Indian Business News – Selected Extracts (17/06/08)

1. The weak sentiments in the Mumbai Stock Market, high inflation, economic slowdown are causing weak response to the initial public offerings (IPOs). A large number of companies are shying away from the primary market and are postponing their investment plans. Most of the IPOs listed in 2008 are quoting at discount.
2. Daiichi (Japan) makes open offer for further 20% in Ranbaxy Laboratories. If the offer is fully accepted, Daiichi’s stake in Ranbaxy will rise to 58.1%.
3. Oil prices are climbing on growing demands from China and India, whose economies expanded the past years at an average annual rate of 10.2% and 7.3% respectively. Crude oil futures hit a record close to US$140 a barrel. Dollar also weakened against the euro. The state governments opined the the forex reserves could be used for oil buy.
4. Lehman Brothers Real Estate Partners will invest US$175 million to acquire 50% stake in Unitech’s domestic realty project in Mumbai.
5. Telco companies see huge scope for expansion in rural sector. There are only 22% subscribers in villages as on December 2007. Spice, Airtel and Rel. comm are in the forefront.
6. Investment bank Lehman Brothers Holdings posted a quarterly loss of US$2.8 billion matching its forecast.
7. One of the country’s largest and oldest PSU banks, Canara Bank has joined hands with MNC giant HSBC and Oriental Bank of Commerce to form an life insurance company. This is the 19th insurance company in India. The new company will have an access to over 40 million customers.
8. The BSE’s sensex opened 325 points higher, but later pared to 15,396, still showing a gain of 206 points. Sentiments were high in IT, bank and realty stocks. In bullion market, gold prices ended higher at Rs.12,200/10gm and silver at Rs.23,935/kg.