Banking stocks up in afternoon trade

Scrips of Federal Bank increased 2.8% to Rs. 135 against its previous close of Rs. 131 on BSE 

The S&P BSE Sensex surged as much as 375 points in trade on Monday, while Nifty reclaimed its crucial resistance level of 8,250.

The BSE Bankex Index has gained 1.07% or 225 points to 21,255 in the afternoon trade.

At 1:20PM, Punjab National Bank gained 3.5% to Rs. 165 on BSE against the previous close of Rs. 160 on BSE. The stock hit a high of 165.50 and a low of Rs. 161. The Bank recently started opening Sukanya Samriddhi Scheme accounts after the scheme was formally launched in January this year. According to a statement from the bank, the scheme is available at 1,604 PNB branches across India.

Scrips of Federal Bank increased 2.8% to Rs. 135 against its previous close of Rs. 131 on BSE. The stock hit a high of 136 and a low of Rs. 133. Last week, the Bank posted a 1.2 per cent rise in standalone net profit at Rs 280 crore for the quarter ended March 31.

Shares of IndusInd Bank gained 2.6% at Rs. 845 on BSE. The stock hit a high of Rs. 849 and a low of Rs. 828. Yes Bank rose almost 2% to Rs. 858 against the previous close of Rs. 840, while Bank of Baroda increased 1.18% to Rs. 171 on BSE and had hit a high of 171.50.

At 1:01PM, shares of State Bank of India are trading up 1.87% at Rs. 275 on BSE. The stock hit a high of Rs. 276 and a low of Rs. 272 today. Last week, BoI has reduced its base rate — the benchmark rate to all loan rates linked — by 25 bps to 9.95 per cent.

HDFC Bank was trading up 1.47% at Rs. 1,004 on BSE. The stock hit a high of Rs, 1,009 and a low of Rs. 993. Bank has increased service charges by 43%-50% on select products like debit cards and immediate payment service (IMPS), according to a media report.

Shares of ICICI, Axis, Kotak Mahindra are trading flat on BSE.

SEBI to revise norms for alternative investment funds

The capital market regulator is setting up a high-power committee which is expected to be headed by Infosys founder NR Narayana Murthy 

The Securities and Exchange Board of India is preparing to revise norms on alternative investment funds (AIFs), according to a media report.

The capital market regulator is setting up a high-power committee which is expected to be headed by Infosys founder NR Narayana Murthy, the report added.

AIF as an investment vehicle was established to pool in funds for investing in real estate, private equity and hedge funds. Such funds buy into private companies, restructure them and then liquidate their positions by selling to other firms or via a stock offering.

The seven-member panel is to create an environment in which enterprises including startups can raise private capital efficiently as well as put in place measures for AIFs, the report further said. 

BHEL commissions 195 MW thermal unit in Bihar

This is the first 195 MW unit to be commissioned by BHEL at the 2x195 MW Muzaffarpur Thermal Power Station (TPS) Plant of Kanti Bijlee Utpadan Nigam Limited (KBUNL), a joint venture of NTPC Ltd. and BSPGCL, in Bihar. 

Bharat Heavy Electricals Limited (BHEL) has successfully commissioned a 195 MW thermal unit in Bihar. This is the first 195 MW unit to be commissioned by BHEL at the 2x195 MW Muzaffarpur Thermal Power Station (TPS) Plant of Kanti Bijlee Utpadan Nigam Limited (KBUNL), a joint venture of NTPC Ltd. and BSPGCL, in Bihar. 

BHEL is the leading supplier of main plant equipment to NTPC and its joint ventures, with a 72% share in their installed capacity. BHEL’s scope of work in the Muzaffarpur project envisaged design, engineering, manufacture, supply, erection and commissioning of Steam Turbines, Generators and Boilers, along with associated Auxiliaries and Electricals, besides state-of-the-art Controls & Instrumentation (C&I) and Electrostatic Precipitators (ESPs). 

The second 195 MW unit is expected to be commissioned in FY 2015-16. Earlier, in the first week of March, 2015, a 660 MW supercritical thermal unit was commissioned by BHEL at Barh in Bihar. As per a recent Central Electricity Authority (CEA) study on the performance of sub-critical sets in the country, BHEL supplied sets have demonstrated a better operating Heat rate resulting in less coal consumption per unit of power produced.

Companies to raise $6 bn via ‘masala’ bonds

With masala bonds, Indian corporates will have more option to blend their debt portfolio to optimize the liability and minimize the cost, says SBI's Ecowrap report 

Leading companies are expected to issue rupee-denominated offshore bonds also called ‘masala bonds’ worth USD 6 billion this year, a research report published by SBI said.

With masala bonds, Indian corporates will have more option to blend their debt portfolio to optimize the liability and minimize the cost. Further, it can be a launch pad to sell the strength of rupee to the overseas investors, according to SBI's Ecowrap report on Masala Bonds.

Though Indian Railway Finance Corporation (IRFC) seems to be the first PSU to test the Masala, with having board approval for $1 billion to raise from offshore market, we expect many more PSU and Corporate will join the league in coming times, the Ecowrap report added.

IFC issued a 10-year, 10 billion Indian rupee bond in November 2014 to increase foreign investment in India, mobilizing international capital markets to support infrastructure development in the country. These will be offered and settled in US dollars to raise Indian rupees from international investors for infrastructure development in India.

IFC will convert bond proceeds from dollars into rupees and use the rupees to finance private sector investment in India. IFC has named these ‘Masala’ bonds as ‘masala’ is a globally recognized term that evokes the culture and cuisine of India. This is not the first time that a bond has been named after the food or culture of a country.
Chinese bonds, for example, are called Dim sum bonds, and Japanese ones as Samurai bonds.
With the success of IFC, it is felt that there is good appetite for rupee debt among international investors and
accordingly RBI in its first bio-monthly monetary policy statement, 2015-16, issued on 07^th April 2015, proposed to permit Indian Corporate to raise rupee denominated bond from overseas market.

Overseas borrowings by Indian companies have been on the rise as firms sought to take advantage of the lower cost of capital in markets like the US and Europe. Average annual borrowing via ECBs by Indian firms in last three years is $32 billion. Reliance Industries Ltd (RIL) is the frequent issuer of foreign currency bonds. Over the past three years, RIL alone has borrowed nearly $10 billion through such bonds.
Over 35% of the ECBs raised during last year are for refinancing the earlier ECBS, followed by 32% for payment of capital goods.

We expect Road, Railway, Telecommunication, Power and Mining Exploration and Refining sector will be the biggest beneficiaries of Masala Bond, the SBI report said.

Indian Railway Finance Corporation (IRFC) who plans to borrow a total of Rs.17,655 crore ($2.81 bn) in 2015-16 from domestic and offshore markets, is already having board approval to raise $1 billion from offshore market and will probably be the first domestic issuer to eye so-called ‘masala’ debt to diversify its source of funds.

While the move could potentially open up a new pool of investors for Indian companies to tap, the benefits may initially be restricted to large high-rated corporate entities that have an established track record in overseas bond markets. Though the IFC 10-year, 10 billion Indian rupee bond was carrying AAA rating and yield of 6.3%, can serve as a benchmark for the type of bond, we have to see the investors' response once corporates start marketing their Masala, the report added. 

Block deal on Hero MotoCorp; up 1.5%

Around 10.8 lakh shares were traded in a single block at Rs. 252.22 on the NSE.

Shares of Hero MotoCorp Ltd were trading higher 1.5% at Rs. 2,365 on NSE today. Around 10.8 lakh shares were traded in a single block at Rs. 252.22 on the NSE.

The stock opened at Rs. 2340 as against the previous close of Rs. 2329 on NSE. It has hit a high of Rs. 2380 and a low of Rs. 2330 on NSE today.

Total traded quantity on the counter stood at over 11.81 lk shares on NSE. 

ONGC looking for overseas acquisitions

“ We want to take advantage of prevailing market conditions and go for both corporate as well as asset acquisitions,” Dinesh K Sarraf, Chairman & Managing Director of ONGC added. 

ONGC is reportedly planning for overseas corporate acquisitions to strengthen its global presence.

“ We want to take advantage of prevailing market conditions and go for both corporate as well as asset acquisitions,” Dinesh K Sarraf, Chairman & Managing Director of ONGC added.

A report said that the company is looking at entities which have multiple oil and gas assets. 

The acquisitions will help ONGC meet blue print of raising overseas output in phases, report says.

Sensex, Nifty in green; auto, healthcare stocks up

The BSE Mid-cap Index is trading up 0.70% at 10,489, whereas BSE Small-cap Index is trading up 0.98% at 11,052. 

At 9:26 AM, the S&P BSE Sensex is trading at 27,214 up 202 points, while NSE Nifty is trading at 8,240 up 58 points.

The BSE Mid-cap Index is trading up 0.70% at 10,489, whereas BSE Small-cap Index is trading up 0.98% at 11,052.

Maruti Suzuki, Sesa Sterlite, ONGC, Hindalco Industries, M&M and Cipla are among the gainers, whereas Bharti Airtel, L&T, Bajaj Auto and NTPC are losing sheen on BSE.

Whether the momentum can be maintained remains to be seen as the 200-DMA will remain in focus for a while and triggers are hard to come by on the positive side. The indices have shed nearly 10% from their March highs and investors will hope the market finds support around the current levels.

The PMI numbers today will be watched. Global cues are subdued even though US markets ended higher on Friday. Asian markets are mostly lower with Hang Seng and Shanghai trading in the red.

Aditya Birla Group stocks could see action after it consolidated its fashion retail business under the listed entity, Pantaloons Fashion and Retail, which has been rechristened as Aditya Birla Fashion and Retail. Aditya Birla Nuvo will spin off its wholly-owned subsidiary, Madura Garments Lifestyle Retail Company, to merge it with the new entity, which will have a combined turnover of Rs. 5,290 crore.

Nifty lost ~3.4% in April and the week gone by may be best forgotten for most companies especially the top 10 companies on the bourses by market-cap. Except for ICICI Bank, all of them shed weight as the market witnessed a sell-off on most days.

The combined market cap erosion was to the tune of nearly Rs. 66,000 crore as stocks like TCS, RIL, ONGC and ITC saw losses. ITC lost close to Rs. 20,000 crore in market cap while ONGC shed a little over Rs. 9500 crore. Coal India lost over Rs. 8000 crore while Infosys shed weight by over Rs6000 crore in market cap. ICICI Bank bucked the trend and added around Rs. 13,500 crore to its market cap.

Bank of India, Union Bank of India and Allahabad Bank have sought exemption from payment of dividend citing higher provisioning for non-performing assets (NPAs), says a report. 

Top Economy news of the day- 04 May, 2015

The direct tax collection by the government during 2014-15 fell short of the target by about 14% with Rs. 6.96tn revenue coming to its kitty.

Even as the government might introduce next generation emission standards ahead of schedule to combat mounting air pollution in cities, automakers appear more worried about the quality of the fuel. Presently, automakers, selling vehicles in about 35 cities, have to stick to Bharat Stage (BS) IV emission norms. 

The direct tax collection by the government during 2014-15 fell short of the target by about 14% with Rs6.96tn revenue coming to its kitty. 

The Fertiliser Ministry has moved a Cabinet note on formulating a new urea policy that aims at higher domestic production of the soil nutrient and balanced use of fertilisers.

HDFC Bank to revise service charges

The new charges will be effective from June 1 this year 

HDFC Bank has increased service charges by 43%-50% on select products like debit cards and immediate payment service (IMPS), according to a media report.

At present, the bank charges charges Rs. 3.5 (excluding taxes) for an IMPS transaction up to Rs. 10,000. However, the revised charges will be Rs. 5 (excluding taxes) for an IMPS transaction from 15 May 2015, according to the information available on the HDFC Bank website of the company.

The current annual fee on HDFC Bank platinum debit card is Rs. 500, which is expected to be revised to Rs. 750 excluding taxes. The new charges will be effective from June 1 this year, the report said.

The revised charges will not be applicable to high-networth individuals (HNIs) and corporate salary account customers holding savings, the report added. 

Indices to open positive

Whether the momentum can be maintained remains to be seen as the 200-DMA will remain in focus for a while and triggers are hard to come by on the positive side. 

The ambitions and actions of the Modi-led government will be a topic for discussion as a lot of analysis will do the rounds on what the government has achieved in the last one year. An outburst by Arun Shourie on the government and the key ministers will keep the pressure on the government.   

The outlook is a positive start. Whether the momentum can be maintained remains to be seen as the 200-DMA will remain in focus for a while and triggers are hard to come by on the positive side. 

The indices have shed nearly 10% from their March highs and investors will hope the market finds support around the current levels.   The PMI numbers today will be watched. 

Global cues are subdued even though US markets ended higher on Friday. Asian markets are mostly lower with Hang Seng and Shanghai trading in the red.   Aditya Birla Group stocks could see action after it consolidated its fashion retail business under the listed entity, Pantaloons Fashion and Retail, which has been rechristened as Aditya Birla Fashion and Retail. Aditya Birla Nuvo will spin off its wholly-owned subsidiary, Madura Garments Lifestyle Retail Company, to merge it with the new entity, which will have a combined turnover of Rs. 5,290 crore.   

Nifty lost ~3.4% in April and the week gone by may be best forgotten for most companies especially the top 10 companies on the bourses by market-cap. Except for ICICI Bank, all of them shed weight as the market witnessed a sell-off on most days. The combined market cap erosion was to the tune of nearly Rs. 66,000 crore as stocks like TCS, RIL, ONGC and ITC saw losses. ITC lost close to Rs. 20,000 crore in market cap while ONGC shed a little over Rs. 9500 crore. 

Coal India lost over Rs. 8000 crore while Infosys shed weight by over Rs6000 crore in market cap. ICICI Bank bucked the trend and added around Rs. 13,500 crore to its market cap.    Bank of India, Union Bank of India and Allahabad Bank have sought exemption from payment of dividend citing higher provisioning for non-performing assets (NPAs), says a report.   The Black Money issue will be in focus this week. 

Last week, Union Finance Minister Arun Jaitley said that the present Government has taken various steps to squeeze the black money including undisclosed assets within and outside the country. He said that our focus is on reasonable tax rates and ease of doing business for incentivising people to abide by laws and avoid evasion of taxes etc.    

India's foreign exchange reserves increased $ 1.4 bn in the week ended April 24 to touch $344.6 bn,.The foreign currency assets  stood at $ 320 bn, according to RBI data. The gold reserves remained unchanged at $19.04 bn.   ASK Property Investment Advisors announced the first close of Rs.1000 Cr. of its Rs.1500 Cr. third domestic fund - ‘ASK Real Estate Special Opportunities Fund II’. 

ASK Property has raised this Rs.1000 Cr in less than six months from its launch date.  ASK also announced the maiden investment from this fund in    Purvankara’s Chennai project ‘Provident’, making this Purvankara Group’s first ever private equity partnership in its history.   The Reserve Bank of India has notified that the foreign share holding by Foreign Institutional Investors (FIIs)/ Registered Foreign Portfolios Investors (RFPIs) in M/s Tata Chemicals Ltd. have gone below the threshold limit.  

  

The petrol prices were hiked by Rs 3.96 per litre and diesel by Rs 2.37 a litre.The Prices of petrol in Delhi will be Rs 63.16 a litre from Friday, while diesel will cost Rs 49.57 per litre as against Rs 47.20, Indian Oil Corp (IOC) reportedly said.   IOC, Bharat Petroleum Corp and Hindustan Petroleum Corp revise petrol and diesel prices on 1st and 16th of every month. The Price of non-subsidised LPG was reduced by Rs 5 per cylinder.   A report said that price of non-subsidised LPG was cut by Rs 5 to Rs 616 per 14.2-kg cylinder in Delhi. In Mumbai, the non-subsidised cooking gas has been  reduced by Rs 4.50 to Rs 627.50, says report.   Government will reduce export tax on low-grade iron ore to 10% from 30 per cent, Finance Minister Arun Jaitley reportedly said.    

The combined Index of Eight Core Industries stands at 177.8 in March, 2015, which was 0.1 % lower compared to the index of March, 2014. Its cumulative growth during April to March, 2014-15 was 3.5 %.    Oil companies increased price of aviation turbine fuel (ATF), or jet fuel, in Delhi by Rs. 272 per kilolitre or 0.5 per cent to Rs. 49,609.84 per kl, according to reports.   The car sales rises in April. HMSI recorded 9% growth by selling 340,791 units, versus the negative growth of 4% of 2Wheeler industry (Domestic and Exports both).    

Maruti Suzuki India Limited sold a total of 111,748 units in April 2015. This includes 11039 units for export. The Company had sold a total of 86196 units in April 2014.    Auto-maker Mahindra & Mahindra reported 1% rise in total sales at 36,727 units in April 2015. While Exports were up 4% at 2,260 units as compared to 2,181 units in the same period.