Govt will consider proposal to raise diesel prices by more than 50 paise per month: Moily

Giving some respite for the oil marketing companies, the country's oil minister, M Veerappa Moily said, “Government will consider a request from oil marketing companies to be allowed to raise diesel prices by more than the approved 50 paise a month, to bridge the losses”. The decision is yet to be taken. However, he ruled out any hike in LPG and Kerosene prices.

In January, fuel retailers were given the freedom to raise the price of subsidized diesel every month, while bulk buyers were asked to pay market rates. Since, then firms for seven times have raised diesel rates, cumulatively taking up the price of the fuel by Rs. 3.75 per litre. Meanwhile, petrol prices have been raised by five times since June. While, petrol price was last hiked by 70 paisa per litre, diesel price was upped by 50 paisa per litre on 31st July this year.

Further while, an increase in diesel prices may see prices of essential commodities go up, there is little the government can do about it, as it tries to rein in the widening current account deficit which is one of the major reasons for the rupee's slide.

LIC Housing Finance spurts on reporting 36% rise in Q1net profit

LIC Housing Finance is currently trading at Rs. 182.10, up by 4.30 points or 2.42% from its previous closing of Rs. 177.80 on the BSE.

The scrip opened at Rs. 180.75 and has touched a high and low of Rs. 184.70 and Rs. 175.55 respectively. So far 679707 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 300.00 on 02-Jan-2013 and a 52 week low of Rs. 154.40 on 07-Aug-2013.

Last one week high and low of the scrip stood at Rs. 179.20 and Rs. 154.40 respectively. The current market cap of the company is Rs. 9273.18 crore.

The promoters holding in the company stood at 40.31% while Institutions and Non-Institutions held 45.29% and 14.23% respectively.

LIC Housing Finance’s net profit for the first quarter ended June 30, 2013 grew by 36.34% at Rs 310.51 crore as compared to Rs 227.75 crore for the corresponding quarter ended June 30, 2012. Company’s total Income has increased by 23.23% at Rs 2177.94 crore for the quarter under review against Rs 1767.30 crore for June quarter of the previous year.

LIC holds 40.31% stake in LIC Housing Finance while, institutional investors, both foreign and domestic together, are holding 41.47% shares, others hold 18.22% shares.

Gammon India shines on receiving approval for restructuring its debt as per CDR LOA

Gammon India is currently trading at Rs. 11.00, up by 0.02 points or 0.18% from its previous closing of Rs. 10.98 on the BSE.

The scrip opened at Rs. 10.90 and has touched a high and low of Rs. 11.50 and Rs. 10.80 respectively. So far 52,000 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 2 has touched a 52 week high of Rs. 54.45 on 11-Oct-2012 and a 52 week low of Rs. 10.70 on 08-Aug-2013.

Last one week high and low of the scrip stood at Rs. 12.75 and Rs. 10.70 respectively. The current market cap of the company is Rs. 149.00 crore.

The promoters holding in the company stood at 34.99% while Institutions and Non-Institutions held 31.48% and 33.53% respectively.

Gammon India has received an approval for restructuring of the company’s debts as per the Corporate Debt Restructuring Letters of Approval (CDR LOA) dated June 29, 2013 and July 31, 2013 received pursuant to the Restructuring Package approved by the CDR Empowered Group at its meeting held on June 24, 2013. The board of directors at its meeting held on August 12, 2013 has considered and approved for the same.

Besides, as per the terms and conditions of the CDR LOA, the CDR Package has to be implemented within 120 days from the date of the CDR LOA. The Cut-off date of the CDR package is January 01, 2013.

Gammon India provides engineering services and construction of services. It operates in plan, design and undertakes construction of roads, highways, bridges and other projects.

Central Bank of India launches ‘Cent Matsyakanya Credit Card’

Public-sector bank, Central Bank of India has launched a new scheme for the benefit of small fisherwomen ‘Cent Matsyakanya Credit Card’. The bank has launched the Card on 132nd Birth Anniversary of its founder Sir Sorabji Pochkhanawala on August 08, 2013.

The bank also handed over cheques to three NGOs namely The National Federation of the Blind, DEEDS and Society for the Education of the Crippled (Child & Adult) under CSR activity. 

Central Bank of India has been serving more than 3,50,00,000 account holders through its 4,118 branches, 6 extension counters, 29 Satellite offices, 1,970 ATMs and 2,413 ultra small branches (USBs).

Tata Steel trades jubilantly on the buzz of building greenfield unit of 3 MT capacity in Orissa

Tata Steel is currently trading at Rs. 254.90, up by 13.75 points or 5.70% from its previous closing of Rs. 241.15 on the BSE.

The scrip opened at Rs. 262.00 and has touched a high and low of Rs. 263.00 and Rs. 252.00 respectively. So far 1543359 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 448.10 on 07-Jan-2013 and a 52 week low of Rs. 195.40 on 07-Aug-2013.

Last one week high and low of the scrip stood at Rs. 263.00 and Rs. 195.40 respectively. The current market cap of the company is Rs. 24897.10 crore.

The promoters holding in the company stood at 31.35% while Institutions and Non-Institutions held 39.47% and 26.52% respectively.

Tata Steel is reportedly planning to build greenfield unit of capacity of 3 MT in Orissa. Moreover, the company has raised 100 million pounds from sale of strategic assets in Europe. The company will not spend on non-strategic initiative. Further, the company is expecting to be self sufficient in Coke by 2014.

Meanwhile, the company has increased its volume target to 1.2 MT in India, while 11.6 MT in Europe.

Tata Steel, the flagship company of the Tata group is the first integrated steel plant in Asia and is now the world’s second most geographically diversified steel producer and a Fortune 500 Company.

GAIL (India) mulls option to enter into business of fertilizer manufacturing

GAIL (India), country’s largest gas transmission and marketing company is evaluating the opportunities to enter into the business of fertilizer manufacturing. The company is exploring the possibility of supply of Ammonia Synthesis Gas (ASG) through coal gasification for production of fertilizer in FCIL, Talcher.  

Besides, the company has been authorized to lay Jagdishpur-Haldia natural gas pipeline (JHPL) and Surat-Paradip natural gas pipeline. These pipelines will pass through the states of Jharkhand, Bihar, West Bengal and Odisha.

The company has reported 28.72% fall in its net profit at Rs 808.17 crore for first quarter ended June 30, 2013 as compared to Rs 1133.78 crore for the same quarter in the previous year. However, total income from operations of the company has increased by 15.98% at Rs 12899.80 crore for quarter under review as compared to Rs 11122.35 crore for the quarter ended June 30, 2012.

Sterlite Technologies Ltd has submitted to BSE a copy of news-release regarding upgradation of the 22KV IIT Powai-Saki Transmission line.

Sterlite Technologies, a leading global provider of transmission solutions for the power and telecom industries, has completed installation and commissioning of a challenging project in the heart of Mumbai requiring significant up-gradation in the power carrying capacity for a critical line of Tata Power. The company executed this turnkey project for Tata Power, a leading T&D utility in India.

The project involved rendering of services like design, supply and installation of high capacity, high strength carbon composite core conductors on an existing critical arterial 22 kV line delivering power to a number of industrial customers and a local college. This unique solution has resulted in an exponential increase in the power transmission capacity of the existing IIT Powai to Saki transmission line that crisscrossed over a thickly populated slum area comprising closely spaced hutments and hilly terrain.

Sterlite Technologies is a leading global provider of transmission solutions for the power and telecom industries. The company is equipped with a product portfolio that includes power conductors, optical fibers, telecommunication cables and a comprehensive telecom systems / solutions portfolio.

Strides Arcolab slips as RBI bans FIIs purchases

Strides Arcolab has slipped 6% to Rs 774 after the Reserve Bank of India (RBI) said that foreign institutional investor (FII) cannot buy shares of the pharmaceutical company.

The stock opened at Rs 810 and touched a low of Rs 763 on NSE. A combined 82,282 shares have changed hands on the counter so far on NSE and BSE.

The RBI on August 13, 2013 has directed all the custodian banks not to facilitate any purchase transactions on behalf of Flls for the company till further intimation, Strides Arcolab said in a regulatory filing.

The company also said it have been informed by RBI that they are reviewing the matter of increase in FII limit up to 74% in the company in consultation with Government of India.

The current Fll holding in the company is 52%. As required under the FEMA Regulation, the company has made necessary intimation to the RBI confirming the shareholders' approval for the increased Fll investment limit, it added.

M&M plans to invest Rs10,000 crore

Mahindra & Mahindra Ltd is planning to invest Rs 10,000 crore in the next three years, Chairman and Managing Director Anand Mahindra told shareholders at company's 67th annual general meeting (AGM).
Reports said that the part of the amount will go into setting up a new auto plant.
"We will invest with an even greater focus on the frugality and efficiency of that investment," Mahindra said.

Supreme Court frowns on Sahara's claim on refunds

The Supreme Court on Tuesday observed that the Sahara group’s claims of having refunded the larger part of the amount collected through their optionally fully convertible debentures was “extremely difficult to believe”.

“Have you made any affidavit? If you have made an affidavit or averment before us (before the order), that was the end of the matter. We would have accepted that. You have not brought it to our notice,” judge K S Radhakrishnan said when Sahara counsel Ram Jethmalani averred the two group companies in question had refunded Rs 19,127 crore or 74 per cent of the Rs 25,781 crore raised. The court later adjourned the hearing to August 26.

The SC had in an order dated August 31, 2012, directed refund of Rs 24,029 crore collected by Sahara India Real Estate Corp and Sahara Housing Investment Corp, after accounting for premature refunds of Rs 1,751 crore.

The group now claims the premature refund figure of Rs 1,751 crore was up to August 2011. And, further refunds were made even as the court battle was on and this figure rose to Rs 19,127 crore when the SC order came a year later. Of this, Rs 14,614 crore was refunded by Sahara India Real Estate and Rs 4,513 crore was refunded by Sahara Housing Investment, said Jethmalani.

Earlier, he argued a particular direction in the SC order made the group believe the refunds could be made directly. “We came to the court complaining of the Sebi, SAT (the capital markets regulator and its appellate tribunal) order directing payment to investors. Having lost, I thought I have to pay. That is how I construed direction number 1 in the light of direction number 2,” the lawyer, said adding “my construction may be less probable but it’s possible”.  

The bench appeared unconvinced. “It is a simple construction,” judge J S Khehar said. When Jethmalani suggested there was an element of ambiguity in the order, Khehar noted it had directed submission of documents within 10 days. If you had deposited within 10 days, the other questions would not have arisen, the judge said.

The Sahara counsel then started explaining how difficult it was to transport documents that ran into “26 crore pages”, that came to 127 trucks from Lucknow to Mumbai.

Judge Radhakrishnan said the delay in filing documents dated long before the SC order. “It is happening for three years. It happened before Sebi, then SAT. We are at the contempt stage. This is not the first time.”

Judge Khehar said: “The 10 days (time) has (become) history. Let us go by the directions.”

Earlier, Jethmalani made averments on the contempt law, saying: “Apart from material facts to show wilful disobedience, there must be material facts to show at the present time the respondents have means to pay and still they are in bad faith (refusing to pay).”

Indian rupee falls 28 paise in early trade to 61.47/USD

Indian rupee fell 28 paise in early trade to 61.47 per dollar as against previous day's closing of 61.19 per dollar.

Pramit Brahmbhatt of Alpari feels that a stronger dollar and high dollar demand from importers at these levels will exert pressure on the rupee.

"With no clear and strong measures from the government to boost fund inflow and fuel growth, the rupee could weaken further. However, strong equities could provide some support," he adds.

According to Brahmbhatt, the range for the day is seen between 60.70-61.75/USD while Agam Gupta, MD, head of FXRC, South Asia, Standard Chartered Bank expects sees the rupee hovering in the range of 61.25-61.75/USD for the day.

In an interview to CNBC-TV18 Agam Gupta says the government should continue with its stance of tightening short-term rates and should liberalise non-resident Indian (NRI) deposits to attract NRI money.

Economy news of the day

The government has increased the customs duty to 10% from 8% on the yellow metal, a move that helped the rupee edge up against the dollar.

The government has increased the customs duty to 10% from 8% on the yellow metal, a move that helped the rupee edge up against the dollar. Customs duty on platinum has been raised to 10% from 8%, and on silver to 10% from 6%. The government also raised the excise duty on gold and silver bars. (ET)

Parliament’s standing committee on commerce has recommended a blanket ban on any FDI in brownfield pharma projects, warning that a few more takeovers of large domestic generic drug makers by multinationals can destroy benefits flowing from ‘India’s generic revolution’. (ET)

The government has allowed 13 public sector institutions to raise Rs480bn through tax-free bonds in 2013-14 to meet their infrastructure investment needs. For the first time, sovereign wealth funds have been allowed to invest in the private placement segment of these bonds. (BS)


The flow of money into NRI deposits in April-June 2013 was US$5.5bn down from US$6.5bn in Q1 of last year. The outstanding NRI deposits stood at US$71.07bn at end of June 2013, according to Reserve Bank of India data. (BS)