India and China saw bigger growth in the millionaire population last year than anywhere else, and wealth in the Asia-Pacific is expected to grow nearly 8 percent a year to 2012 despite a slowdown in the world at large, a survey showed.
The number of millionaires in the Asia-Pacific grew 8.7 percent from a year ago to 2.8 million people and their combined wealth soared 12.5 percent to $9.5 trillion, excluding the value of their homes and consumables, Merrill Lynch and Capgemini said at a news conference in Singapore on Wednesday.
Asia was home to some of the world's fastest-growing populations of millionaires, their annual World Wealth Report said, with India, China, Indonesia, South Korea and Singapore in the top ten in terms of growth.
The number of millionaires in India rose 22.7 percent to 123,000 people, the fastest growth in the world, and millionaires in China grew 20.3 percent to 415,000, making it home to the fifth-largest number of millionaires in the world, displacing France in that position.
Li Ka-shing, who controls a vast telecoms and property empire in Hong Kong and China, ranks as the world's 11th richest man, according to Forbes.
Globally, millionaires grew 6 percent to 10.1 million people and their wealth rose 9.4 percent to $40.7 trillion in the same period, the Merrill/Capgemini report said.
Kong Eng Huat, Merrill Lynch's Southeast Asia head of wealth management, said that in five years millionaires in Asia would have more combined wealth than those in Europe.
"Notwithstanding the recent dislocation in global markets, the robust economies in Asia are increasingly being driven by the domestic consumption story and continue to spur wealth creation in the region," he said.
Asian millionaires' wealth would grow annually by 7.9 percent to $13.9 trillion in 2012 against $13.5 trillion among Europe's wealthiest, or 4.9 percent annual growth, the report said.
LUXURY
Although rocky markets have forced Asian investors to conserve cash, they continue to pour money into luxury products such as jewellery and art.
"Luxury goods makers, high-end service providers and auction houses all found ready clients in the emerging markets of the world -- most notably China, India, Russia and the Middle East," the report said.
Soaring wealth, high savings and ample potential have made Asia the world's hottest market for international and private banks seeking to cater to the rich.
This has led to an influx of new players into Asia, such as Julius Baer, who are competing against established names such as UBS, HSBC and Citigroup.
The report also showed wealthy investors have shifted more money out of real estate and into bonds and cash.
The trend was most dramatic in the Asia-Pacific, where investors have cut real estate holdings by 9 percentage points from a year ago, to a fifth of their total investments.
But the report warned that the rich face the challenges of slower growth in developed markets hit by the credit crisis, as well as the risk of high inflation in emerging markets.
"The big shock this year has been higher inflation," said Stephen Corry, head of investment strategy in Asia at Merrill Lynch's global wealth management unit, at a news conference in Singapore.
"Inflation is the biggest risk for Asia and the global economy."
BSE News
Wednesday, June 25, 2008
Capital Gains Account Scheme
I had deposited Rs. 3 lakh in Capital Gains Account (CGA) Scheme out of the capital gains of Rs. 3.88 lakh with no tax payable in view of my exemption limit. I am, however, unable to find any residential property with the amount in my command. I wish to withdraw the amount before the three year period and pay tax. The bank is not aware of what they are required to do under the circumstance.”
The CGA Scheme provides for drawing the amount for application for purchase or construction of a residential property on a declaration given by the account holder. The amount is bound to be returned at the end of three years, if it is not drawn for the purpose for which it was so deposited. It becomes taxable in the year of withdrawal. It should be possible for a person to withdraw the amount even before the three year period, when he understands that he will not be able to avail himself of the benefit. If he then seeks to close the account, it can be done only with the approval of the assessing officer as provided in Clause 13 of the Scheme on application in Form G available in the annexure to the Scheme. The amount can then be withdrawn on deposit of Form G with the bank with consequent liability for capital gains tax.
The CGA Scheme provides for drawing the amount for application for purchase or construction of a residential property on a declaration given by the account holder. The amount is bound to be returned at the end of three years, if it is not drawn for the purpose for which it was so deposited. It becomes taxable in the year of withdrawal. It should be possible for a person to withdraw the amount even before the three year period, when he understands that he will not be able to avail himself of the benefit. If he then seeks to close the account, it can be done only with the approval of the assessing officer as provided in Clause 13 of the Scheme on application in Form G available in the annexure to the Scheme. The amount can then be withdrawn on deposit of Form G with the bank with consequent liability for capital gains tax.
Tax deducted at source: woes of senior citizens
“I am unable to express in words the shock I felt, when I came to know that an amount of rupees one thousand and odd has been deducted from my fixed deposit in a nationalised bank. “I am a senior citizen, with no pension. I very much depend on these savings for my day-to-day expenses and also for my medical bills. Last year, I paid a huge medical bill for an eye operation. My query is: (1) Should senior citizens also come under TDS over their meagre savings?; (2) How can any amount be deducted without prior intimation to the depositor? and (3) When a senior citizen does not come under the income-tax bracket, how can he be robbed of interest from his fixed deposit account. Will the Union Finance Ministry help me with an answer.”
Tax deduction has to be made from interest under Sec. 194A, when the payment exceeds Rs. 10,000 at the rate of 10 per cent. The fact that the recipient may be a senior citizen and/ or that his income is below taxable limit is not a matter of concern for the bank. In fact, banks have no authority to take such consideration into account and fail to deduct tax, except at the risk of loss of the tax so failed to be deducted along with interest and possible penalty for them. If the reader’s income falls below the taxable limit, there is remedy for the reader under the law. All that he has to do is to file Form 15H meant for senior citizens aged 65 years and above and Form 15G for others before interest becomes due. If it had been filed in time, tax would not have been deducted.
The reader can now file income-tax return for the year and get the refund of tax for which he is not liable. The complaint of the reader arises out of his ignorance and not on account of any high-handed action on the part of the bank as wrongly presumed by the reader. No prior intimation of tax deduction is necessary on the part of the bank.
Tax deduction has to be made from interest under Sec. 194A, when the payment exceeds Rs. 10,000 at the rate of 10 per cent. The fact that the recipient may be a senior citizen and/ or that his income is below taxable limit is not a matter of concern for the bank. In fact, banks have no authority to take such consideration into account and fail to deduct tax, except at the risk of loss of the tax so failed to be deducted along with interest and possible penalty for them. If the reader’s income falls below the taxable limit, there is remedy for the reader under the law. All that he has to do is to file Form 15H meant for senior citizens aged 65 years and above and Form 15G for others before interest becomes due. If it had been filed in time, tax would not have been deducted.
The reader can now file income-tax return for the year and get the refund of tax for which he is not liable. The complaint of the reader arises out of his ignorance and not on account of any high-handed action on the part of the bank as wrongly presumed by the reader. No prior intimation of tax deduction is necessary on the part of the bank.
KSK Energy Ventures Ltd
KSK Energy Ventures Ltd
Regitered Office : 8-2-293/82/A/431/A Road No 22, Jubilee Hills, Hyderabad - 500033, Andhra Pradesh, India
Phone : 91-40-23559922/23/24/25 Fax : 91-40-23559930
Email : investors@ksk.co.in Website : www.ksk.co.in
Public issue of 3,46,11,000 equity shares of Rs.10 each ("equity shares") of KSK Energy Ventures Limited ("KSK", or the "company", or the "issuer") for cash at a price of Rs.[*] per equity share, aggregating Rs.[*] crore (the "issue"). The issue will constitute 10% of the fully diluted post issue equity share capital of the company. Price band: Rs.240/- to Rs.255/- per equity share of face value Rs.10 each. The issue price is 24 times the face value at the lower end of the price band and 25.5 times the face value at the higher end of the price band.
Bid Book Built Portion Fixed Price Portion Money payable on
Opens on Closes on Opens on Closes on Opens on Closes on Application
Jun 23, 2008 Jun 25, 2008 Jun 23, 2008 Jun 25, 2008 Jun 23, 2008 Jun 25, 2008 Rs. 240.00-255.00
Minimum Application for shares in Nos (Book built portion) :25
Minimum Application for shares in Nos (Fixed price portion) :25
Further muliples of :25
Rs cr Book Running Lead Manager to the offer
Project Cost 0.00 Axis Bank Ltd
Edelweiss Capital LTd
IDFC-SSKI Private Ltd
Kotak Mahindra Capital Company Ltd
Lehman Brothers Securities Pvt Ltd
Morgan Stanley India Company Pvt Ltd
Project financed through current issue 830.66 -
Post Issue Equity share capital 346.10 Lead Manager to the offer
Issue Price Rs. 240.00 NA
Object of the issue : Investment in Sub. Co Wardha Power Company Pvt Ltd, General Corporate Purposes.
Promoted by Listing at Registrar to the Issue
S Kishore
K A Sastry
KSK Energy Ltd
BSE
NSE
-
Regitered Office : 8-2-293/82/A/431/A Road No 22, Jubilee Hills, Hyderabad - 500033, Andhra Pradesh, India
Phone : 91-40-23559922/23/24/25 Fax : 91-40-23559930
Email : investors@ksk.co.in Website : www.ksk.co.in
Public issue of 3,46,11,000 equity shares of Rs.10 each ("equity shares") of KSK Energy Ventures Limited ("KSK", or the "company", or the "issuer") for cash at a price of Rs.[*] per equity share, aggregating Rs.[*] crore (the "issue"). The issue will constitute 10% of the fully diluted post issue equity share capital of the company. Price band: Rs.240/- to Rs.255/- per equity share of face value Rs.10 each. The issue price is 24 times the face value at the lower end of the price band and 25.5 times the face value at the higher end of the price band.
Bid Book Built Portion Fixed Price Portion Money payable on
Opens on Closes on Opens on Closes on Opens on Closes on Application
Jun 23, 2008 Jun 25, 2008 Jun 23, 2008 Jun 25, 2008 Jun 23, 2008 Jun 25, 2008 Rs. 240.00-255.00
Minimum Application for shares in Nos (Book built portion) :25
Minimum Application for shares in Nos (Fixed price portion) :25
Further muliples of :25
Rs cr Book Running Lead Manager to the offer
Project Cost 0.00 Axis Bank Ltd
Edelweiss Capital LTd
IDFC-SSKI Private Ltd
Kotak Mahindra Capital Company Ltd
Lehman Brothers Securities Pvt Ltd
Morgan Stanley India Company Pvt Ltd
Project financed through current issue 830.66 -
Post Issue Equity share capital 346.10 Lead Manager to the offer
Issue Price Rs. 240.00 NA
Object of the issue : Investment in Sub. Co Wardha Power Company Pvt Ltd, General Corporate Purposes.
Promoted by Listing at Registrar to the Issue
S Kishore
K A Sastry
KSK Energy Ltd
BSE
NSE
-
Market takes repo rate, CRR hike in its stride
Short covering ahead of the expiry of June 2008 derivatives contracts tomorrow, 26 June 2008, helped the market stage a solid rebound from an initial slump caused by the Reserve Bank of India's move late evening yesterday, 24 June 2008, to hike the key lending rate in an aggressive attempt to combat over 11% inflation. The market snapped its five-day slide. The market breadth turned positive later in the day in contrast to a weak breadth earlier in the day.
Heavyweights Reliance Industries and Bharti Airtel, were at the centrestage of the recovery. European and most Asian markets, were in green which also helped the recovery on the battered domestic bourses.
RBI raised its key lending rate viz. the repo rate by 50 basis points to 8.5% with immediate effect, its highest since March 2002 and the second hike this month. It also increased the cash reserve ratio, the ratio of deposits banks must keep with it, to 8.75% from 8.25% in two 25-basis-point stages on 5 July 2008 and 19 July 2008.
The 30-share BSE Sensex gained 117.40 points or 0.83% at 14,223.98, as per provisional closing. At the day’s high of 14,247.16 hit in late trade, the Sensex gained 140.58 points. Sensex opened 333.27 points lower at 13,776.21 and slipped further to touch a low of 13,736.01 in early trade. At the day’s low, the Sensex lost 370.57 points.
The broader based S&P CNX Nifty surged 60.40 points or 1.44% at 4,251.50 as per provisional closing
The market breadth was positive. On BSE, 1379 shares advanced as compared to 1260 that declined. 68 remained unchanged.
The BSE Mid-Cap index was up 0.61% to 5,747.60 and the BSE Small-Cap index was up 0.87% to 7,067.42
The total turnover on BSE amounted to Rs 5240 crore as compared to Rs 3766 crore by 14:30 IST
Among the 30-member Sensex pack, 17 gained while the rest slipped.
Reliance Communications (RCom), the country’s second largest telecom services provider in terms of market capitalisation galloped 6.85% to Rs 507.40 on 31.95 lakh shares. It was the top gainer from Sensex pack. As per reports, RCom’s proposed merger deal with South Africa based global operator, MTN is expected to close by first week of July 2008
Shares from metal sector surged. Hindalco Industries (up 2.18% to Rs 147.90), Tata Steel (up 4.18% to Rs 741), JSW Steel (up 4.23% to Rs 1002), Sesa Goa (up 2.12% to Rs 3370), and Steel Authority of India (up 2.91% to Rs 150.45), were the other gainers from metal sector.
Bharat Heavy Electricals (Bhel), the country’s largest state-run engineering company in terms of order book, surged 3.88% to Rs 1445. As per recent reports, Bhel has paid 42.8% higher advance tax at Rs 300 crore in the first installment of this financial year over the corresponding period in the previous year.
However Larsen & Toubro, the country’s largest private sector engineering company in terms of order book slipped 0.16% to Rs 2307, after touching a low of Rs 2235.25. The stock is currently trading 1:1 cum bonus.
India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) advanced 4.05% to Rs 2149.95 on 13.16 lakh shares. RIL has reportedly signed a cooperation agreement with UAE-based Crescent Petroleum to jointly undertake projects of mutual interest in the region's energy sector.
Bharti Airtel (up 4.58% to Rs 785), Reliance Infrastructure (up 3.55% to Rs 943.30), and Ranbaxy Laboratories (up 4.12% to Rs 546.95), edged higher from Sensex pack.
India’s largest state-run oil exploration company Oil & Natural Gas Corporation (ONGC) rose 1.73% to Rs 870.10. The company posted 6.77% rise in net profit to Rs 16701.65 crore on 6.54% increase in net sales to Rs 64859.18 crore in the year ended March 2008 over the year ended March 2007. The company announced the results during trading hours today, 25 June 2007.
Real estate stocks rebounded from early lows. DLF (up 2.35% to Rs 450.20), Unitech (up 7% to Rs 182.60), Purvankara Projects (up 6.83% to Rs 183), Mahindra Lifespace Developers (up 2.45% to Rs 498), and Anant Raj Industries (up 0.81% to Rs 137), gained.
Auto stocks staged a sharp recovery from early lows. India’s top small car maker Maruti Suzuki India advanced 3.15% to Rs 700, off day’s low of Rs 640. However, Tata Motors (down 1.41% to Rs 475), and Mahindra & Mahindra (down 0.08% to Rs 537) declined.
Banking and financial shares though in the red pared losses. ICICI Bank (down 1.16% to Rs 697, off day’s low of Rs 675.10), State Bank of India (down 0.49% to Rs 1206, off day’s low of Rs 1155), and Kotak Mahindra Bank (down 2.55% to Rs 525, off day’s low of Rs 512.50), recovered from lower level
India’s largest dedicated housing finance company, Housing Development Finance Corporation slumped 4.47% to Rs 2165 on 1.83 lakh shares. It was the top loser from the Sensex pack.
Software pivotals were subdued after Indian rupee firmed against the dollar. Satyam Computer Services (down 1.12% to Rs 449), Wipro (down 2.59% to Rs 458), and Infosys (down 2.15% to Rs 1754.50), declined. However India’s largest software services exporter TCS vaulted 4.72% to Rs 883.80.
The partially convertible Indian rupee was trading at 42.78/79 per dollar in afternoon trade, stronger than Tuesday's close of 42.9625/9700. A firm rupee impacts margins of IT firms negatively as they derive majority of their revenue from exports to the US.
ITC (down 2.65% to Rs 186), Cipla (down 2.75% to Rs 207.15), and Grasim (down 2% to Rs 2046), edged lower from the Sensex pack.
Sugar stocks gained on momentum buying. Shree Renuka Sugars (up 8.55% to Rs 112.30), Bajaj Hindustan (up 1.87% to Rs 183.50), Balrampur Chini Mills (up 2.89% to Rs 85.40), Uttam Sugar Mills (up 4.94% to Rs 61.60), and Sakthi Sugar (up 4.54% to Rs 67.90), surged.
Spice Communication was the top traded counter on BSE with total turnover of Rs 339.39 crore followed by Reliance Capital (Rs 321.40 crore), Reliance Industries (Rs 276.49 crore), Reliance Petroleum (Rs 196.23 crore), and ONGC (Rs 156.66 crore), in that order.
Spice Communication surged 32.93% to Rs 72.25 on huge volumes of 4.87 crore shares after Idea Cellular said it will buy 40.8% stake in the company at Rs 77.30 a share. Meanwhile, shares of Idea Cellular were up 2.37% at Rs 101.50.
Idea Cellular said it would merge Spice with itself through a share swap whereby Spice shareholders would get 49 Idea shares for every 100 Spice shares held. Idea also said that it would make an open offer for additional 20% stake to Spice Communicaton shareholders at Rs 77.30 a share.
In a crucial event on the political front, an UPA-Left committee on the Indo-US nuclear deal will meet later today, 25 June 2008, to discuss the deal. However, it is difficult to say whether there will be a concrete outcome or not. The Left parties have already made it clear that they withdraw their support to the government if it moves ahead with the nuclear deal. This could further worsen the already weak stock market sentiment.
Volatility is likely to remain high as derivatives contracts for June series expire on Thursday, 26 June 2008. As per reports, the marketwide rollover of positions from June 2008 series to July 2008 series stood at 43.10% while that of Nifty was 44.70%, as on Tuesday, 24 June 2008.
Crude oil prices rose 26 cents to settle at $137.00 a barrel yesterday, 24 June 2008, on the New York Mercantile Exchange
European markets, which opened after Indian market, were trading higher in early trade. Key benchmark indices in United Kingdom, France and Germany were up by between 0.44% and 1.09%.
Asian markets, which opened before Indian market were trading mixed today, 25 June 2008. China's Shanghai Composite (up 3.65% at 2,905.54), South Korea's Seoul Composite (up 0.41% at 1,717.91), Taiwan Weighted (up 1.51% at 7,855.06), Hang Seng (up 0.64% to 22,598.79), Singapore's Straits Times (up 0.37% at 2,973.30) advanced. However, Japan's Nikkei slipped 0.14% at 13,829.92
US markets ended lower yesterday, 24 June 2008 on concerns about the economy, after a report showed consumer confidence hit a 16-year low. The Dow Jones industrial average lost 34.93 points, or 0.29%, to 11,807.43. The Standard & Poor's 500 index fell 3.71 points, or 0.28%, to 1,314.29, and the Nasdaq composite index declined 17.46 points, or 0.73%, to 2,368.28.
Source: Capital Market
Heavyweights Reliance Industries and Bharti Airtel, were at the centrestage of the recovery. European and most Asian markets, were in green which also helped the recovery on the battered domestic bourses.
RBI raised its key lending rate viz. the repo rate by 50 basis points to 8.5% with immediate effect, its highest since March 2002 and the second hike this month. It also increased the cash reserve ratio, the ratio of deposits banks must keep with it, to 8.75% from 8.25% in two 25-basis-point stages on 5 July 2008 and 19 July 2008.
The 30-share BSE Sensex gained 117.40 points or 0.83% at 14,223.98, as per provisional closing. At the day’s high of 14,247.16 hit in late trade, the Sensex gained 140.58 points. Sensex opened 333.27 points lower at 13,776.21 and slipped further to touch a low of 13,736.01 in early trade. At the day’s low, the Sensex lost 370.57 points.
The broader based S&P CNX Nifty surged 60.40 points or 1.44% at 4,251.50 as per provisional closing
The market breadth was positive. On BSE, 1379 shares advanced as compared to 1260 that declined. 68 remained unchanged.
The BSE Mid-Cap index was up 0.61% to 5,747.60 and the BSE Small-Cap index was up 0.87% to 7,067.42
The total turnover on BSE amounted to Rs 5240 crore as compared to Rs 3766 crore by 14:30 IST
Among the 30-member Sensex pack, 17 gained while the rest slipped.
Reliance Communications (RCom), the country’s second largest telecom services provider in terms of market capitalisation galloped 6.85% to Rs 507.40 on 31.95 lakh shares. It was the top gainer from Sensex pack. As per reports, RCom’s proposed merger deal with South Africa based global operator, MTN is expected to close by first week of July 2008
Shares from metal sector surged. Hindalco Industries (up 2.18% to Rs 147.90), Tata Steel (up 4.18% to Rs 741), JSW Steel (up 4.23% to Rs 1002), Sesa Goa (up 2.12% to Rs 3370), and Steel Authority of India (up 2.91% to Rs 150.45), were the other gainers from metal sector.
Bharat Heavy Electricals (Bhel), the country’s largest state-run engineering company in terms of order book, surged 3.88% to Rs 1445. As per recent reports, Bhel has paid 42.8% higher advance tax at Rs 300 crore in the first installment of this financial year over the corresponding period in the previous year.
However Larsen & Toubro, the country’s largest private sector engineering company in terms of order book slipped 0.16% to Rs 2307, after touching a low of Rs 2235.25. The stock is currently trading 1:1 cum bonus.
India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) advanced 4.05% to Rs 2149.95 on 13.16 lakh shares. RIL has reportedly signed a cooperation agreement with UAE-based Crescent Petroleum to jointly undertake projects of mutual interest in the region's energy sector.
Bharti Airtel (up 4.58% to Rs 785), Reliance Infrastructure (up 3.55% to Rs 943.30), and Ranbaxy Laboratories (up 4.12% to Rs 546.95), edged higher from Sensex pack.
India’s largest state-run oil exploration company Oil & Natural Gas Corporation (ONGC) rose 1.73% to Rs 870.10. The company posted 6.77% rise in net profit to Rs 16701.65 crore on 6.54% increase in net sales to Rs 64859.18 crore in the year ended March 2008 over the year ended March 2007. The company announced the results during trading hours today, 25 June 2007.
Real estate stocks rebounded from early lows. DLF (up 2.35% to Rs 450.20), Unitech (up 7% to Rs 182.60), Purvankara Projects (up 6.83% to Rs 183), Mahindra Lifespace Developers (up 2.45% to Rs 498), and Anant Raj Industries (up 0.81% to Rs 137), gained.
Auto stocks staged a sharp recovery from early lows. India’s top small car maker Maruti Suzuki India advanced 3.15% to Rs 700, off day’s low of Rs 640. However, Tata Motors (down 1.41% to Rs 475), and Mahindra & Mahindra (down 0.08% to Rs 537) declined.
Banking and financial shares though in the red pared losses. ICICI Bank (down 1.16% to Rs 697, off day’s low of Rs 675.10), State Bank of India (down 0.49% to Rs 1206, off day’s low of Rs 1155), and Kotak Mahindra Bank (down 2.55% to Rs 525, off day’s low of Rs 512.50), recovered from lower level
India’s largest dedicated housing finance company, Housing Development Finance Corporation slumped 4.47% to Rs 2165 on 1.83 lakh shares. It was the top loser from the Sensex pack.
Software pivotals were subdued after Indian rupee firmed against the dollar. Satyam Computer Services (down 1.12% to Rs 449), Wipro (down 2.59% to Rs 458), and Infosys (down 2.15% to Rs 1754.50), declined. However India’s largest software services exporter TCS vaulted 4.72% to Rs 883.80.
The partially convertible Indian rupee was trading at 42.78/79 per dollar in afternoon trade, stronger than Tuesday's close of 42.9625/9700. A firm rupee impacts margins of IT firms negatively as they derive majority of their revenue from exports to the US.
ITC (down 2.65% to Rs 186), Cipla (down 2.75% to Rs 207.15), and Grasim (down 2% to Rs 2046), edged lower from the Sensex pack.
Sugar stocks gained on momentum buying. Shree Renuka Sugars (up 8.55% to Rs 112.30), Bajaj Hindustan (up 1.87% to Rs 183.50), Balrampur Chini Mills (up 2.89% to Rs 85.40), Uttam Sugar Mills (up 4.94% to Rs 61.60), and Sakthi Sugar (up 4.54% to Rs 67.90), surged.
Spice Communication was the top traded counter on BSE with total turnover of Rs 339.39 crore followed by Reliance Capital (Rs 321.40 crore), Reliance Industries (Rs 276.49 crore), Reliance Petroleum (Rs 196.23 crore), and ONGC (Rs 156.66 crore), in that order.
Spice Communication surged 32.93% to Rs 72.25 on huge volumes of 4.87 crore shares after Idea Cellular said it will buy 40.8% stake in the company at Rs 77.30 a share. Meanwhile, shares of Idea Cellular were up 2.37% at Rs 101.50.
Idea Cellular said it would merge Spice with itself through a share swap whereby Spice shareholders would get 49 Idea shares for every 100 Spice shares held. Idea also said that it would make an open offer for additional 20% stake to Spice Communicaton shareholders at Rs 77.30 a share.
In a crucial event on the political front, an UPA-Left committee on the Indo-US nuclear deal will meet later today, 25 June 2008, to discuss the deal. However, it is difficult to say whether there will be a concrete outcome or not. The Left parties have already made it clear that they withdraw their support to the government if it moves ahead with the nuclear deal. This could further worsen the already weak stock market sentiment.
Volatility is likely to remain high as derivatives contracts for June series expire on Thursday, 26 June 2008. As per reports, the marketwide rollover of positions from June 2008 series to July 2008 series stood at 43.10% while that of Nifty was 44.70%, as on Tuesday, 24 June 2008.
Crude oil prices rose 26 cents to settle at $137.00 a barrel yesterday, 24 June 2008, on the New York Mercantile Exchange
European markets, which opened after Indian market, were trading higher in early trade. Key benchmark indices in United Kingdom, France and Germany were up by between 0.44% and 1.09%.
Asian markets, which opened before Indian market were trading mixed today, 25 June 2008. China's Shanghai Composite (up 3.65% at 2,905.54), South Korea's Seoul Composite (up 0.41% at 1,717.91), Taiwan Weighted (up 1.51% at 7,855.06), Hang Seng (up 0.64% to 22,598.79), Singapore's Straits Times (up 0.37% at 2,973.30) advanced. However, Japan's Nikkei slipped 0.14% at 13,829.92
US markets ended lower yesterday, 24 June 2008 on concerns about the economy, after a report showed consumer confidence hit a 16-year low. The Dow Jones industrial average lost 34.93 points, or 0.29%, to 11,807.43. The Standard & Poor's 500 index fell 3.71 points, or 0.28%, to 1,314.29, and the Nasdaq composite index declined 17.46 points, or 0.73%, to 2,368.28.
Source: Capital Market
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