MARKET WATCH

→ Govt says RBI processing applications of 18 foreign banks for India ops.

→ Govt decides to drop a proposal to create a US$5 bln Sovereign Fund for financing overseas acquisitions of companies.

→ Govt says planning to divest stake in SCI and MMTC.

→ Bombay HC asks SEBI to decide on MCX-SX application by Sep 30.

→ Total exposure of Indian banks to the real estate sector was at Rs 5.7 trlnat the end of the last financial year.

→ India’s Index of Business Confidence fell to 155.9 points in June from 156.8 points in April; it was 153.8 in January.

GLOBAL WATCH

→ US Fed will maintain their holdings of securities to stop money from draining out of the financial system.

→ The productivity of U.S. workers - employee output per hour fell for in the second quarter at 0.9% (y-o-y), first time since end 2008.

→ China’s trade surplus reached an 18 month high to US$ 28.7 in July; increase of 170% (y-o-y).

→ UK trade deficit narrowed in June to 7.4 bln pounds (US$ 11.7bln) from 8 billion pounds in May.

→ UK Retail sales rose 0.5 % in July vs. 1.2 % increase in June.

CORPORATE NEWS UPDATE

→ Aban Offshore signed a contract with Petrobras, Brazil for the deployment of the drillship for a firm period of 5 years; the estimated revenue is about
US$ 494 mln a potential 3. 85% performance bonus.

→ HCC gets Rs 1.21 bln order from Hindalco.

→ Nucleus Software bags order from Dhanlaxmi Bank

→ IVRCL Infra bidding for Gujarat, Karnataka, MP irrigation projects; lowest bidder for Rs 960 mln Gujarat irrigation project.

→ Infotech Enterprises’s US arm Arkansas-based Wellsco Inc; next buyout likely in Europe soon.

→ Take Solutions and Cegedim Dendrite in strategic pact.

→ Great Offshore plans foray into deepwater drilling, sub-sea services.

→ Motherson Sumi to spend Rs 4-5 bln on expanding its production capacity and on setting up new manufacturing units overseas.

→ Megasoft plans to raise around Rs 1 bln through sell 2 of 4 properties to cut its Rs 1.78-bln-rupee debt by Aug 30.

→ Hind Motors in talks to sell Chennai property for Rs 250 mln.

→ Great Offshore’s 99% shareholders have given their consent to give management control to Bharati Shipyard.

→ NTPC is ready to but coal mine of the size of 50-400 mln tn.

→ ONGC: Govt may sell 5% in company in FY11, to fetch around Rs 130 bln.

→ GMR Infra: Canada's Ontario Teachers' Pension Plan has offered to buy out company's stake in InterGen for about US$1 bln.

→ Piramal Health looking at buys in CRAMS, OTC, critical care space.

→ Vadilal Industries oks raising Rs 800 mln to fund expansion.

→ Tata Motors says looking at further divestment to raise funds.

→ Reliance Power shareholders to mull merger of arm, RNRL on Sep 4.