Month: March 2010

L&T Samakhiali Gandhidham Tollway, a Special Purpose Vehicle (SPV) incorporated by Larsen & Toubro (L&T) has entered into a concession agreement with National Highways Authority of India (NHAI) for six laning of the 56 km stretch of NH-8A.

The project will be executed on a BOT Design Build Finance and Operate (DBFO) basis, with a concession period of 24 years. The estimated cost of project is about Rs 1,400 crore and is scheduled to be completed within a period of 30 months. The concessionaire is

Bharti Airtel, the country’s largest telecom operator by revenue, is looking to mop up $8.5 billion worth of offshore loan to fund the acquisition of Zain’s African mobile operations, as mentioned in some media reports.

The report further added that the telecom major has also issued a term sheet to lenders for the same. The offshore facility is likely to consist of four phases and it will be for a period six years.

The benchmark indices pared early losses and shut shop on a flat note on Monday. The markets were trading deep in the red during the initial hour of trade on apprehensions of a double-digit inflation figure. But the indices remained quiet for a while after the inflation data was announced, which stood at 9.89% for February against 8.56% in January. The rate hikes during RBI’s upcoming monetary policy review in April is almost certain, albeit the magnitude of such a hike remains a subject for debate.

Industrial production rose 16.7% yoy, higher than our expectations, but broadly in line with consensus. Growth, which initially started picking up in Jun 09, gathered momentum post August and has averaged 12.7% since then v/s 1.9% in the same period last year. On a fiscal year basis (Apr-Jan), growth was 9.6% v/s 3.3% in the same period last year.

The strong numbers are reflective of (1) the base effect (2) the impact of the stimulus measures and (3) the economy

Investors remain worried about shifting macro risks in India, despite the majority of actual economic outcomes being better than expectations. Indian policymakers have done a good job of cushioning the economy from the global credit crisis and positioning it for a strong rebound.

Investors continue to generally misinterpret the broader policy framework and the likely course of policy moves in India.