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Fundamentals March 28, 2013


Nik's Diary
The Indian market opened on a negative note following weak start to SGX Nifty and major Asian Indices amid concerns of the deepening Europe’s debt crisis and after decline in pending US home sales which are expected to dampen earnings prospects for Asian exporters. The US markets staged a significant recovery over the course of the trading day on Wednesday, after coming under pressure in early trading. The early weakness on Wall Street was partly due to profit taking, as some traders cashed on the recent strength witnessed in the markets. Most of the European bourses finished the trading session on Wednesday in the negative territory. The situation in Cyprus continues to weigh on investor sentiment and political developments in Italy added further pressure. In Italy, the political situation has become uncertain, after Pier Luigi Bersani has announced that he will not attempt to put together a coalition government. Meanwhile, Indian markets remained closed on Wednesday on account of holiday for Holi. The Indian markets witnessed a bout of volatility on Tuesday, however ended modestly higher. The choppiness was partly due to the F&O expiry slated for today. 

TCS wins contract from UK-based Southern Water
IT major Tata Consultancy Services (TCS) today said it has been selected by the UK-based water utilities company Southern Water to implement a customer services and revenue transformation programme. "TCS has been selected by Southern Water to implement a customer services and revenue transformation programme. The programme will combine front and back-end technology deployments with internal process redevelopment," it said in a release. The company, however, did not disclose the details of the deal signed with the water services provider. Southern Water will benefit from enhanced customer service capabilities, improved cash collection and debt management and will see a reduction in operating expenditure, it added. "Southern Water supplies water across some 4,450 sq km, and TCS has provided us with a roadmap for more flexible and efficient service delivery within this extensive area," Southern Water Chief Customer Officer Darren Bentham said. The company's supply area extends from East Kent in the east, through parts of Sussex, to Hampshire and the Isle of Wight in the west. "The CRM system we're deploying for Southern Water will help in the drive to provide industry-leading customer services, while data governance and analysis tools deliver better intelligence back into the business," TCS President Business Group (Telecom, HiTech, Media&IS, Utilities) A S Lakshminarayanan said. An increase in operational efficiency and updated billing system will enable Southern Water to improve its revenue management, he added. Souther Water supplies 551 million litres of drinking water daily from its 94 treatment plants. Source: Economic times

Lupin launches Diovan HCT in US
Lupin achieves an important milestone with the launch of Valsartan and Hydrochlorothiazide Tablets, the generic version of Novartis' hypertension drug Diovan HCT in the US. The launch marks yet another limited competition foray in the US generics market for the fourth largest pharma company in India. The market for Diovan HCT stands at $ 1.7 billion currently with two generic players. With Lupin having already started shipping the product, it will be help it in garnering market share for itself in a limited competition scenario. Lupin's stock has hit a 52-week high of Rs 638.65 on BSE today following the news of the launch. The stock has gained 25% in the last one year - and has been one of the best performing stocks among the frontline pharma companies. The company has had a strong growth in its revenues in the last four quarters and also posted improvement in its operating profit margins during this period. Source: Economic times

Tech Mahindra extends merger with Satyam
Shares of Tech Mahindra Ltd on Tuesday fell by as much as 3% in the morning trade following delay in the proposed merger of Mahindra Satyam with itself by six months. The shares later recovered to close down 0.75% at Rs.1,038 in Mumbai, while the Sensex gained 0.12% to close at 18,704.53 points. At the National Stock Exchange (NSE), the stock went down by 2.92% to Rs.1,015.25. Similarly, shares of Mahindra Satyam (Satyam Computer Services Ltd) also fell by 2.81% to Rs.121.90. Tech Mahindra had on Monday said it has extended the proposed merger of Mahindra Satyam with itself for six months. “Board of directors extended the validity of the (amalgamation) scheme by a further period of six months i.e. up to 30 September 2013,” the company had said in a BSE filing. The board has extended “scheme of amalgamation and arrangement of Venturbay Consultants Pvt Ltd and Satyam Computer Services Ltd and C&S Systems Technologies Pvt Ltd and Mahindra Logisoft Business Solutions Ltd and CanvasM Technologies Ltd with Tech Mahindra Ltd and their respective shareholders and creditors”, it had said. Tech Mahindra took over reins of the scam-tainted Satyam Computer in April 2009 and rebranded it as Mahindra Satyam. Source: livemint




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