IOC OFS Oversubscribed by 18%

Despite adverse market conditions, the Indian Oil Corporation Limited (IOCL) OFS has been endorsed by the institutional investors as the Issue was oversubscribed, and the Institutional bucket subscribed 143% and the retail bucket subscribed 18%

Despite adverse market conditions, the Indian Oil Corporation Limited (IOCL) OFS has been endorsed by the institutional investors as the Issue was oversubscribed, and the Institutional bucket subscribed 143% and the retail bucket subscribed 18%.

At the end of the day with total subscription of approximately Rs. 11,107 crores, the issue stood oversubscribed by 18%. 

This was the third CPSE disinvestment under the new SEBI Rules allowing the Notice Period to include banking day in addition to a trading day. Overall, this was the fourth CPSE disinvestment for the fiscal year 2015-16 which was successfully completed today with the IOCL OFS getting fully subscribed. 

On offer was 10% paid up capital of the company comprising 24,27,95,248 shares, each of face value of Rs. 10. Out of the shares offered for sale, 20% were reserved for retail investors i.e. those investors who placed bids for shares of total value of not more than Rs. 2 lakh. In addition a 5% discount was also offered to retail investors. With this disinvestment, the Government of India shares in IOCL will come down to 58.57%.

ONGC up on submitting revised development rights for Iran field

The stock spurted nearly 2 percent in opening trades.

ONGC has spurted nearly 2 percent to a high of Rs. 231 on the back of positive news flow.

According to media reports, the company's overseas investment arm, ONGC Videsh, had submitted a revised proposal seeking the development rights of Iran's giant gas field Farzad B.

The stock, however, has pared gains and is now up a percent at Rs. 229. Around 146,000 shares have changed hands at the counter so far on the BSE.

Meanwhile, the Sensex has gained 160 points at 25,902.

United Breweries zooms 7% in opening deals

The stock is in demand of buzz that Heineken may hike stake in the company.

United Breweries is trading on a buoyant note in early morning deals on buzz of further stake dilution. The stock has zoomed as much as 7 percent in the opening trades.

According to media reports, the foreign partner Heineken NV is looking to raise its stake in United Breweries, to gain full management control.

The stock is now up over 6 percent at Rs. 882. The counter has seen trades of around 6,800-odd shares as against the two-week daily average volume of around 16,000 shares on the BSE.

Meanwhile, the Sensex has rallied 297 points to 26,038.

Gold Holds Below Seven-Week High as Dollar, Equities Recover

Gold hovered below a seven-week high on Tuesday as equity markets and the U.S. dollar rebounded from a brutal selloff in the prior session that was fuelled by fears over the fate of the Chinese economy.

After Monday's rout, most Asian stocks recovered in tandem with U.S. futures and Chinese shares pared losses. The dollar rose 0.6 per cent versus a basket of currencies after falling the most since 2011.

"If that remains the case over the course of this session then buying interest in gold could dry up," said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

Spot gold was flat at $1,154.60 an ounce by 0240 GMT. It closed a tad lower on Monday after a five-day rally that lifted it to $1,168.40 on Friday, its loftiest since July 7.

U.S. gold for December delivery was also flat at $1,154 an ounce.

Gold was among the least bruised by Monday's selloff, dropping half a per cent versus a 6 per cent slide in Brent crude and a 2 per cent decline in copper.

A near-9 per cent dive in China shares sent global stocks and commodity prices tumbling overnight. That helped gold hold up as uncertainty over the global economy boosted investor appetite for safe-haven assets.

"Gold should continue to hold its value during the current market turbulence, however a material surge higher is unlikely as participants find liquidity by selling all asset classes, including precious metals," MKS Group trader James Gardiner said in a note.

Also potentially limiting gold's upside potential, a key Federal Reserve official stuck to his view that a U.S. interest rate hike would happen this year. Atlanta Fed President Dennis Lockhart said the Fed will likely begin raising rates "sometime this year," even as the steep drop in oil prices clouds the inflation outlook. Two weeks ago, Lockhart said he was "very disposed" to a rate hike in September.

CMC Markets' McCarthy believes a U.S. rate hike can still happen next month.

"The Fed is focused on the underlying economy, not the share market. They want to normalise rates so that they have room to move should another crisis emerge," he said.

Spot palladium fell to as much as $555.50 an ounce, its lowest since July 2012, before paring losses to trade at $564.25, down 1.1 per cent.

Platinum gained 0.5 per cent to $993 an ounce and silver rose 0.8 per cent to $14.90. 

Glenmark sees 4-6 product approvals from USFDA in FY16

The company's diabetes portfolio contributes ~INR. 100 crore to the total annual revenue and has been growing at 20% per annum.

Glenmark Pharmaceuticals Ltd. is expecting approval for 4-6 new products from the US Food & Drug Administration (USFDA) during the second half of the current financial year.

The company has received eight product approvals from the US regulator in the last six months, President and Head of India Business, Sujesh Vasudevan and Vice President – Corporate Strategy, Jason D’souza said at a press in Hyderabad on Monday.

The expected new launches this year in the US could be 12-14.

In the domestic market, Glenmark expects the growth to be 18-20% this year, which will be driven by Teneligliptin brands Zita Plus and Ziten.

The company's diabetes portfolio contributes ~INR. 100 crore to the total annual revenue and has been growing at 20% per annum.

Glenmark plans to launch a Teneliglptin combination diabetes generic drug in the domestic market once the phase-III clinical trials are over, Vasudevan said.

Oil Prices Edge Up but Market Remains Cautious as Asian Stocks Keep Tumbling

Singapore: Crude oil markets edged up but remained near 6-1/2-year lows on Tuesday, following a session that saw prices fall as much as 6 per cent after a Chinese equities rout sent global markets into a tailspin.

Asian stocks resumed their slides on Tuesday, with China's major stock indexes tanking again in early trade, sparking fears of a hard landing for the Chinese economy, the world's most important growth engine.

Crude oil markets reacted cautiously in early trading, edging up but remaining at levels comparable to the peak of the global financial crisis in 2009, suggesting that worries over the economic outlook in China, the world's second-largest oil consumer, are now at least equally as big as previous concerns of oversupply that has plagued the market for over a year.

U.S. crude futures were trading up 32 cents at $38.56 per barrel at 0210 GMT, while Brent was up 27 cents at $42.96.

Goldman Sachs said that while China's turmoil would not lead to a global recession, it did expect the trouble to result in weak commodities.

"Recent economic and FX weakness in China and other emerging markets will not tip the global economy into recession," the bank said, but it added that "we see a meaningful risk that markets are over-interpreting the collapse of oil and commodity prices as a negative growth signal."

Yet the bank said that due to improved marginal costs, which it estimates to have improved by 20 per cent for U.S. shale drillers, "commodities will underperform" relative to other assets.

ANZ bank said that "the sharp (oil price) decline was driven by concerns around slowing Chinese demand just as OPEC and the U.S. expand a global glut".

Output from the Organization of the Petroleum Exporting Countries (OPEC) has hit records in a bid to squeeze out competition especially from U.S. shale producers. But they have so far been resilient to the resulting price plunges and kept pumping oil.

ANZ noted that hedge funds had reduced their net-long position in WTI to a five-year low last week, and technical indicators also remain bearish.

Reuters analyst Wang Tao said that U.S. crude could drop to $37.05 per barrel, based on a Fibonacci analysis, and that Brent could target $40.29.

Sensex Set for Rebound, Rupee Rises to 66.39/Dollar: 10 Developments

Domestic stock markets are likely to open higher on Tuesday, a day after the Sensex witnessed its worst selloff since January 2009. Trading in Nifty futures on the Singapore Exchange indicated that Indian stock markets could start over 2 per cent higher. The rupee rose to 66.39/dollar in early trade, against Monday's close of 66.64.

Here are 10 things to know before trade starts on Tuesday:

1) Dalal Street is likely to move higher after Sensex ended 5.94 per cent lower on Monday. The 1,625-point loss was the biggest one-day crash for the Sensex.


2) The rupee, which sank to a fresh two-year low of 66.74 per dollar in intraday trade on Monday, could see some respite today, analysts said. Weakness in the dollar index could support emerging market currencies, analysts said.

3) Domestic sentiments can get a boost if selling momentum by foreign investors wanes, analysts said. Over the last three sessions, foreign investors have sold shares worth nearly Rs 9,000 crore in the cash segment.

4) Domestic institutions bought shares worth over Rs 4,000 crore yesterday, preventing further slide in markets. They are expected to continue buying Indian equities.

5) Finance Minister Arun Jaitley briefed Prime Minister Narendra Modi on the selloff yesterday evening. Mr Jaitley said he wanted more steps to be taken to strengthen the Indian economy but cautioned that this could not be done in the next day or two.


6) Markets in China traded with over 4 per cent losses today. Further slide can create another round of global selloff, analysts said.


7) Markets in Asia opened sharply lower today, but later bounced back from day's low, a factor that may support domestic stocks. Japan's Nikkei index saw some recovery after falling over 4 per cent to six-month lows in early trade, while Australia's benchmark index traded in the green.

8) Overnight, the Dow Jones industrial average briefly slumped more than 1,000 points - its most dramatic intraday trading range ever. It closed down 588.4 points, or 3.57 per cent, at 15,871.35.

9) The S&P 500 lost 77.68 points, or 3.94 percent, to 1,893.21, putting it formally in correction mode. An index is considered to be in correction when it closes 10 percent below its 52-week high. The Dow was confirmed to be in a correction on Friday.

10) The widespread unrest in global markets was set in motion nearly two weeks ago when China sharply devalued the yuan following which most emerging market currencies tumbled sharply.