KEC International Ltd has informed regarding a Press Release dated September 06, 2010 titled "KEC International executes a definitive agreement to acquire SAE Towers Holdings LLC." Stated in the press release:

KEC International Ltd. ("KEC") today announced that it has signed a definitive agreement to acquire 100% of SAE Towers Holdings LLC ("SAE Towers" or the "Company") from an entity affiliated with ACON Investments, L.L.C. ("ACON"), a Washington, D.C.-based private equity firm, for $95 million (excluding adjustments for working capital) on a cash free, debt free basis.

For the second day in a row, Indian markets rose, despite mixed global trends. With US markets closing negative on Tuesday, and Asian market trading negative, Indian equities opened negative, but rallied towards the middle of the day on seeing positive London markets, finally closing marginallypositive. The Sensex closed at 18666.71, up 0.12%. The Nifty ended the day at 5607.85, up around 4 points.

Advance decline was again marginally positive on the BSE, indicating that there is reasonable buying support. FII buying was positive, FIIs were net buyers to the extent of Rs 280 crore ($60 million). FIIs have invested $410 million in Indian equities so far in September.

Markets made a dash towards the breakeven point during the closing hours of the day. Although they did succeed to close above that level, they could not manage to go past the intra-day highs. As a consequence, gains on the Sensex were restricted to a little over 20 points (up 0.12%) whereas the Nifty ended nearly flat. BSE Mid cap and Small cap indices on the other hand continued to behave as if they are from a different planet and notched up gains in the region of 0.4% and 0.6% respectively. More than three stocks gained for every one that declined on the Sensex today.

Most Asian markets ended lower today whereas Europe is also trading in the red currently. The rupee was trading at Rs 46.7 to the dollar at the time of writing.

Indian markets showed some signs of bullish frenzy, when local indices gained despite a negative day for Asian markets and London. Of particular note was the divergence from LSE, which was trading as much as 0.8% down. Ignoring global cues today, Sensex gained 0.46% to close at 18645.06, while the Nifty gained 0.49% to close above 5.6K mark at 5604.

There was some circumspection within smaller indices. Junior Nifty ended down marginally, while BSE Midcap and Smallcap gained lower than the Sensex. FIIs were marginal net sellers according to data on the BSE. Domestic institutions were net buyers to the extent of Rs 440 crore.

After yesterday's strong run, Indian markets traded amidst some volatility today. However, buying in stocks from the engineering and IT sectors propelled the markets to higher levels during the closing hour of trade. Banking, pharma, and realty stocks closed weak. The overall market breadth was positive as there were 2 gainers for every 1 stock that closed in the negative today.

BSE Sensex and NSE Nifty closed with gains of around 85 points (0.5%) and 25 points (0.3%) respectively. Mid and small-cap stocks followed suit, closing with gains. The rupee was trading at 46.79 against the US dollar at the time of writing this.

Buying activity extended to the closing hours of trade today. As a consequence, the benchmark indices posted some very strong gains and in the process, not only did the Sensex go past the 18,500 mark but the benchmark indices also closed at a fresh 31-month high today. The Sensex logged in gains in the region of 350 points (up 1.9%) whereas Nifty managed gains of around 100 points over last Friday's closing. BSE Midcap and small cap indices also participated in the rally, ending higher by 1.3% and 1.8% respectively. More than six stocks gained for every one that closed lower on the Sensex today.

Equities worldwide seemed to be on a tear today as not only did other Asian indices close higher, Europe is also witnessing strong buying activity currently. The rupee closed at Rs 46.5 to the dollar at the time of writing.

This week we look at some particularly strong second quarter GDP numbers out from emerging markets Brazil and India, as well as one lucky developed market, Australia. Then we review the PMI results from the two biggest economies: China and the US.

1. Brazil GDP

By Luke Burgess

Due to a sharp decrease in foreign exchange reserves following the Indo-China War in 1962, the government of India enacted the Gold Control Act.

Strong economic performance in developing countries will not only benefit the 5.6 billion people who reside there, but will also impact the likelihood of a double-dip recession in advanced countries.

As GDP growth in advanced countries slows sharply, emerging economies are set to help sustain the global recovery. Though growth in emerging markets has moderated from torrid post-crisis rates, it remains high. In addition, it has grown more reliant on domestic demand, and is broadening across sectors. This high rate of growth can help mitigate a sharp slowdown of domestic demand in advanced countries, but cannot compensate fully for it.

Yesterday, we had written about the controversy over GDP numbers. What has happened since is even more bizarre. Now the government has issue new numbers. All within some 24 hours. The government has revised consumption numbers quite dramatically, claiming the earlier low numbers were simply a result of a calculation error.

The size of revision is dramatic. The consumption size GDP growth estimate is now 10%, compared to 3.7% earlier. Pvt consumption growth is now 3.7% compared to 0.3%, while the government expenditure growth is now 14.2% compared to -0.6% earlier.

Although in the positive, the Indian indices moved closer to the dotted line in the final hours and settled marginally higher today. Profit booking in index heavyweights led the indices to shed most of the early gains. While the BSE Sensex closed higher by around 32 points (up 0.2%), the NSE Nifty gained around 14 points (up 0.3%). The BSE Midcap and the BSE Smallcap indices managed to do well to notch gains of 0.8% and 1.1% respectively. Profit booking was largely seen in software, realty and oil & gas stocks.

As regards global markets, barring Indonesia most Asian indices closed in the positive today. However, European markets have also opened on a cautious note. The rupee was trading at Rs 46.78 to the dollar at the time of writing.

GDP data for Q1, reported today, came in at a strong 8.8%. However, the data was widely questioned for the discrepancy between supply side and consumption side estimates.

For example, The Economic Times, in a front page flier wrote:

Although in the positive, the Indian indices remained range bound for the larger part of the trading session today. However, buying activity intensified in the final hours and helped the indices to close well above the dotted line. While the BSE Sensex closed higher by around 235 points (up 1.3%), the NSE Nifty gained around 69 points (up 1.3%). The BSE Midcap and the BSE Smallcap also did well to notch gains of 2% each. Gains were largely seen in metals, IT and oil & gas stocks.

As regards global markets, barring China most Asian indices closed in the positive today while European indices have also opened in the green. The rupee was trading at Rs 46.82 to the dollar at the time of writing.

Despite reports of higher GDP growth, the benchmark indices failed to elicit investor interest and languished in the red till the closing hours. Selling activity was largely seen in realty, telecom and metal stocks. BSE Sensex edged lower by around 61 points (down 0.3%) whereas NSE Nifty edged lower by around 13 points (down 0.3%). BSE Midcap and Small cap indices were not spared either as they closed lower in the vicinity of 1% each. While Asian across the board closed lower today, European stocks have opened mostly on a negative note. The rupee was perched at Rs 47.01 to the dollar at the time of writing.

As per the latest release, Indian economy grew at its fastest clip in nearly three years in the quarter ended June 2010. The GDP growth of 8.8% was largely due to strong manufacturing growth of 12% YoY and improved farm output. Financing, insurance and real estate grew 8% as against 11.8% in the corresponding quarter of FY09. The higher GDP numbers may make it easier for the central bank to raise interest rates going forward.

If investors weren’t already aware of the tremendous “growth gap” between the developed and emerging markets of the world, a report Tuesday out of New Delhi served as a nice reminder. India’s gross domestic product grew by 8.8% in the quarter ended June 30, roughly in line with analyst estimates for expansion in the world’s largest democracy. That marks the fastest GDP growth in more than two years, outpacing the 8.6% clip from India’s fiscal first quarter ended in March. Coming just days after the U.S. revised its GDP growth estimate for the same period downward to 1.6%, India’s pace of expansion is truly remarkable.

Reaction to the latest GDP figures was primarily positive. “The data underscore the strong recovery in India’s economy, Asia’s third-largest and among the earliest to emerge from the global economic crisis,” writes Anant Vijay Kala. The impressive figures give Indian policymakers enhanced flexibility in their efforts to combat inflation, which has recently shown signs of accelerating.

By Nicholas Deleon

Only a few hours after RIM managed to avoid the Indian ban hammer, it now looks like Google (GOOG) and Skype could be the next target. India’s Home Ministry, the country’s interior ministry (think police force and other domestic policy matters), has told the BBC that “any company with a telecoms network should be accessible” to the country’s security services. India says it needs to be able to be able to tap into such communications in order to thwart potential terrorism threats.

In Part I, I alerted readers to the problem with using Western labels and Western analysis to analyze the gold markets of other nations – especially the two titans of the gold market: China and India. More specifically, I pointed out that breaking-down demand into the categories of “retail investment” and “jewelry” demand was both arbitrary and inaccurate.

In fact, much of the gold/silver acquired under both of those categories simply represents “savings”, rather than “investment” or the mere purchase of a luxury good (i.e. jewelry). Because of this inaccurate analysis, I suggested that (Western) analysts will likely consistently underestimate long-term demand, while overestimating the amount of “scrap” bullion which would/will return to the market.

By Elliot Turner

India reported its strongest GDP number since the global financial crisis began, posting an 8.8% growth rate for the second quarter. This checked in 20 basis points higher than the first quarter’s 8.6%. The 8.8% figure was right in-line with analyst estimates, and demonstrated the impressive organic growth in this third largest Asian economy behind China and Japan.

Although the Indian indices began the day's proceedings on a strong note, subsequent bouts of profit booking pared some gains. While the latter part of the afternoon session saw the indices struggling to stay afloat, renewed buying in the final hour helped the indices to close in the positive. While the BSE Sensex closed higher by around 34 points (up 0.2%), the NSE Nifty gained around 7 points (up 0.1%). While the BSE Midcap closed marginally in the positive, the BSE Smallcap closed in the red. While metals and auto stocks found favour, IT and FMCG stocks were at the receiving end.

As regards global markets, most Asian indices closed in the positive today while European indices have opened on a mixed note. The rupee was trading at Rs 46.88 to the dollar at the time of writing.

The telecommunications market in India has tremendous potential, and there is no communications equipment maker in the world which is not increasing its presence there at this time, ahead of the era of 3G cellular communications. That technology is still not available for hundreds of millions of customers there.

It must be understood that this is a country where wired broadband, such as ADSL, is almost non-existent, because of a lack of appropriate infrastructure. So surfing over cellular communications seems to be the only solution for hundreds of millions who thirst for online information.