Railways offer Rs 2.7 tn investment opportunity: BNP Paribas

Indian Railways sector offers an investment opportunity of a whopping Rs 2.7 lakh crore over the next five to eight years, a report says. "Opportunities in the Railway sector are close to Rs 2.7 trillion over the next five to eight years, of which the Rs 800-900 billion will be awarded in the next two years," global financial services provider BNP Paribas said in a report. 

The BNP Paribas report further said that out of the entire outlay Dedicated Freight Corridor (DFC) project, which envisages construction of 2,800 kms of rail corridor spanning seven states poses the largest investment opportunity of Rs 68,000 crore. 

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Warning signs: Acceleration in 483s, Warning Letters

The US FDA’s grip around drug manufacturers is getting tighter. While Form 483 observations were common earlier on, Indian players enjoyed a comfortable period of plant validations. In recent months, however, the FDA has pulled up several frontline Indian manufacturers, raising concerns on generic exports to the US. The US is one of India’s largest export destinations for generics and adverse reactions from the regulator carry the potential to dent medium‐term

revenues. With the US FDA strengthening its base in India, the pace of  483s and Warning Letters is unlikely to slow down. Considered a primary agency, actions by the FDA also often lay the path for crossborder regulatory alerts. On the bourses thus, these companies have felt the brunt of FDA setbacks. The FDA hiccups add a new dimension to the already challenging environment for generic companies.

In recent months many generic companies, including frontline Indian companies and their subsidiaries have been at the receiving end of the US FDA’s 483s and Warning Letters. While two companies – Caraco and Cipla ‐ have not proceeded beyond 483 observations, two – Ranbaxy and Lupin ‐ have snowballed to invoke Warning Letters. As the US FDA strengthens its base in India, the pace of 483s and Warning Letters is unlikely to slow down.

Sensex creates history; two upper circuits in one day

Sensex and Nifty hit upper circuit twice today and trading had to be halted for the day.
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DLF raises Rs 3980 cr by selling 10% stake

The founders of fund-starved DLF Ltd on Wednesday raised $783 million through a share sale in India's top listed property firm. Two banking sources said the shares were sold to about 30 institutional investors.The company said its founders would use the proceeds from the sale of 168 million shares to inject capital into property trust DLF Assets Ltd (DAL) and also to buy private equity D.E. Shaw's stake in DAL.
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Chrysler to file for Chapter 11 bankruptcy

US President Barack Obama confirmed on Thursday that auto maker Chrysler LLC would go into Chapter 11 bankruptcy and enter a deal with Italy's Fiat to survive. 

"Today I am pleased to announce that Chrysler and Fiat have formed a partnership that has a strong chance of success," Obama said. "As part of their agreement, every dime of new taxpayer money will be repaid before Fiat can take a majority ownership stake in Chrysler," Obama said. 

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Wipro bags Rs 2,500-cr Unitech Wireless deal

Wipro has won a Rs 2,500-crore contract from Unitech Wireless to provide IT services to the fledgling mobile operator, pipping rivals including IBM, Tech Mahindra and Tata Consultancy Services, which were vying for the 10-year deal.  Unitech Wireless, controlled by Norway’s biggest telecom company Telenor, has licences to provide telecom services in all of the country’s 22 telecom circles, but is yet to start operations. Telenor bought a 67.25% majority stake from Delhi-based cash-strapped real estate group Unitech in two tranches. 

Indian telecom companies have been aggressively signing similar outsourcing deals with IT vendors to help them focus on their core operations. The country’s top mobile company, Bharti Airtel, kicked off the trend by signing a $750 million multi-year contract with IBM in 2004. That deal has now grown in size to $2.5 billion. Other telecom operators including Vodafone Essar, Idea Cellular, and Aircel have also outsourced their IT requirements.

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