Markets pare early gains, bank shares weigh

Markets slipped into negative terrain in late noon deals weighed down by profit taking in bank shares.   

At 2:15PM, the Sensex was down 46 points at 19,805 and the Nifty was down 24 points at 5,931.

Asian shares ended mixed on Wednesday ahead of a congressional testimony by Federal Reserve Chairman Ben Bernanke, which could offer clarity on when the U.S. central bank will reduce its stimulus, while the dollar came off a three-week low. The Shanghai Composite and Straits Times ended marginally lower while Nikkei and Hang Seng ended up 0.1-0.3% each.

European markets have started off marginally higher with all the major indices trading in the green. DAX and FTSE were trading marginally higher while the CAC was trading flat with negative bias.

BSE FMCG index was the top gainer among the sectoral indices on the BSE, up 1.8% followed by oil and gas indices. Most other indices were trading lower with Realty, Bankex and Capital Goods indices among the top losers.

Sensex gains were led by FMCG majors ITC and Hindustan Unilever up 2-5% each. Software majors such as Infosys and TCS were up 0.6-1.5% each.

Other Sensex gainers include, Reliance Industries and HDFC.

Bank shares extended losses after the Reserve Bank of India (RBI) announced a slew of measures to address exchange rate volatility. ICICI Bank, HDFC Bank and SBI were down 1.5-2.7% each.

Auto majors Tata Motors and Maruti Suzuki were down 1.5-3.7% each.

Among other stocks, Eicher Motors is trading higher by nearly 3% at Rs 3,894 after the overseas investors have increased their stake in the company by over 3 percentage points during April-June quarter.

The BSE Mid-cap and Small-cap indices were trading marginally lower.

Gold futures edge marginally higher on MCX

Gold futures were trading marginally higher on MCX as traders enlarged their positions, tracking firming trend in spot market on increased demand for jewellery, coins and gold bars. Besides, a firming trend in overseas markets after a rise in consumer prices in the U.S. boosted the appeal of the yellow metal, a hedge against inflation, also influenced the domestic gold prices. However, some investors awaited clear direction from the Federal Reserve regarding its stimulus measures which could impact the sentiment.

The contract for August delivery was trading at Rs 26539.00/10 GRMS, up by 0.26% or Rs 70.00 from its previous closing of Rs 26469.00/10 GRMS. The open interest of the contract stood at 12643.00 lots

The contract for October delivery was trading at Rs 26638.00/10 GRMS, up by 0.16% or Rs 43.00 from its previous closing of Rs 26595.00/10 GRMS. The open interest of the contract stood at 4681 lots on MCX.

Eicher Motors hits record high on FIIs buying

Eicher Motors is trading higher by nearly 3% at Rs 3,894 after the overseas investors have increased their stake in the company by over 3 percentage points during April-June quarter.

The stock opened at Rs 3,825 and hit a record high of Rs 3,945 on NSE. A combined 98,368 shares have changed hands on the counter till 1250 hours against two week average of 27,000 shares on NSE and BSE.

Foreign institutional investors (FIIs) holdings in two-three wheeler maker have increased to 15.96% in June quarter from 12.88% at the end of March quarter. The overseas investors held 7.84% stake in the company in June 2012 quarter.

Fidelity Investment Trust Fidelity Series Emerging Market and Tree Line Asia Master Fund (Singapore) PTE Ltd have increased their stake to over 1% each in June quarter against nil holding in previous quarter. Meanwhile, the domestic institutional investors’ holdings in the company declined to 8.89% from 11.82% during the quarter.

The stock has outperformed the market by surging 27% as compared to 1.3% rise in benchmark CNX Nifty since May 13 this year, on reporting more-than-double standalone net profit at Rs 97.20 crore for the quarter ended March 2013.

Heidelberg Cement surges on plan to expand manufacturing capacity to 15 mtpa

Heidelberg Cement India is currently trading at Rs. 42.00, up by 0.50 points or 1.20% from its previous closing of Rs. 41.50 on the BSE.

The scrip opened at Rs. 41.70 and has touched a high and low of Rs. 42.45 and Rs. 41.15 respectively. So far 5067 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 60.05 on 07-Dec-2012 and a 52 week low of Rs. 32.15 on 17-Jul-2012.

Last one week high and low of the scrip stood at Rs. 44.30 and Rs. 41.20 respectively. The current market cap of the company is Rs. 947.24 crore.

The promoters holding in the company stood at 68.55% while Institutions and Non-Institutions held 12.38% and 19.07% respectively.

Heidelberg Cement India, Indian arm of the Germany-based HeidelbergCement, is targeting to increase its manufacturing capacity to 15 million tonne per annum (mtpa) by 2017 from 6 mtpa at present. Most of these expansions are likely to come via mergers and acquisitions route. The company recently expanded in the central region - Uttar Pradesh (Jhansi) and Madhya Pradesh.

Earlier this month, the company received its shareholders nod for raising funds up to Rs 2,000 crore through borrowings. The entity decided to sell its 0.6 million tonnes per annum (mtpa) cement grinding facility in Raigad to JSW Group, which has a capacity to produce 5-mtpa cement in India.

About Heidelberg Cement :
Heidelberg Cement India is one of the leading producers of building materials worldwide. The company manufactures portland slag cement and portland pozzolana cement. The company has manufacturing facilities located at Ammasandra (Karnataka), Damoh (MP) and Jhansi (UP) and has total production capacity of 5.9 million tonnes per annum.

Cipla gains on concluding acquisition of 100% shares of Medpro

Cipla is currently trading at Rs. 405.00, up by 2.85 points or 0.71% from its previous closing of Rs. 402.15 on the BSE.

The scrip opened at Rs. 402.55 and has touched a high and low of Rs. 405.75 and Rs. 399.30 respectively. So far 31,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 435.00 on 09-Jan-2013 and a 52 week low of Rs. 323.75 on 25-Jul-2012.

Last one week high and low of the scrip stood at Rs. 409.30 and Rs. 391.00 respectively. The current market cap of the company is Rs. 32,518 crore.

The promoters holding in the company stood at 36.80% while Institutions and Non-Institutions held 34.08% and 28.32% respectively.

Earlier, the company had received an approval from the Takeover Regulation Panel for its proposal to takeover Medpro in South Africa. The company had also received approval from shareholders of Cipla Medpro to Cipla $488 million offer to acquire 100 per cent stake in it.

The company focuses on development of new formulations and has a wide range of pharmaceutical products. It offers prescription drugs, bulk drugs, animal products and pesticides. It also offers a wide range of food and beverages, baked foods, oral hygiene products, detergents, room fresheners and personal care products.

Idea Cellular gains on adding 1.21 million mobile subscribers in June

Idea Cellular is currently trading at Rs. 159.45, up by 2.00 points or 1.27% from its previous closing of Rs. 157.45 on the BSE.

The scrip opened at Rs. 162.00 and has touched a high and low of Rs. 163.50 and Rs. 158.85 respectively. So far 372819 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 163.50 on 17-Jul-2013 and a 52 week low of Rs. 72.05 on 09-Aug-2012.

Last one week high and low of the scrip stood at Rs. 163.50 and Rs. 138.10 respectively. The current market cap of the company is Rs. 52866.78 crore.

The promoters holding in the company stood at 45.86% while Institutions and Non-Institutions held 22.09% and 32.05% respectively.

Idea Cellular, India’s fourth-biggest cellular carrier has added 1.21 million mobile subscribers in June, 2013. Following the addition, the company’s total subscriber count stood at 124.97 million.

Idea Cellular, an AV Birla group company, provides Global System for Mobile communications (GSM)-based wireless service at the pan-India level, it is present in all 22 telecom circles.

L&T arm wins order worth Rs 2085cr from Oman govt

Larsen & Toubro Ltd has informed BSE regarding a Press Release dated July 17, 2013 titled "Larsen & Toubro wins Rs. 2085 Cr AL -Batinah Expressway Project". The transportation infrastructure business of L&T made a major breakthrough in its international business by bagging a new order worth riyal omani 135.6 million (Rs 2085 crore) from the Ministry of Transport and Communications, sultanate of Oman, for the construction of the AI Batinah Expressway Package 4. 

Punj Lloyd soars on plan to refinance up to Rs 1,400 crore debt into dollar loans

Punj Lloyd is currently trading at Rs. 32.75, up by 0.60 points or 1.87% from its previous closing of Rs. 32.15 on the BSE.

The scrip opened at Rs. 32.55 and has touched a high and low of Rs. 33.30 and Rs. 32.35 respectively. So far 252062 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 2 has touched a 52 week high of Rs. 64.10 on 09-Jan-2013 and a 52 week low of Rs. 30.95 on 08-Jul-2013.

Last one week high and low of the scrip stood at Rs. 33.75 and Rs. 31.65 respectively. The current market cap of the company is Rs. 1090.93 crore.

The promoters holding in the company stood at 37.14% while Institutions and Non-Institutions held 22.74% and 40.12% respectively.

Punj Lloyd, the engineering major is likely to refinance up to Rs 1,400 crore of debt into dollar loans over the next six months in order to reduce costs and ease the impact of a falling rupee. About 65-70% loans of the company’s Rs 5,500-crore debt pile is in rupees, 65-70% of its businesses are outside India. Because of which, it faces a steep increase in finance costs for the company on the back of high interest rate regime in India and has made a big dent in its profitability.

The company’s interest outgo has risen by more than three and half times in the last five years to Rs 780.76 crore in 2012-13. It stood at Rs 220.76 crore in 2008-09.

NTPC surges on plan to sign fuel supply agreement with Coal India

NTPC is currently trading at Rs. 145.25, up by 2.10 points or 1.47% from its previous closing of Rs. 143.15 on the BSE.

The scrip opened at Rs. 144.00 and has touched a high and low of Rs. 145.40 and Rs. 144.00 respectively. So far 26828 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 175.35 on 12-Sep-2012 and a 52 week low of Rs. 136.10 on 21-Mar-2013.

Last one week high and low of the scrip stood at Rs. 146.80 and Rs. 140.45 respectively. The current market cap of the company is Rs. 119394.32 crore.

The promoters holding in the company stood at 75.00% while Institutions and Non-Institutions held 20.16% and 4.84% respectively. NTPC and Coal India are likely to sign fuel supply agreement (FSA) on July 17, 2013, indicating the end of a year-long difference. Coal India has decided to supply coal with calorific value of 3100 kcal/kg, which will undergo third party sampling  at coal loading point and failing which the miner cannot claim incentive.

However, both the companies are yet to clear up on issues relating to pending payments of about Rs 4,000 crore as of June 30 that Coal India billed NTPC. But NTPC not ready to clear the latter’s bills, as it flagged that it will pay only for the quality of coal that is being received at the power plant.

Reliance Capital arm increases total AUM by Rs 7000cr

Reliance Capital Ltd has informed BSE regarding a Press Release dated July 17, 2013, titled "RCAM Increases total AUM by Rs. 7,000 Crore to Rs. 1,80,000 Crore during Q1FY14" Reliance Capital Asset Management, part of Reliance Capital, has increased its total Assets Under Management (AUM) by Rs 7000 crore in Q1FY14. The total AUM now stands over Rs 1,80,000 crore across MFs, PMS, EPFO, Pension Funds and Offshore Mandates.

Telecom stocks in demand

Five telecom stocks rose by 1.29% to 5.08% at 9:42 IST on BSE after the government on Tuesday, 16 July 2013, allowed 100% foreign direct investment in the telecom sector.

Tata Teleservices (Maharashtra) (up 5.08%), MTNL (up 3.27%), Reliance Communications (up 2.64%), Idea Cellular (up 2.57%) and Bharti Airtel (up 1.29%), edged higher.
The S&P BSE Sensex was up 86.78 points, or 0.44% at 19,938.01.
The government on Tuesday, 16 July 2013, liberalised foreign direct investment (FDI) limits in a dozen sectors, including allowing 100% in telecom.

In basic and cellular services, FDI was raised to 100% from current 74%. Of this, up to 49% will be allowed under automatic route and the remaining will continue to be routed through the Foreign Investment Promotion Board (FIPB) approval.

Torrent Pharma gains after setting record date for bonus issue

Torrent Pharmaceuticals rose 2.23% to Rs 902.50 at 9:18 IST on BSE after the company said it has fixed 24 July 2013 record date for 1:1 bonus share issue.

The announcement was made after trading hours on Tuesday, 16 July 2013.


On BSE, 774 shares were traded in the counter as against average daily volume of 18,593 shares in the past two weeks.
The stock hit a high of Rs 904 and a low of Rs 893.35 so far during the day.
Torrent Pharmaceuticals reported consolidated net profit of Rs 111 crore in Q4 March 2013, as against net loss of Rs 2 crore in Q4 March 2012. Net sales rose 22.8% to Rs 803 crore in Q4 March 2013 over Q4 March 2012.

About Torrent Pharmaceutical : 
Torrent Pharmaceuticals is the flagship company of the Torrent Group. The pharmaceutical firm has focus on the therapeutics areas of diabetology, cardiovascular, central nervous system, gastro-intestinal, anti-infective, pain management and gynecology.

Govt considers regulation for spot exchanges

The government is considering a new regulation for spot commodity exchanges.

There are three such exchanges but no single regulator. The commodity futures market regulator, the Forward Markets Commission (FMC), had in the past proposed a law in this regard. The Union ministry of consumer affairs (MCA) is considering this, say sources.

Recently, the MCA wrote to the National Spot Exchange (NSEL), promoted by Financial Technologies, forbidding it from launch of any new contract with a one-day carry forward facility, for which they had been earlier granted exemption. Without the exemption, spot exchanges cannot undertake forward trade. NSEL has said it will comply.

Sources say before a new law is enacted, some issues raised by the Union law ministry needs sorting. The law ministry had said the Constitution has different provisions for regulating agricultural commodities and inter-state commerce; the Centre by itself does not have the power to make a law. Spot exchanges allow trading in agri commodities under an Agriculture Produce Marketing Committee (APMC) licence from the respective states; these exchanges also allow inter-state trades.

Last week, FMC had called a meeting of spot exchanges, brokers and market participants to discuss issues related to spot trading. A proposal was also discussed on whether FMC could authorise delivery- based forwards under section 6 of the Act governing it and all spot exchanges could then apply for this. "That is how spot exchanges can also be regulated by FMC," said an officialat the meeting.

According to sources, MCA is also considering withdrawing the exemption given to spot exchanges under which one-day forwards were allowed. A sector official said they'd represented that this withdrawal coincide with the new regulations for spot exchanges.

DCB gains on strong Q1 performance

Development Credit Bank (DCB) is trading higher by 3% at Rs 51.25 in opening deals on BSE after reporting a more-than-double net profit at Rs 43 crore for the quarter ended June 30, 2013 (Q1FY2014) due to onetime treasury gains. The private sector bank had posted profit of Rs 19 crore in a year ago quarter.

Underlying net profit, excluding the onetime treasury gains and operating costs, was at Rs 35 crore approximately for Q1 FY2014, DCB said in a press release.

Net interest margins improved to 3.44% in Q1 FY2014 as against 3.18% for Q1FY2013, it added.

The bank’s net interest income (interest income minus interest expenses) grew 30% at Rs 83 crore against Rs 64 crore during the recently concluded quarter.

The stock opened at Rs 51 and hit a high of Rs 51.45 so far. Around 73,000 shares have changed hands on the counter till 0917 hours on BSE.

FDI in telecom hiked to 100%

The government today allowed 100 percent foreign direct investment (FDI) in telecom sector; a key demand of the industry.there is raising of cap from 74 to 100 percent in basic and cellular services. Upto 49 percent remains under automatic route and 49-100 percent through FIPB route, commerce minister Anand Sharma said in a press conference.

In a major reforms push, the government today allowed 100 percent foreign direct investment in the telecom sector, meeting a key demand of the fund-starved industry.

"Basic and Cellular Services (fix phone and mobile services), existing has been 74 percent and up to 49 percent automatic route and 74 percent though FIPB route. Now there is raising of cap from 74 to 100 percent in basic and cellular services. Up to 49 percent remains under automatic route and 49-100 percent through FIPB route," Commerce and Industry Minister Anand Sharma said here.

Pre-mkt: Markets likely to open cautious amid global cues

Markets are expected to open on a cautious note albeit with a slight positive bias on Wednesday.

At 8AM IST, SGX Nifty was up 15 points at 5,985.

According to the technical charts  “We could see some more upside in the near term, and the Nifty may look to stretch the rally to 6,100-odd levels. However, failure to sustain above 6,000-mark can trigger profit taking and the index can slip to near about 5,900-level. ”.

Meanwhile Asian shares traded mixed on expectations Federal Reserve Chairman Ben Bernanke will continue with the stimulus.

Bernanke is set to testify to Congress on Wednesday and Thursday, which could provide further clarity on when the US central bank will roll back its $85 billion a month bond-buying programme.

Among the key Asian indices, Japan’s Nikkei was down 0.7% to 14,489 in the opening deals.

Overnight, US stocks retreated after eight day of gains.

The Dow Jones industrial average slipped 32.41 points, or 0.21 percent, to end at 15,451.85. The Standard & Poor's 500 Index declined 6.24 points, or 0.37 percent, to finish at 1,676.26. The Nasdaq Composite Index fell 8.99 points, or 0.25 percent, to close at 3,598.50.