Sunday, September 18, 2005

Week Ahead: FII inflow holds key


The market may hold firm if the inflow from FIIs and local funds remains
strong. The ongoing rally on the bourses is a liquidity driven one. The net
foreign fund investment has exceeded $ 8 billion this year, compared with $
8.5 billion for all of 2004, and it is expected that concerns about the
strength of the US economy in the aftermath of Hurricane Katrina may see
more flows being diverted to emerging markets, including India.

Market men will also eye the outcome of the US Federal Reserve Meeting
scheduled on Tuesday, 20 September 2005. Most on Wall Street predict that
the US Federal Reserve will raise interest rates by another quarter
percentage point, but another wave of weak data could force them to pause
later in the year.

The trend in other Asian markets will be keenly watched as firm Asian
bourses have supported the solid surge on the Indian bourses recently.

The sentiment remains firm due to strong economic growth and encouraging
earnings growth from the Indian corporate sector.

IDBI sizzles on earning scheduled bank status from RBI


IDBI up 3.2% to Rs 119.80 on huge volumes of 33.57 lakh shares.

The stock has been on an upward journey from Rs 77.05 on 03 May 2005 to Rs
116.45 on 12 July 2005. From this level, the stock stayed in a narrow range.

Yesterday, RBI categorised IDBI as a scheduled bank as per the second
schedule of the Reserve Bank of India Act 1934. Following the merger of IDBI
Bank with IDBI with effect from 2 April 2005, RBI has excluded the name of
IDBI Bank from second schedule of the RBI Act.

Earlier, IDBI Bank was merged with IDBI after a scheme of arrangement was
reached as 100 shares of IDBI will be issued for every 142 shares held in
IDBI Bank. IDBI Bank was last traded on 6 May 2005 at Rs 59.

After the amalgamation with IDBI Bank, the latest paid up capital of IDBI
stands at Rs 723.04 crore. The Government of India holds 52.83% stake of the
entity.

IDBI, on 10 September 2005, expanded its film financing exposure to almost
double the limit following huge demand from corporatised film makers for
formal funding. The limit was raised to Rs 200 crore last month from Rs 100
crore earlier (when the bank had just initiated film production financing in
2001).

IDBI had earlier envisaged a life insurance venture in collaboration with a
foreign player. The bank now intends to finalise the model for the venture
and fix its partners in the next couple of months. IDBI will also be mopping
up Rs 10,000 crore by way of bonds either from the domestic market or
overseas this year.

Chandni Engineering members approve stock split


Chandni Engineering Ltd has informed BSE that the members at the Extra
Ordinary General Meeting (EGM) of the Company held on August 17, 2005,
inter alia, have approved the sub-division of equity shares of the
nominal value of Rs 10/- each into 10 equity shares of Re 1/- each.

Further the Company informed that the Register of Members & Share
Transfer Books of the Company will remain closed from September 26,
2005 to September 29, 2005 (both days inclusive) for the purpose of
sub-division / stock split of shares.

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