RBI says easing trading rules for infra bonds will not deepen mkts

Allowing the trading of bonds issued for infrastructure lending will not help deepen debt markets, newly appointed Reserve Bank of India Deputy Governor S.S. Mundra said on Wednesday.

Last month, RBI had said that trading of such bonds was not permitted.

In July, the central bank had allowed long-term bonds raised by banks for infrastructure lending to be exempted from mandatory reserve requirements.

Gold futures fall on weak global cues

Gold prices fell 0.14 per cent to Rs 28,259 per 10 grams in futures trade today as participants reduced positions on weak trend overseas amidst subdued demand at domestic spot markets. 

At the Multi Commodity Exchange, gold for delivery in December eased by Rs 40, or 0.14 per cent, to Rs 28,259 per 10 grams in a business turnover of 199 lots. 

Likewise, the metal for delivery in October shed Rs 33, or 0.12 per cent, to Rs 28,219 per 10 grams in 1,368 lots. 

Market analysts said there is a weakening trend in the overseas markets as dollar strengthened, reducing the appeal of the metal and pressuring the gold prices in futures trade. 

Sebi seeks clarification on Future Retail's rights issue

Market regulator Sebi has sought clarification from Kishore Biyani-promoted Future Retai regarding the company's proposed Rs 1,600 crore rights issue. 

Without disclosing the details of the clarifications sought, Sebi has said that "clarifications (are) awaited from lead manager" for the proposed rights issue. 

In a rights issue, shares are issued to existing investors as per their holding at pre-determined price and ratio. 

As per the latest weekly update to the processing status of draft offer documents filed with Sebi, the regulator has said clarifications were awaited on the proposed rights issue of Future Retail as on August 15 this year. 

The status is updated on a weekly basis by the regulator and the next update of the status as on August 22, this year, would be uploaded on Sebi Website on the next working day. 

Future Retail is the flagship company of the Future Group and is into organised multi-format retail business in India. 

The company has retail stores in various formats including food, fashion apparels, accessories and footwear, general merchandise, consumer durables and electronics. 

The company has pan-India presence with 321 stores in 98 cities as on March 31, 2014.

China shares end lower, IPOs raise dilution concerns

China's stock indexes ended lower on Wednesday, on concerns that upcoming new listings will dilute market liquidity even as investors look to take profits from a rise in some large-cap shares. 

sentiment was dampened by profit-taking in some index heavyweight shares, as well as a sell-off in media stocks on the ChiNext board after a three-day rally. 

The Shanghai Composite Index finished down 0.2 per cent at 2,240.21 points, while the CSI300 of leading Shanghai and Shenzhen A-share listings fell 0.4 per cent to 2,366.14 points. 

Late on Tuesday, the Chinese Securities Regulatory Commission (CSRC) announced that 11 Chinese companies would launch initial public offerings (IPO), with subscriptions starting at the end of August. 

ReGen Powertech to launch over 2 MW wind turbine

City-based wind turbine maker ReGen Powertech plans to come out with turbines with a capacity of 2 MW and higher in early 2016, an official said Wednesday.

"ReGen is currently developing and testing wind turbines of sizes in excess of 2 MW and plans to launch the same early 2016," Anirudh Khemka, head of Renewables, Hybrid and Special Initiatives, told IANS.

Disagreeing with the view that ReGen is tad late as competition already has such machines, Khemka said: "Our machines are different as it can work in low wind speed unlike others. We are certainly not late."

Currently the company makes 1.5 MW turbines with technology provided by German group Vensys at its factories located in Tada in Andhra Pradesh and Udaipur in Rajasthan.

Queried about the company's order book position, Khemka said it is around 600 MW for the current fiscal and the focus is mainly on independent power producers (IPP) segment.

Meanwhile, Khemka expects the market for the recently launched 2 MW class solar inverters between 1,600 - 1,800 MW per annum for the next three years.

Inverters are devices that convert variable direct current (DC) generated by renewable power plants like wind and solar into utility frequency alternating current (AC) that could be fed into a power grid.

According to him, the market is still in its infancy and fragmented with lot of imported components from Europe, America, China and Japan.

Khemka said the company has signed letters of intent worth 72 MW for solar inverters.

ReGen will manufacture three classes of solar inverters - 1 MW, 1.5 MW and 2 MW.

Citigroup eyes sale of Japan retail banking business

Citigroup is eyeing the sale of its Japanese retail banking operations, reports said Wednesday, more than a century after setting up shop in the Asian nation. 

The Nikkei business daily said the US financial giant was talking to Japan's three top lenders about a possible deal, among others. 

The bidding process was expected to begin as early as September, the daily said, adding that a number of domestic banks have expressed an interest, aiming to gain from Citigroup's relatively wealthy customer base. 

A company spokeswoman in Tokyo declined comment on the Nikkei report, a day after the Wall Street Journal also said Citigroup planned to exit Japan. 

The US company's 33 retail branches are mostly located in the greater Tokyo area, with deposits worth 3.9 trillion yen ($39 billion). 

Citigroup would still retain its profitable commercial banking operations in the country, the Nikkei said, adding that low interest rates had squeezed its retail business which relies heavily on individuals' deposits. 

HSBC withdrew from retail banking in Japan in 2012 and there are relatively few foreign lenders offering such services in the country. 

Citigroup entered the Japanese market in 1902, one of the first foreign lenders to operate in the country. 

Rupee down 15 paise against the US dollar

Snapping its two-day rising streak, the rupee fell by 15 paise to 60.82 against the US currency in early trade at the Interbank Foreign Exchange market today due to the dollar's gain against other units overseas. 

besides the dollar's gain against other currencies on upbeat economic data, fresh demand for the American unit from importers put pressure on the rupee but a higher opening in the domestic equity market capped the losses. 

The domestic currency had gained nine paise to close at nearly three-week high of 60.67 against the American unit in yesterday's trade on the back of sustained dollar selling by exporters and a surge in local stocks. 

Gold struggles below $1,300 on strong US data, higher stocks

Gold was stuck firmly below $1,300 an ounce on Wednesday after a three-day losing streak, as strong US housing data bolstered stock markets and dimmed bullion's appeal as a safe haven. 

While keeping an eye on mounting geopolitical tensions, investors were also awaiting minutes of the Federal Reserve's July meeting for clues about the US central bank's monetary policy outlook. 

Spot gold was little changed at $1,295.68 an ounce by 0332 GMT, after dropping 1.3 per cent in the last three sessions. US gold was steady at $1,297. 

Among other precious metals, platinum was holding up on Wednesday after a seven-day losing streak though it continued to trade near a two-month low. 

Silver was also near a two-month low, while palladium was holding just below a 13-year high. Geopolitical tensions continued to support gold by keeping losses in check. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 1.5 tonnes to 799.19 tonnes on Tuesday. 

Karur Vysya Bank rallies over 2% on share sale plan

Karur Vysya Bank LtdBSE 2.09 % surged as much as 2.19 per cent in trade on Wednesday after the bank said that it has launched a share sale on Tuesday to raise up to Rs 1,000 crore ($165 million) from institutional investors. 


Karur Vysya Bank  pared some of the morning gains but was still trading 1.3 per cent higher at Rs 476. It hit a low of Rs 475.25 and a high of Rs 480 in trade today. 

The floor price for the sale is Rs 461.70, the lender said in a regulatory filing, which is at a 1.7 per cent discount to Tuesday's closing price of Rs 469.70 on the Bombay Stock Exchange. 

Bharti Airtel rallies over 2% on sale of towers to pare debt

Bharti Airtel Ltd  managed to rally as much as 2.3 per cent in a lacklustre market after media reports suggested that the telecom major is in advanced stage talks to sell its tower assets. 

The telecom major is in advanced stage talks with American Tower Corporation (ATC) and Eaton Towers for selling its tower assets in several African countries, including Nigeria, Ghana and Uganda.

The deal is believed to be in the range of $1.5-2 billion, sources added. The proceeds from the deal is likely to be used for reduction of debt. The net debt of the company at the end of June 2014 stood at Rs 57,744.3 crore.

Airtel had in July sold 3,100 telecom towers in four African countries to Helios Towers Africa for an undisclosed sum. The company now has around 14,500 towers left in Africa.