Market Chatter — Corporate finance press digest

July 21, 2010 By Leave a Comment

July 20 (Reuters) – The following corporate finance-related stories were reported by media on Tuesday:

* Hoare Govett, the Royal Bank of Scotland’s (RBS.L) corporate brokering business, has won its first FTSE100 client since it was bought by RBS from ABN Amro three years ago, the Financial Times said on Tuesday. [ID:nLDE66J00H]

* AIA, the Asian life insurance unit of American International Group (AIG.N), is seeking backing from potential investors to cut ties with its U.S. parent by listing more than half its equity in the Hong Kong market, the Financial Times said. [ID:nLDE66J00D]

* Kumba Iron Ore (KIOJ.J) may look for other domestic buyers to take extra ore if ArcelorMittal’s South African unit (ISPA.AS) shuts down one of its plants, Business Report newspaper said. [ID:nLDE66I0NM]

* India’s Tata Steel (TISC.BO) has started talks with lenders including Citigroup (C.N) to refinance as much as 3.5 billion pounds ($5.4 billion ) in loans for its British unit, Bloomberg reported, citing six sources with knowledge of the matter. [ID:nSGE66I0LK] (Compiled by Tresa Sherin Morera)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

UPDATE 1-Tata Steel denies $2 bln fund raising report

July 15, 2010 By Leave a Comment

MUMBAI, July 14 (Reuters) – India’s Tata Steel (TISC.BO) on Wednesday denied a media report the company was planning to raise about $2 billion through fresh equity over the next quarter to help fund expansion. “Nothing at this point,” a spokesman told Reuters when asked about fund raising plans. Citing unnamed bankers, the Financial Chronicle newspaper on Wednesday reported the steelmaker was looking to raise funds either by selling shares to institutions or through an issue of global depositary receipts. [ID:nSGE66D03D]

The company had sounded out investment banks to finalise a lead arranger for the offering, it said.

Tata Steel is the world’s 7th largest steelmaker by output, according to the World Steel Association rankings released on Tuesday, up from the eighth spot.

In May, Tata Steel’s finance head, Koushik Chatterjee, had said the company was looking at options to raise equity and was seeking long-term funds for steel projects, mainly to raise capacity in India, where demand is growing in double digits.

Subsequently, its board approved issuing up to 15 million shares and 12 million convertible warrants to founder Tata Sons on a preferential basis, with the price to be decided later.

Tata Steel, which bought Europe’s second-largest steelmaker Corus in 2007, raised $500 million last July by listing global depositary receipts (TISCq.L) on the London Stock Exchange to expand in India and in the United Kingdom. [ID:nBOM19179]

The company’s gross debt stood at $12.9 billion at end of last December.

Shares in Tata Steel, valued at $9.7 billion by the market, were trading 0.9 percent higher by 0630 GMT, in a Mumbai market .BSESN up 0.5 percent. The stock had risen as much as 2.2 percent in opening trades. (Reporting by Surojit Gupta and Prashant Mehra; Editing by Ranjit Gangadharan)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Tata Steel denies $2 bln fund raising report

July 15, 2010 By Leave a Comment

July 14 (Reuters) – India’s Tata Steel (TISC.BO), the world’s No. 8 steelmaker, on Wednesday denied a media report the company was planning to raise about $2 billion through fresh equity over the next quarter to help fund expansion. “Nothing at this point,” a Tata Steel spokesman told Reuters when asked about fund raising plans. The Financial Chronicle newspaper had reported citing bankers familiar with the development, the steelmaker had sounded out investment banks to finalise a lead arranger for the offering. [ID:nSGE66D03D] (Reporting by Surojit Gupta; Editing by Ranjit Gangadharan)

Filed Under: International News Tagged With: , , , , , , , , , , , ,

Tata Steel says Corus chief to step down from Oct 1

June 29, 2010 By Leave a Comment

June 27 (Reuters) – The head of Tata Steel’s (TISC.BO) European unit Corus is to step down later this year, the company said on Sunday.

Basic Materials

It said Kirby Adams, managing director and chief executive of Corus, Europe’s second largest steel producer, will step down from Oct 1, 2010 and will be replaced by Karl-Ulrich Kohler, currently chief operating officer at the subsidiary and a former head of Germany’s ThyssenKrupp Steel (TKAG.DE).

Adams “has decided to step down from his executive roles and return to Australia, having successfully initiated a restructuring of the company and restored profitability,” the world’s eighth biggest steelmaker said in a statement.

Adams will remain available to Tata Steel in an advisory capacity, it added.

Tata Steel’s European operations account for two thirds its global capacity of about 30 million tonnes, while the booming Indian operations contribute a quarter. Tata Steel also has units in Thailand and Singapore. (Reporting by Aniruddha Basu; Editing by Greg Mahlich)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Indian shares drop 0.5 pct; financials fall

June 26, 2010 By Leave a Comment

MUMBAI, June 25 (Reuters) – Indian shares fell on Friday
with financials leading the losses in tandem with world markets
on expectations of tighter financial regulation ahead of the
weekend G20 meeting and uncertainty about the global economic
recovery.

By 11:21 a.m. (0551 GMT), the 30-share BSE Index .BSESN
was trading down 0.5 percent at 17,641.47 points, with
two-thirds of its components declining.

“The state of affairs overseas are pretty confusing. We do
not know if the worst is over for Europe,” Manish Sonthalia,
who manages $200 million of assets at brokerage Motilal Oswal.

Foreign funds have invested around $1.7 billion so far in
June and helped the BSE index rise 4 percent in the period, but
traders were wary about the outlook because of uncertainties in
the euro zone and elsewhere.

In May, foreigners had pulled out $2 billion in the wake of
fiscal troubles in Europe.

Differences among G20 leaders ahead of a summit in Toronto
over how to secure the economic recovery caused investor
concern, particularly with leading indicators reflecting a
slowdown ahead. [ID:nN24260273]

Leading lender State Bank of India (SBI.BO) dropped 0.9
percent, while rivals ICICI Bank (ICBK.BO) and HDFC Bank
(HDBK.BO) were down 1.7 percent each.

The financials were also weighed down after data on
Thursday showed food inflation in Asia’s third-largest economy
accelerated in mid-June, maintaining pressure on the central
bank to tighten monetary policy at a faster pace.
[ID:nSGE65N07G]

Energy giant Reliance Industries (RELI.BO), which has the
highest weight on the Sensex, was down 0.4 percent at 1,046.90
rupees.

IT bellwether Infosys Technologies (INFY.BO) shed 1.1
percent after rising 1.8 percent over two previous sessions.

Metal makers were trading lower as London copper futures
MCU3=LX fell.

Non-ferrous metals producer Sterlite Industries (STRL.BO)
and aluminium maker Hindalco (HALC.BO) dropped 2.2 percent and
0.9 percent respectively.

Tata Steel (TISC.BO), the world’s eighth-largest steelmaker
by output, declined 0.9 percent.

“On the domestic front, the situation is not worrying.
Monsoon is a bit below normal but hopefully things should
improve,” Sonthalia said.

Monsoon rains, vital to India’s trillion-dollar economy,
were 21 percent below normal in the week to June 23, reflecting
slow progress since the season began in June. [ID:nSGE65N03X]

Still, market participants are upbeat on the outlook for
the rest of the year because of a pick-up in economic growth.

The BSE index should gain 7 percent to 19,000 points by the
end of 2010 from Thursday’s close, the median estimate in a
Reuters poll of 20 market participants showed, while 17
forecast it rising over 18 percent by the end of June 2011 to
21,000. [ID:nSGE65L0GF]

In the broader market, losers almost equalled the number of
gainers on volume of 154 million shares.

The 50-share NSE index down 0.6 percent at
5,291.10.

STOCKS ON THE MOVE

* Bharti Airtel (BRTI.BO) rose 0.6 percent to 264.75 rupees
after India’s top mobile operator said it would spend $150
million to improve its network in Zambia, as it challenges MTN
Group (MTNJ.J) for dominance in fast-growing Africa.
[ID:nLDE65N1YE]

* Suzlon Energy (SUZL.BO) was up 0.6 percent at 58.05
rupees after the wind turbine maker said it had received a
48.3-megawatt order from a Chinese wind power producer.
[ID:nBMA007896]

MAIN TOP 3 BY VOLUME

* Reliance Natural Resources (RENR.BO) on 5 million shares

* GTL Infrastructure (GTLI.BO) on 4.6 million shares

* Mahindra Satyam (SATY.BO) on 2.2 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee report
[INR/]
* Indian bond report
[IN/]
* Yen near 1-month high vs dollar on quarter flows
[FRX/]
* Oil falls with equities; Caribbean storm brews
[O/R]
* Asia stocks dip ahead of G20, dollar steady
[MKTS/GLOB]
* Market sinks on fragile recovery fears
[.N]
* For closing rates of Indian ADRs
INADR

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Indian shares up 0.3 pct; metals, Reliance up

June 25, 2010 By Leave a Comment

MUMBAI, June 24 (Reuters) – Metal makers led Indian shares
0.3 percent higher on Thursday, helped by a jump in base metal
prices in London and rising domestic demand. Firmer Asian
equities also underpinned the market.

A strong pick-up in foreign fund buying spurred
short-sellers to cover their positions in monthly derivatives
on the National Stock Exchange that expire on Thursday, traders
said.

Reliance Industries (RELI.BO), which has the heaviest
weight in the main index, was trading up 0.4 percent at
1,063.25 rupees after it struck a $1.36 billion deal to develop
shale assets of Pioneer Natural Resources (PXD.N), boosting its
presence in the U.S. shale gas sector. [ID:nSGE65N06C]

By 11:26 a.m. (0556 GMT), the 30-share BSE index .BSESN
was trading up 0.27 percent at 17,803.44, with 21 of its
components gaining.

“There is short-covering due to expiry. Rollovers have been
good,” said Gajendra Nagpal, CEO of Unicon Financial. He said
with foreign funds turning net buyers the outlook had improved.

Foreigners have bought around $1.7 billion of India
equities so far this month, and helped the benchmark index rise
more than 5 percent in the period.

In May, they had dumped shares worth $2 billion as euro
zone’s fiscal troubles rattled investors.

Tata Steel (TISC.BO), which ranks eighth amongst global
steel makers, was trading up 1 percent, while non-ferrous
metals producer Sterlite Industries (STRL.BO) rose 1.4 percent
on firming metal prices.

London copper jumped aided by strong Japan output data and
technical factors as it chases a peak touched earlier this
week. [ID:nSGE65N00T]

Engineering and construction conglomerate Larsen & Toubro
(LART.BO) was up 1.5 percent, after dropping more than 4
percent over two previous sessions.

Auto companies advanced on expectations for robust sales
for June, dealers said.

Tata Motors (TAMO.BO) was up 0.5 percent, while Mahindra
and Mahindra (MAHM.BO) and Hero Honda (HROH.BO) rose 0.6
percent and 0.4 percent respectively.

In the broader market, gainers beat losers in a ratio of
2.6:1 on volume of 159 million shares.

The 50-share NSE index was up 0.3 percent at
5,338.85.

STOCKS ON THE MOVE

* Kotak Mahindra Bank (KTKM.BO) shed 2.2 percent to 766
rupees as Dutch financial services group ING (ING.AS) sold its
3.1 percent holding in the bank. [ID:nWEA7349] [ID:nSGE65N057]

* Edelweiss Capital (EDEL.BO) was up 1.6 percent at 523.10
rupees after the company said its board approved a one-for-one
bonus and five-for-one stock split.

* IT services firm HCL Technologies (HCLT.BO) was down 4.4
percent at 357 rupees, after 16.9 million shares or 2.5 percent
of equity changed hands through a series of block deals on
Bombay Stock Exchange at an average price of 357.83 per share.

MAIN TOP 3 BY VOLUME

* HCL Technologies on 25.9 million shares

* Suzlon Energy (SUZL.BO) on 3.4 million shares

* Mahindra Satyam (SATY.BO) on 2.7 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee report
[INR/]
* Indian bond report
[IN/]
* Dollar dips; Aussie inches up on new PM
[FRX/]
* Oil steadies; Fed, equity gains soothe
[O/R]
* Asian stocks gain on miners, dollar down
[MKTS/GLOB]
* S&P, Nasdaq dip, Dow up after Fed comments, home sales
[.N]
* For closing rates of Indian ADRs
INADR

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Indian shares drop 0.4 pct; Infosys, Sterlite down

June 23, 2010 By Leave a Comment

MUMBAI, June 22 (Reuters) – Indian shares eased 0.4 percent
on Tuesday as investors took a breather after a 5.5 percent
rally over three weeks. Infosys Technologies (INFY.BO) and
Sterlite Industries (STRL.BO) led the decline.

“Investors are booking profits after the recent rally,”
said Kunal Sukhani, manager of institutional equities at
brokerage Asian Markets Securities.

“The trend should continue ahead of expiry on Thursday,” he
said, referring to the monthly derivative contracts on the
National Stock Exchange.

By 10:28 a.m. (0458 GMT), the 30-share BSE index .BSESN
was trading down 0.42 percent at 17,801.47 points, after rising
to a 2-½ month closing high in the previous session.

Two-third of its components were trading in the red.

Traders said the market was following the trend in other
Asian bourses that retreated as investors took profits from a
rally spurred by China’s weekend decision to give its currency
more flexibility.

Foreign funds have bought shares worth $1 billion so far in
June, after withdrawing $2 billion last month.

Infosys, the country’s No. 2 software services firm, was
down 0.9 percent after rising 2.4 percent over previous four
sessions. Tata Consultancy Services (TCS.BO) and Wipro
(WIPR.BO) were down 1.1 percent and 1.3 percent respectively.

Metals stocks pulled back after the bounce on Monday.
Non-ferrous metals producer Sterlite Industries and aluminium
maker Hindalco (HALC.BO) dropped 2.5 percent and 2.5 percent
respectively.

Tata Steel (TISC.BO), the world’s eighth largest
steelmaker, was down 1.4 percent.

The BSE metal index .BSEMET shed 1.6 percent after
jumping 5.2 percent on Monday.

In the broader market, gainers and losers were almost equal
in number on volume of 130 million shares.

The 50-share NSE index was down 0.4 percent at
5,332.85.

STOCKS ON THE MOVE

* Yes Bank (YESB.BO) was down 3.1 percent at 273.10 rupees,
after a source told Reuters Dutch lender Rabobank [RABO.UL]
sold about 11 percent in the private sector bank.
[ID:nSGE65L05H]

* MTNL (MTNL.BO) was up 2.8 percent at 65.50 rupees after
the Financial Express said Reliance Industries (RELI.BO) was in
initial talks with the state-run telecom firm to market its 3G
services as a franchisee. [ID:nSGE65L03K]

* Cox and Kings India (COKI.BO) rose 2.7 percent to 508.60
rupees after a senior official said the travel operator was
seeking shareholder approval to raise up to 20 billion rupees
via equity and debt to fuel its growth plans including domestic
and overseas acquisitions. [ID:nBMB010848]

MAIN TOP 3 BY VOLUME

* Yes Bank on 38.5 million shares

* Hindustan Motors (HMTR.BO) on 5.6 million shares

* IFCI (IFCI.BO) on 3.8 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee report
[INR/]
* Indian bond report
[IN/]
* Euro, Aussie pare post-yuan fixing gains
[FRX/]
* Oil falls as yuan impact on China imports seen limited
[O/R]
* Asia stocks fall as yuan euphoria fades
[MKTS/GLOB]
* Wall St ends lower as China yuan euphoria fades
[.N]
* For closing rates of Indian ADRs
INADR

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

ICICI Venture hires former Babcock India chief

June 18, 2010 By Leave a Comment

June 17 (Reuters) – ICICI Venture, the private equity arm of No. 2 Indian lender ICICI Bank (ICBK.BO), has hired Manikkan Sangameswaran, former chief of Babcock & Brown Infrastructure’s BBI.AX India unit, to head its infrastructure business.

Private Capital | Financials

Sangameswaran will head the private equity arm’s soon-to-be-launched infrastructure fund, ICICI Venture Chief Executive Vishakha Mulye said. [ID:nSGE64A0DN].

ICICI Venture also appointed Partha Dey, the head of ICICI Bank’s project finance business, to the fund.

Prior to his role in Babcock, Sangameswaran was the head of ABN Amro’s mergers and acquisition business in India. He was also part of some of the largest M&As involving Indian companies including Tata Steel’s acquisition of Corus. (Reporting by Indulal P.M.; Editing by Unnikrishnan Nair)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , ,

Indian shares at 1-½ mth high; financials lead

June 17, 2010 By Leave a Comment

MUMBAI, June 16 (Reuters) – Indian shares climbed to their
highest in one-and-a-half months on Wednesday as investors
focused on the rapidly growing economy, with concerns easing
about the debt problems in Europe.

The market has been underpinned by a revival in buying by
foreign funds as risk appetite returned globally, traders said.

Financials were among the big gainers after higher
quarterly tax payments by companies reinforced expectations for
robust earnings growth and greater demand for loans.

Leading truck and bus maker Tata Motors (TAMO.BO), which
also makes cars, raced 2.4 percent after the company said late
on Tuesday global vehicle sales in May jumped 50 percent from a
year earlier. [ID:nBMA007844]

By 10:42 a.m. (0512 GMT), the 30-share BSE index .BSESN
was trading up 0.31 percent at 17,466.70, with 18 of its
components gaining.

The benchmark rose as high as 17,530.38 early, climbing
past 17,500 for the first time since May 3.

“Mostly higher advance tax figures and firm global markets
are driving our market higher,” said Surekha Joshi, senior
dealer for institutional equities at SPA Securities.

A government source told Reuters on Tuesday Reliance
Industries (RELI.BO) and Tata Motors paid double the advance
tax for the June quarter than a year before while Tata Steel’s
(TISC.BO) payment was 30 percent higher. [ID:nSGE65E0I0]

Foreign funds have moved about $439 million into Indian
equities in June after pulling out nearly $2 billion in May.
The revival in inflows has lifted the main index nearly 3
percent.

Ambareesh Baliga, vice-president of Karvy Stock Broking,
said foreigners were returning but there was still some worry
about possible adverse newsflow from the euro zone.

Leading lender State Bank of India (SBI.BO) was up 0.1
percent while rivals ICICI Bank (ICBK.BO) and HDFC Bank
(HDBK.BO) rose 0.5 percent and 0.8 percent respectively.

Export-focused software companies rose on improving order
visibility, dealers said.

Sector leader Tata Consultancy Services (TCS.BO) rose 1.2
percent while Infosys (INFY.BO) and Wipro (WIPR.BO) climbed 0.7
percent and 1.3 percent respectively.

Energy giant Reliance Industries (RELI.BO), which has the
highest weight on the Sensex, shed 0.3 percent after rising
nearly 7 percent in the last five sessions.

In the broader market, gainers were nearly double the
number of losers on volume of 129 million shares.

The 50-share NSE index was up 0.1 percent at
5,227.40.

STOCKS ON THE MOVE

* Metal makers such as Sterlite Industries (STRL.BO) and
Hindalco (HALC.BO) firmed 2.8 percent and 1.4 percent
respectively as London base metal prices rallied.
[ID:nSGE65F01E]

* Cairn India (CAIL.BO) was up 1.6 percent at 310.05 rupees
after the oil explorer said late on Tuesday it began selling
crude through pipeline from its Rajasthan block. [ID:nWNBS0337]

* State-run oil marketing companies Bharat Petroleum
(BPCL.BO), Hindustan Petroleum (HPCL.BO) and Indian Oil Corp
(IOC.BO) were down between 1 percent and 1.8 percent as crude
oil prices topped $77 per barrel.

These companies are forced to sell fuel products at
mandated discounts.

MAIN TOP 3 BY VOLUME

* Reliance Natural Resources (RENR.BO) on 13.2 million
shares

* IFCI (IFCI.BO) on 2.4 million shares

* Unitech (UNTE.BO) on 2.2 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee report
[INR/]
* Indian bond report
[IN/]
* Euro takes a break, high-yielders firm but pausing
[FRX/]
* Oil tops $77, tracks rising equities, risk appetite
[O/R]
* Asian stocks up, investors cheered by Europe
[MKTS/GLOB]
* Wall St jumps as S&P 500 breaches key level
[.N]
* For closing rates of Indian ADRs
INADR

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Research and Markets: India- Business Opportunities in the Mining Sector 2010: In 2008 Iron and Steel Sales Generated Total Revenues of $64.7 Billion

June 17, 2010 By Leave a Comment

DUBLIN–(Business Wire)–
Research and Markets
(http://www.researchandmarkets.com/research/9fb96e/india_business_o) has
announced the addition of the “India Business Opportunities in the Mining Sector
2010″ report to their offering.

The metals and mining industry consists of the aluminium, iron and steel,
precious metals and minerals, coal and base metal markets. In the aluminium
market, only production of primary aluminium is considered. Recycled aluminium
is not included within this report. The market is valued at manufacturer’s
selling price (MSP). The base metals market consists of lead, zinc, copper,
nickel and tin.

The Indian metals and mining industry generated total revenues of $87.5 billion
in 2008, representing a compound annual growth rate (CAGR) of 22.9% for the
period spanning 2004-2008.

Iron and steel sales proved the most lucrative for the Indian metals and mining
industry in 2008, generating total revenues of $64.7 billion, equivalent to 74%
of the industry’s overall value.

Key Topics Covered:

1. Executive Summary

2. India Mining Sector – 2010

3. India Metals & Mining Market Segmentation, By Metal & Mining Types

4. India Metals & Mining Sector An Demand Analysis

5. India Metals & Mining Sector An Competitive Analysis

6. India Metals & Mining Sector Market Players Profiles

Companies Mentioned:

* Tata Steel
* Steel Authority of India Limited
* Coal India Limited

For more information visit

http://www.researchandmarkets.com/research/9fb96e/india_business_o

Research and Markets
Laura Wood, Senior Manager
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

Copyright Business Wire 2010

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

New Millennium Capital says Tata Steel may raise stake

June 10, 2010 By Leave a Comment

(Reuters) – India’s Tata Steel (TISC.BO) may further increase its stake in New Millennium Capital Corp (NML.V), a top executive at the Canadian miner said.

Deals

On Tuesday, Tata Steel, the world’s eighth-largest steel producer, raised its holding in New Millennium to 27.4 percent from 19.8 percent, after having initially bought a stake in October 2008.

“I think Tata would like to increase its stake to at least 33 percent, which would give them a blocking position,” New Millennium Capital Chief Executive Robert Martin told Reuters.

“Right now our company has a relatively low market capitalization. Tata has done a lot of work and they would want to protect themselves so that somebody else cannot come in and make some kind of a takeover bid,” Martin said.

When contacted, Tata Steel declined to comment.

“I am not saying that they will (increase stake),” Martin said. “If I was them, I would want to increase my stake high enough so that I could protect myself from a hostile takeover.”

As of Tuesday, New Millennium had a market capitalization of about C$130.4 million ($124.5 million), based on 133 million shares outstanding, according to Thomson Reuters data.

Tata Steel bought 14.3 million shares in New Millennium for C$20 million, or C$1.40 a share, a premium of more than 40 percent to the stock’s close on Monday.

Martin said New Millennium had enough cash, but if it needed to raise funds, it would most likely do so through a private placement with Tata Steel.

“We could do a private placement with them at a premium, while one with any other group would be done at a discount,” Martin said, adding that he would expect a premium of about 30 percent.

In November last year, Tata Steel’s unit had signed a joint venture deal with New Millennium Capital and LabMag to develop an iron ore project in Canada.

Martin said the joint venture has not been formed yet, but once Tata Steel approves the project, the company expects the Indian company to invest the full C$300 million as planned.

($1=1.047 Canadian Dollar)

(Reporting by Aftab Ahmed; Editing by Gopakumar Warrier)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Naxal strikes to take a toll on economy

May 29, 2010 By Leave a Comment

Incessant Maoist violence is threatening to take a direct toll on the economy. The Indian Railways is considering a proposal to suspend night operations of trains in five Naxal-infested states of Jharkhand, Chhattisgarh, Orissa, Bihar and West Bengal till the situation improves perceptibly. The proposal is being discussed in the light of the latest Naxalite attack on a train in West Bengal’s West Midnapore district, which killed 76 persons and injured 200. The early morning attack is the latest in a series of massive casualties inflicted by the insurgents.

“We are discussing a proposal for suspending railway operations during night time in Orissa, Bihar, West Bengal, Jharkhand and Chhattisgarh. A decision will be taken shortly,” Railways’ member (traffic) Vivek Sahai said.

If the Railways stops night operations, scores of industries supplying and using coal, iron ore and steel will be hit hard. These three commodities account for about 60% of the total freight volume handled by the Railways, and the bulk of these are transported across the five Naxal-affected states.

The Railways’ plan would also affect the big-ticket steel plants proposed by Posco, Tata Steel and ArcelorMittal in Orissa and Jharkhand.

The projects, entailing aggregate investments of Rs 1,70,000 crore, are already in limbo for the last few years due to delays in land acquisition and problems with environmental clearances. While the Posco project got the forest clearance in December last year, the Korean company is still facing serious problems in land acquisition.

Curtailment of railway operations in the mineral-rich states would also adversely affect the functioning of steel plants which have limited or no captive resources of the mineral. It would also curb iron ore exports. West Midnapore incident was the 32nd case of Naxal violence in 2010, of which 21 have been bomb blasts. Last year, railway properties were targeted 58 times, including 22 bomb blasts.

However, some railway officials were sceptical of the move, saying it is unusual of the Railways to stop the running of trains. “Railways may be acting in panic. If we do so, we are showing the detractors that we cannot handle our operations. Instead, we should continue working as usual. The matter has to be discussed in detail,” a senior official told FE requesting anonymity.

“The Railways seems to be concerned about security, but it should handle the issue at the security level, rather than stopping operations. The industry should not be taken for a ride, especially when the transportation of commodities is already facing hindrance due to inadequate infrastructure. This is definitely not a positive measure,” CARE Ratings’ managing director DR Dogra told FE.

The five states are hubs for mining coal and iron ore and production of steel. Coal India, which produced 87% of India’s total coal output of 531 million tonne in 2009-10, has its mines located in the Naxal-affected areas of the country. SAIL and Tata Steel too have plants in these states. In the case of iron ore, these areas contribute nearly 900 million tonne of the mineral used by steelmakers and other industries.

Railways’ move is also likely to impact its earnings from freight and passenger transport. The national transporter registered a 7% rise in freight volume in 2009-10 to 888 million tonne, earning close to Rs 58,000 crore. More than 58% of the total freight revenue came from transporting coal, iron ore and steel. The Railways aims at transporting 944 million tonne of commodities in 2010-11.

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

BSE Sensex up 1.3 pct; Ambanis’ firms rally

May 24, 2010 By Leave a Comment

The BSE Sensex rallied more than 1 percent on Monday, with companies controlled by the billionaire Ambani brothers among the big gainers after they moved towards resolving a long-running strife.

Both the groups said they aim to reach a conclusion soon for a gas supply agreement between Reliance Industries and Reliance Natural Resources that had been at the heart of their dispute.

Mukesh Ambani-led Reliance Industries, which has the highest weight on the BSE Sensex climbed 3.6 percent.

Reliance Natural Resources, controlled by Anil Ambani, jumped 21 percent while other group companies Reliance Infrastructure, Reliance Communications rose 7 percent and 5.8 percent respectively.

The benchmark, which fell 3.2 percent last week, is down 4.6 percent so far this year and traders were uncertain about the outlook.

“In the near term, the outlook for Indian market remains uncertain,” said Anish Marfatia, head of sales trading at Avendus Securities. “We are still not out of the woods. The Europe and China overhang remains.”

Foreign funds have pulled out around $1.5 billion from Indian equities so far this month, which has been a drag for the market.

In the broader market, gainers were four times the number of losers on volume of 101 million shares.

The 50-share NSE index was up 1.3 percent at 4,995.75.

STOCKS ON THE MOVE

* Metal makers Sterlite Industries, Hindalco and Tata Steel rose between 1.7-2.3 percent, as Shanghai copper and aluminium prices rallied.

* Godrej Consumer Products was up 3.2 percent at 331 rupees after the personal care products maker said on Sunday it would buy South America-based unlisted hair care products maker Issue Group.

MAIN TOP 3 BY VOLUME

* Reliance Natural Resources on 8.9 million shares

* Adani Enterprises on 5.3 million shares

* Bank of Rajasthan on 2.5 million shares

(Reporting by Ami Shah; Editing by Ranjit Gangadharan)

(For more business news on Reuters Money visit http://www.reutersmoney.in)

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Hari Bhartia takes over as new CII president, Muthuraman elected vice-president

May 12, 2010 By Leave a Comment

New Delhi, May 12 (ANI): Mr Hari S Bhartia, Co-Chairman and Managing Director of Jubilant Organosys Ltd has been elected as the President of CII for the year 2010-11. He succeeds Mr Venu Srinivasan as the new CII President.

A chemical engineering graduate of the Indian Institute of Technology, Delhi, Mr. Bhartia has been conferred Distinguished Alumni award by Indian Institute of Technology, Delhi in the year 2000.
Recently, he was awarded the ‘BioSpectrum- Person of the Year’ 2009.

Mr. Bhartia is married to Kavita, who is a leading fashion designer and retailer, and they have a daughter Aashti 26 years and son Arjun 22 years.

Mr. B Muthuraman, Vice Chairman, Tata Steel, has been elected as the Vice President of CII for the year 2010-11.

A B.Tech in Metallurgical Engineering from IIT Madras, he also holds MBA degree from XLRI Jamshedpur, and underwent an Advanced Management Programme from (CeDEP/INSEAD).

Mr. Muthuraman is recipient of several prestigious awards like Distinguished Alumnus Award, IIT Madras (1997),Tata Gold Medal, Indian Institute of Metals (2002), CEO of the Year Award, IIMM (2002), National HRD Network Pathfinders Award 2004 in the CEO Category, CEO of the year, 2005, 2009 IIM-J R D Tata Award for ‘Excellence in Corporate Leadership, in Metallurgical Industries’ from The Indian Institute of Metals, besides many others.

He is an avid reader and a keen cricket and golf enthusiast. (ANI)

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Indian shares drop; financials, metals down

April 9, 2010 By Leave a Comment

* Weak global markets, rate worries weigh

* Investors cautious after main index hit 25-mo-high on Wed

* Weekly food, fuel price inflation due around 0630 GMT
(Updates to morning)

MUMBAI, April 8 (Reuters) – Financials dragged Indian
shares lower on Thursday as world equities fell on Greece’s
fiscal woes and on concerns U.S. interest rates would not stay
at their current lows for much longer.

Investors were also cautious after the main index had hit a
25-month-high in the previous session, while inflation
pressures pointed to another interest rate increase this month
after a surprise hike in March.

By 11:10 a.m. (0540 GMT), the 30-share BSE index .BSESN
was trading down 0.37 percent at 17,903.10, with 22 of its
components declining.

“It is all because of global cues,” said Neeraj Dewan,
director of Quantum Securities, adding that it was a pause.

He said the market had already priced in good March quarter
results, but the rally still had legs.

“If the results spring positive surprises, we may see the
market rising by more than 3-5 percent,” he said.

The benchmark index had risen for four days in a row to
Wednesday, when it struck the highest level since February
2008.

It is up 2.5 percent this year after jumping 81 percent in
2009, boosted by foreign fund inflows of around $5 billion
since the start of January.

Top lender State Bank of India (SBI.BO) was down 0.4
percent, while rivals ICICI Bank (ICBK.BO) and HDFC Bank
(HDBK.BO) dropped 1 percent each. Mortgage lender Housing
Development Finance Corp (HDFC.BO) shed 1.2 percent.

Investors will be watching weekly food and fuel price
inflation due around noon (0630 GMT), which will provide clues
to the central bank’s monetary policy meeting on April 20 that
is expected increase interest rates.

Non-ferrous metals maker Sterlite Industries (STRL.BO) and
aluminium maker Hindalco (HALC.BO) dropped 1.1 percent and 0.5
percent respectively as base metal prices declined in London
[ID:nSGE63705F]

Tata Steel (TISC.BO), the world’s eighth-largest steel
maker by output, was down 0.9 percent.

Tata Motors (TAMO.BO) fell 1.4 percent after the top
vehicles maker said late on Wednesday that one of its
ultra-cheap Nano cars caught fire. [ID:nSGE6360KI]

“The incident has impacted the stock price because Nano is
a prestigious project for Tatas,” said Dewan. “The financial
impact though will not be significant.”

In the broader market, gainers led losers in a ratio of
1.7:1 on volume of 162 million shares.

There was more action in the mid-cap stocks, with the
sector index bucking the trend and rising 0.4 percent.

The 50-share NSE index was down 0.4 percent at
5,355.35.

STOCKS ON THE MOVE

* State-run oil marketing companies such as Indian Oil Corp
(IOC.BO), Bharat Petroleum Corp (BPCL.BO) and Hindustan
Petroleum Corp (HPCL.BO) rose between 0.5 percent and 1.5
percent, as oil prices fell for the second day.

* United Spirits (UNSP.BO), the world’s second-largest
spirits maker by volume, was up 1.9 percent at 1,360 rupees,
after a top official told Reuters the company was looking to
expand into south-east Asia, Africa and the Middle East.
[ID:nSGE6360IT]

* Media firm Jagran Prakashan (JAGP.BO) rose nearly 2
percent to 124.30 rupees, after its CFO R.K. Agarwal told
television channel CNBC-TV18 that it was in talks with Mid-Day
Multimedia (MIDD.BO) for a “strategic alliance”.
[ID:nBMB010186]

Mid-day Multimedia was up 9.8 percent to 35.75 rupees.

MAIN TOP 3 BY VOLUME

* Ballarpur Industries (BILT.BO) on 4.2 million shares

* Pipavav Shipyard (PIPA.BO) on 3.9 million shares

* Shree Ashtavinayak (SACV.BO) on 3.1 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* India rupee report
[INR/]
* India bond report
[IN/]
* Euro grinds towards March low; Aussie firm on jobs
[FRX/]
* Oil falls 2nd day as dollar, U.S. crude inventories up
[O/R]
* Asia stocks down after strong gains; euro off
[MKTS/GLOB]
* Wall St slides on rate angst; airlines up late
[.N]
* For closing rates of Indian ADRs
INADR
(Reporting by Ami Shah; Editing by Ranjit Gangadharan)

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Tata says search underway for successor – WSJ

November 19, 2009 By Leave a Comment

Tata conglomerate is looking around the world for a successor to Ratan Tata, the 71-year old chairman of the sprawling salt-to-steel group said in an interview with the Wall Street Journal published on Wednesday.

Local and foreign candidates were being looked at to head the group, which includes Tata Motors, Tata Steel, Tata Consultancy Services and Tata Power among its 27 listed companies

“We are in the process of formalising a successor to me. We have some outside consultants and a formal search process is on. There are no constraints,” Tata, who has steered the group for nearly two decades, said in the interview.

The successor could be from within the group or outside, Tata said, adding he hoped the person would carry on the growth path that had been set. All but one of the group’s past chairmans have been Tatas, although at the moment no family candidate has been publicly identified to take over the role.

“It would certainly be easier if that candidate were an Indian national. But now that 65 percent of our revenues come from overseas, it could also be an expatriate sitting in that position with justification now,” Tata said.

Tata group’s 98 operating companies have annual revenues of $71 billion and 357,000 employees, its website shows. The group, founded in 1868, runs India’s top vehicle maker, top software services firm, top private sector power producer and the world’s eighth-largest steel maker by output.

Ratan Tata has led the group’s international expansion. In 2007, Tata Steel paid $13 billion to buy Anglo-Dutch steel maker Corus, and Tata Motors paid $2.3 billion to acquire Jaguar Land Rover in 2008.

He said the group was still digesting those acquisitions, which had been made harder due to the global financial crisis and economic downturn. The downturn pushed Tata to ask his group companies to undertake a major cost-cutting drive.

“Tata Motors was able to extinguish its borrowing of $3 billion through this difficult period, and most people don’t realise the magnitude of that task,” he said.

Tata said the conglomerate model would continue to work reasonably well in India despite falling apart in other parts of the world, saying when the group had tried to shed some business it ran into strong objections from employees and the public.

(Reporting by Narayanan Somasundaram; Editing by John Mair)

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Sensex rises by 289 points in early trade

August 25, 2009 By Leave a Comment

Mumbai, Aug 24 (ANI): The Bombay Stock Exchange’s benchmark 30 share Sensex rose by 289 points in early trade on Monday, extending its gaining streak for the third session in a row.

The increase in the early trade is due to the heavy buying by funds, driven by a firming trend in the global markets.

The Sensex shot up by 289.17 points, to mark 15,530.00 with most of the sectoral indices gaining up to 3.12 per cent. The BSE barometer had gained over 430 points in the past two sessions.

Marketers said buying activity in the domestic markets picked up largely on the back of a firming trend at other Asian equity markets.

The Reliance Industries Limited (RIL), which was up by 1.21 per cent to Rs 1,952, Reliance Infra 2.33 per cent at Rs 1,133.50, Reliance Com 1.69 per cent at Rs 252.70, Infosys 1.30 per cent at Rs 2,054.90, Tata Consultancy Services 2.96 per cent at Rs 523.75, Wipro 1.38 per cent at Rs 519, Tata Steel 2.32 per cent to Rs 455.20 and Sterlite Industries 3.71 per cent to Rs 652 gained from the Maonday’s early trade. (ANI)

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Sensex falls below 14,000 level

July 8, 2009 By Leave a Comment

New Delhi July 8 (ANI): The Bombay Stock Exchange (BSE) benchmark index dipped below 14,000 point mark during early trade on Wednesday, due to the heavy selling by funds in heavy-weight stocks, and also weak global markets.

The Sensex, which had gained over 127 points on Tuesday, dipped by 309.93 points, or 2.18 per cent, to 13,860.52 in opening session, a level last seen on May 22.

According to experts, these sentiments were mainly dampened on weak trends on the global markets on concerns that the world economic recovery may not be near as anticipated.

The National Stock Exchange (NSE) index Nifty also declined by 94.60 points, or 2.25 per cent, to 4,107.55.

Reliance Industries which fell by 1.81 per cent to Rs 1,821.75, Reliance communication which fell by 2.64 per cent to Rs 257.75 and Reliance Infrastructure which fell by 2.68 percent to Rs 1,125.20, Infosys Technologies by 0.59 per cent to Rs 1,728.90, ICICI Bank by 2.78 per cent at Rs 675.65 and Tata Steel by 4.81 per cent to Rs 378.95, were among the major losers of early trade. (ANI)

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Tata Steel – Tata Steel arm wins Rs 183.7 mn Chennai water contract

July 1, 2009 By Leave a Comment

Tata Steel – Tata Steel arm wins Rs 183.7 mn Chennai water contract

Jamshedpur Utilities & Services Company (Jusco), a Tata Steel`s 100% subsidiary has won a leak detection and rectification order for various divisions of Chennai city from the Chennai Metropolitan Water Supply & Sewerage Board (CMWSSB) for Rs 183.7 million, reports Financial Express.

The contract is to be completed in 18 months and would be funded 35% by the ministry of urban development, 15% by the Tamil Nadu government under Jawaharlal Nehru National Urban Renewal Mission and 50% by the Chennai Metropolitan Water Supply & Sewerage Board (CMWSSB).

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Anil Ambani group firms among top stock performers

May 25, 2009 By Leave a Comment

Mumbai, May 25 (IANS) Three companies in the Reliance Anil Dhirubhai Ambani Group were among the five top-performing stocks of the S&P CNX Nifty of the National Stock Exchange (NSE) last week, all of them outshining the 50-share index by a wide margin.

With a gain of 52.7 percent, Reliance Capital was the best performer among the Nifty stocks. The broader index itself rose 15.44 percent, in which Infosys turned out to be the worst performer with a net loss of 4.43 percent, data with the bourse showed.

Realty major Unitech came next with 36.65 percent gain, followed by Reliance Infrastructure, up 36.71 percent, Reliance Communication, up 35.85 percent and Tata Steel, up 33.69 percent.

Reliance Industries, which has the largest market capitalisation and belongs to the Mukesh Ambani group, could gain just 12 percent, which was below the 15.44 percent rise logged by Nifty.

Reliance Communications also outperformed the market leader in the telecom market, Bharti Airtel, which moved up just 7.47 percent, as per data with the stock market.

Besides Infosys, the other losers during the week under review were Cipla, down 3.44 percent, Wipro, down 2.18 percent, Tata Consultancy, down 1.55 percent, ITC, down 1.32 percent and Sun Pharma, down 0.91 percent.

On the other hand, State Bank of India, Larsen and Toubro, Tata Motors, Steel Authority and DLF made up the five other stocks that figured in the list of top 10 performers and rose at a pace higher than the Nifty.

The week under review was one during which the stock markets gave a resounding welcome to the electoral victory for the Congress-led United Progressive Alliance (UPA).

The investor frenzy that followed forced the suspension of trading for the day May 18 after indices hit upper circuit filters twice within seconds.

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