Tuesday, 21 January 2014

Sensex, Nifty gain modestly

The Indian equity market managed to garner modest gains today. After opening with a positive bias, markets were unable to hold on to their early gains as the Indian rupee weakened against the US Dollar. The rupee was trading around the 62 per dollar mark as against previous close of 61.69.

The banking, auto and the consumer durable stocks were among the top gainers. Even the mid-cap and the small-cap stocks ended with gains. On the other hand, power, oil and gas, IT and telecom stocks were among the major losers.

Finally, BSE Sensex closed at 21,251 up 46 points, while NSE Nifty closed at 6,314 up 10 points over the previous close.

Yes Bank receives ISO 14001:2004 certification

Yes Bank, India’s fourth largest private sector bank, has become the first bank in India to qualify for ISO 14001:2004 Certification, world’s leading environment management system - for its 12 locations, which include major branches and corporate offices. Given its commitment to environment and conservation, this certification would enable Yes Bank to rigorously measure, manage and report its carbon footprint, thus a proactive step towards climate change.

All through its 10 years of existence, Yes Bank has been extremely sensitive towards resource consumption, and has been the first to adapt to mitigation frameworks and policies to reduce green house gas emissions that would contain the climate change situation. The ISO 14001:2004 Certification is an international endorsement and would serve as a practical toolbox to assist implementation of sustainable development action

Yes Bank has reported 21.41% rise in its net profit at Rs 415.60 crore for third quarter ended December 31, 2013 as compared to Rs 342.31 crore for the same quarter in the previous year. Total income of the bank has increased by 18.60% at Rs 2902.00 crore for quarter under review as compared to Rs 2446.83 crore for the quarter ended December 31, 2012.

Eclerx Services reports 27% rise in Q3 consolidated net profit

Eclerx Services has reported results for third quarter ended December 31, 2013.

The company has registered a rise of 28.45% in its net profit at Rs 61.31 crore in Q3FY14 as compared to Rs 47.73 crore in the corresponding quarter previous year. The total income from operations of the company has increased by 27.74% to Rs 186.31 crore for the quarter under review as compared to Rs 145.84 crore in the same quarter last year.

On the consolidated basis, the group has reported 27.31% rise in its net profit at Rs 62.32 crore for the quarter as compared to Rs 48.95 crore for the same quarter in the previous year. Total income from operations of the company has increased by 28.53% at Rs 219.52 crore for quarter under review as compared to Rs 170.78 crore for the quarter ended December 31, 2012.

Kotak Mahindra Bank reports 2% rise in Q3 consolidated net profit

Kotak Mahindra Bank has reported results for third quarter ended December 31, 2013.

The bank has reported 6.00% fall in its net profit at Rs 339.98 crore for the quarter as compared to Rs 361.68 crore for the same quarter in the previous year.  However, total income of the bank has increased by 3.86% at Rs 2492.01 crore for quarter under review as compared to Rs 2399.44 crore for the quarter ended December 31, 2012.

On consolidated basis, the group has reported 2.44% rise in its net profit after taxes, Minority Interest and Share of Profit of Associates of Rs 591.25 crore for the quarter ended December 31, 2013 as compared to Rs 577.21 crore for the same quarter in the previous year. Total income of the group has increased by 6.43% at Rs 4424.50 crore for quarter under review as compared to Rs 4157.12 crore for the quarter ended December 31, 2012.

Motilal Oswal Financial Services reports 88% fall in Q3 consolidated net profit

Motilal Oswal Financial Services has reported results for third quarter ended December 31, 2013.

The company has reported 28.81% fall in its net profit at Rs 13.64 crore for the quarter as compared to Rs 19.16 crore for the same quarter in the previous year. However, total income from operation of the company has increased by 8.48% at Rs 17.51 crore for quarter under review as compared to Rs 16.14 crore for the quarter ended December 31, 2012.

On the consolidated basis, the group has reported 87.85% fall in its net profit at Rs 3.55 crore for the quarter ended December 31, 2013 as compared to Rs 29.22 crore for the same quarter in the previous year. Total income from operations of the company has decreased by 0.17% at Rs 113.54 crore for quarter under review as compared to Rs 113.74 crore for the quarter ended December 31, 2012.

SEBI issues guidelines to strengthen monitoring of foreign investments in Interest Rate Futures

In order to check possibility of speculation in the domestic capital markets, the Securities and Exchange Board of India (SEBI) has put in place a stronger monitoring mechanism to restrain the exposure of foreign institutional investors (FIIs) to Interest Rate Futures (IRF) within limits.

The marker regulator also asked the market participants to keep information on daily basis about aggregate gross long positions of FIIs in IRFs, which is a contract between a buyer and a seller agreeing to the future delivery of any interest-bearing asset such as government bonds. Referring to foreign investors’ adherence to prescribed regulatory limits, the SEBI has noted that exposure of overseas entities along with their investments in government securities should be taken into account for monitoring their adherence to prescribed regulatory limits. Presently, FIIs are allowed to investment a maximum of $25 billion in government securities.

Further, the SEBI in its circular stated that stock exchanges of the country should provide information regarding aggregate gross long position in IRF of all FIIs taken together at end of the day to the depositories including NSDL and CDSL and shall also publish the same on their website. Meanwhile, the depositories are also now required to aggregate the gross long position of FIIs in IRF in each stock exchange. As per the SEBI, in case the total of cash and IRF of all FIIs reaches 85 per cent of the permissible limit, the depositories would have to inform Reserve Bank of India (RBI), SEBI and stock exchanges. Once FIIs utilise the maximum exposure limit of 90 per cent of limit, they are not allowed to further increase their long position in IRF. Furthermore, SEBI noted that FIIs violating these norms would attract stringent action.

Suzlon Energy soars on plan to dilute stake in REpower by 40% to 50%

Suzlon Energy is currently trading at Rs. 11.11, up by 0.55 points or 5.21% from its previous closing of Rs. 10.56 on the BSE.

The scrip opened at Rs. 10.60 and has touched a high and low of Rs. 11.42 and Rs. 10.60 respectively. So far 2276679 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 26.90 on 06-Feb-2013 and a 52 week low of Rs. 5.72 on 28-Aug-2013.

Last one week high and low of the scrip stood at Rs. 11.42 and Rs. 10.48 respectively. The current market cap of the company is Rs. 2728.85 crore.

The promoters holding in the company stood at 40.34% while Institutions and Non-Institutions held 26.89% and 32.49% respectively.

Suzlon Energy is likely to dilute its stake in REpower by 40% to 50%. The company will dilute this stake through issuing IPO and the size of IPO will be $600-$750 million. The company will use this money to repay German banks and Indian lenders including SBI and IDBI.

Earlier on March 1, 2012, REpower Systems SE, had signed an agreement with a consortium of banks headed by BayernLB, Commerzbank Aktiengesellschaft and Deutsche Bank AG for a syndicated loan of EUR 750.0 million. The loan has a term of 2.5 years. In total, 13 German and international banks and credit insurance companies are participating in this loan.

REpower Systems SE, a wholly owned subsidiary of the Suzlon Group, is one of the world’s leading manufacturers of onshore and offshore wind turbines.

VST Industries reports 16% rise in Q3 net profit

VST Industries has reported results for third quarter ended December 31, 2013.

The company has reported 15.86% rise in its net profit at Rs 38.70 crore for the quarter as compared to Rs 33.40 crore for the same quarter in the previous year. Total income from operation of the company has increased by 20.30% at Rs 212.21 crore for quarter under review as compared to Rs 176.40 crore for the quarter ended December 31, 2012.

VST Industries is engaged in tobacco and related products business. The Company has sales in India and outside India. Its products include cigarettes, unmanufactured tobacco, cut tobacco and other articles of paper and paper board

Govt sets textile exports target of $60 billion in 2014-15

Encouraged by turnaround in the textile exports, the government has set textile exports target of $60 billion in 2014-15, which is 30% higher from the target in the current financial year as it aims to cash in on developed nations' increasing dependence on India while focusing on skill development in the country. Meanwhile, for the current fiscal year, government has set a target of $43 billion.

Exuding confidence that March 2015’ export target is not difficult to achieve, Textile minister K S Rao underscored that only by addressing issues related to procedural clearances there will be an increase of 8% in textile exports. Additionally, he ensured that he would get all the proposals from the industry and would clear all the procedural hurdles for exports during his tenure.

Further, the minister unveiled that garment exports has been growing at 15% since the last nine months, while Apparel exports has grown at over 15% during April-December, 2013.

Hindustan Zinc gets CCEA’s nod for Government’s residual stake sale

Hindustan Zinc has received Cabinet Committee on Economic Affairs’ (CCEA) approval for the sale of Government’s residual stake in the company. The move might lower the pressure on the Government, which is struggling to meet the disinvestment target of Rs 40,000 crore and residual stake target of Rs 14,000 crore.

Till now, the Government has got less than Rs 3,000 crore under disinvestment and yet to open account in residual stake sale target. The government holds a 29.5% stake in Hindustan Zinc, the world’s second-largest zinc producer that is controlled by Anil Agarwal’s Vedanta Group.

Hindustan Zinc manufactures three qualities of zinc -- special high grade zinc used in construction, infrastructure, household appliances etc; high grade zinc and prime western zinc. It manufactures silver used in photographic material, conductor, jewellery, etc.

Zydus receives final approval for Bupropion Hcl ER Tablets

Zydus Cadila has received the final approval from the United States Food and Drugs Administration (USFDA) to Bupropion Hydrochloride Extended-release Tablets USP (XL) in the strength of 300 mg. The drug falls in the anti-depressants segment. The estimated sales in 2013 as per IMS for Bupropion Hydrochloride Extended-release Tablets USP (XL), 300 mg were $255.9 million. The total market for Bupropion was estimated at $526.7 million. The group now has 87 approvals and has so far filed 216 ANDAs since the commencement of filing process in FY 2003-04.

Cadila Healthcare, the flagship company of Zydus Cadila Group, focuses on various areas, such as formulations (human and veterinary), new drug discovery, novel drug delivery, pharmaceutical ingredients, analytical research, phytochemistry, biotechnology, plant tissue culture, etc.

Shreyas Shipping & Logistics gains as its arm bags contract from FCl

Shreyas Shipping & Logistics is currently trading at Rs. 26.85, up by 1.45 points or 5.71% from its previous closing of Rs. 25.40 on the BSE.

The scrip opened at Rs. 25.40 and has touched a high and low of Rs. 26.90 and Rs. 25.40 respectively. So far 610 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 32.45 on 01-Apr-2013 and a 52 week low of Rs. 16.05 on 05-Aug-2013.

Last one week high and low of the scrip stood at Rs. 26.00 and Rs. 23.05 respectively. The current market cap of the company is Rs. 58.00 crore.

The promoters holding in the company stood at 72.86% while Institutions and Non-Institutions held 0.05% and 27.09% respectively.

Shreyas Shipping & Logistics’ wholly owned subsidiary -Shreyas Relay Systems (SRS) has secured contract from Food Corporation of India (FCl) for multimodal handling and transportation of 20,000 tonnes per month. This contract is expected to substantially add to the Company’s top line as well as bottom line.

For the first time, the state-run FCl has been permitted by the Union Government to use the sea route to transport foodgrains from Andhra Pradesh to Kerala, Tenders to this effect have been finalized.

Shreyas Shipping & Logistics, a Transworld Group of company, was incorporated primarily to own and operate vessels for feedering of containers between Indian ports and internationally renowned container transshipment ports.

TTK Prestige not to cut down advertising and marketing spends

TTK Prestige - India's No.1 kitchen appliance is not looking to cut down advertising and marketing spends despite cost pressure. The company’s market share has increased across the board and it is not thinking of raising prices. The sales of induction cook tops however fell sharply during the third quarter ended December 31, 2013.

The relaxation in the cap on cooking gas cylinders will be marginally negative for the company as it negatively impacts sales of the company’s products.

TTK Prestige, one of the oldest business houses in the country. Having initially pioneered and established a network of distribution, TTK Prestige moved to manufacturing, post-independence. Being a dynamic and fast growing company, it soon became the leading manufacturer of Pressure cookers in India and offered the most comprehensive range of kitchenware in the world.

Lakshmi Machine Works reports over two jumps in Q3 net profit

Lakshmi Machine Works has reported results for third quarter ended December 31, 2013.

The company has reported a rise of over two fold in its net profit at Rs 52.40 crore for the quarter as compared to Rs 19.10 crore for the same quarter in the previous year. Total income of the company has increased by 46.19% at Rs 629.63 crore for quarter under review as compared to Rs 430.68 crore for the quarter ended December 31, 2012.

Lakshmi Machine Works, founded in the year 1962 is a global player and among the top three manufacturers of the entire range of Textile Spinning Machinery ranging from Blow Room to Ring Spinning.

Tata Power's Hydro Power Stations get certification for Integrated Management Systems

Tata Power, India's largest integrated power company has declared that its hydro generating stations at Bhira, Bhivpuri and Khopoli have received certification towards the successful implementation of QMS: ISO 9001:2008, EMS: ISO 14001:2004 and OHSAS :18001:2007 systems, by TUV NORD Mumbai.

These certifications are awarded to organizations who have improved their health and safety performance and demonstrated sensitivity and responsiveness towards their customers, employees and the society at large. The Company is committed towards facilitating a healthy working environment.

Tata Power is India's largest integrated power company with a significant international presence. The Company has an installed generation capacity of 8521 MW in India and a presence in all the segments of the power sector viz. Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading.

Supreme Petrochem reports net loss of at Rs 13.47 crore in Q2

Supreme Petrochem has reported results for second quarter ended December 31, 2013.

The company has reported net loss of at Rs 13.47 crore for the quarter as compared to a net profit of Rs 27.06 crore for the same quarter in the previous year. However, total income from operation of the company has increased by 2.14% at Rs 814.05 crore for quarter under review as compared to Rs 796.95 crore for the quarter ended December 31, 2012.

Supreme Petrochem (SPL) is a joint venture between the Supreme Industries and the Rajan Raheja Group. The Rajan Raheja Group has interests in cement, ceramic tiles, publishing, cable television, retailing, automobile batteries, readymix concrete, software, petrochem, hotels, asset management and real estate. The company started commercial production started in October 1995.

RIL to start production of natural gas from coal seams by FY16

Reliance Industries (RIL) is planning to begin production of natural gas from coal seams, called coal-bed methane (CBM), in Madhya Pradesh (MP) from FY16. In this regard, the process for acquiring land for well sites, market assessment & infrastructure for evacuation and transportation of gas has commenced.

The company is planning to produce 3.5 million standard cubic meters per day of gas from the two Sohagpur blocks.

RIL holds 3 CBM blocks -- Sohagpur (East) and Sohagpur (West) in Madhya Pradesh and Sonhat in Chattisgarh. The company has drilled over 40 crore holes on the 500 square kilometre Sohagpur West and 495 sq km Sohagpur East blocks and tested for gas content.

Recently, the company reported 0.16% rise in its net profit at Rs 5511 crore for the quarter as compared to Rs 5502 crore for the same quarter in the previous year. Total income of the company increased by 10.67% at Rs 105826 crore for quarter under review as compared to Rs 95626 crore for the quarter ended December 31, 2012.

FID Funds Mauritius sells 2.76 crore shares of South Indian Bank

FID Funds Mauritius has sold 2,76,63,631 shares of South Indian Bank through an open market transaction. The shares were sold at an average price for Rs 21 on National Stock Exchange (NSE) on January 20, 2014. On the other hand, Yusuffali Musaliam Veettil Abdul Kader bought 3,00,00,000 shares of  South Indian Bank at Rs 21 on the NSE.

The bank has reported 10.18% rise in its net profit at Rs 141.31 crore for third quarter ended December 31, 2013 as compared to Rs 128.25 crore for the same quarter in the previous year. Total income of the bank has increased by 11.79% at Rs 1334.74 crore for quarter under review as compared to Rs 1193.91 crore for the quarter ended December 31, 2012.

The bank’s gross NPA for the December 31, 2013 quarter of the current fiscal stood at 1.66%, as compared to 1.62% in the same quarter of the previous year. Besides, bank’s Net NPA stood at 1.18% as compared to 0.68% in the same quarter of the previous year.

Tata Global Beverages’ JV opens two new Starbucks stores at Bangalore

Tata Starbucks, the 50/50 joint venture (JV) between Tata Global Beverages and Starbucks Coffee Company has expanded its presence by opening two new stores in Bangalore. The two stores are located at Phoenix Market City and Brigade Orion Mall.

The company had launched its first store in Bangalore city at Koramangala in November 2013. Starbucks entered the Indian market in October 2012 and currently operates 34 stores in India across Mumbai, Delhi NCR, Pune and Bangalore.

Tata Global Beverages, formerly known as Tata Tea, is a multinational non-alcoholic Beverages Company headquartered in Kolkata, West Bengal, India and a subsidiary of the Tata Group. It is the world's second-largest manufacturer and distributor of tea. Tata Global Beverages markets tea under the major brands Tata Tea, Tetley, Good Earth Teas and JEMCA.

Emami reports 31% rise in Q3 consolidated net profit

Emami has reported results for third quarter ended December 31, 2013.

The company has registered a rise of 14.80% in its net profit at Rs 141.09 crore in Q3FY14 as compared to Rs 122.89 crore in the corresponding quarter previous year. The total income of the company increased by 4.26% to Rs 562.64 crore for the quarter under review as compared to Rs 539.60 crore in the same quarter last year.

On the consolidated basis, the company has reported 31.08% rise in its net profit at Rs 150.68 crore for the quarter, as compared to Rs 114.95 crore for the same quarter in the previous year. Total income from operation of the company has increased by 6.88% at Rs 596.87 crore for quarter under review as compared to Rs 558.44 crore for the quarter ended December 31, 2012.

Markets to continue the momentum with a positive start

The Indian markets after showing some weakness in mid-session made a good bounce back and ended higher by over half a percent in last trade. Today, the momentum is likely to continue with a good start and Nifty may reclaim the crucial levels of 6350. There is likely to be some buzz in the markets and the banking licence aspirants, as the Reserve Bank of India has sought to review the 'fit and proper' criteria for all categories of directors of banks ahead of the grant of new bank licences to corporates. Meanwhile, Oil minister M Veerappa Moily has ordered setting up a panel to assess India’s potential of hydrocarbons resources and refresh the two-decade-old estimate of oil and gas reserves. The panel will estimate the resources of all 3.14 million square kilometres of the 26 sedimentary basins of India and prepare a basin-wise portfolio. There will be some action in textile stocks too, as the government is setting up a $60 billion target for the next financial year, up by over 30% from the current financial year. There will be some buzz in the PSU stocks as well, as the Cabinet Committee on Economic Affairs (CCEA) has approved the sale of the Government’s residual stake in Hindustan Zinc.

There will be lots of important result announcements too, Ashok Leyland, Colgate Palmolive, Eclerx Services, Kotak Mahindra Bank, Mcleod Russel, Motilal Oswal, Tata Coffee, Thermax, Torrent Pharma and  Zensar Technology will be reporting their numbers.

The US markets remained closed, unable to give any cues to the other global markets, though the Asian markets have made a jubilant start after Chinese central bank injected funds into the financial system, while the Japanese market surged as the yen turned weak ahead of policy makers meet to review monetary policy.

Back home, shrugging off weak global cues, Indian equity benchmarks exhibited a strong performance on Monday and ended the session near the highest level, with frontline gauges garnering gain of over half a percentage point. The up-move was mainly supported by rally in some blue-chip stocks on the back of strong third quarter earnings. Sentiments also remained upbeat on report that FII’s remained on their buying spree and increased their stake in major companies in the December quarter. Earlier, markets made a sluggish opening due to somberness in the public sector oil marketing companies edging lower after Oil Minister M Veerappa Moily announced that the quota of subsidised cooking cylinders will be hiked to 12 from 9 per household. Increasing the limit to 12, which would result in an additional fuel subsidy burden of Rs 3,300 -5,800 crore for the government. Global cues remained choppy with most of the Asian equity indices ending in the red, European markets too traded mostly in the red in early deals. Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too equally participated in the rally. Both the benchmarks scaled past to the psychological levels of 21,200 (Sensex) and 6,300 (Nifty). Some support also came in after Reserve Bank of India decided to conduct Open Market Operations by purchasing government securities for an aggregate amount of Rs 10000 crore on January 22 2014, in a bid to ease the strain on liquidity in the banking system. Rally in software and technology counters too supported the sentiments. Stocks like, Wipro, TCS, Infosys, HCL Technologies etc. all edged higher after eight IT exporters reported a combined 37% year-on-year growth in net profit and 27% net sales growth. Finally, the BSE Sensex surged by 141.43 points or 0.67%, to settle at 21205.05, while the CNX Nifty gained 42.30 points or 0.68% to settle at 6,303.95.