Savyasachi mishra
Shifaly sharma
Shalini kumari
Section - E
NATIONAL NEWS
1.Sebi issues warrants to rein in promoters
These warrants was issue because which in past allowed promoters to raise their stake. This warrant will have great impact on the retail investorsas they now can hope to get more shares in ipo that get oversubscribed.
2.Export growth accelerated
Export grew 23.2% to 18.02%b while import rose 26.1%to $27.1.
3.India onto nuclear deal with Japan,seems to be very significant.
Another important step taken in field of nuclear deal, India and Japan both took the steps for the peaceful use of nuclear power,they mutually arrive on at satisfactory agreement for civil nuclear cooperation.
4. Wal-Mart shows positive sign of entry in India.
American retailer Wal – Mart shows positive sign of opening up multi brand retail to fdi.
As we can see say that wal-mart can enter into Indian markets after the discussion of ceo with the Indian government.
5.Back in home,after decade
KWANG Ro Kim the most successful professionals in the country has finally decided to end his long career in India in next April,he is presently the chairman and CEO of Videocon Industries.
CORPORATE NEWS
1.HUL quarter2 net climbs.
The quarter 2 net climbs 32% to rs 566cr as the rise in demand,net sales were up by 11%to rs 4680.
2.Pepsico India to change the CEO
Manu anand will peplace Sanjeev Chadha as the chairman and CEO of pepsico India.
3.Rejection of Subhiksha's merger scheme with blue green
High court rejects the merger scheme with blue green as according to court it may lead to entity for furthur fund raising money from public.
4.Bharti-African BPO deal
Bharti airtel and Arican bpo announces $500m bpo deal.
5.Danik Bhaskar the leading hindi newspaper of the country successfully launches in Jharkhand.Along with Dainik bhaskar and divya bhaskar win WAN-IFRA AND JOIN THE incqc club
ECONOMIC,FINANCE,MARKETS
1.Rise in export growth speeds up at very fast rate upto 23.2%
2.ONGC may go off sell list as government likely to sale 40 crore this year,seems that government is not interested in raising funds not more than as per budgeted rs 40000 cr this year from stake sales in public sector firms.
3.Government will review export credit that is credits given to export along with the banks chiefs in next month.
4.Idea quarter 2 net goes down to 18.4% to rs 180 cr that is the July-SEP NET PROFIT FOR IDEA FELL DOWN.
5.As the festive season arrives rise in airfares can be seen,this festive season to push up the airfares.
The high demand caused by strong financial markets leads this into result which will raise the airfares.
THE SCOREBOARD
RUPEE/$ 44.36(.23%UP)
SENSEX20303.12(.68%UP)
NIFTY 6105.80(.66%UP)
According to YV REDDY former RBI guv “India can help shape a better financial market”.
Wednesday, October 27, 2010
26th October - Business Line
Rahul Elhence
Priyanka Soam
Rachita
Section - F
SEBI TIGHTENS NORMS FOR PREFERENTIAL ALLOTMENT
SEBI tightened the framework for preferential allotment of shares to promoter in a move to prevent the misuse of preferential allotments,warrants and convertibles to manipulate share prices. Main statement from SEBI are:
If a promoter fails to exercise warrants as it has previously subscribed to equity shares,convertibles or warrants cannot be issued for one year from the date of expiry of the currency or cancellation of the warrants.
SEBI has doubled limit for maximum application size for retail investors to Rs 2 lakhs.
HUL NET JUMPS 32%ON STRONG VOLUME GROWTH
There is a strong volume growth at 14%that led FMCG major HUL to post a 32.1%jump in net profit to Rs 566.12 crore for the quarter ended September 30,2010.
The net profit included a gain of Rs 40 crore that the company received through sale of property,provision for expenses related to buyback of shares and restructuring cost.
They have been able to maintain cost efficiency.
MADRAS CEMENTS Q2 NET DROPS 81%
Net profit for Q2 of 2010-11 has dropped 1/5th of its net during the corresponding period last year.
High operating costs,steep fall in cement prices due to slack demand and large capacity additions contributed to the 81%drop in net profits.
Madras cements which has a surplus capacity of wind energy generators had to depend on costlier diesel generators because of the power cut imposed by the tamil nadu electricity board.
INFLATION EXPECTATION RISING STEADILY
The RBI inflation survey for June 2010 shows a far greater no. of people expect prices levels to increase faster than current rates.
According to the survey, Bangalore is at the top of inflation expectation chart and Chennai right at the bottom.
The question arises that how credible these surveys are, since there is a big element of subjectivity in the way respondents go about answering questions.
While inflation impacts purchasing power, inflation expectations are what influence peoples behaviour in ways that have a long term economic impact.
BRITAINS INFRASTRUCTURE TO GET $200 BILLION INVESTMENT
The private and public sector will pour $200 billion investment into britain creaking infrastructure over the next five years under a new programme introduced by britains coalition government,as a new survey revealed the country is facing heated competition as a business destination from India, China and US.
Mr.Cameron is going to launch national infrastructure plan and according to him “the infrastructure investment programme will help rebalance the economy and give industries right condition in which to grow.
The plan also pledges to introduce new measures to encourage private sector investment into infrastructure programmes.
BHARTI PICK IBM, TECH MAHINDRA , FOR AFRICAN SERVICE CENTRES
This is the second major partnership announcement from bharti airtel on the african subcontinent . In september bharti selected IBM to build and manage IT systems to power the mobile communications network across 16 african countries.
The three partners collectively employ over 90,000 people for providing BPO services in more than 100 countries.
Priyanka Soam
Rachita
Section - F
SEBI TIGHTENS NORMS FOR PREFERENTIAL ALLOTMENT
SEBI tightened the framework for preferential allotment of shares to promoter in a move to prevent the misuse of preferential allotments,warrants and convertibles to manipulate share prices. Main statement from SEBI are:
If a promoter fails to exercise warrants as it has previously subscribed to equity shares,convertibles or warrants cannot be issued for one year from the date of expiry of the currency or cancellation of the warrants.
SEBI has doubled limit for maximum application size for retail investors to Rs 2 lakhs.
HUL NET JUMPS 32%ON STRONG VOLUME GROWTH
There is a strong volume growth at 14%that led FMCG major HUL to post a 32.1%jump in net profit to Rs 566.12 crore for the quarter ended September 30,2010.
The net profit included a gain of Rs 40 crore that the company received through sale of property,provision for expenses related to buyback of shares and restructuring cost.
They have been able to maintain cost efficiency.
MADRAS CEMENTS Q2 NET DROPS 81%
Net profit for Q2 of 2010-11 has dropped 1/5th of its net during the corresponding period last year.
High operating costs,steep fall in cement prices due to slack demand and large capacity additions contributed to the 81%drop in net profits.
Madras cements which has a surplus capacity of wind energy generators had to depend on costlier diesel generators because of the power cut imposed by the tamil nadu electricity board.
INFLATION EXPECTATION RISING STEADILY
The RBI inflation survey for June 2010 shows a far greater no. of people expect prices levels to increase faster than current rates.
According to the survey, Bangalore is at the top of inflation expectation chart and Chennai right at the bottom.
The question arises that how credible these surveys are, since there is a big element of subjectivity in the way respondents go about answering questions.
While inflation impacts purchasing power, inflation expectations are what influence peoples behaviour in ways that have a long term economic impact.
BRITAINS INFRASTRUCTURE TO GET $200 BILLION INVESTMENT
The private and public sector will pour $200 billion investment into britain creaking infrastructure over the next five years under a new programme introduced by britains coalition government,as a new survey revealed the country is facing heated competition as a business destination from India, China and US.
Mr.Cameron is going to launch national infrastructure plan and according to him “the infrastructure investment programme will help rebalance the economy and give industries right condition in which to grow.
The plan also pledges to introduce new measures to encourage private sector investment into infrastructure programmes.
BHARTI PICK IBM, TECH MAHINDRA , FOR AFRICAN SERVICE CENTRES
This is the second major partnership announcement from bharti airtel on the african subcontinent . In september bharti selected IBM to build and manage IT systems to power the mobile communications network across 16 african countries.
The three partners collectively employ over 90,000 people for providing BPO services in more than 100 countries.
26th October - Business Line
Ritu Dahiya
Roma
Ruchi Sharma
Section - F
1. AFTER LONG LULL, HUL’S GROWTH REVS UP AGAIN
Hindustan unilever (HUL) has managed to rev up its growth momentum once again,with sales volumes shooting and value growth picking after a long lull.
The company’s sales volume growth accelerated to a healthy 14percent for this quarter, from 10 percent levels over the past two. With input costs in some FMCG catagories shooting up,players in select catagories like soaps,hair oils and tea have begun to take price increases over the past quarter.
Growth in soaps and detergents, personal products and foods were notable. However,on a sequential basis,the company does seem to be going slower on its advertising and promotions. Even though HUL’s ad budget for the September quarter expanded by 13 per cent compared to last year, there is a dip in the ad spend to sales ratio,compared to the june quarter. This could signal a lull in competitive activity or the pace of the new product launches.
2.RAJASTHAN ROYALS MOVES COURT AGAINST BCCI
Rajasthan Royals field a petition in the Bombay high court against the Board of cricket for control in India for terminating its franchise contract. According to BCCI, the bid document was picked up by the Uk-based Emerging media. However, while signing the agreement for the Jaipur franchise, it was submitted in the name of Jaipur IPL cricket private limited.
The franchise will be represented by supreme court lawyer, Mr.Harish slave. Mr.Suresh chellaram, a 44 per cent stake holder in the franchise, is fromer IPL chief, Mr. lalit Modi’s brother in law.
3.Japan, India agree to abolish most trade tariffs
The Prime Minister, Dr. Manmohan Singh, and his Japanese counterpart , Mr.naotokan,on monday agreed in principle on an economic partnership accord that will abolish tariff on 94 percent of bilateral trade in 10 years. Indian economy expanded 8.8 percent in the april-june period,a rate of growth matched by Brazil.The two prime ministers also agreed on a joint vision for a strategic partnership.
4.Coal India Ltd IPO will mop up at Rs 15,200 crore:
CIL with empowered Group of Minister will issue price for the mega share at Rs245.
CIL shares will get listed on 4th November.
The issue price has been fixed at Rs245 per share.
The employers of CIL are getting 5% discount on IPO.
5.Soaring cotton prices leave mills in quandary,but growers sore:
The prices of cotton is continously rising across the country now a days.
Farmers are spending a heavy amount to save their crop form pests and diseases.
This year in Gujrat cotton bales have arrived less compare to previous year.
In New York,the delivery for cotton will increase in December upto 4%.
6.SEBI tightens norms for preferential allotment:
Sebi has doubled the limit of maximu application size of retail investors.
IPO will provide additional disclosure to the nature of insurance business.
7.Wal-Mart CEO sees 'progress on FDI in multi-brand retail':
India will allow 5% FDI in single brand retail.
Companies are permitted to operate only wholesale.
CEO of Wal-Mart appreciates the Indian Business that it is outstanding.
Wal-MArt is currently having joint ventures with Bharti group and also run four cash and carry outlets to supply.
8.Obama,PM talks to focus on economy,clear Energy:
Issues concerned with the economy,environment,science and technology are going to be a moajor part of the discussion between US president,MR.Barack Obama and Indian Prime Minister,Dr.Manmohan Singh.Adding to these outsourcing and issues related to visa will also be discussed.
9.Britians'Infrastructure to get Rs200 billion investment:
Uk is soon to began a National infrastructure plan as countries like India,China and Us are posing threats in terms of transport utility and communication capabilities which will require investment of 200 billion from the private and public sector.
9.Oil refiner's output dips 10.2% in September:
Domestic public and Private refiners such as Indian oil corporation and Reliance Industries limited have produced 10.2% less crude oil due to shutdown for regular maintenance work in month of september.
Roma
Ruchi Sharma
Section - F
1. AFTER LONG LULL, HUL’S GROWTH REVS UP AGAIN
Hindustan unilever (HUL) has managed to rev up its growth momentum once again,with sales volumes shooting and value growth picking after a long lull.
The company’s sales volume growth accelerated to a healthy 14percent for this quarter, from 10 percent levels over the past two. With input costs in some FMCG catagories shooting up,players in select catagories like soaps,hair oils and tea have begun to take price increases over the past quarter.
Growth in soaps and detergents, personal products and foods were notable. However,on a sequential basis,the company does seem to be going slower on its advertising and promotions. Even though HUL’s ad budget for the September quarter expanded by 13 per cent compared to last year, there is a dip in the ad spend to sales ratio,compared to the june quarter. This could signal a lull in competitive activity or the pace of the new product launches.
2.RAJASTHAN ROYALS MOVES COURT AGAINST BCCI
Rajasthan Royals field a petition in the Bombay high court against the Board of cricket for control in India for terminating its franchise contract. According to BCCI, the bid document was picked up by the Uk-based Emerging media. However, while signing the agreement for the Jaipur franchise, it was submitted in the name of Jaipur IPL cricket private limited.
The franchise will be represented by supreme court lawyer, Mr.Harish slave. Mr.Suresh chellaram, a 44 per cent stake holder in the franchise, is fromer IPL chief, Mr. lalit Modi’s brother in law.
3.Japan, India agree to abolish most trade tariffs
The Prime Minister, Dr. Manmohan Singh, and his Japanese counterpart , Mr.naotokan,on monday agreed in principle on an economic partnership accord that will abolish tariff on 94 percent of bilateral trade in 10 years. Indian economy expanded 8.8 percent in the april-june period,a rate of growth matched by Brazil.The two prime ministers also agreed on a joint vision for a strategic partnership.
4.Coal India Ltd IPO will mop up at Rs 15,200 crore:
CIL with empowered Group of Minister will issue price for the mega share at Rs245.
CIL shares will get listed on 4th November.
The issue price has been fixed at Rs245 per share.
The employers of CIL are getting 5% discount on IPO.
5.Soaring cotton prices leave mills in quandary,but growers sore:
The prices of cotton is continously rising across the country now a days.
Farmers are spending a heavy amount to save their crop form pests and diseases.
This year in Gujrat cotton bales have arrived less compare to previous year.
In New York,the delivery for cotton will increase in December upto 4%.
6.SEBI tightens norms for preferential allotment:
Sebi has doubled the limit of maximu application size of retail investors.
IPO will provide additional disclosure to the nature of insurance business.
7.Wal-Mart CEO sees 'progress on FDI in multi-brand retail':
India will allow 5% FDI in single brand retail.
Companies are permitted to operate only wholesale.
CEO of Wal-Mart appreciates the Indian Business that it is outstanding.
Wal-MArt is currently having joint ventures with Bharti group and also run four cash and carry outlets to supply.
8.Obama,PM talks to focus on economy,clear Energy:
Issues concerned with the economy,environment,science and technology are going to be a moajor part of the discussion between US president,MR.Barack Obama and Indian Prime Minister,Dr.Manmohan Singh.Adding to these outsourcing and issues related to visa will also be discussed.
9.Britians'Infrastructure to get Rs200 billion investment:
Uk is soon to began a National infrastructure plan as countries like India,China and Us are posing threats in terms of transport utility and communication capabilities which will require investment of 200 billion from the private and public sector.
9.Oil refiner's output dips 10.2% in September:
Domestic public and Private refiners such as Indian oil corporation and Reliance Industries limited have produced 10.2% less crude oil due to shutdown for regular maintenance work in month of september.
26th October - The Financial Express
Rishab Shukla
Ravindra Singh
Section - I
ALL REGULATORS TO GET 5 YEARS TENURES
• The government wants to bring uniformity in the tenures of the heads of various regulatory bodies, currently some regulatory heads have three years tenures, others have five years tenures.
• The heads of SEBI, RBI & TRAI have three years tenure, a uniform tenure of five years could be in place by yearly in time for the appointment of new chiefs of SEBI & RBI.
• Apart from RBI, SEBI & TRAI other regulators IRDA, CERC, PFRDA enjoy five years tenure plan.
• Government sources said the decision to have a uniform tenure for all regulatory heads was taken after demands from some of them that their tenure be extended.
SEBI DOUBLES CAP FOR RETAIL BUYERS IN IPO’S TO RS 2L
• SEBI tightened preferential allotment rules for promoters & paved the way for IPO’s of life insurer while allotting retail investors to apply for as much as Rs 2L.
• SEBI decide if promoters fails to exercise warrants allotted to them would not be eligible to issue equity shares or convertible warrant for the period of one year. Any member of promoter group , who has sold shares in previous six month , will not be eligible for an allotment on a preferential basis.
• SEBI raised the maximum application size for retail investors , across all issues, to Rs 2L from the current limit of Rs 1L.
AFRICA AID SCHEME PROVES NON-STARER
• China continues to make deep inroads into African economies by extending attractive credit lines, India has failed to even meet its commitments to provide economics assistance.
• New Delhi is yet to start allocating firms out of the $ 5.4 billion line of credit sanctioned by the Union cabinet for Africa for did bursal.
• Its difficult for India to take advantage of the 5% annual GDP growth rate for sub Saharan Africa.
• IMF in a report release this week the growth expected to touch .5.5 next year.
• The Indian-Africa Forum Summit held in New Delhi in 2008.Manmohan Singh has committed to provide these funds in 5 years beginning 2009-10.The funding is to be given under the Indian Development & Economic Assistance Scheme which has been a non- performer.Rs.40.51 crores allocated under this scheme have been surrendered.
• China says another IMF Report has sanctioned atleast $19 million within just one year, 2006.
TRADE DEFICIT NARROWS TO $9.12 BN IN SEP.
• India’s trade deficit dropped to $9.12 billion in September.
• In August imports outpaced exports at an alarming rate, pushing the trade deficit to a 23 month higher of $ 13.06 billion.
• Commerce minister Anand Sharma said India traditionally had a high trade deficit & so, it was not a cause for concern yet. India is a big exporter of many commodities. Hence, the trade deficit is on higher side.
• During September overall merchandise export rose 23.2% to $108.02 billion while imports jumped 26.1% to $ 27.14 billion. In April September period, total merchandise export stood at $ 103.3 billion an increase of 27.6% & imports grew by 30% T $166.5 billion. The total gap in trade stood at $63.2 billion.
NO POLICY TIGHTENING IF INFLATION FALLS BELOW 8%, SAYS RANGARAJAN
• If inflation slides below 8% the RESERVE BANK OF INDIA(RBI) need not tighten money in its next policy review on November 2,said Rangarajan(Prime minister's Economic Advisory Council.
• Monetary policy has a role to play even when the inflation is triggered by high food prices because if food inflation persists for some time it gets generalized and affects headline inflation.
• Good monsoon will help in meeting increased demand in the economy and also cool overall inflation to 6.5% by December and 5.5% by march.
INDIA INC EYES EASING OF EXPORT CONTROL NORMS
• With the focus of the forthcoming visit of US President Barack Obama to India is to showcase what the two countries can do together in trade and defence.
• Bilateral trade is expected to touch $50 billion.
• Between 2004 and 2008.our two way trade doubled to $43 billion. There was some drop in 2009.But the way ahead is encouraging.
Top on Obama's agenda are defence, climate change, science and technology, education, health, clean energy, trade, market access and high tech exports.
GOVT BUYS BACK BONDS WORTH Rs. 2K CRORE
• The government has infused Rs. 2148 crores into the economy of buying back of bonds from the banks.
• Last week government has announced that in consultation with RBI that it would buy back bonds worth Rs. 12000 crores in one or more trenches to meet liquidity of system.
• Banks have also borrowed Rs. 89,960 crores from RBI's repo window at 6%, implying a liquidity crunch in the system.
HDFC BANK TOPPLES ICICI IN CREDIT CARDS WITH 5 M BASES
• With a base of 5 million cards, HDFC bank is now an undisputed leader in credit card base from a high of 8.5 million to four million cards at present.
• Credit card spends by Indian consumers have seen a 27% jump in august 2010.
• HSBC India with a card base of 1.5 million is also growing its portfolio once again.
CENTRAL BANK UPS BASE RATE BY 50 BPS
• Public sector Central Bank of India has revised upwards its base rate 50 bps.
• Bank's base rate now stands at 8.50% as against the earlier 8%
• The revised base rate is effective from October 20.
NO MAJOR LPG SHORTFALL: PSUs CLAIM
• Public sector oil marketing companies have confirmed that there is no shortfall of LPG in the country
• Any fall in production at refineries is compensated by arranging additional imports at Mumbai and Gujarat.
• The oil industry has decided to operate the bottling plants on holidays/Sundays as well as extended hours during normal days to ensure availability.
• Enrolment of customers during the current financial year is approx. 7lacs in Maharashtra & Madhya Pradesh.
DDA CAN ENCASH EMAAR BANK GUARANTEE:HC
• The Delhi High Court allowed the DDA to encash Rs. 90 crore, which was deposited by Emaar MGF(the builder of Commonwealth Games village) as bank guarantee,for not completing the project on time.
• The order was passed on a petition filed by the company seeking to restrain DDA from seizing the bank guarantee of Rs.183 crore as damages for not completing project on time.
• The court said the rest of the amount will not be encashed if it had not been done so far.
WAL-MART OKAY WITH PACE OF RETAIL FDI REFORMS
• Mike Duke, Wal-Mart’s global CEO met the deputy chairman of planning commission, Montek
Singh Ahluwalia and commerce and industry minister Anand Sharma, said he got positive response towards opening opening the multi- brand retail sector to foreign investment.
• Regarding its JV with Bharti Retail, Duke said until now the two companies share a beneficial agreement and after analyzing the changes made by the govt. would he be able to comment on it.
HUL ACHIEVES HAT-TRICK OF DOUBLE- DIGIT SALES GROWTH
• Hindustan Unilever posted a 32% rise in its net profit at Rs. 566.12 crore in the three months ended September 2010 against Rs. 428.53 crore in the same quarter last year.
• There was an exceptional gain of Rs. 40 crore including a reduction in restructuring cost, an asset sale and profit on long term investments. Excluding the exceptional gains, the profits have grown by 7% year-on-year.
• Personal products category grew by 15%.HUL shares rose 1.36% on the BSE on Monday to close at Rs. 305.65.
IDEA NET PROFIT FALLS 10.5% TO RS. 180 CR
• Idea Cellular reported a decline in net profit by about 10.5% to Rs.180 crore in the second quarter against Rs. 201 crore in the first quarter of the current financial year.
• Average revenue per user (Arpu) during the quarter was down by 8%.Idea’s pan-India
• Ebitda margins declined to 24% during the quarter from 24.3% from the last quarter.
• The company said it would launch the 3G dervices by the first quarter of the next calendar year.
MANU ANAND TO HEAD PEPSICO INDIA
Manu Anand will succeed sanjeev chadha as chairman & CEO, PepsiCo India.The Company has announced chadha will take over as PepsiCo’s chief for the west Asia & Africa region, with effect from january1, 2011.
He will also be a member of PepsiCo’s global leadership team: the PepsiCo Executive committee. Anand moves into this role from Thailand, where he was the CEO for south east Asia, responsible for foods and beverages business in Thailand, Vietnam, Cambodia, Laos, Malaysia, Singapore, Indonesia, And The Pacific Islands.
BHARTI TO LAUNCH 3G BY YEAR END
The country’s largest telecom operator Bharti Airtel would commence its 3G services by the end of this year. With it is third operator after Tata Teleservices and Vodafone- Essar to announce the launch of 3G services in the country.
Bharti Airtel won 3G spectrum in 13 telecom circles of the total 22 for Rs 12,295 crore.
These 13 circles also constitute 68% of Airtel’s revenue market share in the country. The circles include key metros such as Delhi, Mumbai, Chennai, and Hyderabad, which account for 21%of all data traffic in the country.
Coal India issue priced at Rs 245
The government on Monday fixed coal India’s mega IPO issue price at Rs 245 per share, the upper end of initial offer price range.
The government would fetch over Rs 15000 crores by issuing 63.16 crore shares of Coal India at a price of Rs 245 per share. It will offer a discount of 5% to retail investors. The company is expected to list on stock exchanges on November 4,with some fireworks a day before Diwali. Coal India’s initial public offer, which closed on October 21, made history by getting oversubscribed by 15.17 times mopping up Rs 2,35,290 crore.
I-T DISTORTING HC ORDER: VODAFONE
• Supreme court adjourns case till November 15.
• Vodafone International Holdings BV on Monday challenged the income tax department’s new demand notice asking the British telecom giant to pay around Rs 11,218 crore as tax on the 2007 Vodafone-Hutch cross-border deal that created Vodafone-Essar.
• The department on October 22 had issued a new order raising a tax demand of Rs 11,217.95 crores on Vodafone International while treating it as an assesses in default for failure to deduct tax as required before making a payment of $11,076 million to Hutchison Telecommunication International, The order came pursuant to the apex court’s directions on September 27 asking the assistant director of income tax to determine the potential tax liability on the basis of apportionment within 4 weeks.
• The bench headed by chief justice SH Kapadia adjourned the matter till November 15 after the telecom company said it was filling a new application challenging the new demand notice fixing its liability.
Ravindra Singh
Section - I
ALL REGULATORS TO GET 5 YEARS TENURES
• The government wants to bring uniformity in the tenures of the heads of various regulatory bodies, currently some regulatory heads have three years tenures, others have five years tenures.
• The heads of SEBI, RBI & TRAI have three years tenure, a uniform tenure of five years could be in place by yearly in time for the appointment of new chiefs of SEBI & RBI.
• Apart from RBI, SEBI & TRAI other regulators IRDA, CERC, PFRDA enjoy five years tenure plan.
• Government sources said the decision to have a uniform tenure for all regulatory heads was taken after demands from some of them that their tenure be extended.
SEBI DOUBLES CAP FOR RETAIL BUYERS IN IPO’S TO RS 2L
• SEBI tightened preferential allotment rules for promoters & paved the way for IPO’s of life insurer while allotting retail investors to apply for as much as Rs 2L.
• SEBI decide if promoters fails to exercise warrants allotted to them would not be eligible to issue equity shares or convertible warrant for the period of one year. Any member of promoter group , who has sold shares in previous six month , will not be eligible for an allotment on a preferential basis.
• SEBI raised the maximum application size for retail investors , across all issues, to Rs 2L from the current limit of Rs 1L.
AFRICA AID SCHEME PROVES NON-STARER
• China continues to make deep inroads into African economies by extending attractive credit lines, India has failed to even meet its commitments to provide economics assistance.
• New Delhi is yet to start allocating firms out of the $ 5.4 billion line of credit sanctioned by the Union cabinet for Africa for did bursal.
• Its difficult for India to take advantage of the 5% annual GDP growth rate for sub Saharan Africa.
• IMF in a report release this week the growth expected to touch .5.5 next year.
• The Indian-Africa Forum Summit held in New Delhi in 2008.Manmohan Singh has committed to provide these funds in 5 years beginning 2009-10.The funding is to be given under the Indian Development & Economic Assistance Scheme which has been a non- performer.Rs.40.51 crores allocated under this scheme have been surrendered.
• China says another IMF Report has sanctioned atleast $19 million within just one year, 2006.
TRADE DEFICIT NARROWS TO $9.12 BN IN SEP.
• India’s trade deficit dropped to $9.12 billion in September.
• In August imports outpaced exports at an alarming rate, pushing the trade deficit to a 23 month higher of $ 13.06 billion.
• Commerce minister Anand Sharma said India traditionally had a high trade deficit & so, it was not a cause for concern yet. India is a big exporter of many commodities. Hence, the trade deficit is on higher side.
• During September overall merchandise export rose 23.2% to $108.02 billion while imports jumped 26.1% to $ 27.14 billion. In April September period, total merchandise export stood at $ 103.3 billion an increase of 27.6% & imports grew by 30% T $166.5 billion. The total gap in trade stood at $63.2 billion.
NO POLICY TIGHTENING IF INFLATION FALLS BELOW 8%, SAYS RANGARAJAN
• If inflation slides below 8% the RESERVE BANK OF INDIA(RBI) need not tighten money in its next policy review on November 2,said Rangarajan(Prime minister's Economic Advisory Council.
• Monetary policy has a role to play even when the inflation is triggered by high food prices because if food inflation persists for some time it gets generalized and affects headline inflation.
• Good monsoon will help in meeting increased demand in the economy and also cool overall inflation to 6.5% by December and 5.5% by march.
INDIA INC EYES EASING OF EXPORT CONTROL NORMS
• With the focus of the forthcoming visit of US President Barack Obama to India is to showcase what the two countries can do together in trade and defence.
• Bilateral trade is expected to touch $50 billion.
• Between 2004 and 2008.our two way trade doubled to $43 billion. There was some drop in 2009.But the way ahead is encouraging.
Top on Obama's agenda are defence, climate change, science and technology, education, health, clean energy, trade, market access and high tech exports.
GOVT BUYS BACK BONDS WORTH Rs. 2K CRORE
• The government has infused Rs. 2148 crores into the economy of buying back of bonds from the banks.
• Last week government has announced that in consultation with RBI that it would buy back bonds worth Rs. 12000 crores in one or more trenches to meet liquidity of system.
• Banks have also borrowed Rs. 89,960 crores from RBI's repo window at 6%, implying a liquidity crunch in the system.
HDFC BANK TOPPLES ICICI IN CREDIT CARDS WITH 5 M BASES
• With a base of 5 million cards, HDFC bank is now an undisputed leader in credit card base from a high of 8.5 million to four million cards at present.
• Credit card spends by Indian consumers have seen a 27% jump in august 2010.
• HSBC India with a card base of 1.5 million is also growing its portfolio once again.
CENTRAL BANK UPS BASE RATE BY 50 BPS
• Public sector Central Bank of India has revised upwards its base rate 50 bps.
• Bank's base rate now stands at 8.50% as against the earlier 8%
• The revised base rate is effective from October 20.
NO MAJOR LPG SHORTFALL: PSUs CLAIM
• Public sector oil marketing companies have confirmed that there is no shortfall of LPG in the country
• Any fall in production at refineries is compensated by arranging additional imports at Mumbai and Gujarat.
• The oil industry has decided to operate the bottling plants on holidays/Sundays as well as extended hours during normal days to ensure availability.
• Enrolment of customers during the current financial year is approx. 7lacs in Maharashtra & Madhya Pradesh.
DDA CAN ENCASH EMAAR BANK GUARANTEE:HC
• The Delhi High Court allowed the DDA to encash Rs. 90 crore, which was deposited by Emaar MGF(the builder of Commonwealth Games village) as bank guarantee,for not completing the project on time.
• The order was passed on a petition filed by the company seeking to restrain DDA from seizing the bank guarantee of Rs.183 crore as damages for not completing project on time.
• The court said the rest of the amount will not be encashed if it had not been done so far.
WAL-MART OKAY WITH PACE OF RETAIL FDI REFORMS
• Mike Duke, Wal-Mart’s global CEO met the deputy chairman of planning commission, Montek
Singh Ahluwalia and commerce and industry minister Anand Sharma, said he got positive response towards opening opening the multi- brand retail sector to foreign investment.
• Regarding its JV with Bharti Retail, Duke said until now the two companies share a beneficial agreement and after analyzing the changes made by the govt. would he be able to comment on it.
HUL ACHIEVES HAT-TRICK OF DOUBLE- DIGIT SALES GROWTH
• Hindustan Unilever posted a 32% rise in its net profit at Rs. 566.12 crore in the three months ended September 2010 against Rs. 428.53 crore in the same quarter last year.
• There was an exceptional gain of Rs. 40 crore including a reduction in restructuring cost, an asset sale and profit on long term investments. Excluding the exceptional gains, the profits have grown by 7% year-on-year.
• Personal products category grew by 15%.HUL shares rose 1.36% on the BSE on Monday to close at Rs. 305.65.
IDEA NET PROFIT FALLS 10.5% TO RS. 180 CR
• Idea Cellular reported a decline in net profit by about 10.5% to Rs.180 crore in the second quarter against Rs. 201 crore in the first quarter of the current financial year.
• Average revenue per user (Arpu) during the quarter was down by 8%.Idea’s pan-India
• Ebitda margins declined to 24% during the quarter from 24.3% from the last quarter.
• The company said it would launch the 3G dervices by the first quarter of the next calendar year.
MANU ANAND TO HEAD PEPSICO INDIA
Manu Anand will succeed sanjeev chadha as chairman & CEO, PepsiCo India.The Company has announced chadha will take over as PepsiCo’s chief for the west Asia & Africa region, with effect from january1, 2011.
He will also be a member of PepsiCo’s global leadership team: the PepsiCo Executive committee. Anand moves into this role from Thailand, where he was the CEO for south east Asia, responsible for foods and beverages business in Thailand, Vietnam, Cambodia, Laos, Malaysia, Singapore, Indonesia, And The Pacific Islands.
BHARTI TO LAUNCH 3G BY YEAR END
The country’s largest telecom operator Bharti Airtel would commence its 3G services by the end of this year. With it is third operator after Tata Teleservices and Vodafone- Essar to announce the launch of 3G services in the country.
Bharti Airtel won 3G spectrum in 13 telecom circles of the total 22 for Rs 12,295 crore.
These 13 circles also constitute 68% of Airtel’s revenue market share in the country. The circles include key metros such as Delhi, Mumbai, Chennai, and Hyderabad, which account for 21%of all data traffic in the country.
Coal India issue priced at Rs 245
The government on Monday fixed coal India’s mega IPO issue price at Rs 245 per share, the upper end of initial offer price range.
The government would fetch over Rs 15000 crores by issuing 63.16 crore shares of Coal India at a price of Rs 245 per share. It will offer a discount of 5% to retail investors. The company is expected to list on stock exchanges on November 4,with some fireworks a day before Diwali. Coal India’s initial public offer, which closed on October 21, made history by getting oversubscribed by 15.17 times mopping up Rs 2,35,290 crore.
I-T DISTORTING HC ORDER: VODAFONE
• Supreme court adjourns case till November 15.
• Vodafone International Holdings BV on Monday challenged the income tax department’s new demand notice asking the British telecom giant to pay around Rs 11,218 crore as tax on the 2007 Vodafone-Hutch cross-border deal that created Vodafone-Essar.
• The department on October 22 had issued a new order raising a tax demand of Rs 11,217.95 crores on Vodafone International while treating it as an assesses in default for failure to deduct tax as required before making a payment of $11,076 million to Hutchison Telecommunication International, The order came pursuant to the apex court’s directions on September 27 asking the assistant director of income tax to determine the potential tax liability on the basis of apportionment within 4 weeks.
• The bench headed by chief justice SH Kapadia adjourned the matter till November 15 after the telecom company said it was filling a new application challenging the new demand notice fixing its liability.
26th October - Business Standard
Shailender Saini
Sharad Aggarwal
Section - G
Sensex - 20303.12 up by 137.26
Nifty – 6105.80 up by 39.75
Dollar – 44.36 Rs.
Gold (10 gram) – 19460 Rs.
1.SEBI doubles retail limit, tightens IPO norms
Sebi has increased the application limit for the retail investors to 2 lakh, from 1 lakh at present. From now onwards all the listed companies have to pay their dividend on a fixed date and have to announce the date prior.
Insurance companies which wants to take the initial public route have to disclose the risk factors, specially to the life insurance entities.
2. New regulatory wants for airfare, disputes
The new regulatory should be formed in the aviation sector, which will act as an arbitrator in case of disputes on the fare between customer and airlines. However they will be free to decide on ticket pricing. At present the fares are not regulated by any agency and are decided according to market +demand. None of us know the number of seats being allotted to different buckets or how the system functions. So to remove this, there is a need of regulatory authority in this sector.
3. Shares of SKS microfinance decreased
Yesterday the share price of SKS microfinance slips below the issue price of Rs. 985. the SKS lost nearly a third of its value since it was the high profile listing company in August. It fall 15 % to touch a level of Rs. 894.70 during yesterday trade in BSE (Bombay stock exchange). The slide in SKS stock intensified after its board sacked their managing director Mr. Suresh Gurumani on October 4.
On this huge inflation in the market share of SKS microfinance the SEBI chairperson Mr. C.B.Bhave said “Sebi enquired about SKS. we have not reached on a conclusion whether Sebi rules were violated or not. The process of finding out the facts is on”
The company has come under intense scrutiny in recent weeks, amid reports that high interest rates and coercive loan collection method by MFI’s have resulted in more than 30 suicides in Andhra pardesh.
4. Domestic airlines’ date with T-3 on November 14
The erratic power supply and incomplete under pass forced the government to extend the date up to 14 November to stat the domestic operation at the IGI airport’s T3. The initial date to finish it was July 31. After that it was extended to august 27, again it was extended till 30 October. But now again it is extended to 14th November. We hope this time on pt. Jawaharlal Nehru birthday brings us a good news from this side.
5. Haryana will experience first to dial portability
Haryana is going to experience the mobile number portability (MNP). Through this the subscriber can change their service provider without changing their mobile numbers. It has been delayed thrice less than a year. But now it is done, it will come into existence from the November 25. The service will begin in the Haryana circle on November 8 and go live on November 25. For the rest of the cities it will be implemented in phases. The initial date to start this service in the whole country was 1 April 2010, but it was delayed due to operators testing their networks and a foreign investment promotion board clearance.
6. NTPC will invest Rs.20000 crore thermal plant in M.P
NTPC is going to invest Rs. 20000 crore to set up a plant of the coal based power project which will produce 3960 MW electricity. NTPC signed a memorandum of understanding with the state government and M.P power trading company and is filing in BSE. The project is likely to commissioned during the 12th five year plan 2012-17. The project is expected to increase its capacity to 75000 MW by 2017.
NTPC is also looking at acquiring coal blocks in QUEENSLAND and NEW SOUTH WALES and has identified two three such properties, for which it is in talks with merchant bankers.
7. On day 1, MFIs struggle to make recoveries
Almost two weeks after the Andhra pardesh government issued ordinance to rain in erring micro finance institutions operating in the state which stopped recovering after the ordinance of oct. 15, 2010. The ordinance is insisted on MFIs getting registered with district rule and development agencies, apart from imposing a three imprisonment or a fine of Rs. 100000 on MFIs that harass borrows. In return micro finance institution networks of 44 members challenged the ordinance in High Court.
8. Titan industries net up 65%
The titan industries the watches and jewellery retailer( Tata group)has posted a 64.7 % rise in net profit to Rs. 127.8 crore in second quarter which ended September 30. They reported a 34% rise in sales to RS. 1551.2 crore during the period compare to Rs.1156.4 crore in the same quarter last year.
9. Coal India IPO price fixed at Rs. 245
This issue will fetch 15,100 crore for the government the shares will be listed on November 4. Analysts expects the stock to trade at a premium to global coal producers by giving much lower volatility in a names and large headroom to rise prices in a supply deficit environment. Coal India’s IPO was the largest public issue in the countries corporate history and was subscribed more than 15 times before it closed on Oct. 21. It is aimed at raising over Rs. 40000 crore by the end of this financial year.
10. PepsiCo India Chief Elevated To Head Best Asia And Africa
Today announced that Sanjeev chadha chair person and CEO of PepsiCo of India region would take charge as chief for the middle east and Africa from Jan. 1. He will also be a member of – PepsiCo executive committee, which is PepsiCo’s global leadership team. Manu Anand will succeed Sanjeev chadha as chair person and CEO of India region.
Sharad Aggarwal
Section - G
Sensex - 20303.12 up by 137.26
Nifty – 6105.80 up by 39.75
Dollar – 44.36 Rs.
Gold (10 gram) – 19460 Rs.
1.SEBI doubles retail limit, tightens IPO norms
Sebi has increased the application limit for the retail investors to 2 lakh, from 1 lakh at present. From now onwards all the listed companies have to pay their dividend on a fixed date and have to announce the date prior.
Insurance companies which wants to take the initial public route have to disclose the risk factors, specially to the life insurance entities.
2. New regulatory wants for airfare, disputes
The new regulatory should be formed in the aviation sector, which will act as an arbitrator in case of disputes on the fare between customer and airlines. However they will be free to decide on ticket pricing. At present the fares are not regulated by any agency and are decided according to market +demand. None of us know the number of seats being allotted to different buckets or how the system functions. So to remove this, there is a need of regulatory authority in this sector.
3. Shares of SKS microfinance decreased
Yesterday the share price of SKS microfinance slips below the issue price of Rs. 985. the SKS lost nearly a third of its value since it was the high profile listing company in August. It fall 15 % to touch a level of Rs. 894.70 during yesterday trade in BSE (Bombay stock exchange). The slide in SKS stock intensified after its board sacked their managing director Mr. Suresh Gurumani on October 4.
On this huge inflation in the market share of SKS microfinance the SEBI chairperson Mr. C.B.Bhave said “Sebi enquired about SKS. we have not reached on a conclusion whether Sebi rules were violated or not. The process of finding out the facts is on”
The company has come under intense scrutiny in recent weeks, amid reports that high interest rates and coercive loan collection method by MFI’s have resulted in more than 30 suicides in Andhra pardesh.
4. Domestic airlines’ date with T-3 on November 14
The erratic power supply and incomplete under pass forced the government to extend the date up to 14 November to stat the domestic operation at the IGI airport’s T3. The initial date to finish it was July 31. After that it was extended to august 27, again it was extended till 30 October. But now again it is extended to 14th November. We hope this time on pt. Jawaharlal Nehru birthday brings us a good news from this side.
5. Haryana will experience first to dial portability
Haryana is going to experience the mobile number portability (MNP). Through this the subscriber can change their service provider without changing their mobile numbers. It has been delayed thrice less than a year. But now it is done, it will come into existence from the November 25. The service will begin in the Haryana circle on November 8 and go live on November 25. For the rest of the cities it will be implemented in phases. The initial date to start this service in the whole country was 1 April 2010, but it was delayed due to operators testing their networks and a foreign investment promotion board clearance.
6. NTPC will invest Rs.20000 crore thermal plant in M.P
NTPC is going to invest Rs. 20000 crore to set up a plant of the coal based power project which will produce 3960 MW electricity. NTPC signed a memorandum of understanding with the state government and M.P power trading company and is filing in BSE. The project is likely to commissioned during the 12th five year plan 2012-17. The project is expected to increase its capacity to 75000 MW by 2017.
NTPC is also looking at acquiring coal blocks in QUEENSLAND and NEW SOUTH WALES and has identified two three such properties, for which it is in talks with merchant bankers.
7. On day 1, MFIs struggle to make recoveries
Almost two weeks after the Andhra pardesh government issued ordinance to rain in erring micro finance institutions operating in the state which stopped recovering after the ordinance of oct. 15, 2010. The ordinance is insisted on MFIs getting registered with district rule and development agencies, apart from imposing a three imprisonment or a fine of Rs. 100000 on MFIs that harass borrows. In return micro finance institution networks of 44 members challenged the ordinance in High Court.
8. Titan industries net up 65%
The titan industries the watches and jewellery retailer( Tata group)has posted a 64.7 % rise in net profit to Rs. 127.8 crore in second quarter which ended September 30. They reported a 34% rise in sales to RS. 1551.2 crore during the period compare to Rs.1156.4 crore in the same quarter last year.
9. Coal India IPO price fixed at Rs. 245
This issue will fetch 15,100 crore for the government the shares will be listed on November 4. Analysts expects the stock to trade at a premium to global coal producers by giving much lower volatility in a names and large headroom to rise prices in a supply deficit environment. Coal India’s IPO was the largest public issue in the countries corporate history and was subscribed more than 15 times before it closed on Oct. 21. It is aimed at raising over Rs. 40000 crore by the end of this financial year.
10. PepsiCo India Chief Elevated To Head Best Asia And Africa
Today announced that Sanjeev chadha chair person and CEO of PepsiCo of India region would take charge as chief for the middle east and Africa from Jan. 1. He will also be a member of – PepsiCo executive committee, which is PepsiCo’s global leadership team. Manu Anand will succeed Sanjeev chadha as chair person and CEO of India region.
26th October - The Mint
Rupesh Kumar Chaturvedi
Rotash Chandra Sahu
Section - H
1. SEBI Clears IPO norms for Insurers
Capital market regulator Securities and Exchange Board of India cleared the decks for initial public offerings (IPO’s) by life insurance firms, but the much-anticipated changes in the takeover code weren’t approved by the watchdog as discussions at the board meeting remained “inconclusive”. Regulator postpones discussion on takeover code changes to next board meet; IPO retail investment cap doubled.
2. Trade deficit narrows to lowest level since April as import growth slows:-
The rising rupee has been a growing worry for Indian exporters. Exports continued to grow smartly in September while import growth slowed, as a result of which the trade deficit shrunk to its lowest level since April, coming in at $9.12 billion ( Rs 40,492.80 crore).
3. Price hikes, tax sops help HUL profit rise:-
Marginal price increases along with tax incentives helped Hindustan Unilever Ltd (HUL) exceed expectations on Monday with a 32% jump in net profit for the quarter ended 30th September.
4. DBS aims to widen Indian focus, build customer banking base:-
Singapore’s largest lender DBS Bank Ltd aims to widen its focus to build a consumer banking base in Asia’s third largest economy. The Indian arm of Singaporean lender seeks to generate 25-30% of deposits from retail clients.
5. Japan, India ink deal to boost investment:-
The leaders of India and Japan signed a broad agreement on Monday aimed at increasing trade and agreed to speed up talks towards a civilian nuclear energy deal- despite sensitivity in Japan over India’s past atomic tests.
6. SC rejects L&T plea for stay on awarding of NTPC contracts:-
The SC on Monday dismissed engineering firm Larsen & Toubro Ltd’s plea to hold the award of bids by NTPC Ltd, clearing the way for the state-owned power utility to award the contract, the largest ever supply of power equipment in the country.
7. Number portability likely to be delayed by 2-3 more months:-
Mobile phone users are likely to get the option of retaining numbers while changing service providers by the end of this year or early 2011. Some analysts say MNP will pose a higher risk to CDMA operators than GSM ones.
8. Idea profit drops on salary hikes, tariffs:-
Idea Cellular Ltd, India’s sixth largest mobile telephony services provider by subscribers & also a part of the Aditya Birla Group, reported a 10.7% decline in profit in the September quarter. The consolidated profit was Rs 179.7crore, down from Rs 201 crore during June quarter.
9. Manu Anand to head PepsiCo India:-
PepsiCo Inc. on Monday announced the appointment of Manu Anand as its new India-head following the promotion of incumbent chairman and chief executive Sanjeev Chadha as chief of the beverage and snacks giant’s Middle East and Africa operations with effect from January 1st, 2011.
10. Titan Q2 net beats forecast, up 64%:-
Titan Industries Ltd posted a 64% year on year jump in net profit to Rs 128 crore, beating a Reuter’s poll forecast of Rs 109 crore. Net sales of the firm rose to Rs 1536 crore from Rs 1147 crore posted a year ago.
11. Inflation to moderate to 6% by December:-
The Planning Commission on Monday exuded confidence that inflation would to 6% by December end from over 8% currently, mainly on account of good farm output. The agriculture sector growth output during 2010-2011, according to Planning Commission member (agriculture) Abhijit Sen, is expected to be around 7%, the highest in the 11th Five Year Plan.
12. Wal-Mart pitches for FDI hike in retail:-
Mike duke, president and CEO of Wal-Mart Stores Inc. urged India to foreign investors, saying this would benefit the consumers and help bring down inflation. He says opening up the country’s retail sector will help the consumers and help the government bring down inflation.
13. Rajasthan Royals moves Bombay HC:-
The Indian Premier League franchise Rajasthan Royals has moved the Bombay High Court against the termination of its franchisee contract by the Board of Control for Cricket in India (BCCI).
14. Bharti to launch 3G services this year:-
Bharti Airtel Ltd on Monday said it will launch the much- awaited 3G services before the end of this year, making it the 3rd private operator in the country after TATA TELESERVICES Ltd and Vodafone to unveil plans for offering mobile broadband.
15. PMO fixes terms for CWG probe panel:-
The Prime Minister’s Office (PMO) on Monday fixed the terms of reference of the committee set up to probe irregularities during the Commonwealth Games held from 3rd October to 14th October in Delhi. It also added a member to the panel headed by former Comptroller and Auditor General V.K. Shunglu.
16. Aditya Birla Group’s PE arm to invest $30-40 million byApril:-
Aditya Birla Capital Advisors Pvt. Ltd, or Abcap, the private equity (PE) arm of the Aditya Birla Group, plans to invest around $30-40 million by April, said Abcap’s managing director and chief executive Bharat Banka. The company plans to have a portfolio of 10-15 firms and will target deals sized around $15-20 million.
17. Sensex rises as foreign investors increase holdings of local shares:-
India’s stock rose, driving the benchmark index to its highest in more than a week, as foreign investors increased holdings of local shares. The benchmark index gains 0.7% to 20,303.12 from 20,225.31. The Nifty Index on the National Stock Exchange rose 0.7% to 6,105.80.
18. HUL grows revenue, but at a high cost:-
Hindustan Unilever Ltd (HUL) surprised the Street with a record volume growth of 14% in the quarter ended September. The company had taken some price cuts, due to which revenue growth was lower at around 11%, which again, was higher than Street estimates.
19. Dollar weakens after G-20 talks:-
The dollar fell broadly after the Group of 20 nations agreed over the weekend to avoid “competitive devaluation” of their countries. As a result of which dollar falls to a 15-year low against the yen, and now it could even test its record low this week.
20. Trail in Satyam scam to begin on 2nd November:-
The trail in the multi-crore Satyam Computers Ltd fraud case will begin on 2nd November, nearly 22 months after its founder B. Ramalingam Raju admitted in January last year to fudging the company’s accounts to the tune of Rs 7,200 crore.
Subscribe to:
Posts (Atom)
