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Thursday, February 26, 2009

Stock Market News, Financial News - Feb 26, 2009

RIL restates accounts, profits down Rs 1,177 cr

By ENS Economic Bureau

Reliance Industries, India's most valued company, said its profit for seven quarters ended December 31, 2008, would have been lower by Rs 1,147 crores if it had followed the Accounting Standard 11 (AS11) as prescribed by the guidelines on 'effects of changes in foreign exchange rates' notified in the Companies Rules (accounting standards), 2006.

The oil and gas major's profit would have been lower by Rs 39 crore for the three months ended December 2008, following the practice, and by Rs 1,177 crore for nine months ended December 2008, the company said in a statement to the Bombay Stock Exchange (BSE). This follows a limited review of accounts for the quarter ended December 2008.  (More ... )

[Note: I had cautioned investors about investing in Reliance in a blog post on Jan 4, 2009: "Why rely on Reliance?"]

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Wider deficit to boost costs, capital outflows - Moody's

MUMBAI (Reuters) - India's wider fiscal deficit will boost funding costs and weaken investor confidence, leading to more capital outflows, Moody's Economy.com said on Wednesday, a day after the government unveiled a third stimulus package.

On Tuesday, India slashed factory gate duties and service tax to boost slowing growth, prompting Standard & Poor's to cut its outlook on the country's long-term sovereign credit rating to negative from stable.

"Although the tax cuts will inject much needed support into the economy, they may heighten concerns about the country's already large public debt," Sherman Chan, an economist at the Sydney-based office wrote.  (More ... )

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U.S. FDA says Ranbaxy plant falsified data

By Lisa Richwine

WASHINGTON (Reuters) - A plant owned by generic drugmaker Ranbaxy Laboratories falsified data and test results submitted in approved and pending drug applications, U.S. regulators said on Wednesday.

The Food and Drug Administration said it halted reviews of drug applications from Ranbaxy's Paonta Sahib plant in India.

Agency officials said they had not identified any health risks from Ranbaxy drugs on the market, but were continuing to investigate products associated with the plant. (More ... ) 

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Piramal Healthcare shares up on Sanofi buy report

MUMBAI (Reuters) - Shares in Piramal Healthcare Ltd rose over 15 percent on a newspaper report French drug maker Sanofi-Aventis has emerged as the front-runner to buy a substantial stake in the Indian firm at over 50 percent premium to its current price.

Sanofi-Aventis has completed due diligence and the deal could be closed soon, the Economic Times said, citing unnamed sources.

At 9.57 a.m., shares were up 14.75 percent at 205 rupees.

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Tata Motors and Ashok Leyland to cut prices

By Indian Express Finance

A day after the government announced a 2% cut in excise duty and service tax, leading commercial vehicle makers Tata Motors  and Ashok Leyland said, on Wednesday, the savings will be fully passed on to their customers.

Auto stocks went up in anticipation on Wednesday. The BSE Auto Index jumped 3%, closing at 2,622.38; Tata Motors was up 5.87% at Rs 139.85 and Ashok Leyland up 3.26% at Rs 15.50.

The government decision on Tuesday to extend a 4% Cenvat cut, announced in December, to beyond March 31, 2009, also helped the market sentiment. After the Cenvat cut, commercial vehicles (CVs) attracted a duty of 10%. The latest 2% cut is applicable solely to categories that attracted the 10% excise duty. (More ... )

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