Tata Motors launches Nano car in Bangladesh market

India's automobile giant Tata Motors has launched its low budget Nano car in Bangladesh, two years after it announced plans to capture the market in the neighbouring country. 

"We are confident that the combination of a perfect product with best-in-the-country service and parts back up will firmly establish the Nano's footprint in Bangladesh," chairman of Tata's sole distributor Tata Niloy Group, Matlub Ahmed, told the Nano's launching ceremony last night. 

Ahmed urged the government to withdraw the 45 per cent supplementary duty on cars under 700 cc so that the Nanos could affordable to low income people at much lesser price. 

Tata Motors introduced the 624cc Nano as a low-cost car in India in 2008 to attract the middle-class people. 

The Nano was scheduled to be launched in Bangladesh three years ago but the pricing issue delayed it.

Railways freight earning grew by 14.72 percent in July

Indian Railways Thursday reported an increase of 14.72 percent in its revenue from transporting freight during July, which stood at Rs.7,909.35 crore from Rs.6,894.61 crore earned during the corresponding period of last fiscal.

Financial year-till date the revenues rose by 9.30 percent in carrying commodity freight of about 357.58 million tonnes during April-July 2014 which stood at Rs.32,451.31 crore.

The railways had transported 343 million tonnes of goods worth Rs.29,690.16 crore in the corresponding month of last fiscal.

The total traffic in the period under review increased by 4.25 percent at 357.58 million tonnes than 343 million tonnes carried during the corresponding period of last fiscal.

According to the railways, out of the total earnings of Rs.7,909.35 crore during the month under review Rs.3,471.90 crore came from transporting coal, followed by Rs. 626.06 crore from carrying iron ore for exports, steel plants and for other domestic user, used services worth Rs.747.92 crore for ferrying cement.

Other commodities included food grains, petroleum oil and lubricant (POL), pig iron and finished steel and fertilisers.

The cash-strapped railways heavy depends upon freight revenues for meeting its operational expenses as passenger tariffs are still subsidised by the government.

Tata Steel, SAIL Venture Seeks Overseas Coking Coal Mine Deal

A venture of Tata Steel Ltd. (TATA) and state-run Steel Authority of India Ltd. (SAIL) is seeking to buy coking coal mines, preferably in Australia, according to a tender document on its website.

S&T Mining Co., as the venture is called, is looking to acquire assets or sign a long-term purchase agreement with mines, except those located in Russia, Mongolia and Mozambique, the document said. The tender sought expressions of interest from consultants willing to arrange the transaction or owners willing to sell.

Indian steelmakers depend on imports for more than half of their coking coal needs, exposing them to greater supply risks and price volatility. The foreign currency loans taken for overseas purchases also bares the steelmakers to foreign exchange risks.

S&T Mining is seeking assets with resources of more than 100 million metric tons and an annual production capacity of more than 2 million tons that are ready to start output in one to two years, according to the tender document. Applications are invited by Sept. 10.

International Coal Ventures Pvt., a consortium of five Indian state-run companies including Steel Authority, last month agreed to acquire Rio Tinto Group’s stake in coal mines in Mozambique for $50 million.

Benchmark coking coal prices for three months started July touched a six-year low of $120 a ton.

Hilton plans to add more hotels in India

Seeing India as a key strategic growth market, Hilton Worldwide plans to expand the network of its brand hotels in the country to 18 by the end of next year. 

One of the proposed hotels will be opened near Amber in Jaipur which will be the second property of the group in the city. 

Daniel informed that the group?s first luxury brand hotel will come up in Pune next year and one of the hotels was also planned in Agra. 

India, as a continuously growing and evolving market, offers enormous opportunities. The metropolitan cities have the capacity to absorb a larger inventory and aggressive economic growth in other regions and cities make these markets even more important. 

RBI issues norms on lending against shares by NBFCs

All NBFCs with asset size of Rs.100 crore and above shall report on-line to stock exchanges, information on the shares pledged in their favour, by borrowers for availing loans

At present, lending against shares carried out by NBFCs is not subject to specific instructions apart from the general prudential regulation applicable to all NBFCs. Lending against shares could be in the normal course where shares are accepted as collateral or as part of their capital market operations. NBFCs lend either by way of pledge of shares in their favour, transfer of shares or by obtaining a power of attorney on the demat accounts of borrowers. Irrespective of the manner and purpose for which money is lent against shares, default by borrowers can and has in the past lead to offloading of shares in the market by the NBFCs thereby creating avoidable volatility in the market. Certain other associated areas of concern relate to absence of adequate prior information to the stock exchanges on the shares held as pledge by NBFCs, probable overheating of the market, over-exposure by NBFCs to certain stocks and overleveraging of borrowers. Further, while NBFCs in general are understood to have in place their own internal controls with regard to lending against shares including a loan to value (LTV) ratio, there are anecdotal evidences of volatility in the capital market being the result of offloading of shares by NBFCs. It is, therefore, found necessary to introduce a minimum set of guidelines on lending against shares while at the same time ensuring that these do not result in unnecessary constraints to the requirements of genuine borrowers.


 

Gold drops to 2-month low as dollar gets boost from hawkish Fed

Gold extended losses to a fifth session on Thursday, sliding 1 per cent to its lowest in two months, after the US dollar strengthened on indications from the Federal Reserve that it could raise interest rates sooner than expected. 

A surprisingly strong recovery in the US job market could lead the Fed to raise interest rates earlier than it had been anticipating, minutes from the Fed's July meeting showed, although most officials wanted further evidence before changing their view. 

Spot gold fell as much as 1.2 per cent to $1,276.90 an ounce, its lowest since June 19, before recovering slightly by 0635 GMT to trade down 0.9 per cent at $1,280.04. 

US gold dropped as much as 1.6 per cent to $1,274.90, also a two-month low. 

Safe-haven gold failed to gain support despite a dip in Asian shares that came under pressure as a disappointing Chinese manufacturing survey stoked concern about the regional giant. 

The US dollar traded at 11-month highs against a basket of major currencies because of the slightly hawkish tone in the US central bank's minutes. 

More data on Thursday on US weekly jobless claims and eurozone and US manufacturing data could trigger further sell-offs in gold. 

Crude oil futures fall 0.19% on global cues

Crude oil futures declined by 0.19 per cent to Rs 5,688 per barrel today in line with a weak trend in Asian trade. 

At the Multi Commodity Exchange, crude oil for delivery in September shed Rs 11, or 0.19 per cent, to Rs 5,688 per barrel, with a business volume of 881 lots. 

Oil prices for October delivery moved down by a similar margin to trade at Rs 5,703 per barrel, with a business volume of 45 lots. 

 the fall in crude oil futures was mostly in tandem with a weakening trend in Asian trade on fading fears that conflicts in crude producers Libya and Iraq could result in a major supply disruption. 

Meanwhile, West Texas Intermediate crude oil for delivery in October was down by six cents to $ 93.39 while Brent for October eased 24 cents to $ 102.04 a barrel in late-morning trade on the New York Mercantile Exchange. 

Indraprastha Gas, Gail gain on govt notification

The ministry of petroleum and natural gas ordered GAIL India to cut natural gas supplies from non-priority sectors such as steel and petrochemicals.

Indraprastha Gas has gained 2.2% and had hit a high of Rs. 377, while GAIL India is up 2.1% and had hit a high of Rs. 437 on BSE today.

The ministry of petroleum and natural gas on Wednesday ordered GAIL India to cut natural gas supplies from non-priority sectors such as steel and petrochemicals in order to meet the full requirement of CNG retailers such as Indraprastha Gas Ltd.

it has been decided to authorise GAIL to divert domestic gas from the non-priority sector to meet the requirement of the CNG (transport) and PNG (domestic) segment in line with their actual consumption, the Ministry said in an order.

The gas would be supplied at uniform base price to each CGD entity.
GAIL will undertake the allocation exercise at the end of every six months and supply domestically produced gas to CGD entities based on their average consumption. Any increased requirement of the gas would be met by cutting supplies to non-priority sectors.

Titan Company hits 52-week high on Morgan Stanley upgrade

Titan Company Ltd rallied as much as 6.4 per cent in trade on Thursday to hit its fresh 52-week high of Rs 368.70 with high volumes, after Morgan Stanley upgraded the stock to 'overweight' from 'underweight' call earlier. 

Apart from raising their rating, Morgan Stanley has also increased their 12-month target price on the stock to Rs 420 from Rs 330 earlier, which translates into an upside of over 21 per cent from Wednesday's closing price of Rs 346.25. 

Apart from raising their rating, Morgan Stanley has also increased their 12-month target price on the stock to Rs 420 from Rs 330 earlier, which translates into an upside of over 21 per cent from Wednesday's closing price of Rs 346.25. 

The stock also saw volume surge by over 46 per cent to 1,80,395 shares as compared to its average daily volume of 1,23,197 shares on the Bombay Stock Exchange. 

Titan has long been regarded as one of the best plays on India's long-term income and demographics story. However, the RBI's policy changes toward gold imports, in order to control the current account deficit (CAD), materially altered the business model and earnings visibility. 

In a recent circular, contrary to our expectations, the RBI eased some of the quantitative restrictions on the import of gold. This has driven the stock up 50% over the last six months (vs. 28% for the Sensex) With this move, the first leg of re-rating is complete, Morgan Stanley said in a report. 

Zee Entertainment to be part of Nifty 50; stock rallies

MUMBAI: Zee Entertainment is soon going to replace United Spirits in Nifty 50. The stock, which is part of Nifty Junior, will be added to Nifty basket with effect from September 19, 2014. 

According to India Index Services & Products press release, there will be changes in other NSE indices as well. 

Aurobindo Pharma and Motherson Sumi Systems will be included in CNX Nifty 100 and will replace MphasiS and Zee Entertainment in CNX Nifty Junior. 

United Sprits will be excluded from all the indices it has been listed on. 


There have been changes in CNX Nifty 200 as well. Companies such as CARE, Castrol India, Muthoot Finance, Edelweiss Financial Services, Kaveri Seeds, Marico among others will replace likes of Adani Power, CRISIL, Bhushan Steel, Vijaya Bank etc. 

Rupee down 13 paise against the US dollar

The rupee declined by 13 paise to 60.74 against the US dollar in early trade today due to appreciation of the American unit against other currencies overseas. 
Besides, fresh demand for the US dollar from importers also put pressure on the rupee. 

The local unit had gained six paise to close at almost three-week high of 60.61 against the dollar yesterday on constant selling of the American currency by exporters and some banks amid increased inflows. 

Oil Minister reviewed the project of tourist facilities developed by IOF

The Minister of State (Independent Charge) for Petroleum & Natural Gas Dharmendra Pradhan reviewed the project of tourist facilities and peripheral development at Sun Temple Complex at Konark in Odisha on 19th August, 2014. The Indian Oil Foundation Trust (IOF) created by Indian Oil Corporation Limited (IOC), which is entrusted to develop the project with an expenditure of about Rs.36 crore, gave a detailed presentation on the facilities proposed to be constructed at Konark.

The IOF apprised the Minister of the progress on various segments of the Project. It was informed by the IOF that the construction work is at standstill due to encroachment of the land, proposed to be developed. The Minister agreed to take up the issue with the Odisha State Government authorities in this regard.

The Minister instructed that in view of the forthcoming celebrations of Nabakalebara in June 2015, the project must be completed latest by April 2015. A state-of-art Interpretation Centre with facilities such as Audio-Visual Centre, descriptive galleries, souvenir shops and other facilities shall be developed to explain the tourists the history and science behind the Sun Temple and the great cultural and historical tradition of Odisha. The IOF was instructed to expedite the work on this front. It was decided that the work for the Interpretation Centre would commence in the month of September 2014.