JPMorgan Chase has announced it is acquiring Bear Stearns for about USD 2 a share in stock.
JPMorgan has said that they will ensure that the stock trades till the deal is completed.
On Friday Bear Stearns had received emergency funding from JPMorgan Chase to stave off liquidity problems arising from the credit crisis.
JPMorgan Chase, in association with the Federal Reserve Bank of New York, will provide a secured loan facility for an initial period of up to 28 days, allowing Bear Stearns to access liquidity as needed.
Bear Stearns also said it is talking with JPMorgan Chase regarding permanent financing or other alternatives. The Board of the Federal Reserve has approved the proposal for such a bailout.
The Bear Stearns stock plunged almost 50 percent after the news of the financing came in.
Monday, March 17, 2008
Fed cuts discount rate by 25 bps to 3.25%
The U.S. Federal Reserve has cut the discount rate by 25 basis points from 3.5 percent to 3.25 percent effective immediately.
The Central Bank also extended the maximum term of discount-window loans to 90 days from 30 days. The Fed, in a statement said that the moves were designed to bolster market liquidity and promote orderly market functioning.
US stock Index Futures rose after the unexpected rate cut, on the back of the news the US dollar edged higher against the Yen.
The Central Bank also extended the maximum term of discount-window loans to 90 days from 30 days. The Fed, in a statement said that the moves were designed to bolster market liquidity and promote orderly market functioning.
US stock Index Futures rose after the unexpected rate cut, on the back of the news the US dollar edged higher against the Yen.
MARKET OUTLOOK
GLOBAL MARKET IS WEAK TODAY.GLOD IS IN ALL TIME HIGH.FED CUT DISCOUNT RATE BY 25 BPS TO EASE LIQUIDITY.INDIA WILL FOLLOW THW THE PHASE. LEVEL OF NIFTY IS 4450-4500-4600-4700,MAEKET SL WOULD BE FOR ALL LONG IS 4450,BELOW THIS MARKET WOULD BLEED.IF MARKET SUSTAIN ABOVE 4500 OIL& GAS AND PSU BANK CAN ASSUME LONG SIDE AND IF MARKET TOUCH 4700 LEVEL WE CAN ASSUME SHORT IN POWER AND CONSTRUCTION STOCK.
HAVE NICE TRADING DAY
HAVE NICE TRADING DAY
Saturday, March 15, 2008
Farm loan waiver due to tax buoyancy, fiscal space: FM
Finance Minister P Chidambaram said average growth in the last four years of the UPA government stood at 8.8%, reports CNBC-TV18. He was addressing Parliament on funding the debt relief package for farmers.
It will take four Budgets and possibly a future government to fund the UPA government's Rs 60,000 crore debt to farmers. The Finance Minister told the nation how he plans to fund the farm loan waiver. The Finance Minister told Parliament that the government will compensate scheduled commercial banks, regional rural banks and co-operative credit institutions fully over a period of four years starting July 2008.
“Immediately after June 30, 2008, as soon as the first supplementary for 2008-09 is approved by Parliament, Rs 25,000 crore will be released to the institutions. In Budget 2009-10, Rs 15,000 crore will be provided; in Budget 2010-11, Rs 12,000 crore will be provided; in Budget 2011-12, Rs 8,000 crore will be provided. In phasing out the package across institutions in course of time, we have been and will be mindful of the need to ensure that all institutions have ample liquidity to meet fresh credit demand,” said P Chidambaram.
The FM is confident the liberal farm loan waiver package will have a negligible impact on the fiscal deficit. It will be an additional burden of less than 0.25% of GDP every year.
“Since I have been able to find Rs 10,000 crore to establish the fund in year zero, this will reduce the burden in future years. Given the potential for the rapid growth of the economy, the burden in any single year will not be more than 0.25% of the GDP. Actually it will be 0.2% of GDP only in ‘08-‘09 and will decline in every successive year and will only be 0.1% in 2011-12,” he added.
Where will the money come from? P Chidambaram believes robust earnings will bail him out. If they don't, he has three other options.
“I am therefore very confident that we can finance a burden of this order as part of the regular Budget exercise. The source of fund to the government are tax revenues; non tax revenues, as in dividends, interests, royalties and fees; non-debt capital receipts i.e. recovery of loans in advances, premium on the sale of sequestered assets and initial listing of public sector enterprises and additional borrowing if necessary,” he stated.
The Finance Minister said the tax to GDP ratio is seen at 12.5% by FY08-end and 13% for FY09. "FY09 fiscal deficit seen at 2.5% of GDP. This deficit includes bonds issues seen at 3.6%."
The government is meeting its indirect tax mop-up target year after year, Chidambaram said. "The government far exceeded its direct tax mop-up target. A higher growth and tax buoyancy gives headroom to spend. It is able to waive farm loan on tax buoyancy, fiscal space."
Provisional estimate of farm loan waiver seen at Rs 60,304 crore, the FM said. “A relief of Rs 50, 524 crore is to be offered to small and marginal farmers. 35% of farm loan borrowers are from commercial banks. The whole farm loan waiver process is to be completed by June 30. The disbursement process will be spread over three agricultural years and four financial years.”
Relief worth Rs 9,790 crore will be provided to other farmers, he said. “The government plans to give Rs 25,000 crore debt waiver post June, Rs 15,000 crore in FY10, Rs 12,000 crore in FY11, and Rs 8,000 crore in FY12. It plans to reimburse Rs 25,000 crore to banks between July 1, 2008 and June 30, 2009.”
According to Chidambaram, the government is in a position to increase education allocation by 20% every year. “More money is being given to states for spending on health. The government plans to roll out the National Skill Development Plan by March 31. It plans to rapidly scale up the national skill plan from April.”
The Finance Minister said he is concerned over farmers in moneylenders’ clutches. “There are socio-economic inhibitions in identifying money lenders.”
FY08 food grain offtake under PDS seen at 31.3 million tonne, he added.
It will take four Budgets and possibly a future government to fund the UPA government's Rs 60,000 crore debt to farmers. The Finance Minister told the nation how he plans to fund the farm loan waiver. The Finance Minister told Parliament that the government will compensate scheduled commercial banks, regional rural banks and co-operative credit institutions fully over a period of four years starting July 2008.
“Immediately after June 30, 2008, as soon as the first supplementary for 2008-09 is approved by Parliament, Rs 25,000 crore will be released to the institutions. In Budget 2009-10, Rs 15,000 crore will be provided; in Budget 2010-11, Rs 12,000 crore will be provided; in Budget 2011-12, Rs 8,000 crore will be provided. In phasing out the package across institutions in course of time, we have been and will be mindful of the need to ensure that all institutions have ample liquidity to meet fresh credit demand,” said P Chidambaram.
The FM is confident the liberal farm loan waiver package will have a negligible impact on the fiscal deficit. It will be an additional burden of less than 0.25% of GDP every year.
“Since I have been able to find Rs 10,000 crore to establish the fund in year zero, this will reduce the burden in future years. Given the potential for the rapid growth of the economy, the burden in any single year will not be more than 0.25% of the GDP. Actually it will be 0.2% of GDP only in ‘08-‘09 and will decline in every successive year and will only be 0.1% in 2011-12,” he added.
Where will the money come from? P Chidambaram believes robust earnings will bail him out. If they don't, he has three other options.
“I am therefore very confident that we can finance a burden of this order as part of the regular Budget exercise. The source of fund to the government are tax revenues; non tax revenues, as in dividends, interests, royalties and fees; non-debt capital receipts i.e. recovery of loans in advances, premium on the sale of sequestered assets and initial listing of public sector enterprises and additional borrowing if necessary,” he stated.
The Finance Minister said the tax to GDP ratio is seen at 12.5% by FY08-end and 13% for FY09. "FY09 fiscal deficit seen at 2.5% of GDP. This deficit includes bonds issues seen at 3.6%."
The government is meeting its indirect tax mop-up target year after year, Chidambaram said. "The government far exceeded its direct tax mop-up target. A higher growth and tax buoyancy gives headroom to spend. It is able to waive farm loan on tax buoyancy, fiscal space."
Provisional estimate of farm loan waiver seen at Rs 60,304 crore, the FM said. “A relief of Rs 50, 524 crore is to be offered to small and marginal farmers. 35% of farm loan borrowers are from commercial banks. The whole farm loan waiver process is to be completed by June 30. The disbursement process will be spread over three agricultural years and four financial years.”
Relief worth Rs 9,790 crore will be provided to other farmers, he said. “The government plans to give Rs 25,000 crore debt waiver post June, Rs 15,000 crore in FY10, Rs 12,000 crore in FY11, and Rs 8,000 crore in FY12. It plans to reimburse Rs 25,000 crore to banks between July 1, 2008 and June 30, 2009.”
According to Chidambaram, the government is in a position to increase education allocation by 20% every year. “More money is being given to states for spending on health. The government plans to roll out the National Skill Development Plan by March 31. It plans to rapidly scale up the national skill plan from April.”
The Finance Minister said he is concerned over farmers in moneylenders’ clutches. “There are socio-economic inhibitions in identifying money lenders.”
FY08 food grain offtake under PDS seen at 31.3 million tonne, he added.
Friday, March 14, 2008
Jindal Stainless to enter power, logistics sectors
India's largest stainless steel producer, Jindal Stainless Ltd, plans to set up an independent power project in Orissa, a senior official said on Friday.
The company, which is setting up a separate firm for an infrastructure foray, would start by entering the logistics sector with its own trucks, Arvind Parekh, director for strategy and business development told Reuters.
"We will kick off with logistics first and then we will enter the power sector," Parekh said.
The new firm, Jindal Infrastructure & Utility Ltd, will also provide stainless steel designs for projects such as airport upgradation, he said. The parent would invest up to 5 billion rupees in a phased manner for setting up the firm, Parekh said.
The company, which is setting up a separate firm for an infrastructure foray, would start by entering the logistics sector with its own trucks, Arvind Parekh, director for strategy and business development told Reuters.
"We will kick off with logistics first and then we will enter the power sector," Parekh said.
The new firm, Jindal Infrastructure & Utility Ltd, will also provide stainless steel designs for projects such as airport upgradation, he said. The parent would invest up to 5 billion rupees in a phased manner for setting up the firm, Parekh said.
Microsoft and Yahoo met to discuss merger - WSJ
Microsoft Corp and Yahoo Inc met on Monday to discuss Microsoft's takeover offer for the Internet company, the Wall Street Journal reported on Friday, citing people familiar with the matter.
The meeting was said to be the first since Microsoft made its unsolicited offer for Yahoo, worth nearly $42 billion, on Jan. 31. Yahoo rejected the offer as inadequate last month.
The Journal said the meeting wasn't a negotiation and that no bankers were present.
The session was intended to allow Microsoft to present its vision of a combined company, and Yahoo executives mostly listened, the Journal quoted one of the sources as saying.
Microsoft and Yahoo spokesmen declined to comment.
The meeting was said to be the first since Microsoft made its unsolicited offer for Yahoo, worth nearly $42 billion, on Jan. 31. Yahoo rejected the offer as inadequate last month.
The Journal said the meeting wasn't a negotiation and that no bankers were present.
The session was intended to allow Microsoft to present its vision of a combined company, and Yahoo executives mostly listened, the Journal quoted one of the sources as saying.
Microsoft and Yahoo spokesmen declined to comment.
Annual inflation at 5.11 pct on March 1
India's wholesale price index rose 5.11 percent in the 12 months to March 1, higher than the previous week's rise of 5.02 percent, government data showed on Friday.
The rate was higher than a median forecast of 4.97 percent in a Reuters poll of analysts, and the highest since May 26, 2007, when inflation was 5.15 percent.
The annual inflation rate was 6.51 percent during the corresponding week of the previous year.
The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is published weekly.
The rate was higher than a median forecast of 4.97 percent in a Reuters poll of analysts, and the highest since May 26, 2007, when inflation was 5.15 percent.
The annual inflation rate was 6.51 percent during the corresponding week of the previous year.
The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is published weekly.
MARKET UPDATES
BAJAJ AUTO (BAL)DEMERGED IN TO TWO ENTITY BAJAJAUTO HOLDING LTD(BHIL) BAJAJ FINANCIAL SERVICE(BFS) IN TO 1:1 RATIO.BAL WILL RENAME AS A BAJAJ AUTO HOLDING LTS(BHIL).
POST DEMERGER EQUITY CALCULATION AFTER I: 1 CALCULATION WOULD BE BAL 101.18 CR (FACE VALUE RS 10),BHIL 144.48(101.18+43.5)CR (FACE VALUE RS 10),BFS 72.34(21.75+50.55(101.18/2))CR(FACE VALUE OF RS 5).
BAJAJ AUTO WILL BE IN TWO WHEELER BUSINESS AND BFS WHICH WILL BE LISTED LATER WILL LOOK AFTER WIND POWER CONSUMER FINANCE,AND INSURANCE,AND FINANCIAL SERVICE BUSINESS.
The Centre on Thursday approved the long-delayed mining policy that is expected to increase the investments by foreign and domestic com- panies in the mining sector. Soon after the Union Cabinet meeting chaired by Prime Minister Manmohan Singh, a government spokesperson said: "The implementation of the new National Mineral Policy 2008, is likely to attract FDI to the tune of $250 million per annum in the sector in five years."
Pyramid Saimira Theatre Ltd has informed the BSE that it has entered into a strategic partnership with UK-based Spize TV for content, new channels and services.
SpizeTV is a pan-European direct-to-home (DTH) TV platform offering Asian and niche content to viewers in Europe.
The Nikkei was down 1.5 percent at 12,249.99. Analysts said the reason for this fall was the dollar hitting a new low against the yen.
Light sweet crude for April delivery rose 41 cents to settle at a record USD 110.33 a barrel on the New York Mercantile Exchange (NYMEX).
The Railways are planning to raise Rs 1,500 crore through initial public offering(IPO) of its three profit-making companies; Ircon, IRCTC and RailTel. The government has already decided to dilute its 28% equity stake in one of the Railways' wholly owned subsi- diary RITES through an IPO.
As part of its ambitious plan to become a 50,000-MW company by 2012, state-run NTPC Ltd on Thursday said it will invest Rs 13,000 crore for adding 2,700 MW capacity during the next financial year.
Inflation for week ended March 1 has come out at 5.11% versus 5.02% the previous week...
Economy News
RBI absorbs Rs 303.35 bn via 1- day reverse repo auction
Call rates remain in comfort zone
Six projects get nod under Industrial infrastructure upgradation scheme
Rupee remains steady at 40.44/USD
Forex earnings from tourism decline 25.3%
Forex derivative losses likely to touch USD 3-5 bn
China to maintain steady growth in exports
The Planning Commission has projected a tentative outlay of Rs 123.77 billion for the Ministry for the 11th Plan period. The Ministry has proposed a few schemes for the 11th Plan, which are yet to be approved by the Cabinet.
Over half a trillion dollars have been wiped off from the wealth of investors in Indian stocks since the beginning of 2008 as an unending turbulence on Thursday sent the market to its lowest level in about six-and-a-half months.
The total loss of about Rs 20,50,000 crore (506 billion dollars) include over 300 billion dollars of promoters of the listed Companies, while public shareholders have lost close to 200 billion dollars.
POST DEMERGER EQUITY CALCULATION AFTER I: 1 CALCULATION WOULD BE BAL 101.18 CR (FACE VALUE RS 10),BHIL 144.48(101.18+43.5)CR (FACE VALUE RS 10),BFS 72.34(21.75+50.55(101.18/2))CR(FACE VALUE OF RS 5).
BAJAJ AUTO WILL BE IN TWO WHEELER BUSINESS AND BFS WHICH WILL BE LISTED LATER WILL LOOK AFTER WIND POWER CONSUMER FINANCE,AND INSURANCE,AND FINANCIAL SERVICE BUSINESS.
The Centre on Thursday approved the long-delayed mining policy that is expected to increase the investments by foreign and domestic com- panies in the mining sector. Soon after the Union Cabinet meeting chaired by Prime Minister Manmohan Singh, a government spokesperson said: "The implementation of the new National Mineral Policy 2008, is likely to attract FDI to the tune of $250 million per annum in the sector in five years."
Pyramid Saimira Theatre Ltd has informed the BSE that it has entered into a strategic partnership with UK-based Spize TV for content, new channels and services.
SpizeTV is a pan-European direct-to-home (DTH) TV platform offering Asian and niche content to viewers in Europe.
The Nikkei was down 1.5 percent at 12,249.99. Analysts said the reason for this fall was the dollar hitting a new low against the yen.
Light sweet crude for April delivery rose 41 cents to settle at a record USD 110.33 a barrel on the New York Mercantile Exchange (NYMEX).
The Railways are planning to raise Rs 1,500 crore through initial public offering(IPO) of its three profit-making companies; Ircon, IRCTC and RailTel. The government has already decided to dilute its 28% equity stake in one of the Railways' wholly owned subsi- diary RITES through an IPO.
As part of its ambitious plan to become a 50,000-MW company by 2012, state-run NTPC Ltd on Thursday said it will invest Rs 13,000 crore for adding 2,700 MW capacity during the next financial year.
Inflation for week ended March 1 has come out at 5.11% versus 5.02% the previous week...
Economy News
RBI absorbs Rs 303.35 bn via 1- day reverse repo auction
Call rates remain in comfort zone
Six projects get nod under Industrial infrastructure upgradation scheme
Rupee remains steady at 40.44/USD
Forex earnings from tourism decline 25.3%
Forex derivative losses likely to touch USD 3-5 bn
China to maintain steady growth in exports
The Planning Commission has projected a tentative outlay of Rs 123.77 billion for the Ministry for the 11th Plan period. The Ministry has proposed a few schemes for the 11th Plan, which are yet to be approved by the Cabinet.
Over half a trillion dollars have been wiped off from the wealth of investors in Indian stocks since the beginning of 2008 as an unending turbulence on Thursday sent the market to its lowest level in about six-and-a-half months.
The total loss of about Rs 20,50,000 crore (506 billion dollars) include over 300 billion dollars of promoters of the listed Companies, while public shareholders have lost close to 200 billion dollars.
TODAY'S MARKET
MARKET WILL OPEN IN POSITIVE TERITORY BECAUSE GLOBAL MARKETS ARE IN POSITIVE NOTE.
CRUDE OIL CORRECT A BIT FROM $111.
NIFTY LEVEL FOR THE DAY 4570-4620-4700-4750.
BUY FROM LOWER LEVEL.. METAL WAS BEATEN UP BADLY,METAL COULD RECOVER FASTLY DUE TO SHORT COVERING.. IF MARKET TURNED TO POSITIVE NOTE.
IN AUTO SPACE MARUTI LOOKS POSITIVE.
IN SHORT SIDE BANKING AND FINANCIAL SERVICE AND SATYAM LOOKS NEGATIVE IF MARKET DO NOT TAKE SUPPORT AT DOWN LEVEL.
HAPPY TRADING DAY !!
-BY MR. SAM
CRUDE OIL CORRECT A BIT FROM $111.
NIFTY LEVEL FOR THE DAY 4570-4620-4700-4750.
BUY FROM LOWER LEVEL.. METAL WAS BEATEN UP BADLY,METAL COULD RECOVER FASTLY DUE TO SHORT COVERING.. IF MARKET TURNED TO POSITIVE NOTE.
IN AUTO SPACE MARUTI LOOKS POSITIVE.
IN SHORT SIDE BANKING AND FINANCIAL SERVICE AND SATYAM LOOKS NEGATIVE IF MARKET DO NOT TAKE SUPPORT AT DOWN LEVEL.
HAPPY TRADING DAY !!
-BY MR. SAM
Thursday, March 13, 2008
India Mining Industry
India mining industry covers exploration of new minerals and mines, production of mineral resources from various mines in india, processing of the mineral ores like iron ore, bauxite ore, manganese ore etc. to obtain the more useful forms like iron, steel, Aluminium, manganese, etc., extraction of coal, gold, diamond etc. and economic matters of the india industry of mineral ore mining, the governmental mining policy, regulatory acts and laws, mining infrastructure of india, small-scale and mass mining projects, impact of mining jobs on the environment and other community issues.
Overview of Mining Industry in India
The mining industry in India includes both metallurgical and mineral mining industries in India and together they form the backbone of the industrial development of India as they provide the basic raw materials like coal, petrol, mining minerals, steel, copper, Aluminium metals etc. to the India manufacturers.
History of Mining in India:
Mining in India is over 6000 years old. The oldest mines in India include lead-zinc mineral deposits at Zawar, copper deposits at Khetri, and gold deposits in Karnataka. The mining techniques used back then were much ahead of their time specially the smelting techniques. A timeless example of the mastery of the old times craftsmen is the Iron Pillar in the Qutab Minar complex in New Delhi.
Mining Products in India
India mining products include a total of 84 minerals consisting of 4 fuels, 49 non-metallic industrial minerals, 11 metallic minerals, and 20 minor minerals. These mined products include: Aluminium, coal, cobalt, copper, chromium, diamond, gold, iron ore, lead, manganese, molybdenum, nickel, oil sands, palladium, platinum, silver, tantalum, tin, titanium, tungsten, uranium, vanadium, zinc, etc.
Location of Mining Sources or Mines in India
Petroleum: Bombay High Field, Gujarat and Assam
Coal: Tamil Nadu, Chhatisgarh, Maharashtra, Orissa, West Bengal and Andhra Pradesh
Iron Ore: Andhra Pradesh, Bihar, Goa, Karnataka, Madhya Pradesh, Maharashtra, Orissa, Rajasthan etc.
Diamonds: Panna Mines in Madhya Pradesh, Andhra Pradesh and Orissa
Gold & silver: Kolar fields in Karnataka, Dona block in Andhra Pradesh, Bansawar district Rajasthan and Madhya Pradesh.
Bauxite: Orissa, Andhra Pradesh, Madhya Pradesh, Gujarat, Maharashtra, and Bihar
Chromite: Byrapur, Karnataka, Boula, Kathpal, and Orissa
Copper Ore: Madhya Pradesh, Rajasthan, Bihar and Sikkim
Granite: Andhra Pradesh, Bihar, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Meghalaya, Orissa, Rajasthan, Tamil Nadu, Uttar Pradesh etc.
Lead and Zinc Ore: Rajasthan, Andhra Pradesh, Bihar, Gujarat, Maharashtra, Sikkim, Tamil Nadu, Uttar Pradesh
Manganese Ore: Madhya Pradesh, Goa, Maharashtra, Andhra Pradesh, Bihar, Gujarat, West Bengal and Karnataka
Role of India Government:
The government of India has different ministries for coal & mines, iron & steel, chemicals & fertilizers industry, atomic energy, petroleum &natural gas, environment & forests and labor industry. The survey and exploration of all minerals except petroleum, natural gas & atomic minerals. The mining industry is the responsibility of the ministry of mines (MoM) India. They device the mining policy and strategy for non-ferrous metals (Aluminium, Copper, Zinc, Gold, Nickel etc.) mining jobs.
The sub-ordinate organizations of the ministry of mines include:
Geological Survey of India (GSI): It conducts scientific surveys and research to locate mineral resources. GSI makes all the mining maps in India and also provides mines and mineral resources maps based on the research they do.
Indian Bureau of Mines (IBM): IBM is responsible for compilation of the mining exploration data and mineral maps for providing complete info on the new mines and fields in India. All the statistical information on mining industry in India - the mines, minerals, metals and the mineral based industries are available with the Indian Bureau of Mines.
India's contribution in the mineral production in world:
Overview of Mining Industry in India
The mining industry in India includes both metallurgical and mineral mining industries in India and together they form the backbone of the industrial development of India as they provide the basic raw materials like coal, petrol, mining minerals, steel, copper, Aluminium metals etc. to the India manufacturers.
History of Mining in India:
Mining in India is over 6000 years old. The oldest mines in India include lead-zinc mineral deposits at Zawar, copper deposits at Khetri, and gold deposits in Karnataka. The mining techniques used back then were much ahead of their time specially the smelting techniques. A timeless example of the mastery of the old times craftsmen is the Iron Pillar in the Qutab Minar complex in New Delhi.
Mining Products in India
India mining products include a total of 84 minerals consisting of 4 fuels, 49 non-metallic industrial minerals, 11 metallic minerals, and 20 minor minerals. These mined products include: Aluminium, coal, cobalt, copper, chromium, diamond, gold, iron ore, lead, manganese, molybdenum, nickel, oil sands, palladium, platinum, silver, tantalum, tin, titanium, tungsten, uranium, vanadium, zinc, etc.
Location of Mining Sources or Mines in India
Petroleum: Bombay High Field, Gujarat and Assam
Coal: Tamil Nadu, Chhatisgarh, Maharashtra, Orissa, West Bengal and Andhra Pradesh
Iron Ore: Andhra Pradesh, Bihar, Goa, Karnataka, Madhya Pradesh, Maharashtra, Orissa, Rajasthan etc.
Diamonds: Panna Mines in Madhya Pradesh, Andhra Pradesh and Orissa
Gold & silver: Kolar fields in Karnataka, Dona block in Andhra Pradesh, Bansawar district Rajasthan and Madhya Pradesh.
Bauxite: Orissa, Andhra Pradesh, Madhya Pradesh, Gujarat, Maharashtra, and Bihar
Chromite: Byrapur, Karnataka, Boula, Kathpal, and Orissa
Copper Ore: Madhya Pradesh, Rajasthan, Bihar and Sikkim
Granite: Andhra Pradesh, Bihar, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Meghalaya, Orissa, Rajasthan, Tamil Nadu, Uttar Pradesh etc.
Lead and Zinc Ore: Rajasthan, Andhra Pradesh, Bihar, Gujarat, Maharashtra, Sikkim, Tamil Nadu, Uttar Pradesh
Manganese Ore: Madhya Pradesh, Goa, Maharashtra, Andhra Pradesh, Bihar, Gujarat, West Bengal and Karnataka
Role of India Government:
The government of India has different ministries for coal & mines, iron & steel, chemicals & fertilizers industry, atomic energy, petroleum &natural gas, environment & forests and labor industry. The survey and exploration of all minerals except petroleum, natural gas & atomic minerals. The mining industry is the responsibility of the ministry of mines (MoM) India. They device the mining policy and strategy for non-ferrous metals (Aluminium, Copper, Zinc, Gold, Nickel etc.) mining jobs.
The sub-ordinate organizations of the ministry of mines include:
Geological Survey of India (GSI): It conducts scientific surveys and research to locate mineral resources. GSI makes all the mining maps in India and also provides mines and mineral resources maps based on the research they do.
Indian Bureau of Mines (IBM): IBM is responsible for compilation of the mining exploration data and mineral maps for providing complete info on the new mines and fields in India. All the statistical information on mining industry in India - the mines, minerals, metals and the mineral based industries are available with the Indian Bureau of Mines.
India's contribution in the mineral production in world:
- India is leading producer of mica blocks and mica splitting.
- Third largest Chromite producer in the world.
- Third in production of coal, lignite and barites .
- Fourth largest iron ore producer.
- Sixth largest bauxite and manganese ore producer.
- Tenth position in Aluminium .
- Eleventh position in crude steel production in the world.
Revised FDI ceilings for six sectors notified
More than a month after the Cabinet cleared the foreign direct investment (FDI) review proposal easing FDI norms in various sectors, the government on Wednesday notified the revised ceilings of foreign investment in six sectors. However, there is no mention in the norms of the proposal to relax the mandatory three-year lock-in period for foreign institutional investors in real estate as stated in the announcement made by the department of industrial policy & promotion following Cabinet clearance. According to sources, the finance ministry has rejected the proposal to allow foreign institutional investment in pre-IPO placements of Indian realty companies. This will mar the hopes of real estate companies eyeing funds through this route, as they are already hemmed in by rising home loan rates, and curbs on external commercial borrowing and issuing of convertible preferential shares. The notification contains liberalised FDI norms for six sectors. Apart from allowing 74% FDI in charters and cargo services, the government has allowed 100% FDI in helicopters, flight training institutes, ground handling and technical training through the automatic route. However, the eased guidelines have come with a rider. No foreign airline will be allowed to pick up equity, even indirectly, in air transport services, which will be defined for the first time. The second press note in 2008 waives the 26% divestment clause in the petroleum market and hikes FDI ceiling in PSU refineries to 49%. The third allows 49% foreign investment in commodity exchanges. Here, a single foreign investor cannot own more than 5%. The fourth press note deals with clearance of 49% FDI in credit information companies and scrapping of credit reference agencies from the list of non-banking finance company activities permitted for FDI. Press note 5 of 2008 allows 100% FDI in titanium mining, apart from specifying that no FDI is permitted in atomic minerals. The conditions for 100% FDI in industrial parts have been laid down through press note 6. Review of the FDI policy faced roadblocks since the beginning of 2007 due to strong opposition, especially from the Left, against allowing FDI in retail. The government had to finally exclude the sector from the review. Similarly, the move to hike FDI ceiling in insurance has also been kept on hold.
Feb budget gap balloons to record $175.56 bn
The U.S. government turned in a $175.56 billion budget deficit for February, a record for any month, as federal spending grew but a slowing economy caused receipts to fall 12.1 percent from a year earlier, the U.S. Treasury said on Wednesday.
The February deficit soundly beat the previous all-time single-month deficit of $119.99 billion in February 2007 and also exceeded Wall Street economists' consensus estimate of a $160.0 billion deficit in a Reuters poll.
February receipts fell to $105.72 billion from $120.31 billion in February 2007, the Treasury said as both corporate and individual income tax payments slowed.
February outlays grew to $281.29 billion, a record for February, from $240.30 billion in February 2007, the Treasury said.
The February deficit soundly beat the previous all-time single-month deficit of $119.99 billion in February 2007 and also exceeded Wall Street economists' consensus estimate of a $160.0 billion deficit in a Reuters poll.
February receipts fell to $105.72 billion from $120.31 billion in February 2007, the Treasury said as both corporate and individual income tax payments slowed.
February outlays grew to $281.29 billion, a record for February, from $240.30 billion in February 2007, the Treasury said.
Alok acquires 50% of Ashford
Textile firm Alok Industries has picked up a 50 per cent stake in Ashford Infotech Ltd through its wholly owned subsidiary Alok Infrastructure. Ashford Infotech is part of the UK-based Ashford group.
Ashford Infotech recently acquired Ceat Ltd’s 6.92-acre land at Bhandup, Mumbai, for around Rs 130 crore. The company will develop the land jointly with Alok Industries.
“We are still doing a feasibility study. We will primarily look at commercial development on the land. We wanted to go into such a project with a partner who has enough domain expertise in the field, which is why we entered into this joint venture with Ashford Infotech,” said Sunil . Khandelwal, chief financial officer of Alok Industries.
The company plans to raise Rs 600 crore by diluting a 20 per cent stake in Alok Infrastructure to a private equity player.
The company wants to use the money to expand its realty business in the country.
Alok Industries posted a 16.49 per cent rise in its net profit at Rs 43.17 crore for the third quarter ended December 31, 2007, compared with Rs 37.06 crore in the corresponding quarter of the previous fiscal.
Net sales rose 14.76 per cent to Rs 550.78 crore from Rs 479.92 crore in the year-ago period.
Exports during the quarter grew 61.90 per cent to Rs 251.41 crore from Rs 155.29 crore.
Tyre manufacturer Ceat Ltd is the flagship company of Rs 13,500-crore RPG Group.
According to reports, the proceeds of the sale will help in the expansion of the company.
The transaction will not affect Ceat’s existing tyre manufacturing operations or its employees.
The company’s ongoing operations will continue on the 24-acre land it has near Bhandup.
Ashford Infotech recently acquired Ceat Ltd’s 6.92-acre land at Bhandup, Mumbai, for around Rs 130 crore. The company will develop the land jointly with Alok Industries.
“We are still doing a feasibility study. We will primarily look at commercial development on the land. We wanted to go into such a project with a partner who has enough domain expertise in the field, which is why we entered into this joint venture with Ashford Infotech,” said Sunil . Khandelwal, chief financial officer of Alok Industries.
The company plans to raise Rs 600 crore by diluting a 20 per cent stake in Alok Infrastructure to a private equity player.
The company wants to use the money to expand its realty business in the country.
Alok Industries posted a 16.49 per cent rise in its net profit at Rs 43.17 crore for the third quarter ended December 31, 2007, compared with Rs 37.06 crore in the corresponding quarter of the previous fiscal.
Net sales rose 14.76 per cent to Rs 550.78 crore from Rs 479.92 crore in the year-ago period.
Exports during the quarter grew 61.90 per cent to Rs 251.41 crore from Rs 155.29 crore.
Tyre manufacturer Ceat Ltd is the flagship company of Rs 13,500-crore RPG Group.
According to reports, the proceeds of the sale will help in the expansion of the company.
The transaction will not affect Ceat’s existing tyre manufacturing operations or its employees.
The company’s ongoing operations will continue on the 24-acre land it has near Bhandup.
Uco to tap institutions for Rs 300 cr
Uco Bank today decided to raise between Rs 300 crore and Rs 325 crore by the end of this month by issuing perpetual non-cumulative preference shares to institutional investors.
The bank needs to augment its net owned capital to comply with Basel II norms from April this year and support business growth.
While a dividend is paid every year to preference shareholders, it does not become the first claim in perpetual non-cumulative preference shares.
Uco Bank has already proposed a capital restructuring plan, under which it wanted to convert part of the government’s Rs 600-crore equity (74.98 per cent) into preference shares and then come up with a follow-on public issue.
The government, however, is yet to give its final approval to the proposal, which prevents the bank from entering the capital market
“We are not pursuing the proposed public issue right now. The delay in the government decision and the current stock market conditions are not conducive for the issue. Therefore, we have decided to raise capital through perpetual non-cumulative preference shares, for which we have got shareholders’ approval at an extraordinary general meeting today,” said S.K. Goel, chairman and managing director of Uco Bank.
Goel said the bank had a headroom to raise Rs 625 crore through perpetual non-cumulative preference shares.
“Shareholders have unanimously approved mobilising the entire amount. However, we have decided to mop up between Rs 300 crore and Rs 325 crore before the end of this month,” Goel said.
“Earlier we considered saving this instrument for the future and launch a follow-on public offering to meet our capital requirement,” Goel said. But under the current situation, the bank reversed its position by putting its second public issue on hold until the stock markets stabilised.
The bank will raise only Rs 325 crore through perpetual non-cumulative preference shares because it plans to issue the remaining Rs 300-crore preference shares to the government once the government approves the bank’s capital restructuring plan.
Under the plan, the bank had proposed to convert Rs 300 crore of the government’s equity into preference shares.
Although the Reserve Bank of India approved the use of perpetual non-cumulative preference shares to expand the Tier I capital of banks, it announced a final guideline to raise money through this instrument in October last year.
The money raised through perpetual non-cumulative preference shares will raise Uco’s capital adequacy (Basel II compliant) ratio to around 11 per cent from 10.33 per cent as at the end of December 2007.
The bank needs to augment its net owned capital to comply with Basel II norms from April this year and support business growth.
While a dividend is paid every year to preference shareholders, it does not become the first claim in perpetual non-cumulative preference shares.
Uco Bank has already proposed a capital restructuring plan, under which it wanted to convert part of the government’s Rs 600-crore equity (74.98 per cent) into preference shares and then come up with a follow-on public issue.
The government, however, is yet to give its final approval to the proposal, which prevents the bank from entering the capital market
“We are not pursuing the proposed public issue right now. The delay in the government decision and the current stock market conditions are not conducive for the issue. Therefore, we have decided to raise capital through perpetual non-cumulative preference shares, for which we have got shareholders’ approval at an extraordinary general meeting today,” said S.K. Goel, chairman and managing director of Uco Bank.
Goel said the bank had a headroom to raise Rs 625 crore through perpetual non-cumulative preference shares.
“Shareholders have unanimously approved mobilising the entire amount. However, we have decided to mop up between Rs 300 crore and Rs 325 crore before the end of this month,” Goel said.
“Earlier we considered saving this instrument for the future and launch a follow-on public offering to meet our capital requirement,” Goel said. But under the current situation, the bank reversed its position by putting its second public issue on hold until the stock markets stabilised.
The bank will raise only Rs 325 crore through perpetual non-cumulative preference shares because it plans to issue the remaining Rs 300-crore preference shares to the government once the government approves the bank’s capital restructuring plan.
Under the plan, the bank had proposed to convert Rs 300 crore of the government’s equity into preference shares.
Although the Reserve Bank of India approved the use of perpetual non-cumulative preference shares to expand the Tier I capital of banks, it announced a final guideline to raise money through this instrument in October last year.
The money raised through perpetual non-cumulative preference shares will raise Uco’s capital adequacy (Basel II compliant) ratio to around 11 per cent from 10.33 per cent as at the end of December 2007.
Stage set for 49% FDI in refineries
The government has issued a formal notification to raise the foreign direct investment (FDI) limit in public sector refineries to 49 per cent.
In January, the cabinet had raised FDI in public sector oil refineries to 49 per cent from 26 per cent, but a formal notification was issued only today.
The department of industrial policy and promotion (DIPP) issued a press note saying, “It has been decided to allow FDI up to 49 per cent, with prior approval of Foreign Investment Promotion Board, in petroleum refining by PSUs without involving any divestment or dilution of domestic equity in the existing PSUs.”
Besides, the condition of compulsory divestment of up to 26 per cent by foreign companies involved in trading and marketing of petroleum products has been deleted.
The government has allowed 100 per cent FDI in the trading and marketing of petroleum products with a condition that 26 per cent foreign equity be divested in favour of an Indian partner or the Indian public within five years.
The biggest beneficiary of the decision will be the BG group of the UK, which had been resisting divestment of its stake in Mahanagar Gas Ltd.
Civil aviation
FDI limits in the domestic civil aviation sector have also been raised.
According to the guidelines, 100 per cent FDI would be allowed under the automatic route for greenfield projects, while in existing projects, FDI up to 100 per cent would be allowed with prior government approval for FDI beyond 74 per cent.
No foreign airlines will be allowed to participate in the equity of an air transport undertaking engaged in operating scheduled, non-scheduled and chartered airlines. However, they will be allowed to participate in the equity of companies operating cargo airlines, helicopter and seaplane services.
Commodity exchange
Investment by registered foreign institutional investors in commodity exchanges, under the portfolio investment scheme and the FDI scheme will be limited to 23 per cent and 26 per cent, respectively.
“With a view to infuse globally acceptable best practices, modern management skills and latest technology, it has been decided to allow foreign investment in commodity exchanges,” the DIPP said in a statement.
In January, the cabinet had raised FDI in public sector oil refineries to 49 per cent from 26 per cent, but a formal notification was issued only today.
The department of industrial policy and promotion (DIPP) issued a press note saying, “It has been decided to allow FDI up to 49 per cent, with prior approval of Foreign Investment Promotion Board, in petroleum refining by PSUs without involving any divestment or dilution of domestic equity in the existing PSUs.”
Besides, the condition of compulsory divestment of up to 26 per cent by foreign companies involved in trading and marketing of petroleum products has been deleted.
The government has allowed 100 per cent FDI in the trading and marketing of petroleum products with a condition that 26 per cent foreign equity be divested in favour of an Indian partner or the Indian public within five years.
The biggest beneficiary of the decision will be the BG group of the UK, which had been resisting divestment of its stake in Mahanagar Gas Ltd.
Civil aviation
FDI limits in the domestic civil aviation sector have also been raised.
According to the guidelines, 100 per cent FDI would be allowed under the automatic route for greenfield projects, while in existing projects, FDI up to 100 per cent would be allowed with prior government approval for FDI beyond 74 per cent.
No foreign airlines will be allowed to participate in the equity of an air transport undertaking engaged in operating scheduled, non-scheduled and chartered airlines. However, they will be allowed to participate in the equity of companies operating cargo airlines, helicopter and seaplane services.
Commodity exchange
Investment by registered foreign institutional investors in commodity exchanges, under the portfolio investment scheme and the FDI scheme will be limited to 23 per cent and 26 per cent, respectively.
“With a view to infuse globally acceptable best practices, modern management skills and latest technology, it has been decided to allow foreign investment in commodity exchanges,” the DIPP said in a statement.
TODAY'S MARKET
GLOBAL MARKETS ARE IN RED; CRUDE TOUCHED $110 ALSO GAS PRICE FOLLOWING THE TREND;
NIFTY WILL OPEN IN GAP DOWN NOTE;
NIFTY LEVEL FOR THE DAY IS 4620-4650-4700-4800-4850.
IF MARKET TAKE SUPPORT AT 4700 LEVEL BUY WITH A S L OF 4650 FINAL SL WILL BE FOR ALL LONG IS 4620.
HAVE A NICE TRADING DAY ..............
-BY MR. SAM
NIFTY WILL OPEN IN GAP DOWN NOTE;
NIFTY LEVEL FOR THE DAY IS 4620-4650-4700-4800-4850.
IF MARKET TAKE SUPPORT AT 4700 LEVEL BUY WITH A S L OF 4650 FINAL SL WILL BE FOR ALL LONG IS 4620.
HAVE A NICE TRADING DAY ..............
-BY MR. SAM
Wednesday, March 12, 2008
Industrial growth drops to 5.3% in Jan
Growth in index of industrial production (IIP) slipped to 5.3% in January 2008 when compared with 11.6% in January 2007.The industrial growth in January is also lower than the previous month's upwardly revised 7.7%, according to data released by Central Statistical Organisation (CSO) today.Industrial production growth in January is the lowest since October 2006, when it stood at 4.51%.Growth in industrial production slipped to 8.7% between April-January 2007-08 when compared with 11.2% in the corresponding period of the previous fiscal.The slower rate of growth has been attributed to a sluggish performance by manufacturing and mining sectors during the month. A strong rupee as well as tight monetary measures have cut demand resulting in lower growth rate of industrial production.Growth in the manufacturing sector declined to 5.9% in January as against 12.3% in January 2007. Electricity generation growth in January fell to 3.3% as against 8.3% in the year-ago period, and mining output growth moderated to 1.8% as against 7.7% in January 2007.
Worse is yet to come in forex derivative losses
The crisis is also expected to trigger plenty of litigation.The $50 million hit L&T took due to hedging losses in a subsidiary may just be the tip of the iceberg.
Losses by Indian companies as a result of their exposure to the foreign exchange derivatives market may hog the headlines for next few quarters since many of the currency swaps are likely to mature after March, said foreign exchange experts.
"This is a big thing brewing. The losses in some cases may be equal to a company’s profit for the whole year," said a senior executive with a Mumbai-based foreign exchange consultant, who did not want to be identified.
For example, Hexaware reported a Rs 81-crore loss for the quarter ended December 2007 after the company took a hit of about Rs 103 crore on account of unauthorised forex derivative deals struck by a company official.
The company had posted a net profit of Rs 110.07 crore in 2007 (the company follows a January to December financial year).
"Corporate India’s exposure is large. Banks have sold these derivatives to both small and big companies. However, many of these positions are maturing after March, and so companies are not required to reveal their losses this fiscal. The losses will be reflected in Q1 and Q2 of next fiscal,’’ added the expert.
Jamal Mecklai, CEO of Mecklai Financial, said he had estimated the losses to be $1billion (Rs 4,000 crore) though some others estimate it at $3 billion. "That is quite large. Today, I heard of a company that has an exposure of Rs 50 crore in forex derivatives on a topline of Rs 150 crore," he said
The crisis is also expected to trigger plenty of litigation since corporations think banks have mis-sold them all kinds of derivatives. In one such case, a paper and stationary manufacturer Sundaram Multipaper has sued ICICI Bank for its losses on forex derivative products.
"Many corporations have complained to the Reserve Bank of India, and you will have a lot of litigation. These are not just currency swaps. Banks have sold more exotic and complex structures to people who have not understood these trades," said another forex consultant who also requested anonymity.
A V Rajwade, a Mumbai-based consultant on risk management, said margins in plain vanilla trading are nominal where prices are readily available on screen.
"This is perhaps why banks have sold complex derivative products to companies. Some companies don't understand them; some are greedy," he said
Many companies don't have the discipline in marking their assets to market or imposing a stop-loss on their trades.
"Many of them do not understand the difference between hedging and reduction in cost or risk. This has led to a lot of problems in the market," Rajwade added.
Mecklai said the problem lies India's "slow and backward" accounting standards. "In other countries, you have to provide mark-to-market losses. Here, you can carry them forward till 2011. The accounting standards have to be tightened. Today, a lot of companies and banks are in battle but you need two hands to clap."
Almost all private banks—Yes Bank, ICICI Bank, HDFC Bank, Kotak Mahindra Bank— and even State Bank of India have sold these derivative structures, and can potentially be hit if companies do not pay.
"Banks are worried that they may have to pay upfront if these cases get into litigation," said a forex consultant.
The stock market may not be aware of the impending crisis and yet, banking stocks have come under selling pressure when everyone was hoping they would provide succour in a falling market.
The BSE Bankex has shrunk 30 per cent from January 8, 2008, when the benchmark BSE Sensex touched a high 20,873.33, faster than the market that has lost 23 per cent of its market cap since then.
Losses by Indian companies as a result of their exposure to the foreign exchange derivatives market may hog the headlines for next few quarters since many of the currency swaps are likely to mature after March, said foreign exchange experts.
"This is a big thing brewing. The losses in some cases may be equal to a company’s profit for the whole year," said a senior executive with a Mumbai-based foreign exchange consultant, who did not want to be identified.
For example, Hexaware reported a Rs 81-crore loss for the quarter ended December 2007 after the company took a hit of about Rs 103 crore on account of unauthorised forex derivative deals struck by a company official.
The company had posted a net profit of Rs 110.07 crore in 2007 (the company follows a January to December financial year).
"Corporate India’s exposure is large. Banks have sold these derivatives to both small and big companies. However, many of these positions are maturing after March, and so companies are not required to reveal their losses this fiscal. The losses will be reflected in Q1 and Q2 of next fiscal,’’ added the expert.
Jamal Mecklai, CEO of Mecklai Financial, said he had estimated the losses to be $1billion (Rs 4,000 crore) though some others estimate it at $3 billion. "That is quite large. Today, I heard of a company that has an exposure of Rs 50 crore in forex derivatives on a topline of Rs 150 crore," he said
The crisis is also expected to trigger plenty of litigation since corporations think banks have mis-sold them all kinds of derivatives. In one such case, a paper and stationary manufacturer Sundaram Multipaper has sued ICICI Bank for its losses on forex derivative products.
"Many corporations have complained to the Reserve Bank of India, and you will have a lot of litigation. These are not just currency swaps. Banks have sold more exotic and complex structures to people who have not understood these trades," said another forex consultant who also requested anonymity.
A V Rajwade, a Mumbai-based consultant on risk management, said margins in plain vanilla trading are nominal where prices are readily available on screen.
"This is perhaps why banks have sold complex derivative products to companies. Some companies don't understand them; some are greedy," he said
Many companies don't have the discipline in marking their assets to market or imposing a stop-loss on their trades.
"Many of them do not understand the difference between hedging and reduction in cost or risk. This has led to a lot of problems in the market," Rajwade added.
Mecklai said the problem lies India's "slow and backward" accounting standards. "In other countries, you have to provide mark-to-market losses. Here, you can carry them forward till 2011. The accounting standards have to be tightened. Today, a lot of companies and banks are in battle but you need two hands to clap."
Almost all private banks—Yes Bank, ICICI Bank, HDFC Bank, Kotak Mahindra Bank— and even State Bank of India have sold these derivative structures, and can potentially be hit if companies do not pay.
"Banks are worried that they may have to pay upfront if these cases get into litigation," said a forex consultant.
The stock market may not be aware of the impending crisis and yet, banking stocks have come under selling pressure when everyone was hoping they would provide succour in a falling market.
The BSE Bankex has shrunk 30 per cent from January 8, 2008, when the benchmark BSE Sensex touched a high 20,873.33, faster than the market that has lost 23 per cent of its market cap since then.
CORPORATE ANNOUNCEMENTS
Suven Life Establishes Second CNS Drug Discovery Collaboration with Lilly
Suven Life Sciences Ltd, on March 12, 2008 has announced that the Company has signed a second agreement with Eli Lilly and company, a US based global pharmaceutical company to collaborate on the pre-clinical research of molecules in the therapeutic area of central nervous system disorders (CNS).
Under the terms of the collaboration agreement, Suven will receive research funding and as well as potential discovery and development milestone payments in the range of $ 19 million to $ 23 million per candidate and potential royalties on net sales of any products that may be successfully commercialized from the collaboration.
Voltas launches elegant, new range of Room Air Conditioners in 2008
Voltas Ltd has announced that the Company has launched a whole new range of sleek-looking Room ACs in India for the premium and luxury segments. Functional as well as elegant, the new models are bound to heat up the AC market in the summer of 2008.Among the new models the first Corner AC to be introduced in India, the Vertis 'Pristine'. With a unique, triangular shape, the Pristine has been designed to fit discreetly on the wall in the corner of a room. It is therefore expected to be an instant hit with discerning consumers in upper end homes.
Suven Life Sciences Ltd, on March 12, 2008 has announced that the Company has signed a second agreement with Eli Lilly and company, a US based global pharmaceutical company to collaborate on the pre-clinical research of molecules in the therapeutic area of central nervous system disorders (CNS).
Under the terms of the collaboration agreement, Suven will receive research funding and as well as potential discovery and development milestone payments in the range of $ 19 million to $ 23 million per candidate and potential royalties on net sales of any products that may be successfully commercialized from the collaboration.
Voltas launches elegant, new range of Room Air Conditioners in 2008
Voltas Ltd has announced that the Company has launched a whole new range of sleek-looking Room ACs in India for the premium and luxury segments. Functional as well as elegant, the new models are bound to heat up the AC market in the summer of 2008.Among the new models the first Corner AC to be introduced in India, the Vertis 'Pristine'. With a unique, triangular shape, the Pristine has been designed to fit discreetly on the wall in the corner of a room. It is therefore expected to be an instant hit with discerning consumers in upper end homes.
MARKET ALERTS
Reliance Entertainment Pvt. Ltd, the media and entertainment arm of the Reliance Anil Dhirubhai Ambani Group (R-Adag) that has interests in film production, distribution and exhibition, FM radio, Internet businesses and television content is set to enter the broadcasting space, a company official close to the development and who did not wish to be identified said.The firm will launch two new companies—Reliance Big TV Entertainment Pvt. Ltd and Reliance Big TV News Pvt. Ltd—to launch and operate a bouquet of about 20 channels. The news broadcasting company will launch four channels: two general news channels and two business news channels, one each in Hindi and English in both genres.
The total number of M&A deals announced in February 2008 stands at 36 with a total announced value of $2.95 billion, according to global consulting firm Grant Thornton’s Dealtracker report for that month.
Apollo LogiSolutions Limited, (ALL) a subsidiary of Apollo International and Spire Group, Canada, executed a joint venture (JV) agreement for $250 million to construct and operate temperature controlled warehouses in India. The JV will operate under the name “Apollo Everest Kool Solutions”.
Indian banks and companies may have become more vulnerable to risks, especially those arising from innovative foreign exchange and interest rate hedges, over the past two years. Banks operating in India had Rs127.86 trillion ($3.16 trillion) of derivatives on their books as on 31 December 2007, according to a statement tabled on Tuesday in the Rajya Sabha by the country’s finance minister P. Chidambaram.
The Fed promised a $200 billion booster shot for ailing markets -- and Wall Street answered with its biggest bounce in more than five years..
Yields in the government bond market have been on the rise in recent times. This, coupled with the rising rupee and lower borrowing rates in overseas markets, makes it lucrative for overseas investors to look at the gilt market.
Jain Irrigation Systems Ltd saw a block deal of 2,286,793 shares, or 3.39 per cent of its equity, at Rs 635 a share on the BSE on Tuesday.
Industrial growth slipped to 5.3% in the month of January, compared to 11.6% in the same month last year as growth in all major sectors comprising manufacturing, electricity and mining declined.Industrial growth, as measured by Index of Industrial Production (IIP), has moderated to 8.7% in the first 10 months of the current fiscal, against 11.2% during the corresponding period of the previous fiscal, according to official figures released today.
The World Gold Council (WGC) will cross list its gold exchange traded fund, StreetTracks Gold Shares on the Tokyo and Hong Kong stock exchanges before September. However, WGC is not planning to launch the product in India.
Kiri Dyes and Chemicals, an Ahmedabad based manufacturer of reactive dyes and dye intermediates, has filed the Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to enter the capital market on Mar. 25, 2008, with an initial public offering (IPO) of 3.75 million equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process. The company fixed the price band of Rs 125 to Rs 150 a share. The issue will be open for subscription till Apr. 2, 2008.
The board of directors of Rain Commodities, (Q, N,C,F)* at its meeting held on Mar. 11, 2008, allotted 35,00,000 equity shares of face value of Rs 10 each to Focus India Brands (P) at price of Rs 200 each (premium of Rs 190) consequent to the conversion of 35,00,000 equity warrants into equity shares.
Crude prices rose to a record USD 109.72 per barrel. It however eased to the USD 108 mark after the liquidity injection by the Fed. Crude has touched record highs for five straight sessions.
Global conglomerate General Electric has said it will invest USD 5 billion by 2010 to tap opportunities arising out of energy deficiency in emerging markets, including India.
State-run National Mineral Development Corporation (NMDC) on Monday said it will split shares in a ratio of 1:10 and issue two bonus shares for every share held.
The outgoing chairman Mr Lassonde said that gold production has been falling by an average of 2% over the last five years while the demand from Asian countries like India and China is rising. “The rise in jewellery demand is directly proportional to the GDP growth and both India and China are growing at 9% to 10%,” he said. He indicated that these factors along with a weak dollar will determine the price of gold.
The total number of M&A deals announced in February 2008 stands at 36 with a total announced value of $2.95 billion, according to global consulting firm Grant Thornton’s Dealtracker report for that month.
Apollo LogiSolutions Limited, (ALL) a subsidiary of Apollo International and Spire Group, Canada, executed a joint venture (JV) agreement for $250 million to construct and operate temperature controlled warehouses in India. The JV will operate under the name “Apollo Everest Kool Solutions”.
Indian banks and companies may have become more vulnerable to risks, especially those arising from innovative foreign exchange and interest rate hedges, over the past two years. Banks operating in India had Rs127.86 trillion ($3.16 trillion) of derivatives on their books as on 31 December 2007, according to a statement tabled on Tuesday in the Rajya Sabha by the country’s finance minister P. Chidambaram.
The Fed promised a $200 billion booster shot for ailing markets -- and Wall Street answered with its biggest bounce in more than five years..
Yields in the government bond market have been on the rise in recent times. This, coupled with the rising rupee and lower borrowing rates in overseas markets, makes it lucrative for overseas investors to look at the gilt market.
Jain Irrigation Systems Ltd saw a block deal of 2,286,793 shares, or 3.39 per cent of its equity, at Rs 635 a share on the BSE on Tuesday.
Industrial growth slipped to 5.3% in the month of January, compared to 11.6% in the same month last year as growth in all major sectors comprising manufacturing, electricity and mining declined.Industrial growth, as measured by Index of Industrial Production (IIP), has moderated to 8.7% in the first 10 months of the current fiscal, against 11.2% during the corresponding period of the previous fiscal, according to official figures released today.
The World Gold Council (WGC) will cross list its gold exchange traded fund, StreetTracks Gold Shares on the Tokyo and Hong Kong stock exchanges before September. However, WGC is not planning to launch the product in India.
Kiri Dyes and Chemicals, an Ahmedabad based manufacturer of reactive dyes and dye intermediates, has filed the Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to enter the capital market on Mar. 25, 2008, with an initial public offering (IPO) of 3.75 million equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process. The company fixed the price band of Rs 125 to Rs 150 a share. The issue will be open for subscription till Apr. 2, 2008.
The board of directors of Rain Commodities, (Q, N,C,F)* at its meeting held on Mar. 11, 2008, allotted 35,00,000 equity shares of face value of Rs 10 each to Focus India Brands (P) at price of Rs 200 each (premium of Rs 190) consequent to the conversion of 35,00,000 equity warrants into equity shares.
Crude prices rose to a record USD 109.72 per barrel. It however eased to the USD 108 mark after the liquidity injection by the Fed. Crude has touched record highs for five straight sessions.
Global conglomerate General Electric has said it will invest USD 5 billion by 2010 to tap opportunities arising out of energy deficiency in emerging markets, including India.
State-run National Mineral Development Corporation (NMDC) on Monday said it will split shares in a ratio of 1:10 and issue two bonus shares for every share held.
The outgoing chairman Mr Lassonde said that gold production has been falling by an average of 2% over the last five years while the demand from Asian countries like India and China is rising. “The rise in jewellery demand is directly proportional to the GDP growth and both India and China are growing at 9% to 10%,” he said. He indicated that these factors along with a weak dollar will determine the price of gold.
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