Fitch affirms Power Finance Corp at 'BBB-'/Stable

This reflects the entity's public sector status, government ownership, and strong operational and strategic ties with the government. PFC is, therefore, classified as a credit linked entity under Fitch Ratings' criteria. 

Fitch Ratings has affirmed India-based Power Finance Corporation Limited's (PFC) Long-Term Issuer Default Rating (IDR) at 'BBB-'. The Outlook is Stable. Fitch has also affirmed PFC's senior unsecured rating and USD1bn senior unsecured medium-term note programme at 'BBB-'.

PFC's ratings are equalised with those of India (BBB-/Stable). This reflects the entity's public sector status, government ownership, and strong operational and strategic ties with the government. PFC is, therefore, classified as a credit linked entity under Fitch Ratings' criteria. The ratings also reflect PFC's healthy financial performance and low delinquency ratio.

KEY RATING DRIVERS

PFC is one of two public financial vehicles that provide funds exclusively to the Indian power sector and is also the largest lender to the sector. The government of India has also appointed PFC as the sole central agency implementing several nationwide power reform projects aimed at reducing the state power utilities' technical and commercial losses and improving their operational efficiency.

The government owns 72.8% of PFC and provides PFC support by allowing it to issue tax-free bonds. PFC's status as an infrastructure finance company allows it to raise foreign commercial borrowing of up to 75% of its owned funds (including foreign currency loans outstanding) or USD750m without prior approval from the Reserve Bank of India. Fitch expects PFC to continue to receive government support.

The Ministry of Power signs annual memorandums of understanding with PFC that set operational and financial performance targets. It reviews these quarterly. The Comptroller and Auditor General of India appoints PFC's auditors annually.

At end-March 2015, 69% of PFC's outstanding loan portfolio was extended to the state power utilities, which inherently have weak credit profiles. Nevertheless, the financial performances of the state power utilities have improved in the past two years because the government has raised electricity tariffs and launched a financial restructuring package for the utilities.

PFC's capital adequacy ratio improved to 20.34% at end-March 2015 (end of the financial year 2015), from 20.10% at end-FY14, and also above the regulatory requirement of 15%. PFC's healthy profitability is underpinned by its comfortable interest spread and lean operating cost structure. Fitch expects PFC's net profit to increase by 20%-25% a year during FY15-16, driven by Fitch's forecast of 20% annual growth in outstanding loans and the company's ability to maintain its interest spread at the current level over the period.

Concentration risk arises from PFC's exposure to the power sector, with the top 10 borrowers accounting for around 43% of its total exposure at end-FY15. However, this risk is mitigated by the guarantees from state governments for part of the loans extended to state utilities, and the use of escrow accounts in the case of state sector borrowers. In the case of private-sector borrowers, security is obtained through, among other things, trust and retention account mechanisms, first priority pari-passu charge-on project assets, collateral, personal/corporate guarantees and the critical role that PFC plays in providing infrastructure financing to its borrowers.

RATING SENSITIVITIES

Positive rating action would stem from a similar change in the ratings of the sovereign in conjunction with continued strong support from the state.

Significant changes to PFC's legal status that would lead to a dilution of control by the government or deterioration in the likelihood or timeliness of support by the sovereign may result in the ratings being notched down from the sovereign ratings. Further dilution in the state's shareholding to less than 51% may lead Fitch to change its approach to the rating to a standalone basis (from the top down), which may result in a downgrade

US economy growth prospects good, but pockets of vulnerability: Christine Lagarde

As always, there are risks and uncertainties to the outlook. For example, further delay of the housing recovery and the strong dollar notwithstanding the latest improvement in the trade balance could be a drag on future growth. 

This year we have also undertaken a Financial Sector Assessment Program with the United States. We conduct these once every 5 years for systemically important countries and it is a comprehensive exercise looking at the whole U.S. financial system.
 
Given this important work, we have focused our review of the U.S. economy on financial stability risks and the appropriate policies to mitigate them, as well as looking at recent movements in the U.S. dollar and the timing, form, and impact of interest rate normalization by the Fed.
 
A more detailed report on the U.S. economy and on the financial sector will be available on July 8.
 
Economic outlook
 
Yet again, the review took place against the background of a shaky first quarter for the U.S. economy. And we revised our growth forecast down to 2.5% for 2015. This is largely due to those factors that affected the first quarter.
 
But this is not our main message. Our main point is that we still believe that the underpinnings for a continued expansion are in place. The labor market has steadily improved over the last year—job growth has averaged about 250,000 per month— and financial conditions remain very accommodative. Moreover, we expect cheaper oil prices to boost consumption in the remainder of 2015, although lower oil prices is going to continue taking a bite out of oil-related investment, as we saw in the first quarter.
 
As always, there are risks and uncertainties to the outlook. For example, further delay of the housing recovery and the strong dollar—notwithstanding the latest improvement in the trade balance—could be a drag on future growth. Nevertheless, when we look at the whole picture, we believe that growth in the coming quarters will be 3% or higher.
 
We see inflation pressures as muted. Long-term unemployment and high levels of part-time work both point to remaining employment slack. Wage indicators on the whole have shown only tepid growth. When combined with dollar appreciation and cheaper energy costs, we expect inflation to start rising later in the year, but only slowly, reaching the Federal Reserve’s 2% medium-term objective by mid 2017.
 
Over the medium term, as we highlighted last year, there is still much work to be done. Our forecasts of potential growth are now around 2%—a far cry from the over 3% average growth rates we saw before the Great Recession.
 
This leads to our policy recommendations in three key areas.
 
Monetary policy
 
On monetary policy, as we have noted before, the Fed’s first rate increase in almost 9 years is being carefully prepared and telegraphed. Nevertheless, regardless of the timing, higher U.S. policy rates could still result in significant market volatility with financial stability consequences that go well beyond U.S. borders.
 
In weighing these risks, we think there is a case for waiting to raise rates until there are more tangible signs of wage or price inflation than are currently evident.  Even after the first rate increase, a gradual rise in the federal funds rate will likely be appropriate. Such a path may create a modest and temporary rise of inflation above the Fed’s medium-term goal— perhaps up toward 2½%. However, pursuing a cautious and gradual approach to interest rate normalization would provide valuable insurance against the risk of disinflation and needing to cut rates back to zero.
 
In the coming months, continued clear and effective communication by the Fed will be more important than ever. Last year we made some recommendations on the communications toolkit—such as scheduling press conferences after each Federal Open Market Committee (FOMC) meeting and publishing a quarterly monetary report. We recognize the difficulties with adding more communication, but we continue to believe it merits consideration.
 
Financial stability
 
Our team has taken a detailed and comprehensive look at the health of the financial sector under our Financial Stability Assessment Program.
 
Much has been done over the past several years to strengthen the U.S. financial system. It will be important to ensure that this progress—including the legislative advances in the Dodd Frank Act—is not rolled back. Diluting the important progress made would clearly be undesirable.
 
It also seems clear that risks have built up during the long period of exceptionally low interest rates. Nevertheless, today, the data point toward a system with pockets of vulnerabilities rather than one with broad-based excesses. But we shouldn’t minimize these risks. These pockets could create serious, macro-relevant sources of financial instability both here and abroad. Some of our concerns include the migration of intermediation to so-called “shadow banks” and the potential for insufficient liquidity in a range of fixed income markets, particularly as these markets come under stress. I know that the U.S. authorities are investing heavily in understanding and assessing these issues.
 
Some key policy recommendations to reduce financial stability risks include:
 
Giving all the individual Financial Stability Oversight Committee (FSOC) members an explicit financial stability mandate so as to further strengthen the effectiveness of the FSOC.
 
Undertaking a concerted effort to provide the FSOC and the Office of Financial Research with the data they need to build a comprehensive view and analysis of systemic risks.
 
Updating the regulatory regime in the insurance sector to create an independent and well-resourced body that has a nationwide remit.
 
There are further details, of course, in the concluding statement.
 
Fiscal Policies
 
As we have said before, given our forecast of a steady rise in the public- debt-to-GDP ratio, it remains critically important to adopt and implement a credible medium-term fiscal plan. This requires actions on tax reform, social security reform, and steps to contain healthcare costs.
 
Tackling these fiscal challenges will provide scope to expand the near-term budget envelope for measures to support future growth, job creation, and productivity. Here, I would prioritize infrastructure spending, better education spending, and policies that raise labor force participation including steps like subsidized childcare assistance.
 
In conclusion: 

• We believe near-term U.S. growth prospects are good.
• It is better to wait for stronger signs of inflation pressures and have an interest rate hike in the first half of 2016.
• 
  
• Even after the initial step to raise rates, a gradual rise in the federal funds rate will likely be appropriate.
• And although important progress has been made to strengthen the U.S. financial system, there is more to be done to address the pockets of vulnerability.

TCS slips on turning ex-dividend

The stock is down over a percent in noon deals.

TCS slipped nearly 1.5 percent to touch a low of Rs. 2,570 afte the stock turned ex-dividend for Rs. 24 today.

The stock is now down a percent at Rs. 2,578, and around 21,000 shares have changed hands so far on the BSE.

Meanwhile, the Sensex has gained 56 points at 26,869. 

IT Newsletter - June 01 to 05, 2015

Infosys is on track to meet full year revenue guidance of 10%-12% growth, chief executive Vishal Sikka reportedly said.

Top News

Infosys on track to meet revenue guidance: Vishal Sikka

Infosys is on track to meet full year revenue guidance of 10%-12% growth, chief executive Vishal Sikka reportedly said.

The company is planning to implement new incentive structure that may include a different stock option plan, Sikka said at an investor conference.

Sikka also stated that said company bagged six major deals this quarter that would contribute more than $50 million in annual revenue.

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

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”.

Infosys sets up investment panel to oversee acquisitions: Reports

Infosys has formed an investment committee on its board to oversee new acquisitions and large investments, according to reports.

A report says that the committee is being chaired by new board member and managing director of Omidyar Network's India operations Roopa Kudva.

Infosys had cash and cash equivalents of about $5.2 bn, as of March 31, 2015.

The company is eyeing an ambitious target of $20 billion of revenue by 2020.

Domestic News

Ashok Lalla resigns from Infosys: Reports

Global Head - Digital Marketing for Infosys, Ashok Lalla has resigned from Infosys.

A report stated that Lalla will don a new hat as Digital Advisor to brands and agencies.

Ashok added, ". In my new role, I will advise brands on how to orchestrate the use of digital effectively to deliver greater business impact, and will work with the brands' leaders and their partners."

With 16 years of experience, Lalla has helped brands in perfecting digital presence and has extensive experience both as a client and an agency leader, says a report.

Wipro partners with COMPAREX

Wipro a leading global information technology, consulting and business process services company, announced a strategic alliance and partnership for its Microsoft Licensing Solution Provider (LSP) business in India with COMPAREX, a global IT service provider specializing in software procurement, license management and technology consulting. Wipro has been one of the largest Microsoft LSPs in India for over a decade.

With the licensing industry constantly maturing, the need to focus on core competencies such as providing IT and business services, managing client relationships etc. has intensified. Wipro has therefore formed a partnership alliance with COMPAREX India, to provide the back-office support for its Microsoft LSP business in India. This enables Wipro to focus on its customers with a resource-specific approach and ensures its ownership of the entire customer relationship.

Soumitro Ghosh, Chief Executive, Wipro Infotech said, “This partnership will undoubtedly increase the focus on growth strategies for both COMPAREX India and Wipro along with providing value to the Microsoft LSP customers in India.”

Mastek board appoints Jamshed Jussawalla as CFO

Mastek Ltd has announced that pursuant to the reconstitution of the Board of Directors of the Company, post the Scheme of Arrangement becoming effective, the following are the decisions taken by the Board of Directors of the Company at their Meeting held on June 01, 2015;

Accepted resignation of Radhakrishnan Sundar as Executive Director of the Company with effect from June 01, 2015 on his appointment as Executive Director of Minefields Computers Limited (to be renamed as Majesco Limited).

Accepted resignation of Ketan Mehta and Dr. Arun Maheshwari as Directors of the Company with effect from June 01, 2015 on their appointment as Directors of Minefields Computers Limited (to be renamed as Majesco Limited).

Just Dial approves buy-back of equity shares

Just Dial Ltd has announced that the Board of Directors of the Company at its meeting held on June 04, 2015, inter alia, has approved the proposal to buyback the fully paid-up equity shares of face value of Rs. 10 each of the Company (“Equity Shares”) from the shareholders of the Company on a proportionate basis through a tender offer (the “Buy-back”).

The Buy-back shall be up to 25% of the aggregate of paid-up capital and free reserves of the Company at a maximum price Rs. 1,550 per Equity Share, subject to the approval of the shareholders of the Company and approvals of statutory, regulatory or governmental authorities as may be required under applicable law.

Infosys completes acquisition of Skava

Infosys completed the acquisition of Kallidus Inc. (d.b.a Skava) and its affiliate, a leading provider of digital experience solutions, including mobile commerce and in-store shopping experiences to large retail clients.

The acquisition is in accordance with the terms set out in the agreement announced on April 24, 2015.

The acquisition of Skava is part of Infosys’ strategy to help clients bring new digital experiences to their customers through IP-led technology offerings, new automation tools and unparalleled skill and expertise in these new emerging areas.

IBM appoints former Infosys consulting head Stephen Pratt: Reports

Former Infosys consulting head Stephen R Pratt has joined the International Business Machines (IBM) where he will work on the company's pathbreaking Watson project, according to reports.

A report said that Pratt joins IBM this month and will be working out of the company's San Francisco and New York offices.

Prior to IBM, Pratt worked at TPG Capital, says report.

Infosys employees can wear casuals on weekdays

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.

International News

Spending on Business Process Management suites to reach $2.7 bn in 2015: Gartner

Worldwide spending on business process management (BPM) software is set to grow 4.4 percent to reach $2.7 billion in 2015, according to the latest forecast from Gartner, Inc. As organizations are beginning their digital transformation — rethinking their business models and processes to address customer and constituent expectations — a shift toward using what Gartner terms an intelligent business process management suite (iBPMS) is underway.

Ahead of the Gartner Business Process Management Summit in Sydney next week, Gartner research director Rob Dunie said that managing business processes effectively is a difficult challenge for today's business leaders, because many of the systems that are used within processes are rigid and difficult to change rapidly.

Intel to acquire Altera for $16.7 bn

Intel Corporation and Altera Corporation announced a definitive agreement under which Intel would acquire Altera for $54 per share in an all-cash transaction valued at approximately $16.7 billion.

The acquisition will couple Intel's leading-edge products and manufacturing process with Altera's leading field-programmable gate array (FPGA) technology. The combination is expected to enable new classes of products that meet customer needs in the data center and Internet of Things (IoT) market segments. Intel plans to offer Altera's FPGA products with Intel Xeon processors as highly customized, integrated products. The companies also expect to enhance Altera's products through design and manufacturing improvements resulting from Intel's integrated device manufacturing model.

Coal India surges 4.7% on MS upgrade

Morgan Stanley has upgraded Coal India to overweight and has raised target to Rs. 449 per share from Rs. 369 per share. 

Coal India is trading on a gung-ho note on the Bombay Stock Exchange, on the back of positive news flow.

According to media reports, the leading investment firm Morgan Stanley (MS) has upgraded Coal India to overweight and has raised target to Rs. 449 per share from Rs. 369 per share.

So far, Coal India has surged to a high of Rs. 407, and is now up 4.4 percent to Rs. 405.

On the BSE 236,000 shares have changed hands at the counter, as against the two-week daily average volume of 259,000 shares.

Meanwhile, the BSE Sensex is down 63 points at 26,750

Lupin gains on USFDA nod

The stock has jumped 1.5 percent in the early morning deals on the BSE. 

Lupin started the day on positive note on the BSE, after the media reported that the firm received USFDA approval for generic Exforge HCT, which is a blood pressure medicine.

The stock is now up 1 percent at Rs. 1,764.  Around 0.15 shares are traded on the BSE, as against two-week daily average volume of 146,000 shares.

Meanwhile, the Sensex has declined 64 points at 26,785.

Rupee opens at 64.01/$

The local unit hit a low of 64.28 and a high of 64.19 against the US dollar.

The rupee today opened at 64.01 against the US dollar. The local unit hit a low of 64.28 and a high of 64.19 against the US dollar.

On Thursday, rupee ended at 64 against the US dollar.

Global cues are not helping the cause for now.  The Dow was down almost a percent while S&P 500 fell 0.86%. Nasdaq lost 0.8%. Asian markets are mostly lower with Nikkei and Hang Seng in the red but China’s Shanghai is trading over a percent higher.

With Chinese stocks running up over 140% in the last one year, compared to around 10% gains in the Nifty, reports indicate some investors could shift allocation to India given the valuation concerns in China.

Sun Pharma shareholders approves merger with Sun Pharma Global

Sun Pharmaceutical Industries Ltd has announced that Shareholders approve merger of Sun Pharma Global With Company.

Sun Pharmaceutical Industries Ltd has announced that Shareholders approve merger of Sun Pharma Global with the Company. 

Top corporate news of the day - June 5, 2015

Infosys said that it has completed the acquisition of Kallidus Inc., a San Francisco based digital as well as mobile commerce solutions provider which operates under the brand name, Skava. 

Infosys said that it has completed the acquisition of Kallidus Inc., a San Francisco based digital as well as mobile commerce solutions provider which operates under the brand name, Skava.

Aditya Birla Nuvo has informed exchanges that it has entered into definitive joint venture agreement with MMI Holdings, a leading South African Insurance based financial services group, to enter into the health insurance and wellness business in India.

Mahindra First Choice Services (MFCS) has projected total investment of almost Rs1.25bn in Uttar Pradesh over the next five years. 

Bharti Airtel said it has raised US$1bn through issuance of 10-year bonds to international investors. 

NMDC Limited, has rolled over the existing iron ore prices to June month in anticipation of demand growth even as the off-take from the domestic steel sector remained subdued in the past couple of months, according to the officials.

At a time when credit growth has been under pressure for most lenders, ICICI Bank is confident of growing its loan book 3-4% ahead of the system.

SKS Microfinance Limited announced a 1.55% reduction in the interest rate charged to borrowers to 22% from the 23.55% level with effect from next month.

ONGC Videsh is withdrawing from the Poco-Verde area in the Sergipe-Alagoas offshore basin where Brazil's state-run Petroleo Brasileiro SA recently discovered a new light oil deposit.

Fitch assigned a stable outlook to Power Finance Corporation and Rural Electrification Corporation. 

L&T Infrastructure Finance Company will raise Rs7.5bn on private placement basis via non convertible debentures. 

Suzlon said it has bagged a 90.30 MW turnkey project from ReNew Power. 

Nestle's woes are far from over as after Delhi, Gujarat  banned the instant noodle snack for one month. 

Top Economy news of the day- June 5, 2015

The 161-member WTO urged India to undertake greater reform in its taxation regime even as it highlighted the need to further liberalise the country's FDI policy. 

The 161-member World Trade Organization (WTO)urged India to undertake greater reform in its taxation regime even as it highlighted the need to further liberalise the country's foreign direct investment (FDI) policy.

Foreign direct investment (FDI) in India declined by 40 % year-on-year to US$2.11 bn in March 2015, the lowest in the last four months of 2014-15 fiscal.

Indices to open on a weak note

Investors will hope some bounce finally comes in as many counters seem to be at oversold levels on the charts. Global cues are not helping the cause for now.

On World Environment Day, the earth around us is receiving some drizzle even as concerns appear to slowly drown in the confidence being voiced by the government in handling the situation.

 Finance Minister Arun Jaitley has said that concerns over weak forecasts are misplaced, and any fears of food shortages were far-fetched. Meanwhile, bookies are reportedly backing Skymet’s forecast that monsoon will be normal this year and in the range of 92-95 per cent. 

The outlook is a weak start. Investors will hope some bounce finally comes in as many counters seem to be at oversold levels on the charts. Global cues are not helping the cause for now.  The Dow was down almost a percent while S&P 500 fell 0.86%. Nasdaq lost 0.8%. Asian markets are mostly lower with Nikkei and Hang Seng in the red but China’s Shanghai is trading over a percent higher.

With Chinese stocks running up over 140% in the last one year, compared to around 10% gains in the Nifty, reports indicate some investors could shift allocation to India given the valuation concerns in China. 

The International Monetary Fund has cut its growth forecast for the US economy and said the Fed should wait until next year before embarking on interest rate rises. In its annual assessment of the world’s largest economy, known as an Article IV report, the IMF downgrades its GDP growth forecast for 2015 from 3.1% to 2.5%, amid what it calls “significant uncertainties as to the future resilience of economic growth”. It also shaves its forecast for 2016, from 3.1% to 3%.

Except for a few like Britannia Industries and Emami, 2014-15 was a slow year for FMCG companies as high inflation eroded demand. But most preserved their margins as prices of raw material softened; besides, many pushed through higher prices in the early part of the year, says a report.

Employees may soon be allowed to exercise their stock options at their will. Securities and Exchange Board of India is reviewing rules on employee stock options (Esops) after the new insider trading rules effective May put strict restrictions on the timing of sales of such shares, a report stated.

Nestle has withdrawn its products off shelves stating that "Unfortunately, recent developments and unfounded concerns about the product have led to an environment of confusion for the consumer, to such an extent that we have decided to withdraw the product off the shelves, despite the product being safe."

The Agriculture Ministry is likely to announce the minimum support price (MSP) for key crops over the next two weeks, while it has sufficient stocks of pulses and willing to import more to quell prices that have risen nearly 64 per cent since last year.

Just Dial Ltd has announced that the Board of Directors of the Company at its meeting held on June 04, 2015, inter alia, has approved the proposal to buyback the fully paid-up equity shares of face value of Rs. 10 each of the Company (“Equity Shares”) from the shareholders of the Company on a proportionate basis through a tender offer (the “Buy-back”).

Coal Secretary reportedly Anil Swarup said that 10 Coal Mines to be put for Auction for the Unregulated Sector.Coal Secretary also stated that it Will Start auctioning Coal linkages from Unregulated Sector.The Total Extractable reserves from Coal blocks will be auctioned at 356 mt.

Reliance Defence Systems Pvt. Ltd., a subsidiary of Reliance Infrastructure Ltd., and part of Anil Ambani led Reliance Group, today announced the induction of Vice Admiral (Retd.) H.S. Malhi, AVSM VSM into its top leadership team for the defence sector.

Infosys completed the acquisition of Kallidus Inc. (d.b.a Skava) and its affiliate, a leading provider of digital experience solutions, including mobile commerce and in-store shopping experiences to large retail clients. The acquisition is in accordance with the terms set out in the agreement announced on April 24, 2015.

K V Kamath will take charge as first president of New Development Bank (NDB), promoted by BRICS nations, in the first week of the next month, according to reports.K V Kamath  will be visiting China next week and is likely to assume charge of President in early July," finance ministry reportedly said. 

Maruti Suzuki India Limited (MSIL) said it would continue its work on bringing down vehicle emissions as a means to promote clean air and delight customers.

Average rate of annual spending on packaged food has increased by 22.5% annually during the years 2010 to 2015 due to rise in income level, standard of living, greater confidence in packaged food, convenience and influence of western world and the growth is expected to touch around 32% by 2017, according to ASSOCHAM paper.

Eicher Motors cracked 5.8 percent to Rs. 17,160 after a huge block deal of over a million shares or 3.7 percent stake of the company was executed at the counter. According to media reports, AB Volvo was looking to sell its remaining 3.71 percent stake in Eicher Motors.

PTC India Financial Services (PFS) advanced 1.5 percent to Rs. 40.50 after the company said that it raised Rs. 213.5 crore through a private placement of non-convertible debentures, which are redeemable over a period of 10 years.

Mukand skyrocketed to a high of Rs. 41.50 on getting formal approval from the Corporate Debt Restructuring Empowered Group (CDR EG) for its exit under the CDR mechanism. The stock finally ended 1.3 percent higher at Rs. 37.75.

Unitech soared 7.5 percent to Rs. 9.35 after the company denied rumours of repayment default to lenders. 

Bank of India (BOI) plunged 4.3 percent to Rs. 182 on reports that Standard and Poor's (S&P) cut state-owned lender's standalone credit profile grade by one notch to BB+ from BBB-.

Bayer Cropscience jumped nearly 2 percent to Rs. 3,780 on the back of plans to buy back shares worth Rs. 506 crore for a consideration of Rs. 4,000 per share.

Suzlon Energy soared over 3 percent to Rs. 21.45 on winning order for 90.30 MW turnkey project from its existing customer, ReNew Power.