IT stocks will be in focus as rupee closed at a record low against the dollar on Monday, 19 August 2013. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. The Indian rupee on Monday closed at a historic low of 63.13 against the dollar, dropping by 148 paise, the biggest single day drop in a decade.
Reliance Communications (RCom) has said it is open to new acquisitions and will explore consolidation opportunities in the telecom market, which is expected to see hectic merger and acquisition (M&A) activity.
Product life-cycle and upgrade-cycle has been reduced drastically since several firms are coming out with new types of products and services within a short span of time, RCom has said in its annual report.
As a result, hectic M&A activities to consolidate the market share would be the new buzz in the market place. We are open to new acquisitions and opportunities to consolidate, the company added.
The company said consolidation in the Indian wireless sector is already being seen, with the exit of operators whose licensees were cancelled. In quite a few circles, the numbers of operators has reduced from the earlier 10-12 down to 8-9 operators after the exit. This has resulted in reduced competitive intensity and lessening of downward pressure on tariffs, RCom said.
Coal India will be watched after media reports suggested that five central trade unions represented by INTUC, BMS, HMS, AITUC and CITU have served a three-day strike notice from 23 September to 25 September 2013 against the government's plan to divest an additional 10% in Coal India and for not settling a host of some 25 other demands.
More From This Section
Union Bank of India will reportedly review lending rates within 10 days amid rising cost of fund and stress on margin. Union Bank of India chairman and managing director Debabrata Sarkar was quoted by media as saying on Monday, 19 August 2013, that overall margin is under pressure and the entire banking industry is facing it.
Axis Bank on Monday, 19 August 2013, increased its benchmark lending by 0.25% to 10.25%. The bank will not lend below this rate. The bank revised its base rate to 10.25% effective 19 August 2013. All categories of loans (other than exceptions permitted by RBI) will become costlier at least by 0.25%.
IT services firm Hexaware Technologies will be in focus after media reports suggested that Baring Private Equity Partners Asia is set to buy Hexaware in a deal estimated at about $400 million. Baring Asia is in advanced talks to acquire 42% stake held by promoter Atul Nishar family and private equity investor General Atlantic Partners. The acquirer would follow it up with the mandatory open offer for an additional 26% shares, pegging the size of the final deal between $350 and $400 million, the media report added.
Hathway Cable & Datacom said that its shareholders have approved issuing 52.75 lakh equity shares on preferential basis at Rs 284 each. As per the approval, the company will issue 14.05 lakh equity shares to Hathway Investment, which is part of the promoter group of the company. Furthermore, the company will issue 38.70 lakh equity shares to P6 Asia Holdings Investments IV (Mauritius).
FDC turns ex-dividend today, 20 August 2013, for final dividend of Rs 2.25 per share for the year ended 31 March 2013 (FY 2013).
Gujarat Apollo Industries turns ex-dividend today, 20 August 2013, for dividend of Rs 10 per share for the year ended 31 March 2013 (FY 2013).
Indraprastha Gas turns ex-dividend today, 20 August 2013, for dividend of Rs 5.50 per share for the year ended 31 March 2013 (FY 2013).
Powered by Capital Market - Live News