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Bonds reverse gains; yields near 5-month low

Bonds reverse gains; yields near 5-month low
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First Published: Thu, Jan 03 2008. 11 12 PM IST
Updated: Thu, Jan 03 2008. 11 12 PM IST
Mumbai: Indian bonds fell, reversing earlier gains, on speculation yields at the lowest in more than five months encouraged investors to sell off debt securities.
The yield on the 10-year note dropped to the lowest since July on Thursday on speculation that government spending at the end of last year increased cash in the local banking system. Bloomberg
Nokia Siemens wins deal from Bharti Airtel
Helsinki: Officials of Nokia Siemens Networks said on Thursday the company had won a “multi-million euro” deal from India’s leading mobile operator Bharti Airtel Ltd to supply telecom network technology over three years.
The pan-India deal covers an interactive voice response platform, Nokia Siemens said in a statement. Reuters
BGR Energy Systems gains 88% on debut
Mumbai: Power equipment supplier BGR Energy Systems Ltd on Thursday got robust response from investors, with its shares closing at a 88% premium on debut trade on the Bombay Stock Exchange.
The scrip opened at Rs801, touched an intra-day high of Rs940 and more than 43.74 lakh shares changed hands on the bourse. The scrip finally settled at Rs901.30—up by Rs421.30, or 87.77 % against its issue price of Rs480.
On the National Stock Exchange, the scrip opened at Rs840, touched a high of Rs922 and more than 8.22 million shares were traded.
The company listed 7.20 crore equity shares on the bourses. PTI
BoB raises Rs 1,000 cr through bonds issue
Mumbai: Public sector lender Bank of Baroda (BoB) on Thursday raised Rs1,000 crore from bonds to meet credit needs. The fund raised through the issue of non-convertible redeemable upper tier-II bonds, carries a compound rate of 9.30%, BoB informed the Bombay Stock Exchange (BSE). The bond, with the face value of Rs10, have a 15-year tenure with a call option at the end of 10-years.
Shares of BoB closed at Rs491.1—up 1.8% on BSE. PTI
Chinese aircraft makers plan to build big planes
Beijing: China’s two leading state- owned aircraft makers are likely to be restructured and consolidated to build a large commercial aircraft to challenge rival Boeing Co. and Airbus SAS in the country’s fast growing aviation market, officials said.
China Aviation Industry Corp. and Aviation Industries of China II (AVIC II) might consolidate commercial aircraft businesses of the two enterprises and set up a new firm to build the new plane, said an unnamed AVIC II official. PTI
ONGC closes one of its production complexes
New Delhi: State-run Oil and Natural Gas Corp. Ltd (ONGC) shut down one of its facilities at its largest gas field off Mumbai, leading to cut in gas supplies to power and fertilizer plants by 45-80%.
On 2 January, ONGC closed one production complex at the Bassein field, leading to fall in gas production from 25.5 million standard cu. m per day (mscmpd) to 15.5mscmpd, company officials said.
The complex will remain shut till 25 January to enable additional gas wells in the South Bassein and Vasai East field to be hooked up to the production system.
When contacted, state transmission firm GAIL India Ltd chairperson and managing director U.D. Choubey confirmed that GAIL was making efforts to supply gas to power and fertilizer units from Panna/Mukta and Tapti fields, also lying in Mumbai offshore. PTI
ICICI Bank eyes 33% rise in overseas borrowings
Mumbai: The country’s largest private bank by market value, ICICI Bank Ltd, may increase foreign borrowings by a third this year, from a record $10 billion (Rs39,500 crore) in 2007, to help clients fund overseas takeovers and investments. “The rise will be in line with growth in our international operations,” joint managing director and chief financial officer Chanda Kochhar said in an interview in her office in Mumbai. ICICI Bank expects about 33% growth in the offshore business this year and next, Kochar said on Wednesday.
ICICI Bank was the second-ranked adviser to Indian companies in a record year last year, for takeovers of overseas rivals, according to data compiled by Bloomberg. The Mumbai-based bank provided takeover advisory and banking services to companies including United Spirits Ltd, DLF Ltd and Suzlon Energy Ltd, apart from tapping 25 million Indians living abroad. Bloomberg
Sebi plans to make debt offerings faster, better
Mumbai: The Securities and Exchange Board of India (Sebi) on Thursday proposed simplifying the corporate debt issuance process to cut costs and enhance transparency in bond offerings.
In a paper on the proposed draft Sebi (Issue and Listing of Debt Securities) Regulations, 2008, the regulator said, “Modifications have been aimed at reducing time and unnecessary burden of issuance of these securities and according flexibility to issuers to structure their instruments, without diluting areas of regulatory concern.”
Sebi said the disclosure requirements would be bifurcated into a more detailed and simplified one, depending on whether the equity securities of that company were already listed. Sebi has invited public comments on the draft by 23 January through email and by 19 January through post. PTI
Monster India launches SMS-based job search
Bangalore:Monster Worldwide Inc., the parent company of Monster.com, the global online employment portal, has announced the launch of short message service (SMS)-based job search application in India.
The SMS job search application is easy to use, said Vikas Agarwal, vice-president, product and technology. The user can type free text such as “jobs brand manager Delhi” and SMS to 53030 in India. The user will instantly receive the top three job matches back on the mobile as an SMS, he added.
This is the second mobile application launched by Monster India. Earlier last year, Monster India launched SMS Express (SMS based application that helps employers contact jobseekers instantly on mobile, while searching resumes on Monsterindia.com).
In May, a PC World Communications Inc. expert panel declared Monsterindia.com as the best job website in India on design, content, technology and usability. PTI
Boy shot dead in village school shooting
Bhopal: A boy was shot dead at a school in a village by an older student on Thursday, police said, less than a month after a similar deadly shooting at a school in Gurgaon.
Until recently, school shootings were almost unheard of in India. The two boys, one about 15, the other about 13, started fighting after an exam at their government-run school in Chorwari village in the east of Madhya Pradesh state, police said. The older boy then shot and killed the younger boy, said A.K. Soni, inspector general of the local police.
The suspected killer has been arrested, he said.
In December, police arrested two boys at a private school in Gurgaon, outside of New Delhi for shooting to death their classmate. Reuters
UCO Bank capital rejig plan may be delayed
New Delhi: Public sector UCO Bank’s proposal to raise money through a follow-on public offer (FPO) may be delayed by over a year, as the government is unlikely to clear capital restructuring plan of the bank this fiscal.
“The capital rejig proposal is under active consideration but it would take some time before it is finalized,” a bank official familiar with the matter said.
The bank would have to delay its capital raising plan by 1-1.5 years, he added.
Subsequent to tweaking the capital structure, the bank intends to raise money from an FPO to meet its credit needs and expansion plan. Conversion of capital into preference shares would allow the bank further headroom for raising resources, he added.
The Kolkata-based bank has a capital base of Rs800 crore, of which Rs600 crore is held by the government and the remaining by public and financial institutions. The paid-up capital is higher than that of State Bank of India and Punjab National Bank.
“A part of equity capital would be converted into preferential shares as per the RBI (Reserve Bank of India) norms,” the official said.
Shares of the bank closed at Rs83.25—up 2.15% on the Bombay Stock Exchange. UCO Bank hit the capital market with around Rs240 crore initial public offer (IPO) in 2003.
The bank, which was 100% owned by the government prior to the IPO, sold a share with a face value of Rs10 by adding a premium of Rs2.
The total income of the bank also increased by 23% to Rs1,734.1 crore as compared with Rs1,410 crore in the same quarter last year. PTI
Goa CM heads for Delhi to resolve SEZ row
Panaji: Goa chief minister Digamber Kamat on Thursday left for New Delhi to hold talks with the Congress leadership to seek help so as to end the special economic zone (SEZ) row in the state.
A day after the Goa government announced scrapping of all the 15 SEZ projects in the state, including three already notified, the Centre questioned the decision.
The Union commerce ministry on Wednesday refused to denotify the three SEZs, raising prospects of fresh trouble in the coastal state where anti-SEZ groups had been vehemently protesting against setting up of the trade zones.
The protesters, including a section of the ruling Congress and some other political parties, had put their agitation on hold after the state government’s decision. PTI
Parsvnath unit to set up special pharma zone
Mumbai: Real estate firm Parsvnath Developers said on Thursday a unit has received approval to set up an industrial zone for the pharmaceutical sector in Maharashtra. The special economic zone (SEZ) at Nanded will be spread over 370 acres and will be jointly developed with the state-run Maharashtra Industrial Development Corp., which will hold 26% in the project, it said in a statement.
Parsvnath said investment and realization details were yet to be finalized, an official familiar with the matter said.
The real estate firm is currently developing 17 other industrial zones across the country. Parsvnath shares were trading at Rs482.25, up 1.6% in a choppy Mumbai market. Reuters
Wipro opens new BPO centre in the Philippines
Mumbai: The No. 3 software services exporter, Wipro Ltd, said on Thursday it has opened a business process outsourcing (BPO) facility in the Philippines as it expands overseas to cut costs. New York-listed Wipro said the new centre in Cebu will hire more than 900 employees and will focus on customer service support, technical support, human resource and financial and accounting services.
The company said in a statement that its information technology (IT) services division, Wipro Technologies, is also looking at starting centres in other fast growing cities in the Philippines. “The Philippines is one of the largest English speaking nations with a strong IT orientation and a talent pool of 29 million,” T.K. Kurien, president of Wipro’s BPO unit said. Reuters
SBI changes rates on deposit schemes
Mumbai: The State Bank of India has changed interest rates for deposits of different maturities effective from 4 January, a senior official said on Thursday.
Interest rates on 46-90 days deposits will now yield 5.25%, 91-180 days deposits will pay 7% and 181 day-but less than 1 year will pay 7.5%. In addition, 1-2 year deposits will now pay 8.75%, A.J. Gokhale, deputy general manager- public relations at the Mumbai-based bank, said. Reuters
M&M hikes prices across models, spares Logan
New Delhi: Carmaker Mahindra and Mahindra Ltd on Thursday said it would increase prices across all its models in a range of Rs1,000 to Rs10,000.
The company has, however, kept its entry-level sedan Mahindra Renault Logan out of the purview of the price rise. “We have increased the prices across all models, except Logan, from 1 January. The price hike has been necessitated due to increasing raw material prices,” a company spokesperson said.
Various carmakers, including Maruti Suzuki India Ltd and Hyundai Motor India Ltd, had earlier said that they would raise prices due to escalating raw material costs. PTI
PM to visit China, take border row talks further
Beijing: Prime Minister Manmohan Singh will visit China this month for talks that will include discussions on a disputed border area, the Chinese foreign ministry said, in a further show of warming ties between the developing giants. The visit will take place between 13 and 15 January.
“We are the two biggest developing countries in the world and we both face the same tasks of development. Both sides also work on ensuring regional and world peace and stability,” foreign ministry spokesperson Jiang Yu told a news conference. “So, we are willing to promote the strategic cooperative partnership between the two countries.” The two countries hope to make progress in the dispute, Jiang said.
They had three meetings on the issue last year, which were “helpful” she added. AP
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First Published: Thu, Jan 03 2008. 11 12 PM IST
More Topics: Bonds | Banking | Sebi | SEZ | BGR Energy |