Rupa Company hits consecutive 20% upper limit

The company posted 33.5 percent growth in Q4FY15 net profit at Rs. 26.18 crore when compared with Rs. 19.60 crore in Q4FY14. Total income also rose by 18.1 percent to Rs. 330.25 crore from Rs. 279.68 crore. 

Rupa Company is locked at the 20 percent upper limit for the second straight trading session on the back of strong Q4 results.

The company posted 33.5 percent growth in Q4FY15 net profit at Rs. 26.18 crore when compared with Rs. 19.60 crore in Q4FY14. Total income also rose by 18.1 percent to Rs. 330.25 crore from Rs. 279.68 crore.

The stock is now locked at the 20 percent upper limit at Rs. 327. The counter has seen trades of around 59,000 shares, and there are pending buy orders for nearly 5,400-odd shares on the BSE.

In the process, the stock has also soared nearly 45 percent in the last two trading sessions.

Meanwhile, the Sensex has plunged 306 points to 27,651.

Tata Steel slips on CLSA downgrade

CLSA has cut its outlook on the company to 'Sell' from 'Buy'. The investment firm has also reduced its price target to Rs. 290.

Tata Steel is trading on a slippery note on the back of ratings downgrade by a foreign broking firm.

According to media reports, CLSA has cut its outlook on the company to 'Sell' from 'Buy'. The investment firm has also reduced its price target to Rs. 290.

Tata Steel so far in the day has touched a low of Rs. 335, and is now down 1.6 percent at Rs. 336. The counter has seen trades of around 245,000 shares as against the two-week daily average volume of around 808,000 shares on the BSE.

Meanwhile, the Sensex has plunged 231 points to 27,727.

JSW Steel's full year results below expectations, but will improve: Moody's

Chaubal said that subdued domestic demand and a surge in imports from China, Russia and Korea exerted pressure on steel realizations, and steel prices in India fell 26% between April 2014 and March 2015. 

Moody's Investors Service says that JSW Steel Limited's audited consolidated results for the fiscal year ended 31 March 2015 (FY2015) were below Moody's expectations but should improve in FY2016.

"JSW's sales volumes for FY2015 were 3% lower than we had expected. Lower steel realizations year-over-year and a muted correction in domestic iron ore prices led to an annual consolidated EBITDA of INR95.1 billion, which was 14% short of our estimates," says Kaustubh Chaubal, a Moody's Vice President and Senior Analyst.

Chaubal explained that subdued domestic demand and a surge in imports from China, Russia and Korea exerted pressure on steel realizations, and steel prices in India fell 26% between April 2014 and March 2015. By contrast, JSW's steel realizations fell by only 9% over the same period.

"Looking ahead, domestic sales will drive growth at JSW in FY2016," adds Chaubal.

Moody's analysis is contained in its just-released report titled "JSW Steel Limited: Full Year Operating Results Below Expectations, But
Expected Recovery Ahead," and is co-authored by Chaubal, and Vincent Tordo, an Associate Analyst.

Moody's report says that in FY2016, demand for steel in India will be supported by the pick-up in sales for commercial vehicles. The report
also says that JSW expects a 7% increase in sales to 12.9 million tons for FY2016.

In addition, cost pressures will likely ease during FY2016. Moody's report says that while steel prices will remain under pressure, the cut in domestic iron ore and coking coal prices will help ease pressure on margins.

JSW also remains focused on easing margin pressure through cost reduction initiatives such as yield improvement, fuel efficiency, logistics and procurement, and shifts in the road/rail mix.

Moody's expects JSW's leverage metrics to stay within the parameters of its Ba1 corporate family rating over the next 12 months. In particular, Moody's says JSW's leverage should stay just under 4.0x in FY2016. 

FM expects 14-15% growth in Direct Tax collections

The tax base needs to be Increased, Jaitley added.

Finance Minister Arun Jaitley stated that he expect growth of 14-15% in Direct Tax collections this fiscal.

The tax base needs to be Increased, Jaitley added.

Finance Minister added that they can beat FY16 Fiscal Deficit Target.

Jaitley says  that the FY15 Direct Tax collections was up by 9% despite slowing economy.

Karnataka Bank targets net NPA of less than 1%: P Jayarama Bhat

The Bank has posted a net profit of Rs. 4514.50 mn for the year as compared to Rs. 3110.30 mn for the year ended March 31, 2014. 

Karnataka Bank has posted results for the fourth quarter ended 31st March, 2015. The bank  posted a net profit of Rs. 1344.20 million for the quarter ended March 31, 2015 as compared to Rs. 812.10 mn.

Total Income has increased from Rs. 11725.80 mn for the quarter ended March 31, 2014 to Rs. 13080.40 million for the quarter ended March 31, 2015. The Bank has posted a net profit of Rs. 4514.50 mn for the year as compared to Rs. 3110.30 mn for the year ended March 31, 2014. Total Income has increased from Rs. 46944.10 million for the year to Rs. 52054.10 mn.

In an interview with CNBC TV18, throwing some light on the company's performance, P Jayarama Bhat, MD of Karnataka Bank, said that the net profit has increased by 65.50% quarter-on-quarter basis and by 45.16 percent year-on-year basis. There was an improvement in operating profit of about 112.39 percent QoQ and 12.57 percent on YoY basis.

Moreover, the gross non-performing assets has come down from 3.44 percent to 2.95 percent and the net NPA has come down from 2.41 percent to 1.95 percent on the quarterly basis. On the yearly basis, the gross NPA is less than 3 percent and net NPA is less than 2 percent.

Giving the sense of restructuring, he mentioned that the restructuring is around Rs. 2023 crore and out of that around 10% is NPA of Rs. 224 crore. Migration to NPA from the restructuring portfolio for whole year was around Rs. 83.48 crore. Further, the net interest margin stood at 2.36 percent versus 2.40 percent in FY14. The return on assets is at 0.91 percent and for the standalone quarter it was 1.05 percent.

Going forward, company believes that they were able to contain NPAs due to yearly recovery of Rs. 263 crore in the last quarter. Talking about the reason for negative provision, he said, "There was lesser NPA and provision for NPAs was just Rs. 11 crore. There is depreciation on investment as there was a positive effect of Rs 18 crore, which is why the provision was totally around Rs. 4.49 crore and including tax, it was Rs. 59.44 crore".

Lastly, the bank targets net NPA of less than 1%  and gross NPA of less than 2.5%, along with more recoveries in the coming quarters.

Stock Price:
AT 11:40 AM the stock of the bank is trading at Rs. 134. The stock is trading up 1.59% from its previous close which was at Rs. 131.90. It hit a high at Rs. 136.30 and low at Rs. 131.90. The total traded quantity is 1.84 lakh and two-week average quantity is 1.86 lakh 

IPCA Lab gains on removal of RBI ban

Reserve Bank of India has withdrawn restrictions placed on the purchase of shares of IPCA Laboratories as the FIIs investment limit in the company has gone below the revised threshold caution limit. 

In an otherwise subdued market, IPCA Laboratories is trading higher after the RBI removed restrictions on fresh purchases of stocks by the FIIs.

According to media reports, the Reserve Bank of India has withdrawn restrictions placed on the purchase of shares of IPCA Laboratories as the FIIs investment limit in the company has gone below the revised threshold caution limit.

The RBI has further notified that FIIs can now invest up to 35 percent of the paid up capital of IPCA Laboratories.

The stock so far has jumped 3.5 percent to a high at Rs. 676 and is now up 2.9 percent at Rs. 671. The BSE counter has registered trades of around 25,000 shares, as against two-week daily average volume of 16,000 shares.

Meanwhile, the Sensex has tumbled 132 points at 27,825. 

Market slips further

FMCG and metal stocks are witnessing selling pressure; Volatility index has jumped 1.2 percent. The CNX IT and the CNX Pharma indices have shed 0.3 percent each.

The market has extended losses on the back of sustained selling in FMCG and Metal stocks.

The BSE Sensex has tumbled to register a fresh intra-day low at 27,801 and is now down 142 points at 27,816.

The NSE Nifty so far has touched a low at 8,415 and is now down 32 points at 8,427.

The India VIX (Volatility) index has jumped 1.2 percent at 17.1475.

ITC is the major dragger today - the stock alone has accounted for a decline of 56 points for the BSE Sensex and 16 points for the NSE Nifty.

Sectorwise, the CNX FMCG index is the top loser - down 1.7 percent. The CNX Metal index has dropped 1.1 percent.

The CNX IT and the CNX Pharma indices have shed 0.3 percent each.

On positive front, the CNX Realty and the CNX Energy indices have added 0.3 percent. Whereas, the Bank Nifty and the CNX Auto index are trading on a flat note.

Among Nifty-50 stock, ITC is the top percentage loser - down 2.8 percent at Rs. 320. Coal India and Ambuja Cements have tumbled 2 percent each at Rs. 367 and Rs. 237, respectively. Asian Paints has shed 1.8 percent at Rs. 762.

Hindustan Unilever, Vedanta, BHEL, HDFC, Tech Mahindra and Tata Power are among the notable Nifty losers.

The market breadth is slightly positive in the late morning deals. Out of 1,723 stocks have traded on the NSE - 716 stocks have advanced, while 685 stocks have declined. 

BPCL surges after signing pact with SBI

BPCL on Friday after market hours announced that it has entered into a term loan agreement with SBI to set-up a rupee loan facility. 

Bharat Petroleum Corporation (BPCL) has moved from strength-to-strength on the BSE, on the back of positive news flow.

According to a release issued by the company to the BSE, BPCL on Friday after market hours announced that it has entered into a term loan agreement with State Bank of India (SBI) to set-up a rupee loan facility.

Currently, the stock is trading at the highest level of the day - with a jump of almost 3 percent to Rs. 805.

On the BSE, so far 23,000 shares have changed hands at the counter as against the two-week daily average volume of 62,000 shares.

Meanwhile, the BSE Sensex has dropped over 100 points at 27,844. 

City Union Bank surges in early deals

The bank has reported 18.9 percent jump in Q4FY15 net profit at Rs. 99.08 crore when compared with Rs. 83.35 crore. 

City Union Bank has surged over 4 percent in early morning deals on the back of positive news flow.

The bank has reported 18.9 percent jump in Q4FY15 net profit at Rs. 99.08 crore when compared with Rs. 83.35 crore. Total income also rose by more than 10 percent to Rs. 793.64 crore from Rs. 720.65 crore.

Further, media reports indicate that the bank has received the first batch of repayment of Rs 100 crore from SpiceJet.

The stock is now up 3.5 percent at Rs. 103.25. The counter has seen trades of around 42,000 shares so far on the BSE.

Meanwhile, the Sensex has slipped 132 points to 27,825

Lupin jumps on Sensex inclusion

Lupin is trading on a firm note in early morning deals on the BSE, on reports that Tata Power will move out of the Bombay Stock Exchange (BSE) benchmark index, the Sensex, and will be replaced by pharma major Lupin. 

Lupin is trading on a firm note in early morning deals on the BSE, on reports that Tata Power will move out of the Bombay Stock Exchange (BSE) benchmark index, the Sensex, and will be replaced by pharma major Lupin.

Now, Lupin is trading at the highest level of the day - with a surge of almost 2 percent at Rs. 1,768.

The counter has seen trades of around 17,000 shares as against the two-week daily average volume of 136,000 shares.

Meanwhile, the BSE Sensex has shed nearly 100 points at 27,873.

Top corporate news of the day - May 25, 2015

DLF has kept the new sales bookings target for this financial year at last year's level of about Rs.40bn as the company feels that it would take at least 12 months for housing sales to improve.

DLF has kept the new sales bookings target for this financial year at last year's level of about Rs.40bn as the company feels that it would take at least 12 months for housing sales to improve.

Ahead of the upcoming launch of the new version of premium hatchback Jazz in India, Honda has started shipping the vehicle to South Africa from its plant in Rajasthan. 

Reliance Industries plans to fully resume its petrol pump network by March next year as government ending diesel subsidies have given it a level-playing field to compete with state-owned retailers. 

Amtek Auto, one of India's largest integrated component manufacturers, is set to acquire REGE Holding GmBH, a German auto component firm, for an undisclosed amount. This is Amtek's second acquisition in less than a month.

Even as finer details of the gold monetisation scheme are awaited, Kerala-based Muthoot Pappachen Group, which is primarily into gold loans, has set up a separate arm to recycle the precious metal as it seeks to take early mover advantage. 

Kalyan Jewellers is planning to invest up to Rs.18bn by FY2016-17 to expand its footprint across the country, while it targets 30% sales growth at Rs.130bn this year.

United Bank of India has become the first of the 17 lenders to publicly admit that it no longer expects to recover its dues from the beleaguered Kingfisher Airlines. 

Cipla has inked a pact with Uganda's Quality Chemicals to acquire majority stake in the Africa-based firm for a total consideration of over $30mn. 

ArcelorMittal and Steel Authority of India Ltd have signed a memorandum of understanding to set up an automotive steel manufacturing facility through a joint venture in India.

ONGC and Oil India have been exempted from paying fuel subsidy if global oil prices average up to $60 a barrel, but will have to share a part of the burden if rates go higher. 

The Coal India Board has approved a Rs.5150mn plan to procure high-capacity box wagons of 80.5 tonnes each. 

Titan Company is eyeing tier-II cities for opening its showrooms and expanding its market share in watches, jewellery and eyewear products. 

Suven Life Sciences Ltd secured two product patents, one each from Mexico and Singapore, corresponding to the New Chemical Entities for the treatment of disorders associated with neurodegenerative diseases. 

Top Economy news of the day- May 25, 2015

Bucking the overall trend of easing inflation, pulses got costlier by up to 64% in the first year of the Modi government across major metro cities, primarily due to fall in domestic production. 

Bucking the overall trend of easing inflation, pulses got costlier by up to 64% in the first year of the Modi government across major metro cities, primarily due to fall in domestic production.

Mindful of the impact of frauds on banks' financials, the Reserve Bank of India will soon set up a Central Fraud Registry as part of an early warning system. 

Results watch: Gujarat NRE Coke, Jyothy Laboratories in focus

The results which are expected today are Gujarat NRE Coke, Essar Oil, Future Retail, Jyothy Laboratories, Hindustan Motors, Dishman Pharmaceuticals and Chemicals, Atlanta, Bombay Dyeing & Manufacturing, Canara Bank 

The results which are expected today are Gujarat NRE Coke, Essar Oil, Future Retail, Jyothy Laboratories, Hindustan Motors, Dishman Pharmaceuticals and Chemicals, Atlanta, Bombay Dyeing & Manufacturing, Canara Bank, Dhanuka Commercial, Dishman Pharmaceuticals and Chemicals, Eclerx Services, Emami Infrastructure, Fulford (India), Greenply Industries, Hathway, Heidelberg Cement India, Hindustan Motors, Igarashi Motors India, Inox Leisure, JIK Industries, Lycos Internet, Nitin Fire, Pricol, Tara Jewels, Usha Martin, Vardhman Polytex and Va Tech Wabag. 

Sensex, Nifty in red; fmcg, auto stocks drag

The BSE Mid-cap Index is trading down 0.03% at 10,617, whereas BSE Small-cap Index is trading up 0.11% at 11,220. 

At 9:25 AM, the S&P BSE Sensex is trading at 27,958 down 117 points, while NSE Nifty is trading at 8,431 down 28 points.

The BSE Mid-cap Index is trading down 0.03% at 10,617, whereas BSE Small-cap Index is trading up 0.11% at 11,220.

Some buying activity is seen in IT, healthcare, oil & gas, teck and power, and metal sectors, while fmcg, auto and consumer durables sector is showing weakness on BSE.

ONGC, Infosys, Sun Pharma, TCS, HDFC Bank and GAIL are among the gainers, whereas itc, Vedanta, Tata Steel, Bajaj Auto, Tata Motors and State Bank of India are losing sheen on BSE.

The opinions regarding the performance of the government over the last one year may be mixed with industry and brokerages not really subscribing to the upbeat sentiment prevailing a year ago when the BJP-led government stormed into power. Nevertheless, there are many areas where a lot of improvement has set in and people are willing to give time. The MAT issue could continue to cause a dent in sentiment after reports stated that the Dispute Resolution Panel (DRP) of the income-tax department sent notices to foreign portfolio investors (FPIs) on Friday, telling them that the hearing of MAT disputes would start soon. Foreign funds have reportedly pulled out over Rs.14,600 crore (including debt funds) from the Indian market in May itself on account of continued taxation worries, says a report. The huge sell off comes amid worries over imposition of 20 per cent minimum alternate tax on capital gains by overseas investors till April 1, 2015, a report stated.

Indices could get choppy later in the week on account of F&O expiry. Asian markets are in the green with Japan's Nikkei up 0.6% and Hong Kong's Hang Seng index and China's Shanghai index gaining over 1.5% each.

US and European markets are mostly shut today. US stocks ended weaker on Friday after Federal Reserve Chair Janet Yellen indicated that the central bank was poised to raise interest rates this year, in line with Wall Street's expectations.

Dow fell 0.29% while S&P 500 shed 0.22%. Nasdaq ended flat.