IPOs can absorb 'huge' FII inflows: SEBI

Amid diverse views over the huge capital inflows into equity markets from FIIs, market regulator Sebi said that numerous public offers coming to the market could absorb that money and act as a balancing factor.

If the inflows from foreign institutional investors (FIIs) chase same numbers of papers then obviously prices will rise, but issuance of new papers could absorb that, Securities and Exchange Board of India Chairman CB Bhave said.

"I am not saying whether FII inflows are a concern or not … I am saying balancing factor is issuance of papers," Bhave said.

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Indian Express

Maran acquires another 7.42%stake in SpiceJet

Sun TV chief Kalanithi Maran and his firm KAL Airways have bought 7.42% equity for Rs 135.10 crore, as part of the June deal to acquire 37.7% stake in low-cost carrier SpiceJet.

This was an off-market transaction, following which Maran's direct stake in the airline now has increased to 25.12%, SpiceJet said in a filing to the Bombay Stock Exchange.

Last week, Maran had increased his direct stake in the company to 17.71% through similar transactions.

In June, the Chennai-based industrialist had clinched a deal to acquire 37.7% stake in the low-cost carrier for about Rs 750 crore from American investor Wilbur Ross, his investment companies and the Kansagara family-promoted Royal Holding Services Ltd.

The latest transaction, through which Maran has bought about 2.86 crore shares (7.42 per cent stake), at a price of Rs 47.25 per piece, is pursuant to the share purchase agreement signed at the time of the deal, the filing said.


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Times Of India

Pfizer will buy King Pharmaceuticals for $3.6bn

Pfizer Inc, the world's largest pharmaceutical company by revenue, said Tuesday it will buy pain drug maker King Pharmaceuticals Inc. for $3.6 billion in cash.

Pfizer is paying $14.25 per share for King. That's a premium of 40 percent to the stock's Monday closing price of $10.15. Pfizer gains products including the pain drug Avinza, and Embeda, an extended-release pain treatment that is designed to be abuse-resistant.

King, of Bristol, Tennessee, has struggled in recent years as patents on several of its key drugs have expired or been thrown out.


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Times Of India

India industrial output growth slows to 5.6%

Industrial growth slowed down to 5.6 per cent in August from 10.6 per cent in the corresponding period last year, on the back of a 2.6 per cent contraction in the capital goods production.

Among the main industry segments, manufacturing activity declined to 5.9 per cent from 10.6 per cent a year ago. Mining sector growth was at 7 per cent as compared to 11 per cent in August last year.

Electricity generation growth, too, slowed down to one per cent from 10.6 per cent in August last year.

Capital goods sector contracted by 2.6 per cent in August, in comparison to 9.2 per cent growth in the year-ago period, official data released here said.

Also, consumer non-durables, which are mainly fast moving consumer goods (FMCG), recorded a negative growth of 1.2 per cent, in comparison to an expansion of 6.1 per cent in the same month last year.

Consumer durables was the only segment of goods, which saw an output growth over the year-ago period. In August consumer durables expanded by 26.5 per cent, as compared to 24.7 per cent in the year-ago period.

Of the 17 industry groups, as many as 14 have shown positive growth during the month of August. The industrial expansion figure for July was revised upwards to 15.2 per cent from the earlier estimates of 13.8 per cent.

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Times Of India

Sensex closes 137 pts lower on IIP data

Heavy selling of blue chips like Reliance Industries and Larsen & Toubro dragged down the BSE benchmark Sensex by nearly 137 points today amid concerns over slowing domestic industrial output growth and a weakening global trend.

The 30-share index of the Bombay Stock Exchange fell by 136.55 points to settle at 20,203.34 at the close of trade today, compared to 20,339.89 points at the end of yesterday's session.

During the day, the gauge tumbled to an intra-day low of 20,107.25 points after the release of data showing that industrial production grew at a slower pace than market expectations in August, 2010.

The wide-based National Stock Exchange Nifty fell below the 6,100 points level today after shedding 44.95 points to 6,090.90. During intra-day trade, the Nifty touched a low of 6,057.95 points.

The industrial production growth rate nearly halved to 5.6 per cent in August compared to the previous year. Finance Minister Pranab Mukherjee has expressed disappointment at the factory output numbers.

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Times Of India

IndusInd Bank net profit up 71% to Rs. 133.15 cr

Riding on robust growth in net interest income (NII), IndusInd Bank on Mon clocked 71 per cent growth in its net profit for the quarter ended in September 30, 2010, at Rs. 133.15 crore as compared to Rs. 77.82 crore in the corresponding period last year.

"The NII of the bank for the second quarter is Rs. 329.73 crore as compared to Rs. 208.55 crore during the same period last year, with a strong growth of 58 per cent," IndusInd Bank managing director and CEO, Romesh Sobti, said.

The profitability momentum can be seen in the rise of net interest margin (NIM) from 2.86 per cent to 3.41 per cent and the core fee income has grown by 34 per cent, Sobti said.

The operating profit for the quarter is grown by 69 per cent at Rs. 261.65 crore as against Rs. 155.32 crore in the year ago period. Capital adequacy ratio has moved up to 16.22 per cent as against 14.91 per cent in the corresponding period.

Gross NPA has dropped to 1.21 per cent as compared to 1.50 per cent during the same period last year while net NPA has diminished to 0.36 per cent from 0.98 per cent.

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NDTV

Read more at: http://profit.ndtv.com/news/show/indusind-bank-net-profit-up-71-to-rs-133-15-cr-106874?cp