Sudden crash in Sensex, Nifty

NTPC and UltraTech Cement have slipped nearly 1.5 per cent each to Rs. 146 and Rs. 2,902, respectively.

There was a sudden crash in Sensex and Nifty. The Sensex slipped 11 points at 27,964, while NSE Nifty is also down 4 points at 8,487.

The India VIX (Volatility) index is up 0.9 per cent at 14.3875.

BPCL has soared nearly 5 per cent to Rs. 805, and Tata Power has surged nearly 4 per cent to Rs. 77.

Tata Motors has rallied around 3.5 per cent to Rs. 559. Reliance Industries, Hindustan Unilever and Gail India have advanced around 2 per cent each to Rs. 828, Rs. 880 and Rs. 388, respectively.

Dr.Reddy's. Maruti, Coal India, Axis Bank, Sun Pharma, Wipro, NMDC and Lupin are the other prominent gainers in the Nifty-50 space.

On the other hand, NTPC and UltraTech Cement have slipped nearly 1.5 per cent each to Rs. 146 and Rs. 2,902, respectively.

TCS clarifies reports on buyouts

Tata Consultancy Services Ltd clarified that TCS is a global company and the among the largest in terms of market capitalization. 

The Exchange had sought clarification from Tata Consultancy Services Ltd with respect to news flash on ET Now on March 30, 2015 titled "Tata Consultancy Services show interest in buying Sierra Cedar that operates in US, Canada & India. HCL & Tech Mahindra also looking for buyouts"

Tata Consultancy Services Ltd clarified that TCS is a global company and the among the largest in terms of market capitalization. There is lot of interest in the Company from the media and analyst community, which tracks and reports on the M&A deals in the IT sphere.

We do not have any specific comment to offer with regard to the above news item.

We would like to affirm our commitment to fair disclosure."

Infosys Foundation, ACM honor pioneer in Cryptography

This ushered in a new area of cryptography research to which Boneh’s contributions have been central.

ACM, the Association for Computing Machinery, and the Infosys Foundation announced that Dan Boneh is the recipient of the 2014 ACM-Infosys Foundation Award in the Computing Sciences for his contributions to the ground-breaking development of pairing-based cryptography and its application in identity-based encryption. His work helped establish the field of pairing-based cryptography, a dominant area in cryptography for the last decade, by demonstrating the use of pairing functions to solve wide variety of problems in cryptography. Boneh, with Matt Franklin, showed how pairings could be used to develop a fully functional identity-based encryption scheme (IBE).

This ushered in a new area of cryptography research to which Boneh’s contributions have been central. Pairing-based cryptography makes security mechanisms easier to use and deploy, and improves computer security to keep data, devices and critical systems safe, private and accessible.

The ACM-Infosys Foundation Award recognizes the finest recent innovations by young scientists and system developers in the computing field. An endowment from the Infosys Foundation provides financial support for the $175,000 annual award. ACM will present the ACM Infosys Foundation Award at its annual awards banquet on June 20 in San Francisco. 

ACM President Alexander L. Wolf said, “Boneh’s work on pairing functions and their application to identity-based encryption has revolutionized cryptography. He has added greatly to our understanding of important problems underlying modern cryptography systems. Boneh has produced new directions and given the field a fresh start.”

Dr. Vishal Sikka, CEO and Managing Director, Infosys, said, “Boneh has helped forge connections between academic and commercial cryptography, helping improve commercial products while increasing the relevance of academic research. His innovations made foundational contributions to both theoretical cryptography and cybersecurity.”

Boneh pioneered the use of new computational problems based on pairings to solve a broad range of problems in cryptography. This approach, called pairing-based cryptography, relies on complex problems arising from algebraic geometry (bilinear maps based on elliptic curves). Pairing-based cryptography has had tremendous academic and commercial impact.

Boneh demonstrated how pairings could be used to solve long-standing open problems in cryptography. Pairing-based cryptography, now amainstream tool in cryptography, has generated a large volume of research activity showing entirely new capabilities as well as solutions that are superior in functionality to ones already in use.

Identity-based encryption is a type of public-key encryption in which any arbitrary string (such as a user’s email address) can be used as a public key, enabling data to be protected without the need for long, randomly generated keys or certificates. Today, there are numerous standards for IBE based on Boneh’s work, including IEEE P1363.3 and several IETF RFCs.

In addition to pairing-based cryptography, Boneh developed cryptosystems with novel properties, mechanisms for enhancing Web security and security for mobile devices. He developed new privacy tools, contributed to the study of cryptographic watermarking and runs a popular MOOC on cryptography.

HDFC Bank, ICICI cut FD rates

HDFC Bank has cut its rates on fixed deposits of over Rs 5 crore and above effective from Sunday

ICICI Bank and HDFC Bank have cut rates by up to 25 basis points for specific fixed deposit schemes, according to media report.

ICICI Bank has cut rates for deposits of over Rs 1 crore by 25bps effective Monday. Fixed deposit rate of 121-150 days' maturity has been revised to 8% from 8.25% earlier.

Term deposit rate of ICICI for 61-90 days on fixed deposits of over Rs 5 crore and above has also been cut to 8% from 8.25%. Similarly, for term deposit of 91-120 days, the interest rate is 8%.

HDFC Bank has also cut its rates on fixed deposits of over Rs 5 crore and above effective from Sunday.

Indonesia's Mutual Fund Industry targets will be hard to meet: Cerulli

Cerulli sees OJK's moves as positive for the mutual fund landscape in the country. While the 2017 targets will be hard to meet, working toward them will certainly be beneficial for the industry in the long run. 

Indonesia has set bold targets for its mutual fund industry-seven million investors and assets under management (AUM) of IDR1 quadrillion (US$75.5 billion) by 2017.

On the surface, these seem to be realistic targets. Indonesia has the fourth-largest population in the world and has a strongly growing middle class. However, beneath these headline numbers, there is more sobering data.

Out of a population of 250 million, fewer than 300,000 are mutual fund investors. Further, mutual fund industry data suggest that the industry is largely dominated by institutional investors and high-net-worth individuals (HNWIs). This is because, with total AUM of about IDR231.4 trillion at end-2014, each investor holds an average of IDR0.9 billion (US$69,000) of mutual funds.

To achieve its targets, Indonesia's Financial Services Authority (OJK) has introduced, or is expected to introduce, initiatives that promote mutual funds to the mass retail public.

These include lowering minimum investment levels to help lower-income investors enter the market, as well as actively pushing for mutual fund road shows in office buildings, shopping centers, and universities. OJK has also begun to loosen restrictions on overseas investments for mutual funds (currently capped at 15% of a portfolio), and the initiative will start with Shariah-compliant funds.

Cerulli reckons it will be a challenging task for Indonesia to meet its targets by 2017. Indonesians have been spoiled by the high interest rates offered by savings accounts in banks. Even HNWIs put the bulk of their money in savings accounts. The key challenge will therefore be to change this mindset-that is, to convert savers to investors.

Nonetheless, Cerulli sees OJK's moves as positive for the mutual fund landscape in the country. While the 2017 targets will be hard to meet, working toward them will certainly be beneficial for the industry in the long run. 

Customers of private banks will now have to pay extra to avail of the bank's services

Banks are repeatedly asking their customers to furnish them with correct information on their email id, mobile number and address, so that customers can receive timely notifications.

Leading private banks like ICICI Bank, HDFC Bank and Kotak Mahindra Bank have decided to hike service charges from next month. They have already started intimating customers, through their websites, on changes in their service charges, with effect from April 1, 2015.

ICICI Bank will now charge Rs 350 per month from April 1, instead of Rs 250 per month, on the non-maintenance of minimum monthly average balance (MAB) in savings account, of above Rs 5,000 but below Rs 10,000, for metro and urban locations. In case your minimum monthly average balance of less than Rs 5,000, as a customer, you will be charged Rs 450 per month instead of Rs 350, from April 1 onwards. At the same time, customers in semi-urban locations will be charged Rs Rs 300 per month as against the earlier Rs 250 per month, on the non-maintenance of minimum monthly average balance in savings account of above Rs 2,500 and above Rs 5,000 and Rs 400 per month if the minimum monthly average balance in savings account is less than Rs 2,500, from the earlier Rs 350 per month.

The bank in its website stated, “In the event of non-maintenance of minimum MAB, the bank will notify the customer by SMS or email or letter that in the event of the minimum balance not being restored in the account in the subsequent month, non-maintenance of MAB charges will be applicable. In case the customer has not maintained MAB for any consecutive month, non-maintenance of MAB charges shall be applicable for all consecutive months. The Bank will notify the customer in the initial month only in case of non-maintenance of MAB in consecutive months.”

In case of HDFC Bank, its customers will have to pay Rs 75 for additional cheque book of 25 leaves. Kotak Mahindra Bank too has stated on its website that there will be an upward revision in its charges, depending on the type of account and balance, for customers.

“In the event of a default in maintenance of Average Quarterly Balance (AQB) as agreed to between the bank and customer for the quarter, the bank will notify the customer clearly of the default and that the AQB for the account has to be met in the subsequent quarter (referred to as ‘notice quarter’) else the NMC (non maintenance charges) for both the ‘default quarter’ and ‘notice quarter’ will be recovered,” Kotak Mahindra Bank said.

Banks are repeatedly asking their customers to furnish them with correct information on their email id, mobile number and address, so that customers can receive timely notifications.

In November 2014, the Reserve Bank of India (RBI) had asked banks to inform customers on the penalties for MAB. The RBI, in its notification, has clearly stated that banks will have to alert customers by way of SMS, email or a letter that in the event of the minimum balance not being restored in the account within a month from the date of notice, penal charges will be applicable.

“In case the minimum balance is not restored within a reasonable period, which shall not be less than one month from the date of notice of shortfall, penal charges may be recovered under intimation to the account holder,” it added.

Nifty above 8,500 levels

The broader market is out-performing the CNX Nifty index. The Midcap and Smallcap indices have gained 0.5 per cent each at 12,996 and 5,614, respectively.

Following monster ride of more than 500-point yesterday and mirroring strong global markets, the market has started the day on a firm note.

The BSE Sensex opened higher by almost 100-odd points at 28,070 and the NSE Nifty gained 35 points at 8,527.

At 9:30 AM, the S&P BSE Sensex is trading at 28,067 up 91 points, while NSE Nifty is trading at 8,513 up 21 points.
The broader market is out-performing the CNX Nifty index. The Midcap and Smallcap indices have gained 0.5 per cent each at 12,996 and 5,614, respectively.

Among sectors, the CNX Metal index has spurted 1.3 per cent at 2,358. The Pharma, Auto, Realty and Energy indices are the other notable gainers.

On the other hand, the FMCG index has declined 0.2 per cent at 19,827. The PSU Bank and Bank Nifty indices are also down 0.2 per cent each.

Sesa Sterlite and Dr. Reddy's are the top gainers in the Nifty space, the stock have surged almost 2 per cent each at Rs. 192 and Rs. 3,490, respectively.

Infosys, Reliance, NMDC, BPCL, Coal India, Tata Power, Cairn India and Lupin are the other significant gainers.

On the other hand, Ultratech Cement has slipped 1.5 per cent at Rs. 2,901. NTPC, ITC and ONGC have also dropped over a per cent each. 

SBI to divest 10% stake in SBI Life

The Executive Committee of the Central Board of SBI has authorised divestment of the bank's stake in SBI Life Insurance by 10% 

State Bank of India has informed BSE that the Executive Committee of the Central Board (ECCB) has on March 30, 2015 authorised divestment of SBI's stake in SBI Life Insurance Co Ltd by up to 10%.

SBI recently said, “The ECCB decided to initiate the necessary action as per JV (joint venture) agreement for dilution of SBI’s stake in SBI General Insurance from 76% to 51% with corresponding increase of stake of IAG from 26% to 49%, including appointment of a valuer to facilitate valuation and price discovery.”


Earlier this month, Parliament had passed the Insurance Laws (Amendment) Bill, 2015 which seeks to increase foreign investment in private sector companies to 49 percent from existing 26 percent, among other things.

The proposal to increase stake comes in the backdrop of capital requirement of the company 

Sensex to open on a flat note

The outlook is a smooth start with the Nifty managing to bounce back before touching its 200-DMA. The Bank Nifty too has staged a smart recovery. 

Just when the market was running out of patience, the markets world over seem to have got a fresh lease of life. Expectations of monetary policy easing and infrastructure spending improvement in China have topped headlines as even as China unveiled details of its “New Silk Road” plan to boost trade and economic relations with Eurasia and Africa. The indices were anyways waiting for a reason to rise after being subdued for around 8 days.

 

The outlook is a smooth start with the Nifty managing to bounce back before touching its 200-DMA. The Bank Nifty too has staged a smart recovery. The 8540 level will be watched on the upside as it is the 100 DMA. Profit booking could set in later in the day. Stocks like ICICI & HDFC Bank will see action after they cut rates. Colgate Palmolive India could smile as it considers third interim dividend today. State Bank of Mysore will also consider interim dividend today. VHCL Industries may consider issue of bonus shares today. EGMs for the day include Canara Bank, Vesuvius India and ZF Steering Gear India. Data awaited for the day includes core sector growth for February and government finances. 

Global cues are positive. US markets closed higher with Down adding 1.5% and S&P closing 1.2% up. Nasdaq notched gains of 1.15%. Asian markets are all trading marginally higher for now. 

Wipro is prepared to cope with the eventual exit of billionaire chairman Azim Premji, whenever that happens, outgoing finance chief Suresh C Senapaty said in an interview to ET. 

Bhushan Steel is reportedly in advance discussions with promoters of Orissa Sponge Iron & Steel Ltd (OSISL) and Monnet Group to acquire the company and secure raw material for their Odhisa plant. 

GVK Power & Infrastructure Ltd is likely to file a draft prospectus for an up to $250 million initial public offer (IPO) of its airport unit soon. 

Indian Hotels will see action as Belmond (Orient Express Hotels)  has announced a share buyback program for its shareholders which will allow the Taj Group to exit the company, says a report. 

Avantha Group Company CG has bagged a significant order from Power Grid Corporation of India Limited (PGCIL) for the supply of 80 MVAR 765kV Shunt Reactors valued at Rs 115 Crore. The scope of this contract to be executed in 20 months includes design, engineering, manufacture, shop testing, supply, erection testing and commissioning at site, and other associated civil works.

Magma Fincorp Ltd announced that its Board of Directors have approved preferential allotment of equity shares worth Rs 500 crore (~US$80 million) to a clutch of investors including KKR; Indium V, an investment vehicle advised by India Value Fund Advisors (“IVFA”); and LeapFrog Investments (“LeapFrog”). The transaction is subject to customary regulatory approvals.Indium and LeapFrog, both new investors in the company, will invest Rs 220 crore and Rs 200 crorerespectively. KKR, which first invested in Magma in 2011, will inject an additional Rs 80 crore. The company will issue 4.63 crore equity shares at a price of Rs 108 per share (face value of Rs 2 and a premium of Rs 106).

Piramal Fund Management has committed Rs 1,200cr to Omkar Group’s luxury residential development in Worli, Mumbai as project specific debt, in one of the largest single project financing transactions in India. Rs 400cr of this amount is being used to part refinance existing senior lenders against pari passu senior charge on the cash flows and development rights. The balance Rs 800cr is innovatively secured against a 20:80 scheme and is intended to be drawn as a line towards construction progress over the next two years.

The newly formed Telangana state utility, Telangana State Power Generation Corporation Limited (TSGENCO) has awarded Bharat Heavy Electricals Limited (BHEL) with an EPC (Engineering, Procurement & Construction) order for setting up a 4x270 MW thermal power plant in the state.   

GMR Infra jumped nearly 2 per cent to touch a high of Rs. 15.85 in opening trades on plans of reducing debt. 

Panacea Biotech has hit the 20 per cent upper circuit in noon deals on the back of notable jump in traded volume.

Jet Airways stock was up 4% at Rs 467 after the company today launched daily international flights to Abu Dhabi from Pune, Ahmedabad and Mangalore. 

Astra Microwave Products Ltd has announced that a meeting of the Board of Directors of the Company will be held on April 02, 2015, inter alia, to consider fund raising programmes through various matters. The stock surged 5% at Rs 140.

EID Parry India Ltd announced that the Company divested its entire shareholding of 102,222 equity shares of Rs. 100 each in Alagawadi Bireshwar Sugars Private Limited, a wholly owned non-operating subsidiary for a consideration of Rs. 1.70 cr.The stock was flat at Rs 167.

Gulshan Polyols Ltd stock was higher by 15% at Rs306.Report said that Reliance mid and smallcap fund acquired nearly seven percentage points stake in the company via open market. 

Adhunik Metaliks surged over 5 per cent to touch a high of Rs. 22.20 after the company's board approved its debt recast plan.

Fortis Healthcare gained nearly 2% at Rs. 167. The company has announced that The Board of Fortis Healthcare International Pte Ltd, a step down subsidiary of Fortis Healthcare Ltd (Fortis) based out of Singapore has decided to disinvest 100 % shareholding in Fortis Healthcare Singapore Pte Ltd which holds and operates “Fortis Surgical Hospital” to Concord Medical Services (International) Pte Ltd (CCM), for a consideration of SGD 55 Mn. The deal is expected to be completed on or about April 06, 2015.

Jet Airways stock ended 4% higher at Rs 469 after the company today launched daily international flights to Abu Dhabi from Pune, Ahmedabad and Mangalore.

GMR Infra jumped 1.3% to Rs. 15.75 on plans of reducing debt. According to media reports, GMR Infra plans to raise up to Rs. 4,000 crore over the next one year through divestment of assets and share sale to reduce debt and improve cash flow.

SpiceJet zoomed 8 per cent to Rs. 21.75 on plans to lease seven more Boeing 737 aircraft by May. Also the new promoter Ajay Singh is expected to infuse another Rs 500 crore in the company next month.

Astra Microwave Products jumped nearly 6 per cent to Rs. 141 as the company said that its board will meet on 02 April, 2015, to consider fund raising programmes through various matters.

Pennar Industries surged over 7 per cent to Rs. 53.85 on news that the company’s subsidiary Pennar Engineered Buildings Systems filed a Draft Red Herring Prospectus with Securities Exchange Board of India (SEBI).