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Infosys Technologies, India’s second largest IT services company has taken over the British Consultancy Axon Group Plc for well over 407 million pounds($753 million) or roughly Rs 3000 crores. Its being touted as the largest acquisition in Indian IT space. It would be an all cash deal valuing Axon at 6 pounds per share which is 19.4% premium over the last Fridays closing price of Axon which is listed in LSE.

The deal announcement was made in a press conference on 25th Aug,2008 by CEO Mr.Kris Gopalakrishnan. The current market cap of the Axon group is about $600 million. The deal value includes any interim dividend Axon group may announce when its results come out on 26th Aug,2008.

Its a good deal considering Infy was sitting on a cash pile of Rs 7000 crores which was not generating any returns for the company. Infosys also wanted to enter Europe in a big way and they did the same with this acquisition.Axon is basically a SAP consultant which will further give a boost to the company.

Meanwhile Axon will also get delisted from the LSE in the coming days and the deal may be completed by the end of Nov 2008. The Infy ADR was down by over 2% in yesterdays trade in the US markets. The Infosys stocks may be beaten down in the Indian markets too today. The IT space which is facing a tough time in the US currently want to expand in Europe, middle east, South east Asia, China and Japan. Considering this, it is a very good move to acquire a company based in Europe.Axon has client tele in US, China, Europe etc.

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As reported here yesterday, the inflation figures were out for the week ending Aug 8th and now it stands at whooping 12.63% as against 12.44% for the previous week.The inflation figures stood at 4.24% in the corresponding week last year. So it is slowly inching towards the psychological 13% mark as being predicted by the RBI. It was mainly due to rising prices of food items like milk,fruits and vegetables.

Even before the figures came out the markets had already shed about 435 points or 2.96% from its previous close at 14,273 levels. The national stock exchange, nifty lost 132 points to close at 4284 levels.The Asian markets were also trading very weak yesterday on export worries. Nikkei-225 was down by 0.77%,strait times down by 1.39% and Hang Seng was down by about 2.58%.

The banking stocks were beaten badly with SBI,ICICI,HDFC Bank,Kotak and Axis being the major losers. The trading volume remained high is stocks like  Reliance capital,Vishal Information,RIL,RNRL,SBI. Meanwhile the partial rupee also ended at 42.51/52 levels ,a rose of about 20 paisa from its previous close of 42.72 levels against a dollar.

There are some news of state run NHPC IPO which is coming with 167 crore equity shares,the largest in the history to hit the markets on October 13. It would raise about Rs 1,670 crores. And would list on Nov 6th,2008. And TATA Motors is considering an option of selling group company stocks to raise another 3000 crores to fund its various acquisitions. Meanwhile the US markets closed flat yesterday and the Asian markets are also trading weak, so we can expect another volatile and a weak session today in the markets.

Some intra day trading tips for today: EIH(cmp 140), Sterlite Industries(cmp 601), Cairn(cmp 243), Vishal Information(cmp 305),Phoenix mills(cmp 168),Hindustan Zinc(cmp 568).

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As reported here yesterday, the inflation figures were out for the week ending Aug 8th and now it stands at whooping 12.63% as against 12.44% for the previous week.The inflation figures stood at 4.24% in the corresponding week last year. So it is slowly inching towards the psychological 13% mark as being predicted by the RBI. It was mainly due to rising prices of food items like milk,fruits and vegetables.

Even before the figures came out the markets had already shed about 435 points or 2.96% from its previous close at 14,273 levels. The national stock exchange, nifty lost 132 points to close at 4284 levels.The Asian markets were also trading very weak yesterday on export worries. Nikkei-225 was down by 0.77%,strait times down by 1.39% and Hang Seng was down by about 2.58%.

The banking stocks were beaten badly with SBI,ICICI,HDFC Bank,Kotak and Axis being the major losers. The trading volume remained high is stocks like  Reliance capital,Vishal Information,RIL,RNRL,SBI. Meanwhile the partial rupee also ended at 42.51/52 levels ,a rose of about 20 paisa from its previous close of 42.72 levels against a dollar.

There are some news of state run NHPC IPO which is coming with 167 crore equity shares,the largest in the history to hit the markets on October 13. It would raise about Rs 1,670 crores. And would list on Nov 6th,2008. And TATA Motors is considering an option of selling group company stocks to raise another 3000 crores to fund its various acquisitions. Meanwhile the US markets closed flat yesterday and the Asian markets are also trading weak, so we can expect another volatile and a weak session today in the markets.

Some intra day trading tips for today: EIH(cmp 140), Sterlite Industries(cmp 601), Cairn(cmp 243), Vishal Information(cmp 305),Phoenix mills(cmp 168),Hindustan Zinc(cmp 568).

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As reported here yesterday, the inflation figures were out for the week ending Aug 8th and now it stands at whooping 12.63% as against 12.44% for the previous week.The inflation figures stood at 4.24% in the corresponding week last year. So it is slowly inching towards the psychological 13% mark as being predicted by the RBI. It was mainly due to rising prices of food items like milk,fruits and vegetables.

Even before the figures came out the markets had already shed about 435 points or 2.96% from its previous close at 14,273 levels. The national stock exchange, nifty lost 132 points to close at 4284 levels.The Asian markets were also trading very weak yesterday on export worries. Nikkei-225 was down by 0.77%,strait times down by 1.39% and Hang Seng was down by about 2.58%.

The banking stocks were beaten badly with SBI,ICICI,HDFC Bank,Kotak and Axis being the major losers. The trading volume remained high is stocks like  Reliance capital,Vishal Information,RIL,RNRL,SBI. Meanwhile the partial rupee also ended at 42.51/52 levels ,a rose of about 20 paisa from its previous close of 42.72 levels against a dollar.

There are some news of state run NHPC IPO which is coming with 167 crore equity shares,the largest in the history to hit the markets on October 13. It would raise about Rs 1,670 crores. And would list on Nov 6th,2008. And TATA Motors is considering an option of selling group company stocks to raise another 3000 crores to fund its various acquisitions. Meanwhile the US markets closed flat yesterday and the Asian markets are also trading weak, so we can expect another volatile and a weak session today in the markets.

Some intra day trading tips for today: EIH(cmp 140), Sterlite Industries(cmp 601), Cairn(cmp 243), Vishal Information(cmp 305),Phoenix mills(cmp 168),Hindustan Zinc(cmp 568).

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Amid positive Asian markets the Indian share markets finally snapped its 5 day losing streak where it lost about 960 points from its previous close. The sensex gained 134 points to close at 14,678 levels.The nifty also closed up gaining 48 points at 4416 levels.

With the announcement of launch of Big TV services by ADAG group, the RCom stock was on a rally and gained 3.76%. Meanwhile we also saw a deal where M & M purchased a majority stake in the 3rd largest tractor making company of China and became the largest tractor manufacturing company as per last quarter data. But M & M stocks were sliding on the bourses and lost 2.08% today.

The rupee is also seen depreciating over the past few days and touched the highs of Rs 43.72 per dollar.RBI has fixed the reference rate of Us dollar at Rs 42.67 per dollar. The crude oil also maintained its downard march and its now being traded at $112.83 barrel.

The markets will also be awaiting the inflation figures for the week ending Aug 9th. For the week ending Aug 2nd the inflation figures stood at 12.44% as against 12.01% previously. If it rises further from here, then the markets may see a beating. But it is expected to touch 13% levels before softening.
So some intra day trading tips for today include: Vishal informatics(cmp 312),Rolta(I)(cmp 342),Wockhardt(cmp 205), Sun Pharma (cmp 1512),Torrent Power(cmp 120), RCom(cmp 415),ABB(cmp 898).

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