Economic Times - 1st October

SUBMITTED BY:
ANKIT ANKUSH KAPOOR
ANUP KALITA
SECTION: E

THE MOST AWAITED JUDGEMENT ::: THE AYODHYA VERDICT
The Allahabad High Court has ruled that the disputed land should be divided in three ways .The land has been divided between the Hindus and the Muslims in following ways:--
• One- third for the Waqf Board
• One-third for the Lord Ram’s idol (the portion allotted is below the central dome)
• The remaining to the Nirmohi Akhara
ITS IMPACT
THE Sunni Waqf Board doesn’t agree with this decision and it will appeal against it in the apex court as 90 days time is given to appeal as a matter of right .
ITS COMMENT
This verdict may not be the last word yet ,but it has managed to calm frayed nerves and bring a sense of relief .Most political parties said there were no Winners ,no losers…..it’s not a victory for anyone….

CORPORATE NEWS
• Mukesh to open Reliance chronicles
He is known to be a man of few words,but now he put his thoughts and business philosophy into words..The book authored by him is expected to hit the shelves early next fiscal.
• Sterlite moves apex court against HC order
Sterlite industries moved the Supreme Court against the Madras High Court order that directed the company to shut down its copper smelting plant at Tuticorin for not complying with the environmental norms.
It has claimed that the high court did not give it a proper hearing and ignored its submissions.
• Hindustan Motors draws up turnaround blueprint
This company is struggling with losses which wiped out more than half its net worth and is in talks with overseas car makers to take up contract manufacturing at its Chennai plant.
• JP Morgan PE to invest 160 crore in Mumbai Realty Project
JP Morgan’s PE arm will get around 26% stake in the project and the deal is likely to fetch 24-25% internal rate of return annually.
• Kingfisher will finalise debt rejig in a month
Vijay Mallya –led Kingfisher Airlines is expected to finalise the restructuring of its Rs.6000 crore debt in a month.

BUSINESS AND IT
• STANDARD CHARTERED Private Equity Ltd. is in talks to buy 49% stake in security services provider CHECKMATE Services.
• M HA has recently gave clean chit to RIM’S(Research In Motion)Interception Solution for Messaging Service.
• BS TRANSCOMM plans to provide green power solutions for telecom tower companies with solar and wind power solutions along with its existing fuel management solutions.
-- BS TRANSCOMM is an INFRASTRUCTURE and MANAGED SERVICES provider.
• Raghu Pillai will join the Future Group as Value Head.
Also, he has quit Mukesh Ambani’s Reliance Retail as president and CEO a couple of months ago.

• MAHINDRA and MAHINDRA has entered the motorcycle segment with the launch of two models –STALLIO and MOJO

• TATAS will spread RS.1.5 crore net for its premium car ARIA

ECONOMY ,FINANCE & MARKETS
• The government has cut interest subsidy by 50 bps offered to banks for providing short –term loans to farmers at low rates This move will affect the profitability of the lenders after a recent increase in deposits rates.
• Supreme Court has ruled that the banks are free to transfer their debts including non performing assets to other lenders which High Court Gujrat and apex court had prohibited earlier.
• Food inflation for the third successive week rose to 16.44% for the week ended September 19.
• Overall,inflation in primary articles rose to 18.31% from 16.80%
• Fiscal deficit falls 17% to Rs.1.5 crore in april-august
• India gives $500 million credit to Mozambique
Mozambique President—Armando Guebuza

• The US economy grew at 1.7% annual rate in the second quarter .GDP was forcast to grow at 1.6% annual pace .
• SAIL (Steel Authority Of India)could come out with its Follow On Public Offer as early as December.The company has already shortlisted six bankers including JP Morgan and Deutsche bank for managing the first of phase FPO.
• CHINA said that “a measure passed by the US House of representatives aimed at pushing up the value of the YUAN will hurt the global economy if it becomes law”.

• India two largest banks,State bank of India and Punjab National Bank have raised deposit rates for the second time in the past two months .SBI will offer 7.75% for special 1000-Day Scheme and PNB raises rates by 25 basis points.
• Country Foreign exchange reserves have risen by $3.7 billion during April-June 2010 against an increase of $0.1 billion during the same period a year ago .
• Government holding in IDFC has come down from strategic holding of 26% to 17.90%after capital infusion recently.
• Bharti AXA Life Insurance which is a joint venture between Bharti Enterprises and AXA Asia-Pacific Holdings will infuse Rs.450 crore capital this fiscal and is open to offloading a small portion of its stake to a bank as a part of a distribution tie-up.
• Orissa govt. is set to cancel mining lease of two companies::SN Das Mahapatra Ltd. and Indrani Patnaik Mines (IPML) for indulging in massive illegal mining.
• Nifty trading range is seen at 5750-6300 this September series saw that the market breakout of the confines of a rising channel,which had formed since October last year.
• There is a pleasant surprise for defensive sector—trader and invester carry forward bullish bets in Pharma,Consumer Goods, which are going to perform better than Nifty in October.

• SENSEX : 20069.12

• NIFTY : 6029.95

• NIKKEI : 9369.35

• HANGSENG : 22358.17