Metal, power underperform as realty, IT gain

Some buying activity is seen in realty, IT, capital goods, banking sectors, while metal, power, FMCG and healthcare sectors are showing weakness

At 2:38 PM, S&P BSE Sensex is 159 points up at 20,432, while Nifty is 55 points higher at 6,076.

BSE Mid-cap is 15 points up at 5,866, while BSE Small-cap is 23 points up at 5,714.

Some buying activity is seen in realty, IT, capital goods, banking, teck and auto sectors, while metal, power, FMCG, healthcare and consumer durables sectors are showing weakness on BSE.

ICICI Bank, Infosys, Tata Motors, L&T, Maruti Suzuki, HDFC Bank, Wipro, SBI and TCS are up on BSE, whereas Coal India, Tata Power, Hindalco, SSLT, NTPC, Sun Pharma, ITC, Cipla and BHEL are showing some weakness.

Finance Minister P Chidambaram has said India's economy is expected to grow by 5% to 5.5% in the current financial year on back of good monsoon, robust farm output and impact of reform measures undertaken by the government in past one year.

HSBC cuts its USD/INR forecast for the end of the year to 62 from 65 previously, citing improvements in the current account deficit (CAD) and measures to attract inflows.

Canara Bank raised $500 Million through issue of Senior Unsecured Bonds under the $2 Billion Medium Term Note (MTN) Programme through the Bank's London Branch, The coupon rate is 5.25% p.a. The tenure of the Bonds is five years. Canara Bank is 1.54% up on BSE.

IT major Infosys net profit for the second quarter ended 30 September 2013 rose just 1.5% to Rs. 24.10 billion from Rs. 23.42 billion for the same quarter last fiscal. During the period under review, the company's total income increased 15% to Rs. 134.75 billion from Rs. 105.64 billion. The scrip is 3.87% up on BSE.

Hero MotoCorp, India's largest two-wheeler maker, unveiled 15 new products that will hit the market during the six months of the current fiscal. The stock is 1.02% up on BSE.

Bharti Airtel, which is trading 0.23% up, is planning to increase post-paid customer base by offering them tailor-made voice and data plans, according to reports.

Ranbaxy's US factory, Ohm Laboratories, may have received a clean chit from the American regulator, according to reports. The US facility was under surveillance of the US Food and Drug Administration (FDA) since the end of 2012. Ranbaxy is 2.59% up on BSE.

Indiabulls Housing Finance Ltd has received approval from the Reserve Bank of India to raise $200 million through external commercial borrowing (ECB), giving the company access to another source of inexpensive funding. The scrip is 1.05% up on BSE.

Idea Cellular is set to announce a QIP of Rs. 30 billion as early as next week, says a report. The scrip is 0.25% up on BSE.

The Securities and Exchange Board of India (SEBI) plans to make companies making disclosures in stock exchanges stick to them.

SEBI has revived a proposal to allow real estate investment trusts (REITs) in India in order to provide developers and private equity funds access to liquidity and attract money to the sluggish real estate sector.

A cyclonic storm hit the Andaman and Nicobar islands between 12:30-1:30PM on Wednesday and was expected to turn into a "very severe cyclonic storm" and hit northern Andhra Pradesh and coastal Odisha around Saturday.
Phailin is expected to cross coast between Kalingapatnam (Andhra Pradesh) and Paradip (close to Gopalpur, Odisha) by Saturday midnight.

Nikkei closed 210 points up at 14,404 points, while Hang Seng closed 267 points up at 23,218.

IFC launches $1-billion bond programme for India

IFC, a member of the World Bank Group, has launched a $1-billion offshore bond programme, touted as the largest of its kind in the offshore rupee market, to strengthen India’s capital markets and attract greater foreign investment.

Under the programme, IFC will issue rupee-linked bonds and use the proceeds to finance private sector investment in the country.

As Jin-Yong Cai, IFC’s CEO, noted: “Vibrant domestic capital markets ensure access to long-term, local currency finance for the private sector, the key engine of job creation in emerging markets. IFC’s offshore bond programme will help bring depth and diversity to the offshore rupee market and pave the way for an alternative source of funding for Indian companies.”

India accounted for $4.5 billion of IFC’s committed investment portfolio as of June 30, 2013, more than any other country. In FY13, IFC invested $1.38 billion in India, to support low-income States.

The aim was to promote inclusive growth, address climate change impact and support inter-regional trade to boost growth of small businesses. The investment was 43 per cent over the previous year.

In a statement, Arvind Mayaram, Secretary of Economic Affairs, Ministry of Finance said, “With the launch of a rupee bond in the global markets, IFC is turning a new corner. This is a new initiative for the intermediation of international savings for development in India. It will also help deepen the capital markets in India and establish an Indian rupee benchmark in the global markets.”

Over the years, IFC has issued bonds in 13 local currencies, including the Brazilian real, the Chinese renminbi, the Nigeria naira, and the Russia ruble. IFC has provided over $10 billion in local currency financing across 58 currencies using a variety of financing tools.

IFC’s advisory services help small businesses access finance, facilitate public-private partnerships and promote growth of sustainable enterprises.

Of the 39 investment projects in India, ten were in low-income States totalling $273 million. Nearly a third of IFC’s investments in India in FY13 were mobilised from investors like DEG, FMO, Mizuho Corporate Bank, Proparco, Rabobank, and Standard Chartered Bank.

IFC combined these investments with a range of innovative advisory programmes, leveraging the power of the private sector to create jobs and tackle development challenges facing the country. In India, IFC is working on 66 advisory projects with a total value of $51 million.

IFC’s notable investments include a repeat investment in OCL India for a new cement grinding plant in West Bengal, as also Government-owned utility PowerGrid to interconnect the national grid and transmit power. To promote clean growth, IFC has supported renewable energy players such as Green Infra, Inox Renewables, and Azure Power.

Three quarters of IFC’s advisory programme in FY 13 was in India's low-income States such as Odisha, where IFC expanded State-level partnerships to support regulatory reforms and mobilise investments.

2 thermal power stations in AP resume operations

Two thermal power stations at Vijayawada and Kadapa went into steam today as power employees in coastal Andhra and Rayalaseema regions of Andhra Pradesh resumed work after calling off their indefinite strike “temporarily” in view of cyclonic storm Phailin.

The power employees were on an indefinite strike during the last five days against the Union Cabinet’s decision to create a separate Telangana state out of Andhra Pradesh. They have been demanding that the Centre withdraw the move to bifurcate the state.

Narla Tata Rao Thermal Power Station at Vijayawada and Rayalaseema Thermal Power Station at Kadapa, which have a combined generation capacity of 2,810 MW, resumed operations today.

Srisailam right bank hydro power house also resumed generation, adding 770 MW to the capacity.

“Power generation is back to normal since today morning as the employees resumed work,” Power Generation Corporation of Andhra Pradesh Ltd Chairman and Managing Director K. Vijayanand told PTI.

Official sources, however, said only 9,691 MW of power was being generated currently across the state against the earlier 11,000 MW.

“Generation is slowly picking up. It takes time for thermal (power) to come back fully,” a top official of a power utility said.

The gap in generation is expected to be filled in the next few hours when thermal stations get into full steam, he said.

Power cuts have almost been lifted, including in Hyderabad city, as distribution has also been restored in Seemandhra districts, the official added.

The strike has pushed 13 coastal Andhra and Rayalaseema districts into darkness, affecting the movement of trains and emergency services in hospitals, besides hampering power supply to Hyderabad city.

Coal India falls as govt to divest partial stake

Reports suggest that the govt plans to kickstart a 10-day long roadshow for the FPO from Oct 21

Coal India has slipped over 4% to Rs 282 in noon deals on reports that the government plans road show for its propose divestment plan in the company.

The government is planning to divest 5% stake in the company through follow-on public offer (FPO), will kickstart a 10-day long roadshow beginning October 21, the CNBC –TV18 report suggests.

The government has reportedly selected seven merchant bankers for the stake sale -- Goldman Sachs, Credit Suisse, Deutsche Bank, SBI Capital Markets, Kotak Mahindra Capital, JM Financial and Merrill Lynch, the media report suggests.

Meanwhile, Coal Minister Sriprakash Jaiswal on Friday said the Cabinet Committee on Economic Affairs (CCEA) would decide on disinvestment of Coal India, the PTI report suggests.

The stock opened at Rs 294 and hit a low of Rs 281 on BSE. A combined 3.04 million shares change hands on the counter till 1420 hours on BSE and NSE.

The stock is major underperformer among the 30-share Sensex companies, falling 9% in past one week compared to 2.7% rise in benchmark index

Realty shares spurt as Sebi aims to allow REITs

Shares of 14 real estate companies rose by 0.42% to 8.38% at 12:19 IST on BSE after the capital market regulator on Thursday, 10 October 2013, issued draft guidelines to set up real estate investment trusts in India.


Unitech (up 8.38%), DLF (up 4.01%), Anant Raj Industries (up 3.66%), Phoenix Mills (up 3.35%), Sobha Developers (up 2.39%), HDIL (up 2.12%), Indiabulls Real Estate (up 1.79%), D B Realty (up 1.66%), Oberoi Realty (up 1.24%), Sunteck Realty (up 1.12%), Prestige Estates (up 1.07%), Parsvnath Developers (up 0.94%), Peninsula Land (up 0.85%) and Godrej Properties (up 0.42%), edged higher.
The S&P BSE Realty index was up 3.38% at 1,363.96. It outperformed the S&P BSE Sensex, which was up 1.19% at 20,514.20.

The S&P BSE Realty index had outperformed the market over the past one month till 10 October 2013, rising 6.19% compared with the Sensex's 1.38% rise. The index had, however, underperformed the market in past one quarter, sliding 11.50% as against Sensex's 5.07% rise.

The Securities and Exchange Board of India (Sebi) on Thursday, 10 October 2013, issued draft guidelines to set up real estate investment trusts (REITs) in the country.

REITs are tax-efficient listed entities that mainly invest in income-producing real estate assets from which most of the earnings are distributed to their shareholders.
Media reports suggested that setting up of REITs will create opportunities for real estate developers to exit commercial real estate projects and will create a new investment vehicle through which smaller investors can gain exposure to income generating real estate assets.

Sebi's draft rules propose that only companies with assets worth at least Rs 1000 crore could list as a REIT, provided they sell at least Rs 250 crore worth of stock in the initial public offering.
The Sebi has proposed limiting investment in REITs initially to institutional investors and high net worth individuals and therefore it is proposed that the minimum subscription size shall be Rs 2 lakh and the unit size shall be Rs 1 lakh.

Spanco wins Central Bank of India’s mobile banking contract

Technology company Spanco is set to implement mobile banking and mobile commerce related application for Central Bank Of India.

The Mumbai-based company has emerged the most qualified bidder, following a technical and financial evaluation by the bank, it said in a press statement.

“This win further strengthens our position in the mobile banking and payments space and we wish to further build this into a full services mobile based payments company," said Kaustubh Dhavse Chief Executive Officer of Spanco’s governance unit.

Spanco’s revenue model is transaction based; it will earn a fixed fee for every financial and non-financial transaction that happens through the mobile platform.

sensex surges, Tata Motors hits life high, ICICI Bank up 5%

The market continued its rally in afternoon boosted by Infosys September quarter results and buying in banks, realty and autos. The Sensex is up 222.77 points or 1.10 percent at 20495.68, and the Nifty up 63.75 points or 1.06 percent at 6084.70. About 1240 shares have advanced, 995 shares declined, and 151 shares are unchanged. ICICI Bank , Infosys, L&T, Tata Motors and Maruti Suzuki are top gainers in the Sensex. Among the top losers are Tata Power , Coal India , Sesa Sterlite and Sun Pharma .

Tata Motors is up 3 percent as JLR sales have been surprising continuously. In September, the company saw a global retail volumes of 43,000 units, up a strong 17 percent year-on-year. On the global front, European markets opened higher following rally in US and Asian markets on hopes of likely deal to open US government and avoid debt default.

Reliance Infrastructure rises on plan to raise Rs 2,500 crore

Reliance Infrastructure has received an approval for raising of long term resources through external commercial borrowings (ECBs), foreign currency convertible bonds, and rupee term loans / NCDs, up to Rs 2,500 crore. The funds raised will be used for refinancing and extending maturities of higher cost rupee debt and/or other approved end uses. The board of directors at its meeting held on October 09, 2013 has approved for the same.

Reliance Infrastructure is the largest power distribution licensee in Mumbai, with 25 years license to distribute electricity in its licensed distribution areas spread over 400 Sq. Kms. in the suburbs and surrounding areas of Mumbai, and supplying power to around 29 lakh consumers.

JLR sales up 17% in September

Sustained sales growth continues for Jaguar Land Rover with increases in all major regions

Jaguar Land Rover, the UK's leading manufacturer of premium luxury vehicles continues its sales success with a record September performance, retailing 43,181 vehicles in the month, up 17% versus the same period last year. During the first nine months of the year, Jaguar Land Rover sold 312,834 vehicles, up 16%.
Sustained sales growth continues for Jaguar Land Rover with increases in all major regions: the China Region up 46%, Asia Pacific up 29%, the UK up 11%, Europe up 8%, North America up 6%, and other overseas markets up 15%. Sales for the first nine months of the year were also up in all major regions with Asia Pacific up 29%, the China Region up 24%, North America up 17%, the UK up 15%, Europe up 5% and other overseas markets up 19%.

Commenting on the September performance Andy Goss, Jaguar Land Rover Group Sales Operations Director said: “This has been another record month for Jaguar and Land Rover with significant sales growth across all major regions. Jaguar is delivering impressive year on year growth having already surpassed its 2012 sales performance.  The XF has delivered a September sales record thanks to an enhanced engine line-up and the introduction of the Sportbrake and the XJ continues to do well, particularly in China and North America.

“Meanwhile Land Rover continues to build on the momentum of its new and refreshed model introductions with the Range Rover Evoque delivering a record September sales performance and the all-new Range Rover Sport performing strongly in its first month of sales, ahead of its full market roll-out.”

US fiscal impasse affects global economy: World Bank

The federal government will reach its debt ceiling of $16.7 trillion by Oct 17

The fiscal uncertainties in the US have global implications and will undermine the efforts to end poverty in developing countries, the World Bank said.

"The US remains the biggest economic power in the world and whatever happens here is going to affect all the developing countries," Xinhua quoted Sri Mulyani Indrawati, World Bank Group's managing director and chief operating officer, as saying Thursday.

The US debt ceiling issue is clearly getting attention around the world, and it is in everyone's interest for the fiscal dispute between US Democrats and Republicans to be resolved in a timely manner, she told reporters during a press briefing.

As the US government shutdown is in its 11th day, Washington faces another fiscal deadline. The federal government will reach its debt ceiling of $16.7 trillion by Oct 17, and failure to raise it would lead to a catastrophic default, US Treasury Secretary Jacob Lew has said.

The lingering US fiscal wrangle will push borrowing costs higher in developing countries, shifting their resources to service the debt from projects targeted at reducing poverty and enhancing shared prosperity.

Global economy has some good news as the European economy is picking up steam, but on the other hand, "we are still very concerned" about the fragile recovery of the global economy against the backdrop of the US fiscal impasse, Indrawati said.

The World Bank Group is committed to the main goals of ending extreme poverty by 2030 and promoting shared prosperity.

The Washington-based agency stands ready to help developing countries strengthen their policy frameworks to achieve robust and inclusive growth, she added.

Fertiliser Ministry seeks Rs 35,000 cr under extra funds

Concerned over acute liquidity crunch faced by the Indian fertiliser sector, fertiliser ministry has sought additional Rs 35,000 crore funds towards subsidy payment to companies. Fertiliser Minister Srikant Jena in a letter written to government has said that in order to address present liquidity concern of the sector, there is a need of immediate release of extra funds as the Department of Fertiliser (DoF) did not get funds under the first supplementary grants and second supplementary grants would be made available only in December. The DoF has been able to pay subsidy dues till May to fertiliser firms manufacturing urea locally, while for non-urea fertilizers, it can pay subsidy only till this month.

So far this fiscal, the DoF has been allocated Rs 70,586 crore funds towards subsidy payment to fertiliser firms against the total demand of Rs 1,05,497 crore for the 2013-14 fiscal. Rising fears for closure of two state-run firms, the fertilizer ministry added that state-run National Fertilisers Ltd (NFL) and Madras Fertilisers Ltd (MFL) could face closure by the end of this month due to liquidity crisis. Furthermore, private fertilizer firms are also facing the liquidity crunch as the government has exhausted its funds towards subsidy payment on indigenous urea.

Earlier in September, the Finance ministry had agreed to pay only Rs 5,500 crore subsidy under a special banking arrangement (SBA) as against Rs 12,000 crore sought by the Department of Fertilisers (DoF). Meanwhile, in order to support the industry, the Fertiliser Association of India (FAI) has recently filed a petition in the Delhi High Court seeking 14.75 percent interest on the delayed subsidy payments.

Hero MotoCorp surges on showcasing 15 new products

Hero MotoCorp has showcased 15 new products that will hit the market during the six months of the current fiscal. Of which, majority of the new offerings will hit the market in the ongoing October-December quarter as the company looks to cash in on the festive season in India. These unveiled products include refreshed top-end bike Karizma R, ZMR, Splendor I-Smart and new variant of scooter Pleasure.

The company is also planning to foray into Turkey and Egypt in the next few months, while it is also working on a low cost bike for the entry level segment. Last month, Hero MotoCorp had announced that it would introduce over 15 new offerings by March next year as it seeks to consolidate the leadership position.

Hero MotoCorp registered 15.78% rise in its total sales at 4,68,670 units for September 2013 as compared to 4,04,787 units sold in the same month previous year.

MCX jumps over 10% in two sessions

Multi Commodity Exchange of India hit an upper circuit limit of 5% at Rs 446.25 at 9:55 IST on BSE, extending Thursday's 5% jump triggered by MCX Stock Exchange announcing changes to its management and board.

Shares of Multi Commodity Exchange of India (MCX) jumped 5% to Rs 425 on Thursday, 10 October 2013. The stock has risen 10.24% in two sessions from Rs 404.80 on Wednesday, 9 October 2013.
Meanwhile, the BSE Sensex was up 165.85 points, or 0.82%, to 20,438.76.

On BSE, 3,335 shares were traded in the counter compared with average volume of 2.18 lakh shares in the past one quarter.
The stock opened with an upward gap, surging by the maximum 5% daily circuit and remained locked at the 5% level at Rs 446.25 so far in the day.
The stock hit a record low of Rs 238.30 on 19 August 2013. The stock hit a record high of Rs 1,617 on 13 November 2012.

The stock had underperformed the market over the past one month till 10 October 2013, falling 2.95% compared with the Sensex's 1.38% rise. The scrip had also underperformed the market in past one quarter, sliding 41.26% as against Sensex's 5.07% rise.

The small-cap company has an equity capital of Rs 51 crore. Face value per share is Rs 10.
MCX Stock Exchange (MCX-SX) announced after market hours on Wednesday, 9 October 2013, that Vice-Chairman Jignesh Shah and Managing Director & CEO Joseph Massey stepped down from the board.
Meanwhile, the exchange said in an announcement the Securities and Exchange Board of India (Sebi) had, through a letter dated 8 October 2013, nominated former LIC head, Thomas Mathew T, as MCX-SX's public interest director.

U Venkataraman, whole-time director, will assist a special committee of public interest directors in carrying out the functions of the exchange, according to the statement.
Last month, Sebi renewed the license of MCX-SX stock exchange for a period of one year beginning 16 September 2013. The recognition was due to expire on 15 September 2013.
After granting the approval, Sebi asked the MCX-SX shareholders to reconstitute its board and rejig its top management if necessary to improve governance standards within the stock exchange.
The order from Sebi came after MCX-SX's affiliated commodity exchange, the National Stock Exchange of India (NSEL), abruptly suspended trading. NSEL has since struggled to square off outstanding contracts worth over Rs 5500 crore.

Financial Technologies (India) (FTIL), which controls NSEL, holds a 26% stake in MCX. FTIL and MCX are the promoters of the MCX-SX stock exchange.
MCX's net profit fell 7.14% to Rs 60.12 crore on 3.02% increase in total income to Rs 151.35 crore in Q1 June 2013 over Q1 June 2012.
MCX is a dominant player in commodity exchanges in India.

GIC Re looks for 30% mandatory cession from life insurers

Non-life insurers cede 5% risks compulsorily to the reinsurer

Life insurance companies may have to transfer up to 30% of their risks mandatorily to General Insurance Corporation of India (GIC Re), the state owned sole national reinsurer.

A K Roy, chairman and managing director of GIC Re said that the reinsurer would be very happy if 30% mandatory cession is approved by the insurance regulator.

In the Irda (Life Insurance-Reinsurance) Regulations, 2013 notified in the gazette, Insurance Regulatory and Development Authority (Irda) mandated life insurance companies to reinsure with domestic reinsurers, a percentage of sum assured, on each policy. The regulator had said that this percentage will be notified by the regulator and will not exceed 30% of the sum assured. Hence, it could be anywhere between 0-30%.

GIC Re has taken up the matter with the regulator to fix this percentage and has sought obligatory ceding from the life insurers of up to 30%. Presently, only general insurance companies have mandatory cession. Mandatory cession to GIC means that out of the total risks, a fixed percentage has to be reinsured with the national reinsurer.

Though non-life players were earlier mandated to transfer 10% of their risks to GIC Re, it has been reduced to 5% for this financial year. This fixed cession could vary from one year to the other and is decided by the regulator. The Irda guidelines seek to retain maximum reinsurance business within the country.  Industry experts said that this would make the Indian reinsurance industry more healthy since more business would be retained in India.

Life insurance companies are mostly dependent mostly on foreign reinsurance firms. Since the risks and losses in this segment are lower, industry players said that mandatory ceding of risks within the country to GIC Re would be a boost to the latter's business. Roy had earlier said that apart from India, GIC would also be looking at international markets to source business in life segment.

For 2012-13 financial year, GIC Re wrote a gross global premium of Rs 15,086 crore, registering a growth of 10.8% over the previous year. It posted a profit after tax of Rs 2,345 crore for financial year 2012-13, as compared to loss of Rs 2,469 crore for 2011-12.

The Irda guidelines seek to retain maximum reinsurance business within the country. Industry experts said that this would make the Indian reinsurance industry more healthy since more business would be retained in India.

General insurance business is considered a riskier proposition due to the high losses in segments like motor insurance. Last year, Roy had said that they had faced about Rs 3,000 crore in the last three to four years due to the obligatory cession. This loss was faced as GIC Re has to partake 10% of the loss faced by insurers in policies. Since the underwritten policies on segments like motor insurance have been facing losses, this has been passed on to GIC Re.

Ranbaxy rallies as US plant gets FDA clearance report

The stock has rallied over 6% to Rs 419 on the Bombay Stock Exchange.

Ranbaxy Laboratories has rallied over 6% to Rs 419 on reports that the pharmaceutical company have got a clean chit from the American regulator.

According to media reports, the US Food and Drug Administration (FDA) have said it is satisfied with the manufacturing practices at Ranbaxy’s US facility, Ohm Laboratories Inc.

This would enable Ranbaxy, to continue supplying from this unit; it could also allow it to shift some pending applications to Ohm from its Mohali unit in India, under an FDA import alert, to avoid delays in product launches, the Business Standard report suggests.

This US facility was under surveillance of the FDA since the end of 2012.

The stock opened at Rs 432 and touched high of Rs 435 in early morning deals on the BSE. A combined around two million shares change hands on the counter on BSE and NSE till 0930 hours.

SEBI floats guidelines to set up Real Estate Investment Trusts

With an aim to lure investments to the country’s dwindling realty sector, market watchdog Securities and Exchange Board of India (SEBI) has issued draft guidelines to set up Real Estate Investment Trusts (REITs) in India, which could open up new funding channels for real estate assets in the country. However, the regulator, in its draft note for a separate regulatory framework has allowed REITs only for large assets.

As per the draft guidelines, all the REIT Schemes will be close-ended real estate investment schemes that will invest in real estate, whose returns will be derived mainly from rental income or capital gains from real estate. The objective of REITs, to be registered as trusts with SEBI, will be to organize, operate and manage real estate collective investments.

Further, as per the proposal, A REIT will be first set up as trusts which will have trustees, sponsors, managers and a principal valuer. The trust, once formed, will initially apply for a SEBI registration and only after getting approval, will be allowed to offer units to the public and get the units listed, similar to initial public offering (IPOs) of equity shares, albeit in a different structure.

However, only those companies can come with IPO, whose assets size under the REIT is not less than Rs 1,000 crore ($160 million). Further, SEBI has called for a minimum initial offer size of Rs 250 crore and minimum public float of 25% to ensure adequate public participation and float in the units. Consequently, it is proposed that the minimum subscription and unit size would be Rs 2 lakh and Rs 1 lakh respectively.

The total REIT market size in the Asia-Pacific region is approximately $205 billion but India, so far has been unable to take advantage of this funding opportunity, mainly because of the lack of an existing regulatory framework. The country back in 2008 too, issued draft regulations for REITs, but they were withdrawn in favour of allowing asset management firms to launch real estate mutual funds, with that initiative failing too.

Induslnd Bank gains on opening three new branches in Vadodara

Induslnd Bank, one of the fastest growing new-generation private sector banks in the country has opened three new branches in the Vasna Road, Dandia Bazaar and Subhanpura area of Vadodara on October 9th & 10th, 2013 respectively.

With the inauguration of three new branches in Vadodara, the bank now has eight branches in Vadodara and overall thirty nine branches in the state of Gujarat. The bank also announced its plans to further strengthen its presence and customer reach in Gujarat.

The increase in number of new branches will allow more number of customers to avail the bank’s unique customer propositions along with full range of services ranging from Saving & Current Accounts, Loan products to Wealth Management and Credit cards. Besides, innovative facilities such as ‘My Account, My Number’, ‘Choice Money ATM’ and ‘Cash on Mobile’ among others would also be available to the customers from day one.

Markets open firm, Infy Q2 nos cheer

Infosys is currently trading at Rs. 3,222 up Rs. 89 or 3%.

Key benchmark indices opened higher buoyed by Infosys Q2 results.

At 9:19am, the 30-share BSE Sensex was up 131 points at 20401 levels while NSE Nifty was at 6061 up 40 points.

Infosys is trading higher by 3% at Rs 3,219 on the BSE after the information technology (IT) major revised its FY14 revenue guidance to 9-10% from 6-10% in dollar terms.

Meanwhile, the country’s second-largest software exporter has reported a lower than expected net profit growth for the quarter ended September 2013 as demand for information technology services slowed.

Infosys stocks witnessed its highest pre-open levels since Jan 2011. It is currently trading at Rs. 3,222 up Rs. 89 or 3% up.

The Indian rupee is trading at 61.22 against the dollar.

"During the quarter we witnessed broad-based volume growth, robust client additions, five large deal wins and increased sales momentum of our big data and cloud offerings. This growth is a result of our focus on execution, which helps our clients achieve their objectives." said S. D. Shibulal, CEO and Managing Director.

Hero MotoCorp unveils 15 new offerings

This is, however, just the beginning. Innovation is a way of life at New Hero, says PAWAN MUNJAL

PAWAN MUNJAL, Managing Director & Chief Executive Officer, said “Innovation, Technology, Youth & Speed – these are the key buzzwords at New Hero.
It has just been over two years since we commenced our solo journey, and in such a short span of time, we have made significant upgradation of our existing line-up, incorporating next generation technology and features.
As the market leader, this is also a reiteration of our capability to develop indigenous technologies, and catapult to an era of technologically superior and aesthetically appealing, youthful two-wheelers.

“This is, however, just the beginning. Innovation is a way of life at New Hero, and I have given complete freedom to our young engineers to think beyond the conventional and give shape to their ideas. Come Auto Expo in February next year, and we will be showcasing yet another range of two-wheelers on new platforms.”


THE NEW LAUNCHES

The ALL New 100cc Splendor iSmart with ‘i3S Technology’

Consolidating its leadership position further in the 100cc category, HMCL has introduced the new i3S technology (Idle Stop and Start System) for two-wheelers which will make its debut in the all-new Splendor iSmart. i3S is a green technology that automatically shuts the engine when idling and turns it on when needed, thus giving more mileage in congested cities. The evolution of Hero-developed i3S technology signifies the technological excellence achieved by the company within a short span of time and HMCL has already filed for patent for this innovation. All this, coupled with impressive new features, will offer a great combination of style, performance and safety to customers.


The All New 100cc Pleasure with ‘Integrated Braking System’

Following this up with a remarkable innovation, is Integrated Braking System (IBS) that is being introduced in the All-New Pleasure. The IBS improves the rider’s safety and provides comfort of one brake handle for both front and rear wheels. This technology has also been developed by HMCL’s R&D team and the company has already filed for patent for this technology. With this, HMCL expects to further enhance its presence and consolidate its position even more strongly in the scooter segment as it will be a standard feature across all Hero MotoCorp scooter brands in the future. HMCL’s share in the scooter market has consistently been going up, selling an average of over 55,000 units per month with its two existing scooter brands – the 100cc Pleasure and 110cc masculine Maestro.

The all-new Pleasure is loaded with new utility features that include mobile charger socket, lockable glove box, boot light in luggage box, combination ignition lock with seat opening and side stand indicator among others. The new Pleasure also comes with fresh contemporary styling to target the women riders.


The all-new 150cc Xtreme with ‘Electronic Immobiliser’

Next in league is the Electronic Immobiliser which will debut on the new 150cc Xtreme. The electronic immobiliser is a security device that prevents the engine from running without the correct key. Another key introduction that will offer utmost safety to the premium segment Hero commuters is the Side Stand Switch with automatic ignition cut-off.

All this will come with host of stylish exterior features that include jazzy new speedometer, headlight with stylish eyebrow lights, new LED tail light with light guides, chunky fuel tank among others. The new Xtreme will also be equipped with a mobile charger socket proving greater utility to the rider.

The all-new 223cc Karizma & ZMR

HMCL already enjoys a very strong presence in the above-220cc space where it rules the segment with its powerful brand – Karizma. HMCL today unveiled the technologically superior & internationally styled Karizma & ZMR.

On the style front, the bikes are loaded with impressive exteriors adding extra oomph to the sporty looks. These include twin headlight, new sporty handle bar, new race-inspired belly pan, muscular front fender, new muffler cover, bulb winker, sporty seating, new side and front faring, wider tyres among others.

The new Karizma is expected to further strengthen HMCL’s foothold in the premium segment as it would add a lot of fun and excitement to the riding experience.


Other Exciting Refreshes

Apart from these offerings, HMCL also showcased a series of refreshes and variants of existing platforms that include the new 100-cc HF Dawn & HF Deluxe with side stand indicator and clear winkers; the New 100-cc Splendor Pro & 125-cc Super Splendor with new graphics, dial design and side stand indicator among others.

Adding zing to the exiting line-up - The new Splendor Pro will come with new carrier and new rear cowl; improved ergonomics on seat; dazzling graphics and black alloy wheels.

Next addition will be the new 100cc Passion Pro with impressive features such as side-stand indicator; service reminder and stylish all-black saree guard. It will be available with new graphics, new dial design and new body colour among other exterior enhancements.

As a distinct addition to the series, HMCL unveiled the HF Deluxe Eco with stylised air foils on leg guards and stylish aero mirrors which helps in lowering the air resistance at higher speeds. Moreover, it is equipped with tyres with low rolling friction.

Last but not the least- adding glamour to two of its most attractive bikes, HMCL presented the new Glamour & Glamour FI with fresh racy graphics and dial design.

All these models have been re-designed keeping in mind Hero’s philosophy of SafeTech, StyleTech and Innovation.

Asian stocks hit 3-week highs on hopes of US debt deal

Propelled by gains on Wall Street; MSCI's index of Asia-Pacific shares outside Japan rises 0.7%

Asian stocks jumped to three-week highs on Friday, propelled by gains on Wall Street as investors took a chance and cheered perceived progress to avert a possible US default, even as questions remained over whether a deal could be struck.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.7%, reaching highs not seen since September 23. Tokyo's Nikkei climbed 1.1%, while Australian shares put on 1.8%.

The rally in Asia came after US stocks jumped over 2% in their biggest one-day gain since January 2 as investors grew confident squabbling US politicians would at the very least avert a possible US debt default next week.

Republicans, who have not passed budget funding, on Thursday offered a plan that would extend the US government's borrowing authority for several weeks, staving off a default that could come as soon as October 17.

While no deal emerged from a meeting at the White House, the two sides said they would continue to talk.

Markets were briefly unsettled after the New York Times reported President Barack Obama had rejected the plan, but Republican Paul Ryan later said Obama had neither accepted or rejected the proposal.

The conflicting news briefly saw US stock index futures fall 0.5%, trimming some of Thursday's 2% rally. They have since recovered most of that fall.

"We are watching this very closely like everyone else. Some people have been going into cash. I wish we were all focusing on matters of economics and earnings, but we are unfortunately trading on this soap opera," said Michael Cuggino, president and portfolio manager at Permanent Portfolio Funds.

The dollar index, which tracks the greenback's performance against a basket of major currencies, was little changed at 80.518, having hit a two-week high of 80.595 overnight.

Against the yen, the dollar edged up 0.2% to a 1-1/2 week high of 98.36. The euro stood at $1.3520, up from this week's trough around $1.3485.

Commodities paused after posting solid gains on Thursday. US crude eased 0.2% to $102.80 a barrel, following a 1.4% rally, while copper slipped 0.1% to $7,137.00 a tonne, after a 0.6% rise.

Traders warned the US fiscal crisis was very fluid and any setback in resolving it could see markets quickly turn tail.

"In the interim, fourth-quarter GDP will surely feel the adverse effects from the slowdown in economic activity and the lack of transparency with respect to economic data releases," said Bonnie Baha, senior portfolio manager at DoubleLine Capital.

"As a result, under the current set of circumstances, the prospect of a QE tapering is almost certainly off the table for 2013, she added, referring to the Federal Reserve's bond-buying stimulus programme known as Quantitative Easing.

RBI sold $2.46 bn in spot market in August

Rupee had weakened significantly in August due to dollar demand

The Reserve Bank of India’s (RBI) net dollar sales in the forex spot market was $2.46 billion in August — when the rupee touched an all-time low of 68.85 against the dollar during intra-day trades — compared with $5.98 billion in July.

According to RBI data released on Thursday, it sold $3.18 billion and bought $324 million in August.

Notably, RBI’s activity in the spot market was much higher in August, with the outstanding net forward sale rising to $9.05 billion, against $4.74 billion in July, RBI data showed.

The rupee had weakened significantly in August due to month-end dollar demand from importers. Besides, even foreign institutional investors (FIIs) were selling their holdings in the domestic market on fears of US Fed tapering. FIIs were net sellers to the tune of $2.4 billion in August. Although RBI had taken various liquidity tightening measures to help the rupee in July, the rupee went on weakening.

Given the extent of sharp rupee slide and volatility in the market, RBI had limited room to go on selling dollars in the spot market to arrest rupee slide in August, said two senior foreign exchange dealers.

India’s foreign exchange reserves had been depleting through the five months till August. They declined from $292.6 billion at end-March to $275.4 billion at end-August. Forex reserves were down by $4.76 billion in August itself, according to RBI data.

RBI seemed to have chosen to sell dollars in the forward market to signal the market had a choice to reverse the contracts, said a treasury head of a private bank.

Net dollar sales in the spot market in September would have declined further as the rupee started showing signs of recovery. “In September, the rupee recovered due to which intervention by RBI in the foreign exchange market by way of dollar sale by state-run banks would have declined,” said the treasury head of a public sector bank.

On Thursday, the rupee ended at 61.36 against the dollar, compared to the previous close of 61.94. The Indian currency’s appreciation was on the back of reports that the government was in talks for entry into benchmark indexes. The rupee had opened at 62.17 against the dollar and, during intra-day trades, touched a high of 61.33 and a low of 62.29.

Tracking the appreciation in the rupee, government bond yields fell. The yield on the 10-year benchmark government bond 7.16 per cent 2023 ended at 8.42 per cent, compared to the previous close of 8.46 per cent.

Infosys ups FY14 guidance to 9-10%

Consolidated PAT (inclusive exceptional items) at Rs 2,410 crore

Infosys today raised its FY14 guidance to 9-10% from 6-10%.

The company reported consolidated PAT (inclusive exceptional items) at Rs 2,410 crore. It reported  a one-time visa settlement charge of Rs 219 crore.

Consolidated Q2 revenues stood at Rs 12,965 crore while consolidated EBIT margin came in at 23.6%. The consolidated adj EBIT was Rs 3,056 crore.

On a standalone basis, Infosys Q2 income stood at Rs 11,482 crore vs Rs 9,959 crore q-o-q. Standalone net profit was at Rs 2,326 crore vs Rs 2,250 crore q-o-q.

Consolidated dollar revenue up 3.76% q-o-q at $2,066 million.

In pre-opening, Infosys opened at the highest level since Jan 2011.