Arun Jaitley pitches for rate cut to boost growth

Pitching for a rate cut, Finance Minister Arun Jaitley, at an investor summit underscored that lower cost of capital would provide a good fillip to the economy. He nudged Reserve Bank of India to cut interest rates to boost growth at a time when inflation, especially food inflation had come down substantially over the past few months and global fuel prices ebbed to four-year low.

Cajoling India’s apex bank, he averred that RBI, which is a highly professional organization, if in its wisdom decides to cut down interest rates then this will give a good impetus to the Indian economy. However, in order to cut down on growing clamor of rate cut, RBI Deputy Governor S S Mundra, who was present at the same summit, emphasized the central bank revises rate, but not on 'popular demand' and further stated that it only does when there is a clear conviction in doing so. 

Earlier, too, pouring cold water on hopes of rate cut by RBI in its upcoming monetary policy, it’s another deputy governor, HR Khan  highlighted 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, policy makers just could not jump their guns until they were convinced the trend was firmly established.

The clamor for rate cuts have been growing louder after inflation measured by the wholesale price index has fallen to a five-year low of 1.77% in October, while consumer price index, which tracks prices consumers actually pay at shop counters, too, fell to a three-year low of 5.52% in October.

Separately, Finance Minister Arun Jaitley also assured investors of more reforms in the near future and large investments from domestic and foreign investors by NDA government, which has already taken several measures to boost growth in the infrastructure sector.

BASF trades in green on the BSE

BASF India is currently trading at Rs 1305.00, up by 10.15 points or 0.78% from its previous closing of Rs. 1294.85 on the BSE.

The scrip opened at Rs. 1349.90 and has touched a high and low of Rs. 1349.90 and Rs. 1298.00 respectively. So far 3820 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 1388.05 on 30-Sep-2014 and a 52 week low of Rs. 566.00 on 27-Jan-2014.

Last one week high and low of the scrip stood at Rs. 1358.60 and Rs. 1186.00 respectively. The current market cap of the company is Rs. 5657.43 crore.

The promoters holding in the company stood at 73.33% while Institutions and Non-Institutions held 7.09% and 19.57% respectively.

Following clearance by the competition authorities, INEOS has successfully completed the purchase of BASF’s 50% share in Styrolution, a joint venture between the companies. The purchase price for the acquisition is Euro 1.1 billion. Styrolution will continue to operate as a stand-alone Business within INEOS Industries Holdings.

Styrolution, founded in October 2011 as a 50-50 joint venture between BASF and INEOS, is engaged in manufacturing and selling acrylonitrile-butadiene-styrene and styrene-acrylonitrile and other products to industries, such as consumer durables, automobiles, business machines, telecommunications, electronics, etc.

Ortel Communications gets SEBI’s nod for IPO

Cable distribution firm, Ortel Communications (OCL) has received market regulator Securities and Exchange Board of India’s (SEBI) approval to raise funds through an initial public offer (IPO).

Ortel, a regional cable television and broadband service provider, plans to enter capital markets with a public issue of up to 14,182,598 equity shares of face value of Rs 10 each. The offering comprises a fresh issue to the public of 60 lakh shares and an offer for sale of up to 81.82 lakh shares by NSR - PE Mauritius LLC. 

This is the company’s second effort to hit the capital market. The company’s earlier plan in 2013 to garner Rs 100 crore through the stock market did not take off. The proceeds of the issue would be utilised for expansion of the company’s network for providing video, data and telephony services and general corporate purpose.

The company had filed its draft red herring prospectus (DRHP) with the SEBI in September this year for the proposed public offer. The SEBI issued its final observations on the draft offer documents on November 10. SEBI’s observations are necessary for the companies to launch any public offer.

Prior to that, the SEBI had sought clarification from the company’s lead manager, Kotak Mahindra Capital Company, regarding the company’s proposed IPO.

Tata Power raises Rs 1,500 crore through issue of NCDs

Tata Power has raised Rs 1,500 crore through issue of securities and the proceeds would be utilised for general corporate purposes, including towards repayment of maturing foreign currency convertible bonds. The power producer has issued two series of Non-Convertible Debentures (NCDs) worth Rs 1,500 crore on a private placement basis. The 9.32 per cent unsecured, non-cumulative, redeemable, listed, and rated Series 1 NCDs aggregating Rs 1,000 crore will be repaid in 2017, while the 9.48 per cent unsecured, non-cumulative, redeemable, listed, and rated Series 2 NCDs aggregating Rs 500 crore will be repaid in 2019. These NCDs would be listed on the wholesale debt market segment of NSE. The joint lead arrangers of these NCDs are Standard Chartered Bank, IDFC, Yes Bank, Axis Bank and Deutsche Bank. Tata Power is India’s largest integrated power company with a significant international presence. The Company has an installed generation capacity of 8521 MW in India and a presence in all the segments of the power sector viz. Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading.

Crude oil futures trade down on weak Asian cues

Crude oil futures traded down on MCX after speculators trimmed positions in tandem with a weak trend in Asian trade as well as subdued demand from alloy makers. The sentiments weakened further after Japan's economy slumped to recession, while prospects for an OPEC output cut dimmed.

The contract for November delivery was trading Rs 4650.00, down by 0.13% or Rs 6.00 from its previous closing of Rs 4656.00. The open interest of the contract stood at 17528.00 lots.

The contract for December delivery was trading at Rs 4680.00, down by 0.17% or Rs 8.00 from its previous closing of Rs 4688.00. The open interest of the contract stood at 5727.00 lots on MCX.

Rice procurement by government agencies dips by 5% to 9.91 MT

The procurement of rice by government agencies stood at 9.91 million tonnes (MT) so far in the ongoing 2014-15 marketing year. This is a drop of 5% compared to procurement of 10.42 MT in the same period last year. The rice marketing year runs from October to September and the annual procurement target for this year is 30 MT.  State-run Food Corporation of India (FCI) and other state agencies undertake procurement of rice and wheat in order to ensure that farmers get a Minimum Support Price (MSP). The state of Punjab and Haryana is witnessing much of the grain purchase activity while the procurement in Telangana has commenced on November 17. The procurement of grain in other states like Andhra Pradesh and West Bengal will begin after two weeks. So far this year the procurement of rice stood at 7.6 MT in Punjab, as against 7.9 MT in the year-ago, while in Haryana, it reached 1.96 MT as against 2.38 MT in the review period. In Telangana, as much as 212,000 tonnes of rice was procured so far this year. Last year, kharif rice procurement was 26.65 MT against the target of 32.06 MT.

Gold futures rise on MCX

Gold futures traded up on MCX as sharp depreciation of the Indian rupee against the US dollar more than offset the losses in the precious metal in the overseas market. A weaker rupee against the greenback exerts upward pressure on domestic bullion prices.

The contract for December delivery was trading at Rs 26475.00, up by 0.55% or Rs 145.00 from its previous closing of Rs 26330.00. The open interest of the contract stood at 8857.00 lots.

The contract for February delivery was trading at Rs 26677.00, up by 0.36% or Rs 97.00 from its previous closing of Rs 26580.00. The open interest of the contract stood at 2864.00 lots on MCX.

RBI in discussion with government to curb surging gold imports

The surging gold import that has led India’s trade deficit in October increasing by 26.06 percent at $13.35 billion, from $10.59 billion in the corresponding month of last year and which is putting pressure on the Current Account Deficit, has made the Reserve Bank of India (RBI) to discuss the matter with the government to curb its imports.Gold has seen a sharp surge in the recent months, in October alone gold import surged almost four times to $4.17 billion from $1.09 billion same month a year ago. RBI Deputy Governor S S Mundra was reported saying that a policy relook is warranted with the surge in gold import and further view will be taken after the discussions of the RBI and the government. Gold imports have touched 150 tonnes in October, as against 24 tonnes a year ago. Worried over the rising trend in gold imports, the government last week held a meeting to discuss ways to curb the import of the precious metal. Last year in August the previous government had imposed severe restrictions on gold imports and raised import duty to 10 percent in order to check burgeoning current account deficit and sliding rupee, but in in May this year it, eased certain rules and allowed private agencies to import gold under 80:20 scheme.

Aurobindo Pharma to invest around Rs 1,300 crore towards capex

Aurobindo Pharma is planning to invest around Rs 1,300 crore towards capex during the ongoing and next financial years. The capex will be spread out across APIs (active pharmaceutical ingredients) and formulations and the company’s operations have resulted in substantial improvement to support the capex through internal cash generation.

Moreover, the pharma company spent around Rs 275 crore during the first half the current year. Meanwhile, consolidated net operating income of Aurobindo in second quarter of the ongoing fiscal grew 50 per cent to Rs 2,881 crore over the same period a year ago. Profit After Tax (after minority interest) was up by 58.4 per cent to Rs 372.2 crore during the July-September quarter against Rs 235 crore in the same quarter last fiscal. 

Tata Power rises on aiming to achieve generation capacity of 18,000 MW by 2022

Tata Power Company is currently trading at Rs. 89.15, up by 0.70 points or 0.79% from its previous closing of Rs. 88.45 on the BSE. The scrip opened at Rs. 88.45 and has touched a high and low of Rs. 89.45 and Rs. 88.35 respectively. So far 115034 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 115.25 on 09-Jun-2014 and a 52 week low of Rs. 68.95 on 30-Jan-2014. Last one week high and low of the scrip stood at Rs. 94.10 and Rs. 85.50 respectively. The current market cap of the company is Rs. 24125.26 crore. The promoters holding in the company stood at 33.04% while Institutions and Non-Institutions held 50.93% and 15.87% respectively. Tata Power, India’s largest integrated power company, is aiming to double its generation capacity to 18,000 mega watt (MW) by 2022 and continues to strive to achieve new heights and benchmarks through excellence in business performance. In line with its commitment towards clean and green energy, the company aims to have 20-25% of its project from renewable energy sources, which is with the vision of the new government to promote more of clean energy in India’s energy mix. The company generates power from different fuel sources -- thermal (coal, gas and oil), hydroelectric power, renewable energy (wind and solar Photo-Voltaic).  Recently, the company had generated 10,946 million units (MUs) collectively from all its power plants in Q2 FY15. The Company’s subsidiaries CGPL and MPL have significantly contributed to the increase in generation capacity, with 5722 MUs and 1577 MUs respectively in Q2 FY15.  Tata Power is India’s largest integrated power company with a significant international presence. The Company has an installed generation capacity of 8521 MW in India and a presence in all the segments of the power sector viz. Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading.

Central Bank of India launches two new schemes

Central Bank of India has launched two new schemes, ‘Cent Home Double Plus Scheme’ and ‘Cent Aspire Deposit Scheme’ on November 17, 2014. Both the products are focused on customer-needs and offer something extra to the customers. The ‘Cent Home Double Plus Scheme’ has been launched as a customer friendly housing loan scheme in the shape of overdraft facility in housing loan. Under the scheme, the borrower may deposit any amount in excess to home loan EMI and have the convenience of withdrawing such excess amount deposited as per his requirement. The scheme also facilitates prepayment without any penalty or charges. This scheme is favourable to the customers for saving interest on their housing loan. In addition to Home Loan as an overdraft facility, the borrower can avail loans for repair, renovation, extension of house, furnishing, for purchase of consumer durables, furniture, vehicle loan for two/four wheelers, solar energy equipment, children marriage, education & medical expenses, family holiday tours and travels all at very attractive interest rate within their repayment capabilities. The ‘Cent Aspire Deposit Scheme’ offer the customers to enjoy the liquidity of their Time Deposit, even while their deposit continues to earn interest. It enables customers to get premium credit card without submitting any income proof or credit score/history, CIBIL report etc. The bundled card offers free credit period up to a maximum of 55 days. It carries at least 50% cheaper rate of interest i.e. 1.20% p.m. on card dues as against industry practice of 2.50% p.m. and above. The card comes without any issuance fee or annual fee.

Asian markets trade mostly higher in early deals on Tuesday

Most of the Asian equity benchmarks are trading higher in the early deals on Tuesday with investors mostly treading cautiously amid uncertainty about the outlook for the global economy. On the regional front, the Japanese stock market rallied sharply recovering from the biggest one-day rout this year as expectations for stimulus measures in Japan rose a day after the country reported that its economy slid into recession. The Chinese Shanghai Composite declined as falling home prices added to concerns that an economic slowdown will deepen and an exchange link. Among other markets in the Asia-Pacific region, Singapore, Indonesia and South Korea are notably higher. Malaysia is up marginally. Hong Kong, Taiwan and Shanghai are notably lower. Nikkei 225 soared 287.77 points or 1.70% to 17,261.57, KOSPI Index increased by 21.89 points or 1.13% to 1,965.52, Straits Times spurted by 14.03 points or 0.43% to 3,302.70, Jakarta Composite added 26.23 points or 0.52% to 5,080.17 and FTSE Bursa Malaysia KLCI was up by 4.58 points or 0.25% to 1,811.06. On the flip side, Hang Seng dropped 177.33 points or 0.75% to 23,619.75, Shanghai Composite contracted 10.25 points or 0.41% to 2,463.76 and Taiwan Weighted was down by 41.97 points or 0.47% to 8,842.42.

Government looking at 100,000 MW solar power in next 5-7 years

Putting its emphasis on renewable source of energy, the government is looking at a solar power generation target of 100,000 mw by 2022, up from the 20,000 mw goal planned by the previous government. Power, coal and renewable energy minister Piyush Goyal has said that "what we inherited was 20 gw (giga watt) up to 2022, which we are trying to reset to 100 gw. On the solar front, we believe there is enormous potential to take it to 100,000 mw in next 5-7 years". He further stated that the government of India stands committed to lead the revolution in the renewable energy sector.

The minister stated that renewable energy may seem expensive, but in the long run, it scores over conventional energy. The subsidy regime needs to be more robust, targeted and sustainable. He also said the government was trying to make these projects viable by providing grid parity to make them economically viable and ensuring that bankability and returns were reasonably assured.

The country wants to attract $100 billion - $115 billion of investment in clean energy over the next five years. But the government may find it difficult to achieve its solar target without subsidies as the country has added only 3 gigawatts. However, the minister has said that the government is trying to make it self-sustaining, in order to help it realise the revised target of 100,000 MW from renewable sources.

Rupee ends little weak on Monday on globally risk off sentiment

Indian rupee, after making a good start, depreciated substantially during the session and concluded tad weaker against dollar on Monday on risk off sentiment after data showing Japan slipping into recession sparked worries about global growth, which weighed on Indian currency and lifted the safe haven dollar to seven years high peak. Additionally, October trade deficit data, which showed that India’s export hit a seven-month low level at $26.09 billion from $28.90 billion last month, also added to pessimistic environment even as India's trade deficit in October narrowed at $13.36 billion from $14.25 billion in the previous month thanks to decline in oil import. However, losses of local unit were limited on account of record high close of local equities.

Finally the rupee ended at 61.74, little weak from its previous close of 61.72 on Friday. The currency touched a high and low of 61.78 and 61.63 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.67 and for Euro stood at 77.35 on November 17, 2014. While, the RBI’s reference rate for the Yen stood at 53.28, the reference rate for the Great Britain Pound (GBP) stood at 96.9393. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Reliance MF introduces Fixed Horizon Fund XXVII- Series 13

Reliance Mutual Fund has launched the New Fund Offer (NFO) of Reliance Fixed Horizon Fund XXVII- Series 13, a close ended income scheme. The NFO opens for subscription on Nov 18, 2014 and closes on Nov 20, 2014.  No entry load or exit load will be applicable for the scheme. The minimum subscription amount is Rs 5,000.

The scheme’s performance will be benchmarked against Crisil Short Term Bond Fund Index and its fund manager is Amit Tripathi.

The investment objective of the scheme is to generate returns and growth of capital by investing in a diversified portfolio of the following securities maturing on or before the date of maturity of the scheme with the objective of limiting interest rate volatility-Central and State Government securities and Other fixed income/ debt securities.

ICICI Prudential MF introduces Equity Income Fund

ICICI Prudential Mutual Fund has launched the New Fund Offer (NFO) of ICICI Prudential Equity Income Fund, a close ended income scheme. The NFO opens for subscription on Nov 18, 2014 and closes on Dec 02, 2014.  No entry load or exit load will be applicable for the scheme. The minimum subscription amount is Rs 5,000.

The scheme’s performance will be benchmarked would be a combination of 30% CNX Nifty + 40% CRISIL Liquid Fund Index + 30% CRISIL Short Term Bond Fund Index and its fund managers are Sankaran Naren, Chintan Haria, Manish Banthia, Shalya Shah.

The investment objective of the scheme is to generate regular income through investments in fixed income securities and using arbitrage and other derivative strategies. The Scheme also intends to generate long term capital appreciation by investing a portion of the Scheme’s assets in equity and equity related instruments.

HDFC MF introduces FMP 1113D November 2014 (1)

HDFC Mutual Fund has launched the New Fund Offer (NFO) of HDFC FMP 1113D November 2014 (1), a close ended income scheme. The NFO opens for subscription on Nov 18, 2014 and closes on Nov 25, 2014.  No entry load or exit load will be applicable for the scheme. The minimum subscription amount is Rs 5,000. The investment objective of the scheme is to generate income through investments in Debt / Money Market Instruments and Government Securities maturing on or before the maturity date of the respective Plan(s).

Crude oil futures decline again as Japan slips into recession

Crude oil futures slumped again on Monday on report of Japan unexpectedly slipping into recession in the third quarter, raising concerns over global economic recovery. The prices were also weighed down by the strength in dollar against other major currencies. Meanwhile, Japan said its economy unexpectedly contracted by an annualized 1.6 percent in the July-September quarter, following a 7.3 percent contraction in the prior quarter, forcing Prime Minister Sinzo Abe to postpone a second sales tax increase.

Benchmark crude oil futures for December delivery declined by $0.18 or 0.2 percent to close at $75.64 a barrel after trading in a range of $76.18 and $74.71 a barrel on the New York Mercantile Exchange. In London, Brent oil futures for January delivery were down 0.37 percent at $79.12 a barrel on the ICE.

Copper futures end lower on demand concerns

Copper futures declined on Monday as demand concerns mounted after Japan, the fourth-biggest consumer of the metal, unexpectedly sank into a recession in the third quarter. Further, output at factories, utilities and mines in the US, the second-biggest consumer, fell a seasonally adjusted 0.1% in October from the prior month, too added pressure on copper prices.

Copper futures for March delivery dropped 0.2 percent to settle at $3.0315 a pound on the Comex metals division of New York Mercantile Exchange. While, copper on the London Metal Exchange ended less than 0.1 percent to $6,704 a metric ton.

Gold futures edge lower as dollar strengthens

Gold futures edged lower on Monday following the dollar trending higher against a basket of major currencies, even as the precious metal's appeal as an alternate investment waned.

Gold futures for December delivery settled down 0.08 percent at $1,184.60 an ounce on the Comex division of the New York Mercantile Exchange. While spot gold fell 0.1 percent at $1,187.15 an ounce. 

Physical rubber prices declined on Monday

Physical rubber prices declined on Monday. Spot prices for RSS-4 variety declined to Rs 117/ kg compared to its previous closing of Rs 118/ kg, while RSS-5 variety closed at Rs 111/ kg compared to its previous close of Rs 111.50/ kg.

In the futures market, contract of December delivery slid to Rs 115.50 compared to its previous close of Rs 116.53, while January delivery closed at Rs 115.78 compared to its previous closing of Rs 116.57 on the National Multi Commodity Exchange (NMCE).

US markets closed mostly up; S&P at record highs

The US markets closed mostly higher on Monday, with the S&P index inching to an all-time high. There was however concerns with Japan falling into recession, while softer-than-expected manufacturing data, too weighed on sentiment capping the upside. On the economy front, the Empire State manufacturing index, the first of the many regional manufacturing gauges to be released, rebounded a bit to 10.2 in November from 6.2 in October. The index had stood at 27.5 in September, so the readings over the last two months indicate a downshift in activity. The new orders index returned to positive ground in November but unfilled orders, delivery times, and the average employee workweek remained in negative territory. On a more positive note, the index for expected general conditions index rose to 47.6, its highest level since January 2012. Industrial production fell a seasonally adjusted 0.1% in October, the second drop in the last three months. Another sign of softness came in a slight downward revision to September, to a 0.8% gain from the prior estimate of a 1.0% increase. In October, manufacturing output rose 0.2%, but mining output dropped 0.9% and utilities output fell 0.7%. Capacity utilization fell to 78.9%, below the 79.3% consensus. Meanwhile, economists trimmed their forecasts for US economic growth in the fourth quarter but slightly raised their expectations for the balance of 2014 on an improved outlook for the labor market. According to the Philadelphia Federal Reserve’s quarterly survey of 42 forecasters, analysts see the economy growing at an annual rate of 2.7% in the current quarter. In last quarter’s survey, growth for this quarter was forecast at 3.1%. The pace of hiring was expected to accelerate in the current quarter compared with previous expectations. The jobless rate was expected to be 5.9% at the end of the current quarter and 5.8% by the end of the first quarter of 2015. Inflation is expected to stay low, with year-on-year core consumer price inflation, which strips out food and energy costs, averaging 1.7% in the fourth quarter. Dow Jones Industrial Average added 13.01 points or 0.07 percent to 17,647.75, S&P 500 ended higher by 1.50 points or 0.07 percent to 2,041.32 while, Nasdaq was down by 17.54 points or 0.37 percent to 4,671.00.  The Indian ADRs closed mostly in green on Monday; Tata Motors was up 2.39%, ICICI Bank was up 0.18% and Infosys was up 0.15%. On the other hand, HDFC Bank was down by 0.23% and Wipro was down by 0.10%.

Sugar production estimated at 25 million tonne for current sugar season

The total sugar production is estimated at 25 million tonnes in the new sugar season starting October 2014-September 2015, which is similar to production of sugar in the previous sugar season. In-fact, the latest estimate of department of food is higher than first advance estimate of 24.5 million tonne and the increased production is estimated due to higher acreage in Maharashtra and Karnataka and carries over stock of 3-4 lakh tones. 

In the ongoing season October 2013-September 2014, the production of sugar has been around 24.3 mn tonnes. Meanwhile, according to first advance estimates released by the ministry of agriculture, production of sugarcane is estimated at 342.79 million tonnes, though lower by 7.23 million tonnes than the last year.

However, fearing surplus production, which could push lower the prices, the ministry proposes to continue with export of raw sugar and continue with the proposed subsidy for coming two seasons.

Nevertheless, there are reports that like earlier, sugar may not be exported under open general license and this free but the quantity of sugar is expected to be curbed at 10-12 lakh tonne while the amount of subsidy will hover around RS 3,000-3,000 per metric tonne.

Punj Lloyd secures EPC highway contract worth Rs 666 crore

Punj Lloyd has secured an EPC highway contract worth Rs 666 crore from the Ministry of Road Transport & Highways (MoRT&H) for 90.586 km of the Asian Highway (AH) Network, a cooperative project for improving transport facilities throughout 32 nations and providing road links to Europe. The project is scheduled for completion in 30 months.

The scope of work comprises rehabilitation and upgrading to 2/4-Lane of Bhutan Border at Pasakha to Bangladesh Border at Changrabandha comprising Jaigaon, Hasimara, Dhupguri section and Mainaguri-Changrabandha section. This contract includes the proposed Pasakha access road of length 6.558 km, bypass to Jaigaon and Hasimara in the state of West Bengal.

With this new order, the group’s order backlog stands at Rs 24,021 crore. The order backlog is the value of unexecuted orders on September 30, 2014 plus new orders received after that date. The cumulative order booking during the year stands at Rs 10,606 crore.

The Asian Highway Network is a part of the Asian Land Transport Infrastructure Development (ALTID) project being supported by United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). Also known as the Great Asian Highway, the network has eight routes in India including AH 48, funded by the Asian Development Bank. The total length of the Asian Highways in India is about 11,458 km, of which 11,432 km are National Highways and 26 km of State roads.

Shakti Pumps (India) wins ‘Special Contribution Award’

Shakti Pumps (India) has been honored with ‘Special Contribution Award’ by EEPC (Engineering Export Promotion Council, under ECGC, Government of India) in Large Enterprise Category - Product Group - Highest Exporter in Thrust Markets for Thrust Products. The award is indeed recognition for company’s contribution to exports business thereby saving huge amount of foreign exchange for the country.

Shakti Pumps was incorporated to manufacture submersible pumps and electric control panels. The company is engaged in the business of manufacturing of submersible pumps along with submersible motors and associated controls panels under the name ‘Shakti’.

India’s trade deficit surge 26% on Y-o-Y basis in October

India's trade deficit in October surged by 26.1% to $13.36 billion, however it narrowed from $14.25 billion in the previous month, thanks to decline in oil import. On one hand, India’s imports fell to $39.45 billion from $ 43.15 billion in September, but on the other, on a year-on-year basis, it increased 3.16%. Oil and gold are the key contributors to India's import bill. Oil imports fell to $ 12.36 billion as against $14.50 billion, on a month-on-month basis, the same also slipped by 19% lower on Year on Year (Y-o-Y) basis. Non-oil imports declined to $27.08 billion as against $ 28.65 billion, m-o-m basis. However, in a bit of concern, gold imports surged to $4.18 billion from 4 3.75 billion in October. On a year-on-year basis, gold imports jumped to $ 4.17 billion from$ 1.09 billion mainly because of the festivals like Diwali and Dhanteras, which are considered as most auspicious occasions in India to buy the yellow metal. In another spot of concern, exports in October hit lowest level since March 2014 as they fell to $26.09 billion from $28.90 billion last month. On a year-on-year basis, the fall has been to the tune of 5.04%. Cumulatively, during April-October period of the current fiscal, the country's exports were up by mere 4.72% to $189.79 billion, while imports rose by 1.86 per cent to $273.55 billion, leaving behind a trade deficit at $83.75 billion as against $87.31 billion in the same period last fiscal. The government had in the previous year clamped down on gold imports stipulating that nominated agencies could import gold on the condition that 20% of the consignment would be exported. The scheme, commonly referred to as the 80:20 scheme, was relaxed in May this year when RBI allowed star and premier export houses to import the commodity. However, with the sharp uptick in the shipments of yellow metal, reports now suggest that RBI is in talks with the Government for a decision to curb gold imports.

TCS BaNCS wins Global Custodian award

Tata Consultancy Services (TCS) flagship brand, TCS BaNCS for Securities Processing has won the prestigious Global Custodian award for Best Custody solution for the second consecutive year. Global Custodian had instituted these awards in 2013 to recognize the best solutions and professionals in the capital markets industry.

TCS BaNCS for Securities Processing/Custody is positioned for custodians, banks and financial institutions. Its real-time, multi-entity, multi-currency, multi-asset, multi-market, multi-lingual application enables end-to-end trade-to-settlement processing to address the business needs of custodians (Global, Regional and Sub-custodians).

TCS is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT, BPO, infrastructure, engineering and assurance services.

Adani Enterprises, ONGC and Sun Pharma to see some action today

Adani Enterprises won support from State Bank of India (SBI) and an Australian state to help it build a $7-billion coal mine, defying a slump in coal prices to 5-1/2 year lows that has stalled rival projects. The trading and infrastructure conglomerate signed a memorandum of understanding for a loan of up to $1 billion from the SBI for the mine, rail and port project in Queensland, which it aims to build by end-2017. The company also won a commitment from the State Government to take short-term, minority stakes in rail and port infrastructure needed to unlock massive coal reserves in the untapped Galilee Basin.

ONGC has appointed Intec Sea of Malaysia to help it develop the KG-DWN-98/2 block, which sits next to the block owned by Reliance-BP-Niko consortium, in the K-G basin. ONGC won the block in the first round of biddings - NELP-1 - back in 1999. The block has been estimated to hold 500 million tonnes of oil and oil equivalent gas - 100 mt of oil and 445 billion cubic metres or 1.33 trillion cubic feet of gas - which makes it ten times as big as the Ravva field in the K-G basin, in the deepwater seas off the Andhra Pradesh coast. The block could potentially produce 75,000-90,000 barrels of oil a day. ONGC has spent $1.3 billion on the block, made four oil finds and seven gas discoveries there, but is yet to produce anything.

Generic drug major Sun Pharmaceuticals Industries has recalled about 68,000 bottles of its anti-depressant venlafaxine hydrochloride, from the US market. The company withdrew the drugs, manufactured in its Halol unit in India, after they failed to dissolve properly, as stated by the US Food and Drug Administration (USFDA). The USFDA has called it a Class II recall, which means use or exposure to the drug would cause temporary or medically reversible adverse health consequences. Dissolution tests are a standard practice to check how a drug performs inside a body. This is the second recall of this drug by Sun Pharma in last four months. In July, the company had recalled about 40,000 bottles. Sun Pharma Global Inc, Dubai, United Arab Emirates, started the recall on September 26.

Financial Technologies (FTIL) announced that it was selling Bourse Africa, Mauritius, together with its wholly owned subsidiary, Bourse Africa Clear, to Continental Africa Holdings, Mauritius, for $40.5 million. The board of FT Group Investments, a wholly owned subsidiary of FTIL, gave its approval. The entire transaction will be completed in 210 days. Bourse Africa offers trading in commodities, equities and currencies.  With this deal, it will be the fourth exchange and in the fifth company sold by FTIL in 10 months, raising Rs 2,900 crore in all. It sold Singapore Mercantile Exchange in February for Rs 931 crore, then National Bulk Handling Corporation, a collateral management company, for Rs 242 crore. In July, it exited Multi Commodity Exchange, raising Rs 900 crore. Early this month, it entered into an agreement to sell Indian Energy Exchange for Rs 577 crore. It still has stake in MCX Stock Exchange, Dubai Gold and Commodities Exchange and Bahrain Financial Exchange.

Real estate firm Unitech’s sales bookings fell by 26 percent to Rs 527 crore in the first six months of this fiscal due to slowdown in the realty sector. The company had sold properties worth Rs 717 crore in the corresponding period of last fiscal. In volume terms, the company’s sales declined to 0.91 million sq ft during April-September period of this fiscal from 1.05 million sq ft in the year-ago period. The average realization has also dropped to Rs 5,818 per sq ft from Rs 6,830 per sq ft during the period under review. Segment-wise, the sales bookings in residential more than halved to Rs 251 crore in the first half of 2014-15 from Rs 510 crore in the corresponding period of last fiscal.

Tata Power, India’s largest integrated power company, has generated 10,946 MUs collectively from all its power plants in Q2 FY15. The Company’s subsidiaries CGPL and MPL have significantly contributed to the increase in generation capacity, with 5722 MUs and 1577 MUs respectively in Q2 FY15. The Company continues to pursue avenues to add ‘clean and renewable energy generation capacities to increase renewable energy portfolio. The total generation from Hydro was 398 MUs, Wind 282 MUs and Solar 1 MUs for Q2 FY 15. The Company has an installed generation capacity of 8521 MW in India and a presence in all the segments of the power sector viz. Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading.

Public sector steel behemoth Steel Authority of India (SAIL) would pump in Rs 35,000 crore to expand steel capacity of its unit- Rourkela Steel Plant (RSP) to 10 million tonne (mnt) from four mnt at present. SAIL had spent Rs 12,000 crore on modernization cum expansion plan of RSP that scaled up the plant’s capacity from two mnt to four mnt. It has installed the biggest blast furnace at RSP. SAIL has already applied for new iron ore mine leases to cater to the expansion of its Rourkela unit. The company has executed the lease deeds with the Odisha government for operation of its Bolani and Barsuan mines.

Tata Motor’s Zest is not able to match up to its competition sales figures mainly because of production constraints, which the company has failed to iron out even three months after launch of the sedan. The waiting period on all-new car from the struggling Mumbai-based company is several weeks, even as competing models in the segment are available off-the-shelf and even at a discount. Zest buyers are forced to wait up to six weeks for the automated manual transmission (AMT) version, available only on this car in the compact sedan segment. Maruti Suzuki’s Swift Dzire is the largest selling in this segment, while the Hyundai Xcent and Honda Amaze make the next two. After a huge promotional campaign prior to the launch, Tata Motors failed to anticipate the demand for the Zest, as well as prepare for a quick ramp-up in production. So far the company has clocked sales of around 10,000 units of the Zest, with an average of only 3,300 units a month in three months.

Hyderabad-based Gulf Oil Corporation India’s (GOCIL) first building of its Rs 1,800-crore ‘Ecopolis’ project at Yelahanka in Bengaluru is in the final stage of completion. The building block consisting of 1.04 million sq feet (sft) and a multi-level car park of 74,000 sft in a special economic zone (SEZ) is in the marketing stage. The revenue streams are expected to commence in the third or fourth quarter of the current financial year. Ecopolis consists of a 30 acre IT/ITeS SEZ park and a 10-acre hotel, hospitality and retail infrastructure. It is being developed in association with Hinduja Realty Ventures.

VE Commercial Vehicles (VECV), a 50-50 venture between the Volvo Group and Eicher Motors, has launched a new range of buses under Eicher Skyline Pro Series promising a comfortable ride for school kids and executives commuting to office. The new buses will meet the demands of the emerging premium market segment providing enhanced passenger safety. The firm, which commands a market share of 15.7 percent in the low and mid-sized bus segment, expects to increase it further during the current financial year with the introduction of these two buses and few other models to follow. Last year, it had a market share of 13.5 percent.