Defence related companies rally as government notifies FDI hike

Shares of defence related companies such as Astra Microwave, BEML  etc. surged in trade after the government notified increase in foreign direct investment (FDI) limit to 49 per cent through approval route in the sector.

The move is aimed at boosting domestic industry of the country which imports up to 70 per cent of its military hardware.

Reacting to the news, stocks related to defence sector such as Astra Microwave rose as much as 7.02 per cent, followed by Walchandnagar Industries  Ltd which surged as much as 5.3 per cent and BEML, Pipavav Defence, Dynamatic Technologies  rose nearly 5 per cent each.

Other defence related stocks such as BHEL moved 0.3 per cent higher, Walchandnagar Industries was up 3.61 per cent and Dynamatic Technologies was 2.84 per cent higher.

FDI ceiling in the sensitive defence sector has been hiked from current 26 per cent, with the condition that the company seeking permission of the government for FDI up to 49 per cent should be an Indian company owned and controlled by Indians. 

Foreign direct investment proposals above 49 per cent will have to seek the approval of the Cabinet Committee on Security on "case to case basis, wherever it is likely to result in access to modern and state of the art technology in the country," according to the press note of the Department of Industrial Policy and Promotion. 

Supreme Court directs DLF to pay Rs 630 cr penalty

In 2011, CCI had found DLF violating fair trade norms and abusing its dominant position and imposed a penalty of Rs 630 crore.

n a huge win for customers, the Supreme Court (SC) on Wednesday directed realty major DLF  to submit Rs 630 crore within three months. The company will be submitting undertaking of interest of 9 percent on Rs 630 crore fine. 

In 2011, CCI had found DLF violating fair trade norms and abusing its dominant position and imposed a penalty of Rs 630 crore. This as a complaint was filed by Belaire Owners Association, Gurgaon - the owners’ association of a DLF project. The association alleged that DLF imposed highly arbitrary, unfair and unreasonable conditions on allottees of apartments and these conditions had serious adverse effects and ramifications on the rights of the buyers. This tribunal then dismissed DLF's plea against the fine imposed by the CCI. The tribunal had given the company 60 days to pay the penalty or approach the Supreme Court. DLF had then said that it would move the Supreme Court on the matter. 

Philips India's garment segment to grow

Philips India plans to clock 25 percent compound annual growth rate (CAGR) in the garment care category by the end of 2015, A.D.A. Ratnam, president, consumer lifestyle, Philips India said here Wednesday.

"In Philips, garment care category is growing in excess of 20 percent (CAGR). We would like to increase it substantially over a period of time, somewhere in the range of 25 percent plus by end of 2015. That's the way we want to grow and reach to more amount of customers," Ratnam told IANS on the sidelines of an event to launch Philips PerfectCare Iron.

In India, the garment care market is Rs.1,060 crore, which is growing at 10 percent CAGR.

"The introduction of more and more categories and the introduction of products (PerfectCare Iron) like these which will take us to the next level. We have a reasonably strong distribution channel and brand equity," he added.

The company has more than 20,000 outlets in the country.

Since January till date, the company has launched around 20 products, he said, adding: "Before Diwali (the festive season) there will be two-three more launches in the mother and child and air purifier categories."

The niche product in the ironing category that the company launched Wednesday is priced at Rs.23,495.

"The product is value for money and the customer is willing to buy," Ratnam said.

He mentioned that on an average, middle-class Indian families spend around Rs.1 lakh on dresses every year, hence those customers would not mind shelling out some more money to take care of their garments.

Liberty Shoes to consolidate biz in 3 phases

The company will merge with partnership firms, Liberty Enterprises & Liberty Group Marketing Division and is likely to acquire 10 sub-brands, distribution network, manufacturing facilities of partnership firms.

Fast-moving consumer goods company  Liberty Shoes  is likely to undertake a consolidation exercise to increase operational efficiencies and eliminate royalty. According to sources, the consolidation will possibly complete on three years in three different phases. The company will merge with partnership firms, Liberty Enterprises & Liberty Group Marketing Division and is likely to acquire 10 sub-brands, distribution network, manufacturing facilities of partnership firms.

Liberty had entered into a two-year agreement with partnership firms in FY13 .the proposal is likely to be submitted to the board after clarity on tax implication, evaluation of assets. The payment will be made through allotment of shares to partners post valuations exercise.  Liberty Shoes declined to comment on this development. 

BEL, BEML, Astra Micro up 5-8% on hike in defence FDI limit

DIPP has notified increase in foreign direct investment (FDI) limit to 49 percent through approval route in the defence sector. FDI ceiling in the sensitive defence sector has been raised from current 26 percent to 49 percent.

Buyers lapped up shares of Bharat Electronics ,  BEML and  Astra Microwave Products on Wednesday on hike in foreign direct investment limit in defence space. These stocks gained as much as 5-8 percent intraday. The Department of Industrial Policy and Promotion (DIPP) on Tuesday released a press note on defence FDI , saying foreign investment will be allowed through the FIPB route and foreign institutional investors (FIIs) will also be allowed to invest. It has notified increase in foreign direct investment (FDI) limit to 49 percent through approval route in the defence sector. FDI ceiling in the sensitive defence sector has been raised from current 26 percent to 49 percent. However, the caveat is that company seeking permission of the government for FDI up to 49 percent should be an Indian company owned and controlled by Indians.

According to the DIPP press note, foreign direct investment proposals above 49 percent will have to ask for Cabinet Committee on Security's permission. Further, the FDI limit of 49 percent is composite and includes all kinds of foreign investments - FDI, FIIs, FPIs, NRIs, foreign venture capital investors (FVCIs) and qualified foreign investors (QFIs). At 12:44 hours IST, the scrip of BEML was locked at 5 percent upper circuit at Rs 540.55 on the BSE. There were pending buy orders of 23,268 shares, with no sellers available. Bharat Electronics rose 7.26 percent to Rs 1,890 while Astra Microwave Products climbed 2.84 percent to Rs 128.75.

Brent rises near $103, rebounds from lows on North Sea outage

Brent crude oil rose towards $103 a barrel on Wednesday, recovering from a 14-month low hit last week as traders monitored maintenance work in the North Sea, although healthy global supplies limited gains. 

Oil benchmarks on both sides of the Atlantic have fallen by more than 10 per cent since mid-June and remain on track to post a second monthly fall against a backdrop of lower imports by the United States and slowing growth in China and Europe. 

But on Wednesday traders were watching to see if the Buzzard oilfield in the North Sea, one of the biggest contributors to physical supplies underpinning Brent future contracts, would return quickly after shutting again for additional maintenance. 

Brent crude for October delivery was up 43 cents at $102.93 a barrel by 0804 GMT, moving away from a 14-month low of $101.07 a barrel last week. 

US crude rose 26 cents to $94.12 a barrel after settling 51 cents higher on Tuesday on stronger economic data in the United States. Its discount to Brent was at $8.81 a barrel, having widened to its largest in two months on Monday. 

Crude inventories fell by 1.3 million barrels in the week ended Aug. 22 to 361.5 million, data from industry group the American Petroleum Institute (API) showed on Tuesday.

Burger King, Tim Hortons merge to form fast-food giant

Burger King is buying Canada's Tim Hortons coffee-and-donuts chain in an $11.4 billion deal that raised concerns about another US company moving abroad for tax advantages. 

Burger King Worldwide denied that the deal announced Tuesday, which would create the world's third-largest fast-food company, was being undertaken for tax reasons. 

But the planned move of the "Home of the Whopper" headquarters from Florida to Canada, which could cut its corporate tax bill, sparked calls for boycotts from consumers and objections on Capitol Hill. 

The deal, backed by legendary investor Warren Buffett, would create a giant of the quick-service restaurant (QSR) industry with $23 billion in sales and more than 18,000 restaurants in 100 countries. 

That would propel the as-yet unnamed new company to number three worldwide in sales after McDonald's and Yum!, owner of Pizza Hut, Taco Bell and Kentucky Fried Chicken. 

The planned merger is the latest in a wave of controversial tax-inversion deals, in which a US company relocates its statutory headquarters outside the country to take advantage of lower tax rates. 

In the deal, Brazilian-controlled 3G Capital will convert its roughly 70 percent equity stake in Burger King to a 51 percent shareholding in the new company. 

Venus Remedies Ltd rallies on strategic tie-up with Teva

Venus Remedies Ltd rallied as much as 13.9 per cent in trade on Wednesday, after the pharma major said it has entered into a collaborative agreement with Israel-based generic drug maker Teva for selling an anti- cancer drug in the Canadian market. 

Under this collaboration, Venus Remedies will be initially manufacturing the drug at the Venus Medicine Research Centre, its research unit, for assisting Teva in registrations.

Thereafter, Venus will also use its manufacturing capabilities to support Teva in enhancing the business from this drug in the Canadian market, said a company statement. 

UCO Bank down 8% on order of NPAs' forensic audit by FinMin

The finance ministry ordered forensic audit in case of non-performing assets (NPA) of the bank and that forensic audit will find out irregularities in loan sanction.
Shares of  UCO Bank fell more than 8 percent in early trade Wednesday on reports of some irregularities in loan sanction. The finance ministry ordered forensic audit in case of non-performing assets (NPA) of the bank and that forensic audit will find out irregularities in loan sanction.
Asset quality of the pubilc sector lender had improved in the quarter gone by . Gross NPAs of the public sector lender stood at Rs 6,346.3 crore at the end of June 2014, down 11.6 percent compared to same quarter last year and down 4 percent compared to previous quarter. Net NPAs declined 6 percent sequentially and 15 percent on yearly basis to Rs 3,344 crore in the quarter ended June 2014.
chairman of the bank had said, " The focus on recovery upgradation has continued and that is what is helping the bank to reduce gross NPAs. "Even net NPAs at 2.33 percent are below the last year 3.15 percent level as on June 30th and March 31st this year it was 3.28 percent. So continuously both gross and net NPAs are coming down and the focus will continue on the recovery and upgradation of distressed assets," he added.

TVS Motor Company rallies over 4%, hits 52-week high on growth plans

TVS Motor Company  Ltd rallied as much as 4.5 per cent in trade on Wednesday to hit its fresh 52-week high of Rs 193.10, after the two wheeler maker said it is eyeing about 18 per cent market share in the country's two-wheeler segment over the next two years on the back of its recently launched products as well as new launches planned in the future. 

The company, which today expanded its scooter range with the launch of Scooty Zest 110 priced at Rs 42,300 (ex-showroom Delhi), plans to introduce a couple of new products, including a completely new Apache bike in the next 6-9 months.

"Our market share last year stood at 12 per cent. Currently, it is around 13.5 per cent. By the end of this year we expect it to touch 14-14.5 per cent and in the next two years it should be around 18 per cent," PTI reported quoting TVS Motor Company Vice-President (Sales) J S Srinivasan. 

Rupee down 4 paise against the US dollar

The rupee depreciated by four paise to 60.47 against the US currency in opening trade today at the Interbank Foreign Exchange market due to dollar's gains against other currencies overseas. 

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

Yesterday, the domestic currency had gained 13 paise to close at nearly four-week high of 60.43 against the American unit following fresh dollar selling by exporters and sustained investments by foreign funds.