Maharashtra: Sena, Congress allege bias as BJP wins trust vote

The Congress and Shiv Sena alleged that Maharashtra Assembly Speaker Haribhau Bagde was biased towards the BJP during the confidence motion held earlier in the day, even as he ruled out the division of votes. Former state chief minister Prithviraj Chavan termed the Devendra Fadnavis-led BJP government as 'illegitimate', adding that the Congress will meet the Governor to demand another round of trust vote. Chavan said that they strongly condemn the decision by the Speaker not to hold another vote. This is an illegitimate government. It is a black day for Maharashtra's democracy. They will demand another round of trust vote. Congress leader Manikrao Thakre also threatened that his party won't let the Maharashtra Assembly function. Shiv Sena leader Ramdas Kadam said that his party will speak to the Nationalist Congress Party (NCP) on whether they can work on getting a motion against the Speaker. The Devendra Fadnavis-led BJP government won the vote of confidence in the Maharashtra state assembly through a voice vote today. BJP leader and Minister of State (Independent Charge) for Skill Development and Entrepreneurship, Rajiv Pratap Rudy said that the trust vote reflected the mandate of the people of Maharashtra and added that the mandate of the people of Maharashtra has been reflected. The vote of strength proves that the government should go ahead and fulfill the wishes of the people of Maharashtra.

Aircel partners with RCom to launch 3G services in Mumbai

Mobile telecom operator Aircel has partnered with Reliance Communications (RCom) to launch high-speed 3G services in the lucrative Mumbai circle. Aircel’s 3G services will offer enhanced user experience to subscribers, allowing them live streaming of various content and better access to social media. The company won 3G spectrum in 13 circles for nearly Rs 6,500 crore, which does not include Mumbai, where Bharti Airtel, Reliance and Vodafone emerged as winners. Under revised guidelines, operators are allowed to tie up with their peers and launch services in circles they do not have a license. Aircel is an Indian mobile network operator headquartered in Chennai, which offers voice & data services ranging from postpaid and prepaid plans, 2G and 3G services, Broadband Wireless Access (BWA), Long Term Evolution (LTE) to Value-Added-Services (VAS), while Reliance Communications is India’s foremost and truly integrated telecommunications service provider. The company, with a customer base of about 150 million, including over 2.5 million individual overseas retail customers, ranks among the Top 4 Telecom companies in the world by number of customers in a single country.

Bharti Infratel seeks to buy mobile towers of Vodafone, Idea in 7 circles

Bharti Infratel is seeking to buy mobile towers of Vodafone and Idea Cellular in seven out of 22 telecom circles in the country.

Infratel has over 36,381 standalone mobile towers spread across 18 states under 11 telecom circles. The company also has a 42 per cent stake in Indus Towers- joint venture between Bharti Infratel, Vodafone and Aditya Birla Telecom.

The states where Bharti Infratel has no overlapping business with Indus includes, Jammu and Kashmir, Himachal Pradesh, Madhya Pradesh, Chattisgarh, Bihar, Jharkhand, Odisha, Assam and North Eastern states. These states jointly come under 7 telecom circles.

Adani Enterprises to divest its holding in MEGPTCL

Adani Enterprises has received an approval to divest its holding of 70.75 crore Equity shares in Maharashtra Eastern Grid Power Transmission Company (MEGPTCL) to Adani Transmission, a wholly owned subsidiary (WOS) of the Company at a price to be determined on the basis of independent valuation report and deemed appropriate in the best interest of the Company subject to requisite approvals, if any. The board at its meeting held on November 12, 2014 has approved the same. Adani Enterprises, the flagship company of the Adani Group, is the country’s largest coal importer-turned-domestic private mine developer-cum-operator (MDO). The company is truly a diversified asset backed commodities trader, sourcing, producing, marketing and transporting them across the globe.

Ruchi Soya Industries divests its entire stake in Gemini Edibles and Fats India

Ruchi Soya Industries has sold its entire 50.001% investment of 37,50,001 fully paid equity shares in its subsidiary company ‘Gemini Edibles and Fats India’ to Singapore based Golden Agri International India Holding, for a consideration of $17.88 million equivalent to Rs 109.92 crore, as per the share purchase agreement entered into by the company and other sellers with the Golden Agri International India Holding. The transaction is neither a slump sale nor a related party transaction. Ruchi Soya is India’s leading FMCG Company, India’s number one cooking oil and soy food maker and marketer. It is also the highest exporter of soya meal, lecithin and other food ingredients from India.

Castor seed futures exhibit mixed trend on NCDEX

Castor seed futures exhibited mixed trend on NCDEX as the November contract traded higher on the back of restricted supply in physical markets as well as improved export demand, while December contracts traded lower on fall in demand from paint, soap and other manufacturing industries.

The contract for November delivery was trading at Rs 4799.00, up by 0.29% or Rs 14.00 from its previous closing of Rs 4785.00. The open interest of the contract stood at 24980.00 lots.

The contract for December delivery was trading at Rs 4879.00, down by 0.04% or Rs 2.00 from its previous closing of Rs 4881.00. The open interest of the contract stood at 328650.00 lots on NCDEX.

CARE assigns ‘A-’ rating to Vindhya Telelinks’ long term rupee loan

Credit rating agency, CARE has assigned ‘A-’ rating to Vindhya Telelinks’ long term rupee loan facilities. Meanwhile, the rating agency has revised rating of the company’s long term bank facilities to ‘A-’ from ‘BBB’ earlier, while the rating agency has also revised the company’s short term bank facilities’ rating to ‘A2’ from ‘A3’ earlier. The company is the leading supplier of Jelly Filled Telecommunication Cables and Optical Fiber Telecommunication cables to BSNL, MTNL and other leading user organizations like Railways, Defense, Coalfields, NTPC, SAIL, Atomic Energy, Bharti, Tata Tele Service, Reliance Infocom etc.

India Cement turns black in Q2

India Cement has reported results for second quarter ended September 30, 2014.

The company has reported a net profit of Rs 7.49 crore for the quarter under review as compared to a net loss of Rs 22.53 crore for the same quarter in the previous year. Total income of the company has increased marginally by 3.84% at Rs 1135.85 crore for Q2FY15 as compared Rs 1093.88 crore for the corresponding quarter previous year.

India Cements is largest manufacturer of cement in South India. India Cements owns 28% of the market share and is leader in south India. The cement manufacturer aims 35% market share. It has distribution network of 10,000 stockists.

Bond yields edge lower ahead of November CPI data

Bond yields were trading lower ahead of consumer price data due on Wednesday amidst hopes that lower rate of inflation would allow RBI to unveil early rate cuts. Nevertheless, further slide of yields was unlikely as state run bank’s strike weighed on demand for bonds. On the macro-front, besides November CPI data, October IIP data also is expected to be unveiled later in the day. While, the street widely expects consumer price index (CPI) to be at 6.46%, which is another new low for the index since it started in January 2012, it expects industrial output numbers (IIP) to be at 0.8%. Recently, however, RBI’s deputy governor HR Khan underscored that recent decline in inflation did not mean the decline was permanent. He also emphasized that though decline in crude oil prices and other commodities were beneficial to Indian economy, but policy makers just could not jump their guns until they were convinced the trend was firmly established. On the global front, U.S. Treasuries prices fell on Monday on the view that last Friday's rally was overextended, while traders also sold some U.S. government debt to brace for this week's $66 billion in new supply. Meanwhile, Brent crude fell towards $81 a barrel on Wednesday, holding just above a four-year low as concerns over a mounting oil glut outweighed geopolitical and supply disruption risks in Ukraine and Libya. Back home, the yields on new benchmark 8.40%-2024 bonds was trading 2 basis points lower at 8.17% from its previous close of 8.19% on Tuesday. The benchmark five-year interest rate swaps were trading 2 basis points lower at 7.39% from its previous close of 7.41% on Tuesday. The Reserve Bank of India has announced the auction of 364-day Government of India Treasury Bills for notified amount of Rs 6,000 crore and Rs 8,000 crore respectively. The auction will be conducted on November 12, 2014 using 'Multiple Price Auction' method. The Government of India announce the sale of Four dated securities for Rs 15,000 crore on November 14, 2014, which includes (i) 8.27% Government Stock 2020 for a notified amount of Rs 3000 crore, (ii) 8.40% Government Stock 2024 for a notified amount of Rs 7000 crore, (iii) 9.20% Government Stock 2030 for a notified amount of Rs 2,000 crore and lastly (iv) 9.23% Government Stock 2043 for a notified amount of Rs 3000 crore respectively.

IFCI soars on reporting 24% rise in Q2 net profit

IFCI is currently trading at Rs. 40.05, up by 0.95 points or 2.43% from its previous closing of Rs. 39.10 on the BSE. The scrip opened at Rs. 39.65 and has touched a high and low of Rs. 40.20 and Rs. 38.95 respectively. So far 1324826 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 44.90 on 10-Jun-2014 and a 52 week low of Rs. 21.80 on 04-Feb-2014. Last one week high and low of the scrip stood at Rs. 40.80 and Rs. 37.65 respectively. The current market cap of the company is Rs. 6531.81 crore. The promoters holding in the company stood at 55.53% while Institutions and Non-Institutions held 21.09% and 23.38% respectively. IFCI has reported 23.86% rise in its net profit at Rs 173.79 crore for the quarter under review as compared to Rs 140.31 crore for the same quarter in the previous year. Total income of the company has increased 15.50% at Rs 874.33 crore for Q2FY15 as compared Rs 756.95 crore for the corresponding quarter previous year. IFCI was established with intent to provide long-term finance needs of the industrial sector. It founded and developed various institutions namely ICRA for credit assessment rating, Tourism Finance Corporation of India (TFCI) for promotion of the hospitality industry, among others.

Asian markets exhibit mixed trend in early deals on Wednesday

Asian equity indices are exhibiting mixed trade in early deals on Wednesday, with investors looking for direction after Wall Street ended roughly flat overnight amid a lack of fresh triggers. On the regional front, the Japanese stock market rose as the yen traded near a seven-year low and bonds dropped on speculation a planned sales-tax increase will be delayed. However, the market pared some gains subsequently after the yen came off its lows. Among other markets in the Asia-Pacific region, Hong Kong, Indonesia and South Korea are modestly higher, while Singapore, Shanghai, Malaysia and Taiwan are trading weak.

Nikkei 225 soared 272.22 points or 1.59% to 17,396.33, Hang Seng increased by 296.02 points or 1.25% to 23,998.06, KOSPI Index spurted by 9.93 points or 0.51% to 1,972.93 and Jakarta Composite was up by 26.54 points or 0.53% to 5,058.83.

On the flip side, Straits Times dropped 2.43 points or 0.07% to 3,289.72, Shanghai Composite tumbled by 7.51 points or 0.30% to 2,462.16, FTSE Bursa Malaysia KLCI declined by 3.55 points or 0.19% to 1,821.56 and Taiwan Weighted was down by 98.27 points or 1.09% to 8,935.87.

Gold futures edge higher on rising physical demand

Gold futures edged higher on Tuesday on account of a double shot of rising physical demand and a weaker dollar. The sentiments improved further on declining global equity markets even as concerns the Federal Reserve may raise interest rates ahead of schedule next year continued to persist.

Gold futures for December delivery settled up $3.20 at $1,163 an ounce on the Comex division of the New York Mercantile Exchange. While spot gold rose 1.7 percent at $1,169.95 an ounce.

Sundaram Mutual Fund files offer document for Hybrid Fund-Series-M-O

Sundaram Mutual Fund has filed offer document with SEBI to launch a Closed-End Income Scheme as ‘Sundaram Hybrid Fund-Series-M-O’. The New Fund Offer price is Rs 10 per unit.

Entry and exit load charges will be nil for the scheme. The scheme offers growth and dividend option and seeks to collect a Minimum Target Amount of Rs 20 crore.

The scheme will be benchmarked against scheme CRISIL MIP Blended Index. The minimum application amount is Rs 5,000 and in multiples of Rs 10 thereafter per application.

The investment objective of the scheme is to generate capital appreciation and current income through a judicious mix of investments in equities and fixed income securities

FIIs were net sellers of Rs 1116.85 crore in index futures and options segments on November 11

According to the data released by the NSE, the Foreign Institutional Investors (FIIs) were net sellers of Rs 1116.85 crore in index futures and options segments, as per Tuesday’s data, November 11, 2014.

FIIs were sellers of index futures to the tune of Rs 347.62 crore and they sold index options worth Rs 769.23 crore. In the stock segment, FII’s were net sellers of stock futures worth Rs 118.52 crore, while they bought stock options worth Rs 21.97 crore.   

US markets closed up; S&P, Dow hits record high

The US markets closed higher on Tuesday, with the Standard & Poor’s 500 Index advancing a fifth day, as gains in homebuilder shares helped offset losses among industrial companies. The S&P 500 has rebounded at record highs from a six-month low in October amid better-than-estimated corporate results and signs that economy is weathering a global slowdown and the end of the Federal Reserve’s bond-buying program. Federal Reserve Chair Janet Yellen will meet on November 14 with a coalition of community groups, labor unions and faith leaders seeking to influence monetary policy and the way some Fed officials are appointed. The group has called for the Fed to place greater weight on lowering unemployment. The meeting comes as the Fed moves closer to a decision on when to raise interest rates for the first time since 2006. On the economy front, a measure of small-business optimism rose to a two-month high in October, helped by optimism over capital spending plans and sales. The National Federation of Independent Business stated that its small-business optimism index rose 0.8 points to 96.1. A record low percentage of small business owners reported problems getting access to capital and an unusually high number of owners say they have no interest in borrowing.

Dow Jones Industrial Average added 1.16 points or 0.01 percent to 17,614.90, Nasdaq was up by 8.94 points or 0.19 percent to 4,660.56, while S&P 500 ended higher by 1.42 points or 0.07 percent to 2,039.68. 

The Indian ADRs closed mostly in red on Tuesday; Infosys was down 0.57%, Tata Motors was down 0.49% and Wipro was down 0.23%. On the other hand, ICICI Bank was up 0.88% and Dr. Reddy’s Lab was up 0.15%.

HPCL, M&M and Infosys to see some action today

Hindustan Petroleum Corporation (HPCL) is likely to acquire 8% stake in Petronet LNG’s Rs 5,000 crore liquefied natural gas (LNG) terminal at Gangavaram in Andhra Pradesh. The Viskhapatnam refinery of HPCL, which is only a few kilometers away from Gangaravam port, is being expanded to 15 million tonnes per annum from current 8.33 million tonnes and the expanded unit will have a gas requirement of close to 2.5-3 million standard cubic meters per day. Andhra Pradesh government too has evinced interest and is likely to get 5 percent stake, leaving Petronet with 69 percent shareholding.

Mahindra & Mahindra (M&M) has increased prices of its passenger and commercial vehicles by an average of 1%. This increase would be in the range of Rs 2,300 to Rs 11,500 (ex-showroom) depending on the model and has been effective this month. M&M is the flagship company of the Mahindra Group, a multinational conglomerate based in Mumbai, India. Amongst the various business interests of its parent group, the company is mainly involved in the automobile manufacturing. It is one of the leading auto companies of India.

Infosys, a leader in consulting, technology, outsourcing and next generation services, has successfully implemented its Finacle core banking solution for Discover Financial Services, a leading U.S. direct bank and payment services company. The new Finacle platform provides Discover with real-time processing and customer servicing for the company’s deposits portfolio, and is expected to be extended to support Discover’s installment lending products as well. The Finacle solution helps companies enhance operational efficiency, bring new products to market, integrate and automate compliance functionality, reduce costs and deliver a superior banking experience to its customers.

Liquor maker United Spirits (USL) has lined up a number of measures, including selling treasury shares and surplus land and properties, to pare its huge debt of Rs 7,600 crore. The board has approved the plan to monetize surplus assets. The company plans to offload a substantial number of treasury shares of both itself and those of United Breweries held by USL. However, the treasury shares of USL are stuck in a litigation with a bank and it is expected to take a few more months before the issue is settled. USL, through the sale of treasury stocks, United Breweries shares and surplus land and properties, is expected to generate about Rs 2,000 crore.

Sesa Sterlite, India’s top private iron ore miner, expects to soon resume mining in Karnataka and produce at its court-set limit of 2.29 million tonne in the year ending March. The company in August stopped producing from its lone operational mine in the southern state pending the renewal of its licence, exacerbating a shortage of the raw material for users such as JSW Steel and Kalyani Steels. Following a court imposed ban of more than two years in Karnataka, Sesa restarted mining in the state in December last year, before being asked to stop again in August.

Amara Raja Batteries board which met at Chongqing in China approved setting up of a tubular battery plant. The proposed project will support accelerate the growth momentum and secure additional market share in the near future. The company has posted a net profit of Rs 100.30 crore for the second quarter ended September 30 as against Rs 94.58 crore for the same period last year. The company registered strong numbers based on volume growth. The company has registered higher income of Rs 1,060 crore for the second quarter, up 32 percent as against Rs 805 crore for the corresponding quarter last year.

SpiceJet has reduced its capacity in a fleet standardization exercise. Over the past six months, the airline’s fleet has shrunk from 58 aircraft to 48 planes with the carrier returning 10 Boeing 737s to lessors. Three planes have been returned in the past two months alone. The airline now operates 48 aircraft, including 33 Boeing 737s and 15 Bombardier Q400. The reduction in capacity and the grounding of a Boeing 737 following a collision with a buffalo in Surat have impacted the airline’s schedule, leading to cancellation of some flights. While SpiceJet is shrinking its fleet, its competitor IndiGo keeps adding aircraft to its fleet; it recently took delivery of its 100th aircraft.

Air passengers living in smaller cities in the country are in for a treat, as carriers are working on offering international connectivity directly to these cities in the days ahead. Jet Airways, owned 24% by Etihad, is in the process of connecting smaller cities in the country to Etihad’s hub in Abu Dhabi. Jet Airways will connect 10 cities by March next year in its plan to provide international connectivity to 23 smaller cities through Abu Dhabi. Flights from Lucknow and Goa to Abu Dhabi will be launched this month and Ahmedabad and Pune will be connected with the UAE capital by next March. 

Wipro’s - consumer care and lighting business could end this fiscal year with $1 billion (Rs 6,000 crore) in revenue, as the privately-held company expects the Narendra Modi-led government’s promised reforms to start reflecting on the ground, leading to a better second-half of the year for the company. Wipro’s Consumer Care & Lighting, which reported a little more than Rs 5,000 crore in revenue in the year ended March 2014, saw a 25% growth in revenue in the quarter ended September. This revenue growth of 25% in that period is on account of the 10-11% price hike undertook by the company.