Indian Stock Market

Gross buyers Rs.1262.79 crs

Gross sellers Rs.1050.39 crs

Net buyers Rs.212.40 crs

Housing Development Finance Corporation said it has closed its first sponsored real estate fund, raising $800 million (Rs 3,280 crore).
The ?HIREF International LLC? fund was initially intended to raise $50 million, but HDFC eventually raised $800 million despite the current tight market situation, said an official with the company. HIREF International is now one of the largest international real estate funds in the country, he said.
The nine-year close-ended fund was privately placed, raising money from 28 different international investors.
?The objective of the fund is to invest in FDI-compliant real estate projects in India to achieve long-term capital appreciation. The fund will target equity returns of 20-25 per cent,? said Ms Renu Sud Karnad, Chairperson, HDFC Property Ventures Ltd and Executive Director, HDFC.
?The fund will have a conservative approach with no regional or sector bias and would invest in residential, commercial, hospitality, education, healthcare sectors and at developers? entity level,? she said.
HDFC?s 30-year relationship with over 350 big developers India-wide stood it in good stead in a wary market, helping it close the fund, said company officials. Mr K. G. Krishnamurthy, Managing Director, HDFC Property Ventures Ltd said, ?We will be identifying and advising on opportunities available with reputed developers in the major cities having sound fundamentals.?

Japan’s consumer prices declined for a sixth straight month in July, signaling the world’s second- largest economy has yet to overcome a decade of deflation. Industrial production and household spending dropped.

Danone chairman expected to meet Wadias on Sept 3. The Wadias of Bombay Dyeing are poised to buy the entire stake of partner Groupe Danone in biscuit maker Britannia at a discount. The contours of the deal are likely to be drawn up at a meeting on September 3. That is also the time when Danone Chairman Franck Riboud is expected to be in India. Sources close to the deal said the French dairy foods giant?s exit would be in line with that of other multinational companies from joint ventures in India and the discount in this case could be as much as 20 per cent to the market price. Danone is keen on operating on its own in India and needs a no-objection from the Wadias to be able to do so. At today?s closing share price of Rs 1,560, Britannia Industries is valued at about Rs 3,800 crore. The Wadias and Danone hold 50 per cent equity each in Associated Biscuits International (ABIL), which holds 51 per cent equity in Britannia, giving each partner control over 25.1 per cent equity of the joint venture.

Asian stocks rose, with a key regional index set to post its second straight weekly advance.

Infinity Retail Ltd, a wholly-owned subsidiary of Tata Sons Ltd, plans to open eight Croma large format consumer electronics retail stores in Pune as part of its plan to open over 100 such stores by 2010. Ajit Joshi, managing director and chief executive officer of Infinity Retail Ltd, said the company wants to cover eight major Indian cities, including the metros during its initial roll out.

The Insurance Regulatory and Development Authority (Irda) has accorded the first stage of clearance to IDBI-Fortis Life Insurance, a joint venture of Industrial Development Bank of India, Fortis Insurance International of the Netherlands and the Kerala-based Federal Bank. ?The final clearance is in an advanced stage of consideration,? Irda chairman CS Rao told Business Standard. The IDBI, along with Fortis and Federal Bank, has formed the life insurance joint venture to tap the growing market for life insurance products in India.

The domestic steel prices are set to rise in September, with a hike of Rs 500-1,000 a tonne in hot rolled coil (HRC) rates from the beginning of the month. This will be the first rise in prices in the financial year and after the drop in July by the same amount.

Asian Oilfield Services Ltd has informed that a meeting of the Board of Directors of the Company will be held on September 10, 2007, inter alia, to consider the Issue and Allotment of Warrants on Preferential basis to the Strategic Investors and promoters.

India?s tech posterboys and cross-town rivals Infosys Technologies and Wipro have shown interest in buying out the US-based high-end analytics company MarketRx. The indicative valuation of MarketRx is seen between $150 million and $160 million (Rs 615-650 crore), sources said.
This is probably the first time the Bangalore-headquartered Infosys and Wipro are seen chasing the same company for a possible acquisition. MatrixRx?s $160-million valuation is five times its revenue, the sources added. It is believed that the promoter expectation is ?slightly north of this valuation?.

The empowered group of ministers? (eGoM) likely approval of Reliance Industries? (RIL) gas formula may be a big step forward in the resolution of the pricing controversy, but it may not be enough to get the gas flowing into the market by June 2008.
RIL will need to enter into legally-tenable gas sales contracts with its customers before it can begin its countdown towards production of gas from the Krishna Godavari region.

However, according to the company?s director Jayesh Shah the recast plans has nothing to do with the appreciating currency.

?We have taken up restructuring exercise. But it is not a move to address the rupee appreciation. We were to do this almost a year back, but it had been done now. With this restructuring, now the SBUs will be merged and will directly come under two divisions ? one is fabric and the other is apparel.?
While industry experts say that with the merger, the Arvind Mills plans to downsize its workforce, the company claimed that the restructuring its operations would help it further strengthen the customer focus.

The upcoming World Energy Outlook 2007 will study this phenomenon and its potential implications. While Russia has consolidated its position as a dominant oil and gas producer, the Organisation of the Petroleum Exporting Countries (OPEC) continues to control the largest reserves.
On the other hand, OECD production is on the decline, with the exception of non-conventional resources. Meanwhile, many poor developing countries suffer from inadequate access to energy. In this scenario, unless new policies are adopted, our current path is simply unsustainable, said Mr Mandil.

Q1 manufacturing growth is at 11.9% versus 12.3% YoY.

Q1 agriculture growth is at 3.8% versus 2.8% YoY.

Q1 construction growth is at 10.7% versus 10.5% YoY.

Q1 mining growth is at 3.2% versus 3.7% YoY.