NIFTY based new ETF launched at NSE to facilitate EPFO investment

Chitra Ramkrishna, MD & CEO, NSE said that EPFO’s entry will unlock savings into nation building. Going forward, - with multiple investment options available at NSE – other entities may consider similar initiatives. All these will certainly deepen the financial market in India.”

India’s leading bourse National Stock Exchange of India (NSE) has taken steps for successful execution of Employee Provident Fund Organization’s (EPFO) historic steps to invest in capital market in India. As a precursor to the forthcoming investment, the exchange has successfully listed a new Exchange Traded Fund (ETF) by SBI Mutual Fund. The ETF is based on the benchmark index of the nation: NIFTY. The index is available for trading on NSE’s platform. The product is available as SETFNIFTY on the exchange platform. 

While congratulating the government of India on this momentous occasion, Chitra Ramkrishna, MD & CEO, NSE said that EPFO’s entry will unlock savings into nation building. Going forward, - with multiple investment options available at NSE – other entities may consider similar initiatives. All these will certainly deepen the financial market in India.” 

As you know, NIFTY ETFs is one of the oldest and the most popular ETF in India. There are 10 Equity ETFs with Nifty Index as the underlying, which is highest for any Index in India. Besides, ETFs on NIFTY (as underlying) are listed abroad.  NIFTY Index has given an annualised return of 17.8% in last 3 years. Close to one lakh people have traded during the period in NIFTY ETF.

Motherson Sumi stock extends losses post results

The stock has tanked over 5 percent in trades so far even as the company's Q1 net soared over 62 percent on a y-o-y basis.

Motherson Sumi has extended losses and now trading with a loss of over 5 percent at Rs. 368 despite reporting strong Q1 results.

Earlier in the day, the stock had touched a high of Rs. 396 in opening trades, and then tanked to a low of Rs. 370 after the company announced its results.

The company today reported 62.3 percent growth in Q1FY16 consolidated net at Rs. 265.76 crore when compared with Rs. 163.73 crore in Q1FY15. Total income too increased by 12 percent to Rs. 9,409.51 crore from Rs. 8,396.45 crore.

The counter has seen heavy volume of around 603,000 shares as against the two-week daily average volume of around 354,000 shares on the BSE.

Meanwhile, the Sensex is up 103 points at 28,326.

Tata Global Beverages Q1 net profit at Rs. 82.3 crore

Total Income has increased from Rs. 1928.7 crore for the quarter ended June 30, 2014 to Rs. 2040.6 crore for the quarter ended June 30, 2015.

Tata Global Beverages Ltd has announced the following results for the quarter ended June 30, 2015:

The Group has posted a net profit of Rs. 82.3 crore for the quarter ended June 30, 2015 as compared to Rs. 97.2 crore for the quarter ended June 30, 2014. Total Income has increased from Rs. 1928.7 crore for the quarter ended June 30, 2014 to Rs. 2040.6 crore for the quarter ended June 30, 2015.

Dr Reddy's anounces collaboration with Amgen

The collaboration leverages the capabilities of both companies, combining three of Amgen's innovative therapies with Dr. Reddy's deep understanding of patient and physician needs in India.

Dr. Reddy's Laboratories announced that it has entered into a strategic collaboration with Amgen - one of the world's leading independent biotechnology companies - to market and distribute three Amgen medicines in India in the areas of oncology and cardiology. Under the terms of the collaboration, Dr. Reddy's shall perform a full range of regulatory and commercial services to seek approval and launch Kyprolis (carfilzomib), BLINCYTO (blinatumomab) and Repatha (evolocumab) in India. The collaboration leverages the capabilities of both companies, combining three of Amgen's innovative therapies with Dr. Reddy's deep understanding of patient and physician needs in India.

Dr. Reddy's Executive Vice President and Head of lndfa Business & Global Business Development Alok Sonig stated, "We are excited about our strategic collaboration with an innovation powerhouse like Amgen and look forward to making their innovative medicines accessible to Indian patients. Addressing significant unmet needs of patients in oncology and cardiovascular are key areas in India and, therefore, a priority for us at Dr. Reddy's. We believe that good health can't wait and that this is an important milestone for us in our journey as we improve patient  care."

"We are pleased to be joining forces with Dr. Reddy's Laboratories  in order to make Amgen's innovative medicines available to patients in India," said Penny Wan, Amgen vice president and general manager, Japan Asia Pacific  Region. "Dr. Reddy's has significant experience serving oncology and cardiovascular patients in India and shares Amgen's interest in delivering  new treatment  options to seriously ill patients."

PTC India Q1 net profit up 10%

Total income from operations up by 5% to Rs. 71.77 crore as against Rs. 68.11 crore in Q1FY15

PTC India Limited, the leading provider of power trading solutions in India, today announced its financial results for the quarter ended 30thJune, 2015.

Financial performance

Q1 FY 16 vs.Q1 FY15 (STANDALONE)

Total income from operations up by 5% to Rs. 71.77 crore as against Rs. 68.11 crore in Q1FY15

PBT up by 7% for the period stands at Rs. 70.18 crore as compared to Rs. 65.81crores in Q1FY15.

PAT up by 10%for the quarter ended 30th June, 2015, stands at Rs. 47.93 crore, as compared to Rs. 43.74 crore in Q1FY15

The operating margin was up by 4% to Rs. 58.78 crore as against Rs. 56.54Crore in Q1FY15

 The traded volume was 10,265 MU in Q1FY16,marginally lower than 10,309 MUs in Q1FY15

The average margin (net of rebate, surcharge and tolling converted PPAs ) realized was 0.049 Paisa / unit  compared to 0.042 paisa / unit in Q1FY15; an increase of 15%.

MANAGEMENT QUOTE

Commenting on the results, Mr. Deepak Amitabh, Chairman & Managing Director, PTC India Ltd said

“The company reported flat volumes in the Quarter, which were primarily a result of suppressed demand from the Discoms. The company however, continued to consolidate its long term business with 3,838 MUs being traded under in the Long term trading business segment during the quarter, registering a growth of 12% over the corresponding quarter of the previous year, and thereby improving the net margin realizations.

The present set of constraints in the market for short-term trades in electricity has led to subdued growth. We believe that, going forward, increasingly stakeholders will look out for solutions from the medium term market to contain the uncertainty in tie-ups of volume and price discovery in the market for short term trades in power.”

Operational developments

The company increased its presence in the portfolio management business for the Utilities segment, as it executed an agreement with Jharkhand Bijli Vitran Nigam Limited for managing its power portfolio. The agreement mandates PTC for sale / purchase of power for the Jharkhand based utility under bilateral, power exchanges and banking arrangements.

Further, Rajasthan Electricity Regulatory Commission (RERC) has passed order approving the procurement of 500 MW power by Rajasthan Discoms through PTC, sourced from two coal-based thermal power projects on long-term basis. The power flows under the said agreements are expected to start in FY17.

The company has been granted funds from The Prosperity Fund by the British High Commission on behalf of Government of United Kingdom for preparing the Indian power market for carriage and content separation through collaboration with the UK. PTC will be working in close association with key stakeholders in implementing business of supply licensee (introduced in draft Amendment to Electricity Act 2003) in India. Regulatory provisions envisaged for increasing competition in power supply business are expected to open more avenues for the business of electricity traders like PTC.

The company will remain focused on increasing its presence in multiple business segments like long term, medium term and short term sales to utilities as well as to the non-utility (Retail) segment.

The company has already tied-up more than 11,000 MW generation capacity on long term basis, and is actively converting this into power-sale agreements for medium and long-term. The company has already executed Long Term Power Sale Agreement of more than 7500 MW (including for Cross Border sales)

Stocks in news: OIL, Rel Infra, Cairn, Sonata, Brigade, PTC

Here are stocks that are in news today:


Results Today: Motherson Sumi , Arvind , Bombay Dyeing , Bajaj Electricals , Cummins India , Jaiprakash Power Ventures, Jaypee Infratech, Polaris, Talwalkars Better Value, Tata Global Beverages, Aarti Industries, Banco Products, CEMMCO, Esab India, Hawkin Cookers, JMC Projects, Linde India, Minda Corp, Nelcast, Next Mediaworks, Orient Abrasives, Rupa & Company, Summit Securities, Sundaram Brake, TD Power Systems, TIMEX, Trent, TVERSUS Electronics

Prism Cement Q1
-Net loss at Rs 8 crore versus profit of Rs 13 crore (YoY)
-Total income down 1.4 percent at Rs 1,368.8 crore versus Rs 1,388.5 crore (YoY)

Cognizant Q2
-Net income at USD 420.1 million versus USD 382.9 million (QoQ)
-Revenue at USD 3.09 billion versus USD 2.91 billion (QoQ)
-Non-GAAP operating margin at 20.2 percent

Cognizant raises full year revenue & EPS guidance
Cognizant says
-See CY15 revenue up at least 20.1 percent, to be at least USD 12.33 billion
-See Q3 revenue to be at least USD 3.14 billion
-Q3 non-GAAP diluted EPS expected to be at least USD 0.75

Cognizant (in press conference) says
-Winning larger deals in digital
-Executing digital transformations & innovation-at-scale
-Strategic investments in company are paying off
-Key areas of investment include excellence in core operating business
-Consulting practice outperformed winning large deal in change management
-Excelled in platform-based solutions & industry utilities
-Overall pricing was stable during Q2
-Cash & short-term investments for Q2 at USD 3.57 billion
-Utilisation increased by 300 bps to 73 percent in Q2
-Q2 offshore utilisation at 78 percent, onsite utilisation 93 percent

Cognizant CEO Francisco Dsouza on
-Deal pipeline is strong on the back of digital technology
-Company is winning in digital, clients want digital transformation
-Company is looking at investing in 4 key areas
-Working at enhancing company’s digital & consulting capabilities
-Looking to invest in automation tech & platform-based solutions
-1st scale of investments in increasing capacity in digital in Asia, Europe
-See CY15 revenue up at least 20.1 percent, to be at least USD 12.33 billion
-Have been cautious in giving the guidance for CY15
-May upgrade company’s guidance as we go forward
-Healthcare industry in US is going through some consolidation
-Demand environment is strong
-Expect margins to remain in 19-20 percent range for rest of the year
-Will reinvest excess from margins back into biz if margins croreoss 20 percent
-Built a little bit of conservatism in CY15 guidance due to US healthcare
-Seeing more tailwinds in the deal pipeline than headwinds
-Financial services recovered well & investing in digital
-Europe grew 8 percent sequentially & will continue to grow well
-Broad strategy remains unchanged
-Looking at digital acquisitions in Europe, Asia & potentially Latin Amercia
-Will look at acquiring in core businesses like healthcare & financial services
-Continue to evaluate opportunities for acquisition

Canara Bank says
-Q1 fresh slippages at Rs 2,519 crore versus Rs 2,595 crore (YoY)
-Q1 fresh restructuring stood at Rs 719 crore
-Q1 cash recoveries at Rs 1,056 crore
-Cost of funds at 6.14 percent in June quarter
-Loan book stands at Rs 1.25 lakh crore
-Refinanced one account under 5/25 scheme amounting to Rs 400 crore
-Did not sell any assets to asset reconstruction companies (ARC) in Q3
-No growth on corporate loan book on YoY basis
-Expect corporate loan book to grow 3.5-5 percent this year
-May participate in certain consortiums & corrective action plans for some accounts

Anjani Portland Q1
-Net profit Rs 6.7 crore versus loss of Rs 9.6 crore (YoY)
-Total income up 75.9 percent at Rs 87.7 crore versus Rs 49.9 crore (YoY)

Snowman Logistics Q1
-Net profit down 61.3 percent at Rs 5.5 crore versus Rs 14.2 crore (QoQ)
-Total income up 10 percent at Rs 59.2 crore versus Rs 53.8 crore (QoQ)

Siemens India Q3
-Net profit at Rs 168.2 crore versus Rs 13 crore (YoY)
-Total income at Rs 2,376 crore versus Rs 2,374.4 crore (YoY)
-EBITDA at Rs 253 crore versus Rs 53 crore (YoY)
-EBITDA margin 10.8 percent versus 2.2 percent (YoY)
-Other income at Rs 55.5 crore versus Rs 26.2 crore (YoY)
-Siemens India says registered new orders of Rs 2,234 crore in Q3 versus Rs 2,732 crore (YoY)
-Siemens India MD & CEO Sunil Mathur says order inflows in energy business have not yet picked up

Sharda Cropchem Q1
-Consolidated net profit down 16.5 percent at Rs 36 crore versus Rs 43.1 crore (YoY)
-Consolidated total income up 3.1 percent at Rs 279.4 crore versus rs 271 crore (YoY)

Ramco Cements Q1
-Consolidated net profit at Rs 94.7 crore versus Rs 35.5 crore (YoY)
-Consolidated total income down 0.9 percent at Rs 952.8 crore versus Rs 961.7 crore (YoY)

Vardhman Textiles Q1
-Net profit up 39.2 percent at Rs 148 crore versus R s106.3 crore (YoY)
-Total income down 3.5 percent at Rs 1,395 crore versus Rs 1,445 crore (YoY)

Vardhman Textiles
-Not expecting sales to go higher next quarter
-Margin to remain at current levels of 18-23 percent range

JB Chemicals Q1
-Net profit up 7.9 percent at Rs 34.3 crore versus Rs 31.8 crore (YoY)
-Total income up 8.2 percent at Rs 284.2 crore versus Rs 262.6 crore (YoY)

Ramco Industries Q1
-Consolidated net profit up 95 percent at Rs 31 crore versus Rs 15.9 crore (YoY)
-Consolidated total income up 1.2 percent at Rs 277.7 crore versus Rs 274.5 crore (YoY)

Pricol Q1
-Net profit down 73.8 percent at Rs 1.6 crore versus Rs 6.1 crore (YoY)
-Total income down 0.5 percent at Rs 230.1 crore versus Rs 231.2 crore (YoY)

Brigade Enterprises Q1
-Consolidated net profit at Rs 24.3 crore versus Rs 6.6 crore (YoY)
-Consolidated total income up 85.7 percent at Rs 353.4 crore versus Rs 190.3 crore (YoY)

NDTV Q1
-Consolidated net loss at Rs 24.3 crore versus loss of Rs 1.5 crore (YoY)
-Consolidated total income down 18.6 percent at Rs 120 crore versus Rs 147.4 crore (YoY)

Mercator Q1
-Consolidated net loss at Rs 35.4 crore versus loss of Rs 12.3 crore (YoY)
-Consolidated total income down 4.9 percent at Rs 718.4 crore versus Rs 755.8 crore (YoY)

Bata India Q1
-Net profit up 55.2 percent at Rs 92.2 crore versus Rs 59.4 crore (YoY)
-Total income up 9.4 percent at Rs 680.5 crore versus Rs 622 crore (YoY)
-EBITDA down 11.3 percent at Rs 86 crore versus Rs 97 crore (YoY)
-EBITDA margin at 12.7 percent versus 15.6 percent (YoY)

Parsvnath Developers Q1
-Consolidated net loss at Rs 8 crore versus profit of Rs 6.1 crore (YoY)
-Consolidated total income up 66.1 percent at Rs 160 crore versus Rs 96.3 crore (YoY)
-Consolidated other income down 36.6 percent at Rs 32.6 crore versus Rs 51.4 crore (YoY)

GSK Consumer Q1
-Net profit up 19.2 percent at Rs 155 crore versus Rs 130 crore (YoY)
-Total income up 8.2 percent at Rs 1,045 crore versus Rs 966 crore (YoY)

Insecticides (India) Q1
-Net profit up 13.8 percent at Rs 19.8 crore versus Rs 17.4 crore (YoY)
-Total income up 13.1 percent at Rs 285.4 crore versus Rs 252.4 crore (YoY)

PTC India Q1
-Net profit up 9.6 percent at Rs 47.9 crore versus Rs 43.7 crore (YoY)
-Total income down 10.7 percent at Rs 3,296.2 crore versus Rs 3,689.5 crore (YoY)
-EBITDA up 3.4 percent at Rs 60 crore versus Rs 58 crore (YoY)
-EBITDA margin at 1.8 percent versus 1.6 percent (YoY)

Accelya Kale Q4
-Consolidated net profit down 24.3 percent at Rs 14 crore versus Rs 18.5 crore (YoY)
-Consolidated total income up 3.2 percent at Rs 75.3 crore versus Rs 73 crore (YoY)

Sonata Software
-Acquires California-based company Halosys
Alert: Halosys provides enterprise mobility enablement technology
-Halosys acquisition done for upfront payment of USD 2 million
-Earn out of USD 3 million payable over next 3 years for Halosys acquisition

Tech Mahindra says
-Vineet Nayyar to become non-executive director
-Vineet Nayyar designated as vice-chairman w.e.f August 10

Dr Reddy’s Labs , Satish Reddy,
-Brand change is not a dramatic shift, its evolution
-Wanted to bring all elements of business under one umbrella
-Earlier target of USD 3 billion by 2012 was set with certain goals
-Have target dates for US FDA approvals
-Will look at first launch in 12-18 months
-Expect one proprietary product launch every year post 2017
-Proprietary product business focussed on dermatology & neurology
-Will also expand our specialty products business in emerging markets
-Expect proprietary products biz to be multi-million USD opportunity in 5-7 years
-Increased scrutiny posed challenges in US apart from consolidation
-M&A part of growth strategy but not dependent on only adding revenue
-Open to M&A in US as part of strategy but should add to capabilities
-Keen to assess allergan’s generic portfolio when it comes up on block
-Already in touch with bankers to start assessment
-US FDA approval timelines improving
-Invested heavily in upgrading quality management systems & new metrics
-Will take 1-2 years for changes to entrench in company
-Don't have an update on Srikakulam US FDA resolution
-Significantly impacted because of delayed approval on Srikakulam
-Nexium & other key drug approvals have not yet come, impacting business
-Remain committed on Russia market despite continued currency volatility
-Russia volumes have come down in last 1-2 years but company has still grown
-No strategic shift, some changes in pricing & pushing institutional business
-M&A will not be key driver in Russia market, other opportunities available
-Not very happy with company’s rankings in India market
-Open to inorganic options for growth in India
-Sun-Ranbaxy is a unique combination, not assessing acquisitions of that scale
-Progressing on Merck Serono biosimilar tie-up, looking at first launch by 2019
-Have called off the relationship with GSK on generics
-R&D investments will largely remain in the current range of 10-11 percent
-Investing adequately in complex generics
-Looking at acquisitions on proprietary products in US as well

Fund firm Aviva adds to the list to oppose Vedanta ’s bid for Cairn
-Aviva holds 4.3 percent equity in Cairn Energy

Food Safety and Standards Authority of India says
-Have not given any clean chit regarding safety of Maggi noodles
-Requested Nestle India to share details test reports of UK & Singapore
-Test results of Goa samples had no bearing on the order dated June 5
-Goa FDA had sent 5 samples of noodles for testing post FSSAI direction
-Results from Central Food Technological Research Institute (CFTRI) show that samples not tested for MSG

Cabinet clears hiving off BSNL towers to a new company
-Cabinet approves financial assistance to BSNL, MTNL for surrendering 800 MHz spectrum
-Cabinet clears direct benefit transfer for NREGA wages

Government says
-In principle nod to hive off mobile tower assets of BSNL
-Department of Telecommunications (DoT) to authorise inter ministerial group (IMG) for working out capital structure of new company
-IMG to evaluate market valuation of tower assets, capital structure
-BSNL yet to realise full potential of its market share in tower business
-BSNL has 64,000 towers, 50000 BSNL towers have OFC connectivity
-BSNL & MTNL to get Rs 627 crore for surrendering 800 Mhz CDMA spectrum
-BSNL gets Rs 169 crore & MTNL to get Rs 458 crore

Himachal Pradesh government allots 960 MW Jhangi-Thopan-Powari hydro project to
Reliance Infrastructure
Alert: Jhangi-Thopan-Powari project was earlier awarded to Brakel Corp Of Netherlands
Alert: HP HC cancelled allotment to Brakel in 2009 due to misinterpretation of facts

Balaji Telefilms bulk deal on MSEI
-Radhakishan Damani acquires 5.3 percent via investment arm derive investments
-Ekta & Shobha Kapoor acquire 4.36 percent stake
-Balaji Tele Group CEO Sameer Nair acquires 0.64 percent stake
-Multiplier Share & Stock Advisors acquire 3.15 percent
-Other investors include Risi Finstock with 1.3 percent, Aadi Financials Advisors with 4.6 percent
Alert: Star Middle East sold 26 percent stake in Balaji Tele via bulk deal on MSEI

Tata Steel Europe says
-Discontinued talks with Klesch Group for sale of long products business
-Demerged long products business as separate unit
-Will continue to look for buyers for long products business
Alert: Tata Steel signed agreement to sell long products biz earlier this year to Klesch
Klesch Group to
-Have pulled out of buying Tata Steel’s long products business
-Pulled out of buying long products business due to regulatory uncertainty
-EU & India need to address Chinese steel dumping

Tata Steel : Sources
-Company to continue eyeing prospective buyers for long products business
-Likely to begin informal bidding process soon to sell long products business
-Sale of long products business key to Europe deleveraging plans
-Sale of long products business crucial in larger plans to consolidate Europe asset
Alert: Klesch had signed MoU to buy long products business in October 2014
Alert: Tata Steel’s long product business has capacity at 5.5 million tonnes

Other stocks and sectors that are in news today:
- ICICI Bank raises Rs 3200 crore through offshore bond issue
- PFC to buy back infra bonds to cut interest costs:
-Bennett Coleman & Co ties up with Shoppers Stop to push Femina in consolidatedumer products space
-SEBI asks companies to make more disclosures about pledged shares: PTI
-Government shortlists SBICAP, ICICI Securities, YES Bank for divestment of Oil India , CONCOR , NMDC , MMTC & ITDC

With Crude at $50, Oil Firms Fear Deeper Crisis Than in 1980s

After slashing spending by $180 billion to deal with one of the worst industry downturns in decades, oil companies are still bleeding cash and slipping further into debt to maintain dividends to shareholders.

Depressed crude prices - at below $50 a barrel Brent crude is half of what it was a year ago - mean even more cuts are needed at new projects and existing operations. Companies trying to dispose of oilfields to raise cash could be forced to sell quickly and for less than they hoped.

There is little sign that the oil price will come to the rescue as the Organization of the Petroleum Exporting Countries (OPEC) continues to pump hard into an oversupplied crude market in response to explosive growth in US shale oil.

Brent is expected to average $60.60 in 2015 and $69 in 2017, according to a Reuters poll of analysts. The International Energy Agency said in February it saw it recovering to $73 in 2020 as the supply glut slowly eases.

Analysts at investment bank Jefferies say international oil companies lowered their break-even points by $10 a barrel after the latest round of spending cuts, but will still need a price of $82 a barrel in 2016 to cover spending and dividends, which have been the main investment attraction for the sector for decades.

"In order to cover the shortfall, the sector will increase its borrowing. While leverage remains manageable within the sector, this is not a practice that can continue in perpetuity," Jefferies said in a note on Wednesday.

Oil majors such as Royal Dutch Shell, Chevron and Total are helped by profitable refining operations. Most are increasing oil and gas output, squeezing as much revenue as they can from past investments but exacerbating the oversupply.

Spending next year is expected to decline by a further 5 to 15 per cent depending on the oil price, according to Oslo-based consultancy Rystad Energy. The world's top oil companies used second-quarter results to show they were ready for deeper, more painful measures.

"The tone has changed. Maybe we didn't quite create the right impression of urgency back in January," Shell chief executive Ben van Beurden said.

BP chief executive Bob Dudley said "oil prices will be lower for longer".

Part of the problem for the oil majors is that large national oil companies and shale producers have increased their share of global production gradually for years, leaving the majors victims of forces largely beyond their control.

Their heavy investment cuts are expected to lower global production capacity by 2 million barrels per day by 2020, according to Rystad Energy. But OPEC producers will only move in to make up the shortfall.

"This has been really a tough time for the industry from Aberdeen to Angola to Houston... It does feel like 1986," BP CEO Mr Dudley said last week after a near two-thirds drop in quarterly profit.

In late 1985, oil prices slumped to $10 from around $30 over eight months as OPEC raised output to regain market share following an increase in non-OPEC production. The industry responded by cutting spending by nearly a quarter and slashing its workforce by a third, according to Morgan Stanley. Prices gradually recovered over the next decade as global demand rose.

But today's supply overhang could last much longer. "If oil prices follow the path suggested by the forward curve... this downturn would be more severe than that in 1986," Morgan Stanley said in a note.

The $180 billion of cuts this year represent roughly a 20 per cent drop from 2014, according to Rystad. Oil companies have deferred up to $200 billion worth of projects including complex, expensive ventures that hold huge resources, such as Canadian oil sands and deep water projects in Africa, Southeast Asia and the Arctic.

Production lags investments by a minimum of six months for onshore drilling, but up to ten years for complex deep water fields, liquefied natural gas projects or Canadian oil sands mega projects.

Some observers say the industry needed an efficiency drive with or without the oil price slump, after operating costs tripled over the past five years.

BP found it easier to adapt to the halving of oil prices because it had already sold $45 billion of assets and lowered costs to cover the huge clean-up and fines from the 2010 Gulf of Mexico spill.

"BP is probably the most advanced among these companies in actually achieving the cost savings," said Jefferies analyst Jason Gammel, who holds a "buy" rating on BP and Chevron.

For now, the oil majors can cover the shortfall by higher borrowing, which currently averages around 15 per cent of their market value - still relatively low compared with other industries.

Smaller exploration and production companies that lack big refining operations such as Premier Oil and Tullow Oil have been forced to abandon dividends this year.

Tullow executives said the company had "reset the business" to be competitive at an oil price around $50. Like its peers, the Africa-focused company has slashed spending on new projects and shifted away from complex wells to focus on onshore and simpler offshore plays.

Tullow arranged financing before the oil price drop and that means it can weather the downturn for now, say analysts at Morningstar. But they said Tullow's cash flow burn means it must eventually sell assets which, with oil where it is today, would probably fetch a depressed price.

Global Shares, Dollar Firm; US Data Points to September Rate Hike

Tokyo: Asian shares mostly rose while the dollar held firm on Thursday after strong service-sector data and comments from a Fed policymaker boosted optimism about the United State economy and fanned expectations of a U.S. rate hike in September.

Japan's Nikkei rose 0.9 per cent while South Korea's Kospi gained 0.3 per cent.

Dollar-denominated MSCI's broadest index of Asia-Pacific shares outside Japan was off 0.1 per cent due to the dollar's strength and falls in Australian shares.

Overnight, Wall Street shares mostly edged higher, helped by data showing the July pace of growth in the U.S. service sector surged to a decade high and by solid corporate results in Europe.

The U.S. Institute for Supply Management's services sector index rose to 60.3, its highest level since August 2005, far beyond expectations for a 56.2 reading.

The data backed views the Federal Reserve will raise rates in September, more than offsetting weaker-than-expected U.S. private hiring figures for July also released on Wednesday.

Atlanta Fed chief Dennis Lockhart, a voting member at the U.S. central bank's policy meeting this year, also said it would take "significant deterioration" in the U.S. economy for him to not support a rate hike in September.

"Lockhart is not a policy hawk. He is always right at the middle of the road in the policy board," said Tomoaki Shishido, fixed income analyst at Nomura Securities. "As far as I remember, his cue on the Fed's policy in the past has proved almost always right."

In light of Lockhart's comments, U.S. employment data due on Friday may do little to change the perception unless it misses market expectations by a huge margin.

The dollar's three-month overnight indexed swap rate <USD3MOIS=> hit its highest level since 2010 on Wednesday.

The spectre of higher U.S. interest rates benefitted the dollar against other currencies, lifting the dollar's index against a basket of six major currencies hit 3 1/2-month high of 98.218. The index last stood at 97.880.

Against the yen, the U.S. currency cleared a strong resistance around 124.50 to hit a two-month peak of 125.015 on Wednesday. It last stood at 124.80.

The euro also slipped to two-week low of $1.0847 on Wednesday before bouncing back a tad to $1.0902.

"Markets started to price in the chance of a rate hike in September," said Minori Uchida, chief currency strategist at the Bank of Mitsubishi-Tokyo UFJ.

"The focus for now would be how risk assets such as emerging currencies and stocks will cope with the prospects of a U.S. rate hike," he added.

Investors are worried that weaning off decade-long zero interest rates on the dollar could prove tough for some emerging economies and companies that have taken cheap dollar funding for granted.

The Brazilian real hit a 12-year low and the South African rand hit a 14-year low on Wednesday. In Asia, the Indonesian rupiah and the Malaysian ringgit flirted with the lowest levels since the Asian economic crisis in the late 1990s.

On the other hand, few investors seemed worried about U.S. share moves.

U.S. shares' volatility index, seen as investors' fear gauge, briefly fell below 11 per cent, its lowest level in more than a year.

Elsewhere, oil prices dropped to fresh low in recent months after a surge in gasoline stockpiles in the United States

Brent futures, the global oil benchmark, hit a six-month bottom of $49.02 per barrel, its lowest since late January

Sensex, Nifty Likely to Open in Red

9:10 a.m.: The Sensex was up 69 points at 28,292 and the Nifty advanced 18 points to 8,585 in the pre-market session.

9:05 a.m.: If Nifty corrects to 8,450 then one should buy out of the money call options, says Gaurav Bissa derivatives analyst with LKP Securities.

9:00 a.m.: Rupee opens lower at 63.77 per dollar against Wednesday's close of 63.74.

8:40 a.m.: Below are the stocks which will be in focus today:

Tata Power: Tata Power in its annual reports said that it is looking at buying stressed assets. The company sees opportunity in power, renewable & distribution business. Tata Power would raise generation capacity to 18,000 megawatts (MW) by 2022 from the current 8,750MW.

Tata Motors: Tata Motors plans to launch new JLR product. Jaguar land rover will introduce all-new XF sedan in autumn 2015. JLR will also introduce world's first convertible SUV in 2016.

Tata Steel: Tata Steel's captive coal mining leases in Odisha have been extended till 2030.

ICICI Bank: ICICI Bank has raised $500 million in dollar bonds. The issue opened early on Wednesday and closed during European late evening hours. The bank has issued 5 year fixed rate notes.

Dr Reddy's Labs: Reports suggest that Dr Reddy's Labs aims to grow Europe business and is looking for acquisitions. Currently, Europe contributes only 4% of the revenue.

Nestle: FSSAI has clarified that clean chit has not been given to Maggi noodles and CFTRI lab has not yet tested Maggi for MSG.

Jagran Prakashan, HT Media and ENIL: Government's FM radio auction bids touched Rs 869 crore by day 8. As of now, 28 rounds of bidding have been completed.

8:35 a.m.: The mid-cap stocks have been in limelight since quite some time now. The CNX mid-cap index has been registering new all-time high levels in the last couple of days. The mid-cap index has rallied 6 per cent in the last six trading sessions.

8:30 a.m.: Global IT firm, Cognizant reported stronger-than-expected quarterly revenue and profit, as its business that serves the healthcare industry led the company's growth for the third quarter in a row.

Cognizant's results are positive for the Indian IT companies as it reflects positive outlook for the overall IT industry.

8:20 a.m.: Pension money will be invested in stock markets from today. Initially the investment will be made in Exchange Traded Funds only.

8:15 a.m.: Foreign institutional investors purchased shares worth Rs 447.9 crore while the domestic institutional investors sold shares worth Rs 189.11 crore.

8:00 a.m.: The Sensex and Nifty are likely to edge lower in the opening deals tracking subdued trading of Nifty on the Singapore Stock Exchange. The Nifty traded on the Singapore Stock Exchange also known as the SGX Nifty was down 0.1 per cent at 8,583.

Meanwhile, other Asian markets were trading on a mixed note. The Hang Seng slipped 0.4 per cent, Shanghai Composite advanced 0.5 per cent and Nikkei was up 0.8 per cent.

Overnight, the S&P 500 and Nasdaq Composite rose on Wednesday following three days of losses as tech shares advanced, while the blue-chip Dow index ticked lower, weighed by Disney's largest daily drop in almost seven years.

The Dow Jones industrial average fell 10.22 points, or 0.06 per cent, to 17,540.47; the S&P 500 gained 6.52 points, or 0.31 per cent, to 2,099.84; and the Nasdaq Composite added 34.40 points, or 0.67 per cent, to 5,139.95.