Sensex, Nifty off day's low

The BSE Sensex has now slipped 76 points, while the NSE Nifty is down 30 points 

The market has recovered most of its earlier losses and now, trading on a soft note led by gains in energy, FMCG, metal and auto shares.

As on 1504 hrs, the Sensex is down 82 points at 29,040. The Nifty is down 28 points at 8,769.

The broader market is trading on a mixed note. The CNX Midcap index has shed 0.6 per cent at 13,128. The CNX Smallcap index is marginally in green at 5,556.


The market breadth remains negative in the noon deals. Out of 1,688 stocks have traded on the NSE - 791 stocks have declined, while 656 stocks have advanced.

Sectorwise, the CNX Energy index has surged over 1.5 per cent. The CNX FMCG index has spurted over a per cent.

The CNX Metal index has added 0.5 per cent. The CNX IT index has gained 0.2 per cent. The CNX Auto index has smartly recovered its losses and now, trading marginally positive.

On the other hand, the Bank Nifty and the CNX Realty index remain weak - down 2 per cent.

Meanwhile, the European market opened stronger. The DAX, the CAC and the FTSE jumped a per cent each. 

Manappuram Fin Q3 PAT at Rs. 80.6 crore February 03, 2015

Total Income has decreased from Rs. 5350.590 million for the quarter ended December 31, 2013 to Rs. 5164.380 million for the quarter ended December 31, 2014



Manappuram Finance Ltd has announced a net profit of Rs. 806.350 million for the quarter ended December 31, 2014 as compared to Rs. 710.590 million for the quarter ended December 31, 2013. 


Total Income has decreased from Rs. 5350.590 million for the quarter ended December 31, 2013 to Rs. 5164.380 million for the quarter ended December 31, 2014. -

Moody's assigns Baa2 to Reliance's proposed USD bonds February 03, 2015

The outlook on the rating is stable.

Moody's Investors Service has today assigned a Baa2 senior unsecured foreign currency debt rating to the proposed issuance of USD-denominated senior unsecured bonds by Reliance Industries Limited (RIL). The outlook on the rating is stable.

The proposed bonds follow the company's successful issuance of $1 billion 4.125% 10-year senior unsecured notes due 28 January 2025.

The bond proceeds will be used to fund the company's capital expenditure (capex).

RATINGS RATIONALE

The proposed bond will rank pari passu with all of RIL's other existing and future unsecured and unsubordinated obligations.

"RIL's Baa2 rating reflects its leading market position, globally competitive refining business which has consistently commanded higher margins than its competitors, and vertically-integrated operations across the hydrocarbon chain. The rating also recognizes RIL's moderate financial leverage, strong operating cash flow and excellent liquidity," says Vikas Halan, a Moody's Vice President and Senior Credit Officer.

At the same time, the Baa2 rating incorporates RIL's exposure to the inherent volatility of refining and petrochemical margins, its single location refinery's concentration risk and the execution risk from its diversification into consumer businesses. The rating also accommodates Moody's expectation that RIL will use its financial flexibility to make growth-enhancing investments that will boost its business and geographical diversification.

"Over the next 12 months, we expect RIL's credit metrics to remain stable, supported by strong earnings contributions from its refining and petrochemical segments even as the company increases its borrowings to partially fund its large INR1.8 trillion capex plan. Moreover, we anticipate RIL's credit profile will improve upon completion of the planned capex as the refining segment projects will enhance its refining margin by about $2.0 - $2.5 per barrel," adds Halan.

The company's strong liquidity profile is supported by its high levels of cash and liquid assets, and expected strong cash flow generation. As of 31 December 2014, RIL had cash and cash equivalents of INR787 billion compared to total debt of INR1.5 trillion.

RIL has a local currency issuer rating of Baa2 with a positive outlook. The positive outlook reflects the strengthening of the company's financial metrics above the parameters required for a Baa2 rating. The positive outlook also incorporates Moody's expectation that any diversification outside its current petroleum, retail or telecom businesses will be moderate, and executed in cognizance of the parameters - both financial and operational - that underpin RIL's rating.

However, RIL's foreign currency debt ratings have a stable outlook, as they remain constrained by India's sovereign foreign currency ceiling.

RIL's local currency rating could be upgraded if the company a) successfully executes its capex plans and further improves its refining and petrochemicals segments' margins; or b) substantially improves the contribution of its Indian exploration and production business. Credit metrics that support an upgrade include retained cash flow/adjusted net debt of above 30%-35% and EBIT/interest over 8.0x, both on a sustained basis.

However, the outlook on the local currency rating could revert to stable, if: 1) RIL fails to resolve its disputes with regulators such that it fails to increase its gas production over the next 12 to 18 months; 2) RIL undertakes transformational debt-funded acquisitions; or 3) RIL pursues growth that entails higher business risk and is not part of its current petroleum, retail or telecom data strategy.

Additionally, if its credit metrics fails to improve after the completion of the expansion projects, such that retained cash flow/adjusted net debt remains below 30%, then the outlook would revert to stable.

RIL's foreign currency rating may be downgraded if the country ceiling for foreign currency bonds for India is downgraded.

The principal methodology used in this rating was Global Refining and Marketing Rating Methodology published in December 2009. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

RIL is a leading Indian energy company with significant refining and extensive petrochemical operations, as well as exploration and production business. The company operates one of the world's largest single-site refineries, the Jamnagar complex, with a refining capacity of 1.2 million bbl/day 

Banking stocks plunges after RBI kept key rates unchanged February 03, 2015

Shares of Kotak Mahindra Bank, HDFC Bank, Axis Bank and Canara Bank was down 2%, while Punjab National Bank shares were down 6%. 


Banking Stock slipped after RBI has decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 7.75 per cent and cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL).

Shares of Kotak Mahindra Bank, HDFC Bank, Axis Bank and Canara Bank  was down 2%, while Punjab National Bank shares were down 6%.

ICICI Bank and YES Bank was down 0.21% and 1%. 

Government plans to mop up Rs. 5,000 crore through ETF February 03, 2015

The fund, a legacy of the UPA was set up in March consisting of shares of 10 PSUs including ONGC, Gail, Coal India Ltd, Rural Electrification Corporation Ltd and Indian Oil Corporation Ltd. 


According to media sources, government plans to raise Rs 5,000 crore ($809 million) by selling government-held shares in public sector companies through exchange traded fund (ETF). 


The fund, a legacy of the UPA was set up in March consisting of shares of 10 PSUs including ONGC, Gail, Coal India Ltd, Rural Electrification Corporation Ltd and Indian Oil Corporation Ltd. It raised Rs 3,000 crore for the Centre in 2013-14.


 Now, the Narendra Modi government is planning to take this route again, and the asset manager of these funds, Goldman Sachs, has already started to work out the nitty-gritty of the project, the reports added. If the government is sucessful in raising money through the ETF route, it will be the second effort by the government after the stake sale in SAIL and Coal India Limited. Coal India recently help the government raise close to Rs. 22,400 crore, in India's largest divestment move, as the government reduced its stake in Coal India from 89.65% to 79.65% via the OFS route.


 The unit value of the fund has increased 38.8 per cent since its launch last March.

RBI keeps key rates unchanged February 03, 2015

RBI has decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 7.75 per cent.

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 7.75 per cent;

keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL);

reduce the statutory liquidity ratio (SLR) of scheduled commercial banks by 50 basis points from 22.0 per cent to 21.5 per cent of their NDTL with effect from the fortnight beginning February 7, 2015;

replace the export credit refinance (ECR) facility with the provision of system level liquidity with effect from February 7, 2015;

continue to provide liquidity under overnight repos of 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 variable rate term repo and reverse repo auctions to smooth liquidity. 

Spicejet stock down 2% February 03, 2015

The stock has hit a high of Rs23 and a low of Rs22

Shares of Spicejet Ltd was down 2% at Rs22 on reports that Civil Aviation Ministry has sent name of Ajay Singh to the Home Ministry for security clearance before approving his appointment as a director of the airline

The stock has hit a high of Rs23 and a low of Rs22.

Civil Aviation Ministry will give  final approval to Singh’s appointment as director, says report.

Top corporate news of the day - February 03, 2015

Drug major Lupin has received approval from the US health regulator to sell a generic version of Vancocin capsules, used in treating diarrhoea, in the American market. 

SpiceJet said it will launch two daily return flights from New Delhi for Varanasi from March one.
 
Alstom T&D India has commissioned a substation in Anta, Rajasthan, that will help in more efficient evacuation of electricity from three power plants in the state.
 
Drug major Lupin has received approval from the US health regulator to sell a generic version of Vancocin capsules, used in treating diarrhoea, in the American market.
 
Sun Pharma and Ranbaxy have got the nod for their USD4bn merger from US Federal Trade Commission (FTC), which terminated a key waiting period clause, paving way for the two firms to fast-track their deal.
 
Bank of Maharashtra is planning to scale down the share of corporate loans to 60% of the total credit portfolio during the current financial year, from the 70% level.
 
Reliance Industries Limited (RIL) has applied for a payments bank licence with country's largest bank State Bank of India (SBI).
 
Kokuyo Camlin, has started construction work for its new facility at Patalganga, Maharashtra. The facility, constructed over 14 acres, will be one of the biggest facilities for Kokuyo worldwide. The upcoming facility - which will manufacture markers, mechanical pencils, fine leads, pens and other stationery products - is expected to commence its operations in 2016. 
 
Indian Oil Corporation Ltd (IOC) is planning to invest Rs53.02bn in three projects to augment pipeline networks for LPG and refinery products.
 
Essar Oil has sold a rare jet fuel cargo of 37,000 tones for export. The cargo was likely sold to BP at a premium of 50 cents a barrel to Middle East. It usually exports gasoil and usually sells the jet fuel it refines to local customers. 
 
Voltas is considering expanding into other product categories like electronics and consumer durables. 

SAIL has decided to ramp up capacity of Rourkela Steel Plant (RSP) to 10.8 million tonne (mt) by 2025 from the present 4.5 mt. 
 
Aditya Birla Nuvo Ltd and retailer Future Group were among the first big names to apply for licenses to run so-called payments banks, under rules meant to put basic banking within the reach of hundreds of millions. 
 
French vaccine manufacturer Sanofi, though its Indian entity Shantha Biotechnics, will set up an insulin production facility in Telangana, involving an investment of Rs4.60bn. 
 
The government plans to sell another 5% of Coal India over the next few months, after raising about Rs230bn by divesting a 10% stake through a public offer that scraped through last week with generous support from the Life Insurance Corporation and domestic funds. 

Top economic news of the day - February 03, 2015

The growth rate of eight core sector industries slowed to three—month low of 2.4% in December as production of crude oil, natural gas, fertiliser and steel declined.

Car sales in January are estimated to have risen almost 8% over the same month last year, despite an increase in prices on the back of 4-6% hike in excise duties from the month.
 
The growth rate of eight core sector industries slowed to three—month low of 2.4% in December as production of crude oil, natural gas, fertiliser and steel declined. 
 
The sugar industry has made a fresh pitch for extending the controversial export subsidy on raw sugar citing a threefold jump in its debt burden from Rs114bn in 2008 to Rs336bn in 2013.

Nifty above 8,800 levels

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

At 9:24AM, the S&P BSE Sensex is trading at 28,237 up 62 points, while NSE Nifty is trading at 8,827 up 30 points.

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

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

GAIL, BHEL, COALINDIA,SUNPHARMA,TATASTEEL, Reliance, Hindalco are among the gainers, whereas HDFC Bank, Infosys, Axis Bank, HUL are losing sheen on BSE.

After a surprise cut a couple of weeks ago, expectations are not really sky high for another round of rate cuts today. Will Governor Raghuram Rajan, who celebrates his birthday today, cut rates and throw a surprise party for the market as he announces the Sixth Bi-monthly Monetary Policy Review? Or will he wait for the budget announcement first? 

One school of thought feels even though there are no new data points really, the RBI could use global commodity prices outlook and FM’s commitment to fiscal prudence to effect a rate cut. The strong rupee could also work in favour of a rate cut decision.

India's latest initiative to increase financial inclusion attracted a broad spectrum of applicants, estimated at close to 100, as the central bank's deadline ended Monday for those seeking licences to set up so-called small banks and payments banks, says a report. The names include Reliance Industries, Aditya Birla Group, Future Group and Bharti Airtel, Fino Paytech, Oxigen, SKS Microfinance, Dewan Housing Finance and Vaya Finserv.

HDFC Bank is set to raise Rs 10,000 crore sometime this week through a combination of qualified institutional placements (QIPs) in the domestic market and a follow-on offering of American Depository Receipts (ADRs) in the US, two people familiar with the proposal told Economic Times. 

Global exchange traded funds (ETFs) are steadily increasing their exposure to Indian equities. In January, they contributed nearly half of the total FII inflows into Indian equities, according to data compiled from Bloomberg. FIIs invested $2 billion (Rs 12,400 crore) in Indian equities and $2.4 billion in debt securities in January, says a report.

Arvind Kejriwal and his Aam Aadmi Party (AAP) appear to have reversed the pro-BJP mood in Delhi and could win a simple majority if assembly elections were to be held now, shows the latest opinion poll carried out by polling firm TNS for ET.

The combined Index of Eight Core Industries stands at 172.7 in December, 2014, which was 2.4 % higher compared to the index of December, 2013. Its cumulative growth during April to December, 2014-15 was 4.4 %.