Top corporate news of the day - January 21, 2015

The country's largest consumer goods company Hindustan Unilever (HUL) will roll out its premium ice-cream Magnum in five more cities.

Tata Consultancy Services (TCS), India's largest IT services provider announced that it has been selected by Virgin Atlantic Airways (VAA), one of the UK's leading airlines, to provide fully managed services to transform and optimise its IT processes, applications and infrastructure.
 
Mahindra Two Wheelers (MTWL), part of the Mahindra & Mahindra group, announced that they have completed the necessary formalities for the 51% acquisition in France-based Peugeot Motocycles (PMTC).
 
VE Commercial Vehicles, the 50:50 joint venture between Volvo Group and Eicher Motors, aims to have 15 per cent domestic market share in the heavy duty trucks in the next three years.
 
The country's largest consumer goods company Hindustan Unilever (HUL) will roll out its premium ice-cream Magnum in five more cities. 
 
Strides Arcolab Limited has entered into a licensing agreement with Gilead Sciences, Inc for marketing HIV drugs.
 
Suven Life Sciences said it has received one product patent from Australia, two product patents from Japan and one product patent from Hong Kong.
 
Corporation Bank plans to raise Rs5bn through issue of unsecured, subordinated, perpetual additional Tier-I Basel-III compliant non-convertible taxable bonds on private placement basis.
 
MRF, India's largest tyre manufacturer is in advance discussion with BK Birla flagship Kesoram Industries to acquire its main tyre unit out of the two of Birla Tyres for a value that's far higher than the market capitalisation of the entire diversified Birla conglomerate. 
 
The Competition Commission of India (CCI) will soon decide on the proposed merger of French cement maker Lafarge and Swiss peer Holcim.

Top economic news of the day - January 21, 2015

Kochi Metro Rail Limited (KMRL) cleared a proposal for availing an additional term Rs4.70bn from Ernakulam District Cooperative Bank (DCB) for funding the land acquisition requirements for the Kochi Metro Rail project, as well as for widening Vyttila-Petta Road in Kochi city.

India is expected to grow at 6.3 per cent this year and 6.5 per cent in 2016 by when it is likely to cross China’s projected growth rate, the IMF said while terming the new government’s reforms as “promising” but insisted that their implementation is key.

 
Kochi Metro Rail Limited (KMRL) cleared a proposal for availing an additional term Rs4.70bn from Ernakulam District Cooperative Bank (DCB) for funding the land acquisition requirements for the Kochi Metro Rail project, as well as for widening Vyttila-Petta Road in Kochi city.

 
After four years of introducing the base rate, the rate below which the banks cannot lend, the Reserve Bank of India has indicated that it may be lenient on its practice with market borrowings by companies and banks buying them, making it nearly irrelevant.

RBI allows NBFCs to recast infra project loans

Bringing non-banking finance companies (NBFCs) at par with banks, the Reserve Bank of India (RBI) has allowed the latter to refinance fresh infrastructure project loans in 5-7 year intervals to improve project viability and debt-servicing capacity of their borrowers. Earlier, only banks enjoyed the leverage of refinancing infrastructure project as the economy remained fairly distant from a complete revival. However, with the latest relaxation, India’s central bank allowed NBFCs to fund cost overruns, which may arise on account of extension of date of commencement of commercial operations of infrastructure and non-infrastructure projects, within specified time limits. However, NBFCs could fund cost over-runs (up to a maximum of 10% of the original project cost) without treating the loans as a ‘restructured asset’, only if they fund additional ‘Interest during Construction’, arising mainly on account of delay in completion of a project. In other conditions laid down by the RBI, debt-equity ratio agreed by the NBFCs at the time of initial financial closure should remain unchanged subsequent to funding cost overruns, or improve in favour of the lenders and that the disbursement of funds for cost overruns should start only after the sponsors/promoters bring in their share of funding of the cost overruns. Notably, as per the current guidelines, revisions of the date of commencement of commercial operations (DCCO) and consequential shift in repayment schedule for equal or shorter duration will not be treated as restructuring.

Birla Shloka Edutech for form JV with Diversified Business Solution

Birla Shloka Edutech has received an approval to form a Joint Venture (JV) / a Memorandum of Understanding (MoU) as a consortium member with Diversified Business Solution. The board of directors at their meeting held on January 16, 2015 has approved for the same. The company also received approval to participate in the Tender / RPP from MPPSC (Madhya Pradesh Public service Commission), Government of Madhya Pradesh for online exam in Madhya Pradesh state. Birla Shloka Edutech is one of the leading company in the field of educational services and has created its own niche through reliable, budget friendly and ethical approaches. The company presently provides end to end solutions in sales and services of various educational products to various educational instituorganizations.tes and government

Rallis India reports 16% fall in Q3 consolidated net profit

Rallis India has reported results for third quarter ended December 31, 2014. The company has reported 7.01% fall in its net profit at Rs 32.5 crore for the quarter as compared to Rs 34.95 crore for the same quarter in the previous year. Total income of the company has decreased by 6.57% at Rs 355.25 crore for quarter under review as compared to Rs 380.25 crore for the quarter ended December 31, 2013. On the consolidated basis, the group has reported 16.01% fall in its net profit at Rs 25.49 crore for the quarter ended December 31, 2014 as compared to Rs 30.35 crore for the same quarter in the previous year. Total income of the company has decreased by 2.95% at Rs 390.33 crore for quarter under review as compared to Rs 402.18 crore for the quarter ended December 31, 2013.

Chowgule Steamships to sell its vessel ‘Maratha Providence’

Chowgule Steamships has received an approval for sale of its vessel ‘Maratha Providence’. This step has been taken as part of fleet rationalization exercise. The board of directors at their meeting held on January 19, 2015 has approved for the same.

Chowgule Steamships is principally engaged in the carriage of goods by sea, and is committed to serve its customers to their satisfaction and mutual optimum benefits.

Pramerica Mutual Fund files offer document for Build in India Fund - Series 1 to 2

Pramerica Mutual Fund has filed offer document with SEBI to launch a Closed Ended Equity Fund as 'Pramerica Build in India Fund-Series 1 to 2'. The New Fund Offer price is Rs 10 per unit. Entry and exit load charges will be nil for the scheme. The scheme offers growth and dividend option and seeks to collect a Minimum Target Amount of Rs 10 crore. The scheme will be benchmarked against for the scheme is CNX 500 Index. The minimum application amount is Rs 5000 and in multiples of Re 1 thereafter. The investment objective of the scheme is to achieve long term capital appreciation by investing in an actively managed diversified portfolio consisting of equity & equity related securities that are likely to benefit from the make in India initiative of Government of India

Nifty hits 8,700 levels

Auto, Consumer Durables, Power, banking, capital goods, FMCG, healthcare metal, realty, Oil and gas indices are the gainers.

At 9:17AM, the S&P BSE Sensex is trading at 28,846 up 61 points, while NSE Nifty is trading at 8,440 up 10 points.

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

Auto, Consumer Durables, Power, banking, capital goods, FMCG, healthcare metal, realty, Oil and gas indices are the gainers.

US President Barack Obama is delivering his State of Union Address. He says the shadow Of crisis Has passed and that the state of the Union is strong. US now has a growing economy, shrinking deficits and  booming energy production he said adding that nation is ready to turn the page from years of hardship.

The outlook is a positive start. The indices will look at hitting record highs before deciding the future course. Some calmness may set in ahead of the European Central Bank meeting which is expected to announce a bond buying program on Thursday. ITC, ING Vysya Bank and L&T Finance Holdings will be in limelight today on account of their results. In fact ITC and HDFC managed led the gains in the indices on Tuesday.

Asian markets are mixed with Japan's Nikkei down while Hong Kong's Hang Seng is high. China's Shanghai index is also trading over a percent higher. US indices were marginally up. The Dow and S&P 500 were flat while Nasdaq gained close to half a percent.

Meanwhile, Obama spoke of job growth and other signs of recovery from the ashes of the 2008 economic crisis and mentioned a tax hike on the wealthy, new tax breaks for child care, and programs that include two free years of community college, lower interest rates on mortgage insurance and new requirements for paid sick leave. While outlining new ways to counter terrorist threats, Obama asked Congress to formally approve new authorization for the ongoing battle against the Islamic State in Iraq and Syria.

The industrial output growth in China in December 2014, which came in at 7.9% against expectations of 7.2%, boosted metal stocks as China is the biggest consumer of metals.

According to reports, Reliance Communications share purchase by institutional players was closed after the promoter group subscribed to warrants amounting Rs 650 crore. Shares of the company were trading at Rs 80.55.

Copper futures end lower on Tuesday

Copper futures ended lower on Tuesday after the International Monetary Fund's decision to cut its outlook for global growth to 3.5 percent for 2015, down 0.3 percentage point from its previous forecast. Though, dollar weakened against a basket of major currencies, capped some losses in copper prices to some extent.

Copper futures for March delivery fell 0.9 percent to settle at $2.594 a pound on the Comex metals division of New York Mercantile Exchange. While, copper on the London Metal Exchange was up 0.3 percent to close at $5,690 a metric ton.

M&M’s business unit inaugurates its authorized dealership in Meerut

Mahindra & Mahindra’s (M&M) business unit - Mahindra First Choice Services (MFCS), multi-brand certified used car company, has inaugurated its new authorized dealership in Meerut. The company has expanded its all India network to 49 workshops with the inauguration of its first Franchisee Owned Franchisee Operated (FOFO) workshop in Meerut. The company already successfully operates 4 workshops in Ghaziabad and Noida and 6 in Punjab and Chandigarh. MFCS presently has 49 workshops, including 29 company-owned workshops across the country. MFCS’ goal is to have 500 workshops by 2018 and the company intends to invest Rs 250 crore by 2018 to meet this rapid expansion.  The company has managed to service 2.5 lakh cars since inception. Mahindra & Mahindra (M&M) is the flagship company of the Mahindra Group, a multinational conglomerate based in Mumbai, India. Amongst the various business interests of its parent group, the company is mainly involved in the automobile manufacturing. It is one of the leading auto companies of India.