Closing Bell

BSE's benchmark Sensex on Tuesday closed at provisional 14,333.45, up 46.24 points or 0.32 per cent from the previous close. Intraday, the 30-share index touched a low of 14,161.76 and high of 14,369.59. NSE's 50-stock Nifty ended the day at provisional 4321.80, up by 8.25 points or 0.19 per cent.


3:30 pm: Ferro Alloys Corporation has recommended a final dividend of 35 per cent (Rs 0.35 per equity share of Re 1/- each) for the financial year 2007-08 in addition to interim dividend of 15 per cent declared and paid earlier taking total dividend for the year 2007-08 to 50 per cent. Further, the board have also declared interim dividend of 25 per cent (Re 0.25 per equity share of Re 1/- each) for the financial year 2008-09. The shares were down 8.24 per cent at Rs 27.30 on BSE.


3:15 pm: Skyline Millars has recommended final dividend of 10 per cent per share and also aproved sub-division of shares to Re 1 per shares subject to approval of shareholders. The shares were down 2.13 per cent at Rs 122 on BSE.


3:05 pm: Kesoram Industries has reported net profit of Rs 118.48 crore for the quarter ended Jun 30, 2008, against Rs 80.68 crore for the same quarter last year. For the same quarter net sales stood at Rs 1019.46 crore against Rs. 780.53 crore for the same quarter a year ago.


2:55 pm : Idea Cellular had approved to issue and allot 464,734,670 equity shares of Rs.10 each for cash at a price of Rs.146.96 on preferential basis. The company has now informed that: "Kindly read the Para as follows - issue and allotment of 464,734,670 equity shares of Rs.10 each for cash at a price of Rs.156.96 (including premium of Rs.146.96) on preferential basis.


2:45 pm: BEML has posted a net loss of Rs 17.43 crore for the quarter ended June 30, 2008 as compared to net profit of Rs 23.59 crore for the corresponding quarter previous year, while the total income has decreased to Rs 309.04 crore from Rs 406.96 crore earlier.


2:35 pm: Titan Industries net profit rose 154.90 per cent to Rs 32.22 crore for the quarter ended June 30, 2008 as compared to Rs 12.64 crore for the same quarter last year. Total Income has increased from Rs 658 crore for the June 2007 quarter to Rs 811.14 crore for the same quarter a year ago.


2:25 pm: Tata Communications has introduced two new Ethernet services to extend the company's industry-leading, global Wide Area Network Ethernet portfolio: Dedicated Point to Multipoint Ethernet and Dedicated Multipoint Ethernet Worldwide.


2:15 pm: Nagarjuna Construction Co. Ltd has reported net profit of Rs 37.08 crore for the quarter ended June 30, 2008 against Rs 36.03 crore in the year ago quarter. Net sales stood at Rs 970.94 crore against Rs 762.21 crore in the quarter ended June 30, 2007. Shares of the company were down 0.52 per cent at Rs 133.70 on NSE.


2:10 pm: Network 18 Fincap Ltd has reported net profit of Rs 4.57 crore for the quarter ended June 30, 2008 against a loss of Rs 6.53 crore for the corresponding quarter of 2007. Net sales for the period stood at Rs 23.28 crore against Rs 32.29 crore for the quarter ended June 30, 2007.
Shares of the company were down 0.49 per cent at Rs 171.50 on NSE.


2:00 pm: Shriram Transport Finance Company Ltd has reported 92 per cent jump in profit after tax to Rs 143.61 crore for the quarter ended June 30, 2008 from Rs 47.95 crore year earlier. Total income for the period increased to Rs 835.5 crore compared with Rs 480.41 crore in the quarter ended June 30, 2007. However, shares of the finance company were down 0.86 per cent at Rs 294.50 on BSE.


1:55 pm: Central Bank of India has reported a net profit of Rs 59.32 crore for the quarter ended June 30, 2008, down from Rs 98.35 crore in the same quarter of 2007. Total income has increased to Rs 2572.53 crore from Rs 1874.02 crore in the quarter ended June 30, 2007.

The bank's shares were down 1.51 per cent at Rs 58.80 on BSE.

1:50 pm: Bharat Forge Ltd has posted a profit after tax of Rs 26.56 crore for the quarter ended June 30, 2008, down from Rs 64.81 crore in the same quarter of 2007. This despite rise in total income to Rs 649.45 crore from Rs 516.88 crore in the quarter ended June 30, 2007.

The Group posted profit after tax and exceptional items of Rs 40.91 crore for the quarter ended June 30, 2008 against Rs 80.43 crore for the three months to June 30, 2007. Total income increased to Rs 1323.82 crore from Rs 1081.97 crore year ago.

Shares of the forging company were down 0.60 per cent at Rs 241.90 on BSE.


1:45 pm: Parsvnath Developers Ltd has posted a net profit of Rs 71.29 crore for the quarter ended June 30, 2008 compared to Rs 84.46 crore in the same quarter of 2007. Total income for the period increased to Rs 371.74 crore from Rs 356.85 crore year ago.

The Group posted a net profit of Rs 73.96 crore for the quarter ended June 30, 2008 against Rs 102.17 crore year ago. Total income decreased to Rs 380.74 crore from Rs 414.46 crore in the quarter ended June 30, 2007.

Shares of the real estate company were down 0.58 per cent at Rs 112.10 on BSE, off the high of Rs 114.70.



1:40 pm: Yes Bank Ltd has posted a net profit of Rs 54.33 crore for the quarter ended June 30, 2008, up 51 per cent compared to Rs 36.00 crore for the quarter ended June 30, 2007. Total income for the period increased to Rs 486.19 crore from Rs 348.49 crore year earlier. Shares of the private sector bank were up 1.65 per cent at Rs 129.20 on BSE. The stock had touched a high of 131.90 earlier.


1:35 pm : Victoria Mills has recommended dividend at Rs 50 per share. The company shares were 2.36 per cent to Rs 2867 on BSE.


1:30 pm: Flawless Diamond India' net profit rose 83.03 per cent to Rs 1.60 crore for the quarter ended on Jun 30, 2008 compared with Rs 87.2 lakh for the same quarter ended in 2007. Net sales increased 21.06 per cent to Rs 21.19 crore in Apr-Jun quarter of 2008 against Rs 17.50 crore in the corresponding quarter of previous year.


1:25 pm: ABC Paper has recommended payment of dividend of 7 per cent on the preference shares of Rs 10 each and 25 per cent on the equity shares of Rs 10 each for the year ended March 31, 2008. The company shares were 18.06 per cent to Rs 77.45 on BSE.


1:20 pm: Flawless Diamond India' net profit rose 72.14 per cent to Rs 7.79 crore for the quarter ended on Jun 30, 2008 compared with Rs 4.53 crore for the same quarter ended in 2007. Net sales increased 44.89 per cent to Rs 179.74 crore in Apr-Jun quarter of 2008 against Rs 124.05 crore in the corresponding quarter of previous year.


1:15 pm: Amrit Corp has recommended payment of dividend at the rate of 15 per cent on the equity shares of Rs 10 each (Rs 1.50 per equity share) for the year ended March 31, 2008.


1:10 pm: SREI Infrastructure Finance's net profit rose 38.27 per cent to Rs 32.19 crore for the quarter ended in June 30, 2008 compared with Rs 23.28 crore for the same quarter of 2008. Net sales decreased 16.30 per cent to Rs 101.57 crore in Apr-Jun quarter of 2008 against Rs 121.35 crore in the corresponding quarter of previous year.


01:00 pm: Castrol India has decided to pay an interim dividend at Rs 6 per equity share for the year ended on Dec 31, 2008. The company shares were 0.49 per cent to Rs 286.10 on BSE.


12:50 pm: Federal Bank’s net profit fell 1.81 per cent to Rs 68.15 crore for the quarter ended June 30, 2008 compared with Rs 66.94 crore for the same quarter ended in 2007. Total income increased 27.53 per cent to Rs 841.33 crore in Apr-Jun quarter of 2008 from Rs 659.70 crore in the corresponding quarter of previous year.


12:40 pm: Aishwarya Telecom has recommended 5 per cent dividend for the year 2007-08. The company shares were down 3.16 per cent to Rs 32.15 on BSE.


12:35 pm: BASF India has approved the proposal concerning setting up of compounding plant at Thane site for the engineering plastics business. The plant capacity would be 9000 TPA and the plant is expected to come on stream by the second half of 2009. the cost of the said compounding plant for the KT business is estimated at Euro 2.9 mio (INR 172 mio) and will be financed by internal accruals and borrowings.


12:30 pm: Indiabulls Real Estate shares were down 5.34 per cent to Rs 283.65 on BSE. Indiabulls Power Services, a 100 per cent subsidiary of the company, has entered into a memorandum of understanding with Madhya Pradesh government for setting up of 2640 MW power project. The Madhya Pradesh government will facilitate and extend all reasonable help and assistance to Indiabulls Power Services for setting up the aforesaid project.


12:25 pm: Shri Bajrang Alloys has recommended dividend at Rs 1 per share. The company shares were up 5.69 per cent to Rs 26.95 on BSE.


12:20 pm: Aarti Industries is a leading manufacturer of basic chemicals, speciality chemicals and pharmaceuticals. During the current year, company’s turnover jumped from Rs 194.3 crore in Q1 2007-08 to Rs 361.7 crore in Q1 2008-09 thereby posting a jump of over 85 per cent Similarly EBIDTA also increased by over 214 per cent, that is from Rs 20 8 crs in Q1 2007-08 to Rs 65 5 crore for Q1 2008-09


12:10 pm: Lupin Pharmaceuticals, Inc, US, a subsidiary Lupin has received final approval for the company’s abbreviated new drug application for divalproex sodium delayed-release tablets, 125 mg, 250 mg and 500 mg from the US Food and Drug Administration. Commercial shipments of the product have already commenced.

Lupin’s Divalproex sodium delayed-release tablets are the AB-rated generic equivalent of Abbott Laboratories’ Depakote tablets. Depakote has annual sales of $803 million for the twelve months ended March 2008, based on IMS Health sales data.


12:00 pm: EL CID Investments shares were currently trading at Rs 12 on BSE. The company has recommended dividend at Rs 10 (Previous year Rs 10) per share on 2,00,000 equity shares of Rs 10 each absorbing Rs 20 lakh


11:55 am: Lanco Infratech has reported a growth of 175.91 per cent to Rs 46.87 crore for the quarter ended June 30, 2008 compared with Rs 16.99 crore for the same quarter ended in 2007. Total income increased 242.47 per cent to Rs 537.17 crore in Apr-Jun quarter of 2008 from Rs 156.84 crore in the corresponding quarter of pervious year.


11:50 am: Facor Alloys shares were down 3.71 per cent to Rs 11.95 on BSE. The company has approved payment of interim dividend for the year 2008-09 on equity shares of Re 1 each a the rate of 15 per cent (Rs 0.15 per equity share.)


11:45 am: Triveni Engineering & Industries shares were 3.20 per cent to Rs 95.25 on BSE. The company has reported a net profit at Rs 24.60 crore for the quarter ended June 30, 2008 compared with net loss of Rs 19.97 crore for the same quarter ended in 2007. Total income increased 27.80 per cent to Rs 441.70 crore in Apr-Jun quarter of 2008 from Rs 345.61 crore in the corresponding quarter of 2008.


11:40 am: TAK Machinery & Leasing has recommended 20 per cent dividend on equity shares for the year ended March 31, 2008. The company shares were down 4.97 per cent to Rs 137.80 on BSE.


11:35 am: Spice Communications shares were down 0.07 per cent to Rs 73.75 on BSE. The company has posted a net loss to Rs 136.47 crore for the quarter ended June 30, 2008 compared with net profit of Rs 41.6 lakh for the same quarter ended in 2007. Total income increased 26.56 per cent to Rs 325.26 crore in Apr-Jun quarter of 2008 from Rs 257 crore in the corresponding quarter of previous year.


11:30 am: Dhandapani Finance shares were up 1.98 per cent to Rs 20.60 on BSE. The company has approved the issue and allotment of redeemable preference shares to Zwirn Pragati Capfin to the extent of 2,22,60,000 of Rs 10 each amounting to Rs 22.26 crore.


11:25 am: Valecha Engineering shares were up 4.59 per cent to Rs 153.80 on BSE. The company has recommended a bonus in the ratio of one share for every two shares held.


11:20 am: Indiabulls Real Estate shares were down 5.77 per cent to Rs 282.35 on BSE. The company’s net profit fell 3.88 per cent to Rs 6.80 crore for the quarter ended June 30, 2008 compared with Rs 7.08 crore for the same quarter ended in 2007. Total income increased 61.70 per cent to Rs 33.46 crore in Apr-Jun quarter of 2008 against Rs 20.69 crore in the corresponding quarter of previous year.


11:15 am: Arshiya International shares were up 4.20 per cent to Rs 174.95 on BSE. The company has approved in principle an investment to Rs 1,600 crore for the pan India Rail business in Arshiya Rail Infrastructure toward acquisition of 75 rakes, break vans, building of rail siding and other necessary infrastructure across the country.


11:10 am: Gujarat Mineral Development Corporation share’s were down 0.12 per cent to Rs 250.15 on BSE. The company's net profit rose 10.90 per cent to Rs 72.34 crore for the quarter ended June 30, 2008 compared with Rs 65.23 crore for the same quarter ended in 2007. Total income increased 24.56 per cent to Rs 286.44 crore in Apr-Jun quarter of 2008 against Rs 229.97 crore in the corresponding quarter of previous year.


11:05 am: Magnum Ventures shares were down 1.54 per cent to Rs 15.35 on BSE. With reference to the board meeting held on July 30, 2008, relating to raising of funds by means of a right issue of shares for the upcoming five star hotel project, Magnum Ventures has reported that the right issue has been decided as 1:2 (one equity share of Rs 10 each for every two equity shares held).


11:00 am: Sadhana Nitro Chem shares were up 1.65 per cent to Rs 52.50 on BSE. The company has recommended a dividend at Rs 1 (Previous year Rs 1.50) per equity share of Rs 10 each for the year ended March 31, 2008.


10:55 am: Indiaco Ventures shares were down 2.11 per cent to Rs 395 on BSE. The company has approved to the sale of investments held in the companies such as Verity Technologies and InfoDynamic Telesystems at a mutually agreed transaction price to IndiaCo Telecom , subsidiary of IndiaCo Ventures. The has also recommended for an additional investment of Rs 3.53 crore in InfoDynamic Telesystems through IndiaCo or its subsidiary Company IndiaCo Telecom.


10:50 am: Power Grid Corporation of India shares were down 0.56 per cent to Rs 97.55 on BSE. The company’s net profit fell 32.40 per cent to Rs 305.69 crore for the quarter ended June 30, 2008 as compared with Rs 452.18 crore for the same quarter ended in 2007. Total income increased 33.40 per cent to Rs 1407.91 crore in Apr-Jun quarter of 2008 against Rs 1,055.43 in the corresponding quarter of previous year.


10:45 am: Unity Infraprojects has bagged a contract valued at Rs 92 crore for construction of nine residential high-rise buildings at Hinjewadi, Pune from Flagship Infrastructure to be completed within 42 months.


10:40 am: Nissan Copper shares were up 2.13 per cent to Rs 33.50 on BSE. The company has recommended a dividend at the rate of 5 per cent on the paid-up capital (Rs 0.50 per equity share) for the financial year 2007-08.


10:35 am: Ansal Properties & Infrastructure’s net profit fell 40.47 per cent to Rs 19.40 crore for the quarter ended June 30, 2008 compared with Rs 32.59 crore for the same quarter ended in 2007. Total income increased 11.89 per cent to Rs 175.22 crore in Apr-Jun quarter of 2008 against Rs 156.60 crore in the corresponding quarter of previous year.


10:30 am: With reference to the news item appearing in a leading financial daily titled "Japan Takeda eyes Torrent Pharma".

Torrent Pharmaceuticals has denied that the promoters' intend to sell any stake to Takeda Pharmaceuticals Company, Japan. There is no move on the part of the Company or its promoters to sell stake, in part or in whole, to any player, national or global.


10:25 am: Financial Technologies India has acquired Apian Finance & Investment, a RBI Registered NBFC at a cost of Rs 1.50 crore. The company shares were down 0.29 per cent to Rs 1,482 .85 on BSE.


10:20 am: Suzlon Energy’s net profit fell 1.52 per cent to Rs 88.04 crore for the quarter ended June 30, 2008 compared with Rs 89.40 crore for the same quarter ended in 2007. Total income increased 73.40 per cent to Rs 1,496.28 crore in Apr-Jun quarter of 2008 against Rs 862.90 crore in the corresponding quarter of pervious year.


10:15 am: Avantel Softech has recommended a final dividend at the rate of 15 per cent for the financial year ended March 31, 2008. The company has also approved to change the name as Avantel Ltd. Avantel Softech shares were up 3.80 per cent to Rs 47.80 on BSE.


10:10 am: Suzlon Energy’s order book stands to Rs 16,491 crore comprising of Rs l,449 crore of domestic orders and Rs 15,042 crore of export orders.The aforesaid domestic order book position includes 55 numbers of 1500 kW Wind Turbine Generators aggregating to 82.5 MW capacity yet to be supplied to DLF Home Developers out of the total order size of 71 numbers of 1500 KW Wind Turbine Generators aggregating to 106.5 MW capacity.


10:05 am: Glodyne Technoserve has recommended a final dividend at the rate of 12 per cent on 11,015,243 equity shares of the face value of Rs 10 each. The company has also approved to increase the authorized share capital and borrowing limits. Glodyne Technoserve shares were down 1.16 per cent to Rs 471.20 on BSE.


10:00 am: Companies scheduled to announce earnings for the quarter / year ended March 31, 2008 today are --- Aditya Birla Nuvo, Adlabs Films, Amtek Auto, Apollo Hospitals Enterprise, Arivind, Bajaj Hindusthan, Balrampur Chini Mills, BASF India, BEML, Bharat Forge.


The Bombay Stock Exchange's 30-share Sensex Thursday opened at 14,359.48, up 72.27 points or 0.51 per cent from the previous day's close. The high in the few minutes of trade was 14,360.21, and low 14,205.50. National Stock Exchange's 50-stock Nifty opened at 4314.35, up 0.80 points.
thanks to :- economictimes.indiatimes.com

Rel Power to replace Dr Reddy’s in Nifty index

MUMBAI: Anil Ambani group-firm Reliance Power will be included in NSE’s 50-share benchmark index Nifty with effect from September 10.

Reliance Power, which listed on bourses early this year, will replace pharma major Dr Reddy’s Laboratories in the index, an exchange circular said. Dr Reddy‘s commanded a weightage of 0.46% on the Nifty index.

In other changes, Adani Group firm Mundra Port and SEZ would be included in the CNX Nifty Junior index, while Aurobindo Pharma would be excluded from the index. Reliance Power and Mundra Port & SEZ would be also be included in the CNX 100 index.

Buy Punj Lloyd for target Rs 532: Sharekhan

MUMBAI: Sharekhan has maintained ‘buy’ rating on Punj Lloyd for an 18-month target price of Rs 532. Punj Lloyd’s performance during Apr-Jun 2008-09 was well above the brokerage and street's expectations due to a robust revenue growth led by strong execution of projects.
The stand-alone entity reported a 120.9 per cent growth in the revenues to Rs 1,558.58 crore. The operating profit margin declined by 20 basis points to 10.1 per cent and the net profit grew by 237.2 per cent to Rs 71.5 crore.
On consolidated basis, the company reported 89.9 per cent growth in the revenues to Rs 2,648.8 crore, while the operating profit margin improved by 110 basis points to 9.8 on the back of lower raw material costs. The company has provided for Rs 48 crore on mark-to-market basis on its foreign exchange losses. Adjusting for the same, the adjusted net profit grew by 119.1 per cent to Rs 130.3 crore. The reported net profit was up 88 per cent to Rs 111.9 crore.
At the end of 2007-08, the auditors had made a qualification on the project that could potentially incur a loss of Rs 305.3 crore. The auditors have now reduced the aforesaid amount to Rs 194.8 crore and the management continues to believe it will achieve a break even on the project, says Sharekhan.
As Punj Lloyd booked orders worth Rs 2,640 crore during the quarter, the consolidated order book now stands at Rs 20,162 crore (2.6x FY2008 revenues), imparting strong visibility to the revenues going forward.
At the market price, Punj Lloyd is trading at 11.7x FY2010E earnings.
thanks to :- economictimes.indiatimes.com

MCX may submit fresh IPO draft

MUMBAI : The Multi Commodity Exchange (MCX) is expected to submit a fresh application to SEBI for its initial public offer as the validity period for its offering is set to end shortly. “The Sebi approval for the IPO expires on August 11 and if the IPO is not listed then a fresh application has to be filed,” said a source close to the development on the sidelines of a conference. The source said that the company can re-apply the very next day after the validity period of the earlier approval expires. But the fresh application has to be submitted within the current financial year. In case the company fails to do this, it would have to undertake a fresh audit, which would be a long-drawn process. Companies that have received Sebi’s nod have to complete the process of listing within 90 days to avoid refiling their offer documents. The other IPOs which Sebi had approved around the same time as MCX were that of UTI AMC and Reliance Infratel. While UTI AMC has decided to shelve its plans for now, there is no word on the IPO plans of Reliance Infratel. In case MCX re-applies, it would be the only company in recent times to do so, an industry source said. MCX expects to raise Rs 500-600 crore from the capital market, partly through issuing fresh equity and partly through dilution of the existing stake of shareholders. The issue price is expected to be close to Rs 600 per share. According to the current draft prospectus, 60 lakh fresh shares would be issued, while existing equity holders would offload 40 lakh shares. Of this, about 35 lakh shares of Financial Technologies (FTIL), one of the primary financiers of MCX, would be sold, bringing down its share in the company to 26% from the current 32%. In February, FTIL had already sold 5% of its stake to New York Stock Exchange. At that time, the exchange was valued at $1.2 bn, or Rs 5,000 crore.
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BSNL IPO to pave way for merger with MTNL

NEW DELHI: The government has initiated steps to combine state-run firms BSNL and MTNL. According to government sources, the proposed merger may happen after BSNL’s initial public offer (IPO).

“The proposal was discussed during the NDA regime and shelved. With BSNL’s IPO looking a clear possibility now, the proposal is being reviewed,” an official in the department of telecommunication (DoT) said. “Once BSNL is listed on the Bombay Stock Exchange, we can explore various possibilities, which may include an open offer or a share swap deal,” he said.

DoT had in 2004 appointed a financial consultant to look into the proposed merger. It was, however, suggested the merger would be more meaningful if both the entities are listed. MTNL is already listed on the BSE. However, the proposal to list BSNL was shelved because of political opposition.

The UPA government had earlier taken up the proposal of BSNL’s listing, but it was not acceptable to the Left parties. With the Left out of the government now, the Centre is likely to push for an early IPO. The government believes there is synergy between the two firms. A merger will result in a combined entity with a turnover of around Rs 45,000 crore.

In comparison, Bharti Airtel had a turnover of Rs 27,025 crore in 2007-08, followed by Reliance Communications (Rs 18,827 crore) and Vodafone (Rs 15,288 crore). MTNL posted an 8.9% increase in net profit to Rs 500 crore in 2007-08 on a turnover of Rs 5,400 crore. “The combined entity will not only let BSNL foray into Delhi and Mumbai, but will also strengthen MTNL’s reach,” the official said.
thanks to :-economictimes.indiatimes.com

Pizza Hut, Big Mac & Nirula's woo customers

NEW DELHI: As inflation impacts consumer spends, leading restaurant chains—Pizza Hut, McDonald’s and Nirula’s—are taking pre-emptive measures to avoid any decline in footfalls. They are doing this by way of makeover or strategy shift. Take the case of Nirula’s.

The chain has spent Rs 30 crore on a facelift and will now be offering low-priced meals to attract new customers. Pizza Hut is spending around Rs 50 crore to transform the brand with new look and improved menu. Similarly, McDonald’s, which has positioned itself as a mass brand, is now eyeing higher profits through premium offerings.
Pizza Hut has launched an ‘enhanced dine-in’ concept in the casual dining segment for the first time in India.

“While we want to challenge ‘up-market’ eateries through our ambience and hospitality,the variety and prices would attract middle-class families,” says Pizza Hut marketing head Anup Jain.

Nirula’s, known for selling ‘quality and variety’ targeting upper class and middle class, will add affordability in its menu. “Middle class is already feeling the pinch because of inflation so we would not like to add to their burden,” says Nirula’s senior VP Sudipta Sen Gupta. McDonald’s has now tweaked its strategy to improve profitability.

Whenever there have been high inflationary trends, people tend to shift their eating-out preferences from fine-dining to quick service restaurant format and McDonald’s is the leader in that segment, says McDonald’s India MD Vikram Bakshi.

Anil Ambani becomes richer by Rs 27,000 cr after SP-UPA realignment

Anil Ambani addresses a press conference in Mumbai. More
NEW DELHI: The new political combination at the Centre seems to be favouring Anil Ambani group companies more than that of his elder brother Mukesh, if one goes by the stock price movements of the two group companies.

Since July 7, when it became clear that Amar Singh, who is considered to be close to Anil Ambani, and his Samajwadi Party (SP) would support the government, the market capitalisation of Anil's holdings in six companies increased by 24% to Rs 1,41,415 crore. That means, he became richer by almost Rs 27,000 crore.

During the same period, however, the market capitalisation of Mukesh Ambani's holdings in the three companies increased by 7% to Rs 2,25,758 crore, making him richer by only Rs 14,000 crore.

From July 4 to July 24, the benchmark sensex increased by 9.8% as the stock market was betting on the government's survival, without support of the Left parties. Since July 17, the bull run was much sharper as there was clearer indication of government sailing through trust vote in Parliament with new coalition, mainly with SP. During this time, share prices of ADAG (Anil Dhrirubhai Ambani Group) companies rose much higher than the rise in Sensex.

Earlier, when the market was in a bearish mode, ADAG suffered one of the worst drubbing. From January 10 to July 4, while sensex fell 35%, market capitalisation of the ADAG companies declined by 57%. Market value of Anil's holdings in the listed companies came down to Rs 1,14,120 crore from Rs 2,64,053 crore. He suffered a loss of almost Rs 1,50,000 crore during this period.

During the same time, market value of Mukesh's holdings in the group's listed companies declined by only 29% to Rs 2,11,417 crore from Rs 2,96,723 crore. This means, his market value declined by only Rs 85,000 crore.

Relief rally helps Sensex re-enter the 14000 orbit

MUMBAI: Dalal Street punters live by the day. While their troubles are far from over, they may get a brief respite, or even a reason to celebrate with the ruling UPA coalition winning the trust vote.

It may be naive to believe that the government will push through tricky reforms with elections less than a year away, feel some market observers. But, investor sentiment may improve on hopes of a few PSU divestment and small doses of changes in the sectors like banking, insurance and pension.

Earlier in the day, benchmark indices surged nearly 2% as the market almost seemed to have taken it for granted that the government would win the trust vote. The fourth successive session of gains propelled the 30-share Sensex above the psychological 14,000-mark, with the index ending the day at 14,104.20, up 254 points over the previous close. The 50-share Nifty climbed 80.60 points to close at 4240.10.

“While the effect of the trust vote would be visible over the next 2-3 days, the focus would soon shift to oil, inflation and interest rate,” says Tata Asset Management CEO Ved Prakash Chaturvedi. While crude oil prices are slipping further to $126 to the barrel, the stage appears set for a strong rally on Wednesday.

“The economy is slowing down thereby impacting earnings and valuations. The earnings growth will finally decide the direction of the market,” he added. First quarter earnings of key companies announced so far have fallen short of market expectations.

“One might expect some reform measures in the near future, but it’s a case of wait and watch,” adds Mr Chaturvedi who also thinks that the market is “very close to the bottom if not at the bottom”.

Fast moving consumer goods, banking, power and metal shares were the best performers, while investors shunned shares in the automobile and realty sectors — both of which are expected to be hit hard due to the rise in interest rates. Centrum Stock Broking research head Harendra Kumar feels that Tuesday’s rise was a “technical pull-back” and that the “downturn is still on”.

“The impact of high interest and slowing economy has been limited to the bottomline of most companies. The topline is likely to register a hit in the next one quarter or so,” says Mr Kumar. Market players are expecting some reforms, especially in the banking sector, in the next six months, he added.

Consensus is that the Sensex could rise to 16,000 near term, and then slip back into a trading range between 13,000 and 16,000. Stock futures of most Nifty stocks were quoting at a premium to spot, after being at a discount for the better part of the current settlement cycle. But market watchers attributed the trend largely to short covering of positions.

Foreign institutional investors, too, do not think that it is time to start buying shares aggressively. According to provisional data on BSE, foreign funds net sold close to Rs 600 crore worth of shares. While talk is that retail inflows into the market are slowing, domestic institutions appear flush with funds for the time being. Provisional data showed local institutions net bought Rs 261 crore worth of shares.
thanks to :- economictimes.indiatimes.com

FIIs view surge in markets as short-term positive

MUMBAI: It may be possible that foreign portfolio investors, who have pulled out over $5 billion since the beginning of this year, see the latest political developments in the country as a short-term positive. However, their outlook on the Indian markets has not changed.

With the deteriorating macroeconomic scenario, concerns over global crude price, lower corporate earnings and rising interest rates are still working on their minds. Overseas portfolio investors view the surge in the markets over the past few days as a blip.

Most of these institutional investors say that they are not revising their strategy for India in the light of the latest bounce in the market and following the political developments. Several leading FIIs have been underweight on India for a while now, and some have said they will continue to maintain their stand at least for the near-term.

FIIs have been net sellers close to $7 billion (Rs 27,614.20 crore) year-to-date. According to provisonal data, on Wednesday, FIIs were net buyers to the tune of Rs 1,306 crore.

Reliance Industries Q1 net profit up 13% YoY

MUMBAI: Reliance Industries' net profit rose 13.22 per cent to Rs 4,110 crore for the first quarter ended June 30, 2008 compared to Rs 3,630 crore for the corresponding quarter a year ago.

Total income increased 40.75 per cent to Rs 41,805 crore against Rs 29,721 crore for the same quarter last year.

On BSE today, Reliance Industries shares closed up 1.81 per cent at Rs 2306.55 on volume of 12,34,443 shares.

SAIL achieves profit of Rs 1835 cr during April-June 2008

ROURKELA: Higher sales volume, increase in special (value added) steel production, better operational efficiencies and higher interest earnings enabled the Steel Authority of India Limited (SAIL) to achieve a profit (after tax) of Rs 1835 crores during April-June, 2008, showing 20.3 per cent growth over the corresponding period last year.

The financial performance has improved despite a burden of Rs 1,434 crores on account of substantially higher cost of inputs like coal, freight, ferro-alloys, fuel and higher wage revision, a RSP release said on wednesday.

The company has registered sales turnover of Rs 12183 crores with growth of 37 per cent during the period, it said.

With thrust maintained on production of value added and special steels, the SAIL plants produced about one million tonnes of items during first quarter, showing a growth of 41 per cent over last year's same period.

During the first quarter, a number of capital projects were completed at Rourkela Steel Plant (RSP), Durgapur Steel Plant (DSP) and Bhilai Steel Plant (BSP).

Construction work for expansion at IISCO plant, and Salem Steel Plant have commenced and were progressing as per schedule.

With utilisation of finishing mills at all time high in the quarter, finished steel proudction comprised 88 per cent of production as compared to 84 per cent during last period.

Further improvement in operational efficiency also helped the comapny.

With 121 per cent of rated capacity utilisation of continuous casting shops, production through this energy-efficient route crossed two million tonnes.

This helped in achieving of five per cent lower specific energy consumption at 6.89 giga calories per tonne of crude steel produced.

Coke rate improved by two per cent to 530 kg per tonne of hot metal in quarter one from 539 during the period last year.

SAIL PAT up 20 pc at Rs 1,835.19 cr

MUMBAI: State-run Steel Authority of India on Monday announced a profit after tax (PAT) of Rs 1,835.19 crore for the quarter ended June 30, 2008, a growth of 20.33 per cent in the corresponding period a year-ago.
The company had a PAT of Rs 1,525.12 crore for the first quarter in FY'08, SAIL said in a filing to the Bombay Stock Exchange.
The total income rose by 36.85 per cent to Rs 11,421.99 crore in the latest quarter, from Rs 8,346.40 crore in the year-ago period.
Shares of SAIL were trading at Rs 125.95, up 2.61 per cent in the late afternoon trade on the BSE.

SEBI settles case against Anagram in IPO scam

MUMBAI: Market regulator SEBI on Monday settled a case against Anagram Securities relating to alleged financing of key operators in the infamous IPO scam after the company paid Rs 10,000.

The case has been settled through a consent order passed by the SEBI, but it does not restrict the market regulator from taking enforcement action like commencing or reopening of the pending proceedings against the firm.

Consent means a settlement between two parties without admitting or denying the guilt.

SEBI can reopen the pending case, if it finds that any representation made by the firm in the consent proceedings are subsequently discovered to be untrue or it has breached any of the clauses of undertakings during the proceedings.

Charge against Anagram Securities was that it acted as a financier to the key operators for making applications for public offers in fictitious and benami names during 2003-05.

The infamous 2003-05 IPO scam relates to corning of shares, meant for retail investors, through fictitious applications by many entities in public offers of firms like IDFC, Jet Airways and Suzlon.

The market regulator passed the order on the recommendations of its High Powered Advisory Committee.

Sensex ends up 215pts, Cipla gains 5%

The Sensex opened with a huge positive gap of 147 points at 13,782, but dropped to a low of 13,581 in noon deals. Buying in banking and pharma stocks saw the index move up to a high of 13,879 in noon deals - an intra-day swing of nearly 300 points. The Sensex finally closed with a gain of 215 points (1.57%) at 13,850.

The BSE Bankex, Healthcare, Realty, Auto and FMCG indices also finished with gains. The market breadth was bearish - out of over 2,600 scrips traded, over 1,360 declined.

Cipla advanced over 5% to Rs 226. Ranbaxy was up nearly 5% at Rs 458.

HDFC Bank added nearly 5% at Rs 1,083. ICICI Bank was up over 4% at Rs 644. SBI gained over 3% at Rs 1,347.

NTPC, Maruti, HUL, RCom and TCS also finished with gains.

Satyam dropped over 4% to Rs 367. Ambuja, BHEL, L&T, Bharti and Tata Motors also declined.

Reliance Capital was the most active counter with a turnover of Rs 246 crore followed by Reliance (Rs 205 crore), L&T (Rs 196 crore), RCom (Rs 140 crore) and IDFC (Rs 128 crore).

R Sreesankar of IL&FS said the markets have already factored in the political developments. "No major reforms happen towards the end of the term of any government, and the current government is very close to that....," he added.

The markets would be more interested in looking at the corporate numbers and the guidance for the next quarters. Crude oil prices and international developments would also be keenly watched by market participants, Sreesankar added.

Political instability always bad for stock markets: FM

NEW DELHI: Finance Minister P Chidambaram said on Sunday that stock markets could not be insulated from external developments but ruled out any role for the government and the regulator as long as the price movement was orderly.

At the same time, he dubbed as "very good" the returns for investors since the UPA government came to power. "This market is still giving good returns for anyone who invested in July 2004. The market is still giving very good returns," he said.

Stating that political instability is always bad for the stock market, Chidambaram said that bourses cannot be insulated from the developments in other markets either, as is the case with the trends being witnessed in current scenario.

Commenting on the recent trends on Indian bourses that has seen the benchmark Sensex on the Bombay Stock Exchange falling from 21,000 level in January this year to near 13,000-point level now, the Finance Minister said, "Everything has to be looked at in the context. Terms of trade, thanks to oil and commodity, have worsened in India.

He said, "The regulator and government is concerned about the orderly movement only. If it (market) moves up or down why should the government take a view on that?" On complaints of price rigging by certain corporate and if SEBI has informed the government about it, Chidambaram said, "SEBI will not and should not talk to me. If there is any complaint on market rigging, SEBI will inquire into it."

Recently, Anil Ambani group had written to SEBI that corporate rivals were pulling down prices of Reliance Communication and other group companies.

thanks to :- economictimes.indiatimes.com

Reliance Comm shares set to gain as MTN talks end

NEW DELHI: Reliance Communications' shares are expected to rise on Monday after it called off tie-up talks with South Africa's MTN Group, avoiding a potential head-on legal clash between members of its founding Ambani family.

But analysts said stock market volatility ahead of a government confidence vote on Tuesday would dictate the movement of shares of India's second-largest mobile operator, controlled by the younger of the feuding billionaire Ambani brothers, Anil.

Reliance Communications and MTN, sub-Saharan Africa's biggest mobile phone group, ended their exclusive talks late on Friday, aimed at creating a global top-10 telecoms group, saying they could not reach a deal due to certain legal and regulatory issues.

"A deal is not happening, that will be bit of a relief for the shareholders," said Ambareesh Baliga, vice president at Karvy Stock Broking. "The stock should rise on Monday. But political issues will keep the market volatile."

The deal which would have created a company valued at $66 billion had been complicated by a claim of right of first refusal on Reliance Communication's shares by the older Ambani, Mukesh, who runs Reliance Industries and had started arbitration proceedings last week.

Reliance Communication's stock has fallen 24 percent since late May when the talks with MTN were first announced, with the bulk of the decline coming after the first refusal claim. The shares ended up 4 percent on Friday, before the exclusive talks were called off, with analysts split on whether a deal could be struck before the exclusivity lapsed on July 21. Stock markets are however expected to focus keenly on political uncertainty.

The government faces a vote of confidence on Tuesday after its communist allies withdrew support over a nuclear deal with the United States. A regional party has stepped in to replace the communists but analysts say the vote is still too close to call.

MTN'S SUITORS

A deal with MTN would have created an emerging markets telecoms giant with operations in about two dozen countries and around 120 million subscribers. The failure to reach a deal with Reliance came after India's leading mobile operator Bharti Airtel decided in late May to end talks with MTN.

Bharti said it had called off the talks after MTN proposed a new structure that would have seen the Indian group becoming a unit of the South African-based group.

In an email at the weekend, a Reliance Communications spokesman said Anil Ambani investment vehicle AAA Com, which holds 63.4 percent in Reliance Communications, reserved the right to claim "direct and consequential damages" from Reliance Industries.

This is not the first clash between the estranged Ambani siblings, who split their late father Dhirubhai Ambani's business empire in 2006 after a public feud.

Reliance Communications has nearly 50 million subscribers in India, the world's fastest-growing mobile market and the largest after China. "Now investors will look at the fundamentals. There should not be any further pressure on the stock," said Neeraj Dewan, director at fund manager Quantum Securities.

Another 500-point rally for Sensex

The BSE index vaults 523 points or 4% to end at 13,635. This came on top of yesterday`s 536-point gain, marking one of its fastest advance in recent memory.

The bulls continued their turnaround story of this week on Friday, with the benchmark indices notching up strong rally for the second consecutive day. Overnight gains in the US stocks, coupled with sharply lower crude oil prices and stable inflation were the main drivers behind the rally. What's most interesting about today's advance was it came despite weakness across most Asian markets and soft opening in European markets. The US market futures too were down, pointing to lower opening after top companies like Google, Microsoft, AMD and Merrill Lynch came out with less than expected results.

Coming back to our market, the BSE Sensex rallied 523 points or 4% to end at 13,635. This came on top of yesterday's 536-point (4.3%) gain, marking one of its fastest two-day advance in recent memory. The benchmark index recovered from the weekly low of around 12,514, which was struck on July 16. The index rose by 1.15% during the week after last week's modest gains. The NSE Nifty today jumped 3.7% to close at 4092, after gaining 3.4% yesterday. The index was up 1.2% during the week and rebounded from the week's low of 3790. Gains in the Small-Cap and Mid-Cap shares were relatively muted today.

Among the sectoral indices, the BSE Bankex led from the front, surging by 8%. This was followed by Real Estate index (5.5%), Oil & Gas (4.3%), Capital Goods (3.6%), Power (3.4%), FMCG (2.8%) and Auto (1.8%). The BSE IT index was by far the worst performer, tumbling by 2.6%, while the Metal index was down 0.25%.

Within the Sensex, the prominent gainers were ICICI Bank (12%), HDFC (9.5%), HDFC Bank (7.9%), Jaiprakash Associates (7.7%), Bharti Airtel (7.1%), DLF (7%), REL INFRA (6%), SBI (5.9%), BHEL (5.35%), ITC (5.3%) and NTPC (5.2%). Reliance Industries, ONGC, L&T, RCOM and Maruti gained more than 4% each. Tata Motors, TCS, Hindalco and Cipla posted modest gains. Among the top losers were Satyam (7.5%), Wipro (3.75%), Ranbaxy (3.3%), Tata Steel (2.4%) and Infosys (2.2%).

Outside the main indices, the prominent gainers included IDFC (15.5%), Patel Engineering (10.7%), Indian Bank (10%), Essar Shipping (10%), GSS America (10%), Jet Airways (9.4%), Gujarat NRE Coke (9%), Yes Bank (8.9%), Axis Bank (8%), Ansal Infra (7.8%), Indiabulls Realty (7.6%), PNB (7.6%), Balaji Tele (7.5%) and Nagarjuna Construction (7%).

The big losers included Kirloskar Bros (9.5%), Sadbhav Engineering (7.9%), Infotech Enterprises (7.8%), Mphasis (7.3%), Tata Chemicals (6.2%), HCL Tech (5.85%), Dabur Pharma (5.4%), KPIT Cummins (4.4%), Jain Irrigation (4.4%), NIIT Tech (4.3%), Prajay Engineers (4.2%), Bajaj Hindusthan (3.8%), Entertainment Network (3.8%), Astra Micro (3.6%), Shiv-Vani Oil (3.5%), Ratnamani Metals (3.4%) and Piramal Lifescience (3.3%).

Source : India Info Line

BGR Energy hits 20% upper circuit

MUMBAI: BGR Energy Systems hit 20 percent upper circuit on Thursday, a day after it bagged an EPC contract worth Rs 4,900 crore from Rajasthan Rajya Vidyut Utpadan Nigam for 2 x 600 MW Kalisindh Thermal Power Project.

At 3pm, the stock was at Rs 297.35, up Rs 49.55 on volume of 18,53,451 shares. The scrip has advanced 23.30 per cent in the past one week.

In June, the company had secured a similar contract from Tamil Nadu Electricity Board for 1x600 MW project.

The order book of the company now stands over Rs 11,000 crore, which includes BoP contracts of 500 MW and two EPC contracts of 600 MW units and contracts of oil& gas equipment sector projects.

The company had a great listing on the exchange in January this year. The scrip listed at Rs 840 on the NSE, a premium of Rs 360 or 75 per cent to the issue price of Rs 480 per share. But due to steep correction in shares prices of power companies, BGR Energy shares fell to trade at 50 per cent discount to issue price.

Vishal Information Technologies' IPO to open on July 21

MUMBAI: IT-enabled services and solutions provider, Vishal Information Technologies, is expanding its existing services and entering new verticals.

"We intend to increase our market-share by way of expansion of facilities of our existing services and also going in for new verticals," the company's Chief Executive Officer, G S Vishwanathan, said.

"We will set up a new facility in Chennai besides setting up a quality assurance centre and marketing office in Mumbai," he said.

The expansion includes increasing data digitalisation seats from the present 250 to 450, e-publishing seats from 150 to 250 and digital library seats from 75 to 100. The company currently operates from leased facilities in Chennai and Mumbai with approximately 475 workstations.

To part-finance its expansion plans, the company plans an Initial Public Offering (IPO) with a public issue of 27.9-lakh equity shares of Rs 10 each.

The price band of the issue has been fixed at Rs 140 to Rs 150 per equity share. The issue would open on July 21 and close on July 24.

The cost of setting up the facility in Chennai would be Rs 16.05-crore. The quality assurance centre and marketing office in Mumbai would be set up at an investment of Rs 5.43-crore.

The issue proceeds would also be utilised for setting up of subsidiaries in UK and USA.
thanks to : economictimes.indiatimes.com

Nikkei up 1.1 pc, exporters and financials gain

TOKYO: Japan's Nikkei average rose 1.1 percent on Thursday, led by exporters such as Canon Inc on a rebound in the dollar versus the yen, while financial stocks jumped after surprisingly strong results from a U.S. bank helped ease credit worries. Major brokerages, including No. 1 Nomura Holdings gained more than 5 percent, positioning the market for its biggest percentage gain in one month.

"With the subprime problems still out there, it does not mean a trend change, but we are seeing a short-term rebound led by recently battered banks and exporters," said Norio Shimura, deputy head of the equity department at Chuo Securities.

Investors felt relatively comfortable about buying exporters after the dollar gained ground back to around 105 yen from around 103 yen a day earlier, he added. The benchmark Nikkei ended the morning up 141.59 points at 12,902.39.

The broader Topix gained 1.5 percent to 1,268.00. US stocks rallied more than 2 percent on Wednesday, powered by the best day for banks in 16 years as unexpectedly robust earnings from Wells Fargo & Co helped ease concerns about a credit crisis spiralling out of control.

But analysts said caution was limiting the market's advance. "The Tokyo market is not quite tracking the sharp gains on Wall Street which underscores the strong anxiety felt by investors," said Kazutaka Oshima, chief strategist at Rakuten Securities.

"Wells Fargo did give a boost to the market, but this bank is not investors' biggest concern. They are waiting for Merrill and Citi," he said, referring to earnings by Merrill Lynch later in the day and Citigroup on Friday.

thanks to : economictimes.indiatimes.com

SpiceJet falls 15% on BSE

MUMBAI: Shares of private carrier SpiceJet on Monday dropped about 15 per cent after its Executive Chairman and CEO Siddhanta Sharma announced his resignation.


The scrip touched an intra-day low of Rs 27.60, registering a 14.81 per cent fall, over Friday's close of Rs 32.40.

At the end of the day's trade, the scrip settled at Rs 27.95, a 13.73 per cent decline, after touching the day's high of Rs 33.25.

The board of the company has accepted the resignation of Sharma, who would leave SpiceJet for personal reasons effective July 31, the low cost airline said in a statement on Sunday.

Recent reports suggest that the private carrier is in touch with various investors, including billionaire Wilburn Ross, for a possible stake sale.

Earlier, SpiceJet had announced plans to raise 100 million dollars through stake sale. The airline was also linked with Vijay Mallya-promoted Kingfisher Airline for a share swap merger.
thanks to : economictimes.indiatimes.com

Religare downgrades Bajaj Auto to hold, target: Rs 510

MUMBAI: Religare Research has downgraded their rating on Bajaj Auto to 'hold' from 'buy' and set a target price of Rs 510.

Bajaj Auto's April-June 2008-09 results were in line with the brokerage's expectations, backed by a 9 per cent year on year growth in volume sales and stable realisations.

Margins, however, showed lower growth than expected due to spike in raw material costs and a forex loss of Rs 98.5 crore.

Bajaj Auto plans to launch four new products in the executive and premium motorcycle segments and two models in the three-wheeler space during 2008-09. However, the confluence of higher interest rates, rising inflation and increased input costs will dent sales volume. Exports, which constitute over 30 per cent of the company's sales volume, will provide some solace with a continued trend of double-digit growth. Margins are likely to remain under pressure during 2008-09.

Religare has assigned Bajaj Auto a P/E multiple of 8x on FY10E, given the volume and margin pressures that are evident in the two-wheeler industry.
thanks to : economictimes.indiatimes.com

Universal Construction plans IPO for raising Rs 100 cr

MUMBAI: Pune-based Universal Construction Machinery & Equipment is mulling an initial public offer in the next fiscal to raise about Rs 100 crore to part finance its expansion projects, a top company official said.

"We have taken up a Rs 232 crore expansion project at Shivare near Pune to expand our construction equipment manufacturing capacity and introduce more products over the next five-year period," Universal Construction's Deputy General Manager, Business Development, Sanjay Apte, told media here on Monday.

India's construction equipment manufacturing industry was estimated at Rs 5,000 crore, Apte said, adding that although the activities in the real estate sector showed a downward trend presently, other infrastructure projects were in full swing.

Universal has a pan-India presence with three manufacturing units, seven zonal offices and 75 distributors.

The company also has expansion plans with manufacturing units proposed in north India and Rajasthan, which will cater to the needs of northern India.

The company is a leader with its product range comprising concrete batching plant, concrete mixer, mini dumper, passenger lift and transit mixer. The company now plans to add manufacturing of tower cranes and concrete pumps at its Shivare facility, Apte said.
thanks to : economictimes.indiatimes.com

Taiwan stocks open lower, but Hon Hai rises

TAIPEI: Taiwan stocks opened down 0.42 per cent on Monday, as pressure from a Wall Street sell-off was partly offset by expectations that the government would relax restrictions on Taiwan firms' China investments later this week.

The main TAIEX share index was 30.55 points lower at the open at 7,214.21, following a Wall Street drop that saw the S&P 500 tumble 1.11 per cent. Shares of Hon Hai were up 0.72 per cent after local media said it won new low-cost PC orders from Dell, while the broader electronics sub-index was down 0.48 per cent.
Thanks to economictimes.indiatimes.com

DLF buyback may not be good for shareholders

NEW DELHI: DLF, country’s largest real estate developer on Thursday announced share buyback at Rs 600 per share. The company plans to spend around Rs 1,100 crore in the exercise. Given the background of the announcement and company’s financial position, the move seems to be a knee jerk reaction by the company to prop-up its share price.

DLF has been one of the worst losers in the current market meltdown. The stock has declined by around 60 per cent since the beginning of current calendar year against 32 per cent decline in Sensex during the period. Even after the recent recovery its stock price, DLF is still trading at a 15 per cent discount to its IPO offer price of Rs 525. This put company in an embarrassing situation with regards to retail shareholders.

Though it is debatable as to how much support the buyback will provide to DLF stock price, the move goes against the long-term interest of the company’s shareholders. DLF’s core operations continue to lose cash and company is sustaining its operations though IPO money raised last year, fresh borrowing and raising capital by selling equity in various special purpose vehicles.

During the year ended March 2008, the company had negative cash flow of over Rs 2,000 crore from its operations. The cash shortfall was met through IPO proceeds and raising fresh debt. By the end of FY08, the company has total debt of around Rs 12,600 crore.

This makes case for cash conservation rather than pleasing shareholders with share buyback. More so given the fact that company continues to seek investments from private equity players to funds its various projects. Infact, one of main objectives of the DLF IPO was to fund its various ambitions in real estate space besides allowing it to retire debt and shore up its net worth.

This helped it to reduce its leverage ratio that has touched a high of around 3 by the end of FY07. The cash outflow due to share buy will partly undo this financial turnaround achieved by the company in last one year. This may hurt the company prospects in the medium term given the fact that credit market is tightening the world over and real estate prices are expected to fall.

And its uncertain how much influence can a buyback programme worth 1.5 per cent of DLF current market cap can have on its stock price.

Lotus Eye lists below IPO price on BSE, higher on NSE

MUMBAI: Lotus Eye Care Hospital on Friday listed at Rs 40 on NSE, a premium of 5.26 per cent or Rs 2 against the issue price of Rs 38.

However, with the market moving down, the stock too moved lower to Rs 37.80. It touched a high of Rs 40 and low of 32.50 in trade so far. Around 29,22,041 shares have been traded on the NSE counter.

On BSE, the stock opened at Rs 35. It hit a high of Rs 38.45 and low of Rs 32.05. At 10:12 am, the stock was Rs 37.70 on volume of 35,94,273 shares.

The hospital is based in the south Indian city of Coimbatore. The company has raised 38 crore rupees through its 10-million share issue. The issue was subscribed 1.18 times.

The company will use the proceeds to part-finance expansion of its existing units and to set up new units in Chennai and Bangalore. Lotus' presence is currently concentrated in Coimbatore, Salem and Tirupur, all in Tamil Nadu.

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thankes by :- economictimes.indiatimes.com

Amara Raja gains 3% after BSE block deal

MUMBAI: Auto and industrial battery maker Amara Raja Batteries extended gains after a block deal of about 3 million shares or 5.2 percent of its equity was struck on theBSE, at Rs 132 a share. Amara Raja's shares were up 3 per cent after the deal. At 11:20 am, the shares gave up some gains and were at Rs 135, up 1.28 per cent.

India's days of plus 9% growth over: Citi

NEW DELHI: India's days of more than nine per cent economic growth are over and the country has lost the opportunity to sustain those levels as well, believes global financial services major Citigroup.

"...the days of 9 per cent plus growth are over and we believe that India has lost the opportunity to sustain those levels for now, and we expect growth to come in around 7 per cent plus levels in FY'2009-10," Citigroup, in its latest economic and market analysis report for India, stated.

The report pointed out that further rate hikes do pose downside risks to Citi's FY'09 and FY'10 GDP estimates of 7.7 per cent and 7.9 per cent, respectively.

Country's industrial growth has plunged 3.8 per cent in May, as compared to 10.6 per cent a year-ago, due to a poor show of manufacturing and electricity sector.

According to government data released today, industrial output, as measured by Index of Industrial Production, grew by just five per cent in the first two months of this fiscal, against 10.9 per cent during the same period last year.

However, in the coming years Citigroup does not expect trends to remain as favourable as the impact of monetary tightening kicks in.

"Our FY'09 and FY'10 GDP estimates of 7.7 per cent and 7.9 pert cent incorporate a deceleration in investments to 10.4 per cent and 7.9 per cent, respectively," Citi economist Rohini Malkani said in the report.

However, if the oil prices continue to face upward review, with the ongoing adjustment in other market determined fuels along with the pass through impact on manufactured products, it would result in edging the inflation even higher, the report added.

This would warrant further tightening, which coupled with increasing input costs, would slow down investments further, Malkani added.

thanks by :- economictimes.indiatimes.com

Suzlon to buy Chinese wind energy firm for $500 mn

Suzlon Energy Chairman and Managing Director Tulsi R Tanti's vision of making the company the third-largest wind turbine manufacturer in the world is prompting him to march ahead with acquisitions across the globe.

Tanti, who acquired Germany's REpower Systems last year, today announced plans to buy Chinese wind energy company Honiton Energy Holdings.

The acquisition will be concluded through Colossus Holdings, a Singapore-based holding company of the Tanti group, and Bahrain-based private equity company Arcapita Bank for over $500 million (Rs 2,162 crore), sources said.

The Tanti Group will own 26 per cent of the Chinese company and the rest will be funded by Arcapita. The partners will spend another $2 billion by 2012 to develop a 1,650 mega watt portfolio of wind farms in the Inner Mongolia region of China.

"The game plan of this investment by using a separate joint venture is to bring in a big PE fund like Arcapita as a partner, and to broad-base operations of Suzlon in markets such as China which it was not able to penetrate much," said Kamlesh Kotak, VP (Research) at Asian Market Securities.

Acquisitions have been major drivers of growth for the Pune-based Suzlon, which was started way back in 1995 by Tanti and his three brothers, who could not find much success with their traditional textile business in Surat. Last year, Suzlon outbid French energy major Areva to acquire 33.6 per cent stake in German turbine maker REpower for $698 million.

Recently, the company further acquired Areva's stake in REpower.

Suzlon, now operating in over 20 countries with global headquarters in Amsterdam, drew international attention with the acquisition of Belgian gearbox manufacturer Hansen Transmission for $565 million in March 2006.

Mounting climatic concerns leading to the need for wind and other green energy solutions attracted Tanti and his brothers to look at wind turbine manufacturing opportunities.

Tanti set up their global quality manufacturing facilities mainly at Puducherry and catered to the global markets using the country's cheap labour advantage.

For Tanti, who ventured into wind power business about 13 years ago, China is not a new terrain. Suzlon already has over 200 mega watt of orders from the Chinese market with 7 per cent market share, mainly in the Mangolia region and in 2007, it had installed over 220 mega watt wind mills in China.

At Tianjin near Beijing, Suzlon has already set up a manufacturing facility with $60 million investment to make 600 mega watt of wind turbines annually.

Tulsi Tanti and his family, directly and indirectly, owns 66 per cent of the Rs 13,670 crore turnover Suzlon Energy, the wsorld's fifth leading suppliers of wind turbines with 10.5 per cent of the global market share.

China is an opportunity for growth for Suzlon, which is facing backlashes in the US, one of its main markets.

Blades of about 65 turbines cracked at some of the installation sites in the US and Suzlon had to carry out a Rs 100 crore blade retrofit programme to resolve the issue.

A few days ago, reports said some of the turbines supplied in the US were not producing adequate power due to technical problems and inability to adapt to the US power grid.

In this situation, China is an emerging wind power opportunity for Suzlon with installations of 6,000 MW by 2007. China is the second leading wind energy market behind the United States, comprising nearly 17 per cent of the global market. The market is expected to add new installations of 36,500 MW between 2008 and 2012.

Honiton, established in 2005 to develop and operate wind power generation facilities within China, and to date, has 50 MW of installed capacity, and a further 100 MW in development.

It also has agreements to develop wind farms on five separate areas in China, representing a total of 2,244 square kilometres to develop 1,650 MW by 2012. Total installed wind energy capacity in China at the end of 2007 was 6,000 MW.

Honiton, a 100 per cent foreign owned company with base in London, was established in 2005 to develop and operate wind power generation facilities within China.

So far, it has 50 MW of installed capacity, and another 100 MW is under development. In addition, the company has worked closely with the regional and state authorities in China, and has secured agreements to develop wind farms on five separate areas in China, representing a total of 2,244 square kilometres, on which it plans to develop its total capacity to reach 1,650 MW by 2012.

Suzlon spokesperson declined to comment on the acquisition saying "It is a private investment of the Tanti Group''.

In order to cater to a strong order book of over Rs 18,000 crore, Tanti is in the process of expanding manufacturing capabilities in India with an investment of Rs 1500 crore, besides Rs 900 crore expansion at the Belgium unit.

GAIL to expand petrochem business

State-run GAIL will focus on expanding its petrochemicals business and will raise the capacity of its plant in Pata, in the Auraiya district of Uttar Pradesh, Chairman and Managing Director, U.D. Choubey said.


"We have decided to expand the Pata plant capacity to 500,000 tonne per annum by installing a sixth furnace at the gas cracker unit with an estimated investment of around Rs 1 billion," Choubey said in an interview.

After the completion of its 100,000 tonne per year new high-density polyethylene plant late last year, the polymer production capacity of the Pata plant is currently at 410,000 tonne.

The cracker plant's ethylene output is likely to go up to 440,000 tonne in another six months utilising 10 per cent more than the designed capacity due to the installation of the fifth furnace, Choubey said.

Choubey said the US-based process licensor, Stone & Webster has suggested that installation of a sixth furnace was necessary for debottlenecking the plant capacity to 500,000 tonne.

GAIL also plans to increase its share in the lucrative petrochemical business, which contributed nearly 32 per cent to its bottomline in the financial year ended March, Choubey said. During 2007-2008, GAIL's polymer production rose 9 per cent to 386,000 tonne as against 354,000 tonne in the previous year.

Polymer sales increased 13 per cent to 391,000 tonne from 347,000 tonne year ago. GAIL also plans to set up two mega petrochemical plants, one each in India and overseas.

Choubey said the company has zeroed in on five options for the overseas plant, Qatar, Iran, Algeria, Nigeria and Russia.

Choubey had earlier said the company along with Reliance Industries is pitching for a mega petrochemical plant in Qatar, at an estimated investment of around $1.2 billion.

In India, he said the company is planning a 1-million tonne petrochemical unit at Visakhapatnam through a five-way joint venture. The other joint venture partners in the project are Hindustan Petroleum, Oil India, Mittal Energy and French oil major Total.

He said GAIL was also seeking equity participation in the proposed $7.5 billion Iran-Pakistan-India gas pipeline project, as it will give the company exposure in trans-national pipeline projects.

A special purpose vehicle is likely to be set up for building the gas pipeline from the Iran-Pakistan border to the Pakistan-India border. Iran has already started construction of the pipeline within its territory.

The 2,100 km pipeline tri-nation will originate in Iran's port city of Assaluyeh and pass through that country (1,340 km) and Pakistan before reaching the Indian border.

GAIL's equity participation in the pipeline will bring in transparency in the transportation tariff of the gas and also give the company experience of engagement in trans-national projects, Choubey said.

GAIL is looking to participate in other international pipeline projects like the $13 billion Trans-Saharan gas pipeline which would supply gas from Africa to the European market.

TVS Motors to re-enter vehicle financing

With rising interest rates denting sales, India's third largest motorcycle manufacturer by sales, TVS Motor Company, are looking at a second foray into two-wheeler financing.


"We are considering vehicle-financing options, which could either involve tie-ups with banks and financial institutions or forming a unit within the company," said HS Goindi, head-marketing, TVS Motor Company.

Earlier this year, TVS Finance - the two-wheeler finance arm of the TVS Group was delisted from the stock markets and was scouting for a strategic investor.

At the launch of the company's first fuel-injection motorcycle, the Apache RTR FI 160cc, modified from the existing Apache 160, which is powered by a carburettor, the company said that rising interest rates had directly impacted sales of motorcycles especially in the entry-level 100cc segment.

The company strategy would be to launch a new motorcycle model evey quarter across all segments for FY 2009, most of which will be powered by the superior fuel-injection technology developed by its R&D wing.

In addition, TVS Motors will launch two new models of scooters to complement its Scooty, Teens, and Electric range.

The new Apache RTR FI with electronic sensors for better mileage and smoother motoring experience is priced at Rs 64,990 (ex-showroom Delhi). The price is about Rs 6000 more than the existing carburettor-kitted Apache 160 and delivers about 4-5 km more mileage totalling to about 55 km a litre.

With presence in all segments: Star/Star City 100cc, Flame (single-spark plug) 125cc, Apache (two variants) 160cc, TVS Company hopes to grow by about 15 per cent in FY 2009.

The company, which sells about 110,000 units a month, hopes to tap newer export markets in Asia and Africa. With an overall market share of around 17 per cent in the domestic two-wheeler market, the company expects to raise its export revenue from 11 per cent to about 25 per cent in the next three years.

Planning a home loan

Determine the right amount
The next step will be to determine the amount of loan you can go for. While budget considerations are the starting point for decision-making about buying a property, it is may be a good idea to find out the extent of housing loan banks may offer. The loan amount sanctioned by banks depends on three important factors - borrowers' income, repayment history and the cost of the property. Broadly, banks lend up to 3.5-4 times the annual gross income as a home loan. The loan eligibility for a longer tenure loan will be much higher.

Different banks have different ways to calculate loan eligibility. Preliminary enquiries with a couple of banks will give a rough idea of loan eligibility from an income point of view. The lender also restricts the loan amount to around 85-90 percent of the cost of the property even though the loan eligibility based on just the income may be higher. Most lenders include the stamp duty and registration charges in the cost of the property while calculating this 85-90 percent.

Most banks lend on the basis of income of the borrower and spouse. However, it is possible to shop around for banks that that allows you to club the incomes of your other close relatives (parents , siblings, children etc) to increase your loan eligibility.

Repayment ability
The ability to repay a housing loan is based on the income and expenditure pattern. If your monthly income is Rs 15,000 and your monthly expense is Rs 9,000, then Rs. 4,000 can be considered as the sum you can pay as a home loan EMI.

Then, the loan eligibility is calculated as:
At an interest rate of 11 percent, the monthly installment of a Rs 1 lakh loan for a 20-year tenure is Rs 1,100. Banks calculate the loan eligibility based on a simple formula. Home loan eligibility in lakh is equal to the amount available for loan repayment divided by loan installment per lakh for the selected tenure (loan eligibility = Rs 4,000 divided by 1,100 multiplied by 1 lakh = Rs 3.63 lakhs) Larger the repayment capability, the higher will be the loan eligibility. When taking a loan, one must take into account the fact that interest rates fluctuate during the loan tenure. The fluctuation will impact the home loan EMI, whether one takes a loan at a fixed interest rate or floating interest rate. If the borrower is younger, banks are willing to give an extension on loan tenure but if the loan borrower is in 40s, the only option given is to increase the EMI. Therefore, determining the disposable surplus will go a long way in getting the right amount of housing loan.

thanks by :- economictimes.indiatimes.com

LIC losing ground in overseas market

NEW DELHI: Country's largest life insurer LIC is losing business in the overseas market year after year as it has failed to attract new customers amid stiff competition.

The first premium collection from foreign operations which stood at Rs 123.41 crore in 2004-05 declined to Rs 120.8 crore in the following year and further to Rs 108.67 crore for the year ended March 2007, official sources told media.

Thus, the new business in the overseas market declined by nearly 12 per cent in a span of three years, they said.
The decline in the first premium income in successive years is mainly because of failure of marketing strategies to attract new customers amid stiff competition, the sources said.

The sources also attributed the decline to reduction in sale of single premium policies by LIC Bahrain for 2004-05.
However, on the back of old policies, renewal premium witnessed a growth. During 2004-05, LIC's operations abroad earned renewal premium of Rs 235 crore, which increased to Rs 292 crore the next year. Renewal premium stood at Rs 341 crore in 2006-07.

Despite falling first premium income, LIC has charted aggressive foreign expansion plan with a view to increase bagging of new policies.

The insurer is currently exploring opportunities for expansion in new territories, including Asian countries such as Singapore, the sources said.

Besides, it has formed a new joint venture company Saudi Indian Co for Cooperative Insurance in Saudi Arabia. The venture has already received certificate of registration.

At present, LIC has operation in countries including UAE, Bahrain, Oman, Nepal and USA. In the domestic market it continues to be a market leader with first year premium collection of Rs 59,182 crore in 2007-08.

However, in terms of year-on-year growth, new business grew by just 5.8 per cent in 2007-08, compared to a massive 118 per cent increase in 2006-07. During 2006-07, LIC earned first premium income of Rs 55,934 crore, against Rs 25,645.19 crore in the previous year.

Asian currencies mostly down against dollar

HONG KONG: Major Asian currencies ended the week mainly lower against the dollar as US jobs data was not as bad as feared, although concern persisted over the state of the world's largest economy.

JAPANESE YEN:

The yen fell back from a three-week high against the dollar but market players remained reluctant to buy the greenback due to worries over US economic weakness.

The Japanese currency rose to the week's high of 105.25 to the dollar on Monday on an upgrade of the Japanese government bond rating, but gradually lost ground to hit a low of 106.88 on Friday.

It ended daytime trading at 106.72-75 to the dollar on Friday, slightly off from 106.34-36 a week earlier. There were persistent concerns over the US economy amid soaring oil prices and falls in US and Japanese stocks.

The European Central Bank raised its key rate by a quarter point to 4.25 percent on Thursday as expected, but ECB chief Jean-Claude Trichet signalled the bank had not embarked on a series of hikes.

Societe Generale senior forex manager Kenichi Yumoto said there was "no room for an interest rate hike in the United States either." "You can never be hawkish in monetary policy with stock prices falling and payrolls shrinking," he said.

The US economy lost 62,000 jobs in June, well below the figure of 100,000 that some had feared, official figures showed on Thursday.

"Despite a slight recovery in US stocks (on Thursday) overall global stock performance is still weak and players are nervous about volatile markets," Okasan Securieties senior trader Tsutomu Soma told Dow Jones Newswires.

No significant US economic indicators are due next week but players may become more cautious ahead of the release of US financial institutions' earnings results, traders said.

AUSTRALIAN DOLLAR:

The Australian dollar's recent volatility is expected to continue next week as the currency pushes closer to parity with the greenback, dealers said.

The Australian dollar was trading at 96.20 US cents at 5:00 pm (0800 GMT) Friday, up on the previous week's 95.90 US cents.

AMP Capital Investors chief economist Shane Oliver said high prices for coal and iron ore exports had helped Australia record its first monthly trade surplus in six years for April, which was likely to further boost the currency.

"While the ride for the Australian dollar will remain volatile, Australia's strong terms of trade and high relative interest rates are supportive of further gains," he said.

"We remain of the view that it is only a matter of time before parity is reached.

"The elimination of the monthly trade deficit on higher iron ore and coal prices will also likely be a positive for the Australian dollar," he added.

NEW ZEALAND DOLLAR:

The New Zealand dollar ended local trading Friday at 75.61 US cents, down from 76.05 at the end of the previous week.

The currency lost ground midweek after central bank governor Alan Bollard said the economy would be flat in the second quarter before picking up later in the year.

The kiwi rose against the greenback but weakened at the end of the week after the US dollar rallied on payroll data suggesting the US job market and economy were not as dire as many investors had feared.

Bank of New Zealand currency strategist Danica Hampton said the local dollar was also dragged down against the greenback by the plunge in the euro against the US currency.

This followed the European Central Bank taking a less hawkish tone on future interest rate rises, following its decision to raise rates by a quarter percentage point.

CHINESE YUAN:

The yuan closed at 6.8626 to the dollar Friday on the exchange-traded market, compared with Thursday's close of 6.8510, and a closing price of 6.8609 to the dollar last Friday.

On the over-the-counter market, it ended at 6.8589 to the dollar against 6.8510 in the previous day.

The central bank had set the yuan central parity rate at 6.8639 to the dollar Friday, compared with 6.8529 on Thursday.

The People's Bank of China allows a trading band of 0.5 percent on either side of the midpoint.

HONG KONG DOLLAR:

The US-linked Hong Kong dollar finished the week at 7.799 to the greenback compared with 7.8016 the week before.

INDONESIAN RUPIAH:

The rupiah ended the week's trading at 9,215 to the dollar compared to 9,213 a week earlier.

PHILIPPINES PESO:

The Philippines peso fell to 45.45 to the dollar on Friday afternoon from 44.79 on June 27.

SINGAPORE DOLLAR:

The dollar was at 1.3600 Singapore dollars on Friday from 1.3646 the previous week.

SOUTH KOREAN WON:

The won slumped to a 32-month low of 1,050.40 to the dollar Friday, compared with 1,041.5 won a week earlier, as oil price continued rising and foreign investors kept dumping local stocks.

The government was forced to intervene Wednesday, when the dollar surged to 1,057 won. Authorities poured an estimated four billion dollars in a matter of an hour or so, dealers said. The dollar then plunged 22 won.

But government intervention apparently eased the following days, after an unidentified senior official of the presidential Blue House reportedly said government authorities should take their hands off the market.

News reports here said South Korea had spent at least 10 billion dollars over the past three months to help bolster the weakening won and ease inflationary pressure from high oil prices.

TAIWAN DOLLAR:

The Taiwan dollar fell slightly to close Friday at 30.401 against the US dollar, down from 30.388 a week earlier.

THAI BAHT:

The Thai baht rose slightly against the greenback over the week as poor US economic data caused the dollar to weaken, dealers said. The Thai unit closed on Friday at 33.48-49 to the dollar compared with the previous week's close of 33.53-56.

Suzuki to launch new ‘global car’ in India

Japanese auto maker Suzuki Motor Corp (SMC) will launch a new ‘global car’ in India and locate its biggest production units in the country, company chairman Osamu Suzuki said in New Delhi on Tuesday.

The new car, referred to as a ‘global car’ by the company, would be made at Maruti Suzuki India Ltd’s (MSIL) plant near the capital. Suzuki owns 54.2 per cent stake in MSIL.

The car would be targeted primarily at the European market and is expected to be launched in the small car segment, officials said.

“In order to cope with the more intensifying competition, Maruti will make further investments in the field of not only manufacturing but also R&D (research and development) and sales,” Suzuki said.

Osamu Suzuki is currently on a three-day visit to India. He is expected to highlight the increasing significance of India, which is gradually emerging as one of the company’s most important markets after Japan.

“Both our plants (Gurgaon and Manesar in Haryana) are totally geared up to produce one million units a year by 2010, but our sales network needs to be strengthened which remains one of our weak areas,” Suzuki said, adding that the company is keen to invest over $1 billion in R&D in India.

“Even though we have set ourselves the target of producing one million units by 2010, we are worried about certain challenges that the company is facing in India,” he pointed out.

“One of them is the capacity at the Mumbai port, which is currently full and operating beyond its capacity. We are also eagerly waiting for the railway freight to come up, in the absence of which we are facing huge difficulties in transportation between Delhi and Mumbai.”

The Indian government, which earlier owned a stake in the firm’s Indian subsidiary, completely exited from it in May this year.

The Maruti saga began in the 1970s when Suzuki responded to the invitation of then Prime Minister Indira Gandhi to set up a car factory in India in collaboration with her favourite son Sanjay Gandhi’s prototype small car project.

India Stocks Rise; Bharat Heavy, Larsen & Toubro Advance

July 4 (Bloomberg) -- Indian stocks rose after a regional political party said Prime Minister Manmohan Singh's nuclear agreement with the U.S. is ``satisfactory,'' signaling they may support the deal and prevent the government from collapsing.

Bharat Heavy Electricals Ltd., the country's largest power equipment maker, had the biggest gain on the Sensitive Index this week. Jaiprakash Associates Ltd., India's biggest builder of dams, climbed the most in more than three months.

``Early elections look unlikely now,'' said R.K. Gupta, who manages the equivalent of about $100 million of stocks at Taurus Asset Management Co. in New Delhi. ``Chances of the nuclear deal going through seem bright, that's giving some relief to the markets.''

The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 359.89, or 2.8 percent, to 13,454. The index posted its seventh weekly decline, its longest losing run since the week ended April 13. The S&P CNX Nifty Index on the National Stock Exchange added 90.25, or 2.3 percent, to 4,016.

India's Samajwadi Party, a regional group based in the country's most populous state, will decide later today after meeting smaller parties whether to back the deal, Mulayam Singh Yadav, chief of the Samajwadi Party, told reporters in New Delhi after meeting Singh.

The ruling coalition is making a final attempt to shore up support for a nuclear energy accord before Singh and President George W. Bush meet in Japan next week. The Congress party, which leads the alliance, has sought backing from other parties to save the accord after its communist allies threatened to withdraw support.

Bharat Heavy
Bharat Heavy rose 7 percent to 1,500.20 rupees, the most since June 11. Jaiprakash added 11 percent to 153.50 rupees, its biggest advance since March 25. Larsen & Toubro Ltd., India's largest engineering company, gained 6.7 percent to 2,381.45 rupees. Siemens India Ltd., the local unit of Europe's biggest engineering company, jumped 11 percent to 428.40 rupees, its most since Oct. 29.

Stocks also rose after the weather office said India's monsoon, which accounts for four-fifths of the nation's annual rainfall, has been 21 percent above average so far this season.

ITC, the country's largest cigarette maker, rose 1.1 percent to 171.20 rupees. Hindustan Unilever Ltd., India's biggest maker of household goods, added 2.6 percent to 201.50 rupees.

Overseas funds sold a net 3.5 billion rupees ($87 million) of Indian stocks on July 2, increasing their net outflow this year from equities to $6.41 billion, according to the nation's stock market regulator.

Jain Irrigation Systems Ltd. (JI IN) rose 28.25 rupees, or 6.5 percent, to 461, its biggest gain since March 24. India's biggest agriculture-related company by value rebounded from a 14-month low after 3.1 percent of its shares traded in a single transaction. As many as 2.23 million shares traded at 442 rupees apiece at 10:06 a.m. local time on the Bombay Stock Exchange, data available on the Bloomberg showed. The buyers and sellers weren't immediately known.

Punj Lloyd Ltd. (PUNJ IN) added 28.2 rupees, or 14 percent, to 227.85, the most since May 23, 2006. The engineering and construction company got a 10.1 billion rupees contract from GVK Power (Govindwal Sahib) Ltd. to build a coal-fired thermal power project. Work on the project is expected to be completed by 2011, the company said.

Ranbaxy Laboratories Ltd. (RBXY IN) rose 24.45 rupees, or 4.8 percent, to 538.40, the most since June 10. Pfizer Inc., the world's biggest drugmaker, may offer 20 percent more than Daiichi Sankyo Co.'s $4.6 billon bid to obtain a majority stake in Ranbaxy, the Financial Chronicle reported, without citing anyone.

Reliance Communications Ltd. (RCOM IN) climbed 47.05 rupees, or 12 percent, to 436.75, the biggest advance since Feb. 4. India's second-largest mobile phone service operator plans to raise as much as $6 billion from banks to help fund its proposed acquisition of Africa's MTN Group Ltd., the Economic Times newspaper reported, citing unidentified people familiar with the matter.

SpiceJet Ltd. (SJET IN) rose 1.8 rupees, or 7.8 percent, to 25, the most since June 6. Kingfisher Airlines Ltd. is close to finalizing a share-swap deal with low-cost carrier SpiceJet, the Business Standard newspaper said, without saying where it got the information. SpiceJet's stockholders are expected to get one share of the merged entity for every three shares owned, the newspaper said.

Shrenuj & Co. (SJC IN) climbed 4.5 rupees, or 18 percent, to 30.10. The Indian diamond retailer rose the most since April 13, 1998, after 3.5 percent of its equity changed hands in a single trade.

To contact the reporters on this story: Pooja Thakur in Mumbai at pthakur@bloomberg.net

Priority is to calm inflation nerves - RBI

MUMBAI (Reuters) - Volatile prices of food and commodity prices have pushed inflation higher and the most urgent priority for central bankers is to calm nerves on inflation, the Reserve Bank of India (RBI) governor said.

"The most urgent and short-term priority for central bankers at the current juncture seems to be to calm the nerves about inflation or to anchor inflation expectations, with an implicit recognition that a somewhat elevated headline inflation in the short-term may be difficult to avoid," Yaga Venugopal Reddy said in a speech delivered in Manchester on July 1.
A copy of the speech was posted on RBI's Web site wwww.rbi.org.in on Friday.
"Further, high inflation rates when accompanied by higher variability of inflation raises greater uncertainties. These acute policy dilemmas at the current juncture between growth and inflation have to be faced in the background of financial turbulence which is yet to calm down," he added.
India's annual inflation rate rose to 11.63 percent on June 21, its highest since the annual numbers in the current series began in 1995. It was 11.44 percent a week earlier.
Reddy said higher and volatile prices of food, energy and other commodities were causing a significant upside bias to inflation around the world, complicating the conduct of monetary policy at the time of financial stress.
"Further, while rising energy prices may be an exogenous shock for several countries, for the global economy as a whole it is endogenous," he said.
Reddy said underlying demand conditions in India had warranted the RBI's policy tightenings in June.
The RBI raised its key lending rate twice in the month, increasing it 75 basis points to 8.50 percent, its highest since March 2002. It also announced a 50 basis point increase in banks' reserve requirements.
Reddy said India had largely avoided the global financial contagion from the subprime crisis, partly because its credit derivative market was in its infancy, its financial distribution model not comparable with advanced economies and because of curbs on local investors buying financial products issued overseas.

CORRECTED - CORRECTED-India Hot Stocks: Punj Lloyd up on 10.05-bln-rupee ord

Shares in steel pipe makers were down 0.5-2 percent after the firms pledged to cut steel pipes and tubes prices by 10 percent to help fight inflation.

PSL Ltd (PSLH.BO: Quote, Profile, Research), which has a huge domestic market share, was down 0.87 percent, while Man Industries (MIND.BO: Quote, Profile, Research) fell by 1.94 percent. Welspun Gujarat (WGSR.BO: Quote, Profile, Research), which exports most of its output, was flat.

thanks by:- www.in.reuters.com

IPO Alerts - Birla Cotsyn India Ltd

The initial public offer of Birla Cotsyn (India) Ltd, a Yash Birla Group company engaged in textile manufacturing, received bids for 0.22 times the shares on offer on the second day of the issue today. The portion reserved for non-institutional investors got subscribed 0.71 times, while the portion for retail investors was subscribed 34 per cent. The Qualified Institutional Buyers' portion was marginally subscribed.
The price band of the issue has been fixed between Rs 15 and Rs 18. The issue will close on July 4.
The company would utilise the issue proceeds to set up an integrated textile unit and a garment manufacturing plant at its existing facilities in Maharashtra.
The IPO would also fund the firm's foray into retail outlets which it plans to set up across the country.

Falling shares, Ambani feud could scupper MTN deal

Reliance Communications Ltd has only days to reach an agreement for a tie-up with South Africa's MTN Group, but falling shares and a face-off between the Ambani brothers could scuttle a deal. Reliance Communications, controlled by Anil Ambani, is currently in exclusive talks with MTN to create a global 10 telecom company but this agreement ends on July 8.

However, in mid-June Reliance Industries, run by older brother Mukesh Ambani, claimed first right of refusal on India's No. 2 mobile operator, based on a deal signed when their late father's business was being split between the brothers. The bitter rivalry between India's two richest men has shown no sign of letting up. In an e-mail statement on Thursday Reliance Industries said it had invoked a dispute resolution agreement to settle the differences and invited Reliance Communications to participate, but this was immediately dismissed by a Reliance Communications spokesman.

"RIL has invoked the provisions of dispute resolution contained in the Non-Competition Agreement dated January 12, 2006, and has invited RCOM to participate in the process of mutual conciliation prior to the commencement of formal arbitration," India's most valuable listed company said. "This is only a sign of RIL's increasing desperation and frustration," a Reliance Communications spokesman said.

MTN, sub-Saharan Africa's top mobile operator, has about 68 million subscribers in nearly two dozen countries. Reliance Communications, the second largest mobile operator in India, has 48 million subscribers. "The tiff has almost certainly scuppered the deal," said Emeka Obiodu, a senior mobile technologies specialist at London-based research firm Global Insight.

"As long as there is any uncertainty about the legal validity of a deal, it is unlikely MTN will go through with it. And there is no point in extending talks if the situation will not change." Shares in Reliance Communications have shed a third of their value since the company said in May the firms were considering a potential combination. The company's shares fell 6.9 percent on Thursday.

Reliance Communications said last month the claim by Reliance Industries would not delay its talks with MTN. But traders in Mumbai earlier this week said concerns that Mukesh may throw a spanner into the works had helped push down the share price. The lower valuation of Reliance Communications, which now has a market worth of about $18 billion, down from nearly $27 billion when it first said it was in talks, could spoil the share swap that the two firms were reported to be discussing.

Media reports and a source close to the development had indicated the two firms were aiming at a reverse takeover, with a share swap that would give the Anil Dhirubhai Ambani Group the largest shareholding in MTN, and making Reliance Communications a subsidiary of MTN, sub-Saharan Africa's top mobile operator. "Ambani may also need more cash, now that valuation has fallen, and that will be difficult in this market," Shah said, adding the deal had a "50-55 percent chance" of going through.

Thanks to http://economictimes.indiatimes.com