Thursday, 31 October 2013

Titan Industries Q2 net profit at Rs1866.50 mn

Total Income has increased from Rs. 22998.30 mn for the quarter ended September 30, 2012 to Rs. 23593.50 mn for the quarter ended September 30, 2013.


Titan Industries Ltd has posted profit after taxes of Rs. 1866.50 million for the quarter ended September 30, 2013 as compared to Rs. 1801.70 million for the quarter ended September 30, 2012.

Total Income has increased from Rs. 22998.30 mn for the quarter ended September 30, 2012 to Rs. 23593.50 mn for the quarter ended September 30, 2013

SBI raises fixed deposit rate by 0.2% on select maturity

The new rate would be effective from tomorrow, it added

Days after RBI hiked short-term lending (repo) rate by 0.25%, State Bank of India (SBI) today raised fixed deposit rate by 0.2% on select maturity.

With the revision, term deposit between 180-210 days less than Rs 1 crore would now earn 7% against existing 6.80%, SBI said in a statement.

The new rate would be effective from tomorrow, it added.

However, there is no change in the interest rates for other maturities in less than Rs 1 crore bracket.

For high valued fixed deposit above Rs 1 crore, interest rates have been reduced between 0.25% to 2%.

The maximum rate reduction of 2% is there in the tenor of 7-60 days. The rate would be 6.50% as against existing 8.50%.

Besides, over Rs 1 crore term deposit between 61 days to 1 year would also attract lower interest of 7.75% against 8.25%, down 0.5%.

At the same time, 2-10 year fixed deposit in the same segment would earn 8.50%, down 0.25%.

Earlier this week, RBI raised short-term lending (repo) rate by 0.25% to 7.75% making cost of fund expensive for the banks.

At the same time, the RBI lowered marginal standing facility (MSF) rate by a similar margin to 8.75%.

Accordingly, the bank rate is reduced to 8.75% with immediate effect. Consequently, the reverse repo rate is adjusted upward to 6.75%.

The RBI has left unchanged other rates such as the cash reserve ratio at 4% and the mandatory holdings in government securities and other liquid assets as a solvency measure (SLR) at 23%.

Bank of India surges as asset quality improves

Shares of Bank of India surged higher in trade as in-line net profits and improved asset quality boosted sentiment.

The bank reported a net profit of Rs 622 crore for the quarter ended September 2013, up 10.5 per cent, as against a net profit of Rs 302 crore in the same quarter last fiscal.

Net interest income increased 15 per cent to Rs 2,527.2 crore against Rs 2,196 crore in year-ago period.

The bank surprised the street on asset quality front. Its gross NPAs stood at 2.93 per cent vs 3.04 per cent, Q-o-Q and net NPAs at 1.85 per cent vs 2.10 per cent, Q-o-Q.

The bank reported treasury hit of Rs 647.8 crore, of which Rs 466 crore was booked in second quarter.

At 2.12 p.m.; the stock was at Rs 202.35, up 29.05 per cent, on the BSE. It touched a high of Rs 202.20 and a low of Rs 173.85 in trade today.

Sensex above 21,100 mark; broader markets outperform

Benchmark indices have recovered and are trading marginally higher amid volatility ahead of October derivatives expiry today.

Traders will roll over positions in the futures & options (F&O) segment from the near month to November series.

The data for two important indicators -- fiscal deficit and core sector -- for the month of September are likely to be released today.

At 12:50 PM the Sensex was up 49 points at 21,083 and the Nifty was up 12 points at 6,264.

According to Devangshu Datta, technical analyst, “Very narrow range trading is likely in the Nifty with support at 6,235- resistance at 6,270. There's a bullish bias so aggressive traders could consider carrying over long positions into the November series.”

On the global front, Asian markets suffered a glancing blow on Thursday after the U.S. Federal Reserve's latest policy outlook was deemed less dovish than some had wagered on, lifting both bond yields and the dollar.

The damage was mostly superficial with MSCI's index of Asia-Pacific shares outside Japan off just 0.6 percent. Shares in Shanghai lost 0.6 percent, while Australian markets held steady.

Sentiment was helped by the Bank of Japan's decision to stick with its massive stimulus program that has shown tentative signs of breaking the grip of deflation.

Back home, the rupee is trading at 61.43 versus its close of 61.2350/2450, hurt by broad gains in the dollar following the U.S. Federal Reserve's decision to keep its massive bond-buying stimulus in place.

Bank of India, Dr Reddy's Labs, IDFC, Sesa Sterlite, Titan Inds will unveil their second quarter earnings.

On the sectoral front, BSE Consumer Durables, Metal and Capital Goods indices have surged between 1-2%. However, Healthcare, FMCG, Realty and Power are trading marginally lower.

The main gainers on the Sensex at this hour include Wipro, Sesa Sterlite, Bharti Airtel, RIL, and Tata Motors have spurted between 1-2%.

On the losing side, ONGC, M&M, HUL, Dr Reddy’s Lab and Cipla have declined between 0.9-1.3%.

Bank of India (BOI) has surged 10% to Rs 190 after reporting more than 100% year on year (yoy) growth in net profit at Rs 622 crore for the quarter ended September 2013 (Q2) as bad loan falls. The state owned bank had posted profit of Rs 302 crore in year ago quarter.

The broader markets continue to outperform the benchmark indices- BSE Midcap and Smallcap indices have gained between 0.5-1%.

The market breadth in BSE turns negative with 1,062 shares declining and 1,058 shares advancing.

Brokers can retain up to Rs. 10,000 in active client accounts

To ensure operational ease in providing services to their clients, brokers have been allowed to retain up to Rs. 10,000 in trading accounts of active customers after obtaining their written consent.

As per the existing practice, the brokers were supposed to settle the funds and securities in running accounts of their clients on a quarterly or monthly basis, under which they were required to transfer any excess funds from the client's trading account to his or her bank account.

However, the stock exchanges, in consultation with market watchdog Securities and Exchange Board of India (Sebi), have now decided to ease these norms "based on representations received from investors and members (brokers)".

In separate circulars, BSE and NSE said that "to address the administrative/operational difficulties in settling the accounts of regular trading clients (active clients), the Member may retain an amount of up to Rs. 10,000/- (net amount across segment and across stock exchanges), only after obtaining written consent of the client."

However, this threshold limit on retention of amount would not be applicable in case of clients who have not traded even once during the last one month/quarter, as the case may be, and a settlement would be required to be done at the end of every month of quarter.

Also, the trading members can settle the running accounts across segments and across stock exchanges for a particular client, the circulars said.

In respect of derivative market transactions, apart from the margin liability as on the date of settlement, the broker can retain additional margin requirement of maximum up to 125 per cent of margin requirement on the day of settlement to take care of any margin obligation arising in next 5 days.

Also, the actual settlement of funds and securities shall be done by the member, at least once in a calendar quarter or month, depending on the preference of the client.

Sebi had first announced the running account settlement norms in December 2009, pursuant to which the stock exchanges had asked their trading members to put in place required steps to implement these measures.

Small investors to get inflation-linked savings scheme soon

The Reserve Bank of India plans to soon launch a 10-year savings instrument that will offer inflation-linked returns to small investors as an alternative to investing in gold.

"It is proposed to launch Inflation Indexed National Saving Securities (IINSSs) for retail investors in November/December 2013 in consultation with the government," the RBI said on Tuesday in its Second Quarter Review of Monetary Policy 2013-14.

The inflation-indexed securities for retail investors will be linked to the new (combined) consumer price index (CPI). The interest on these securities would comprise of a fixed rate plus inflation.

"Interest would be compounded half-yearly and paid cumulatively at redemption. These securities will be distributed through banks to reach out to the masses," the RBI said.

Eligible investors would consist of individuals, Hindu undivided families, trusts and charitable institutions.

The Union Budget for 2013-14 had proposed introducing instruments that would protect savings from inflation and provide an alternative to gold as an investment avenue for individuals.

Both the government and the RBI have imposed a host of restrictions on the import of gold, one of the major reasons for the record high current account deficit in the previous financial year.

In another decision, the RBI allowed banks to pay interest on savings and term deposits at shorter-than-quarterly intervals. Banks are currently required to pay interest on such deposits at quarterly or longer intervals.

The central bank said that in order to develop the money and government securities markets, it has been decided to introduce cash settled 10-year Interest Rate Futures (IRF) contracts.

The product design and operational modalities are being discussed with all stakeholders, including market bodies and stock exchanges.

After taking their feedback into account, the RBI in consultation with SEBI, would issue guidelines by mid-November.

The product is expected to be launched by the exchanges by end-December 2013, RBI said.

Crude oil futures down at Rs 5,948 per barrel


Crude oil futures declined 0.1 per cent to Rs 5,948 per barrel today in line with a weak trend in Asian trade.

On the Multi Commodity Exchange, crude oil for delivery in November shed Rs 6 or 0.1 per cent to Rs 5,948 per barrel with a business volume of 765 lots.

Similarly, the oil prices for December delivery moved down by Rs 3 or 0.05 per cent to Rs 5,999 per barrel with a business volume of 46 lots.

Marketmen said that the fall in crude oil futures was mostly in line with a weak trend in Asia after the US Federal Reserve kept its stimulus programme unchanged but gave a rosier-than-expected summary of the economy that fuelled rumours it will start winding down soon.

Meanwhile, crude oil for delivery in December was down by 20 cents to $96.57 a barrel on the New York Mercantile Exchange.

Bank of Baroda gains as Q2 PAT beats estimates

Shares of Bank of BarodaBSE 2.73 % moved higher in trade after the bank reported better-than-expected results for the quarter ended September 2013.

Its net profit for the quarter stood at Rs 1,168 crore. The profit is down 10.2 per cent compared to a net profit of Rs 1,301.4 crore in the corresponding quarter last fiscal.

Net interest income for the quarter was inline at Rs 2,895 crore, up 1.1 per cent, against Rs 2,862.3 crore.

Its gross NPAs increased to 3.15 per cent vs 2.99 per cent, Quarter-on-Quarter (Q-o-Q) and net NPAs rose to 1.85 per cent vs 1.69 per cent, Q-o-Q. According to analyst tracking the sector, the asset quality was also better than expected.

Provisions for quarter slipped to Rs 860.8 crore, against Rs 1,017 crore, Q-o-Q.

Domestic net interest margins for September quarter stood at 2.85 per cent vs 2.84 per cent, Q-o-Q and global NIMs slipped to 2.32 per cent vs 2.41 per cent, Q-o-Q.

CASA ratio stood at 32.65 per cent as of September 30.

At 11:50 a.m.; the stock was at Rs 586.65, up 1.02 per cent, on the BSE. It touched a high of Rs 594.85 and a low of Rs 577.05 in trade today.

Rupee trading weak at 61.38 on month-end dolllar demand

The rupee was trading weak by 14 paise at 61.38 against the dollar at 12.15 p.m. local time.

The domestic unit shed 14 paise to 61.38 per dollar in the opening trade against the previous close of 61.24 due to increased dollar demand from banks and importers and strengthening of the greenback oveseas.

However, persistent capital inflows into the equity market restricted the rupee's fall.

It hovered in the range of 61.29-61.45 during the morning deals.

On Wednesday, the rupee had ended stronger due to heavy foreign capital inflows and comments on diesel price hike that could reduce the fiscal deficit concerns.

“India should immediately raise diesel prices by about 9.5 per cent or Rs 5 a litre,'' a government panel had said on Wednesday, along with other measures aimed to cut the government’s huge oil subsidy bill.

On the much-awaited US policy meet, the Federal Reserve extended its support for a slowing US economy, sounding a bit less optimistic about growth and saying it will keep buying $85 billion bonds per month for the time-being.

According to Abhshek Goenka, Founder and CEO of India Forex Advisors: "The Fed did not say that tapering should be postponed until 2014. Instead, they will continue to monitor incoming data and assess whether it is appropriate to adjust the level of asset purchases, leading some investors to believe that asset purchases can possibly be reduced this year.

"We believe that there is still a mere possibility of the tapering in December; no matter how small it may be, to be enough to cause a rise in the dollar. The bottom line is that the dollar rallied because the FOMC statement was not nearly as dovish as the market anticipated and even included a few hints of optimism," Goenka said.

According to a public sector dealer, the rupee is likely to see some support with the country’s finances expected to be better placed with a hike in diesel prices.

“The rupee further got a boost after the RBI Governor on Wednesday said that another tightening of interest rates from here on could also lead to over-tightening, indicating no further rate hike expected in the next policy,” the dealer said.

On Tuesday, the RBI had increased the policy repo rate to 7.75 per cent and cut the marginal standing facility (MSF) rate to 8.75 per cent, as was widely expected. It also opened the 7-day and 14-day term repo window to ease liquidity for banks, thereby supporting the market.

Call rates and G-Secs

Yield on the 10-year benchmark government bond 7.16 per cent 2023 remained flat from the previous close of 8.57 per cent. Bond prices opened flat from the previous close of Rs 90.90.

The overnight call money rate, rate at which banks borrow from each other for their short-term funding requirements, opened higher at 8.75 per cent from the previous close of 8.7 per cent.

GMDC dips as Q2 profit more than halves

The stock was down 7% at Rs 97 in early morning deals on the Bombay Stock Exchange.

Shares of Gujarat Mineral Development Corporation (GMDC) has tanked nearly 7% to Rs 97 on BSE, after reporting a sharp 73% year on year decline in standalone net profit at Rs 46 crore for the quarter ended September 30 (Q2) due to drop in net sales. The company had profit of Rs 169 crore in a year ago quarter.

During the quarter review, the company’s total income from operation more than halved at Rs 175 crore against Rs 382 crore in the corresponding quarter of previous fiscal.

“Lower production and sales during the quarter in South Gujarat mines was due to prolonged heavy rain,” GMDC said in a statement.

The stock opened at Rs 100 and hit a high of Rs 101 so far. A combined around 100,000 shares have changed hands on the counter till morning deals on BSE and NSE.

Parikh panel recommends steep hike in diesel prices

An expert panel headed by former Planning Commission member Kirit S Parikh, which was constituted as Finance Ministry was looking to alter the way diesel and cooking fuels are priced to reduce the subsidy burden, has suggested that diesel prices should be hiked by a steep Rs 5 per litre, kerosene by Rs 4 a litre and cooking gas (LPG) rates by Rs 250 per cylinder immediately to cut fuel subsidy bill by Rs 72,000 crore.

In its other recommendations, the panel has suggested that the number of subsidised cooking gas cylinders supplied to households in a year should be cut to 6 bottles of 14.2-kg from the current quota of 9, while the panel has also suggested that after the diesel price hike, oil companies should be given a fixed subsidy of only Rs 6 per litre on diesel and any difference between cost of production and retail price should be passed on to consumers and going further the Rs 6 per litre subsidy on diesel should be liquidated in one year to make the fuel completely deregulated or free from price controls.

However, the expert panel favoured continuation of existing pricing principles for controlled petroleum products until diesel pricing is made market determined and said that ONGC and Oil India do not have unlimited capacity to share fuel subsidy burden and their contributions should be linked with crude oil prices from next financial year, while the Gail India do not get cheaper gas anymore, therefore, its contribution should not exceed the gross profit made on sale of liquefied petroleum gas.

Though, it is unlikely that the poll bound government will accept all the proposals of the panel but if implemented, the recommendation will reduce fuel subsidy by Rs 30,250 crore during the reminder period of the current fiscal from a projected Rs 138,435 crore.

DLF stock slips as Q2 net profit falls to Rs 100 cr

Realty major DLF BSE 0.40 % disappointed the street with lower than expected quarterly results. The company reported a net profit of Rs 100 crore for the quarter ended September. It had reported a net profit of Rs 138 crore in the corresponding quarter last fiscal.

DLF reported exceptional gains of Rs 79.7 crore in second quarter. Thus, adjusted net profit stands at Rs 20 crore vs Rs 138 crore, down 86 per cent post exceptional gains.

Net sales for the period fell to Rs 1,956 crore against Rs 2,040 crore in year-ago period.

EBITDA was down 20 per cent at Rs 594 crore against Rs 746 crore. Margins also slipped to 30.4 per cent vs 36.6 per cent.

According to analysts, higher employee costs and other expenses dent margins. Interest costs have risen 17 per cent over last year, 3 per cent over last quarter.

The company is expected to cut net debt to Rs 17,500 crore by year end. It has sold non core assets worth Rs 655 crore in second quarter.

At 09:40 a.m.; the stock was at Rs 149, down 0.13 per cent, on the BSE. It touched a high of Rs 150.20 and a low of Rs 145 in early trade.

Pipavav Defence bags order worth Rs 920 cr

Pipavav Defence and Offshore Engineering Company Ltd has emerged as the lowest bidder for building 14 Fast Patrol Vehicles (FPVs) for the Indian Coast Guard. The order value would be about Rs 920 crore.

In a filing with the stock exchanges, Pipavav Defence said that it was declared the lowest bidder by the Indian Coast Guard for design and construction of 14 FPVs under the competitive bidding process.

FPVs are primarily used for patrol within Exclusive Economic Zone (EEZ), coastal patrol, anti-smuggling, antipiracy and search & rescue operations.

The company is already executing a contract for delivery of five Naval vessels valued at about Rs 2,975 crore.

Shares of Pipavav Defence were trading at Rs 52.25, up 80 paise, on the BSE.

Mcleod Russel India gains as Q2 net profit rises by 7%

Mcleod Russel India is currently trading at Rs. 283.35, up by 4.95 points or 1.78% from its previous closing of Rs. 278.40 on the BSE.

The scrip opened at Rs. 282.00 and has touched a high and low of Rs. 285.00 and Rs. 280.00 respectively. So far 7,974 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 386.95 on 22-Feb-2013 and a 52 week low of Rs. 240.35 on 20-Aug-2013.

Last one week high and low of the scrip stood at Rs. 290.00 and Rs. 273.50 respectively. The current market cap of the company is Rs. 3,108.00 crore.

The promoters holding in the company stood at 45.71% while Institutions and Non-Institutions held 39.52% and 14.77% respectively.

On standalone basis, the company has posted a rise of 6.59% in its net profit at Rs 245.49 crore for the quarter ended September 30, 2013 as compared to Rs 230.31 crore for the same quarter in the previous year. Total income of the company has increased by 12.03% at Rs 511.35 crore for quarter under review as compared to Rs 456.42 crore for the quarter ended September 30, 2012.

Mcleod Russel India is the largest tea producing company in the world. In July 2005 McLeod Russel acquired Borelli Tea Holdings from the Magor family based in England and took over the 17 tea gardens of its Indian subsidiary Williamson Tea Assam. McLeod Russel is the largest tea exporter from India with a strong customer base in United Kingdom and Europe.

Fed maintains stimulus on growth concern

US Federal Reserve said it would keep buying $85 billion in bonds a month for the time being

The Federal Reserve extended its support for a slowing US economy on Wednesday, sounding a bit less optimistic about growth and saying it will keep buying $85 billion in bonds per month for the time being.

In announcing the widely expected decision, Fed officials nodded to weaker economic prospects due in part to a fiscal fight in Washington that shuttered much of the government for 16 days earlier this month.

The Fed indicated the recovery in housing had lost some steam, while noting some reversal in a recent spike in borrowing costs.

"Available data suggest that household spending and business fixed investment advanced, while the recovery in the housing sector slowed somewhat in recent months," the Fed's policy-setting Federal Open Market Committee said. "Fiscal policy is restraining economic growth."

The labour market has shown "some" further improvement, the Fed said, tempering its description after a recent weakening in the jobs figures. It dropped a reference to a "tightening of financial conditions observed in recent months" from its list of risks to the outlook, but many economists stuck with bets for stimulus to stay into next year.

"Until the economic data strengthens, and strengthens meaningfully, I think expectations for tapering are going to remain subdued," said Rishna Memani, chief investment officer at Oppenheimer Funds in New York. "The likelihood of anything happening in December is modest."

Esther George, president of the Kansas City Federal Reserve Bank, dissented against the decision as she has at every FOMC meeting this year, favouring a modest reduction in the pace of bond purchases.

Untapered
The Fed shocked financial markets in last month by opting not to scale back its bond buying, after allowing a perception to harden over the summer that it was ready to start easing off on stimulus. Its caution has since been vindicated.

Consumer and business confidence has been dented by the bitter political fight that triggered the government shutdown and pushed the nation to the brink of a potentially devastating debt default, and a slew of recent data has pointed to economic weakness.

Reports on Wednesday showed US private-sector employers hired the fewest number of workers in six months in October, while inflation stayed under wraps last month.

Other recent data on hiring, factory output and home sales in September had already suggested the economy lost a step even before the government shut down. Readings on consumer confidence this month have shown the fiscal standoff rattled households.

The soft tone in the data has led markets to recalibrate forecasts for a tapering in the bond purchases and has pushed rate hike expectations back into mid-2015 at the earliest.

Before the FOMC statement's release, futures markets indicated a 52 per cent chance of the first quarter-point rate hike by April 2015; that rose to 96 per cent by September 2015. Yields on the 10-year US Treasury note have fallen back to 2.50 per cent, compared with almost 3 per cent in early September.

The Fed left its guidance on when it may raise interest rates unchanged, saying current rates of near zero would be appropriate as long as the jobless rate remained above 6.5 per cent and annual inflation remained under 2.5 per cent.

In response to the deepest recession and weakest recovery in generations, the US central bank cut interest rates to near zero and more than quadrupled its balance sheet to $3.8 trillion. The response has not been uncontroversial, with some Fed hawks and many Republicans arguing there is a risk of runaway inflation or financial market bubbles.

However, core Fed officials, including Chairman Ben Bernanke and his presumptive successor, Vice Chair Janet Yellen, have argued that the threat of persistently high unemployment is the most pressing issue right now. Data on Wednesday showed consumer price inflation at just 1.2 per cent in the year through September, well below the central bank's 2 per cent target.

Sensex opens marginally in the red

The Sensex and the Nifty fell over 0.1 per cent in the opening session on Thursday on fresh selling by funds and retail investors owing to weak global cues.

At 9.15 a.m., the 30-share BSE index Sensex was down 37.28 points (0.18 per cent) at 20,996.69 and the 50-share NSE index Nifty was down 11.10 points (0.18 per cent) at 6,240.60.

Asian shares were down tracking overnight cues from the Wall Street. US stocks had ended lower on Wednesday, with the Standard & Poor’s 500 Index halting a four-day winning streak, after the Federal Reserve fuelled bets that it will begin to cut stimulus even as it maintained the pace of monthly bond buying as expected.