Business Opportunities
As expected, the S&P CNX Nifty closed at 5,201 levels on long rollovers in index futures and key stocks futures. The index is expected to consolidate above 5,200 in the new series before moving above the short-term target of 5,350. The rollovers in the Nifty January futures, at 22 million, were at a five-month low, which indicates that bears are waiting in the wings. At similar point in July 2009, the Nifty had gained over 500 points in a couple months to move above 5,000 in September 2009. A similar trend may see the Nifty moving above 5,500 in the near future.
Private sector insurer Aviva Life Insurance today said it plans hire about 1,500 sales managers and 13,000 agents in the next seven months to drive business growth.
Institutional investors are exercising caution when it comes to their commitment towards private equity funds and the volume of funds raised in the second quarter this year fell by more than half to $79.7 billion over the same period last year, says a survey.
The Department of Telecom (DoT) is understood to have decided to slap a total penalty of Rs 132 crore on some major telecom operators for not rolling out services on time after the award of licence and spectrum. The penalty, which will be in the form of liquidated damages (LDs), are for delays since 2005, for which show-cause notices had been issued earlier.
Factory productions expanded at a greater pace for the second month in a row growing by 6.8 per cent in July against 6.4 per cent a year ago, signalling an industrial recovery.
India"s steel consumption rose by 5.7 per cent to 26.49 million tonnes in the first six months of the current fiscal over the same period a year ago on account of improved demand from sectors like automobile and consumer durables.
JSW Steel, the country"s largest private sector steel maker by domestic capacity, today said its production rose 54 per cent to 15.39 lakh tonnes in the second quarter of this fiscal on robust demand.
The government is not inclined to intervene if steel companies raise prices, Steel Secretary Atul Chaturvedi has said. “If prices can go down, they can rise also. We have no immediate plans to intervene in pricing,” Chaturvedi told reporters on the sidelines of the Federation of Indian Chambers of Commerce and Industry (Ficci) Steel Summit here.
Voicing concern over the challenge posed by proponents of extremist ideologies through intimidation and terror, Prime Minister Manmohan Singh today said steps need to be taken to tackle this "grave menace".
Railway Minister Mamata Banerjee is not the only minister in the UPA cabinet who prefers a four-bedroom flat to a bungalow in Lutyens’ Delhi. Bijoy Krishna Handique, minister of mines, hasn’t shifted to a bungalow either and is quite happy to stay at his existing flat.
The Sensex has mangaed to erase all of its losses and has rebounded into the positive zone. The index is now at 15,646, up 17 points.
T N Ninan / New Delhi October 10, 2009, 0:22 IST
With thousands of jobs across Europe at stake and the spectre of an internal subsidy race that would threaten the hard-fought internal market of the European Union (EU), the General Motors–Opel saga saw another twist in the tale this week, with Brussels stepping in to play referee.
Leaving its worst year behind, global IT spending is expected to increase 3.3 per cent in 2010, research firm Gartner said.
Facebook: Stock markets have wobbled of late, but has Facebook’s value really plunged by 35 per cent in just two months? For those unacquainted with Silicon Valley’s quirky financing that would be one conclusion to draw from the social networking website’s latest stock sale.
A local court here after verification has handed over the supplementary chargesheet documents filed by the Central Bureau of Investigation (CBI) to the nine accused in the Satyam scam.
As the Ministry of Finance gets into the Budget mode, its officials perhaps want to tell themselves, “All is well”. So, they have none other than Aamir Khan, alias Rancho of recent Bollywood blockbuster 3 Idiots, talking to them this weekend on Cinema and Society.
Major steel makers are facing inordinate delays in acquiring land in the east.
Adani Enterprises today said it has received approval from its shareholders for upsizing the amount to be raised through share sale to qualified institutional buyers (QIBs) to Rs 4,000 crore from Rs 1,500 crore which was planned earlier.
Hospital chain Fortis Healthcare today said it has got approval from the regulatory body Sebi for its Rs 997-crore rights issue for funding some of its expansion projects and its recent acquisition of Workhardt Hospitals.
Opto Circuits today said its wholly owned subsidiary, Criticare Systems Inc (CSI), has entered into a long term agreement with a European firm for supplying patient monitoring systems and anesthetic gas delivery products.
There is generally little to recommend on government publications except for those that have some useful data. Not that there will not be exceptions. A new brochure from the steel ministry will find favour for offering an unambiguous roadmap for the industry’s future, along with neatly arranged data.
Ackruti City will open the qualified institutional placement (QIP) issue to the qualified institutional buyers (QIBs) on September 3. This will be in respect of issue of equity shares of face value of Rs 10 each of the company.
The cost at which home loan major HDFC is borrowing Rs 4,000 crore — 7.15 per cent for two years and 7.85 per cent for three years — is very reasonable. The money will come in handy for the company to subscribe to warrants of HDFC Bank for an estimated amount of Rs 3,600 crore. The qualified institutional buyers (QIBs) who have bought the non-convertible debentures (NCDs) are also entitled to warrants, which can be converted into shares within three years at Rs 3,265 per share.
Sees huge market in the US for ‘NuPatch’.
Secretary of State Hillary Clinton will embark on a seven-nation African Safari next week as part of Obama Administration"s commitment to make Africa a priority in the US foreign policy.
FMCG major Godrej Consumer Products today said the Bombay High Court has given its approval for the merger of the company"s two group firms — Godrej ConsumerBiz and Godrej Hygiene Care — with itself.
Asian markets pared gains and ended almost flat today. The Hang Seng added 61 points to 22,268. The Nikkei was up 62 points at 9,871.
The Sensex has ended (provisional) at 16,844 - up 148 points. The Nifty ended (provisional) at 4,997 - up 44 points.
The stock slipped to a low of Rs 2,509 and finally settled at Rs 2,526, down 1.5% from its previous close. The counter clcoked volumes of 182,219 shares on the BSE as compared to the two-week daily average traded volumes of 164,010 shares on the BSE. ___________________________________________
The Sensex has opened at 16,336 down 17 points.The index is now at 16,263, down 95 points.
Suggests settlement initiated by Sebi.
The Nifty futures closed in a Doji pattern after a gap-up opening. This indicates that futures and options (F&O) traders are wary of taking positions on either side. Trading in the Nifty options on Tuesday suggested that the index might fall below 4,910 in the near future.
Foreign institutional investors (FIIs) have raised their holding in most large- and mid-cap information technology (IT) stocks.
Trades between FIIs generated a volume of Rs 29 crore on the BSE Thursday-an increase of 40.27% from Rs 21 crore clocked on Wednesday. As many as five stocks witnessed trades of 6.44 lakh shares on Thursday.
Air India vacates posh Berkeley Square space, will it leave Nariman Point?.
The Indian markets opened weak, on the back of negative US and Asian cues. There were feeble attempts at a comeback, with the markets crossing over into the green in the first hour of trade and again around noon, only to retrace immediately thereafter. The afternoon session was volatile, albeit in the red, as the indices unsuccessfully attempted to claw back above the dotted line.
The Sensex has finally ended (provisional) at 16,674 - down 108 points.
Though the Nifty closed slightly below 5,000 today, the trading volume in the put and call options suggests that bulls will find it difficult to hold on to this level.
To encourage foreign portfolio investment, the Finance Ministry has set up a working group for suggesting changes in the existing policy on foreign capital inflows by FIIs, NRIs and venture capital funds.
Anil Ambani’s radio business, Reliance Media World, which operates radio station BIG FM 92.7, will list on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Friday, December 4. This makes BIG FM 92.7 the second radio station to be listed on the stock exchanges.
The Sensex has soared to a high of 17,270 and is now moving strong at 17,259, up 127 points. The NSE Nifty is at 5,127, up 37 points.
The industry representatives have urged the Orissa government to remove various bottlenecks coming in the way of setting up of industries in the state.
The need is to identify free land areas, says steel secretary.
Business Standard / New Delhi December 21, 2009, 0:38 IST
The face of telecom India, Sunil Mittal, who was once keen on joining politics but left his ambition behind to create the largest private teleco, feels it is time for greater business-politics ties on the lines of Nandan Nilekani heading a prestigious government programme.
Centre today said work on the Loharinag Pala, Pala Maneri and Bhaironghati hydel power projects in Uttarakhand has been suspended due to agitation by some environmental groups.
Comviva (formerly Bharti Telesoft) is in talks with several telecom service providers, including group company Bharti Airtel, to launch a SIM (or Subscriber Identity Module) card that allows up to 10 users to share the same mobile phone with their own specific numbers.
Faced with the threat of closure, metal scrap traders have appealed the government to reshuffle taxation structure to volume-based from value-based.
The government has written to telecom operators, Bharti Airtel, Idea Cellular, Vodafone and Tata Teleservices, asking them to be punctual in sharing information with special auditors looking into revenue leakage.
The Joint Action Committee (JAC) comprising the TRS and other parties withdrew the bandh call on the Telangana issue today following an appeal made by Christian organisations in view of Christmas celebrations.
Ahead of its upcoming annual general meeting on December 31, 2009, Israeli drug company Taro Pharmaceutical has asked its shareholders to reject a takeover bid by Sun Pharmaceuticals.
Pharma firm Jubilant Organosys today said it has joined hands with the University of Alabama at Birmingham and Southern Research Institute to benefit from their collective innovation and enabling technologies.
Whitehall officials examining the feasibility of such a sale.
The Nifty ignored all bullish indicators and closed below 5,000 on profit-booking and weak global cues. The close of 4,953 is marginally above the 61.8 per cent retracement level of 4,940. Hence, if it falls below this, it can retreat to 4,860. Also, the Nifty has gained over 10 per cent since the last week’s low of 4,538 and so more correction is possible in the coming days.
FMCG major GlaxoSmithKline Consumer Healthcare today expanded its portfolio by launching biscuits for toddlers under its flagship Horlicks brand and plans to achieve sales worth Rs 50 crore from the product in next three years.
State gas utility GAIL India Ltd plans to raise around Rs 2,000 crore during the current fiscal to part fund its expansion plans.
The Delhi High court today dismissed a petition filed by Mumbai-based Man Industries challenging GAIL"s decision to re-bid for the Dahej-Vijaipur gas pipeline project.
P B Jayakumar / Mumbai September 25, 2009, 0:10 IST
The government is examining the economic climate for divesting its stake in state-run Shipping Corporation of India (SCI).
The National Pharmaceutical Pricing Authority (NPPA) has sent a notice to Cipla for allegedly overcharging customers. The government arm has imposed a fine on the company for selling Ciprofloxacin and Doxycycline medicines at a higher price than the one stated by the government.
The trick is in getting the management rather than the numbers right, believes K N Sivasubramanian
Alleges the Indian drug maker misled shareholders.
Wockhardt closed at Rs 175, lower by Rs 5 or 2%, on the BSE.
Business Standard / New Delhi November 03, 2009, 0:43 IST
The Sensex has finally ended (provisional) at 15,881 - down 171 points.
Government’s security concerns about Chinese equipment makers not a deterrent.
In spite of a major regulatory clampdown on its US subsidiary, Caraco, Mumbai-based Sun Pharmaceuticals is trying hard to keep its US market share intact. The company is relying on its own manufacturing facilities to deliver goods to the US market. All eight ANDAs (abbreviated new drug applications) for sales permission in the US filed during the first quarter of the current financial year (Q1FY2010) came from Sun’s facilities.
Sun Pharma touched a high of Rs 1,459 and finally ended at Rs 1,436, up 2% from the previous close. The counter clocked volumes of 234,664 shares on the NSE today.
Tata Motors has said all the existing bookings of the Nano will be delivered at the current prices, notwithstanding the rising input prices.
Aurobindo Pharma, a Hyderabad-based manufacturer of generic pharmaceuticals and active pharmaceutical ingredients (APIs), has received final approval for Zidovudine tablets in 60mg strength and tentative approval for Lamivudine tablets in 30mg – indicated for the treatment of HIV-I infection in combination with other anti-retrovirals (ARVs) – from the US Food and Drug Administration (USFDA).
The US Food and Drug Administration says a vaccine from GlaxoSmithKline successfully blocks the virus that causes most cases of cervical cancer.
The seizure of Caraco’s drugs by the FDA could have an adverse impact on Sun Pharmaceutical in the near term.
Rrishi Raote / New Delhi November 22, 2009, 0:59 IST
US markets ended mixed on Tuesday as the Nasdaq edged up on news of a railroad acquisition. The Dow, however, slipped on statements of the US Federal reserve.
Left parties today demanded cancellation of the government"s decision to divest up to 10 per cent of its shares in profitable public sector units (PSU), calling it a "patently anti-national step".
The share price of telecom major Bharti Airtel Ltd today rose 4.01 per cent to close at Rs 435 on the Bombay Stock Exchange (BSE) after the lengthy talks to acquire African telecom company MTN failed on Thursday for the second time. The stock today touched a high of Rs 467 and a low of Rs 434 on BSE.
Investors were reluctant to buy or sell aggressively today ahead of a closely-watched US job report on Friday. The trading volume in Nifty futures and options (F&O) suggested mere change of hands as buy- and sell-side traders were evenly matched.
In a blow to the Securities and Exchange Board of India (Sebi), the Securities Appellate Tribunal (SAT) has set aside the former’s ruling in the case of Tata Tea, wherein Sebi had asked the company to pay non-compete fees to all shareholders of Mount Everest Mineral Water.
Currency volatility is a concern for India’s largest information technology company, Tata Consultancy Services (TCS). So much so, that it has taken new hedging positions worth $135 million (around Rs 630 crore) for the quarter ending December 31.
The Tamil Nadu government attracted investments worth Rs 15,000 crore during 2009, majority of which was driven by the automobile industry.
The Reserve Bank of India"s (RBI"s) panel on revamping the existing benchmark prime lending rate (BPLR) will meet tomorrow for further deliberation with bankers.
A good rainfall over the last week has cheered the farmers of Dharwad district and they are now busy on their agricultural plots. Farmers were worried over the delay in the onset of monsoons as there were no rains in June. However, to dispel their anxieties the rain god has smiled on farmers.
Did not figure in last year’s rankings as it did not do any QIP or IPO.
Volkswagen AG’s supervisory board signed off on contracts for its takeover of Porsche SE in stages, clearing the way for Europe’s largest automaker to add the 911 sports car to its model line up.
Describing reports that government was trying to privatise the public sector as a "malicious propaganda", Union Finance Minister Pranab Mukherjee today said the Centre"s policy was to strengthen PSUs and not weaken them.
Business Standard / New Delhi October 12, 2009, 0:07 IST
Facing allegations of approving Reliance Industries" (RIL) inflated gas field costs, that could hurt government revenue, oil regulator Directorate General of Hydrocarbons (DGH) today launched an advertisement campaign saying the exchequer would get $16.57 billion compared to $9.5 billion for the company.
Bhavin Shah, Managing Director, Global Equity Research (Technology Sector), JPMorgan, says the worst may be behind us
Oil & Natural Gas Corporation (ONGc), the country"s largest public sector undertaking, has posted a decline of 26.95 per cent in its net profit for the quarter ended 30 June, 2009 at Rs 4,847.92 crore as compared to Rs 6,636.33 crore in the corresponding quarter last year. The company"s net sales from operations during the quarter, too, dipped to Rs 14,879.27 crore from Rs 20,052 crore, down 25.8 per cent.
The Sensex has extended gains and touched a high of 17,554 - up 90 points. The Nifty is up 30 points at 5,231.
The prime minister’s assuring words about the robust economic growth and a firm close of European and Asian indices helped consolidate gains in a truncated week on account of Muharram and New Year. The BSE Sensex rose 104 points or 0.6 per cent to 17,465, while the Nifty rose 23 points or 0.4 per cent to 5,201 during the week.
Indian Railways could soon have its own dedicated television channel, broadcasting passenger related information and highlighting various other facets of the PSU behemoth, if the suggestion of a railway committee is accepted.
Twitter Inc will make about $25 million from Internet-search deals with Google Inc and Microsoft Corp announced in October, enough to push the site into profitability, people familiar with the matter said.
Googlephone: The Googlephone is coming. Google is escalating its effort to upend the mobile market by introducing a phone it has designed and which is currently being tested on its pointy-headed employees. The search giant"s interest in selling it without operator subsidies means the device probably won"t be a huge hit. But the handset is an important showpiece for the company"s mobile operating system.
Surinder Sud / New Delhi October 20, 2009, 0:54 IST
The Bengaluru International Airport today reported that passenger traffic would top 9.3 million during the calendar year 2009 which was a growth of 22 per cent over the previous year. Meanwhile, the cargo handled during the 12 months was estimated at 161,896 tonnes.
Armed forces today intensified search and rescue operations using 13 helicopters and over 100 boats in flood-hit states of Karnataka and Andhra Pradesh, reeling under one of the heaviest floods in the last century.
The Indian Army is short of over 11,387 officers, Defence Minister A K Antony told the Lok Sabha today.
Trades between FIIs generated a volume of Rs 75 crore on the BSE Friday-an increase of 33.49% from Rs 56 crore clocked on Thursday. As many as eight stocks witnessed trades of 13 lakh shares on Friday.
The Rs 1,12,000 crore domestic gems and jewellery industry has urged the government to modify tax deduction at source (TDS) structure suitably in the proposed Direct Tax Code (DTC).
Trade unions have asked the government to shelve the proposal in the draft Direct Tax Code to tax all savings and provident fund schemes at the time of withdrawal, saying the move would hit the salaried class hard.
We are always better analysts with a 20/20 hindsight. Indeed, an ex post reading about events leading up to a crisis appears logical, and often leaves one with the question about why the evolution of the crisis could not be seen and corrected in time. Still, policy-makers know that such a review and understanding are important to learning from mistakes. Restoring Financial Stability (Wiley) acts as a catalyst to that understanding by offering a comprehensive sequencing of the causes and progression of the build-up of the financial strains that, following the Lehman bust in September 2008, evolved into a full-blown global financial crisis. It is a collection of thematic essays by the faculty of the Stern School of Business at New York University.
The Central Bureau of Investigation (CBI), which is investigating into the Satyam case, has filed a memo in Nampally court today for hearing the charges against nine accused in the case.
The Sensex is now at 17,710, up 24 points. The NSE Nifty is at 5,285, up eight points
Procter & Gamble, the maker of Pampers diapers and Pantene shampoo, is in talks to buy part of Sara Lee Corp’s international household products unit, according to people familiar with the discussions.
Torrent Power and Gujarat Power Corporation Ltd. (GPCL) have signed a Share Holders Agreement (SHA) for developing coal based power project at Amreli with an overall capacity to generate 2,000 Mw in a phase-wised manner.
Bhupesh Bhandari / New Delhi November 19, 2009, 0:17 IST
The audit of the grant of telecom licences and allocation of 2G and 3G spectrum by the Comptroller and Auditor General of India (CAG) has taken an interesting turn, with the Department of Telecommunications (DoT) asking CAG to directly communicate with the CBI, as the required documents have already been seized by the investigation agency.
Godrej Group Chairman Adi Godrej today said global FMCG player Unilever"s move to acquire the personal care division of US-based Sara Lee will not have any impact on his group"s joint venture with the American firm.
Godrej Consumer Products Ltd, India’s second-biggest soap maker, may acquire some of Sara Lee Corp’s international businesses, including the US company’s stake in its Indian joint venture.
The scrip pared all the gains and touched a low of Rs 460. The stock finally ended flat at Rs 464. The counter clocked volumes of 6,418 shares as comapred to the teo-week daily average traded volumes of 6,862 shares.
Beauty services provider Kaya Skin Clinic will invest Rs 100 crore in setting up around 75 outlets across the country as well as in Saudi Arabia over the next three years.
Rajesh Bhayani / Mumbai December 24, 2009, 0:12 IST
The scrip ended at its 5% upper circuit at Rs 27. The counter clcoked volumes of 23,716 shares as compared to the two-week daily average traded volumes of 248,229 shares as compared to the two-week daily average traded volumes of 248,229 shares on the BSE.
Demand slowdown hits revenues.
Accounting regulator ICAI today said it has asked Reliance Communications (RCom), which is under attack for alleged fudging of accounts and evasion of licence fee, to provide financial details before it can initiate action against the teleco"s auditors.
Institute of Chartered Accountants of India (ICAI) has sought broad-ranging information about the association of its member institutions with foreign auditing firms.
Shivani Shinde / Mumbai October 16, 2009, 0:39 IST
Dubbing as "biased" the special audit report alleging overstatement of revenues and evasion of licence fee by Reliance Communications (RCom), its Chairman Anil Ambani today said corporate rivals were behind the "vicious campaign" against his group company.
T N Ninan picks out 10 themes for the coming 10 years.
Dalal Street ended virtually unchanged for the second day in a row after paring early morning gains. The Sensex added 16 points to close at 17,186 and the Nifty ended eight points up at 5,132. The BSE mid-cap ended 25 points higher at 6,613 and the small-cap strengthened by 71 points to 7,822.
A bill to give legal cover for construction, operation and maintenance of the metro rail system in the National Capital Region and other metro cities was introduced in the Lok Sabha today.
Shahana Joshi / New Delhi November 11, 2009, 0:34 IST
Investments of Rs 47,000 crore under implementation
Sensex, Nifty hit the first-ever upper circuit in history.
Rising demand for cleaner and cost efficient fuels, and the forthcoming Commonwealth Games are positive triggers for Indraprastha Gas.
Bank of India (BoI) is planning to buy back part of $240-million upper Tier-II bonds to save on servicing debt capital.
Trades between FIIs generated a volume of Rs 62 crore on the BSE Wednesday-an decrease of 94.93% from Rs 32 crore clocked on Tuesday. As many as five stocks witnessed trades of 9.74 lakh shares on Wednesday.
Bank of Baroda (BoB) today said it will raise Rs 3,500 crore by various debt instruments during the current financial year to fund its expansion plan.
Tata Steel today said it has deposited Rs 25 crore for reviving ailing cable manufacturer, Incab, following directions from the Board for Industrial and Financial Reconstruction (BIFR). The company is learnt to have submitted a Rs 100-crore revival plan for the cable manufacturer, awaiting clearance from BIFR, two persons close to the development had said.
Public sector Syndicate Bank today reported a 32 per cent drop in net profit to Rs 177.8 crore for the second quarter ended September 30 as compared with the corresponding quarter of last year. Its operating profit for the second quarter declined 5.2 per cent to Rs 443.3 crore compared to the year-ago period.
Power firm JSW Energy today said it will open bids for its initial public offer (IPO) on December 7 to raise a total of Rs 2,700 crore to fund the expansion plans.
Agro-chemical and pharma company Astec LifeSciences today said that it has fixed the price of its initial public offer at Rs 82 per equity share, the upper end of the price band.
The number of FIIs registering with Sebi this year touches six-year low.
Signalling that new political winds were sweeping Maharashtra and could soon have India in their grip, the Shiv Sena candidate for the post of the Mayor of Mumbai, Shraddha Jadhav was today elected defeating Congress nominee Pricilla Kadam.
More CCTV surveillance and tighter security norms are likely to prevail in nuclear installations across India after “an act of mischief” in the Kaiga nuclear plant in Karnataka, almost 500 km from Bangalore, left 50 scientists exposed to radiation.
Elections to 57 seats in the 60-member Arunachal assembly began early this morning amidst tight security.
Amid high security, polling began this morning to elect the 288-member Maharashtra Legislative Assembly.
Polling to elect new assemblies in Maharashtra, Haryana and Arunachal Pradesh began early this morning, in the first crucial test of popularity for major political parties after the Lok Sabha polls six months ago.
Congress MP L Rajagopal, who had threatened to go on an indefinite hunger strike to oppose division of Andhra Pradesh, today began his fast here.
The fissures in the Congress over the Telangana issue today came to the fore in the Lok Sabha with Y S Jaganmohan Reddy along with some other party members joining a TDP protest against the decision to carve out a separate state from Andhra Pradesh.
National Bank for Agriculture and Rural Development (Nabard), which recently increased the corpus of its Tribal Development Fund (TDF) to Rs 600 crore, has launched six projects for the integrated development of tribals in Karnataka.
A V Rajwade / New Delhi December 07, 2009, 0:32 IST