Tuesday, September 04, 2012
Tech Mahindra is on the verge of announcing the acquisition of Hutchison Global Services, the India back-office unit of Hutchison Whampoa, for around US$100mn. (ET) Banks with rising bad loans are preparing to drive out firms such as Southern Petrochemical Industries Corp, India Cements, Nagarjuna Fertilizers and Essar Oil out of corporate debt restructuring so they can charge higher rates. (ET) Wipro has poached senior Infosys executive Shaji Farooq, who was overseeing its largest industry vertical in the most important market for software companies. Wipro has appointed Farooq the global head for new technology areas. (ET)
The frontline Indian equity benchmarks started off the new trading week on a negative note, extending losses from the previous session. The NSE Nifty ended just above the 5250 mark amid selling pressure in Realty, Oil & Gas and Banking stocks. The Indian markets opened with a positive gap after the Government deferred GAAR rollout by three years. A high-level panel has also recommended abolition of capital gains tax to attract long-term foreign capital. GAAR, along with retrospective amendment to tax laws, was one of the big negatives of the Budget. The frontline Indian equity benchmarks turned choppy in the afternoon after a positive start. The main indices hit a day's high in early morning trade before slipping to a day's low in the early afternoon trade. The BSE Sensex and the NSE Nifty struggled for direction while the broader indices retreated from their intraday peaks.
The misfortune seems to be the seemingly never-ending policy impasse at the Centre and the recurring nature of the Parliamentary logjams.Curtains will soon come down on the ongoing monsoon session. "The longer we dwell on our misfortunes, the greater is their power to harm us.” – Voltaire. Fortunately, the monsoon seems to have revived, albeit belatedly. Even the late showers are likely to help the crucial agriculture sector. The pick-up in rains could help swell up the reservoirs and will aid farmers in the Rabi season. The misfortune seems to be the seemingly never-ending policy impasse at the Centre and the recurring nature of the Parliamentary logjams.Curtains will soon come down on the ongoing monsoon session. Market participants will now keenly watch the stance of the Government on pending reforms.
The market may open slightly higher tracking mostly firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 7 points at the opening bell. Asia shares meandered mostly higher in relatively quiet Tuesday trading, with investors looking ahead to major events later in the week. Power Grid Corporation of India said after market hours on Monday that the board of directors of the company at its meeting held on August 31, 2012, have approved the investment approval for ‘System Strengthening - XIX in Southern Regional Grid' at an estimated cost of Rs 1935.35 crore with commissioning schedule of 27 months from the date of investment approval. Car market leader Maruti Suzuki India has unveiled a refreshed avatar of Ritz Diesel. Priced attractively at Rs. 5.31 lakh onwards, the new Ritz Diesel is sure to entice new age buyers who are looking for contemporary design, unmatched performance and superb fuel efficiency, company said in a statement. On the introduction of the new Ritz Diesel, Manohar Bhat, Vice President (Marketing) Maruti Suzuki India said, “It is heartening to see a fairly young brand crossing 200,000 sales mark in just 37 months. This reflects the huge customer acceptability of the Ritz. Numerous changes being introduced now will make the Ritz brand more vibrant. Most important, the new Ritz is more fuel-efficient with enhanced driving comfort. This makes it even more attractive for the customer and also gives us confidence to generate additional sales.”