Sensex reclaims 13k on IT, banking gains

MUMBAI: Indian stock market indices closed on a positive note after faltering in the initial stages. The recovery, led in turns by banking and IT stocks, saw the Sensex reclaim the 13,000 level and Nifty regain the 4000 mark, although briefly. The real estate sector continued to be under pressure, weighed down by heavy losses in Mahindra Lifespace, IndiaBulls Realestate, Orbit Corporation. At close, the BSE benchmark stood at 13,055.97, up 195.54 points or 1.52 per cent from Tuesday’s close. Intraday, the index moved from a low of 12,697.30 to touch a high of 13,203.86. BSE IT Index chalked up gains of 4.32 per cent to close at 3,228.66. The sector was led by Satyam Computer, Patni, and HCL Technologies, up over 7, 6, and 5 per cent, respectively. In banking, HDFC Bank, Bank of Baroda and IDBI Bank were frontrunners. The Bankex ended the day gaining 3.29 per cent. On NSE, the Nifty settled at 3951.75, up 30.55 points or 0.78 per cent from the previous close. The broader index scaled 4000.50 after falling to 3861.25 early in the day. The bounce was on the back of a rise in Europe and Asia as investors hoped the US Senate will push through the $700 billion plan to rescue its banks. MSCI World Index added 0.7 percent to 1,190.71. U.K.'s FTSE 100 added 1.4 percent on gains in Barclays and BHP Billiton. Germany's DAX fell 0.2 percent and France's CAC 40 advanced 0.4 percent. Europe's Dow Jones Stoxx 600 Index rose 0.5 percent, and the MSCI Asia Pacific Index increased 1.8 percent. The stock markets of China, Hong Kong, Indonesia, the Philippines, Malaysia and Singapore were shut for holidays today.

Source; http://timesofindia.indiatimes.com/Business/Sensex_reclaims_13k_on_IT_banks_gain/articleshow/3549809.cms#

FM, RBI allay fears over ICICI Bank

Mumbai: Amidst a run on its branches and ATMs in some places in the wake of rumours over its financial stability, ICICI Bank yesterday got a shot in the arm with Finance Minister P Chidambaram and RBI coming out in its support to allay fears of investors and customers. Haunted by reports over its stability and its stocks taking a beating, Managing Director and CEO of ICICI Bank K V Kamath said that the bank was aware of rumours being repeatedly circulated in certain centres regarding its financial strength and described them as "baseless and malicious".The finance minister took stock of the situation in the capital markets with SEBI Chairman C B Bhave and said all Indian banks are "well capitalised and regulated". Earlier in the day, RBI stepped in to stem the tide following the rumours about ICICI Bank, saying the private sector lender has sufficient liquidity and was well capitalised.

US bailout rejected; 1.2 trillion lost in six hours

WASHINGTON/NEW YORK: US lawmakers rejected a $700 billion bailout plan for the financial industry in a shock vote that sent global markets sliding as
More PicturesEuropean authorities scrambled to prop up a slew of banks. The Dow Jones industrial average posted its largest point decline ever while the benchmark S&P 500 had its worst day since the 1987 crisis with an 8.8 per cent drop. Latin American stocks tumbled 13 per cent, their biggest decline in more than a decade. Even before the vote, Asian and European markets had plummeted on fears the crisis was spreading, while US regional lender Wachovia became the latest big bank to succumb to the crisis. And global money markets were frozen even as central banks poured hundreds of billions of dollars into the financial system to persuade financial firms to stop hoarding cash. "There's a monster amount of fear out there. This is global contagion. It's no longer just the United States," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey. The House of Representatives voted 228-to-205 against a compromise bailout plan that would have allowed the Treasury Department to buy up toxic assets from struggling banks. House Republicans, in particular, balked at spending so much taxpayer money just before the November 4 US elections. "I can't believe they weren't able to come together and come up with a solution. Complete disaster was predicted if it didn't pass," said Stephen Berte, senior equity trader at Standard Life in Boston. "I can't see what the upside is right now." US President George W Bush huddled with economic advisers, including Federal Reserve Chairman Ben Bernanke, to consider the administration's next move. "We need a plan that works," said US Treasury Secretary Henry Paulson, the Bush administration's point man on the bailout since the first plan was announced over a week ago. "We need it as soon as possible, and we're just committed to working with congressional leaders to get it done." Investors rushed to assets considered a safe haven. Government bond prices and gold jumped, and oil fell below $99 per barrel on the view that world demand will contract as the financial crisis puts the brakes on economic activity. "What should have been a day of hope turned into a day of desperation," said Marco Annunziato, chief economist for UniCredit in London. "We are facing a systemic crisis of confidence in the global financial system that is pushing us increasingly close to a complete meltdown." World stocks, as measured by the MSCI's world index, lost about $1.7 trillion for the day. Bailout prospects uncertain In Washington, the failure of the bailout bill -- after more than a week of intensive closed-door negotiation intended to hammer out a compromise plan -- brought new uncertainty about the response of the US government to the worst financial crisis since the Great Depression. Republican House members voted against the rescue package by a more than 2-to-1 margin. A majority of Democrats voted in favour. Both parties blamed each other for the failure of the closely watched bill after hours of closed-door negotiations intended to add provisions to protect taxpayers and head off criticism that Washington was riding to the rescue of bankers many Americans blame for triggering the housing crisis. "What happened today cannot stand. We must move forward," House Speaker Nancy Pelosi told reporters. "We are here to protect the taxpayer as we work to stabilize the markets." US presidential candidates Barack Obama and John McCain had both offered qualified support for the bailout proposal, which now dominates the election with just over a month before the vote. Obama, a Democrat, said he believed lawmakers would regroup to pass a financial rescue plan. "I'm confident we're going to get there," Obama said as he campaigned in Colorado. "It's going to be a little rocky." McCain, a Republican who suspended his campaign last week in a failed attempt to broker a bailout deal, called on lawmakers to go back to work. "Now is the time for all members of Congress to go back to the drawing board," he said.
source: www.indiatimes.com

GSPC is planning IPO by end of the year

Date:Sep-17-2008
Gujarat State Petroleum Corporation (GSPC) is planning an initial public offering by the end of the year. The company is planning a public offering of 10-20% of its equity shares to raise about $1 bn.
According to a company official, the company has mandated DSP Merrill Lynch, JM Financial, Kotak, SBI CAP and Citibank for doing dilution for the IPO. He also added that, "The IPO was proposed to hit the market in November, but I now think it will happen in December-January".
GSPC is an oil and gas producing company with a dominant presence in the Energy Sector of India, attracting interest from oil companies all over the world, and signing partnership agreements covering E & P activities, based on its remarkable discoveries in Gujarat. GSPC has grown from a small oil and gas producing company in Gujarat into a vertically integrated energy company across India and overseas within just a decade. Incorporated in 1979 as a petrochemical company, GSPC has today metamorphosed into a large-scale Rs. 3900 crore energy organization, excelling in a wide gamut of hydrocarbon activities.