The Tribune, Chandigarh, India

	N Korea compounds market troubles Sensex sinks 16K intraday; global markets shocked too Mumbai, May 25 The BSE benchmark Sensex tanked 447 points to close the day at a three-month-low level on panic selling by funds, mirroring weak world markets, which were spooked by reports of a bank failure in Spain. The BSE 30-share index dropped 509.40 points in intra-day to trade below the 16,000-level. It finally settled the day at 16,022.48, down 447.02 points, or 2.71 per cent. The last time it closed at this level was on February 15. The NSE's 50-share Nifty index also plunged 2.78 per cent to close at 4.806.75 points. Analysts said Spain's move to take over an ailing savings bank CajaSur gave rise to fresh concerns over the Eurozone debt crisis and triggred a fall in world stocks. "Spain's move to nationalise CajaSur and tension between South and North Korea have further weakened investor sentiment and the correction in market is likely to continue for coming sessions," CNI Research CMD Kishore P Ostwal said. All major indices globally were in the red. Asian bourses settled the day lower in the range of 2-3.7 per cent. Europe was trading in deep red, with Britain's FTSE 100 sinking nearly three per cent. Overnight, US indices also ended lower, with S&P 500 dropping 1.29 per cent. "In domestic market, investors are already cautious ahead of Thursday's derivative settlement and in this situation any bad news from global markets can drag the indices," Ashika Stock Brokers Research Head Paras Bothra said. Reliance Industries, which holds the maximum weight among Sensex scrips, lost 3.39 per cent to close at Rs 986.85. In BSE-30, only Cipla managed to settle in green, whereas rest 29 ended in negative territory. Reliance Communications fell 6.32 per cent, the biggest loser in the Sensex constituents. L&T retreated 4.28 per cent and Infosys 2.44 per cent. All 13 sectoral indices of the BSE settled lower in the range of 1-5 per cent. Metal, consumer durables (CD), consumer goods, bankex and oil & gas led the fall. Brokers said overseas institutional investors are selling shares persistently that had led the benchmark index to fall 9 per cent so far this year. In May only, FIIs sold shares worth Rs 7,606 crore. Other loser in Sensex components include SBI at 3.94 per cent, ICICI Bank 2.72 per cent, HDFC 2.11 per cent and ITC 2.80 per cent. Among metals, Hindalco sank 5.43 per cent, Tata Steel by 4.45 per cent and Sterlite Industries 4.49 per cent. — PTI
	Gold all-time high at Rs 18,660 New Delhi: Gold prices soared to an all-time high of Rs 18,660 per 10 grams in the national capital today on aggressive buying by stockists and jewellers for the ongoing marriage season amid a firming global trend. Prices of the precious metal zoomed by Rs 260 to Rs 18,660 and ornaments by a similar margin to Rs 18,510 per 10 grams. Sovereigns also rose by Rs 75 to Rs 14,525 per piece of 8 grams. The current surge surpassed the previous record set on December 3 last year. The trading sentiment turned bullish after gold climbed in New York as a weaker euro revived demand for a safe haven to park funds. Last week’s decline in gold prices to the lowest level in more than two weeks boosted the investment appeal of the precious metal. Shifting of funds from melting equity markets to rising bullion for quick gains further fuelled the uptrend, they said. The BSE benchmark Sensex plunged to near a three-month low on account of the eurozone crisis. The global factors coincide with a boom in all-round buying by jewellers and retailers in domestic markets for the ongoing marriage season. The price of gold in overseas markets, which normally sets the trend on the domestic front, recorded handsome gains of $ 15.30 to $ 1,192.30 an ounce in New York last evening. — PTI
	Re dips 72 paise Mumbai: The rupee today plunged to a nearly 8-month low of 47.70/71 against the dollar on strong demand for the US currency amid worries of huge capital outflows following a fall in global stock markets. At the Forex market, the rupee closed 72 paise lower at 47.70/71, the weakest level since October 1, 2009, when it was finished at 47.74/75. In the straight five sessions, the rupee had crashed by 2.11 paise, or 4.63 per cent. Dealers said firm dollar overseas and good dollar demand from banks and importers weighed on the rupee. Dollar was stronger against a basket currencies today. aThe euro hit an eight-and-a-half years low against the yen and neared a four-year low versus the dollar. — PTI
	Marico acquires skincare biz in Singapore Mumbai, May 25 Marico today announced the acquisition of the aesthetics business of Singapore-based Derma Rx Asia Pacific (Derma Rx) through its wholly-owned subsidiary Kaya Limited. This acquisition provides Kaya access to an advanced range of skincare products and a strong sourcing network, including suppliers of products from developed nations, a press note issued here stated. Marico, however, did not mention the acquisition amount. "With this acquisition, nearly 45 per cent of our skincare solutions revenue will come from overseas," Marico's chief of Finance HR & Strategy Milind Sarwate said. The deal envisages the acquisition by Derma Rx International Aesthetics, a wholly-owned subsidiary of Kaya Limited, of the IPRs relating to DermaRx's business and the shares in wholly-owned subsidiaries of Derma Rx Asia Pacific Pte Ltd. Derma Rx operates three centres in Singapore and one in Kuala Lumpur and has a customer-base of about 37,000, generating a turnover of about Rs 50-crore. Marico also plans to introduce Derma Rx products at its Kaya clinics across the country and the Middle East, the note said. "This will enable Kaya to increase its share of revenue from sale of products, from the current level of about 13 per cent to over 20 per cent," it said. Derma Rx's founders Dr S K Tan and Janifer Yeo will continue to remain engaged in the business for the next three years, to facilitate the transition and provide Kaya the know-how and their expertise in aesthetic solutions in a relatively more evolved market, the release said. — PTI
	BoB to pay 150 pc Mumbai, May 25 Bank of Baroda today said its consolidated net profit rose by 33.35 per cent to Rs 3,179 crore for the year ended March 31, 2010, over the same period last year. The board has proposed a dividend of Rs 15 per share on the face value of Rs 10 each to the shareholders of the company. South Indian Bank Kerala-based South Indian Bank today approved a proposal to split its stock by 1:10. Currently the bank has an equity base of Rs 113.01 crore with 11.30 crore shares which will go up to 113 crore shares after the split. Currently, its stock has a face value Rs 10, which will be split into 10 shares of Re 1 each. The bank reported a net profit of Rs 233.76 crore for fiscal 2009-10 which was the highest in its 81-year history and recommended a dividend of Rs 4 per share for the year against Rs 3 in the previous year. StanChart fares badly Standard Chartered Plc's Rs 2,760-crore public offer of Indian depository receipts got subscribed just 5 per cent on the opening day of the issue today. At the end of the first day, the issue got a total bids for 1.1 crore receipts against 20.4 crore receipts on offer for public subscription, thereby getting subscribed 0.05 times, according to the data available with the NSE. — PTI
	Corporate Results NHPC, HUL log jump in profits New Delhi, May 25 NHPC today reported a 83.6 per cent jump in consolidated net profit at Rs 2,175.56 crore for the financial year 2009-10, compared to the previous fiscal. The company's net profit was Rs 1,184.89 crore in 2008-09. Consolidated net sales of the company increased to Rs 5,114.26 crore in 2009-10 from Rs 3,427.77 crore in 2008-09, NHPC said. The firm has declared a dividend of 55 paise on each share. HUL Driven by a good show in the personal products segment, Hindustan Unilever today reported a 47.14 per cent increase in the net profit at Rs 581.20 crore for the quarter ended March 31, 2010. The company's board has recommended a final dividend of Rs 3.50 per share for the financial year ended March 31, 2010. GMR Infra GMR Infrastructure today posted a growth of 37 per cent in the consolidated net profit to Rs 73 crore for the fourth quarter ended March, 2010, over the same period last fiscal. The company had reported a consolidated net profit of Rs 53.24 crore in the same quarter a year earlier, GMR Infra said. Nagarjuna Cons Nagarjuna Construction Company today said its net profit jumped nearly three-folds to Rs 102.61 crore for the fourth quarter ended March 31, over the same period last year. The total income rose to Rs 1,522.71 crore in the January-March quarter from Rs 1,098 crore in the same period previous fiscal, Nagarjuna Construction said. The board has proposed a dividend of Rs 1.30 per share for the year ended 2009-10. JK Tyre JK Tyre has reported sales and other income at an all-time high of Rs 3,971 crore and profit after tax for the year 2009-10 at Rs 163 crore. The company has raised the dividend per share to Rs 3.50 paisa. Tata Power Tata Power Company today reported an over 34 per cent drop in its standalone PAT at Rs 230.69 crore in the March quarter, against Rs 354.61 crore in the year-ago period on account of a much lower extraordinary income of Rs 20 crore against Rs 255.78 crore. — PTI, TNS
	ONGC scouts partner for K-G gas block New Delhi, May 25 The ONGC is in talks with energy majors BP Plc, Exxon Mobil, BG Group, Eni and BHP Biliton for a strategic tie-up for its Krishna Godavari basin gas block. "We are looking at exploration firms with expertise to produce from deep-sea. We have opened our KG basin block data to global companies and have sought firm offer by May 31," ONGC director (Exploration) Dinesh Pande said here. The ONGC is looking for a partner after Norway's Statoil and Petrobras of Brazil decided to quit the block KG-DWN-98/2 due to government delays in approving their participation in the deep-sea acreage. The block now has 10 gas discoveries and the ONGC plans to tie-up these with six gas finds in neighbouring 1G block to begin production in next 3-4 years. Pande said KG-DWN-98/2 was awarded under the New Exploration Licensing Policy and the policy allowed it to farm out a participating interest (equity stake) to foreign firms. But since Block 1G was given to it on nomination basis, it could not sell stake to any firm. The ONGC could at best involve a foreign firm as a service contractor. "The companies have to decide if they are comfortable with taking stake in one block and being a service contractor in the other," he said. BP, Exxon, BG and Eni have already seen the data of the prospects the ONGC has discovered in the KG-DWN-98/2, that sits next to Reliance Industries' prolific KG-DWN-98/3 or KG-D6 block, and 1G block in Bay of Bengal. BHP has also shown interest but it has not seen the data as yet. The ONGC has 65 per cent interest in KG-DWN-98/2 that has been assessed to hold 14 trillion cubic feet of gas reserves. It has 100 per cent stake in 1G. The company plans to tie up discoveries in the two blocks to produce 25-30 million standard cubic meters a day by 2015. Petroleo Brasileiro SA or Petrobras, Brazil's state-controlled oil firm, has offered ONGC its 15 per cent interest in KG-DWN-98/2 without any cost. Similarly, Statoil has decided against participating in future drilling in the acreage off the Andhra coast. This follows apparent unwillingness of the Oil Ministry and its technical wing DGH to accord approvals for equity participation by foreign companies and the inordinate delays in clearing the drilling programmes. — PTI
	Aurobindo chicken pox drug gets US nod Mumbai, May 25 Aurobindo Pharma today said it had received the nod from the US health regulator to manufacture and market its Valacyclovir Hydrochloride tablets, used for the treatment of chicken pox. The company has received the US Food and Drug Administration (FDA) approval to market Valacyclovir Hydrochloride tablets, used to treat cold sores, genital herpes and chicken pox, Aurobindo Pharma said. Cadila gets Rs 47 cr from Abbott Zydus Cadila today said it had received a milestone payment of $ 10 million (nearly Rs 47.36 crore) from US-drug maker Abbott under a licensing and supply agreement signed earlier this month for 24 products to be sold in 15 emerging markets. At the time of signing the agreement, the two partners had not disclosed the financials involved. The deal also included an option of adding more than 40 products from the Indian drug firm. — PTI
	Singapore firm, Gayatri Energy tie up Tribune News Service Hyderabad, May 25 In a major flow of foreign direct investment (FDI) in the power sector, Singapore-based energy and water company Sembcorp Industries today inked an agreement with a domestic firm for a joint venture to set up a 1,320 MW power plant in Andhra Pradesh with an investment of Rs 6,869 crore. Sembcorp Utilities, a wholly-owned subsidiary of Sembcorp, signed the agreement with Gayatri Energy Ventures, a subsidiary of Gayatri Projects in the presence of Union Power Minister Sushil Kumar Shinde and state Chief Minister K Rosaiah. The two companies together will set up supercritical technology-based thermal plant at Krishnapatnam in the coastal district of Nellore. The Managing Director of Gayatri Projects TV Sandeep Reddy said the first phase of 1,320 MW would be completed in 40 months while the work for the second phase of another 1,320 MW would begin within one year. The financial closure for the project is expected to be completed by mid-June. While Rs.5,151 crore of the project cost will be raised through debts, the remaining Rs.1718 crore will be in the form of equity. The project will be executed through a special purpose vehicle, Thermal Powertech Corporation India Limited. “This is the first case of FDI since I took over as the Power Minister four-and-half years ago. Though the Electricity Act of 2003 allows 100 per cent FDI, there was not much response from foreign investors so far. This is the first successful case,” Shinde said on the occasion. This is Sembcorp's first foray into the power sector in India. Its executive vice-president Tan Cheng Guan signed the agreement with Reddy. Meanwhile, Shinde said his ministry was on course to achieve the 12th plan target of 78,700 MW of power production. Enhancing the capacity of BHEL and setting up four more factories on the lines of BHEL were among the steps taken to achieve the target.