Indian crude basket at $48.16/bbl on September 4

The price of Indian Basket decreased to Rs. 3,197.82 per bbl on Friday as compared to Rs. 3,225.40 per bbl on Thursday.

The international crude oil price of Indian Basket as computed by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 48.16 per barrel (bbl) on Friday. This was lower than the price of US$ 48.70 per bbl on previous publishing day of Thursday.

In rupee terms, the price of Indian Basket decreased to Rs. 3,197.82 per bbl on Friday as compared to Rs. 3,225.40 per bbl on Thursday. Rupee closed weaker at Rs. 66.40 per US$ on Friday as against Rs. 66.23 per US$ on Thursday.

Doha Bank partners with Anil Ambani led Reliance Group

The scope of the partnership will strengthen Doha Bank’s presence in India and the bank’s strategic role in trade finance, banking and financial services across the region and in creating business opportunities between GCC and India.

Doha Bank and Reliance ADA Group have entered into an alliance to create new opportunities for cooperation and innovation in terms of business development across the GCC and India. The MOU is envisaged to provide tangible business opportunities and further prospects for expansion for Doha Bank and Mr. Anil Ambani led Reliance Group. It will also provide synergy in product development and congruence in mutual infrastructure support.

Doha Bank which enjoys brand excellence, a vast network of branches and representative offices across the world and multi-pronged initiatives; offers a wide range of banking services related to Retail, Corporate, Treasury and Investments. Doha Bank’s large growing customer base and its business integration model  sets the grounds for a perfectly fitted partnership with one of India’s most diversified business houses, having a robust presence in Financial Services, Telecom, Infrastructure, Entertainment, Power, Health Care, and Defense industries.

The relationship-based model has been designed with a revolutionary approach between Doha Bank and Reliance Group which has been engaged in pivotal roles in the ongoing economic transformation of India. This agreement will open new horizons for business reciprocity in Financial Services.

The agreement which has been formalized at the Sheraton Doha Hotel was signed by Anil D. Ambani, Chairman, Reliance Group and Doha Bank Group CEO Dr. R. Seetharaman in the gracious presence of Mr. Sanjiv Arora, Ambassador of India to Qatar. The exclusive assembly has been attended by the most renowned and influential business leaders and investors in Qatar at which the Qatar Airways Group CEO Akbar Al Baker was the guest of honour. Also the event was attended by a delegation of eminent businessmen from India.

Anil D. Ambani the Chairman of Reliance Group said, “We are glad to enter into this partnership which will further reinforce the economic interaction between GCC and India. Reliance  Capital will look forward to offering customized solutions and investment products to Doha Bank customers.”

Doha Bank Group CEO Dr. R. Seetharaman has accentuated in a press conference the scope of the collaboration and said: “The arrangement will include financial services initiatives with Reliance Capital in the areas such as asset management, life and general insurance and distribution of financial services.”

The scope of the partnership will strengthen Doha Bank’s presence in India and the bank’s strategic role in trade finance, banking and financial services across the region and in creating business opportunities between GCC and India. It is worthwhile mentioning that all the activities under the partnership will be strictly compliant with the laws and regulations in India and the GCC. Reliance Group and Doha Bank partnership further proves that there is so much to look forward to between India and GCC. 

Top mutual fund news of the day- September 7, 2015

Reliance Mutual Fund has launched a new fund called Reliance Fixed Horizon Fund XXIX- Series 6.

Reliance Mutual Fund has launched a new fund called Reliance Fixed Horizon Fund XXIX- Series 6, a close-ended income scheme with the duration of 1112 days from the date of allotment.

Birla Sun Life MF has set September 10 as record date for declaration of dividend on the face value of Rs. 10 per unit under the direct plan dividend option of Birla Sun Life Fixed Term Plan, Series HW.

ICICI Prudential MF has announced September 10 as the record date for declaration of dividend under the dividend option of ICICI Prudential Interval Fund - Quarterly Interval Plan I.

Axis MF has announced September 10 as the record date for declaration of dividend under the dividend option and direct plan - dividend option of Axis Midcap Fund.

Sahara Mutual Fund, which has been ordered by the Securities and Exchange Board of India (Sebi) to transfer its asset management business to a new fund house by December, is unlikely to find a buyer as fears of litigation and regulatory issues keep fund houses away.

Investors from smaller towns may have to pay less for investing in mutual fund products as industry body Amfi is looking to reduce expense ratio by 30 basis points by October 2016.

IIFL Mutual Fund has filed offer document with SEBI to launch a close ended income scheme as IIFL Fixed Maturity Plan-Series 11 & 12. The New Fund Offer price is Rs 10 per unit. Entry load and exit load will be Nil for the scheme. 

ONGC slips; ONGC Videsh to acquire stake in Vankor oil field

The stock opened at Rs229 as against the previous close of Rs.226 on BSE. It has hit a high of Rs.229 and a low of Rs.224 on BSE today

Shares of ONGC was lower by 0.27% to Rs. 226 after the company said that its arm ONGC Videsh will acquire a 15% stake in the Vankor oil field of Russian state firm Rosneft for about $1.35 billion (Rs. 8,910 crore). 

The stock opened at Rs. 229 as against the previous close of Rs. 226 on BSE. It has hit a high of Rs. 229 and a low of Rs. 224 on BSE today.

Total traded quantity on the counter stood at over 0.87 odd-shares on BSE.

Meanwhile, the BSE Sensex is up 11  points a 25,213.

ITC plans to offer distribution networks to startups: Reports

Report says that the company is planning to acquire stake in some of these smaller companies.

ITC is reportedly planning to offer its distribution network, to startups and smaller FMCG companies, says report.

Report says that the company is planning to acquire stake in some of these smaller companies.

The company has created a separate division for distribution. 

Earlier, distribution was part of the firm's cigarette division called India Tobacco Division (ITD). 

IndusInd Bank Gains as RBI Allows Foreign Investors to Buy Shares

IndusInd Bank shares rose as much as 2.4 per cent to hit intraday high of Rs 860 in an otherwise choppy market on Monday after the Reserve Bank of India on Friday removed IndusInd Bank shares from its foreign institutional investors' (FIIs) caution list.

RBI's move will allow foreign investors to buy shares of IndusInd Bank.

Under the Portfolio Investment Scheme (PIS), RBI keeps a tab on foreign shareholding of Indian firms in accordance with the stipulated cap.

According to a press release issued by the Reserve Bank of India, "The aggregate shareholdings in IndusInd Bank by non-resident Indians/persons of Indian origin/foreign institutional investors/registered foreign portfolios investors through global depository receipts/American depository receipts/foreign direct investment in primary/secondary markets have gone below the prescribed threshold limit."

"Hence, the restrictions placed on the purchase of shares of the above bank are withdrawn with immediate effect," RBI said.

As of June 2015, FIIs held 38.58 per cent stake in the private sector lender.

Reacting to this development, shares of IndusInd Bank traded on a positive note. As of 9:36 a.m., shares of IndusInd Bank traded 0.4 per cent higher at Rs 843.

5 sectors under scanner for service tax evasion: Report

The Government has budgeted to collect over Rs. 2.09 lakh crore from service tax in the current fiscal year, a growth of 25% over FY15.

The Revenue Department has reportedly decided to focus on five key sectors, including telecom and renting of property, to curb tax evasion and boost service tax collection.

The sectors where tax evasion is believed to be rampant include aviation operations, manpower recruitment, security agencies, works contract and construction, according to reports.

Manual scrutiny of service tax returns of assesses has been initiated from 1st August based on risk parameters.

The detailed manual return scrutiny would be conducted in respect of such assesses whose total tax paid for FY15 is below Rs.50 lakh.

The Government has budgeted to collect over Rs. 2.09 lakh crore from service tax in the current fiscal year, a growth of 25% over FY15.

During April-July FY16, the service tax revenues rose by 20.1% to INR 60,925 crore.

18 Stocks in focus today

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

HDFC Bank: The bank is planning to add 100 branches in the eastern region, taking its total tally to 600 branches by the end of ongoing financial year.

Reliance Industries: The company has successfully tested presence of natural gas in one of the two KG-D6 block natural gas discoveries which the sector regulator DGH had previously refused to recognise.

Aurobindo Pharma: The pharma company has received final approval from US health regulator to make and sell in America the generic Telmisartan tablets used for treating hypertension.

PVR Ltd: The company has approved an amalgamation scheme between Bijli Holdings Pvt Ltd and itself to simplify PVR's shareholding structure.

IndusInd Bank: RBI has removed IndusInd Bank from its caution list, allowing foreign investors to buy further shares in the lender.

Maruti Suzuki: The company is planning to advance production from its Gujarat facility by three to six months. The company may begin production from Gujarat in January 2017.

Suzlon Energy: The board of the company has sought shareholders' approval to raise up to Rs. 50 billion through the issue of securities.

Rajesh Exports Ltd: The company has bagged an export order worth Rs. 1,123 crore from Singapore for gold and diamond studded jewellery.

Amara Raja Batteries: The company plans to commission the tubular battery plant at Nunegundlapalli in the Chittoor district of Andhra Pradesh by December 2015, Vice-Chairman and MD Jaydev Galla told shareholders.

IL&FS Transportation Networks Ltd: ITNL is reportedly looking to sell most of its operational annuity road projects in a bid to pare debt before the end of FY16. The company is in early-stage talks with international pension funds, besides domestic and foreign private equity (PE) firms, according to a financial daily.

Vijaya Bank: The Bank has approved the reduction of Base Rate by 15bps from 10% p.a. to 9.85% p.a. with effect from September 04, 2015.

Glenmark Pharmaceuticals: The pharma company said it has received final approval from the US health regulator for Voriconazole Tablets, used to treat fungal infections.

Wockhardt: The pharma company continue to strengthen its R&D capabilities to develop innovative and technologically advanced medicines. The firm has set up three world-class, multi-disciplinary R&D facilities in India, the UK and the US, which are engaged in studies and experiments to develop new drugs and novel drug delivery systems.

Aditya Birla Nuvo Ltd: The Aditya Birla Nuvo approved termination of plans to issue GDRs by group firm Pantaloons Fashion and Retail (PFRL) as envisaged under a merger scheme to consolidate their branded apparel business due to regulatory issues.

Srei Infra, Tata Teleservices: American Tower Corp. (ATC) is reportedly planning to acquire a majority stake in tower rival Viom Networks that will see the Tata group retain a minority stake. Tata Teleservices has 54% stake in Viom and Srei owns 18.5% while the rest is held by private equity firms Macquarie SBI Infrastructure, GIC Investments, IDFC Private Equity and Funderburk Mauritius (Oman Investment, says report.

Dr Reddy's Laboratories Ltd: The company is recalling over 55,000 bottles of Amlodipine besylate and Atorvastatin calcium tablets, used to treat high blood pressure and cholesterol related diseases, in the US market.

Natco Pharma Ltd: The Reserve Bank of India has notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 31.50 per cent of the paid up capital of M/s Natco Pharma Limited under the Portfolio Investment Scheme (PIS).

ONGC: ONGC Videsh will acquire a 15% stake in the Vankor oil field of Russian state firm Rosneft for about $1.35 billion (Rs. 8,910 crore), as per media reports. 
 

Global Concerns May Shrink Wall Street's Q3 Estimates

New York: Slowing growth in emerging markets and currency fluctuations in anticipation of a U.S. interest rate hike may push third-quarter revenue and earnings estimates lower this month.

Wall Street expects a 3.4 per cent decline in earnings for the S&P 500 for the quarter. Estimates have already fallen for 9 out of 10 of the benchmark index's sectors so far this year, according to Thomson Reuters data.

S&P revenue is expected to fall 2.8 per cent for the quarter, led by steep declines in the energy and materials sectors. As companies tend to revise guidance around the end of the quarter, estimates may become even less optimistic.

"Analysts will likely be pulling in their reins going into the quarterly reports and the pre-announcement season. This could happen fairly quickly," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.

The dollar index, measuring the greenback against a basket of major currencies, has risen 0.8 per cent so far this quarter after falling 2.9 per cent last quarter. Ghriskey sees the currency's strength hurting the competitiveness of U.S. exports against local products overseas and imports here, resulting in shrinking revenue and earnings for U.S. multinationals.

In addition, demand is likely slower in many overseas markets with slowing growth in China and recessions in Brazil and Russia hurting both revenue and earnings.

Jim Paulsen, chief investment officer at Wells Capital Management in Minneapolis, says that since the majority of S&P companies tend to beat earnings estimates every quarter, he will focus more on revenue than the bottom line, which can be tweaked with cost cuts and share buybacks to beat estimates.

But Paulsen is not optimistic about the coming quarter.

"It seems clear to me that top-line sales results will be a little disappointing again," he said. "If you look at what's going on in global economies, it doesn't paint a real good picture of what top-line growth will be like. The question is: 'How much of that is already factored in?'"

U.S. telecommunications, which is mostly insulated from global markets, is the only S&P sector that has shown improving estimates for both third-quarter earnings and revenue.

With crude oil prices falling sharply, the energy sector is faring the worst, with current expectations for a 62 per cent earnings decline and a 33 per cent revenue drop.

Analysts expect the materials sector to report a 11.8 per cent earnings decline due to falling commodities prices and a 10.4 per cent revenue drop. They see earnings for industrials, which have big overseas exposure, falling 4.9 per cent and revenue falling 5 per cent.

Many investors hope the equity market becomes less volatile after August's sharp swings. But earnings weakness could make jittery market participants question valuations all over again.

"A lot of people think the market will come back. If we see fundamentals that challenge that story, that could be a very significant part of this earnings season," said Paulsen.

Rupee opens lower by 9 paise at 66.60/$

The currency touched a high and low of 66.86 and 66.93 respectively

Indian Rupee today opened at 66.60 against the dollar, lower by 14 paise in early trade on Monday.
The rupee ended weak on Friday on persistent demand for the American currency from banks and importers amidst foreign capital outflows. On the global front, dollar fallen against the yen as the safe-haven Japanese currency gathered bids after Tokyo shares fell to a seven-month low in nervous trading ahead of US jobs data. With investors turning cautious of the US jobs data which is expected later in the day that would influence Federal Reserve’s decision on the timing of rate hike, Asian trade witnessed benign oil prices on Friday.U.S. crude for October delivery was down 20 cents at $46.55 a barrel, after settling 50 cents higher in the previous session, as per the report.

Indian rupee ended at 66.46, weaker by 22 paise on Friday. The currency touched a high and low of 66.86 and 66.93 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.40 and for Euro stood at 73.89 on September 04, 2015. While, the RBI’s reference rate for the Yen stood at 55.57, the reference rate for the Great Britain Pound (GBP) stood at 101.1941.

BSE Sensex, Nifty Set to Open Lower: 10 Developments

BSE Sensex and Nifty are likely to open lower, tracking losses in other Asian markets. The SGX CNX Nifty was down 0.34 per cent, indicating lower opening for Indian markets.

1) Indian markets are witnessing an exodus from foreign investors who sold a record Rs 16,877 crore worth of domestic stocks in August. On top of that, they sold Indian stocks worth nearly Rs 4,000 crore in the past four sessions.

2) The keenly watched US jobs report, which was released on Friday, failed to allay uncertainty over the timing of a Federal Reserve rate hike, a factor that has been weighing on global equity and currencies for a while.

3) Analysts say that Indian markets are likely to remain volatile till the crucial US Fed meet which is scheduled for September 16-17. An interest rate hike in the US could accelerate the selling from foreign investors who would like to park their money in US bonds.

4) Asian markets were mostly lower today on uncertainties over Fed rate hike and fears about China economy. Japan's Nikkei was down nearly 0.35 per cent while Hong Kong's Hang Seng slipped 0.30 per cent.

5) On Friday, Wall Street fell over 1.5 per cent on Friday, which also weighed on Asian markets today. US markets will be closed today for a holiday.

6) China markets, which reopened today after a four-day weekend, were flat today, with Shanghai Composite up 0.17 per cent.

7) China's top officials over the weekend at the G20 summit said that its financial markets are expected to remain stable and the renminbi is not on course for a long-term devaluation. They also said that fiscal spending will grow faster than expected this year. Finance Minister Lou Jiwei said that central government spending will rise 10 per cent this year.

8) China is headed for its slowest economic expansion in 25 years in 2015 and mainland markets have slumped 40 per cent since mid-June, sending global financial markets skittering.

9) The China Securities Regulatory Commission on Sunday that the country's markets were more stable and risks associated with high levels of leverage have eased following a period of high volatility.

10) Meanwhile, China has revised down its annual economic growth rate in 2014 to 7.3 per cent from the previously released figure of 7.4 per cent. The world's second-largest economy grew 7 per cent in the first half of this year from a year earlier - in line with the government's target for 2015, but recent downbeat data has raised the risk the government could miss the full-year growth target