Mutual funds - Upcoming Dividends - 22 March 2008

Lotus India MF declares dividend

The Lotus India mutual fund has announced the declaration of dividend under retail quarterly dividend option of Lotus India Active Income Fund. The record date for dividend will be 18 March 2008. The dividend proposed to be declared is 2.5% i.e. Re. 0.25 per unit on a face value of Rs.10 per unit. The NAV of the retail quarterly dividend option as on 13 March 2008 was Rs. 10.4507.

         

Birla Sun Life MF declares dividend

Birla Sun Life Mutual Fund has announced the declaration of dividend on the face value of Rs 10 per unit for Birla Sun Life Fixed Term Plan- Half Yearly-Series 3. The record date is set as 18 March 2008. The fund house has decided to distribute 100% of surplus available under option as on record date. The NAV for the scheme was Rs. 10.4075 as on 13 March 2008. Birla Sun Life Fixed Term Plan- Half Yearly-Series 3 is a close-ended income scheme with the objective to generate current income by investing in portfolio of fixed income securities maturing normally in line with the duration of the scheme.

         

JM Financial MF declares dividend for two schemes

JM Financial Mutual Fund has announced 19 March 2008 as the record date for the declaration of dividend under dividend option of JM Arbitrage Advantage Fund and JM Equity and Derivative Fund. The fund house has declared a dividend of 2.50% i.e. Rs 0.25 per unit on face value of Rs 10 - for JM Arbitrage Advantage Fund. It has also declared a dividend of 1.80% inclusive of dividend distribution tax i.e. Rs 0.18 per unit on face value of Rs 10 -for JM Equity and Derivative Fund.

The record date for both the scheme has been fixed as 19 March 2008. The NAV of JM Arbitrage Advantage Fund was at Rs. 10.3900 as on 13 March 2008 whereas the NAV of JM Equity and Derivative Fund were at Rs. 10.3899 as on 13 March 2008. JM Arbitrage Advantage Fund is an equity oriented interval fund with an investment objective of generating income through arbitrage opportunities emerging out of mis-pricing between the cash market and the derivatives market and through deployment of surplus cash in fixed income instruments. JM Equity and Derivative Fund is an income scheme -Interval fund. Its investment objective is to generate regular income through arbitrage opportunities.

 

LIC MF declares dividends

LIC Mutual Fund has announced 18 March 2008 as record date for declaration of dividends in three schemes: LIC Index Fund-Nifty Plan. The fund house has decided to pay dividend of 20% i.e. Rs 2.00 on the face value of Rs 10. LIC Index Fund-Nifty Plan is an open-ended index scheme. The investment objective of the fund is to provide capital growth by investing in Nifty index stocks.

 

Dividend Declared Under Birla Fixed Term Half Yearly Series-3

Birla Sun Life Mutual Fund has declared a dividend under the dividend option of Birla Fixed Term Plan Half Yearly Series 3.The quantum of the dividend would be 100 per cent of distributable surplus as on the record date. The record date for the same has been fixed as March 18, 2008.

 

Lotus India MF declares dividend

Lotus India Asset Management Company (Lotus India AMC) announced the declaration of dividend of 2.5% in the Retail - Quarterly Dividend Option of Lotus India Active Income Fund. Lotus India AMC has notified 18 March 2008 as the record date for the purpose of declaring dividend. Distribution of dividend is subject to availability and adequacy of distributable surplus. Pursuant to payment of dividend, NAV would fall to the extent of dividend payout and statutory levy, if applicable.

The dividend proposed to be declared is Re. 0.25 per unit on a face value of Rs. 10/- per unit. The NAV of the Retail - Quarterly Dividend Option as on March 13, 2008 was Rs. 10.4507. All unit holders of Retail - Quarterly Dividend Option under the Scheme, whose names appear in the records of the Registrar, Computer Age Management Services Pvt. Ltd., as at the close of business hours on March 18, 2008, will be entitled to receive the dividend.

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Mutual Fund News 22 March 2008

Birla Sun Life MF rolls out another fixed term plan

Birla Sun Life MF has rolled out a new scheme called Birla Fixed Term Plan Series AN and it is a close end debt scheme. The scheme seeks to generate current income by investing in a portfolio of fixed income securities maturing normally in line with the duration of the scheme.

The scheme will have retail plan and institutional plan with a common portfolio. Each plan under the scheme will have dividend and growth option. The dividend option shall have payout and reinvestment facility. The minimum investment amount under retail plan is Rs 5,000 and in multiple of Re 1 thereafter. The minimum investment amount under institutional plan is Rs 1 lakh and in multiple of Re 1 thereafter.

 

ICICI MF launches new FMP Series

ICICI MF has rolled out a new fund called ICICI Prudential Fixed Maturity Plan - Series 43 - 13 Months Plan A and it is a close-ended debt fund. The investment objective of the scheme is to seek to generate returns by investing in a portfolio of fixed income securities/ debt instruments normally maturing in line with the time profile of the scheme.

There are two options available under the scheme i.e. retail and institutional options. Cumulative and dividend sub-options will be available under the scheme. Dividend payout is the only facility available under dividend sub-option. Retail option shall be the default option and cumulative sub-option shall be the default sub -option. The fund will invest up to 100% in money market instruments, short term and medium term debt securities and debt instruments. The scheme will invest in debt securities which having tenure of approximately 390 days. The investment in securitised debt will be up to 50% of the net asset of the scheme. Exposure in derivatives instruments will be up to the extent of 50% of the net assets. The investment in central and state government securities will be up to 50% of the net asset of the plan. Due to its close-ended structure the scheme does not charge any entry load. There will be an exit load of 2.00% of the applicable NAV for the redemption made during the repurchase facility period.

         

DSP Merrill Lynch to raise $500 m

Kolkata: DSP Merrill Lynch Fund Managers Ltd is planning to raise $500 million through its new fund, DSP Merrill Lynch Natural Resources and New Energy Fund. The company, at present, manages assets worth around $7 billion. The NFO, an open ended equity scheme would invest in companies from the natural resources, energy and new energy sectors. 65 percent of the corpus would be invested in the Indian companies from the natural resources and the energy sector, while the rest would be invested in foreign companies through the Merrill Lynch International Investment funds which include New Energy Fund and World Energy Fund, the source said.

 

SBI MF launches new debt fund Series

SBI MF has unveiled a new fund called SBI Debt Fund Series - 13 Months Series 7 and it is a close ended debt scheme. The objective of the scheme is to provide regular income, liquidity and returns to the investors through investments in portfolio comprising of debt instruments.

The fund will invest 0%-100% in Government of India dated securities and treasury bills. The investment in securitised debt will be up to 20% of the exposure to AAA/AA+ bonds, and money market instruments.

 

Deutsche MF unveils new Fixed Term Fund Series 46

Deutsche Mutual Fund has unveiled a fund called DWS Fixed Term Fund Series 46 and it is a close-ended debt fund with maturity of 395 days from the date of allotment. The objective of the fund is to generate regular income by investing in fixed income securities and money market instruments, usually maturing in line with the time profile of the fund. The fund will invest up to 100% in domestic debt instruments including government securities and money market instruments and securitised debt. The investment in securitised debt would be up to a maximum of 100% of the net assets of the scheme. The scheme will not invest in foreign securities and foreign securitized debt. The exposure to derivatives shall be restricted to 50% of the net assets of the scheme.

 

ING MF alters offer document

ING Mutual Fund has decided that the dividend declaration frequency under the dividend option of Optimix Active Short Term Fund shall be on a fortnightly basis, subject to availability of distributable surplus. The record date for declaration of dividend will be every 1st and 16th of every month (or the immediate following business day, if 1st or 16th of the month referred above is a holiday/ non business day).

However as per the trustees' approval and internal norms, the ex-dividend NAV shall not fall below Rs 10.05 per unit on account of dividend declaration. All other terms and conditions of the offer documents remain unchanged.

 

HDFC MF Revises Additional Investment Amount in HDFC Floating Rate ST-Wholesale Plan

HDFC Mutual Fund has announced a change in the minimum additional application amount in the wholesale plan of HDFC Floating Rate Short Term Plan. Currently minimum application amount is Rs. 1 cr and minimum additional investment is Rs. 1 cr. Effective March 24, 2008 the minimum additional investment will be reduced to Re. 1.

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A Thought - Can India save the world?

Can India save the world?

Humanity is embarking on a bizarre journey into the future. Subconsciously, we all believe (or would like to believe) that we live in a rational, well-ordered universe. The reality is closer to the opposite. If this sounds unbelievable, consider the following analogy. Imagine 660 passengers boarding a ship that is sailing into unchartered waters. After boarding, all 660 retreat into their cabins. No captain or crew is taking care of the ship as a whole.

Sadly, this is a literal, not metaphorical description of how spaceship Earth is sailing into the future. Globalisation has shrunk the world. All 6.6 billion inhabitants now live in a single interdependent universe. From financial crises to health epidemics, from borderless terrorism to global warming, we are moving into a world where more global governance (not global government) is needed to manage the growing interdependence. Instead, precisely when more is needed, humanity is either shrinking or weakening global governance. This essay will explain why. It will also argue that perhaps only one country can solve this crisis — India.

Global governance is shrinking because the West, which spun a rich web of multilateral institutions and norms after World War II, is losing faith in multilateralism. The Western powers were happy to be custodians of the main rules and processes of the global order because they were convinced that a more rules-bound universe, accompanied by greater trade liberalisation, would benefit the Western economies the most since they had the world's most competitive economies. This conviction of economic superiority led the West to bring down trade barriers. They had no doubt that the West would win on an open economic playing field.

John F Kennedy illustrated this confidence when he said in 1962, "A more liberal trade policy will in general benefit our most efficient and expanding industries." The boundless optimism of Kennedy has been replaced by the boundless pessimism of Lou Dobbs, who is convinced that American workers cannot compete with Chinese or Indian workers. Sadly, Lou Dobbs is not an isolated phenomenon. Both Hillary Clinton and Barack Obama have joined the race to the bottom by declaring that each is more protectionist than the other. This reflects the new psyche of the American population. Europe is not much better.

If both America and Europe lose confidence in their ability to compete, how can they remain custodians of the rules that ensure fairness and equity? To be fair, humanity should thank both first for creating the 1945 rules-based order at the end of World War II. To understand how visionary the Western founding fathers of this order were, just contrast what they did after World War II with what was done after World War I. After World War I, the world order forced Germany and Japan to go to war as they tried to expand their political and economic space. After World War II, both Germany and Japan significantly expanded their political and economic space without going to war.

If humanity can sustain this 1945 rules-based order, this will enable both China and India to emerge as new great powers peacefully, just as Germany and Japan did. But there are differences now. Both Germany and Japan emerged when America and Europe (including Germany) believed that an open global order would naturally benefit the West. Today, China and India are emerging at a time when the West is losing faith in an open global order. This growing lack of faith explains the strange behaviour of both America and Europe towards global governance.

America has taken cynicism towards multilateralism to a whole new level. Just look at the issue of America and Iran. Every few months, America goes back to the United Nations Security Council (UNSC) to get a resolution against Iran. It hopes to use the legitimacy of the UN to send a message to Iran that the world disapproves of its behaviour. America is right. The UN does enjoy this legitimacy in the eyes of the world's population, despite the many flaws of the UN. But the world has also become sceptical of America's efforts to use the UN because America had violated the spirit, if not the letter, of the UN's principles by going to war in Iraq without an enabling UNSC resolution. Most international lawyers and Kofi Annan believe that the American invasion of Iraq was illegal. Can a violator of UN principles become an enforcer? Can a thief become a judge?

In an act of even greater cynicism, America sent an Ambassador to the UN, John Bolton, who believed that his mission was not to strengthen but to weaken the UN. He famously declared that "if the UN building lost ten stories, it wouldn't make a bit of difference".

A favourite American expression is that there is no such thing as a free lunch. There is also no such thing as cost-free cynicism. The rampant American cynicism towards the UN in particular and multilateralism in general could now dangerously erode and destroy the 1945 rules-based order when the world has never needed it more. Both China and India will be the biggest losers if this happens. Its destruction could well prevent and derail their peaceful re-emergence of both these great powers.

It is as difficult to explain the critical importance of multilateralism to a lay audience as it is to illustrate the importance of oxygen. We know that without oxygen we would suffocate but we only truly understand this if we are thrown into a room without oxygen. By then, it may be too late. Similarly, one reason why the world is a reasonably stable place is because a sea of norms has been created in all fields to manage growing global interdependence. This sea of norms is a valuable heritage that humanity has developed.

But no norms can survive on their own. Neither would a sea of norms. Norms need custodianship. With America and Europe losing faith in multilateral norms, the responsibility should pass on to the new rising powers, China and India, to maintain these norms. Indeed, both China and India want to preserve them, but only India can provide the leadership to do so. China cannot, for a simple geopolitical reason. The rise of India is not generating alarm in Washington DC. The rise of China is. Hence, China, in an effort to assuage American concerns, is deliberately trying to avoid assuming any kind of global leadership. When the Cancun trade meetings failed, Indian Trade and Industry Minister Kamal Nath could confidently explain India's position and challenge the American and European perspectives. The Chinese Trade Minister said nothing.

By default, the weight of global leadership may fall on India's shoulders. Fortunately, India is well-qualified to provide such leadership. Its credentials as the world's largest democracy; its open, tolerant and inclusive culture; its unique geopolitical and cultural position as a bridge between East and West provides it a unique opportunity to provide the leadership for forging new forms of global governance that spaceship Earth desperately needs as it sails into the future.

 

Kishore Mahbubani is Dean, Lee Kuan Yew School of Public Policy at the National University of Singapore. He is the author of The New Asian Hemisphere: The Irresistible Shift of Global Power to the East.

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International Markets - Asian Stocks ended higher in holiday thinned trading

Asian Stocks ended higher in holiday thinned trading - 21^st March 2008

Asian stocks ended mostly higher, although gains were capped in holiday-thinned trading that saw financial shares such as Mitsubishi UFJ Financial Group and Kookmin Bank leading the action in Tokyo and Seoul, while shares in Taipei also moved higher in the final trading session before weekend presidential elections.

Tokyo's Nikkei 225 Average ended 1.8% higher at 12,482.57. The market was closed Thursday for a public holiday. The Topix index added 2% to close at 1,220.04. Seoul's Korea Composite Stock Index, or Kospi, was up 1.4% at 1,645.69.

Shanghai's Composite Index fell 0.2% to 3,982.80, reversing earlier gains.

In Taiwan weighted index added 2.3% to 8,524.99, notching its biggest weekly advance this year. Friday's session is the final day of trade before presidential elections Saturday. The two main candidates have pledged to improve political relations with China and open trade and investment links.

In other regional action, Thailand's SET index added 0.5% and Malaysia's KLSE index was little changed, rising 0.02%.

Markets in Australia, Hong Kong, New Zealand, India, Indonesia, Philippines and Singapore are closed for public holidays.

Electronic exchanges dealing in crude oil futures were closed Friday. The May contract for light crude oil, the front-month contact from Thursday, ended down 70 cents, or 0.7% at $101.84 a barrel on the New York Mercantile Exchange.

In currency trading Friday, the U.S. dollar fetched 99.63 yen, compared to 99.30 yen in late trading in New York.

The advance in Asian shares follows a stronger session for U.S. markets Thursday that lifted indexes to their first-in-four broad-based weekly gain.

Continuing a recent trend of triple-digit swings in either direction, the Dow Jones Industrial Average rallied 261.66 points, or almost 2.2%, to 12,361.32, giving it a 3.5% rise from the prior week's close. The U.S. stock market is closed Friday.

The S&P 500 Index gained 31.09 points, or 2.4%, to 1,329.51, placing the index 3.3% ahead of where it stood at last Friday's close.

The tech-heavy Nasdaq Composite Index advanced 48.15 points, or 2.2%, to 2,258.11, up 2.1% from last week's close.

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International Markets - Correction in commodity prices hits Asian Markets hard

Correction in commodity prices hits Asian Markets hard - 20 Mar 2008

Asian markets reversed gains Thursday, hit by a sharp pullback in commodity prices that dragged down shares of resource issues such as BHP Billiton in Sydney, Zhongjin Gold Co. in Shanghai and Korea Zinc Co. in Seoul.

In highly volatile trading in China, the benchmark Shanghai Composite, which tracks both the Yuan-denominated A shares and foreign currency-denominated B shares, tumbled as much as 6.5% at one point during the session, before recovering. At the end of the session the index recovered from the earlier losses setting up a gain of 1.13% to 3,804.05, a surge of nearly 290 points from the day's low at 3,516.33, a level it hasn't seen since April.

The volatility in the Shanghai composite spread weakness in Hong Kong, where the Hang Seng China Enterprises index slumped 5.2% to 10,842.29. The benchmark Hang Seng Index lost 3.5% to 21,108.22.

Worries about continued monetary tightening by the Chinese central bank also weighed on market sentiment. The fear remained despite the People Bank of China's decision on Tuesday to raise banks' credit requirement by a half-point to a record 15.5% amid soaring consumer prices.

Australia's S&P/ASX 200 sank 3.1% to 5,182.40.

Stock markets in Japan, India, Indonesia, Malaysia, Pakistan and Philippines were closed for a holiday Thursday.

Elsewhere in the region, Singapore's Straits Times Index dropped 0.6% to 2,816.07. The Taiwan's weighted index gain 1.93% to 8,337.62 on hopes of better ties with China after the country elects a new president Saturday, and South Korea's Kospi inched up 0.1% to 1,623.39, with both rebounding from early losses, and South Korea's Kospi expanded by 0.07% to 1,623.39.

April gold futures, which plunged $59, or 5.9%, to $945.30 an ounce on the Nymex overnight, fell as low as $915 in electronic trading. The contract was recently down $8.7 to $936.6 an ounce.

May crude-oil futures slipped 64 cents to $101.90 a barrel in electronic trading, after sinking $5.96 to $102.54 a barrel on the New York Mercantile Exchange. April futures, which expired Wednesday, dropped $4.94 to $104.48 a barrel.

The pullback overnight marked the worst one-day drop in nearly two years for gold and the biggest daily loss for crude oil since early 1991.

The U.S. currency, which shares an inverse relationship with commodities as their prices are quoted in dollar terms, continued to strengthen. The greenback recently bought 99.18 yen, compared with 99.09 yen late in New York and 98.61 yen in London Wednesday. The euro was trading at $1.5552.

European stocks dropped for a second day, with commodity producers continuing to feel the heat from the unwinding of metals and energy prices and with credit dropping 5.5% after warning of a first-quarter loss. The U.K. FTSE 100 fell 0.9% to 5,494.70, the German DAX 30 fell 0.6% to 6,320.36 and the French CAC 40 dropped 1.1% to 4,404.88.

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International Markets - Good mood fizzles away in US Market

Good mood fizzles away in US Market - 20 Mar 2008

Just a day after US Market posted its strongest gains in five years time, US Market was back in its pessimistic mood today, Wednesday, 19 March, 2008. A strong sell-off in commodities was perhaps the main reason behind todays loss. All the three indices gave up more than half of yesterdays gains. All the ten sectors ended in the red today.

The day started with some good news in bits and pieces, mainly related to Freddie Mac and Fannie Mae. The Office of Federal Housing Enterprise Oversight is allowing the two government sponsored enterprises to purchase more home loans. It is expected that the initiative will provide up to $200 billion in immediate liquidity to the mortgage-backed security market. This gave market a moderate boost in the pre lunch hours.

But in the final couple of hours of trading, weakness in commodity market took much of the steam out of the market. Gold, crude oil and other metals witnessed drastic slide in prices as dollar strengthened a bit after yesterdays rate cut by Federal Reserve.

The Dow Jones industrial Average ended the day with a loss of 293 points at 12,099. The Nasdaq Composite Index, finished lower by 58 points at 2,209. S&P 500 finished lower by 32 points at 1,298.

Twenty-nine out of thirty Dow stocks ended in the red green today. Chevron and Exxon Mobil led the team of Dow decliners. Coco Cola was the sole Dow winner today.

Yesterday, the Federal Open Market Committee (FOMC) announced it is cutting the fed funds rate and discount rates by 75 basis points. That left the fed funds rate at 2.25% and the discount rate at 2.50%. Markets immediate response was negative, although the indices still held strong gains.

Among other major stories of the day, Morgan Stanley came out with earnings report topping expectations. The stock closed 7% higher today.

Precious metals closed considerably down today. Prices fell after Federal Reserve decided to cut overnight lending rate by 75 bps to 2.25% yesterday. It was golds largest one day decline in almost two years. After hovering above $1,000 mark since the past few days, Comex Gold for April delivery fell $59 (5.9%) to close at $945.3 ounce on the New York Mercantile Exchange. Last Monday, prices skyrocketed to a high of $1,034/ounce. But since yesterday, after Feds interest rate cut decision was out, prices started tumbling.

Crude prices fell the most in almost seven months today after prices slipped by almost $5/barrel today. The daily drop in price was perhaps the most in seventeen years. Prices fell today after the Federal Reserve decided to cut overnight lending rates by 75 bps to bring it down to 2.25% to strengthen the economy as against traders expectation of 100 bps. Dollar strengthened today after yesterdays rate cut. Prices also softened after Energy Department reported rise in crude inventories and drop in crude demand for last week.

Crude-oil futures for light sweet crude for April delivery today closed at $104.48/barrel (lower by $4.94/barrel or 4.5%) on the New York Mercantile Exchange. Prices earlier dropped to $102.95. Crude prices are 85% higher on a yearly basis. The April contract expired today.

Volume on the New York Stock Exchange topped 5.3 billion, with declining stocks edging ahead of those advancing more than 2 to 1. On the Nasdaq, 2.3 billion shares traded hands, and declining issues topped those advancing, also by a more than 2-to-1 ratio.

Tomorrow, FedEx along with a few others will post its latest earnings result before the opening bell. Other than that, Weekly Jobless Claims are due prior to tomorrow's start. February's Leading Indicators and March's Philadelphia Fed Survey are both scheduled for release following opening bell. In addition, tomorrow is a quadruple witching date, which means contracts for index futures, index options, stock options, and single stock futures expire tomorrow.

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International Markets - Fed moves drive Asian equities up

Fed moves drive Asian equities up - 19 Mar 2008

Stocks rallied across the board in Asia Wednesday, relieved by a aggressive rate cut of 75 basis points by the Federal Reserve and better-than-expected profit reports from U.S. investment banks.Shares in the battered financial sector rose, led by Mitsubishi UFJ Financial Group in Tokyo, Australia & New Zealand Banking Group in Sydney and Industrial & Commercial Bank of China in Hong Kong.

Shanghai-listed stocks snapped a five-day losing streak, shrugging off the central bank's decision yesterday to raise commercial banks' credit requirements by half a percentage point to a record high of 15.5%. China's Shanghai Composite jumped 3.6% to 3,799.01, relieved that the much-anticipated move had been announced. Shares in Shanghai as well as China-related shares in Hong Kong had suffered steep losses in the past few days on worries the People's Bank of China would hike banks' reserve requirements as well as interest rates to control rising inflation.

Japan's Nikkei 225 Average climbed 2.2% to 12,222.31 and the broader Topix index gained 2.5% at 1,192.64. In Hong Kong, the Hang Seng Index advanced 2.6% to 21,942 and the Hang Seng China Enterprises Index, or H share index, soared 4.3% to 11,551.61.

Elsewhere in the region, Australia's S&P/ASX 200 soared 3.5% to 5,262.90, New Zealand's NZX 50 index added 1.4% at 3,467.26, South Korea's Kospi climbed 2.2% to 1,622.94, Taiwan's Weighted index rose 1.8% to 8,204.80 and Singapore's Straits Times index advanced 1.7% to 2,880.38.

In Asian currency trading, the U.S. dollar was quoted at 99.50 yen, compared with 99.72 yen in New York late Tuesday.

Meanwhile, Crude oil for April delivery fell $1.02 to $108.40 a barrel in electronic trading, after closing up $3.74 at $109.42 a barrel on the New York Mercantile Exchange.

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International Markets - Broker earnings and Fed decision fuel rally at US Market

Broker earnings and Fed decision fuel rally at US Market - 19 Mar 2008

Better than expected earning reports from a couple of broker firms and Federal Reserves decision to cut fed fund rate by another 75 bps to 2.25% fuelled a strong rally in the US Market today, Tuesday, 18 March, 2008. All ten of the major economic sectors finished in positive territory. Financials posted the most impressive gain.

Helping to lift the market since the very morning was better than expected earnings reports from Lehman Brothers and Goldman Sachs. Both the firms posted dismal results compared to last year, but stellar results compared to expectations. After this, the market turned its full attention to the 2:15 ET FOMC announcement.

At 2.15 pm E.T, the Federal Open Market Committee (FOMC) announced it is cutting the fed funds rate and discount rates by 75 basis points. That left the fed funds rate at 2.25% and the discount rate at 2.50%. Markets immediate response was negative, although the indices still held strong gains.

Dow gave up 100 points immediately after Feds announcement. That was mainly because market was looking for a 10 bps cut. Anyway, market once again picked up momentum in the final hour of trading. The Dow Jones industrial Average ended the day with a gain of 420 points at 12,392. The Nasdaq Composite Index, finished higher by 91 points at 2,268. S&P 500 finished higher by 54 points at 1,330.

The Fed cited slowing growth in consumer spending, and a softened labor market. The statement also pointed out the continued strains in the financial markets. The Fed said inflation has been elevated and some indicators of inflation have increased.

All of thirty Dow stocks ended in the green today led by JP Morgan, IBM, AIG, Caterpillar and Exxon Mobil. Off the Dow, Goldman Sachs and Lehman Brothers jumped by 11% and 32% respectively.

Among economic data, February Producer Price Index (PPI) excluding food & energy rose 0.5% month-over-month, which was more than the expected rise of 0.2%. PPI came in at 0.3%, which was better than the expected rise of 0.4% thanks to a slip in food prices.

Also, the Commerce Department reported that February housing starts came in at an annualized rate of 1.065 million, which beat the expected reading of 995,000. However, building permits were 978,000, which missed the expected reading of 1.020 million.

All Indian ADRs ended in green today. HDFC Bank and VSNL were the two topmost gainers, each gaining more than 12%. VSNL was the other top gainer gaining more than 25%.

Crude prices rose by more than $4 today. Prices rose after the Federal Reserve decided to cut overnight lending rates by 75 bps to bring it down to 2.25% to strengthen the economy. Dollar continued to remain under pressure today because of this. Yesterday, crude suffered the biggest daily loss for crude in 17 years due to credit market concerns. Crude-oil futures for light sweet crude for April delivery today closed at $109.42/barrel (higher by $3.74/barrel or 3.5%) on the New York Mercantile Exchange. They earlier dropped to $108 before Feds move. Crude prices are 92% higher on a yearly basis.

Volume on the New York Stock Exchange surpassed 1.9 billion shares, and for every stock on the decline seven were on the rise. On the Nasdaq, more than 1.1 billion shares were exchanged and advancing stocks outran those declining 4 to 1.

Tomorrow, Morgan Stanley will post its latest earnings result. Other than that, weekly crude inventory report from the Department of Energy is expected at 10:30 AM ET.

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International Markets - European markets recoup as Asian Markets end on a mix note

European markets recoup as Asian Markets end on a mix note - 18 Mar 2008

European shares bounce back on Tuesday morning behind gains for the financial sector as investors temporarily shrugged off fears about asset write-downs to focus on an expected sharp cut in U.S. interest rates.

Of national indexes, the U.K. FTSE 100 index rose 1.7% to 5,505.40, the German DAX 30 index climbed 1.6% to 6,280.60 and the French CAC-40 index jumped 1.3% to 4,487.88.

The gold prices stayed just under $1,000 an ounce while crude prices tracked a bit higher in the early European session, up 36 cents to $106.04 a barrel.

Looking at the economic data release today we have a consumer price index from United Kingdom accompanied with Retail Price Index. The Bank of Canada will also declare its core consumer price index for February. The evening is schedule to release some of the most awaited data for the month from the United States. It includes Building permits and National housing starts. However the focus of the markets will be on the wholesale inflation i.e. the producer price index followed by the Fed interest rate decision.

The Asian markets were remain mixed, with Shanghai-listed stocks extending losses into the fifth straight day on worries of continued monetary tightening by the central bank, and forcing a retreat for China-related shares in Hong Kong. But Japanese shares bucked the trend to end the morning session higher on bargain buying in beaten-down financial stocks such as Mitsubishi UFJ Financial Group. Australian and South Korean stocks were unsettled by losses for resource stocks after a pullback in crude oil and metal prices.

China's Shanghai Composite fell 3.9% to 3,668.89, on worries the central bank may announce measures to rein in inflation at the end of the National Party Congress meeting Tuesday. China's Premier Wen Jiabao promised to take forceful steps to damp inflation at an 11-year high, a sign that overheating remains the government's main concern even as financial-market turmoil threatens global growth.

In Hong Kong, the Hang Seng Index recovered with a loss of 1.4% to 21,384.61, after dropping below the 21,000-point level for the first time since August. The Hang Seng China Enterprises Index dropped 4.1% to 10,580.18, as the weakness in Shanghai spread.

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International Markets - Asian indices end mixed after yesterdays mayhem

Asian indices end mixed after yesterdays mayhem - 18 Mar 2008

The Asian markets mostly ended mixed today, after an across the board carnage yesterday, though, barring Japan, most of the other indices ended mixed. The Japanese indices recouped in the end while The Shanghai-listed stocks extended losses into the fifth straight day on worries of continued monetary tightening by the central bank, and forcing a retreat for China-related shares in Hong Kong.

Japanese shares bucked the trend to end the higher on bargain buying in beaten-down financial stocks such as Mitsubishi UFJ Financial Group. Australian and South Korean stocks were also unsettled by losses for resource stocks after a pullback in crude oil and metal prices.

China's Shanghai Composite fell 3.9% to 3,668.89, on worries the central bank may announce measures to rein in inflation at the end of the National Party Congress meeting Tuesday. China's Premier Wen Jiabao promised to take forceful steps to damp inflation at an 11-year high, a sign that overheating remains the government's main concern even as financial-market turmoil threatens global growth.

In Hong Kong, the Hang Seng Index recovered from its days lows and closed with a loss of 1.4% to 21,384.61, after dropping below the 21,000-point level for the first time since August. The Hang Seng China Enterprises Index dropped 4.1% to 10,580.18, as the weakness in Shanghai spread.

In Tokyo, the Nikkei 225 Average ended 1.5% higher at 11,964.16, after sinking 3.7% in the previous session. The broader Topix index added 1% at 1,160.67.

Australia's S&P/ASX 200 slipped 0.2% to 5,163.80. According to the minutes of the Reserve Bank of Australia's March 4 meeting the higher setting of the cash rate would leave adequate flexibility to respond as necessary over the months ahead to new information about prospects for economic activity and inflation, indicating that the bank hold off any further rate hike and even leaves the door open to monetary easing.

South Korea's Kospi wavered between positive and negative zones gaining 0.9% to 1,588.75.

Elsewhere, New Zealand's NZX 50 index slipped 0.3% to 3,418.63 Singapore's Straits Times Index gained 1.4% to 2,831.58 and Taiwan's weighted index scale up 0.4% to 8,057.82.

Meanwhile, the European shares bounced back on Tuesday morning behind gains for the financial sector as investors temporarily shrugged off fears about asset write-downs to focus on an expected sharp cut in U.S. interest rates.

Of national indexes, the U.K. FTSE 100 index rose 1.7% to 5,505.40, the German DAX 30 index climbed 1.6% to 6,280.60 and the French CAC-40 index jumped 1.3% to 4,487.88.

The gold prices stayed just under $1,000 an ounce while crude prices tracked a bit higher in the early European session, up 36 cents to $106.04 a barrel.

Looking at the economic data releases today, we have the consumer price index from United Kingdom accompanied with Retail Price Index. The Bank of Canada will also declare its core consumer price index for February. The evening is schedule to release some of the most awaited data for the month from the United States. It includes Building permits and National housing starts. However the focus of the markets will be on the wholesale inflation i.e. the producer price index followed by the Fed interest rate decision.

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Indian Markets on 19th March 2008 - Markets sell-off from the highs of the day.

Markets sell-off from the highs of the day. The markets opened on a strong note on the back of the Fed announcement of a 75 basis points cut in its key Fed Funds Rate to 2.25%. However, Indian markets could not hold on to the early morning gains and gradually slided down to close with decent gains. While the Sensex was up 161.37 points or 1.09% at 14994.83, the Nifty was up 40.95 points or 0.90% to close at 4573.95. The broadmarket indices underperformed the benchmark indices as the BSE Midcap and Smallcap index lost 1.16% and 1.94% respectively. The market breadth was negative, as A/D ratio was 1:2.5 on the BSE. NSE cash turnover was Rs. 13948.35cr vs Rs.15170.87cr yesterday.

Sectorally, barring the BSE Power, Realty and Consumer Durables indices, all the sectoral indices ended higher. The BSE IT index was the star performer as it surged in excess of 2%. Gainers from the BSE-30 included Satyam, Tata Motors, Wipro and M&M. The top losers were Hindalco, HUL, DLF and Rel Energy.

The bears continue to have a hold on the market as the positive global cues failed to sustain the markets at higher levels. We continue with our strategy of going slow on positional long term investments till we see signs of a confirmed sustainable uptrend. Short term trading positions can be built to take advantage of any short term swings.

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Indian Markets on 18th March 2008 - Markets end on a flat note after a volatile session

Markets end on a flat note after a volatile session. The markets traded in a volatile fashion during the day. At one

Markets end on a flat note after a volatile session The markets traded in a volatile fashion during the day. At one point the Sensex was up more than 300 points but then it witnessed selling pressure and ended on a flat note. While the Sensex ended 23.97 points or 0.16% higher at 14833.46, the Nifty was up 29.9 points or 0.66% to close at 4533.0. The broadmarket indices underperformed the benchmark indices as the BSE Midcap and Smallcap indices lost 1.48% and 2.09% respectively. The market breadth was negative as A/D ratio was 1:2.5 on the BSE. NSE cash turnover was Rs.15,170.87crs vs Rs.12,925.87crs. yesterday.

Sectorally, it was a mixed bag. The BSE Capital Goods and Realty indices posted decent gains, in excess of 1%. The BSE Metal Index closed down more than 2%. Gainers from the BSE-30 included DLF, HUL, Ranbaxy Labs and TCS. The top losers were Jaiprakash Associates, Tata Steel, SBI and Hindalco.

While the trend continues to remain undoubtedly down, with the Nifty trading near the Jan 08 lows of 4448.5, there could be a possibility of a pullback rally emerging. We nevertheless continue with our strategy of going slow on positional long term investments till we see signs of a confirmed sustainable uptrend. Short term trading positions can be built to take advantage of any short term swings.

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Indian Markets on 17th March 2008 - Markets remain under the influence of bears

Markets remain under the influence of bears The markets opened with a downgap this morning on the back of weak global

Markets remain under the influence of bears The markets opened with a downgap this morning on the back of weak global cues and continued to drift lower through the day. While the Sensex was down 951.03 points or 6.03% at 14809.49, the Nifty was down 242.70 points or 5.11% to close at 4503.10. The broad market indices underperformed the benchmark indices as the BSE Midcap and Smallcap indices closed 6.97% and 6.90% lower respectively. The market breadth was negative, as A/D ratio was 1:9 on the BSE. NSE cash turnover was Rs.12,925.87crs Vs. Rs.13587.88cr on Friday.

Sectorally, it was a sea of red. The BSE Bankex and Consumer Durables indices lost in excess of 9% followed by the BSE Metal and Realty indices that lost more than 7%. There were no gainers in the BSE-30 pack. The top losers included ICICI Bank, Jaiprakash Associates, HDFC, Hindalco and Rel Energy.

Markets seems to be more under the influence of fear rather than intense selling pressure. While the trend continues to remain undoubtedly down, with the Nifty approaching the Jan lows of 4448.5, there could be a possibility of a pullback rally emerging. We nevertheless continue with our strategy of going slow on positional long term investments till we see signs of a confirmed sustainable uptrend. Short term trading positions can be built to take advantage of any short term swings.

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Commodity News 22nd March 2008

Instant coffee exports rise by 5.5% in Jan-Feb

Bangalore: Instant coffee exports for the first-two months of 2008 has gone up by 5.48 per cent at 15,125 tonnes compared with 14,338 tonnes a year ago. Instant coffee provisional re-exports touched 6,868 tonnes as against 4,758 tonnes in the same period last year, according to Coffee Board statistics. Robusta coffee is used extensively in the preparation of instant coffee. Russian Federation and other East European countries are major buyers of instant coffee from India. During January and February, nearly 8,000 tonnes were exported to these countries. Tata Coffee has a significant portion of its revenues coming from these markets through instant coffee sales. As of March 13, the total coffee exports stood at 49,676 tonnes, of which Arabica Parchment constituted 10,728 tonnes (last year 7,834 tonnes), Arabica Cherry 2,771 tonnes (3,882 tonnes), Robusta Parchment 2,656 tonnes (3007 tonnes) and Robusta Cherry 18,396 tonnes (21,514 tonnes). According to coffee exporters, domestic prices have appreciated by 20-25 per cent in the last two months. Ecom Gill Coffee Trading, Allana Sons and Hindustan Unilever (HUL) are active on the exports front. In rupee terms, the country's coffee exports grew 21.38 per cent to Rs 498.68 crore in 2008 as against Rs 410.82 crore in 2007. In dollar terms, it is 25.12 per cent higher at $121.82 million in 2008 as against $97.36 million in 2007. Italy continues to top the list of importing countries with 11,094.9 tonnes (Arabica 2,981.8 tonnes and Robusta 8,113.1 tonnes), followed by Russian Federation 5,771 tonnes (245.6 and 5,525.4 ), Germany 3,777.5 tonnes (2,702.5 and 1,075 ), Belgium 3,487.3 tonnes (1,724.7 and 1,762.6 ) and Finland 2,388.6 (nil and 2,388.6).

 

Rubber sees steady trend

Kottayam: Spot rubber finished steady on March 17. There were no active sellers or purchasers in the main marketing centres to set a specific trend and most of the traders seemed to be falling in to a holyday mood with only a few more days to Easter. RSS 4 closed unchanged at Rs 105 and Rs 105. The grade closed better by 48 paise at Rs 113.96 (113.48 ) a kg at Bangkok. On NMCE, the April futures fell to Rs 105.20 (106.08), May to Rs 107.50 (108.27), June to Rs 109.07 (109.87) and July futures to Rs 110.90 ( 111) per kg for RSS 4.The open interest was 4,180 (4,340) tonnes with 2,394 (2,444) tonnes in April, 1,059 (1,032) tonnes in May, 686 (660) tonnes in June and 41 tonnes in July. The volumes amounted 877 (660) tonnes. Spot prices were (Rs/kg): RSS-4: 105 (105); RSS-5: 102.50 (102.50); ungraded: 100 (100); ISNR 20: 102 (102) and latex 60 per cent: 71.50 (71.50).

 

Jeera futures witnesses 3-month low on fresh arrivals

Mumbai: On March 17, jeera futures witnessed their lowest so far in 2008, falling below Rs 9,000 a quintal. The arrivals, which a fortnight back were hovering around 10,000-12,000 bags (each of 55 kg), were reported at 20,000 bags on Monday in Unjha (main delivery centre) in Gujarat. Supply of fresh jeera is expected to continue for another month. On the spot front, the last one week has seen prices of jeera dropping from Rs 9,500-10,000 a quintal to Rs 8,750-9,250 a quintal. The April contract on the National Commodity and Derivatives Exchange (Ncdex) has already broken the crucial support at Rs 8,850 a quintal. On NCDEX, the April jeera futures closed at Rs 8,664 a quintal, down 4 per cent from its previous close of Rs 9,025 a quintal.

 

Edible oil imports go up by 186-pc

Mumbai: Inspite of almost double increase in prices of edible oils globally, imports in February went up a huge 186 per cent year-on-year riding on lower customs duties on palm and soy oils and base import prices which have remained unchanged for over a year. During February, the import of edible oils touched 430,992 tonnes as compared with 150,927 tonnes in February last year. Conversely, imports of non-edible oils shot up by 342 per cent at 84,237 tonnes as against last year's 19,056 tonnes. Forty per cent of the country's domestic requirement is met via by imports. With increasing salaries and high disposable incomes, the consumption has witnessed a surge in demand of vegetable oils. Domestic prices of edible oil have increased 10-28 per cent since January, 2008. Refined soybean oil, which was quoted at Rs 54,000 a tonne on 2 January, is available at Rs 69,000 a tonne, up 27.78 per cent. Similarly, prices of groundnut oil have jumped 13.08 per cent, rapeseed (10.34 per cent), RBD Palmolene (25.10 per cent) and sunflower oil (19.69 per cent). Since November, 2007, the imports of vegetable oils (edible and non-edible together) have gone up by 40 per cent. This is despite the fact that the peak domestic crushing season is in progress.

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IPO News 22 March 2008 - Titagon Wagons Ltd

Titagon Wagons Ltd is coming out with IPO on March 24.

Titagarh Wagon, the private sector railway wagon manufacturer is entering the capital market with its IPO of 23,83,768 shares of Rs10 for cash at a price to be determined through 100% book building proess. The price band for the issue has been between Rs540 and Rs610 per share. The issue opens on March 24, 2008 and closes on March 27, 2008. The lead manager to the issue is Kotak Mahindra Capital and the co-book running lead manager is JM Financial Consultants.

The issue consists of net issue of 23,68,768 shares and a reservation of upto 15,000 shares for subscription by eligible employees. At least 60% of the net issue will be allocated on a proportionate basis to qualified institutional buyer, 5% of the QIB portion to mutual funds and the rest will be allocated to the QIB bidders.

The company plans to utilize the proceeds for various purposes like modernising and expanding the existing facilities at Titagarh and Uttarpara units, setting up an EMU manufacturing facility at Uttarpara unit, , setting up an axle machining and wheelset assembly facility at Uttarpara unit, Brand building exercise, constructing a corporate office and a design cum research and development office, general corporate purposes and strategic and acquisition or investments.

Titagarh Wagons manufactures special purpose wagons, shelters and other engineering equipments. The company also manufactures and markets special purpose wagons to suit the varying needs such as Merry Go Round wagons and special wagons for the Indian Defence establishment. The Company has two manufacturing facilities located at Titagarh and Uttarpara in West Bengal.

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Market News 22 March 2008

Aban Offshore receives letter of intent

Aban Offshore has announced that letter of intent has been received for the deployment of the newly built jack-up rig Aban VIII in the Middle East for a 18 wells plus 4 optional wells programme. The estimated revenues from the contract is approximately US$ 300 million. The deployment is to commence following delivery of the rig, which is expected in the second quarter of 2008.

The company made this announcement during the trading hours today, 19 March 2008.

 

Hindustan Unilever allots equity shares

The committee of Hindustan Unilever has allotted 59,000 equity shares of Re 1 each under ESOP.

Therefore, the paid-up capital of the company has increased to 217,79,83,566 shares & the issued capital has increased to 220,82,19,338 shares.

These shares were allotted at the committee meeting held on 19 March 2008.

 

SSI' shareholders approves scheme of amalgamation

The shareholders of SSI has approved the scheme of amalgamation between PVP Ventures and SSI.

This was approved at the shareholders meeting held on 15 March 2008.

 

IL&FS Investment Managers to issue bonus shares

The board meeting of IL&FS Investment Managers will be held on 01 April 2008 to consider the issue of bonus shares.

The company made this announcement during the trading hours today, 19 March 2008.

 

JIK Industries allots equity shares

The board of JIK Industries has allotted 1,32,000 equity shares of Rs 10 each at a price of Rs 13.80 to non-promoters.

These shares were allotted at the board meeting held on 18 March 2008.

 

Satyam Computer Services allots equity shares

The committee of Satyam Computer Services has allotted 20,624 equity shares under stock option plans of the company.

Consequent to the above allotment, the paid up share capital of the company has gone up from 670,365,511 equity shares of Rs 2 each aggregating Rs 1,340,731,022 to 670,386,135 equity shares of Rs 2 each aggregating Rs 1,340,772,270.

These shares were allotted by the committee through circular resolution on 18 March 2008.

 

Binani Industries allots warrants

The committee of Binani Industries has allotted 50,00,000 warrants convertible into equal number of equity shares at a price of Rs 253.15 per share to K B Vyapar, a promoter entity.

These warrants were allotted at the committee meeting held on 18 March 2008.

 

Aditya Birla Nuvo to allot equity shares

The committee of Aditya Birla Nuvo have approved the allotment of 20 equity shares against conversion of zero interest secured fully convertible debentures (FCDs).

The committee have approved the allotment 20 equity shares against detachable warrants (warrants).

The committee have approved the allotment of 20 bonus shares against zero interest secured fully convertible debentures and detachable warrants .

Further, the committee have approved the allotment of 1222 equity shares against rights shares issued in 2006-07 which were kept in abeyance.

The company made this announcement during the trading hours today, 18 March 2008.

 

Aditya Birla Nuvo to consider dividend

The board meeting of Aditya Birla Nuvo will be held on 30 April 2008 to approve annual accounts of the company for the year ended on 31 March 2008 and recommend payment of dividend on equity shares for the year ended on 31 March 2008.

The company made this announcement during the trading hours today, 18 March 2008.

 

AXIS Bank to allot equity shares

The committee meeting of AXIS Bank will be held on 19 March 2008 to consider the allotment of equity shares under ESOP.

The company made this announcement during the trading hours today, 18 March 2008.

 

Ranbaxy Laboratories to announce financial results

The board meeting of Ranbaxy Laboratories will be held on 28 March 2008 for consideration of audited accounts for the year ended 31 December 2007 and recommendation of final dividend on equity shares for the year ended 31 December 2007.

The company made this announcement during the trading hours today, 18 March 2008.

 

Neha International to increase authroized capital

The shareholders of Neha International have approved to increase the authroized capital from Rs 20 crore to Rs 30 crore.

The shareholders have approved raising of money for an aggregate sum of up to US$ 25.00 million through FCCBs / GDRs / ADRs.

Further, the shareholders have approved to increase the borrowing powers of the board upto Rs 125 crore.

This was approved at the extraordinary general meeting held on 17 March 2008.

 

Networth Stock Broking to issue equity shares

The committee of Networth Stock Broking has decided to issue 1,63,305 equity shares of Rs 10 each at par to its employees under Networth Stock Broking - ESOP 2005.

This was decided at the committee meeting held on 18 March 2008.

 

Nakoda Textile Industries allots equity shares

The board of Nakoda Textile Industries has allotted 7,80,000 equity shares of the company of Rs 10 each at a premium of Rs 10 per share upon conversion of 2,60,000 fully convertible debentures to the promoters of the company.

These shares were allotted at the board meeting held on 20 February 2008.

 

Crompton Greaves to declare third interim dividend

The board meeting of Crompton Greaves will be held on 28 March 2008 to consider for declaration of third interim dividend for the financial year 2007-08.

Further the company has informed that, 04 April 2008 has been fixed as the record date for the purpose of payment of interim divided. The dividend payment date will be 17 April 2008.

The company made this announcement during the trading hours today, 18 March 2008.

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Market News 22 March 2008

Record date for Rane (Madras) interim dividend is 22 March 2008

Rane (Madras) has fixed 22 March 2008 as the record date for the payment of interim dividend at the rate of Rs 6 per share (60%).

 

Inflation spurts to over 11-month high

Inflation surged to over 11-month high of 5.92% for the week ended 8 March 2008 as essential items like fruits and vegetables and pulses as well as some manufactured items turned expensive. The wholesale prices-based inflation stood at 5.11% in the previous week.

 

Infrastructure output up 4.2% in January 2008

Infrastructure sector output rose 4.2% in January 2008 from a year earlier, faster than a downwardly revised 2.7% growth in December 2007, government data released today, 19 March 2008, showed. Output rose an annual 8.3% in January 2007, and in the 2006/07 fiscal year it rose 8.6% from a year earlier.

 

Northgate Technologies grants options

The committee of Northgate Technologies has granted 40,000 options under ESOP 2006 to the eligible employees.

These options were granted at the committee meeting held on 18 March 2008.

 

Indian Hotels Company appoints directors

Indian Hotels Company has announced that Anil P Goel, presently the chief financial officer of the company and Abhijit Mukerji, presently the chief operating officer - Luxury SBU India, have been appointed as whole-time directors of the company with immediate effect.

The company made this announcement during the trading hours today, 19 March 2008.

 

i-flex Solutions to allot shares

The ESOP allotment committee meeting of i-flex Solutions will be held on 28 March 2008 to consider allotment of shares to the eligibleemployees / directors who have chosen to exercise their options under ESOS, 2002 of the company.

 

Cummins India inagurates its expansion manufacturing facility in Pune

Cummins India has announced that the company has inaugurated its expansion manufacturing facility at its Kothrud Plant in Pune on 17 March 2008.

This expanded facility has commenced commercial production of mechanical and electronic KV series engines ranging from 750 HP to 2250 HP to meet the demands of power generation, marine, construction, mining and locomotive applications and also specialize in assembling, testing and up-fit of high horsepower engines as per customer requirements.

The company made this announcement after the trading hours on Wednesday, 19 March 2008.

 

Thomas Cook India recommends dividend

The board of Thomas Cook India has recommended dividend at the rate of 50% for the year ended 31 December 2007.

The board has recommended preference dividend at the rate 0.001% for class B and class C for the period 07 February 2007 to 31 December 2007.

Further, ratification of dividend paid on class A preference shares at 4.65% for the period 07 February 2007 to 31 December 2007.

This was recommended at the board meeting held on 19 March 2008.

 

GE Shipping contracts to sell single hull GP product tanker

Great Eastern Shipping Company has contracted to sell its 1982 built single hull general purpose (GP) product tanker Jag Praja (29,990 dwt). The vessel will be delivered to the buyers in Q1 FY 200809. The decision to sell this ship is in line with the company's strategy of exiting from old nondouble hull tanker fleet.

The company's new building order book comprises 12 vessels aggregating 0.85 mn dwt (4 LR1 product tankers aggregating 0.30 mn dwt & 8 dry bulk carriers aggregating 0.55 mn dwt).

The company made this announcement during the trading hours today, 19 March 2008.

 

Patni Computer Systems appoints vice president

Patni Computer Systems has announced the appointment of Robert Rando as the company's new vice president of sales in the product engineering services practice.

The company made this announcement during the trading hours today, 19 March 2008.

 

Satellite Engineering reports net loss of Rs 0.09 crore in the June 2007 quarter

Satellite Engineering reported net loss of Rs 0.09 crore in the quarter ended June 2007 as against net loss of Rs 0.03 crore during the previous quarter ended June 2006. Sales rose 75.00% to Rs 0.14 crore in the quarter ended June 2007 as against Rs 0.08 crore during the previous quarter ended June 2006.

 

Thomas Cook (India) net profit declines 23.26% in the December 2007 quarter

Net profit of Thomas Cook (India) declined 23.26% to Rs 13.76 crore in the quarter ended December 2007 as against Rs 17.93 crore during the previous quarter ended December 2006. Sales declined 17.36% to Rs 52.35 crore in the quarter ended December 2007 as against Rs 63.35 crore during the previous quarter ended December 2006.

For the full year, net profit declined 13.18% to Rs 33.41 crore in the year ended December 2007 as against Rs 38.48 crore during the previous year ended December 2006. Sales rose 9.69% to Rs 215.22 crore in the year ended December 2007 as against Rs 196.20 crore during the previous year ended December 2006.

 

Bajaj Auto Finance to repurchase non-convertible debentures

The board of Bajaj Auto Finance has decided to repurchase in one or more tranches, from the open market, 6% fully paid non-convertible debentures (NCDs) of the face value of Rs 500 each, which were allotted on rights basis. The repurchase of NCDs will be for an amount aggregating upto Rs 150 crore. In the first tranche, the Company intends to repurchase the NCDs during 24 March 2008 to 26 March 2008.

The company made this announcement during the trading hours today, 19 March 2008.

 

Pritish Nandy Communications joined hands with DQ Entertainment International

Pritish Nandy Communications has joined hands with DQ Entertainment International, one of the world's leading animation, game art and film production companies, to co-develop and co-produce 6 movies in the next 3 to 4 years time within a budget of $45 million. These films will be in animation and live action and each project will be separately announced once the global co-production budgets are closed.

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Tata Communications launches Cisco Certified TelePresence connection services globally

Tata Communications announced the launch of its global TelePresence network service which has achieved Cisco Certified TelePresence Connection status. Cisco TelePresence is an innovative realistic virtual meeting solution that creates unique, in-person experiences allowing real-time, face-to-face communication over a converged IP network. It delivers life-size images, ultra-high-definition video (1080p), spatial audio and a specially designed environment to create a room within a room meeting space.

Cisco TelePresence is transforming the way organizations conduct business. Companies can utilize the TelePresence solution to enhance collaboration, to make decisions faster, to improve cross-cultural communications, to scale scarce resources and to move products to market faster. Tate Communications is the first Asian service provider to achieve Cisco Certified TelePresence Connection status enabling the delivery of the Cisco TelePresence solution.

The Cisco certification program for TelePresence services provides businesses with an added level of confidence, that providers such as Tate Communications can deliver the capabilities needed for an optimal TelePresence experience. The Cisco TelePresence certification process goes beyond static service measurement of network performance. It adds leading practices based on current industry standards for network architecture, management and performance including measurement, staff, processes and tools. These are audited regularly to help ensure that service providers are committed and able to offer an optimal Telepresence experience providing customers with robust, end-to-end communication solutions that meet their business needs today and into the future.

The company made this announcement during the trading hours today, 19 March 2008.

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L&T to add 4000 MW per annum capacity for super-critical boilers, steam turbine generators

Larsen & Toubro (L&T) is all set to ramp up its manufacturing capacity of super-critical boilers and super-critical turbine generators to 4000 mw per annum. The foundation stone for the upgraded facility was laid at Hazira on 19 March 2008 in presence of A M Naik, chairman and managing director, L&T, and Ichiro Fukue, representative director, Mitsubishi Heavy Industries.

L&T is the only private sector company in India to enter the space of super-critical boilers and steam turbine generators. The company will be manufacturing and marketing these critical components of the large power plant through two separate joint ventures with Mitsubishi Heavy Industries (MHI) of Japan. MHI is a global leader in this business.

L&T holds 51% in both the joint venutre with MHI holding 49 per cent. The joint ventures will have an investment of Rs 1500 crore. The joint venture had already started their operations in existing facilities at Hazira last year and have already constructed two new workshops. To further add capacities by 4000 mw, the new dedicated facilities coming up at Hazira marks a significant milestone in India's power sector.

Super-critical boilers and turbines are integral components of energy efficient, coal-based power plants. They will help meet the demand supply gap for power plant equipment as India ramps up its power generation capacity using the super-critical technology.

Manufacturing capability of these products integrates into L&T's existing strengths in the power sector. L&T is currently engaged in total EPC contracts for power projects as well as manufacture of complete condensing and feed heating systems and 'balance or plant' for power projects. With L&T also declaring its intent to enter the generation space as a developer of power projects, the company has developed capabilities for becoming a single point solution provider for the power sector.

L&T -MHI will have a product configuration catering to super-critical power plants, ranging between 500 mw-1000 mw. The engineering design centre for the boilers is based in Faridabad, near New Delhi, and that for steam turbines in Vadodara, Gujarat. The new fabrication and manufacturing facilities will be extension of present complex and will be state of the art world class set up.

The company made this announcement during the trading hours today, 19 March 2008.

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Gold surges to Rs 13,560 on strong global cues

Gold prices on March 17 reached its new peak of Rs 13,560 in the bullion market in New Delhi on brisk buying by stockists, sparked by strong global cues. A turmoil in all financial markets after all dollar-denominated commodities turned volatile by setting high and low record levels, diverted investors to park their funds in gold, considering it to be a safe investment during such crisis, traders said. The precious metal set record high peaks in all local as well as world bullion markets.

A remarkable rise in crude oil prices, weakening dollar, restricted inflow of foreign investors in emerging Asian stock markets left with no other option but to invest in gold, which surged to an all-time high of $1033 an ounce in overseas markets. Standard gold and ornaments registered hefty gains of Rs 360 each to Rs 13,560 and Rs 13,410 per ten grams respectively. Sovereign joined the rally and set an all-time high level of Rs 10,350 per piece of eight gram by adding Rs 200. In a similar fashion, silver ready attracted heavy stockists and industrial units buying after reports that it touched a 28-year high level in overseas markets. Silver ready rallied by Rs 1,050 to Rs 25,800 per kg and weekly-based delivery by Rs 620 to Rs 27,360 per kg. Silver coins too remained in keen demand and advanced by Rs 400 to Rs 27,300 for buying and Rs 27,400 for selling of 100 coins.

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Market Review 18th March 2008 - Market closed with marginal gains

Markets on 18th

Market closed with marginal gains

The Indian market closed with marginal gains after presenting a good show but a lot of volatility was witnessed during the trading session. The market gave up most of its gains as the profit booking across the counters prevailed. Though the market opened almost on a flat note but gathered the momentum towards the mid session as the buying intensified across the counters. From the sectoral point, Capital goods and Realty scrips remained the centre of attraction as most buying was witnessed from theses baskets. The BSE Sensex closed higher by 23.97 points at 14,833.46 and NSE Nifty grew by 29.9 points to close 4533. However, the Mid Caps and Small Caps remained out of favor as most selling was witnessed from these counters to close lower by 90.44 points and 157.03 points at 6,033.91 and 7,365.20 respectively. The market breadth turned weak as 1918 stocks closed in red as against 749 stocks that closed in green.

As regards global markets, while the Asian indices closed in the green, the European indices are witnessing a positive trend currently.

The Sensex formed an inverted "U" as it rose steadily during the second half of the trading session but reversed right back to yesterday's closing levels by the final hours. Both the BSE midcap, as well as the BSE smallcap index closed lower by 2%. DLF (up 5%) and HUL (up 4%) led the pack of gainers, while Jaiprakash Associates (down 4%) and Tata Steel (down 3%) featured among the key losers.

Ranbaxy has entered into an exclusive in-licensing agreement with CD Pharma to market the INERSAN brand in India and Nepal. The patented product, a probiotic preparation, is used for the treatment of dental problems such as Periodontitis, Gingivitis and Halitosis. These are common dental problems, which if ignored, can lead to more serious complications. Dental practitioners in India currently do not have any specialized prescription product for these conditions. INERSAN shall be the first-of-its-kind to be introduced in India. This is a positive development for the company as it consolidates its position in the dental segment. Ranbaxy closed higher by 4%, while its peer Dr. Reddy's ended 2% higher.

L&T's heavy engineering division has bagged a contract valued at Euro 28 m for supplying the coal gasifier and syngas cooler assembly to Hebi Coal and Electricity, a subsidiary of Zhongyuan Coal Chemical Industry Group, China. The structure, which is expected to weigh 1,740 MT, will be the world's largest and heaviest gasifier assembly and will form the heart of a methanol plant with a capacity of 600,000 tonnes per annum. The equipment will be manufactured from advanced technology steels at L&T's manufacturing facilities at Powai & Hazira. The Hazira facilities are situated on the waterfront with easy access to the sea for ease of shipment. It may be noted that at the end of December 2007, the order backlog for the E&C segment stood at Rs 476 bn, almost 3.5 times the segment's FY07 revenues. L&T ended higher by 3%, while its peer BHEL closed higher by 4%.

Source - Religare

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