Oct 14, 2011 in FOCUS "Nothing Is More Hopeless Than a Scheme of Merriment."– Johnson, Samuel
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Oct 14, 2011 IN FOCUS "Nothing is more hopeless than a scheme of merriment."– Johnson, Samuel. Weekly Indicators OPEC again cuts demand forecast for 2011, 2012 Indicators Current Last Week The Organization of the Petroleum Exporting Countries has revised downwards the Sensex 17,083 16,233 global crude oil demand forecast for 2011 to 87.81 mn barrels per day from its Nifty 5,132 4,888 previous estimate of 87.99 mn bpd in Sep and up 0.88 mn bpd from 2010. "The Food Inflation 9.32% 9.41% economic downturn is taking its toll on world oil demand, especially in the OECD. The Exchange Rates decelerating US economy, high unemployment rate and feelings of uncertainty among Currency Current Last Week consumers, has damped (dampened) US oil demand," OPEC said. Debt problems in US$1 Rs.49.0675 Rs.49.1355 the Eurozone and delay in Japan's rebuilding efforts are also contributing to the lower- than-expected oil demand. OPEC has also lowered the forecast for world oil demand € 1 Rs. 67.7248 Rs. 65.9981 growth in 2012 due to the weak economic outlook. The organisation has pegged JP¥ 100 Rs. 63.78 Rs. 64.11 average world oil demand in 2012 at 89.01 mn bpd, down from 89.26 mn bpd in the £ 1 Rs. 77.4187 Rs. 75.9733 previous month's report and 1.19 mn bpd higher from 2011. According to the report, debt problems in the Eurozone, deterring government policies in China, and increase Global Economic and Corporate News in retail prices in India would play a major role in restricting oil demand next year. • Hyundai Heavy starts building plant in Brazil Hyundai Heavy Industries Co. started building its S&P cuts Spain's long-term sovereign credit rating planned construction equipment plant in Brazil, which Standard & Poor's said that it has lowered its long-term rating on Spain's sovereign the company hopes will help it secure a bridgehead credit to AA- from AA. The firm said that the outlook for Spain is negative. "Despite to expand presence in Central and South America. signs of resilience in economic performance during 2011, we see heightened risks to • Sinopec to buy Canada's Daylight for $2.1 billion Spain's growth prospects due to high unemployment, tighter financial conditions, the Canadian oil and gas producer Daylight Energy Ltd. still-high level of private sector debt, and the likely economic slowdown in Spain's said it will be acquired by China Petrochemical Corp. main trading partners," S&P said. (600028.SH) for 2.2 bn Canadian dollars ($2.12 bn). Bank Indonesia cuts benchmark interest rate • Celesio buys 60% of Brazil pharma wholesaler Bank Indonesia cut its benchmark rate by 25 basis points to 6.50%, as it is concerned German pharmaceutical retailer Celesio AG said it has bought 60% of the Brazilian Oncoprod Group, a about the impact of the global slowdown on its economy and deems that inflationary wholesaler for specialty pharmaceuticals. Financial pressures are receding. "As we expect inflation next year will be below 5%, we details weren't disclosed. decided to bring down the policy rate to 6.5%, which is reasonable and justified," • JP Morgan invests $565M to expand Brazil Bank Indonesia Governor Darmin Nasution said in a press conference after a monthly business rate-review meeting. Bank Indonesia Deputy Gov. Hartadi Sarwono indicated last J.P. Morgan has invested 1 bn Brazilian reais ($565 mn) of fresh capital to expand its business in Brazil, month the central bank's concerns have shifted from the threat of inflation to fears of local newspaper O Estado de S. Paulo reported. an economic slowdown due to prolonged euro-zone debt problems. Most economists • Morgans Hotel Group to sell 2 London-hotel had expected the central bank to keep its policy rate steady at least until the end of stakes the year as they expect global economic turmoil to persist. They said cutting the rate Morgans Hotel Group Co. and its joint venture partner plan to sell two London hotels for roughly would further weaken the rupiah & destabilize the country's financial market. $295 mn in a move it said will give it capital for BRICS bourses form alliance, to cross-list shr indices derivatives growth. 7 stock exchanges from five emerging nations--Brazil, Russia, India, China and South • Superior Energy to buy Complete Production Africa, also known as BRICS--have formed an alliance that will begin by cross-listing of Superior Energy Services Inc.'s acquisition of derivatives of their benchmark equity indices. "Following that, the alliance will develop Complete Production Services Inc. will enable the enlarged company to become a major player in the innovative products to track the BRICS exchanges," it added. The cross listing of international expansion of shale drilling activity, equity indices derivatives will enable trade in these contracts in local currency, & is Superior Energy Chief Executive David Dunlap said. likely to take place by Jun 2012. BSE and NSE will represent India in the alliance, • Toyota idles operations in Thailand due to which includes BM&F BOVESPA of Brazil, MICEX of Russia, and the Johannesburg floods Toyota Motor Thailand said it suspended production Stock Exchange of South Africa. China will initially be represented by the Hong Kong at its three local plants after the country's worst Exchanges and Clearing Ltd. NSE and BSE have signed letters of support and will join floods in decades disrupted its suppliers' operations. the alliance after finalising "outstanding requirements". • IBM to buy software provider Platform FICCI says India-Africa bilateral trade may double in 5 years Computing Bilateral trade between India and Africa is expected to double in the next five years International Business Machines Corp. agreed to buy software company Platform Computing, helping the from $53 bn now, driven by the transport equipment, services, healthcare and technology heavyweight to accelerate its growth into agriculture sectors, Rajiv Kumar said. "Bilateral trade has more than doubled from $25 technical and high-performance computing. bn in 2006-07 (Apr-Mar) to $53.3 bn in 2010-11," he said on the sidelines of the • First Financial to buy Freestar Bank for $47M India-Africa Business Partnership Summit here. "I see a faster growth in the next five First Financial Corp. agreed to acquire Freestar Bank from PNB Holding Co. for $47 million in cash, years," Kumar said. He said imports from Africa have more than doubled from $14.7 increasing its presence in Illinois. bn to $32.2 bn in the last five years, while exports to Africa rose from $10.3 bn in • BHP Billiton approves $1.2 billion for Olympic 2006-07 to $21.1 bn in 2010-11, mainly because of the increase in exports of Dam transport equipment and petroleum products. BHP Billiton Ltd. approved US$1.2 billion in advance Telangana impasse continues as talks fail; strike into 30th day spending on its Olympic Dam copper and uranium mine in South Australia state, an expansion that The ongoing strike in the Telangana region of Andhra Pradesh entered the 30th day as could become one of the world's largest ongoing talks between the state government and Telangana Employees' Joint Action mining projects. Committee did not yield any results. Around 820,000 state government employees, including teachers and judicial staff, are participating in the strike for a separate Nishita Shah Parsekar Telangana state. According to the Federation of Chamber of Commerce and Industry [email protected] of Andhra Pradesh, total revenue loss due to the strike is over Rs.10 bn so far. 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. Regd. 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 08-15 3. Infrastructure 16-26 4. Sectors 27-58 A. IT & ITeS 27-28 B. Pharma & Healthcare 29-31 C. Telecom 32-36 D. Banking & Financial Services 37-40 E. Steel, Metals & Minerals 41-44 F. Auto & Auto Ancillaries 45-48 G. Miscellaneous 49-58 5. IPO Watch 59-60 6. Mergers & Accquistion 61-62 7. Ratings 63-70 8. Global Economy & Business 71-78 A. Global Economy 71-75 B. Global Business 76-78 Weekly Newsletter 2 Info-Spectrum Bridging the Information Gap in Corporate Landscape INDIA’S DATA WATCH India Aug industrial output grows 4.1% vs 4.5% yr ago India's industrial output in Aug rose to 4.1% from 3.8% a month ago, but was lower than 4.5% a year ago. The industrial output for Apr-Aug--the first five months of 2011-12 (Apr-Mar)--was at 5.6% compared with 8.7% a year ago. While electricity output in Aug rose sharply by 9.5% against 1.0% a year ago, the mining sector contracted 3.4% compared with a growth of 5.9% a year ago. The capital goods sector, which had contracted a massive 13.7% in Jul, grew 3.9% during the period of review compared with 4.7% a year ago. For Apr-Aug, growth in the capital goods segment fell to 7.2% from 18.9% a year ago, indicating that the Reserve Bank of India's series of rate hikes and turmoil in global economy is now hurting demand and slowing down investments in new plant and machinery.