Anchor Electricals plans megastore in Bangalore

Leading electrical materials manufacturer Anchor Electricals Pvt Ltd, a subsidiary of Japanese major Panasonic Corporation since 2007, plans to set up a megastore in Bangalore by March, to be followed by Delhi, Chennai and Hyderabad, among others, a senior official said on Thursday.

The company is set to increase its marketing and advertisement budget from nearly Rs 200 crore this year to Rs 250-300 crore in 2014-15, Ashok Gangar, Vice-President (Sales) told Business Line here.

The company, however, has no immediate plans to acquire a brand ambassador and would mainly market its products through architects, consultants and others.

Anchor Electricals, which opened a big showroom in Mumbai recently, will increase the number of products available to 88 from 48. All its products are of global standards set by Panasonic but none are being exported at present, he said.

The five-decade-old company’s turnover is expected to increase from Rs 1,800 crore in 2012-13 to Rs 2,100 crore this fiscal, Gangar said.

Anchor Electricals has a 40 per cent market share in switches in India. It has seven manufacturing facilities in the country, including those at Daman and Kutch. “We also plan to set up a new factory in India,” he said without elaborating.

Its modern outlet in Mumbai is an LED lighting showroom, giving customers a ‘see, touch and feel’ experience of a diverse range of home decorative lighting concepts and functions. With an in-house simulation room, customers are able to view effects of various kinds of lighting fixtures and installation options in different settings.

The world’s third largest company in its sector, Panasonic, has, of late, renewed focus on the B2B and B2G business. Its global sales are about $3 billion, with LED lighting sales accounting for $1 billion.

Indices bloom! Exit Polls fuel Nifty above 6200

Finally, BSE Sensex closed at 20,958 up 249 points, while NSE Nifty closed at 6241 up 80 points over the previous close.

The Indian equity market ended with strong gains on Thursday snapping a two-day losing streak as exit polls predicted a strong position for the key opposition party, the BJP, in state elections held over the past month. Sentiment also got a boost after the Indian rupee rose to a five-week high against the US dollar. The rupee rose to as high as 61.52 against the dollar, its strongest level since October 31. It was last trading at around 62.0 compared to its 62.05/06 close on Wednesday.

Today’s rally was led by the banking stocks which lifted the BSE Bankex higher by over 4%, the largest gainer among the BSE sectoral indices. Among the other top performers were the capital goods, realty, power and oil and gas index up by 3.5%, 1.5%, 1.5% and 1.3% respectively.

Amar Ambani, Head of Research at IIFL said, the market is pinning its hopes on a BJP-led Government at the centre*. While we believe believe it’s premature to predict a thumping BJP majority just yet, the fact remains that this very hope is driving the market. Likely BJP wins in the state elections of Rajasthan, MP and Chhattisgarh may further boost the current rally.” *(Disclaimer: this is not our political opinion on the quality of governance of different political parties but only a reportage of the discernibly prevalent market perception)

Even the mid-cap and the small-cap stocks witnessed some buying momentum.

Finally, BSE Sensex closed at 20,958 up 249 points, while NSE Nifty closed at 6241 up 80 points over the previous close.

IDFC, ICICI Bank, HDFC Bank, L&T, BHEL, Axis Bank, Maruti, Bank of Baroda and IndusInd Bank were among the top gainers in the Nifty.

On the other hand, Sun Pharma, Dr Reddy’s Labs, Lupin. ITC, HUL, Ranbaxy, Sesa Sterlite and HCL Tech were among the top losers.

The advance-decline ratio was almost even.On the BSE, 1268 stocks advanced against 1248 declining stocks, while 167 remained unchanged.

The INDIA VIX was down 9% at 21.68. It hit a day’s high of 22.07 and low of 20.08.

Stock News

Wipro announced that it is ramping down production at its PC manufacturing and assembly factories in Uttarakhand and Puducherry. The stock ended marginally higher by 0.2% to close at Rs. 492.5 per share.

Shares of Jubilant Life Sciences plunged over 9% to close at Rs. 126 after the company received a warning from the U.S. Food and Drug Administration over manufacturing practices at one of its U.S. facilities. The FDA said it could withhold approval of new products from Jubilant HollisterStier LLC until the company takes action to comply with the regulator's good manufacturing practices.

Cipla wholly owned subsidiary acquired 100% stake in Croatia-based firm Celeris d.o.o.The company however, did not share the financial details of the acquisition. Celeris is the distributor of Cipla’s products in Croatia. The stock ended marginally lower by 0.8% to close at Rs. 386 per share.

Bharti Airtel announced that its wholly-owned subsidiary - Bharti Airtel International (Netherlands) B.V. - has priced euro 750 million 4% Guaranteed Senior Notes due 2018. The stock was up 0.7% and close at Rs. 334.5 per share.

Strides Arcolab announced that it completed sale of its Agila Specialties Division to Mylan Inc. for a total consideration of up to US$1.75bn. The stock plunged over 15% to close at Rs. 841 per share.

Jubilant Life Sciences shares plunge after FDA warning for US plant

Indian drugmaker Jubilant Life Sciences Ltd said on Thursday it had received a warning from the U.S. Food and Drug Administration over manufacturing practices at one of its U.S. facilities, sending its shares the limit-down 10 percent.

The FDA said it could withhold approval of new products from Jubilant HollisterStier LLC, a facility located at Spokane, Washington, until the company takes action to comply with the regulator's good manufacturing practices, Jubliant Life Sciences said.
Jubilant HollisterStier will respond to the warning on or before December 12 and will take corrective actions to ensure compliance with the FDA, it added.
The facility accounted for 7 per cent of Jubilant Life Science's consolidated sales in the six months ended September.

Shares of Jubilant Life Sciences plunged 10 percent after the announcement, their steepest one-day fall in nearly six months, while the main Mumbai market was up 1.6 percent.

"We expect that the on-going manufacturing, distribution and sale of products from this facility will not be impacted as the WL (warning letter) will affect new approvals only," the company said in a statement.
Indian medicine makers, which produce nearly 40 percent of generic and over-the-counter drugs for the United States, have recently been battered by a rash of regulatory actions, including a record fine for Ranbaxy Laboratories Ltd and what amounts to a ban by the FDA on a second plant for Wockhardt Ltd.
Jubilant Life Sciences, which makes generics and provides contract manufacturing services, has 10 facilities in India, the United States and Canada.

Cairn India to invest up-to $750 million in KG Basin Block

Cairn India is planning to invest up-to $750 million in KG Basin Block over five years. The investment includes creation of necessary infrastructure and production.

Meanwhile, the company has urged the Director General of Hydrocarbons to declare one of the wells in its onshore KG-ONN-2003/1 block at Nagayalanka on East coast as Commercial Discovery.

Cairn India is primarily engaged in the business of oil and gas exploration, production and transportation. Average daily gross operated production was 205,014 boepd in Q3 FY2012-13. The Company sells its oil to major refineries in India and its gas to both PSU and private buyers.

96-cr loan due, realty major loses 3 properties

Three properties owned by Orbit Corporation, a developer listed on the Bombay Stock Exchange, were attached by Life Insurance Corporation Housing Finance Ltd for nonrepayment of Rs 96- crore loan under the Securitisation Act.

    Through a public notice on Wednesday, LIC Housing Finance said that it took physical possession of one of the three properties, Orbit Residency Park, which is spread over 1.7 lakh sq ft in Andheri. Orbit’s liabilities of Rs 96 crore include repayment of loan availed and the interest on the amount. The orders to attach and take physical possession of the three properties measuring roughly 2.5 lakh sq ft—26,000 sq ft at Orbit Corporation’s Lower Parel project Orbit Grand, 1.7 lakh sq ft at Orbit Residency Park in Andheri and 45,600 sq ft space at Orbit Midtown at Lalbaug—were recently passed by chief metropolitan magistrate M B Bage following an application filed by LIC Housing Finance. The attachment order may create problems for the 171 people flat buyers at the three properties.

    LIC Housing Finance had sanctioned a loan of Rs 325 crore to Orbit. The three properties were mortgaged for securing the loan along with hypothecated receivables from seven of its luxury projects. Orbit had secured loans from LIC Housing Finance through personal guarantees executed by its directors Ravikiran Aggarwal and Pujit Aggarwal.
    Of the Rs 325 crore, Orbit claimed to avail a loan of only Rs 260 crore. A sum of Rs 164 crore from the Rs 260 crore was repaid in 2010. But as the developer failed to repay the balance loan of Rs 96 crore, the housing finance company took action.
    In August, LIC Housing Finance had classified Orbit’s account as a non-performing asset and served a recovery notice to the developer known for its premium south and central Mumbai developments.
    An email query to LIC Housing Finance did not elicit any response.
    “We have repaid Rs 164 crore by 2010-end. Only Rs 96 crore was left unpaid. Following the notice, we met with senior LIC Housing Finance officials and reached an understanding for repaying the loan. I suppose this order is part of the legal process they have to follow,” said Pujit Aggarwal, MD of Orbit. “No flat buyers will get affected as the order excludes almost 75% of the development. We hope to clear the loan at the earliest.”
    “The delay in repayment was because the two projects (Orbit Grand and Orbit Residency Park) for which the term loan secured were stuck in regulatory deadlock since 2011. The deadlock stalled construction as well as sales and cash flow,” he added. The firm had got regulatory approvals for the two projects in May.

Syndicate Bank surges on plan to raise Rs 200 crore via issue of preference share

Public sector lender Syndicate Bank is planning to raise Rs 200 crore by issuing preferential shares to government of India. In this regard, the bank has constituted a committee of directors to create, offer, issue and allot equity shares for cash at a price to be determined in accordance with Regulation 76 (1) of Sebi ICDR Regulations.

The committee will also take steps to convene an extraordinary general meeting of shareholders for obtaining their consent for the proposed issue of preferential shares.

Earlier, the company received board’s approval for issue of equity shares of the bank with a face alue of Rs 10 each aggregating Rs 200 crore.

Jyothy Laboratories raises Rs. 263 crore via preferential allotment

Post allotment the paid up equity share capital of Jyothy Laboratories has increased to Rs. 18.10 crore from Rs. 16.60 crore.

Home grown FMCG company, Jyothy Laboratories (JLL) has raised Rs. 263 crore via preferential allotment of shares to Sahayadri Agencies limited, a promoter group company. JLL has allotted 1.5 crore equity shares of Re 1/- each at a price of Rs. 175.15 per equity share.

Post allotment the paid up equity share capital of Jyothy Laboratories has increased to Rs. 18.10 crore from Rs. 16.60 crore. With this the promoter holding has gone up from 63.69% to 66.7%

Commenting on the occasion, Mr. Ullas Kamath, Joint Managing Director, Jyothy Laboratories said:

“Post successful integration with Henkel India it was the right time to invest in existing brands and also expand JLL’s portfolio. The preferential allotment of shares along with NCDs to a clutch of investors will help JLL to save the yearly interest burden of about Rs. 60 crore leaving a cash balance of about Rs. 250 crore. The fund will be utilized for the organic and inorganic growth of the company”.

The company in November had raised Rs. 400 crore through zero coupon Non–convertible Debentures (NCDs) payable after three years. The company has now raised Rs. 263 crore through preferential allotment to the promoter. This amount has been used to repay the term loan of approximately Rs. 400 crore.

RBS, S&P sued by European investors for $250 mn losses

The group of 16 European institutional investors filed the claim in Amsterdam on Wednesday for damages of up to USD 250 million suffered on investments in CPDOs - or constant proportion debt obligations - that were rated AAA by S&P.

Royal Bank of Scotland and rating agency Standard & Poor's have been sued by a group of European institutional investors for damages of up to USD 250 million suffered on complex financial products in the lead-up to the global financial crisis. The claim is the first group action of its kind to be launched in Europe against an investment bank and rating agency for their conducts prior to the crisis, litigation finance company Bentham IMF Ltd said in a statement to the Australian stock exchange on Thursday.

 The group of 16 European institutional investors filed the claim in Amsterdam on Wednesday for damages of up to USD 250 million suffered on investments in CPDOs - or constant proportion debt obligations - that were rated AAA by S&P. "This claim has no merit and we will oppose it vigorously," said S&P in a statement. "The ratings on these securities, which date back to 2005-6, were assigned in good faith based on the information available to us at the time." The case also follows the landmark judgement issued by Australia's Federal Court in November 2012, which found S&P had deceived 12 local government councils that bought the CPDOs.

 "Many of the facts, legal arguments and evidence successfully established in the Australian claim will be deployed in the Dutch action," Bentham IMF said. The Australian judgment said a reasonably competent ratings agency could not have rated the CPDOs at issue AAA, and that the rating was misleading, deceptive and a negligent misrepresentation to investors. "Following the Australian Federal Court proceedings we have a comprehensive dossier of information and evidence that we believe is compelling to put before the Dutch judiciary," said Gidget Brugman, the lawyer who is handing the case in the Netherlands. S&P said it was appealing the Australian ruling and meanwhile it had filed an action in London in May, challenging the jurisdiction of the Netherlands. "S&P has never had a presence in the Netherlands and its CPDO ratings were assigned in the UK," it said. Benthan IMF said it would oppose S&P's UK application. RBS was not immediately available for comment.

Sensex, Nifty rally continues

At 12:46 pm (IST), the BSE Sensex was trading at 21,012, up 303 points over the previous close, while NSE Nifty was quoting at 6,254, up 93 points over the previous close.

At 12:46 pm (IST), the BSE Sensex was trading at 21,012, up 303 points over the previous close, while NSE Nifty was quoting at 6,254, up 93 points over the previous close.
The BSE Small-Cap index and BSE Mid- Cap index was trading up at 1%.

RIL,  Infosys, TCS, Wipro, ONGC, Coal India, Gail India, Bajaj Auto, HDFC Bank, Tata Power, Cipla,  Tata Motors, ICICI Bank, HDFC, Hero MotoCorp, Maruti,  Jindal Steel, Tata Steel, Mahindra & Mahindra, are among gainers in Sensex and Nifty.
Strides Arco, Wockhardt are among losers in Sensex and Nifty.

Teck, FMCG, Metal,  PSU, IT, Teck, Bankex,  PSU, Capital Goods and Consumer Durables, Realty, Oil and gas, Power indices are the gainers.
Healthcare and IT indices was the losers.
Moody's Investors Service says that its outlook for Indian non-financial corporates is negative, reflecting macroeconomic challenges over the next 12 months.
Moody's expects India's GDP growth to remain weak at 5.5% in the fiscal year ending March 2015, as elections in mid-2014 will delay reforms needed to revive the economy.
British telecom giant Vodafone is planning to invest $3 billion (Rs 18,605 crore) in India over the next two years to expand its network,, group chief executive Vittorio Colao reportedly said.
Shares of Jubilant Life Sciences hit 10% lower circuit at Rs 126 after the company said that US drug regulator has issued a warning letter with regards to its facility in the US.

Low Valuations May Work in Favour of Cadila Health

The recent run-up in the stock of Cadila Healthcare is likely to be sustained due to indications of imminent improvement in the company’s performance. The Ahmedabadbased drugs manufacturer reported a revenue growth of 12% in the quarter to September that was largely driven by its performance in the United States and Brazil. Its revenues from the domestic market, which accounts for nearly 40% of its consolidated sales, grew just 5% during the three-month period because of the standoff between the distributors and manufacturers over implementation of the new drug pricing policy. This also adversely impacted its operating margin, which, at a little over 15%, remained almost the same as the year-ago level.

Cadila has 20 abbreviated new drug application (ANDA) approvals lined up in the US over the next 12-15 months. It is set to launch products in niche segments that will boost its top line growth as well as margins. The company commands a 4.5% share in the domestic market, where it has a strong presence in therapeutic areas of cardiovascular, gastrointestinal, respiratory and female healthcare. The company’s domestic business is also likely to improve as a result of general recovery in the Indian healthcare sector.
The company’s consumer goods business, housed under Zydus Wellness, which has been underperforming over the past few quarters, is expected to grow at a faster pace as it has pumped considerable funds into brands such as Sugarfree and Everyuth. According to the management’s guidance, this business will post a double-digit growth.

Cadila’s weak performance in the past few quarters had led to the stock’s underperformance on the bourses. Consequently, the stock is trading at a price-to-earnings multiple of 20 – much lower than ET Pharma Index’s PE of 31.5. It is valued at a market cap, which is just 2.3 times of its revenues of trailing four quarters. Most leading pharma companies are trading at a valuation of three to fives times their revenues. The low valuation makes Cadila an attractive pick in the defensive sector where most stocks are trading at stretched valuations. Little wonder then that there has been 50% increase in the ‘buy’ recommendations by analysts on the company’s stock in the past three months, along with a slight increase in the foreign institutional investors’ holding in the past two quarters. 

M&M to Develop Hybrid Tech to Boost Vehicles’ Fuel Efficiency

Mahindra & Mahindra, the country’s largest utility vehicle maker, is developing the world’s first hybrid technology that can be deployed in vehicles with manual transmission and enhance fuel efficiency by almost 20%. The company, which may debut its hybrids at February’s Indian Motor Show, has established a place for itself in green technologies with close to 4 lakh so-called micro-hybrid vehicles on Indian roads.

It also owns the world’s largest electric car company, by production capacity, Mahindra Reva, which sells the E2O hatchback, the world’s most affordable four-seater car that only uses battery power to run. The company is now moving to the next level of sustainable green mobility by focusing on full-scale hybrids and has roped in technology partners that have the expertise. “We have signed up with Samsung SDI, which is the global leader in lithium ion batteries for development and supply of these batteries for our hybrid range of vehicles,” Rajan Wadhera, chief executive - technology and product development, told ET from Cape Town in South Africa where he was attending a company meeting. “We are perfecting the hybrid technology to deploy it in various platforms and vehicles across the Mahindra range.”

Hybrids generally pair electric motors and regular engines and use batteries to store energy from motion and braking. They also use aerodynamic design to reduce drag and new materials to lower weight. Mahindra’s micro-hybrids reduce fuel wastage by shutting off the engine when it’s not needed. Hybrids — such as the Toyota Prius, with sales of more than three million units worldwide — come with automatic transmission. Otherhybrid variants include the Honda Jazz, Ford Fusion and Chevrolet Volt, all automatics.
Elon Musk’s Tesla makes all-electric cars that have gained a significant market share in the US in the last few years thanks to their sleek design and performance , although the company recently had to defend itself over some vehicles catching fire. Automatic cars, although they have gained ground of late in India, still aren’t as popular in the country as they cost more and are less fuel-efficient. That’s why Mahindra is going the manualtransmission route. “We are keen to develop a manual transmission mode compatible with the hybrid technology,” Wadhera said. “It is expected to be more efficient and also more adaptable to the range of vehicles sold across various markets.”

Other technology partners include Germany’s largest auto component maker ZF and tyre maker Continental. The fullscale hybrids are likely to be available as the top-end variants of sports utility vehicles such as the XUV500 and Scorpio. Both these models have micro-hybrid variants that enhance mileage up to 5% by switching off the engine when not required.
Various automakers in India have been trying to take fuel efficiency to the next level by developing different technologies to partially offset the spiralling cost of fuel. Maruti Suzuki, Tata Motors, Honda and Toyota Kirloskar are working on microhybrids, electric assists and start-stop technologies to decrease fuel consumption and increase the efficiency of petrol and diesel engines. Maruti has introduced start-stop technology, which increases fuel efficiency by 5-7%, in some of the models that it exports. The company plans to offer this option in top-end variants in the local market as well. Mahindra officials expect that the initial success of its hybrid vehicles will establish new yardsticks for fuel efficiency in the Indian market.
“A hybrid electric vehicle combines conventional internal combustion engine propulsion system with an electric propulsion system leading to improved fuel economy and efficiency,” said a person close to the development. “Mahindra’s commitment to bring about a cleaner and greener future is exemplified through the partnerships entered with leading global technology conglomerates and pioneering consultants.”

At WTO, India bats for least developed countries in cotton subsidies row

By lambasting developed nations on trade facilitation and cotton subsidies, India on Wednesday edged closer to eliciting the support of least developed countries (LDCs) on the contentious issue at the ongoing ministerial of the World trade Organisation at Bali in Indonesia.

India is trying to garner support for exemption on public stock-holding of food grains. By espousing the cause of LDCs, India has strategically guarded against any collaboration among developed nations at the WTO.

Accusing developed nations of paying only lip service to the interests of the developing economies as well as  LDCs, India’s commerce minister Anand Sharma said, “None of these texts (WTO proposals) require the developed countries to make binding commitments for the benefit of developing countries. In contrast, developing countries would be required to undertake significant commitments in trade facilitation.”

“Most of the texts that are before us are ostensibly for the benefit of developing countries. In reality, on issues including cotton subsidies, export competition, monitoring mechanism and DFQF (duty-free, quota-free), the draft texts contain mere statements of intent with best endeavour provisions,” said Sharma.

India, along with the cotton-4 (C4) countries (Benin, Burkina Faso, Chad and Mali) and African countries, has been demanding reduction of subsidies on cotton by the European Union and the US.

The commitment on cotton subsidy reduction was taken during the run-up to the Cancun meet in 2003 after which it was formally accepted for discussion in the Hong Kong ministerial in 2005. So far, the issue has not reached any consensus.

In the draft for trade facilitation, initially, developed nations had kept financial support for LDCs and some developing countries as a core element. However, the final draft has diluted such requirements by mentioning them as non-binding in the footnotes.

Pitching in for the interest of LDCs, Sharma said, “In DFQF, what is being offered is less than what was mandated in the Hong Kong Ministerial Declaration of 2005.”

In November this year, India decided to give DFQF market access to 96.2% of the India’s tariff lines to LDCs. Earlier, it was allowed on 85% of Indian products.

Godrej Properties moves higher on buying 49% stake in GDPL

Godrej Properties has given exit to Red Fort by purchasing its 49% stake in the equity share capital of its subsidiary, Godrej Developers (GDPL). Consequently, GDPL has become wholly owned subsidiary of the company with effect from December 04, 2013.

The company has taken this step in terms of the agreement with Red Fort India Real Estate Babur (Red Fort) for Project Godrej Genesis at Kolkata.

Godrej Properties is a realty firm of Godrej group, promoted by Godrej Industries and Godrej & Boyce Manufacturing Company. It is one of the leading real estate development companies in India based in Mumbai, Maharashtra.

Crude oil prices mixed in Asian trade

Oil prices were mixed in Asian trade today as dealers were worried about an oversupply in West Asian crude, which could push down prices along with increasing US shale oil production.

New York’s main contract, West Texas Intermediate (WTI) crude for January delivery, was up 21 cents at $97.41 in mid-morning Asian trade, while Brent North Sea crude for January delivery eased 19 cents to $111.69.

OPEC output

The Organisation of Petroleum Exporting Countries (OPEC) had on Wednesday agreed to keep its production ceiling unchanged at 30 million barrels a day (bpd).

However, pledges by its members Iraq and Iran to boost the output in 2014 raised concerns about potential oversupply, especially if Libyan oil production is restored and US shale oil output continues to increase.

Iraq’s oil minister Abdelkarim al-Luaybi this week said that his country hoped to boost the exports to 3.4 million bpd next year from the current levels of about 2.4 million barrels.

Iran, whose oil exports have been slashed to 1.2 million barrels due to international sanctions imposed on it for its disputed nuclear programme, could immediately ramp up exports to 4.0 million barrels if the sanctions are lifted, according to its oil minister Bijan Zanganeh.

“The possible increasing supply from countries such as Iran, Libya and the US means the group (OPEC) needs to cut down production to keep prices stable,” Kelly Teoh, market strategist at IG Markets in Singapore, said in a note.

She added that non-OPEC oil producers may boost supply even if the cartel decides to reduce its output, exacerbating the potential oversupply situation.

US benchmark WTI gained support from the weekly Department of Energy report that showed US crude oil stocks fell 5.6 million barrels to 385.8 million barrels, ending 10 consecutive weeks of gains.

The drawdown came on the heels of news that part of the US Keystone pipeline will open for delivery in January, raising expectations that more oil would move from storage to Gulf Coast refineries.

Cipla shines as its arm acquires 100% stake in Celeris d.o.o.

Cipla is currently trading at Rs. 393.00, up by 2.95 points or 0.76% from its previous closing of Rs. 390.05 on the BSE.

The scrip opened at Rs. 392.00 and has touched a high and low of Rs. 394.00 and Rs. 390.20 respectively. So far 41,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 450.00 on 16-Sep-2013 and a 52 week low of Rs. 354.40 on 01-Mar-2013.

Last one week high and low of the scrip stood at Rs. 395.80 and Rs. 382.95 respectively. The current market cap of the company is Rs. 31,554 crore.

The promoters holding in the company stood at 36.80% while Institutions and Non-Institutions held 34.70% and 27.46% respectively.

Cipla’s wholly owned subsidiary - Cipla Holding B.V., has acquired 100% stake in Celeris d.o.o., Croatia. Celeris d.o.o. is the distributor of company’s products in Croatia.

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

The company has reported 24.79% fall in its net profit at Rs 376.03 crore for the second quarter ended September 30, 2013 as compared to Rs 500.01 crore for the same quarter in the previous year. However, total income of the company has increased by 6.59% at Rs 2411.96 crore for quarter under review as compared to Rs 2262.74 crore for the quarter ended September 30, 2012

Strides completes sale of Agila Specialties to Mylan for $1.75 bn

$250 million payable upon satisfaction of certain regulatory conditions

Strides Arcolab, the publicly held pharmaceutical company, on Thursday said that it has completed the sale of Agila Specialties to Nasdaq-listed Mylan Inc for a total consideration of upto $1.75 billion.

The transaction, which was announced during late February 2013, got delayed as one of Strides' unit was put under USFDA watch.

"Consequent to the warning letter received by the company for one of its units in Bangalore, Strides has agreed to a hold back of $250 million, which will be contingent upon satisfaction of certain regulatory conditions related to the injectable facilities in India. The company expects those contingent conditions will be satisfied sometime in 2014," Strides said.

The company added that since the initial announcement of this transaction, Strides now expects an additional expenditure of $150 million.

"This includes cost towards acquisition of additional assets from its erstwhile partners and an estimated remediation cost related to its regulatory commitments post the warning letter," it said.

Rupee jumps to 61.80 in early trade

The rupee gained 26 paise to 61.80 per dollar in the opening trade against the previous close of 62.06 on the back of a rally in the domestic equity market.

Also, the follow-on-public offer of Power Grid Corporation triggered inflows into the equity market. The issue is open till Thursday for institutional buyers and it will close a day later for retail investors.

Treasury officials said that the rupee is likely to remain in the 61-63 per dollar range on concerns of uncertainty over the US Fed’s decision to roll back its monetary stimulus and the upcoming election results.

The domestic unit is supported by higher-than-expected GDP growth and a more benign current account deficit, though the dollar demand by oil marketing companies in the market is likely to limit the gains.

Call rates, G-secs

The inter-bank call money rate, the rate at which banks borrow from each other to meet their short-term requirements, opened lower at 7 per cent against the previous close of 7.10 per cent.

The 7.16 per cent benchmark government security, which matures in 2023, opened higher at Rs 88.05 from Rs 87.82. Yields on the security softened to 9.06 per cent from 9.09 per cent.

Microsoft raises $8 billion through sale of securities

The proceeds would be used for funding acquisitions

Technology giant Microsoft has raised about $8 billion by selling securities and the proceeds would be utilised for funding acquisitions, among others.

The fund raising exercise comes at a time when Microsoft is in the process of acquiring the devices and services businesses of Finnish handset maker Nokia in a deal worth $7.2 billion.

The total amount includes bonds denominated in the US dollar as well as euros.

Microsoft has sold securities -- that have maturity periods of 5, 10 and 20 years -- worth $3.25 billion, the company said in a filing to the US Securities and Exchange Commission (SEC) yesterday.

Separately, the firm also offered securities, which are due to mature in 2021 and 2028, amounting to a total of 3.5 billion euro (about $4.76 billion).

"The net proceeds from the sale of the notes will be used for general corporate purposes, which may include, among other things, funding for working capital, capital expenditures, repurchases of our capital stock, acquisitions and repayment of our existing debt," Microsoft said.

Last month, Nokia's shareholders approved the sale of ailing cellphone and services division and licence to a portfolio of patents to Microsoft. The sale is expected to complete in early 2014.

The deal is expected to provide a strong foothold for Microsoft in the fast growing and highly competitive smartphone market.

SAIL gains on hiking prices of some long products by Rs 500 per tonne

SAIL is currently trading at Rs. 69.75, up by 0.85 points or 1.23% from its previous closing of Rs 68.90 on the BSE.

The scrip opened at Rs. 69.40 and has touched a high and low of Rs. 70.00 and Rs. 69.40 respectively. So far 31,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 101.60 on 07-Jan-2013 and a 52 week low of Rs. 37.65 on 07-Aug-2013.

Last one week high and low of the scrip stood at Rs. 70.00 and Rs. 67.70 respectively. The current market cap of the company is Rs. 28,807.00 crore.

The promoters holding in the company stood at 80.00% while Institutions and Non-Institutions held 16.41% and 3.58% respectively.

Steel Authority of India (SAIL), the country’s largest steel producer, has hiked prices of some long products by Rs 500 per tonne for December. Back in October this year, the company hiked flat product price by average Rs 1250 tonne. It also upped the long product price by Rs 500 per tonne.

SAIL is India's largest steel producing company. With a turnover of Rs 49,350 crore, the company is among the five Maharatnas of the country's Central Public Sector Enterprises. SAIL has five integrated steel plants, three special plants, and one subsidiary in different parts of the country.

Asian markets dither, Tokyo shares try to rally

Nikkei up 0.1% in early trade thanks in part to demand from foreign brokers

Asian markets were off to a nervous start on Thursday as never- ending speculation about the fate of US stimulus lifted bond yields, while Japanese shares tried to find their footing after taking a spill.

After suffering the biggest one-day fall in six weeks on Wednesday, the Nikkei was up 0.1% in early trade thanks in part to demand from foreign brokers.

Offshore funds certainly seem to be cheering for the market. Foreigners bought a net 368 billion yen worth of Japanese shares in the week through November 30, on top of 709 billion yen in the week before that.

Caution ruled elsewhere with MSCI's broadest index of Asia-Pacific shares outside Japan essentially flat, as was South Korea's Kospi.

There was nothing but indecision out of Wall Street where the Dow Jones industrial average edged down 0.16%, while the S&P 500 eased 0.13%.

Shares had taken a hit after a strong reading on private hiring led to speculation that payrolls could also be upbeat and perhaps hasten the day when the Federal Reserve starts trimming its asset buying.

Other data on services and housing was more mixed, but the risk was enough to send 10-year Treasury yields about 7 basis points higher on Wednesday to 2.84%.

Ironically, a sustained increase in long-term yields is exactly what the Fed is trying to avoid, so the rise argues against a start of tapering at this month's policy meeting.

ECB LOOMS

The lift in yields helped the US dollar regain ground on the yen to stand at 102.37 early Thursday, up from a low of 101.82. It may get further support if US gross domestic product data get revised up later Thursday.

A major mover was the Canadian dollar which sagged to 3-1/2-year lows after the Bank of Canada issued a dovish policy statement, highlighting the risks of undesirably weak inflation.

The euro was steady at $1.3585, having bounced from a trough of $1.3527 on Wednesday. Service sector data had showed activity in Italy and France shrinking in November but expanding in Spain and Germany, highlighting the divergence in the bloc.

There was more good news for Spain as Moody's upgraded its credit outlook to stable from negative, citing a rebalancing of and a brighter medium-term view for the country's economy.

Investors were now looking ahead of a policy meeting by the European Central Bank. While the consensus is that the central bank will not announce any new measures, markets are nervous having been taken off guard by November's rate cut.

"We think the Refi rate, the deposit rate, and the forward guidance will be kept unchanged," said Philippe Gudin, an analyst at Barclays. "The focus will be on the presentation of staff projections for 2014 and 2015, and in particular on inflation forecasts."

If the region's recovery continues, the ECB may be done easing for this cycle.

"Should economic activity fail to gain momentum or deflation concerns materialise, we think further monetary easing would be decided," added Gudin. "Although this is not our baseline scenario, we think the probability is non-negligible."

In commodity markets, spot gold edged back to $1,238, giving up some of Wednesday's 1.7% rally.

US crude eased 9 cents to $97.11, but that followed a 1.2% rally on Wednesday after data showed domestic crude stocks fell by 5.6 million barrels, snapping 10 straight weeks of builds.

Going the other way, Brent crude finished down 97 cents on Wednesday at $111.65 a barrel after initially rising to the highest since September 12 at $113.02.

Gold may yo-yo as investors try to book profits

Gold prices on domestic spot and futures markets are likely to be volatile on Thursday after the global market saw the yellow metal scale $1,250 an ounce at one point of time and then pare gains in early Asian trade. Still, the precious metal could see some upside despite the profit-booking that is being witnessed in early trade.

Some interest in gold was seen overnight that could be attributed to two reasons. One, to cover up short positions various players had built expecting the precious metal to drop. These players expect gold to come under pressure over the next two days as key data from US on GDP and non-farm pay rolls are due tonight and tomorrow.

Two, funds whose new fiscal begins in December bought gold.

Reuters reported that prices jumped after 32,000 contracts were traded in a 40-minute window afternoon in New York. This saw gold vault above $1,250 an ounce at one point of time.

The market now seems to be pretty sure of the US Federal Reserve pruning its $85 billion a month bond purchasing programme to keep the economy going. A decision on the timing of the tapering is likely at the US Fed meeting during December 17-18.

Despite all the activities, holdings in gold exchange-traded funds continued to decline. SPDR Trust, world’s biggest exchange-traded fund, said gold holdings with it dropped further to 838.71 tonnes.

Spot gold, gold futures

In early Asian trade, spot gold had given up half of its gains and traded at $1,238.39 an ounce and gold futures maturing for delivery in February at $1,237.90.

In the domestic market on Wednesday, gold for jewellery (99.5% purity) ended higher at Rs 30,565 and pure gold (99.9% purity) at Rs 30,715 for 10 gm.

On MCX and NCDEX, gold February contracts could try to top Rs 30,000.

Crude oil stockpiles

Brent crude is likely to rule higher on US stocks dropping to a 10-week low and OPEC deciding to keep its production unchanged.

Brent crude for delivery in January was up at $111.56 a barrel and US crude at $97.14.

The oils and oilseeds market is likely to come under pressure on Canada reporting a higher canola crop. Threat of China cancelling soya shipments from the US are also dampening sentiments, while demand for soyameal could cushion any fall.

Soyabean, crude palm oil

Chicago Board of Trade soyabean for delivery in January ruled at $13.31 a bushel. Crude palm oil for delivery in February on Bursa Malaysia Derivatives Exchange closed lower on Wednesday at 2,656 ringgit or $822 a tonne.

Corn (industrial maize) may gain on value-buying and short covering, while wheat may trip after Canada raised its production estimate.

CBOT corn slipped to $4.35 a bushel for delivery in March and wheat contracts for the same month to $6.59.

Markets to get a cautious but positive start

The Indian markets declined for the second straight day in last session awaiting the Assembly election exit poll results that turned the market nervous in final hours of trade. Today, the start is likely to remain cautious tailing the weakness in global cues. Though, traders may rejoice the results of exit poll that showed that BJP may sweep the assembly polls in four of the five states where elections were held. However, in other political development, the stormy Winter Session of Parliament will begin today with the government listing a heavy legislative agenda and Opposition demanding extension of the 12-day sitting. Meanwhile, the Centre has said that it is drafting a policy on the direct selling industry to address the concerns of consumers and strengthen the credibility of the sector. There will be buzz in the oil & gas sector stocks, as the Paris-based International Energy Agency has said that India would be the largest single source of growth in global oil demand after 2020. The telecom stocks too will see some action after the Cellular Operators Association of India (COAI) said that GSM mobile operators added 16.6 lakh new subscribers in rural areas in October to take the overall base in such areas to 27.43 crore.

The US markets could not recover and ended almost flat after a choppy last session with traders remaining concerned about the uncertainty about the outlook for the Federal Reserve’s stimulus program after payroll processor ADP reported a stronger than expected private sector job growth in the month of November. The Asian markets have made a soft start and most of the markets in the region are trading lower by about half a percent in early deals on US Fed’s taper concern.

Back home, Wednesday turned out to be a daunting session of trade for the Indian stock markets, which extended the southbound journey for second consecutive day and gave up over half a percentage point, as investors opted to remain on sidelines ahead of the assembly elections outcome on Sunday that will give a firm direction for the markets. Sentiments remained downbeat since morning tracking weak global cues. Some disappointment also came in from report that Foreign Direct Investment (FDI) into the country declined by about 38 percent year-on-year, to $2.91 billion in September. As the trade progressed, some recovery was seen in the markets, as some support came in from Prime Minister Manmohan Singh’s statement that market-based pricing and technology are essential as India is expected to become world’s third largest energy consumer in seven years. He also said that, in order to bridge the gap between supply and demand, the government is encouraging domestic and global companies to explore onshore and offshore regions. Some pessimism also came in after industry body Assocham said that narrowing of the current account deficit will help arrest depreciation of the rupee and ease inflation concerns that may soothe some nerves. Positive opening in European markets too supported the local indices. However, disappointing cues from Asian markets took their toll on Indian markets and dragged the frontline gauges below their crucial 6,200 (Nifty) and 20,750 (Sensex) levels. Back home, traders turned nervous in last leg of trade and major indices slumped to their lowest point of the day as flat numbers of the Services PMI weighed negatively on the local markets. The HSBC Business Activity Index posted 47.2 in November compared to 47.1 in October. Meanwhile, the seasonally adjusted HSBC India Composite Output Index too remained below the 50.00 mark, however, up from 47.5 in October to 48.5, as manufacturing production rose in the latest month. Selling in Realty counter too dampened the sentiments despite the Reserve Bank of India (RBI) allowing core investment companies to raise external commercial borrowing (ECB) for projects floated as special purpose vehicle in order to strengthen the flow of resources into the infrastructure sector. Finally, the BSE Sensex plunged by 146.21 points or 0.70%, to settle at 20708.71, while the CNX Nifty declined by 40.90 points or 0.66% to settle at 6,160.95.