Top M&A news of the day

Air cooler maker Symphony Limited on Thursday announced acquisition of Chinese air cooler company Munters Keruilai Air Treatment Equipment (Guangdong) Co. Ltd. (MKE) that owns the brand Keruilai, for Rs 1.5 cr.

Air cooler maker Symphony Limited on Thursday announced acquisition of Chinese air cooler company Munters Keruilai Air Treatment Equipment (Guangdong) Co. Ltd. (MKE) that owns the brand Keruilai, for Rs 1.5 cr. 

News Corp. is in the “final phase” of talks to sell its Amplify Inc. education unit. Amplify was supposed to help News Corp. take advantage of growth in the market for digital education, which is gradually replacing print textbooks. After investing more than $1 billion in the business, results have been “disappointing,” Chief Financial Officer Bedi Singh said.

Nomad Holdings Ltd. said on Thursday that it had agreed to acquire the Continental Europe business of Findus Group, the British frozen food and seafood supplier, for 500 million pounds, or about $780 million. 

Mylan NV , which is trying to buy drugmaker Perrigo  through a $34 billion hostile tender offer, on Thursday lowered the level of support it requires from Perrigo shareholders to push through the takeover. 

Roche is buying U.S. diagnostics firm GeneWEAVE BioSciences for up to $425 million, expanding the Swiss group's commitment to fighting so-called "superbugs" as the threat from drug-resistant microbes grows, reports.

Sensex rallies 100 points; pharma, banking stocks gain

Some buying activity is seen in pharma, consumer durables, banking, auto, capital goods and IT sectors, while metal, oil&gas and fmcg sectors are showing weakness on BSE.The BSE Mid-cap Index is trading up 0.54% at 11,190, whereas BSE Small-cap Index is trading up 0.37% at 11,611.

The market has kick-started the day on a firm note - with the BSE Sensex up 119-odd points at 27,668 and the NSE Nifty up 47-odd points at 8,402, trading positive Asian cues.

The key benchmark indices touched a high at 27,711 and 8,409, respectively.

Now, the BSE Sensex is up 126 points at 27,675 and the NSE Nifty is up 36 points at 8,392.

The broader market are out-performing the CNX Nifty, the Midcap and Smallcap indices are up 0.6-0.8 percent each at 13,721 and 5,579, respectively.

The Volatility index - India VIX - is now down almost 3 percent at 16.51.

Among sectoral, the CNX Metal index is the only loser - down over 0.5 percent at 1,880, following recent decline.

The CNX Pharma index has jumped 1.4 percent at 13,097. The PSU Bank and Realty indices have spurted almost a percent each at 3,364 and 171, respectively.

The Auto, Bank Nifty, Infra, Energy and Finance indices are the other notable gainers.
Sun Pharma and Idea Cellular are the top gainers in Nifty-50, up almost 2 percent each at Rs. 895 and Rs. 160, respectively.

Cipla has jumped over 1.5 percent at Rs. 737. Bharti Airtel and Lupin have advanced 1.4 percent each at Rs. 390 and Rs. 1,782, respectively.

Bank of Baroda, Asian Paints, HCL Technologies, Punjab National Bank and Tata Power are the other prominent gainers.

On the losing side, Cairn India plunged over 3 percent at Rs. 149. Vedanta slipped nearly 2 percent each at Rs. 101.

NMDC has dropped 1.5 percent at Rs. 95.60. Tech Mahindra and Tata Steel have shed over a percent each at Rs. 544 and Rs. 231, respectively.

Glenmark, Indiabulls Housing rally on MSCI inclusion

Glenmark has soared over 8 percent, while Indiabulls has jumped over 3 percent in early deals.

Shares of Glenmark and Indiabulls Housing Finance are trading on a gung-ho note on been included in select MSCI indices.

According to media reports, Glenmark Pharmaceuticals will be added to the MSCI Emerging Markets Index and Indiabulls Housing Finance will be included in the MSCI ACWI Value Index.

Glenmark so far has touched a high of Rs. 1,164, and is now up over 8.5 percent at Rs. 1,149. The counter has seen trades of around 28,000 shares so far on the BSE.

Indiabulls Housing Finance has touched a high of Rs. 788, and is now up 3.5 percent at Rs. 783. Around 20,000 shares have changed hands at the counter in early trade so far.

Meanwhile, the Sensex has advanced 134 points to 27,684.

Oil Remains Near 2009 Lows on High US Stocks, Asia Economy Worries

US crude oil prices remained close to their lowest in over six years early on Friday, as rising U.S. stockpiles stoked oversupply and on worries over demand from slowing economies in Asia.

U.S. oil prices tumbled more than 3 per cent to a 6-1/2-year low under $42 a barrel on Thursday as data showing a big rise in key U.S. stockpiles intensified concerns over a growing global glut.

Thursday's drops were driven by a report that stockpiles at Cushing in Oklahoma, the delivery point for U.S. crude futures, rose more than 1.3 million barrels in the week to August 11.

Markets remained weak in early trading on Friday. U.S. crude was trading at $42.08 per barrel at 0050 GMT, close to over six-year lows. Brent futures were trading at $49.21 a barrel, down 1 cent from their last settlement but still some way off from their 2015-low of $45.19.

On the demand side, China's slowing economy and weakening currency could lead to a slump in consumption.

"WTI prices fell sharply to a six-year low amid rising concerns around China's economic slowdown," ANZ bank said on Friday, adding that further price falls were likely.

"The lowest crude prices in six years might not be enough to put the brakes on the U.S. supply growth. U.S. shale players are actively cutting cost and some players are profitable at less than $30 per barrel."

Although China's crude oil demand has so far remained strong as authorities take advantage of cheap oil to build up strategic reserves and consumers kept spending despite the slowing economy, there are signs of weakening, with the devaluation of the yuan potentially denting fuel imports.

China's implied oil demand fell in July from the previous month amid a continuing drop in the nation's vehicle.

Analysts at JPMorgan estimate around $235 billion of private capital left China between the third quarter of 2014 and the end of the second quarter this year.

China's slump may be spreading across Asia. Japan's economy likely shrank in April-June as exports slumped and consumers cut back on spending, a Reuters poll showed.

China's economic slowdown and its impact on its trade-reliant Asian neighbours have also heightened the chance that any rebound in growth in July-September will be modest, analysts said.

Asian Shares Edge Lower as Crude Oil Spirals Down

Tokyo: Asian shares were subdued in early trade on Friday, but still on track for a steep weekly loss in the wake of China's shock currency devaluation earlier in the week.

Crude oil futures remained under pressure, plunging to 6-1/2-year lows after data revealed a big rise in U.S. stockpiles, fuelling fears of a growing global glut.

MSCI's broadest index of Asia-Pacific shares outside Japan was down about 0.1 per cent, poised to end the week down 2.6 per cent.

Japan's Nikkei stock index fell 0.3 per cent, and was down about 0.9 per cent for the week.

Investors awaited Friday's yuan fixing to see if China's central bank would set its official guidance rate lower for a fourth day. The People's Bank of China (PBOC) set its rate nearly 2 per cent lower on Tuesday, a move it said was aimed at making its foreign exchange system more responsive to market forces.

The PBOC reassured investors on Thursday, saying there was no reason for the yuan to fall further given the country's strong economic fundamentals, helping to calm investors who pared holdings of risk assets for fear of a currency war.

The dollar's moves in U.S. trading were subdued, which meant the PBOC could set Friday's reference below Thursday's 6.4010, at around 6.39, said Sean Callow, senior currency strategist at Westpac.

"While this would simply be a stable outcome - fully consistent with how the PBOC has explained the 'new system - it would generate a wave of headlines about a stronger yuan and should support risk appetite," Callow said in a note.

A midpoint in the 6.40-6.41 area might be unsettling for risk assets, he said.

The dollar was steady on its Japanese counterpart at 124.41. The euro edged up about 0.1 per cent to $1.1158, moving back toward a one-month peak of $1.1215 scaled on Wednesday.

The dollar came under pressure this week as the market instability caused by China's devaluation curbed expectations that the U.S. Federal Reserve's long-awaited interest rate increase would come as early as its Sept. 16-17 meeting.

But strong U.S. retail sales data on Thursday provided evidence in support of views that the Fed is on track to hike.

U.S. retail sales rose in July and were revised up for June, while the trend of weekly jobless claims pointed to a tightening job market.

In commodities trading, crude oil futures extended sharp losses that pushed oil prices to levels not seen since early 2009, when the financial crisis was wreaking havoc on markets.

U.S. crude settled down 3 per cent at a new 6-1/2-year low as a big rise in U.S. stockpiles intensified worries over a growing global glut.

U.S. crude oil was down 0.4 per cent at $42.07 a barrel in early Asia trade, while Brent slipped 0.2 per cent to $49.11, ahead of Friday's expiry of its front-month contract

China Fixes Yuan Stronger Vs Dollar, Reversing Falls

China's central bank on Friday raised the yuan currency against the US dollar by 0.05 per cent, the national foreign exchange market said, ending three days of falls after a surprise devaluation. The daily reference rate was set at 6.3975 yuan to $1.0, up from 6.4010 the previous day, the China Foreign Exchange Trade System said. The rate was also slightly stronger than Thursday's close of 6.3982 yuan.
The stronger fixing for the yuan came after the People's Bank of China (PBoC) reassured financial markets by pledging to seek a stable currency after a shock devaluation of nearly two percent on Tuesday.
The cut, and two subsequent reductions, sent global financial markets into a tailspin as it raised questions over the health of the world's second-largest economy and fears of a possible currency war.
Beijing said the move was the result of switching to a more market-oriented method of calculating the daily reference rate which sets the value of the yuan, also known as the renminbi (RMB).
Previously, authorities based the rate on a poll of market-makers, but will now also take into account the previous day's close, foreign exchange supply and demand and the rates of major currencies.
The currency is still only allowed to fluctuate up or down two per cent on either side of the reference rate.

20 Stocks in focus today

Check out the companies which will be in focus during trade today based on recent and latest news developments.

DLF: The real estate company reported a 5 per cent decline in consolidated net profit at Rs 121.55 crore for the quarter ended June due to higher finance cost and rise in operational expenses.

Unitech: The company posted a consolidated net loss of Rs 281.29 crore during the quarter ended June 30, as the company booked a capital loss in sale of an IT park project by its overseas group firm.

GMR Infrastructure Ltd: The company has commenced the operation of its 370-MW GMR Vemagiri Power Generation Ltd's gas-based project from at Vemagiri in Andhra Pradesh.

Glenmark & Indiabulls Housing: Glenmark Pharmaceuticals will be added to the MSCI Emerging Markets Index. Indiabulls Housing Finance (India) will be added to MSCI ACWI Value Index.

ICRA: The company posted a 24.33% dip in June quarter consolidated net profit at Rs. 16.49 crore, taking a hit from closure of its operations in Indonesia and a dip in other income.


Allcargo Logistics: The company has acquired two additional vessels aggregating 24,000 DWT for an undisclosed sum for its coastal shipping business.

Kaya Limited:  The skin care maker from the Marico group will be listed on the stock exchanges on Friday August 14 after the scheme of arrangement with Marico Kaya Enterprises. Marico Kaya trading was suspended on May 25 for the scheme of arrangement, as per media reports.

Ashok Leyland: The company is planning to set up three or five assembling plants outside India. The first plant is expected to go on stream by end of the current fiscal and each of these plants would attract investment of around Rs. 300-500mn.

JSW Steel Ltd and Kalyani Steels Ltd: The company's are considering cutting some steel product prices to preserve market share, worried Chinese exports will become even cheaper due to a weaker yuan.

Hathway Cable and Datacom: The company has received FIPB approval to increase foreign investment limit in the firm from the existing 49 per cent to 74 per cent under the automatic route.

GVKPIL: The company reported its net loss for the quarter ended June 30 narrowed down to Rs. 124 crore against Rs. 281 core during the corresponding three months last year.

Tata Steel Ltd: The company has received shareholders nod to raise up to Rs. 10,000 crore through securities to meet capital requirements.

GVK Power and Infrastructure Limited: The company is planning to raise as much as Rs. 40 bn from the capital markets for its airport vertical. The company is expected to file the draft red herring prospectus for the proposed IPO of the GVK Airport Developers Private Limited in a week or two.

IDBI Bank: The bank has received shareholders nod to raise Rs. 26,000 crore through a mix of equity and bonds to fund growth.

Oil and Natural Gas: The company has posted an increase of 14.18% in net profit of Rs. 54,599 million for the quarter ended June 30, 2015 against Rs. 47,817.90 million for the quarter ended June 30, 2014.

Crompton Greaves: The company has bagged Rs. 300 crores of orders from Power Grid, the largest transmission utility in India for supply, erection, testing and commissioning of power transformers at various substations across India.

Dr. Reddy’s Laboratories announced today that it has launched PRAMIPEXOLE dihydrochloride extended-release tablets 0.375 mg, 0.75 mg, 1.5 mg, 3 mg and 4.5 mg, a therapeutic equivalent generic version of MIRAPEX ER (pramipexole dihydrochloride) Extended-Release Tablets in the US market on August 11, 2015, following the approval by the United States Food & Drug Administration (USFDA).

RattanIndia Power Ltd: The company has posted a net loss after taxes, Minority Interest and Share of Profit/(Loss) of Associates of Rs. 2,631.82 mn for the quarter ended June 30, 2015 as compared to net loss of Rs. 1,407.988 mn for the quarter ended June 30, 2014.