RBI buys forex worth $12.14bn in Jan

The RBI's total net forward position stood at $5.58 billion at the end of January compared with $6.85 billion in December

The Reserve Bank of India bought a net $12.14 billion in spot foreign exchange markets in January, compared with $6.74 billion in December, according to RBI's monthly bulletin published on Tuesday.

The total net forward position stood at $5.58 billion at the end of January compared with $6.85 billion in December, the data showed

Sensex, Nifty trade flat

Broader market is also trading in line with the benchmark indices. CNX Metal index is the top loser.

The market is moving in-and-out of the positive zone as traders are cautious ahead of tomorrow's release of IIP and CPI data.

At 11:34 AM, the BSE Sensex is down 66 points at 28,647. The NSE is down 15 points at 8,697.

The broader market is also trading marginally in red zone. The CNX Smallcap and the CNX Midcap indices have declined 0.2 per cent each at 5,718 and 13,147, respectively.

The CNX Nifty Junior has moved down 0.3 per cent at 19,692.

Sectorwise, the CNX IT index is trading on a firm note - up 1.3 per cent tracking the weakness in the Indian currency against the US dollar.

Whereas, the CNX Metal index is the top loser - down 1.3 per cent.  The CNX Pharma and the CNX Realty indices have slipped a per cent each.

Among IT shares, NIIT Technologies has jumped over 5 per cent at Rs. 430. Hexaware Technologies has surged 3.6 per cent at Rs. 285.

HCL Tech and Wipro have added over 2.5 per cent each at Rs. 2,099 and Rs. 670, respectively. Infosys, Tech Mahindra and KPIT are among the prominent gainers.

On flip side, Just Dial has slumped 7.9 per cent at Rs. 1,151. eClerx has shed 1.5 per cent at Rs. 1,615. 

Oudh Sugar up 2% ahead of board meet

The board to consider business restructuring in a meet on 13 March.

Oudh Sugar Mills has touched a high of Rs. 17 so far in trades ahead of the board meet on 13 March, 2015.

According to a release issued by the company to the BSE, the board of Oudh Sugar Mills will meet on 13 March, 2015, to consider and approve the Composite Scheme of Arrangement for the proposed restructuring of its business of manufacture and sale of sugar and its by-products and the business of Food Processing and investments.

The stock is now up nearly 2 per cent at Rs. 16.75, and around 31,000 shares have been traded so far on the counter at the BSE.

Meanwhile, the Sensex is up two points to 28,712.

FM may ask PSBs to pass on rate cuts to borrowers

Finance Minister Arun Jaitley would meet the heads of PSBs today to review their banks quarterly performance 

The government is expected to push public sector banks to pass on rate cuts to retail borrowers after RBI announced a 25 basis points or 0.25% cut on repo rate last week, according to a media report.

Finance Minister Arun Jaitley would meet the heads of PSBs today to review their banks quarterly performance..

During the review meeting, the Finance Minister will review the follow-up action taken on the recommendations made/decisions taken during the two day Gyan Sangam(Bankers’ Retreat) held in Pune in early January this year as well as progress made with regard to financial inclusion and Pradhan Mantri Jan Dhan Yojana (PMJDY) in particular. Issues relating to financing of Women Self Help Groups, Banking Sector Reforms and Atal Pension Yojana are also likely to come-up for discussion during the one day performance review meeting.

Among other things, the government may PSBs to pass on rate cuts to borrowers, the report added.

State Bank of Travancore (SBT) has announced that it will reduce its base rate by 10 basis points to 10.15% with effect from March 16.

The RBI had lowered the repo rate to 7.5% from 7.75%, three days after Jaitley presented the budget for 2015-16.

"Despite a generalised fall in the cost of funds, banks are yet to pass through these effects, as also the effects of the policy rate cut on January 15, into the spectrum of lending rates," RBI governor Raghuram Rajan had said.

IPCA Laboratories stock up 4%

The stock has hit a high of Rs. 785 and a low of Rs. 755.

Share prices of IPCA Laboratories was up 4% in the early morning trade, and has raced to Rs. 783.50. The stock opened at Rs. 755.20. 

The stock has hit a high of Rs. 793.50 and a low of Rs. 755.

Heavy buying is seen at the counter, with nearly 1 lk shares of the company exchanging hands at the BSE.  

Meanwhile, Sensex is trading at 28,781 up 71 points, while Nifty is trading at 8,721 up 9 points.

Earlier last month, the company had informed the regulator that it has acquired 19% stake in Krebs Biochem. 

Volkswagen Passat is Europe’s "Car of the Year 2015"

One of the oldest and most well-known awards in Europe, "Car of the Year" has been honoring the best new releases in the car industry every year since 1964.

Europe's "Car of the Year 2015" is a Volkswagen: the new Passat wins the prestigious award, which is presented every year by the international "Car of the Year" jury. The winner was announced earlier this week at the Geneva International Motor Show.

One of the oldest and most well-known awards in Europe, "Car of the Year" has been honoring the best new releases in the car industry every year since 1964. The jury, consisting of 58 European motoring journalists from 22 countries, had nominated seven candidates ahead of the final. In the preceding months, these candidates had undergone detailed testing, comparisons and evaluations based on criteria such as economy, comfort, safety, driving characteristics, functionality, design and technical progress. In the 52nd edition of the traditional competition, the new Passat clearly triumphed over its six rivals in the final with a total score of 340 points.

"We are extremely proud of this accolade," said Prof. Martin Winterkorn, CEO of Volkswagen Aktiengesellschaft, at the prize-giving ceremony in Geneva. "In the new Passat we have again succeeded in developing a car that sets the standards for its class in terms of technology and quality. This honor is a tremendous confirmation for the work of our engineers, designers and the entire team. The new Passat shows that the Volkswagen brand has the right answers to the challenges of our time."

Heinz-Jakob Neusser, Member of the Board of Management Volkswagen Brand for the Development Division, received the award for the new Passat: "We are delighted by the honor of "Car of the Year 2015". This accolade has a very special significance for us because it is awarded by independent international trade journalists. In addition, the honor is known to have a high standing for our customers."

Michael Mayer, Director, Volkswagen Passenger Cars, Volkswagen Group Sales India Pvt. Ltd. said, “We are delighted to see that the Passat has been crowned Europe’s ‘Car of the Year 2015.’ In terms of safety, build quality, advanced technology and outstanding driving dynamics, the Passat is clearly a segment leader, and rightfully deserves to win this award.”

The new Passat, in all its versions, is one of the most successful mid-class cars in the world and with 1.1 million units (in 2014) one of the highest-volume series of the Volkswagen Group worldwide. Now in its eighth generation, the best-seller is regarded as one of the most innovative cars in its class. 

Indian Rupee: Strong Dollar Continues To Weigh

Indian Rupee: Strong Dollar Continues To Weigh

Rupee could extend its losses on account of a soaring US dollar overseas, although some recovery is expected after the sharp decline. The domestic currency pared some of its losses in late trades yesterday to end at Rs 62.77 against the greenback after having dropped to a low of 62.81 intraday, its lowest level since early this year.

Local indices edged lower amid high volatility during the latter part of the trading session. The barometer index, the S&P BSE Sensex, hit its lowest closing level in almost four weeks. The 50-unit CNX Nifty hit its lowest closing level in almost two weeks. The market breadth indicating the overall health of the market was negative. The Sensex fell 134.91 points or 0.47% to settle at 28,709.87.

India's current account deficit (CAD) narrowed to US$ 8.2 billion (1.6% of GDP) in Q3 of 2014-15 from US$ 10.1 billion (2.0% of GDP) in Q2 of 2014-15, while the CAD doubled from US$ 4.2 billion or 0.9% of GDP in Q3 of 2013-14. The merchandise trade deficit (US$ 39.2 billion during Q3 2014-15) widened on a q-o-q basis on account of a larger decline in merchandise exports (7.3%) than in merchandise imports (4.5%); in terms of y-o-y changes too, the trade deficit in Q3 2014-15 widened due to a decline in exports (1.0%), while imports increased (4.5%). Thus, the reduction in the CAD in Q3 2014-15 was primarily on account of net exports of services, which picked up in q-o-q terms.

Overseas, China's annual consumer inflation recovered in February, exceeding expectations, but producer prices continued to slide, underscoring deepening weakness in the economy and intensifying pressure on policymakers to find new ways to support growth. The consumer price index (CPI) rose 1.4% in February. The producer price index (PPI) declined 4.8% in February- its five year low. The European Union is urging member countries to move quickly on a new investment plan so that major infrastructure projects like broadband and energy networks can be launched this year.

Crude oil eased as investors awaited this week's energy agency reports for a fresh assessment of global oil supply and demand balances. Gold stayed under pressure after breaking heavily post the US nonfarm payrolls. Other commodities also stayed stressed as the US dollar hit fresh multiyear highs against both the euro and the yen.

In the global currency market, the euro fell to a fresh 12-year low early on Wednesday, extending a broad decline just days after the European Central Bank kicked off its 1 trillion euro bond-buying program.

-

Strong demand for high-yield fixed-income mandates from Asian life insurers

Managers surveyed look for mostly core types of mandates from Asian life insurers, rating core mandates 2.9 out of four in importance. 

Asset managers in Asia expect strong demand for high-yield fixed-income mandates from Asian life insurers in the 2014-2015 period. Managers also anticipate demand for alternative investment mandates, and to a lesser extent equity income, traditional equity, and tailored mandates, according to a survey by Cerulli Associates for the report Asian Insurance Industry: Rethinking Investment Strategies.

 
Managers surveyed look for mostly core types of mandates from Asian life insurers, rating core mandates 2.9 out of four in importance. They are also after core-plus and single-asset mandates, giving each a rating of 2.7.

"Asset managers in Asia generally have a positive outlook for the insurance business in the region. Many have been in talks with insurers, including those with asset management arms, in key markets in the region--particularly China, Korea, and Taiwan," says Yoon Ng, Cerulli's Singapore-based Asia research director.

Although clearly aware of the dominance of affiliated managers in several insurance markets in the region, many independent managers are not fazed by this. Some of them recognize that certain affiliate managers are struggling in their management of general account assets--and they see opportunity in this.

"But as more managers join this space and try to get more business from an industry believed to have stickier assets, competition with other third-party managers has intensified," says Manuelita Contreras, a senior analyst with Cerulli who led the report. "Managers we surveyed have noted increased competition among third-party managers for both general accounts and investment-linked product assets," she says.

Released in October 2014, Asian Insurance Industry: Rethinking Investment Strategies surveyed both asset managers and life insurers in Asia. 

Sensex, Nifty open positive

The BSE Mid-cap Index is trading up 0.28% at 10,891, whereas BSE Small-cap Index is trading up 0.44% at 11,369. 

The market has been in struggle zone after it surged to new highs intra-day last week after a surprise rate hike. The Nifty and Bank Nifty are finding it difficult to even close in the green. The strengthening of the dollar has been taking its toll on most emerging markets too. Commodities are going for a toss and a surging US dollar has pulled oil prices on Tuesday to their lowest settlement for the month of March.

At 9:31 AM, the S&P BSE Sensex is trading at 28,771 up 61 points, while NSE Nifty is trading at 8,726 up 14 points.

The BSE Mid-cap Index is trading up 0.28% at 10,891, whereas BSE Small-cap Index is trading up 0.44% at 11,369.

Some buying activity is seen in Consumer durable, realty, bankeex, capital goods, IT and oil and gas sectors, while fmcg  and metal sectors are showing weakness on BSE.

Wipro, Tata Power, State Bank of India, Tata Motors and Tata steel are among the gainers, whereas Cairn India, NMDC, Jindal steel, Lupin and Adani Ports are losing sheen on BSE.

The Lok Sabha passed the land acquisition Bill on Tuesday but things could get difficult in the Rajya Sabha. The Opposition has stalled passage of the mines & minerals Bill. Housing companies and infra firms will be in focus. Reforms could take a back seat as Opposition is set to stall the government’s plan to call for a joint sitting.

The country’s current account deficit (CAD) narrowed to USD 8.2bn or 1.6 percent of GDP in Q3 of 2014-15 from USD 10.1 billion or 2 percent of GDP in Q2. The reduction in the CAD in Q3 2014-15 was primarily on account of net exports of services which picked up in q-o-q terms on the back of an improvement in net earnings.

Maruti Suzuki could shed weight as it is recalling over 33,000 units of the Alto to fix a problem with the right-hand door.

In a first, bid levels for the spectrum auction fell by around Rs 2,000 crore to close Tuesday at Rs 92,000 crore, as steep prices in the key 900 Mhz band forced operators to reduce the amount of airwaves they were vying for, thus leaving some spectrum unsold and reducing revenue assured for the government, says a report.

Cairn Energy said it is engaged with the Indian Government to resolve a tax dispute that has stalled sale of its 10 per cent stake in Cairn India Ltd and led to 40 per cent job cuts.

According to SIAM data, the domestic passenger car sales was up by 6.85% to 1,71,727 units in February this year. The motorcycle sales in last month were down by 8.22% to 7,74,122 units from 8,43,436 units in the same month
previous year, SIAM data says.

L&T’s Metallurgical and Material Handling (L&T-MMH) business has secured orders worth Rs 1,242 crores across various business segments during Q4 of FY 14-15.

Opposition presses govt to send Land Bill to select panel

The Opposition Party insisted that the proposed legislation — already cleared by the Lok Sabha — be sent to a select committee of the Upper House 

The Lok Sabha passed the Land Acquisition Bill on Tuesday. The Opposition leaders, which outnumbers the ruling NDA in the Rajya Sabha, said they would press the government to send Land Acquisition Bill, Insurance Laws (Amendment) Bill and the Coal Mines (Special Provisions) Bill to select committees, according to a media report.

The Opposition Party, led by Congress, insisted that the proposed legislation — already cleared by the Lok Sabha — be sent to a select committee of Rajya Sabha while the Treasury Benches wanted the Bill to be put to vote, the report added

Cognizant drives digital transformation of Chola’s Vehicle Finance business

Cognizant is bringing together its consulting, digital strategy, industry and technology expertise to re-engineer business processes and digitize workflows across systems.

Cognizant announced that it has engaged with Cholamandalam Investment and Finance Company Limited (Chola), a leading financial services provider in India, to digitally transform its vehicle finance business operations, from loan origination through recovery, in order to reduce costs, improve business agility, and deliver an integrated customer experience.

Cognizant is bringing together its consulting, digital strategy, industry and technology expertise to re-engineer business processes and digitize workflows across systems. Cognizant is developing multi-channel applications across mobile, tablets and web for Chola field staff and customers in order to drive real-time decision-making and improve productivity. Through this digital transformation program, Chola will be able to improve customer turnaround time, enhance operational efficiencies, and reduce costs.

Mobile-enabling its workforce will also help Chola boost the efficiency and engagement levels of its field staff, branch managers, dealers and vendors, and digitizing its operations will help reduce human errors and improve the speed and efficiency of loan origination, servicing, and arrears management. To provide Chola better control over its mobile applications, Cognizant has licensed TruMobi™, a suite of ready-to-deploy, on-demand business and IT solutions.

“For the last few years, Chola has been working on leveraging technology to improve its operating efficiencies and serve its customers better. The tie-up with Cognizant is another such step that will help us strengthen our core operations,” said Vellayan Subbiah, Managing Director of Cholamandalam Investment and Finance Company Limited. “The market we serve is constantly changing, and adopting the latest available technologies is the fastest way of keeping pace with the needs and expectations of our customer segments. We selected Cognizant because of its domain and digital expertise, supported by its industry-leading solutions and platforms. Digital channels hold the key to service and pricing innovation for retaining existing customers and attracting new ones.”

“We are pleased to partner with Chola on this strategic digital transformation program,” said Sowri S. Krishnan, Vice President of Mobility at Cognizant. “This program will enable Chola to work in more collaborative and real-time ways, and unlock workforce productivity. It will help Chola to not only improve the speed and efficiency of loan origination and recovery, thus enhancing credit quality, but also build digital capabilities and embed the latest innovations in its business to address the needs of the future. By offering greater personalization and convenience, Chola will be able to take integrated customer experience to the next level

Dow Jones crashes 300 points on speculation of hike in interest rates

Asian market are mixed again with Nikkei higher and Hong Kong's Hang Seng lower.

US indices traded lower on Tuesday, with Dow Jones tumbling 333 points, to close at 17,663, in its worst drop since October 9, 2014. Speculation was rife in markets that the U.S. Federal Reserve could raise interest rates sooner than previously thought. 

Dow, crashed 1.85% while S&P 500 slumped 1.7%. Nasdaq was down 1.67%. Britain's FTSE 100 dived sharply, closing 2.5% lower.

Asian market are mixed again with Nikkei higher and Hong Kong's Hang Seng lower. 

China's Shanghai index is also higher.

Asian Paints to invest Rs. 1,750 cr in AP

The Company would use latest manufacturing concepts to produce Paints and intermediates in the said plant in an environmentally friendly manner.

Asian Paints has entered into and signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh to set up a manufacturing facility for paints and intermediates at Pudi Village, Rambilli Mandal, Vishakhapatnam District, Andhra Pradesh.

An amount of approximately Rs. 1750 crores would be invested by the Company in phases over a period of 12 years from the date of commencement of construction, including the cost of land admeasuring approximately 110 acres, subject to due diligence and obtaining necessary regulatory and other approvals. The maximum capacity of the said manufacturing facility would be 4,00,000 kiloliters per annum, which would be achieved in phases.

The Company would use latest manufacturing concepts to produce Paints and intermediates in the said plant in an environmentally friendly manner.

The Andhra Pradesh Government has offered the following package of incentives to the Company for setting up of the aforesaid paints manufacturing plant:

• Reimbursement of 100% Gross VAT/State Goods and Service Tax (SGST) or similar levy of taxes in the state of Andhra Pradesh for a period of twelve (12) years starting from the date of commercial production, subject to an overall cap of 100% of eligible investments and that the Company achieves 70% of the proposed investment of Rs. 1,750 crores within a period of five (5) years. Total reimbursement would be scaled down to the extent of concessions (other than accelerated depreciation), if any, offered by the Central Government of India.
• 
  
• All other incentives as per the Andhra Pradesh Industrial Investment Promotion Policy 2010-2015.
• 
  

Indices to open weak

The market has been in struggle zone after it surged to new highs intra-day last week after a surprise rate hike. The Nifty and Bank Nifty are finding it difficult to even close in the green. 

The market has been in struggle zone after it surged to new highs intra-day last week after a surprise rate hike. The Nifty and Bank Nifty are finding it difficult to even close in the green. The strengthening of the dollar has been taking its toll on most emerging markets too. Commodities are going for a toss and a surging US dollar has pulled oil prices on Tuesday to their lowest settlement for the month of March.

The outlook is a weak start. Sentiment could improve as Asian markets are staging a recovery. Nifty support is at 8640 levels. Global cues are subdued again. Dow crashed 1.85% while S&P slumped 1.7%. Nasdaq was down 1.67%. Asian market are mixed again with Nikkei higher and Hong Kong's Hang Seng lower. China's Shanghai index is also higher.

The Lok Sabha passed the land acquisition Bill on Tuesday but things could get difficult in the Rajya Sabha. The Opposition has stalled passage of the mines & minerals Bill. Housing companies and infra firms will be in focus. Reforms could take a back seat as Opposition is set to stall the government’s plan to call for a joint sitting.

The country’s current account deficit (CAD) narrowed to USD 8.2bn or 1.6 percent of GDP in Q3 of 2014-15 from USD 10.1 billion or 2 percent of GDP in Q2. The reduction in the CAD in Q3 2014-15 was primarily on account of net exports of services which picked up in q-o-q terms on the back of an improvement in net earnings.

Maruti Suzuki could shed weight as it is recalling over 33,000 units of the Alto to fix a problem with the right-hand door.

In a first, bid levels for the spectrum auction fell by around Rs 2,000 crore to close Tuesday at Rs 92,000 crore, as steep prices in the key 900 Mhz band forced operators to reduce the amount of airwaves they were vying for, thus leaving some spectrum unsold and reducing revenue assured for the government, says a report.

Cairn Energy said it is engaged with the Indian Government to resolve a tax dispute that has stalled sale of its 10 per cent stake in Cairn India Ltd and led to 40 per cent job cuts.

According to SIAM data, the domestic passenger car sales was up by 6.85% to 1,71,727 units in February this year. The motorcycle sales in last month were down by 8.22% to 7,74,122 units from 8,43,436 units in the same month 

previous year, SIAM data says.

L&T’s Metallurgical and Material Handling (L&T-MMH) business has secured orders worth Rs 1242 crores across various business segments during Q4 of FY 14-15. 

Bharti Airtel stock hits 10% upper circuit at Rs. 369. Bharti Airtel is planning to double its 4G network by next fiscal, according to a media report. 

Shares of Persistent Systems was trading lower by 9% at Rs. 848 after company turned ex-bonus.The company announced a 1:1 bonus recently.

Adani Enterprises surged to a high of Rs. 680 on hopes of striking more deals for supply of coal to overseas mines. 

ITC stock ended flat at Rs. 338 on reports that company is scouting for more acquisitions to scale up its non-cigarette fast-moving consumer goods (FMCG) business.  

TCS has extended its south-bound journey for the fourth straight trading session today. The stock was down 0.01% at Rs. 2642.

Jubilant Industries has jumped 20% its maximum daily upper limit at Rs. 81 on the back of heavy volume at the NSE counter.

KNR Constructions Ltd stock was up 2% at Rs. 450 after company has received its First International Orders worth of Rs. 515.33 Crores.

Shares of HSIL was flat at Rs 412 after the company announced the QIP issue price at Rs. 412.53 per equity share. 

Ashoka Buildcon is reportedly panning to buy out a controlling stake in Jaora Nayagaon Toll Project in Madhya Pradesh, according to a television report. The stock ended 3% lower at Rs174.

Monnet Ispat and Energy stock rallied 9% at Rs. 71.Report said that the company is planning to sell some stake in its power generation subsidiary to fuel expansion plans and future growth, company's Chairman and Managing Director Sandeep Jajodia said.