The Mint report for 3 November 2009

The Mint report for 3 November 2009

New Delhi: Cognizant’s third quarter results have shot past expectations. Net income rose to $137 million from $113 million a year earlier. The company’s revenue went up 16% to $853 million.

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India may be the world’s second largest rice grower, but after this year’s drought, the country is planning to buy 250,000 tonnes of the grain to increase its stockpile. Already, traders in India are already signing agreements with suppliers in Vietnam and Pakistan. According to one estimate, India could buy up to 3 million tonnes of rice next year and become a net importer of rice for the first time in 21 years.

A top RBI official has said that setting high capital requirements for banks could hurt productive sectors of the economy. Deputy governor general Shyamala Gopinath said that while developing countries needed to protect themselves from volatile capital flows, there was a tradeoff between financial stability and financial development.

Prime Minister Manmohan Singh has said India’s healthcare system needs structural reforms if it is to improve delivery of services at the grassroots. He said that while India had made progress it was still behind countries in South-East Asia.

BSNL says it will lease bandwidth and telecom towers to Sistema Shyam Teleservices. BSNL has previously signed tower-sharing agreements with companies like Aircel and Tata Teleservices. Leasing telecom infrastructure is increasingly becoming popular among smaller operators in India.

Suzlon Energy plans to refinance $750 million of loans in the next two weeks. The loans had been taken to finance the acquisition of Hansen Transmission and REPower Systems.

Two major sugar making companies have denied they are in talks about a stake sale. Media reports last week said Bajaj Hindusthan was in talks to buy a stake in Balrampur Chini Mills for Rs2,400 crore.

Indian stocks plummeted on Tuesday, taking their cue from global markets, losing 3% by the end of the day, much of it in an afternoon sell off. The Sensex fell 491 points to close at 15,405 and the Nifty went down 148 points to end trade at 4,564.