Inflation hits 5 1/2 year low
India's inflation, based on the Wholesale Price Index (WPI), fell to nearly five-and-a-half year low in the week ended October 27, the Government said. However, if the impending fuel price hike comes into effect inflation will go up in the coming weeks. Inflation rate slowed to 2.97% in the fourth week of October from 3.02% in the previous week, the Ministry of Commerce and Industry said today. Analysts had forecast a reading of 3.06%. Inflation was 5.35% in the corresponding week of last year.
Govt ups MSS limit as rupee nears 10-yr high
With the rupee within striking distance of touching a 10-year peak and foreign inflows continuing unabated, the Government increased the ceiling for issuing government bonds under the Market Stabilisation Scheme (MSS). The move is designed to help the Reserve Bank of India (RBI) help reign in unbridled foreign capital inflows into the flourishing capital markets. This is the fourth time in FY08 that the MSS ceiling has been hiked and the second time in a month, with the last being in October.
Apr-Oct direct tax collection up 40% yoy
Direct tax collections maintained a growth of over 40% in the first seven months of the current fiscal year, indicating that there is no slowdown in the industrial or economic activity as has been feared in recent times. Net tax collections grew by 43.15% at Rs1.29 trillion. Corporate tax rose by 45.71% to Rs787.85bn. Personal income tax (including FBT, STT and BCTT) grew by 39.39% to Rs498.9bn.
DLF, Sterlite, GMR Infra, RNRL added to MSCI indices
MSCI added 8 new stocks in the MSCI India Index while removing seven. The changes were part of the bi-annual review and will be made as of the close of November 30. Cairn India, DLF, GMR Infra, HCL Tech, NTPC, RNRL, Sterlite Industries and United Spirits are the new additions to the MSCI India Index. The deletions include Ashok Leyland, Asian Paints, Bharat Forge, GSK Pharma, HPCL, Nestle India and Videocon Industries. In addition, MSCI added DLF and Sterlite to the MSCI Emerging Markets (EM) Asia Index.
Mundra Port IPO subscribed nearly 116 times
The IPO of Mundra Port & Special Economic Zone Ltd. was subscribed nearly 116 times as the first ever public issue by a private port closed for subscription. The issue was sold out within just a few minutes of opening the bids on November 1. The company received bids for 4.66bn shares as against the issue size of 40.25mn shares. The QIB portion was subscribed almost 160 times while the HNI category was subscribed 156 times and Retail portion 16 times. The Adani Group company offered shares to local and overseas investors in a range of Rs400 to Rs440 per share.
DoT forms new committee on spectrum allotment
The DoT set up a panel to thrash out new norms for the allocation of radio frequency. The Telecom Engineering Centre (TEC) had recommended tightening the subscriber-linked norms by several times for the existing wireless telecom operators and the DoT had given its 'in-principal' approval to the report. Still, COAI, the body representing GSM companies refused to withdraw its petition from the TDSAT and in fact filed a fresh affidavit in the telecom tribunal against the TEC report.
ONGC eyeing stake in two Sudan blocks
In an attempt to increase the share of overseas business, ONGC is interested in acquiring over 30% stake in two more oil & gas exploration blocks in Sudan, officials from the two countries said. "Besides the three blocks ONGC already has in Sudan, it has shown interest in two more blocks. The doors are open for Indian investment in Sudan," Sudanese Oil Minister Awad Ahmed al-Jaz said in New Delhi.
Bajaj Auto buys 14.5% in KTM
Bajaj Auto acquired a 14.5% stake in Austria's KTM Power Sports AG as part of a wide-ranging co-operation between the two companies. KTM is providing the know-how for the joint development of a water-cooled 4-stroke engines (125-cc and 250-cc). With this, KTM will foray into street motorcycles while Bajaj Auto will also get a new platform for new products.
October car sales up 14.6% yoy
India's auto landscape presented a mixed picture as far as volume for October is concerned. Passenger car sales last month rose by 14.6% to 105,878 units. Total passenger vehicle sales higher by 16.7% to 138,504 units. Total sales of commercial vehicles (CV) grew by 12% to 43,645 units in October. Total two-wheeler sales fell by 3.7% to 793,420 units with bike sales down 6.7% at 657,874 units. But, sales of scooters rose by 16.6% and that of mopeds gained 22.2%.
RIL discovers more gas in KG basin
Reliance Industries Ltd. (RIL) said it met with yet another success in KG-OSN-2001/1 (KG-III-5) located in the Krishna offshore basin in the east coast of India. The well (KGIII5-P1) is the second gas discovery in the Miocene clastics reservoir in the Krishna basin. This shallow water block, with an area of 1100 sq. kms, was awarded to RIL under biding round of NELP-III. RIL holds 100% participating interest in this block.
Glenmark Pharma unveils business recast
Glenmark Pharmaceuticals announced plans to reorganize its businesses into Specialty and Generics. The new generic entity called Glenmark Generics will be a wholly owned subsidiary of the company and will be listed on the Indian stock exchanges by the first quarter of the fiscal year 2008-09. Terrance Coughlin, currently President API and US Generics, will take over the role of the CEO while Glenn Saldanha will function as the Chairman of Glenmark Generics.
Viacom, Network18 formally announce Indian JV
Viacom and Network18 - through its group company Global Broadcast News (GBN) - completed formalities for their 50:50 joint venture in India - Viacom 18 Media. The two companies had announced their plans in May. Viacom18 will include television, film and digital media content across numerous brands as well as consumer products. The JV will be managed by a six-member Board with equal representation by Viacom and Network18.
Amtek Auto acquires UK based Triplex-Ketlon
Amtek Auto said it has acquired UK-based automotive precision machining company Triplex-Ketlon Group for an undisclosed sum. At revenues of US$152mn per annum, Triplex-Ketlon is one of UK's large but independent precision machining companies. Triplex-Ketlon has a very strong customer base that includes names like Perkins, Land Rover, Honda, Ford, TRW, JCB, Toyota, Dana Spicer, Honeywell among others.
Sterlite eyeing 10,000MW power capacity
Sterlite Industries said it intends to participate in coal-based thermal power projects and other ancillary activities. These projects are expected to include ultra mega power projects or other projects announced by the Government or any state and / or PSU and other projects independently developed by Sterlite Energy aggregating to an installed capacity of up to 10,000 MW in the next five years.
MS announces US$3.7bn subprime hit
Morgan Stanley joined Merrill Lynch and Citigroup in booking losses on subprime mortgage-related assets and said the outlook for credit markets is bleaker than in September. The No.2 US securities firm by market value after Goldman Sachs said it lost US$3.7bn in the two months through Oct. 31. Prices for securities linked to home loans to risky borrowers sank further than traders expected, cutting Q4 earnings by US$2.5bn. The figure may change by the end of the month.
Citi chief Prince steps down
The subprime turbulence in the US led to another big casualty on Wall Street in the form of Citigroup CEO Charles Prince, as the markets wonder how much poison is still left in the system. The exit came after the largest US bank warned of additional writedowns of as much as US$11bn on subprime mortgages and related securities, on top of more than US$6bn of charges reported for the third quarter.
GM unveils US$39bn loss
General Motors (GM) said it had lost US$39bn during the third quarter, largely because of a huge charge to write down deferred tax credits, but also because of a deeper-than-expected loss in its operations. GM shares fell more than 5% on the news of the loss as well as the company’s forecast for continued sluggish auto sales into 2008, the year that GM said its turnaround plan would be fully carried out. The big loss was in contrast to a profit of US$497mn, or 88 cents a share, in the period a year earlier, excluding special items. But, GM officials said the overhaul effort was still on track and would continue to show results.
Time Warner CEO Parsons to resign
Time Warner, under pressure from investors to wring more profit from its AOL division and cable unit, named Jeffrey Bewkes new CEO, succeeding Richard Parsons as the head of the world's largest media company. The company posted a higher quarterly profit, matching expectations, on more subscribers to its package of digital cable services and strong box office results for the latest "Harry Potter" film.
PetroChina m-cap tops US$1 trillion
PetroChina became the first company in the world to have a market value of US$1 trillion after its shares almost tripled in Shanghai debut. The strong listing gave the Beijing-based state-owned oil company a market value that is more than ExxonMobil and GE combined and double that of the US-based rival's US$488bn. But, a large number of PetroChina shares are held by its state-owned parent and classed as non-traded.
Alibaba.com makes dazzling debut
Shares of Alibaba.com, which operates China's largest e-commerce web site, nearly tripled in their Hong Kong debut after raising US$1.5bn in one of the biggest IPOs by a Chinese Internet company. That gave Alibaba.com a market value of US$25.7bn, closing in on Yahoo Japan as Asia's biggest Internet company. The stock was four times more expensive than Google relative to earnings, and also traded at higher multiples than other Chinese Internet companies.
Google unveils mobile strategy
Internet giant Google revealed its plan to enter the mobile phone industry by developing software to make it as easy to access the web on a cell phone as on a computer. The company announced the new strategy that it will work with 33 other companies including mobile phone makers Motorola and Samsung. Google is focusing its efforts on a new platform called Android that relies on openly available computer codes accessible to all programmers.
ArcelorMittal to buy 28% in China Oriental
ArcelorMittal entered into an agreement to acquire a 28% stake in China Oriental Group Co. Ltd. from Smart Triumph Corporation and Chen Ningning for US$647mn. ArcelorMittal became the second largest shareholder of the Chinese company. The company is listed in Hong Kong and manufactures steel products such as billets, strips, H-beams, cold rolled and galvanized strip. For the year 2006, the group reported revenues of US$1.3bn and EBITDA of US$225mn.