SUBMITTED BY
Aparna kumari
Ashish bajaj
Arjun rathore
Mahindra pegs Satyam loss at Rs 8kcr under Raju:
Mahindra Satyam managed to sharply reduce its losses for 2009-10.
Mahindra: not worried about past.
The firm rode out a tough two years period during which it lost clients and employees, and posted a huge loss of Rs8kcr 2008-09.
Cos go mobile to capture real-time data:
Mobiles are helping firms gather data on sales, inventory & service.
Every night at nine, Sudhir Sharma, on Onida salesman assigned to a multi-brands outlet, wraps up his work by sending an SMS from his mobile phone.
Till five months ago, Onida's sales figures used to take two weeks to a montha to trickle in, especially from smaller towns. Now thanks to an application on mobile phones and some back-end software connections, it happens daily.
Onida is able to manage the movements of its goods better, replenish stocks faster and tweak production based on daily sales patterns
Govt to manage own debt in two years:
Debt Management Office to Relieve RBI of task of managing Sovereign Borrowings.
A senior finance ministry official said a full-fledged debt management office will be operational by 2012.
RBI had first advocted the need for seperating debt management and monetry policy over a decade ago.
CAG may get to audit private telcos' books:
CAG to audit their books every year to ensure that they do not fudge thier numbers & pay the govt less than its due.
Unhaapy at the prospect of CAG poring over their books, telecom companys are gearing upto strongly oppose this change in licence conditions.
Countdown to India INC's D-Day:
On the afternoon of october 4, a group of 8 industry leaders will select the winner of The Economic Times Awards for Corprate excellence 2010.
That evening, Mr Schwarzman will speak on "Regulation After the Great Recession"
12-digit empowerment:
Prime Minister Unveils project to provide unique identity to every citizen.
To start rolling out the numbers between augusr 2010 and february next year has been met and the next few months will see a roll out in other states.
UIDAI ii the first identification project to use biometric data in a big way.
Core sector growth dips to 3.7% in August:
Power & coal take hit while cement, steel sector put up mixed show.
The six industries- crude oil, petroleum refining, coal, electricity, cement and finished steel- have a combined weight of 26.7% in the index of industrial produtcion and are considered an advance indicator of industrial activity.
Central varsities agree on new admission process:
Universities have also agreed on faculty and student mobility within central universities, and a code of conduct for faculty, staff and researchers.
Seven of the 15 new central unversities have already adopted a common entrance test for admission.
US House set to approve 'yuan' bill:
The House is expected to approve, with bipartisan support, a bill to treat China's exchange rate as a subsidy.
Obama and Chinese Premier Wen Jiabao discused China's curreny & huge trade surplus with the United States.
Power is shifting to East, challenge is to follow it:
Lazard Chief Kenneth Jacobs wants to bank on soarin deals in India.
Mr Jacobs is among the many global financial Wizards who are focusing on India and other Asian markets to benefit from the soarin take overs from the cash-rich and debt-light companies.
Thursday, September 30, 2010
The Mint - 30th Sep
Submitted By
Ankit Agrawal
Ankit Tomar
Ankita Mishra
Leading the NEWS
• UPA chairperson Sonia Gandhi distributes the first set of unique ID cards, known as “AADHAAR”, to tribal community member in Tembhli, Maharashtra on Wednesday.
• Satyam 2yr Numbers disappoint
• EIH to tutor staff at Mukesh’s residence
• Tension grips Ayodhya as high court gives verdict today
• Firms see micro management, return of the license regime
• Prasar Bharati moves court, sends notices to TV channels stating it holds exclusive rights to cover the event
• Cricket board reconstitutes IPL’s governing council
• M&M is not a conglomerate, it’s a federation
• Lock-in for all FDI in realty
• Number Portability looks elusive as operator’s license revoked
Need to Know
• Rajiv Kumar is FICCI’s new director general
• Chakrabarti is Axis Bank’s new DMD
• RAdag gets FMC nod for 26% ICEX stake
• Mittal sells oilfield stake to Sinopec
• Ravi Kiran quits Starcom MediaVest
• Tata Steel signs pact to raise £3.53 bn
• Indigo Plans IPO in 6-7 months, hires JM Financial
• Infra growth slows tp3.7%in August
• Power Grid FPO to hit market in November
Markets & Finance
• Investment banks preparing to tap surge in equity issuance
• RBI allows banks to use companies as business correspondents
• Bill against outsourcing defeated in the US Senate
• DIPP advocates FDI in LLPs, but questions potential benefit
• Government to allow cotton exports from November
• India Inc raise $1.09 billion in foreign borrowings in August
• India’s mobile handset sales hit record high in June quarter
• Government not worried over surging capital inflows
The Wall Street Journal
• New CEO shakes up management at BP
• HSBC Holding PLC’s departing chairman Stephen Green said Wednesday the bank has no plan to move its HQ to Hongkong from London
• Google CEO Envision a ‘Serendipity Engine’
• Nintendo to launch 3-D hand-held in February
Ankit Agrawal
Ankit Tomar
Ankita Mishra
Leading the NEWS
• UPA chairperson Sonia Gandhi distributes the first set of unique ID cards, known as “AADHAAR”, to tribal community member in Tembhli, Maharashtra on Wednesday.
• Satyam 2yr Numbers disappoint
• EIH to tutor staff at Mukesh’s residence
• Tension grips Ayodhya as high court gives verdict today
• Firms see micro management, return of the license regime
• Prasar Bharati moves court, sends notices to TV channels stating it holds exclusive rights to cover the event
• Cricket board reconstitutes IPL’s governing council
• M&M is not a conglomerate, it’s a federation
• Lock-in for all FDI in realty
• Number Portability looks elusive as operator’s license revoked
Need to Know
• Rajiv Kumar is FICCI’s new director general
• Chakrabarti is Axis Bank’s new DMD
• RAdag gets FMC nod for 26% ICEX stake
• Mittal sells oilfield stake to Sinopec
• Ravi Kiran quits Starcom MediaVest
• Tata Steel signs pact to raise £3.53 bn
• Indigo Plans IPO in 6-7 months, hires JM Financial
• Infra growth slows tp3.7%in August
• Power Grid FPO to hit market in November
Markets & Finance
• Investment banks preparing to tap surge in equity issuance
• RBI allows banks to use companies as business correspondents
• Bill against outsourcing defeated in the US Senate
• DIPP advocates FDI in LLPs, but questions potential benefit
• Government to allow cotton exports from November
• India Inc raise $1.09 billion in foreign borrowings in August
• India’s mobile handset sales hit record high in June quarter
• Government not worried over surging capital inflows
The Wall Street Journal
• New CEO shakes up management at BP
• HSBC Holding PLC’s departing chairman Stephen Green said Wednesday the bank has no plan to move its HQ to Hongkong from London
• Google CEO Envision a ‘Serendipity Engine’
• Nintendo to launch 3-D hand-held in February
FInancial Express - 30th September
Submitted by
Areeba Wazahat
Sec-I
Group 4
NEWS:
1).SATYAM MERGER TO START IN MID-NOV . LOSS AT Rs 125 CRORE.
- The Board of directors has announced that merger process will begin in mid-Nov.
- Due to the extent of fraud many exceptional items have been included like fraud restatement expenses,lawyer payments amounting to Rs 417 crore in FY 10.
- Loan balance of the company as of Mar 31,2010 was Rs 42 crore
- Margins have improved to 8.33% from 3.42%.
- Net worth improved to Rs 1800 Crore from negative net worth of rs 8080 crore at the time of merger.
- It has added 44 new clients including GE, CISCO, GLAXOSMITHKLINE.
2).UID BRINGS IDENTITY ,HOPE FOR MAHAVILLAGE
- World's first identification project which uses biometric data had begun by PM being awarding the first identifaction number to Sudashiv Sonawane of Tembhli village.
- It could help the poor to avail the benefits of govt. welfare programes ,open a bank account.
3).CORE SECTOR GROWTH SLOWS ; DOWN TO 3.7% IN AUGUST.
CORPOPRATES & MARKETS:-
1).US ELECTRONIC GIANT TYCO'S ENERGY BUSINESS GOT INTEGRATED WITH
RAYCHEM RPG INDIA.
- India would be exposed to global market more in Power sector.
- Co. wants to double its profit and turnover in three years
- Mkt share is over 40% in America,mexico and Brazil making it a significant player.
2).SENSEX CLOSES 148 PTS DPWN.
3).KOUTONS SCRIP FALLS ON FUND WOES.
- The shares of Koutons Retail India tumbled by nearly 20% on BSE because of Co.s tight financial situation.
- ICRA has suspended Koutons rating because of default in loan repayment
4).ETISALAT BIDS TO BUY 46% IN ZAIN
- Emirates TelecommunicationsCorp has offered to buy 46% of Kuwait's Zain.
- It had offered 1.7 dinars per share for the stake
ECONOMY:-
1).TALKS ARE ON WITH SBI FOR $11 bn INFRA FUND : MONTEK
- This effort is a part of country's plan to propel economic growth to a sustained avg. annual rate of 10%.
- SBI has been approached by govt. for a $11 bn fund to raise finances, to build roads, ports and powerplants
2).MoEF HEARING ON VEDANTA'S ORISSA ALUMINA PLANT TODAY
3).FOREIGN INVESTORS WARY OF INFRASTRUCTURE RISK.
- Infrastructure is key to realising India's potential but hesistant overseas invst have slowed dev. In the sector.
- New Delhi is keen to increase foreign invst in projects as it targets a doubling in infrastructure spnding to $ 1 trillion in the 5 yrs starting 2012.
- Lack of attractive opportunity and early stage often deter foreign investors.
- FDI fell by 25%.
MONEY AND BANKING:-
1).RUPEE RISES TO FOUR_MONTH HIGH ON RECORD FII INFLOWS
- Currency is at 44.95 compared with 45.16 close of tuesday.
- It is because of overseas investors who pumped record funds into local shares this year to benefit from the nation's relatively fast economic growth.
- Currency gained 4.9%in Sep.
2).APRIL-JUNE BoP
- Economists poll forecasts current account gap of $12.4 bn.
- Current account deficit in Apr-Jun would have expanded sharply because of larger trade deficit and slower portfolio investment.
- In Jan-Mar, it was $13 bn.
- Apr-Jun trade deficit was $32.3 bn
3).RBI – INDUSTRY MEETING O TAKE UP BANKING LICENSE NORMS ON OCT 7
4).JP MORGAN EYES TRIPLING PVT, BANK ASETS IN ASIA.
- This unit manages money for wealthy clients and employs 400 people in Asia,intends to increase its no. of client advisor in the region by 40%.
- It aims to generate about half of its non-US business from Asia.
Areeba Wazahat
Sec-I
Group 4
NEWS:
1).SATYAM MERGER TO START IN MID-NOV . LOSS AT Rs 125 CRORE.
- The Board of directors has announced that merger process will begin in mid-Nov.
- Due to the extent of fraud many exceptional items have been included like fraud restatement expenses,lawyer payments amounting to Rs 417 crore in FY 10.
- Loan balance of the company as of Mar 31,2010 was Rs 42 crore
- Margins have improved to 8.33% from 3.42%.
- Net worth improved to Rs 1800 Crore from negative net worth of rs 8080 crore at the time of merger.
- It has added 44 new clients including GE, CISCO, GLAXOSMITHKLINE.
2).UID BRINGS IDENTITY ,HOPE FOR MAHAVILLAGE
- World's first identification project which uses biometric data had begun by PM being awarding the first identifaction number to Sudashiv Sonawane of Tembhli village.
- It could help the poor to avail the benefits of govt. welfare programes ,open a bank account.
3).CORE SECTOR GROWTH SLOWS ; DOWN TO 3.7% IN AUGUST.
CORPOPRATES & MARKETS:-
1).US ELECTRONIC GIANT TYCO'S ENERGY BUSINESS GOT INTEGRATED WITH
RAYCHEM RPG INDIA.
- India would be exposed to global market more in Power sector.
- Co. wants to double its profit and turnover in three years
- Mkt share is over 40% in America,mexico and Brazil making it a significant player.
2).SENSEX CLOSES 148 PTS DPWN.
3).KOUTONS SCRIP FALLS ON FUND WOES.
- The shares of Koutons Retail India tumbled by nearly 20% on BSE because of Co.s tight financial situation.
- ICRA has suspended Koutons rating because of default in loan repayment
4).ETISALAT BIDS TO BUY 46% IN ZAIN
- Emirates TelecommunicationsCorp has offered to buy 46% of Kuwait's Zain.
- It had offered 1.7 dinars per share for the stake
ECONOMY:-
1).TALKS ARE ON WITH SBI FOR $11 bn INFRA FUND : MONTEK
- This effort is a part of country's plan to propel economic growth to a sustained avg. annual rate of 10%.
- SBI has been approached by govt. for a $11 bn fund to raise finances, to build roads, ports and powerplants
2).MoEF HEARING ON VEDANTA'S ORISSA ALUMINA PLANT TODAY
3).FOREIGN INVESTORS WARY OF INFRASTRUCTURE RISK.
- Infrastructure is key to realising India's potential but hesistant overseas invst have slowed dev. In the sector.
- New Delhi is keen to increase foreign invst in projects as it targets a doubling in infrastructure spnding to $ 1 trillion in the 5 yrs starting 2012.
- Lack of attractive opportunity and early stage often deter foreign investors.
- FDI fell by 25%.
MONEY AND BANKING:-
1).RUPEE RISES TO FOUR_MONTH HIGH ON RECORD FII INFLOWS
- Currency is at 44.95 compared with 45.16 close of tuesday.
- It is because of overseas investors who pumped record funds into local shares this year to benefit from the nation's relatively fast economic growth.
- Currency gained 4.9%in Sep.
2).APRIL-JUNE BoP
- Economists poll forecasts current account gap of $12.4 bn.
- Current account deficit in Apr-Jun would have expanded sharply because of larger trade deficit and slower portfolio investment.
- In Jan-Mar, it was $13 bn.
- Apr-Jun trade deficit was $32.3 bn
3).RBI – INDUSTRY MEETING O TAKE UP BANKING LICENSE NORMS ON OCT 7
4).JP MORGAN EYES TRIPLING PVT, BANK ASETS IN ASIA.
- This unit manages money for wealthy clients and employs 400 people in Asia,intends to increase its no. of client advisor in the region by 40%.
- It aims to generate about half of its non-US business from Asia.
Business Line - 30th September
BY:-
GROUP NUMBER 4
SECTION F
ANKITA RATHORE
APOORVA SHARMA
ANOOP SINGH
1) Mahindra Satyam loss totals Rs8,300cr for FY09,FY10
• Mr. Vineet Nayyar-New Chairman.
• Reported that the company could narrow losses to Rs124.6cr in fiscal 2009-2010 in a way to mark its recovery.
• The new management has put the total impact of Mr. B Ramalinga Raju’s fraud on the company’s profit and loss account at Rs.6763 cr.
• According to the forensic studies,there is an entry of Rs.5,352.80 cr on the revenue front and Rs.899 cr on interest income.
• Mr. Nayyar said that the company was in the process of recovery and now its a debt free company with cash balance of Rs. 2,170 cr.
• The company announced that it would come out with a merger plan after it became current post the announcement of results for first and second quarters of 2010-2011.
2) Punj Lloyd arm partners French nuke engg firm• Mr. Atul Punj,Chairman Punj Lloyd and Mr. Jerome Stubler,Chairman Nuvia Group,a part of French construction and concession company Vinci SA.
• Punj Lloyd group firm PL engg Ltd and the Indian unit of French nuclear engg firm,Nuvia, signed an agreement on Wednesday to form a venture for nuclear engg and support services.
• Proposed venture to have an equal share of both the companies having an equity structure of 50:50.
• Merger to take place to capitalize on an expected surge in demand for nuclear energy related services in India.
• Process to be completed in 120 days.
3) Obama visit to deepen India-US trade ties
• Dr Rahul Khullar,the Commerce Secretary of India and Mr. Francisco Sanchez, the US Under Secretary of Commerce for International Trade.
• US president Mr. Barack Obama to visit India later this year to talk about bilateral trade between India and US.
• According to Mr. Francisco Sanchez speaking at AMCHAM India (American Chamber of Commerce India) meeting the US president to highlight the importance that Washington attaches to its bilateral commercial and trade ties with India.
• AMCHAM India, a forum for US and Indian companies to develop common interest and present their views to the two governments.
4) SBI will decide soon on hiking deposit rates.• SBI to increase its deposit rates after RBI’s verdict that banks have seen a deceleration of deposit growth because of negative real rates which needs to move in the direction of encouraging bank deposits as depositors have various other options now.
• According to Mr. O.P. Bhatt, the SBI chairman the bank will extend the 8% rates on home loans by December which was expected to be increased by September 30th.
• SBI aiming at a credit growth of 20% in FY 2010-11.
• Special products launched for CRPF, SSB, BSF, NSG, ITBP, CISF.
5) Commercial Engineers’s IPO opens today;to raise Rs. 172 cr.• The IPO of Kanpur based Commercial Engineers and Body Builder Company (CEBBCO) going to open on Thursday.
• Company plans to raise approx. Rs. 172 cr. Through the issue for which the IPO’s price band has been fixed at Rs. 125-127 a share and the issue to be closed on October 5.
• The shares will be listed on the BSE and NSE and will result in a 25% dilution of the promoter holding in the company.
• Percentage allotment of shares : 60% to qualified institutional buyers, 30% to retail investors and 10% to HNI.
GROUP NUMBER 4
SECTION F
ANKITA RATHORE
APOORVA SHARMA
ANOOP SINGH
1) Mahindra Satyam loss totals Rs8,300cr for FY09,FY10
• Mr. Vineet Nayyar-New Chairman.
• Reported that the company could narrow losses to Rs124.6cr in fiscal 2009-2010 in a way to mark its recovery.
• The new management has put the total impact of Mr. B Ramalinga Raju’s fraud on the company’s profit and loss account at Rs.6763 cr.
• According to the forensic studies,there is an entry of Rs.5,352.80 cr on the revenue front and Rs.899 cr on interest income.
• Mr. Nayyar said that the company was in the process of recovery and now its a debt free company with cash balance of Rs. 2,170 cr.
• The company announced that it would come out with a merger plan after it became current post the announcement of results for first and second quarters of 2010-2011.
2) Punj Lloyd arm partners French nuke engg firm• Mr. Atul Punj,Chairman Punj Lloyd and Mr. Jerome Stubler,Chairman Nuvia Group,a part of French construction and concession company Vinci SA.
• Punj Lloyd group firm PL engg Ltd and the Indian unit of French nuclear engg firm,Nuvia, signed an agreement on Wednesday to form a venture for nuclear engg and support services.
• Proposed venture to have an equal share of both the companies having an equity structure of 50:50.
• Merger to take place to capitalize on an expected surge in demand for nuclear energy related services in India.
• Process to be completed in 120 days.
3) Obama visit to deepen India-US trade ties
• Dr Rahul Khullar,the Commerce Secretary of India and Mr. Francisco Sanchez, the US Under Secretary of Commerce for International Trade.
• US president Mr. Barack Obama to visit India later this year to talk about bilateral trade between India and US.
• According to Mr. Francisco Sanchez speaking at AMCHAM India (American Chamber of Commerce India) meeting the US president to highlight the importance that Washington attaches to its bilateral commercial and trade ties with India.
• AMCHAM India, a forum for US and Indian companies to develop common interest and present their views to the two governments.
4) SBI will decide soon on hiking deposit rates.• SBI to increase its deposit rates after RBI’s verdict that banks have seen a deceleration of deposit growth because of negative real rates which needs to move in the direction of encouraging bank deposits as depositors have various other options now.
• According to Mr. O.P. Bhatt, the SBI chairman the bank will extend the 8% rates on home loans by December which was expected to be increased by September 30th.
• SBI aiming at a credit growth of 20% in FY 2010-11.
• Special products launched for CRPF, SSB, BSF, NSG, ITBP, CISF.
5) Commercial Engineers’s IPO opens today;to raise Rs. 172 cr.• The IPO of Kanpur based Commercial Engineers and Body Builder Company (CEBBCO) going to open on Thursday.
• Company plans to raise approx. Rs. 172 cr. Through the issue for which the IPO’s price band has been fixed at Rs. 125-127 a share and the issue to be closed on October 5.
• The shares will be listed on the BSE and NSE and will result in a 25% dilution of the promoter holding in the company.
• Percentage allotment of shares : 60% to qualified institutional buyers, 30% to retail investors and 10% to HNI.
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.
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.
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