Downtrend in market
Mumbai: The stock market showed signs of a retreat. Equities went on a sharp downturn as a result of a lack of institutional support. The 30-scrip benchmark Sensex of the Bombay Stock Exchange shed 56.66 points to close at 4672.15.

Bank shares, including those of the State Bank of India, Bank of India and HDFC Bank, turned weak after a day's surge on 22 July as rumours of a cut in the bank rate or cash reserve ratio by the Reserve Bank proved to be wrong.

Major infotech scrips gained, especially Satyam Computers and Pentafour Software, mainly on speculative support. Infosys Technologies, however, continued its fall propelled by weakness in its ADR on the Nasdaq. The scrip has plummeted nearly Rs 1,400, or about 25 per cent, in the last four days.

Select second-line shares like United Phosphorus, Excel Industries, Supreme Industries, Wartsila Diesel and IPCL exhibited some firmness. The IPCL scrip hit the upper band at Rs 127.10 on big investment buying.
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New listing norms for telecom, IT, media companies
Mumbai: Unlisted companies in the telecom, media and information technology sector may be allowed to float limited initial public offers. This is a move to stop companies in these sectors from seeking listings on international exchanges.

A recommendation to this effect has been made by the primary markets advisory committee of the Securities and Exchange Board of India. The committee has also suggested that the minimum offering that firms can make to the public should be relaxed from 25 per cent to 10 per cent of the paid-up equity capital in the case of well established but unlisted telecom, IT and media companies with a size of about Rs 300 crore. At present, the rules specify a minimum 25 per cent offer to the public.
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Half-yearly results may have to be audited
Mumbai: The Securities and Exchange Board of India and the Institute of Chartered Accountants of India are working on the feasibility of introducing a new norm requiring audits of half-yearly results published by listed companies.

The institute is preparing a guidance note in this regard, S.P. Chhajed, its president, said. The objective is to limit the variance between half-yearly results and final annual figures.
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Hindustan Lever may announce interim dividend
Mumbai: Hindustan Lever is considering an interim dividend when it finalises the second quarter results on 26 July.

Analysts say better economic conditions and more efficient operations are likely to boost the second quarter profits of the company by 25 to 30 per cent.
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Mahindra IT co to seek US listing
Mumbai: The newly-formed Mahindra Information Technology Services is likely to go public next year. The Mahindra & Mahindra group is planning to seek a listing for the company on one of the US bourses. The company is acting as a holding company for the group's software businesses.

The group feels that the listing would fetch better valuation, since the company is a holding company.
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Nasscom plans rating agency
Mumbai: The National Association of Software and Service Companies is considering promoting a new rating agency for software firms. It is also open to the idea of partnering with an existing rating agency for creating a new rating system for software companies.

This is part of Nasscom's strategy to curb the growth of unscrupulous promoters adding infotech tags to their company names as well as low quality IT initial public offers.

Dewang Mehta, president of Nasscom, said the initiative is similar to Icra's partnership with the Construction Industry Development Council dedicated to rating property developers.
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IDFC given highest rating
Mumbai: The Infrastructure Development Finance Company has been awarded the highest safety rating (LAAA) by Icra for its Rs 500-crore non-convertible debenture issue. This is the first rating obtained by the company.

Icra says the company has strong sovereign support while being structured to function independently on a commercial basis.

IDFC was created by the government of India in January 1997 as a specialised intermediary for evolving a policy framework and thereby lead capital flows into the infrastructure sector.
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Supreme Court directive in plantation companies' cases
New Delhi: The Supreme Court has stayed proceedings against plantation-based financing companies in all the high courts except those in Delhi and Bombay on a petition moved by the Securities and Exchange Board of India.

Sebi had moved the Bombay high court against various schemes offered by plantation companies, which it thought were not in the public interest. Several investors had moved the Delhi and Madras high courts against the companies. Cases have been filed in other courts too.

Sebi wants the cases to be transferred to the Supreme Court so that all issues could be disposed of at one go. The Supreme Court, however, has not allowed the plea and let the Delhi high court go ahead with the hearing speedily.
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