OBC Q1 net profit up 41 pc to Rs 363 cr

Public sector lender Oriental Bank of Commerce today reported a 41.14 per cent jump in net profit to Rs 363.31 crore for the quarter ended June 30.

It had posted a net profit of Rs 257.41 crore for the first quarter of the previous fiscal, Oriental Bank of Commerce said in filing to the Bombay Stock Exchange.

The bank also reported an increase of 8.92 per cent in total income to Rs 3,045.54 crore for the first quarter, as against Rs 2,796.10 crore in the year-ago period.

Oriental Bank of Commerce reported a revenue of Rs 1,805.78 crore from its corporate banking segment during the first quarter of this fiscal, up 17.20 per cent over the figure of Rs 1,540.79 crore for the same period of 2009-10, the filing said.

Its revenue from the retail banking segment went up by 35.55 per cent during the quarter ended June 30 to Rs 939.90 crore, as against Rs 693.42 crore in the year-ago period.

Source http://economictimes.indiatimes.com/news/news-by-company/earnings/earnings-news/OBC-Q1-net-profit-up-41-pc-to-Rs-363-cr/articleshow/6232469.cms

NSE and LSE enter into cross-listing deal

The National Stock Exchange and the London Stock Exchange entered into a deal to evaluate the options of cross-listing of key indices on each other's platforms.

The London Stock Exchange Group (LSEG) and the NSE signed a letter of intent to evaluate joint strategic business opportunities and co-operate more closely in the future, the NSE said in a statement.

Under the agreement, the two exchanges will explore the feasibility of an agreement whereby FTSE Group may licence the FTSE 100 Index to the NSE and the Indian bourse may licence its benchmark Nifty-50 to LSEG for trading purposes.

"We are confident that the letter of intent with the LSE will open up newer investment opportunities for Indian investors and expand the bouquet of investible instruments NSE platform provides," NSE Joint MD Chitra Ramkrishna Ramkrishna said.

"We also hope to draw upon the expertise of LSE in the SME segment for the benefit of Indian SMEs and investors," she added.

The agreement was signed here by LSEG Chief Executive Xavier Rolet and NSE's Ramkrishna in the presence of UK Chancellor of Exchequer George Osbornse, who is leading a high-profile British business delegation to Mumbai.

"We are optimistic about India's remarkable growth story and feel strongly that a business relationship with India's leading stock exchange opens exciting investment opportunities for Indian investors in international companies, as well as give international investors greater opportunities to participate in India's growth," Rolet said.

Source http://www.financialexpress.com/news/LSE-to-explore-biz-opportunity-with-NSE/652903/

Reserve Bank of India to Hold Meetings Every Six Weeks to Manage Inflation

India said it will halve the gap between monetary policy decisions, aligning the frequency of the central bank’s meetings closer with others in the world’s biggest economies.

The Reserve Bank of India will release monetary-policy statements every six weeks, compared with the once a quarter currently, it said today after raising interest rates more than economists expected. The next announcement will be on Sept. 16.

Accelerating inflation in India has led to strikes and street rallies and prompted Governor Duvvuri Subbarao to raise interest rates four times this year, including two inter-meeting increases. The greater frequency of rate decisions would reduce speculation over policy actions, economists say.

“Scheduling more meetings indicate the likelihood of more policy adjustments and in the current environment of a tightening bias, it would imply that the chance of more hikes has increased,” said Dariusz Kowalczyk, a Hong Kong-based senior economist and strategist at Credit Agricole CIB. “It will also help in managing inflation expectations.”

The U.S. Federal Reserve and the Bank of Canada schedule rate-setting meetings eight times a year, while the Bank of Japan has 14 such gatherings annually. Policy makers at the European Central Bank, the Bank of England, the Bank of Korea and Bank Indonesia meet monthly to decide on rates, while the Reserve Bank of Australia release such decisions 11 times a year.

Among other Group of 20 nations, China doesn’t have scheduled decisions while Argentina doesn’t typically use interest rates as a monetary policy tool.

Unscheduled Decisions

The Indian central bank has made 13 inter-meeting changes to borrowing costs since the beginning of 2008, compared with three times for the Fed and none for the ECB and BOE.

“This is a welcome move and will improve the transparency of monetary policy,” said Brian Jackson, a Hong Kong-based senior emerging markets strategist at Royal Bank of Canada. “It should reduce the need to make rate changes between meetings and so will reduce speculation about off-schedule moves.”

The Reserve Bank of India raised the reverse repurchase rate to 4.5 percent from 4 percent and the repurchase rate to 5.75 percent from 5.5 percent, according to a statement from the central bank in Mumbai.

The reverse repurchase rate may be raised to 5.25 percent by the end of 2010, while the repurchase rate may climb to 6.25 percent in the same period, Kowalczyk said.

The Reserve Bank also boosted its estimate for wholesale- price inflation for the year to March to 6 percent from 5.5 percent and the economic growth forecast to 8.5 percent from 8 percent. Consumer prices paid by industrial and farm workers in India are running close to 14 percent, government data show. That’s the most after Venezuela’s 32 percent inflation rate, according to Bloomberg data compiled from 82 countries.

Source http://www.bloomberg.com/news/2010-07-27/india-to-increase-frequency-of-interest-rate-meetings-to-every-six-weeks.html

Rupee reverses gains as shares drop; dlr eyed

The rupee reversed gains in afternoon session on Monday tracking a drop in local shares but the dollar's losses against major currencies prevented it from slipping sharply.

At 2:04 p.m., the partially convertible rupee was at 46.98/99 per dollar, after rising to 46.80, its strongest since July 16. It closed Friday at 46.94/95. Indian shares were trading down 0.6 percent, pulled down by a fall in automaker Maruti which posted a surprise 20 per cent drop in net profit over the weekend. Traders were also watching the dollar's moves versus majors for direction.

The index of the dollar against six major currencies was very choppy. The euro firmed against the dollar on Monday as investors bought into riskier assets, calmed after the release of European banks' stress test results late on Friday.

One-month offshore non-deliverable forward contracts were quoted at 47.18, weaker than the onshore spot rate. In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both at 47, with the total traded volume on the two exchanges at about $3 billion.

Source http://economictimes.indiatimes.com/markets/forex/Rupee-reverses-gains-as-shares-drop-dlr-eyed/articleshow/6218902.cms

Govt clears PowerGrid FPO, to divest 10% stake

The government on Thursday approved disinvestment in transmission firm PowerGrid Corporation through a follow-on public offer (FPO) to raise about Rs8,400 crore.

The Cabinet Committee on Economic Affairs (CCEA) gave its nod to the 20% FPO by PowerGrid, an official statement said.

The company would issue 10% fresh equity, while the Centre would divest 10% of its stake in the PSU. The government holds 86.36% stake in PowerGrid.

The offer comprises over 84 crore (84,17,68,246) equity shares of Rs10 each constituting 20% of existing paid-up capital. At current market valuation, the FPO is likely to mop up about Rs8,400 crore.

Besides disinvestment of the government stake, the fresh capital raising would be used for part funding investment requirement of about Rs58,000 crore of the PSU.

The company had hit the capital market in October 2007, with its maiden public offer and issued 10% fresh equity, and the government divested 5% of its stake.

In an effort to raise Rs40,000 crore from disinvestment during the current financial year, the government would sell stake in about 10 more PSUs, including IndianOil, Coal India, SAIL, RINL and Shipping Corporation.

The company targets to augment transmission capacity to 23,400 MW in the current fiscal from 19,800 MW at present.

Source http://www.livemint.com/2010/07/22130443/Govt-clears-PowerGrid-FPO-to.html?h=A1

Kotak Mahindra Bank Q1 net up 27 pc at Rs 328 cr

Private sector lender Kotak Mahindra Bank today reported a 27 per cent jump in net profit at Rs 328 crore for the quarter ended June 30, 2010. It had a net profit of Rs 257 crore in the April-June quarter of FY'10, the bank said in a statement.

Total income of the the lender, however, dipped to Rs 2,326.51 crore for the June quarter, from Rs 2,338.19 crore in the corresponding period a year ago. Total deposits of the bank as on June 30 were up 38 per cent to Rs 24,058 crore.

The net interest income of the bank rose by 24 per cent to Rs 508 crore during the quarter.

The bank's branch netwrok increased to 262 at the end of June quarter, from 249 at the end of March 31.

Read more at: http://beta.profit.ndtv.com/news/show/kotak-mahindra-bank-q1-net-up-27-pc-at-rs-328-cr-84002?cp

India gold adds to losses; spurs buying for festivals

India gold extended losses for a second day to trade near its two-month low on Tuesday, spurring physical buying as traders braced for a second round of festivals from August, but a weak rupee weighed on sentiment.

"This is the last week of July before festivals in August, so physical traders are taking every opportunity to enter," said Pinakin Vyas, assistant vice-president, treasury, with IndusInd Bank, a gold importer.

Gold futures on the Multi Commodity Exchange (MCX) was trading 0.16 percent lower at 18,228 rupees at 1:20 p.m., after hitting a low of 18,210 rupees, nearing the level last seen on May 25.

"I priced-in for a sizeable quantity of gold from yesterday evening below $1,190 levels," said Vyas.

"Rupee is not giving too much comfort to the market," said a dealer with a state-run, bullion-dealing bank.

The rupee fell to its lowest level in a month and half on Tuesday, weighed down by defence-related import payments and demand for dollars from some companies.

A weaker rupee makes the dollar-quoted asset expensive.

India, which accounts for more than 20 percent of global demand, will celebrate the Hindu festival of Raksha Bandhan on Aug. 24, and Janmasthami and Ganesh Chaturthi in September.

The world's largest consumer of bullion may import 500-550 tonnes of gold in 2010, up from 480-490 tonnes a year earlier, the head of a trade body said on Thursday.

Source http://in.reuters.com/article/idINIndia-50257520100720

Lending rates likely to go up after September: ICICI Bank

Finance Minister Pranab Mukherjee with Chanda Kochchar, MD and CEO of ICICI Bank at a summit in New Delhi on Monday.

The country’s largest private lender, ICICI Bank, on Monday said it expects lending rates to go up after September as credit off take is likely to pick up in the second half of the current fiscal.

“My belief is the demand for liquidity will increase substantially in the second half of this year,” ICICI Bank CEO and Managing Director Chanda Kochhar said on the sidelines of a CII function.

“So, you would see some gradual increase in interest rate on the lending side over the next one year,” she said.

Asked about the initial public offering (IPO) plans of the bank’s subsidiary ICICI Securities, she said, “There is nothing in the offing. Nothing in this fiscal.”

ICICI Securities is ICICI Bank’s broking and advisory unit which has pioneered an online share trading platform in India.

On base rate, Ms. Kochhar said that it has already been announced and lending rates are getting realligned with base rate.

“Immediately you will not see change in effective rate just because of the announcement of base rate,” she said.

Speaking about the current liquidity situation, she said, “It is sufficient.”

“As I am seeing a lot of economic activity coming back there would be a lot of credit demand in the second half that is when I think some of the excess liquidity that is there will go out,” Ms. Kochhar said.

On inflation, she said it is something that the economy needs to monitor as it is becoming widespread and is not just food related but has spread to other sectors as well.

“My feeling is as (production) capacity gets created in the country and supply improves that is the best way of correcting inflation. So, over a period one would see a very gradual correction of inflation taking place,” she said.

Asked about her expectation from the Reserve Bank’s policy review, scheduled for July 27, she said there is a need to balance between checking inflation and ensuring that growth goes back to the old level of 9 per cent.

Source http://www.thehindu.com/business/companies/article523306.ece

A 380 lands at Delhi's T3 today

In a landmark of sorts, the first commercial flight of an A380, the world's largest passenger aircraft, will land in New Delhi today.

The Emirates A380 Super Jumbo EK516 from Dubai to Delhi will arrive at Indira Gandhi International (IGI) Airport's brand new Terminal 3. The aircraft will be at the IGI Airport for three hours before it returns to Dubai.

Emirates' A380 is renowned for its First Class Private Suites and Shower Spas. The 517-seat aircraft offers 14 flat-bed First Class Private Suites with electrically operated doors, 76 fully-flat seats in Business Class - all with mini bars and aisle access, and 427 comfortable contoured seats in Economy - spread across four roomy cabins on the lower deck.

A personal satellite phone is fitted to each seat on the A380 aircraft, which also carries a seat-back SMS and email service, along with seat to seat calling and a "My USB" personal picture viewing facility.

New Delhi's Terminal 3 became operational on Wednesday evening as an Air India Boeing from New York via Washington became the first aircraft to dock at one of the 78 aerobridges of the glass-and-steel terminal.

The flight was given a salute with jet of water being sprayed from cannons from both its side as it taxied on the bay to dock at T3. The passengers were given a warm welcome on arrival by officials Air India and Delhi International Airport Limited (DIAL).

Prime Minister Manmohan Singh had inaugurated the terminal on July 3. Terminal 3, or T3 as the new airport building is called, is the fifth largest airport terminal in the world.

The spanking new world-class Rs 9,000-crore T3 will integrate domestic and international operations and is expected to handle 34 million passengers every year.

Source http://www.ndtv.com/article/india/a-380-lands-at-delhi-s-t3-today-37654

China faces worst flooding in 12 years on Yangtze

Fishermen salvage fishing nets from their capsized boat after Typhoon Conson hit Mariveles, Bataan province, north of Manila July 15, 2010.

Central China faces its worst flooding since 1998 when thousands died, as rain continues to batter the upper and middle reaches of the Yangtze River, a state newspaper said on Thursday.

"Although the current situation along the Yangtze River has yet to reach the danger level, it is definitely at a crucial point," the China Daily quoted senior flood official Wang Jingquan as saying.

"If heavy rain hits the upper reaches of the Yangtze River, coupled with the continuous rainfall in the middle and lower reaches, severe flooding similar to that in 1998 will occur," Wang added.

"There will be no room for optimism as the incoming Typhoon Conson will add to the grave situation in flood control," he added, referring to a storm heading towards the southern Chinese provinces of Guangdong and Hainan.

Yangtze floods in 1998 killed more than 4,000 people, forced the evacuation of more than 18 million and causes damage worth $37 billion, the newspaper said.

Rain across a large swathe of southern China has already killed around 400 people this year.

Storms over the last week in Yunnan, Sichuan and Hunan provinces have killed at least 41 and left nearly 40 others missing, with many vanishing under landslides.

President Hu Jintao and Premier Wen Jiabao have ordered local governments to step up flood relief efforts and "stressed that people residing in areas under the threat of floods and typhoons must be relocated to safety in a timely manner", the report said.

Source http://uk.reuters.com/article/idUKTOE66E01J._CH_.2420

Sensex opens 181 points up on strong global cues

The Sensex which gained nearly 515 points in the previous four sessions, added another 181.32 points, to 18,167.22 points, a level last seen in February 2008.

The Bombay Stock Exchange benchmark Sensex rose by 181 points in the opening trade on Wednesday, tracking a firm trend in overseas markets.

The 30-share index, which gained nearly 515 points in the previous four sessions, added another 181.32 points, or 1 per cent to 18,167.22 points, a level last seen in February 2008.

The wide?based National Stock Exchange index Nifty surged 52.80 points, or 0.97 per cent, to 5,453.45 points.

Market sentiment remained firm in tandem with a strong trend in the Asian region and overnight gains in the U.S. market after upbeat results from Intel Corp.

Reliance Industries continued its upward journey and rose 0.60 per cent to Rs. 1,081.15 on reports that it is in talks to acquire its third shale gas asset in America.

Among other stocks DLF Ltd gained 2.38 per cent to Rs. 323.15, HDFC Ltd 1.66 per cent to Rs. 3,114.05, HDFC Bank by 1.69 per cent to Rs. 2,100.35, State Bank of India 1.51 per cent to Rs. 2,464.75 and ICICI Bank 0.99 per cent to Rs. 907.50.

Meanwhile, Hong Kong?s Hang Seng Index rose 1.03 per cent and Japan?s Nikkei index was trading higher by 2.65 per cent in early trade today. The Dow Jones Industrial Average index rose 1.44 per cent in yesterday?s trade.

Source http://www.thehindu.com/business/markets/article515151.ece?homepage=true

'Buy' on Infosys with target of Rs 3500: CLSA

N.R. Narayana Murthy, Founder, Chairman and Chief Mentor, Infosys Technologies (right) and S. Gopalakrishnan, CEO, in Bagnalore on June 12, 2010.

CLSA has maintained its ‘Buy’ recommendation on Infosys Technologies after the IT bellwether announced earnings for first quarter of 2011.

Though the June quarter results have been disappointing, the revenue guidance is seen as a big positive from the company

“While we must admit that we were expecting a better June quarter, what is truly remarkable is that this usually conservative company has chosen to make a big statement for the future. We were expecting a 3.5% QoQ as the base guidance for September-10 quarter revenues but the company has guided for 5.1% QoQ.

FY11 revenue guidance has moved to 19-21%YY from 16-18%YY earlier despite a 1% headwind from adverse EUR movement. The EPS guidance has been raised as well.

These are meaningful signs of confidence from any company but coming from Infosys, they draw a line in the sand that proclaims robust demand and visibility of growth despite the macro-economic chatter heard from Europe recently.

We believe that our street high estimate of 25-26%YY $-revenue growth for FY11 is reasonable.

BUY on the stock is maintained with a target price of Rs 3,500,” the report said.

Source http://economictimes.indiatimes.com/Buy-on-Infosys-with-target-of-Rs-3500-CLSA/articleshow/6162481.cms

Tata quits COAI; says lobby favours only few big, old players

Terming the functioning of COAI, a powerful lobby of GSM operators, as "undemocratic, biased, non-transparent and unethical", Tata Teleservices (TTSL) today resigned from the core membership of the association.

"We have found that COAI is not a transparent association and represents the views of only a few selected old players, as all powers/rights are vested in their hands," TTSL said in a letter to Rajan Mathews, Director General of COAI.

"By doing so, COAI along with these few older players, has become an obstacle in the growth of the Indian telecom industry," it added.

Mathews could not be contacted despite several attempts as his mobile phone was switched off.

The Cellular Operators Association of India (COAI) has older players like Bharti Airtel, Vodafone and Idea Cellular as its core members. Sanjay Kapoor, CEO of Bharti Airtel, was elected chairman of COAI last week.

Tatas alleged that the COAI was focussed only on the "myopic growth of a few telecom operators", without being representative of all the members.

"TTSL does not wish to continue associating with an association which just doesn't seem to be able to work in a just and equitable manner. We, hereby, formally tender our resignation as core member of COAI," it said.

Tatas did not rule out initiating legal action against the lobby of GSM operators.

Last week, the COAI had barred TTSL, along with two other operators -- Loop Telecom and Etisalat -- from exercising their franchise as the companies had not paid "disputed" dues.

The company had, however, asserted that it had paid all its dues, though there were some disputed amounts. It said that the voting power was concentrated in the hands of three big operators and the other 8-10 members were virtually insignificant.

"Voting rights have been placed in the hands of a few key older players and these privileges are often abused by these players for their own advantage," TTSL said in the letter.

Source http://economictimes.indiatimes.com/news/news-by-industry/telecom/Tatas-quits-COAI-says-lobby-favours-only-few-big-old-players/articleshow/6158595.cms

HCL Infosystems spurts on overseas acquisition

HCL Infosystems jumped 5.36% to Rs 118.90 at 09:06 IST on BSE after the company acquired a 60% stake in NTS Group, a leading IT services and solutions provider based in Dubai, involving an investment of about $6.5 million.

The announcement was made after market hours on Thursday, 8 July 2010.

Meanwhile, the BSE Sensex was up 140.02 points, or 0.79%, to 17,791.75

On BSE, 73,361 shares were traded in the counter as against an average daily volume of 72,835 shares in the past one quarter.

The stock hit a high of Rs 121.80 and a low of Rs 115.90 so far during the day. The stock had hit a 52-week high of Rs 188.80 on 22 October 2009 and a 52-week low of Rs 98 on 13 July 2009.

The stock had underperformed the market over the past one month till 8 July 2010, rising 3.44% compared with the Sensex's 6.23% rise. It underperformed the market in past one quarter, falling 14.34% as against 0.35% fall in the Sensex.

The mid-cap firm has an equity capital of Rs 43.63 crore. Face value per share is Rs 2

Following the acquisition of NTS Group, HCL Infosystems will be able to expand its presence in the Middle East and African markets to address system and service integration needs in the regions. NTS Group offers solutions in hardware, enterprise software, infrastructure and networking, e-security and web development.

HCL Infosystems' net profit rose 16.10% to Rs 66.76 crore on 7.10% decline in net sales to Rs 2793.83 crore in Q3 March 2010 over Q2 December 2009.

Source http://beta.profit.ndtv.com/news/show/hcl-infosystems-spurts-on-overseas-acquisition-81619

Read more at: http://beta.profit.ndtv.com/news/show/hcl-infosystems-spurts-on-overseas-acquisition-81619?cp

Sensex loses 143 points

The markets ended the day lower with all key benchmark indices including mid-cap, small-cap and the broad-based BSE-500 closing in the red.

Oil and gas (1.7%), metals (1.2%) and banking (1%) were the biggest losers among sectoral indices. IT stocks closed marginally higher and the BSE consumer durables index stayed in the green.

Sensex closed at 17,471.03, down 143.4 points or 0.8% while the Nifty ended at 5,241.1, down 47.95 points or 0.9%. While sensex and the Nifty opened marginally higher, they soon slipped amidst subdued global cues.

Source http://timesofindia.indiatimes.com/biz/india-business/-Sensex-loses-143-points/articleshow/6141181.cms

Corporate tax collections rise 21.7% in Q1

The government’s corporate tax collections grew a strong 21.7% in the first quarter of the current fiscal, confirming that economic recovery was beginning to translate into better profits for companies.

The Sensex was up 1% on the expectation of improved corporate performance.

Overall direct tax collections were up 15% to Rs 68,675 crore in the April-June quarter, data released by the finance ministry on Tuesday showed. India’s manufacturing had grown a strong 19.4% in April, suggesting a strong industrial recovery.

Corporate tax collections for the quarter added up to Rs 43,439 crore while personal income tax grew marginally by 1.24% to Rs 24,075 crore.

However, part of the buoyancy in direct tax collections was due to the base effect. Hit by the slowdown , corporate tax collections had grown only 3.3% in the first quarter of last fiscal while personal income tax had grown 4.4%.

The government has budgeted an overall tax mop-up of Rs 7.46 lakh crore during this fiscal, out of which Rs 4.3 lakh is to be realised from direct taxes, an increase of 13% over the amount realised last year.

The robust tax collection will help the government prune its fiscal deficit even more. It is already sitting on a Rs 65,000 crore excess windfall from 3G and broadband auction.

The fiscal deficit for current year is pegged at 5.5% of GDP. Better then budgeted realisation will help reduce government borrowing, leaving more funds for the private borrowers.

However, the realisation from the securities transaction tax (STT) declined to Rs 1,094 crore, from Rs 1,462 crore in the first quarter of previous fiscal reflecting possibly lower volumes because of the volatility in the stock market.

Advance tax collection in the first quarter was up by 31.4% to Rs 26,876 crore as against Rs 20,456 crore in the same period last fiscal.

Source http://economictimes.indiatimes.com/news/economy/finance/Corporate-tax-collections-rise-217-in-Q1/articleshow/6137144.cms

Shell-shocked investors dump RNRL

In a mega Rs 50,000-crore deal, Anil Ambani group announced merger of RNRL with Reliance Power.

Traders and investors in Reliance Natural Resources, or RNRL, watched in dismay on Monday as more than a fourth of the company’s market capitalisation was wiped out in what is being seen as a strong response to an unfavourable share-swap ratio with group firm Reliance Power.

The stock crashed 27% to close at Rs 46.40 as investors reacted to Sunday’s announcement that shareholders of RNRL would get one share in Reliance Power, also controlled by billionaire Anil Ambani, for every four shares they hold in the natural gas supplier. Most RNRL shareholders and analysts had counted on a swap ratio of one share of Reliance Power for every three they held in RNRL.

RNRL’s fall on Monday figures high in the list of stocks that have been pummelled the most in a single trading session. Realty firm Unitech is perched on top with its stock having slid 51% in October 2008 followed by Chennai-based pharma company Orchid, which slumped 39%.

Brokers say the stock could be under further pressure in the near term as many traders have heavily short sold the July futures. In short selling, an investor or trader sells a stock he does not own, betting on buying it later when the price slides.

Interestingly, the outstanding positions in RNRL July futures declined 7% while the futures closed at a premium of Rs 0.15 to the spot price. According to market participants, this indicates that many traders had squared off their short positions by purchasing the falling futures. They added these traders would have short sold the futures last week, in anticipation of an unfavourable merger ratio.

'RNRL shareholders stand to gain'

These traders are upset at what they reckon is an attempt by promoters to place their interests ahead of minority shareholders. Promoters control close to 85% in Reliance Power, and about 55% in RNRL.

Reliance Power CEO JP Chalasani told television channels that RNRL shareholders would benefit in the long run because of their exposure to the generation portfolio of R-Power.

At the end of March 31, 2010, there were a little over 25 lakh individual shareholders in RNRL while Reliance Power had close to 35 lakh individual shareholders. In FY10, Reliance Power had a book value of Rs 58.69, and RNRL Rs 11.47. A merger based on book value would have thrown up a swap ratio of 1: 5.

Some market participants say the ratio is not unfair, considering parameters such as book value and business fundamentals.

“If the promoters had strictly gone by book value, RNRL shareholders would have suffered further. Besides RNRL’s existence had been undermined by the recent court (Supreme Court) verdict,” said a BSE broker. What he meant was that after the Supreme Court ruled that the government had the last word in the pricing and distribution of natural gas, RNRL had little reason to exist in its present form. However, veteran brokers on Dalal Street say the merger ratio would have been influenced by minority shareholding in the respective companies.

Source http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/Shell-shocked-investors-dump-RNRL/articleshow/6133048.cms

RBI seen lifting rates at modest pace: DBS

The Reserve Bank of India is seen lifting its key rates at a modest pace to contain inflationary pressures, with another 25 basis point rate increase seen in the July-September quarter, DBS said in a note on Monday.

The Reserve Bank raised interest rates almost a month earlier than expected on Friday, and analysts said it would likely follow up the quarter point hike with another move on July 27, given concerns about inflation above 10%.

"The uncertainties arising from European debt worries and the declining year-on-year inflation prints should keep the central bank from normalizing rates more swiftly," DBS said.

DBS sees one more 25 basis points hike in the repo rate in the July-September quarter with a slightly over 50% chance that it comes in the policy meeting on July 27.

This is expected to be followed by a 50 basis points hikes in the October-December quarter and a 25 basis points hike in the January-March quarter, it added.

DBS expects the corridor between the repo and reverse repo rates to be maintained at 150 basis points and hence both the rates are expected to be lifted in tandem.

"Only short-term OIS rates and gilt yields are likely to rise. Longer-term OIS rates and gilt yields should not increase much, given that the INR yield curves already are extremely steep and all is priced in," DBS said.

Although bond yields and OIS rates are seen under upward pressure, a sharp increase was unlikely as a rate action from the central bank was expected, it added.

Source http://www.moneycontrol.com/news/business/rbi-seen-lifting-rates-at-modest-pace-dbs_467919.html

Srinagar under curfew ahead of proposed march

Sensing trouble ahead of a proposed march by separatists, authorities today brought the entire Srinagar district under curfew even as they gave no relaxation in curfew-hit areas of south Kashmir.

With overnight protests in the city and an abortive attempt by activists of a woman separatist outfit to take out a march to Pather Masjid in defiance of curfew yesterday, District Magistrate, Srinagar, Mehraj Ahmad Kakroo announced imposition of curfew in the entire Srinagar district this morning in a television address.

Curfew was imposed in seven police station areas of old city on June 28 following violent protests over the killing of youths in alleged firing by security forces.

The step to extend curfew was taken ahead of the separatists' plan to organise a march to Eidgah martyrs' graveyard, police said.

Source http://www.ptinews.com/news/758570_Srinagar-under-curfew-ahead-of-proposed-march-

Rupee off 3-week low, seen weak rest of trade

The Indian rupee was off a three-week low touched in early trade on Thursday, on the back of some exporter dollar sales, dealers said.

At 1:05 pm, the partially convertible rupee was at 46.68/69 per dollar, after hitting 46.78/79 – its weakest since June 11 – and compared with 46.45/46 at close on Wednesday.

There was some exporter selling at the low levels, but with stocks being weak and euro also falling against dollar, on net basis rupee is seen weakening further in the day, dealers said.

Indian shares got off to a shaky start to the new quarter, falling 1.1 per cent on Thursday as doubts resurfaced about the global economic recovery and a slower manufacturing growth at home.

The euro hit a lifetime low against the Swiss franc on Thursday, as weaker-then-expected Chinese data added to doubts about the strength of the global recovery, while jitters about funding strains in the euro zone lingered.

The index of the dollar against six major currencies was up 0.2 per cent and would be watched, dealers said.

Downside of the rupee is seen at 46.80 per dollar as exporters may find it a good level to sell, dealers said.

One-month offshore NDF contracts were quoted at 46.83/93, weaker than the onshore spot rate.

In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both at 46.83.

Source http://economictimes.indiatimes.com/markets/forex/Rupee-off-3-week-low-seen-weak-rest-of-trade/articleshow/6114471.cms