International Franching:

China warned on Tuesday that US easy money could inflate asset bubbles elsewhere, keeping up the
pressure on Washington just two days before the start of a G20 leaders summit.
The US Federal Reserve's new USD 600 billion bond-buying programme has drawn global scorn
because of concerns it will send a flood of cash into the world economy without doing much to
reinvigorate a lacklustre US recovery.

Ma , deputy governor of the People's Bank of China, said he was concerned the Fed's spending spree
may undermine efforts to balance out global growth.
"The US QE2 may add risks to the global economic imbalance, put pressure on emerging markets to
adjust their international balance of payments and could also stir the formation of asset bubbles, all of
which require our vigilance," Ma said at the International Finance Forum in Beijing.
The Group of 20 rich and emerging economies meet here on Thursday and Friday and are eager to show
they have not lost the cooperative spirit forged during the depths of the financial crisis in 2008.
Hosts South Korea hung huge banners from buildings around the convention centre housing the summit
proclaiming a G20 mission of "Shared Growth Beyond Crisis."
But growing discontent over foreign exchange rates and trade have exposed deep international rifts, while
Ireland's worsening debt troubles have served as a reminder that the global economy remains vulnerable
to financial turmoil.
Despite well-publicised differences, US Treasury Secretary Timothy Geithner insisted there was broad
agreement among G20 members including China on narrowing global imbalances between cash-rich
exporters and debt-laden consumer countries.
G20 leaders agreed last year on a "framework" for more balanced growth, which called on surplus
countries such as China to bolster domestic demand while the United States and other big importers
boosted savings and investment.
I'm very confident that you're going to see very strong consensus on this basic framework because it
meets the basic tests and it's better than the alternatives," Geithner told an audience of Indian business
leaders.
"The Chinese are very supportive of it. It has a lot of benefits to them."
Geithner has backed away from a proposal to set numerical targets limiting the size of current accounts,
and Japanese Finance Minister Yoshihiko Noda said it was not likely that the G20 would agree on any
hard numbers.
"We have to keep in mind that each country's circumstances are different," he said in Tokyo.
"It's more likely that countries will agree a common approach, and finance ministers from the member
countries will debate the details later," he told reporters after a cabinet meeting.

Turkey project:
Sunidhi Securities is bullish on Jaihind Projects and has recommended buy rating on the stock with a
target of Rs 280 in its October 20, 2010 research report.
“Jaihind Projects (JPL) incorporated in 1985, the Ahmedabad-based Jaihind Projects is an engineering,
procurement & construction (EPC) company focused on the hydrocarbons, water & infrastructure sectors.
It provides EPC services ranging from oil & gas (onshore and near-shore/marshy pipelines, tankages &
terminals, horizontal directional drilling, micro tunnelling/boring, onshore & offshore fabrication), process
(refineries), civil infrastructure (water supply & sewerage, turnkey, rail), thermal power plants, etc. JPL
has a central equipment maintenance and repair workshop and storage facilities in Motera, on the
outskirts of Ahmedabad, Gujarat. This facility also caters to other remote workshop and repair locations.
JPL has a strategic tie-up with Tehran Jonoob (EPC contractor in the Middle East) and Arabian Pipeline
Projects.”
“JPL owns one of the largest fleet of pipeline equipment in the country (including large number of
sidebooms, pipe bending machines, horizontal directional drilling rigs/machines and other earth moving
heavy equipment). It has supplied and laid over 14000 km. of various pipes including water supply &
sewerage system projects. JPL undertakes the construction of cryogenic to floating and fixed roof storage
tanks of double or single wall for hydrocarbons, and concrete storage tanks for water and operates in
closer proximity of its ongoing projects. It owns one of the largest fleet of pipeline equipment in the
country (including large number of sidebooms, pipe bending machines, horizontal directional drilling
rigs/machines and other earth moving heavy equipment).”
“It uses sophisticated asset maintenance, repair and operations software solution to manage its workshop
and fleet of equipment to ensure reliability. Clientele speaks volumes about the quality and timely
completion of projects: L & T, Cairn Energy, Gujarat State Petronet, GAIL, Reliance Industries, IOC,
BPCL, HPCL, CPPL, ONGC, Gujarat State Petroleum, Hindustan Zinc, and Essar Oil, Kalpataru, Adani
Group, Lanco Group etc. JPL expects tremendous growth in near future in domestic and international
markets as number of projects is expected in the coming quarters.”
“JPL has bidded orders worth Rs 1500 crore domestically & Rs 500 crore internationally. Orders in hand
as on date stood at around Rs 900 crore; 2.2x FY10 sales. Of the total order-book, nearly ~33% is from
water segment while ~67% is from hydrocarbon segment. JPL would be bidding for Rs 1000 crore
pipeline project between Dabhol–Bangalore. There is a total proposed investments of more than Rs 200
billion in developing and expanding the existing pipeline network in India over next 3 to 4 years, adding up
to more than 10, 000 km of additional cross-country natural gas pipeline across the country. Further, more
than 60 cities are earmarked to get CGD (city gas distribution) networks by FY12 along with proposed
implementation of National Gas Grid by GAIL and capacity expansion of the LNG terminals, the demand
for natural gas pipelines is slated to grow.”
“The forecast reveals that the gas market will expand at a CAGR of 17% for 2009-13, driven by new finds
and the expansion of LNG infrastructure. India’s hydrocarbon potential is still latent, with almost one-third
of the area still unexplored or poorly explored. The situation has improved in recent years, especially
since the launch of the NELP. There appears to be large ready demand, as 70% of requirements are met
by imports. It is also forecasted that global refining capacity will increase at a CAGR of 2.2% for 2010-13,
compared with the forecast of an oil-demand CAGR of 1.3% over the same period. All these are business
accretive for JPL.”
“According to Ministry of Water Resources and National Commission on Integrated Water Resources
Development (NCIWRD) estimates, demand for water is likely to increase at a CAGR of ~1.5% and
~1.3%, respectively, from 2010 to 2050. The peculiarity in the case of water is that supply driven by the
hydrological cycle remains constant, while demand follows a linear path, driven by population growth,
industrial growth, and change in lifestyle. Thus water-related projects have great potential.”
“JPL is all set to benefit tremendously, being a preferred pipeline contractor due to its expertise,
experience, large equipment base and cost effective solutions. JPL is likely to post an EPS of Rs 35 in
FY11 and Rs 47 in FY12. At the CMP of Rs 219, the share is trading at a P/E of 6.2x on FY11E and 4.7x
on FY12E. We recommend BUY with a target of Rs 280 in the medium term,” says Sunidhi Securities
research report.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are
their own, and not that of the website or its management.Moneycontrol.com advises users to check with
certified experts before taking any investment decisions.
Licensing:
Weekly planetary position: During the week, Moon will be transiting in Leo & Virgo, Mars in Scorpio,   
Ketu in Gemini, Retrograde Venus, Sun & Mercury in Libra, Saturn in Virgo, Rahu & Pluto in Sagittarius,
Retrograde Jupiter & Neptune in Aquarius, Uranus in Pisces.
ASTROLOGICAL, we are very optimistic on the market & every plunge should be used to take fresh
position in the stocks of the sectors which are receiving strong ASTRO support.
One should trade only in the stocks of that sectors which are getting very strong astrologically support,
since the chances of losing money in such stocks are very less.
In such jerky & volatile market, concentrate on BANKING / FINANCIAL sectors, since they are receiving
very strong ASTROLOGICAL support & had been continuously recommended by us for last many
months. Whether the NIFTY was down or up, stocks from these sectors continued their upward journey &
making new highs every day.
In BANKING, keep close watch on ICICI BANK, FEDERAL BANK,CANARA BANK, DCB, BANK OF
BARODA ETC. Among FINANCIALS - INDIA BULL FINANCIAL SERVICES, SHRI RAM TRANSPORT
FINANCE, SREI INFRASTRUCTURE FINANCE, LIC HOUSING deserve attention.
Another sector which would be getting astrologically support is TEXTILE. One can go for ALOK
TEXTILES, S.KUMAR & ARVIND MILLS in this space.
LAST WEEK’S PREDICTION:  As predicted, most of the stocks in BANKING /FINANCIAL sectors
continued upward trend & made new highs during this period.
Sectors which get strong ASTRO support are not normally affected by downfall in the market.
Indirect export:
US President Barack Obama's visit to India puts the spotlight on its USD 60 billion IT sector, which
argues it is a creator of jobs in the United States and should not be blamed for high unemployment.
An increase in US visa fees, a ban on offshoring by the state of Ohio and the industry's portrayal in
campaign ads as a drain of US jobs has set a frosty tone ahead of Obama's visit to India in early
November.
Obama is expected to visit Mumbai, India's financial hub and the centre of the 2008 militant attacks. US
officials say much of the trip's focus will be boosting trade that is expected to double in five years from the
current level of USD 50 billion.
But it is a sign of the times that Obama is not expected to visit Bangalore, the country's technology hub.
Nor is he expected to visit Hyderabad, another Indian IT hotbed, where his predecessor, George W Bush,
stopped in a 2006 visit.
"It is a worry, there's no question, but the worry is more about unemployment, not about the political
rhetoric," said Pramod Bhasin, chief executive of outsourcer Genpact Ltd.
"We as an industry have to help create jobs in America and we have to communicate that much better
than we've done in the past," said Bhasin, whose firm employs about 2,000 in the United States and
expects to double or triple that over the next two to three years. Three-quarters of Genpact staff are in
India.
Obama's fellow Democrats are expected to take a drubbing in the November 2 balloting amid
unemployment stuck near 10%.
In California, where the jobless rate tops 12%, Democratic Senator Barbara Boxer accuses her
Republican rival Carly Fiorina of sending jobs abroad when she was chief of Hewlett-Packard.
Legislation that would end tax breaks for firms that create jobs and profits overseas was thwarted in the
Senate, but a new rule raising the cost of certain visas to enter the United States, part of a border security
bill, will cost Indian IT firms USD 200 million and sets an ominous precedent for the industry.
"It has nothing to do with immigration, but it has had an impact on the costs of IT services companies
from India. That is the kind of legislation that worries us," said S Gopalakrishnan, CEO of sector
bellwether Infosys Technologies Ltd.
Direct export:
Canada blocked BHP Billiton's USD 39 billion bid for Potash Corp, saying the deal would not benefit the
nation, and offered only the slimmest of a chances of accepting a modified offer.
The rejection on Wednesday shocked BHP investors who are now betting on the global miner returning
capital through a share buyback. It also puts pressure on BHP Chief Executive Marius Kloppers who
failed to secure two previous big deals.
Following government guidelines, Industry Minister Tony Clement gave the Anglo-Australian miner 30
days to come up with additional proposals that might make its offer for the world's largest fertiliser
producer more palatable to Canada.
But given weeks of negotiations between BHP and Ottawa about how the mining giant should shape its
offer, the biggest takeover bid of 2010, a new proposal seems unlikely at best.
"Some decisions can only be taken once and there is no turning back ever - such as the case today,"
Clement said as he announced his surprise decision, news that sent Potash Corp shares down some 5%
in after-the-bell trade.
I can confirm that I have sent a notice to BHP Billiton indicating that, at this time, I am not satisfied that
the proposed transaction is likely to be of net benefit to Canada."
Potash Corp repeated its view that the USD 130-a-share offer was "wholly inadequate," and analysts said
the shares were unlikely to tumble back to the pre-offer levels around USD 112, given a rising market and
strong fundamentals in the fertilizer market. Even without any bid at all, the company's shares are
expected to rise in the medium term.
BHP said it was disappointed with the decision and was reviewing its options. Its shares opened 3.2%
higher in Australia after the rejection, and the price of insuring its debt through credit-default swaps
eased.
BHP launched its bid for Saskatchewan-based in August, seeking an entry into the lucrative fertilizer
sector. But the Potash stock consistently traded above the offer price, indicating that investors thought a
higher offer would come.
Net benefit to Canada
Under the Investment Canada Act, a foreign takeover must have a net benefit for the country in terms of
jobs, exports, production and investment. The Canadian government had previously blocked a foreign
takeover only once before.
But this decision had always been a thorny one for a minority Conservative government that needed to
weigh political considerations against the desire to ensure that Canada stayed open for business.
Blocking the deal is bound to weigh on investors' perceptions of Canada, even though it was only the
second time that Ottawa has rejected a foreign takeover since the Investment Canada Act came into
force.
The Conservatives have most of the seats in Saskatchewan, the Prairie province where Potash Corp is
based, and fervent Saskatchewan opposition to the bid meant they risked losing those seats in an
election that's likely take place next year.
Saskatchewan, which has vast potash resources, argued that it would lose tax and royalty revenues if the
deal went through. It said it would be wrong to let a resource as strategic as potash fall into foreign hands.
"I think it comes as a shock to the market," said John Stephenson, senior vice president at First Asset
Investment Management Inc.
"I think it goes in the face... of the direction of the government of Canada for the last number of years,
which is we're open for business. Clearly, we're sending a signal that no, we're not."
BHP launched its offer for Potash Corp as population and income growth in developing countries like
China and India create a bullish long-term outlook for fertilizer and food production.
The takeover would have still needed approval from the Saskatchewan securities regulator and Potash
shareholders later this month.
Mgt contract:
Engineering and construction firm Larsen & Toubro is bidding for an Oman refinery expansion contract
estimated at USD 300 million, a company official said on Sunday.
"We are bidding for the Sohar refinery expansion project as part of our commitment to help Oman's
ambitions to build its oil and gas infrastructure," K. Venkataramanan, President of Operations at Larsen &
Toubro, told reporters.
The refinery, the largest in Oman, has a capacity of 116,000 barrels per day (bpd) which would be
increased to 190,000 bpd.
In June, officials said the expansion was expected to cost USD 300 million. Oman has been investing
heavily in its oil sector to increase output and has managed to turn around declining production.
The refinery expansion will increase feedstock to Omani industries, as well as contributing to the
availability of refined fuels for export to international markets.
Larsen & Toubro regularly wins projects in Oman ranging from roads to power stations.
Contract manufacturing:
PINC Research has maintained hold rating on Nagarjuna Fertilisers and Chemicals with a target of Rs 45
in its October 29, 2010 research report.
“Nagarjuna Fertilisers' (NFCL) Q2FY11 results were better than expectations as net sales doubled to Rs
11.2 billion (+110.4% YoY) on the back of higher trading and manufactured fertilisers’ volume. Higher
trading led OPM to contract by 375bps to 10.4%. Higher other income and lower depreciation (-36% YoY)
resulted in net profit to grew by 3.5x YoY to Rs 284 million against our estimate of Rs 142 million. Trading
revenues has increased significantly in Q2FY11 (import of DAP and MOP). Trading is contributing ~53%
in revenues in H1FY11. Manufactured Urea volume was also higher in Q2FY11 as last year there was a
shutdown of ~1month in Q2FY10 to hookup de-bottleneck unit.”
“Nagarjuna Fertiliser holds 51% stake in Nagarjuna Oil Corporation Limited. This is a 6mn MT p.a.
refinery coming up at Cuddalore, Tamil Nadu and is expected to be commissioned by FY13. Total capex
for this project is Rs 70 billion. NOCL is contributing Rs 9 in our target price with a GRM of USD6.5/ bbl
against management guidance of USD 8.5/bbl.”
“At CMP of Rs 34, NFCL is trading at P/E & EV/EBITDA of 9.5x & 12.5x respectively for FY12E
estimates. Availability of natural gas coupled with benefits from revamping should lead net profits to grow
by 3.7x in FY11 from FY09. We maintain our earning estimates for FY11 & FY12, however, rolling forward
to FY12 earnings our new SOTP target price is Rs 45 (10x P/E FY12E EPS for fertiliser business and Rs
9 for NOCL). We maintain our ‘HOLD’ recommendation due to huge capex involved in refinery business,”
says PINC Research report.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are
their own, and not that of the website or its management.Moneycontrol.com advises users to check with
certified experts before taking any investment decisions.
Strategic alliance:
Agricultural Bank of China (AgBank) and Asia-focused British lender Standard Chartered Plc have
deepened a strategic alliance under which the two banks plan to set up a joint venture, AgBank said on
Monday.
Earlier this year, Standard Chartered invested USD 500 million as a cornerstone investor in AgBank's
initial public offering in Hong Kong. AgBank, China's third-largest lender by assets, had raised a
combined USD 22.1 billion from its dual-listing in Shanghai and Hong Kong in the world's biggest ever
IPO.
The planned joint venture will provide support to China's fast-growing small and medium businesses,
AgBank said in a statement posted on its website.
Under the tie-up, AgBank will give priority to Standard Chartered as its partner for its trade and cash
management businesses. The two banks will also kick off a collaboration for cross-border business.
A strategic alliance team had been set up to implement those plans, the Chinese lender said. No financial
details of the planned joint venture were given.
Standard Chartered and AgBank "could complement each other as they are focusing on different market
segments and businesses," said AgBank Executive Vice President Pan Gongsheng.
Standard Chartered could take advantage of AgBank's extensive domestic network, in return providing its
partner with access to its international footprint, analysts said.
Founded by former Chinese leader Mao Zedong in 1951, AgBank has over 23,000 branches and about
2.6 million corporate customers and 320 million retail customers.
London-based Standard Chartered currently has 59 branches in mainland China. The bank wants to open
branches in as many as three Chinese cities per year subject to regulatory approval, Lim Cheng Teck,
chief executive of Standard Chartered China told Reuters in September.