No rate hike...Sensex, Nifty get a boost

Finally, BSE Sensex closed at 20,860 up 247 points, while NSE Nifty closed at 6,217 up 78 points over the previous close.

Stock market in India rallied on Wednesday snapping six day declining trend after the Reserve Bank of India surprised traders and investors by keeping rates on hold. Sentiment further got a boost as the Indian rupee also strengthened against the US dollar and was up at around Rs. 61.88 compared with previous close of Rs. 62.02 per dollar.

The rally was so strong that all the sectoral indices on the BSE ended with smart gains. The BSE Realty index was top gainer, up 2.5%, followed by BSE Capital Goods index was up 2.6%, BSE Oil and Gas index was up 2.1% and BSE Power index up 2%.

Amar Ambani, Head of Research at IIFL said, “Contrary to consensus expectation, RBI left the Repo rate unchanged at 7.75%. The MSF rate was also retained at 8.75% and thus the corridor stood unchanged at 100 basis points. Terming its decision to hold rates as a ‘close one’, RBI cited uncertainty surrounding the short-term path of inflation and weak state of the economy as the key determinants. In general, the Central bank expects inflation to moderate somewhat due to softening of vegetable prices, play out of disinflationary impact of recent exchange rate stability and persistent negative output gap (weak demand). At the same time, it remains willing to raise rates out-of-turn, if the recent inflation pressures become more generalized. Liquidity conditions have improved significantly since the normalization of exceptional monetary measures. Capital inflows under the Central bank’s swap facility for banking capital and non-resident deposits augmented domestic liquidity substantially. Consequently, bank’s borrowings under MSF have declined steeply and there has been a sharp reduction in money market rates. As RBI would continue to ensure that liquidity is available for growth, short term rates are likely to remain benign for the rest of the fiscal. While there remains a strong scope of 25 basis points rate hike in near term, it could possibly be the end of the current rate up-cycle. However, we think that monetary easing is still far away as that would demand sustained and significant moderation in inflation.”

Finally, BSE Sensex closed at 20,860 up 247 points, while NSE Nifty closed at 6,217 up 78 points over the previous close.

Barring Jindal Steel, SSLT and Ultratech Cement all the other constituents of Nifty ended in the green. BHEL, DLF, PNB, IndusInd Bank, Bajaj Auto, Tata Power, Hero Motocorp, Gail, SBI, LT and HDFC were among the top gainers in the Nifty.

The advance-decline ratio favoured the bulls. On the BSE, 1497 stocks advanced against 951 declining stocks, while 177 remained unchanged.

Stock News

Shares of Larsen & Toubro gained 3% to close at Rs. 1,095 after the company’s power transmission vertical bagged a Rs29.35bn order or setting up transmission and distribution network in Qatar.

Biocon shares surged over 12% to close at Rs 439 after the company entered into licensing and collaboration agreement with Quark Pharmaceuticals Inc for development of range of siRNA (small interfering RNA) based novel therapeutics.

Shares of Trent jumped nearly 10% on Wednesday after the UK-based retail giant Tesco filed the first multi-brand retail application seeking to invest US$110mn to open supermarkets in the country with the Tata group firm.

Shares of Tata Power surged over 4% to close at Rs. 91.5 after Tata Sons pledged 2.13 crore shares in the company to raise funds for the group. Tata Sons, the holding company of Tata Group, pledged 21,350,000 shares, amounting to 0.90 per cent stake, in Tata Power.

Lupin gains as its arm launches Generic Trizivir Tablets

The promoters holding in the company stood at 46.78% while Institutions and Non-Institutions held 43.52% and 9.69% respectively. Pharma Major Lupin’s  US subsidiary-Lupin Pharmaceuticals Inc. has launched  Abacavir Sulfate, Lamivudine, and Zidovudine Tablets, 300mg (base) / 150mg / 300mg in the US after the US District Court for the District of Delaware ruled that the Lupin’s generic version of Trizivir did not infringe on patents. Lupin had earlier received approval for the same.

Lupin’s Abacavir Sulfate, Lamivudine Zidovudine 300mg (Base)/150mg/300mg Tablets are the AB‐rated generic equivalent of ViiV Healthcare’s (ViiV) Trizivir Tablets, 300mg (base) / 150mg / 300mg and are indicated in combination with other antiretrovirals or alone for the treatment of HIV‐1 infection. Lupin is the first applicant to file an ANDA for Trizivir Tablets and as such is entitled to 180 days of marketing exclusivity.

Trizivir Tablets, 300mg (base) / 150mg / 300mg had annual U.S sales of approximately $ 111.6 million (IMS MAT Sep, 2013).

Taxmaco increases stake in Kalindee Rail

Taxmaco has increased its stake in Kalindee Rail Nirman (Engineers) by acquiring 12.43% stake in the company via open offer. Following acquisition, Taxmaco’s stake in the company has increased to 37.33% from 24.90%.

As on September 30, 2013, the promoters holding in the company stood at 11.83% while Institutions and Non-Institutions held 0.65% and 87.52% respectively.

Kalindee Rail Nirman popularly known as “KALINDEE”, stands as the forerunner in the execution of the major Railway Signaling & Telecommunication projects in India. Dedicated and sincere work has earned it a good reputation.

IRB Infrastructure soars on bagging project worth Rs 1500 crore

IRB Infrastructure Developers has emerged as a preferred bidder for the project of Four Laning of Solapur to Yedeshi section of NH-211 from km 0.000 to km 100.000 (Design Length 98.717 km) in the State of Maharashtra to be executed as BOT (Toll) on DBFOT Pattern under NHDP Phase - IV. The estimated Project Cost of the Company is approximately Rs 1500 crore, while concession period is 29 years. The Construction period is 910 Days. The company has sought Rs 189 crore as Viability Gap Funding from NHAI.

IRB Infrastructure Developers undertakes development of various infrastructure projects in the road sector through several special purpose vehicles.

Compulsory IPO ratings may go: Sebi

Sebi is planning to scrap the compulsory IPO grading process for companies going public and change the relevant rules soon. The market regulator is also planning to allow more companies the leeway to file a shelve prospectus for raising funds from the market, U K Sinha, Sebi chief said.

"Our consultation is over. There is a unanimous view now that the IPO grading should not be made compulsory," Sinha said. "We are likely to consider this suggestion and may be we will change our rules in this regard," he said. The Sebi chief was speaking at a conference organized by the Association of Investment Bankers of India here on Tuesday.

The compulsory IPO grading process was started in mid-2007 and there is not much evidence to suggest that it has worked the way it was intended to. Price performance of stocks of companies going for IPOs after their listing did not always show any direct correlation to their ratings, which is received before filing a prospectus.

The Sebi chief also said that the regulator was looking at expanding the list of companies which can file shelve prospectus. "We are exploring very seriously the area of shelve prospectus since the Companies Act has provisions on questions of shelve prospectus. We want to expand the list of eligible companies who can issue shelve prospectus," Sinha said.

A shelve prospectus is like an umbrella prospectus that a company can file when it wants to tap the public market for money on a continuous basis. Under such provisions, the company can file a master prospectus once and can raise funds through the next one year by filing with the regulator information about any major change that has taken place in its finances, operations, etc, since the prospectus was filed. This is a cost-effective method for companies, which also helps save substantial time and effort on the part of the firm's management.

The Sebi chief also said that the regulator was looking at ways to facilitate fund-raising by small and medium enterprises (SME) by bringing such companies and merchant bankers where people from both sides can interact closely.

TCS trades with traction on the bourses

Tata Consultancy Services (TCS) is currently trading at Rs. 2054.50, up by 8.40 points or 0.41% from its previous closing of Rs. 2046.10 on the BSE.

The scrip opened at Rs. 2045.00 and has touched a high and low of Rs. 2070.90 and Rs. 2045.00 respectively. So far 30561 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 2258.05 on 15-Oct-2013 and a 52 week low of Rs. 1197.60 on 18-Dec-2012.

Last one week high and low of the scrip stood at Rs. 2089.85 and Rs. 1960.00 respectively. The current market cap of the company is Rs. 403889.71 crore.

The promoters holding in the company stood at 73.96 % while Institutions and Non-Institutions held 21.67 % and 4.37 % respectively.

MyState, an ASX-listed diversified financial group in Australia, has implemented TCS BaNCS for core banking. TCS BaNCS has been successfully implemented, as it allows the company to provide even more competitive products and services to its customers in the future, and it forms part of an ongoing business improvement strategy to make organisation more competitive, and pave the way for further growth.

The implementation realises further benefits of the merger between MyState and The Rock, a major provider of financial and insurance services to the Central Queensland region.

Tata Consultancy Services is an IT services, consulting and business solutions organisation that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT, BPO, infrastructure, engineering and assurance services.

Nifty hovers around 6,200; Bank Nifty up 2%

Benchmark share indices were up over 1% each in noon trades led by banks

Benchmark share indices were up over 1% each in noon trades led by banks after the Reserve Bank of India kept key policy rates unchanged, despite calling current inflation too high, citing the prospect of easing retail prices and its concerns about the weak domestic economy.

At 1:05PM, the 30-share Sensex was up 236 points at 20,848 and the 50-share Nifty was up 75 points at 6,214.

The rupee was off highs in the afternoon trade after the initial euphoria in the market.

The rupee was quoting at Rs 61.92 compared with previous close of Rs 62.02 per dollar. The rupee had opened at Rs 61.83 and and touched a high of Rs 61.78 in morning trade due to rise in equities.

Currency dealers see the rupee weakening during the day due to dollar demand by oil marketing companies. Besides that the outcome of Fed's meet is also awaited.

Asian markets were trading higher with Japan's benchmark index Nikkei leading the gains on reports that the Prime Minister may shortly unveil plans to boost the economy. The benchamrk Nikkei ended up 2% at 15,588. Hang Seng was up 0.4%. Shanghai Composite and Straits Times were down 0.1% each.

The BSE Bankex was the top gainer among the sectoral indices on the BSE up 2% followed by Capital Goods, Realty, Power, Oil and Gas and Auto indices.

Index heavyweight Reliance Industries was up 2.2% contributing the most to Sensex gains followed by financials.

HDFC was up 2.7% on hopes that the mortgage lender may see growth in home loans as banks are likely to hike rate on home loans.

Capital Goods shares L&T and BHEL were up 3% each on hopes that pick up in investment activity would help revive growth in new order inflows.

Bank shares firmed up on hopes that credit growth would continue to remain steady on the back of stable interest rates. ICICI Bank, SBI, HDFC Bank were up 0.6-3% each.

Auto shares Bajaj Auto, M&M and Hero MotoCorp were up 1-3% each on hopes that volume growth would continue on steady interest rates on auto loans.

Among other shares, Astral Poly Technik has surged 8.5% to Rs 320, also its record high, extending its past four days rally on the Bombay Stock Exchange (BSE). On December 12, the company said it has been awarded Business Standard Star SME (small and medium enterprises) of the year 2013. The growth story of the company with its continuous expanding and building its production capacity impressed by the Jury to win this award, Astral Poly Technik said in a regulatory filing.

In the broader market, the BSE Mid-cap index was up 1.1% and the Small-cap index was up 0.8%.

Market breadth was strong with 1,239 gainers and 840 losers on the BSE.

Petronet LNG shines on plan to increase capacity of its terminal in Gujarat

Petronet LNG is currently trading at Rs. 120.35, up by 2.35 points or 2.00% from its previous closing of Rs. 117.65 on the BSE.

The scrip opened at Rs. 117.40 and has touched a high and low of Rs. 120.35 and Rs. 116.50 respectively. So far 53,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 168.80 on 10-Jan-2013 and a 52 week low of Rs. 106.10 on 31-Jul-2013.

Last one week high and low of the scrip stood at Rs. 133.00 and Rs. 117.10 respectively. The current market cap of the company is Rs. 8,996 crore.

The promoters holding in the company stood at 50.00% while Institutions and Non-Institutions held 22.96% and 27.04% respectively. Petronet LNG is planning to increase the capacity of its terminal in Gujarat to help reduce the unmet energy demand in the country, which has been one of the major constraints for efficient economic growth. In this regard, the company will take loan of $150 million from the Asian Development Bank (ADB).

The expanded terminal will help India to move toward its target of greater natural gas use, thereby enhancing its energy security and shifting to cleaner forms of energy.

The project, which will increase the supply of natural gas to 15 million metric tons per annum (mmtpa) from the current 10 mmtpa, will help meet demand for compressed natural gas for transportation, piped gas to households, fuel for gas power plants, and feedstock for fertilizer plants, mostly in north and west India.

RBI surprises mkt; leaves repo, CRR unchanged

As India continues to battle the scenario of low growth and high inflation, Raghuram Rajan surprised the market by keeping key rates unchanged. In its mid-quarter monetary policy meet on Wednesday, the Reserve Bank of India left repo rate unchanged at 7.75 percent and CRR at 4 percent. 

A total of 90 percent respondents of a CNBC-TV18 poll on expectation from the RBI monetary policy had voted for a 25 bps rate hike. 

Despite tight monetary policy aimed at kill pricing power, inflation has risen thick and fast. The November WPI inflation touched 7.5 percent driven by a spike in food prices, beating the street  consensus of 7 percent. November CPI inflation too came in at 11.2 percent versus an expectation of 10.6 percent. However, core WPI inflation (ex food, oil and metals) has stayed at 3.5 percent, pretty much at last month’s levels.

L&T Construction bags order worth Rs 2,935 crore in Qatar

L&T Construction’s - Power Transmission & Distribution Business, has secured a prestigious major international EPC (engineering, procurement, construction) order valued at Rs 2,935 crore ($473 million/1723 million QAR) from Qatar General Electricity & Water Corporation (KAHRAMAA) for the supply, construction and commissioning of 18 EHV (Extra High Voltage) substations and 151 km of EHV cabling in Qatar. The project is scheduled to be completed in 22 months.

This order is part of the Qatar Power Transmission System Expansion - Phase XI - Stage I and is the single largest order for the Company in the Power Transmission & Distribution business. The scope includes supply, erection, testing and commissioning of Gas Insulated Switchgear of 220/132/66/22kV, power transformers, 220/132/66kV EHV cables, 11kV air insulated switchgear, protection and substation systems, DC system and auxiliaries. The contract encompasses design and construction of civil buildings with a complete set of utilities such as air conditioning, fire protection and lighting systems.

These substations are being built to augment the existing power system network to cater to growing infrastructure facilities. The project is spread across prominent locations in Qatar. L&T is already executing similar EHV substations and EHV cables as part of Phase X for KAHRAMAA. The order affirms L&T’s strong operational competencies and customer goodwill in GCC countries.

Consumer Price Index: November 2013

The energy index declined in November, offsetting increases in other indexes to result in the seasonally adjusted all items index being unchanged

The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in November on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 1.2% before seasonal adjustment.

The energy index declined in November, offsetting increases in other indexes to result in the seasonally adjusted all items index being unchanged. The indexes for gasoline and for natural gas fell significantly, more than offsetting increases in the electricity and fuel oil indexes. The food index rose slightly in November, with the food at home index unchanged.

The index for all items less food and energy rose 0.2% in November. Increases in the indexes for shelter and airline fares accounted for most of the increase, with the indexes for recreation and for used cars and trucks also rising. The indexes for apparel, for household furnishings and operations, and for new vehicles all declined in November.

The all items index increased 1.2% over the last 12 months, a larger increase than the 1.0% rise for the 12 months ending October. The 12-month increase in the index for all items less food and energy remained at 1.7% for the third month in a row. The food index increased 1.2% over the last 12 months, while the energy index declined 2.4%.

Consumer Price Index Data for November 2013 

Food 

The food index rose 0.1% in November, the same increase as in October. The index for food at home was unchanged, with major grocery store food groups mixed. The index for fruits and vegetables declined in November, falling 0.7% after rising in October. The indexes for meats, poultry, fish, and eggs and for nonalcoholic beverages also declined in November, each falling 0.2%. The index for cereals and bakery products, which declined in October, was unchanged in November. The index for other food at home rose in November, increasing 0.5%, and the index for dairy and related products rose 0.4% in November after falling in October. The food at home index has risen 0.6% over the last 12 months, the smallest 12-month increase since June 2010. The index for meats, poultry, fish, and eggs has posted the largest increase of the six major grocery store food groups over the last year, rising 2.8%. The index for nonalcoholic beverages has declined the most, falling 1.8%. The index for food away from home rose 0.3% in November, its largest increase since April, and has risen 2.1% over the last year.

Energy 

The energy index declined 1.0% in November after falling 1.7% in October. The gasoline index, which fell 2.9% in October, declined 1.6% in November. (Before seasonal adjustment, gasoline prices fell 3.3% in November.) The index for natural gas also declined, falling 1.8% in November; this was its fifth decline in the last 6 months. Other energy indexes increased, however. The electricity index rose 0.3% in November, its third consecutive increase. The index for fuel oil rose 0.4% in November after declining in October. The energy index has declined 2.4% over the last year, with the gasoline index down 5.8% and the index for fuel oil decreasing 4.1%. The electricity index has risen 2.9% over the last year, and the index for natural gas has increased 1.0%.

All items less food and energy 

The index for all items less food and energy rose 0.2% in November after rising 0.1% in each of the 3 previous months. The shelter index rose 0.3% in November after a 0.1% increase in October. The rent index increased 0.2%, while the index for owners’ equivalent rent increased 0.3%. The index for lodging away from home rose 2.9% in November after declining 3.1% in October. The index for airline fares continued to rise, advancing 2.6% in November after a 3.6% increase in October. The recreation index rose 0.2%, and the index for used cars and trucks advanced 0.1%. The index for medical care was unchanged in November, with both the medical care commodities and medical care services components unchanged. The apparel index continued to decrease, falling 0.4%, its third consecutive decline. The index for household furnishings and operations fell 0.2% in November, as did the tobacco index. The index for new vehicles declined 0.1% for the second consecutive month.

The index for all items less food and energy increased 1.7% for the 12 months ending November. Indexes that have increased at a faster rate include airline fares (4.2%), shelter (2.4%), and medical care (2.2%). Indexes that increased more slowly or declined include household furnishings and operations (-1.4%), apparel (-0.1%), and new vehicles (0.6%).

Not seasonally adjusted CPI measures 

The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.2% over the last 12 months to an index level of 233.069 (1982-84=100). For the month, the index decreased 0.2% prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 1.1% over the last 12 months to an index level of 229.133 (1982-84=100). For the month, the index decreased 0.3% prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 1.1% over the last 12 months. For the month, the index decreased 0.2% on a not seasonally adjusted basis. Please note that the indexes for the post-2011 period are subject to revision.

CARE reaffirms ratings to Gayatri Projects’ Bank Facilities

Credit rating agency, CARE has reaffirmed ‘BB+’ rating to Gayatri Projects’ Long-term Bank Facilities worth Rs 1,279.50 crore, which  was enhanced from 1,202.94 crore, ‘A4+’ rating to Short-term Bank Facilities worth Rs 300 crore, which was enhanced from 275 crore and BB+/A4+’ rating to Long-term/Short term Facilities worth Rs 2,801 crore which was enhanced from 2,500 crore.

The ratings assigned to the bank facilities of GPL continue to be constrained by the high equity commitments, albeit reduction in the same, towards power and the BOT projects which have long gestation periods, high repayment obligations which in turn impact the liquidity profile of the company, increasing debt levels, high exposure in the form of contingent liabilities including Stand-by Corporate Guarantee to subsidiary, client concentration and working capital intensive nature of the business.

Gayatri Projects, an ISO 9001-2000 company, is one of the fastest growing construction companies in India executing major civil works including construction of concrete/masonry dams, earthen dams, national highways, bridges, canals, aqueducts, airports, ports, etc.

Tesco to acquire 50% stake in Trent for $110 million: Report

Tesco Plc, UK’s largest retailer, is reportedly planning to buy 50% stake in the Tata-owned Trent for $110 million. This will help Tesco to becoming the first foreign chain to invest in supermarkets in India since FDI was allowed in the retail sector last year.

The proposed partnership will operate and build on the existing portfolio of Star Bazaar stores in Maharashtra and Karnataka only, as the other two states have banned foreign investment in retail.

Further, the Tata-Tesco joint venture will not use the Tesco brand for its stores in India. It will sell various items from food to fashion-wear in Star Bazaar, Star Daily and Star Market branded outlets, with ‘A Tata and Tesco Enterprise’ tagline.

Trent is part of the Tata Group and is engaged in business of retailing. Trent acquired 76% stake in Landmark, one of the largest books and music retail chains in the India.

Ashok Leyland sells 18 lakh shares of IndusInd Bank to CPCI Mauritius

Ashok Leyland, the Hinduja Group flagship company in India, has sold 18 lakh shares of IndusInd Bank through an open market transaction. The shares were offloaded to CPCI Mauritius at an average price of Rs 417, valuing the transaction at Rs 75.06 crore on BSE.

Earlier in March, Ashok Leyland had offloaded 50 lakh shares of IndusInd Bank in a transaction worth more than Rs 216 crore. The shares were bought by Afrin Dia, a foreign institutional investor.

As of September quarter, Ashok Leyland held 1.30 crore shares, amounting to 2.48% stake, in the bank.

Cipla gets US FDA approval for Xopenex

Pharma majors Cipla has received US Food and Drug Administration (US FDA) approval for the generic version of the drug called Xopenex, which is used for asthma. Cipla is the third or the fourth generic company to enter into this space within the US markets.

Moreover, it is a limited opportunity drug and as of December 2012, the drug sales were estimated to be around $439 million.

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.

IOL Chemicals & Pharmaceuticals wins National Energy Conservation Award 2013

IOL Chemicals and Pharmaceuticals (IOLCP) has once again won the National Energy Conservation Award 2013. The company has won the first prize in Drugs & Pharmaceuticals Sector and second prize in Chemical Sector for its continued efforts towards new technology implementation so as to conserve energy resources of the country. This has enabled IOLCP to hold the distinction to have won the National Energy Conservation Awards consecutively for nine years. IOLCP has won the second prize of National Energy Conservation Award every year since 2005.

The National Energy Conservation Awards are given every year by the Ministry of Power, Government of India, to industrial units, office buildings, hotels and hospitals, zonal railways, state designated agencies, municipalities, and manufacturers of BEE Star labeled appliances that have made commendable efforts in energy conservation in their respective fields.

IOL Chemicals & Pharmaceuticals is one of the largest manufacturers of APIs and specialty chemicals with presence in over 57 countries across the world. It manufactures and supplies APIs and specialty chemicals for use in various pharmaceutical, textile, packaging, lamination, pesticides and food processing applications.

Ranbaxy Laboratories gets US FDA nod for Plendil generic: Report

Ranbaxy Laboratories has reportedly received US Food and Drug Administration (US FDA) approval for a particular drug called Plendil generic. The drug is used for hypertension. The company was expected to be the authorised generic for this particular drug, but it is already genericised and there are already 6-7 players in this market for this particular drug.

For Ranbaxy this is the first approval that they have received from the USFDA after two years, after the Lipitor generic received approval.

Ranbaxy Laboratories, India’s largest pharmaceutical company, is an integrated, research based, international pharmaceutical company producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies.

Japan logs $12.6 bn trade deficit on fuel imports

Japan posted a trade deficit of 1.29 trillion yen ($12.6 billion) in November, the 17th consecutive month of trade loss, due to a weaker yen and growing imports of fossil fuel, the Government said Wednesday.

Imports grew 21.1 per cent to 7.19 trillion yen for the 13th straight month of increase, while exports climbed 18.4 per cent to 5.9 trillion yen for the ninth consecutive month of rise, the Finance Ministry said in a preliminary report.

Petroleum imports jumped 34.9 per cent from a year earlier, and liquefied natural gas imports rose 37.4 per cent, the ministry said.

Fossil-fuel imports have risen for thermal power generation after the shutdown of nuclear reactors following Japan’s worst atomic accident at the Fukushima Daiichi Nuclear Power Station, caused by the March 2011 earthquake and tsunami.

The value of imports from China, Japan’s biggest trading partner, grew 19.4 per cent from a year earlier to 1.68 trillion yen, while shipments to the world’s second-largest economy jumped 33.1 per cent to 1.14 trillion yen.

Japan’s trade deficit with China stood at 537.1 billion yen, down 2.1 per cent from a year earlier.

Imports from the United States rose 34.9 per cent to 647.2 billion yen, and shipments to the world’s biggest economy climbed 21.2 per cent to 1.13 trillion yen.

Crude oil rises ahead of US stockpiles report

Oil prices edged higher in Asian trade today as investors anticipate a fall in US crude inventories for the third consecutive week, indicating upbeat demand in the world’s top consumer.

New York’s main contract, West Texas Intermediate crude for January delivery, was up 19 cents at $97.41 in mid-morning trade, while Brent North Sea crude for February delivery gained 12 cents to $108.56.

“The forecast that US crude stockpiles may have dipped about three million barrels last week is providing support to prices,” Kenny Kan, market analyst at CMC Markets in Singapore, said.

Analysts on average expect crude inventories declined 2.7 million barrels for the week ended December 13, according to a survey by Dow Jones Newswires.

The US Department of Energy will release the official petroleum inventory report later today.

The forecasted decline will follow a 10.6 million drawdown in inventories in the week to December 6, the second consecutive drop after a 10-week run of rises that had added more than 35 million barrels to supplies.

Kan said investors are also keenly awaiting the US Federal Reserve’s decision on whether it will begin to scale back its $85-billion-a-month stimulus programme.

Fed policymakers will today wrap up a two-day meeting after debating whether economic conditions are strong enough to wind down the scheme, which has been credited with helping to prop up global equity markets.

Any tapering would likely send the greenback higher, in turn making dollar-priced oil more expensive to people using other currencies.

PTC India Financial Services gains on divesting stake in MEPL for Rs 209.73 crore

PTC India Financial Services is currently trading at Rs. 12.49, up by 0.52 points or 4.34% from its previous closing of Rs. 11.97 on the BSE.

The scrip opened at Rs. 12.36 and has touched a high and low of Rs. 12.49 and Rs. 12.24 respectively. So far 56,000 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 18.85 on 07-Jan-2013 and a 52 week low of Rs. 9.50 on 22-Aug-2013.

Last one week high and low of the scrip stood at Rs. 12.49 and Rs. 11.51 respectively. The current market cap of the company is Rs. 698.00 crore.

The promoters holding in the company stood at 60.00% while Institutions and Non-Institutions held 23.96% and 16.04% respectively.

PTC India Financial Services (PFS), a leading Infrastructure Finance Company focused on lending across the energy value chain, has divested its entire stake of 16.76% in Meenakshi Energy (MEPL) for an amount of Rs 209.73 crore. The proceeds out of the divestment will be used to strengthen balance sheet and augment loan book growth.

MEPL is setting up a 1000 MW coal based thermal power project in Andhra Pradesh, of which phase I of 300 MW is commissioned.

PFS continues to maintain a strong focus on growing its loan book, backed by emphasis on renewable energy and diversification across the energy value chain. The company maintains a diversified borrowing mix and is adequately funded to scale up its lending activity and achieve sustained growth. The current equity investment exit will further aid headroom for growth.

Markets to make a cautious start ahead of RBI policy review and Fed’s meeting outcome

The Indian markets despite showing some signs of recovery, could not keep the momentum going and extended their fall for the sixth straight day in last session, awaiting the outcome of the central bank's policy review, as well as the Federal Reserve's decision on tapering monetary stimulus. Today the start is likely to remain cautious and all eyes will be on Reserve Bank of India’s (RBI) mid-quarter review. The RBI is widely expected to raise its key repo rate by 25 basis points to eight percent, given the price rises at both the retail and wholesale levels. Traders will also watch the rupee movement ahead of the outcome of two-day US Federal Reserve meeting. The Indian rupee has slipped below the 62 level against the US dollar in last session. There will be buzz in capital goods stocks, as India’s exports of engineering goods has reported a sharp month-on-month fall of 14.60 percent in November as compared to the previous month. Sugar stocks too are likely to remain in action on reports that sugar output fell by 50 percent to 24.24 lakh tonnes so far in the 2013-14 season due to the delay in the sugarcane crushing operations especially in Uttar Pradesh. However, Food Minister K V Thomas has said that sugar production in the country, is expected to remain unaffected despite delay in commencement of sugarcane crushing. Apart from secondary market, there will be buzz from the primary market too, as the Capital market regulator Sebi is likely to come out with new rules on public issue of stocks where IPO grading by credit rating agencies should not be compulsory.

The US markets ended modestly lower in last session ahead of the announcement of the Federal Reserve's monetary policy decision. Trade remained directionless throughout much of the trading day and traders were reluctant to make any significant moves. The Asian markets have made a mixed start with some of the indices trading in red, while the Japanese market has surged over a percent in early deals, as the country saw a merchandise trade deficit of 1.292 trillion yen in November, beating forecasts for a shortfall of 1.351 trillion yen.

Back home, Tuesday’s trading session turned out to be a disappointing day of trade for the Indian stock markets as key equity benchmarks snapped the volatile session once again in the negative terrain, extending their losing streak to sixth day in a row. Though, both the frontline gauges made a positive start supported by firm global cues. But, markets failed to sustain the positive momentum as sentiments took a hit after investors turned cautious ahead of Reserve Bank of India’s (RBI) mid-quarter review of monetary policy for 2013-14, slated to be released on December 18, 2013. Earlier, sentiments remained up-beat after India Inc has raised hopes that spurt in inflation to a 14-month high of 7.52 percent in November should not come in the way of the Reserve Bank's formulating an accommodative monetary policy and has said that high interest rates at this stage may only worsen the industrial slowdown and not help ease inflation. Supportive cues from US markets and Asian markets too provided some support to local markets. However, sentiments got hurt after Indian rupee depreciated ahead of Fed’s decision on tapering of its monetary stimulus. The rupee was trading at 61.91/92 per dollar at the time of equity markets closing as against previous close of 61.73/74 per dollar. Selling in banking counter too dampened the sentiments. Stocks like HDFC Bank, State Bank of India, Indian Bank, Bank of Baroda etc. edged lower on expectation that RBI may hike its key policy rate by 0.25% tomorrow, the third straight increase under Governor Raghuram Rajan as part of the war against inflation. Additionally, the PSU oil marketing companies too will be under pressure as it has been reported that losses on diesel sales have climbed to Rs 10.48 per litre after international oil rates inched up. Finally, the BSE Sensex declined by 47.38 points or 0.23%, to settle at 20612.14, while the CNX Nifty lost 15.65 points or 0.25% to settle at 6,139.05.