SUBMITTED BY- DEVENDRA CHAUDHARY
DHIRENDRA SINGH
ISHANK GOYAL
(SEC-F)
FRONT PAGE:
1)SENSEX soars as FII(foreign institutional investors)pour in Rs.1 lakh cr. SENSEX closed at a 34-month high on wednesday as FIIs poured money into indian stocks.The benchmark index closed at 20,687.88 and NIFTY closed at 6,233.90.
2)The open offer for shares of spicejet will commence on october 18 and will close on november 8,said an announcement from the managers to the open offer Enam securities.
CORPORATE:
1)Coal India will invest Rs.2,785 crore to set up 20 coal beneficiation plants with a cumulative capacity of 110 million tonnes.
2)Sanitaryware firm HSIL LTD. is planning a capex of Rs. 350 crore in the next 30 months for capacity expansion of its sanitaryware,faucet and container glass plant.
INDUSTRY AND ECONOMY:
1)Indian oil,Hindustan Petroleum Corporation and Bharat Petroleum Corporation may have to
a plant of losses incurred on sale of subsidised LPG and kerosene in the first half of this
fiscal.
2)Banglore-based Featherlite gp. Will lauch a 7.5-acre residential project in Chennai on
friday.The project will have over 500 apartments and is the first of three residential project
planned in the city.
INFO-TECH:
1)Vodafone Essar has selected Nokia Siemen Networks(NSN) and Erricsson for supplying
3-G equipment.
2)Technology solution provider iGATE has reported a 52.6 percent rise in third quarter
revenues for the quarter ended September 30 at $74.8 million.Net income was up 66.67%
at $ 14.3 million.
3)IKF Technologies Ltd has bagged the contract for providing BPO and call centre services
to vodafone in Kolkata and rest of the west bengal.The company had earlier secured
contract from aircel for providing call centre services in the entire eastern region.
4)Mahindra Satyam has signed a 'large' contract with the US-based commonwealth of
Kentucky for design management system.this system will include scanning and imaging.
MONEY AND BANKING:
1)Oriental Bank of Commerce(OBC) has announced a special microfinance product to
provide hassle free credit to micro enterpreneurs for setting up new units or enhancing
existing units.
AGRI BUSINESS AND COMMODITIES:
1)Falling production in tea production may continue.This is due to incessant rain and pest attacks.The tea production in the south dropped 5.1 million kg in august.
2)Government agencies and private millers have produced over 24.84 lakh tonnes of paddy in punjab and more than 5.65 lakh tonnes in Haryana till tuasday.
Thursday, October 14, 2010
Economic Times - 14th October
Submitted by:
Inderbir Singh Matharu
Itika Sharma
Indresh Tiwari
(Group8 Section E)
SENSEX
20760.70 72.82
NIFTY
6253.95 20.05
INR-USD
44.44 -0.18
GOLD (Rs/10g.)
19890.00 235.00
Investors pull out Rs 12.8k cr from equity mutual funds
Investors of equity mutual funds (MFs) are laughing all the way to the bank. With the markets trading close to their all-time highs, investors have pulled out a record Rs 12,804 crore from equity MF schemes in September, which is about 50% more than the previous high hit in October 2007.
Equity MF redemptions surged 63.7% month-onmonth in September, pushing fund houses to sell stocks to meet the huge spurt in exits. Fund houses net sold stocks worth Rs 7,236 crore to meet redemptions in September, the highest in 2010, Sebi data shows.
“The markets have run up quite sharply. So, investors are pulling out money from equities and allocating it to monthly income plans, liquid funds and bank deposits,” he said. Investors are also channelling the money into IPOs for short-term gains, say industry officials.
FII interest in coal India IPO to disturb forex market
Even as foreign portfolio investors are lining up cash to subscribe to the $3.4-billion Coal India initial public offering (IPO), bankers are expecting some volatility in the forex market, because of huge dollar inflows. At least 50% of the issue is reserved for qualified institutional buyers (QIBs), and foreign investors are expected to bid for a sizeable chunk of that quota.
Overseas investors have net-bought over $22 billion of shares in 2010 so far, and most brokers expect the momentum to sustain for the rest of this calendar. The rupee closed at 44.51 to the dollar on Wednesday, and has gained over 4% in the past one month alone.
“The forex market is on tenterhooks in anticipation of lumpy flows in wake of significant investments coming in for Coal India,” says Hemant Mishr, MD and head global markets at Standard Chartered Bank. He expects the rupee to hit 43.50 in a knee-jerk reaction on the day the money comes into system.
Microsoft deepens Facebook ties in google battle
Microsoft Corp deepened its ties with social networking company Facebook on Wednesday, bolstering its fledgling Bing search engine in an effort to catch up with Google Inc Microsoft said it would integrate content from Facebook, the world's leading social network with over half a billion members, to refine search results starting on Wednesday, including profiles of Facebook users and Web pages they have endorsed by clicking on "like" buttons.
The world's largest software company has stepped up its efforts within its money-losing online services division, seeking to challenge the dominance of Google, the world's largest search engine.
"The thing that makes Microsoft a great partner for us is that they really are the underdog here," Facebook Chief Executive Officer Mark Zuckerberg told reporters at Microsoft's Silicon Valley offices. "Because of that they in a structural position where they're incentivized to go all out and innovate."
Mahindra Satyam Bags contract from Commonwealth of Kebtucky
Leading IT services provider, Mahindra Satyam , today said that it has signed a contract with the Commonwealth of Kentucky, USA, for design and delivery of a document management system for the child support system.
The system would enable child support staff to electronically store, view and send information such as applications, court orders and insurance documentation received from case participants, courts and other agencies, a press release issued here stated.
"These improvements make it easier for non-custodial and custodial parents to get their questions answered and ultimately increase access to more resources in the care of their children." Kentucky Cabinet for Health and Family Services' Secretary, Jamie Miller, said.
Reserve Buffer Helped RBI manage crisis better than its foreign peers
RBI has managed the financial crisis much better than its advanced market counterparts. While RBI used the buffers of cash reserves of banks and unwinding of some bonds to infuse liquidity in the system, other central banks created money by extending credit facilities to the various segments of the market or purchase commercial paper (CP), resulting in sharp expansion of their balance sheet.
A research by the Reserve Bank of India staff has noted that assets of the US Fedral Reserve Board and the Bank of England more than doubled in a matter of weeks, while that of the European Central Bank (ECB) grew by more than 30% as a result of expansionary policy to deal with the crisis.
Rising current account trade gap worry FM
Union finance minister Pranab Mukherjee on Tuesday expressed concern over the rising current account and trade deficits and suggested a wider export market besides Europe and North America to correct the imbalances.
“I have apprehensions because the current account deficit has increased-...Trade imbalances have increased because exports have not grown in absolute terms compared to imports. So, we have to find diverse markets,” he said after inaugurating a financial hub in New Town, Rajarhat, which will be the second such facility after Mumbai’s Bandra Kurla Complex.
Govt Rules out any re-writing of recently-legislated neuclear liability law
THE Centre has ruled out any re-writing of the recently-legislated nuclear liability law for addressing concerns raised by the US administrati on and suppliers of nuclear reactors.
“The question of amendments is not on the cards. We have explained to them (the US) the circumstances in which we had to go through the bill and we have to work within the parameters of the legislation,” external affairs minister S M Krishna said at a meeting with editors here.
The minister, however, said that there could be discussions on some elements of the bill during president Barack Obama’s visit to New Delhi. “But the law won’t be amended. Don’t draw any conclusion that we’re trying to fix the bill outside the legislation,” Mr Krishna said.
Google’s spending worry for Wall Street
Wall Street wants Google’s new products and initiatives to start paying off, as its accelerating spending spree nibbles away at margins and alarms investors.
The Internet giant’s free-spending, from more than 20 acquisitions this year alone to internal projects such as self-driven cars and big bets in wind energy, has weighed on the company’s stock, which has underperformed the market this year.
Headcount, capital expenditures and operating expenses will be key issues for investors when Google reports third-quarter results on Thursday, particularly after a rare profit shortfall in the second quarter wiped 7% off its shares in a single day.
Inderbir Singh Matharu
Itika Sharma
Indresh Tiwari
(Group8 Section E)
SENSEX
20760.70 72.82
NIFTY
6253.95 20.05
INR-USD
44.44 -0.18
GOLD (Rs/10g.)
19890.00 235.00
Investors pull out Rs 12.8k cr from equity mutual funds
Investors of equity mutual funds (MFs) are laughing all the way to the bank. With the markets trading close to their all-time highs, investors have pulled out a record Rs 12,804 crore from equity MF schemes in September, which is about 50% more than the previous high hit in October 2007.
Equity MF redemptions surged 63.7% month-onmonth in September, pushing fund houses to sell stocks to meet the huge spurt in exits. Fund houses net sold stocks worth Rs 7,236 crore to meet redemptions in September, the highest in 2010, Sebi data shows.
“The markets have run up quite sharply. So, investors are pulling out money from equities and allocating it to monthly income plans, liquid funds and bank deposits,” he said. Investors are also channelling the money into IPOs for short-term gains, say industry officials.
FII interest in coal India IPO to disturb forex market
Even as foreign portfolio investors are lining up cash to subscribe to the $3.4-billion Coal India initial public offering (IPO), bankers are expecting some volatility in the forex market, because of huge dollar inflows. At least 50% of the issue is reserved for qualified institutional buyers (QIBs), and foreign investors are expected to bid for a sizeable chunk of that quota.
Overseas investors have net-bought over $22 billion of shares in 2010 so far, and most brokers expect the momentum to sustain for the rest of this calendar. The rupee closed at 44.51 to the dollar on Wednesday, and has gained over 4% in the past one month alone.
“The forex market is on tenterhooks in anticipation of lumpy flows in wake of significant investments coming in for Coal India,” says Hemant Mishr, MD and head global markets at Standard Chartered Bank. He expects the rupee to hit 43.50 in a knee-jerk reaction on the day the money comes into system.
Microsoft deepens Facebook ties in google battle
Microsoft Corp deepened its ties with social networking company Facebook on Wednesday, bolstering its fledgling Bing search engine in an effort to catch up with Google Inc Microsoft said it would integrate content from Facebook, the world's leading social network with over half a billion members, to refine search results starting on Wednesday, including profiles of Facebook users and Web pages they have endorsed by clicking on "like" buttons.
The world's largest software company has stepped up its efforts within its money-losing online services division, seeking to challenge the dominance of Google, the world's largest search engine.
"The thing that makes Microsoft a great partner for us is that they really are the underdog here," Facebook Chief Executive Officer Mark Zuckerberg told reporters at Microsoft's Silicon Valley offices. "Because of that they in a structural position where they're incentivized to go all out and innovate."
Mahindra Satyam Bags contract from Commonwealth of Kebtucky
Leading IT services provider, Mahindra Satyam , today said that it has signed a contract with the Commonwealth of Kentucky, USA, for design and delivery of a document management system for the child support system.
The system would enable child support staff to electronically store, view and send information such as applications, court orders and insurance documentation received from case participants, courts and other agencies, a press release issued here stated.
"These improvements make it easier for non-custodial and custodial parents to get their questions answered and ultimately increase access to more resources in the care of their children." Kentucky Cabinet for Health and Family Services' Secretary, Jamie Miller, said.
Reserve Buffer Helped RBI manage crisis better than its foreign peers
RBI has managed the financial crisis much better than its advanced market counterparts. While RBI used the buffers of cash reserves of banks and unwinding of some bonds to infuse liquidity in the system, other central banks created money by extending credit facilities to the various segments of the market or purchase commercial paper (CP), resulting in sharp expansion of their balance sheet.
A research by the Reserve Bank of India staff has noted that assets of the US Fedral Reserve Board and the Bank of England more than doubled in a matter of weeks, while that of the European Central Bank (ECB) grew by more than 30% as a result of expansionary policy to deal with the crisis.
Rising current account trade gap worry FM
Union finance minister Pranab Mukherjee on Tuesday expressed concern over the rising current account and trade deficits and suggested a wider export market besides Europe and North America to correct the imbalances.
“I have apprehensions because the current account deficit has increased-...Trade imbalances have increased because exports have not grown in absolute terms compared to imports. So, we have to find diverse markets,” he said after inaugurating a financial hub in New Town, Rajarhat, which will be the second such facility after Mumbai’s Bandra Kurla Complex.
Govt Rules out any re-writing of recently-legislated neuclear liability law
THE Centre has ruled out any re-writing of the recently-legislated nuclear liability law for addressing concerns raised by the US administrati on and suppliers of nuclear reactors.
“The question of amendments is not on the cards. We have explained to them (the US) the circumstances in which we had to go through the bill and we have to work within the parameters of the legislation,” external affairs minister S M Krishna said at a meeting with editors here.
The minister, however, said that there could be discussions on some elements of the bill during president Barack Obama’s visit to New Delhi. “But the law won’t be amended. Don’t draw any conclusion that we’re trying to fix the bill outside the legislation,” Mr Krishna said.
Google’s spending worry for Wall Street
Wall Street wants Google’s new products and initiatives to start paying off, as its accelerating spending spree nibbles away at margins and alarms investors.
The Internet giant’s free-spending, from more than 20 acquisitions this year alone to internal projects such as self-driven cars and big bets in wind energy, has weighed on the company’s stock, which has underperformed the market this year.
Headcount, capital expenditures and operating expenses will be key issues for investors when Google reports third-quarter results on Thursday, particularly after a rare profit shortfall in the second quarter wiped 7% off its shares in a single day.
Financial express Summary - 14th October
Submitted By
Group 8
Imdad Ullah
Harish Joshi
Himanshu Mishra
PSB's to get Rs 8800 crore in 2nd dose of Tier 1 cap
the government will provide the second installment of equity infusion of about Rs 8,800 crore in public sector banks (PSBs)
The next tranche of capital infusion in the banks will be to raise government’s holding in public sector banks to a certain level
As much as Rs 8,789 crore would be part of the second tranche. The banks would be able to utilise this capital to increase their lending power to productive sectors of the economy
CIL plans to Rs 6K-cr foreign buys
Coal India expects a 25%growth in profit this fiscal year
Its chairman Partha Bhattacharyya said they plan to spendaroundRs6,000crore for the overseas buy and are in process of evaluating a couple of proposals for buying stakes in overseas coal companies
Coal India is planning to raise between Rs 13,909 crore andRs15,154crore,in what will be India’s largest initial public offering (IPO).
Sensex posts best gain in 5months on FII inflows
Sensex closed 485 pts higher; FII investments cross $22 bn this year
Due to the continuous inflow of foreign fund Sensex posted its best single-day gain in five months and close 2.4% higher on Wednesday
Indian market is now about 200 points away from breaching its all-time closing high of 20,873 and about 500 points away from its all time high of 21,205
The benchmark has risen 18.5% so far in 2010, propelled by FII inflows.
Sacked Manpreet Badal says he quit on his own as Punjab FM
A day after he was suspended from the Shiromani Akali Dal, Manpreet Badal was on Wednesday removed as the Punjab finance minister.
He was suspended for the acts of indiscipline and opposing the publicly endorsed pro-people policies of the party and the government
A statement issued by the chief minister’s officer here announced that Manpreet was being dropped from thePunjab Cabinet following his suspension from the party’s primary membership
Green energy in focus with $2.3-trn investment plan
India will spend $2.3 trillion to boost its energy sector by 2030
Some of it will be towards energy consumption, but a lot of it will go towards improving energy efficiency and improving the composition of energy
India aims to add about 100 giga watts (gw)of power generation capacity by early 2017, much of it from coal, despite conceding it would miss by 79% an earlier five-year target of adding 78.7 gw by March 2012.
Standard Chartered plans £3.3-bn rights issue
Standard Chartered plans to raise about £3.3billion($5.2billion)in a rights offer
Investors will be offered one new share at 1,280 pence for every eight they already own
Standard Chartered fell 0.8% to 1,894 percent 9:43am in London trading.The stock has gained 20% this year, beating the benchmark FTSE 100 Index’s 5.9%gain.
Standard Chartered's move to boost its balance sheet with a $5.3-billion rights issue adds pressure on other banks, who may have to accept tighter terms in a more crowded market, to follow suit
FX reserves’ surge puts pressure on yuan
China’s forex reserves touch $2.65 trn after record $194-bn rise in July-Sep
Trade surplus dips to 5-mth low at $16.9 bn
Against a background of rising pique in the United States, China has let the yuan climb more quickly in recent weeks, making for total appreciation of 2.4% against the dollar since it was unshackled from a nearly two-year period.
Group 8
Imdad Ullah
Harish Joshi
Himanshu Mishra
PSB's to get Rs 8800 crore in 2nd dose of Tier 1 cap
the government will provide the second installment of equity infusion of about Rs 8,800 crore in public sector banks (PSBs)
The next tranche of capital infusion in the banks will be to raise government’s holding in public sector banks to a certain level
As much as Rs 8,789 crore would be part of the second tranche. The banks would be able to utilise this capital to increase their lending power to productive sectors of the economy
CIL plans to Rs 6K-cr foreign buys
Coal India expects a 25%growth in profit this fiscal year
Its chairman Partha Bhattacharyya said they plan to spendaroundRs6,000crore for the overseas buy and are in process of evaluating a couple of proposals for buying stakes in overseas coal companies
Coal India is planning to raise between Rs 13,909 crore andRs15,154crore,in what will be India’s largest initial public offering (IPO).
Sensex posts best gain in 5months on FII inflows
Sensex closed 485 pts higher; FII investments cross $22 bn this year
Due to the continuous inflow of foreign fund Sensex posted its best single-day gain in five months and close 2.4% higher on Wednesday
Indian market is now about 200 points away from breaching its all-time closing high of 20,873 and about 500 points away from its all time high of 21,205
The benchmark has risen 18.5% so far in 2010, propelled by FII inflows.
Sacked Manpreet Badal says he quit on his own as Punjab FM
A day after he was suspended from the Shiromani Akali Dal, Manpreet Badal was on Wednesday removed as the Punjab finance minister.
He was suspended for the acts of indiscipline and opposing the publicly endorsed pro-people policies of the party and the government
A statement issued by the chief minister’s officer here announced that Manpreet was being dropped from thePunjab Cabinet following his suspension from the party’s primary membership
Green energy in focus with $2.3-trn investment plan
India will spend $2.3 trillion to boost its energy sector by 2030
Some of it will be towards energy consumption, but a lot of it will go towards improving energy efficiency and improving the composition of energy
India aims to add about 100 giga watts (gw)of power generation capacity by early 2017, much of it from coal, despite conceding it would miss by 79% an earlier five-year target of adding 78.7 gw by March 2012.
Standard Chartered plans £3.3-bn rights issue
Standard Chartered plans to raise about £3.3billion($5.2billion)in a rights offer
Investors will be offered one new share at 1,280 pence for every eight they already own
Standard Chartered fell 0.8% to 1,894 percent 9:43am in London trading.The stock has gained 20% this year, beating the benchmark FTSE 100 Index’s 5.9%gain.
Standard Chartered's move to boost its balance sheet with a $5.3-billion rights issue adds pressure on other banks, who may have to accept tighter terms in a more crowded market, to follow suit
FX reserves’ surge puts pressure on yuan
China’s forex reserves touch $2.65 trn after record $194-bn rise in July-Sep
Trade surplus dips to 5-mth low at $16.9 bn
Against a background of rising pique in the United States, China has let the yuan climb more quickly in recent weeks, making for total appreciation of 2.4% against the dollar since it was unshackled from a nearly two-year period.
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