Markets continue to languish;FMCG weigh

Meanwhile, Bharti Airtel up 5.5% along with IT majors buck trend

Markets continued to trade in the negative territory with FMCG, banks and Oil & Gas majors weighing on the indices in noon deals. At 1315 hrs, the Sensex was down 127 points at 19,221 and the Nifty slipped 55 points to trade around the levels of 5,699.

In the broader markets, the selloff worsened, with both the smallcap and the midcap indices losing 2% each.

The rupee approached a record low on Wednesday on doubts about whether the central bank can defend the currency with its existing cash-draining measures unless policy makers take additional steps. The rupee dropped by 61 paise to 61.08 in the late noon deals.

In Asia, Chinese shares rose after Beijing pledged to keep economic growth stable in the second half of the year, while the dollar held onto slight gains as market momentum stalled ahead of the outcome of the U.S. Federal Reserve policy meeting on Wednesday.

China's CSI300 index rose 0.5% after authorities pledged to keep growth stable in the second half of 2012 while pressing ahead with reforms and restructuring. The index is still down nearly 13% this year.

Japan's Nikkei share average dropped 1.5% in light trading, giving up some of the previous session's 1.5% gain. Still, the benchmark is up 31.5% in 2013, underpinned by the government's aggressive stimulus policies aimed at reviving the world's third-largest economy.

Back home, only IT index was in the green with gains of nearly 1%. Among the ones in the red were Realty, Bankex, Power, FMCG, PSU and Capital Goods losing 1-4%.

The top gainers among the Sensex-30 were Bharti Airtel up 5.5% after its net profit fell to 6.89 billion rupees for the fiscal first quarter ended June 31, beating analyst expectations, helped by better operating performance at home.

IT majors TCS, Infosys and Wipro gained 0.1-3%.

Dr Reddys Lab, Coal India, Tata Power, ONGC, Tata Motors, Mahindra & Mahindra and Bajaj Auto which added 0.2-3% rounded off the gainers.

Among the losers were NTPC, Jindal Steel, ICICI Bank, ITC, Gail India, Hindustan Unilever, Tata Steel and Cipla which slipped 2-5%.

The market breadth was negative. 1,522 stocks declined while 526 stocks advanced on the BSE.

Rupee breaches the perilous 61/$ level on persistent month-end dollar demand

Indian rupee, prolonging its freefall, has yet again breached the perilous 61/$ level on persistent month-end dollar demand from importers and on the back of strengthening in the US currency overseas. Lingering doubts on whether the central bank can defend the currency with its existing cash-draining measures unless policy makers take additional steps is mainly hurting sentiment. Meanwhile, negative local equities also added to the pressure of Indian currency. On the global front, US dollar advanced slightly in the early trade as investors prepared for a statement on monetary policy from the US Federal Reserve, as well as the preliminary estimate of second-quarter growth for the world's largest economy.

The partially convertible currency is currently trading at 61.05, weaker by 57 paise from its previous close of 60.48 on Tuesday. The currency has touched a high and low of 61.20 and 60.83 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at Rs 59.82 and for Euro it stood at Rs 79.32 on July 30, 2013. While, the RBI’s reference rate for the Yen stood at 60.84, the reference rate for the Great Britain Pound (GBP) stood at 91.7582. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

IOC strengthens on raising $500 million through issue of dollar-denominated bonds

Indian Oil Corporation (IOC) is currently trading at Rs. 196.00, up by 0.65 points or 0.33% from its previous closing of Rs. 195.35 on the BSE.

The scrip opened at Rs. 194.00 and has touched a high and low of Rs. 197.40 and Rs. 186.20 respectively. So far 90,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 375.00 on 18-Jan-2013 and a 52 week low of Rs. 194.00 on 30-Jul-2013.

Last one week high and low of the scrip stood at Rs. 227.45 and Rs. 194.00 respectively. The current market cap of the company is Rs. 47272.23 crore.

The promoters holding in the company stood at 78.92% while Institutions and Non-Institutions held 6.43% and 14.65% respectively.

State-owned Indian Oil Corporation (IOC) has raised $500 million by selling 10-year dollar-denominated bonds. The senior unsecured bonds were priced at 3.224% points over comparable US Treasuries and the paper carries a coupon of 5.75%.

The company received bids for around $3.5 billion from over 400 investors, comprising 64% from fund managers, 17% from banks, 11% from insurance and sovereign wealth funds and 8% from private banks.

IOC is the largest enterprise in the country and the foremost ranked Fortune Global 500 Company in India and has presence in the complete hydrocarbon value chain from downstream refining & marketing, pipeline transportation, Petrochemicals, E&P and Gas Marketing.

Pipavav Defence to raise $150mn through London Stock Exchange listing

Pipavav Defence is targeting to list its stock on London Stock Exchange by October, 2013.

Pipavav Defence and Offshore Engineering Company Ltd on Wednesday announced that that the company plans to raise US$150mn through listing it London Stock Exchange. It has received provisional approval from FIPB to raise $200mn. The company has shortlisted Investment Bankers for listing it on London Stock Exchange.
The investment will be used in subsidiaries to build wide spectrum defence manufacturing facilities and infrastructure for the global demand.
The company is currently working with nearly 12 countries to build warships and offshore assets and it expects to become a global defense and offshore company over the next 4 to 5 years.
It is looking forward to joint marketing initiatives to tap growing global demands of warships and submarines through its prestigious Joint Venture with Mazagon Dock Ltd. It has submitted the bids worth $2bn in various countries with respective local partners.
The investment will reduce overall debt equity and strengthen the balance sheet significantly. Pipavav Defence is targeting to list its stock on London Stock Exchange by October, 2013.

YES Bank hikes base rate to 10.75%; revises deposit rates

Yes Bank has also consequently revised its Base Rate to 10.75% (an increase of 0.25%) effective August 1, 2013

YES BANK, India's fourth largest private sector bank today announced the revision of it's deposit rates by 0.25 percent to 0.5 percent in select tenors. This provides an opportunity for retail depositors to lock in higher rates on term deposits.

Yes Bank has also consequently revised its base rate to 10.75% (an increase of 0.25%) effective August 1, 2013.

The stock was trading at Rs 299.65 down 14 percent at 10 am.

VA Tech Wabag surges as its order intake surpasses Rs 1,000 crore in Q1FY14

VA Tech Wabag is currently trading at Rs. 392.50, up by 3.65 points or 0.94% from its previous closing of Rs. 388.85 on the BSE.

The scrip opened at Rs. 388.90 and has touched a high and low of Rs. 395.00 and Rs. 387.00 respectively. So far 285 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 2 has touched a 52 week high of Rs. 589.00 on 11-Jan-2013 and a 52 week low of Rs. 380.65 on 30-Jul-2013.

Last one week high and low of the scrip stood at Rs. 445.65 and Rs. 380.65 respectively. The current market cap of the company is Rs. 0.00 crore.

The promoters holding in the company stood at 30.91% while Institutions and Non-Institutions held 50.03% and 19.07% respectively.

VA Tech Wabag, a leading multinational company specialized in water and waste water management, has bagged orders exceeding Rs 1,000 crore cumulative in the first quarter of FY2014. Some of the domestic orders bagged by the company in the current quarter include orders from State municipalities like Orissa and Chennai.

Besides, the company has also been successful in bagging good order intake from international geographies like Philippines, Nepal and Turkey during the quarter. The company’s strategy of setting up of Multi Domestic Units (MDU) for deeper penetration in overseas geographies is progressing well.

VA Tech Wabag is a multinational player in the water treatment industry. It offers complete life cycle solutions including conceptualization, design, engineering, procurement, supply, installation, construction and O&M services.

Tata Consultancy Services receives Partner Excellence Award from Pegasystems

Tata Consultancy Services (TCS), a leading IT services, consulting and business solutions organisation, has been awarded a Partner Excellence Award for its work with Pegasystems, a leader in business process management (BPM) and software for customer centricity. TCS was recognised for its work with Pegasystems as the Best Sell with for Customer Success in Financial Services. The award, which recognises partner organisations for their ability to use Pegasystems to drive customer success, was presented to TCS during Pegasystems’ annual global sales conference in Orlando.

Tata Consultancy Services is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT, BPO, infrastructure, engineering and assurance services.

Bharti Airtel rings loud on getting approval for transfer of Data Centre undertaking bizz

Bharti Airtel is currently trading at Rs. 324.25, up by 2.80 points or 0.87 % from its previous closing of Rs. 321.45 on the BSE.

The scrip opened at Rs. 313.35 and has touched a high and low of Rs. 327.80 and Rs. 312.70 respectively. So far 270956 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 370.40 on 25-Jan-2013 and a 52 week low of Rs. 238.50 on 30-Aug-2012.

Last one week high and low of the scrip stood at Rs. 346.70 and Rs. 317.40 respectively. The current market cap of the company is Rs. 129635.69 crore.

The promoters holding in the company stood at 65.23% while Institutions and Non-Institutions held 24.40% and 10.37% respectively.

Bharti Airtel has received an approval for sale/transfer of its Data Centre undertaking (DCU) business by way of slump sale to its newly incorporated wholly owned subsidiary Nxtra Data. The board of director at its meeting held on July 31, 2013, has approved for the same.

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.

Gati Infra builds hydro-electric power project in Sikkim

GE Energy Financial Services India has invested Rs. 257 Crores in the hydro-power project through a share subscription agreement.

Gati Infrastructure Private Limited -an energy  initiative of Mahendra Agarwal, Founder and CEO of – Gati Limited, India’s pioneer and leader in Express Distribution and Supply Chain Solution is helping to alleviate India's enormous electricity shortage with its first and largest hydro-power  project in the private sector, in the north east of India.
GE Energy Financial Services India has invested Rs. 257 Crores in the hydro-power project  through a share subscription agreement. The 110 megawatt Chuzachen hydro-electric project in East Sikkim harnesses the water flow from the rivers Rangpo and Rongli, in a run-of-river design,  with turbines and generators supplied by Alstom India Ltd . The project built at a cost  of  Rs. 1188 Crores is the first one of this magnitude, under Private Ownership, in the north east of India. IDFC is the lead financier, with a loan at the project level. Capital Fortunes Private Limited - Hyderabad are the advisors and sole arrangers  in respect of this transaction. Commissioned in May of this year, the project is operating at steady state .

Mahendra Agarwal, promoter of Gati Infrastructure , explained why the company chose the snowy , rainy northeastern state of Sikkim as the hydro-power project's location “Sikkim is a  growing economy in the north east with average rainfall higher than in several other Himalayan States. With glacial melt and the perennial rivers, Sikkim has a peak potential capacity of 8,000 megawatts  of hydro-electric power.”

TCS gains on modernizing and automating taxation system in Zambia

Tata Consultancy Services is currently trading at Rs. 1807.00, up by 16.15 points or 0.90% from its previous closing of Rs. 1790.85 on the BSE.

The scrip opened at Rs. 1789.00 and has touched a high and low of Rs. 1807.05 and Rs. 1789.00 respectively. So far 8,815 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 1808.00 on 25-Jul-2013 and a 52 week low of Rs. 1197.60 on 18-Dec-2012.

Last one week high and low of the scrip stood at Rs. 1808.00 and Rs. 1740.00 respectively. The current market cap of the company is Rs. 3,53,669.00 crore.

The promoters holding in the company stood at 73.96% while Institutions and Non-Institutions held 21.57% and 4.47% respectively.

Tata Consultancy Services (TCS), a leading IT services, business solutions and consulting firm, has won a three year contract from the Zambia Revenue Authority (ZRA) for the modernization of its domestic tax system. This is the company's third revenue and tax system automation project in the African region after a successful implementation for Uganda Revenue Authority and ongoing implementation for Kenya Revenue Authority.

To carry out this transformational engagement, ZRA realized that it needed a strategic partner with strong domain expertise in executing tax administration systems as well as a strong technology credibility. TCS was the ideal choice having done more than 15 tax framework implementations in India, seven in USA and two in Africa. The scope of the project includes providing an integrated tax software application based on TCS' taxation framework, taxpayer 24/7 portal for e-services delivery, data migration, training, roll-out, warranty and operational support.

Tata Consultancy Services is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT, BPO, infrastructure, engineering and assurance services.

Economy news of the day

The Government is working on a scheme that will put mobile phones in the hands of rural folks.

India's logistics sector is likely to cross the US$200 bn by 2020, Minister of State for Road Transport Sarvey Sathyanarayana said today. (ET)

In what could be Governor D Subbarao’s last monetary policy review, the Reserve Bank of India (RBI) maintained the status quo on repo rate and cash reserve ratio (CRR) — leaving those unchanged at 7.25 % and 4%, respectively. However, its unexpectedly dovish tone led to the rupee’s slide — to 60.49 a dollar.(BS)

Govt may ease FDI norms in multibrand retail this week. (BS)

The Government is working on a scheme that will put mobile phones in the hands of rural folks. (BL)


The government asked the agrochemicals industry to invest in research and development (R&D) activities, so that it could remain globally competitive. (ET)

Bharti Airtel Q1 PAT at Rs6.89bn

Bharti Airtel Ltd has posted results for the first quarter ended 30th June, 2013.

The PAT for the quarter stands at Rs6.89bn, up 35%

Q1 sales is at Rs202.64bn, down 1%.

The net debt is at $9.8bn.

Mkt cautious ahead of Fed outcome; ICICI, Bharti Q1 nos key

Investor sentiment is cautious ahead of the Fed two-day meet outcome due today. The Federal Reserve is expected to maintain its accommodative monetary policy, but investors will be looking for hints on when the central bank might start scaling back on its monthly bond-buying programme. In addition, markets will also be eager for hints for who may replace Ben Bernanke next year as Fed chairman.

Back home, equity benchmarks fell 1.3 percent Tuesday as the rupee dropped below the 60-mark post RBI's credit policy review , continuing weakness for the fifth consecutive session.

ICICI bank is expected to deliver a stable set of numbers. In a CNBC-TV18 poll, the bank is seen reporting 24 percent growth in profits year-on-year. Margins are seen to be stable sequentially.

Bharti Airtel is also set to announce April-June quarter results today. Q1 is expected to be a strong quarter for all telecom stocks. CNBC-TV18 poll sees nearly 28 percent jump in profits while revenues could rise by over 4 percent. Solid voice volume growth, modest uptick in voice RPM and sustained data revenue growth momentum will aid numbers this quarter.

Stock in news

The National Fertilizer offer-for-sale (OFS) kicks off today and the government is likely to fix the price band for the Neyveli Lignite offer. The base price for the OFS has been fixed at Rs 27 apiece, which is 1.12 per cent higher than the current market price of Rs 26.70.

NTPC board approves investment of Rs 3,363 crore for UP Thermal Power Plant.

Jindal Steel authorises panel to examine share buyback option.

Meanwhile sources indicate that the auto industry sends an SOS to the government for immediate intervention. Auto industry body SIAM writes to the heavy industry Minister Praful Patel seeking around 30 percent reduction in excise duty across products.

Global cues

In US, markets close mixed, the Dow Jones industrial average slipped. Nasdaq hit a 12.5 year high. Among techs, Facebook advanced more than 6 percent after the social-networking giant announced the launch of Facebook mobile games publishing. The stock has surged more than 45 percent so far this month and is trading close to its IPO price of USD 38 a share.

In europe, markets closed narrowly higher after a mixed bag of earnings reports, fresh economic data released from the euro zone, and a bank sell-off led by Barclays.

Asian markets were trading mixed. China's Shanghai Composite rose 0.76 percent or 15.08 points at 2,005.15.

Hong Kong's Hang Seng was up 0.18 percent or 40.60 points at 21,994.56. Japan's Nikkei shed 0.87 percent or 121.23 points at 13,748.59.

Singapore's Straits Times declined 0.46 percent or 15.04 points at 3,230.41.

Other asset class

In the currency space, the euro steady above 1.32 to the dollar. The dollar index is around 81.80 levels. The dollar yen is at 98.

Brent crude prices slip to USD 106 per and Nymex slips to USD 103 per barrel.

From precious metals space, gold hovers around 1325 dollars an ounce

HCL Tech Q4 PAT at Rs12.10bn

HCL Technologies Ltd has posted results for the first quarter ended 30th June, 2013.

The net profit for the quarter stood at Rs12.10bn.

Q4 other income was at Rs1.75bn, while sales is at Rs69.44bn.
Total Income has increased from Rs 210370.50 mn for the year ended June 30, 2012 to Rs 258876.70 mn for the year ended June 30, 2013.

The company has announced that the Board of Directors of the Company at its meeting held on July 31, 2013, inter alia, has recommended a final dividend of Rs.6/- per equity share of Rs.2/- each of the Company for the year ended June 30, 2013.

“Fy’13 results have demonstrated significant business momentum, non- linearity and record customer satisfaction. HCL continues to excel in agility and innovation with a Business Model that is resilient in a dynamic environment,” said Shiv Nadar, Chairman & Chief Strategy Officer, HCL Technologies.
“An exceptional growth of 22% during the Financial Year has propelled HCL’s Revenue past the INR 25000 crore milestone. HCL continues to lead the industry in profitable growth, with seven successive quarters of Net Income Margin expansion, having reported 62% growth in Net Income this year. We have consolidated our leadership position in the Infrastructure Management Services and verticals like Financial Service and Lifesciences & Healthcare,” said Anant Gupta, President & CEO, HCL Technologies.
“Backed by another strong quarter, we closed our Financial Year on a positive note. Our Net Income margin expanded by 400 bps and touched a five year high of 16%. Our Return on Equity for the year has been 34% which is amongst the best in the industry. EBITDA to Free Cash Flow conversion has been at a healthy 68%," said Anil Chanana, CFO, HCL Technologies.
During the quarter, HCL booked in excess of US$ 1 Billion, including 12 multi- year deals from F500/G2000 clients. These were primarily from Manufacturing, Financial Services and Lifesciences & Healthcare verticals. Focus on disruptive new propositions like EFaaSTM, ALT ASM, Enterprise of Future and Innovation Monetization continue to drive our differentiation in the transformational renewal market.

Pratibha Inds edges higher on bagging order worth Rs 205 crore

Pratibha Industries is currently trading at Rs 23.00, up by 0.15 points or 0.66% from its previous closing of Rs 22.85 on the BSE.

The scrip opened at Rs 23.30 and has touched a high and low of Rs 23.60 and Rs 22.30 respectively. So far 612366 shares were traded on the counter.

The BSE group 'B' stock of face value Rs.2 has touched a 52 week high of Rs 58.65 on 10-Jan-2013 and a 52 week low of Rs 21.00 on 25-Jul-2013.

Last one week high and low of the scrip stood at Rs 25.00 and Rs 21.00 respectively. The current market cap of the company is Rs 230.41 crore.

The promoters holding in the company stood at 51.53% while Institutions and Non-Institutions held 21.65% and 26.82% respectively.

Pratibha Industries has bagged a new contract worth Rs 205.12 crore awarded by PHED, Jaipur, Rajasthan. The contract is scheduled to be completed in 30 months from the date of commencement. The company has also got some existing order in hand and the Balance order book as of date amounts to approximately Rs 7,000 crore.

The current contract bagged by the company is for work of Regional water supply scheme of 161 Villages of Phagi Tehsil and their NRVs & Dhanies, District Jaipur, on Transmission Main-ll under Bisalpur Dudu Phagi Water Supply Project on Single Responsibility Turnkey Basis i.e. Design, Build and 1 year Defect Liability and 10 year Operation & Maintenance.

Pratibha Industries is engaged in the business of integrated infrastructure solutions. As the company moves ahead, it has laid increased emphasis on devising its business strategy on aggressive top line growth, a de-risked business model and increased operational efficiencies.

Auto stocks plummet on RBI status quo, drive Sensex down

The BSE Sensex on Tuesday was trading over half a per cent down in afternoon trade after the Reserve Bank of India (RBI) left all key policy rates unchanged.

Weighed down by a weak rupee, the central bank in its monetary policy review earlier in the day decided to keep the repo rate and cash reserve ratio unchanged at 7.25 per cent and 4 per cent respectively. The bank also lowered the GDP growth projection for the current fiscal to 5.5 per cent from 5.7 per cent.

Interest sensitive stocks took a hit, with scrips of automobile, oil and gas, fast moving consumer goods (FMCG) companies plummeting. However, there was good buying in IT, capital goods, and TECk stocks.

At 1.30 pm, the 30-share Sensex was trading at 19,448.43 - down 144.85 points, or 0.74 per cent. At the same time, the 50-share Nifty was trading 39.80 points, or 0.68 per cent, down at 5,791.85.

Major sectoral indices of the S&P BSE which declined included automobile, oil and gas, fast moving consumer goods (FMCG), public sector undertakings (PSU) and metal.

The automobile index plummeted by 149.62 points, followed by oil and gas index which was down 127.59 points, FMCG index was trading 109.88 points lower, PSU index was down 102.18 points, and metal index was 96.30 points down.

However, IT index moved up by 67.10 points, capital goods index increased by 37.13 points and the TECk index was up 6.42 points.

NTPC slips after dull Q1 numbers

NTPC fell 2.40% to Rs 138.50 at 14:22 IST on BSE after net profit rose 1.13% to Rs 2527.02 crore on 2.90% decline in total income to Rs 16358.78 crore in Q1 June 2013 over Q1 June 2012.
The company announced the result during trading hours today, 30 July 2013.

Meanwhile, the S&P BSE Sensex was down 210.26 points, or 1.07%, to 19,383.02.
On BSE, 84,000 shares were traded in the counter as against an average daily volume of 2.68 lakh shares in the past one quarter.
The stock hit a high of Rs 142 and a low of Rs 137.50 so far during the day. The stock had hit a 52-week high of Rs 175.35 on 12 September 2012. The stock had hit a 52-week low of Rs 136.10 on 21 March 2013.

The stock had underperformed the market over the past one month till 29 July 2013, sliding 1.25% compared with the Sensex's 1.02% rise. The scrip had also underperformed the market in past one quarter, falling 9.04% as against Sensex's 1.06% rise.
The large-cap company has an equity capital of Rs 8245.46 crore. Face value per share is Rs 10.
NTPC, India's largest power company, has presence in the entire value chain of power generation business. The Government of India (GoI) holds 75% stake in NTPC (as per the shareholding pattern as on 30 June 2013).

JSW Steel to set up new plant to manufacture CRNO grade electrical steel

In a bid to manufacture non-grain oriented (CRNO) grade electrical steel, JSW Steel is all set to commission the new plant with 2,00,000 tonne per annum capacity at Vijayanagar steel complex in Bellary district during the next financial year. In this regard, the company has already placed orders for major equipment and expects to commission the facility by FY2015.

In addition to a new 2.3 million tonne per annum cold rolling mill, which will focus on automotive and appliance grade steel, the company has signed various agreements with JFE Steel in November 2012 to collaborate for the manufacturing of electrical steel, the first such venture in India.

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.

FIPB approves 6 pharma proposals worth Rs 855 cr

The Foreign Investment Promotion Board (FIPB) has cleared six proposals envisaging investments of Rs 855 crore in the pharmaceutical sector. The main proposal approved by FIPB, chaired by Department of Economic Affairs Secretary Arvind Mayaram include Singapore based healthcare firm Fresenius Kabi Oncology to bring in FDI worth Rs 349 crore and Calyx Chemicals & Pharmaceuticals to bring in foreign investment of Rs 200 crore.

India is one of the world's biggest markets for generic drugs and allows 100 percent FDI through automatic route in pharma for new projects and as for existing firms it must be approved by the FIPB. Last year, the government had decided that all foreign investments in existing domestic pharma firms should be allowed only after clearance by the FIPB, keeping in view the availability of affordable essential drugs in the wake of multinationals acquiring local companies.

Further, the government was of the view that pharma is a growing industry and there is a need to protect the domestic players from multinationals particularly generics so that Indian pharmaceutical industry continue to grow. There are too many pharma proposals pending with the FIPB as several global pharma companies are looking to buy stake in Indian firms. Meanwhile, the government is likely to soon revise the FDI policy with regard to existing pharma companies.

RBI policy: No change in key rates.

The central bank has cut the GDP growth forecast to 5.5% from 5.7% for FY14.

The Reserve Bank at its Monetary Policy meet on Tuesday has left the repo rate unchanged 7.25%.

On the rupee front, the central bank said it will roll back tightening steps as the rupee steadies.

With the rupee hurtling towards 60 to the dollar and growth slowing, the apex bank’s hands were tied.

On July 23, RBI announced additional liquidity tightening measures to contain excessive speculation and volatility in the foreign exchange market. It reduced the liquidity adjustment facility for each bank from 1% of total deposits to 0.5% of its own net demand and time liabilities, thus limiting bank's access to borrowed funds. The limit will come into force with immediate effect and continue till further notice.

In another measure, it asked banks to maintain their average cash reserve ratio at 99% of the daily requirement as against earlier 70%. This measure would come into effect after a fortnight.

On July 15, the RBI unleashed a surprise 200 bps hike in the Marginal Standing Facility besides imposing an overall cap of Rs. 750bn for LAF borrowing. MSF is used by banks, with no excess government securities, to borrow under RBI's LAF window at a penal rate which is higher than the prevailing repo rate.


It has also made gold imports for domestic consumption tougher and forced exporters to bring home their dollar earnings quicker. RBI said banks and other entities allowed to import gold should ensure that at least one-fifth of it is used for further exports. The rest can be used in the domestic market but only for jewellery making. This effectively means hoarding of gold in its raw form such as in bars and coins won’t be allowed.

China central bank injects funds, eases fears of repeat cash crunch

China's central bank injected funds into money markets via open market operations on Tuesday for the first time since February, easing fears of another cash crunch ahead of the month end after a severe cash squeeze in June caused market panic.

Market participants and investors in adjacent markets have been keeping a close eye on China's interbank money market after the central bank allowed a credit crunch to occur in late June as a warning against risky lending practices.

Short-term money rates in China have been rising steadily in recent weeks as the end of July approached and Chinese companies and banks stocked up on cash to make dividend payments and get books in order.

Some economists had predicted the People's Bank of China (PBOC) would take advantage of the pressure to engineer another end-month credit crunch if China's financial sector did not show signs of reining in risky lending.

The central bank has never explained its reasoning for allowing rates to spike in June, and it kept traders guessing in July, letting maturing instruments inject fresh funds passively but otherwise taking no direct action.

That changed on Tuesday.

The injection, a 17 billion yuanissuance of seven-day reverse bond repurchase agreements, marked the first time the central bank had engaged in open market operations since June 20 and the first time it had issued reverse repos, which inject funds instead of draining them, since early February.

Stock markets rose on the news. The Shanghai Financials Index opened up 0.5% with China Merchants Bank starting up 0.9% and China Minsheng Bank up 0.3% in Shanghai. They were outperforming the broader market.

However, the central bank set the seven-day reverse repo rate at 4.4%, much higher than the last official guidance rate of 3.35%, setting a relatively high floor for the market rates the contract can trade at.

A dealer at a state-owned bank in Beijing said that the amount injected was small, and yet the official guidance rate was high, implying the central bank wants to ensure the market is sufficiently liquid but that cash is relatively expensive.

"The (high rate) could also serve as a signal that the era of ultra loose and easy money is over and liquidity has to be appropriately priced," wrote Wee-Khoon Chong, economist at Societe Generale in Hong Kong, in a research note to clients.

Even so, money rates showed signs of easing, with the volume-weighted seven day repo contract opening down slightly. Interest rates for 1 day repos and 14-day repos also fell.

RBI to actively manage liquidity to balance financial stability, growth and inflation

For the first time since the 1997 East Asian crisis, all focus would be on Reserve Bank of India’s (RBI) projection for the Indian rupee at the quarterly monetary policy on July 30, instead of interest rates. India’s central bank in its quarterly review of macroeconomic and monetary developments, highlighted that the priority for monetary policy now was to restore stability in the currency market so that macro-financial conditions remain supportive of growth, pouring cold water on even the little hopes of monetary policy easing, which could help boost Asia's third-largest economy, expanding at its slowest pace in a decade. RBI said it will endeavor to actively manage liquidity to reinforce monetary transmission that is consistent with the growth-inflation balance and macro-financial stability.

It shows that the central bank's policy focus has shifted from reviving economic growth to defending a rupee that hit a record low of 61.21, depreciated close to 10% from the start of this year, turning out to be one of the worst performing Asian currency. Further, RBI in its macroeconomic report said that global currency market movements in June-July 2013 have prompted a re-calibration of monetary policy.

India’s Apex Bank, so far, in a bid to curb Rupee’s slide, have taken measures including capping allocation of funds under LAF for each individual bank to 0.50% of its own NDTL, increasing marginal standing facility (MSF) rate and bank rate by 200 bps each to 10.25% and mopping up some liquidity through open market operations (OMO) sales and stipulating banks to maintain a minimum daily CRR balance of 99% of the average fortnightly requirement.

Meanwhile, RBI in its report, besides rupee depreciation has also pointed towards upward revision in fuel to be a reason causing upside risk to both wholesale and consumer price inflation. Moreover, the report indicates further drop in business confidence. RBI’s industrial outlook survey shows weakening of business sentiment in the first quarter of fiscal 2014 to a three- year low, though expectations showed improvement for the second quarter.

Markets to get a flat-to-positive start; RBI policy review eyed

The Indian markets showed a disappointing trade in last session, where markets kept on losing ground with the progress of the trade till the end, closing near to lowest of the day. Today is the big day, as the Reserve Bank of India will announce the first quarter review of the monetary policy for 2013-14, though the consensus is that the central bank will maintain a status quo, however there will be cautiousness as the RBI in a document released ahead of the monetary policy review, flagged India’s high current account deficit as a major concern, saying that it would have widened in the April-June quarter due to a steep fall in the rupee as well as spike in gold imports, and called for immediate structural reforms to stem the tide. Though, soon after RBI’s release, Chief Economic Adviser to Finance Ministry Raghuram Rajan has said that the RBI’s action in stabilising the battered rupee must not hurt growth too much, the statement may soothe the nerve of the investors. Meanwhile, Prime Minister Manmohan Singh has promised more reforms in the coming months in his meet with India Inc. The pharma stocks are likely to remain in action, as the Foreign Investment Promotion Board (FIPB) has cleared six proposals envisaging investments of Rs 855 crore in the pharmaceutical sector.

There will be lots of important result announcements too, Bayer Crop, Cinemax India, Dr Reddys Lab, EID Parry, Financial Technologies, Gujarat Pipavav,  IFCI, Jindal Steel, NTPC, Petronet LNG, PVR, Reliance Power and Reliance Infra are among many to announce their numbers today.

The US markets ended mostly lower in last session weighed down by the cautiousness ahead of this week's Federal Reserve monetary policy meeting. While a negative report of pending home sales too impacted the sentiments. The Asian markets have made a mixed start, though some of the indices are trading higher by over half a percent, led by the Japanese market that moved up on the back of weakness in yen, offsetting a bigger-than-estimated decline in factory output.

Back home, it turned out to be a daunting session of trade for the Indian stock markets, which extended the southbound journey for fourth consecutive day and gave up another around half a percent as investors opted to remain on sidelines ahead of Reserve Bank of India’s (RBI) policy announcements tomorrow. Sentiments remained sluggish since morning tracking weakness in Indian rupee due to month-end dollar demand from importers. As the trade progressed, some recovery was seen in the markets after Finance Minister P. Chidambaram stated that he does not expect RBI’s recent liquidity steps to lead to increase in bank lending rates, notably a day ahead of RBI’s monetary policy review. Further, soothing some jittery nerves, FM added that India is still the second fastest growing economy and expressed hope of achieving six per cent growth this fiscal. Positive opening in European markets though supported the local indices to some extent. However, disappointing cues from Asian markets took their toll on Indian markets and dragged the frontline gauges below their crucial 5,850 (Nifty) and 19,600 (Sensex) levels. Some disappointment also came in from corporate earning front where banking stocks like Indian Bank reported 32% fall in Q1FY14 net profit at Rs 317.39 crore, while Syndicate Bank registered marginal rise in first quarter net profit at Rs 452.28 crore. Additionally, IDFC stocks too declined over 4% even as the company reported 46.74% rise in its consolidated net profit at Rs 557.31 crore for the quarter ended June 30, 2013. Bucking the trend, investors continued to pile up positions in software and technology counters on the back of depreciating rupee. Finally, the BSE Sensex lost 154.91 points or 0.78% to settle at 19,593.28, while the CNX Nifty declined by 54.55 points or 0.93% to end at 5,831.65.

In his last policy shift, Subbarao focus on Rupee

First it was growth, then wholesale price inflation, then retail prices, then the current account deficit and now, in his last monetary policy review before retiring on September 4, Duvvuri Subbarao is expected to say the monetary policy stance is pegged to rupee stability, no matter the doddering economy.

Tuesday would be the Reserve Bank of India (RBI) governor’s his last chance to win the market’s confidence, but Subbarao is expected to stand pat on signoff eve.

In the macroeconomic and monetary development report released on Monday, the RBI said that the priority for monetary policy is to restore stability in the currency market. This would ensure that macro-financial conditions remain supportive of growth.

Referring to the liquidity tightening measures unleashed in the past two weeks, the RBI said that the immediate impact has been “rupee positive.” Data shows rupee appreciated by 2% since the first round of measures were put into force.

The central bank was mum about the impact these measures had on the short-term money market where interest rates spiked and bond yields surged.
While these measures have kept rupee from falling past 60 per dollar levels, the RBI is of the view that they may only provide some breathing space and strategy would succeed if reinforced by structural reforms to reduce the current account deficit and step up savings and investment.

The RBI is expected to maintain status quo on Tuesday. This was evident from the report released on Monday that flagged inflationary pressures arising out of recent rupee depreciation and upward revisions in fuel prices. The RBI said that there were upside risks to both wholesale as well as retail price inflation.

In terms of growth, the central bank noted that there was no evidence yet of recovery in growth even as headline inflation had moderated. The Professional forecasters’ survey conducted by the RBI revised the growth projection for current fiscal downwards to 5.7% from 6% as expected in May.

While growth concerns may keep the RBI from further tightening or reversing the policy stance, inflationary pressures may not allow it to reduce rates either. The central bank may opt to wait it out on Tuesday and act only when rupee shows some stability.

The RBI said that the global currency market movements in June-July 2013 had prompted a re-calibration of monetary policy. Going forward, the central bank aims to actively manage liquidity to reinforce monetary transmission that is consistent with growth-inflation balance and macro-financial stability.

PM promises more reforms

The Prime Minister's Council on Trade & Industry met today to discuss issues concerning the Indian economy.  The agenda focused on measures to correct the Current Account Deficit; the slowdown of industrial growth and measures to revive it; depreciation of the Rupee and its impact on trade and industry; skill development and development of industrial corridors.
The meeting was attended by the Finance Minister, the Commerce & Industries Minister, Deputy Chairman of the Planning Commission, Chairman of the National Manufacturing Competitiveness Council, Chairman of PM's Economic Advisory Council, senior officials of the government and from the industry, Shri Rahul Bajaj, Dr. Ashok Ganguly, Shri Mukesh D. Ambani, Shri Narayana Murthy, Shri Azim Premji, Ms. Swati Piramal, Shri Deepak Parekh, Shri Jamshyd N. Godrej, Ms. Chanda Kochhar, Shri Venu Srinivasan, Shri Sunil Kant Munjal, Shri S. Gopalakrishnan, Dr. Rana Kapoor, Shri Sunil B. Mittal, Smt. Naina Lal Kidwai.
The Prime Minister welcomed the gathering and invited the captains of industry to give suggestions to improve the economy and remove the mood of pessimism that has unnecessarily spread in some quarters.  The Finance and Commerce Ministers then briefed the Council on the government's thoughts on the agenda.
There was a detailed and lengthy discussion on the issues.  While some expressed their concerns, some gave concrete suggestions on how to improve matters.
The overall sentiment was on the need to bring back the mood, converting decisions to action and taking the country back to a growth path of 8% or more.
The Prime Minister concluded by thanking the Council for its suggestions.  He said it was a rewarding discussion.  The Prime Minister wanted a report to be submitted within one month on what can be done in the next 2-3 months.

RBI also needs to look at growth, FM says ahead of policy

A day ahead of RBI's monetary policy review, finance minister P Chidambaram on Monday said the mandate of a central bank is not only to ensure price stability but also to promote growth and generate employment.
Stating he did not expect any hike in interest rates by the commercial banks, the minister said they had enough funds to meet credit demands and that the onus of coming up with large investment projects rests with the industry.
"All over the world thinking in changing. The mandate of a central bank must not only be price stability. The mandate of central bank must be seen as part of larger mandate which includes price stability, growth and maximising employment," he said.

Sensex falls for 4th day, banks hit ahead of RBI meet

The BSE Sensex fell for a fourth consecutive session on Monday to its lowest in more than two weeks as Hindustan Unilever dropped after brokerage downgrades, while interest rate-sensitive stocks fell ahead of the RBI's policy review.

Hindustan Unilever fell for a second consecutive session on Monday after J.P. Morgan and Macquarie downgrade their ratings, citing the prospect of slowing revenue.

Lenders including HDFC Bank and State Bank of India extended falls on uncertainty ahead of Reserve Bank of India's policy review on Tuesday.

The BSE Sensex provisionally fell 0.86 per cent to 19,578, the lowest close since July 11. The index has fallen 3.6 per cent over the last four sessions until Monday.

The Nifty closed down 0.93 per cent at 5,831.65 points.

Wipro shares jump on smart Q1 results, revenue guidance

Wipro shares jumped over 9 per cent in early trade on Monday after the IT major reported an 11 per cent rise in net profit for the first quarter ended June 30 and said it was upbeat about demand for its outsourcing services.

The country's third-largest software exporter had on Friday reported a net profit of Rs 1,623.3 crore for the April-June period, up 10.7 per cent from Rs 1,466 crore in the same period a year ago, on the back of an increase in large contracts.

The Azim Premji-led company also said it was upbeat about demand for its outsourcing services.

Wipro, which does not give annual forecasts, said it expects revenue from the IT services business to increase 2 to 3.9 per cent to $1.62-1.65 billion in the July-September quarter.

Cheering the smart quarterly numbers which were declared post market hours on Friday, shares of Wipro opened the day on a positive note, jumped over 9 per cent to Rs 417.50 on the Bombay Stock Exchange. At 1.46 pm, the scrip was trading 5.09 per cent higher at Rs 402.30.

At the same time, shares of the company were trading 5.38 per cent higher at Rs 402.50 on the National Stock Exchange.

"Wipro's Q1 result was broadly in-line with estimates," said Vivek Mahajan, Head of Research, Aditya Birla Money.

Tracking gains in the stock, Wipro's market capitalisation rose Rs 5,051 crore to Rs 99,377 crore.

Sensex down 129 points; FMCG, PSU stocks major laggards

The Sensex and the Nifty were trading down by about 0.6 per cent in the mid-session on Monday on fresh selling by funds and retail investors ahead of RBI monetary policy review tomorrow amid bearish global cues.

At 1.37 p.m., the 30-share BSE index Sensex was down 129.17 points (0.65 per cent) at 19,619.02 and the 50-share NSE index Nifty was down 45.05 points (0.77 per cent) at 5,841.15.

Among BSE sectoral indices, FMCG, PSU, metal and banking fell the most and were down 2.66 per cent, 1.46 per cent, 1.29 per cent and 1.1 per cent, respectively.

On the other hand, IT, TECk and auto sector stocks remained investors' favourite and were up 0.89 per cent, 0.43 per cent and 0.27 per cent, respectively.

Among 30-share Sensex, Wipro, Jindal Steel, Sun Pharma, Tata Motors and Hero MotoCorp were the top five gainers, while the top five losers were HUL, Hindalco, Sterlite, Coal India and ITC.

European stocks advanced for the first time in three days as companies from Danone to Reckitt Benckiser Group Plc reported results.

Stoxx 50 was up 12.64 points or 0.46 per cent at 2,754.60, FTSE 100 rose 39.73 points or 0.61 per cent to 6,594.52 and DAX climbed 63.94 points or 0.78 per cent to 8,308.85.

Asian stocks fell, with the regional benchmark declining for a fourth day, ahead of a speech by Bank of Japan Governor Haruhiko Kuroda and monetary policy reviews from the US to Europe this week.

Nikkei slumped 468.85 points or 3.32 per cent to 13,661.10, Hang Seng shed 110.01 points or 0.5 per cent to 21,858.90 and S&P/ASX 200 was up 4.3 points or 0.09 per cent at 5,046.33.

The Federal Open Market Committee is meeting on July 30-31, with reports this week expected to show economic growth weakened in the second quarter few jobs were added this month.

The European Central Bank and Bank of England are also meeting this week, after both signalled earlier this month that they will keep the interest rates low.

Vijaya Bank Q1 net up 18.9% to Rs 132 crore

Lower provisioning and rise in net interest income behind rise in net profit
Vijaya Bank, the Bangalore-based public sector lender, on Monday reported 18.9% rise in net profit to Rs 132 crore for the first quarter ended June 30, 2013 compared to Rs 111 crore reported in the corresponding period last year.

The total income for the period went up by 16.3% to Rs 2,699 crore as against Rs 2,320 crore in the year ago period. The operating profit also recorded a rise of 27.4% to Rs 330 crore as compared to Rs 259 crore in the first quarter of last fiscal.

The rise in net profit was on account of a lower provisioning and rise in net interest income. The net interest income registered a marginal rise of 5.6% to Rs 481 crore compared to Rs 455 crore in the year ago quarter. The Bank has made a provisioning of Rs 89 crore as against Rs 130 crore in the year ago period, showing a decline of 31.5%.

The Bank's capital adequacy ratio under Basel-III stood at 10.58%. Its return on assets (annualised) remained flat at 0.48% compared to 0.46% in the year ago period.

The percentage of net non-performing assets (NPA) dipped to 1.45% in June quarter this year compared to 1.67% in June quarter last fiscal.

Reliance Power's 45 MW Wind Power Capacity at Vashpet, Maharashtra Commences Operations

Reliance Power's 45 MW Wind power capacity, in Vashpet, which is located in one of the fastest developing wind zone in Maharashtra had commenced operations. The wind project consists of 18 nos of Wind Turbine Generators having 2.5 MW of rated capacity each. The Wind Turbine Generator is based on superior German technology and is the largest turbine to be certified and installed in India on all parameters.

The power from Vashpet project would be sold to Reliance Infrastructure for distribution to Mumbai in line with regulated tariff structure of Maharashtra. The project has been set up with an investment of over Rs 300 cr. The project is already registered as a Clean Development Mechanism (CDM) project with UNFCCC and is expected to earn -1.6 million carbon credits during its operations phase.

Reliance power is already operating a 40 MW Solar PV project in Rajasthan and with the commissioning of the 45 MW Wind Power capacity, its operating renewable capacity has doubled to 85 MW. In addition, the Reliance group already has another -100 MW of wind power capacity. Reliance Power is also executing country's largest 100 MW Solar CSP power project at Rajasthan which is set to be completed in the current year.

L&T Construction Wins Rs. 8250 Cr Riyadh Metro Project

Larsen & Toubro's (L&T) subsidiary L&T Construction’s Heavy Civil Infrastructure Business has secured an order worth $1403 million from the ArRiyadh Development Authority, Kingdom of Saudi Arabia for the design, construction and commissioning of a metro project in Riyadh, Saudi Arabia.

The company has secured the order as a joint venture partner of ArRiyadh New Mobility Consortium. The total value of order is $5941.93 million. The consortium comprises Larsen Et Toubro, Ansaldo STS, Italy, Bombardier Transportation, UK, Impregito S.p.A, Italy and Nesma Et Partners- Saudi Arabia.

The project is to be implemented during a period of four years, which will be preceded by eight months to prepare the detailed designs and to carry out the enabling works, the coordination for utilities diversion and the site preparation works, and followed by months for system demonstration, trial runs and project handing over. The scope involves design, construction and commissioning of Line 3 (41 km of Driverless Train Operation) to carry approximately 5000 passengers per hour per direction.

The contract includes construction of bridges, tunnels, elevated a underground stations, depots, roads, systems for CCTV and public announcements, SCADA with allied systems, etc. This project would be the first of its kind in the Kingdom.

The rail systems will be undertaken by AnsaLdo STS and rolling stock by Bombardier Transportation. The entire infrastructure facilities together with electromechanical and plumbing systems will be executed by the integrated joint venture comprising AT, Innpregilo and Nesma.

The Consortium’s design engineering will be by Hyder an Idom and the Project Management will be done by Worley Parsons. This order was won against stiff global competition. It aligns well with L&T’s expansion plans in the international arena.

Near term pressure on Dish TV

Could see downgrades on poor June quarter performance
Dish TV stock continues to be under pressure falling a further 3% on the back of a disappointing performance in the June quarter. The stock shed over 8% on Friday. Analysts are likely to rework their estimates given June quarter numbers which were below expectations both on the operating profits level as well as on the bottom line where then company posted higher losses.

While higher content/programming costs as well as advertising expenses saw its EBITDA fall 22%, margins tanked nearly 900 bps at 21%. Given a large chunk of its costs on the satellite, transponder and maintenance as well as debt is dollar denominated, the sharp depreciation of the rupee only added to its woes. All this translated to higher losses for the company. While the bottomline was down 6% over the year ago period, it was down sharply by 30% to Rs 30 crore sequentially.

The company on its part says that the focus now is squarely on improving its profitability and with that in mind it has increased its tariffs both on the set top box as well as subscription fee. While subscription fee was hiked earlier in the quarter, set top box costs were increased this month. The company is looking at adding better quality subscribers and keep churn rates low. Given that new users are subsidised, higher entry costs and lower churn rates help cut the losses.

Some of these initiatives are paying off with free cash flows jumping 120% on a sequential basis to Rs 48 crore. With higher internal cash flows as well as cash at hand, the company is planning to reducing its debt by Rs 750 crore in the current fiscal through internal accruals.

Petronet LNG all set to commission 5 mtpa LNG terminal at Kochi

Petronet LNG is all set to commission 5 million tonnes per annum (mtpa) liquefied natural gas (LNG) terminal at Kochi in Mid August. The company is also planning to set up a third LNG terminal at Gangavaram in Andhra Pradesh, with five MTPA capacity.

At present, the company imports 7.5 million tonnes of LNG annually from RasGas and is in discussions to import more after it expands its Dahej LNG terminal in Gujarat. Further, the company is currently increasing Dahej’s capacity from 10 MTPA to 15 MTPA, and expects the expansion to be completed by December 2015.

Petronet LNG is one of the leading players in oil and natural gas industry space. It has India’s first and largest LNG supply terminal located at Dahej.

IDBI Bank launches eSBTR for on-line payment of Stamp Duties, Registration fees

IDBI Bank in partnership with the Government of Maharashtra has launched the Electronic Secured Bank Treasury Receipt (eSBTR) Project for on-line payment of Stamp Duties & Registration fees. The eSBTR system was inaugurated by Chief Minister of Maharashtra at IDBI Bank, Mumbai, on July 26, 2013.

eSBTR system would provide various benefits such as Single window payment of Stamp Duty and Registration Fee; On-line payment (no more queues and waiting in Bank Branches and adhering to Stamp Hours, Payment facility available on 24 x 7 x 365 basis) Payment without any ceiling, Ease of operation and convenience, etc.

The customer can log onto the website of the authorized bank, click the link for payment of stamp duty/Registration Fees, entering the necessary details and paying the duty through the internet banking account.

Rupee down 18 paise

The rupee on Monday lost 18 paise to 59.22 against the dollar in early trade at the Interbank Foreign Exchange market due to month-end demand of the US currency from banks and importers, ahead of RBI’s policy review on Tuesday.

Forex dealers said increased demand for the American currency ahead of the RBI’s policy review tomorrow and a weak opening in the domestic equity put pressure on the rupee but dollar’s weakness against other currencies in the global market capped the fall.

The domestic currency had gained seven paise to close at one—month high of 59.04 against the dollar on Friday as the RBI’s liquidity—tightening measures continued to lend support.

ITC aims to achieve turnover of Rs 1 lakh crore in FMCG segment

ITC, diversified business conglomerate aims to achieve turnover of Rs 1 lakh crore in its new fast moving consumer goods other than cigarettes business by 2030. During 2012-13, it has reported turnover of Rs 7,000 crore in the FMCG segment, which comprises of packaged food, personal care, education and stationary products, agarbatti, safety matches and lifestyle retail ventures - Wills Lifestyle and John Players.

The company has posted a rise of 18.05% in its net profit of Rs  1891.33 crore for the quarter ended June 30, 2013 as compared to Rs 1602.14 crore for the same quarter in the previous year. Total income has increased by 10.72% at Rs 7613.88 crore for quarter under review as compared to Rs 6876.43 crore for the quarter ended June 30, 2012.

Ajanta Pharma dips after bonus announcement

The board has recommended a bonus shares in the ratio of 1:2.

Ajanta Pharma is trading lower by 4% at Rs 986, falling over 11% from intra-day’s high, after recommending a bonus shares in the ratio of one new fully paid-up equity share for every two fully paid-up equity share.

Meanwhile, the pharmaceutical company has reported a robust 66% year-on-year (yoy) jumped in its net profit at Rs 33 crore on back of 26% yoy growth in operational revenues at Rs 219 crore for the quarter ended June 30, 2013 (Q1).

The stock opened at Rs 1,021 and hit a high of Rs 1,110 on BSE, before the announcements of bonus shares and Q1 earnings. A combined 331,362 shares have changed hands on the counter till 1118 hours on BSE and NSE.

Natco Pharma up 20% post US ruling on Copaxone patent case

Natco Pharma  shares are locked at 20 percent upper circuit Monday after the healthcare firm received favourable US ruling on Copaxone patent case.

"We are pleased to announce the US Court of Appeals for the Federal Circuit ruling, reversing a district court's finding related to Teva's US patent for Copaxone," Natco said in its filing.

Copaxone (Glatiramer Acetate) is used in treatment of relapsing-remitting multiple sclerosis.

According to a release, the product is estimated to have clocked revenues in USA, of about USD 3.45 billion during 2012.

After this favourable ruling, the company may now launch generic Copaxone through its marketing partner Mylan in May 2014.

Coal India inks 82 FSAs for about 34,793 MW capacity Power Plants

Coal India (CIL) has signed 82 Fuel Supply Agreements (FSAs) as on July 25, 2013, with power stations with a capacity of 34,793 MW. This includes 16 power stations belonging to NTPC and its joint venture companies (JVs). Besides, 11 more FSAs are ready to be signed shortly with NTPC or its JVs, while another 23 FSAs with state and private sector entities are in the pipeline. These FSAs were part of the 131 FSAs for a capacity of 60,678 MW which CIL was directed to sign in February, 2012. This will substantially increase the power generation during the current and subsequent years.

Besides, the Ministry of Coal has issued another Presidential Directive to CIL on July 17, 2013 for signing of FSAs for a capacity of 78,000 MW instead of the earlier 60,678 MW. This will not only increase the power generation further but will also fast track several power projects which are under development.

Coal India is the world’s largest coal mining company. It also produces non-coking coal and coking coal of various grades for diverse applications.

Dena Bank seeks Rs 2,000 crore capital infusion from central government

Dena Bank, public sector lender is looking for Rs 2,000 crore capital infusion from the Central government, in order to support its future loan growth as the tier-I capital of the Bank fell below 8% by the end of June quarter. The bank’s capital adequacy ratio stood at 11.12% even as tier-I capital, which is critical to support loan growth, fell below 8% to 7.28%. In the last fiscal, the public sector lender had requested for Rs 1,200 crore of capital infusion from the government.

The bank’s net profit for the Q4FY13 declined by 50.68% at Rs 125.67 crore as compared to Rs 254.79 crore for the Q4FY12. However, its total income has increased by 17.23% to Rs 2539.74 crore for the quarter from Rs 2166.36 crore for the corresponding quarter of the previous year.

Sensex down 39 points in early trade

The BSE benchmark Sensex on Monday fell over 39 points in early trade, extending losses for the fourth straight session, due to increased selling by funds ahead of RBI’s policy review tomorrow amid a weak trend in other Asian markets.

The 30-share barometer fell by 39.37 points, or 0.19 per cent, to 19,708.82. The index had lost nearly 555 points in the previous three sessions.

Stocks of banking, FMCG, realty, metal and capital goods sectors were major losers, pulling down the benchmark Sensex.

The wide-based National Stock Exchange index, Nifty moved down by 16.19 points, or 0.28 per cent, to 5,869.30.

Brokers said selling by funds and other participants ahead of Reserve Bank of India’s monetary policy review to be announced tomorrow and a weak trend in the Asian region, mainly dampened the trading sentiment here.

In the Asian region, Hong Kong’s Hang Seng index traded lower by 0.51 per cent, Japan’s Nikkei Index fell 2.33 per cent, in early trade.

The US Dow Jones Industrial Average ended 0.02 per cent higher on Friday.

ONGC inks MoU with RIL on Eastern Offshore facility sharing arrangement

Oil and Natural Gas Corporation (ONGC) has inked a memorandum of understanding (MoU) with Reliance Industries (RIL) to explore the possibility of sharing the latter’s infrastructural facility in the East Coast. The MoU aims at working out the modalities for sharing of infrastructure, identifying additional requirements as well as firming up the commercial terms.

This shall not only minimize ONGC’s initial Capex but also expedite its field development resulting in early monetization of its deep water fields adjacent to the fields of RIL. The companies intend to enter into a formal agreement after conducting a joint study which will be spread over the next nine months.

ONGC, the country’s largest oil & gas producer, has drawn a roadmap to make substantial investment over a period of next five years both in exploration & developmental activities, and deepwater exploration and development constitutes a major component of the same. Under this plan, ONGC has a conservative estimate to produce about 6 to 9 MMSCMD of gas by mid-2017 from G-4, KG-DWN - D & E fields in the first phase.

Dr Reddy'S launches Donepezil Hydrochloride tablets

Dr. Reddy’s Donepezil Hydrochloride Tablets, 23 mg is available in bottle count sizes of 30 and 90.

Dr. Reddy’s Laboratories announced that it has launched Donepezil Hydrochloride Tablets, 23 mg,  a therapeutic equivalent generic version of ARICEPT®, 23 mg in the US market on July 26, 2013, following the approval by the United States Food & Drug Administration (USFDA) of Dr. Reddy’s ANDA for Donepezil Hydrochloride Tablets, 23 mg.

The ARICEPT, 23 mg brand had U.S. sales of approximately $92.6 Million MAT for the most recent twelve months ending in May 2013 according to IMS Health*.

Dr. Reddy’s Donepezil Hydrochloride Tablets, 23 mg is available in bottle count sizes of 30 and 90.

FIIs pull out Rs 18,500 cr from Indian capital market in July

Overseas investors have pulled out nearly Rs 18,500 crore (about $ 3 billion) from the Indian capital markets so far this month, amid concerns over the US Fed policy and the depreciating rupee.
   
The outflows as of July 26 were about Rs 12,081 crore ($ 2 billion) from the debt market and Rs 6,394 ($ 1 billion) from equities, according to data on net FII investments with market regulator Sebi.
   
Foreign institutional investors (FIIs) had withdrawn a record Rs 44,162 crore ($ 7.5 billion) from the debt and equities markets in June.
   
The weakness in the Indian currency was instrumental in overseas investors exiting the debt markets as the rising cost of hedging a volatile rupee hurts the yield differential the FIIs work with, according to market experts.
   
The rupee slumped to a lifetime low of 61.21 (intra-day) against the US dollar on July 8. Since April 30, the rupee has depreciated by about 13%. The currency closed at 59.04 against the dollar on Friday.
   
That apart, there was turmoil in the global markets after the US Federal Reserve said it may taper the $ 85-billion-a -month bond purchase programme later this year and end it next year if the US economic recovery is up to its expectations.
 
The Fed's loose monetary policy has driven asset prices higher, including those in emerging markets, and fears are that inflows may be hit if the US monetary stimulus comes to an end.
   
FIIs had been aggressive buyers of bonds in the first five months of 2013 on account of higher yields offered by the government and corporate debt. The debt market witnessed a net inflow of almost Rs 25,000 crore in January-May this year.
   
So far this year, foreign investors have pulled out a net Rs 21,169 crore ($ 3.2 billion) from the debt market, while foreign investment in the country's equity market is a net Rs 65,785 crore ($ 12.4 billion).
   
As of July 26, the number of registered FIIs in the country stood at 1,756 and the total number of sub-accounts at 6,426. 

Government gets Rs. 1,770-crore investment proposal for telecom products

: The government has received a Rs. 1,770-crore investment proposal from a domestic company for the manufacturing of telecom products.

"Our policies have attracted investors. The aim of the government is to reduce dependence on imports. In total investment that we have received so far there is Rs. 1,770 crore proposal from an Indian firm for manufacturing telecom products," DEITY Joint Secretary Ajay Kumar told PTI.

Without disclosing the name of the firm, Mr. Kumar said that the application is in process and is expected to be approved by inter-miniterial panel within a month.

The Department of Electronics and Information Technology under National Policy on Electronics 2012 and further strengthened by National Telecom Policy 2012 has so received investment proposal of Rs. 4,595 crore for electronics manufacturing which includes telecom and IT products.

The proposal by the domestic company is the biggest among proposals that government has received so far for indigenous manufacturing, an industry source said.

"Government has come up with good policies but recent rethinking by it on Preferential Market Access Policy is enough to shake investor's confidence. Telecom sector has already seen dip in investments due to regulatory uncertainity," the source said.

The Cabinet in February last year approved the PMA policy seeking to give preference to domestically manufactured electronic products which have security implications and for government procurement also.

The PMO has put on hold the policy, and said that it will 'revisit and review' the entire policy on providing preference to domestically manufactured electronic goods.

According to regulator Trai, only 12-13 per cent of all local products made with the aid of foreign vendors were used in the sector during 2009-10. However, purely India-made products formed just 3 per cent of the market.

Out of the total investment proposal received for domestic manufacturing, government has cleared proposals worth Rs. 961 crore which inlcudes invetsment from Bosch Electronics, Samsung and an Indian firm Sahasra Electronics.

Some of the other investments proposal inlcude Rs. 450 crore for manufacturing of consumer electronics, Rs. 310 crore LEDs and LED Products, Rs. 45 crore for electronics components, Rs. 610 crore automotive electronics, Rs. 40 crore power electronics, Rs. 210 crore strategic electronics and Rs. 750 crore for semiconductor test and packaging.

Markets may open with marginal gains

Markets are expected to open tad higher today but further gains could be capped as investors may remain cautious ahead of the Reserve Bank of India’s monetary policy tomorrow.

At 8:15AM, the SGX Nifty was up trading flat at 5,917.

According to the technical charts, "Key momentum oscillators are in favour of the bears, hence the markets may face downward pressure in the near term. On Monday, the Nifty may seek support around 5,855-5,840, while face resistance around 5,915-5,935."

Meanwhile Asian shares dropped in early trades on expectations of dovish comments from the US Federal Reserve after a policy review this week.

Among the key Asian indices, Japan’s Nikkei was down  2% to 13,880.

On Friday, US stocks ended higher on expectations of stimulus.

The Dow Jones Industrial Average rose 3.22 points, or 0.02 percent, to end at 15,558.83. The Standard & Poor's 500 Index gained 1.40 points, or 0.08 percent, to finish at 1,691.65. The Composite Index advanced 7.98 points, or 0.22 percent, to close at 3,613.16.

Domestically, in the earnings calendar we have Colgate Palmolive, IDFC set to unveil their first quarter results later today.

Following stocks are expected to move on the exchanges today:

Coal India Ltd (CIL) has signed fuel supply pacts with NTPC's 16 power plants and joint ventures, while 11 more agreements with the power major and its JVs are being processed.

As part of its cost cutting exercise, RP Sanjiv Goenka group flagship company CESC is set to get delisted from London Stock Exchange (LSE).   The market of the company's shares in UK has practically frozen and the dealings in the shares in recent years has been very low.

Wipro on Friday posted a net profit of Rs 1,081.2 crore,up 20.8% from the same period last year. The company's revenue was reported at Rs 8,741 crore compared to Rs 8,314 crore, up 5.1%.

Private power utility JSW Energy today posted a higher net profit of Rs 214.26 crore in the three months ended June 2013, primarily driven by higher income.   The Sajjan Jindal-led company had a net profit of Rs 3.41 crore in the year-ago period.  

RPG Life Sciences today reported over 19-fold increase in net profit at Rs 54.69 crore for the first quarter ended June 30, 2013. The company had posted a net profit of Rs 2.79 crore during the same period of previous fiscal.

Mahindra Lifespace Developers, the realty arm of Mahindra Group, today said it has entered into a joint venture with a investment arm of UK's Standard Chartered Bank to develop residential properties in the country.

Sensex down 44 points; Metal, PSU stocks lose shine

The Sensex and the Nifty were trading down by over 0.2 per cent in the mid-session on Friday due to heavy selling in metal, banking, realty and PSU stocks amid firm European cues.

At 2.25 p.m., the 30-share BSE index Sensex was down 44.41 points (0.22 per cent) at 19,760.35 and the 50-share NSE index Nifty was down 17.1 points (0.29 per cent) at 5,890.40.

Among BSE sectoral indices, metal index fell the most by 3.69 per cent, followed by PSU 1.54 per cent, realty 1.51 per cent and banking 1.38 per cent.

On the other hand, consumer durables, healthcare, oil & gas and IT indices remained investors' favourite and were up 0.16 per cent, 0.13 per cent, 0.03 per cent and 0.02 per cent, respectively.

Among 30-share Sensex, ITC, Sun Pharma, Hero MotoCorp, M&M and HDFC were the top five gainers, while the top five losers were Hindalco, Sterlite, Coal India, HUL and Maruti.

European stocks were heading for their longest stretch of weekly gains this year, as companies from LVMH Moet Hennessy Louis Vuitton SA to Kering SA reported faster quarterly sales growth.

Stoxx 50 was up 9.79 points or 0.36 per cent at 2,750.08, FTSE 100 was up 4.85 points or 0.07 per cent at 6,592.80 and DAX was down 8.24 points or 0.1 per cent at 8,290.74.

Most Asian stocks were down, with the regional benchmark index trimming a fifth weekly advance, as Japanese shares dropped amid disappointing earnings.

Nikkei plunged 432.95 points or 2.97 per cent to 14,130.00, while Hang Seng was up 2.20 points or 0.01 per cent at 21,903.20 and S&P/ASX 200 was up 6.39 points or 0.13 per cent at 5,042.

Global stocks have been see-sawing as investors examine US economic data to try and gauge when the Federal Reserve will start scaling back its $85-billion-a-month bond-buying programme.