Sensex, Nifty down; IT, teck scrips gain

Some buying activity is seen is IT, teck and metal sectors on BSE, while consumer durables, power, realty, banking and PSU sectors are losing sheen

At 2:35 PM, S&P BSE Sensex is 20,830 down 64 points, while CNX Nifty is at 6,190 down 24 points.

BSE Mid-cap is at 6,236 down 50 points, while BSE Small-cap is at 6,046 down 52 points.

Some buying activity is seen is IT, teck and metal sectors on BSE, while consumer durables, power, realty, banking and PSU sectors are losing sheen.

Tata Steel, Infosys, Hindalco, TCS, Bajaj Auto, SSLT. HUL, Sun Pharma and Hero MotoCorp are up on BSE, whereas BHEL, Tata Motors, SBI, ICICI Bank, Tata Power, Bharti Airtel, RIL and Jindal Steel are showing some weakness.

Larsen & Toubro said that its subsidiary L&T Construction has won orders worth Rs. 23.09 billion. L&T is 0.12% down on BSE.

Bajaj Electricals gained 2.37% on the news that its Engineering & Project Business Unit has bagged Power Distribution Projects worth Rs. 7.57 billion under RGGVY (Rajiv Gandhi Gramin Vidyutikaran Yojna) Scheme.

Ashok Leyland is 3.95% down on BSE on the news that the company has reported a net loss of Rs. 250.54 million for the quarter ended September 30, 2013 against net profit of Rs. 1.43 billion for the quarter ended September 30, 2012.

Raymond plans to increase its exports four-fold in the next five years to seek growth as the domestic market faces a relative slowdown. Raymond is 0.98% down on BSE.

Essar Ports is 1.99% down on BSE on the news that the company has failed to qualify for the Rs. 80 billion fourth container terminal bid at Jawaharlal Nehru Port Trust.

Bajaj Auto reported a 4% decline in motorcycle sales at 348,323 units in October. In the commercial vehicles category, the company said its sales stood at 37,000 units against 50,316 units in the corresponding month last year, down 26%. The scrip is 1.09% up on BSE.

The Telecom Commission has proposed raising the base price of spectrum in the 1800 Mhz band by more than 15% over what the sector regulator had suggested, and in the 900 Mhz by around 25%, though the starting levels still remain sharply lower than those in the past two auctions.

The Reserve Bank said it has received $15.2 billion so far from the special swap windows opened to attract FCNR-B deposits as well the special ECB window facility for banks.

Nikkei closed 108 points down at 14,228, while Hang Seng closed 155 points down at 22,881.

Oil Ministry wants govt to cut duties on branded diesel, petrol

With an aim to cut the country’s fuel consumption and to enhance the fuel efficiency, oil ministry has recently asked the government to cut duties on branded petrol and diesel that offer better mileage. The move will help to cut down the prices of branded fuels leading to attract consumers to opt for branded fuels, which will help improve the fuel efficiency by about 2 percent, resulting in reduction in overall demand for petroleum products.

Oil marketing companies had launched specialised products (branded petrol and diesel) to enhance the fuel efficiency of new generation vehicles. Presently, the government levies higher excise duty on premium or branded petrol and diesel, which make them costlier than the normal or unbranded auto fuel. Earlier, in September, the government also withdrew the subsidy support for branded fuels resulting in further downward slide. Currently unbranded petrol is cheaper by around Rs 10, while, unbranded diesel is discounted by Rs 15 a litre from their branded versions. 

Oil ministry has also launched a ‘Nationwide Mega Campaign’ from October 1 to conserve petroleum products through reducing consumption of key petroleum products and minimizing wastage through simple fuel saving measures. The ministry is of the view that the move is a vital step towards demand side management with an saving potential of up to 3 per cent of petroleum  products, equivalent to approximately Rs16,000 crore in one year. In other initiatives to increase fuel efficiency, the Petroleum Conservation Research Association (PCRA) and Bureau of Energy Efficiency (BEE) have jointly formulated an ambitious programme on fuel efficiency covering domestic LPG stoves and agriculture diesel pump sets.

Mahindra to expand used car business

The used car market, with an estimated size of three million units plus, is already bigger than the new car market

Multi-brand used car company Mahindra First Choice Wheels is planning to capitalise on the growth in the burgeoning domestic used car industry.

The city-based company, which opened its 300th outlet in Mulund, intends to add 200 more outlets in the next two years. It expects to sell 65,000 units by the end of this financial year, growth of 41 per cent compared with 46,000 units sold in 2012013. Riding on the 35 per cent compounded annual growth rate in the last five years, the company hopes to touch 1,00,000-unit sales mark by 2015.

Rajiv Dubey, president (group HR, corporate services and after-market), Mahindra and Mahindra, said, “Our conviction in the Mahindra First Choice business model is driven by the belief that a second-hand car buyer is not a second-class buyer. The continuous investment in products and processes has allowed us to achieve a dominant status in the multi-brand used car space.”

The used car market, estimated at more than three million units, is bigger than the new car market. It is also growing at a faster rate. The current slowdown notwithstanding, it is expected the used car market would grow to double the size of the new car market in the next five years.

According to a recent research report, India's appetite for used cars is expected to swell to 1.8 cars for every one new car sold in the market from 1.2 used cars at present. The domestic used car market thrives on sales made by friends, acquaintances, unknown personnel from the internet or by roadside dealers.

The organised segment of this industry commands a share of 18% presently while the unorganised segment has a share of 82%. However, the organised segment's share has grown from 11% reported 5-6 years ago.

The B and C segment account for 80% of the overall sales at Mahindra First Choice while the A and A+ segment account for five%. The D and E segment account for the balance of 15%.

Sensex, Nifty up; IT, metal scrips gain

Some buying activity is seen is IT, metal, teck and realty sectors on BSE, while consumer durables and power sectors are losing sheen

At 12:57 PM, S&P BSE Sensex is 21,086 up 191 points, while CNX Nifty is at 6,265 up 50 points.

BSE Mid-cap is at 6,312 up 25 points, while BSE Small-cap is at 6,129 up 29 points.

Some buying activity is seen is IT, metal, teck and realty sectors on BSE, while consumer durables and power sectors are losing sheen.

Tata Steel, Infosys, Hindalco, TCS, SSLT, ONGC and L&T are up on BSE, whereas BHEL, Coal India, Bharti Airtel, Tata Motors, Gail and Dr Reddy's Lab are showing some weakness.

Larsen & Toubro said that its subsidiary L&T Construction has won orders worth Rs. 23.09 billion. L&T is 1.48% up on BSE.

Bajaj Electricals gained 3.95% on the news that its Engineering & Project Business Unit has bagged Power Distribution Projects worth Rs. 7.57 billion under RGGVY (Rajiv Gandhi Gramin Vidyutikaran Yojna) Scheme.

Ashok Leyland is 3.39% down on BSE on the news that the company has reported a net loss of Rs. 250.54 million for the quarter ended September 30, 2013 against net profit of Rs. 1.43 billion for the quarter ended September 30, 2012.

Raymond gained 1.34% on BSE on the news that the company plans to increase its exports four-fold in the next five years to seek growth as the domestic market faces a relative slowdown.

Essar Ports is 1.33% down on BSE on the news that the company has failed to qualify for the Rs. 80 billion fourth container terminal bid at Jawaharlal Nehru Port Trust.

Bajaj Auto reported a 4% decline in motorcycle sales at 348,323 units in October. In the commercial vehicles category, the company said its sales stood at 37,000 units against 50,316 units in the corresponding month last year, down 26%. The scrip is 0.98% up on BSE.

The Telecom Commission has proposed raising the base price of spectrum in the 1800 Mhz band by more than 15% over what the sector regulator had suggested, and in the 900 Mhz by around 25%, though the starting levels still remain sharply lower than those in the past two auctions.

The Union Cabinet will discuss the much awaited National Company Law Tribunal (NCLT) today. This body will be set up for implementing most provisions of the new company law.

The Reserve Bank said it has received $15.2 billion so far from the special swap windows opened to attract FCNR-B deposits as well the special ECB window facility for banks.

Nikkei closed 108 points down at 14,228, while Hang Seng is trading 126 points down at 22,910.

L&T Construction bags Orders worth Rs. 23.09bn

The Transportation Infrastructure Business has secured a major order worth Rs694 crores from Kannur International Airport Limited.

L&T Construction has won new orders worth Rs2309 crores across various business segments in October and November 2013.

The Transportation Infrastructure Business has secured a major order worth Rs694 crores from Kannur International Airport Limited for construction of a greenfield airport’s air side works near Kannur city in Kerala.

The scope includes design, engineering and construction of earth work and pavements for runway, basic strips, turning pads, taxiways, apron, access roads, drainage system, related retaining structures, formation platform for landside facilities along with airfield ground lighting system, visual aids for navigation and bird hazard reduction system.
This order adds one more feather to the company’s International airport construction expertise, matching global standards in line with Bangalore, Hyderabad, Delhi and Mumbai International airports.

In Power Transmission & Distribution Business, new orders valued Rs738 crores have been received. This includes an order worth USD 72 Million (Rs447 Crs) received by L&T Oman LLC, a subsidiary of Larsen & Toubro Limited in Oman, from Oman Electricity Transmission Company. The project is to be completed in 20 months and involves engineering, procurement and construction of two nos. 132/33 kV grid stations along with its 132 kV D/C overhead line and cabling works in Muscat Governorate, Sultanate of Oman. This project was won by L&T Oman against stiff international competition.

A turnkey order has also been received from Power Grid Corporation of India Limited for construction  of a 400 kV D/C transmission line under transmission system associated with Mauda Stage - 2 (2 x 660 MW) generation project and two 220 kV D/C transmission line at Dadra & Nagar Haveli.

Another order has been received from Karnataka Power Transmission Corporation Limited for construction of 220 kV D/C Transmission line from Gadag to Bagalkot district in Karnataka on total turnkey basis.

The Buildings & Factories Business has secured an order worth ` 504 crores. The order is from an esteemed customer for construction of 15 Nos. residential towers on design and build model in Bangalore.

The scope of work includes designing and building of foundations, substructure, superstructure and associated mechanical, electrical, plumbing & finishing works.

The Heavy Civil Infrastructure Business has received new orders worth ` 373 crores. The major order is received from Department of Atomic energy for design, engineering and supply of thermonuclear reactor components for cooling water system, chilled water system and heat rejection system at Gujarat.

Additional orders have also been received from various ongoing projects.

Ramco soars on unveiling new HR & Talent Management solution ‘Ramco HCM on Cloud’

Ramco Systems is currently trading at Rs. 98.80, up by 6.80 points or 7.39% from its previous closing of Rs. 92.00 on the BSE.

The scrip opened at Rs. 90.00 and has touched a high and low of Rs. 98.80 and Rs. 90.00 respectively.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 125.50 on 07-Nov-2012 and a 52 week low of Rs. 67.55 on 04-Jul-2013.

Last one week high and low of the scrip stood at Rs. 95.75 and Rs. 90.00 respectively. The current market cap of the company is Rs. 155.00 crore.

The promoters holding in the company stood at 68.73% while Institutions and Non-Institutions held 2.16% and 29.12% respectively.

Ramco Systems, an enterprise software product company focused on delivering ERP on Cloud, Tablets and Smart phones has showcased its all new HR & Talent Management solution, Ramco HCM on Cloud (Human Capital Management). Since the global launch of Ramco HCM on Cloud in June this year, Ramco has added some of the largest business conglomerates in the region as its customer.

Besides, in the last five weeks, the company added 6 new customers for its ERP/ HCM on Cloud offering. This includes Sharaf DG, Engsol, DaarYaas Group, Al Shabab Club, Blue Nile Mashreq Bank and Nesma. The six new customers will together add around 30,000+ users for Ramco HCM. The company also announced go-live of 5 HCM customers which added 15000+ users in the region on Ramco HCM.

Bajaj Electricals bags power distribution projects worth Rs 757 crore

Bajaj Electricals has bagged Power Distribution Projects worth Rs 757 crore under RGGVY (Rajiv Gandhi Gramin Vidyutikaran Yojna) Scheme. The company has bagged first order worth Rs 213.43 crore from North Bihar Power Distribution Company for Supply and Erection of 33/11 KV PSS, Augmentation of 33/11 KV PSS, 33 KV Lines, 11 KV lines, 11/0.4 KV Distribution Sub Stations, L.T. lines, BPL service connections with metering and other allied works for village electrification covering 622 Villages and 221900 BPL Consumers in Kishanganj District, Bihar.

The company has bagged second order worth Rs 354.42 crore from North Bihar Power Distribution Company for  Construction of 33/11 KV PSS, 33 KV Lines, 11 KV Lines, LT lines and to provide BPL connections and allied works on TURN -KEY basis covering 1096 Villages and 368334 BPL Consumers in Purnia District, Bihar. 

The company has bagged third order worth Rs 189.09 crore from South Bihar Power Distribution Company for Construction of 33/11 KV PSS, 33 KV Lines, 11 KV Lines, LT lines and to provide BPL connections and allied works on TURN KEY basis covering 999 Villages and 236433 BPL Consumers in Bhojpur District, Bihar.

Muthoot Finance rallies on heavy volumes

The stock has rallied 17% in past two trading sessions on BSE.

Muthoot Finance has rallied 12% at Rs 123, extending its previous day’s 5% gain on BSE, on reports that the company has filed draft prospectus for a public issue of secured non convertible debentures (NCDs) and unsecured NCDs aggregating up to Rs 300 crore.

A combined 555,672 shares have already changed hands on the counter on BSE and NSE till 0935 hours as compared to an average sub 400,000 shares that were traded daily in past two weeks.

The face value of secured redeemable NCDs and unsecured redeemable NCDs has fixed at Rs 1000 per NCD with a minimum application of Rs 10,000. The NCDs are proposed to be listed on the BSE.

The gold loan financing company plans to invest around Rs 300 crore for setting up 9,000 white label ATMs (WLAs) in the country in the next three years, the Business Standard report suggests quoting managing director George Alexander Muthoot.

The company said it has received RBI and FIPB approval for setting up 9,000 WLAs in the country during the current quarter which will be rolled out soon

Nikkei pauses after earnings flurry, small cap stocks rise

Investors await US data to gauge Fed's plan

Japan's Nikkei share average was flat on Thursday as investors searched for fresh trading opportunities after the recent flurry of earnings, while small cap stocks rose after the Tokyo bourse said it will include them in a new index.

The Nikkei was flat at 14,340.44 in mid-morning trade, hovering around its 25-day moving average of 14,314.31. On Wednesday, the index rose 0.8%.

"The buying has paused for now as investors are looking for fresh macro cues," said Isao Kubo, equity strategist at Nissay Asset Management. "Within the Japanese market, major catalysts like earnings releases have been priced in."

Market analysts said that investors were also awaiting Friday's US nonfarm payrolls data to further gauge when the Federal Reserve will begin winding down its $85 billion-a-month bond-buying programme -- a major driver of risk assets in recent years.

Global markets will also look to the first reading of US third-quarter GDP data due out later in the day.

With nearly three quarters of Nikkei companies reporting quarterly earnings, 64% of them either beat or met market expectations, according to Thomson Reuters StarMine. That compared with 58% in the previous quarterly.

Bellwether exporters were mixed, with Toyota Motor Corp falling 0.8% after its guidance did not meet analysts' expectations, Nissan Motor Co rising 0.7% and Sony Corp shedding 0.4%.

The Topix shed 0.3% at 1,188.13.

The dollar held its ground against the yen at 98.63, still within reach of a two-week peak of 98.86 set Friday.

Online companies such as GungHo Online Entertainment Inc and CyberAgent Inc attracted buying after they were included in a new index comprised of companies with high return on equity and strong corporate governance.

GungHo rose 1.4% and CyberAgent gained 2.7%, while J Trust Co and McDonald's Holdings Co, which were also included, added 2.5% and 0.7%, respectively.

On Wednesday, the Tokyo Stock Exchange and Nikkei Inc said they will launch a new index called JPX-Nikkei Index 400 to begin operation from the start of next year.

Rolta India’s promoters hike stake in the company to over 50%

Rolta India’s promoters have increased their share holding in the company from around 40% to over 50% through creeping acquisitions over the last three years. The promoters continue to increase their holdings further through creeping acquisitions in line with SEBI guidelines.

This is evidence of the confidence of the promoters in the business model of the company, the superiority of its offerings, and the growth potential of the company.

Rolta India conducts business in India, and internationally through subsidiaries in various countries. Rolta is a leading provider of innovative IT solutions built around its intellectual property for many vertical segments, including Federal and State Governments, Defence, Homeland Security, Utilities, Process, Power, Financial Services, Manufacturing, Retail, and Healthcare. The increased holding places Rolta in compliance with Indian Defence manufacturing/procurement guidelines that mandate that bidders have more than 50% holding in the hands of Indian promoters.

Markets remain volatile in early trades, IT shares lead

Benchmark share indices remained volatile in a narrow range in early trades on Thursday

Benchmark shares indices were trading in narrow range in early trades on Thursday as gains in IT majors helped offset losses in private banking majors and ITC.

At 9:30AM, the 30-share Sensex was up 33 points at 20,928 and the 50-share Nifty was up 12 points at 6,227.

Key Asian indices except for Straits Times were trading marginally lower as investors turned cautious ahead of the ECB meeting and US GDP data to be released later in the day. The Straits Times was up 0.05%. The Nikkei was down 0.7%. China's Shanghai Composite was down 0.3% while Hang Seng was down 0.7%.

US benchmark share indices ended mixed on Wednesday with the Dow Jones ending at a new record high led by technology shares such as Microsoft and IBM.

The Dow Jones industrial average ended up 129 points, or 0.8%, to end at 15,746.88. The

Standard & Poor's 500 Index closed 7 points, or 0.4% higher, at 1,770.49. However, the Nasdaq Composite Index ended down 8 points or 0.2% at 3,931.95.

Key European shares ended with marginal gains on Wednesday after upbeat economic data as UK factory output increased to 0.9% in September from August. The CAC-40 gained 34 points to end at 4,286.93, the DAX rose 32 points to end at 9,040.87 while the FTSE-100 ended flat with negative bias at 6,741.69 weighed down by selling pressure in Experian Plc.

At 9:25AM, The Indian rupee was trading lower at Rs 62.56 compared to Wednesday's close of Rs 62.39 to the US dollar.

The BSE IT and Healthcare indices were up 0.6-0.9% each while Capital Goods, Power and Bankex were among the top losers in early trades.

Private banking majors ICICI Bank and HDFC Bank along with FMCG major ITC were among the top Sensex losers.

BHEL was down 4%. The country’s largest power equipment manufacturer reported 64 per cent net profit drop in the September quarter — its fifth straight quarter of decline in profits. Slowdown in fresh orders, coupled with high fixed cost, pulled its net profit down to Rs 455 crore, against Rs 1,274 crore in the same period last year.

Among other shares, Wockhardt was up nearly 7% after the UK regulator allowed the Company to manufacture and supply most of the products manufactured from the company's Nani Daman facility.

Market breadth was positive with 671 gainers and 314 losers on the BSE.

Telecom Commission proposes higher reserve price for spectrum auction

The Telecom Commission (TC), highest decision making agency of the Department of Telecommunications (DoT), has recommended raising reserve price for auction of pan-India mobile phone spectrum by 15% more than the price suggested by the Telecom Regulator Authority of India (TRAI) in the 1,800 megahertz (MHz) and by 25% more in case of 900 MHz.

The new base price per MHz in 1800 band for Delhi has been suggested at Rs 218.90 crore, Mumbai Rs 206.74 crore and Kolkata Rs 73.13 crore as against the regulator’s earlier recommendation of Rs 175.12 crore for Delhi, Rs 165.39 crore for Mumbai and Rs 58.50 crore for Kolkata. Similarly for 900 Mhz spectrum, the base price per MHz will be Rs 359.65 crore for Delhi, Rs 327.50 crore for Mumbai and Rs 125.27 crore for Kolkata as against TRAI’s recommendation of Rs 287.72 crore for Delhi, Rs 262 crore for Mumbai and Rs 100.22 crore for Kolkata.

Further, the telecom Commission has also approved the M&A policy, allowing mergers with a combined market share of up to 50%; this would replace the cap of 35% market share of the combined entity currently in vogue. Meanwhile, for 800 Mhz, the commission decided to conduct the auction and would now ask TRAI to give the reserve price for 800 Mhz spectrum.