Banking, realty and auto shares may see action after the Reserve Bank of India (RBI) slashed its two key short-term interest rates on Friday to stimulate an economy that has been slowing faster than expected. The RBI cut the repo rate, at which it lends cash to banks, to 5.5% from 6.5%. The reverse repo rate, the rate at which the central bank absorbs excess cash from the system, was cut to to 4% percent from 5%. Both reductions are effective immediately.
The management of Satyam Computer Services and some of its institutional investors are reportedly exploring a merger with another software firm and is in talks with HCL Technologies and Mindtree. Meanwhile, the stake owned in founders of Satyam Computer Services by SRSR Holdings, which was floated by founders, has fallen by a third to just 5.13% from 8.27% in November 2008, the company said on Friday (2 January 2009).
Bharat Heavy Electronics (Bhel) will reportedly sign joint venture pact with UK's Sheffield to make forging equipment.
Reliance Communication on 4 January 2009 launched GSM-led mobile services in Mumbai and offered free talk-time worth Rs 900 spread over three months. The new GSM SIM cards would be available for Rs 25 with a validity of six months. The company is reportedly working out various other pre-paid tariff plans and would announce during the next three months.
Larsen & Toubro (L&T) has reportedly raised Rs 400 crore by selling 10-year bonds at 9.15%. The Rs 200 crore bond issue had a greenshoe option and the company decided to retain oversubscription of a further Rs 200 crore.On 30 December 2008, L&T had invited bids for the bonds and the banker to the issue had said the coupon would be priced in a 9% - 9.25% band, payable annually.
State Bank of India is reportedly reviewing plans to open branches in Lahore and Karachi in the wake of the present tensions with Pakistan. However, the bank is not scrapping its Pakistan plans.
The union government is reportedly working on a Rs 30000 crore bailout package for state-run oil refiners to compensate for the losses incurred on fuel sales at government-controlled prices.
Aditya Birla Group said on Friday (2 January 2009) cement dispatches in December 2008 rose 13.4% from a year ago to 2.98 million tonnes. Production for the month rose 14.9% to 2.93 million tonnes. The group's cement business includes flagship Grasim Industries and unit UltraTech Cement, with combined production capacity of 35 million tonnes a year.
Sona Koyo Steering Systems is reported to be in talks with private equity investors for raising close to $100 million to part-finance some expansion and acquisition plans.
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