Post Session Commentary - Oct 16 2008

The Indian market on Thursday ended in red terrain due to global melt down after shedding some of its earlier loses. Market witnessed some pullback during final trading on some bouts of buying led by eased inflation. However, Finance Minister P Chidambaram's announcement to enhance liquidity along with RBI's cut in CRR by 100 bps to 6.5% had not contributed much to lift the sentiment. BSE Sensex went past 10,600 level and NSE Nifty ended below 3,300 mark. The domestic market started the day in deep red on global recession worries. Weak U.S. data renewed fears about sharp global economic slowdown. US retail sales in September tumbled for the third consecutive month to 1.2% month-over-month, which is largest decline in three years. Sales are down 1% as compared to last year, marking the first year-over-year decline since October 2002. Further market continued to trade downward till after noon but marginal recovery in European markets led smart recovery in Indian markets from days low. Market was not able to continue the momentum of its recovery and finally ended lower. On the sectoral front, most of the selling pressure was led by Capital Goods, Oil & Gas, Metal, IT and Auto stocks. However, Reality, FMCG and Bank stocks were in limelight as witnessed most of the selling from these baskets.

Among the Sensex pack 14 ended in red while 16 in green. The market breadth was negative as 1733 stocks closed in red while 834 stocks closed in green and 56 stocks remained unchanged on BSE.

The BSE Sensex closed lower by 227.63 points at 10,581.19 and NSE Nifty ended down by 69.1 points at 3,369.3. The BSE Mid Caps and Small Caps closed with loss of 63.35 points at 3,657.13 and by 107.09 points at 4,286.36. The BSE Sensex touched intraday high of 10,787.2 and intraday low of 10,017.8.

Wholesale price index reduced to 11.44% for the week ended 4th October 2008, as against the previous week's 11.80% mainly due to cooling off global commodity prices.

Losers from BSE Sensex pack are Hindalco (12.15%), Tata Motors (11.17%), TCS Ltd (8.64%), Grasim Indus (8.05%), Relaince (8.03%), L&T Ltd (7.55%), M&M Ltd (6.71%), BHEL (5.83%), Infosys Tech (4.85%), ONGC Ltd (4.22%) and HDFC Bank (4.15%).

Gainers from BSE Sensex pack are Reliance Communication Ltd (9.80%), DLF Ltd (8.25%), HUL (7.22%), HDFC (5.17%), SBI (3.13%), JP Associates (2.82%), Sterlite Indus (2.21%), HDFC (6.90%), Bharti Airtel (1.76%) and ITC Ltd (1.03%).

The BSE Capital Goods index closed lower by 423.21 points at 7,664.8. Losers are Suzlon Energy (8.91%), L&T Ltd (7.55%), Usha Martin (5.92%), Lakshmi MA W (5.84%), BHEL (5.83%) and Ealchand Industries (4.78%).

The BSE Oil & Gas index plunged 403.1 points to close at 6,827.77 as Cairn Ind (8.29%), Reliance (8.03%), ONGC Ltd (4.22%), Reliance Petroleum (3.49%) and Essar Oil Ltd (3.11%) ended in negative territory.

The BSE Metal index tumbled 135.98 points to close at 6,379.87. Major losers are Nalco (14.14%), Hindalco (12.15%), JSW Steel (5.53%), Tata Steel (1.28%) and Jindal Saw (1.01%).

The BSE Auto index ended down by 113.55 points at 3,195.91. Losers are Tata Motors (11.17%), Exide Indus (7.24%), Bharat Forge (6.84%), M&M Ltd (6.71%), Apollo Tyre (5.56%) and Excorts Ltd (4.56%).

The IT index lost 111.02 points to close at 2,669.17 as Financ Tech (10.17%), TCS Ltd (8.64%), Rolata India (8.28%), Tech Mahindra (5.70%), Oracle Fin (5.46%) and Infosys Tech (4.85%) in negative territory.

The BSE Reality index gained 137.78 points to close at 2,813.26. Major gainers are DLF Ltd (8.25%), Housing Dev (7.22%), Unitech Ltd (6.88%), Ansal Infra (5.66%), Sobah Dev (5.34%) and Mahindra Life (4.29%).

BSE Bulk Deals to Watch - Oct 16 2008

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
16/10/2008 532946 BANG MARUTI SECURITIES LTD B 73326 264.60
16/10/2008 515035 BELL CERAMIC MEGA RESOURCES LTD S 120924 4.00
16/10/2008 531489 CG VAK SOF E CHANDRIKA PRAVINBHAI PATEL B 40251 6.07
16/10/2008 531489 CG VAK SOF E SWAPNA AGRAWAL S 40000 6.07
16/10/2008 530393 DB(INTR) STBR RECTOR INVESTMENTS PRIVATE LIMITED S 25000 21.65
16/10/2008 508860 DIAMANT INV FANCY INVESTRADE PVT LTD B 50450 87.60
16/10/2008 508860 DIAMANT INV DISTENT BARTER PVT LTD B 29250 87.60
16/10/2008 508860 DIAMANT INV SARSWATI VINCOM LTD S 29450 87.60
16/10/2008 508860 DIAMANT INV FOUNTAIN VANIJYA PVT LTD S 50000 87.60
16/10/2008 502865 FORBES & CO SEEPRA SUMEET KABRA B 77572 387.62
16/10/2008 502865 FORBES & CO SPS CAPITAL AND MONEY MNG SERVICES P.LTD S 67889 387.18
16/10/2008 532832 INDBUL REAL FIDELITY FUNDS EMERGING MARKETS FUND S 3600000 101.37
16/10/2008 531861 JOINDR CAP S JAYESHSHAH S 104200 10.25
16/10/2008 531687 KARUTURI GLO CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD B 3625000 10.95
16/10/2008 531687 KARUTURI GLO BSMA LIMITED S 3625000 10.95
16/10/2008 509011 LIVINGROOM L DASKABITA B 12500 39.10
16/10/2008 590057 NORTHGATE TE MARSHAL INDIA SECLECT FUND LTD B 850000 72.05
16/10/2008 590057 NORTHGATE TE CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED S 840597 72.05
16/10/2008 531611 PRRANET INDU CHAMPALAL CHOUHAN B 1000000 1.55
16/10/2008 526049 SHRILAKSHMI NAV NIRMAN MERCANTILES LTD B 102838 34.34
16/10/2008 522085 STONE INDI L SANJIV DHIRESH BHAI SHAH S 44125 34.77
16/10/2008 531866 SUBHKAM CAP FANCY INVESTRADE PVT LTD B 34000 190.00
16/10/2008 531866 SUBHKAM CAP ANSU COMMERCIAL PVT LTD S 34000 190.00
16/10/2008 514211 SUMEET INDUS ATMARAM SARDA S 146933 7.02
16/10/2008 504605 UNIABEX AL P MONEYBEE SECURITIES PVT LTD B 30000 66.00
16/10/2008 504605 UNIABEX AL P MONEYBEE COMMODITIES PVT LTD S 29500 66.00

NSE Bulk Deals to Watch - Oct 16 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
16-OCT-2008,20MICRONS,20 Microns Limited,PRASHANT JAYANTILAL PATEL,BUY,259972,25.85,-
16-OCT-2008,GRABALALK,Grabal Alok Impex Limited,PASHA FINANCE PVT LTD,BUY,199161,40.00,-
16-OCT-2008,GREENPLY,Greenply Industries Ltd,BLUE MOON SECURITIES PVT. LTD.,BUY,426500,75.02,-
16-OCT-2008,GUJNRECOKE,GUJARAT N R E COKE LTD,BRINDA DEALING PRIVATE LIMITED,BUY,1784918,39.84,-
16-OCT-2008,IFCI,IFCI Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,BUY,3951336,24.65,-
16-OCT-2008,KNL,Karuturi Networks Limited,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,BUY,3625000,10.95,-
16-OCT-2008,PNC,Pritish Nandy Comm. Ltd.,JMDE PACKAGING AND REALTIES LIMITED,BUY,106000,19.02,-
16-OCT-2008,PNC,Pritish Nandy Comm. Ltd.,TAKESHI INVESTRADE PRIVATE LIMITED,BUY,2,18.90,-
16-OCT-2008,20MICRONS,20 Microns Limited,PRASHANT JAYANTILAL PATEL,SELL,184994,27.01,-
16-OCT-2008,20MICRONS,20 Microns Limited,VALLABH REALTORS PVT LTD,SELL,74647,22.59,-
16-OCT-2008,GRABALALK,Grabal Alok Impex Limited,SOMERSET IND FUND- RHODES FCCB,SELL,199240,40.00,-
16-OCT-2008,GREENPLY,Greenply Industries Ltd,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,SELL,426695,75.00,-
16-OCT-2008,IFCI,IFCI Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,SELL,3786646,24.69,-
16-OCT-2008,KNL,Karuturi Networks Limited,BSMA LIMITED,SELL,3625000,10.95,-
16-OCT-2008,PNC,Pritish Nandy Comm. Ltd.,TAKESHI INVESTRADE PRIVATE LIMITED,SELL,106020,19.02,-

Eleventh-hour buying saves grace

Weak global cues and negative breadth in yesterday's trades led the market open at a lower today. The Sensex was 524 points down at the opening bell and remained subdued, as investors booked profits after the recent gains. Oil & Gas and capital goods (CG) stocks took the major beating, but realty stocks bucked the downtrend on gains in Unitech and Housing Development and Infrastructure (HDIL). The index capitulated under selling pressure by afternoon and slipped to the day's low of 10,018. While the market fluctuated sharply thereafter, firm bullish sentiment and strong buying in heavyweights and realty stocks in late trades helped the Sensex erase most of its losses. The Sensex finally ended the session by shedding 2.11% or 228 points at 0,581. Nifty slipped by 69 points at 3,269.

The market breadth was negative. Of the 2,622 stocks traded on the BSE, 1,733 stocks declined whereas 833 stocks advanced. Fifty seven stocks ended unchanged. Most of the sectoral indices ended in the red. The BSE Oil & Gas dropped 5.57% at 6,827 followed by BSE CG (down 5.23% at 7,665), BSE IT (down 3.99% at 2,669) and BSE Auto (down 3.43% at 3,196). However, BSE Realty gained 5.15% at 2,813 and BSE FMCG was up 1.73% at 1,903.

Heavyweights led the fall in the Sensex. Hindalco Industries slipped by 12.15% at Rs69.75, Tata Motors slumped by 11.17% at Rs250.55, Tata Consultancy Services shed 8.64% at Rs495.20, Grasim Industries lost 8.05% at Rs1,371.75, Reliance Industries was down 8.03% at Rs1,397.25 and Larsen & Toubro (L&T) tumbled by 7.55% at Rs825.75. Among the gainers Reliance Communications jumped 9.80% at Rs258.90, DLF gained 8.25% at Rs324.90, Hindustan Unilever soared 7.22% at Rs247.90, HDFC rose by 5.17% at Rs1,801.15 and the State Bank of India (SBI) was up 3.13% at Rs1,543.90, while JP Associates, Sterlite Industries, Bharti Airtel and ITC ended with modest gains.

Over 1.21 crore IFCI shares changed hands on the BSE followed by Chambal Fertilisers and Chemicals (1.16 crore shares), Reliance Natural Resources (1.07 crore shares) and Suzlon Energy (0.96 crore shares).

Reliance Industries registered a turnover of Rs418 crore on the BSE followed by Reliance Capital (Rs258 crore), ICICI Bank (Rs239 crore), SBI (Rs212 crore) and L&T (Rs170 crore).

Turnover surges

RIL October 2008 futures at discount

Nifty October 2008 futures were near spot price at 3269.90, as compared to the spot closing of 3269.30. NSE's futures & options (F&O) segment turnover was Rs 55,892.70 crore, which was higher than Rs 43,996.07 crore on Wednesday, 15 October 2008.

Reliance Industries (RIL) October 2008 futures were at discount at 1390.95 compared to the spot closing of 1391.95.

ICICI Bank October 2008 futures were at premium at 417.20 compared to the spot closing of 416.15.

NTPC October 2008 futures were at premium at 166.35 compared to the spot closing of 165.90.

In the cash market, the S&P CNX Nifty lost 69.10 points or 2.07% at 3269.30.

Asian equities nosedive as investors fear the worse is yet to come

Major indices back on losing track as initial gains in the week get eroded

Asian equity markets plummeted sharply today as investors feared that the worst is yet to come for the global equity markets following a more than 700 points slide on the wall street yesterday. The massive collapse in the US equity markets, which came on the back of signs that the world's largest economy deteriorated throughout the last month, spread the worries around that the last week's hammering might not be the end of the tough times for the global equities. The current slide meant that all of the indices have lost out an opportunity to build up on the gains recorded at the start of the current week.

The US Federal Reserve said in its Beige book yesterday that "Economic activity weakened in September across all 12 Federal Reserve districts," The report is published two weeks before officials meet to set interest rates. "Consumer spending decreased in most districts, with declines reported in retailing, auto sales and tourism.", the Fed noted further.

With the economy weakening under the effect of the yearlong financial crisis and housing recession, and with consumer prices easing, most investors anticipate the Fed will lower interest rates by a quarter of a point Oct. 29, following up on an emergency rate cut a week ago.

However, the prospects of weakening interest rates are failing to calm the fretted nerves around the globe as the equity market investors are unwilling to enter in the markets given that the secular, synchronized run in the world equities seems to have ended to give way for a period of prolonged stress amid shrinking global economic activity.

In the major news today, UBS AG, Switzerland's biggest bank, was forced into a $59.2 billion government bailout after piling up the biggest losses of any European lender from the global credit crisis. UBS will get a 6 billion Swiss francs capital injection from the government to help it set up a fund for as much as $60 billion of toxic assets that will be supported by the central bank.

All Asian equities were hammered with Japanese stocks getting thrashed as the Nikkei 225 Average plummeted by more than 11% for its worst single-day performance in more than two decades. The Kospi index plummeted 9.4% while the Chinese markets dropped more than 4%. The indices also faced a similar pounding with BSESENSEX ending down 2.11%, Jakarta Composite losing 3.76 and the Philippines stock exchange plunging 5.18%.

PSU banks rally on rate cut hopes

The key benchmark indices ended lower in choppy late trading sessions on global recession worries and on Indian stock market regulator's decision to raise margins in the derivatives segment. Sensex ended down 227.63 points or 2.11%. Measures by the central bank to boost liquidity in the banking system failed to avert a slide. Nevertheless, the market made a strong rebound from a sharp intraday fall as European stocks cut initial steep losses.

Banking stocks bounced back as fall in inflation raised hopes for cut in interest rates. Index stocks, Sterlite Industries, Reliance communications, HDFC, Bharti Airtel, and Tata Steel recovered sharply from their lows. European markets were down between 3.14% to 3.91%, after having fallen as much as 5.6% earlier on global recession worries. Trading in US index futures suggested the Dow would fall 14 points at the opening bell.

The BSE 30-share Sensex lost 227.63 points or 2.11% to 10,581.49. The index declined 791.32 points at the day's low of 10,017.80 hit in early afternoon trade, its lowest level since 24 July 2006. The Sensex fell 22 points at day's high of 11,787.20 in mid-afternoon trade.

The S&P CNX Nifty ended down 69.10 points or 2.07% to 3,269.30. It hit a low of 3,099.90, its lowest level since 26 July 2006.

The barometer index BSE Sensex is down 9,705.50 points or 47.84% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 10,625.28 points or 50.1% below its all-time high of 21,206.77 struck on 10 January 2008.

BSE clocked a turnover of Rs 4540 crore today as compared to a turnover of Rs 3,581.21 crore on 15 October 2008.

Nifty October 2008 futures were near spot price at 3269.90, as compared to spot closing of 3269.30. NSE's futures & options (F&O) segment turnover was Rs 55,892.70 crore, which was higher than Rs 43,996.07 crore on Wednesday, 15 October 2008.

The BSE Mid-Cap index was down 1.7% at 3,657.23 outperformed Sense and The BSE Small-Cap index was down 2.44% at 4,286.36 underperformed the Sensex.

BSE Oil & Gas index (down 5.57% to 6,827.77), BSE Capital Goods index (down 5.23% to 7,664.80), BSE IT index (down 3.99% to 2,669.17), BSE Auto index (down 3.43% to 3,195.91), BSE Power index (down 2.24% to 1,863.01), BSE Metal index (down 2.15% to 6,179.87) underperformed the Sensex.

BSE Realty index (up 5.15% to 2,813.26), BSE FMCG index (up 1.73% to 1,902.51), BSE Consumer Durables index (up 0.75% to 2,141.90), BSE Bankex (up 0.43% to 5,866.76), BSE HealthCare index (down 0.93% to 3,297.32), BSE PSU index (down 1.1% to 5,494.30), BSE Teck index (down 1.45% to 2,198.21), outperformed the Sensex.

The market breadth was weak. On BSE, 833 shares advanced as compared to 1,733 that declined. 57 shares remained unchanged.

India's largest private sector company by market capitalization and oil refiner Reliance Industries fell 8.03% to Rs 1,397.25. The stock came off from a 52-week low of Rs 1,327. The stock declined for the second day in a row today on fears the company may report fall in its gross refining margins in Q2 September 2008 over Q2 September 2007 largely due to sluggish demand for petroleum products in key Western markets. The stock had slumped 6.2% yesterday, 15 October 2008.

Metal stocks recovered from lower level. Sterlite Industries rose 2.21% to Rs 298.80, off the day's low of Rs 255.50. India's largest steel maker by sales Tata Steel fell 1.28% to Rs 269.75 off day's low of Rs 251.10.

Telecom stocks bounced back. India's largest telecom services provider by market share Bharti Airtel rose 1.79% to Rs 731.45 off the day's low of Rs 655. India's second largest telecom services provider by sales Reliance Communications jumped 9.8% to Rs 258.90, off the day's low of Rs 214.20 and was the major gainer form the Sensex pack.

Jaiprakash Associates (up 2.82% to Rs 77), Reliance Infrastructure (up 0.31% to Rs 557.40), Tata Power Company (up 0.7% to Rs 800) edged higher from the Sensex pack.

Among the major losers from the Sensex pack were Hindalco Industries (down 12.15% to Rs 69.75), Tata Motors (down 11.17% to Rs 250.55), Grasim Industries (down 8.05% to Rs 1,375.50), Larsen & Toubro (down 7.55% to Rs 825.75).

Softening of inflation and the cental bank's liquidity boosting measures triggered recovery in bank stocks from an initial slump. India's largest private sector bank by net profit ICICI Bank rose 0.19% to Rs 415 off the session's low of Rs 376.25. ICICI Bank ADR slumped 14.19% in US on 15 October 2008.

India's largest private sector bank by net profit HDFC Bank dipped 4.15% to Rs 1,087.35, off the day's low of Rs 1,041. HDFC Bank's net profit rose 42.28% to Rs 527.98 crore on 62.88% rise in total income to Rs 4634.32 crore in Q2 September 2008 over Q2 September 2007. The bank company announced the result at the closing trade today 16 October 2008

State Bank of India, India's biggest commercial bank, was up 3.13% to Rs 1,543.90 off day's low of Rs 1,420.55.

A host of other state-run banks rose. Punjab National Bank, Indian Bank, Corporation Bank, Dena Bank IDBI Bank, Canara Bank, Bank of India, Syndicate Bank, Bank of Baroda, Union Bank of India, Allahabad Bank and Indian Overseas Bank rose between 2.03% to 8.07%.

India's largest home loan lender by sales HDFC rose 6.27% to Rs 1,820, off the day's low of Rs 1,600.

IndusInd Bank surged 3.91%, as net profit jumped 50.67% to Rs 33.66 crore in Q2 September 2008 over Q2 September 2007.

Lower inflation may trigger cut in interest rate by the Reserve Bank of India (RBI) which may spur lending. Inflation based on the whole price index rose 11.44% in year through 4 October 2008, lower than previous week's 11.8% rise, data released by the government today, 16 October 2008, showed.

The Reserve Bank of India cut cash reserve ratio by 100 basis points and announced a slew of other measures on Wednesday, 15 October 2008, including disbursal of Rs 25,000 crore to banks for farm loan waiver scheme, to boost liquidity in the banking system.

The BSE Realty index surged 5.15% to 2,813.26, on hopes of reduction in interest rates on home loans. The index bounced back from a record low of 2,436.55 struck in the day. India's largest real estate player by sales DLF rose 8.25% to Rs 324.90 off day's low of Rs 279.80. Housing Development & Infrastructure, Indiabulls Real Estate and Unitech rose between 1.13% to 7.22%.

IT stocks cut initial losses on weak rupee. India's third largest IT exporter by sales Satyam Computer Services down rose 0.26% to Rs 273.05, off the session's lows of Rs 240. India's largest IT exporter by sales Infosys fell 4.85% to Rs 1,266.70 off the day's low of Rs 1,101. Infosys' American depository receipt (ADR) tanked 10.98% overnight.

India's largest IT exporter by sales Tata Consultancy Services fell 8.86% to Rs 495.20 off the day's low of Rs 467. Most IT companies earn their revenue in dollars and fall in rupee results in higher revenue. The partially convertible rupee was at 49.00/15 per dollar compared with Wednesday's close of 48.525/540.

India's largest steel maker by sales Tata Steel fell 1.28% bouncing back from 52-week low after its UK unit signed pact for procuring iron ore, a key raw material.

Allcargo Global Logistics slumped 4.91% on BSE, even as the company decided to consider stock-split proposal.

Oil exploration firm Cairn India slumped 8.29% on BSE as fall in crude oil price to a 14-month low will reduce realisations.

Refex Refrigerants was locked at 5% lower limit at Rs 76.10 on BSE, as net profit fell 23.3% to Rs 2.76 crore in Q2 September 2008 over Q2 September 2007.

Orchid Chemicals & Pharmaceuticals rose 0.96% after the company received US Food & Drug Administration approval for a new drug.

Biocon fell 3.13% as net profit fell 23.81% to Rs 33.53 crore in Q2 September 2008 over Q2 September 2007.

Monnet Ispat Energy declined 8.24%, even as the company decided to consider a proposed for buyback of its own shares.

Financial Technologies India tumbled 10.17% on BSE, after the company announced an overseas acquisition

HCL Technologies lost 1.49% despite reporting turnaround results in Q1 September 2008.

Container Corporation of India declined 3.80% on BSE, despite net profit surging 28.48% to Rs 223.68 crore in Q2 September 2008 over Q2 September 2007.

IFCI clocked the highest volume of 1.21 crore shares on BSE. Chambal Fertilisers and Chemicals (1.16 crore shares), Reliance Natural Resources (1.07 crore shares), Indiabulls Real Estate (96.9 lakh shares) and Suzlon Energy (86.03 lakh shares) were the other volume toppers in that order.

Reliance Industries clocked the highest turnover of Rs 418.91 crore on BSE. Reliance Capital (Rs 258.68 crore), ICICI Bank (Rs 239.24 crore), State Bank of India (Rs 212.86 crore) and Larsen & Toubro (Rs 170.59 crore) were the other turnover toppers in that order.

The market regulator Securities & Exchange Board of India (Sebi) has tightened margins in the derivatives segment to ward defaults and curb volatility. The exposure margin for gross open positions in single stock futures and gross open positions in stock options will now be higher of 10% or 1.5 times the standard deviation in the notional value of the positions.

A warning of tough times ahead by Federal Reserve Chairman Ben Bernanke sent Asian markets sharply lower, as investors brace for looming recession. Key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan were down by between 3.25% to 11.41%.

Shrugging off recent optimism about massive government efforts to prop up the global financial system Wall Street , yesterday, 15 October 2008, suffered its worst one-day percentage decline since the stock market crash of 1987.

Crude oil for November delivery fell as much as $1.58, or 2.1%, to $72.96 a barrel on the New York Mercantile Exchange on 15 October 2008, the lowest since 30 August, 2007.

Glaxo

FMCG stocks have withstood the market fall better than others, but with the ongoing 'flight to safety' bidding up their prices, frontline stocks in the sector are now quite expensive in relation to the rest of the market. GlaxoSmithKline Consumer Healthcare — a mid-sized FMCG company — is an exception to this.

At the current market price of about Rs 545, the stock trades at a PE of just about 11 times its estimated earnings for CY2009, at a substantial discount to companies such as Dabur India and Nestle India. Investors can accumulate the stock.

Given the limited liquidity in the stock and the risk of further downside for the market, acquiring the stock in a phased manner is advisable.

The stock is well suited for an investor seeking a 15 per cent annual return with relatively low downside risk.
Extensions drive volumes

With a 70 per cent market share, GSK Consumer Healthcare dominates the nutritional drinks market with brands such as Horlicks, Boost, Viva and Maltova in its portfolio. Distribution of OTC brands such as Eno, Iodex and Crocin on behalf of a group company also brings in stable 'other income'.

Sales growth for the company, which hovered in the low double-digits until 2007, has seen a sharp acceleration this year.

Compared to a four-year annualised growth rate of about 16 per cent, net sales expanded at 23 per cent in the first half of 2008. This was aided both by healthy volume growth (about 13 per cent) as well as price increases (about 6-7 per cent).

Higher volume growth this year has been driven by product launches such as 'limited edition' variants for Boost, Actibase — a specialist nutritional supplement, and brand extensions for Horlicks such as Women's Horlicks and Horlicks Lite.

The company has continued to ramp up ad spend, while using celebrity endorsements to build its brands.
Limited down-trading risk

Volume growth may be sustained at higher levels over the next couple of years, given the clear consumer trend in favour of health and nutritional products, and efforts by the company to address a larger consumer base through extensions such as Horlicks Lite (targeted at adults) and Women's Horlicks.

The company's increased spending on brand-building (up from 9-10 per cent of sales to 12-13 per cent in recent quarters) and launch opportunities from its parent's portfolio, also hold promise for volume growth.

The potential to improve capacity utilisation from the current 75 per cent levels and plans to add capacities over the next three years at an investment of Rs 110 crore, may also help the company capitalise on strong offtake.

Despite price increases of 6-7 per cent last quarter, volume growth for the company is at relatively low risk from down-trading (companies moving to cheaper substitutes), given the company's dominant market shares, presence across price points with its four brands and few competing brands.
Input prices offer relief

While sales growth may remain healthy, the company's plan to increase brand-building spends was expected to lead to slower profit growth over the next couple of years.

In the June quarter, the company's 19 per cent sales growth translated into just a 9 per cent expansion in net profit, as escalating raw material costs and sharply higher ad spend (28 per cent increase against 19 per cent sales growth), impacted net profits.

However, on this count, a sharp correction in raw material prices, triggered by the commodity price meltdown since July and a benign outlook on input prices over the next few quarters, augur well for GSK consumer's margins.

Milk, malt extracts and wheat are the key inputs, and all three commodities have seen a correction in prices over the past few months.

Global milk powder prices have corrected over 30 per cent from their July peak, with a further softening of 16 per cent forecast for the next one year.

Wheat prices have also slumped sharply on expectations of a sharp increase in global output; domestic prices are expected to remain soft in the current year, on account of record production and a comfortable buffer stock. Malt prices are also off their earlier highs, though prices are expected to remain at the current levels over the next few months.

Though a depreciating rupee may offset some of the benefits from these falls, the correction in prices has still been steep enough to offer some cost savings.

In the light of the price increases already taken by the company, softer trends in input prices have the potential to expand operating profit margins for GSK Consumer in the quarters ahead. The resulting surpluses may also be used to finance promotional and brand-building spends, which will also help profit growth over the medium term.

ICICI Bank customers get SMS ! - you are safe !

Many ICICI Bank customers received SMS messages on their mobile phones on Saturday, assuring them that their deposits with the bank are safe.

The message read that the bank is well capitalised with good liquidity. "Please do not listen to baseless rumours," said the message, before ending with greetings for the festive season.

This was part of a campaign by the bank to allay fears of their customers, even as rumours of deposit withdrawals by account holders did the rounds.
Denies withdrawals

Ms Chanda Kochhar, Joint Managing Director and CFO, ICICI Bank, said "there is no large scale withdrawal of deposits, but customers have been querying at branches and calling in because of the fall in the share price as sentiment gets impacted." There were rumours that deposit holders were transferring their funds to other banks.

The scrip fell by 20 per cent on the Bombay Stock Exchange on Friday, to a three-year low of Rs 364.10.

Ms Kochhar said the bank did not see any slowdown in the current and savings account, which has been the focus this year. It will raise wholesale deposits only to the extent required.

Retail defaults

On defaults in the retail segment, Ms Kochhar said there was no perceptible rise and they were at the same levels as in the last quarter. But the bank has tightened the credit parameters with regard to personal loans, given the inflation and rising interest rates, she added.

via Businessline

Stocks at 3/4 year lows

Ever wondered what it would have been like to buy stocks at rock-bottom prices before the recently ended bull run gained pace?

You needn't travel back in time for the experience. With stock prices falling steeply, buying into the Nifty basket today would be tantamount to buying it at October 2005 levels!

The 47-per cent fall in the Nifty from January has taken the absolute level of the bellwether index back to its August 2006 value of 3,200.

But the price-earnings (PE) multiple for the Nifty, a measure of what the market is willing to pay per rupee of earnings, is back to levels prevailing a good three years ago.

The Nifty's current PE of about 14 times (trailing earnings) was last seen in October 2005. If blue-chip names that figure in the bellwether index have seen their PEs crumble, mid-cap stocks have simply collapsed.

At a PE of 8.5 times trailing earnings, the CNX Midcap index now trades at a valuation not seen since June 2003. When the markets peaked in January this year, the Nifty was valued at a lofty 28 times and the Midcap index at 23 times.

The sharp fall in the PE means the market is now factoring in the same growth expectations from Indian companies that it did way back in 2005. Is it justified in doing so?

Views on this are divergent. Some fund managers believe the markets are being quite pessimistic and that the fall in valuations is more a function of poor liquidity, than of prospects for Indian businesses.
'Time to buy'

Says Mr A. Balasubramaniam, Chief Investment Officer of Birla Sun Life Mutual Fund, "Valuations are extremely attractive, no matter what parameter you pick today — the price-earnings ratio, price to book value or dividend yield. In fact, market volatility is more of a concern now than the fundamentals of Indian companies. With oil prices correcting much more than expected, commodity prices falling and inflation worries receding, interest rates too may soften over the next few months. That means three major macro concerns will be out of the way for Indian companies. Liquidity will remain the only issue."

He believes that while the next two quarters may be difficult for Indian markets, this remains a good time to buy stocks, as the "policy framework is also becoming more favourable to attracting capital flows."
Earnings slowdown

Ms Srividhya Rajesh, Fund Manager at Sundaram BNP Paribas, holds a diametrically opposite view. "Though they look cheaper on a historic basis, the markets really aren't cheaper today, because PEs have corrected. We see earnings deceleration next year. While some earnings downgrades have happened, a lot of it is yet to play out. When the earnings decelerate, PEs also will get compressed further," she says, explaining why she would like to wait out this market fall

via Businessline

Results Calendar - Oct 13 - 19 2008

Oct 13 2008	Axis Bank Ltd	AXIS Bank Ltd has informed BSE that a meeting of the Board of Directors of the Bank will be held on October 13, 2008, inter alia, to consider and take on record the Unaudited Quarterly / Half Yearly financial results for the quarter (Q2) / half year (H1) ended September 30, 2008.
Oct 13 2008	BASF India Ltd	Quarterly Results
Oct 13 2008	DCM Financial Services Ltd	Quarterly Results
Oct 13 2008	Educomp Solutions Ltd	Educomp Solutions Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 13, 2008, to consider the following matters:1. In continuation of earlier approval granted by the members of the Company to raise the funds, to consider alternative modes for raising of funds.2. To consider and if thought fit, approve Educomp Employee Stock Option Scheme 2008.
Oct 13 2008	Indo Tech Transformers Ltd	Quarterly Results
Oct 13 2008	K Sera Sera Productions Ltd	K Sera Sera Productions Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 13, 2008, inter alia, to Allot Fully Convertible Warrants to Yes Bank Ltd on preferential Basis, subject to in-principle approval of Stock Exchanges.
Oct 13 2008	Kaiser Press Ltd	Audited Results
Oct 13 2008	Orbit Corporation Ltd	Quarterly Results
Oct 13 2008	Organic Coatings Ltd	Organic Coatings Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 13, 2008, inter alia, to consider the following proposals:1. To consider Preferential issue of Equity Shares and Share Warrants under Section 81(1A) of the Companies Act, 1956 and guidelines for Preferential Issues contained in the SEBI (disclosure and investor protection) Guidelines 2000 subject to approval of the Shareholders of the Company.2. To consider convening Extra Ordinary General Meeting of the Company to approve the above.
Oct 13 2008	Refex Refrigerants Ltd	Quarterly Results
Oct 13 2008	Repro India Ltd	Quarterly Results
Oct 13 2008	S Kumars Online Ltd	S Kumars.Com Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 13, 2008, regarding allotment of warrants on preferential basis as per special resolution passed by the members in Annual General Meeting held on September 30, 2008.
Oct 13 2008	Sunitee Chemicals Ltd	Sunitee Chemicals Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 13, 2008, to consider the following businesses:1. Alteration of Other Objects Clause of Memorandum of Association by incorporating objects relevant to the carrying on the business of (i) Real Estate, Construction and Infrastructure Development (ii) Manufacturing and Trading of Gems & Jewellery, diamonds, and gold refinery and other incidental objects relevant thereto.2. To consider and approve the resignation of Mr. Dilip Bamawat, Managing Director of the Company.3. To consider the appointment of Mr. Dhaval Solanki, Additional Director, as the Chairman & Managing Director of the Company with the previous approval of the members under Regulation 12 of the SEBI (Substantial Acquisition of Shares & Takeover) Regulations, 1997 through Postal Ballot to be conducted in accordance with the provisions of Section 192A and other applicable provisions of the Companies Act, 1956 a
Oct 13 2008	Tata Investment Corporation Ltd	Quarterly Results

Oct 14 2008	Aditya Ispat Ltd	Aditya Ispat Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 14, 2008, to consider Allotment of 2,50,000 Fully Convertible Warrants to be allotted on Preferential basis in accordance to Special Resolution Passed u/s 81(1A) of the Companies Act, 1956 in the Annual General Meeting held on September 30, 2008.
Oct 14 2008	Alpha Hi-Tech Fuel Ltd	Quarterly Results
Oct 14 2008	Birla Power Solutions Ltd	Inter alia, to transact the following business: 1. To consider and approve raising of funds by way of issue of equity shares, and / or securities convertible into equity shares through public issue, rights issue, Global Depository Receipts / American Depository Receipts, Foreign Currency Convertible Bonds and / or to Qualified Institutional Buyers in terms of Chapter XIIIA of SEBI (DIP) Guidelines, subject to the approval shareholders under Section 81(1A) of the Companies Act, 1956.& Dividend & Increase in Authorised Capital To consider and approve increase in authorized share capital, subject to approval of shareholders & Audited Results
Oct 14 2008	Explicit Finance Ltd	Explicit Finance Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 14, 2008, to consider the followings:1. To take on record the Unaudited Financial Results (Provisional) for the Quarter ended September 30, 2008.2. To appoint Statutory Auditors for the Company in place of M/s. P U Jain & Associates, who has resigned due to pre occupation.
Oct 14 2008	GRUH Finance Ltd	Quarterly Results
Oct 14 2008	Honeywell Automation India Ltd	Quarterly Results
Oct 14 2008	IFCI Ltd	IFCI Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 14, 2008, inter alia, to approve the Audited Financial Results of the Company for the quarter / half year ended September 30, 2008 (Q2).
Oct 14 2008	Jay Bharat Maruti Ltd	Quarterly Results
Oct 14 2008	Jubilant Organosys Ltd	Jubilant Organosys Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 14, 2008, inter alia, to consider and take on record the Unaudited Financial Results of the Company for the quarter ended September 30, 2008 (Q2).
Oct 14 2008	Kanani Industries Ltd	Quarterly Results
Oct 14 2008	Modern India Ltd	Quarterly Results
Oct 14 2008	Neogem India Ltd	Neogem India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 14, 2008, inter alia, to consider the following business:- To allot 15,65,000 (Fifteen Lacs Sixty Five Thousand) Fully Convertible Equity Share Warrants on Preferential Basis to the Promoters / Independent Investor as per the list approved by the shareholders in the Annual General Meeting held on September 30, 2008.
Oct 14 2008	New Delhi Television Ltd	Quarterly Results
Oct 14 2008	Noida Medicare Centre Ltd	Noida Medicare Centre Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 14, 2008, to issue and allot 50 lakhs warrants by way of preferential allotment to promoters and other independent private investors and also issuance and allotment of 12 lakhs fully paid equity shares on preferential basis to Stressed Assets Stabilization Fund (SASF) & IFCI Ltd. respectively as per their terms and conditions for settling the outstanding dues of the Company as per the provisions of chapter XIII A of SEBI (DIP) guidelines 2000.
Oct 14 2008	Novopan Industries Ltd	Novopan Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 13, 2008, inter alia, to consider and take on record the Un-audited Financial Results of the Company for the Quarter ended September 30, 2008, subject to the Limited Review by the Auditors and also to reconsider the earlier recommended dividend for the financial year 2007-08.Novopan Industries Ltd has informed BSE that a meeting of Board of Directors of the Company is rescheduled and will now be held on October 14, 2008 instead of October 13, 2008 as informed vide letter dated October 03, 2008, inter alia, to consider and approve the Un-audited Financial Results for the Quarter ended September 30, 2008, subject to the Limited Review by the Auditors and also to reconsider the earlier recommended dividend for the financial year 2007-08.(As Per BSE Announcement Website dated on 07.10.2008)
Oct 14 2008	SE Investments Ltd	Quarterly Results
Oct 14 2008	Shree Rani Sati Investment And Finance Ltd	Quarterly Results
Oct 14 2008	Sonata Software Ltd	Quarterly Results & Interim Dividend
Oct 14 2008	South Indian Bank Ltd	Un Audited Results Secound Quartely/Halfyear Ending 30.09.2008Quarterly Results (As Per BSE Bulletin dated on 30.09.2008)
Oct 14 2008	Suave Hotels Ltd	Suave Hotels Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 14, 2008, to consider the following"- Allotment of 65,00,000 warrants on preferential basis, subject to receiving in principle approval for the allotment front the Stock Exchange.
Oct 14 2008	Tilaknagar Industries Ltd	Quarterly Results
Oct 14 2008	Vinyl Chemicals (I) Ltd	Quarterly Results

Oct 15 2008	Amalgamated Electricity Company Ltd	Amalgamated Electricity Company Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 15, 2008, inter alia, to transact the following business:1. Take on record and approve the Unaudited Financial Results (Estimated) for the quarter ended September 30, 2008.2. Consider a proposal relating to the enhancement of capital.With reference to the earlier announcement dated October 06, 2008 regarding Board Meeting on October 15, 2008, Amalgamated Electricity Company Ltd has now informed BSE that an item pertaining to reduction of the equity capital of the Company is scheduled to be discussed the ensuing Board Meeting of the Company being held on October 15 2008.Further the Company has informed that, ignore the intimation about enhancement of capital.(As Per BSE Announcement Website dated on 08.10.2008)
Oct 15 2008	Astral Poly Technik Ltd	Quarterly Results
Oct 15 2008	B Nanji Enterprises Ltd	Quarterly Results
Oct 15 2008	Bharat Seats Ltd	Quarterly Results
Oct 15 2008	CMC Ltd	Quarterly Results
Oct 15 2008	Container Corporation Of India Ltd	Quarterly Results
Oct 15 2008	Electrosteel Castings Ltd	Quarterly Results
Oct 15 2008	HCL Technologies Ltd	Interim Dividend & Quarterly Results
Oct 15 2008	ICSA (India) Ltd	Quarterly Results
Oct 15 2008	Jayant Agro Organics Ltd	Quarterly Results
Oct 15 2008	Kavveri Telecom Products Ltd	Quarterly Results
Oct 15 2008	Kingfisher Airlines Ltd	Audited Results Nine Months ended on 31.03.2008
Oct 15 2008	L G Balakrishnan & Bros Ltd	Quarterly Results
Oct 15 2008	Larsen & Toubro Ltd	Larsen & Toubro Ltd (L&T) has informed BSE that a meeting of the Board of Directors of the Company will be held on October 15, 2008, inter alia, to consider and take on record the unaudited financial results of the Company for the quarter ended September 30, 2008 (Q2).
Oct 15 2008	LGB Forge Ltd	Quarterly Results
Oct 15 2008	Nakoda Textile Industries Ltd	Quarterly Results
Oct 15 2008	NCL Research and Financial Services Ltd	Quarterly Results
Oct 15 2008	Pentamedia Graphics Ltd	Pentamedia Graphics Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 15, 2008, to consider and approve the proposed Scheme of Amalgamation between Pentamedia Graphics Ltd and Pentasoft Technologies Ltd.
Oct 15 2008	Pentasoft Technologies Ltd	Pentasoft Technologies Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 15, 2008, inter alia, to consider and approve the proposed Scheme of Amalgamation between Pentamedia Graphics Ltd and Pentasoft Technologies Ltd.
Oct 15 2008	R T Exports Ltd	RT Exports Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 15, 2008, inter alia, to consider the following:1. To consider the "In-Principle" approval received from Stock Exchange for issue of 5,50,000 Equity Shares on a preferential basis and to allot the share and complete the listing formalities.2. To Consider & approve the Un-audited accounts for the quarter ended September 30, 2008.
Oct 15 2008	Richa Industries Ltd	Quarterly Results
Oct 15 2008	Sanwaria Agro Oils Ltd	Quarterly Results
Oct 15 2008	TTK Prestige Ltd	Quarterly Results
Oct 15 2008	Vintage Cards & Creations Ltd	that a meeting of the Board of Directors of the Company will be held on October 15, 2008, inter alia, to consider and discuss the following matters:1. Appointment of Mr. Raj Halve and Mr. Vipin Chandok as additional directors of the Company.2. Fixing date of Annual General Meeting of the Company and3. Fixing date of Book Closure for the purpose of Annual General Meeting.

Oct 16 2008	Camlin Fine Chemical Ltd	Quarterly Results
Oct 16 2008	Dairyfield Ltd	Quarterly Results
Oct 16 2008	Dover Securities Ltd	Dover Securities Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 16, 2008, inter alia, to consider the following:1. To consider and take on record Unaudited Financial Results of the Company for the quarter and half year ended September 30, 2008.2. Incorporation of a new wholly owned subsidiary Company with the main object to carry on the business as distribution of Mutual Funds, Life Insurance products, Insurance products etc. and to make application with Registrar of Companies for name availability in this regards.3. Noting of approval of change of name of the Company from "Dover Securities Ltd" to "Money Matters Financial Services Ltd" by ROC.
Oct 16 2008	ETC Networks Ltd	Quarterly Results
Oct 16 2008	Finolex Cables Ltd	Quarterly Results
Oct 16 2008	Foseco India Ltd	Foseco India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 16, 2008, inter alia, to consider the unaudited results for the third quarter ending September 30, 2008 and also to consider and if thought fit, to declare third interim dividend for the year 2008.
Oct 16 2008	GTL Ltd	Quarterly Results
Oct 16 2008	HDFC Bank Ltd	HDFC Bank Ltd has informed BSE that a meeting of the Board of Directors of the Bank will be held on October 16, 2008, inter alia, to consider the Unaudited financial results for the second quarter and half year ending September 30, 2008(Q2).
Oct 16 2008	Hindustan Foods Ltd	Quarterly Results
Oct 16 2008	Indag Rubber Ltd	Quarterly Results
Oct 16 2008	Indo Asian Finance Ltd	Quarterly Results
Oct 16 2008	IndusInd Bank Ltd	Quarterly Results
Oct 16 2008	Industrial Investment Trust Ltd	Quarterly Results
Oct 16 2008	Madras Aluminium Co Ltd	Quarterly Results
Oct 16 2008	Mafatlal Finance Company Ltd	Quarterly Results
Oct 16 2008	MphasiS Ltd	Quarterly Results
Oct 16 2008	Oil Country Tubular Ltd	Quarterly Results
Oct 16 2008	Peninsula Land Limited	Quarterly Results
Oct 16 2008	Radha Madhav Corporation Ltd	The Company has proposed to hold the Extra Ordinary General Meeting of the members of the Company on October 11, 2008, to increase the Authorised Share Capital from Rs 36Crore to Rs 39 Crore.
Oct 16 2008	Rallis India Ltd	Quarterly Results
Oct 16 2008	Sasken Communication Technology Ltd	Quarterly Results
Oct 16 2008	Schrader Duncan Ltd	Quarterly Results
Oct 16 2008	Span Diagnostics Ltd	Quarterly Results
Oct 16 2008	Sree Rayalaseema Alkalies & Allied Chemicals Ltd	Quarterly Results
Oct 16 2008	Srinivasa Hatcheries Ltd	Quarterly Results
Oct 16 2008	VMF Soft Tech Ltd	Quarterly Results

Oct 17 2008	Banaras Beads Ltd	Quarterly Results
Oct 17 2008	Brescon Corporate Advisors Ltd	Quarterly Results
Oct 17 2008	Can Fin Homes Ltd	Quarterly Results
Oct 17 2008	Chase Bright Steel Ltd	Quarterly Results
Oct 17 2008	Compact Disc India Ltd	Compact Disc India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 17, 2008, inter alia, to consider the following:1. To consider and approve the Unaudited Financial Results for the quarter and half year ended on September 30, 2008.2. To consider offer from iMedia Ventures Ltd to invest USD 10 Million in the expansion project of the Company.3. To consider the offer from iMedia Ventures Ltd for buying 15% equity in the Company.4. To review progress of various projects of the Company.
Oct 17 2008	eClerx Services Ltd	Quarterly Results
Oct 17 2008	Elantas Beck India Ltd	Quarterly Results
Oct 17 2008	Fag Bearings India Ltd	Quarterly Results
Oct 17 2008	H. S. India Ltd	Quarterly Results
Oct 17 2008	Hindustan Fluoro Carbons Ltd	Quarterly Results
Oct 17 2008	Housing Development Finance Corporation Ltd	Housing Development Finance Corporation Ltd (HDFC) has informed BSE that a meeting of the Board of Directors of the Corporation will be held on October 17, 2008, inter alia, to consider and approve the un-audited financial results (stand alone) of the Corporation for the quarter / half year ending September 30, 2008, subject to a limited review by the Statutory Auditors of the Corporation.
Oct 17 2008	India Infoline Ltd	India Infoline Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 17, 2008, inter alia, to consider the unaudited financial results of the Company for the second quarter ended September 30, 2008 (Q2).
Oct 17 2008	Indian Bright Steel Company Ltd	Quarterly Results
Oct 17 2008	Ineos ABS (India) Ltd	Quarterly Results
Oct 17 2008	JIK Industries Ltd	JIK Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 17, 2008, inter alia, to transact the following:1. To take on record an Un-audited Financial Results for the Quarter ended September 30, 2008.2. To consider issue of 41,70,000 Equity Shares to Promoters and issue of equity shares as per BIFR Order issued on September 01, 2008.3. To consider and allot new Equity Shares of Rs 10/- each fully paid up to Shareholders in ratio 10:1 on reduction in Capital by reducing number of Shares pursuant to BIFR Order.
Oct 17 2008	JK Paper Ltd	Quarterly Results
Oct 17 2008	Midpoint Software & Electro Systems Ltd	Quarterly Results
Oct 17 2008	Mysore Cements Ltd	Quarterly Results
Oct 17 2008	Novartis India Ltd	Quarterly Results
Oct 17 2008	Nu-Tech Corporate Services Ltd	Quarterly Results
Oct 17 2008	Panacea Biotec Ltd	Quarterly Results
Oct 17 2008	Ponni Sugars (Erode) Ltd	Quarterly Results
Oct 17 2008	Pulsar International Ltd	Quarterly Results
Oct 17 2008	Ratnamani Metals & Tubes Ltd	Quarterly Results
Oct 17 2008	Satyam Computer Services Ltd	Interim Dividend & Quarterly ResultsSatyam Computer Services Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 17, 2008, inter alia, to consider the audited financial results of the Company for the quarter ended September 30, 2008 (Q2) and the recommendation of interim dividend for the financial year 2008-09.(As Per BSE Announcement Website dated on 30.09.2008)
Oct 17 2008	Shukra Bullions Ltd	Quarterly Results
Oct 17 2008	Shukra Jewellery Ltd	Quarterly Results
Oct 17 2008	State Bank of Travancore	Quarterly Results
Oct 17 2008	Tamilnadu Jai Bharath Mills Ltd	Quarterly Results
Oct 17 2008	Total Exports Ltd	Quarterly Results
Oct 17 2008	Triton Valves Ltd	Quarterly Results
Oct 17 2008	VST Industries Ltd	Quarterly Results
Oct 17 2008	Zensar Technologies Ltd	Quarterly Results

Oct 18 2008	Ador Welding Ltd	Quarterly Results
Oct 18 2008	Allahabad Bank	Allahabad Bank has informed BSE that a meeting of the Board of Directors of the Bank will be held on October 18, 2008, to consider and approve the Un-audited Financial results of the Bank for the quarter and half year ended on September 30, 2008 (Q2).
Oct 18 2008	Andhra Petrochemicals Ltd	Quarterly Results
Oct 18 2008	Arora Fibres Ltd	Arora Fibres Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 18, 2008, inter alia, to consider the Audited Financial Results of the Company for the Half Year ended September 30, 2008.The Board will also consider addition to objects of the Company and also the change of name of the Company subject to approval of the Members and Central Govt. in this meeting.
Oct 18 2008	Balkrishna Industries Ltd	Balkrishna Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 20, 2008, inter alia, to consider the following:1. To take on record the Un-audited Financial Results for the quarter / half-year ended September 30, 2008 (Q2).2. To consider and approve the payment of 1st interim dividend to Equity Shareholders of the Company for the year 2008-2009.With reference to the earlier announcement dated October 01, 2008, Balkrishna Industries Ltd has now informed BSE that a meeting of the Board of Directors of the Company has been preponed on October 18, 2008 instead of October 20, 2008 inter-alia to consider the following:1. To take on record the Un-audited Financial Results for the quarter/half-year ended September 30, 2008 (Q2).2. To consider and approve the payment of 1st interim dividend to Equity Shareholders of the Company for the year 2008-2009.(As Per BSE Announcement Website dated on 03.10.2008)
Oct 18 2008	Bank of Rajasthan Ltd	Quarterly Results
Oct 18 2008	Chambal Fertilisers & Chemicals Ltd	Chambal Fertilisers & Chemicals Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 18, 2008, inter alia, to approve, the unaudited financial results for the period ended September 30, 2008 (Q2).
Oct 18 2008	Federal Bank Ltd	Federal Bank Ltd has informed BSE that a meeting of the Board of Directors of the Bank will be held on October 18, 2008, inter alia, to consider and take on record the Bank's un-audited financial results for the period ended September 30, 2008 (Q2).
Oct 18 2008	Fine Line Circuits Ltd	Quarterly Results
Oct 18 2008	Gujarat Lease Financing Ltd	Quarterly Results
Oct 18 2008	High Energy Batteries (India) Ltd	Quarterly Results
Oct 18 2008	Indian Bank	Indian Bank has informed BSE that a Meeting of the Board of Directors of the Bank will be held on October 18, 2008, inter alia, for approving the Unaudited (Reviewed) Financial Results of the Bank for the quarter / half year ended September 30, 2008.
Oct 18 2008	Jhagadia Copper Ltd	Quarterly Results
Oct 18 2008	JK Lakshmi Cement Ltd	Quarterly Results
Oct 18 2008	Kanoria Chemicals & Industries Ltd	Quarterly Results
Oct 18 2008	Kewal Kiran Clothing Ltd	Quarterly Results
Oct 18 2008	Mangalam Cement Ltd	Quarterly Results
Oct 18 2008	Oricon Enterprises Ltd	Quarterly Results
Oct 18 2008	Seshasayee Paper & Boards Ltd	Quarterly Results
Oct 18 2008	Shaily Engineering Plastics Ltd	Quarterly Results
Oct 18 2008	State Bank of Bikaner and Jaipur	Quarterly Results
Oct 18 2008	Sundaram Brake Linings Ltd	Quarterly Results
Oct 18 2008	Sunflag Iron & Steel Company Ltd	Quarterly Results
Oct 18 2008	Supreme Infrastructure India Ltd	Supreme Infrastructure India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 18, 2008, inter alia, for consideration of Un-Audited Financial Results for the quarter and half year ended September 30, 2008.The Company also proposes to give empower to the board of directors of the Company to create charge on the whole and part of the undertaking, to borrow money more than the free reserve and paid up capital of the Company and to give any inter corporate loan, investment and providing security and guarantee more than paid up Capital and Free Reserve of the Company.Further the Company has informed that, a meeting of the Board of Directors of the Company which will be held on October 18, 2008 also consider for approval of the proposal for transacting the following business subject to the approval of the shareholders by a Ordinary or Special Resolution (Postal Ballot) as per the provisions of the Section 192A and other provision of the Com
Oct 18 2008	TRF Ltd	Quarterly Results
Oct 18 2008	UltraTech Cement Ltd	Ultratech Cement Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 18, 2008, to consider and approve the un-audited financial results of the Company for the quarter and half year ended September 30, 2008 (Q2).
Oct 18 2008	Zuari Industries Ltd	Quarterly Results

Oct 19 2008	Adarsh Plant Protect Ltd	Quarterly Results
Oct 19 2008	Nucleus Software Exports Ltd	Quarterly Results

Infosys Technologies Ltd

Investors with a one-two year perspective can buy the shares of Infosys Technologies, considering its attractive valuations and reasonable business prospects, despite the current rough macro-environment.

At Rs 1,225, the stock trades at just 12 times its likely 2008-09 earnings.

The stock has fallen 30 per cent in the last one month alone, leading up to the September quarter results. But its revenues and net profits have grown by over 30 per cent over last year's. Its dollar earnings guidance has been lowered, but the rupee guidance has been kept in tact. This, together with a flat pricing assumption, makes it attractive at these levels, even after factoring in concerns on clients' IT spends. Given the global turmoil involving companies in the banking, financial services and insurance space, only tier-1 software companies may have the ability to withstand the impact of lowered IT spends by such clientele.
No 'tainted' clients

Infosys does not have any of the failed investment banks among its clientele and is actually on the right side of the recent spate of takeovers, suggesting scope for added business. In the latest quarter, a majority of its new clients are from the BFSI segment. The company has started initial work on integration in a couple of cases where mergers and acquisitions have happened.
Positive factors

Internally, the company has had several trends working in its favour over the last few quarters. An improving service-mix towards higher value services such as consulting and package implementation is one such trend; the contribution from these services is over 25 per cent currently. Key operating metrics such as utilisation and increasing offshore component have helped volume growth and optimised costs.

Improvement in fixed-price projects, which rake in better realisations, is another positive trend. Manufacturing, a vertical that is increasingly adopting technology, has increased contribution steadily and now clocks over 20 per cent of its overall revenues, thus reducing dependence on BFSI.

An exchange rate assumption of Rs 46.97 also allows comfort on the company's ability to achieve its guidance. The key risks to this recommendation are the possibility of stagnation in volumes from new clients, reduced IT spends by clients or any demand for reduction in pricing of deals and the possibility of vendor consolidation.

Weekly Global Events

The US government lent insurance major AIG an additional US $37.8bn. The insurer was seized last month and lent US $85bn. The company's executives, meanwhile, got a rough ride in Congress for spending US $440,000 at a fancy resort the week after AIG was bailed out.

Bank of America reached a settlement with those states, including California and Illinois, that had brought lawsuits against the lending practices of Countrywide Financial, a beleaguered lender bought by the bank this year. The settlement rejigs the mortgages of around 400,000 homeowners and could cost up to US $8.6bn. Separately, Bank of America raised US $10bn in a share sale and said it would halve its dividend.

SAP, the world's largest maker of software for business, said it had experienced a very sudden and unexpected drop in demand. And figures showed that the rate of growth in revenue from online advertising in the US in the first half of 2008 was considerably lower than in the same periods in 2007 and 2006. IBM, however, reported a 22% increase in quarterly profit.

GM, Ford shares fall on grim auto outlook

General Motors (GM) shares plunged 31% on Thursday and Ford Motor tumbled 21% on reports that auto sales will hit recession levels this year and get worse in 2009. Global auto market may experience an absolute collapse in 2009 amid growing concerns around availability of credit and general economic stress, said JD Power. The outlook represents the most dire warning yet on the auto industry in the wake of the financial turmoil that has rocked consumer confidence and virtually shut the door for many consumers to finance vehicle purchases. In response, S&P put GM and Ford's debt ratings on CreditWatch with a negative outlook. However, shares of the two US auto majors rebounded on the last day of the week. GM said it was not considering bankruptcy. Separately, GM also decided to stop production for a short time at several European plants, as part of its effort to reduce capacity. Other carmakers are also cutting back in Europe as they adapt to a sharp drop in demand.

Bankers to rescue Hindalco rights issue

The Rs50.47bn rights issue of Hindalco Industries is set to devolve on the underwriters. Although the quantum of the devolvement will be clear on Friday after the closure of the issue, reports said the figure is expected to be in the range of at least 15-20%. The five merchant banks are ABN Amro, Citigroup, Deutsche Bank, DSP Merrill Lynch and State Bank of India. The offer managed to attract subscription of only 45% (including a large chunk subscribed by the promoters) till Wednesday. This included GDR holders' application to buy their entire entitlement of nearly 11%. The Aditya Birla group, the promoters, has promised to subscribe to 50% of the issue, against its entitlement of 31.4%. Domestic financial institutions have a combined 15% stake in the aluminium giant.

US withdraws motion against Ranbaxy

The US Department of Justice (DoJ) withdrew its motion in a local court against Ranbaxy after the Indian drug maker handed over the documents sought by the authorities. Ranbaxy said that the DoJ has been provided with a comprehensive set of audit documents based on instructions by the company, which will help resolve the questions raised by the U S government about the company's business practices and standards. Ranbaxy said that it remains confident that its pharmaceutical products are sale and effective and remains committed to cooperatively working with all regulatory and legislative authorities. Ranbaxy shares bucked the gloomy mood in the market, rising by 16% on the week.

Q1 wireless subscriber base up 10% QoQ

The total subscriber base of the wireline and wireless services reached 325.79mn for the quarter ended June as against 300.49mn for the quarter ending March, thus registering an increase of 8.4% during the quarter. The tele-density for the quarter ended June reached 28.33 compared to 26.22 for the quarter ending March. The subscriber base for wireless services increased from 261.07mn for the quarter ended March to 286.87mn for quarter ended June. Subscriber base of wireline service decreased from 39.42mn for the quarter ended March to 38.92mn for the quarter ended June. For GSM segment, all India blended ARPU per month decreased by 9.3% from Rs264 in March to Rs239 in June. For CDMA segment, all India blended ARPU for the quarter ended June was Rs139 compared to Rs159 for the quarter ended March.

Infosys Q2 net up 10% QoQ; cuts guidance

Infosys Technologies Ltd. announced financial results for the fiscal second quarter ended September 30, 2008. The Bangalore-based IT major has posted a consolidated net profit of Rs14.32bn versus Rs13.02bn in the previous quarter. This translates into a sequential growth of nearly 10%. Consolidated revenue for the reporting quarter is at Rs54.18bn, up 11.6% over the April-June quarter. Income was expected to be in the range of Rs52.29bn and Rs52.72bn. Earnings per share (EPS) for the second quarter has increased to Rs 25.02 from Rs22.75 in the first quarter. The EPS was expected to be in the range of Rs 23.52 and Rs 23.95.

Inflation coming down slightly

India's inflation, based on the wholesale price index (WPI), slowed to a 15-week low towards the end of September, as prices either declined or remained stable, the Government said. The annual point-to-point inflation stood at 11.8% in the week ended September 27 as against 11.99% in the previous week, the Commerce & Industry said in a statement. The rate was below a median forecast of 11.98%. The annual inflation rate was 3.36% during the corresponding week of the previous year. The WPI for 'all commodities' declined by 0.1% to 240.7 from 241.0 in the previous week. Inflation for the week ended Aug. 2 was revised up to 12.91% from a provisional estimate of 12.44% while the WPI for the same period was increased to 241.4 from the preliminary forecast of 240.4.

The index for Primary Articles group declined by 0.2% to 250.9 from 251.3 in the preceding week, while the annual point-to-point inflation declined to 11.17% from 11.29% reported in the previous week. The index for Fuel & Power group remained unchanged at its previous week's level of 375.3. The rate of inflation remained unchanged at 16.52% for this commodity group. The index for Manufactured Products declined by 0.1% to 207.2 from 207.5 in the previous week. The rate of inflation declined to 10.33% from 10.55% in the previous week. Inflation for 30 essential commodities increased marginally to 7.74% in the week ending September 27 from 7.7% in the previous week.

Industrial output plummets in August

The turmoil in the global financial markets now seems to have started affecting the Indian economy in a really bad way. India's industrial production plunged to its worst level in more than a decade in August, the Government said. The index of industrial production (IIP) fell sharply to 263.6 in August from 273.8 in July, with the corresponding growth rate sliding to a paltry 1.3% from a healthy 7.4% in July. Economists had expected IIP growth at 6% in August. The mining sector grew by 4% in August versus 3% in July, while manufacturing grew by 1.1% in August as against 8% in July, and electricity rose by 0.8% in August compared to 4.5% year ago. The Government also said that it has revised the July industrial production growth to 7.4% from a provisional figure of 7.1%. For the first five months of the current fiscal year, industrial output growth stood at 4.9% versus 10% in the corresponding period of the last fiscal year.

Expect global slowdown - IMF

The world economy is decelerating quickly—buffeted by an extraordinary financial shock and by still-high energy and commodity prices—and many advanced economies are close to or moving into recession, the IMF says in its latest World Economic Outlook (WEO).

The October 2008 report which was released two days prior to the IMF-World Bank Annual Meetings in Washington, said that growth in emerging economies is also weakening after years of strong growth, though it will still drive global growth.

Speaking at the WEO press conference, IMF Chief Economist Olivier Blanchard emphasized the importance of implementing joint financial and macroeconomic policies at this point "to stem the negative momentum on multiple fronts." On the financial side, "this implies the design of comprehensive programs to deal with systemic problems," while on the macroeconomic side, "this implies the use of monetary and fiscal policies to support growth and break negative feedback loops between the financial and real sectors," he said.

"With the right macro and financial policies—and these policies are available—we ca

Weekly Newsletter - Oct 11 2008

Headwinds seems to be a gentle word for the markets world over as indices continue to witness ruthless selling. We believe the market is yet to find a firm bottom and 3000 levels for the Nifty remain our next hope. Despite relatively attractive valuations, index heavyweights could succumb to the selling pressure of FIIs and domestic funds. The last ones standing could face more carnage as desperate investors look to cash out at any price. Redemption pressures are being talked about from various quarters and this could intensify if things don't improve. Given the sharp fall this week, there is always hope that things turn around. We may see some positive ticks beginning Tuesday. However, that should not tempt you to take heavy positions. Remain light till there is more clarity.

Considering the unprecedented carnage in the global financial markets and uncertainty over the fate of the US and other major economies, we would like to refrain from giving any investment ideas. We continue to advise caution at this stage. Investors should stay on the sidelines till the global selloff abates and markets stabilise. One should not get carried away if there is any kind of a relief rally, as further selling is expected. Any advance in Indian stocks can only be sustained if global markets recover.

Indian markets too remain under stress

The global mess kept pounding Indian markets, which twice avoided trading freeze this week. The Sensex tumbled 16% and the Nifty lost 14% after sinking to 17-year lows of 10,239 and 3198, respectively. The Government, SEBI and RBI announced measures to ease the pain in the markets, but the same met with limited success, as the massacre continued unabated. The Government expanded the scope of infrastructure to allow companies in mining, exploration and refinery sectors to raise overseas loans through the ECB route. Capital market regulator SEBI removed restrictions on offshore derivative instruments (ODIs) in both, the cash as well as futures & options segments of the market. SEBI chief C.B. Bhave said the 40% cap on ODIs, including participatory notes (PNs), out of the total assets under custody in the cash market will also be done away with.

But, the biggest step was taken by the RBI, which slashed CRR by 150 basis points to 7.5% to boost liquidity. The reduction in the CRR comes into effect on Saturday and will pump Rs600bn into the banking system. Also, the Government canceled bond auctions worth US$2bn. The central bank sprung into action after call rates in the inter-bank overnight market soared to a 19-month high of 23%, and the rupee hit an all-time low of 49.30 bringing this year's losses to 20% before it regained some ground.

Finance Minister P. Chidambaram and other top government officials reiterated the strength of the Indian economy and promised to take further steps to provide more funds to the banking sector. "We will take steps to infuse liquidity because we recognise that the flow of credit smoothly and efficiently through the system is vital to the stability of the financial system," Chidambaram said.

Finance Secretary Arun Ramanathan said that the RBI has assured the government it was keeping a close watch on the market and would take appropriate steps. The Government set up a panel, which includes representatives from the RBI, to assess the liquidity problem and report back within a week, he said. The RBI blamed the money market squeeze squarely on international conditions and assured investors that the Indian economy was in good health.

Global markets continue to singe...

The mayhem in global markets continued this week, as the financial contagion deepened in Europe, and even spread to Japan later in the week. Equity markets across the globe plunged badly amid mounting fears that the worst financial crisis since the Great Depression would result in a prolonged and painful global recession. The incessant carnage prompted governments and regulators to take more emergency steps to try and stop the bloodshed.

But, all the efforts yielded little results, as the MSCI World Index suffered its worst week in more than three decades. The Nikkei in Japan lost a fourth of its value while the Hang Seng dropped 16%. The FTSE 100 in London fell below 4,000 for the first time in more than five years. The Dow Jones Industrial Average sank under 9,000 for the first time since 2003. The Nasdaq fell below 1,700 and the S&P 500 plunged into triple digits.

Russian stock exchanges delayed the opening of trading and Indonesia extended a two-day halt. Iceland suspended equity trading until Oct. 13 after the government seized Kaupthing hf, the country's biggest bank. Russia's government said it will start buying stocks of domestic companies next week to help support prices. Consob, Italy's securities-market regulator, banned all short sales on the country's stocks.

The cost of borrowing in dollars in London for three months rose as cash injections and interest-rate cuts by 10 major central banks failed to unlock the frozen money markets. The cost to protect corporate bonds from default soared to records around the world on investor concerns that the deepening credit crisis will trigger more failures as companies struggle to finance their businesses.

What if .. ICICI goes bust ?

Frequently Asked Questions

What will happen to my account ?

Will I get my money back ?

Is my money INSURED ?

Will RBI give the money I have in ICICI ?

READ more ...

The deposit insurance system in India is subject to the Provisions of Deposit Insurance Act (enacted in 1961). Deposit Insurance and Credit Guarantee Corporation (DICGC) is the body that operates the deposit insurance system.

Q1 Which banks are insured by the DICGC?

Commercial Banks: All commercial banks including branches of foreign banks functioning in India, local area banks and regional rural banks are insured by the DICGC.

Cooperative Banks: All State, Central and Primary cooperative banks, also called urban cooperative banks, functioning in States / Union Territories which have amended the local Cooperative Societies Act empowering the Reserve Bank of India (RBI) to order the Registrar of Cooperative Societies of the State / Union Territory to wind up a cooperative bank or to supersede its committee of management and requiring the Registrar not to take any action regarding winding up, amalgamation or reconstruction of a co-operative bank without prior sanction in writing from the Reserve Bank are covered under the Deposit Insurance Scheme. At present all co-operative banks other than those from the States of Meghalaya, Mizoram, Nagaland, and the Union Territories of Chandigarh, Lakshadweep and Dadra & Nagar Haveli are covered under the deposit insurance scheme of DICGC.

Primary cooperative societies are not insured by the DICGC.

Q2 What does the DICGC insure?

In the event of a bank failure, DICGC protects bank deposits that are payable in India. The DICGC insures all deposits such as savings, fixed, current, recurring, etc. except the following types of deposits (i) Deposits of foreign Governments; (ii) Deposits of Central/State Governments; (iii) Inter-bank deposits; (iv) Deposits of the State Land Development Banks with the State co-operative bank; (v) Any amount due on account of deposit received outside India; (vi) Any amount, which has been specifically exempted by the Corporation with the previous approval of Reserve Bank of India.

Q3 What is the maximum deposit amount insured by the DICGC?

Presently, deposits of each depositor in a bank is insured upto a maximum of Rs.1,00,000 (Rupees One Lakh) for both principal and interest amount held by him "in the same right and same capacity" as on the date of liquidation/cancellation of bank's licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force.

Q4 How will I know whether my bank is insured by the DICGC or not?

The DICGC while registering the banks as insured banks furnishes them with printed leaflets for display giving information relating to the protection afforded by the Corporation to the depositors of the insured banks. In case of doubt, depositor should make specific enquiry from the bank's officials in this regard or visit DICGC website on the web address www.dicgc.org.in.

What is the ceiling on amount of Insured deposits kept by one person in

Q5 different branches of a bank?

The deposits kept by one person in different branches of a bank are aggregated for the purpose of insurance cover and presently a maximum amount upto Rupees one lakh is paid.

Q6 Does the DICGC insure just the principal deposit amount or both principal and
accrued interest?

The DICGC insures principal and interest upto a maximum amount of Rs. One lakh. For example, if an individual had deposit(s) with principal amount of Rs.95,000 plus accrued interest of Rs.4,000, the total amount insured by the DICGC would be Rs.99,000. If, however, the principal amount were Rs. One lakh, the accrued interest would not be insured, not because it was interest but because the amount was over the insurance limit.

Q7 Can deposit insurance be increased by depositing funds into several different
accounts all at the same bank?

No. All funds held in the same type of ownership at the same bank are added together before deposit insurance is determined. If the funds are in different types of ownership or are deposited into separate banks they would then be separately insured.

Q8 What is a single ownership account?

A single (or individual) ownership account is an account owned by one person. Such accounts include those in the owner's name; those established for the benefit of the owner by agents, nominees, guardians, custodians, or conservators; and those established by a business that is a sole proprietorship.

Q9 Are deposits in different banks separately insured?

Yes. If you have deposits with more than one bank, deposit insurance coverage limit is applied separately to the deposits in each bank.

Q10 If I have deposits at two different banks, and those two banks are closed on
the same day, are my funds added together, or insured separately?

Your funds from each bank would be insured separately, regardless of the date of closure.

Q11 What is the meaning of deposits held in the same right and capacity and
different right and capacity?

If a person opens in his name more than one account in a bank, for example Mr. K.A.Pandit opens one savings account and one or more fixed deposit accounts, all the accounts are considered in the same right and same capacity and insurance coverage is limited to a maximum of Rupees one lakh. But if Mr. K.A.Pandit opens a joint account, the joint account is considered in a different right and different capacity and insurance coverage is provided separately. Each joint account is insured separately from any deposits individually owned by the joint depositors. Each joint account owned by a combination of different persons is insured upto Rupees one lakh. All joint accounts owned by the combination of same persons are added together and the combined total is insured upto Rupees one lakh.

Illustrations
Deposits held in different capacities
	Savings	Current	FD	Total	Deposits
	A/C	A/C	A/C	Deposits	Insured
Shri S. K. Pandit	17,200	22,000	80,000	1,19,200	1,00,000
(Individual)
Shri S. K. Pandit		75,000	50,000	1,25,000	1,00,000
(Partner of ABC & Co.)
Shri S. K. Pandit	7,800		80,000	87,800	87,800
(Guardian for Master Ajit)
Shri S. K. Pandit		2,30,000	45,000	2,75,000	1,00,000
(Director, J.K. Udyog Ltd.)

Deposits held in joint accounts
Account (i)	First a/c holder- "Shri A. K. Sharma"	Maximum insured amount upto
	Second a/c holder - "Smt. B. Sharma"	Rs.1 lakh
Account (ii)	First a/c holder - " Shri A. K. Sharma"	Maximum insured amount upto
	Second a/c holder - "Shri P. Sharma"	Rs.1 lakh
Account (iii)	First a/c holder - "Smt. B. Sharma"	The a/c will be clubbed with the
	Second a/c holder-"Shri A. K. Sharma"	a/c at (i)
Account (iv)	First a/c holder - "Shri A. K. Sharma"	Maximum insured amount upto
	Second a/c holder - "Smt. B. Sharma"	Rs.1 lakh
	Third a/c holder - "Shri P. Sharma"
Account (v)	First a/c holder - "Smt. B. Sharma"	The a/c will be clubbed with the
	Second a/c holder - "Shri P. Sharma"	a/c at (iv)
	Third a/c holder - "Shri A. K. Sharma"

Q12 Can the bank deduct the amount of dues payable to it by the depositor?

Yes. Banks have the right to set off their dues from the amount of deposits. The deposit insurance is available after netting of such dues.

Q13 Who pays the cost of deposit insurance?

Deposit insurance premium is borne entirely by the insured bank.

Q14 When is the DICGC liable to pay?

If a bank goes into liquidation: The DICGC is liable to pay to each depositor through the liquidator, the amount of his deposit upto Rupees one lakh within two months from the date of receipt of claim list from the liquidator.

If a bank is reconstructed or amalgamated / merged with another bank: Where in respect of an insured bank a scheme of compromise or arrangement or of reconstruction or amalgamation has been sanctioned by any competent authority and the said scheme provides for each depositor being paid or credited with, on the date on which the scheme comes into force, an amount which is less than the original amount and also the specified amount, the Corporation shall be liable to pay to every such depositor in accordance with the provisions of section 18 of DICGC Act an amount equivalent to the difference between the amount so paid or credited and the original amount, or the difference between the amount so paid or credited and the specified amount, whichever is less:

Provided that where any such scheme also provides that any payment made to a depositor before the coming into force of the scheme shall be reckoned towards the payment due to him under that scheme, then the scheme shall be deemed to have provided for that payment being made on the date of its coming into force.

Q15 Does the DICGC directly deal with the depositors of failed banks?

No. In the event of a bank's liquidation, the liquidator prepares depositor wise claim list and sends it to the DICGC. After scrutiny the DICGC pays the money to the liquidator who is liable to pay to the depositors. In the case of amalgamation / merger of banks, the amount due to each depositor is paid to the transferee bank.

Q16 Can any insured bank withdraw from the DICGC coverage?

No. The deposit insurance scheme is compulsory and no bank can withdraw from it.

Q17 Can the DICGC withdraw deposit insurance cover from any bank?

The Corporation may cancel the registration of an insured bank if it fails to pay the premium for three consecutive half year periods. In the event of the DICGC withdrawing its cover from any bank for default in the payment of premium the public will be notified through newspapers.

Registration of an insured bank stands cancelled if the bank is prohibited from accepting fresh deposits; or its licence is cancelled or a licence is refused to it by the Reserve Bank; or it is wound up either voluntarily or compulsorily; or it ceases to be a banking company or a co-operative bank within the meaning of Section 36A(2) of the Banking Regulation Act, 1949; or it has transferred all its deposit liabilities to any other institution; or it is amalgamated with any other bank or a scheme of compromise or arrangement or of reconstruction has been sanctioned by a competent authority and the said scheme does not permit acceptance of fresh deposits. In the event of the cancellation of registration of a bank, deposits of the bank remain covered by the insurance till the date of the cancellation.

Q18 What will be the Corporation's liability on de-registration of banks ?

The Corporation has deposit insurance liability on liquidation etc. of "insured banks" i.e. banks which have been de-registered (a) on account of prohibition on acceptance of fresh deposits or (b) on cancellation of license or where it is found that license can not be granted. The liability of the Corporation in these cases is limited to the extent of deposits as on the date of cancellation of registration of bank as an insured bank subject to the monetary ceilings applicable.

On liquidation etc. of other de-registered banks i.e. banks which have been de-registered on other grounds such as non payment of premium or their ceasing to be eligible cooperative banks under section 2(gg) of the DICGC Act, 1961, the Corporation has no liability.