Today's Newsbrief and Economic Indicators - June 24, 2009
POWER
Adani Power IPO cleared
Securities and Exchange Board of India (SEBI) has cleared Adani Power Limited’s initial public offer (IPO). The company is expected to hit the capital market by the third week of July. APL, which had postponed its IPO due to bad market condition in September 2008, is now planning to raise over Rs 3,000 crore for financing its 6600 MW power plants at Mundra and Tiroda in Gujarat and Maharashtra respectively. As per the plan, APL is offering 33.77 crore equity shares through the IPO. The company is expected to charge a premium of around Rs 120 per share of Rs 10, sources familiar with the situation said. more...
REC seeks to raise Rs25,000 cr this fiscal, disburse Rs22,000 cr
State-owned Rural Electrification Corp. Ltd, or REC, one of the primary lenders for Indian power sector projects, plans to raise Rs25,000 crore in the current fiscal and disburse Rs22,000 crore. The targeted 28% increase in disbursement over the previous fiscal year is expected to bring some relief to the fund-starved power sector. Lending more: Rural Electrification Corp. chief P. Uma Shankar says the corporation will go for a mix of resources to raise the money. Hindustan Times“We plan to raise this money through a combination of infrastructure bonds, tax-saving certificates, external commercial borrowings (ECBs), financial institutions and banks,” said chairman and managing director P. Uma Shankar. more...
INFRASTRUCTURE
UAE urged to invest in India's infrastructure
The Government of India would encourage investment from the UAE in the development of infrastructure in the sub-continent, a newly inducted minister of state in the government said on Tuesday. Addressing a press conference in Dubai, Indian Minister of State for External Affairs Dr Shashi Tharoor said the message had been conveyed at a meeting with the UAE Minister of Cabinet Affairs Mohammed Abdullah Al Gargawi. more...
ECONOMY
Rupee up as local shares rise on Asian cues
The rupee climbed on Thursday as higher shares raised hopes for foreign portfolio inflows, but concerns that poor rains could slow economic growth further curbed a sharper rise.At 10 a.m., the partially convertible rupee was at 48.5150/5250 per dollar, compared with Wednesday's close of 48.56/57. On Tuesday, it had touched 48.90, its lowest since May 15."I expect the rupee to track the stock market during the day and I don't see huge volumes until the budget," a dealer with a private sector bank said. more...
India's per capita income to cross Rs. 10 Lakh by 2039
India is expected to be even richer with a per capita income in excess of $22,000, adjusted for inflation and real exchange rate movements, says a report. It means that the annual income of an Indian citizen would be over Rs 10.56 lakh after 30 years. This would be a phenomenal jump by any yardstick as India's per capita income in 2007 was just $940 (around Rs 45,000). "India has the potential to move from a relatively poor, developing country to an affluent economy within 30 years in a single generation," says the report by Emerging Markets Forum a Washington-based strategic advisory firm specializing in emerging market economies. India would be an average economy with global footprint. more...
Poor rains may put spokes in growth wheel
There could be bad news around the corner. The Indian Meteorological Department’s (IMD) prediction of sub-normal rainfall this year is likely to put the brakes on the country’s growth engine. The IMD expects this year’s rainfall to be 93% of 89 cms in the years from 1941 to 1990 — the so-called long period average (LPA). A historical analysis, from 1991 to date, by ETIG suggests that economic output decreases by an average of 1.5% in a year of poor rainfall compared with one which experiences a normal monsoon. more...
POLITICS
Pakistan SC rejects Indian prisoner Sarabjit's mercy petition, Zardari to decide fate
The fate of Indian prisoner Sarabjit Singh hung by a slender thread as Pakistan's Supreme Court on Wednesday dismissed his review petition challenging the death sentence handed out to him in 1991, leaving him at the mercy of a presidential pardon by Asif Ali Zardari. Sarabjit's conviction for alleged involvement in four bomb blasts in Lahore in 1990 that killed 14 people in Pakistan by an anti-terrorism court in 1991 was upheld by a three-member Supreme Court bench led by Justice Raja Fayyaz Ahmed. His family insists that he was wrongly convicted for the bombings. more...
US Senate passes bill to triple civilian assistance to Pak
The US Senate has unanimously passed the Kerry-Lugar Bill, which triples America's civilian assistance to Pakistan to $7.5 billion in the next five years and advocates an equal amount for another five years -- $15 billion in 10 years. Unlike the House version of the bill, which was voted against by the Republican members, the Kerry-Lugar Bill, which is called Enhanced Partnership with Pakistan Act (S962), received bi-partisan support from Senators and is supported by the Obama administration. more...
TELECOM
Telecom licence fee may be set at flat 9%
A committee set up by the department of telecommunications, or DoT, to replace the graded structure of telecom licence fees with a uniform one for phone service operators is in favour of a flat fee of 9% of revenues, two senior department officials who are members of the panel said. The committee will make its final recommendations in two weeks.Telecom firms currently pay between 6% and 10% of adjusted gross revenue, or AGR, to the government as licence fees for the right to offer phone and related services.Services such as Internet access are levied at 6%, while mobile phone services entail payment of up to 10% of AGR. The rates vary according to circles or licence areas as well. more...
INTERNATIONAL
UBS names new Asia Pacific CEO
UBS AG on Thursday announced the appointment of Chi-Won Yoon as chairman and CEO of Asia Pacific, succeeding Rory Tapner, who is leaving the bank after 25 years. Yoon joined UBS in 1997 as Head of Equity Derivatives, becoming Head of Asia Equities in 2004, Head of Asia Pacific Equities in 2008, and Head of Equities and Fixed Income for the region earlier this year. Yoon inherits a franchise with a strong equities and M&A platform across Asia Pacific. But the bank also faces several challenges. more...
Bernanke's 2009 may make 2008 look like cake walk
If 2008 was a tough year for Federal Reserve Chairman Ben Bernanke, 2009 is looking no easier as political battles pile on top of tough economic challenges. With the end of his term looming in January, Bernanke's skill in avoiding pitfalls on both fronts will influence whether he wins another four years at the helm of the Fed. First, there's the economy: with the US unemployment rate at 9.4 per cent and rising, Bernanke faces the challenge of fostering a recovery from an 18-month-old recession with unconventional policies that some worry will ignite inflation. more...
JPMorgan is the world's strongest bank: Report
JPMorgan tops a list of the world's strongest banks, while Royal Bank of Scotland suffered the biggest loss of any lender last year, according to new industry rankings on Wednesday. RBS's $59.3 billion loss last year eclipsed all rivals, including Citigroup's $53 billion loss and Wells Fargo's $47.8 billion loss, according to The Banker magazine. Global bank profits slumped 85 percent last year to $115 billion, down from $781 billion, and return on equity plunged to 2.69 percent from 20 percent, the magazine estimated. more...
MARKET INDICATOR
| Market Update (in respective local times) | |||
| Index | Date/Time | Value | % Chg |
| Nifty | 25-06-09 13:50 | 4300 | 0.16 |
| Sensex | 25-06-09 13:52 | 14528 | 0.73 |
| FTSE | 25-06-09 08:51 | 4275 | -0.12 |
| Dow | 24-06-09 16:30 | 8300 | -0.28 |
| Nasdaq | 24-06-09 17:30 | 1792 | 1.55 |
COMMODITY INDEX
| Markets (June 25) | ||||||||||
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