Indian Shares

India and Saudi Arabia have signed an energy co-operation deal. The deal referred to as the ‘Delhi Declaration’ was signed during a visit by King Abdullah to India. The deal will see both pubic and private companies in the two countries co-operating on projects. As part of the deal Saudi Arabia will invest in oil handling facilities in India. The declaration will also see the two countries work together on Information Technology, Energy, and bio-technology and education.

The energy agreement follows on from a similar deal signed between China and Saudi Arabia earlier in the week.

It was announced on Friday that Air Deccan are intending to raise funds by floating 24.5 million shares in an IPO. The funds will help the airline continue its expansion following its order for 30 Airbus A320 aircraft last year. The airlines plans are based on the rapidly expanding growth of aviation in India, which recently saw the merger of Air Sahara and Kingfisher.

It has been announced that Jet Airways is to aqquire Air Sahara, subject to approval from the Indian government. The merger of the two airlines will create the largest airline in India based on current fleet size. The deal is valued at US$500 million.

Air Sahara starte operations on the 6th January 2006 to London (Heathrow) from Delhi

Following on from similar investment deals in India in the IT industry from Microsoft and Oracle. Boeing will be putting up to $2 billion dollars into the Indian economy in the coming years via the Aerospace sector. The investment is part of a counter trade agreement between the US and India following a $11 billion order for Boeing aircraft placed by the Air India the national carrier. The majority of the investment will come from outsourcing of aerospace work to Indian companies but Boeing will also be setting up maintenance/overhaul facilities and pilot training centre in India.

Source: Boeing confirm Air India Order

InfoSys released the company's Q3 results for the 3rd quarter ending 31/12/2005 today.

Resulting in a near 10% fall in the company's stock price.

Jet Aiways has already gone for an IPO and although the share price has not shown massive gains for investors other Indian arlines will be looking to go for an Initial Public Offering (IPO) during 2006. Potential candidates are:

• Air Deccan
• Air India
• Indian Airlines
• Kingfisher Airlines

All of these airlines placed massive orders for aircraft during 2005 and the Indian air market is still growing amid fierce competition. With more orders for new aircraft expected during 2006. The airlines will therfore me looking to IPO as a source of investment into business operations.

 

Following on from InfoSys, Wipro has been given permission to construct buildings taking up a further 30 acres at the Rajiv Gandhi Chandigarh Technology Park (RGCTP). This expansion is part of the second phase of the RGCTP.

The RGCTP is a Special Economic Zone approved by the Government of India and has considerable backing from the Union Territory of Chandigarh.