Sensex crashes 600 points

The broader market is also witnessed heavy selling pressure, the BSE Midcap and Smallcap indices have declined nearly 2 percent each at 10,527 and 11,094, respectively. 

The key benchmark indices, the BSE Sensex and the NSE Nifty have extended losses, on the back weakness across all sectors after RBI policy.

Weakness is clearly evident in shares like - realty, bank, FMCG, auto, IT, power and metal.

Now, the BSE Sensex is trading at the lowest level of the day - with a drop of almost 2 percent (603 points) at 27,246.

The NSE Nifty has slipped below 8,300-mark, and is now down 181 points at 8,253.

The broader market is also witnessed heavy selling pressure, the BSE Midcap and Smallcap indices have declined nearly 2 percent each at 10,527 and 11,094, respectively.

Among sectors, the BSE Realty index is top loser - down 3 percent at 1,511. Closely followed by, the Bankex down almost 2 percent at 20,760.

The FMCG index has dropped 2.4 percent at 7,736. The Auto index has shed almost 2 percent at 18,653.

The IT, Metal, Power, Capital Goods and Consumer Durables indices are the other notable losers.

The breadth is bearish in the mid-noon deals - out of 2,644 stocks traded on the BSE so far 1,810 stocks have declined, while 732 stocks have advanced.

There is no gainer in Realty space - Prestige Estates has cracked 7.3 percent to Rs. 260. Indiabulls Real Estate has plunged over 5 percent at Rs. 56.

DLF has slipped 4 percent at Rs. 113. HDIL has tumbled over 3.5 percent at Rs. 105. Sobha has dropped over 2 percent at Rs. 420.

Godrej Properties, Unitech, NBCC and Anant Raj are the other significant losers. 

Indian IT Services Market grew 7.1% yoy in CY 2014: IDC

During second half of 2014, compared to same period last year, the market saw slight uptick primarily on the back of higher demand for hosted infrastructure, hosted applications services, custom application development, IT consulting, and application management services. Besides this, there was a renewed focus on infrastructure projects. 

According to IDC’s H2 2014 IT Services tracker data, the Indian IT Services market grew 7.1% year-on-year to reach Rs. 470,708.13 million (US$7,719mn) in calendar year 2014. During second half of 2014, compared to same period last year, the market saw slight uptick primarily on the back of higher demand for hosted infrastructure, hosted applications services, custom application development, IT consulting, and application management services. Besides this, there was a renewed focus on infrastructure projects.
 
Vivek Gautam, Research Manager, IT Services & Software IDC India says, “The expanding start up community and increasing technology adoption by Small & Medium Enterprises (SMEs), who favour OPEX as against CAPEX model of IT, is creating healthy demand for hosted infrastructure, hosted application, managed and datacentre services. The market for these services will continue to grow at rapid pace over next few years”
 
The Indian IT services market remains primarily driven by project-oriented services like systems integration, network consulting and integration, custom application development and IT consulting. When considered together, these services grew year-on-year by 7% (in INR) during H2 2014. The total IT outsourcing services market grew at 6.8% during the same period while support & training services grew at 6.5%.

Among various verticals BFSI and Retail fared better. Within the BFSI vertical new banking licenses awarded by RBI, increasing technology adoption by Non-Banking Financial Companies (NBFCs) and microfinance institutions pushed the demand for IT services. While in Retail vertical emergence of e-commerce continues to be a key growth driver. The new age e-commerce players are not only making technology investments themselves but also are forcing traditional brick and mortar players to embrace technology at wider scale. Some of the other verticals such as Healthcare, Services and Government continued to see healthy demand for IT services.
 
“Indian organizations are increasingly looking at technology as a key business enabler, a means to improve supplier/customer engagement and gain better business oversight. Many of them are spending more on technology including social, mobile, analytics and cloud (SMAC) for the same reasons. For instance today Indian enterprises, across industries, are investing in custom mobile applications for services delivery, managing field workforce, launching targeted marketing campaigns and so on. Many are even integrating applications with backend data for deeper analytics.”, adds Gautam.
 
Forecast
IDC India expects the local IT Services market to grow at a compound annual growth rate (CAGR) of 10.8% (in INR) between 2014 and 2019. In near term services market growth will be driven by license awards for Payment Banks and Small Scale Banks, current government’s pro-technology stance (Digital India, mobile based delivery of citizen services, focus on financial inclusion, spend towards smart cities etc.), burgeoning start-up community and sustained investments across 3^rd platform technologies. 

RBI second Bi-monthly Monetary Policy Statement, 2015-16 by Dr. Raghuram Rajan

RBI cuts rates as expected, however has indicated a long pause before the next move. On the basis of an assessment of the current and evolving macroeconomic situation, RBI has decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.5% to 7.25% with immediate effect. 

Monetary and Liquidity Measures

On the basis of an assessment of the current and evolving macroeconomic situation, it has been decided to:

• Reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.5% to 7.25% with immediate effect;
• Keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0% of net demand and time liabilities (NDTL);
• continue to provide liquidity under overnight repos at 0.25% of bank-wise NDTL at the LAF repo rate and liquidity under 14-day term repos as well as longer term repos of up to 0.75% of NDTL of the banking system through auctions; and
• Continue with overnight/term variable rate repos and reverse repos to smooth liquidity.
• Consequently, the reverse repo rate under the LAF stands adjusted to 6.25%, and the marginal standing facility (MSF) rate and the Bank Rate to 8.25%.

Assessment
 
Since the first bi-monthly monetary policy statement of 2015-16 issued in April 2015, incoming data suggest that the global recovery is still slow and getting increasingly differentiated across regions. In the United States, the economy shrank in Q1 owing to harsh weather conditions, the strength of the US dollar weighing on exports and a decline in non-residential fixed investment. In the euro area, financial conditions have eased due to the European Central Bank’s (ECB) quantitative easing and a depreciating euro. There has, however, been some moderation in composite purchasing managers’ indices (PMI), economic sentiment and consumer confidence in April. In Japan, growth surprised on the upside in Q1, supported by private demand as business spending boosted inventories and personal consumption. For most emerging market economies (EMEs), macroeconomic conditions remain challenging due to domestic fragilities, exacerbated by bouts of financial market turbulence. China continues to decelerate in spite of monetary easing. The recent firming up of crude prices has reduced headwinds to growth for some energy exporters, while increasing them for importers. Even absent a decisive economic recovery or adverse geopolitical shocks, oil prices appear to be volatile.
 
Global financial markets have also been volatile, with risk-on risk-off shifts induced by changing perceptions of monetary policies in the advanced economies. Global currency markets continue to be dominated by the strength of the US dollar, with the G3 currencies reflecting the asynchronicity of their monetary policy stances. Volatility in global bond markets has increased with a number of factors at play: unwinding of European assets by investors due to the Greek crisis; rapidly changing expectations around the Fed’s forward guidance; sharp movements in crude prices; and market corrections due to changes in risk tolerance.
 
As anticipated, the Central Statistics Office has revised downwards its estimate of India’s gross value added (GVA) at basic prices for 2014-15 by 30 basis points from the advance estimates. Domestic economic activity remains moderate in Q1 of 2015-16. Agricultural activity was adversely affected by unseasonal rains and hailstorms in north India during March 2015, impinging on an estimated 94 lakh hectares of area sown under the rabi crop. Reflecting this, the third advance estimates of the Ministry of Agriculture indicate a contraction in foodgrains production by more than 5% in relation to the preceding year’s level. Successive estimates have been pointing to a worsening of the situation, with the damage to crops like pulses and oilseeds – where buffer foodstocks are not available in the central pool – posing an upside risk to food inflation. For the kharif season, the outlook is clouded by the first estimates of the India Meteorological Department (IMD), predicting that the southwest monsoon will be 7% below the long period average. This has been exacerbated by the confirmation of the onset of El Nino by the Australian Bureau of Meteorology.
 
What is clear is that contingency plans for food management, including storage of adequate quantity of seeds and fertilisers for timely supply, crop insurance schemes, credit facilities, timely release of food stocks and the repair of disruptions in food supply chains, including through imports and de-hoarding, need to be in place to manage the impact of low production on inflation. Inflation control will also be helped by limiting the increase in agricultural support prices.
 
Industrial production has been recovering, albeit unevenly. The sustained weakness of consumption spending, especially in rural areas as indicated in the slowdown in sales of two-wheelers and tractors, continues to operate as a drag. Corporate sales have contracted. The disappointing earnings performance could have been worse if not for the decline in input costs. Capacity utilisation has been falling in several industries, indicative of the slack in the economy. While an upturn in capital goods production seems underway, clear evidence of a revival in investment demand will need to build on the tentative indications of unclogging of stalled investment projects, stabilising of private new investment intentions and improving sales of commercial vehicles. In April, output from core industries constituting 38% of the index of industrial production declined across the board, barring coal production. The sustained revival of coal output augurs well for electricity generation and mining and quarrying, going forward. There is some optimism on gas pricing and availability. The resolution of power purchase processes has to be expedited and power distribution companies’ financial stress has to be addressed on a priority basis. Some public sector banks will need more capital to clean up their balance sheets and support lending as investment revives.
 
Leading indicators of services sector activity are emitting mixed signals. A pick-up in service tax collections, sales of trucks, railway freight, domestic air passenger and air freight traffic could augur well for transport and communication and trade. On the other hand, the slowdown in tourist arrivals, railway traffic and international air passenger and freight traffic could affect hotels, restaurants and some constituents of transportation services adversely. The services PMI declined in April 2015, mainly on account of slowdown in new business orders. Community and personal services are likely to be held back by the ongoing fiscal consolidation.
 
In April, retail inflation measured by the consumer price index (CPI) decelerated for the second month in a row, supported by favourable base effects [of about (-) 0.8%] that moderated the rise in the price index for the fourth successive month. Food inflation softened to a contra-seasonal four-month low, with the impact of unseasonal rains yet to show up. Vegetables inflation continued to ease, along with that of other sub-groups such as cereals, oil, sugar and spices. On the other hand, protein items, especially milk and pulses, continued to impart upward inflationary pressures.
 
Fuel inflation rose for the fourth successive month to a twelve-month high, driven by prices of electricity and firewood. Inflation in these components was accentuated by base effects – the recent price uptick coming on top of muted increases a year ago. Inflation excluding food and fuel rose marginally. House rent, education, medical and transport expenses were among the major drivers of inflation in this category. Rural wage growth, although still moderate, picked up. Inflation expectations remain in high single digits, although they may adapt further to current low inflation. Yet, both input and output price pressures remain muted as reflected in the Reserve Bank’s industrial outlook survey. Purchasing managers’ indices also corroborate these developments.
 
Liquidity conditions eased in April 2015 after the tightness in the second half of March 2015 on account of advance tax outflows and financial year-end behaviour of banks. The Reserve Bank’s liquidity management operations were reversed in view of the improvement in liquidity conditions through April. During May, however, rapid increases in currency in circulation and a build-up of government balances resulted in liquidity conditions tightening again. Accordingly, fine tuning operations of varying tenors were conducted, besides the regular overnight repo at fixed rate and 14-day variable rate repo auctions. These injections helped meet the frictional liquidity requirements. In May, the average daily net liquidity injected through LAF fixed rate repos, besides regular 14-day variable rate repos, additional variable rate repos and MSF, was ₹1031 billion as compared with ₹819 billion in April. As a result, weighted average money market rates shadowed the policy rate. Longer term interest rates, particularly gilts, hardened in early May on international cues but eased in the second half of the month, particularly after the issuance of the new benchmark bond.
 
Merchandise export growth has weakened steadily since July 2014 and entered into contraction from January 2015 through April, with a recent shrinking of even volumes exported. The deterioration in export performance affected economies across Asia as global demand fell and the fall in commodity prices impacted terms of trade for commodity exporters. From December 2014 onwards, merchandise import growth also turned negative, led by a sharp decline in the volume of oil imports as inventory build-up by refineries subsided. Gold imports spiked in the month of March and remained elevated in April owing to festival demand and regulatory relaxations. Notably, the volume of imports has been recording increases, despite the value decline. Given these developments, the reduction in the current account deficit resulting from the sharp decline in oil prices has begun to reverse, though the size of the deficit is expected to be contained to about 1.5% of GDP this year. Net exports are, therefore, unlikely to contribute as much to growth going forward as they did in the past financial year. Consequently growth will depend more on a strengthening of domestic final demand. While portfolio and direct foreign investment flows were buoyant during 2014-15, with net foreign direct investment to India at US$ 36.6 billion and net portfolio inflows at US$ 41 billion, the year 2015-16 has begun with net portfolio outflows in the wake of a reduction in global portfolio allocations to India. Foreign exchange reserves are around US$ 350 billion, providing a strong second line of defence to good macroeconomic policies if external markets turn significantly volatile.
 
Policy Stance and Rationale
 
Banks have started passing through some of the past rate cuts into their lending rates, headline inflation has evolved along the projected path, the impact of unseasonal rains has been moderate so far, administered price increases remain muted, and the timing of normalisation of US monetary policy seems to have been pushed back. With low domestic capacity utilization, still mixed indicators of recovery, and subdued investment and credit growth, there is a case for a cut in the policy rate today.
 
Yet, of the risks to inflation identified in April, three still cloud the picture. First, some forecasters, notably the IMD, predict a below-normal southwest monsoon. Astute food management is needed to mitigate possible inflationary effects. Second, crude prices have been firming amidst considerable volatility, and geo-political risks are ever present. Third, volatility in the external environment could impact inflation. Therefore, a conservative strategy would be to wait, especially for more certainty on both the monsoon outturn as well as the effects of government responses if it turns out to be weak. With still weak investment and the need to reduce supply constraints over the medium term to stay on the proposed disinflationary path (to 4% in early 2018), however, a more appropriate stance is to front-load a rate cut today and then wait for data that clarify uncertainty. Meanwhile banks should pass through the sequence of rate cuts into lending rates.
 
Assuming reasonable food management, inflation is expected to be pulled down by base effects till August but to start rising thereafter to about 6.0% by January 2016 – slightly higher than the projections in April. Putting more weight on the IMD’s monsoon projections than the more optimistic projections of private forecasters as well as accounting for the possible inflationary effects of the increases in the service tax rate to 14%, the risks to the central trajectory are tilted to the upside (Chart 1).

Reflecting the balance of risks and the downward revision to GVA estimates for 2014-15, the projection for output growth for 2015-16 has been marked down from 7.8% in April to 7.6% with a downward bias to reflect the uncertainties surrounding these various risks (Chart 2).

Strong food policy and management will be important to help keep inflation and inflationary expectations contained over the near term. Furthermore, monetary easing can only create the enabling conditions for a fuller government policy thrust that hinges around a step up in public investment in several areas that can also crowd in private investment. This will be important to relieve supply constraints and aid disinflation over the medium term. A targeted infusion of bank capital into scheduled public sector commercial banks, especially those that implement concerted strategies to clean up stressed assets, is also warranted so that adequate credit flows to the productive sectors as investment picks up.
 
The third bi-monthly monetary policy statement will be announced on August 4, 2015.

New set of bank licenses in August says RBI

Rajan added that Banks should pass through Sequence of lending rate Cuts. 

RBI Governor Rajan said that we are likely to announce Bank licences by August-end.

Rajan added that Banks should pass through Sequence of lending rate Cuts.

BHEL bags Contract for setting up 4,000 MW Supercritical Thermal Power Project

Significantly, valued at at Rs.179,500 Million, this is also one of the highest value orders ever placed in the capital goods sector in India. 

Bharat Heavy Electricals Limited (BHEL) has achieved a new landmark by securing the single-largest order in its history for setting up a 4,000 MW (5x800 MW) supercritical thermal power project from Telangana State Power Generation Corporation Limited (TSGENCO). Significantly, valued at at Rs.179,500 Million, this is also one of the highest value orders ever placed in the capital goods sector in India.

Notably, close on the heels of placing two major orders on BHEL, the newly formed Telangana state utility, TSGENCO has entrusted BHEL with this order for setting up the 5x800 MW thermal power plant, with supercritical parameters, on Engineering, Procurement and Construction (EPC) basis, at Damaracherla in Nalgonda District in the state, named as Yadadri Thermal Power Project.

Earlier, in December, 2014, TSGENCO had placed an order on BHEL for setting up Telangana’s first Supercritical Thermal Power Plant of 800 MW rating, also on EPC basis, at Kothagudem, followed by an order for the 4x270 MW Bhadradari TPS at Manuguru in Khammam district in March 2015. This landmark order is a testimony to BHEL’s proven technological excellence as also its capability in executing power projects of this magnitude on EPC basis. The project would be carried out on fast track basis with both BHEL and TSGENCO setting up teams to expedite clearances and speedy execution of the project.

BHEL’s scope of work in the project includes design, engineering, manufacture, supply, construction, erection, testing & commissioning of 5x800 MW thermal sets on EPC basis. The key equipment for the contract will be manufactured at BHEL’s Trichy, Haridwar, Hyderabad, Bhopal, Ranipet, Bangalore and Jhansi plants, while the company's Power Sector construction division will be responsible for civil works and erection / commissioning of the equipment. BHEL has been a long standing partner in the development of the erstwhile combined state of Andhra Pradesh with 78% of the coal-based power stations having been commissioned by the company.

In FY 2014-15, these plants operated at a high Plant Load Factor (PLF) of 83.5% against the national average of 65.5%. Projects equipped with BHEL-supplied sets such as Ramagundam, Vijayawada, Kothagudem & Rayalaseema have consistently been winning meritorious awards from the Ministry of Power for outstanding performance. As testimony to BHEL's capabilities in setting up of power projects as well as the performance of these plants, TSGENCO has entered into an MoU with BHEL for construction of new thermal power plants totalling to 6,000 MW in the state. All these power plants are expected to commence generation on fast track basis to meet the state's increasing demand for power, with power being identified as a crucial factor for the development of the state.

To overcome the current uncertainty of coal supply, BHEL shall be supplying its in-house developed fuel flexible Boiler, which is capable of firing the entire range, from 100% Indian to 100% imported mix of coal. This design has been developed by BHEL with its vast experience of over five decades of working with various types of coal. This will provide security against variation in design coal and the coal actually available during operation, thereby offering operational flexibility to ensure uninterrupted generation of electricity. Notably, with this order, BHEL has so far contracted 12 sets of main plant equipment, comprising boilers and turbine generators, of 800 MW rating.

In addition, BHEL has contracted another 4 boilers of this rating. This order has once again reinforced BHEL’s position at the forefront of power equipment suppliers in India. BHEL is the largest manufacturer of power generation equipment in the country and has been a major partner in the country's vision to achieve self-reliance in energy. The company has established the capability to deliver power plant equipment of 20,000 MW per annum to fully meet India's demand for power equipment with technology suitable for Indian conditions developed through in-house R&D. 

Sensex slips over 200 points; RBI cuts Repo rate

The BSE Mid-cap Index is trading down 0.32% at 10,712, whereas BSE Small-cap Index is trading down 0.42% at 11,233.

At 11:18 AM, the S&P BSE Sensex is trading at 27,581 down 268 points, while NSE Nifty is trading at 8,358 down 75 points.

The BSE Mid-cap Index is trading down 0.32% at 10,712, whereas BSE Small-cap Index is trading down 0.42% at 11,233. RBI cuts Repo Rate by 25 bps to 7.25%
  
Bharti Airtel, TCS, M&M and HDFC Bank are among the gainers, whereas Hero MotoCorp, ITC, Tata Power, Wipro and HDFC are losing sheen on BSE.

In the FMCG space - Unno Industries is the top loser - down almost 5 percent to Rs. 1.95.

Marico has plunged nearly 3 percent at Rs. 433. ITC has dropped 2 percent at Rs. 325 after Maharashtra Band sale of loose cigarettes.

LT Foods, Godfrey Phillips, Bombay Burmah and Kokuyo Camlin are the other significant losers.

On the other hand, Safal Herbs soared almost 5 percent at Rs. 36.60. Nestle India surged over 3 percent at Rs. 6,884, on the back of positive news flow.

Rasoya Proteins, Venky's India and Som Distilleries are the other prominent gainers 

As expected; RBI cuts Repo rate by 25bps

RBI has kept cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent. 

On the basis of an assessment of the current and evolving macroeconomic situation, RBI has decided to:

reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.5 per cent to 7.25 per cent with immediate effect;

keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL);

continue to provide liquidity under overnight repos at 0.25 per cent of bank-wise NDTL at the LAF repo rate and liquidity under 14-day term repos as well as longer term repos of up to 0.75 per cent of NDTL of the banking system through auctions; and

continue with overnight/term variable rate repos and reverse repos to smooth liquidity.

Consequently, the reverse repo rate under the LAF stands adjusted to 6.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 8.25 per cent.

Hero MotoCorp slips after poor sales data

The company has reported 5 percent drop in total sales for May at 569,876 units as against 602,481 units in the corresponding month last year. 

Hero MotoCorp is trading on a feeble note in early morning deals on the BSE, on the back of poor sales data.

According to a release issued by the company to the BSE, Hero MotoCorp yesterday reported 5 percent drop in total sales for May at 569,876 units as against 602,481 units in the corresponding month last year.

The stock tumbled to a low of Rs. 2,636, and is now down 2.3 percent at Rs. 2,647.

The counter has seen trades of around 8,576 shares as against the two-week daily average volume of 23,000 shares.

Meanwhile, the BSE Sensex has dropped 169 points at 27,680. 

Infosys employees can wear casuals on weekdays

The company reportedly said such a decision had taken into consideration the requests made in the past on various platforms. 

Infosys has allowed its employees to wear casuals even during the weekdays, says report.

The company reportedly said such a decision had taken into consideration the requests made in the past on various platforms.

Earlier, its staffers were allowed to wear casual clothes such as jeans only on Friday. 

ITC slips 1.6% after Maharashtra Govt bans loose cigarettes

The stock has hit a high of Rs. 330 and a low of Rs. 326 on BSE today.

Shares of ITC were trading lower 1.6% at Rs. 327 after Maharashtra Govt has banned sale of loose cigarettes, according to reports.

The stock opened at Rs. 329.60 as against the previous close of Rs. 332 on BSE. It has hit a high of Rs. 330 and a low of Rs. 326 on BSE today.

Total traded quantity on the counter stood at over 0.71 lk shares on BSE.

Meanwhile, the Sensex is down 149 points at 27,691. 

Adani Ports jumps on RBI nod for hike in foreign investment limit

The Cental Bank has now allowed Foreign Institutional and Foreign Portfolio Investment upto 40 percent of the paid-up capital of the company.

Adani Ports and Specail Economic Zone jumped 2.5 percent to a high of Rs. 321 this morning on the back of RBI (Reserve Bank of India) nod for higher cap on foreign investment limit.

According to reports, the Cental Bank has now allowed Foreign Institutional and Foreign Portfolio Investment upto 40 percent of the paid-up capital of the company.

The stock is now up 1.5 percent at Rs. 316, and around 150,000 shares have changed hands at the counter on the BSE.

Meanwhile, the Sensex has slumped 165 points to 27,684. 

Top corporate news of the day - June 2, 2015

Aurobindo Pharma Limited has received final approvals from the US Food and Drug Administration to manufacture and market anti-infective Metronidazole tablets of 250 mg and 500 mg dosages. 

Aurobindo Pharma Limited has received final approvals from the US Food and Drug Administration to manufacture and market anti-infective Metronidazole tablets of 250 mg and 500 mg dosages.

Jet Airways announced a limited period offer of discount of up to 30% on base fares on its premier and economy-class tickets for travel beyond September 14.

BHEL said it has bagged a Rs. 3.7bn order for supply and installation of a power cycle piping (PCP) package for Barh project of NTPC.

Hindustan Construction Company said it has sold its entire 26% stake in Mumbai-based Vikhroli Corporate Park to Blackstone Purchase Entities for about Rs2bn.

Larsen & Toubro (L&T) said it has bagged orders worth Rs11bn across various business verticals last month. 

After failing to get private partners to develop four of its coal bed methane (CBM) blocks twice, Oil and Natural Gas Corporation has now decided to go ahead and explore these blocks on its own at an investment of Rs50bn. 

IDBI Bank has eased the restrictions on corporate lending after it improved performance on Priority Sector Lending (PSL) in 2014-15.

Thomas Cook India's subsidiary Quess Corp entered into a pact with Qatar-based Transfield Services (Qatar) WLL to acquire 49 % stake for an undisclosed amount. 

Indian Oil Corp has halved its term oil import deal with Kuwait to 100,000 barrels per day (bpd) as the refiner cuts its dependence on long-term purchases in favour of cheaper spot deals.

Sundaram Finance which is mainly into financing commercial vehicles (CVs) and cars is looking to scale up its presence in tractor and construction equipment segments.

Cairn India, which has suffered due to low oil prices, wants the government to allow it to export crude oil, quickly extend its contract for the Rajasthan block and increase the price of natural gas, its finance chief said.

Star India has teamed up with DFL Sports Enterprises, the sales entity of the DFL (German football league) to bring Bundesliga football to fans in India, Bangladesh, Bhutan, Nepal, Sri Lanka and Maldives exclusively. 

Auto sales in May: No Shift in Sector Trends!

Auto sales in May continued with the sector trends exhibited in April - strong PV/CV performance, but weak sales in Motorcycles and tractor segments, says a Jeffries report.

Maruti & AL both outperformed the industry growth and have gained further mkt share in their respective segments. Monsoon pattern and new launches in the coming months in Scooter and UV1 segments will likely be the trigger for shift in sector trends going forward, a report added.
 
Auto sales in May continued with the sector trends exhibited in April - strong PV/CV performance, but weak sales in Motorcycles and tractor segments, says a Jeffries report. Maruti & AL both outperformed the industry growth and have gained further mkt share in their re-spective segments. Monsoon pattern and new launches in the coming months in Scooter and UV1 segments will likely be the trigger for shift in sector trends going forward, the report authored by Apurva Kumar and Govindarajan Chellappa added.
 
Following are the highlights of the report:
 
Maruti's entry level segment registered another month of strong growth (+21% YoY), likely led by increase in first time urban buyers. UV sales, however, shrunk sharply for Tata Motors (-15% YoY), and Mahindra (-5% YoY), and was muted for Maruti (+6% YoY) as higher diesel prices post diesel deregulation have shifted consumer preference towards petrol vehicles.
 
Motorcycle and tractor sales remained weak due to rural slowdown, a trend that is likely to persist in the near-term. Hero registered 5% decline in sales while M&M tractor sales were down 20% this month. Scooter & premium motorcycles sales remained robust in May.
 
MHCV segment continued with the uptick in volumes off a low base. AL has likely gained further mkt share in MHCV space with a growth of 41% YoY, more than twice the growth for Tata Motors. Going for-ward, we expect the CV cycle to further strengthen from here and volume recovery to sustain.
 
Weighted Input commodity price index for CVs to 2Ws is down c15-16% YoY as the prices of steel (- 15.2% YoY) and rubber (-14.9% YoY) have remained benign.
 
Petrol consumption registered double digit growth for 5th month in a row off a strong base while Diesel consumption grew 9% despite a weaker base. Post diesel de-regulation, petrol consumption has in-creased 14% YoY, while diesel consumption has grown only 2% YoY.
 
Gross bank credit growth for personal vehicle loans registered a steep fall in April likely due to: a) lower disbursals; and b)write-offs during fiscal end.
 
Our channel checks reveal that Maruti has increased discounts on Alto and WagonR in metro cities in the month of June.
 
Dealers in UK have indicated that the waiting period for JLR's latest offering XE is close to 16-20 weeks currently. 

Rupee opens at 63.70/$

The local unit hit a low of 64.03 and a high of 63.98 against the US dollar.

The rupee today opened at 63.70 against the US dollar. The local unit hit a low of  64.03 and a high of 63.98 against the US dollar.

On Monday, the rupee closed at 63.70 against the US dollar.

Global indices are mostly higher. The Dow rose 0.16%, the S&P 500 gained 0.21%, and Nasdaq added 0.25%. 

Japan's Nikkei was higher while Hong Kong's Hang Seng index was lower.

 China's Shanghai index was marginally higher. 

Sun Pharma and AstraZeneca enter into distribution agreement for ticagrelor in India

The collaboration enables AstraZeneca to expand usage of this molecule through wider reach to physicians and thereby benefiting a greater number of ACS patients. 

Sun Pharmaceutical Industries Ltd and AstraZeneca Pharma India Limited (AZPIL) announced that AZPIL and  Sun Pharma have entered into a distribution services agreement in India for AstraZeneca’s brand “Axcer”, a new brand of ticagrelor, a drug used for the treatment of acute coronary syndrome (ACS) . AZPIL already has a brand under the trademark “Brilinta”, for ticagrelor molecule, launched and marketed by AZPIL in India since 2012.

Abhay Gandhi, CEO - India Business, Sun Pharma said, “We are happy to collaborate with AstraZeneca to provide customers access to this latest generation treatment option for ACS. Such collaborations are also a part of our stated policy of becoming the partner of choice for promotion and distribution of innovative pharmaceutical products in the country.”

Sanjay Murdeshwar, Managing Director, AstraZeneca Pharma India Limited said, “We are pleased to collaborate with Sun Pharmaceuticals to bring this innovative treatment solution to a larger number of ACS patients in India. Ticagrelor works by preventing the formation of new blood clots and maintains blood flow in the body, helping reduce a patient’s risk of another heart attack or cardiovascular-related death.”

Sun Pharma will be promoting and distributing “Axcer” brand in India. This collaboration enables AstraZeneca to expand usage of this molecule through wider reach to physicians and thereby benefiting a greater number of ACS patients. It strengthens Sun Pharma’s cardiology portfolio with the addition of a new patented therapy.  

Sensex, Nifty slip ahead of RBI meet

The BSE Mid-cap Index is trading down 0.22% at 10,690, whereas BSE Small-cap Index is trading down 0.21% at 11,280. 

At 9:28AM, the S&P BSE Sensex is trading at 27,754 down 104 points, while NSE Nifty is trading at 8,401 down 33 points.

The BSE Mid-cap Index is trading down 0.22% at 10,690, whereas BSE Small-cap Index is trading down 0.21% at 11,280.

Some buying activity is seen in healthcasre, consumer durable goods, consumer durables and IT sectors, while banking, fmcg and capital goods sector are showing weakness on BSE.

Tata Motors, BHEL, TCS, Sun Pharma and ONGC are among the gainers, whereas Hero MotoCorp, ITC, Tata Power, Wipro and HDFC are losing sheen on BSE.

Interest rate sensitives especially banking, auto and real estate will anxiously await the developments at the RBI. Reliance could add some gains after it sold its stake in a US shale oil and gas pipeline JV to Enterprise Products Partners for US$1.07bn.

The combined Index of Eight Core Industries stands at 162.4 in April, 2015, which was 0.4 % lower compared to the index of April, 2014. Its cumulative growth during April to March, 2014-15 was 3.6 %.

The headline HSBC India Purchasing Managers' Index (PMI), surged to 52.6 in May, from 51.3 in April, with levels of production and new orders rising at the fastest rates since January 2015. 

Global indices are mostly higher. The Dow rose 0.16%, the S&P 500 gained 0.21%, and Nasdaq added 0.25%. Japan's Nikkei was higher while Hong Kong's Hang Seng index was lower. China's Shanghai index was marginally higher.

Reliance Industries Limited (RIL) has sold its entire 49.9% stake in a US shale oil and gas pipeline joint venture to New York-listed Enterprise Products Partners for USD 1.073 billion. Reliance Holding USA, Inc. (“Reliance”), a subsidiary of Reliance Industries Limited (“RIL”), announced the signing of definitive agreements for the sale of its entire holding of 49.9% interest in EFS Midstream LLC (“EFS”) to an affiliate of Enterprise Products Partners L.P. (“Enterprise”).

Sun Pharmaceutical fell after weaker-than-expected fourth quarter results and in the bargain Reliance Industries' Mukesh Ambani was once again the richest Indian.