Top 10 life insurance cos in the country:ET

Top 10 life insurance cos in the country

Life Insurance Corporation of India
LIC still remains the largest life insurance company accounting for 64% market share. Its share, however, has dropped from 74% a year before, mainly owing to entry of private players with innovative products and better sales force. LIC experienced growth of only 5% during 2007-08 in new business premium. It had an estimated 1.1 million licensed agents, with the private insurers adding another 900,000.LIC witnessed decline in sales by 24% for new business premium for the first four months for the current financial year. Total sales stood at Rs 10,797.1 crore during April-July as against new sales of Rs 14,186.04 crore in the corresponding period last financial year.This is was mainly due to slowdown in economy and crash of stock market. Also, private companies are eating the share of LIC by introducing innovative products.

ICICI Pru is the biggest private life insurance company in India. It experienced growth of 58% in new business premium, accounting for increase in market share to 8.93% in 2007-08 from 6.97% in 2006-07. Total premium collected increased to Rs 8,305.80 crore from Rs 5,254.64 in 2006-07. Total number of policies sold went up by 49%, from 1,960,034 to 2,913,606 in 2007-08, with a market share of 5.73%.Renewal premium had gone up by 101% to Rs.5,526 crore from Rs 2,751 crore. The company has 950 urban and 1,000 non-urban branches across the country. For the first four months of current financial year, it reported growth of 45.3%.

Total new business premium collected by Bajaj Insurance was Rs 6,491.70 crore in 2007-08. The company reported a growth of 52% and its market share went up to 6.98% in 2007-08 form 5.66% in 2006-07. The company ranked second (after LIC) in number of policies sold in 2007-08, with total market share of 7.36%.For the period of April – July 2008, total amount of new insurance premium sold was Rs 1,197.95 crore as against Rs 1,075.93 in the same period last year, experiencing a growth of 11.35%. Number of policies sold dropped by around 3%. Bajaj Allianz Life has a strong distribution network across the country with over 1000 branches spread over 950 towns. It plans to raise its capital base by infusing Rs 500 crore in next few months to support its expansion plans.


SBI Life Insurance Co Ltd
State Bank of India has a 74% equity stake and the balance 26% is held by French firm Cardif SA in SBI Life insurance. The company broke even in March 2006. It’s the fourth year of operations. SBI Life leveraged the 14,000-odd bank branches of its parent SBI to push insurance policies. The company grew 142.5% in the first four months of the current fiscal year. Total market share of the company increased from 3.14% in 2006-07 to 5.15% in 2007-08, making it the 4th largest company in India. However, in terms of new number of policies sold, the company ranked 6th in 2007-08. New premium collection for the company was Rs 4,792.66 crore in 2007-08, an increase of 87% over last year. The company this year got approval to open 100 more branches to sell life insurance products.


Reliance Life Insurance Co Ltd
Reliance Life has sold maximum number of new group non-single policies in 2007-08. It experienced a phenomenal growth of 196% in 2008. Total new business premium collected was Rs 2,792.76 crore and its market share went up to 2.96% from 1.23% a year back. It now ranks 5th in new business premium and 4th in number of new policies sold in 2007-08.RLIC has been one of the fast gainers in market share in new business premium amongst the private players. It has crossed 1.7 Million policies in just two years of operations, after its takeover of AMP Sanmar business. The number of policies sold in the year 2007-08 stood at 10.74 lakh as against 4.51 lakh in the previous year. In a short span of time, the company accomplished a large distribution set-up by opening 600 branches in 10 months, taking the overall branch network to above 740.


HDFC Standard Life Insurance Co Ltd
HDFC Standard Life operates across more than 726 cities and towns of the country. It also has more than 383 corporate agents and other sales intermediaries, including banks like Union Bank and Indian Bank, for distribution of insurance products. The company strengthened its number of offices from 103 to 572 across the country in less than three years. The company also increased its depth in existing markets by increasing its financial consultant strength from 74,000 as on March 31, 2007 to 1,45,000 as on March 31, 2008. The Company generated new business premium income of Rs 2,680 crore in FY2007-08, registering a year-on-year growth of 64%. Its market share is 2.88% and it ranks 6 th among the insurance companies and 5th amongst the private players.


Birla Sun Life Insurance Co Ltd
It is a joint venture between the Aditya Birla Group and Sun Life Financial Inc of Canada for asset management, life insurance and wealth management businesses. The Aditya Birla Group holds 74% and Sun Life Financial holds the rest 26% in the company. The company reported growth of 157.18% for the first four months of the current fiscal year. For year 2007-08 growth in new business collection was 122.60%. With this growth rate, market share of the company increased from 1.22% to 2.11% in 2007-08. The company moved to the 7th position in 2007-08 from 8the a year before, pushing down Max New York Life insurance company. During 2007-08, an additional capital of over Rs 550 crore had been infused in various trenches by the company. With this growth rate, the company is expected to break even by 2010, its ninth year of operations.


Max New York Life Insurance Co Ltd
The company reported growth of 73% in 2007-08. Total new business generated was Rs 641.83 crore as against Rs 387.51 crore. The company was pushed down to the 8th position from 7th in 2007-08. Market share of the company increased from 1.17% to 1.71%. Its performance has been very moderate as compared to other private companies. New business premium from April – July was Rs 641.83 crore. This is an increase of 66% over the same period last year. The company plans to increase its capital base to Rs 3,600 crore from Rs 1,200 crore at Present. It is planning to add 14,000 employees to its present strength of 11,000 to reach 25,000 by 2011 and open 250 new offices every year to reach more than 1,600 offices in different locations.


Kotak Mahindra Old Mutual Life Insurance Ltd
Kotak Mahindra Old Mutual Life Insurance is a joint venture between Kotak Mahindra Bank, its affiliates and UK-based financial services firm Old Mutual plc. Total new premium collected is Rs 345.15 crore for the first four months as against Rs 159.95 cr, reporting a phenomenal growth of 160% over the same period last year. For the fiscal 2007-08, the company reported growth of 80%, moving from the 11th position to 9th. It captured a market share of 1.19% in 2007-08. Last year the company doubled its branch network to 150 from 74. The company is planning to increase this figure to 210 by end of this fiscal. Promoter of company - Kotak Mahindra Bank -- plans to expand to 250 branches from the existing count of 185 in the next year. With this the insurance company will have about 500 outlets to sell policies. Most of the expansion — around 75% -- is in tier II and tier III cities.


Aviva Life Insurance Company India Ltd
Aviva Life is a joint venture between FMCG major Dabur and the UK-based Aviva Plc. Growth in new insurance premium was mere 0.81% from April – July 2008 against the same period last year. Performance of company was very moderate last year also with reporting growth in new business of only 46%. Total premium was Rs 1,059.08 crore in 2007-08 as against Rs 724.03 crore in 2006-07. Market share of the company was 1.13% in 2007-08. The company ranking dropped to 10th in 2007-08 from 9th last year. It has presence in more than 3,000 locations across India via 221 branches and close to 40 bancassurance partnerships. Aviva Life Insurance plans to increase its capital base by Rs 344 crore. With the fresh investment, total paid-up capital of the insurer would go up to Rs 1,348.8 crore.

Source: Northbridge Capital thro ET

Headlines of the Day

Nomura buys Lehman's Europe i-bank arm
RNRL mulls Rs 12,000 cr capex for cement, shipping
Financial closure for 2 mega plants this year: Reliance Power
RPL to tap opportunities for N-power
RBI's new directions for NBFCs

Tata buys stake in Riversdale Mining
Computer helper: What you need to know about Chrome
RPL's second refinery to go onstream in Nov
RIL stock falls on gas output delay
N-deal with India to support 2.5 lakh high-tech jobs in US

Lehman re-opens under Barclays ownership, 10k jobs offered
RBI credit policy review on October 24
Anil fires another salvo against Mukesh
Etisalat buys 45% in Swan for $900mn
RNRL vs. RIL: Anil says price no issue

Punj Lloyd bags $800mn Qatar Petro order
Bailout uncertainty, oil sinks Wall St
All about the bailout plan
Bernanke urges Congress to approve $700 b
Nagarjuna Construction bags Rs 413-cr orders

Ranbaxy open offer: Excess shares to be returned
Reliance’s $6 billion plant to run by mid-November
4 SEZs in Tamil Nadu get in-principle nod
Crude oil climbs by $25 a barrel
Hindalco to raise Rs 5,047 cr via rights issue

BPCL to invest Rs 1,500 cr on 24 oil exploration blocks
Shareholders approve SAIL-BRL merger
Asian Markets Follows Wall Street Losses
Market Timings due to Sun Outage

Reliance Capital Reliance Industries Limited
Bombay Rayon Fashions
Sakthi Sugars Panacea Biotec
Exide Industries GSK Pharma
Onmobile Global Reliance Industries Ltd
India Cements Reliance Industries
NTPC, India Real Estate NIIT Ltd
Bharti Airtel Ltd

Indian Banks exposure to failed investment banks
Post Session Commentary - Sep 23 2008
Battered market
Gold Surpasses $ 900 Mark Again
FII India Holding List

Havells India
Hindustan Unilever, Gateway Distripaks
India's trade deficit balloons




Source:ET, sify, BS , Deadpresident blog.

Sensex sheds 425 pts on weak global cues

Sensex sheds 425 pts on weak global cues

The Wall Street tumbled yesterday on uncertainties over the details regarding the US Government's $700 billion plan to fix the financial market turmoil. With a sharp surge in crude oil prices also dampening the sentiment, Asian markets followed suit and the mood back home was not any different this morning.

Astro predictions on Sensex

There was a smart recovery in mid morning trade when the Sensex rebounded by over 250 points from a low of 13,721.42, thanks to some strong buying in Reliance Industries, ONGC and a few other blue chip stocks. However, the rally proved short-lived and the Sensex started sliding down fast in afternoon trade. A weak close on Asian bourses, the negative trend in European markets and the decline of US index futures never allowed any recovery thereafter.

Stockometer
While the Sensex, which plunged to a low of 13,543.47, ended at 13,570.31 with a loss of 424.65 points or 3.03%, the Nifty settled at 4126.90, a few points off a low of 4117.90, with a loss of 96.15 points or 2.28%.

Top gainers
Information technology, realty and bank stocks took a severe beating. Mirroring their fall, the respective sectoral indices went down by 5.07%, 4.68% and 4.19% respectively. BSE Teck eased by 3.54%. The Consumer Durables, Capital Goods, Metal, Power, Auto, Healthcare and FMCG indices slipped by 1% - 2.5%. BSE Oil & Gas and PSU lost 0.82% and 0.9% respectively.
Worst losers

Reflecting the sell-off in midcap and smallcap segments, the BSE Midcap and Smallcap indices ended lower by 2.06% and 1.63% respectively. Ranbaxy Laboratories lost over 11% on reports the Canadian drug regulator, Health Canada, issued a notice to Ranbaxy saying it will be particularly cautious about drug marketing applications from Ranbaxy after the US drug regulator blocked the sale of more than 30 generic medicines made in two factories by the company.


Software majors Satyam Computer Services (down 5.95%), Tata Consultancy Services (down 5.9%), Wipro (down 5.75%) and Infosys Technologies (down 5.15%) ended with sharp losses.
Realty stock DLF lost 6.25%. Housing finance major HDFC ended lower by 5.5%. Banking sector heavyweights ICICI Bank (down 5.45%), HDFC Bank (down 4.6%) and State Bank of India (down 4.05%) also declined sharply.

Jaiprakash Associates ended with a loss of 5.35%. Tata Motors lost over 5%. Tata Steel (down 4.6%), BHEL (down 3.4%), Grasim Industries (down 2.4%), Maruti Suzuki (down 2.35%), Sterlite Industries (down 2.15%), Larsen & Toubro (down 1.8%), Bharti Airtel (down 1.75%), Hindalco (down 1.55%), Reliance Infrastructure (down 1.5%), Reliance Industries (down 1.35%), ITC (down 1.1%) and Hindustan Unilever (down 1%) ended on a very weak note.

NTPC lost 0.9%. Mahindra & Mahindra and Reliance Communications ended with modest losses. ONGC declined marginally. ACC and Tata Power closed in the positive territory with small gains.
Unitech, Punjab National Bank, Suzlon Energy, Zee Entertainment, Ambuja Cements, SAIL, Siemens and Power Grid Corporation were among the prominent losers in the Nifty index.
Sun Pharmaceuticals (3.4%), Nalco (2.85%), BPCL (2.35%), Cairn India (1.45%), Hero Honda (1.35%) and HCL Technologies (0.7%) ended with notable gains.

Deccan Chronicle Holdings, Rolta India, Gujarat Minerals, Sintex Industries, Lanco Infratech, India Bulls Real Estate, HDIL, LIC Housing Finance, Educomp Solutions, Canara Bank and Hindustan Construction Company were among the major losers from BSE 'A' Group.

The market breadth was weak. Out of 2652 stocks traded on the BSE, 1823 stocks closed on a negative note. 760 stocks posted gains and 69 stocks ended flat.

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Equities tumble on US market woes
Nifty Sept premium eases, call buying at 4100
Sensex slips 425pts; banking, realty, IT stocks weigh

Source:ET,Sify.BS

Reliance strikes 'gold' in K-G basin

Reliance strikes 'gold' in K-G basin
RIL to supply 40% of India's gas, oil! - another article
40% of India's gas, oil from RIL!

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, does little in half measures.
He had not interacted with the media for at least two years, yet the Chairman of the country’s largest private sector company made up for the hiatus by spending most of Sunday with scores of journalists from across the country.

Ambani was profusely apologetic for spoiling their Sunday. He had thought he would use the interaction to announce to world the first flow of oil from the company’s oil and gas field in the Krishna-Godavari basin, but he was pre-empted by a leak of that news a couple of days ago. So, he was left to explain the significance of the “historic day” for India. He did so with the same passion and commitment that has brought the first commercial quantities of oil flowing from a field just six years after gas was first discovered.

He claimed it was the fastest exploration and production effort in any deep water basin in the world. The global average is about nine years, he said, quoting a Goldman Sachs study.
There is a huge factory set up on the sea bed 7,000-8,000 feet under water, at temperatures close to freezing, run entirely with robots.

It was “world class expertise that Reliance had developed from scratch,” he said.
He said the production of oil and gas from the Krishna basin meant a lot for India’s energy security. He explained that within the next year-and-a-half, his company would be producing the equivalent of 550,000 barrels of oil a day increasing the domestic petroleum output of 1.3 million barrels a day by over 40 per cent, thereby reducing the need to import oil.

The country paid $56 billion last year for imported oil. Ambani said preliminary studies had indicated that the Cauvery and the Mahanadi basins also bore immense potential.
“We are more blessed with gas than oil,” he said. “That is a huge advantage because gas is the fuel of the 21st century, it being environment friendly.”
Alluding to the telecom model that he said had empowered the country, he said that in a matter of months, natural gas can be piped into millions of homes as cooking fuel. It would obviate the need for cylinders to be carried around, and it would be cheaper for consumers, the equivalent of Rs 116 a cylinder. The current price ranges from Rs 304 to 352.

From 5,000 barrels to 5.5 lakh barrels
Commercial production of gas from the D6 block in the KG basin would start from January-March quarter, said Mukesh Ambani.
Ambani said the crude, which started flowing on September 17, is now stabilised at 5,000 barrels a day, and would be scaled up to 5.5 lakh barrels of oil equivalent a day over the next four to six quarters. This would account for 40 per cent of domestic output. Gas would account for 90 per cent of production from the D6 block, and crude the rest.
Gas production would start with 15 mscmd (million standard cubic metres a day) and later be ramped up to 40 mscmd in a few months’ time.
The gas would be sufficient to feed 100-120 million households, power 50 million two-wheelers, 5 million cars and 10 million trucks, as well as supply fuel for 25,000 MW of power.

$20 billion saving per annum
Ambani said production from RIL’s fields will have an enormous impact on “the fortunes of India and Reliance”, contributing to foreign exchange and import bill savings of $20 billion a year.
Reliance owns 90 per cent of the D6 block, and Canada’s Niko Resources owns the rest.
Since RIL faces no scarcity of either capital, technology or talent, a third partner is not under consideration currently, but a good value proposition might change that. If someone were to give RIL a share in an equally productive asset in other parts of the world, the possibility of a partnership cannot be ruled out.

For full details:Reliance strikes 'gold' in K-G basin
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RIL to supply 40% of India's gas, oil!

September 22, 2008
Indian petrochemicals giant Reliance Industries Ltd will account for about 40 per cent of the country's energy production in the next 18 to 24 months, putting the company on track to earn a quarter of its profit from oil and gas production, from 5 per cent now.
The total hydrocarbon output from the Dhirubhai 6 (D6) block in the Krishna-Godavari basin, the field that is expected to more than double India's gas output, will rise to 550,000 barrels of oil equivalent a day (boed) by March 2010, RIL chairman and managing director Mukesh Ambani said in his first media meet in five years.
Text: Business Standard

In monetary terms, it is Rs 86,000 crore (Rs 860 billion) a year, Ambani said, adding the D6 block in the KG basin will transform the country's energy landscape.
Speaking at the sprawling Reliance Corporate Park in Navi Mumbai, Ambani termed the start of oil production at the D6 basin three days ago as a historic occasion not only for the company but for the entire country. The initial production from the block was 5,000 boed.

"From nowhere in 2002 as far as oil production is concerned, we are now set to be among the top 20 integrated energy companies in the world. In fact, RIL will be one of the world's largest deep-water oil well developers," a beaming Ambani said, as his wife Nita Ambani, who was sitting next to him, nodded.
"Around 40 years after Bombay High was discovered, this is India's major victory in the battle for energy security. RIL has managed to produce oil in two years - a time other companies would take just to map out their exploration nitty-gritty," Ambani said, looking appreciatively at his top team led by PMS Prasad, president & CEO (oil & gas).

Ambani is investing $5.2 billion to develop the KG basin. This oil production, Ambani said, will not only benefit customers but also reduce subsidies and thus release huge financial resources that the government can spend on development.
The company will start pumping natural gas from the KG basin in the January-March quarter, which is within the broad target of the company but later than the government's forecast that production would begin by November.

more @ above link.

Other related:
K-G basin gas to lift Reliance profit: Mukesh Ambani
RIL to step up oil output to 20,000 barrels by Diwali
RIL to supply 40% of India's gas, oil!
40% of India's gas, oil from RIL!

Reliance shares gain on gas output plans
KG Basin gas to lift Reliance profit: Mukesh Ambani
RIL: Commercial gas flow from KG basin begins January

RIL to step up oil output to 20,000 barrels by Diwali
RIL may offload stake in D6 block if it adds value proposition
RIL open to KG-D6 stake sale
Reliance's KG oil starts flowing; gas to follow in 2009
KG Basin gas to lift Reliance profit: Ambani

RIL to await court verdict before gas sale: CEO
RIL can sell KG gas at higher than discovered price
RIL to account for 40% of India's energy output: Mukesh
RIL to account for 40% of India's energy output: Mukesh
RIL to start production of gas in KG basin from Jan-March
Fastest exploration in deep water basin, says Mukesh



Source: ET, BS, Rediff, SIfy

Sensex ends 47 pts down

Sensex

Market loses steam, ends lower on profit booking /Markets end choppy session lower

Short build up trims Sep premium, Nifty support at 3900

The Sensex opened with a positive gap of 173 points but struggled right through the session today as investors remained wary of building up positions. Though the mood was positive at the start thanks to a firm trend on the Asian bourses, not many blue chip stocks were seen attracting sustained attention today. The weak start in European markets rendered the afternoon session extremely choppy.
Stockometer
Select FMCG and metal stocks had a good outing today. Realty stocks opened well but gradually lost their way and drifted lower as the session progressed. Capital goods stocks met with a similar fate but losses recorded them turned out to be more pronounced.
Top gainers
Bank and pharma stocks bounced back a bit and regained some lost ground. Oil and IT stocks remained subdued. Auto and power stocks also drifted lower. After a good show early on, midcap and smallcap stocks wilted under pressure.
Worst losers
While the Sensex, which plunged to a low of 13,917.48, ended the day at 13,994.96 with a loss of 47.36 points or 0.34%, the Nifty closed at 4223.05 with a loss of 22.20 points or 0.52%. In intra-day trades today, the Nifty touched a high of 4303.25 and a low of 4202.40.
Scrip Scan
ACC (3.25%), Tata Steel (2.95%), ITC (2.15%) and Hindustan Unilever (1.7%) closed on a firm note. Bharti Airtel, Grasim Industries and ICICI Bank moved up by 1% - 1.25%. HDFC notched up a modest gain of 0.8%. Infosys Technologies and State Bank of India closed with marginal gains.
Experts' Talk
Satyam Computer Services lost 4.65% today. Jaiprakash Associates (down 3.8%), Maruti Suzuki (down 3.15%), Ranbaxy Laboratories (down 2.7%), Hindalco (down 2.65%) and Larsen & Toubro (down 2.6%) also declined sharply.
Tata Motors, Reliance Infrastructure, Sterlite Industries, BHEL, DLF, ONGC and Reliance Communications also ended with sharp losses. NTPC, Reliance Industries, Tata Power and Wipro lost 0.6% - 0.75%.

Suzlon Energy (down 6.35% to Rs 198.60) was the biggest loser in the Nifty index. Siemens lost over 3.5%.SAIL, BPCL, Reliance Power, Power Grid, Cipla, Zee Entertainment and Punjab National Bank also ended with sharp losses.

Unitech, Sun Pharmaceuticals, HCL Technologies, Tata Communications, Reliance Petroleum and Idea Cellular closed with sharp to moderate gains.

Gujarat Minerals recorded a hefty gain of 14.1% and was the star performer among BSE 'A' Group stocks today. Sesa Goa (13.15%) shot up on strong buying support. Sintex Industries vaulted 10.65%. Gujarat NRE Coke zoomed 7.25%.Phoenix Mills and Gujarat Petronet gained 6.55% and 5.5% respectively.

NMDC, Colgate Palmolive, Bajaj Financial Services, Crompton Greaves, United Breweries, Glenmark Pharmaceuticals, Aditya Birla Nuvo, Deccan Chronicle Holdings, GE Shipping, Akruti City, Sun TV Network and Dabur India gained 2% - 5%.

Midcap stock Moser Baer ended with a huge gain of 18.95% at Rs 133.55. Tulip Telecom surged 13.4% on a big order win. Ashapura Minechemicals, Tanla Solutions, Asian Hotels, Ess Dee Aluminium, Bharat Bijli, Apollo Tyre, EID Parry, Gujarat Alkalies, BF Utilities, HEG and Torrent Pharma were some of the prominent gainers in the midcap space.

Tips to book profits in stock markets! Click here
The market breadth was marginally negative when trade ended today. Out of 2666 stocks traded on BSE, 1234 stocks closed with gains. 1354 stocks ended on a negative note and 78 stocks ended flat.

Source:Sify, ET

Business Headlines from Sites,Blogs

Mitsubishi buys 20% stake in Morgan Stanley
US stocks open lower after bank bailout plan
Microsoft to buy back $40 billion of stock
Volatility in market to continue
Mkts try to analyse Wall St changes

Short build up trims Sep premium
Govt relaxes ECB norms for core cos
China toxic milk sickens 53,000
Goldman, M Stanley to be holding cos


Where AIG went wrong
AIG, world's most sophisticated insurer proved to be far from adept at managing its own risk. Despite assets in excess of $1 trillion.
Eight days that shook the world US mortgage crisis
BoJ to inject up to $30 bn Nomura buys Lehman's Asia biz

Tulip bags Rs 95 cr order from Madhya Pradesh
Kingfisher cuts 300 jobs; to return surplus aircrafts

Investor's Guide
Fluctuations are signals from mkt that warrant action
Shree Renuka Sugars: A good long-term bet
Banco Products: An attractive pick for conservative investors
Bilcare conquering new frontiers
Fundamental values amid crumbling free-market principles


Bull's eye: Info Edge, ONGC, Hindustan Unilever, Pantaloon Retail,Bartronics India, HDIL
Fixed income funds become increasingly important
In the spotlight: Digitally Speaking
Everest Kanto Cylinders for Long-term investors
Turmoil Redefined: Indices in intermediate downtrends

Rupee trims gains on oil buying, stocks
'Biocon is world's 7th biggest BT company'
Punj Lloyd gets $42 m order in Libya
Nifty may hit 4400 by this Thursday




Source:ET,Sify

Todays Headlines

US govt announces $85 bn loan to save AIG
History of Lehman I Credit crisis: A subprimer
Barclays agrees to buy some Lehman assets: Source
US stocks end higher after Fed keeps rates unchanged
The Great Crash of 1929, and lessons taming the crisis of 2008

US FDA blocks imports from Ranbaxy for poor quality
Emami doubles open offer price for Zandu
AIG's shares plunge AIG too big to fail: Analysts AIG fact file
Experts speak on financial crisis Anatomy of credit crisis
Rising dollar to make your cell dearer
US crisis makes Satyam look East

Fed holds key rates steady
Morgan Stanley Q3 profit falls 3%
Can Chrysler survive US slump?
Reliance Infra eyes India steel plant - official
TCS, Wipro recast hiring plans

Welspun India to demerge divisions into separate cos
RBI may hike key rates again, says Dun & Bradstreet
Edelweiss Securities maintains baccumulateb rating on ITC
Kotak Securities maintain bbuybon Infosys Technologies
IRDA seeks status report from Tata, AIG

Indian IT majors turn cautious post Lehman, Merrill fall out
RBI steps in to cool financial markets
Fuel price cut only when oil at $67: Deora
RNRL may lead ADAG's new forays
ONGC to enter solar energy business

ADB lowers India's economic growth forecast to 7.4 per cent
Indian banks’ Lehman exposure negligible
RBI moves in to ease pressure on markets
Reliance Infra hopes for EPC contracts in nuclear energy
Value of AIG’s India mutual funds falls by 7%
250 stocks hit new year lows on NSE
---------------------------------------------
Other Stk,Mkt reports from Deadpresident

Economy, Oil & Natural Gas Corporation, HCL Techno...
IDBI HDFC ONGC
Banking shares recover
Rupee falls to nearly 47
Nifty September 2008 futures at premium
Asian Markets End Sharply Lower
Futures and Options - Sep 16 2008

Triveni Industries
Post Session Commentary - Sep 16 2008
Bank shares lead intra-day rebound; Fed in focus
AIG - India Holdings
More jitters for the market

Gold Ends Higher In Volatile Session
Daily Technicals - Sep 16 2008
Morgan Stanley - next ?
Lehman invested in DLF, Unitech
Futures and Options - Sep 15 2008
Goldman Sachs - India Holdings
Once in a Century Crisis - Greenspan
Oil's great crash
Monthly Economic Review
India Infrastructure
Weekly Technicals - Sep 16 2008
Nestle
Lehman India sell off

India Economy, Cairn India, Hindustan Unilever, He...
Sintex Industries, Everest Kanto, Nitin Fire Prote...
Warren Buffet - 10 ways to get rich
India GSM Subscriber Figures
Nagarjuna Construction Ltd

Lehman Brothers - India Holdings
Dalal Street catches cold as US sneezes
Infosys Technologies
Lehman Brothers - Holdings in India

Source:ET,BS,BL, deadpresident blog.

Why Lehman went bust and what it means for you

Why Lehman went bust & what it means for you

Lehman Brothers is no more. Merrill Lynch has gone down the Bank of America maw. AIG too could go belly up. With a doubt, these developments in America are the most shocking events to have hit global financial markets. So where did it all begin? And what does it mean for the Indian stock markets? Find out. . .
What is (or was) Lehman Brothers?
America's fourth-largest investment bank Lehman Brothers Holdings Inc has filed the biggest bankruptcy petition known to mankind.
The 158-year-old firm was founded by brothers Henry, Emanuel and Mayer Lehman, Jewish immigrants to the US from Germany, in 1850. Henry set up a general store in Alabama in 1844 and was later joined by his brothers. In 1850 they set up the merchant bank in New York after having made money in railway bonds. So what went wrong?

Lehman Bros, which till June 2008 had not reported a quarterly loss even once, had earlier survived many an economic crises, like railroad bankruptcies of the 1800s, the Great Depression in the 1930s, and the collapse of Long-Term Capital Management in the 1990s.
Thus the collapse of the giant investment bank came as a major shock for the entire world markets that plunged after Lehman filed a Chapter 11 petition with US Bankruptcy Court in Manhattan.
The $613 billion (some estimates put the size at $639 billion) bankruptcy thus throws up the question: why did the Wall Street giant go bust? Here's why. . .

Why did Lehman Brothers go bankrupt?
The giant investment bank succumbed to the sub-prime mortgage crisis that has rocked the United States and the global economy. Lehman was strangled by a massive credit crisis and fast plummeting real estate prices.
The gargantuan $60 billion loss in bad real estate loans forced the bank to file for bankruptcy.
However, the fall of the 158-year-year institution that started cotton trade in US before the American Civil War and financed the railroad that built a nation, got hit by a large dose of bad luck, pride, arrogance and greed. Primarily, the pride of its chief executive office Richard Fuld.
But there were more reason. Check out what they were. . .

For full details:Why Lehman went bust & what it means for you
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Lehman falls, Merrill sold, AIG tottering. What next?

series of events in United States, including Bank of America agreeing to buy Merrill Lynch for $44 billion and Lehman Brothers' move to file a bankruptcy protection, has shaken up the global financial markets.
About 10 major banks, comprising Citigroup and Credit Suisse Group, reached an agreement to create a $70 billion borrowing facility committing their own money, which could be used to tide over the financial crisis.
Lehman Brothers thought of bankruptcy after it failed to find a buyer and financial media reports said that AIG could survive for only a few days without infusion of the capital.
The giants of financial markets have been shaken up by losses of hundreds of billions of dollars in bad mortgages in the housing markets.
Lehman Brothers began considering bankruptcy after Barclays and Bank of America, the top suitors, walked away apparently following Federal authorities declining to provide financial backup to them, declaring bankruptcy would allow Lehman's subsidiaries to continue to function as the company itself is wound down.
"The stunning series of events culminated a weekend of frantic around-the-clock negotiations, as Wall Street bankers huddled in meetings at the behest of Bush administration officials to try to avoid a downward spiral in the markets stemming from a crisis of confidence," the New York Times said.

Though the Federal Reserve steered clear of bailout of Lehman, the Wall Street Journal said it is expected to take new steps to stabilise the broader financial system.
These steps, expected to be temporary, would make it easier for banks and securities firms to borrow from the central bank by using a wider range of collateral.
Bankers say these financial institutions might need short-term funds as they unwind their many trading positions with Lehman.
Merrill has some 60,000 employees and Lehman 25,000. It was not clear how the moves would affect them. AIG executives were reported to be trying to raise funds by selling assets or infusion of capital from private equity firms.
But late Sunday night, the New York Times reported quoting a person briefed on the matter that the insurance giant was seeking a $40 billion bridge loan from the Federal Reserve as a potential downgrade of its credit rating could spell doom.
Ratings agencies threatened to downgrade the insurance giant's credit rating by Monday morning, allowing counter-parties to withdraw capital from their contracts with the company, the paper said.

more @ http://specials.rediff.com/money/2008/sep/15slide2.htm

Source:Rediff.com

Nifty ends 5-day losing streak; RIL, SBI, HDFC Bk surge

Sensex won't see old highs for 2-3 yrs: Shankar Sharma

Shankar Sharma, VC and Joint MD of First Global rues that the bull market will not be back in a hurry and does not see the Sensex re-conquering its previous highs in the next two or three years. He estimates a moderate downside and sees the Sensex falling to the 10000-11000 levels. He also sees no recovery of a number of stocks on the Index to its previous highs. He feels the international financial crisis is not over and there are still a few struggling names in Europe and the US. He said he has no sympathy for investors of investment banks all over the world. He said that the rupee is intrinsically weak and would add to the concern of capital outflows.

Excerpts from CNBC-TV18’s exclusive interview with Shankar Sharma:
Sensex won't see old highs for 2-3 yrs: Shankar Sharma

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http://www.moneycontrol.com/india/news/economy/how-much-advance-tax-have-cos-paid-for-sept-quarter/19/15/356376

Sources said Tata Steel has paid Rs 300 crore as compared to Rs 350 crore, year-on-year. Tata Motors paid Rs 75 crore as against Rs 190 crore YoY, while Tata Consultancy Services paid Rs 115 crore versus Rs 20 crore YoY.

Among banking companies, Bank of India paid Rs 191 crore as compared to Rs 150 crore YoY, sources said. Union Bank paid Rs 130 crore as against Rs 100 crore YoY, while ICICI Bank paid Rs 250 crore versus Rs 185 crore YoY.

Mahindra & Mahindra paid Rs 116 crore as compared to Rs 83 crore YoY, while L&T paid Rs 170 crore versus Rs 80 crore YoY, sources added.

State Bank of India, or SBI, has paid Rs 1,560 crore as advance tax for the September quarter as against Rs 1,060 crore year-on-year, reports CNBC-TV18, quoting sources. Videocon paid Rs 25 crore as against Rs 20 crore YoY. HDFC and Reliance Industries paid Rs 290 crore and Rs 680 crore respectively for the September quarter. RIL had paid Rs 650 crore in the same period last year.

CNBC-TV18 Disclaimer:This information is source-based and has not been provided to the stock exchanges.
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Sensex ends down 12pts, SBI gains 6%
Nifty ends 5-day losing streak; RIL, SBI, HDFC Bk surge
ICICI Bank UK holds Lehman bonds
Advance tax nos not correlated with profitablity: Macquarie
US stocks extend slide on AIG worries

Finacial crisis: World Central banks pump $300 bn
Rupee posts biggest fall in a decade
Fed set to hold rates steady, may signal cuts
Goldman Sachs Q3 net plunges 70%
The journey of Lehman Brothers

Cause of Lehman bankruptcy Fallout threatens recession
Fate of 2,500 employees? Souvenirs command premium
Rel Cap to invest in insurance
Special: Pink slips back at IT cos
London stock mkt slides to 3-year low

Re falls to weakest since July 2006
ICICI Bank has Rs 375-cr exposure in Lehman Brothers
R-Cap to invest Rs 2,000 cr in insurance biz in next 3-5 yrs
Rel Infra eyes Rs 15,000 crore share in PSU steel projects
Short covering, value buying aid market recovery

Source:ET, BS,BL, UTVi