THE ECONOMIC TIMES 16th October

SECTION E

KIRTI SINHA

KRITI SINGHAL

KUSHAL SARRAF

1. SKS Microfinance drafts statement on Murthy's advise to explain sacking of CEO

· A series of events took place some weeks ago which turned controversial for the country’s largest microfinance company but also dragged the complete sector into the harsh media glare.

· A draft is prepared by the SKS management explaining the issue and it is circulated amongst the board members two days ago.

· VikramAkula , the SKS founder offered to silent critics of MFI’S by saying he is ready to lower lending rates by 2%.

· Even as the reasons for the unceremonious sacking of Hyderabad-based SKS Microfinance’s MD and CEO Suresh Gurumani continue to be shrouded in mystery, it now emerges that this is not the first time that India’s largest MFI has seen a change of guard in such an abrupt fashion.

2. 8 Popular drug prices slashed.

· Prices of famous drugs like cipla,sunpharma and Unichem is reduced by drug price regulator of the country.

· Up to 85% cut ,sharpest in past years.

· Ciplox TZ prices reduced from Rs.100.73 to Rs.25.7 i.e sharp 74% cut down.

· Popular burn ointment Silverex AV cream slashed by 85% to Rs.25 for 20gm tube.

· Spironolactone+Torsemide reduced its prices to Rs 21 and 24 for 10 tablet strips respectively.

3. Sumitomo to buy Suzlon Belgian unit

· Belgium based Hansen transmissions in which Indian wind turbine major Suzlon energy holds a 26% stake will sell its industrial gearbox making unit to Japan’s Sumitono Heavy industries in all cash transactions.

BREAKING NEWS OF THE DAY

· J&K interlocutors to get a year tenure

· Bihar MLAs' assets up 4-fold

· Speaker sullied Karnataka's image: Krishna

· Vodafone seeks HC cover after I-T dept calls co tax 'agent' for Hutch

· Barack Obama to visit locations of 26/11 terror attacks, stay at Taj

· BMW recalls 21,000 cars from China: State media

· Nepali teen becomes world's shortest man at 67 cm

· Pranab invokes 'MaaDurga' to check inflation

· MukeshAmbani ready to move into mansion in the sky

· Gush of dollars set to hit India as emerging mkts close gates

· Commonwealth Games: Mission accomplished 101%

BRANDS AND BUISENESS

South Korea’s E-land to buy Mudra lifestyle.

· South korea based $7 billion textile chain E-land is acquiring Mumbai based Mudra lifestyle.

· It’s a rare instance of foreign investment in India’s Textile sector.

· E-land group is a seoul based fashion and garment conglomerate with substancial presence in the fast growing Asian market.

· South Korean major has agreed to buy a minimum 51% stake in the company.

FINANCIAL MARKET

Market analysis of the day

FOREIGN MARKET

S&P500

1,171.30 (0.58%)

Nasdaq

2,429.94 (-0.46%)

FTSE100

5,727.21 (-0.35%)

Nikkei

9,583.51 (1.91%)

HSI

23,852.17 (1.68%)

INDIAN MARKET

SENSEX20,125.05 [- 372.59 (-1.82%)]

NIFTY6,062.65 [-114.70 (-1.86%) ]

1.Infosys Q2 net rises 16.7% to Rs 1,737 crore

· Infosys Technologies reported double-digit growth in its net profit for india's $50-billion outsourcing industry.

Net profit for the second quarter rose to Rs 1,737 crore, up 16.7% compared to the preceding June period.

The third biggest software exporter Wipro saw its shares drop by almost 3.58% to Rs 473.50 on Friday.

· Revenues in the year ending March 2011 will be between $5.95 billion-$6 billion, up 25.6% to 26.8% from the previous year.

A brewing mortgage crisis in the US banking sector is causing concerns. Looks healthier anddriven by stimulus money and low interest rates—overall, a ‘bandaged’ job.

2.Currency swings can put pressure on infy solutions

The current growth and perfomance shown by the infosys and other IT biggies such as TCS and WIPRO shows the increase in global IT spending against the double digit sequential topline growth of INFY’S.But these sectors can feel the pressure in near future due to uncertainity over currency movements and possible talent crunch.on Friday IT players reported a 10% sequential jump in revenue and one of the highest sequential jump in 12 quarters.infy has also increased its FY11 target for secodstraigt year they now want to recruit 40,000 employees and they started this year by hiring 30,000 employees this higher recruitment is basically to compensate for the loss of talent in the past.beside showing robustic growth INFY’S stock fell by 3.4% in a weak broader market.this mainly reflect future of rupee-dollar movement.considering INFY’S latest EPS (earning per share) guidance for FY11 and estimation of 25.5 P/E.given the recent jump in the stock and fluctuating currency movement ,it’s valuation may come under pressure in near term.

2.RBI rate hike seen after september inflation rises upto 8.62%

Marjinal rose in the inflation prompted C.Rangarajan an influential person in the government to urge action from central bank.the data that was released on Friday shows the increase in wholesale price index from 8.53% in august to 8.62% in september.the government already targeting 8-8.75% growth in this year and central bank already increased policy rates by 125 basis point and in they want 25 basis point increase in NOV 2 policy review.

3.LIC housing seeks to boost tier-II capital

LIC Housing Finance are considering to increase their tier-ii capital.basicaly it includes undisclosed reserves,hybrid instruments and subordinate term debt.there net profit icrease by 2.93% this quarter.three factors that influence there profitability is continuing growth of 36% in the loan book without any pressure,decline in non-performing assets and emphasis on borowing mix.

OPINIONS

1.CWG 2010 – HITS AND MISSES

· The chaotic run-up to the Commonwealth Games looked like a distant nightmare when the world went gaga over the spectacular opening ceremony and an equally dazzling closing event.

· While the capital scored on many fronts like managing traffic and extending hospitality to guests, it also faced many bitter experiences on the way.

· Almost everyone in delhi was loved the warm hospitality extended to them.

· The specially ordered Chanderiangvastrams stole was hit at merchandise stores.

· Delhi emerged as the culture capital during the games,offering daily dose of musical recite,dance performance and many exibitions and festivals. All had such a great response the extra tickets had to be sold.

· opinion poll in India's four biggest metros – Mumbai , Delhi, Kolkata and Chennai

HIT- 85%

POOR INFRASTRUCTURE – 33%

TRAFFIC CHAOS -30%

PRPEARED FOR OLYMPIC GAMES 2020 -82%

EDITORIALS

· Design: The new business mantra

· Logostics key to growth of retail

· Hands on diagonosis

· Growth in non-life insurance

· MF sector will adapt to Sebi norms.

· Yes!! We did it.