Daily News Roundup - Dec 6 2012

Reliance Industries has sold its entire stake in an exploration block in Yemen to PT Medco Energi Internasional of Indonesia for US$90mn and has concluded the transaction. (ET) HDFC said a correction is unlikely in the runaway property prices in the metropolis, where the demand continues to be robust. (ET) The US’ Export-Import Bank has extended US$2.1bn credit to Reliance Industries to finance goods and services the Indian company will source from America for its new projects at Jamnagar. (ET) The new management of 3i Infotech — an ICICI-controlled software firm that went in for CDR earlier this year — is implementing a plan that is expected to return the company to profitability in the next six to twelve months. (ET) The Nasdaq-listed Cognizant has indicated lower growth rate in 2013 as against 2012. Its revenue may grow at 16% in 2013, which is less than the anticipated growth of 20% in 2012. (BL) Strides Arcolab Ltd and Eli Lilly have announced a collaboration to expand delivery of cancer medicines in the emerging markets. (BL) In a setback to Kingfisher Airlines, the Karnataka High Court directed the company to deposit 50% of the Rs3.71bn that it is required to remit to the Income-Tax Department as TDS. The High Court has also asked the company to furnish bank guarantee for the remaining amount due to the Department, within six weeks. (BL) Shriram EPC Ltd has bagged a US$230mn contract for setting up a storm water and sewer system in Basra, Iraq. The order will be carried out through a joint venture with the Mokul Group, a service provider with a global presence across diverse industries. (BL) Jindal Steel Power Limited is targeting South Africa and Mozambique to acquire more coal mines. (BL) The Government is expected to infuse Rs40bn into State Bank of India this fiscal. This will boost the bank’s capital adequacy ratio to over 13%, according to a top bank official. (BL) TVS Motor expects the motorcycle sales to end flattish this year even after gaining some of the lost ground in the remaining months on the back of new launches like the Phoenix 125 cc model. (BS) NTPC, which had sought the state government intervention to direct Mahanadi Coalfields Ltd for additional coal supply by rail to its Talcher power station, received a major jolt as MCL has declined to give any commitment. (BS) Economy Snippets The Congress-led UPA government’s decision to allow foreign supermarkets to operate in India won the backing of Lok Sabha, but the fate of the policy remained uncertain ahead of a vote in Rajya Sabha. (ET) Corporate India announced merger and acquisition deals worth nearly US$10bn in November, taking the year-to-date total to over US$41bn, according to global consultancy firm Grant Thornton. (ET) The Attorney-General has declined to change his view that foreign telecom players cannot invoke bilateral investment treaties, as the decision to cancel 2G licenses was made by the Supreme Court and not the Government. (BL) Securities transaction tax collections dipped 12.9% during the April to November 2012 period, as weak investor sentiments over the past several months resulted in a dip in trading volumes. (ET) The HSBC services Purchasing Managers' Index dropped to 52.1 in November from 53.8 in October, at 13-month low. (ET)