Nifty below 8,550 levels

The key indices are hovering around the previous close; ICICI Bank, DLF are the major gainers, while NTPC sags 3%.

The market continue to consolidate in a narrow range, albeit a slightly negative bias.

At 3:04 PM, the S&P BSE Sensex is trading at 28,132 down 29 points, while NSE Nifty is trading at 8,539 down 4 points.

The broader market are trading on a mixed note. The CNX Midcap index has advanced 0.2 per cent to 12,894, and the Smallcap index has slipped 0.3 per cent to 5,468.

The breadth remains fairly weak - out of 1,709 stocks traded on the NSE, 954 have declined and 525 have advanced.

Among sectors, the CNX Energy, Infra and PSU Bank indices are the major losers - down around a per cent each. On the other hand, CNX Pharma index has gained 0.5 per cent at 12,922, and the Bank Nifty has added 0.3 per cent to 18,388.

DLF has jumped in the last one-hour of trades, and is now up 2.5 per cent at Rs. 164.

ICICI Bank has rallied over 2 per cent to Rs. 319. Mahindra & Mahindra and HCL Technologies have advanced 1.8 per cent each to Rs. 1,214 and Rs. 987, respectively.

Tata Motors has advanced 1.5 per cent to Rs. 540 after the board approved rights issue at Rs. 450 per share.

Sun Pharma, BPCL, Axis Bank and Cairn India are up over a per cent each.

NTPC has extended losses and is now down 3.3 per cent at Rs. 148. Gail India and Punjab National Bank have shed 2.5 per cent each at Rs. 380 and Rs. 158, respectively.

NMDC and Ambuja Cements have also slipped over 2 per cent each to Rs. 125 and Rs. 248, respectively.

A total of 119 stocks have dropped to a fresh 52-week low so far in the day while mere 10 stocks have touched a new 52-week high.

Sensex, Nifty volatile

Breadth too turns negative in the noon deals. CNX PSU Bank, Metal and Energy indices are major losers. 

At 1:07 PM, the S&P BSE Sensex is trading at 28,171 up 9 points, while NSE Nifty is trading at 8,540 down 3 points. 

The broader market is also trading in red zone. 

The CNX Smallcap index has moved down 0.2 per cent at 5,472. The CNX Midcap index is trading on a soft note at 12,857.

 The private sector banks are out-performing the public sector banks. 

The Bank Nifty has added 0.3 per cent, whereas, the CNX PSU Bank index is down 0.8 per cent. 

Among banking shares, Bank of Baroda is the top loser - down 1.7 per cent at Rs. 165.

 Punjab National Bank has declined 1.2 per cent at Rs. 160. Oriental Bank of Commerce has slipped nearly a per cent at Rs. 217.

 On the other hand, Federal Bank is the top gainer - up 2.2 per cent at Rs. 135. ICICI Bank has jumped 1.4 per cent at Rs. 316. The CNX Metal index has tumbled 1.2 per cent. 

The CNX Infra and the CNX Energy indices have shed a per cent each. The market breadth is negative in the noon deals. 

Out of 1,706 stocks have traded on the NSE - 906 stocks have declined, while 547 stocks have advanced.

Outcome of Board Meeting Tata Motors

Tata Motors Ltd has informed BSE that the Board of Directors of the Company at its meeting held on March 25, 2015, has approved the following :

1. Terms of the proposed Rights Issue of ordinary shares of face value of Rs. 2 each (the "Ordinary Shares") and ‘A’ ordinary shares of face value of Rs. 2 each (the "'A' Ordinary Shares"):

Purpose : Rights Issue Entitlement

Corporate Action Type : Rights Issue of Ordinary Shares and 'A' Ordinary Shares

Ratio of Rights entitlement : a) 6 fully paid-up Ordinary Shares for every 109 fully paid-up Ordinary Shares held as on the book closure date.
b) 6 fully paid-up ‘A’ Ordinary Shares for every 109 fully paid-up ‘A’ Ordinary Shares held as on the book closure date.

Issue Price : a) Rs. 450 per Ordinary Share (including premium of Rs. 448 per Ordinary Share.)

b) Rs. 271 per ‘A’ Ordinary Share (including premium of Rs. 269 per ‘A’ Ordinary Share.)

Size of the Issue : Up to Rs. 7,500 crores

Number of Shares to be offered through the Issue : a) Up to 150644759 Ordinary Shares
b) Up to 26530290 'A' Ordinary Shares

The above terms would be subject to the approvals of SEBI, Reserve Bank of India and all other appropriate authorities as may be necessary and/or subject to such conditions as may be imposed by any of them while granting such approvals, which may be agreed to by the Board of Directors and/or a committee thereof.

2. The buy-back of Secured Non-Convertible Debentures issued by the Company in May 2009, maturity date being March 31, 2016, face value of Rs. 1250 crores, as part of its Debt restructuring programme to ensure a healthy debt equity mix, balanced maturity profile, better terms that would include lower cost of debt.

Sun Pharma announces closure of merger deal with Ranbaxy

The merger has fortified Sun Pharma’s position as the world’s fifth largest specialty generic pharmaceutical company and the top ranking Indian Pharma company with significant lead in market share.

Sun Pharmaceutical Industries Ltd., today, begins the integration of Ranbaxy’s business following the successful closure of its merger. The integration, planned by Sun Pharma over many months, will focus on supporting strong growth. The merger has fortified Sun Pharma’s position as the world’s fifth largest specialty generic pharmaceutical company and the top ranking Indian Pharma company with significant lead in market share. The combined entity’s manufacturing footprint covers 5 continents with products sold in over 150 nations with a stronger presence in US, India, Asia, Europe, South Africa, CIS & Russia and Latin America. Sun Pharma now offers a large basket of specialty and generic products encompassing a broad range of chronic and acute prescription drugs as well as a ready foray into the global consumer healthcare market. Post-merger, Daiichi Sankyo becomes the second largest shareholder in Sun Pharma and both companies will work together to leverage this relationship for global business growth. The integrated culture theme, “Growing Together”, represents the core objective of this merger focusing on improving productivity, compliance commitment, focus on quality and sustainable growth. Through this merger Sun Pharma emerges as India’s first truly global pharmaceutical company.

The combination allows Sun Pharma to:

1. Significantly expand its R&D capabilities and global presence, especially across emerging markets
2.  Enhance product portfolio and market depth in India, US as well as Rest of the World markets
3.  Improve strategic flexibility, ability to pursue partnerships and strengthen M&A bandwidth

Following the closure of this transaction, Ranbaxy will be delisted from the Indian Stock Exchanges. Ranbaxy shareholders will receive 0.8 share of Sun Pharma for each share of Ranbaxy. On pro forma basis for 12 months ended December 2014, Sun Pharma’s gross margin stands at 76% (Industry average 62%); EBIDTA margin at 32% (industry average 19%) and Net margin at 20% (Industry average 12%).

Israel Makov, Chairman, Sun Pharma said, “The combined entity will capitalize on the expanded global footprint and enhance our dominance as a world leader in the specialty generics landscape. Sun remains committed to uncompromised product quality, 100% compliance and promotes innovation to create the most dynamic global specialty generics pharmaceutical company. We believe that our shareholders, customers and
employees will share our excitement in the potential of this combination and thank them for their continued support.”

TOP PRIORITIES FOR COMBINED ENTITY

Sun Pharma has identified three key priority levers to drive growth in the combined entity

1. Achieving 100% compliance in manufacturing in line with Regulator expectations
2.  Increase R&D productivity to introduce new innovative products
3. Strong business growth across US, India, and Rest of the World markets

Commenting on the combined entity’s priorities, Mr Dilip Shanghvi, Managing Director, Sun Pharma
further added: "It is an important milestone in the history of Sun Pharma as we enter into a new phase of
growth. We will continue to focus on gaining trust of the Regulators globally while continuing to develop products
based on patient needs and leverage them to become brand leaders globally.”

INTEGRATION FOCUS

Over the last 10 months, Sun Pharma and Ranbaxy’s joint functional teams put together the integration blueprint with direction from Integration Management Office (IMO). The IMO will continue to oversee the implementation of the functional integration process. The integration will emphasize on productivity enhancement, aligning best functional requirements and employee talents in the combined entity. Any structural re-alignment will focus on clear benefits assessment to synchronize Company's long term goals and integration of a culturally diverse combination. This merger strengthens Sun Pharma's foundation with a strong & multi-cultural team of over 30,000 people representing over 50 global cultures making the combined entity a truly global corporation in spirit & scale. Remediation at manufacturing units which are currently in deviation from cGMP norms will remain a critical focus. Sun Pharma is working with global consultants assisting its internal teams to achieve compliance objectives. It has formalized an operational blueprint for realizing its US$ 250 million synergy target for year-3 through significant value creation across functions. The integration will cover all functions and markets globally.

LEADERSHIP TEAM

Leading the integration process will be Sun Pharma’s Leadership Team comprising members from Sun Pharma and Ranbaxy. This team draws upon the expertise, collective industry experience and proven track record within Sun Pharma & Ranbaxy organisations. The leadership team is also responsible for leading Sun Pharma’s next phase of growth as it deepens penetration in existing markets while the merger enables it to enter new therapies. Each Leadership Team member will lead an expanded Functional Management Team. This Functional leadership pipeline draws best of talents from both Sun Pharma and Ranbaxy identified through detailed capability assessment undertaken by a global talent management firm.

The combined entity's leadership structure design was guided by the following factors:
• Allow focus on priority areas and institutionalize imperatives in R&D & Quality
• Support strong and sustainable revenue growth across US, India & Rest of the World.
• Promote learning through best practices of Sun Pharma & Ranbaxy
• Create opportunities for talent to grow together
• Minimise disruptions by undertaking modification only in case of clear benefits

The combined entity comprises best intellectual capital, capability of nearly 1,800 scientists and the ability to invest significantly in R&D. The focus of R&D investments will be to harness multiple capabilities and technologies for developing complex products in addition to the combined entity's core business of offering affordable generic medicines. The combined entity will continue developing innovative and complex generics that boast of technical differentiators.

Tata Motors approves Rights Issue at Rs. 450 per share

The board has also approved 6 fully paid-up Ordinary Shares for every 109 fully paid-up Ordinary Shares held as on the book closure date. 

Tata Motors Ltd has informed BSE that the Board of Directors of the Company at its meeting held on March 25, 2015, has approved the following :

1. Terms of the proposed Rights Issue of ordinary shares of face value of Rs. 2 each (the "Ordinary Shares") and ‘A’ ordinary shares of face value of Rs. 2 each (the "'A' Ordinary Shares"):

Purpose : Rights Issue Entitlement

Corporate Action Type : Rights Issue of Ordinary Shares and 'A' Ordinary Shares

Ratio of Rights entitlement : a) 6 fully paid-up Ordinary Shares for every 109 fully paid-up Ordinary Shares held as on the book closure date.

b) 6 fully paid-up ‘A’ Ordinary Shares for every 109 fully paid-up ‘A’ Ordinary Shares held as on the book closure date.

Issue Price : a) Rs. 450 per Ordinary Share (including premium of Rs. 448 per Ordinary Share.)

b) Rs. 271 per ‘A’ Ordinary Share (including premium of Rs. 269 per ‘A’ Ordinary Share.)

Size of the Issue : Up to Rs. 7,500 crores

Number of Shares to be offered through the Issue : a) Up to 150644759 Ordinary Shares
b) Up to 26530290 'A' Ordinary Shares

The above terms would be subject to the approvals of SEBI, Reserve Bank of India and all other appropriate authorities as may be necessary and/or subject to such conditions as may be imposed by any of them while granting such approvals, which may be agreed to by the Board of Directors and/or a committee thereof.

2. The buy-back of Secured Non-Convertible Debentures issued by the Company in May 2009, maturity date being March 31, 2016, face value of Rs. 1250 crores, as part of its Debt restructuring programme to ensure a healthy debt equity mix, balanced maturity profile, better terms that would include lower cost of debt 

NTPC stock trades in red

Around 46 lakh shares were traded in a multiple block at Rs.148.45 -148.70 on the NSE. 

Shares of NTPC were trading lower 3% at Rs.148 on BSE today. Around 46 lakh shares were traded in a multiple block at Rs.148.45 -148.70 on the NSE.

Coal Secretary Anil Swarup had announced yesterday that the allotment of coal blocks to state entities will take place today. As per media reports, the process is underway as Talaipali, Kerandari, Chatti Bariatu & Chatti Bariatu South has been alloted to one of India's largest utility company NTPC. Additionally, the company has been alloted Dulanga Coal Block.

The stock opened at Rs.329 as against the previous close of Rs.326.40 on BSE. It has hit a high of Rs.329 and a low of Rs.327 on BSE today.

Total traded quantity on the counter stood at over 80.15 lk shares on BSE.

Meanwhile, the benchmark BSE Sensex is trading at 28,183 up 21 points.

IPCA slumps after FDA bans imports from 2 more plants

IPCA slumps after FDA bans imports from 2 more plants

Shares in generic drugmaker IPCA Laboratories slumped over 12 per cent today, heading towards their biggest daily fall since July 2014, after the US Food and Drug Administration (FDA) issued an import alert against two of its plants.

At 11.30 am, the stock was trading down 12.34 per cent or Rs 93.80 at Rs 666.20 on the BSE.

The stock opened at Rs 688.50 and hit an intra-day high of Rs 712.60 and a low of Rs 666. The stock had closed at Rs 760 on Tuesday.

The US FDA said the import alert would apply to IPCA's Pithampur and Silvassa units in a notice posted on the regulator's web site on Tuesday.

US regulator had in January banned imports from a central Indian manufacturing plant of IPCA, citing violations of standard production practices.

Nifty hovers around 8,550

CNX Pharma index is top gainer, while CNX Metal and CNX Energy indices are top losers. 

The market continues to trade on a flat note as investors are cautious ahead of tomorrow’s expiry in the derivative segment.

At 11:33 am, the NSE Nifty is up mere seven points at 8,550. The S&P BSE Sensex is trading at 28,198 up 36 points

The CNX Metal and the CNX Energy indices are the major losers, down 1 per cent.

Among metal shares, NMDC has dropped 3 per cent at Rs. 124. Orissa Minerals has slipped 2.4 per cent at Rs. 2,076. GMDC and Coal India have declined 1.8 per cent each at Rs. 114 and Rs. 363, respectively.

Bhushan Steel, National Aluminium, Jindal Steel and Hindustan Copper have shed 1.4-1.6 per cent.

The CNX Pharma index continues to shine on the NSE - up 1 per cent. Sun Pharma is the top gainer in the Pharma space - up 2 per cent at Rs. 1,058. Piramal Enterprises has added 1.3 per cent at Rs. 867.

Aurobindo Pharma, Cadila Healthcare and Dr. Reddy's have spurted over a per cent each 

India Credit spotlight! ​Plenty of growth opportunities for ​top corporates

Many corporates are waiting for the government to put policy into action before investing further, says a report by Standard & Poor's.​

India's reform drive and economic momentum could give plenty of growth opportunities to India's top corporates, according to three articles that Standard & Poor's Ratings Services published today as part of a special report, titled "India Credit Spotlight." But many corporates are waiting for the government to put policy into action before investing further.

"The key to corporate growth will be whether the government can deliver on its reform promises. If it does, we believe the top players will be ready to capitalize," said Standard & Poor's credit analyst Mehul Sukkawala. "In the meantime, we believe the Indian corporate sector will maintain its conservative stance toward growth rather than throw caution to the wind."

In the article titled "Myth Busted: India's Top Corporates Are Hardly Regional Weaklings," Standard & Poor's analyzed the operating, cash flow, and leverage data of India's top 100 corporates, whose members are based mostly on market capitalization. The article suggests that on these parameters, the Indian corporate sector is by no means a laggard to its Chinese and ASEAN neighbors.

"The issues identified with Indian corporates--overindebted and underperforming companies--are concentrated in just a handful of Indian sectors, albeit critical ones: utilities and infrastructure, and metals and mining," said Mr. Sukkawala. "Fixing the well-known problems within these sectors will predominantly require government decision-making and execution of regulations; the companies can't do it themselves." 

Overall, we believe the view of India as a global bright spot for investing appears fully justified from a credit risk perspective. However, in the article titled "India's Private Sector Companies Adopt A Wait-And-See Approach To Capital Spending," Standard & Poor's forecasts that capital spending will take 12 more months to start recovering.

"Companies are likely to consider new projects only after they can sense the operating environment in India is improving at the ground level. They would also need to be confident that current investments are likely to generate good cash flows before committing fresh investments. This is positive from a credit assessment perspective over the next 12 months, especially for companies with weak financial ratios and liquidity," said Mr. Sukkawala.