RIL and NIIT Technologies results will be eyed today. Oil marketing PSUs will be in focus after IOC hiked diesel prices on Thursday evening. Asian markets are upbeat. US indices gained with Citigroup Inc.’s results beating expectations and sending banking shares into a tizzy.
Reliance Industries (RIL) will announce its Q2FY16 numbers today. Crude oil prices have declined on a sequential basis from US$62.1/bbl in Q1 FY16 to US$50.2/bbl in Q2 FY16 (average for Brent) while rupee depreciated against the US$ by 7.2% yoy and 2.4% qoq. Gross under recoveries are expected to be lower substantially on a yoy basis and IIFL expects this to be compensated by government and upstream companies. Product spreads have weakened on a sequential basis as fall in petroleum product prices was steeper than increase in crude oil prices on back of weakening demand. Resultantly, benchmark GRMs declined on a qoq basis.
IIFL expects Reliance Industries to report a GRM of US$8.8/bbl as compared to US$10.4/bbl reported in Q1 FY16. Petrochemical prices too have seen a correction in line with the crude oil prices but IIFL expects the spreads to remain flattish. Crude oil production from MA-1 field and gas production from KG-D6 field are likely to see flat trends during the quarter on a qoq basis, an IIFL preview note adds.
LIC Housing Finance’s Q2 FY16 performance was stronger-than-expected with robust NII growth of 34% yoy and net profit increasing by 19% yoy. A combination of brisk loan growth, margin expansion and stable credit cost should drive significant earnings growth for the company over the next couple of years. RoA is estimated to improve materially from the current cyclical low of 1.3%. Valuation at 2.2x FY17E P/BV remains attractive in the above context.”
Governor Raghuram Rajan stated "We need to make sure interest rate by NBFCs are high enough to recover costs. "We also discussed regulations & Ponzi schemes at the RBI Board meet", Rajan said adding, "We also discussed Indian & World Economic Conditions at Board meet. We hope banks will recognise all bad loans,” Going forward, we will take a close look at asset quality of banks, Rajan was quoted as saying.
Gold has wiped out its 2015 losses as the precious metal rose to its highest in over three months on Thursday. Signs of stagnating U.S. inflation and retail sales added to the case to keep rates low, which revives the appeal of gold as a store of value, says a report.
"We are on track... acceleration switch has been pressed... We are pushing ourselves to move towards high-growth trajectory," Department of Industrial Policy and Promotion (DIPP) secretary Amitabh Kant told ET. Kant pointed to a number of policy decisions that have already been taken in this regard. These include further freeing up the foreign direct investment ( FDI) regime, bringing consistency and predictability to tax policy and pushing hard on infrastructure projects.
IVRCL Chengapalli Tollways Ltd. (ICTL), a Special Purpose Vehicle (SPV) formed by IVRCL Ltd. for implementing the project, has begun collection of toll. This project comes under the National Highway Development Programme (NHDP) Phase-III B and envisages 4/6 laning of the road in Chengapalli–Coimbatore–Walayar on the Tamil Nadu and Kerala border under several sections of national highway (NH)-47 in Tamil Nadu.
Tata Chemicals Ltd. on Thursday announced its entry into the spices business, as part of its strategy to treble revenues from the consumer products business to INR 5,000 crore in the next four years. The company is launching spices under a newly created umbrella brand Tata Sampann.
Raymond is planning to set up a 2 million units per annum capacity plant in Ethiopia, at a total investment of US$100 million, to manufacture and export woolen-blended and cotton-blended jackets. Currently, Raymond makes close to 2 million jackets at its Bengaluru facility - primarily woolen-blended and cotton-blended jackets - and exports some of them to the USA, Europe and Japan.
Indian Railways will purchase 50 MW power from Adani Power under its new policy of competitive bidding-based procurement, according to reports. The new policy, along with captive generating capacity and investments in transmission lines, is expected to translate into cost savings of ~25% for the Indian Railways in a few years.
HDFC Mutual Fund on Thursday acquired an additional 7.69 per cent stake in toll management company MEP Infrastructure Developers Ltd. through open market transactions. HDFC MF picked up 90 lakh equity shares of MEP Infrastructure at BSE and another 35 lakh shares at the National Stock Exchange (NSE) through block deals, the fund house said in a statement. Currently, HDFC MF holds 4.25 per cent stake in MEP Infra.
The National Consumer Disputes Redressal Commission (NCDRC) on Thursdayordered testing of 13 samples of Nestle India’s Maggi noodles at the Central Food Technological Research Institute in Mysuru to check for the presence of lead and monosodium glutamate.
The commission’s order came after Nestle agreed for testing of its Maggi noodles in a Government-accredited laboratory. The 13 Maggi samples are from seven separate batches.
The rupee is likely to remain steady for the rest of the fiscal helped by strong macroeconomic fundamentals, which will lead to higher capital inflows and a comfortable balance of payment situation, says a report. "The key reasons for the expecting stability in the rupee are better macroeconomic fundamentals of the economy among the emerging economies, a comfortable balance of payment situation, the postponement of policy normalisation by the US Fed to December 2015 or maybe to 2016 and a healthy capital inflow," India Ratings and Research said in a report.
Tata Motors' global wholesale count surges 40% at 63,334 units (YOY) for Sep'15. JLR global wholesales sold 51,074 units. Tata Motors group global wholesales were up by 21% at 97,102 units for Sep'15.
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