DRL to go in for stock split
Hyderabad--Dr Reddy's Laboratories is going in for a stock split and the board of directors is scheduled to meet on July 31 to take a decision on this along with the adoption of unaudited financial results for the quarter ended June 2001. The board will also consider the issue of shares under the employees stock options scheme.
A senior official of Dr Reddy's said the idea of going for stock-split is to align the equity shares listed on the Indian stock exchanges with the American depositary shares (ADS) of the company as each of the latter represents one-half equity share. Going by this, it is likely that the face value of the company's equity shares with a current face value of Rs 10 will be split into two.
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Sensex up 37 points on back of Infy
Mumbai-- The assurance given by the finance ministry’s (MoF) to give some relief for small investors of US-64 during this weekend itself and excellent quarter one result by Infosys Technologies helped the benchmark indices to end the day with handsome gains.
Select old economy heavyweights rallied smartly aiding the Sensex to score a gain of about 37 points at close in lacklustre activity on the BSE on fresh buying support from operators.
The Sensex opened slightly better at 3300.98 and rallied smartly to the intra-day high of 3340.88 before closing at 3328.27 against Monday’s close of 3290.81 — a gain of 37.46 points. S&P CNX Nifty gained 12.55 points to close at 1072.05 points.
Volume remained low but relatively up at Rs 727.16 crore from Monday’s turnover of Rs 452.65 crore.
Infosys was the most active stock followed by Wipro, Digital Equipment, Satyam Computer and RIL.
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ICICI-BoB in rate swap deal
Mumbai--ICICI has executed a five-year interest rate swap for Rs 25 crore with Bank of Baroda. This is the first long-term IRS deal, which has a public sector bank as counter-party.
Earlier this year, ICICI entered into long-term swap deals with Citibank, HSBC and Deutsche Bank.
IRS deals provide banks the opportunity to hedge against interest rate risk. They can also swap longer-term liability for short-term assets and gain if there is an upward swing in interest rates.
In the ICICI-BoB deal, the swap’s floating rate is linked to the one-year government bond yield and the fixed rate to the five-year government bond yield on the Reuters benchmark government bonds yield curve.
On Monday evening, the one-year benchmark yield was 7.619/7.592 per cent, and the fiveyear bond yield was 8.053/8.041 per cent.
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Wall St crushed on profit warnings-Indian ADRs end strong
New York--A crushing warning by Corning, the leading fibre optic company, led to the Wall Street to end at lows untouched since mid-April. While the Nasdaq tanked 64 points (3.2%) to 1962.79, Dow declined 123.76 points (1.2%)to 10,175.64.
Indian IT ADRs ended on a strong note. Infy vaulted 5.31% ($3.02) to $59.91. Wipro gained 2.43% ($0.6) to $25.29. Satyam added 2.52% ($0.21) to 8.55.
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UTI under ED probe
Mumbai--The Enforcement Directorate (ED), has extended its probe to include UTI operations as well. ED has been probing the accounts and trading patterns of top brokers of the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Though ED officials were not forthcoming on the contents of the summons issued to UTI, sources said that certain investment decisions of the Trust were being looked into although there was no evidence of any wrongdoing at present.
The directorate is compiling and collating data in tandem with other investigative agencies probing the recent stock market crisis. The agency has been trying to find out whether there has been any violation of foreign exchange regulations, including money laundering.
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US-64 to be revamped
Mumbai--UTI wants to revamp flagship scheme US-64 and has constituted a consultative group to help in this.
The consultative group consists of eminent chartered accountant YH Malegam, former National Stock Exchange managing director RH Patil and non-executive vice-chairman of Tata Sons Ltd, NA Soonawala. Rajendra P Chitale, a trustee on the UTI board, is to join the group as a special invitee.
The group has already commenced its deliberations and is expected to submit its recommendations to the UTI board in a couple of days, a UTI release said today.
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Major reshuffle at UTI
Mumbai—A major reshuffle—the first on this scale--in ranks is underway at Unit Trust of India. Around 750-odd personnel have been transferred from the various departments.
UTI executive director BG Daga, however, said that these were part of the annual transfers in the organisation and had no relevance to current issues. Sources said that some of the transfers could be routine but there have been shake-ups in a number of key departments. For instance, about a dozen people from the investments department, which handles primary issues and private placements, have been shuffled out and have been posted in unrelated areas such as marketing, technology centres and in far-flung branches. The replacements have also been drawn from areas unrelated to investments.
In fact, almost all the key people in the department were transferred around May, when the Trust was facing tremendous redemption pressure on US-64 as well as other schemes.
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