Weekly News

11Oct-16Oct

Bull's Eye: Apollo Tyres, HDIL, Indiabulls Real Estate, Mahindra & Mahindra

Automobile volumes in the domestic market jumped 29%

YTD after a 26% jump in FY10. The momentum is expected

to continue, leading to strong demand for tyres from the

OEM segment.

Automobile volumes in the domestic market jumped 29%

YTD after a 26% jump in FY10. The momentum is expected

to continue, leading to strong demand for tyres from the

OEM segment.11th October 2010

Boom-to-Bust: Blame lies with Europe's watchdogs

Southern euro-area countries, plus Ireland, experienced

bubbles in their real-estate markets, while the northern

member states had slow economic growth. When the boom

turned into bust in some countries, their governments had to

pick up the pieces, leading to huge budget deficits and debts.

11th October 2010

Nine firms selected to provide urban amenities in rural areas

The project, envisioned as part of former President A P J Abdul

Kalam’s pet scheme, Provision of Urban Amenities in Rural

Areas (PURA), will see these nine private players undertaking

pilot projects in January next year and will be completed within

three years. As many as 15 such projects, straddling seven

states and a Union territory, have been designed. If successful,

they’ll be rolled out on a wider scale in during the 12th Five

Year Plan. 12th October 2010

Hunger remains despite high growth: US study

The high economic growth in India has not translated into a

rapid reduction of hunger in India, a US-based policy think-

tank has said. India ranks 67th in an 84-country ranking and

has more hungry people than its neighbouring countries.

The high incidence of hunger is despite the country having

enough food grain, indicating a failure in ability to reach the

deprived or abject low levels of incomes for a vast segment of

population .

12th October 2010

RBI refuses to give optionally convertible papers FDI status

Optionally convertible instruments, where pricing is decided on a

future date, protect investors from upward or downward risk and,

therefore, should be treated as debt rather than pure equity, the

central bank said.

In case, the conversion price is based on certain ex-post

performance parameters, then the investor does not expose

himself to the full risk and the instrument acquires the

characteristics of the debt instrument rather than a pure equity

instrument. 13th October 2010

Yahoo shares take off on buyout rumours

Investors are running up the price of Yahoo Inc. shares after a

report saying AOL Inc. and a group of private equity firms may

bid for the Web company. The stock climbed 74 cents, or 4.9%,

to $15.99 in late morning trading after trading as high as $16.76

earlier in the session.

The Wall Street Journal reported on its website that AOL,

Silver Lake Partners and Blackstone Group LP are exploring a

bid. It said two or three other firms could also be interested in

the deal but that Yahoo hasn't been involved in the talks yet.

13th October 2010

US mortgage rates hit decades-low of 4.19%

Rates on 30-year mortgages fell to 4.19 per cent, the

lowest level in decades. They were pushed down by lower

Treasury bond yields. Investors are buying up Treasury

bonds in anticipation of a move by the Federal Reserve

designed to lower mortgage rates and yields on corporate

debt. As a result, the average rate for 30-year fixed loans

dropped to the lowest level on records dating back to

1971, mortgage buyer Freddie Mac said Thursday. It's

down from 4.27 per cent the previous week. 14th October 2010

DTC may pull insurance co’s out of comfort zone

The life insurance sector has always experienced an advantageous

position when compared to other taxpayers. To date, they were

subject to a concessional tax rate of 12.5% (plus surcharge and

education cess) on the surplus disclosed by the actuarial valuation as

per the Insurance Act, 1938, less the opening surplus disclosed by

that valuation. The DTC proposes to do away with this taxation

scheme and tax the profits in shareholders’ account at the normal

corporate tax rate of 30% leaving policyholders’ funds to be taxed in

the hands of shareholders or subject to a distribution tax of 5%.

15th October 2010

China says Yuan must not be 'scapegoat' for US economic woes

China said Friday the Yuan exchange rate must not be used as a

"scapegoat" for the United States' economic woes, ahead of a

Treasury Department report that could label the country a currency

manipulator. The People's Bank of China set the Yuan central parity

rate -- the middle of the currency's allowed trading band - at 6.6497

to the dollar. The Chinese unit has gained nearly 0.5% this week and

more than 2.6% since the summer as US and European lawmakers

stepped up calls for a faster appreciation in the currency, which they

say is grossly undervalued. 15th October 2010