News 25 Janvier 2012
Indian Equity News :
Consumer durables makers such as LG, Samsung and Godrej have increased prices of home appliances by 2-5%, their 2nd hike in 3 months to offset cost pressures due to depreciating rupee and escalating raw material prices.
Jubilant Life sciences : US drug maker Eli Lilly and Jubilant Life Sciences have called off their equal drug discovery partnership to develop molecules across several therapeutic areas.
Strides Arcolab : The company has sold its Australian unit, that contained its generic business, for Rs.19bn to a US-based Watson Pharmaceuticals, enabling the Indian company to cut its debt.
Around 15 Indian companies, including Tata Power, GMR Group and Adani Power are among candidates shortlisted by the Nigerian government to participate in the privatization of power projects of state-owned National Electric Power Authority.
Dabur : The race for acquiring Milestone Capital, the PE firm, is getting intense as promoters of the Dabur group, have joined it by filing a bid. Results are on 31st Jan.
Reliance Communications : The company has disconnected from its network a mobile phone JV between Abu Dhabi-based Etisalat and India's DB Group over non-payment of fees for using its towers.
SBI : SBI has more than doubled the minimum income requirements for availing its car loans, worried its aggressive plan to tap the bottom of the car-buyers pyramid could saddle it with dodgy assets.
ITC : ITC is gearing up to invest up to Rs 1,000 crore in the FMCG segment in the next 4 years which will include setting up new facilities and enhancing existing capacities.
TCS : The Government permitted IT software major Tata Consultancy Services to set up a Special Economic Zone at Indore in Madhya Pradesh.
HUL : Hindustan Unilever Ltd has hit the market again to monetize its former headquarters in the Churchgate area here. HUL expects a rent of Rs200-250 a sq ft or a capital value of Rs 3bn from the prime Mumbai property.
Asia Economy Note :
India : The Reserve Bank of India announced a cut of 50bps to 5.5% in its cash reserve ratio, while leaving benchmark interest rates unchanged. The policy statement indicated that the cut was needed to address the shortage of inter-bank liquidity. The cut will release Rs320 billion (US$6.5 billion) of liquidity into the banking system. The RBI maintained its forecast of inflation for March 2012 at 7%, but remained concerned about upside risks to inflation in FY2013, while cutting its its FY 2012 GDP growth outlook to 7% from 7.6%.
Other EM : In Brazil, mid-month inflation (IPCA-15) accelerated on monthly terms to 0.65%, but crossed below the 6.50% target ceiling on yoy basis. Food prices and transportation (+10% m/m in airfare prices) led the monthly increase. Measures of core inflation remain elevated, with services prices running close to 9.0% yoy.
Turkey : In Turkey, the CBRT kept its 1-week repo rate and overnight lending rate unchanged at 5.75% and 12.5% respectively. The Bank's assessment on inflation and current account remained broadly unchanged. It halted its regular FX sales and increased the size of its 1-month repo funding.
