Alstom T&D India bags three contracts worth Rs 168.70 crore

Alstom T&D India has been awarded three contracts approximately worth Rs 168.70 crore (21 million euros) from West Bengal State Electricity Transmission Company (WBSETCL), for projects across the state of West Bengal in India. The state government of West Bengal has planned major investments in the T&D sector. The aim is to build the transmission backbone of the state, through which power will be channelled from the eastern part of the country.

The first two contracts include design, engineering, manufacture, supply, erection, testing and commissioning of 220/132 kV gas-insulated substation (GIS) package for the Vidyasagar Industrial Park at Kharagpur and 220 kV GIS package for Dharampur. The orders are worth approximately Rs 66.56 crore (8.3 million euros) approximately and Rs 33.87 crore (4.3 million euros) approximately respectively.

The Vidyasagar Park Substation is constructed to feed the different industrial units coming up in the adjacent park of the Midnapore District. The Dharampur substation, on the other hand, will connect existing substations at Jeerut and Aramabagh for the development of an Extra High Voltage network in the North 24 Parganas district. Both substations will help strengthen the state's transmission network at 220 kV level.

As part of the third contract, worth Rs 68.30 crore (8.5 million euros) approximately, Alstom will supply a 400 kV substation and a 220 kV transformer bay at Gokarna, and a 220 kV substation and feeder bays at Krishnanagar. The 400 kV AIS substation is constructed to evacuate power from the 2 x 500 MW Sagardighi Power plant (Phase II). It will be directly connected to the 400 kV substation of Power Grid. All products for these three contracts will be delivered from Alstom T&D's world class factories across India.

Alstom T&D India is part of Alstom Grid, a global player in electrical grids. The company’s India operations account for over 13% of overall revenues garnered by Alstom Grid’s global operations. Apart from India business, other major contributors are the operations in France, the US, Germany and China.

ONGC inches up as its overseas arm acquires additional 12% stake in Block BC-10 in Brazil

The promoters holding in the company stood at 69.23% while Institutions and Non-Institutions held 17.13% and 13.65% respectively. Oil and Natural Gas Corporation’s (ONGC) wholly owned subsidiary- ONGC Videsh, through its affiliate has acquired an additional 12% Participating Interest ( PI) in Block BC-10, a deepwater offshore block in Campos Basin, Brazil taking its total PI in the block to 27%. The operator, Shell holds the balance 73% PI in the block.

ONGC Videsh had acquired 15 % PI in Block BC-10 in 2006. The other partners in the block were Shell, Operator with 50% PI and Petrobras with 35% PI. In August 2013, Petrobras entered into an agreement with Sinochem for sale of its 35% PI in the block. This agreement was subject to pre-emption rights of the partners. Shell and ONGC Videsh exercised their pre-emption rights for acquisition of 23% PI and 12% PI respectively. On approval of the Brazilian regulatory authorities for acquisition, the transaction has been completed on 30th December, 2013. ONGC Videsh has paid a purchase consideration of $ 561 million for 12% stake in the block.

ONGC is a premier oil and gas company in India, accounting for 71% of the country’s crude oil production and 54% of its natural gas production in 2011-12. It is also a significant producer of value added products such as liquefied petroleum gas (LPG), superior kerosene oil (SKO), and naphtha. GoI is the majority shareholder in ONGC, with a 69% equity stake as of now.

Asian Paints spurts on plan to hike industrial paint prices by 4%

Asian Paints is currently trading at Rs. 490.20, up by 2.55 points or 0.52% from its previous closing of Rs. 487.65 on the BSE.

The scrip opened at Rs. 488.00 and has touched a high and low of Rs. 492.65 and Rs. 486.50 respectively. So far 39140 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 560.00 on 08-Nov-2013 and a 52 week low of Rs. 376.35 on 28-Aug-2013.

Last one week high and low of the scrip stood at Rs. 492.65 and Rs. 482.90 respectively. The current market cap of the company is Rs. 47058.24 crore.

The promoters holding in the company stood at 52.79% while Institutions and Non-Institutions held 27.35% and 19.86% respectively.

Asian Paints is all set to increase industrial paint prices by 4% with effect from January 1, 2014. The move came in to offset inflationary pressure on industrial products. Recently, the company hiked industrial paints’ prices by 10%. Prior to that, the company had increased prices in its decorative paint segment by 1.2%.

Asian Paints is India’s largest paint company and Asia’s third largest paint company. The company along with its subsidiaries has operations in 20 countries across the world and 28 paint manufacturing facilities, servicing consumers in 65 countries through Berger International, SCIB Paints-Egypt, Asian Paints, Apco Coatings and Taubmans.

Financial Technologies gains on buzz of UCX's plan for acquiring its stake in MCX

The promoters holding in the company stood at 45.63 % while Institutions and Non-Institutions held 17.61 % and 36.54 % respectively.Universal Commodity Exchange (UCX) is reportedly in talks to acquire Financial Technologies’ stake in Multi Commodity Exchange of India (MCX). In this regard, the UCX is in primary discussion with 2-3 foreign Institutional Investors (FIIs).

The deal size is likely to be pegged around Rs 600 -700 crore. At present, Financial Technologies hold 26% stake in MCX.

Recently, Multi Commodity Exchange of India’s (MCX) board asked promoter Financial Technologies India (FTIL) to reduce its stake to 2%, in accordance with the regulator’s order.

UCX is the sixth commodity exchange opened in April 2013. It is a joint initiative by institutions such as IDBI Bank, Indian Farmers Fertiliser Cooperative (IFFCO), National Bank for Agriculture and Rural Development (NABARD), Rural Electrification Corp. (REC) and COMMEX Technology

RBI allows banks to lend up to Rs 1 lakh against gold jewellery

The Reserve Bank of India (RBI) has allowed banks to sanction loans of up to Rs 1 lakh against pledge of gold ornaments and jewellery. Earlier in May, the central bank had imposed restrictions on banks and NBFCs for providing loans against gold coins as well as units of gold ETFs and mutual funds. Meanwhile, the banks were asked to ensure that the amount of loan granted to any customer against gold ornaments, gold jewellery and gold coins weighing up to 50 grams should be within the board-approved limit.

Further, the RBI noted that the period of the loan should not exceed 12 months from the date of sanction and the interest will be charged to the account monthly but will become due for payment along with principal only at the maturity. Further, the RBI has decided to permit bullet repayment of loans extended against pledge of gold ornaments and jewellery for other than agricultural purposes. Bullet repayment refers to the lump sum payment for the entire loan amount paid at the time of maturity.

The central bank further notified that banks will recognize interest income on such loans in their profit and loss account only on collection and prescribed a minimum margin to be maintained for such loans. Banks should fix the loan limit taking into account the market value of the security such as gold ornaments, expected price fluctuations, interest that will accrue during the tenure of the loan etc. The RBI cautioned the banks that the account would be classified as non-performing asset (sub-standard category) even before the due date of repayment, if the prescribed margin is not maintained.

Government plans to allow FDI in e-commerce in current financial year

With an aim to enhance foreign investment into the country, the Department of Industrial Policy and Promotion (DIPP) has started consultations with stakeholders on allowing foreign direct investment in retail e-commerce before the end of this financial year. Currently, 100 percent FDI is allowed in business-to-business (B2B) e-commerce, while business-to-consumer (B2C) is still prohibited.

The DIPP has prepared the discussion paper under the commerce and industry ministry for feedback. After receiving feedback, the cabinet note will be circulated to all ministries for an inter-ministerial discussion. The draft also deals with the issues concerning mandatory sourcing norms, which has been sharply criticised by global retailers. At present, there is a mandatory 30 percent local sourcing norms for foreign players.

The DIPP is considering whether to allow FDI in e-commerce only in goods or to include services as well. Including FDI in e-commerce in services would have larger implications as the ambit is huge. In India, online services such as net-banking, payment of taxes, ticketing and bill payment, matrimonial sites are developing at a brisk pace. On goods selling front, flipkart, jabong and firstcry are major players selling a large variety of goods through online. Furthermore, DIPP is facing another problem as foreign players have already tied up with domestic companies; therefore these players are opposing the government’s decision to allow FDI at this juncture.

Morgan Stanley Asia sells 46.50 lakh shares of Apollo Tyres

Morgan Stanley Asia (Singapore) has sold 4,650,000 shares of Apollo Tyres through an open market transaction. The shares were sold at an average price of Rs 102.06 on the National Stock Exchange (NSE) on December 30, 2013.

Apollo Tyres produces the entire range of automotive tyres for ultra and high speed passenger cars, truck and bus, farm, off-the-road, industrial and specialty applications like mining, retreaded tyres and retreading material. These are produced across Apollo’s eight manufacturing locations in India, Netherlands and Southern Africa.

Vodafone Plc to acquire Piramal Enterprises’ stake in Vodafone India for Rs 8,900 crore

Vodafone Group Plc is planning to buy out Piramal Enterprises’ stake in Vodafone India. The move came in after Foreign Investment Promotion Board (FIPB) approved Vodafone’s proposal to buy out minority shareholders.

Piramal Enterprises hold 10.97% stake in the country’s second-largest telecom company by subscribers. As a part of a proposal, Vodafone Group Plc will pay Rs 8,900 crore to Piramal Enterprises for its stake. Ajay Piramal led company had invested Rs 5,900 crore to take 10.97% in Vodafone India in two tranches.

Piramal Enterprises is one of India’s largest diversified companies, with a presence in pharmaceutical, financial services and information management sectors.

NBFCs better placed than banks to withstand pressure of bad loans: RBI

In its eighth Financial Stability Report (FSR), Reserve Bank of India highlighted that Non Banking Financial Companies (NBFCs) were better placed than banks in terms of capital requirement and ability to withstand the pressure of bad loans. Going by the report, which incorporates the findings of a stress test conducted on the sector, the NBFCs have a higher level of capital adequacy or capital to risk-weighted assets ratio at 23.5% compared with 15% (comprising both tier-I and tier-II capital) mandated by the RBI.

The test, which was carried out for the period ended September, was based on two parameters, i.e. a doubling of gross non-performing assets or bad loans and a five-fold spike from the actual levels. In the first case, the capital ratio fell 1.1 percentage points to 22.4% and in the second, it dropped 4.9 percentage points to 18.6%, but still remained 3.6 percentage points higher than the benchmark. Thus, with this it was concluded that even though NBFCs fell short of provisioning under both scenarios, the impact on CRAR (capital-to-risk asset ratio) was negligible.

As per RBI’s mandate, banks are required to maintain a minimum CRAR of 9%, while the ratio for NBFCs is 15%. Rising pile of bad loans has eroded the capital base of the lenders over the past few years as they are supposed to make provision for bad loans. According to an estimate, gross bad loans of 40 listed banks rose 37% year-on-year to Rs 2.3 lakh crore at the end of September, while gross bad loan ratio for non-deposit taking NBFCs stood at 3.5% on September 30, 2013, against 3.1% a year ago.

High inflation limiting RBI's ability to boost economy’s growth: RBI Governor

Concerned over the deteriorating macro-economic indicators of the economy, RBI Governor Raghuram Rajan has stated that high inflation is limiting the central bank’s ability to boost growth. Rising inflation has become a hurdle for Indian economic growth as it has been eroding consumers and business confidence in the country. Meanwhile, in order to restrain rising inflation, the RBI has been raising the policy rates over the past few months.

The governor has said that high inflation leading to fall in domestic savings and relatively high fiscal deficit are key concerns for the Indian economy and has urged the government to continue with fiscal consolidation to support the economy. Further, general elections due by May is creating uncertainty among the investors, while a stable new government would be positive for the economy, he added. The central bank is likely to resume tightening monetary policy by early next year on account of high inflation even as the economy is growing below the decade low of 5 percent in the current fiscal.

Meanwhile, the RBI has noted that Indian economy is expected to witness modest improvement in growth on the back of good monsoon which has boosted the prospects of summer crops and higher exports. The central bank has expressed the need for long-delayed legislative reforms, stalled infrastructure project clearances and fiscal consolidation to maintain the momentum of economic recovery.

Power Grid surges on getting nod to raise FII cap limit to 30%

Power Grid Corporation of India has received its members’ nod to raise the limit of holdings by foreign institutional investors to 30% from 24% currently. The company's shareholders also approved a proposal to increase the company's borrowing limit to Rs 1,30,000 crore from the current cap of Rs 1,00,000 crore.

Last month, the company had said that increasing the limit would provide more headroom for FII investments in the company. FII holdings have been on the rise since the company's first follow-on public offer in 2010.

At the end of September 2013, the promoters holding in the company stood at 69.42% while institutions and non-institutions held 23.69% and 6.88% stake in the company, respectively.

Power Grid is engaged in bulk power transmission and its responsibility include planning, coordination, supervision and control over inter-State transmission system and operation of National and Regional Power Grids.

Cooper Tire terminates proposed $2.5 billion sale to Apollo Tyres

U.S.-based Cooper Tire & Rubber Co has terminated a proposed $2.5 billion sale to Apollo Tyres with both sides swearing to take legal action over a deal beset by obstacles from the start. Cooper Tire decided to call off the deal after being informed by the Indian tyre maker that financing was no longer available for a takeover that could have been India's second biggest in the United States. On the other hand, Apollo Tyres, was disappointed with Cooper for premature closure of the agreement and has decided to pursue legal remedies of its own.

These threats would ensure continuation of a legal stand-off between the two parties, whose relationship descended into hostility soon after Apollo agreed to buy Cooper for $35 a share in June, hoping to transform itself into world's seventh-largest tyre maker and cut its dependence on domestic sales. With this, it remains to be seen if either company is liable to pay a break-up fee. Under the deal terms, Apollo would have been liable to pay a $112.5 million fee, while Cooper could be held responsible for break-up fee of $50 million.

However, despite the company showing the disappointment with premature closure of the deal, its shareholders, which right from the start of the deal had raised concerns over the debt-funded acquisition of a company nearly three times its stock market value at that time, would welcome this news.

GAIL to set up 220 MW gas-based power plant at Raigad

GAIL India is planning to set up 220 MW gas-based power plant at Raigad in Maharashtra at a cost of Rs 1,028 crore. The company has received environmental clearance for the same and also appointed Tractebel Engineering as consultant for preparation of Detail Feasibility Report (DFR). The project is proposed to be located within the company’s existing LPG recovery plant at Raigad.

The state-owned firm plans to use 1 million standard cubic meters per day of natural gas to generate 220 mega-watt of electricity at the proposed combined cycle power plant.

GAIL is India's flagship natural gas company integrating all aspects of the natural gas value chain including exploration and production, processing, transmission, distribution and marketing and related services.

FIPB approves Tesco’s $110 million investment proposal in Trent

Foreign Investment Promotion Board (FIPB) has approved UK-based Tesco Plc’s proposal to invest $110 million to buy 50% stake in Tata Group’s Trent Hypermarket (THL). THL operates the Star Bazaar retail business and is a wholly owned subsidiary of Trent.

Tesco will invest $110 million in the company and the amount could be scaled up later depending on how operations expand in the initial three to four years.

Trent is part of the Tata Group and is engaged in business of retailing. Trent acquired 76% stake in Landmark, one of the largest books and music retail chains in the India.

BHEL enhances output of Obra Thermal Power Station to 216 MW

Bharat Heavy Electricals (BHEL) has achieved a major landmark in its after-market services business by successfully renovating, modernizing and up-rating a 200 MW thermal set at Obra Thermal Power Station in Uttar Pradesh. Following the renovating and modernization (R&M) of the unit by BHEL, the rated output of the machine has been enhanced to 216 MW and the unit has been synchronized with the grid. After successfully being in operation for its life span of 25 years, the working life of the machine has been further extended by another 15-20 years. R&M of Obra was initiated with the original technology provider but was subsequently executed successfully by BHEL’s own in-house engineering capabilities.

BHEL succeeded in loading the machine to 218 MW i.e 2 MW higher than design capacity with all parameters within the acceptable range. Significantly, this is also the first instance of a successful modernization and up-rating of any 200 MW class machine in India and the technical capability demonstrated by BHEL is a very significant credential for future R&M business in India.

BHEL has already executed R&M/ up-rating of sets up to 120 MW rating with completion of R&M of 4 sets of 120 MW and up-rating of 6 sets of 110 MW units. With the R&M and up-rating of Obra unit 9, BHEL has successfully entered into 200/ 210 MW segment. Presently, R&M of 5 sets of 110 MW units are at different stages of execution by BHEL besides the remaining 4 sets of 200 MW Unit at Obra.

Vijay Mallya buys additional stake in UB Holdings

UB Group Chairman Vijay Mallya has bought additional 0.15% stake in United Breweries Holdings (UB Holdings), the principal holding company of the UB Group, for about Rs 26 lakh. Following the acquisition, stake of Mallya and his various affiliated companies stood at 51.10% in the company.

The shares were purchased by Pharma Trading Company, a Kolkata-based company, in which Mallya is one of the directors. The company now owns a 0.78% stake in UB Holdings.

AS on September 31, 2013, the promoters holding in the company stood at 50.96%, while institutions and non-institutions held 7.36% and 41.67% stake in the company, respectively.

Jain Irrigation Systems gains on bagging world’s largest integrated micro irrigation project

Jain Irrigation Systems, the country’s largest Micro Irrigation company and agriculture conglomerate has bagged an order for the prestigious Ramthal-Marol Integrated Micro Irrigation Project in Karnataka. Krishna Bhagya Jal Nigam (KBJNL), a division of Water Resources Department of Karnataka, has selected the company through National Competitive Bidding.

The project is valued over Rs 385.70 crore and is one of its kind with water saving potential of up to 50%. More than 7000 farmers from 30,381 acre command area comprising of 35 villages of Bagalkot district, Karnataka will benefit from the project.

Jain Irrigation Systems is a manufacturer of a wide variety of PVC pipes, PE pipes, water and gas transportation pipes, ducts for optical fibre cables and drip irrigation pipes. It is also engaged in tissue culture of bananas and pomegranates and is the world’s largest processor of mangoes and is the world’s second largest processor of onions and vegetables.

Finance Minister favours continuation of curbs on gold imports

Regardless of the likelihood of the current account deficit (CAD) narrowing to less than $ 50 billion, Finance Minister P Chidambaram remains in the favour of continuation of some kind of restriction on gold imports. Some experts, including RBI Governor Raghuram Rajan, have recently favoured removing the curbs on gold imports because they lead to smuggling.

According to Finance Minister, the country should attempt to discover gold by itself. Referring to a recent Supreme Court judgement on auction of all closed mines, he said that the Mines Ministry should sell the so-called closed mines because there are persons around the world who have met me and said, 'Give us the mines and we would be able to extract gold’. The minister also reiterated the government's commitment to restrict the fiscal deficit to 4.8 percent of GDP in the year ending March 2014.

No gold has been imported since July 22, after the Indian government hiked the import duty on the yellow metal. The high duty has further increased gold price in India. In order to contain the widening current account deficit, the government last hiked the duty on gold from 8% to 10%. Prior to this, the government had twice hiked import duty from 4% to 6% and then to 8%. The government in August, had also turned the screws on gold buying, banning imports of coins and medallions and making domestic buyers pay cash. Meanwhile, RBI also acted on multiple fronts for curbing gold imports.

GMR to divest its 40% shareholding in Istanbul Sabiha Gokcen International Airport

GMR Infrastructures’ group company - GMR Group had signed a definitive agreement with Malaysian Airports Holding Berhard (MAHB) to divest its 40% equity stake in Istanbul Sabiha Gökçen (ISG) and LGM Tourism, for 225 million euros amounting Rs 1,910 crore, subject to certain adjustments. This definitive agreement has been signed subsequent to the exercise of Right of First Refusal by MAHB under the existing shareholders agreement of ISG, on December 23, 2013. Rothschild (India) and White & Case LLP acted as Financial Advisors and Legal Counsels respectively to GMR Group.

The transaction is subject to customary closing conditions including the approval of the relevant government authorities and the project lenders to ISG. This is the second major divestment of overseas assets by the GMR Group in less than nine months. Earlier in March 2013, the Group had divested its stakes in GMR Energy (Singapore). The divestment of these two assets is estimated to release around Rs 3,500 crore of capital, simultaneously reducing an estimated Rs 5,000 crore of debt.

Istanbul Sabiha Gökçen International Airport is located on the Anatolian side of Istanbul and is one of the world’s fastest-growing airports. The airport currently hosts more than 58 different carriers covering over 125 destinations. The consortium of Limak Holding, GMR Group and MAHB was selected as the preferred bidder for upgrading and maintaining the airport in July 2007. 

IG Petrochemicals restarts production of PA-1 plant at Taloja

IG Petrochemicals has restarted production and has stabilized operations at one of its Phthalic Anhydride Plant (PA-1) situated at Taloja in state of Maharashtra. The company had taken a planned shutdown of PA-1 plant for change of Catalyst.

IG Petrochemicals is a dominant player in the domestic Phthalic Anhydride (PAN) industry. IGPL has its manufacturing facilities located at Taloja, Maharashtra.

Paper Products sells office property for Rs 7.23 crore

Paper Products has sold a small office property located at Nariman Point, Mumbai in state of Maharashtra for a consideration of Rs 7.23 crore.

Paper Products is a leading consumer packaging company in India. The company offers a wide portfolio of packaging solutions that includes flexible packaging, labeling technologies and specialized cartons.

Markets to get a cautious start of the last trading session of 2013

The mood across the region is cautious and the Indian markets after declining marginally in last session, are likely to get a similar start of the last trading day of the year. Traders will be concerned with Reserve Bank of India (RBI) Governor Raghuram Rajan’s statement that the challenge of containing inflation is limiting the central bank’s ability to boost economic growth. The banking sector stocks are likely to remain under pressure, as the RBI has said that risks to the banking sector have increased during the past six months due to rising bad loans and has proposed tightening banks' exposure limit for single borrower and single groups. There will be some buzz among the retail stocks as the government cleared proposals by UK-based retail giant Tesco’s proposal to invest around Rs 680 crore. Tesco has sought permission to pick up 50% stake in Trent Hypermarket, a wholly owned subsidiary of Trent, a Tata Group company. Tesco becomes the first MNC to enter multi-brand retail in India. Meanwhile, the RBI has extended the time for issuance of inflation indexed bonds to March 31, 2014 from earlier date of Dec 31, 2013.

The US markets made a mixed closing after trading choppy throughout the day, as many traders remained away from their desks ahead of the upcoming New Year's Day holiday. Lots of the Asian markets are closed today, while some will be trading half day.

Back home, Indian equity markets snapped the lackluster day of trade, slightly in the red with frontline gauges ending below their crucial 21,150 (Sensex) and 6,300 (Nifty) levels in absence of any major trigger. Markets, after a positive opening, entered into red terrain as traders opted to unwind their position approaching the end of the turbulent year. Afterwards, both the bourses traded in tight band throughout the session as investors remained on sidelines ahead of April-November fiscal deficit reading, due on December 31, and the manufacturing Purchasing Managers’ Index (PMI) for December, due on January 2, which will help them gain insights into the extent of the economic slowdown. However, losses remained capped with the CII Business Confidence Index (BCI) rising sharply to 54.9 during the October-December period of 2013-14 fiscal, from 45.7 in the previous quarter. Some support also came in after Reserve Bank of India (RBI), painting an optimistic picture on the external front, underscored that the country was ready for the US Federal Reserve’s tapering, while pegging the current account deficit at below 3% for this fiscal in its eighth Financial Stability Report. Global cues remained mixed with most of the European markets opening in the red terrain, while Asian markets shut shop mostly in the green. Back home, public sector oil marketing companies (OMCs) like BPCL, HPCL and IOC remained under pressure on talks of increasing the subsidized cylinder cap for households. Selling in banking counter too dampened the sentiments after RBI in its ‘Financial Stability Report-December 2013’, highlighted that risks to the banking sector have increased during the past half-year and that all the risks dimensions captured in the banking stability indicator show increase in vulnerabilities in the banking sector. Additionally, telecom stocks witnessed mixed trend after the government delayed the planned mobile phone spectrum auction in the 900 and 1800 megahertz frequency bands by 10 days from the original schedule, it will now start on February 3. Finally, the BSE Sensex declined by 50.57 points or 0.24%, to settle at 21143.01, while the CNX Nifty lost 22.70 points or 0.36% to settle at 6,291.10.

IL&FS Financial Services sells 15 lakh shares of Gati: Report

IL&FS Financial Services has reportedly sold 15 lakh shares of Gati through the open market route. The company has sold 6 lakh shares at Rs 35.75 per share on BSE, while remaining 9 lakh shares were sold at Rs 35.33 per share on NSE.

Gati is a leading player in express distribution and logistics and operates through two divisions - Express Distribution & Supply Chain (EDSC) and Coast- to-Coast (C2C) division. It also operates two container yards at Chennai and Port Blair which increases capability and provides for efficient handling of the cargo.

Nifty ends below 6300 mark

Finally, BSE Sensex closed at 21143 down 51 points, while NSE Nifty closed at 6291 down 23 points over the previous close.

The Indian equity market ended with marginal losses on Monday as the Nifty index struggled to sustain above the 6300 mark. Sentiment was hit after the Reserve Bank of India (RBI) in its Financial Stability Report flagged concerns over continuing high inflation amid growth slowdown. 

The Banking stocks were under pressure throughout the day after RBI said “The risks to the banking sector have further increased during the past half-year. All major risk dimensions captured in the Banking Stability Indicator show increase in vulnerabilities in the banking sector,”

The RBI also warned that any political instability after May 2014, post-results, will drag the beleaguered economy further down, and that a stable new government would be desirable.

The realty, banking, IT and select capital goods stocks were among the top losers. Even the mid-cap stocks were under pressure. However, the small-cap stocks again managed to outperform the benchmark indices as the BSE Small-Cap index ended with gained of 0.2%.

On the other hand, the metals, oil and gas and select FMCG stocks ended with marginal gains.

On the currency front, the Indian rupee weakened against the US Dollar on Monday, the rupee was trading around the 62.37 per Dollar versus its close of 61.85/86 on Friday.

United Spirits gains after getting CCI's approval for sale of Tamil Nadu distillery to Enrica

The promoters holding in the company stood at 36.15 % while Institutions and Non-Institutions held 47.40 % and 16.14 % respectively. Fair trade watchdog Competition Commission of India (CCI) has approved United Spirits’ proposed sale of a distillery in Tamil Nadu to Enrica Enterprises, as the deal does not raise adverse competition concerns.

The deal comprises hiving off all the operations at the unit of United Spirits that manufactures Indian Made Foreign Spirits (IMFS) to Enrica, by way of slump sale on a going concern basis. The unit is located at Poonamallee, Chennai.

Post-deal, Enrica would make certain IMFS brands of United Spirits using technology and know-how and under the trademark of the Vijay Mallya’s led company.

Recently, the Karnataka High Court ruled as void a part of the sale of share of United Spirits (USL), by United Breweries Holdings, to Diageo. The court overturned an order, passed in March by a single-judge Bench in the company court, allowing Vijay Mallya’s UB Holdings to sell a significant part of its stake in USL to Diageo.

RBI lifts curbs on buying shares in Axis Bank by FIIs

After the government's approval to increase foreign shareholding in Axis Bank to 62%, Reserve Bank of India (RBI) has lifted curbs imposed on purchase of the Bank's shares by foreign institutional investors (FIIs). The aggregate share holdings through Foreign Institutional Investor (FII) / Non Resident Indian (NRI) / Person of Indian Origin (PIO) / Foreign Direct Investment (FDI) / American Depository Receipt (ADR) / Global Depository Receipt (GDR) in Axis Bank have gone below the prescribed threshold caution limit stipulated under the extant FDI Policy.

Earlier, the Bank had received approval Cabinet Committee on Economic Affairs (CCEA) to increase foreign investment in the bank from 49% to 62%. This approval would result in foreign investment of Rs.7,250 crore (approximately) in the country.

Axis Bank is the third-largest private sector bank in India. As on June 30, 2013, it had a network of 2021 branches including extension counters and 11,488 automated teller machines (ATMs) across the country.

Bharti Airtel chooses ZTE for deployment of 4-G LTE network: Report

Bharti Airtel has reportedly selected ZTE Corporation, a globally-leading provider of telecommunications equipment and network solutions, for deployment of 4-G LTE network. Airtel 4G services are available in Kolkata, Bangalore, Pune and Chandigarh region (The Tricity or Chandigarh region consists of a major city Chandigarh, Mohali and Panchkula.

ZTE Corporation is having operations in 160 countries, the company is a leader in technology innovation, delivering superior products and business solutions to clients all over the world.

Bharti Airtel is a leading integrated telecommunications company with operations in 20 countries across Asia and Africa. The company ranks amongst the top 5 mobile service providers globally in terms of subscribers.

Canara Bank plans to open 14 new branches in overseas locations: Report

Canara Bank, a leading nationalized bank, is reportedly planning to open 14 new branches in overseas locations over the next 2 years. Of which the bank will open one branch in Johannesburg in the next three months, followed by those in New York, Dubai and Frankfurt by September 2014. While remaining ten branches in Sao Paolo, Dar-es-Salaam, Tokyo, Abuja, Jeddah, Qatar, Sydney, Ontario, Wellington and Singapore are awaiting regulatory approvals. Currently, the bank has five branches and three representative offices overseas. The bank is also planning to increase the share of overseas business from about 6% currently to 15-20% over the next 2 to 3 years.

Canara Bank is India’s fifth largest Public Sector bank (PSB) in terms of assets. As on September 30, 2013, it had assets of around Rs 4,50,200 crore and advances of around Rs 281100 crore. The bank’s strong market position is underpinned by its market share of around 5.0 percent in deposits and 4.8 percent in advances as on September 30, 2013.

JSW Steel extend gains on plan to hike steel prices by 2% from January

JSW Steel is planning to hike steel prices by two per cent from January on the back of rise in production cost. The steel production cost has gone up by Rs 400-600 a tonne on the back of the recent rise in iron ore prices by Rs 200-300 a tonne. Moreover, the price rise of $30 and $20 a tonne in HBI (hot-briquetted iron) and coking coal will also have an impact on the costs.

Following the price hike, the mark-up in prices would range from Rs 700 to Rs 1,000 a tonne, depending on the product specification.

Recently, the company’s crude steel production in November, 2013 increased by 78% and stood at 10.72 lakh tonnes against 6.03 lakh tonnes in November, 2012. The production of rolled products (flat) increased by 61% to 8.31 lakh tonnes compared to 5.15 lakh tonnes in November last year.

JSW Steel is part of the JSW group which, in turn, is a part of the O P Jindal group. JSW Steel is one of the largest steel manufacturing companies in India having units in Karnataka and Maharashtra producing crude steel, long steel and flat steel products.

Risks to the banking sector increased in last six months: RBI

Reserve Bank of India (RBI), in its ‘Financial Stability Report – December 2013’, has underscored that risks to the banking sector have increased during the past half-year and that all the risks dimensions captured in the banking stability indicator show increase in vulnerabilities in the banking sector. As per the report banking stability measures, based on co-movements in banks' equity prices, also indicate that the distress dependencies within the banking system have risen during this period.

Further, the analysis shows that failure of a major corporate or a major corporate group could trigger a contagion in the banking system due to exposures of a large number of banks to such corporates. Additionally, RBI in its report expressed concerns over asset quality of banks. It highlighted that macro stress tests on credit risk suggest that if the adverse macroeconomic conditions persist, the credit quality of commercial banks could deteriorate further. However, it also underscored that under improved conditions, the present trend in credit quality may reverse during the second half of 2014-15.

Moreover, RBI remained more distressed over asset quality of Scheduled Commercial Banks (SCBs). It noted that Gross Non-performing Assets (GNPA) ratio of SCBs as well as their restructured standard advances ratio increased and therefore the total stressed advances ratio rose significantly to 10.2 per cent of total advances as at end September 2013 from 9.2 per cent of March 2013.

SEBI to issue new set of norms soon to deal with insider trading menace

In order to deal with insider trading menace, the Securities and Exchange Board of India (SEBI) will soon put in place a new set of norms, which would clearly demarcate mistakes from serious violations committed by top corporate executives and other connected entities while trading in shares of listed companies. New regulations would replace nearly two-decade old insider trading norms currently in operation. SEBI chairman U K Sinha stated that new norms will be finalized on the basis of an expert panel's suggestions and public comments on this issue, which would strengthen the system for controlling and preventing insider trading, besides providing more clarity to the company executives, promoters and others on their trading activities.

Further, new guidelines for insider trading are likely to put in place stricter penalties for those found to be indulging in insider trading activities. While, the draft has already proposed that public servants, regulators and persons holding statutory positions should be brought under its purview if they are handling share price-sensitive information about listed companies. Moreover, expert panel has also suggested to put in place a new concept for providing a pre-decided or pre-scheduled trading calendar, which is already functioning in many advanced markets.

U K Sinha further added that it is difficult to stop trading by company’s management such as CEO or CFO, who have some exclusive information around the year. Presently, SEBI has a closing window for trading by such persons. Therefore, in order to check insider trading, SEBI has also planned to introduce a pre-scheduled trading pattern for such persons. Further, proposed regulations would put in place a very clear definition for connected persons and thereby prohibit top corporate executives from trading having access to unpublished price sensitive information (UPSI). 

Indian economy likely to grow at 7.5-8% next year: Ahluwalia

As per Deputy Chairman of Planning Commission Montek Singh Ahluwalia the Indian economy is likely to grow at a pace of 7.5-8 percent in the next year. Ahluwalia asserted that in a globalised world India cannot become self-reliant and the prevailing economic slowdown is mainly caused by global factors and partially by domestic factors.

Referring to the Indian economic growth over the period of time, Ahluwalia emphasized that reforms have been carried out gradually in large diversified highly democratic country in order to pick up economic growth. However, it takes time to bring economic turnaround. The Indian economy grew by 9 percent for five years in the previous decade, while it came down to 6 percent due to the global financial crisis.

Presently, domestic economy growth has recorded to 4.8 percent in Q2 FY14 as comparison to 4.4 percent in Q1 FY14. Furthermore, the current account deficit (CAD) has narrowed to $5.2 billion, or 1.2% of GDP in Q2 FY14 as against the 4.9% of GDP in the Q1 FY14 on the back of growing exports and declining imports of the country.

CII survey shows signs of economic turnaround

Showing early signs of revival in business sentiments and coming as a major relief for the economy, which has been struggling with slowdown for the last several quarters, the CII Business Confidence Index (BCI) increased sharply to 54.9 during the October-December period of 2013-14 fiscal, from 45.7 in the previous quarter. CII Director General Chandrajit Banerjee stated that with the growing export performance and declining country’s imports, the slowdown in the domestic economy may have bottomed out in the second quarter and the trend could reverse henceforth.

Further, the survey highlighted that 58 percent of the respondents expect an increase in their sales in the third quarter of 2013-14 as against the 45 percent respondents during the previous quarter. A majority of the respondents around 42 percent felt that GDP growth in the current fiscal would remain in the range of 4.5 to 5 percent, whereas only 28 percent expected it to be in the range of 5 to 5.5 percent. Referring to exports’ growth outlook, CII survey noted that 53 percent of firms expect their exports to increase in the current quarter, up from 49 percent in the previous quarter. Moreover, 53 percent of the survey respondents expect fiscal deficit to remain below 5 percent mark despite the fact that subsidies will cross the budgeted target by a wide margin, and the impending general elections pose upside risk to government expenditure.

However, the CCI survey cautioned that the downside risks to economy’s growth have still not abated and supply side bottlenecks continue to pose a problem. CII has highlighted that the government should be careful about the upward risk to fiscal deficit amid falling tax collection and growing chances of disinvestment proceeds falling well short of target. Survey further noted that domestic economic and political instability, slackening consumer demand, high level of corruption, persistent high inflation and risk from exchange rate volatility are the top five concerns eroding the business sentiments in the country.

Bosch suspends manufacturing operation at Jaipur Plant for 2 days

Bosch has suspended their manufacturing operations at Jaipur Plant from December 30, 2013 to December 31, 2013 with a view to adjust production to meet the demand for products and to avoid unnecessary buildup of inventory.

Bosch is a major player in the diesel segment and 60% of its sales come from diesel segment. It is also among the larger suppliers of common rail direct injection (CRDI) systems in India. The company buys half of the components required for the CRDI systems (by value) locally.

Power Grid gets nod to raise FII cap limit to 30%

Power Grid Corporation of India has received its members’ nod to raise the limit of holdings by foreign institutional investors to 30% from 24% currently. The company's shareholders also approved a proposal to increase the company's borrowing limit to Rs 1,30,000 crore from the current cap of Rs 1,00,000 crore.

Last month, the company had said that increasing the limit would provide more headroom for FII investments in the company. FII holdings have been on the rise since the company's first follow-on public offer in 2010.

At the end of September 2013, the promoters holding in the company stood at 69.42% while institutions and non-institutions held 23.69% and 6.88% stake in the company, respectively.

Power Grid is engaged in bulk power transmission and its responsibility include planning, coordination, supervision and control over inter-State transmission system and operation of National and Regional Power Grids.

HCL Technologies’ arm to develop proposed IT City in Lucknow

HCL Technologies’ investment arm -- Vamasundari Investments -- has been selected to develop the proposed IT City in Lucknow. The project is estimated to cost around Rs 1,500 crore. The company’s arm will develop the project under the public private partnership (PPP) model.

The company would be required to form a special purpose vehicle (SPV) to build development and skill development centres over 30 acres and 10 acres respectively in two to four years.

Earlier, 100 acres land had been transferred to the state IT department at Chak Gajaria on Lucknow-Sultanpur highway in Lucknow district.

Idea Cellular gets nod to raise investment limit for overseas investors to 49%

Idea Cellular has received its shareholders’ approval to increase the investment limit for overseas investors to 49%. At present, FII share holding in the company is about 17.95% of the paid up capital. Holding of overseas investors in the company has consistently risen in the past few quarters.

The Aditya Birla group company’s move seeking nod for hiking the cap comes ahead of the next round of spectrum auctions scheduled to be held in February 2014. Meanwhile, the company’s board has already passed an enabling resolution to raise funds of upto Rs 3,000 crore through the Qualified Institutional Placements route.

At the end of September 2013, the promoters holding in the company stood at 45.85% while institutions and non-institutions held 22.19% and 31.96% stake in the company, respectively.

Welspun Corp’s arm enters into share sale agreement with Leighton Group

Welspun Corp’s (WCL) - subsidiary, Welspun Infra Projects (WIPPL), has entered into a share sale agreement with Leighton Group to sell Welspun’s entire 39.88% stake in Leighton Welspun Contractors India (LWIN) for the net cash consideration of $99 million. With this sale, LWIN will be renamed as Leighton India.

 In 2011, Welspun Corp acquired a 35% stake in LWIN for cash consideration of Rs 470 crore, to capitalize on opportunities in the Indian infrastructure sector especially Public-Private Partnership projects and subsequently acquired additional shares in the entity in a cash-less transaction worth Rs 115 crore.

The company has decided to exit LWIN to enable Welspun to redirect its efforts and reposition itself in the infrastructure space which has synergies with its other businesses. To streamline the structure, Welspun Infratech has also entered into an agreement with Welspun Infra Developers to acquire its 40% stake in WIPPL.

The net proceeds received by Welspun will primarily be utilized to deleverage its balance-sheet. Welspun Group intends to concentrate on businesses which have potential to give it scale consistent with its quest for being in leadership position. The transaction between Welspun Corp and Leighton Group shall be completed in the first quarter of 2014 once the procedural conditions are met.

Welspun Corp is currently in four businesses viz Line Pipes, Energy, Infrastructure & Steel and enjoys a global leadership position in the first two businesses. It may be recalled that Welspun Corp is already in advanced stages of demerging the parts of its business other than Line Pipes into Welspun Enterprises through a court process.  

Adani Power to demerge transmission line business to WOS

Adani Power has received an approval for demerger of the transmission line business of the company to its wholly owned subsidiary company (WOS) subject to requisite approvals and also approved the valuation report (by BSR & Associates, Chartered Accountants), fairness opinion (by ICICI Securities) and the scheme of demerger. The board of directors at its meeting held on December 28, 2013 has approved for the same.

Adani Power is engaged in the business of generation, accumulation, distribution and supply of power and to generally deal in electricity and to explore, develop, generate, accumulate, supply and distribute or to deal in other forms of energy from any source whatsoever.

SSLT receives permission for resumption of mining operations at Karnataka

Sesa Sterlite (SSLT) (formerly Sesa Goa) has received permission from the Supreme Court appointed Monitoring Committee to resume the mining activities at its Karnataka mine. Accordingly, the company has commenced its mining operations from December 28, 2013, in accordance with stipulated conditions.

The Supreme Court of India had earlier given the clearance for resumption of mining operations for A and B category mines in Karnataka, vide its order dated April 18, 2013.

Sesa Sterlite is one of the world’s largest diversified natural resource companies. Its business primarily involves exploring, extracting and processing minerals and oil & gas.

Markets to get a positive start of the new week

The Indian markets showed good enthusiasm in last session and benchmarks surged by over half a percent, good global cues and some government initiatives led the markets higher. Today the start of the new week and the penultimate day of the calendar year is likely to be positive tailing global peers. Traders will be taking support with the report showing signs of economic turnaround, the CII Business Confidence Index (BCI) rose sharply to 54.9 during the October-December period of 2013-14 fiscal, from 45.7 in the previous quarter. Also, the Deputy Chairman of Planning Commission Montek Singh Ahluwalia has said that the economic growth rate was expected to be at 7.5-8 percent next year. There will be some action in the power stocks, as the Cabinet Committee on Economic Affairs is likely to take up the Power Ministry's proposal to amend the Mega Power Policy this week. On the other hand the telecom stocks too will keep buzzing, as the government has delayed the planned mobile phone spectrum auction in the 900 and 1800 megahertz frequency bands by 10 days from the original schedule, it will now start on February 3. PSU OMC may come under pressure on talks of increasing the subsidized cylinder cap for households.

The US markets ended marginally down in last session lacking any major economic release, while majority of traders remained in holiday mood. The Asian markets have made a green start and Japanese market was trading higher as the yen touched a five-year low versus the dollar.

Back home, Indian equity benchmarks kick started the new F&O series on a positive note with frontline gauges garnering gain of over half percentage point on last trading day of the week, buoyed by supportive global cues coupled with appreciation in Indian rupee against dollar. During the session, the frontline equity indices traded in an extremely tight range hardly budging from the psychological 6,300 (Nifty) and 21,200 (Sensex) levels. Nevertheless, markets traded in the green terrain throughout the day and settled near their intraday high. Sentiments remained up-beat since morning after data showed that foreign funds were net buyers of Indian stocks on December 26, 2013. Some support also came in from currency front where Indian rupee appreciated against dollar on the back of dollar sale by state-run banks on behalf of the Reserve Bank of India (RBI). Supportive cues from US markets provided the much needed support to local markets in early deals; rally in Asian markets too boosted the traders’ morale. Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too participated in the rally. Buying in select power space too supported the sentiments, as the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Manmohan Singh, relaxed the coal tapering linkage policy for nine power projects with investments worth Rs 60,000 crore. Moreover, sugar stocks too remained on the buyers’ radar as the cabinet okayed guidelines for interest-free loan to sugar mills, making it clear to sugar mill owners that the interest-free loan of Rs 6,600 crore is meant “exclusively” to pay the cane price including arrears to farmers. Rally in software and technology counters too aided the sentiments with stocks like Infosys, TCS, Wipro, Tech Mahindra and HCL Technologies all edging higher after recent data from US pointed to a sturdier US economy, further brightening the outlook for India’s export-dependent IT sector. Additionally, banking stocks too edged higher, with Axis bank extending previous session’s gains triggered by the government’s decision to clear a proposal of the bank for increase in foreign investment ceiling in the bank to 62% from 49%, while PSU banks, like Allahabad bank and Dena Bank, too were up on capital infusion from GoI. Finally, the BSE Sensex surged by 118.99 points or 0.56%, to settle at 21193.58, while the CNX Nifty gained 34.90 points or 0.56% to settle at 6,313.80.

Sensex, Nifty notch some gains

The January series was greeted with a smile as the Indian equity market ended with some gains. The NSE Nifty closed above the 6300 mark convincingly while the BSE Sensex stayed put above the 21000 mark. 

Today’s smooth run was led by the IT and the telecom stocks accompanied by the pharma, FMCG and the banking stocks. Even the mid-cap and the small-cap stocks continued to remain in demand.

However, the oil and gas, auto and the power stocks were among the top losers. 

On the currency front, the Indian rupee slightly strengthened against the US Dollar. The Indian unit was trading around the Rs. 61.90 compared with previous close of Rs 62.16 per dollar.

Finally, BSE Sensex closed at 21,190 up 115 points over the previous close, while NSE Nifty closed at 6,316 up 37 points over the previous close.

Financial Technologies to cut stake to 2% in MCX as per FMC order

Multi Commodity Exchange of India’s (MCX) board has asked promoter Financial Technologies India (FTIL) to reduce its stake to 2%, in accordance with the regulator’s order.

The board of directors of the company, at its meeting held on December 26, 2013, decided to advise FTIL to implement Forward Markets Commission (FMC) Order dated December 17, 2013 by reducing its stake in the Company from 26% to 2% or below, within a period of 1 month hereof.

Last week, the FMC had issued an order declaring FTIL and its chief Jignesh Shah unfit to run any exchange, including the MCX, following Rs 5,500 crore payment crisis at group company National Spot Exchange (NSEL).

Kotak Mahindra Bank gains on cutting interest rate on housing loans by up to 0.25%

Kotak Mahindra Bank is currently trading at Rs. 737.00, up by 10.40 points or 1.43 % from its previous closing of Rs. 726.60 on the BSE.

The scrip opened at Rs. 727.00 and has touched a high and low of Rs. 741.10 and Rs. 726.95 respectively. So far 19574 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 804.00 on 30-May-2013 and a 52 week low of Rs. 588.00 on 28-Aug-2013.

Last one week high and low of the scrip stood at Rs. 742.00 and Rs. 711.00 respectively. The current market cap of the company is Rs. 56903.07 crore.

The promoters holding in the company stood at 43.69 % while Institutions and Non-Institutions held 33.43 % and 22.70 % respectively.

Private sector lender Kotak Mahindra Bank has cut interest rate on housing loans by up to 0.25% for a limited period. Consequently, the new home loans under Rs 75 lakh will be available at 10.25% per annum, down from the earlier 10.50%, while ones above Rs 75 lakh will cost 10.75% as against the earlier 10.90%. Further, the reduced interest rates will be applicable till January 31, 2014.

Kotak Mahindra Bank reported 25.74% rise in its net profit at Rs 352.54 crore for the quarter as compared to Rs 280.38 crore for the same quarter in the previous year. Total income of the bank has increased by 13.56% at Rs 2469.46 crore for quarter under review as compared to Rs 2174.50 crore for the quarter ended September 30, 2012.

Lanco Infratech trades with traction on plan to sell assets worth Rs 7,612 crore

Lanco Infratech has reportedly proposed to sell assets worth Rs 7,612 crore. The company is looking to sell 3 power projects for Rs 6,350 crore and road projects for Rs 668 crore. Further, the company will sell 1 solar and 1 real estate project.

Recently, in a major relief to cash-strapped Lanco Infratech, a consortium of lenders, headed by IDBI Bank, approved a corporate debt restructuring (CDR) package for the holding company. The decision to clear the Rs 7,000-crore CDR package and release Rs 3,500 crore towards working capital will enable the company to resume EPC (engineering, procurement and construction) operations, which were hit by a cash crunch.

Lanco Infratech is the leading integrated infrastructure conglomerate with global footprints having business verticals viz. EPC, Power, Solar, Natural Resources and Infrastructure.

MTNL gains on Union Cabinet clearing pension benefit plan for its employees

Union Cabinet has cleared the long-standing issue of pension payment plan of around 43,000 Mahanagar Telephone Nigam (MTNL) employees. The proposal entails a recurring expenditure of approximately Rs 500 crore per annum besides adjustments in respect of government pension liability previously discharged by MTNL.

Under the approved plan, all categories (Group A, B, C & D) of employees of the government absorbed in MTNL and who have opted for combined service will be given similar treatment in the matter of payment of pensionary benefits as available to the absorbed employees of BSNL.

MTNL was set up by the Government of India to upgrade the quality of telecom services, expand the telecom network, and introduce new services and to raise revenue for telecom development needs of India's key metros -- Delhi and Mumbai. 

Indraprastha Gas rises on hiking CNG and PNG prices by almost 10%

Indraprastha Gas (IGL) has increased prices of compressed natural gas (CNG) and piped natural gas (PNG) in Delhi, Noida, Greater Noida and Ghaziabad by almost 10% on December 26, 2013. Post price hike, the prices of CNG increased to a record high of Rs 50.10 per kg in Delhi and Rs 56.70 per kg in satellite towns of Noida, Greater Noida and Ghaziabad, up from Rs 45.6 and Rs 51.55, respectively.

The company has also raised consumer prices of piped natural gas (PNG) to Rs 29.50 per standard cubic metre (scm) from Rs 27.50 per scm in Delhi. If a household consumes more than 30 scm of piped cooking gas in two months, then every extra unit would be at Rs 52 per scm. Due to differential tax structure in Uttar Pradesh, the applicable price of PNG to households in Noida, Greater Noida and Ghaziabad would be Rs 29 per scm.

Last month, petroleum ministry cancelled existing allocation of domestic gas for all city gas distribution entities. It directed Gail to ensure uniformity in supply of domestic gas across all entities distributing compressed natural gas and piped natural gas.

Indraprastha Gas, incorporated in 1998, is engaged in distribution of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in Delhi. In 1999 the company took over Delhi City Gas Distribution Project from GAIL (India). IGL laid the network for the distribution of natural gas in the National Capital of Delhi to consumers in the domestic, transport, and commercial sectors.

SEBI seeks clarity on taxation policy to attract pension money to capital market

In order to attract pension money to the capital markets, the Securities and Exchange Board of India (SEBI) has sought for clarity on taxation policy to be applied to retirement- focused funds.

The present size of Indian pension fund, including individual retirement money, provident fund and other small savings  is estimated at over Rs 1.5 lakh crore in 2010. Furthermore, the size of pension market in India is expected to rise to over Rs 2 lakh crore by 2015 and further to close to Rs 3 lakh crore in 2020 and more than Rs 4 lakh crore by 2025. Meanwhile, the share of India pension fund is almost negligible in the Indian equity markets. On the other hand, foreign pension funds including from the US and Canada regularly invest in Indian markets.

The government has allowed 15 percent investment in equities, however, Employee Provident Fund Organisation (EPFO) refused to invest in capital market. Terming tax benefits necessary to attract pension money, SEBI Chairman U K Sinha has emphasized that in order to tap huge pension fund, there is a need to work on two issues. Firstly, SEBI has to continue a dialogue with EPFO and its trustees so that they start investing in domestic equity markets, and the second is the government should provide assurance of tax benefit to other pension fund houses. If a mutual fund launches a pension product, an assurance of tax benefit is required for it, he added. Earlier, market regulator has asked asset management companies or mutual fund houses to launch pension products, so that retirement money can be brought into the capital market. Meanwhile in order to develop India’s pension sector, the government, in September has allowed 26 percent foreign direct investment (FDI) in the country's pension sector.

UltraTech Cement receives EAC clearance to set up a cement plant in Tamil Nadu: Report

UltraTech Cement, part of Aditya Birla Group (ABG), has reportedly received approval from Expert Appraisal Committee (EAC), under the Ministry of Environment, to set up a cement plant in Tamil Nadu. The company is planning to set up a cement plant with 5.5 Million Metric Tonnes Per Annum (MMTPA) cement and a 75 mega watt (MW) captive power plant, with an investment of Rs 2,500 crore. The plant is coming up at Villages in Karur and Dindigul districts and will spread across 136.23 hectare, including private land - 119.44 hectare and Government land - 16.79 hectare.

UltraTech manufactures and markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzalana Cement. The company has 11 integrated plants, one white cement plant, one clinkerisation plant in UAE, 15 grinding units 11 in India, 2 in UAE, one in Bahrain and Bangladesh each and five terminals, four in India and one in Sri Lanka.

Adani Power plans to de-merge its transmission line business

Adani Power is planning to de-merge its transmission line business. In this regard, the company’s board will meet on December 28, 2013, to consider and approve demerger of transmission line business of the company and other incidental matters. Post de-merger, the transmission line business will be made a separate subsidiary.

Meanwhile, the company has set up 400 KV dedicated Mundra - Dehgam transmission line of 430 km - longest dedicated transmission line by a private sector player. It has also set up transmission lines from its power station in Tiroda, Maharashtra, to evacuate power to Warora and Aurangabad.

The company is engaged in the business of generation, accumulation, distribution and supply of power and to generally deal in electricity and to explore, develop, generate, accumulate, supply and distribute or to deal in other forms of energy from any source whatsoever.

3i Infotech to sell some assets to repay 20-30% of its debt: Report

In a bid to repay at least 20-30 per cent of its debt, 3i Infotech, a midcap software services firm is reportedly planning to sell some of its assets. The company has restructured debt of Rs 1,300 crore, at 14.75 per cent rate of interest. The company had converted the rupee loan into a dollar loan of $215 million at an interest rate of 6.5 per cent plus three-month London interbank offer rate.

3i Infotech is a global Information Technology company committed to Empowering Business Transformation. A comprehensive set of IP based software solutions (20+), coupled with a wide range of IT services, uniquely positions the company to address the dynamic requirements of a variety of industry verticals, predominantly Banking, Insurance, Capital Markets, Asset & Wealth Management.

Centre approves modalities for financial aid of Rs 6,600 crore to sugar industry

Close on the heels of an 'in principle’ nod by the Cabinet Committee on Economic Affairs (CCEA), the government approved modalities for the beleaguered sugar industry to avail interest-free loans to the tune of Rs 6,600 crore from banks for effecting timely payment to cane growers.

In a meeting held on Thursday, CCEA accorded final nod for interest subvention of up to 12% for the industry under the 'Scheme for Extending Financial Assistance to Sugar Undertakings, 2013’.

As decided earlier, the entire interest burden on the loan, estimated at Rs 2,750 crore, will be met from the Sugar Development Fund under the Food Ministry. The ministry will also finalise the guidelines for banks and millers. Further, the loan which will be equivalent to last three sugar sessions’ excise duty, cess and surcharge on sugar, would need to be repaid in five years, with moratorium on repayment for the first two years.

Hindustan Motors enters into working arrangement with HMFCL

Hindustan Motors has received an approval for entering into a working arrangement with Hindustan Motor Finance Corporation (HMFCL), subject to necessary approvals, if any, whereby HMFCL will be entitled to use and operate Chennai Car Plant of the company at Adigathur, Kadambathur in the state of Tamil Nadu and to use its infrastructural facilities thereat. The board of directors at its meeting held on December 26, 2013 has approved for the same.

The board also approved for divesting of the whole or substantially the whole or part of Chennai Car Plant of the company which is engaged in the business of manufacture and trading of passenger vehicles like Cedia, Pajero, Pajero sport, Montero and Outlander brands of passenger Cars and spare parts of the same in technical collaboration with Mitsubishi Motors Corporation, Japan and also engaged in contract manufacturing of vehicles for Isuzu Motors India Private as a going concern, subject to necessary approvals and consents of the shareholders, lenders, authorities and other concerned parties, in such manner and on such terms and conditions as may be mutually agreed between the company and any interested party.

Hindustan Motors is India’s pioneering automobile manufacturing company manufactures passenger cars, Multi Utility Vehicles and RTV. It also manufactures passenger cars in the mid size premium segment (Mitsubishi Lancer, Lancer Select, and Lancer Cedia) and has brought the Sports Utility Vehicle (Mitsubishi Pajero) into the Indian market, in collaboration with Mitsubishi Motors of Japan.

Allahabad Bank receives Rs 400 crore capital infusion from GOI

The Government of India (GOI) has infused Rs 400 crore in public sector lender Allahabad Bank towards issuance and allotment of equity shares on preferential basis.

Allahabad Bank has allotted 4.45 shares of face value of Rs 10 each for cash at an issue price of Rs 89.72 per equity share on preferential basis to the government of India. Subsequently, the government holding in the bank increased to 58.90 per cent from 55.24 per cent.

Allahabad Bank reported a rise of 17.76% in its net profit at Rs 275.81 crore for the quarter ended September 30, 2013 as compared to Rs 234.20 crore for the same quarter in the previous year. Total income of the bank increased by 15.72% at Rs 5303.06 crore for quarter under review as compared to Rs 4582.64 crore for the quarter ended September 30, 2012.

Dena Bank gets capital infusion of Rs 700 crore from GOI

Dena Bank has received capital infusion of Rs 700 crore from the Government of India (GOI) towards issuance and allotment of equity shares on preferential basis. Post capital infusion, the paid-up capital share capital of the bank has increased from Rs 350.05 crore to Rs 468.64 crore and GOI’s holding in the bank has increased from 55.24% to 66.57%. 

Earlier, shareholders of the bank, at an extraordinary general meeting on December 24, passed a special resolution authorizing the issuance of 11,85,83,770 equity shares of Rs 10 each to Government of India (GOI) on preferential allotment basis at a price of  Rs. 59.03 per equity share (including a premium of Rs. 49.03 per share). 

Shareholders of Dena Bank have also passed a special resolution authorizing the bank to access capital market for raising capital upto the extent of Rs 800 crore (including premium) by issuing equity shares by way of Qualified Institutional Placement (QIP) in one or more tranches.

Tata Steel to set up 1st phase of 6MT plant in Odisha by March 2015

After completing 3 MT expansion in Jamshedpur, Tata Steel is all set to set up the first phase of its six million tonne (MT) plant at Kalinganagar in Odisha by March 2015. The said project has been alienated into two units of 3 MT each and will produce flat steel products for the automobile industry.

The work on the first phase of the project, involve an investment of the Rs 25,164 crore is in full swing. The plant is the largest ongoing single location investment with the first integrated green-field project for the company outside Jamshedpur. Tata Steel, the flagship company of the Tata group is the first integrated steel plant in Asia and is now the world’s second most geographically diversified steel producer and a Fortune 500 Company.

JSW Steel to hike steel prices by 2% from January

JSW Steel is planning to hike steel prices by two per cent from January on the back of rise in production cost. The steel production cost has gone up by Rs 400-600 a tonne on the back of the recent rise in iron ore prices by Rs 200-300 a tonne. Moreover, the price rise of $30 and $20 a tonne in HBI (hot-briquetted iron) and coking coal will also have an impact on the costs.

Following the price hike, the mark-up in prices would range from Rs 700 to Rs 1,000 a tonne, depending on the product specification.

Recently, the company’s crude steel production in November, 2013 increased by 78% and stood at 10.72 lakh tonnes against 6.03 lakh tonnes in November, 2012. The production of rolled products (flat) increased by 61% to 8.31 lakh tonnes compared to 5.15 lakh tonnes in November last year.

JSW Steel is part of the JSW group which, in turn, is a part of the O P Jindal group. JSW Steel is one of the largest steel manufacturing companies in India having units in Karnataka and Maharashtra producing crude steel, long steel and flat steel products.

FIIs were net buyers of Rs 446.71 crore in index futures and options segments on December 26

According to the data released by the NSE, the Foreign Institutional Investors (FIIs) were net buyers of Rs 446.71 crore in index futures and options segments as per Thursday’s data, December 26, 2013.

FIIs were buyers of index futures to the tune of Rs 706.98 crore and they sold index options worth Rs 260.28 crore. In the stock segment, FII’s were net sellers of stock futures worth Rs 1131.21 crore, while they bought stock options worth Rs 52.48 crore.       

Sobha Developers bags top honours at the CNBC Awaaz Real Estate Awards 2013

Sobha Developers has received two prestigious recognitions at the CNBC Awaaz Real Estate Awards held on December 21, 2013 at Hotel Trident in Mumbai. The realty major was honoured with ‘The Builder of the Year Award’ at the national level.

The company was also chosen as the ‘Best 100 percent Complete Residential Project’ in the Ultra Luxury Segment - Bangalore for Sobha Lifestyle Project.

Sobha has presence in seven cities -- Bangalore, Gurgaon, Chennai, Pune, Coimbatore, Mysore and Thrissur. It has completed 83 projects aggregating to 20.78 million sq ft of saleable area and is presently developing 43 projects with 17.4 million sq ft of saleable area.

Central Bank of India inaugurates 103 branches and 103 ATMs across the country

Central Bank of India, one of the largest Public Sector Banks with a pan-India presence has inaugurated 103 branches and 103 ATMs across the country. The Union Minister for Finance virtually inaugurated the branches and ATMs s to mark 103rd Foundation Day of the bank.

The Finance Minister also launched a new Mobile Banking Application and a EMV Compliant RuPay Debit Card. Besides, the Finance Minister handed over cheque to 3 schools of Rs 50,000/- each under the special CSR initiative of covering 103 schools in all lead district of the bank.

Central Bank of India has been serving more than 3,50,00,000 account holders through its 4,400 branches, 6 extension counters, 29 Satellite offices, 1,970 ATMs and 2,413 ultra small branches (USBs).

Axis Bank gains on receiving approval from CCEA to increase foreign investment limit

Axis Bank is currently trading at Rs. 1309.00, up by 10.80 points or 0.83% from its previous closing of Rs. 1298.20 on the BSE.

The scrip opened at Rs. 1311.30 and has touched a high and low of Rs. 1311.30 and Rs. 1303.95 respectively. So far 8,749 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 1549.00 on 20-May-2013 and a 52 week low of Rs. 764.00 on 04-Sep-2013.

Last one week high and low of the scrip stood at Rs. 1318.45 and Rs. 1278.25 respectively. The current market cap of the company is Rs. 61,603.00 crore.

The promoters holding in the company stood at 33.94% while Institutions and Non-Institutions held 48.26% and 13.25% respectively.

Axis Bank, India’s third largest private sector bank, has received approval Cabinet Committee on Economic Affairs (CCEA) to increase foreign investment in the bank from 49% to 62%. This approval is subject to the aggregate foreign institutional investors holding not exceeding 49% of the paid up equity share capital of the bank. This approval would result in foreign investment of Rs.7,250 crore (approximately) in the country.

Axis Bank is the third-largest private sector bank in India. As on June 30, 2013, it had a network of 2021 branches including extension counters and 11,488 automated teller machines (ATMs) across the country. 

Markets to get a cautious start of the new series

The Indian markets after a volatile session managed a positive end in the last session. Today, the start of the new series is likely to be a bit cautious even though the global cues are positive. Traders will be taking a breather going ahead to the New Year. Meanwhile, Planning Commission Deputy Chairman Montek Singh Ahluwalia has said that India should reduce its debt within 5-6 years by putting fiscal policy on the right path. Ahluwalia has also said that implementation of the Goods and Services Tax (GST) will be the best signal to tell investors globally that “India is open for business.” The power sector stocks will keep buzzing, as the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Manmohan Singh, relaxed the coal tapering linkage policy for nine power projects with investments worth Rs 60,000 crore.  There will be some action in sugar stocks as well, as the cabinet okayed guidelines for interest-free loan to sugar mills, making it clear to sugar mill owners that the interest-free loan of Rs 6,600 crore is meant “exclusively” to pay the cane price including arrears to farmers.

The US markets continued their bull run after the Christmas break, following upbeat jobs data as Labor Department reported a steep drop in weekly jobless claims in the week ended December 21st. The Asian markets have made mostly a green start and barring Japanese Nikkei, all are trading higher. Nikkei has fallen despite the yen weakening to a five-year low on speculation the Bank of Japan will sustain monetary easing.

Back home, the December series futures and options contract expiry day, despite late hour volatility, largely remained a quiet session, lacking the flavor of high volatility, which typically surfaces on an F&O contract expiry day. Nevertheless, the frontline indices witnessed consolidation through the day’s trade snapping the session with modest gains. The gauges gained about three percentage points in the December F&O series and traders were seen rolling-over their position to fresh month F&O contract on cautious hopes that the Reserve Bank of India (RBI) will surprise markets by cutting interest rates at its policy review in January 2014. The bourses traded with traction through-out the session as sentiments remained up-beat after Mauritius said that it has put additional safeguards in place for global business companies operating from its jurisdiction to ensure their substantial presence there and to boost its image as a preferred global financial centre. Some support also came in from report that revenues from service tax, the new focus area for the finance ministry, have grown over 300 times in the past two decades, besides, the number of assessees have gone up over 400 times since 1994-95. Global cues too remained supportive. Back home, some support came in from rally in public sector oil marketing companies (OMCs). Stocks like BPCL, HPCL and IOC edged higher on reports that the oil ministry has decided to move a Cabinet note for a higher increase in diesel price - in line with Rs 5 raise recommended by the Kirit Parikh committee. Moreover, power stocks too remained on buyers’ radar after CCEA approved mega power policy, wherein it approved changes in tapering coal linkage policy.  Sugar stocks like, Shree Renuka Sugars, Bajaj Hindusthan, Balrampur Chini, Triveni Engineering and Rana Sugars all edged higher after the Cabinet Committee on Economic Affairs approved the guidelines for financial assistance to the sugar industry for payment of cane price arrears. Additionally, fertilizer stocks remained upbeat on reports that fertilizer Ministry was seriously considering industry's demand to raise the fixed production cost incurred by manufacturers. Finally, the BSE Sensex gained 41.88 points or 0.20%, to settle at 21074.59, while the CNX Nifty added 10.50 points or 0.17% to settle at 6,278.90.