Tuesday, 2 December 2014

HomeShop18 withdraws $75mn NYSE IPO

Network18-backed TV and E-commerce company HomeShop18 has withdrawn $75 million IPO on the New York Stock Exchange,after the initial application, according to reports.
HomeShop18 reportedly said that that it is not proceeding with this offering since it is currently re-evaluating its capital raising strategy.
Earlier the company filed for a $75 million IPO on NYSE in April this year and had noted that it will not receive any proceeds from the sale of ordinary shares by Network18 Holdings Limited and other selling shareholders.

Gold Remains Under Stress After Massive Rally Last Night

Gold is down in Asia amid extremely volatile moves. The metal fell yesterday inelectronic session following an outright rejection of the Swiss gold referendum. However,a sharp swing upwards was noted in floor session in New York last night as plunging stocksand poor economic releases from around the globe triggered good safe haven buying. Themetal edged up from levels near five year lows and managed to post a massive 2% gain overthe previous close. The intraday rally in gold saw an upswing of nearly $60 per ounce.
However, these gains eventually took the metal to its highest levels in one month andthe counter failed to hold onto these highs. Asian trades today witnessed a massivecorrection in gold and the COMEX futures are currently trading at $1206.20 per ounce, down$11.90 per ounce on the day. MCX Gold futures for February 2045 are trading at Rs 26715per 10 grams, down Rs 224 per 10 grams or 0.83% on the day. The counter had tested highsabove Rs 27000 per 10 grams yesterday.
Yesterday, the Swiss National Bank (SNB) noted in a statement that it is“pleased” to hear of the outcome of the gold initiative vote. Swiss voterscrushed a proposal to boost central bank gold reserves which had made gold futures swingboth ways in last few days. The "Save our Swiss gold" initiative, which wouldhave compelled the Swiss National Bank to raise its gold reserves to 20% of its assetsfrom around 8% currently, was rejected by an overwhelming 77% of voters.
COMEX Gold futures failed to hold onto their rallies above $1200 per ounce last week.The yellow metal witnessed a solid correction in the last week of November following themassive rout in crude oil. The commodity had edged up earlier amid a general feeling thatprices have bottomed out after testing their weakest levels in four and half years fewdays back. Gold fell to lows near $1130 per ounce at the start of the month amidpersistent dollar strength and demand worries for the yellow metal.
Meanwhile, the Indian government removed restrictions on gold imports. It has beendecided by the Government of India to withdraw the 20:80 scheme and restrictions placed onimport of gold. The restriction was kept in place in August 2013 to curb the flow of metalin the country and to keep a check on the soaring current account deficit. This isexpected to boost the local gold supplies and could help keep the prices under check.Local spot prices have been hovering around Rs 26000 per 10 grams in major trading centresand the demand for jewellery remains strong.
US stocks slipped sharply yesterday. The US manufacturing sector slowed in November toits lowest rate of growth since January. Markit said its final U.S. ManufacturingPurchasing Managers Index fell to 54.8 from October's final reading of 55.9. This followedtepid global releases earlier in the day. The slowdown in the eurozone manufacturingsector continued into November, according to the latest PMI surveys from Markit. At 50.1,the final seasonally adjusted Eurozone Manufacturing PMI was only slightly above theno-change level of 50 and below its earlier flash estimate of 50.4.
China's manufacturing sector was stagnant in November with a PMI score of 50, thelatest survey from HSBC Bank stated. That was unrevised from last month's flash reading,and it sits right on the line that separates expansion from contraction. The index nowrests at a six-month low. Global credit rating agency Moody's Investors Service cut thesovereign-debt rating on Japan to A1 from Aa3, but said the outlook is stable. Worldstocks edged lower as a Chinese manufacturing gauge dropped and American holiday spendingslowed.

MOIL soars after GoI grants approval

MOIL after trading on a cautious note for the major part day, has now zoomed sharply after the company said that the Government of India has granted approval.

According to a release issued by the company to the BSE, the Government of India, Ministry of Mines had granted approval of mining lease for manganese ore over an area of 48.974 Ha land village Lugma, Tehsil Baihar in Balaghat District (MP).

The stock soared 5.5 per cent from the day's low of Rs. 307 to hit a high of Rs. 324. Now, MOIL is up nearly 3 per cent at Rs. 318.

The counter so far registered trades of around 54,000 shares, when compared to its two-week daily average volume of 21,000 shares on the BSE.

Meanwhile, the BSE Sensex is down 113 points at 28,446.

Sensex, Nifty slips post RBI policy announcement

As expected, RBI has decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 per cent and keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL);
At 11:26AM, the S&P BSE Sensex is trading at 28,529 down 30 points, while NSE Nifty is trading at 8,547 down 19 points.
The BSE Mid-cap Index was trading down 0.02%, while BSE Small-cap Index was trading flat.
Metal, Healthcare, Capital Goods, FMCG indices are the gainers, while Auto, Consumer Durables, Power, banking, realty, Oil and gas indices are the losers.
ONGC, Cipla, NTPC, BHEL, Tata Power, Tata Steel are among the gainers, whereas Bajaj Auto, Infosys, M&M, ICICI Bank are losing sheen on BSE.

Shares of Sun Pharma Advanced Research Company (SPARC) surged 12% after the firm announced that the US Food and Drug Administration (USFDA) has issued a complete response letter to its New Drug Application (NDA) for Latanoprost BAK-free eyedrops.
Shares of  Infosys was down 1% at Rs2144 and are trading ex-bonus on Tuesday. 
Shares of Jet Airways has hit 5% lower circuit at Rs331.

RBI leaves key rates unchanged

On the basis of an assessment of the current and evolving macroeconomic situation, RBI has decided to:
keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 per cent;
keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL);
continue to provide liquidity under overnight repos at 0.25 per cent of bank-wise NDTL at the LAF repo rate and liquidity under 7-day and 14-day term repos of up to 0.75 per cent of NDTL of the banking system through auctions; and
continue with daily one-day term repos and reverse repos to smooth liquidity.
Consequently, the reverse repo rate under the LAF will remain unchanged at 7.0 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 9.0 per cent.

All eyes on RBI; will he, won't he?

The burden of expectations may not really weigh down the RBI governor who is expected to leave interest rates intact. In recent times, the voices demanding a rate cut have got louder with even the finance minister joining the bandwagon. It's a matter of few hours before the suspense ends. Will he, won't he? That's the question for now and investors will choose not to really speculate much now.
 
The outlook is a subdued start. The banking stocks will be in focus due to RBI policy. Infy goes ex-bonus today. Global cues are not really encouraging. With growth in US manufacturing sector slowing for a third straight month in November, US indices saw selling pressure. Manufacturing growth across Asia and Europe eased in November as heavy price cuts failed to revive demand, says a report. Moody's downgrade of Japan to Aa3 from A1, also caused some jitters. The rating agency was apprehensive that Japan would meet its fiscal goals and be able to grow its economy.

Nifty below 8,550 levels

At 10:35AM, the S&P BSE Sensex is trading at 28,478 down 81 points, while NSE Nifty is trading at 8,530 down 25 points.
The BSE Mid-cap Index was trading down 0.02%, while BSE Small-cap Index was trading flat.
Metal, Healthcare, Capital Goods, FMCG indices are the gainers, while Auto, Consumer Durables, Power, banking, realty, Oil and gas indices are the losers.
ONGC, Cipla, NTPC, BHEL, Tata Power, Tata Steel are among the gainers, whereas Bajaj Auto, Infosys, M&M, ICICI Bank are losing sheen on BSE.
Dr. Raghuram Rajan, Governor will announce the Fifth Bi-monthly Monetary Policy Statement for 2014-15 today.
The banking stocks will be in focus due to RBI policy.
The Dow Jones fell 0.29% while S&P 500 shed 0.68%. Nasdaq dropped 1.34%.
Asian indices are mixed. Japan's Nikkei and Hong Kong's Hang Seng are lower while China's Shanghai index is flat.
India Inc is expecting at least 50 basis points cut in the benchmark interest rate at least this time around by the Reserve Bank of India when it takes into account falling inflation and a lower build- up of price rise, an ASSOCHAM survey had pointed out, ahead of the credit policy review on Tuesday

NMDC to open new iron mines in Chhattisgarh, Karnataka next year

National Mineral Development Corporation (NMDC), India’s top iron ore miner, is all set to open and develop new iron ore mines in Chhattisgarh and Karnataka next year, a move expected to boost steel production.
The mine to be opened in the Bailadila sector in Chhattisgarh is in the Deposit-11 B Iron Ore Project while the one in Karnataka is part of the Kumaraswami Iron Ore Mines.
NMDC is a state-controlled mineral producer of the Government of India. It is fully owned by the Government of India and is under administrative control of the Ministry of Steel.

Sensex snaps 3-day gains, down 134 pts ahead of RBI policy



Equity benchmarks snapped three-day gains on Monday with the Sensex falling over 100 points as investors looked cautious ahead of RBI policy. Profit booking and weak global cues also pushed the market lower; oil, capital goods, metals, power and HDFC group stocks lost ground whereas FMCG, auto and select technology stocks supported the market. The 30-share BSE Sensex fell 134.37 points to close at 28559.62. The 50-share NSE Nifty slipped 32.35 points to 8555.90 after hitting a record high of 8623 in early trade. Though the market may be nervous ahead of RBI policy, the uptrend remains intact, say experts. Ridham Desai of Morgan Stanley expects the Sensex to hit 32,500 by end of December 2015. “Indian equities are benefiting from the start of a new growth cycle, a benign global environment resulting in a positive shift in terms of trade and reforms, which can lift India's potential growth rate,” he said. Mark Matthews, Bank Julius Baer and Co is also bullish on Indian equities. He sees 50 percent upside from the current levels in the Indian market in the next 18-24 months on the back of improving economy and earnings growth. However, according to Gautam Shah, Associate Director & Technical Analyst, JM Financial, it is time for investors to book serious profits as the market is showing signs of making a near term top. He expects the market to correct over the next 4 to 8 weeks. Meanwhile, the Reserve Bank of India will unveil its fifth bimonthly monetary policy review on Tuesday. As the crude (one of the major contributors to inflation) has consistently been falling, investors feel the RBI may consider rate cut or may indicate rate cuts in next policy meets. A CNBC-TV18 poll shows that 95 percent economists don't expect a rate cut on Tuesday while 60 percent expect the governor to sound dovish. The HSBC PMI hit a 21-month high in November at 53.3 versus 51.6 in October. Manufacturing operating conditions in India improved for the thirteenth month in a row in November, supported by stronger growth of output and new work intakes. On the global front, Asian markets (barring Japan) closed lower with the Hang Seng falling 620 points while the Nikkei index hit a 7-year high. China’s manufacturing PMI hit six-month low at 50 in November from 50.4 in October. European markets like France's CAC, Germany's DAX and Britain's FTSE were down 0.4-0.8 percent (at 16 hours IST) after Germany’s November manufacturing PMI was lowest in 17-month at 49.5 versus 51.4 in October. The commodity collapse continued as oil saw its longest losing streak since 2008 crisis. Brent crude slumped further to USD 68 a barrel, down almost 3 percent today. Both Nymex and Brent have fallen for five straight months. Back home, shares of ONGC and Hindalco Industries plunged 4 percent each followed by Reliance Industries, HDFC, Tata Steel, BHEL, Sesa Sterlite and Tata Power with 2-3 percent fall. Infosys was down 0.2 percent as it will trade ex-bonus from Tuesday onwards. The software services exporter had announced the issue of bonus shares in the ratio of 1:1. However, Asian Paints was the biggest gainer on the Nifty, up 7 percent after Bank of America Merrill Lynch upgraded the stock to buy from neutral and raised target price to Rs 875 from 680 (18 percent potential upside). Auto stocks remained in focus today. Car maker Maruti Suzuki was up 1.6 percent after it recorded a 19.5 percent growth in November sales. However, the company decided to recall 3796 Ciaz cars to replace the relevant part of clutch operation system. Ashok Leyland was up 2.5 percent as the commercial vehicle maker sold 7,732 units in November, up 44 percent year-on-year led by strong growth in medium and heavy commercial vehicles sales. TVS Motor Company jumped 3 percent on reporting a 36 percent sales growth in November. Mahindra & Mahindra declined 2 percent as it recorded a 13 percent degrowth in November sales. Hero Motocorp climbed 3.7 percent and Tata Motors gained 0.6 percent ahead of monthly sales data in evening today. TCS, Hindustan Unilever, Axis Bank and Wipro were other gainers on the Sensex, up 1-3 percent. Drug makers Sun Pharma and Ranbaxy Labs gained 2-4 percent intraday after Foreign Investment Promotion Board cleared Sun Pharma-Ranbaxy merger deal. But the comments from Competition Commission of India on the deal report dragged Sun Pharma half a percent. Ranbaxy trimmed gains to 0.7 percent. Sources told CNBC-TV18 that CCI sent back merger deal to companies to make changes and asked both companies to divest some brands to avoid monopoly. Crude impact continued on stocks. HPCL gained 1.2 percent while Cairn India lost 1.3 percent. Aviation stocks like SpiceJet and Jet Airways also continued to fly high on the back of declining crude prices, up 16.5 percent and 8 percent respectively. Berger Paints surged 12 percent. In the broader space, shares of Shree Ganesh Jewellery and Gitanjali Gems were up 20 percent after the Reserve Bank of India announced the government had scrapped the 80:20 scheme, which mandated that 20 percent of raw gold imported into the country had to be exported as finished product. Tribhovandas Bhimji Zaveri, Tara Jewels, Titan Company and PC Jeweller gained 3-5 percent. Mangalore Chemicals gained 9 percent on news that Vijay Mallya has resigned as a director from the company. This development brought more clarity and is likely to strengthen the case for Deepak Fertiliser in the ongoing race for Mangalore Chemicals. Declining shares outnumberd advancing ones by a ratio of 1693 to 1213 on the Bombay Stock Exchange. 

Indian rupee opens flat at 61.99 per dollar



The Indian rupee opened flat at 61.99 per dollar on Tuesday as against previous day's closing value of 62.02 a barrel. US dollar nursed modest losses, having come under pressure as currencies such as the Canadian dollar staged a dramatic reversal thanks to a broad rebound in commodity prices. Ashutosh Raina of HDFC Bank said, "All eyes today are on the RBI Credit Policy and the jury is completely divided on the prospects of a rate cut. Lower oil prices, and recent lower CPI and WPI inflation numbers make a case for the rate cut, but the impending impact of a higher base effect moving ahead may force RBI to adopt a wait and watch policy." "The USD-INR pair is hovering around the 62/dollar mark, with markets keenly awaiting RBI Policy action," he added.