Robust auto sales for August (positive)
Auto sales continues to robust with TVS Motors and Maruti Suzuki recording highest ever sales for the month of August.Maruti Suzuki sales were at 1.04 lakhs units while TVS Motors sales were at 1.67 lakh units. Hero Honda also reported 2%growth in total sales volue to 4.27 lakh units. Tata Motors reported 32% YoY growth however MoM its sales were down from ~67,000 units to 65938 units. M&M's auto sales were at 28,903 units recording growth of 29% YoY for the month whiletractor's sales grew 29% 13,435 units. We believe the momentum to continue with start of festive season from this month.
RBI clears airline debt recast plan
The Reserve Bank of India (RBI) has given its go-ahead to State Bank of India (SBI) to restructure the ballooning debt of theairline industry. The top three carriers, which collectively control 65% of domestic passenger traffic, have combined debt of Rs633bn and SBICaps is working on the terms of loan restructuring.
TCS arm wins €250mn UK contracts (positive)
TCS’s UK subsidiary Diligenta has won two life and pension contracts, totaling £250mn in revenue in the UK.
Nalco open to equity dilution in $3.9bn project in Indonesia
Nalco is considering selling stake in its $3.9bn aluminium project in Indonesia in lieu of acquiring equity in coal mines in theisland country.
Ranbaxy sets up second manufacturing unit in S. Africa
Ranbaxy Laboratories Ltd has set up a new manufacturing facility in South Africa with an investment of $30 mn.The newfacility will manufacture analgesics, cold, cough and flu preparations, anti-histamines, anti-hypertensive, CNS drugs, vitaminsand minerals.
7 telecom companies get 3G spectrum (positive)
Spectrum was allotted to the seven winners — Bharti Airtel, Reliance Communications, Idea Cellular, Vodafone Essar, Aircel,STel and Tata Teleservices
Reliance Broadcast to raise Rs 4bn via stake sale
Reliance Broadcast Network announced that its board has approved raising over Rs4bn by selling equity shares to its founderand other investors.
India sugar output may jump next year on higher planting, rains
Sugar output in India may surge by at least 38 percent next year after higher prices boosted planting and as rains improveyields. Production may total 26mn metric tons in the year and with higher estimates, it might go upto 29mn metric tons in theyear.
Super Religare Laboratories plans IPO in 2011
Fortis Healthcare plans to launch an initial public offer (IPO) for its diagnostics business unit, Super Religare Laboratories(SRL), in the next calendar year (2011).
Macro Economic and Other News International News
Merchandise exports rose at their slowest pace inJuly
During the month, exports grew by 13.2% to $16.24billion, compared to $13.62 billion in the month last year.During the month, imports jumped by 34.3% to $29.17billion, compared to $19.62 in the month last year,resulting in a trade deficit of $13 billion — the highest inthe last 22 months. Trade deficit in the first four monthsof the financial year reached $43.6 billion.
Fiscal deficit fell 42% to Rs 91,000 cr in April-July
The Centre’s fiscal deficit fell 42% to Rs 90.91 bn in April-July, compared to the period last year, on high revenuereceipts from the auction of 3G spectrum. The deficitrepresents 23.8% of the estimate for the current financialyear.
Factory output shows signs of moderation
Indian manufacturing growth is showing signs of moderation, despite being at robust levels. The seasonallyadjusted HSBC Purchasing Manager’s Index (PMI) showeda marginal decline to 57.2 in August, from 57.6 in July.
US ISM expands faster than estimates
The Institute for Supply Management Index, a gauge of manufacturing activity came in at 56.3 for the month of August vs consensus estimates of 52.8, compared to aprevious month number of 55.5. This helped the indicesbounce back globally leading to a modest rally.
US total vehicle sales comes in tad lower thanestimates
The US total vehicles sales came in at 11.46 million vsanalyst estimates of 11.50 million. The domestic vehiclesales came in at 8.66 million vs analyst estimates of 8.85million.
Source: Economic Times, Business Line, Business Standard, Times of India, DNA Money, Mint, Financial Express, Bloomberg
Corporate News/Results Corner