TCS remains firm

The company announced that its client - Euroclear Finland launched platform, Infinity powered by TCS BaNCS for market infrastructure. 

Tata Consultancy Services (TCS) continues to trade on a firm note in the BSE, after the company announced that its client - Euroclear Finland launched platform, Infinity powered by TCS BaNCS for market infrastructure.

 

The stock so far has climbed to a high at Rs. 2,563, and is now up 2 percent at Rs. 2,561.

On the BSE 36,000 shares have changed hands at the counter as against the daily average volume of 188,000 shares in the past two weeks.

Meanwhile, the BSE Sensex has pared gains, but still holds gain of 145 points at 27,790.

RBI introduces new benchmark bond while announcing bond sales

Contrary to expectations for the new paper to be sold at 7,000 cr, RBI proposed to sell the new paper at Rs 9,000 cr, with 16,000 cr as the total auction size the report says.

Tuesday marked the announcement of new bond sales of RBI which was also the  introduction of the new benchmark bond which would be put up for auction this Friday, says an ET report.

A delay by one day in the announcement stemmed a series of speculations among traders and investors who were already guessing the reason for the delay.

The delay made investors refrain from taking fresh positions thereby inflicting uncertainties in the market. G-Sec markets would attract interests of investors across the board for investment. Demand for paper would be met by bigger issuances, thanks to the new benchmark bond, said Badrish Kulhalli, fund manager, fixed income, HDFC Life Insurance as mentioned in the report.

In the When Issued Market, RBI’s new benchmark traded at 7.72% compared with 7.86% yield in the benchmark. Final yield would fall between 7.65-7.70% for the new security, dealers expect as per the report.

Contrary to expectations for the new paper to be sold at 7,000 crore, RBI proposed to sell the new paper at Rs 9,000 crore, with 16,000 crore as the total auction size the report says.

"We expect the new 10-year bond should be close to signalling the rate backed by the expectation of a further cut in coming days. Expected introduction of the new 10-year bond shall restore optimism in the overall market,” said Soumyajit Niyogi, interest rate strategist, SBI DFHI Primary Dealership, as stated in the report.

RBI rate cut expectations similar to general expectations : FM Arun Jaitley

Unseasonal rains sabotaging crops and impacting food prices had led to the central bank’s woes which resulted in it maintaining its status quo, post lowering the rate twice this year, the report said.

Finance Minister Arun Jaitely’s expectations hinged on RBI Governor Raghuram Rajan for the interest rate cut, are no different from the general expectations regarding the second bi-monthly monetary policy review, says the FM during a PTI interview , as mentioned in an ET report.

His expectations for rate cut from RBI are on similar grounds with the common man, he added.

Unseasonal rains sabotaging crops and impacting food prices had led to the central bank’s woes which resulted in it maintaining its status quo, post lowering the rate twice this year, the report said.

June 2 this year would most likely witness rate cuts however any additional reduction would rely on the structural reforms which the government undertakes.

Monsoons could refrain from being as generous as their average rate however macro economic indicators like retail inflation, industry output and wholesale support industry and government’s decision to coax the RBI governor for cutting rates, stated the report.

Inflation is likely to abate affecting growth considerations which would determine the next round of rate cuts, believe experts, the report mentioned.

Due to loss of purchasing power in rural economy, retail inflation path would be tempered. Should inflation remained below than 5%, an additional rate cut of 0.25% could take place, says SBI as mentioned in the report.

RBI’s approval no longer needed for FDI

FEMA provision has been deleted, one that allowed the central bank to limit or regulate cross-border transactions or transfer of immovable property to foreigners, a report says. 

In an attempt to make Foreign Investment Promotion Board (FIPB) more convenient and enhance the ease of doing business, RBI’s nod would not be required for gaining approval on FDI in India by investors.

The Foreign Exchange Management Act (FEMA) provision has been deleted, one that allowed the central bank to limit or regulate cross-border transactions or transfer of immovable property to foreigners, a report says.

The parliament had given a green signal to the change as part of Finance Bill by amending FEMA 1999.

The FEMA Act is instrumental in maintaining a stable economy since it enables RBI to exercise capital control via a multitude of instruments.

Post consulting RBI, the government is likely to notify the latest development, as per a senior finance ministry official.

Foreign Direct Investment worth Rs. 52,937 crore flowed into the country via Foreign Investment Promotion Board (FIPB)., however the same happened post getting approval from FEMA, as mentioned in the report. 

IT stocks gain as Rupee slides

The Information Technologies (IT) shares are in limelight on the NSE, on the back of weakness in Indian rupee versus the US dollar. 

The Information Technologies (IT) shares are in limelight on the NSE, on the back of weakness in Indian rupee versus the US dollar.

The Indian current is trading at the lower level of the day - with a loss of 19 paise at 63.87 as against the US dollar.

The CNX IT index jumped 1.5 percent at 11,548

Index heavyweights - Rolta India has soared 3.5 percent at Rs. 119. Closely followed by, Tech Mahindra and Info Edge (India) surged over 3 percent each at Rs. 640 and Rs. 767, respectively.

Polaris Consulting & Services and HCL Technologies have jumped 2.5 percent each at Rs. 176 and Rs. 957, respectively.

Hexaware Technologies and Persistent Systems (after foreign brokerage upgrade) have rallied over 2 percent each at Rs. 277 and Rs. 792, respectively.

Cyient, TCS, Infosys, Wipro, Oracle Financial and MphasiS are the other significant gainers.

On the losing side, KPIT Technologies has dropped over a percent at Rs. 111. NIIT Technologies has shed nearly a percent at Rs. 385 and eClerx Services has declined 0.4 percent at Rs. 1,580. 

Indian Solar installations forecast at over 2 GW for 2015

According to the Ministry of New and Renewable Energy (MNRE), they are very close to announcing the Phase II Batch 2 program.

Mercom Capital Group, a global clean energy communications and research firm, today released its quarterly update on the Indian solar market.
 
Mercom’s forecast for solar installations in India for CY 2015 now stands at greater than 2,000 MW due to positive developments in Tamil Nadu. The Modi administration has continued to announce various solar programs, goals and policies during its one year in office, but has yet to call an auction. According to the Ministry of New and Renewable Energy (MNRE), they are very close to announcing the Phase II Batch 2 program.
 
Raj Prabhu, CEO and Co-Founder of Mercom Capital Group, commented, “While all of these announcements have raised market sentiments, the Indian solar industry is looking for a streamlined auction process at regular intervals to better plan investments and manufacturing capacity.”
 
Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has signed PPAs in the range of 400 MW - 1,000 MW. The commissioning of these projects is scheduled to be as early as September 2015 all the way up to March 2016.
 

The Solar Energy Corporation of India (SECI), which was originally formed to implement JNNSM projects, is evolving into a government-owned power generation unit. It announced a program to establish and own 2,000 MW of solar projects with sizes ranging from 250 MW to 500 MW to be auctioned as EPC contracts.
 
Projects installed under JNNSM have now overtaken solar installations under Gujarat’s solar policy for the first time.
 
The Reserve Bank of India (RBI) added renewable energy under priority lending but with a cap of ₹15 crore (~$2.5M) for renewable energy generators and ₹10 lakh (~$16,393) per borrower for residential customers. The impact of this policy will likely be minimal in the short-term as the Indian solar market currently is comprised mostly of large-scale projects.
 
“We commend the government for this decision which is a step in the right direction,” commented Prabhu. “We urge them now to consider increasing the cap in order to benefit large-scale projects which will greatly accelerate the implementation and execution of solar installations in the country.”
 

The MNRE also proposed a subsidy cut on rooftop solar power plants from 30 percent to 15 percent, reasoning that the lower price of components would offset the proposed subsidy reduction. Individual states have been asked to come out with their own favorable policy and regulatory framework to support rooftop solar. This proposal comes in the backround of another goal set by the government to target 40 GW of grid-connected rooftop solar over the next five years.
 
The Ministry of Power has proposed several changes to the National Tariff Policy. Some of the proposed amendments include promoting renewable generation as a policy objective, and abolishing interstate transmission charges for renewable energy sources. The most notable change proposed by the Ministry is the increase in the solar Renewable Purchase Obligation (RPO) to eight percent by 2019 from the current goal of three percent.
 
“Without strict enforcement of RPO, it doesn’t matter what the percentage requirement is,” commented Prabhu. “It is more important to put mechanisms in place which will support strict enforcement of the policy.”
 
The Supreme Court dismissed an appeal challenging RPO regulations in Rajasthan, and endorsed that imposing RPO was desirable as the citizens have a right to live in a pollution-free environment. This ruling could have a wider impact considering there are several other similar cases pending in various state high courts.
 
Another welcome development was the passing of the Electricity Amendment Bill in the Parliament which is expected to end power distribution company monopolies by separating distribution from supply in the power sector. 

Euroclear Finland launches Infinity, powered by TCS BaNCS

The next phases will be rolled out in the course of 2016 and the processing environment will also feature a new central register as well as equity processing capabilities.

Tata Consultancy Services (TCS) announced that its client - Euroclear Finland - the central securities depository (CSD) for the Finnish capital markets, has launched a new transaction processing platform known as ‘Infinity’. Infinity’s processing capabilities for fixed-income was recently unveiled, following a 22 month implementation of this first phase.

The next phases will be rolled out in the course of 2016 and the processing environment will also feature a new central register as well as equity processing capabilities. 

Infinity is a multi-year program powered by TCS BaNCS for Market Infrastructure, and is a key component of Euroclear Finland’s outsourcing its securities settlement processing toTARGET2Securities (T2S) as part of the European Central Bank’s fourth migration wave in  February 2017. TCS BaNCS was chosen in 2013 for its established track record in modernizing core infrastructure at leading CSDs worldwide and for its T2S expertise. Through Infinity, TCS BaNCS has provided Euroclear with a single, consolidated platform for depository, registry and corporate actions functions, thereby, enabling simplified business operations.

Commenting on the program, Mr. Yannic Weber, Chief Executive Officer, Euroclear Finland and Euroclear Sweden, said, “As the Finnish capital markets and its participants gear up for the wholesale migration of securities settlement to T2S in early 2017, we felt it right and prudent to modernize our core technology for asset servicing well ahead of the shift, to give the market the due time needed for this transition. TCS Financial Solutions has helped us replace legacy systems while also consolidating myriad functions that previously ran on multiple platforms.  We look forward to working with Tata in the coming months as we forge ahead in our delivery reliable infrastructure to support the complete corporate actions lifecycle across all major asset classes.”

Mr. R. Vivekanand, Vice President, TCS, said, “TCS has been providing mission critical solutions to market infrastructure institutions for over 20 years. TCS BaNCS is unique in its multi-asset class capability which enables our customers to replace multiple platforms with our solution. We have also created a strong roadmap for T2S to help our customers adapt to this transformation, and leverage it to become more competitive. Euroclear's selection of TCS BaNCS and the successful rollout of the first phase of Infinity is an affirmation of our commitment to this space.”

Reliance Jio turns to China for cheap phones? RIL clarifies on report

Reliance Industries Ltd clarified that they are working with multiple Indian and global manufacturers to test their devices on our network. 

The Exchange had sought clarification from Reliance Industries Ltd with respect to news article appearing in Mint on May 15, 2015 titled "Reliance Jio turns to China for cheap phones ahead of 4G rollout"

Reliance Industries Ltd clarified that they are working with multiple Indian and global manufacturers to test their devices on our network.

Nifty above 8,400 levels

All sectoral indices are trading in green, except, the BSE Metal index down 0.4 percent at 9,958 led by Tata Steel, Hindustan Zinc and Hindalco. The broader market is also trading in line with the BSE headline index, the Mid-cap and Smallcap indices have gained 0.5 percent each at 10,699 and 11,255, respectively. 

The market continues to trade on a gung-ho note, on the back of strong buying in index heavy-weights.

Buying is clearly evident in sectors like - IT, bank, power, consumer durables and oil & gas.

The key benchmark indices, the BSE Sensex and the NSE Nifty rallied to a fresh intra-day high at 27,903 and 8,440, respectively.

At 10:37 AM, the S&P BSE Sensex is trading at 27,882 up 237 points, while NSE Nifty is trading at 8,431 up 66 points.

The broader market is also trading in line with the BSE headline index, the Mid-cap and Smallcap indices have gained 0.5 percent each at 10,699 and 11,255, respectively.

All sectoral indices are trading in green, except, the BSE Metal index down 0.4 percent at 9,958 led by Tata Steel, Hindustan Zinc and Hindalco.

The BSE IT index has jumped 1.3 percent at 10,900, due to weakness in Indian rupee against dollar. 

The Bankex, Power and Consumer Durables indices have spurted almost a percent each.

The Oil & Gas, Auto, Healthcare, FMCG and Capital Goods indices are the other notable gainers.

The breadth is positive in morning deals - out of 1,949 stocks traded on the BSE so far 1,262 stocks are advancing, while 599 stocks are declining.

In the IT space - NIIT is the top gainer - up nearly 6 percent to Rs. 41.70. Indian Infotech and Helios & Matheson Information Technologies have soared 5 percent each at Rs. 0.42 and Rs. 27.45, respectively.

Rolta India has surged over 4.5 percent at Rs. 120. Persistent Systems has jumped 3.5 percent at Rs. 800.

Lycos Internet, Tech Mahindra, Polaris Consulting and HCL Technologies are the other significant gainers.

On the losing side, 3i Infotech has plunged almost 5 percent at Rs. 2.51. SQS India BFSI has slipped around 2 percent at Rs. 580 and KPIT Technologies has shed a percent at Rs. 112.  

Steel Strips bags order from Canadian Passenger Car aftermarket...stock surges 8%

This order volumes are expected to go up to 40K wheels next year with total value of around USD 1 million per annum.

Steel Strips Wheels Ltd has bagged an order from Canadian Passenger Car aftermarket. This would mark the entry of SSWL wheels in North America. Wheels would be shipped by end of Jun 2015.

This order volumes are expected to go up to 40K wheels next year with total value of around USD 1 million per annum. The program will run for 5 years and resulting in volumes of 175K and revenue addition of 4.5Mn Dollar.

Apart from this the Company are also in advance stages of bagging an order from Polish aftermarket party for Passenger Car wheels. This compliments SSWL's strategy to increase its presence in the Global aftermarket requirements.

The stock was higher by 8% at Rs. 325.

The stock has hit a high of Rs. 335 and a low of Rs. 303.

Pidilite Industries stock down 4% on Q4 earnings

The Group has posted a net profit after taxes, minority interest and share of profit of associates of Rs. 806.40 million for the quarter ended March 31, 2015 as compared to Rs. 730.80 mmillion for the quarter ended March 31, 2014. 

Shares of Pidilite Industries Ltd was lower by 4% at Rs. 573 after the company posted Q4 results. 

The stock has hit a high of Rs. 594 and a low of Rs. 569.

The Group has posted a net profit after taxes, minority interest and share of profit of associates of Rs. 806.40 million for the quarter ended March 31, 2015 as compared to Rs. 730.80 mmillion for the quarter ended March 31, 2014. 

Total Income has increased from Rs. 10105.10 mn for the quarter ended March 31, 2014 to Rs. 10525.10 million for the quarter ended March 31, 2015.

PFC spurts after block deal

Power Finance Corporation (PFC) has strengthened its early gains on the BSE, on the back of fresh bulk deal at the counter. 

Power Finance Corporation (PFC) has strengthened its early gains on the BSE, on the back of fresh bulk deal at the counter.

According to TV reports, 42.8 lakh shares have changed hands in a single block deal at Rs. 272.80 on the BSE.

Currently, the stock is trading at the highest level of the day - with a jump of 1.3 percent to Rs. 275.

So far, the counter has seen trades of around 4.3 million shares as compared to its two-week daily average volume of 331,000 shares.

Meanwhile, the BSE Sensex has surged 244 points at 27,889.

Top Economy news of the day- May 20, 2015

Seeking to mobilize gold held by households and institutions, the government released a draft scheme under which a person or entity can earn interest by depositing the metal with banks. 

Seeking to mobilize gold held by households and institutions, the government released a draft scheme under which a person or entity can earn interest by depositing the metal with banks.

Raising concern over central banks globally being pushed into "competitive monetary easing", RBI Governor said lower interest rates and tax incentives can boost investments, but it is consumer demand that holds the key for pushing economic growth. 

India's economic growth is projected to surpass that of China's, with the GDP expected to zoom by 7.7% in 2016, according to a UN report which said India will help accelerate economic growth in South Asia.

In a bid to attract more foreign investment, the government is looking at doing away with the mandatory approval of the Reserve Bank of India which currently is needed after an investment proposal has been approved by the FIPB. 

Retail inflation based on consumer price index for rural labourers eased to 5.49% in March from 6.19% in previous month.

Rupee opens at 63.77 against US dollar

The local unit hit a low of 63.90 and a high of 63.83 against the US dollar. 

The rupee today opened at 63.77 against the US dollar.

The local unit hit a low of 63.90 and a high of 63.83 against the US dollar.

The FIIs were net buyers of Rs. 480.6mn in the cash segment on Tuesday.

The domestic institutional investors (DIIs) were net buyers of Rs. 4.51bn, as per the provisional figures released by the NSE. 

Sensex, Nifty in green; banking, consumer durable stock gains

The BSE Mid-cap Index is trading up 0.64% at 10,719, whereas BSE Small-cap Index is trading up 0.65% at 11,260. 

At 9:20 AM, the S&P BSE Sensex is trading at 27,850 up 205 points, while NSE Nifty is trading at 8,417 up 51 points.

The BSE Mid-cap Index is trading up 0.64% at 10,719, whereas BSE Small-cap Index is trading up 0.65% at 11,260.

Tata Power, Bhel, M&M, ICICI Bank and State Bank of India are among the gainers, whereas Tata Steel and Hindalco Industries are losing sheen on BSE.

The market saw all its gains vanishing on Tuesday as profit booking set in, especially in the banking counters. The government has proposed exempting interest earned on gold deposits from income tax, wealth tax or capital gains tax. It is also examining the option of allowing banks to use gold deposited under the monetisation scheme announced in the Budget as a part of their cash reserve and statutory liquidity. The draft gold monetisation scheme seeks to bring in small investors by lowering the minimum gold that can be deposited to 30g from 500g.

Back to the market, the situation appears better this morning. Indices could start off on a cheerful note buoyed by global cues. Reliance Communications could take over Sistema Shyam Teleservices (SSTL) in an all-stock deal. Expect action in these counters. Tata Steel has already addressed some concerns so disappointment may be less on the counter as it announces its numbers.  DLF, Aarti Drugs, Bajaj Finance, Archies, Bharat Forge and  Brigade are among the other counters which will see action based on their results.

The Dow was up 0.07% while S&P closed a tad lower. Nasdaq shed 0.17%. Japan's Nikkei 225 index was trading higher, Hong Kong's Hang Seng index was lower and China's Shanghai index is in the green.

The Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, has already granted approval for stake sale worth about Rs 50,000 crore (at current prices) in about 20 companies, says a report.

The NSE had about 5.2 million active clients for all stock brokers of the exchange.
The valuation of holdings by domestic institutional investors (DIIs) in National Stock Exchange (NSE)-listed firms hit a six-year high of Rs 10.21 lakh crore at the end of March, on account of buoyant markets, says Prime Database. In percentage terms, DII holding in NSE-listed companies went up to 5.01 per cent at the end of March 31, compared with 4.58 per cent on an aggregate basis.

Reliance Industries Limited announced that it has priced its Regulation S offering of US$ 200 million 5% Senior Unsecured Callable Notes due 2035 (the “Notes”).These Notes, denominated in US dollars, have been issued primarily to Taiwanese life insurance companies and are proposed to be listed on Taipei Exchange (formerly known as GreTai Securities Market). Such notes are commonly known as Formosa Bonds.

Deutsche Bank AG, Taipei Branch and HSBC Bank (Taiwan) Limited acted as Joint Bookrunners and Lead Managers on the transaction. Morgan Stanley & Co. International plc acted as the Structuring Agent on the transaction.  

Glenmark Pharma surges as RBI hikes FII limit

The stock has jumped 2 percent at the opening bell on the BSE. 

Glenmark Pharmaceuticals started the day with a gain of 2 percent at Rs. 918 after the Central Bank hiked the FII investment limit in the company.

According to media reports, the RBI has now allowed FII investment up to 49 percent in the company.

As per the shareholding pattern for the quarter ended March 2015, FIIs held 34.71 percent equity in the company.

The stock so far has jumped 3.4 percent to a high at Rs. 930 and is now up 2.3 percent at Rs. 920.

Around 17,000 shares are traded on the BSE counter, as against two-week daily average volume of 100,000 shares.

Meanwhile, the Sensex has jumped 200 points at 27,845.