Sensex ends above 26000; Sun Pharma, TCS gain; banks fall.

IT and pharma stocks led the rally while banks and oil & gas declined. Sun Pharma was up 4 percent while TCS, Tata Power, Infosys and Dr Reddy's Labs were other gainers in the Sensex. Among the losers were HDFC Bank, ONGC, GAIL, Axis Bank and Reliance.

Optimism and euphoria drove market sentiment with both the benchmark indices hitting record high. The Sensex managed to shut above 26000, up 138.02 points or 0.53 percent at 26100.08. The Nifty tad lower than the 7800-level, at 7787.15, up 35.55 points or 0.5 percent. About 1709 shares advanced, 1379 shares declined, and 92 shares were unchanged. IT and pharma stocks led the rally while banks and oil & gas declined. Sun Pharma was up 4 percent while TCS, Tata Power, Infosys and Dr Reddy's Labs were other gainers in the Sensex. Among the losers were HDFC Bank, ONGC, GAIL, Axis Bank and Reliance.

World Bank to invest $775 million in clean energy projects across India.

The World Bank plans to invest $775 million in clean-energy projects across India, even as it expects that the new government's plan to give fiscal and policy support to the sector will galvanise further investment in renewable energy.

"The support shown by the new government towards clean energy is quite encouraging and is expected to give the much-needed push to the sector and unlock pending investments," said Ashish Khanna, lead energy specialist at the multilateral funding institution.

"The World Bank is ready to partner with the government in scaling up sustainable clean energy investments."

Minister for Power, Coal and Renewable Energy Piyush Goyal recently said that the potential and scope of renewable sources were a part of the government's vision for ensuring energy security.

India's clean-energy sector has attracted interest of international investors. Recently, companies such as Welspun Energy and Renew Power saw investment from General Electric, Asian Development Bank and Goldman Sachs.

Gevorg Sargsyan, programme manager for climate investment fund at the bank, said it had approved two projects for investment - a $100 million Himachal Pradesh development policy loan and the $200 million Rajasthan renewable energy transmission investment programme implemented by the Asian Development Bank. 

According to the World Bank, the climate investment fund provides middle-income countries with highly concessional resources to explore options to scale up the demonstration, deployment and transfer of low-carbon technologies in renewable energy, energy efficiency as well as sustainable transport.

India has substantially increased its share of clean-energy projects, said Khanna. But, in order to achieve the targets of its own national solar mission, the government must provide long-term Clarity in policy, regulations and financial support mechanisms and encourage sustained commercial lending from financial institutions, he added.

Sun-Ranbaxy deal pushes domestic H1, M&As jump 22%.

The average M&A deal size climbed to USD 95 million during the reporting period from USD 62.8 million the same period last year.

he mergers and acquisition (M&A) activity involving domestic companies jumped 21.9 percent at USD 20.5 billion in the first half of 2014 over the same period last year, says a report. "The value of announced M&A deals involving companies reached USD 20.5 billion during the first half of 2014 despite a 11.2 percent slowdown in the number of deals from 582 to 517," a report by Thomson Reuters said today. The average M&A deal size climbed to USD 95 million during the reporting period from USD 62.8 million the same period last year. Domestic M&As stood at USD 10.1 billion, up 295.9 percent compared to the first half of 2013. "This was driven by Sun Pharmaceutical 's pending acquisition of  Ranbaxy Labs  for USD 4 billion in a stock swap transaction. The deal pushed the healthcare sector to capture 39.6 percent of the domestic deal making," the report said. Completed M&A deals involving domestic companies totaled USD 14.9 billion, a 20.7 percent rise compared to the first half of 2013, the highest first half period since 2011 which was at USD 20.7 billion.

Kotak Mahindra Bank slides ahead of exit from MSCI index

Kotak Mahindra Bank fell 1.93% to Rs 867.40 at 14:59 IST on BSE ahead of the bank's deletion from MSCI's Global Standard Index with effect from tomorrow, 8 July 2014.

On BSE, so far 99,412 shares were traded in the counter, compared with an average volume of 4.97 lakh shares in the past one quarter. The stock hit a high of Rs 881.75 and a low of Rs 854.65 so far during the day. The stock hit a record high of Rs 971.80 on 18 June 2014. The stock hit a 52-week low of Rs 588 on 28 August 2013. The stock had underperformed the market over the past one month till 4 July 2014, rising 2.62% compared with 4.66% rise in the Sensex. The scrip, however, outperformed the market in past one quarter, gaining 17.1% as against Sensex's 16.11% rise. The large-cap private sector lender has an equity capital of Rs 385.31 crore. Face value per share is Rs 5. Morgan Stanley Capital International (MSCI) decided to remove Kotak Mahindra Bank from its Global Standard Index after the stock reached its trigger limit on foreign institutional investor shareholding on 18 June 2014. The current limit on foreign shareholding in Kotak Mahindra Bank is at 37%. Morgan Stanley Capital International (MSCI) is a leading provider of benchmark indices and risk management analytics products. Many global mutual funds are linked with MSCI indices. Hence, deletion of a stock from the MSCI index leads to outflow of passive funds that use the MSCI index to benchmark their portfolios. On 30 May 2014, Kotak Trustee Company, a promoter group entity of the Kotak Mahindra Bank, sold 2.49 crore shares, or 3.24% equity, of the bank. After the sale of the shares, the shareholding of promoters in the bank has declined to 40.33%. Earlier in May 2014, RBI had ordered Kotak Mahindra Bank to bring down its promoter shareholding to 40% by 30 September 2014. Kotak Mahindra Bank will then have until 31 December 2016 to cut its promoter shareholding to 30%. As on 31 March 2014, promoters held 43.58% stake in Kotak Mahindra Bank. Among the promoter group, Uday Suresh Kotak held the largest stake of 39.76%. Kotak Mahindra Bank's net profit fell 6.7% to Rs 407.18 crore on 0.7% decline in total income to Rs 2552.96 crore in Q4 March 2014 over Q4 March 2013. Kotak Mahindra group is one of India's leading financial services conglomerates.

Xerox expands Services offering for the India market; rolls out ‘Next Generation MPS’

Xerox’s Next Generation MPS is an innovative solution with a shift in focus from optimizing printer fleets to optimizing business processes.

Xerox India, a part of Xerox Corporation, the world's leading enterprise for business process and document management services expanded its services offering with the launch of Next Generation MPS for the India market. The Next Generation MPS is designed to build momentum and deliver new value that help customers of all sizes realize cost savings upto 30% with increase efficiencies, allowing them to focus on their core business. Xerox’s Next Generation MPS is an innovative solution with a shift in focus from optimizing printer fleets to optimizing business processes.

Inox Winds aims to raise Rs 1,000 crore via IPO .

Optimistic about the next wave of growth in wind power, the $2 billion Inox Group is looking at the capital market for Inox Wind Ltd to raise around Rs 1,000 crore by this fiscal. 

It would be the third entity of the group to get listed. "We are looking at raising around Rs 1,000 crore from the market. Our merchant bankers have indicated that we may get the approval from regulators soon. We may list it by this fiscal," Inox Wind Ltd director Devansh Jain told PTI. 

He said the company will dilute only a minority stake in the proposed public offer. 

Wind power solutions providers since 2010, Inox Wind is a subsidiary of listed Gujarat FluorochemicalsBSE -2.35 %. The other publicly held company under the group is Inox LeisureBSE -0.12 %. 

Jain said the new government is giving a major thrust to the renewables including wind power and he hoped that a domestic market of wind power projects totalling 3.5 GW will roll out year-on-year. 

 He said the company expected accelerated depreciation benefit being restored for wind power and a boost for this form of renewable energy industry to come out of sluggish growth seen in the last 2-3 years. 

Adani Ports hits record high on JV with France's CMA CGM

Adani Ports and Special Economic Zone signed an agreement with the CMA CGM Group of France to develop a new comman user container terminal at Mundra Port.

Buying continued in shares of Adani Ports and Special Economic Zone  , the largest port developer in India, after it signed an agreement with the CMA CGM Group of France to develop a new comman user container terminal at Mundra Port. The stock gained as much as 2.7 percent intraday to touch a record high of Rs 282.50 Monday.

 "This will be the fourth container terminal in Mundra capable of handling 1.3 million TEUs (twenty-foot equivalent unit) annually," the company says in its filing. The project, which comprises of design and construction of a 650 meters terminal along with 27 hectares of back area with a water depth of 16.5 meters, will be completed in 24 months.


This 50:50 JV partnership further augments APSEZ’s existing two container handling locations at Mundra and Hazira along with its already announced two container terminals to be constructed at Ennore in Chennai and Dhamra in Odisha. The transaction is subject to approvals from the regulators as maybe required including the competition commission of India, MoCI and the GMB, says the company.

Tata Motors surges as its arm JLR trims its Jaguar XJ cost by 30%

Tata Motors is currently trading at Rs. 475.45, up by 7.00 points or 1.49% from its previous closing of Rs. 468.45 on the BSE.

The promoters holding in the company stood at 34.33% while Institutions and Non-Institutions held 36.89% and 7.53% respectively.

Tata Motors’ British-based arm Jaguar and Land Rover (JLR) has pared the cost of the Jaguar XJ by nearly 30% by manufacturing it at its plant in India. This is JLR’s third model being made in India and also the first time that JLR is manufacturing the XJ outside the UK. The car comes in premium and portfolio versions, priced respectively at about Rs 92.10 lakh and Rs 98.69 lakh at ex-showroom Pune. Earlier, Jaguar XJ was bringing in completely built units and assembling them so it was bit costly.

Tata Motors is India's largest automobile company, is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is also the world's fourth largest truck and bus manufacturer.

IT stocks in demand on weak rupee

Eight IT stocks rose by 0.25% to 3.96% at 12:38 IST on BSE as the rupee edged lower against the dollar today, 7 July 2014. Infosys (up 2.53% to Rs 3,321), HCL Technologies (up 1.52% to Rs 1,503), Hexaware Technologies (up 1.45% to Rs 157.55), Wipro (up 0.85% to Rs 552.15), Oracle Financial Services Software (up 0.68% to Rs 3,217.20) and Tech Mahindra (up 0.25% to Rs 2,121), edged higher. TCS rose 1.95% to Rs 2,456.95 after hitting record high of Rs 2,465.50 in intraday trade today, 7 July 2014. Polaris Financial Technology surged 3.96% to Rs 241.40 after hitting a 52-week high of Rs 243.40 in intraday trade today, 7 July 2014. The S&P BSE IT index was up 1.84% at 9,482.65 and was the top gainer among the sectoral indices on BSE. It outperformed the Sensex, which was up 0.24% at 26,023.33. The S&P BSE IT index had outperformed the market over the past one month till 4 July 2014, rising 11.55% compared with 4.66% rise in the Sensex. The index, however, underperformed the market in past one quarter, gaining 4.87% as against Sensex's 16.11% rise. IT stocks rose as the rupee edged lower against the dollar today, 7 July 2014. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 59.9850, compared with its close of 59.72/73 on Friday, 4 July 2014.

CNX IT Index surges past 10,000 on hopes of strong outlook.

The CNX IT Index is the top sectoral gainer on the NSE. It surged over 1.8 per cent intraday to breach important resistance level of 10,000 mark. 

According to analysts, most IT companies are likely to report Q1FY15 results in line with markets expectations. Strong demand outlook is pushing the major IT exporters to higher levels. 

Infosys, India's second largest software services company, will be announcing its Q1FY15 results on Friday. 

According to the HSBC report, most IT companies should report better 2Q growth than 1Q. It expects TCS to maintain its FY15 guidance of growth better than FY14. Infosys BSE 2.43 % is likely to maintain its full year guidance of 7-9 per cent, which is effectively a 50 bps cut due to cross currency benefit. 

Sentiment in most IT companies turned positive after better-than-expected Accenture results raised hopes of better business environment. 

Zen Technologies gains on getting rating reaffirmation for banking facilities by CRISIL

Zen Technologies is currently trading at Rs. 123.00, up by 1.10 points or 0.90% from its previous closing of Rs. 121.90 on the BSE.

The scrip opened at Rs. 127.85 and has touched a high and low of Rs. 127.85 and Rs. 123.00 respectively. So far 692 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 126.90 on 04-Jun-2014 and a 52 week low of Rs. 51.30 on 28-Jan-2014.

Last one week high and low of the scrip stood at Rs. 121.90 and Rs. 107.00 respectively. The current market cap of the company is Rs. 94.91 crore.

The promoters holding in the company stood at 59.52 % while Institutions and Non-Institutions held 0.16 % and 40.32 % respectively.

Credit rating agency, CRISIL has reaffirmed ‘BB+/Stable’ rating to long term bank facilities of Zen Technologies. The rating agency has also reaffirmed ‘A4+’ rating for the company’s short term bank facilities.

The ratings on the bank facilities of the company continues to reflect the group’s established presence in the defence training simulators industry supported by its managements’ extensive industry experience and established relations with customers.

Zen Technologies, over the years, has developed expertise in designing, developing and manufacturing various types of simulators. The products developed in-house not only meet all qualitative standards but also are cost-effective. Zen has an ISO 9001:2008 (QMS), ISO 27001:2005 (ISMS) Certification and is a CMMI Level 3 company.

Kia Motors posts 4.3% global sales growth in first half of 2014

Kia’s bestselling model in overseas markets for the first six months of 2014 was the B-segment Rio (known as ‘K2’ in China) with 247,388 units sold. Kia Motors Corporation announced its global sales figures (export sales, domestic sales and sales from overseas plants) for passenger cars, recreational vehicles (RVs) and commercial vehicles for the first six months of 2014, recording a total of 1,442,851 units sold. This figure represents a 4.3% increase over the same period of 2013. Cumulatively through the first six months of 2014, China, North America, General Markets* and Europe* have experienced gains of 12.0% (326,108 units sold), 6.5% (334,357 units sold), 2.9% (263,239 units sold) and 1.3% (300,383 units sold), respectively. Kia’s bestselling model in overseas markets for the first six months of 2014 was the B-segment Rio (known as ‘K2’ in China) with 247,388 units sold. The C-segment Cerato(known as ‘Forte’ or ‘K3’ in some markets) was the second bestseller with 219,484 units delivered, while the Sportage compact CUV, Optima D-segment sedan and Soul urban crossover followed with 209,045, 133,370 and 97,114 units sold, respectively.

Indian Hotels plans to raise Rs1,000 crores

Indian Hotels Company Ltd has announced that the Rights Issue Committee - 2014 (the “Committee”) of the Company proposes to consider and approve, on July 09, 2014, inter alia, the Record Date, Issue Schedule (i.e. Issue Opening / Closing date) and the Letter of Offer in relation to the issue of the compulsorily convertible debentures (the “CCDs”), by way of rights issue, to the existing shareholders of the Company on the Record Date for an amount aggregating upto Rs. 1,000 crores in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended and other applicable laws.

Cipla plans to invest up to £100 mn in UK subsidiary

The investment underscores the growing importance of UK in Cipla’s long term strategy. Cipla Ltd has announced that the Company, in collaboration with the UK government, has expressed its intention to make investments of up to £100 million in its UK subsidiary over the next few years. The investments are expected to facilitate the launch of a range of products in the area of respiratory, oncology and antiretroviral medicines to further Cipla’s higher purpose of "universal affordable access". Cipla also plans to invest in R&D activities, clinical trials and expand further internationally. The investment underscores the growing importance of UK in Cipla’s long term strategy.

Orchid Pharma completes debt recast scheme: reports

Report stated that the process enables the company to pay back dues of Rs2,866 crore to a consortium of lenders. Orchid Chemicals and Pharmaceuticals has completed debt recast scheme it initiated in June last year, says report. Report stated that the process enables the company to pay back dues of Rs2,866 crore to a consortium of lenders. The proceeds of the sale to Hospira amount to Rs1,134 crore.

Railway stocks surged ahead of Budget

Shares of Texmaco Rail & Engineering was up 5%, while Titagarh Wagons was up 3%.

Shares of Railway stocks are higher by up to 7% second day in a row ahead of the Railway Budget on Tuesday, July 8. Shares of Texmaco Rail & Engineering was up 5%, while Titagarh Wagons was up 3%. Kalindee Rail Nirman (Engineers) shares were up by 4%. Report stated that the Railway Budget is likely to focus on modernisation and devise new strategies for attracting private investment.

Hero MotoCorp rides into Colombia

With a project cost of US$ 70 million, HMCL will invest US$ 38 million in CAPEX, with the rest being utilised as working capital over the next three-year period.

In keeping with its vision of expanding its global footprint to as many as 50 countries by 2020,Hero MotoCorp Ltd (HMCL), the world’s largest two-wheeler manufacturer, today marked yet another significant milestone in its journey to global expansion–the formation of its whollyowned subsidiary in Colombia and the commencement of a state-of-the-art manufacturing plant in the country. The foundation-stone was today laid by Mr. Pawan Munjal, Managing Director & Chief Executive Officer, Hero MotoCorp Ltd, at the project site today. Also present on the occasion were senior representatives of the Colombian government, the Senior Leadership Team from Hero MotoCorp and other associates. With a project cost of US$ 70 million, HMCL will invest US$ 38 million in CAPEX, with the rest being utilised as working capital over the next three-year period. The equity investment will be made through HMCL’s wholly-owned subsidiary in the Netherlands –HMCL BV. The state-of-the-art manufacturing plant - spread over 17 acres (68,000 sq meters) of land at the Parque Sur Free Trade Zone at Villa Rica in the state of Cauca - about 500 km south-west of Bogota - is expected to go on stream by the middle of calendar year 2015 with an initial installed capacity of 78,000 units. This will go up to around 150,000 units in the second phase. With this, the New Delhi-headquartered Hero MotoCorp will be the first Indian two-wheeler company to have a manufacturing plant in Latin America. Hero MotoCorp – since charting its solo journey after separating from erstwhile partner Honda in 2011 - has fast augmented its global presence. As of today, Hero two-wheelers already sell in as many as 19 countries including Peru and Ecuador in South America; Guatemala, Honduras, El Salvador and Nicaragua in Central America; Kenya, Mozambique, Tanzania and Uganda in East Africa; Burkina Faso, Ivory Coast, Congo and Angola in West Africa and Turkey, Egypt, Sri Lanka, Bangladesh and Nepal in Asia. In partnership with its local distributors, Hero has also established assembly units in Kenya, Tanzania and Uganda in East Africa. With two more new plants coming up – the one inColombia, and the other in Bangladesh through a joint venture – the company is fast building up a global manufacturing base to cater to its growing international markets.

Vegetables prices up by 80% in two months: ASSOCHAM

Retailers are selling vegetables at more than 48.8% of wholesale prices and even in some centres selling prices are at more than 51%.

The ASSOCHAM study of 33 ‘Mandies’ in India has revealed that during April-June 2014, the gap between the wholesale and retail prices of vegetables has increased by 80% whereas retail prices in ten centres has been to the extent of 30%.

Releasing the study, the associated chamber of commerce and industry of India (ASSOCHAM) says, it was also observed that on an average, retailers are selling vegetables at more than 48.8% of wholesale prices and even in some centres selling prices are at more than 51%.

ASSOCHAM Secretary General Mr D.S. Rawat said, the analysis are based on the wholesale price of vegetables and retail price of vegetables in the different markets in India. Wholesale price indicates the price at which retailers are buying from different markets and retail price is the price at which consumers are buying from retailers.

The essential vegetables incorporated in the study are “Bitter gourd, Brinjal long, Brinjal round, Cabbage, Cauliflower, Garlic, Ginger, Chilly, Okra, Onion, Peas, Potato fresh, Potato store, Tomato hybrid and Tomato local”, added Rawat.

The study has observed that most of the vegetables arrival have recorded declining trend except local tomato, potato fresh and onion (noticeably onion price during 2013-14 has recorded life time high).

Onion arrival grew at a rate of 13.0 percent during 2013-14 followed by tomato local grew at a rate of 7.9 percent and potato fresh arrival grew at a rate of 6.2 percent. Okra and Cauliflower arrival have recoded marginal growth rate of 0.4 percent and 1.9 percent during the same period, mentioned the study.

Tata Power rallies over 3% on stake sale reports in Indonesian coal firm.

Tata Power Company LtdBSE 2.43 % rallied as much as 3.03 per cent in trade on Monday after the Company on Friday, said it would sell its 5 per cent stake in PT Kaltim Prima Coal for about $250 million to cut its debt, less than six months after offloading its holding in another Indonesian coal company PT Arutmin. 

At 09:25 a.m.; Tata Power was trading 2.6 per cent higher at Rs 110.20. It hit a low of Rs 109.50 and a high of Rs 110.45 in trade today. 

"Tata Power, facing under recovery and cash flow challenges due to its Mundra UMPP operations has signed options agreements to sell 5 per cent stake in PT Kaltim Prima Coal to get additional cash as well as to reduce its consolidated debt," the company said in a BSE filing. 

The company will sell its stake to Indonesian coal firm Bakrie Group entity. Post-stake sale, Tata Power's stake PT Kaltim Prima Coal (KPC) will be 25 per cent. 


As part of the deal, Tata Power through its subsidiaries has the option to sell 30 per cent stake in power infrastructure companies, which are associated with PT Kaltim Prima Coal, to the Bakrie Group entity, added a PTI report. 

Brent trades near 3-wk low just above $110; Libya could boost supply.

Brent crude prices hovered near a three-week low just above $110 a barrel on Monday, hurt by a potential rise in oil supply as Libya gears up to resume exports from two ports that have been closed for nearly a year. 

The benchmark dropped 2.3 per cent last week, its biggest weekly decline since early January, on the Libyan news. Brent is about $5 a barrel below its highest point this year - marked in June when fighting broke out in northern Iraq. 

August Brent had edged up 6 cents to $110.70 a barrel by 0142 GMT. U.S. oil for August delivery fell 15 cents from Thursday's settlement to $103.91 a barrel. There was a public holiday in the United States on Friday. 

State-run National Oil Corp (NOC) lifted force majeure from the major eastern Ras Lanuf and Es Sider oil ports after rebels agreed last week to end a blockade to press financial and political demands. 

Gold slips as strong equities, data dent safe-haven appeal.

Gold edged down for a second session in three on Monday as firm equity markets dented the precious metal's safe-haven appeal, while speculation over an earlier-than-expected hike in U.S. interest rates after strong jobs data also dragged on prices. 

Gold has been under pressure since data on Thursday showed U.S. employment growth jumped in June and the jobless rate closed in on a six-year low, decisive evidence of brisk economic growth. 


Asian stock markets held near three-year highs on Monday on optimism about the U.S. economy, while global equities hit record highs on Friday. 

Indian rupee opens lower at 59.81 per dollar.

he Indian rupee opened lower at 59.81 per dollar against 59.73 per dollar on Friday. The dollar clung on to most of last week's payrolls-inspired gains early. The dollar index was steady at 80.30 marks. Agam Gupta of Standard Chartered said that, “Expect RBI to buy dollars on any dips while exporters and FIIs to sell dollars between 59.90-59.95/dollar ahead of budget this week.” “Expect rupee to remain in range of 59.50-59.90/dollar,” he added.