the investor will get a greater number of units for the same investment, If the market is relatively stable, the number of units purchase through daily SIP and monthly SIP will not very much.
Foreign Banks Pip PSBs in Ad Spends
Public sector banks were increased their total income this year.
Their is fall in the total income of foreign banks while expanding 1% more than PSBs.
The spending was negative for all the three sectors.
Foreign banks registered a total income of Rs 34,684crore this year against Rs 43,043crore in previous year with the decline of 19.4%.
The advertisement expanse for these banks were Rs 541crore this year against Rs 619 crore in tje previous year.
PSB earned total income of Rs 3.58lakh crore this year against Rs 3.17 lakh crore in the previous year.
The expense in advertisement were Rs 686 crore thi year against Rs 774 crore in the previous year.
In the private sector fall in expanses for ad also decrease in private sector i.e in ICICI,HDFC etc with few increase in income.
The ratio of advertisement expenditure to total income of foreign banks decreased to 1.56%,for PSBs 0.19% and for private 0.33% this year.