Rupee trading weak at 62.09

The rupee was trading weak by 26 paise at 62.09 against the dollar at 2.22 p.m. local time.

The rupee shed 30 paise to 62.13 per dollar in the opening trade against the previous close of 61.83 on the back of weakness in the domestic equity market and dollar demand from importers.

The domestic unit is expected to be under pressure as government data showed IIP contracted to 1.8 per cent in October and consumer price inflation (CPI) touched 11.24 per cent mark in November, increasing the expectations of a rate hike by the Reserve Bank of India.

The Federal Open Markets Committee will meet on December 17 and 18 in Washington, when it will announce its intention to either continue with the stimulus programme or begin to wind it down slowly.

RBI has assured that the Indian economy is “relatively” well placed now to handle the tapering, if it were to come soon.

On similar tapering fears in August, the rupee had touched a life-low of 68.80. Subsequently, measures by RBI to attract more dollars and by the government to cut the current account deficit had lifted the rupee.

According to analysts, the Federal Reserve may put off tapering at least for a month more, pending the imminent end of term of Chairman Ben Bernanke in January.

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 sharply higher at 8.25 per cent from the previous close of 6.85 per cent.

The 10-year benchmark 7.16 per cent government security, which matures in 2023, opened lower at Rs 86.25 from the previous close of Rs 87.42. Yield on the security hardened sharply to 9.26 per cent against the previous close of 9.18 per cent.

Elder Pharmaceuticals enters into a definitive binding agreement with Torrent

Elder Pharmaceuticals (Elder) has entered into a definitive binding agreement with Torrent Pharmaceuticals (Torrent). Torrent will acquire its branded domestic formulations business in India and Nepal (India Business) for a consideration of Rs 2,004 crore. Elder's India Business comprises a portfolio of over 30 brands with market leading products across the Women's Healthcare, Pain Management, Wound Care and Neutraceuticals therapeutic segments.

The India Business is being sold as a going concern on a slump sale basis and the transaction will also involve the transfer of employees engaged in sales, marketing and operations of the India Business, Under the proposed transaction, Elder will continue to manufacture & supply the products at its existing manufacturing facilities for Torrent for a period of three years.

Torrent would fund the acquisition value through a mix of internal accruals and bank debt. Elder's existing brand equity in the areas of women healthcare and pain management will help Torrent strengthen its position in the Indian market expanding into these fast growing areas.

The transaction has been approved by the Boards of Directors of both companies. The transaction is subject to customary conditions precedent including shareholder approval and applicable regulatory approvals and is expected to close in the first half of 2014.

Berger Paints surges as promoters hike stake in the company

Berger Paints India is currently trading at Rs. 235.45, up by 6.80 points or 2.97% from its previous closing of Rs. 228.65 on the BSE.

The scrip opened at Rs. 230.75 and has touched a high and low of Rs. 239.15 and Rs. 230.75 respectively. So far 73371 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 256.30 on 19-Jul-2013 and a 52 week low of Rs. 146.25 on 14-Dec-2012.

Last one week high and low of the scrip stood at Rs. 240.00 and Rs. 227.20 respectively. The current market cap of the company is Rs. 8204.60 crore.

The promoters holding in the company stood at 74.96% while Institutions and Non-Institutions held 14.35% and 10.69% respectively.

Berger Paints India’s foreign promoter has bought 0.1% stake in the company on December 12, 2013. UK Paints India bought 3.50 lakh shares of the company at Rs 228.50 per share in a block deal on NSE. Vinu Dhingra was the seller in the transaction.

As on 30 September 2013, total promoter holding in Berger Paints India was 74.96%. UK Paints India held 45.64% stake in the company, while Vinu Dhingra owned 2.21% stake in Berger Paints India.

Berger Paints India manufactures and markets a range of decorative and industrial paint products and has operations throughout India.

Aurobindo Pharma receives USFDA approval for Duloxetine Hydrochloride Delayed Release Capsules

Aurobindo Pharma has received the final approval from the US Food & Drug Administration (USFDA) to manufacture and market Duloxetine Hydrochloride Delayed-Release Capsules 20mg (base), 30mg (base) and 60mg (base) which was earlier tentatively approved. According to IMS, the market size of the product is estimated to be $5.4 billion for the twelve months ending September 2013.

Duloxetine Hydrochloride Delayed-Release Capsules 20mg (base), 30mg (base) and 60mg (base) are the generic equivalent of Eli Lilly & Company’s Cymbalta Delayed-Release Capsules 20mg (base), 30mg (base) and 60mg (base). Duloxetine Hydrochloride Delayed-Release Capsules are indicated for the treatment of for the treatment of major depressive disorder (MDD) and falls under the Neurological (CNS) therapeutic category. The company now has a total of 188 ANDA approvals (163 Final approvals including 7 from Aurolife Pharma LLC and 25 Tentative approvals) from USFDA.

Aurobindo Pharma manufactures generic pharmaceuticals and active pharmaceutical ingredients. The company’s robust product portfolio is spread over 6 major therapeutic/product areas encompassing Antibiotics, Anti-Retrovirals, CVS, CNS, Gastroenterologicals, and Anti-Allergics, supported by an outstanding R&D set-up.

Infrastructure regulators to be made answerable to Parliament

To make infrastructure regulators such as the Telecom Regulatory Authority of India (Trai) and Central Electricity Regulatory Commission (CERC) autonomous, the central government has proposed making these directly answerable to Parliament. The government also has plans to grant licensing powers to all regulators in the infrastructure sector, be it electricity, posts, airports or highways.

According to a Cabinet note on the draft regulatory reform Bill, the sector regulators will have to present an annual report to Parliament on their work and will also be legally accountable, empowering any aggrieved party to file an appeal against a regulator’s decision.

The move will bring uniformity in the functioning of the regulators.

Officials said the Cabinet note, floated by the Planning Commission, has proposed fixed four-year tenure for members of the regulators and insulates their selection, appointment and removal from any political or non-political interference.

Officials said the draft Bill bars a member of any regulatory body from seeking re-appointment and also prohibits him/her from taking up any consultancy position or otherwise in any body, organisation or entity under the jurisdiction of the regulator concerned.

“Suppose a person is or has been a member of CERC. He will not seek any appointment in any company related to power within two years after tendering his resignation,” the official explained.

The Bill grants autonomy to all regulators to appoint their staff and even experts without seeking permission from the ministry concerned and also ensures funds are transferred from the Consolidated Fund of India.

“To ensure financial autonomy, once approved, the entire budgetary allocation will have to be transferred by the ministry concerned to the regulator to ensure its financial autonomy,” the draft Bill said.

The basic function of all regulators will be to protect the interests of all consumers by ensuring quality of service and lowering of costs, promote competition, encourage market development and benchmark the licences granted by it or by any other with international standards.

KEC International shines on bagging multiple orders worth Rs 756 crore

KEC International is currently trading at Rs. 50.00, up by 0.35 points or 0.70% from its previous closing of Rs. 49.65 on the BSE.

The scrip opened at Rs. 49.90 and has touched a high and low of Rs. 51.70 and Rs. 49.10 respectively. So far 294311 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 2 has touched a 52 week high of Rs. 74.45 on 02-Jan-2013 and a 52 week low of Rs. 23.25 on 04-Sep-2013.

Last one week high and low of the scrip stood at Rs. 53.65 and Rs. 47.65 respectively. The current market cap of the company is Rs. 1288.01 crore.

The promoters holding in the company stood at 47.71% while Institutions and Non-Institutions held 35.07% and 17.22% respectively.

KEC International, a global infrastructure EPC major, an RPG Group company has secured new orders of Rs 756 crore in its Transmission, Water, Power Systems and Cables businesses. In the Transmission Business, the company has secured orders in the Americas, Saudi Arabia and Abu Dhabi amounting to Rs 324 crore.

In America, the company has forayed into the EPC space in the Americas by securing its first transmission line order in Brazil, which is to the worth of Rs 44 crore. The scope includes design, supply and erection of 230 kV transmission line on turnkey basis and this order is secured by the SAE Towers. With this order, SAE Towers has expanded its portfolio from tower supply to complete EPC space. KEC will look forward to leverage its global EPC expertise along with its strong local foothold through SAE Towers in this market. In addition, SAE Towers has also secured orders for supply of lattice towers, monopoles and hardwares from the United States, Brazil, Canada, Mexico and Honduras. The total value of these orders is Rs 61 crore.

In Saudi Arabia, the company has received two orders for supply and erection of 110 kV double circuit transmission line in Saudi Arabia. The orders are secured from the National Grid SA and are valued at Rs 209 (KEC Share). In Abu Dhabi, the company has secured an additional order in its existing project in the country. The order value is Rs 10 crore.

In the Water Business, the company has secured three orders in India amounting to Rs 245 crore. Meanwhile, in the Power Systems Business, the Company has secured an order for establishment of 220/400 kV Gas Insulated Substations (GIS) at Kishanganj in Bihar. The order is secured from the Power Grid Corporation of India and is valued at Rs 102 crore (KEC Share). Lastly, in the Cables Business, the company has secured orders for the supply of Power and Telecom Cables, to the tune of Rs 85 crore.

AIA Engineering to enhance manufacturing capacity by setting up a new facility

AIA Engineering’s manufacturing capacity is currently being augmented from 200,000 Mt of Wear Parts to 260,000 Mt by brownfield Project which is expected to be commissioned in February, 2014. The company’s board of directors have approved a green field project to further enhance this manufacturing capacity by setting up a new facility to produce Wear Parts with rated capacity of 180,000 Mt. The first phase of this project of 100,000 Mt is estimated to get commissioned by March, 2015 with the balance estimated to be completed by October, 2015.

Further, the land for the project has already been acquired, necessary environmental clearances have been obtained and the capex shall be funded through internal accruals and some external borrowing, if required.

AIA Engineering is engaged in business of designing, developing, manufacturing, installing and servicing of high chromium wear, corrosion and abrasion resistant parts. These products are mainly used by cement, mining and thermal power generation industries.

Britannia extends gain on opening its first manufacturing unit for bakery products in Gujarat

Britannia Industries is currently trading at Rs. 887.85, up by 7.30 points or 0.83% from its previous closing of Rs. 880.55 on the BSE.

The scrip opened at Rs. 880.55 and has touched a high and low of Rs. 889.75 and Rs. 875.70 respectively. So far 2,945 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 972.50 on 24-Oct-2013 and a 52 week low of Rs. 463.00 on 07-Feb-2013.

Last one week high and low of the scrip stood at Rs. 897.80 and Rs. 852.55 respectively. The current market cap of the company is Rs. 10,638.00 crore.

The promoters holding in the company stood at 50.80% while Institutions and Non-Institutions held 28.70% and 20.51% respectively.

Britannia Industries (BIL), India's leading Food Company, has set up its first manufacturing facility for bakery products in Gujarat at Jhagadia Industrial Estate. The manufacturing unit was set up at an investment of around Rs 75 - 100 crore and has a total capacity of producing 45,000 tonnes of products per annum.  The location of this manufacturing unit is very strategic with proximity to the big markets of Gujarat, Maharashtra and Madhya Pradesh with the added advantage of being close to a port for export purposes. The company has already set up units in Bihar, Odisha and Tamil Nadu.

Britannia, one of the India’s biggest brands of the country, has a market share of over 33%. More-than-a-century old Britannia has launched big brands in FMCG Segment. The company is expanding its customer base by launching new products and renovating existing ones.

Govt approves system to track fund flow under various government schemes

In order to efficiently track fund flow under the various government schemes, the cabinet has approved Central Plan Scheme Monitoring System, which will set up an online financial management information and decision support system for tracking funds.

The Central Plan Scheme Monitoring System will be rolled out over a period of four years till 2017 at a total outlay of Rs 1,080 crore and will link the financial networks of central, state governments and the agencies of the state governments.

Further, new system will also provide real time reporting of expenditure at all levels of programme implementation through treasury and bank interface. The plan monitoring organisation structure will comprise the Project Implementation Committee (PIC) at the apex level, Central Project Management Unit (CPMU) at the centre, State Project Management Unit (SPMU) at state level and and District Project Management Units (DPMU) at the state and district levels.

In a separate development, the government has also approved the proposed Draft Regulatory Reform Bill, 2013 which aims to make regulators across key infrastructure sectors accountable to the Parliament besides giving them power of licensing. The draft bill will apply to key sectors such as electricity, oil and gas, coal, telecommunications and internet, among others.

Reliance Power’s second 660 MW unit of Sasan UMPP commences power generation

Reliance Power’s second 660 MW unit of the 3,960 MW Sasan Ultra Mega Power Project (UMPP) has commenced power generation. The unit has commenced power generation in shortest time of just about a month from boiler light up. This was made possible by adopting innovative commissioning methods. Meanwhile, balance four units are in advanced stages of construction and will be commissioned over the next few months.

The Sasan Ultra Mega Power Project is the largest integrated power plant and coal mining project in the world. Coal production has already commenced from the 20 million tonnes Moher and Moher- Amlohri coal mines associated with the power project. With this unit, Reliance Power's generation capacity increased to 3,205 MW which includes 3,120 MW of thermal capacity and 85 MW of renewable energy based capacity.

Reliance Power is a part of the Reliance Anil Dhirubhai Ambani Group and is established to develop, construct and operate power projects domestically and internationally.

RBI to carefully calibrate monetary policy: Raghuram Rajan

Soon after the release of nine month high retail inflation data and worse than expected October factory output data , the Reserve Bank of India (RBI) Governor Raghuram Rajan underscored that Indian economy was in weak position, with high inflation and that central bank will take overall view of macroeconomic data to carefully calibrate its monetary policy. Retail inflation, measured by the consumer price index (CPI) soared to a nine-month high of 11.24% in November, while the Index of Industrial Production (IIP) contracted 1.8% in October.

Adding further, Reghuram Rajan pointed that retail inflation at 11.24% was out of the RBI’s comfort zone and both monetary and fiscal policies were essential to tackle inflationary pressures. He cited supply side bottlenecks as a main reason for increasing inflation in the country.

While, referring to the fiscal deficit, the Governor averred that the government has laid down a road map that is expected to keep the fiscal situation within a target level at 4.8% of GDP for the current financial year. Aligning diesel prices with international rates would definitely control the fiscal deficit in the long run, but will exert downward pressure on inflation in short term, he added.

Furthermore, he cautioned that rising inflation in the country had become a concern for the RBI, which has been continually raising the policy rates over the past few months in order to trim the inflation. 

Reliance’s arm plans to open 8 new stores by June 2014: Report

Reliance Retail (RRL), a subsidiary of Reliance Industries, is reportedly planning to add eight more stores by June 2014. This aggressive expansion is aimed at capturing a significant share of the $300-billion wholesale market in India. Reliance Retail opened its first outlet in Ahmedabad in September 2011 and has 12 outlets now.

Reliance Retail (RRL) has grown into an organisation that caters to millions of customers, thousands of farmers and vendors. Based on its core growth strategy of backward integration, RRL has made rapid progress towards building an entire value chain starting from the farmers to the end consumers.

ONGC pays Rs 2,900 crore as dividend to GoI

Oil and Natural Gas Corporation (ONGC) has paid an amount of Rs 2,900 crore to Government of India (GoI) towards the interim dividend for 2013-14. This represents payment of interim dividend at 100% to the GoI against its shareholding in ONGC. The company handed over the cheque to the Petroleum Minister, M. Veerappa Moily. GoI holds 69.23% equity share in ONGC and the company paid dividend of Rs 5 per equity share i.e 100% of the paid-up share capital.

ONGC is a premier oil and gas company in India, accounting for 71% of the country’s crude oil production and 54% of its natural gas production in 2011-12. It is also a significant producer of value added products such as liquefied petroleum gas (LPG), superior kerosene oil (SKO), and naphtha. GoI is the majority shareholder in ONGC, with a 69% equity stake as of now.

Tata Steel shines as its arm unveils new electrical steel products

Tata Steel's subsidiary, Cogent Power, has unveiled a range of sophisticated new electrical steel products which reduce electricity losses by 20-30 percent compared to conventional grain-oriented grades. The new products are being made at Cogent Power’s Orb works in Newport, South Wales. The Orb works produce cold rolled, grain-oriented electrical steel for the manufacture of modern electricity transformers that are used to build and renew the world’s major power networks.

The launch of the new grades follows the integration in 2011 of Tata Steel’s electrical steels production route. The Orb plant now receives hot rolled coil, made in a patented process at the company’s steelworks at IJmuiden in the Netherlands.

The new grades - M080-23DR, M085-23DR, M090-27DR and M095-27DR - support this requirement, by enabling the production of highly efficient steel cores housed within the transformers used in energy transmission networks.

Sun Pharmaceutical surges as its arm receives US FDA approval for generic Cymbalta

Sun Pharmaceutical Industries’ subsidiary has been granted the US Food and Drug Administration (USFDA) final approval for its Abbreviated New Drug Application (ANDA) to market a generic version of Cymbalta, Duloxetine Delayed-Release Capsules USP, 20 mg, 30 mg and 60 mg. Duloxetine Delayed-Release Capsules USP, 20 mg, 30 mg and 60 mg are therapeutic equivalents of Eli Lilly & Company’s Cymbalta Delayed-Release Capsules.

These Capsules have annual sales of approximately $5.5 billion in the US. Duloxetine Delayed-Release Capsules USP are indicated for the treatment of major depressive disorder (MDD), generalized anxiety disorder (GAD) and diabetic peripheral neuropathic pain (DPNP). Sun Pharma’s subsidiary, being one of the first-to-file ANDAs for generic Cymbalta with a para IV certification, is eligible for shared 180-day marketing exclusivity in the US.

Sun Pharmaceutical Industries is an international, integrated, specialty pharmaceutical company. It manufactures and markets a large basket of pharmaceutical formulations as branded generics as well as generics in India, US and several other markets across the world.

Lupin extends gain as arm launches generic Cymbalta Delayed-Release capsules in US

Lupin’s - US subsidiary - Lupin Pharmaceuticals, Inc. (LPI) has launched its Duloxetine Hydrochloride Delayed-release (HCI DR) Capsules 20 mg, 30 mg and 60 mg strengths. The Company received final approval to market its Duloxetine HCl DR Capsules USP, 20 mg, 30 mg, 40 mg and 60mg strengths from the United States Food and Drugs Administration (FDA). Lupin’s Duloxetine HCl DR Capsules 20 mg, 30 mg and 60 mg strengths are the generic equivalent of Eli Lilly & Company’s (Lilly) Cymbalta Delayed‐release Capsules 20mg, 30mg and 60mg.

Duloxetine HCl DR Capsules are indicated for the treatment of major depressive disorder (MDD), generalized anxiety disorder (GAD) andmanagement of neuropathic pain (DPNP) associated with diabetic peripheral neuropathy. Cymbalta Delayed‐Release Capsules 20 mg, 30 mg and 60 mg strengths had annual U.S sales of approximately USD 5.43 billion (IMS MAT Sep, 2013).

Lupin is an innovation led transnational pharmaceutical company producing and developing a wide range of branded and generic formulations and APIs globally.

Sensex sheds 150 points

The Sensex and the Nifty fell about 0.7 per cent in the opening session on Friday due to fresh selling by funds and retail investors amid mixes Asian cues.

At 9.15 a.m., the 30-share BSE index Sensex was down 150.15 points or 0.72 per cent at 20,775.46 and the 50-share NSE index Nifty was down 49.55 points or 0.79 per cent at 6,187.50.

Domestic sentiment was dampened as data released on Thursday showed that retail inflation surged to 11.24 per cent in November against 10.17 per cent in October). Also, factory output contracted to 1.8 per cent in October.

The decline in factory output and higher retail inflation could push the Reserve Bank of India to institute another 25 basis points hike in its next monetary policy review on December 18.

Asian stocks were trading mixed as improving US economic data fuelled speculation the Federal Reserve will reduce stimulus as early as next week.

South Korea’s Kospi index fell 0.4 per cent, while New Zealand’s NZX 50 Index gained 0.3 per cent. Hong Kong’s Hang Seng Index rose 0.4 per cent, while China’s Shanghai Composite was little changed. Singapore’s Straits Times Index fell 0.2 per cent, while Taiwan’s Taiex Index added 0.2 per cent.

Oct IIP contracts to -1.8%, Nov CPI rises to 11.24%

The macro data released late on Thursday came in much harsher than what the street was expecting. While the Index of Industrial Production (IIP) contracted to -1.8 percent in October, consumer price inflation (CPI) has touched an astounding 11.24 percent mark in November.  The poor data leaves no room for any doubt that Reserve Bank (RBI) will raise key rates next week, in line with what Dr Raghuram Rajan had sounded in his previous policy announcement. Vegetable prices rose 61.6 percent in November from a year earlier, compared with a 45.67 percent increase in the previous month. Fruit prices rose 15 percent. Pulses were dearer by 1.2 percent, cereals by 12.07 percent and milk products by 9.06 per cent in November. The price rise of protein-rich items such as eggs, meat and fish was 11.96 percent.


Inflation in the food and beverages segment was 14.72 percent compared with 12.56 percent in the previous month. The provisional inflation rates for rural and urban areas for November were 11.74 percent and 10.5 percent, respectively. Meanwhile, industrial output for April-October period remained flat as compared to 1.2 percent in the same period of 2012-13. The manufacturing sector declined by 2 percent in October as against a growth of 9.9 percent a year ago. During April-October, the sector's output contracted 0.3 percent compared to a growth of 1.1 percent in same period last year. The mining sector saw a contraction of 3.5 percent in October as against a dip of 0.2 percent in the same month last fiscal. Power generation, however, posted a growth of 1.3 percent in the month under review compared to 5.5 percent a year ago.

The market was expecting the central bank to hike repo rate by 25bps on December 18, but with both these macro data on the negative side, two key questions to ponder upon are - whether the rate hike would be 25 bps or 50 bps and whether the RBI will rethink about the liquidity tightening measures that were taken earlier and were gradually tapered off, Chakraborty said. He feels 25 bps rate hike is a done deal now. Meanwhile, Sabnavis is confident that RBI would announce a 25bps repo rate hike, infact he wouldn’t be surprised if it is a 50 bps rate hike because RBI governor’s aim has been to combat high inflation. Sujan Hajra, Co-Hd - Research & Chief Economist, Anand Rathi Financial Services is also sure that a 25 bps rate hike in the forthcoming policy is a given.

The equity market will see a kneejerk reaction because the data is way ahead of what the street was expecting, but it may last for too long, cautions Ambareesh Baliga, Managing Partner-Global Wealth Management, Edelweiss Financial Services . However, this would not have a long term impact on the market, but brace for some correction tomorrow, he further added. “Earlier people were expecting either a zero hike to a 25 bps hike. That expectation will go up to 50 bps now based on these figures, because of which you will have a kneejerk reaction,” he said. Meanwhile, if the RBI opts for a rate hike, the Indian rupee would marginally strengthen, Hajra said. With the trade deficit coming below USD 10 billion, the pressure on the rupee from the current account side to depreciate has ebbed a bit. Also, with some level of normalcy returning to the swap deal, the capital account side pressure has also eased. I do not think there is a case for the currency to depreciate in the immediate term, he added.