Sep 24, 2011 IN FOCUS " Neither should a ship rely on one small anchor, nor should life rest on a single hope."– Weekly Indicators Epictetus. Indicators Current Last Week IMF cuts global growth forecast; India 2011 GDP growth cut to 7.8% Sensex 16,162 16,934 Nifty 4,868 5,084 The International Monetary Fund cut its world growth forecast in 2011 and 2012 to Food Inflation 8.84% 9.47% 4.0% each as it said the global economy had reached a "dangerous new phase". The IMF had earlier pegged global economy to grow 4.3% in 2011, and by 4.5% in 2012. Exchange Rates "Global activity has weakened and become more uneven, confidence has fallen sharply Currency Current Last Week and downside risks are growing...the outlook for these economies (advanced US$1 Rs.49.6730 Rs.47.4670 countries) is thus for a continuing, but weak and bumpy expansion," the IMF said in its € 1 Rs. 66.9815 Rs. 65.7906 World Economic Outlook. Greater-than-anticipated weakness in the US and concerns JP¥ 100 Rs. 65.10 Rs. 61.81 over fiscal challenges in the Euro Area posed greater downside risks, it said. IMF also £ 1 Rs. 76.5064 Rs. 74.9599 cut growth of advanced economies to 1.6% in 2011 from 2.2% earlier, and to 1.9% in Global Economic and Corporate News 2012 from 2.6%. In these economies, growth activity would be supported by • Rolls-Royce: China Eastern deal worth $400 mn reconstruction investment, it said. Among advanced economies, the US economy is Global power systems company Rolls-Royce Holdings expected grow at 1.5% in 2011, against the earlier projection of 2.5%. In 2012, US PLC (RR.LN) said it has won a $400 mn contract from China Eastern Airlines (0670.HK) for V2500 engines. growth may be 1.8% compared with 2.7% projected earlier. Growth in the Euro Area, • WhiteGlove Health Shelves IPO Indefinitely mainly comprising Germany, France, Italy and Spain, could moderate to 1.6% in 2011 WhiteGlove Health Inc. finally raised the white flag, and to 1.1% in 2012. postponing its initial public offering indefinitely after several failed attempts to price it in an unwelcoming Govt mops up Rs.680 bn in 2nd tranche of advance tax, up 13% market environment. The government has collected Rs.680 bn as part of the second instalment of advance • Tesco to Float $472 Mn Thai Property Fund Tesco PLC said it plans to float a £300 mn ($472 mn) tax, up 13% from Rs.600 bn in the same period last year. The last date to pay the property fund in Thailand as it looks to create further second tranche of advance tax was Sep 15. Indian companies pay a 30% tax on their value from its real-estate portfolio. estimated profits for a financial year in the second instalment. Direct tax mop-up • FX Alliance files plans for IPO of up to $100 mn April-to-date was at Rs.1.8 trn. The official, however, said that the second instalment FX Alliance Inc. filed plans for an initial public offering of up to $100 mn in stock, as the forex of advance tax mop-up was not encouraging. The budget for 2011-12 aims to collect trading platform expands its capacity for handling Rs.5.32 trn as direct tax, up 19.4% from a year ago. Later, this target was raised to currency derivatives. Rs.5.85 trn because the government wanted to make up for the loss in revenue on • Saab gets U.S. naval radar contract account of cut in petroleum product duties. The official lamented the tepid growth in Swedish defense and security company Saab AB (SAAB-B.SK) said it has received a contract to supply advance tax payout by the top 100 companies. The tax payout by these companies as the naval surveillance radar Sea Giraffe AMB to the part of the second instalment grew only 9-10%. The slowdown in direct tax collection US Navy's Littoral Combat Ship Program. is bad news for the government, which is struggling to meet the budgeted fiscal deficit • HSBC sells advisory unit to Nat'l Bank of target of 4.6%. The country's economic growth is likely to take a hit as the series of Canada HSBC Holdings PLC (HSBA.LN), the banking group, rate hikes makes a fuller impact. As a result, tax mop-up may come under further said it has agreed to sell the full-service investment pressure. advisory business of HSBC Securities (Canada) Inc. to the National Bank of Canada (NA.T) for C$206 mn. S&P downgrades Italy's credit rating a notch • Microsoft, Casio sign patent-licensing agreement Standard & Poor's Ratings Services has downgraded Italy's credit rating by one notch, Microsoft Corp. and Casio Computer Co. (6952.TO) saying it sees weakening economic growth prospects for the European nation and have agreed to a multiyear patent cross-licensing higher-than-expected levels of government debt. The ratings firm cut Italy's long- and agreement that the companies touted as a way to provide Casio customers with patent coverage, short-term sovereign credit ratings to ``A/A-1'' from "A+/A-1+." The rating is still five among other benefits. steps above junk status. The ratings agency has a negative outlook on Italy's ratings • SAIC and GM to jointly develop electric vehicles and listed Italy's political issues and heavy debt load as the main factors contributing General Motors Co. and SAIC Motor Corp. to the downgrade. It anticipates that political differences will likely limit Italy's ability (600104.SH), China's largest auto maker by sales volume, signed an agreement to jointly develop a to respond decisively to its debt crisis. new electric vehicle platform, which they will use to build such energy efficient cars around the world. Fed to swap $400 bn bonds into longer maturities • Mexico's Coca-Cola Femsa to buy bottler Cimsa The Federal Reserve said it will sell $400 bn worth of short-maturity bonds it holds and Mexican soft drink bottler Coca-Cola Femsa SAB said reinvest in bonds maturing between 6 and 30 years by the end of June 2012, it will acquire regional Mexican Coke bottler Grupo Cimsa in a deal valued at 11 bn pesos ($838 mn). confirming market expectations that it would revive the 1960s-era program dubbed • Agnico-Eagle to pay C$275M for Grayd "Operation Twist." By a 7-to-3 vote, the Fed also said it will reinvest proceeds from Resource maturing mortgage-backed securities into mortgage-backed securities, instead of its Agnico-Eagle Mines Ltd. agreed to acquire Grayd previous practice to buy Treasurys with the proceeds. The Fed kept its target Federal Resource Corp. in a deal valued at about C$275 mn (US$280 mn), giving the Canadian gold producer an funds rate between 0% and 0.25% and kept its pledge, first announced in August, to early stage project in Mexico. keep rates at exceptionally low levels through the middle of 2013. The Fed said that "economic growth remains slow" and inflation will settle at or below levels consistent Nishita Shah Parsekar with its dual mandate. [email protected] Please refer to important disclosures at the end of the report For Private Circulation Only. Sushil Financial Services Private Limited Member : BSEL, SEBI Regn.No. INB/F010982338 | NSEIL, SEBI Regn.No.INB/F230607435. Office : 12, Homji Street, Fort, Mumbai 400 001. Phone: +91 22 40936000 Fax: +91 22 22665758 Email : [email protected] Info-Spectrum Bridging the Information Gap in Corporate Landscape INDEX 1. India’s Data Watch 03-07 2. Economy 08-16 3. Infrastructure 17-30 4. Sectors 31-67 A. IT & ITeS 31-34 B. Pharma & Healthcare 35-38 C. Telecom 39-41 D. Banking & Financial Services 42-46 E. Steel, Metals & Minerals 47-51 F. Auto & Auto Ancillaries 52-56 G. Miscellaneous 57-67 5. IPO Watch 68-70 6. Mergers & Accquistion 71-72 7. Ratings 73-79 8. Global Economy & Business 80-99 A. Global Economy 80-88 B. Global Business 89-99 Weekly Newsletter 2 Info-Spectrum Bridging the Information Gap in Corporate Landscape INDIA’S DATA WATCH TRP Watch: KBC keeps Sony second among peers in week to Sep 10 Riding high on the extended success of the Amitabh Bachchan-anchored Kaun Banega Crorepati, Sony Entertainment Television remained on the second spot among Hindi general entertainment channels in the week to Sep 10, the 37th week of 2011. As per data from media measurement agency TAM Media, published on www.exchange4media.com, the overall market share of the Hindi general entertainment channel category grew 50 basis points to 28.7%. Star Plus continued to lead the general entertainment channel pack with 24% market share, followed by Sony Entertainment Television and Colors TV with market share of 19.1% and 18.2%, respectively. Colors TV is owned by Viacom18, a Network18 group company. NewsWire18, which publishes this news wire, is also part of the Network18 group. Launched on Aug 15, Kaun Banega Crorepati, which is in its fifth season, has managed to keep viewers glued, putting Sony Entertainment Television firmly in the No 2 spot. "Saath Nibhaana Saathiya" on Star Plus was the most watched programme on Hindi general entertainment channels during the week under review, followed by "Balika Vadhu" on Colors TV and Kaun Banega Crorepati. The reporting week also saw as many as four new shows being launched. Zee TV launched "Aapka Sapna Hamara Apna" programme in the 1900-1930 IST time band, which is being aired on Sunday.