Greenlam Industries gets listed on NSE and BSE

The listing saw the shares of Greenlam Industries opening at Rs. 463.25 and Rs. 450.75 a unit on NSE and BSE respectively. 

Greenlam Industries, the leader in the surface decor with their offering in laminates and veneers got listed on the National Stock Exchange and Bombay Stock Exchange today. With a complete leadership in the domestic and international market from its laminate and veneer offerings, with time have diversified into new product line and have been successful in capturing the markets that they have entered into.

Last year, Greenply Industries had announced the demerger of its collective business and formed Greenlam Industries to manage the group’s decorative business with all its assets and liabilities. With the listing of Greenlam Industries today, each shareholder of Greenply Industries is entitled to receive equivalent number of shares of Greenlam Industries Ltd. as per the demerger agreement announced earlier.

The listing saw the shares of Greenlam Industries opening at Rs. 463.25 and Rs. 450.75 a unit on NSE and BSE respectively.

Speaking on the listing Mr. Saurabh Mittal, Managing Director and CEO, Greenlam Industries said “Greenlam Industries, the erstwhile decorative division of Greenply Industries has grown close to Rs. 800 crores topline business in FY13-14. Greenlam Industries has leadership in domestic and international markets for laminate business, leadership in the decorative veneer business in the domestic market and have launched new products in the decorative surface space, which have tremendous potential to grow in the future. We realized the importance of dedication and management focus in the segment of decorative products and surfacing material. The demerger was a step towards creating an independent identity to bring in more focus on the decorative surface products, add alike products in the segment and accordingly optimize resource allocation.”

Greenlam announced to expand the capacity by adding 20% to its existing laminate capacity and aims to streamline the additional capacity by Q3 FY16.

The company has also entered the engineered wood-flooring segment through its brand name Mikasa. The engineered wooden flooring business in India is witnessing a 20% - 25% growth per year. With Mikasa, Greenlam Industries will be the first company to enter into manufacturing and marketing of engineered wood flooring in the country, making the space competitive as well as innovative. Greenlam is also launching factory finished doors and frames in a organized manner for the first time in the industry. The door plant with a capacity of 1,20,000 doors a year, will be put at the existing Behror plant, Rajasthan. 

Sensex slippery​, cement shares keep Nifty afloat

The market breadth is marginally positive - out of 1,700 stocks traded on the NSE, 742 have advanced and 714 have declined so far. 

The cement shares have helped the Nifty limit its losses even as the Sensex seems to trade on a slippery ground.

At 1:45 PM, the BSE Sensex is down 35 points at 29,326, while the Nifty is up 11 points at 8,913.

Cement shares are in demand on hopes of higher sales taking cues from the government's infrastructure development plans in Budget 2015.

UltraTech Cement has soared over 6 per cent to Rs. 3,331. Grasim has surged over 5 per cent to Rs. 3,950. ACC and Ambuja Cements have rallied over 4 per cent each to Rs. 1,747 and Rs. 281, respectively.

Among the other Nifty stocks - BPCL has surged nearly 5 per cent to Rs. 781 on the back of around Rs. 3 hike on diesel and petrol.

Index heavyweights - Axis Bank and Larsen & Toubro have advanced over 3.5 per cent each to Rs. 636 and Rs. 1,831, respectively.

BHEL, Lupin and Cipla have gained 3 per cent each at Rs. 270, Rs. 1,798 and Rs. 701, respectively.

On the other hand, ITC continues to remain the major dragger - down 4 per cent at Rs. 347 following brokerage downgrades owing to the steep excise duty hike proposed in the ​Union Budget.

Bajaj Auto too has slipped over 4 per cent to Rs. 2,063 after the two-wheeler maker announced a 22 per cent drop in sales.

Jindal Steel, Tata Motors, Bank of Baroda, Hero MotoCorp and Mahindra & Mahindra are the other major losers.
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The market breadth is marginally positive - out of 1,700 stocks traded on the NSE, 742 have advanced and 714 have declined so far.

Sensex slips, Nifty flat

The benchmark indices have trimmed gains on the back of fresh round of selling in auto, FMCG, realty and metal shares. 

At 11:37 AM, the S&P BSE Sensex is trading at 29,368 down 6 points, while NSE Nifty is trading at 8,917 up 15 points.

 The BSE Mid-cap Index is trading up 0.25% at 10,838, whereas BSE Small-cap Index is trading up 0.25% at 11,294. Some buying activity is seen in Banking, capital goods and power sectors, while auto, fmcg and consumer durable are showing weakness on BSE.

 Indian Oil Corporation, BPCL, Axis Bank, Ultratech Cement, HPCL and L&T are among the gainers, whereas GMR Infra, Unitech, JSPL, ITC and Bajaj Auto are losing sheen on BSE.

 Among sectoral indices - the CNX FMCG index is the top loser - down 2.4 per cent.

 The CNX Realty index has slipped nearly 2per cent. The CNX Auto and the CNX Metal indices have dropped a per cent.

 On the other hand, the Bank Nifty is the top gainer - up 1.3 per cent.

 The CNX Pharma index has added 0.8 per cent, while the CNX Energy index is trading on a flat note. In the auto space, Bajaj Auto is the top loser - down 3.3 per cent at Rs. 2,083 after the company reported 22 per cent decline in monthly sales on year-on-year basis. 

Tata Motors and Hero MotoCorp have dropped nearly 2 per cent each at Rs. 582 and Rs. 2,635. Mahindra & Mahindra, Amar Raja Batteries and MRF are some of the significant losers.

 On the other hand, Ashok Leyland has jumped over 2 per cent at Rs. 71.30. Motherson Sumi Systems has spurted almost 2 per cent at Rs. 461.

 Eichor Motors and Maruti Suzuki have added 1.2 per cent on strong February sales. On the NSE, so far, 42 stocks have hit 52-week high. ACC, Ahluwalia Contracts, Ajanta Pharma, Ambuja Cements, Ashoka Buildcon, Ashok Leyland, Century First and ING Vysya Bank are among the prominent gainers.

 Whereas, 18 stocks are their 52-week lows. Birla Power Solutions, Educomp Solutions, Ess Dee Aluminium, Rasoya Proteins and Tilaknagar Industries are the losers. 

Budget show Govt's commitment to fiscal consolidation: S&P

This commitment moderates the drag on sovereign credit support posed by the relatively heavy general government debt burden in India.

Standard & Poor's Ratings Services said today that India's 2015-2016 budget highlights the government's commitment to keeping the fiscal deficit low despite lower-than-expected revenue growth. This commitment moderates the drag on sovereign credit support posed by the relatively heavy general government debt burden in India. Nevertheless, the debt burden and large budgetary subsidies could constrain the speed of improvements in India's credit metrics.

The Indian government (BBB-/Stable/A-3) expects the fiscal deficit for the fiscal year ending March 2015 to meet its target of 4.1% of GDP. Non-debt revenue for the year is likely to be lower by more than 7% compared with the initial budget estimate, largely reflecting weak tax collection and lower-than-expected divestment/disinvestment income. The government has reined in capital and other spending to meet its target budget deficit.

Sensex, Nifty in green; capital goods, banking stocks gain

Some buying activity is seen in Banking, auto,healthcare, IT, capital goods,metal and oil and gas sectors, while fmcg and consumer durable are showing weakness on BSE. 

Tata Steel reaction to the Union Budget 2015-2016

The proposal to do away with different types of foreign investment caps and replace them with a composite cap is welcome. 

The budget seeks to provide an environment that attracts investment in industry and propels economic growth. The proposal to do away with different types of foreign investment caps and replace them with a composite cap is welcome. Quick implementation of market and policy reforms proposed in the budget will help in achieving a GDP growth of 8.5-9 per cent y-o-y. The proposal to reduce corporate tax to 25 per cent in the next few years is welcome. 

The Rs 70,000 Cr. earmarked for the infrastructure sector, too, augers well for sectors such as steel and cement. The proposed National Skills Mission will enhance employability of rural youth in industry. The new tourism scheme and the government’s proposal to issue visa on arrival to nationals from 150 countries will greatly benefit the hospitality and services sectors.

 

The Finance Minister’s proposals on social security for all and welfare schemes for senior citizens indicates the government’s intent in achieving inclusive and equitable growth.

The move to appoint an expert committee to prepare a draft legislation for obtaining regulatory clearances expeditiously is a step in the right direction. Increase in the import duty on steel will help in improving the competitiveness of the domestic steel industry.

Gap up opening for Nifty, Sensex

The outlook is a spurt at start. Indices will look to scale to new highs and attention will be on Nifty attempting to hit the 9,000 mark. 

The big budget event is now out of the way. It may not have been big bang on reforms but it finance minister has delivered a practical budget that addresses many crucial areas topping the government agenda. Foreign investors would be pleased with deferment of GAAR by 2 years, merging of FIIs and FDI limits, resolution of domicile issue, removal of MAT etc. There are several incentives to boost domestic savings and direct it towards financial instruments for productive use. More notably, there are steps to release money blocked in gold.  Those who missed participating on Saturday, especially FIIs will get into action today.

The outlook is a spurt at start. Indices will look to scale to new highs and attention will be on Nifty attempting to hit the 9,000 mark.  Just last year, in Feb-end, the Nifty was below the 6,300 levels and a year later it has galloped over 40%.  Fuel price hike will also have an impact on OMCs. Infrastructure Output figures and Fiscal Deficit numbers will also be eyed today.

Global indices are lackluster with US indices closing lower on Friday. Dow fell half a percent while S&P ended flat. Nasdaq too dropped half a percent.  Asian indices are mixed with Japan’s Nikkei flat while Hong Kong’s Hang Seng gaining 0.4%. China’s Shanghai is also slightly lower.

On the domestic front, the FM has indeed boosted corporate and individual sentiment with his resolve to move towards a 25% tax level in next four years and the additional deductions for individual tax payers for health cover premium payments, pension contribution and transport allowance.

No budget can please everybody or leave no room for criticism. If one has to list disappointments, there are a few, such as failure to provide a convincing solution to capital needs of public sector banks or direct boost to private sector for new capex.

Finance Minister Arun Jaitley in his Budget Speech in Lok Sabha said that the Indian Economy has turned around dramatically in the last nine months with the real GDP growth expected to accelerate to 7.4% making India the fastest growing large economy in the world.CPI inflation is expected to remain at close to 5% by the end of the year which will allow further easing of monetary policy. Jaitley said a Monetary Policy Framework Agreement has been concluded with the RBI to keep inflation below 6%.

FM proposed rationalization of various tax exemptions and incentives to reduce tax disputes and improve tax administration. He said, with a view to encourage savings and to promote health care among individual tax payers, it is proposed to increase the limit of reduction of health insurance premium from Rs 15,000 to Rs 25,000 and for senior citizen this limit is increase from Rs 20,000 to Rs 30,000.

The Budget also announced a slew of measures to stamp out black money. The Finance Minister proposed to defer the applicability of the General Anti Avoidance Rule (GAAR) by two years. Investments made up to 31.03.2017 shall not be subjected to GAAR.

Finance Minister also announced Rs 69,500 crore plan to sell stakes in government companies. Out of the total budgeted proceeds, Rs 41,000 crore is estimated to come from minority stake sale in PSUs, and the remaining Rs 28,500 crore is projected to come from strategic sale in both profit and loss-making companies, says report. The revised estimates pegged the disinvestment receipts from minority stake sale in PSUs at Rs 26,353 crore.

Petrol prices were hiked by Rs 3.18 per litre while diesel by Rs 3.09 per litre. This was the second increase in two weeks. In Delhi, diesel will cost Rs 3.09 more at Rs 49.71 a litre from Sunday, while the price of petrol will increased Rs 3.18 per litre to Rs 60.49.

The Prime Minister, Narendra Modi, called upon the Indian IT Industry to focus on meeting the global challenge of cyber-security. Stating that the entire world is concerned about this issue, the Prime Minister said Indian IT professionals could do a lot for cyber-safety of digital assets across the world.

Shares of cigarettes manufacturing companies have dealt a severe blow following a steep hike in excise proposed in the Budget. According to the Union Budget 2015-16 proposals, the Finance minister has proposed to hike excise duty on cigarettes to 25 per cent for under 65 mm category, and 15 per cent for other categories.

The proposed merger of FMC with Sebi to create a unified markets regulator has sounded a death knell for the illicit 'dabba trading', estimated to have a turnover of up to Rs one lakh crore a day, says a report.