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Fundamentals April 10, 2013


Nik's Diary
The Indian markets opened in the green mirroring a positive opening in SGX Nifty, which is trading higher by 0.4%. Asian markets are trading mixed with the Hang Seng, Nikkei and Seoul Composite higher by 0.4% to 0.7%, while the Strait Times and Jakarta Composite are lower by 0.2% each. The US markets, after remaining directionless in early trade, rose higher during the course of the day, yesterday. The positive performance of the markets was partly due to tame inflation reported by China, which eased concerns that the People's Bank of China might tighten its monetary policy. US markets didn’t react much to the report released by commerce department which indicated that wholesale inventories unexpectedly dipped by 0.3% in February, although wholesale sales jumped 1.7%. The European markets ended Tuesday's trading session with mixed results after trading positively in the opening trade. Meanwhile, Indian markets posted losses for the fifth consecutive trading session in a row. The weakness in the markets was on account of concerns about both the domestic economic scenario as well as the uncertain political environment. 

TCS to acquire French IT services firm ALTI for €75mn
Tata Consultancy Services (TCS), on Tuesday, announced that it had signed definitive agreements to acquire 100 per cent equity in Alti SA, an IT services company in France. The deal, valued at 75 million euro (around Rs.530 crore), is an all-cash transaction, TCS said in a statement. The deal is subject to customary closing conditions. Alti SA has strong expertise in IT Services, including enterprise solutions, assurance and CRM solutions. It is privately held, and owned by its management and two private equity funds, CM-CIC LBO Partners and IDI. It reported revenues of 126 million euro in 2012, and its customers include top French corporations in the banking, financial services, luxury, manufacturing and utilities sectors. Alti has 1,200 employees based in France, Belgium and Switzerland. “This acquisition underlines our long-term, strategic commitment to France, which is the third largest IT services market in Europe,” N. Chandrasekaran, Chief Executive Officer and Managing Director, TCS, said in a statement. The France IT services market is estimated at 30 billion euro. TCS has been operating there since 1992. It has over 50 clients in France and has significantly strengthened its position there. “The acquisition of Alti SA will help us serve our clients in France and across Europe more comprehensively with an expanded set of services and solutions, bringing the best of TCS to French corporations,” Mr. Chandrasekaran said. “This is a significant step that will benefit both our clients and employees,” Andre Bensimon, co-founder of Alti SA, said in a statement. Source: thehindu

Cairn India makes an oil discovery
Cairn India, on Tuesday, announced that it had made the 26th oil discovery in its Rajasthan block. The block management committee had approved the exploration work programme for the RJ-ON-90/1 block on February 14 after which Cairn India commenced drilling of its first exploration well, Raageshwari-South-1, on February 25 located in the southern part of the block. “Technical evaluations indicate about 10 metres of gross oil column within Dharvi Dungar formation. Oil has been discovered and tested for the first time in Dharvi Dungar sands in Raageshwari-Tukaram area, where previous discoveries were in the shallower Thumbli sands,” it said. The volumes of oil in place and the potential resource base associated with this discovery are under evaluation. Cairn India CEO P. Elango said the discovery in the block reaffirmed the company’s belief that an aggressive exploration drilling programme would help harness the full potential of the Barmer basin in Rajasthan. “This is a step closer towards reserve accretion through exploration-led growth,” he added. Source: the hindu




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