Sandur Manganese hits 52-week high as JSW Steel eyes stake

Sandur Manganese and Iron Ore has soared 18% to Rs 593, in otherwise extremely weak market, on reports that JSW Steel is planning to acquire stake in the company.

The stock opened at Rs 560 and hit a 52-week high of Rs 597 on BSE. Around 132,000 shares already changed hands on the counter so far against an average 28,000 shares that were traded daily in past two weeks on BSE. The benchmark Sensex was down 1% at 19,834 at 1358 hours.

“Sajjan Jindal promoted JSW Steel, is in talks to purchase a significant stake in Sandur Manganese and Iron Ores in Karnataka to improve its access to iron ore and cut logistics costs,” the Economic Times report suggests.

The promoter's of JSW Steel, which currently holds 74.28% stake in the company have been planning for divestment and have appointed investment banker Edelweiss Financial Services to search for a buyer, added report.

IL&FS Engineering gets LoI worth Rs. 284.04 cr

IL&FS Engineering and Construction Company Ltd has informed BSE regarding "Intimation for receipt of LOI worth Rs. 284.04 Crores for Rural Electrification works in Uttar Pradesh". IL&FS Engineering and Construction Company has received Letter of Intent (LoI) from Madhyanchal Vidyut Vitran Nigam for rural electrification works in Ambedkarnagar district of Utter Pradesh on a turnkey basis under Govt of India scheme of Rajiv Gandhi Grameen Vidyutikaran Yojana Phase- II. The total value of the contract is Rs 284.04 crore.

NIIT Tech Q1 revenue up 15%

NIIT Technologies Limited, a leading global IT solutions organization, today announced its financial results for the quarter ended in June 30, 2013 with a revenue increase of 15.4% over the same period last year to Rs. 541.9 Crores. Operating Profits stood at Rs. 78.2 Crores, representing a YoY growth of 4.1%.
 Rs. 5.4 Crores of dividend tax was paid for repatriation of dividend from overseas subsidiaries during the quarter which contributed to the net profit decline. This one-time opportunity was available during the quarter to offset taxes paid from dividend distribution tax payable for FY2013.
“Revenues grew 0.9% sequentially during the quarter,” said Mr. Arvind Thakur, CEO, NIIT Technologies Ltd. He further added, “Robust intake of USD 145mn during the quarter will sustain further growth during the year.”
Fresh orders of USD 145Mn were secured during the quarter leading to USD 263Mn worth of orders executable over the next 12 months. This includes a $15Mn contract renewal with a Travel and Transportation client in USA and a prestigious win of $60Mn to implement State-of-the-Art Airport Operations Control Centers (AOCC) across 10 airports in India with Airports Authority of India.
Five new clients were added during the quarter, two in India, one each in USA, EMEA and APAC, all in the Travel and Transportation segment.
Operating margins declined 202bps sequentially to 14.4% primarily on account of wage hikes implemented from April 01 2013.
“We see good signs of recovery in the U.S. and strong traction in the domestic market, while Europe continues to exhibit weakness” said Mr. Rajendra S. Pawar, Chairman, NIIT Technologies Ltd. 
The contribution to the total revenues from the U.S. increased to 39% while that from EMEA stood at 35%. The revenue share from rest of the world improved to 26%. Among industry segments, Travel and Transportation contributed to 36%, BFSI was 30% and Manufacturing/Distribution contributed to 7% to the revenue mix.
During the quarter the Company launched a major culture change initiative to provide exceptional value to its customers and build sustainable competitive advantage. The initiative involves several interconnected building blocks covering all aspects of the organization leading to uplifting service levels. Over 2000 employees have already been educated to realize the Company’s service vision – “New Ideas, More Value”, and the rest of the organization would be covered during the year.
Total headcount increased to 8,207 at the end of the quarter under review, with steady attrition maintained at 12.36%.

Oil Min to seek Rs 60-70k cr relief for OMCs

The Oil ministry is likely to seek Rs 60,000-70,000 crore compensation from the finance ministry for oil marketing companies in FY14, exclusive sources told CNBC-TV18.

The oil ministry is of the opinion that Rs 20,000 crore compensation proposed earlier is not sufficient considering the scenario wherein crude has got expensive due to the falling rupee. However, there is a case of diesel, liquefied petroleum gas (LPG) price hike but no formal proposal has been submitted so far, sources further said.

State-run retailers sell diesel, kerosene and cooking gas at government-dictated prices, which is often below market rates and a major chunk of the revenue losses is compensated by the government, while balance is shared between state-run upstream companies and fuel retailers like Bharat Petroleum , Hindustan Petroleum and Indian Oil Corp .

Meanwhile, oil minister Veerappa Moily has said, there is no immediate plan to relax diesel pricing norms. The minister has so far maintained that the quantum of hike will not increase and a 50 paise/litre hike is not huge.

The minister has a few days back said that diesel prices would not be increased by a higher quantum despite a depreciating rupee. Oil marketing companies (OMCs) will only be allowed to increase diesel prices by the mandated quantum of 45 paise to 50 paise per litre, he had said.

Since January this year, HPCL.BPCL and IOC have started raising diesel price by not less than 50 paise/litre as directed by the government.

These companies last hiked price on July 1 and diesel now cost Rs 57.61 in Mumbai and around Rs 50.84 in New Delhi.

Sun TV Network to acquire ABCL for Rs 150 crore

The Kalanithi Maran-controlled Sun TV Network is reportedly set to acquire Hyderabad-based Associated Broadcasting Company (ABCL) for about Rs 150 crore. The Mauritius-based private equity firm Saif Partners has substantial stake in the company, and is looking to exit.

ABCL manages a chain of regional news channels under the brand TV9 and has six news channels, one in Telugu, two in Kannada, and one each in Gujarati, Marathi and English. TV9 is the market leader in the news genre in Andhra Pradesh and Karnataka, with a considerable lead over other news channels.

Essar Projects wins EPC contract from BPCL

Essar Projects Limited (EPL), a Global EPC (Engineering, Procurement, Construction) company headquartered in Dubai, announced that it has secured a contract valued at over Rs. 550 crores from Bharat Petroleum Corporation Limited (BPCL) to participate in its major refinery expansion project in Kochi.
EPL has won the contract in a consortium with GR Engineering of Mumbai for the Engineering, Procurement & Construction (EPC) of the Reactor Regenerator package of 2.2 MMTPA Fluid Catalytic Cracking Unit (FCCU) at the Kochi refinery, which is set to expand to 15.5 MMTPA. The project is scheduled to be completed in 24 months. M/s. Technip Shaw is the Process Licensor of this package.
With this the total number of major projects secured by EPL both domestic and overseas has gone up to eight, taking the total order book to about USD 4.1 billion. EPL is executing significant hydrocarbon projects for major companies like IOCL, Jurong Aeromatics, Matix fertilizers to name a few.
Alwyn Bowden, President & CEO, Essar Projects said, “We are very pleased with this significant first award from BCPL which further consolidates our position in the hydrocarbons sector in India.”
The scope of work and obligations comprise of project management, residual process design, residual engineering of Reactor Regenerator, procurement & supply of all materials, stage wise inspection including third party inspection, transportation of all the equipment & materials to work site, erection, installation, pre-commissioning, commissioning, commissioning assistance, testing for performance guarantee in presence of Licensor and Owner Representative etc.
Amit Gupta- CEO, Hydrocarbons Business of Essar Projects said, “Essar Projects secured this order amidst extremely stiff competition and demonstrates our competence and capability in delivering complex projects to our key clients in the Hydrocarbons sector.”
Bharat Petroleum Corporation Limited (BPCL) – Kochi is in the process of expanding the refinery facilities from 9.5 to 15.5 MMTPA as part of the Integrated Refinery Expansion Project (IREP) for which Engineers India Limited (EIL) has been appointed as Project Management Consultant (PMC) for the project.

Economy likely to grow at 6% in FY14

India's economy is likely to grow at 6% or slightly more for the current fiscal year to March 2014, Finance Minister P Chidambaram said on Tuesday.

He said that RBI's steps to curb rupee liquidity are aimed at quelling excessive speculation and volatility in the forex market and should not be read as a prelude to policy rate changes.

"These measures (RBI decisions) should not be read as prelude to any policy rate changes. This has nothing to do with upcoming policy review of RBI...I don't expect banks to increase interest rates as a result of yesterday's measures" Chidambaram said at a press conference here.

The RBI announced measures late on Monday to curb the rupee's decline by tightening liquidity and making it costlier for banks to access funds from the central bank.

Chidambaram also said he hoped parliament would approve the real estate regulator and land acquisition bills in its monsoon session, which is due to begin in the first week of August.

He said that the government has taken a number of measures on the economic front in the last few months. Like, he said many steps have been taken to improve exports and coal and gas production.

He said that government has hiked its investment in the public sector enterprise significantly and has invested Rs 1.15 lakh crore in PSUs in 2012-13.

Chidambaram added that another round of telecom spectrum auction will be held shortly.

On DBT, he said that all LPG consumers will get subsidy in banks accounts through DBT by end of year.

Oil prices edge higher in Asian trade

Oil prices edged higher in Asian trade today as investors anticipated a fall in US crude inventories for the third consecutive week, renewing hopes of resurgent demand, analysts said.

New York's main contract, West Texas Intermediate light sweet crude for delivery in August, gained eight cents to $106.40 a barrel in morning trade, while Brent North Sea crude for August delivery was up seven cents to $109.16.

"Investors think there is potential for the US crude stockpiles to dip further, and that is putting upward pressure on prices," Jason Hughes, head of sales trading at CMC Markets in Singapore, told AFP.

Oil inventories in the United States have fallen more than 20 million barrels over the last two weeks, according to data from the Energy Information Administration (EIA).

The rapid drawdown in US crude stocks comes amid the country's busy driving season, when Americans take to the roads for their annual summer holidays.

The EIA will release the official crude inventory data for the week to July 12 later Wednesday.

Gains over upbeat sentiment about crude demand in the US have however been limited by a stronger dollar and concerns that the US central bank will taper off its economic stimulus measures soon, Hughes said.

Dollar-priced oil becomes more expensive for holders of weaker currencies if the greenback strengthens, denting demand and putting downward pressure on prices.

"There also remains some concern that all the upbeat sentiment about the US economy will translate to stimulus tapering by the Fed," Hughes said.

Sasken gains on joining Microsoft's Windows Embedded Partner Program

Sasken Communication Technologies is currently trading at Rs. 123.90, up by 5.80 points or 4.91% from its previous closing of Rs. 118.10 on the BSE.

The scrip opened at Rs. 122.50 and has touched a high and low of Rs. 125.20 and Rs. 121.00 respectively. So far 1,632 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 159.50 on 03-Apr-2013 and a 52 week low of Rs. 110.00 on 09-Nov-2012.

Last one week high and low of the scrip stood at Rs. 121.00 and Rs. 110.10 respectively. The current market cap of the company is Rs. 263.00 crore.

The promoters holding in the company stood at 36.42% while Institutions and Non-Institutions held 1.24% and 62.34% respectively.

Sasken Communication Technologies has entered into the Windows Embedded Partner Program (WEPP). This move enables Sasken to offer a vast array of Windows Embedded software development services and solutions to device OEMs. Sasken provides R&D services and solutions with exclusive focus on the communications space by addressing the needs of embedded, ruggedized devices, automotive, health care, enterprise, retail, independent service vendors and operator industry segments.

The company is looking to leverage Microsoft's technologies, roadmaps and ecosystem to provide value to its customers. This partnership will enable the company to develop relevant and customized solutions for customers, while maintaining cost effectiveness, ultimately adding value to end consumers.

About Sasken Communication Techonologies :
Sasken Communication Technologies offer a range of services in areas of research and development consultancy, wireless software products and software services, and works with network OEMs, semiconductor vendors, terminal device OEMs and operators across the world.

Crompton Greaves gains on commencement of buyback offer

The company plans to purchase more than 21.2 million shares at a maximum price of Rs 125 per share.

Crompton Greaves is trading higher by 3.4% at Rs 92, in otherwise weak market, on the commencement of buyback offer today. The offer will be closes on January 15, 2014.

The company plans to purchase more than 21.2 million shares at a maximum price of Rs 125, valuing the offer at about Rs 266 crore.

According to earlier schedule the offer was expected to open on July 15, but postponed by one day to incorporate amendments suggested by the market regulator Securities and Exchange Board of India (Sebi).

Currently, the promoters held 41.69% stake in the heavy electrical equipment maker. Domestic institutional investors (DIIs) having 23.69% stake, foreign institutional investors held 15.24% holding, while the remaining 19.38% stake are with the individual public shareholders and others.

Ashok Leyland: Updates on shares pledge by promoter

Ashok Leyland Ltd has submitted the disclosure under Regulation 8A of SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 1997 to BSEDate of Reporting : -Name of the Company : Ashok Leyland LtdTotal no of outstanding shares of the Company : 2660676634Name of the Entity : Hinduja Automotive LtdDetails of Transaction Date of Transaction : -Number of Shares Pledged : 237052102Aggregate details after the transaction Total no of shares held by the entity in the company : 1356437564Total No of shares pledged : 474104204% of total shares pledged to total no f shares held by the entity in the Company :34.95%% of shares pledged to total no of outstanding shares of the Company

RBI hikes short term interest rates

The hike in marginal standing facility to 10.25% may also make home loans and auto loans expensive.

In order to arrest the speculation of rupee and attract dollars in India, the Reserve Bank (RBI) on Monday said that it would limit its lending of overnight funds to banks to Rs. 750 billion. If banks need more, they will have to pay a higher interest rate of 10.25%.

The move is expected to push up short-term borrowing for companies by a couple of percentage points and cause huge losses for bond investors.

According to banks, an instant outcome of this would be that the cost of overnight funds would cross 10% as their current overnight borrowing is over Rs. 930 billion. 
This, in turn, would translate into higher short-term borrowing for companies. The Sensex which crossed 20,000 on Monday on hopes of a rate cut triggered by lower inflation could lose its gains as hopes of a rate cut have vanished.

The central bank said that it has raised the interest rate under its marginal standing facility (MSF) by two percentage points. The MSF is an emergency lending mechanism by which banks get funds when they exhaust their regular limits which have now been collectively capped at Rs. 750 billion. 

RBI Governor D Subbarao raised the cost of borrowing under the MSF by 200 basis points and narrowed the window of borrowing for banks from it to just 1% of deposits at Rs. 750 billion citing the need to "restore stability to the foreign exchange market". These measures will force banks to seek funds from markets and offer higher rates for depositors. 

As a result, interest rates on short-term borrowings, commercial papers, deposit rates and loans rates may go up 25-50 basis points in the next few weeks.

On Monday, banks had borrowed Rs. 923.20 billion from RBI. However from tomorrow, their borrowing is restricted to Rs. 750 billion. Banks may struggle to meet its shortfall of funds.

The measures were declared after Reserve Bank of India (RBI) governor D Subbarao cancelled an event in Mumbai yesterday as he was called to meet Union Finance Minister P Chidambaram and Prime Minister Manmohan Singh in Delhi.

The rupee slipped below its psychological 60-mark on Monday, despite stringent trading restrictions by RBI.

India's main policy interest rate, the repo rate, is unchanged at 7.25%.

The hike in marginal standing facility to 10.25% may also make home loans and auto loans expensive.


The Reserve Bank will continue to closely monitor the markets, the liquidity situation and the macroeconomic developments and will take such other measures as may be necessary, consistent with the growth-inflation dynamics and macroeconomic stability 

RBI announces measures to address exchange rate Volatility

The market perception of likely tapering of US Quantitative Easing has triggered outflows of portfolio investment, particularly from the debt segment. Consequently, the Rupee has depreciated markedly in the last six weeks. Countries with large current account deficits, such as India, have been particularly affected despite their relatively promising economic fundamentals. 

The exchange rate pressure also evidences that the demand for foreign currency has increased vis-a-vis that of the Rupee in part because of the improving domestic liquidity situation.

Against this backdrop, and the need to restore stability to the foreign exchange market, the following measures are announced:

The Marginal Standing Facility (MSF) rate is recalibrated with immediate effect to be 300 basis points above the policy repo rate under the Liquidity Adjustment Facility (LAF). Consequently, the MSF rate will now be 10.25 per cent.

Accordingly, the Bank Rate also stands adjusted to 10.25% with immediate effect.

The overall allocation of funds under the LAF will be limited to 1.0 per cent of the Net Demand and Time Liabilities (NDTL) of the banking system, reckoned as Rs. 75,000 crore for this purpose. The allocation to individual banks will be made in proportion to their bids, subject to the overall ceiling. This change in LAF will come into effect from July 17, 2013.

The Reserve Bank will conduct Open Market Sales of Government of India Securities of Rs. 12,000 crore on July 18, 2013. Details of the securities included for the OMO sale auction will be announced through a separate press release tomorrow.

The Reserve Bank will continue to closely monitor the markets, the liquidity situation and the macroeconomic developments and will take such other measures as may be necessary, consistent with the growth-inflation dynamics and macroeconomic stability

Tata Motors Group global wholesales at 84,458 in June 2013

Tata Motors Ltd has informed BSE regarding a Press Release dated July 15, 2013 titled "Tata Motors Group global wholesales at 84,458 in June 2013". The Tata Motors Group global wholesales in June 2013, including Jaguar Land Rover, were 84,458. Cumulative wholesales for the fiscal were 247,501. Global wholesales of all commercial vehicles - Tata, Tata Daewoo and the Tata Hispano Carrocera range -- were 41,577. Cumulative commercial vehicles wholesales for the fiscal were 120,206. Global wholesales of all passenger vehicles in June 2013 were 42,881. Cumulative passenger vehicles wholesales for the fiscal were 127,295. Global wholesales of Tata passenger vehicles in June 2013 were 12,345. Cumulative wholesales for the fiscal were 36,675. 

Asian markets were trading lowe

Asian markets were trading lower. China's Shanghai Composite shed 0.23 percent or 4.71 points at 2,054.68. Hong Kong's Hang Seng was down 0.14 percent or 30.17 points at 21,273.14. Japan's Nikkei added 0.73 percent or 105.34 points at 14,611.59. Singapore's Straits Times was flat at 3,234.90.

In the US, markets finished modestly higher in lackluster trading as investors digested a handful of mixed economic data and ahead this week's slew of earnings reports. The US markets have seen eight straight days of gains so perhaps a pause is inevitable. The CBOE Volatility index closed below 14.

On the earnings front in the US, Citigroup rose after the financial giant delivered another positive surprise in the banking sector, posting profit of USD 1.25 per share against estimates of USD 1.17. Other financials slated to post quarterly results this week include Goldman Sachs, Bank of America and Morgan Stanley.

Retail sales rose just 0.4 percent in June missing expectations for a gain of 0.8 percent. Meanwhile, growth in New York state's manufacturing sector accelerated to 9.46 in July from 7.84 in June.

In Europe, major indices close higher after China GDP relief. In Europe, the top three political parties in Portugal set a deadline of July 21 to push through bailout reforms. Meanwhile, French President Francois Hollande said Europe's second-largest economy was recovering.

India removes trading bands for govt bonds for Tuesday

The trading band for government bonds has been removed for Tuesday, the Fixed Income Money Market and Derivatives Association of India, or FIMMDA, said on its website.

The move is likely in anticipation of a spike in Indian bond yields after the Reserve Bank of India late on Monday announced measures to manage volatility in the rupee, including lifting two interest rates by 200 basis points each and a planned sale of 120 billion rupees of government bonds on July 18, dealers said.

Usually, government bonds have a trading band of 15, 10 and 7.5 basis points depending on maturity.

The benchmark 10-year government bond yield closed at 7.55% on Monday.

Pre-market: Markets to open lower on weak Asian cues

Stock markets are expected to open lower, amid weak Asian cues, on account of profit taking after rising to over 1-month high on Monday.

In a move to check the currency's volatility, the Reserve Bank of India has decided to lower rupee liquidity in the system by capping the liquidity adjustment facility at (LAF) Rs 75,000 crore from Wednesday.

RBI has also decided to conduct open-market sales of government securities worth Rs 12,000 crore on July 18 which will further suck rupee liquidity out of the system.

At 8:30AM IST, SGX Nifty was down 101 points at 5930.

According to the technical charts “Huge built-up was seen in 5800-6000 puts but with IV's remaining at higher levels despite markets going up, we believe its blend of both long and short formation. ”.

Meanwhile Asian shares rose in early trades after lower-than-expected retail sales in US raised hopes that the Federal Reserve will continue with its stimulus.

US retail sales increased 0.4 percent last month, half of the rise economists polled by Reuters had forecast, according to US government released on Monday

Among the key Asian indices, Japan’s Nikkei was up 1% to 14,633, Singapore’s Straits Times gained 0.4% to 3,250 in the opening deals.

Overnight, US stocks rallied on expectations of stimulus.

The Dow Jones industrial average rose 19.96 points, or 0.13 percent, to 15,484.26, a record closing high. The Standard & Poor's 500 Index gained 2.31 points, or 0.14 percent, to finish at 1,682.50, also a record. The Nasdaq Composite Index advanced 7.41 points, or 0.21 percent, to end at 3,607.49 - its highest close since September 2000.