Sensex, Nifty recover losses

The market has smartly recovered all-the-losses in the early noon deal, owing recovery in metal shares and appreciation in IT, Pharma and Bank Nifty.

As of 1330 hrs, the BSE Sensex is quoted at 27,387 - down eight points, and the NSE Nifty is unchanged at 8,245.


In the broader markets, the CNX Small-cap and Nifty Junior indices have gained over 0.5 per cent each at 5,200 and 18,475, respectively. The Mid-cap index has added 0.3 per cent at 12,444.

Among sectors, the CNX IT, Pharma and Bank Nifty indices have advanced 0.4 per cent each at 11,146, 10,862 and 18,593, respectively. On the other hand, the Metal and Energy indices have shed nearly a per cent each at 2,652 and 8,579, respectively.

The market breadth is slightly positive in early noon deals. Out of 1,734 stocks traded on the NSE so far 743 stocks have advanced, while 725 stocks have declined.

In the IT space, Hexaware is the top gainer - up over 2.5 per cent at Rs. 201. MphasiS has jumped almost 2 per cent at Rs. 372. KPIT has also rallied 1.4 per cent at Rs. 203.

Tech Mahindra has spurted a per cent at Rs. 2,617. eClerx, MindTree, NIIT Technologies and Info Edge have advanced over 0.5 per cent each.

Tata Elxsi. Infosys, Just Dial and HCL Technologies are the other notable gainers.

On the other hand, Oracle Financial has shed over a per cent at Rs. 3,360. CMC and Vakrangee are also down 0.2 per cent each at Rs. 1,922 and Rs. 123, respectively.

Govt signs loan agreement with ADB to improve water resource management

Government of India signed an agreement with Asian Development Bank (ADB) for a $75 million loan and a $1.8 million grant that will help improve water resource management in three (3) towns of Karnataka in the Upper Tungabhadra sub-basin. This loan from the ADB’s Ordinary Capital Resources has a 25-year term including a grace period of five years.

This first tranche of the loan under the Karnataka Integrated Urban Water Management Investment Program will help expand and upgrade urban water supply and sanitation infrastructure; improve water resource planning, monitoring and service delivery; and strengthen operational and administrative capacity in the three towns of Byadagi, Davanagere and Harihar.

Tarun Bajaj, Joint Secretary, Department of Economic Affairs at the Ministry of Finance, signed the agreement on behalf of Government of India, and Rajeev Singh, Officer-in-Charge of ADB’s India Resident Mission, signed the agreement on behalf of ADB. The project agreement was signed by Shri D. Chandrashekariah, Joint Director, Planning, Urban Development Department, Government of Karnataka on behalf of Government of Karnataka and Shri Darpan Jain, Managing Director, Karnataka Urban Infrastructure Development & Finance Corporation Limited (KUIDFC) on behalf of KUIDFC.

Speaking on the occasion, Bajaj said that he is happy to note that this project will help increase water treatment capacity by 15,000 cubic meters per day; help expand and upgrade more than 1,000 kilometers of water pipelines, and increase sewage treatment capacity by 48,000 cubic meters per day, thereby promoting water efficiency and environmental protection.

Shri Rajeev Singh, Officer-in-Charge of ADB’s India Resident Mission said that the project will pioneer the establishment of Urban Local Bodies Incentive Fund to assist towns in implementing reforms and mainstreaming the use of performance-based contracts in ensuring continuous water services. He said that the project will also test the application of output based approaches to support program for poor and vulnerable households.

The investment program aims to improve water resource management in urban areas in a holistic and sustainable manner. Investment support will be provided to modernize and expand urban water supply and sanitation (UWSS) while strengthening relevant institutions to enhance efficiency, productivity and sustainability in water use. Innovative instruments, such as public-private partnership (PPP) or reform oriented incentive funds will also be pursued. The Program will seek to assist more fragile environments increasingly affected by water resource degradation, often located in North Karnataka. The Program will also promote climate-resilient development, capacity-development for conducive adaptation.

Aban Offshore extends rally

Following yesterday’s 17.2 per cent surge, Aban Offshore today is trading on a strong note after Credit Analysis and Research (Care) rating upgrade.

According to the reports, the rating agency has revised credit rating on bank facilities of Aban by 3 notches to BB-from D.

Aban Offshore so far has jumped to a high of Rs. 523, and is now up almost 5 per cent at Rs. 515.

The counter has witnessed heavy volume of 1.2 million shares so far on the BSE, as against the daily average volume of 521,000 shares in the past two weeks.

Meanwhile, the BSE Sensex is down 68 points at 27,238.

PFC extends Rs.1000 crore loan to AP power distributors

Power Finance Corporation, under the administrative control of Ministry of Power, has sanctioned transitional loan of Rs. 600 crs to Southern Power Distribution Co. of Andhra Pradesh Ltd. (APSPDCL) and Rs. 400 crs. to Eastern Power Distribution Co. of Andhra Pradesh Ltd. (APEPDCL).

In a regulatory filing, the company said, "The Board of Directors of Power Finance Corporation Ltd. in its meeting held on 16/12/2014 had inter alia approved proposal to sanction transitional loan of Rs. 600 crs to Southern Power Distribution Co. of Andhra Pradesh Ltd. (APSPDCL) and Rs. 400 crs. to Eastern Power Distribution Co. of Andhra Pradesh Ltd. (APEPDCL). Also 'PFC green energy limited' - a wholly owned subsidiary of Power Finance Corporation Ltd. has sanctioned loans of Rs 62 crores to Southern Power Distribution Co. of Andhra Pradesh Ltd and Rs 25 crores to Eastern Power Distribution Co. of Andhra Pradesh Ltd for solar power pump sets."

The statement added, "Further a proposal to sanction a loan of Rs. 24.4 crores(appox) to Southern Power Distribution Co. of Andhra Pradesh Ltd for solar power pump sets is under consideration of competent authority in Power Finance Corporation Ltd."

Metal shares drift lower

Most of the Metal shares are trading on a negative note as they wait anxiously for the Cabinet to pass an ordinance for the mining sector. Media reports indicate that the mining ordinance may take place towards the end of the week.

The CNX Metal index had rallied over 2 per cent on hopes of ordinance on land mining to be passed yesterday.
However, the CNX Metal index has reversed direction and declined almost a per cent at 2,647 on the NSE.

JSW Steel has slipped almost 2 per cent at Rs. 1,049. Sesa Sterlite and Jindal Steel have dropped over 1.5 per cent each at Rs. 211 and Rs. 90.25, respectively.

National Aluminium has shed 1.4 percent at Rs. 53.75. Tata Steel has declined over a per cent at Rs. 399. Coal India has moved down almost a per cent at Rs. 383.

Hindalco and Jindal Steel are also down over 0.5 per cent each at Rs. 156 and Rs. 153, respectively.

Meanwhile, the NSE Nifty is down ten points at 8,235.

Godrej Properties stock up 4%

Godrej Properties surged by nearly 4 per cent to a high of Rs. 260 after the company entered into an agreement with Godrej & Boyce.

Godrej & Boyce (G&B) to develop a new mixed-use project on the property at Pirojshanagar, Vikhroli West, Mumbai. The potential saleable area in this project will be approximately 110,000 square meters (1.2 million sq. ft.).


At 11.17 AM, the stock was up 3.97% at Rs. 260. The stock has hit a high of Rs. 269 and a low of Rs. 256.05.

Nifty below 8,250 levels

At 10:34AM, the S&P BSE Sensex is trading at 27,383 down 11 points, while NSE Nifty is trading at 8,243 down 2 points.

The BSE Mid-cap Index and BSE Small-cap Index was trading flat.

Auto, Consumer Durables, Power, banking, capital goods, Healthcare, Metal, realty, FMCG indices are the gainers, while Metal, Oil and gas indices are losers.

L&T, M&M, Maruti, Cipla, are among the gainers, whereas ONGC, Reliance, Hindalco, HDFC Bank are losing sheen on BSE.

Finance Minister Arun Jaitley is back indirectly asking the RBI to cut rates. High interest rates is the culprit for a slump in manufacturing, the FN said adding that credit off take is slow, infrastructure creation becomes slower, and the manufacturers find it difficult to afford costly capital.

The Reserve Bank’s latest projections suggest that Consumer Price Index (CPI) inflation over the next 12 months may hover around 6% if the international crude prices remain around the current levels and the monsoon next year turns out to be normal.

Industrial Finance Corporation of India (IFCI) will now be back in the government fold with the Union cabinet approving Rs 60-crore equity infusion in the entity to raise its shareholding to 51% from 47.93%.

Bharti Airtel was forced to withdraw its controversial VoIP tariff plan.

Jindal Stainless will be demerging its ferro-alloy, coke oven and stainless steel businesses into three different entities via the slump sale route.

IDBI Bank plans to sell its stake in the rating major Credit Analysis & Research.

IVRCL Ltd is reportedly on course to completing stake sale in three road projects and a desalination plant, all located in Tamil Nadu, by the end of this fiscal.

Top economy news of the day - December 30, 2014

Government approves ordinance to ease land acquisition; Amendment to do away with requirement of social impact assessment, consent of 70% landowners for PPP projects in infrastructure.

The government is likely to allow power companies to swap coal supplies with the nearest source to save costs and decongest the rail network.

The government is examining a proposal to tweak the newly approved gas price formula to bring in a cap with the aim of protecting consumers from volatility in the international market.

The cabinet cleared an ordinance ushering in major changes in arbitration and conciliation law, which would make settlement of contractual disputes between foreign companies and their Indian partners easier.

RBI report says inflation to stay around 6% in next 12 months.

Top corporate news of the day – December 30, 2014

Bharti Airtel withdrew its controversial VoIP tariff plan that would have made voice calls on services such as Skype and Viber more expensive in the face of a public outcry and a possible nudge from the regulator.

Reliance Industries, which acquired the Network 18 media group in July, has started integrating the backend operations of television shopping firm HomeShop18 with the technology team of Reliance's consumer division.

Jindal Stainless got board approval to restructure its businesses that includes demerging a subsidiary and listing it on domestic bourses, a move aimed at boosting profitability and paring debt.

Larsen & Toubro (L&T) on Monday said it has bagged an offshore contract worth Rs8.9bn from ONGC for additional development of the Vasai East project.

Government to infuse Rs 600mn in IFCI, raise stake to 51%

IVRCL has decided to sell all assets it has under the build, operate and transfer (BOT) basis by the end of next year and stay away from bidding for similar projects.

Blue Star, Eureka Forbes collaborate to launch water coolers with in-built purification.

Lanco Infratech approved allotment of 5.457 crore shares of Rs1 each at an issue price of Rs6.23 per share to ICICI Bank Ltd, as per the corporate debt restructuring package approved for the company.

Andhra Bank has recovered about Rs2bn non-performing assets (NPAs) in the last three months.

Lanco Infratech stock up 5%

Lanco Infratech Ltd has informed BSE that the Board of Directors of the Company passed Circular Resolution on December 29, 2014 approving the allotment of 5,45,74,639 (Five Crores Forty Five Lakhs Seventy Four Thousand Six Hundred and Thirty Nine) Equity Shares of Re. 1/- (Rupee One only) each at an issue price of Rs. 6.23/- (Rupees Six and Paise Twenty Three Only) per share to ICICI Bank Limited, CDR Lender, as per CDR Package approved for the Company.

The said allotment is made on preferential basis under Chapter VII of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009.

The Paid-up Share Capital of the Company after the above allotment stands at Rs. 246,23,79,559/-(Rupees Two Hundred and Forty Six Crores Twenty Three Lakhs Seventy Nine Thousand Five Hundred and Fifty Nine only) comprising of 246,23,79,559 Equity Shares of Re. 1/- each. The Equity Shares allotted to ICICI Bank Limited shall be locked-in for a period of one year in terms of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009.

At 9.22 AM, the stock was up 5.13% at Rs. 6.15. The stock has hit a high of Rs. 6.25 and a low of Rs. 5.98.

Sensex to open flat

The Prime Minister has cleared a plan of action to boost manufacturing in 25 sectors to give the government's Make in India campaign a further push. Responsibilities have been fixed, road map has been prepared, required changes in policies have been decided, paperwork has been done away with and now, things will be implemented automatically, Prime Minister Narendra Modi said. An ordinance to free up the process in areas such as defence, affordable housing, rural infrastructure and industrial corridors was unveiled akin to earlier moves on coal and insurance. Next would be an alteration in legislation on mining; metal stocks are already rejoicing on this expectation.

On the other hand, Finance Minister Arun Jaitley is back indirectly asking the RBI to cut rates. High interest rates is the culprit for a slump in manufacturing, the FM said adding that credit off take is slow, infrastructure creation becomes slower, and the manufacturers find it difficult to afford costly capital.

The outlook is a flat start. The Nifty will restrict itself to a narrow range. Global cues are not really encouraging. Russia's economy shrank in November, the rouble is sliding. Crude is cooling and Greek Prime Minister Antonis Samaras has failed to get the much needed support for his presidential nominee, which means an election is round the corner.

The Dow Jones lost 0.09% while S&P 500 and Nasdaq closed flat. Among the Asian markets, Japan's Nikkei and Hong Kong's Hang Seng indices are trading lower while China's Shanghai index was trading higher. Crude oil prices fell to their lowest levels since May 2009. Brent crude closed $1.57 lower at $57.88.

The Reserve Bank’s latest projections suggest that Consumer Price Index (CPI) inflation over the next 12 months may hover around 6% if the international crude prices remain around the current levels and the monsoon next year turns out to be normal.

Industrial Finance Corporation of India (IFCI) will now be back in the government fold with the Union cabinet approving Rs 60-crore equity infusion in the entity to raise its shareholding to 51% from 47.93%.

Bharti Airtel was forced to withdraw its controversial VoIP tariff plan.

Jindal Stainless will be demerging its ferro-alloy, coke oven and stainless steel businesses into three different entities via the slump sale route.

IDBI Bank plans to sell its stake in the rating major Credit Analysis & Research.

IVRCL Ltd is reportedly on course to completing stake sale in three road projects and a desalination plant, all located in Tamil Nadu, by the end of this fiscal.

Shares of RPP Infra Projects was up 1% at Rs125 after company bagged new order worth Rs. 483.79 million from Tamilnadu Water Supply & Drainage Board for Providing Water Supply Improvement Scheme to Tindivanam Municipality in Villupuram District, Tamilnadu.

Shares of Cairn India was up 1% at Rs244 after report said that the company along with its joint venture partner,ONGC has put forward a $700-million plan to develop and produce gas reserves at the Raageshwari fields in the prolific Barmer block in Rajasthan.

SpiceJet clarified media reports regarding a decision to allegedly “Sack 50 Captains”. SpiceJet places on record that the 43 (not 50) pilots in question are those that have previously resigned from the company, and have already served at least three months of notice period.

L&T Hydrocarbon Engineering, a fully owned subsidiary of Larsen & Toubro, has bagged an offshore contract valued at Rs. 894 crores from the Oil & Natural Gas Corporation (ONGC) for additional development of the Vasai East project. The stock was up 1% at Rs. 1,503.40.

Glenmark Pharmaceuticals is planning to out-license its molecule for pain management, according to reports.The stock was up 1% at Rs788.

Shares of Tata Steel was up 3% at Rs408 after company announced the recent developments in mining operations.