Lupin re-appoints Desh Bandhu Gupta as Executive Chairman

The board Re-appointed Dr. Kamal K. Sharma, as Vice Chairman of the Company, for a period of two years effective September 29, 2015, subject to approval of the members at the ensuing Annual General Meeting;

Lupin Ltd has announced that the Board of Directors of the Company at its meeting held on May 13, 2015, inter alia, has approved the following business:

Re-appointed Dr. Desh Bandhu Gupta, as Executive Chairman of the Company, for a period of five years effective January 1, 2016, subject to approval of the members at the ensuing Annual General Meeting;

Re-appointed Dr. Kamal K. Sharma, as Vice Chairman of the Company, for a period of two years effective September 29, 2015, subject to approval of the members at the ensuing Annual General Meeting;

Re-appointed M. D. Gupta, as Executive Director of the Company, for a period of five years effective January 1, 2016, subject to approval of the members at the ensuing Annual General Meeting;

Appointed Dr. Vijay Kelkar, Mr. R. A. Shah, Mr. Richard Zahn, Dr. K. U. Mada and  Dileep Choksi, as Independent Directors of the Company for a fresh term of five years subject to approval of the members at the ensuing Annual General Meeting.

Rajya Sabha approves Companies Amendment Bill

The Companies Amendment Bill includes the winding up of companies would be heard by a two-member instead of three-member bench

The Rajya Sabha on Wednesday passed the Companies (Amendment) Bill, 2014, which provides for severe punishment for those raising illegal deposits from the public.

The amendment also proposes to exempt corporates from the need to get shareholders' nod in the case of related party transactions valued lower than Rs 100 crore or 10 percent of net worth of the company.

Among other amendments, the Companies Amendment Bill includes the winding up of companies would be heard by a two-member instead of three-member bench. Also, the bail restrictions will apply only for offence relating to fraud under section 447 of the Companies Act 2013. 

Commodities Buzz: USDA Sees Massive Drop In Global Cotton Production, Chinese Acreage Set To Fall Near Historical Low

Commodities Buzz: USDA Sees Massive Drop In Global Cotton Production, Chinese Acreage Set To Fall Near Historical Low 

Chinese cotton sowings are expected to will drop to their lowest in 56 years. 

The USDepartment of Agriculture, in its first global cotton supply and demand estimates for2015-16, forecast sharply lower world production, seen falling by 8 million (m) bales to111.25 m bales – down 6.70%.

 Output in China, until this season the world's topproducer, will drop by 3 m bales to a 12-year low of 27 m bales - 1.0m bales less thanoutlined in an initial estimate made in February.

 The estimated area of 3.70 m hectares isdown 16% from last year and is the lowest area since 1949.

 China’s new subsidiarypolicy has resulted in lower profits for cotton farmers, who have responded by shiftingfrom cotton to other crops, such as rice and corn that offer higher returns or receivegreater government support. 

Cabinet gives approval to amend Benami Transactions (Prohibition) Act

The Bill provides for attachment and confiscation of benami properties and also fine with imprisonment. This is one more initiative to fight the menace of black money inside the country. 

As a sequel to the announcement in the Budget, the Union Cabinet, chaired by the Prime Minister Narendra Modi, has given its approval to amend the Benami Transactions (Prohibition) Act, 1988 by moving of the Benami Transactions (Prohibition) (Amendment) Bill, 2015 in Parliament. 

The Bill provides for attachment and confiscation of benami properties and also fine with imprisonment. This is one more initiative to fight the menace of black money inside the country. 

The Department of Revenue in consultation with the Legislative Department has amended the Benami Transactions (Prohibition) Act, 1988. 

Fertilizers stocks in focus

RCF, National Fertilizers, FACT and Madras Fert are some of the prominent gainers. 

Shares of fertilizer companies are trading on a firm note on media reports that the government has approved new urea policy for the next four years.

The policy is aimed at timely supply and rationalization of subsidy, the report further added.

Rashtriya Chemicals & Fertilizers (RCF) has zoomed 5.9 per cent at Rs. 61.35. National Fertilizers has soared 5.5 per cent at Rs. 29.60.

Fertilizers & Chemicals Travancore (FACT) has rallied 3.8 per cent at Rs. 27.50. Madras Fertilizers has jumped 3.4 per cent at Rs. 15.25.

Chambal Fertilisers & Chemicals has surged to a high at Rs. 66.30 and is now up 2.7 percent at Rs. 64.50. Gujarat State Fertilizers & Chemicals (GSFC) has added 2 per cent at Rs. 76.

Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) has jumped to a high at Rs. 70.70 and is now trading on a flat note at Rs. 68.55

Meanwhile, the Sensex has jumped 275 points at 27,153 

Metro AG plans to invest Rs. 400 crore for expansion in India: Reports

The company is planning to raise the fund from its parent company through equity infusion, says report. 

According to the report, Metro AG is planning to invest Rs. 400 crore to increase number of its wholesale stores in India.

 The company is planning to raise the fund from its parent company through equity infusion, says report. 

Metro has 16 outlets and it plans to increase the count to 50 by 2020.

Tech Mahindra announces strategic global alliance with MDS

Tech Mahindra has implemented the leading Billing and customer management solution of MDS.

Tech Mahindra and MDS announce a strategic global alliance with the first client win at Dixons Carphone.

Tech Mahindra has implemented the leading Billing and customer management solution of MDS.

BHEL surpasses government's capacity addition target for 2014-15 by 19%

BHEL has also made major contributions to another 1,600 MW by commissioning 2 boilers of 800 MW each during the year. In addition, sets with a cumulative of 2,000 MW have been synchronised and are ready for capacity addition.

Accelerating its project execution momentum as part of its six point agenda for dynamic growth, Bharat Heavy Electricals Limited (BHEL) has surpassed the capacity addition target, set by the Government for utility projects, by 19 per cent. Significantly, BHEL has commissioned 8,230 MW of utility sets against the target of 6,914 MW for 2014-15. BHEL has also made major contributions to another 1,600 MW by commissioning 2 boilers of 800 MW each during the year. In addition, sets with a cumulative of 2,000 MW have been synchronised and are ready for capacity addition. 

In the same period, BHEL also commissioned 1,392 MW industrial sets and 319 MW of overseas projects, taking the overall capacity addition/ synchronisation to 11,941 MW, during the year. With this, BHEL has achieved a major landmark of an installed capacity exceeding 155 GW, including 132 GW of domestic utility sets. Notably, with this BHEL has joined the elite club of international manufacturers who have supplied power generating equipment worth more than 150 GW. Significantly, in the first three years of the XII Plan, BHEL has commissioned a capacity of 26,091 MW, exceeding the cumulative target of 24,737 MW set by the Government. Notably, with this, the company has surpassed its total commissioning of 25,385 MW in the entire XI Plan. 

The XII Plan has also witnessed various significant achievements by BHEL in the commissioning of new projects, with several new & higher rating sets having been commissioned. Till the XI Plan, the highest rating set commissioned by BHEL was of 525 MW rating. In the XII Plan, two supercritical sets of 660 MW rating have been commissioned for the first time by BHEL.

 Further, two 800 MW rating supercritical boiler sets supplied by BHEL have also been commissioned. BHEL has also commissioned 13 sets of 600 MW and two nos. of its highest rating gas-based sets of 363 MW each at OTPC Tripura in North East India during the current plan.

 Besides, BHEL successfully commissioned in quick succession, three units of 270 MW each within a span of just 42 days at Amravati in Maharashtra.

Sensex, Nifty volatile; metal, oil & gas stocks slip

The volatility index has jumped over 2 percent. The CNX Realty index is top loser, whereas the CNX PSU Bank index is top gainer. 

The market has erased most of its earlier gains and is now trading on a flat note with positive bias amid some volatility in late morning deals.

The BSE Sensex has plunged 550 points from day's high to a low at 26,750 and is now up 38 points at 26,915.

Similarly, the NSE Nifty has tumbled 165 points from day's high to touch a low at 8,090. Now, the Nifty is up mere seven points at 8,134.

The broader market has pared most of its earlier gains and is now trading on a flat note. The CNX Midcap index has added 0.5 percent, while the CNX Smallcap index is up 0.2 percent.

The volatility index - India VIX - has jumped 2.6 percent at 21.07.

Sectorwise, the CNX Realty index is top loser (down 1.2 percent), while the CNX PSU Bank index is top gainer (up 1.2 percent).

The market breadth is positive in the late morning deals. Out of 1,712 stocks have traded on the NSE - 840 stocks have advanced, while 548 stocks have declined.

10 stranded gas based Power Plants successfully Bid through transparent reverse E-Auction

The grid connected gas based power generation capacity in the country is 24,150 MW. Of this, a capacity of 14,305 MW had no supply of domestic gas and is competely stranded. 

The Government is delighted to announce the revival of 10 stranded gas based power generation plants who have succesfully bid through a most transparent and competitive reverse e-auction process for generating 5.05 billion units of electricity which will be supplied at or below Rs 4.70 per unit to the purchaser Discom during the peak summer months from 1st June 2015 to 30th Sept 2015.

This will involve government support of Rs. 723.99 crore from the Power System Development Fund. 

The grid connected gas based power generation capacity in the country is 24,150 MW. Of this, a capacity of 14,305 MW had no supply of domestic gas and is competely stranded.

These comprise 29 plants of which 9 plants are yet to be commissioned. All these plants were eligible to participate in the auction process held today.

In the auction process, 14 plants with a cumulative installed capacity of 8,109 MW participated in the Technical Bid round and all were declared as Technically Qualified. The auction was meant to determine the plants which were seeking lowest per unit support for sale of power to Discoms, while utilizing fully 10 MMSCMD of imported RLNG. 

Bidding started at 25% PLF and after 5 rounds reached a level of 35% PLF where the reverse e-auction for per unit PSDF support started. The reverse e-auction for the Stranded Gas based Plants was conducted under the newly approved Scheme for Utilization of Stranded Gas Based Generation Capacity. 

RBI releases report on State Finances: A Study of Budgets of 2014-15

Renewed efforts by states towards fiscal consolidation following the global financial crisis would need to be motivated by sustained efforts to increase states’ revenues 

The Reserve Bank of India (RBI) on Tuesday called for higher capital outlays, consistent fiscal consolidation and limiting the debt-GDP ratio to improve the finances of the states, whose combined gross fiscal deficit has improved by 20 bps to 2.3 per cent of GDP in FY 2014-15.

The RBI released the report titled “State Finances: A Study of Budgets of 2014-15”, an annual publication that provides data, analysis and an assessment of the finances of state governments. It serves as a primary source for disaggregated state-wise fiscal data. It also etches out the changing dynamics of fiscal federalism over the years. The theme of this year’s report is ‘Fiscal Consolidation: Assessment and Medium Term Prospects’.

The report highlights several issues of which are likely to have implications for state finances in the immediate to medium-term, such as,

1. Renewed efforts by states towards fiscal consolidation in the years following the global financial crisis would need to be motivated by sustained efforts to increase states’ own revenues;
2. 
   
3. Freeing up resources for higher capital outlays, improving the quality of fiscal consolidation and setting the consolidated debt-GDP ratio of the states, including off budget liabilities on a declining trajectory;
4. The rapidly growing e-commerce could contribute to states’ own revenue efforts, provided there is greater clarity in rules and procedures to enable better compliance; furthermore, windfall gains accruing over time from auctioning of natural resources need to be channelised effectively for meeting developmental needs of the mineral rich states;
5. 
   
6. Transition from the present origin-based indirect tax regime to a destination-based tax regime under the Goods and Services Tax from April 1, 2016 is also expected to create a buoyant source of revenue for the centre and states in the medium term; and
7. 
   
8. Improvement in fiscal marksmanship is also important for delivering on fiscal consolidation intentions, particularly by minimising the systematic bias towards over-estimation of expenditure relative to receipts.

Ashok Leyland slips 2.5% after weak Q4 outcome

The company reported nearly 37 percent fall in standalone Q4 net profit at Rs. 229.97 crore, as against a net profit of Rs. 363.39 crore on year-on-year basis.

Ashok Leyland drifted lower in the early morning trade on the BSE, after the company posted weak set of earnings.

According to release issued by the company to the BSE, Ashok Leyland reported nearly 37 percent fall in standalone Q4 net profit at Rs. 229.97 crore, as against a net profit of Rs. 363.39 crore on year-on-year basis.

The total income, however, jumped by 46.4 percent to Rs. 4,505 crore from Rs. 3,076 crore in the same above mentioned period.

So far, the stock has slipped over 5.5 percent from the day's high of Rs. 73 to touch a low of Rs. 69.

Now, Ashok Leyland is down 2 percent at Rs. 70.55, and has witnessed trades of around 1.6 million shares as compared to its daily average volume of 2.2 million shares in the past two weeks.

Meanwhile, the BSE Sensex has zoomed over 400 points at 27,284. 

Infosys stock flat on heavy volume

Around 13.4 lakh shares were traded in a multiple block at Rs. 1,956.50 on the BSE. 

Shares of Infosys were trading flat at Rs. 1,957 on BSE today. Around 13.4 lakh shares were traded in a multiple block at Rs. 1,956.50 on the BSE.

The stock opened at Rs. 1,954 as against the previous close of Rs. 1,950 on BSE. It has hit a high of Rs. 1,965 and a low of Rs. 1,940 on BSE today.

Total traded quantity on the counter stood at over 13.61 lk shares on BSE.

Meanwhile, the Sensex has surged 379 points at 27,256.

Rel Jio Infocomm raises $750 mn

The loan is guaranteed by RIL and will be primarily used to finance goods and services procured from Samsung Electronics and Ace Technologies Corp., which are being sourced for the infrastructure rollout of RJIL. 

Reliance Jio Infocomm Limited (“RJIL”), a subsidiary of Reliance Industries Limited (“RIL”) has signed a US$ 750 Million loan backed by Korea Trade Insurance Corporation (“K-sure”) on 7 May 2015. The loan is guaranteed by RIL and will be primarily used to finance goods and services procured from Samsung Electronics and Ace Technologies Corp., which are being sourced for the infrastructure rollout of RJIL.

This is the first facility by K-sure with RJIL. However, it is the second facility by K-sure with the Reliance Group (incl. RIL and RJIL) and is a testament to the strengthening relationship between the two entities.

This is the second round of financing for RJIL from Korean ECAs and the third overall between the group and Korean ECAs in three years highlighting the growing business with Korean organisations.

It is also K-sure’s largest deal in India.

It has a door to door tenor of 12 years including a 2 year availability period and 10 year repayment period thereafter.

The facility is funded by 9 relationship banks of Reliance including The Hongkong and Shanghai Banking Corporation Limited, Australia and New Zealand Banking Group Limited, Banco Santander, S.A., The Bank of Tokyo-Mitsubishi UFJ, Ltd., JPMorgan Chase Bank, N.A., Mizuho Bank, Ltd, and Sumitomo Mitsui Banking Corporation, ING Bank and DZ Bank AG.

Moody's: Global spec-grade corporate default rate eases to 2.2% in April

Moody's default rate forecasting model now predicts that the default rate will end 2015 at 2.6% 

Moody's Investors Service trailing 12-month global speculative-grade default rate closed at 2.2% in April 2015, down from March's rate of 2.3%. 

The latest reading came in close to the rating agency's year-ago prediction of 2.5%. Moody's default rate forecasting model now predicts that the default rate will end 2015 at 2.6%.

 If realized, the rate will be well below the historical average of 4.5%.

 Moody's Monthly Default Report includes speculative-grade default statistics by region and industry, as well as year-ago rates and year-ahead forecasts.

 It also provides recent rating transition data, Moody's global distressed index data and default rates among Moody's-rated loan issuers.

Sensex rallies 300 points; auto, banking stocks gain

The BSE Mid-cap Index is trading up 1.50% at 10,428, whereas BSE Small-cap Index is trading up 0.89% at 10,875. 

At 9:24 AM, the S&P BSE Sensex is trading at 27,210 up 333 points, while NSE Nifty is trading at 8,213 up 86 points.

The BSE Mid-cap Index is trading up 1.50% at 10,428, whereas BSE Small-cap Index is trading up 0.89% at 10,875.

Some buying activity is seen in auto, banking, pharma and fmcg and metal sectors, while metal sector is showing weakness on BSE.

GAIL, Hero Motocorp, HDFC, ICICI Bank and ONGC are among the gainers, whereas Jubilant Industries, Gujarat Gas, Sobha, Oil India and NTPC are losing sheen on BSE.

The rupee today opened at 64.19 as against the US dollar.

The earth shook again while the market had its own share of tremors as relentless selling seemed to be the order of the day on Tuesday. While quakes are being reported from Japan now, looks like the market will choose to settle down and perhaps lap up some gains.

Attention will be on stocks which are being added to the MSCI India index. These include Bharat Forge, Bharti Infratel, Container Corp of India, Eicher Motors, Lupin, Marico, Shree Cement and UPL. The sole deletion is Reliance Infrastructure, which could witness pressure today. The Nifty will attempt to get back above the 200 DMA. Results of Lupin and Emami will be watched. Second half of Parliament Budget session will end today and the developments here will be in focus.

The Indian rupee was under immense pressure, adversely impacted by the fragile equity markets. The sentiment is dented by foreign capital outflows from the equity and debt markets. Muted corporate earnings, uncertainty over retrospective taxation and better returns in other emerging markets has persuaded foreign investors to reduce their exposure to the Indian markets. Effectively, India’s ten year sovereign bond yields have spiked higher towards 7.95%.

On macroeconomic side, India's consumer price inflation eased to 4.87% in April, compared with 5.25% in March. There has been moderation in food prices in spite of a series of unseasonal rains in most parts of the nation. Meanwhile, India’s industrial output growth during March slowed to 2.1%, compared with a reading of 4.1% in February. Moderation in inflation and slowdown in growth provides the much needed maneuverability to the central bank to reduce interest rates at the key monetary policy meeting, scheduled on June 2nd.

Attention will be on stocks which are being added to the MSCI India index. These include Bharat Forge, Bharti Infratel, Container Corp of India, Eicher Motors, Lupin, Marico, Shree Cement and UPL. The sole deletion is Reliance Infrastructure, which could witness pressure today.

Global cues are lackluster. Dow fell marginally while S&P shed 0.3%. Nasdaq too was down around 0.3%.

Hedge funds were up 0.52% in April and 3.42% year-to-date helped by strong gains from emerging market mandated funds which gained 4.06% in April, their best performance since September 2010.

Asia ex-Japan hedge funds returned 6.81% in April, 11.87% year-to-date as Greater China mandated hedge funds gained 15.36% during the month, according to Eurekahedge.

The Rajya Sabha referred the GST Bill to a Select Committee, according to media reports. The Upper House has asked that the committee headed by BJP MP Bhupendra Yadav submit its report on the last day of the first week of the Monsoon Session.  

Rupee opens at 64.19 against dollar

The Rupee had closed at 64.14 against the US dollar on Tuesday. The rupee was under immense pressure, adversely impacted by the fragile equity markets.

The rupee today opened at 64.19 as against the US dollar.

The local unit hit a low of 64.28 and a high of 64.11.

The Rupee had closed at 64.14 against the US dollar on Tuesday. The rupee was under immense pressure, adversely impacted by the fragile equity markets.

Muted corporate earnings, uncertainty over retrospective taxation and better returns in other emerging markets has persuaded foreign investors to reduce their exposure to the Indian markets. 

Wall Street ends lower

Dow fell marginally while S&P shed 0.3%.

Global cues are lackluster. 

Dow fell marginally while S&P shed 0.3%. Nasdaq too was down around 0.3%.

Asia ex-Japan hedge funds returned 6.81% in April, 11.87% year-to-date as Greater China mandated hedge funds gained 15.36% during the month, according to Eurekahedge.