Not in talks with CSB Promoters: HDFC Bank

HDFC Bank continues its practise of fair and prompt disclosure of information in pursuance of the Listing Agreement with the Stock Exchanges 

HDFC Bank has clarified that it is not in talks with Catholic Syrian Bank for purchasing promoters' stake.

The Bombay Stock Exchange on Monday had sought clarification from HDFC Bank with respect to news appearing in The Economic Times on June 15, 2015 titled "CSB Promoters in Talks with Banks to Sell Stake."

The Bank hereby clarifies that it is not in talks with the entities mentioned in the said news item for purchasing promoters' stakes, HDFC Bank said in a filing to BSE.

The Bank continues its practise of fair and prompt disclosure of information in pursuance of the Listing Agreement with the Stock Exchanges, it added. 

Foreign investment limit: Insurers seek clarity

The insurance units of ICICI Bank and HDFC would remain devoid of any benefits from raised foreign investment limit since the original groups are owned by foreign investors, the report said.

The Insurance Regulatory and Development Authority along with some private life insurers, have sought further information on the increased foreign investment limit from 26% to 49% as decided by the government.

As per the new regulations, “Foreign equity investment cap of 49% is applicable to all Indian insurance companies and they shall not allow the aggregate holdings by way of total foreign investment in their equity shares by foreign investors, including portfolio investors, to exceed forty-nine per cent of their paid-up equity capital and also shall ensure that ownership and control shall remain at all times in the hands of resident Indian entities as referred to in these rules”.

This has spelled confusion and a clear understanding of FDI norms is becoming hard to achieve, a report in ET stated.

The insurance units of ICICI Bank Ltd and Housing Development Finance Corp. Ltd(HDFC) would remain devoid of any benefits from raised foreign investment limit since the original groups are owned by foreign investors, the report said.

The ambiguity on this matter would also extend towards Indian firms having majority foreign ownership and insurance joint ventures, the report add.

Rupee upbeat on Tuesday! Snaps three consecutive sessions’ depreciating streak

The rupee is currently trading at 64.09, stronger by 7 paise from its previous close of 64.16 on Monday. 

Indian rupee, snapping three consecutive sessions’ depreciating streak was trading strong against dollar on Tuesday on account of dollar sales by banks and exporters in view of weakness of dollar index against basket of other major currencies. However, weakness of local equities ahead of the release of 2-day US Federal Open Market Committee (FOMC) meet, kept the gains in check. On the global front, dollar was steady in early Asian trade on Tuesday, with traders adopting a cautious stance as they wait for the outcome of the U.S. Federal Reserve's two-day policy meeting ​which begins today amid the backdrop of a looming crisis in Greece.

The rupee is currently trading at 64.09, stronger by 7 paise from its previous close of 64.16 on Monday. The currency touched a high and low of 64.11 and 64.06 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 64.08 and for Euro stood at 71.84 on June 15, 2015. While, the RBI’s reference rate for the Yen stood at 51.93, the reference rate for the Great Britain Pound (GBP) stood at 99.5717.

Reliance Communications jumps on merger buzz

RCom is in talks with the Indian telecom arm of Sistema Shyam TeleServices for a possible merger through a stock swap. 

Reliance Communications (RCom) has rallied 3 percent to touch a high of Rs. 60.60 on merger buzz with Sistema's Indian arm.

According to media reports, RCom is in talks with the Indian telecom arm of Sistema Shyam TeleServices for a possible merger through a stock swap.

The stock has pared some gains and is now up 1.3 percent at Rs. 59.60. The counter has seen trades of around 453,000 shares as against the two-week daily average volume of around 1.55 million shares on the BSE.

Meanwhile, the Sensex has plunged 93 points to 26,493.

Has the Greece event been factored in?

Morgan Stanley says Indian market will follow the global trend while BNP Paribas is of the opinion that market may not react to the Greek crisis

The ability of the Indian market to move against all odds and close higher on Monday has brought up the question on whether India can remain isolated from worries of a Greek default.

According to a report in ET, Morgan Stanley says Indian market will follow the global trend while BNP Paribas is of the opinion that market may not react to the Greek crisis. Reliance MF feels the event is already factored in, the reported quoted Sunil Singhania, CIO, Reliance MF as saying. 

Top economy news of the day - June 16, 2015

The wholesale price index-based deflation continued for the seventh month in a row, at 2.36% in May, though the rate of decline in prices moderated from 2.65% in April, according to official data. 

The Oil Marketing Companies (OMCs) announced Rs0.64 per litre hike in petrol prices and a Rs1.35 per litre cut in diesel rates in order to align the domestic rates with global price benchmarks.
 
The wholesale price index-based deflation continued for the seventh month in a row, at 2.36% in May, though the rate of decline in prices moderated from 2.65% in April, according to official data. 
 
The Department of Telecom (DoT) has issued the Letter of Intent (LoI) to all the telecom players that participated in the March auction and is speeding up spectrum allocation to them. 
 
Services exports fell by 4.5% to USD13bn in April 2015 as compared to the same month last year.
 
In the backdrop of Uttar Pradesh government promising to provide 22-24 hr power supply before 2017, UP has registered maximum power shortage amongst the 12 major Indian states. 

Top corporate news of the day-June 16, 2015

India's largest telecom service provider Bharti Airtel will start trials of its 4G services in Delhi from June 18. 

Life Insurance Corporation (LIC), which is a minority shareholder in Cairn India with 9.06% stake, has sought higher dividend on the redeemable preference shares that the oil producer plans to offer as a part of its merger plan with parent Vedanta Ltd. 
 
Private sector lender IndusInd Bank has now decided to focus on the real estate business, after a gap of almost six years. The lender has decided to focus on financing construction of projects and the Loan Against Property (LAP) business. 
 
Nestle India is in the process of destroying Maggi instant noodles worth Rs3.2bn after it was banned by central food safety regulator FSSAI due to presence of lead and taste enhancer monosodium glutamate (MSG) beyond permissible limits. 
 
India's largest telecom service provider Bharti Airtel will start trials of its 4G services in Delhi from June 18. 
 
Adani Group has decided to invest Rs50bn in Tamil Nadu to set up a 700 mega watt (MW) power generation capacity based on solar. This is part of Adani Group's plan to set 10,000 mega watt (MW) of solar power by 2022 across the country. 
 
The Ruias of the Essar group are set to sell 49% stake in Essar Oil to Russian oil and gas giant Rosneft for close to Rs105bn. 
 
Aurobindo Pharma has received the final approval from the US Food & Drug Administration (US FDA) to manufacture and market extended Phenytoin Sodium Capsules, an anti-epileptic drug for controlling seizures. 
 
Reliance Communications (RCOM) and AFK Sistema have entered into exclusive discussions on a potential merger between the Indian telecom business of Sistema Shyam TeleServices and Reliance Communications through a stock swap. 
 
A detailed project report (DPR) on the proposed Rs50bn steel plant to be set up under a joint Venture (JV) between ArcelorMittal and state-run SAIL will be completed by August. 
 
Glenmark Pharmaceuticals has received final nod from the US health regulator for generic oral contraceptive Levonorgestrel/Ethinyl Estradiol tablets and plans to commence shipping of the product immediately. 
 
State-owned BHEL said it has commissioned NTPC's 800-MW Koldam hydro power project in Mandi district of Himachal Pradesh.
 
The Street may be cautious about Reliance Industries’ (RIL) telecom and retail businesses, but the Mukesh Ambani-controlle    d firm says Jio and retail will place Reliance in a select group of most valuable companies in the world. 
 
An inter-ministerial panel deferred decision for the second time on Kotak Mahindra Bank's proposal for raising foreign investment limit in the bank to 55%.