Repco Home Finance Q4 net profit at Rs.34.8 crore

The company's Total Income stood at Rs. 191.3 crore Vs Rs. 149.8 crore (YoY). 

Repco Home Finance Ltd has announced the following results for the quarter & year ended March 31, 2015.

The company reported net profit of Rs. 34.8 crore in Q4 FY15 against Rs. 31.5 crore.

During the period under review, the company's Total Income stood at Rs. 191.3 crore Vs Rs. 149.8 crore (YoY).

The company has recommended dividend of Rs. 1.50 per share of Rs. 10 each (i.e. 15%), subject to approval of the Shareholders at the Annual General Meeting. 

Indian Banking and Securities firms to spend Rs. 536bn on IT in 2015: Gartner

This forecast includes spending by financial institutions on internal IT (largely personnel), hardware, software, external IT services and telecommunications. 

Indian banking and securities companies will spend Rs. 536 bn  on IT products and services in 2015, an increase of 15 percent over 2014 revenue of Rs. 466 bn, according to Gartner, Inc. This forecast includes spending by financial institutions on internal IT (largely personnel), hardware, software, external IT services and telecommunications.

“IT services is the largest overall spending category at almost 183 billion rupees in 2015 (34 percent of the entire enterprise IT market) which confirms the interest of the banking industry for IT services which is a well-established market and pretty mature for the Indian banking industry,” Vittorio D’Orazio, research director at Gartner. “Software is forecast to achieve the highest growth rate amongst the top level IT spending categories – at about 19.2 percent in 2015.”

After the first initial round of new bank licenses issued by RBI in 2014, this year will be a major turning point: in fact, RBI released a much clearer regulatory framework that set the guidelines for the new entrants in the Indian banking market. India might see up to 6 new banks set up by the end of 2016 and up to 50 by 2020. 

“This will intensify the competition, and banks will invest more in technology in order to win market share and drive expansion. There will also be a lot of greenfield projects. Specifically, we expect an increase in IT spending correlated to branch technology, inclusive of core banking systems, and in the mobile channel space,” added Mr. D’Orazio.

Further information on banking and securities industry IT spending is available in the Gartner report: ‘Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide, 2013-2019, 1Q15 Update’ at http://www.gartner.com/document/3028817. This vertical industries forecast provides total enterprise IT spending, including internal spending and multiple lines of detail for spending on hardware, software, IT services, and telecommunications for vertical industries and 43 countries within seven geographies.

RBI to regulate capital transactions for debt instruments

The Finance Ministry has given government powers under FEMA to regulate non-debt capital transactions 

The Finance Bill has taken away RBI’s power to regulate non-debt capital account transactions.

Till now, Section 6 of the Foreign Exchange Management Act (FEMA) granted powers to the RBI to regulate, restrict or prohibit capital account transactions, in consultation with the Central government. The Section 6 of FEMA governs capital transactions.

Under this, the RBI had formulated various regulations to regulate capital account transactions, including the foreign exchange management.

However, Finance Ministry has amended the Section 6 of FEMA through the Finance Bill. The Finance Bill passed by Parliament shifted the power to regulate non-debt capital account transactions from RBI to the Centre. It has limited the power of RBI to only capital account transactions involving debt instruments.

The Finance Ministry will now decide on the definition of ‘Debt Instruments’ under FEMA.

The government said that the earlier provisions led to confusion on capital transactions and changes will help clear foreign investment proposals faster.

The Bill has also deleted Section 6 (3), which empowered the RBI to prohibit, restrict or regulate transfer or issue of any foreign security by a person resident in India or person resident outside India. It also empowered RBI to regulate transfer of immovable property outside India and buy or transfer of immovable property in India.

Moreover, it will be the Central government which will now define what is the debt instrument. It is expected that the move will lead to simplification and acceleration to approvals for deals that are not debt financed. 

NIIT Technologies acquires majority stake in Incessant

This partnership will enable Incessant Technologies to build new capabilities, invest in R&D, expand in new geographies like North America and Europe and enter into new verticals such as Travel & Transportation. 

Incessant Technologies, a global BPM specialist, announced that it has entered into a strategic agreement with NIIT Technologies Limited, a global IT solutions organization for a stake of 51 percent. Incessant will provide NIIT Technologies with the capability to be a significant player in the Digital Integration space with Digital Legacy Integration, Digitization and Automation of business processes for a seamless customer experience.

Incessant Technologies is sharply focused in enabling its clients to automate and integrate their business processes with digital front ends and currently has 300+ Consultants who are certified practitioners. The company has strong relationships with 20+ clients and strong alliance partnerships with leading BPM platform providers like Pegasystems and Appian.

This partnership will enable Incessant Technologies to build new capabilities, invest in R&D, expand in new geographies like North America and Europe and enter into new verticals such as Travel & Transportation.

Vijay Madduri, CEO Incessant Technologies stated that, “This agreement is a part of our strategic endeavour to build on our strengths and continue our growth trajectory. I am convinced that this association will offer our clients, partners and employees tremendous value by building a very strong and sustainable entity”.

On this agreement Sudhir Chaturvedi, COO NIIT Technologies states, “Incessant is a perfect match for NIIT Technologies both from being optimally positioned to capitalise on the digital integration opportunity and having a strong growth track record. Our combined strengths will enable our clients to address their growing needs in the Digital space”.

Top corporate news of the day - May 19, 2015

The Essel Group has entered into a joint venture agreement with J A Solar, China’s leading solar energy firm, to launch a solar cell and module manufacturing company in India.

The Essel Group has entered into a joint venture agreement with J A Solar, China’s leading solar energy firm, to launch a solar cell and module manufacturing company in India.

Eros International has entered deals with three major Chinese state owned film and entertainment companies to promote, co-produce, distribute and unlock value in respective intellectual properties for Sino-Indian films across all platforms in both the countries.

The Kishore Biyani-led Future Consumer Enterprise has decided to exit from beauty and wellness chain Star and Sitara Wellness.

The wind energy developer Mytrah Energy Limited has awarded an equipment sale contract to Suzlon Group for a 98-MW windmill project it was planning to set up at Nazeerabad in Rangareddy district in Telangana state. 

Power Grid Corporation has got shareholders' approval to raise up to Rs130bn from domestic and external sources during the current fiscal. 

Kakinada SEZ Pvt Ltd, a subsidiary of GMR Infrastructure, has signed a memorandum of understanding with Guizhou International Investment Corporation, to set up a 2,000-acre industrial park for Chinese equipment manufacturing companies. 

SpiceJet is planning to raise US$150mn in debt or equity and is in discussions with private equity firms and banks for the same. The funds will be used as working capital and to repay dues, the airline said. 

In a step towards start of gas production from its giant Mozambique gas fields, ONGC and its partners have awarded contract for development of an onshore LNG terminal. 

Techno Electric & Engineering has sold wind assets worth 44.45 MW at Rs2.15bn. The wind assets were located in Tamil Nadu and belonged to its fully owned subsidiary Simran Wind Project Ltd. 

Sterlite Technologies Ltd is set to spin-off its power business into a separate unlisted company, while retaining its telecom business in the listed entity. The de-merger will be effective April 1, 2015. 

Jyothy Laboratories which is in the business of laundry services with FabricSpa, intends to use data analytics to customize laundry services for its customers. 

Infosys said it aims to meet its entire electricity requirements from renewable sources by 2018. The company has also become the first Indian company to join RE100, a global platform for major companies committed to 100% renewable power.

HDFC Bank launched co-branded medical benefits card with Apollo Hospitals, which allows corporates to disburse medical allowances to their employees and has insurance cover for accidents.

A total of 48 investment proposals are listed on the agenda of the meeting of the FIPB

FIPB (Foreign Investment Promotion Board) will take up Kotak Mahindra Bank's proposal for raising foreign investment limit in the bank to 55 per cent on 28^th May.

The Board will also take up 47 other FDI applications in its 218^th meeting which is scheduled on 28^th May at 3:00PM.

A total of 48 investment proposals are listed on the agenda of the meeting of the FIPB.

Finance Secretary Rajiv Mehrishi is the chairman of the meeting, who is expected to recommend foreign investment proposals worth up to Rs 3,000 crore to the Finance Minister for approval.

Kotak Mahindra Bank has approached FIPB to seek the approval for raising foreign investment cap in the bank to 55 per cent.
Other proposals listed on the FIPB agenda include that of Torrent Pharmaceuticals, Strides Arcolab, Star India, Eros International Media, Reliance Golbalcom, and Indian Rotocraft.

India allows FDI in most of the sectors through automatic route, but in certain sectors considered sensitive for the economy and security, the proposals have to be first cleared by FIPB.

During last fiscal, FIPB had received 350 proposals and in 11 meetings, it cleared 241 of them.

LIC raises stake in 12 BSE-listed cos

The LIC’s stake remained unchanged in Tata Steel, BHEL, Vedanta and Tata Motors 

Life Insurance Corporation (LIC) has increased its stake in 12 companies listed on BSE (Bombay Stock Exchange) in the fourth quarter of the last fiscal, according to a media report.

Among the companies included Coal India, Gail, Infosys, RIL and Bajaj Auto with the purchase of shares estimated to be Rs. 16,400 crore at current valuation, the report added.

On the other hand, LIC had declined its exposure in 12 other BSE-listed companies in Q4 FY15. The insurer sold shares worth Rs. 6,730 crore in 12 companies, the report further said.

LIC reduced its stake in Maruti Suzuki, Tata Consultancy Services, Cipla and Bharti Airtel among others.

The LIC’s stake remained unchanged in Tata Steel, BHEL, Vedanta and Tata Motors. LIC has bought shares worth Rs. 10,574 crore in Coal India in Q4 FY15. The insurer's stake in Coal India now stands at 4.65 per cent.

In addition, LIC holds 16.73 per cent in Larsen & Toubro (L&T).  

Tata Steel clarifies on UK plants sale

The news items that appeared today (May 18, 2015) are drawn from the Sunday Times report of May 17, 2015, which is speculative and does not contain comment by or on behalf of the Company. 

The Exchange had sought clarification from Tata Steel Ltd with respect to news article appearing in DNA on May 18, 2015 titled "Tata Steel nears UK plants sale to Swiss tycoon"

Add caption

Tata Steel Ltd clarified that Company on October 15, 2014 informed the exchange that its European business had signed a Memorandum of Understanding with Klesch Group to undertake detailed due diligence and negotiations for the potential sale of its Long Products Europe business and associated distribution activities.

The above process continues. The news items that appeared today (May 18, 2015) are drawn from the Sunday Times report of May 17, 2015, which is speculative and does not contain comment by or on behalf of the Company. 

The Board and Management of Tata Steel is committed to making disclosures at the appropriate time. The Company has robust disclosure principles and follows a policy of not commenting on market speculation. 

In the instant matter, we clarify that currently there has been no event that requires additional disclosure (apart from what has already been disclosed) under Clause 36 of the listing agreement."

Bharti Airtel gains on acquisition plans

The stock so far has climbed to a high of Rs. 404 on the BSE. 

Bharti Airtel is trading on a firm note in early morning deals on the BSE, on the back of positive news flow.

According to media reports, the firm is in advanced talk to buy out Augere Wireless Broadband India for about Rs. 150 crore to consolidate its 4G high-speed broadband footprint ahead of Reliance Jio Infocomm's launch.

So far, the stock has touched a high at Rs. 404, and is now up a percent at Rs. 402.

On the BSE 38,000 shares have been traded at the counter as against the daily average volume of 310,000 shares in the past two weeks.

Meanwhile, the BSE Sensex is down 66 points at 27,621. 

Market weak; pharma, oil & gas stocks slip

The CNX Midcap and Smallcap indices are slightly down at 13,057 and 4,357, respectively. The Volatility index - India VIX - has jumped 3 percent at 18.45. 

The market bucked the global trend and started the day on a negative note, as the BSE Sensex opened marginally lower by 24 points at 27,663 and the NSE Nifty was down 17 points at 8,356.

At 9:32 AM, the S&P BSE Sensex is trading at 27,610 down 77 points, while NSE Nifty is trading at 8,340 down 34 points.

The BSE Mid-cap Index is trading up 0.04% at 10,671, whereas BSE Small-cap Index is trading up 0.09% at 11,158.

Some buying activity is seen in metal, banking, capital goods and fmcg sectors, while pharma, auto and consumer durable goods sectors are showing weakness on BSE.

Hero Motocorp, Tata Power, Bharti Airtel, Infosys and M&M are among the gainers, whereas ONGC, ICICI Bank, GAIL, Hindalco Industries, HDFC and Dr. Reddy's Lab are losing sheen on BSE.

The Volatility index - India VIX - has jumped 3 percent at 18.45.

Among sectors, the CNX Bank Nifty, Pharma, Metal, PSU Bank and Finance indices have declined over 0.5 percent each.

On the other hand, the Infra index is up 0.2 percent at 3,158.

In Asian Paints is the top loser in the Nifty-50 stocks - down over 1.5 percent at Rs. 745 after the company reported lower-than-expected Q4 earnings yesterday.

Lupin has dropped 1.5 percent at Rs. 1,706. NMDC, Gail India and ONGC, BPCL and ICICI Bank are the other losers - down over a percent each.

On the other hand, Hero MotoCorp has surged 3.4 percent at Rs. 2,605. Bharti Airtel has jumped 1.5 percent at Rs. 403.

Zee Entertainment, Tata Power, Infosys and Yes Bank have spurted a percent each. 

Infosys plans to invest Rs. 400 crores

The company will invest Rs 70 crore on initiatives such as installing solar projects for rural electrification, biogas plants and distribution of smokeless cook-stoves in villages, says report. 

Infosys is planning to invest about Rs 400 crore over the next four years to achieve carbon-neutrality, according to report.

Report said that the company will have to offset 3.74 lakh tonne of carbon dioxide attributed to employees' travel.

The company will invest Rs 70 crore on initiatives such as installing solar projects for rural electrification, biogas plants and distribution of smokeless cook-stoves in villages, says report.

The Climate Group announced that one of India’s largest Information Technology corporations has become the first Indian company to join RE100, a global platform for major companies committed to 100% renewable power.

Infosys has taken great strides during the past seven years to become sustainable in its operations. As part of its commitment to RE100, Infosys aims to become carbon neutral by 2018. The company is already working to reduce its per capita electricity consumption by 50 per cent from its 2007-2008 levels and source all its electricity from renewable resources by 2018.

Ramadas Kamath, Executive Vice President and Head - Infrastructure and Sustainability, Infosys, said: “We are working towards building a clean energy future. Expanding the share of renewables is key to addressing the chronic energy crisis our country is facing today. By taking the first step towards hundred per cent renewables, we want to lead the way in creating a sustainable future and bring about an energy transformation in India.”

Rupee opens at 63.71 against US dollar

The FIIs were net sellers of Rs2.02bn in the cash segment on Monday.

The rupee today opened at 63.71 against the US dollar today.

The local unit hit a low of 63.69 and a high of 63.82 against the US dollar.

The FIIs were net sellers of Rs2.02bn in the cash segment on Monday. The domestic institutional investors (DIIs) were net buyers of Rs6.19bn, as per the provisional figures released by the NSE.