Govt approves Rs 996 crore investment for power transmission

In order to serve the growing needs of Research & Development in the Indian Power Sector including, development of advanced Testing Facilities, Government has accorded investment approval of Rs.996 crore for capital projects of Central Power Research Institute (CPRI).

This will support augmentation of High Power Short Circuit Facilities as well as establishment of new test facilities in existing laboratories of CPRI, located at Bengaluru, Hyderabad, Kolkota, Guwahati, Noida and Nagpur. In addition, a new laboratory will also be established in Western Region at Nasik.

CPRI, with its headquarters at Bengaluru, is an autonomous society under the aegis of the Ministry of Power, Govt. of India. It was set up to serve as a National level laboratory for undertaking applied research in electrical power engineering, besides functioning as an independent test and certification authority for electrical equipments and components for ensuring reliability in the power system.

The main facilities proposed to be set up/augmented under the approved projects, include the following:

Short Circuit Test Facilities

Transmission Tower Test Facility

Facilities for Switchgear Testing & Development v iv. Facilities for testing of transformer oil

Relocation and augmentation of thermal research centre at Nagpur.

Establishment of new unit at Nasikv vii.

Establishment of Phasor Measurement Unit System and Smart Grid Research Laboratory.

On commissioning of the above mentioned facilities, CPRI shall be able to test Transformers and other Switchgears of higher rating equipments used for 400 KV and above. The Smart Grid Research Laboratory will provide necessary support for developing Smart Grid Devices needed for Indian Smart Grid Mission and Smart City projects. The Phasor Measurement Unit System will support the efforts towards Grid Security.

Crude Oil Under Stress On Global Economic Outlook, MCX Natural Gas Up 3%

                              MCX crude oil futures stayed under pressure today as a weak global economic outlookkept the commodity under pressure in world markets. Supply worries have been pressingcrude lower off late. The United Arab Emirates’s oil minister noted yesterday thatOPEC would stand pat on oil production despite the falling prices. The commodity isholding near a six year low around $45 per barrel for the WTI futures. WTI Crude isquoting at $45.08 per barrel, down 81 cents per barrel on the day. MCX Crude oil futuresare trading at Rs 2807 per barrel, down Rs 19 per barrel on the day.

                              Following another disappointing year in 2014, developing countries should see an uptickin growth this year, boosted in part by soft oil prices, a stronger US economy, continuedlow global interest rates, and receding domestic headwinds in several large emergingmarkets, says the World Bank Group’s Global Economic Prospects (GEP) report, releasedyesterday. After growing by an estimated 2.6% in 2014, the global economy is projected toexpand by 3% this year, predicts the Bank’s twice-yearly flagship report.

                              Oil was hit by panic after media reports stated that billionaire businessman and princeof the Saudi royal family Alwaleed bin Talal said that it is unlikely to see $100-a-barreloil again. He admitted that Saudi Arabia and all of the countries were caught off guardwith the rapid drop in the oil prices. No one anticipated it was going to happen, notedthe Prince. Oil is down around $60 per barrel in last six months.

                              The US Energy Information Administration (EIA) said Tuesday that the pace of US oilproduction should be able to hold the current momentum. US crude output averaged 9.2million barrels a day in December, it said in a monthly report. US oil production willaverage 9.3 million barrels a day in 2015 and 9.5 million barrels a day in 2016, the EIAindicated.

                                 In a latest update, the World Bank stated that it expects the average price of oil in2015 to be roughly 30% less than it was in 2014. This should boost global output by 0.5%in the medium term, says the bank. Oil-importing emerging markets, including India,Indonesia, South Africa stand ready to gain the most, as growth accelerates and theircurrent account deficits narrow.

                                 However, some bargain buying emerged in Natural gas as the US winter season neared itspeak. The commodity is quoting at 2.973 per mmbtu, up 1.40% on the day, witnessing goodbuying support around its two year low. MCX Natural gas futures are trading at Rs 186.20per mmbtu, up Rs 5.50 per mmbtu or 3% on the day.

HUL surges 3% in a weak market

After yesterday's profit-taking, Hindustan Unilever (HUL) has bounced back to its winning ways ahead of the quarterly earnings early next week. 

The company is scheduled to report its December quarter results on January 19, 2015. 

The stock today registered a fresh all-time high at Rs. 914, and is currently trading at the days - up 3.2 per cent. 

The counter has seen trades of around 174,000 shares as against the two-week daily average volume of around 203,000 shares on the BSE. 

The stock so far has gained 19 per cent this month on the back of ratings upgrade by foreign investment firms.

Bajaj Finance zooms after strong Q3 result

Bajaj Finance has smartly moved higher in the noon deal session after company reported strong financial results for the quarter ended December 2014. 

According to a release issued by the Bajaj Finance to the BSE, the company's net profit has jumped over 33 per cent from Rs. 194 crore in Q3FY14 to Rs. 258 crore in Q3FY15. 

Total income has also increased by 37.3 per cent from Rs. 1,485 crore to Rs. 1,081 crore.

The stock has zoomed 11.7 per cent to touch a high at Rs. 3,890 following the announcement of Q3 results.

The stock is now up 7.6 per cent at Rs 3,744. The BSE counter has registered trades of around 38,000 shares, against its two-week daily average volume of 4,028 shares.

NIIT Technologies Q3 PAT Rs. 44.3 cr

Total Income has increased from Rs. 3264.50 million for the quarter ended December 31, 2013 to Rs. 3374.20 million for the quarter ended December 31, 2014.

NIIT Technologies Ltd has announced a net profit of Rs. 443.30 million for the quarter ended December 31, 2014 as compared to Rs. 396.20 million for the quarter ended December 31, 2013.

Total Income has increased from Rs. 3264.50 million for the quarter ended December 31, 2013 to Rs. 3374.20 million for the quarter ended December 31, 2014.

Sensex, Nifty off days low

The Metal, FMCG, Bank Nifty, Pharma and Energy indices are the top losers 

The market has recovered some of the losses in the early-noon deals, but still trades with a prominent loss.

As of 1347 hrs, the BSE Sensex is down 145 points at 27,426 and the NSE Nifty has declined 40 points at 8,259.

The India VIX (Volatility) index has soared over 6.5 per cent at 17.5650.

The Midcap index has shed over 0.4 per cent at 3,339.

The Smallcap index has declined 0.4 per cent at 5,298 and the Nifty Junior index is also down 0.3 per cent at 18,634.

In sectors, the Metal index is still trading lower by 2.8 per cent at 2,475. The FMCG, Bank Nifty, Pharma and Energy indices are the other prominent losers.

In the FMCG space, Rosya Protein has slumped over 4.5 per cent at Rs. 1.05.

ITC has also cracked over 3 per cent at Rs. 348. GSK Consumer has slipped over a per cent at Rs. 5,644.

Tata Global has also shed 0.5 per cent at Rs. 154.

On the other hand, Marico has zoomed over 8 per cent to Rs. 361.

Hindustan Unilever has surged over 2.5 per cent at Rs. 907.

Dabur India and Britannia have also jumped nearly 2 per cent each at Rs. 2450 and Rs. 1,968, respectively.

Kajaria Ceramics Q3 PAT Rs. 45.6 cr

Total Income has increased from Rs. 4277.00 million for the quarter ended December 31, 2013 to Rs. 5564.50 million for the quarter ended December 31, 2014.

Kajaria Ceramics Ltd has announced a net profit of Rs. 452.90 million for the quarter ended December 31, 2014 as compared to Rs. 285.60 million for the quarter ended December 31, 2013. Total Income has increased from Rs. 4377.40 million for the quarter ended December 31, 2013 to Rs. 5695.40 million for the quarter ended December 31, 2014.

The Consolidated Results are as follows:

The Unaudited Consolidated results for the Quarter ended December 31, 2014.

The Group has posted a profit after taxes, minority interest and share of profit / (loss) of associates of Rs. 456.10 million for the quarter ended December 31, 2014 as compared to Rs. 293.90 million for the quarter ended December 31, 2013. Total Income has increased from Rs. 4277.00 million for the quarter ended December 31, 2013 to Rs. 5564.50 million for the quarter ended December 31, 2014.

Bajaj Finance Q3 PAT Rs. 258 cr

Total Income has increased from Rs. 10815.00 million for the quarter ended December 31, 2013 to Rs. 14853.90 million for the quarter ended December 31, 2014.

Bajaj Finance Ltd has announced a net profit of Rs. 2583.80 million for the quarter ended December 31, 2014 as compared to Rs. 1941.40 million for the quarter ended December 31, 2013.

Total Income has increased from Rs. 10815.00 million for the quarter ended December 31, 2013 to Rs. 14853.90 million for the quarter ended December 31, 2014.

Declining growth and disruption pushes retailers to embrace innovation.

To address declining growth and disruptive changes impacting the sector, retailers globally are exploring innovative trends like travel, mobile and faster retailing.

                      The top 250 global retailers generated revenue of US$4.4 trillion in fiscal year 2013, each with an average size of more than US$17.4 billion, according to the 2015 Global Powers of Retailing, Embracing Innovation report from Deloitte Touche Tohmatsu Limited (DTTL), in conjunction with STORES Media. Revenue growth for the top 250 retailers, which began declining in 2011, continued to slow in fiscal year 2013. To address declining growth and disruptive changes impacting the sector, retailers globally are exploring innovative trends like travel, mobile and faster retailing. 
 
                       “The sluggish global economy in 2014 left many consumers financially constrained and retail sales under pressure. Thus, the prosperity of the global retail sector in 2015 will very much depend on the economic stability of several of the largest economies.  China, the Eurozone as well as a few key emerging economies had a particularly tough 2014. Comparatively, the US and British economies continue to do well, with indicators pointing to the likelihood of strong growth in 2015 and possibly beyond,” said Dr. Ira Kalish, DTTL Chief Global Economist.
 

                       “The retail sector is going through a significant period of change.  The speed of innovation and the disruption being felt across the industry will continue, as the demands of customers continue to increase. To succeed in this environment, retailers will need to respond quickly to threats and opportunities ensuring they are quick to implement innovations of their own. This will require a connecting strategy, capabilities, and specific initiatives, guided by the insights provided by market data”, said Gaurav Gupta, Senior Director, Deloitte in India

Ronnie Screwvala allocates Rs. 100 cr to build Online Company in Higher Education

                             First generation entrepreneur Ronnie Screwvala having being credited with being one of the pioneers of the media sector, being responsible in being a catalyst in merging creativity and commerce and having exited the industry a year ago, now makes a landmark move into the Education sector with the launch of U Education – a new age online company focussed on higher education. Ronnie has earmarked an outlay of Rs 100 crores in this first phase which go mainly into content, interactivity, platform, technology, assessments, adaptive learning, marketing and building a national footprint.
 
                              “India has the largest college going age cohort in the world, yet only one out five of them enroll into higher education, resulting in one of the lowest higher education enrolment ratios, even among most developing nations. If we have to meet our GDP growth targets, we need to at least double the participation rate immediately, otherwise we will miss out on our demographic dividend”, says Screwvala on why he is excited about his first ground up venture (outside of Sports and Kabaddi) 
 
                              The Indian education sector is a little over US$70bn, of which Higher Education – comprising undergrad / post grad and doctorate only account for US$11bn. The rest is broken up broadly with the bulk - US$40bn coming from pre school and K-12 and US$4bn from vocational education and another US$15bn being all the ancillary and support services (tutoring, uniforms, books and others). The sector needs over US$200bn in investment between 2015 - 2020 to bridge some of the gap and get to a strong level of quality.
 
                              Mayank Kumar comes on board as Co-Founder and Managing Director of U Education with a decade of experience in the education sector across India, China, Latin America, S E Asia, Middle East and Africa. “Our goal will be to foster the next level of degree education / learning and train the next generation Indian workforce to take on the industries of the future”, says Mayank of his plans at the launch phase.
 
                              U Education aims to capitalize on the fast increasing demand for digital learning and online education, leveraging technology and working to exceed the experiences and rigour even of on campus programs, whilst focusing on employability. 
 
                              The perception of distance education programs in India had taken a beating in the past, driving a lot of Indian working professionals to take up MOOCs offering from the US, which may not be best suited for the Indian ecosystem. India in fact can leverage technology and bring in best of class experiences for our working professionals. In markets such as India, technology based education can help leapfrog the capex-heavy traditional on-campus higher education and thereby increasing access. 
 
                               “This sector is ready for disruption and innovation, the aspiration and ambition of young India has grown manifold, there is a willingness to pay for quality education and the digital and next gen models are gaining acceptance amongst students, institutions and employers”, Screwvala continues, “and our plan is to have a diverse set of offerings from the predictable ones in management, law, marketing, finance, technology, engineering to more in entrepreneurship, new economy expertise, and to cater to the growing sectors of sports, media, fashion, travel, hospitality and tourism”.
 
                             The needs of the industries are changing rapidly, and working professionals are looking to continuously upgrade their skills to meet the changing requirements of the industry. U Education will provide a flexible and personalized education to working professionals, and will cater to the specific requirements of new-age industries. The company aims to provide access to top-quality education to working adults, who otherwise have access to limited quality options. 
 
                             When asked if any PE investment is envisaged – Screwvala commented, “No, we are fully committed to building the business without any distractions of external fund raising for the 3-5 years framework. Our focus is on scale, credibility, brand, original content, strong faculty, technology that lends to the best peer to peer interactions, all to create evolved graduates fit to take on the real world”.

Japan Produces 264958 Tons of Crude Stainless Steel In November 2014..

According to data, the 6 major stainless steel producers in Japan produced 264958 tons of crudes stainless steel in November 2014, dropping by 7.7% from a month ago.

In November, Nippon Steel & Sumitomo Metal Corporation (NSSMC) Yawata Works produced 76,335 tons of crude stainless steel, soaring by 11% month on month. Besides, JFE Steel produced 66,205 tons, up by 3% compared to a month ago.

It is expected that the output of crude stainless steel in December will increase slightly from November.

World Bank Scales Down Global Growth Projection From 3.45 To 3% For 2015

The World Bank has downgraded its global economic growth projections from its previousestimates.

In its latest Global Economic Prospects (GEP) report, the bank stated thatafter growing by an estimated 2.6% in 2014, the global economy is projected to expand by3% this year, 3.3% in 2016 and 3.2% in 2017, predicts the Bank's twice-yearly flagshipupdate.

The growth projections are scaled down from June 2014 growth projections of 3.4%and 3.5% for 2015 and 2016, respectively. Developing countries grew by 4.4% in 2014 andare expected to edge up to 4.8% in 2015, strengthening to 5.3% and 5.4% in 2016 and 2017,respectively.

The bank noted that developing countries should see an uptick in growth thisyear, boosted in part by soft oil prices, a stronger US economy, continued low globalinterest rates, and receding domestic headwinds in several large emerging markets. 

Metal stocks crumble on global commodity sell-off

Copper tanks 6% on LME; Hindalco, Sesa Sterlite lead metal fall on the NSE.

 Metal stocks have logged heavy losses in early noon deals owing to a sharp sell-off in the world commodity prices on concerns of global demand.

The NYMEX Copper futures for March delivery have slumped 4.5 per cent to $ 2.486.

Spot Copper prices on the LME have tanked by almost 6 per cent to $ 2.5358.

Nickel, Lead, Aluminium and Zinc have shed around 1-3 per cent each.

Mirroring the negative sentiments, the CNX Metal index is the major laggard on the NSE, down 2.7 per cent at 2,478.

Hindalco is the major loser, down over 6 per cent at Rs. 142.50.

Sesa Sterlite has shed 4.5 per cent to Rs. 195.

Jindal Saw, Tata Steel, JSW Steel and SAIL have dropped around 3 per cent each to Rs. 83.75, Rs. 381, Rs. 967 and Rs. 76.15, respectively.

NMDC, National Aluminium and Orissa Mines have declined over a per cent each.

LIC Housing Finance stock down 3%

The stock has hit a high of Rs. 467 and a low of Rs. 450.

Shares of LIC Housing Finance down 2.60% to a high of Rs. 451 on reports that the company has posted a net profit of Rs. 3443.471 million for the quarter ended December 31, 2014 as compared to Rs. 3265.861 million for the quarter ended December 31, 2013.

Total Income has increased from Rs. 23763.698 million for the quarter ended December 31, 2013 to Rs. 27357.843 million for the quarter ended December 31, 2014.

LIC Housing Finance Q3 PAT Rs. 344 cr

Total Income has increased from Rs. 23763.698 million for the quarter ended December 31, 2013 to Rs. 27357.843 million for the quarter ended December 31, 2014.

LIC Housing Finance Ltd has posted a net profit of Rs. 3443.471 million for the quarter ended December 31, 2014 as compared to Rs. 3265.861 million for the quarter ended December 31, 2013.

Total Income has increased from Rs. 23763.698 million for the quarter ended December 31, 2013 to Rs. 27357.843 million for the quarter ended December 31, 2014.

YES BANK well poised to capture growth, says Rana Kapoor

                       The Board of Directors of YES BANK Ltd. took on record the Q3FY15 results at its meeting held in Mumbai.
 
                        Commenting on the results and financial performance, Rana Kapoor, Managing Director & CEO, YES BANK said, “YES Bank has delivered another steady quarter with healthy growth in Net Profit of 30% driven by sustained increase in NII, expanding NIMs and stable asset quality. Further, the Bank continued its focus on building granularity in deposits demonstrated by Retail deposit contribution of 45.4% as on December 31, 2014. In FY2015, the Bank has so far raised US$ 500 Mn Equity through QIP and Long term Funding of US$ 422 Mn through Dual Currency Syndicated Facility and US$ 200 Mn from Asian Development Bank aggregating to approximately US$ 1.2 Bn. This reflects faith and trust reposed in YES BANK from a diverse set of global stakeholders.
 
                           He further added that, with an improving public policies and macroeconomic environment, YES BANK is well poised to capture growth as demonstrated by 32.4% growth in advances in this quarter, resulting in increasing market share in Indian Banking.”

ITC, metals pack pull down Sensex, Nifty

                 At 12:24PM, BSE Sensex is trading at 27331 down 94 points, while NSE Nifty is trading at 8276 down 23 points.

                  The annual rate of inflation, based on monthly WPI, stood at 0.11% (provisional) for the month of December, 2014 (over December, 2013) as compared to 0.0% (provisional) for the previous month and 6.40% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was -0.28% compared to a build up rate of 5.58% in the corresponding period of the previous year.

                  BHEL, HUL, Infosys, Bajaj Auto and Maruti Suzuki are among the gainers on BSE, Hindalco, SSLT, ITC, Tata Steel and Gail are among the losers.

Cement shares firm up on price hike buzz

Cements shares are trading on a firm ground for the second straight day amid reports of a price hike in Telegana and Andhra Pradesh.

According to media reports, the price of per bag of 50 kg cement have shot up in the range of Rs. 30-50 per bag in the New Year. 

Among frontline stocks - UltraTech Cement has rallied 3.17 per cent to Rs. 2,903. 

ACC has gained 2.29 per cent at Rs. 1,479, and Ambuja Cement has added 0.87 per cent to Rs. 232.

Grasim too is up a per cent at Rs. 3,580. Per centage-wsise,

JK Cement is the major gainer, up over 5 per cent at Rs. 91.30. Followed by, The Ramco Cement up 4.3 per cent at Rs. 340, and Birla Corporation up 3.9 per cent at Rs. 477.

Others like - India Cement, Dalmia Bharat, Prisim Cement and Kesoram Industries are up around 2 per cent each.

India to become fastest growing economy by 2017:World Bank Report

                     As per news reports, a World Bank report predicts that India would become the fastest growing economy in the world by 2017.

                      As per its publication Global Economic Prospects, India will edge out China in terms of real GDP, registering 7% rise against China's 6.9%. India would also grow by 6.4% in Real GDP (Aggregate growth rates calculated using constant 2010 U.S. dollars GDP weights) in 2015, as estimated by the report.

                       Even the poverty rates declined in India and China, aided by relatively high growth rates in developing economies, especially prior to the global financial crisis.

                        "In India, export growth has been robust, and investor confidence has been bolstered by the election of a reform-minded government. The current account deficit and elevated inflation—both persistent vulnerabilities—have declined considerably. Over the medium-term, growth is expected to rise steadily to 7 percent as reforms begin to yield productivity gains. This is expected to benefit other countries in the region which receive remittances from India." the World Bank report said.

                           The report mentioned that the global growth is expected to rise moderately, to 3.0 percent in 2015, and average about 3.3 percent through 2017. High-income countries are likely to see growth of 2.2 percent in 2015-17, up from 1.8 percent in 2014, on the back of gradually recovering labor markets, ebbing fiscal consolidation, and still-low financing costs. In developing countries, as the domestic headwinds that held back growth in 2014 ease and the recovery in high-income countries slowly strengthens, growth is projected to gradually accelerate, rising from 4.4 percent in 2014 to 4.8 percent in 2015 and 5.4 percent by 2017. Lower oil prices will contribute to diverging prospects for oil-exporting and -importing countries, particularly in 2015.

Yes Bank stock flat

Shares of Yes Bank surged up 0.21 per cent to a high of Rs. 783 on BSE.

The Bank has posted a net profit of Rs. 5402.90 million for the quarter ended December 31, 2014 as compared to Rs. 4156.00 million for the quarter ended December 31, 2013.

Total Income has increased from Rs. 29020.00 million for the quarter ended December 31, 2013 to Rs. 35084.70 million for the quarter ended December 31, 2014.

Yes Bank Q3 Net Profit at Rs. 540 crore

Yes Bank Ltd has posted a net profit of Rs. 5402.90 million for the quarter ended December 31, 2014 as compared to Rs. 4156.00 million for the quarter ended December 31, 2013.

Total Income has increased from Rs. 29020.00 million for the quarter ended December 31, 2013 to Rs. 35084.70 million for the quarter ended December 31, 2014.

Essar Group plans to invest Rs. 6000 cr in Gujarat

According to the reports, Essar Group is planning to invest Rs. 6,000 crore over three years towards brownfield expansion of its existing oil refinery at Vadinar near Jamnagar in Gujarat.

At the Global CEO Conclave held at the Pandit Deendayal Petroleum University (PDPU) near Gandhinagar, Prashant Ruia, CEO, Essar Group announced an investment of Rs. 6,000 crore for expansion of the company's Vadinar refinery, which has an existing capacity of 20 million tonnes per annum (MTPA), said reports.

However, Ruia did not mention the proposed capacity addition with the investment, reports added.

Zee Media Corp looks to raise Rs. 200 crore to bolster broadcasting operations

                            Zee Media Corporation Limited stock is trading marginally up today. Recently, the company has sought the SEBI's approval to raise up to Rs. 200 crore through a rights issue. The rights issue is for the eligible equity shareholders of the company. The company would issue equity shares for an aggregate amount up to Rs. 2,000 million on rights basis, a draft letter filed by the company with SEBI showed.

                            Zee Media Corp, with 10 channels, reaches out to over 130 million viewers through its national and regional channels across India as well as those of its digital properties like zeenews.com and dnaindia.com.

                            In an interview with CNBC TV18, Ashish Kripal Pandit, CEO, Zee Media Corporation, said that Rs. 200 crore which the company has raised, will be spending Rs. 45 crore on capex, about 90-100 crore on loan repayment per se and the rest will be used for corporate purposes. Talking about the ad revenues and subscription company is expecting in the next quarter, he said, "We have been outperforming the industry in ad revenue growth while our focus remains on pure play advertising, we are also connected with our clients to add value to their brands for marqee events and custom content solutions. Also going forward, our regional channels will stabilise and will start yielding positive returns. For the subscription revenue, the subset date of digitization has been pushed beyond a deadline. As a result, the benefit that the industry was expecting to flow in from digitisation is below par".

                           The company is set to launch four new regional channels in Orissa, in Bihar and Jharkhand, in Rajasthan and in Madhya Pradesh Chattisgarh (MPCG). At the same time, the company is planning to launch a new business channel.

                            Commenting on the purpose to raise money, he said, "The plan is to raise up to Rs 200 crore and Zee has been a pioneer in the broadcasting arena in the country and keeping with those tradition, the company seeks to expand its horizon and expand its capacity in the field through the proposed rights issue. We would essentially be using these funds raised from the rights issue for capital expenditure primarily on purchase of equipment and accessories to enhance our broadcasting operations".

Government accords investment approval of Rs.996 crore for capital projects of CPRI

                       In order to serve the growing needs of Research & Development in the Indian Power Sector including, development of advanced Testing Facilities, Government has accorded investment approval of Rs.996 crore for capital projects of Central Power Research Institute (CPRI). This will support augmentation of High Power Short Circuit Facilities as well as establishment of new test facilities in existing laboratories of CPRI, located at Bengaluru, Hyderabad, Kolkota, Guwahati, Noida and Nagpur. In addition, a new laboratory will also be established in Western Region at Nasik.

                       CPRI, with its headquarters at Bengaluru, is an autonomous society under the aegis of the Ministry of Power, Govt. of India. It was set up to serve as a National level laboratory for undertaking applied research in electrical power engineering, besides functioning as an independent test and certification authority for electrical equipments and components for ensuring reliability in the power system.

                       The main facilities proposed to be set up/augmented under the approved projects, include the following:

i. Short Circuit Test Facilities

ii. Transmission Tower Test Facility

iii. Facilities for Switchgear Testing & Development v iv. Facilities for testing of transformer oil

v. Relocation and augmentation of thermal research centre at Nagpur.

vi. Establishment of new unit at Nasikv vii. Establishment of Phasor Measurement Unit System and Smart Grid Research Laboratory.

                         On commissioning of the above mentioned facilities, CPRI shall be able to test Transformers and other Switchgears of higher rating equipments used for 400 KV and above. The Smart Grid Research Laboratory will provide necessary support for developing Smart Grid Devices needed for Indian Smart Grid Mission and Smart City projects. The Phasor Measurement Unit System will support the efforts towards Grid Security.

Deutsche Bank sees Sensex 20% up in 2015

MUMBAI: Expecting the government to shift gears and work towards addressing long-pending issues, Deutsche Bank sees the Sensex to rise nearly 20 per cent in 2015. The brokerage has set a target of 33,000 for the Sensex and expects the Nifty to move up to 9,936.

"In 2015, we see India harnessing its commodity pricing dividend to realign policy towards an investment-driven macroeconomic stabilization, which will not only drive economic growth higher but also reduce inflation and create jobs," the report said. 

"Returns on public spending accompanied by the organizational capacity to spend will have a significantly higher multiplier impact on the economy relative to spending on redistribution economics where leakages are extremely high," it added.

At DB's target of 33,000, the Sensex would trade at 18.4x FY16 EPS and 15.5x FY17 EPS, with earnings CAGR of 17.7 per cent over FY15-17. It is overweight on financials, industrials, and materials. 

Tata Coffee soars after fixing record date for stock split

Tata Coffee continues to trade on a gung-ho note on the BSE, after the company fixed 27 January 2015 as the record date for the proposed stock split.

The company board has decided to sub-divide equity shares from the face value of Rs. 10/-per share to Re. 1/- per share.

So far, the stock has jumped to a high of Rs. 980, and is now up 2.63 per cent at Rs. 975 on the BSE. 

The counter has seen trades of around 16,000 shares, as against the two-week daily average volume of 12,000 shares on the BSE.

PNB has no intention to reduce lending rates now: Ram Sangapure

                                  Punjab National Bank (PNB) is trading flat in wake of reports that Jet Airways' main promoter and chairman Naresh Goyal has pledged entire 57,933,665 shares constituting 51% holding in the airline effective 8 January to PNB with a “non-disposal undertaking”. Report said that the the deal may be valued at over Rs. 2,600 crore, to PNB.

                                   PNB is an Indian financial services company based in New Delhi, India and serves over 80 million customers.

                                   In an interview with CNBC TV18, Ram Sangapure, ED, PNB said that for the fourth quarter probably the deposit rates are not going to come down substantially, because the liquidity requirement in the fourth quarter is usually is higher for the banking industry. Talking about if the company expects rate cut after the budget, he said, "The rate cut may come only after Budget or may be around that time, definitely not in the month of January. I don’t see that the Reserve Bank of India (RBI) is inclined to take a call in the month of January itself. Given the volatility in forex markets and also the inflation rate which is now increasing slightly, not really much concern but probably RBI is not very keen at this point in time to take a call, change its stance of monetary policy at this point in time. RBI is concerned about changing the stance of the monetary policy rather than reducing once and again going up after a month or two giving mixed signals to the market; that probably RBI is trying to avoid".

                                   He mentions the fact that if RBI reduces the Repo rate then there are chances that most of the commercial banks will reduce the lending rates. "In the month of a June probably there could be a further decline in rate of interest on deposits, particularly term deposits. That we may visualise somewhere between 25 to 50 basis points in a bucket of one year, maybe 90 days to one year bucket. Probably we might see a decline from 50 basis points to 75 basis points", he added.

                                     Commenting on the effect of reducing the lending rate in the books of the bank, he said, "The non-performing assets (NPA) position of most of the banks, the spread is a result of all these combination of even the NPA percentage. NPA percentage is gone up substantially during the last couple of quarters and the spread if you want to maintain then we have to tweak somewhere. If we reduce the lending rates at this point in time probably we may not be able to maintain our net interest margins (NIMS)".

Stainless steel industry requires govt support: Jindal

Jindal Steel chairman Ratan Jindal said that the lower capacity utilisation and competition with Chinese imports would impact the India's stainless steel industry.

During a media interaction in Ahmedabad on Monday, Jindal said that stainless steel sector requires government support in the form of encouragement for exports and import restrictions on finished or semi-finished goods.

Financial institutions have the bank exposure of about ₹30,000 crore to the sector.

Stainless steel has found applications in areas other than the utensils in recent years, Jindal added.

Market turns choppy

The market has turn choppy in morning deals.

As of 1044 hrs, the BSE Sensex and the NSE Nifty are flat at 27,423 and 8,299, respectively.

The India VIX (Volatility) index has soared 4 per cent at 17.1450.

The Midcap, Smallcap and Nifty Junior indices have gained 0.3 per cent each at 3,369, 5,331 and 18,758, respectively

Among sectors, the Metal index has dropped around 2 per cent at 2,501 and the Energy index has declined 0.3 per cent at 8,351.

On the other hand, the Auto index has advanced almost a per cent at 8,459.

The IT index has also added 0.4 per cent at 11,542.

The breadth is positive in morning session - out of 1,727 stocks traded on the NSE 778 stocks are advancing, while 596 stocks are declining.

Sesa Sterlite, Hindalco, ITC, Tata Steel and HCL Tech are the top losers in the Nifty space.

Whereas, Hindustan Unilever, Ultratech Cement, BHEL, ACC, Asian Paint and Ambuja Cement are the top gainers.

WPI inflation due, fiscal developments under scrutiny: DBS Bank

                             Following Monday’s CPI, WPI inflation is on the tap today. We expect December headline inflation to inch up to 0.2% YoY from flat reading in Nov. Downside pressure from easing global commodity prices is likely to be more pronounced in the WPI index given the higher weight age to tradables in the index. Non-administered fuel products account for ~9% of the index, which increases to a third when other commodity groups are also added. Modest uptick in the food price inflation can be expected, as reflected in the retail inflation gauge.
 
                              The Reserve Bank of India (RBI) prefers the CPI index as the main barometer for policy decisions. In this regard, despite the modest uptick in Dec’s print (see Daily note on 13 Jan), the trend is comfortably below the RBI’s FY15 inflation target. While this does pave the way for rate cuts, the decision to kick start the easing cycle in February or not is likely to be a close one.
 
                                In our view, the RBI will prefer to wait until after the end-February’s budget before taking action. While the pre-condition(s) of below-target inflation and easing inflationary expectations are likely to be met, fiscal developments war­rant attention.
 
                               Revenue targets look certain to be undershot this year, despite the seasonal spurt in the final quarter. In the last two years, March revenues have been more than twice the monthly average of Apr-Feb collections. Much onus thereby falls on the divestment plans, with domestic press reports suggesting lack of certain­ty on the proposed 10% stake sale in Coal India. In addition an estimated 20% reduction in plan spending allotments across ministries is also in the pipeline, ac­cording to the Business Standard. If this pans out, the revised plan expenditure will face the sharpest cut in the past three years.
 
                              Given the uncertainties, the RBI might prefer to monitor the content of the end-February’s budget and credibility of fiscal targets before easing rates. This suggests rate cuts might begin April 2015 onwards, with a small probability of inter-meeting cut in March.

Greece debt burden equals to 177% of GDP

Greek voters head to the polls Jan. 25 for a snap election.

The debt burden of Greece is equivalent to 177% of the country’s gross domestic product, according to a media report.

Syriza said that it wants at least a third of Greece’s total debt to be written off. 

The ECB and national central banks are owed €54bn, the report further said.

The ECB is unable to offer any relief, since it could constitute illegal monetary financing of national governments.

In any case, these loans are essentially interest free since the eurozone agreed to handover the profits from central bank holdings of Greek debt to Athens.

Govt. mulls stake sale in ONGC

                             As per news reports, government is planning stake sale in Oil and Natural Gas Corporation (ONGC) by March, and is also finalising the details of oil subsidy-sharing scheme.

The divestment would take place in all probability in March, and the amount is 5% which will earn the government nearly Rs, 15,000 to 18,000 crore. The price of ONGC's scrip will be a big deciding factor in ONGC's divestment.

Under the chairmanship of Bimal Jalan, a panel would submit the recommendations about the long-term subsidy roadmap in areas like food, oil and fertiliser.

Drop in the oil prices have been a big relief to the government at the center, as the fuel subsidy burden is reduced.

The current market capitalisation of ONGC stands at Rs 291,057.77 crore.The company has reported a standalone sales of Rs 20,361.14 crore and a Net Profit of Rs 5,444.89 crore for the quarter ended Sep 2014.

Fall in oil prices hurting cash generation; affecting investment decisions.

                            Fitch Ratings says that rated oil and gas production companies in Asia can comfortably operate under low oil prices for some time given their generally low cash production costs and strong liquidity. Fitch expects companies to further reduce capex if oil prices remain at current levels for a longer period.
 
                            The fall of oil prices below USD50 per barrel is hurting cash generation and affecting investment decisions of companies in the sector. However, the impact on operating cash generation varies across Fitch-rated companies. South-east Asian companies, such as PTT Public Company Limited (PTT; BBB+/Stable) and Petroliam Nasional Berhad (PETRONAS; A/ Negative) that produce more gas (60% or more of total production), will be less affected immediately compared with their north and south Asian counterparts that are more liquids-heavy. Liquids at companies like Petrochina (A+/Stable), CNOOC (A+/Stable), Sinopec (A+/Stable), Oil India Ltd (BBB-/Stable) and MIE Holdings Corporation (B/Stable) account for over 70% of total production in barrels of oil equivalent (boe) terms. Companies that hedged the prices of part of their oil production benefited from the protection in 2014, but they are likely to be exposed to market prices in 2015 because these types of hedges typically do not cover long periods.
 
                                 Low cash production costs and the largely conventional upstream projects of the rated Asian oil companies provide them with additional flexibility in today's low oil price environment. While all-in costs (cash production costs plus depreciation, depletion and amortisation, or DD&A) are important in the long run, the relatively longer production lives of conventional oil and gas wells provide additional capex flexibility during periods of low hydrocarbon prices. Lifting costs in US dollars per boe are typically in the teens for the rated companies in Asia. Lower production tax requirements stemming from low realised prices, especially in China, also reduce the net impact of the oil price rout on operating cash generation. Companies are also looking to reduce opex, which can squeeze margins of oil field services companies.
 
                                   Over the longer term though, with all-in costs exceeding USD35/boe for the rated Asian names, the economic viability of projects will be impaired if there is no meaningful increase in oil prices. At current prices, we expect certain high-cost projects to be delayed. These could include ventures in the Canadian oil sands and certain enhanced oil recovery projects on mature-depleting fields in Asia. Sponsor companies could also delay final investment decisions on some large projects with long lead times, such as some greenfield LNG projects, to preserve cash reserves.
 
                                      Capex flexibility also varies across the rated companies. CNOOC and PTT have relatively low developed reserve lives of around four years, which gives them less flexibility to curtail development capex for a long period. The state-owned companies are unlikely to cut domestic capex drastically because they are mandated by states to raise production to supply their growing economies. In addition, PTT has lagged considerably behind its Asian peers in reserve replacement, with several large acquisitions not yet adding to proved reserves. For most of the other rated oil producers, though, reserve replacement has been robust (near 100% or above) in recent years, adding further to their flexibility. We also see the prospect of reserve write-downs for some companies if oil prices do not meaningfully improve by the time reserve reports are updated over the next few months.
 
                                          Rated Asian oil companies, especially the state-owned ones, have very strong balance sheets, with low financial leverage and substantial cash balances. We expect these companies to have good financial flexibility arising from their good liquidity (large cash balances and strong access to capital). In India, we expect the government to reduce the substantial discounts (USD56/barrel) the two state-controlled upstream companies, Oil India and ONGC, have to provide to refiners, improving their cash margins under low oil prices. Malaysia's PETRONAS has a very strong balance sheet. However, the high dividends required by the Malaysian government remains a challenge, although the company is pushing to lower this burden.
 
                                             We also expect cash-rich companies to take advantage of attractive M&A opportunities, although their approach is likely to be measured to ensure their cash balances remain strong to deal with the uncertain oil price outlook. Asian companies are likely to focus on mid-sized assets that are producing or close to production that put less stress on their balance sheets.
 
                                              Smaller companies like MIE of China have less financial flexibility. While MIE's lifting costs of around USD10/boe are low, it has relatively weaker access to funding than its larger peers, especially when oil prices are low. However, MIE's cash on hand at end-September 2014 (plus expected proceeds in 4Q14 from some asset disposals) and unutilised credit lines provide adequate short-term liquidity, while its major debt maturities are several years away.
 
                                            Our approach with oil and gas companies is to rate through the cycle. While strong production, weak demand growth and high inventory levels put significant near-term pressure on oil prices, high global marginal production costs and capex cuts leading to reduced production should over time result in a more balanced market that supports higher prices for oil. While low oil prices and high capex requirements will dent the credit metrics of Asian oil producers, ratings of many of these companies, especially the state-owned companies whose ratings benefit from state linkages, remain resilient.