News our way

HDFC makes MTM gains
Quite unexpectedlly when all banks and corporates are making Mark to market losses on derivatives, HDFC has announced that it made a profit of Rs 293.56 crores as MTM gains on its portfolio.HDFC has an exposure of around Rs 2,600 crore ($650 million) to cross-currency swaps and another Rs 13,000 crore to interest rate swaps. It made an MTM gain on this portfolio. In addition, it has a forex loan exposure of around $1 billion, where there are separate MTM gains that have not been booked.
This news could act as a very positive one for HDFC and we can expect some good action in the stock tomorrow.
RCOM and TATA to pay Rs 700 crore to BSNL : SC
Just as RCOM posted better than expected profit which would have had a positive impact on the stock price of the company there is some negative news in the offing.
The Supreme Court has held Tata Teleservices 'Walky' and Reliance Communication's (formerly Infocom) 'Unlimited Cordless' as limited mobile phones, hence they are liable to pay Access Deficit Charge (ADC) to BSNL for interconnection.
A bench headed by Justice H S Kapadia, while dismissing Tata Teleservices and Reliance Communication's petitions, has upheld telecom tribunal Telecom Dispute Settlement and Appellate Tribunal's (TDSAT) order of September 2005 that held these services are not fixed lines telephones, but limited mobile.
With this order RCOM is liable to pay over rs 400 crores and tata teleservices nearly Rs 300 crores.
However, RCOM later came out with a clarification that this would have no impact on the company as necessary provisions in this regard have already been made in the company books in the previous financial years.
I in my personal view feel that some impact would be felt as practically it would mean a reduction of cash for the company to the extent of Rs 400 crores and obviously could mean lower interest incomes or if the cash has already been used then greater interest outgo's.