L&T Finance sells 5.3% to Bain Capital

The company would issue an aggregate of 9,56,57,961 equity shares and warrants at Rs 74 per share/warrant, says report.

L&T Finance Holdings sold 5.27 per cent promoter stake to leading private equity firm Bain Capital through an issue of preferential shares and warrants for about Rs. 708 crore, says report.

Report says that the company's board is planning to raise capital (Rs 707.87 crore) by way of preferential issue of eligible securities and warrants to Bain Capital Investments VI and Bain Capital Asia Growth Investments.

The company would issue an aggregate of 9,56,57,961 equity shares and warrants at Rs 74 per share/warrant, says report.

ABG Shipyard seeks shareholders approval to raise Rs. 20 bn via equity

The stock has hit a high of Rs. 153 and a low of Rs. 147.45 on BSE today.

Shares of ABG Shipyard Ltd were trading lower 1% at Rs. 149 on BSE today. The company seeks shareholders approval to raise Rs. 20 billion via equity.

The stock opened at Rs. 150 as against the previous close of Rs. 149.55 on BSE. It has hit a high of Rs. 153 and a low of Rs. 147.45 on BSE today.

Total traded quantity on the counter stood at over 0.17 lk shares on BSE.

Meanwhile, the BSE Sensex is down 53 points at 26,166.

Motherson Sumi Falls Over 5% as Client Volkswagen Admits Fudging

Motherson Sumi shares fell as much as 5.3 per cent to hit an intraday low of Rs 268.75 after the auto component maker's biggest client Volkswagen admitted to fudging emission norms for diesel cars in the US.

Volkswagen has stopped selling diesel cars in the US with immediate effect and the German carmaker can face a potential fine of $18 billion, according to a Reuters report that quoted the US Environmental Protection Agency.

Of Motherson Sumi's revenue pie, 40 per cent comes from the Volkswagen group, making it the largest client for the Noida-based company. Out of this 10 per cent revenues come from the US market.

Fears of car sales in US hitting a roadblock could spill over to other markets as well, analysts said. Motherson Sumi can face slowdown in order flows post this development as it provides auto components for Volkswagen, Audi and other Volkswagen group companies, they added

As of 12:35 p.m., shares of Motherson Sumi traded 4.88 per cent lower at Rs 270, underperforming the Nifty which was down 0.35 per cent. While, Volkswagen shares fell 14 per cent to euro 138.70 in the opening deals on the German bourses.

BHEL begins first unit of Mirchwara thermal power plant

The unit has been set up at the 3x660 MW Lalitpur Super Thermal Power Project (STPP). Lalitpur STPP is being developed by Lalitpur Power Generation Company Limited (LPGCL), promoted by the Bajaj Hindusthan group.

Bharat Heavy Electricals Limited (BHEL) has achieved a major milestone with the commencement of the first unit of the upcoming 3x660 MW Supercritical Thermal Power Plant at Mirchwara in Lalitpur district of Bundelkhand region of Uttar Pradesh. This is the first Supercritical unit set up in the state of Uttar Pradesh. The unit has been set up at the 3x660 MW Lalitpur Super Thermal Power Project (STPP). Lalitpur STPP is being developed by Lalitpur Power Generation Company Limited (LPGCL), promoted by the Bajaj Hindusthan group. 

The main plant package contract of this 1,980 MW power plant is being executed by BHEL. The unit was inaugurated today by Sh. Mulayam Singh Yadav, Hon'ble Member of Parliament in the presence of Sh. Shivpal Singh Yadav, Hon'ble Cabinet Minister, Govt. of UP; Sh. Arvind Kumar Singh Gope, Hon'ble Minister of State (Independent Charge) for Rural Development, Govt. of UP; Sh. Yasar Shah, Hon'ble Minister of State for Energy, Govt. of UP and senior officers of the Govt. of UP, Bajaj Hindusthan and BHEL. Significantly, the unit has been synchronized by BHEL three months ahead of the schedule agreed between LPGCL and BHEL. This has been made possible by compressing the erection and commissioning cycle, through the combined efforts of LPGCL and BHEL. Since its synchronization in June, 2015, the unit has been available and operating smoothly at the maximum load as permitted by the grid. 

The commencement of the unit by BHEL will result in improvement of power availability in the state of Uttar Pradesh. Extra efforts were put in by BHEL for early readiness of the unit to enable the state to tide over its acute power shortage. The second and third units of the project are also in advanced stages of completion. Further, in Uttar Pradesh, three supercritical thermal units at Bara (3x660 MW) and the second 500 MW unit at Anpara, being set up by BHEL, are also in advanced stages of completion. 

BHEL is the leading power equipment manufacturer in the country with 41 sets of supercritical boilers and 36 sets of supercritical turbine generators ordered on it by various customers. These orders have been received from Central, State as well as private sector utilities, who have reposed confidence in the company. Supercritical units are more efficient, consume lesser coal and are also eco-friendly. BHEL-supplied supercritical sets have already been commissioned at 2x660 MW Barh Stage-II (Boilers and Turbines) and at the 2x800 MW Krishnapatnam (Boilers). BHEL has once again proved its prowess as a leading supercritical power equipment manufacturer having assimilated state-of-the-art technology, suited to Indian conditions.

L&T bags orders worth Rs. 1,810 crores

The company has won orders worth Rs. 1,810 crores across various business verticals in September 2015.

The Construction arm of Larsen & Toubro has won orders worth Rs. 1,810 crores across various business verticals in September 2015.

Buildings & Factories:

The Business has secured an order worth Rs. 740 crores from a leading real estate company in India for the construction of a commercial complex in Gurgaon. The project is scheduled to be completed in 2.4 months.

The scope includes structural, mechanical, electrical and plumbing (MEP), finishes, landscaping and other allied works.

Water & Effluent Treatment:

The Business has secured a water supply order worth Rs. 573 crores from the Rural Water Supply &. Sanitation Department, Telangana under the Telangana drinking water supply project (Phase II).

The project includes construction of three water treatment plants, 1700 km of  pipeline network,  fifteen major water storage reservoirs and other associated works to meet the water needs of various habitations of the Khammam district in the State.

Power Transmission&Distribution:

The Business has secured a turnkey order worth Rs.192 crores from the Transmission Corporation of Telangana Limited for the supply, erection, testing and commissioning of a 400 kV quad moose double circuit transmission line which will run across Adilabad and Karimnagar districts of Telangana.

Transportation  Infrastructure:

An order has been received from the Delhi Metro Rail Corporation Limited for the supply, installation, testing and commissioning of ballast-less track of standard gauge. The project will be executed in the elevated and underground sections of Mundka to Bahadurgarh and Dwarka to Najafgarh along with ballasted /ballast-less tracks in depots of the Delhi MRTS Project Phase- Ill.
Additional orders, across businesses of L&.T Construction, have also been received from various ongoing jobs. 

IDFC gets RBI nod to use Rs. 2500 crore reserve; up 2%

The company said it has received regulatory approval to utilise Rs 2,500 crore non-distributable reserves for provisions against bad loans as part of exercise to clean its book before venturing into universal banking.

Infrastructure finance firm IDFC stock was higher by 2% to Rs. 136 after the company said it has received regulatory approval to utilise Rs 2,500 crore non-distributable reserves for provisions against bad loans as part of exercise to clean its book before venturing into universal banking.

The stock opened at Rs.134 as against the previous close of Rs. 134 on BSE. It has hit a high of Rs.137 and a low of Rs. 134 on BSE today.

Total traded quantity on the counter stood at over 3 lk shares on BSE.

Meanwhile, the BSE Sensex is down 157 points at 26,062.

Suzlon surpasses 2,000 MW Installations in Maharashtra

Suzlon Group has a cumulative installation of over 14 GW of wind energy capacity, presence in 19 countries and a customer base of over 1700.

The Suzlon Group,one of the leading wind turbine manufacturer, announced that it has achieved a significant milestone of 2000 MW (2 GW) of cumulative installations in Maharashtra during the first half of the year. Suzlon has a long standing presence in Maharashtra and commands a leading market share contributing significantly towards Maharashtra's sustainable energy mix. Suzlon's technological knowhow, its best in class OMS (Operation & Maintenance Services) and its end to end solutions approach gives it the competitive edge.

With over two decades of operating history, the Suzlon Group has a cumulative installation of over 14 GW of wind energy capacity, presence in 19 countries and a customer base of over 1700.

Suzlon's projects in Maharashtra are spread across 8 districts in over 40 sites. These projects are set up for a diverse group of customers from different sectors such as IPPs, Corporates, Retails, PSUs, MSMEs, etc. Suzlon has come a long way since its maiden turbine installation in this state in 1998 with a turbine of rated capacity 350 kW.With an increased demand in dean energy solutions in Maharashtra,Suzlon evolved its product offerings to higher  rated capacity turbines such as the robust 2.1MW product platform.

 Tulsi Tanti, Chairman, Suzlon Group said," Suzlods operations in Maharashtra commenced in 1998 when we installed our first wind turbine at Satora. I would like to take this opportunity to thank all our customers, investors and our employees for their continuous belief and relentless support in this long -journey spanning over 17 years."

Suzlon continues to leverage its technological edge to introduce.path breking products aimed at higher yields and ROI to customers. Our S9X product suite belonging to our proven 2.1MW platform highlights Suzlon's continuous technological evolution.   The 2.1 MW platform products have a presence in Maharashtra as well.

Maharashtra has played on integral port in enhancing Suzlon's growth. Suzlon is committed to contribute to the state's energy security and at the same time work towards mitigating the carbon footprint."

Today, Suzlon in Maharashtra employs - 2000 people. Aligned to its vision of  'Powering a Greener Tomorrow', Suzlon prides itself in championing the cause of sustainable energy. Electricity generated from Suzlon turbinesin Maharashtra light up ~12 million households and also contributes to·reducing the state's carbon footprint by eliminating ~4.33 million tones of C02 emissions annually.

Additionally, an all-round  sustainable development of the society is the  motto of Suzlon's Corporate Social Responsibility programme. Suzlon Foundation efforts have had the following positive impact so far in Maharashtra:

• 302 villages covered under CSR outreach program
• 28055 families direly benefiting
• 88 schools covered  and targetingapproximately over 14,651students
• 27676 trees planted
• 22 hectares of land tr.eated forland and soil conservation
• 1020 SHGs ( Self Help-Group}& commun ty based organizations  formed and strengthened

Syriza wins 2nd term in Greek general election

With 145 seats in the 300-member Greek parliament, Syriza is well ahead of the centre-right New Democracy party that secured 28 per cent votes and 75 seats.

Alexis Tsipras' Syriza party in Greece won its second general election in a year on Sunday with a 35.5 per cent share of the vote. However, abstention levels touched a historical high of 44 per cent.

With 145 seats in the 300-member Greek parliament, Syriza is well ahead of the centre-right New Democracy party that secured 28 per cent votes and 75 seats.

“The Greek people have given us a clear mandate to discard whatever kept us stuck in the past,” Tsipras said. “It’s a crystal clear mandate to escape from the old, corrupt establishment that governed this country for so many years.”

The Syriza-Independent Greeks coalition will have only the slightest of majorities in parliament, which may prompt Tsipras to invite a third party to join his government.

Tsipras warned there would be no easy exit from the country’s six-year recession.

His first task as re-elected prime minister will be to implement the tough austerity measures imposed by creditors in return for a new €86bn rescue package.

Tata Steel raises Rs. 41bn via sale of non-core assets

During an investor call in August, Tata Steel’s Group Executive Director (Finance and Corporate) Koushik Chatterjee said that the company in the last 5-6 years had raised ~INR 15,000 crore through the monetisation of strategic, non-core and listed assets.

Tata Steel has raised more than INR 4,100 crore through the sale of non-core assets so far in FY16 as part of efforts to cut its debt burden.

Last week, it sold 1.33 per cent stake in Tata Motors to institutional investors for INR 1,250.69 crore. It also sold a similar stake in Tata Motors to Tata Sons for INR 1,249.99 crore as part of portfolio restructuring.

This is over and above the INR 1,000 crore that it raised in the April-June quarter through equity liquidation and INR 637.46 crore in August by selling stake in Titan.

In all, Tata Steel has raised around INR 4,138.01 crore since April.

During an investor call in August, Tata Steel’s Group Executive Director (Finance and Corporate) Koushik Chatterjee said that the company in the last 5-6 years had raised ~INR 15,000 crore through the monetisation of strategic, non-core and listed assets.

20 Stocks in focus today

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

Sun Pharma Ltd, Strides Arcolab: Sun Pharmaceuticals has sold the central nervous system (CNS) product business of erstwhile Ranbaxy to Strides Arcolab for Rs1.65bn. Under the deal, Solus and Solus Care divisions will be transferred to Strides Arcolab, which will also absorb about 200 employees working in these divisions. The two divisions had an annual sale of about Rs. 0.92bn.

Hotel Leela Venture Ltd: The operator of premium hotels like the Leela Palace in Bengaluru and Delhi, has sold its marquee property The Leela Goa to Malaysian company MetTube Sdn. Bhd. for Rs 725 crore.

Tata Steel: The company has raised more than Rs41bn through the sale of non-core assets so far this fiscal as part of efforts to strengthen its balance sheet and generate cash. The firm said that it sold 1.33% stake in Tata Motors to institutional investors for Rs12.5bn.

Torrent Power Ltd: Torrent Power said its gas-based power plants will get government subsidy on use of re-gasified liquefied natural gas ( RLNG) for six months from October to March.

NBCC Ltd: The company has secured a Rs. 197-crore project to build a Trade Facilitation Centre and Crafts Museum at Varanasi.

Asian Paints Ltd: The company plans to invest up to Rs. 2,300 crore to set up a manufacturing plant at Mysuru in Karnataka.

ITC Ltd: The company has announced doubling its investment in Punjab from Rs. 700 crore to Rs 1,400 crore.

IDFC Ltd: Infrastructure finance firm IDFC said it has got regulatory approval to utilise Rs 2,500 crore non-distributable reserves for provisions against bad loans as part of exercise to clean its book before venturing into universal banking.

Ambuja Cements Ltd: The Jammu and Kashmir government has banned sale of Ambuja CementsBSE -0.17 % in the state after a probe found underweight bags and irrational product prices, a state minister said.

Dish TV, Siti Cables, Hathway services and Den Networks: The government is examining a proposal to increase the FDI limit in local television news channels to 49%, apart from opening up other areas of broadcasting for larger overseas investments.

Renuka Sugars Ltd: Three promoters of the company have together pledged 14.45% of their shares in the company as a security for loan taken by a subsidiary firm.

REC Ltd: The company said that its shareholders have approved the proposal to raise up to Rs. 42,000 crore through issuance of bonds or debentures on private placement basis.

DLF: The company will be opening its sixth mall in Delhi-NCR by May next year at an investment of Rs 300 crore.

Asian Paints Ltd: The company has informed BSE that it is proposing to set up a paint manufacturing plant at Mysuru district, in the state of Karnataka. The ultimate capacity of 6 lakh KL p.a. would be achieved in a phased manner at an approximate cost of Rs. 2,300 crores at the current prices. This is subject to due diligence and necessary regulatory and other approvals.

MMTC: The company said its shareholders have approved the proposal to raise Rs. 5,000 crore through issuance of bonds or debentures on private placement basis.

Power Mech Projects Ltd: The company has bagged a Rs. 167-crore contract from Jaypee Group's Prayagraj Power Generation Co. The company has to operate and maintain services of a thermal power plant at Bara in Uttar Pradesh.
 

Rupee commences trade at 65.84/$

On domestic macroeconomic cues, India’s current account deficit during the first quarter of this fiscal year narrowed to 1.2% of GDP, thanks to contraction in trade deficit and higher earnings from services exports.

Indian Rupee today opened at 65.84 against the dollar, lower by 17 paise in early trade on Monday. Rupee was helped by positive tone in the equity markets and dovish US Federal Reserve policy statement. Emerging markets have heaved a sigh of relief, as Fed language indicated that it is concerned that recent economic and financial disorder across the globe can impact US economy and also lead to subdued inflationary levels. As a result, Fed will not haste in hiking interest rates. There is a growing possibility of a strong pause before the first rate hike.

On domestic macroeconomic cues, India’s current account deficit during the first quarter of this fiscal year narrowed to 1.2% of GDP, thanks to contraction in trade deficit and higher earnings from services exports. Meanwhile, there is a strong perception that Reserve Bank of India will trim the interest rates by 25‐50bps at the monetary policy review meeting at the end of this month. Dovish US Fed policy statement and moderating Indian inflationary scenario will compel RBI to act on the interest rates.

The currency touched a high and low of 65.89 and 65.05 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 65.92 and for Euro stood at 75.12 on September 18, 2015. While, the RBI’s reference rate for the Yen stood at 55.01, the reference rate for the Great Britain Pound (GBP) stood at 102.7515.

Asian Markets Fall on Fears of Global Slowdown

Shares in Hong Kong sank 1.40 per cent in the opening exchanges on Monday after the Federal Reserve's decision to hold off an interest rate hike last week fanned fresh fears about the global economy.

The benchmark Hang Seng Index in Hong Kong fell 306.40 points to 21,614.43 in the first few minutes.

And in Shanghai the benchmark composite index fell 0.83 per cent, or 25.83 points, to 3,072.09 on persistent worries about the mainland economy as well as a crackdown by regulators on "illegal market activities".

The Shenzhen Composite Index, which tracks stocks on China's second exchange, lost 1.26 per cent, or 21.16 points, to 1,657.94.

Oil Prices Edge Up as US Drilling Declines

Singapore: Oil prices edged up in early trading in Asia on Monday as U.S. drilling slowed and analysts estimated that $1.5 trillion worth of planned American production was uneconomical at prices of $50 per barrel or lower.

Crude oil prices have plunged almost 60 per cent since June 2014, when soaring global production started to clash with slowing demand. This includes losses of more than a quarter since June this year as a sharp slowdown in China has sparked concerns over the health of the world economy.

Analysts said the low prices were beginning to impact production as drillers slow down new projects, especially in cost-sensitive North America where drillers react fast to changing prices.

U.S. energy firms cut oil rigs for a third week in a row last week, a sign that the latest crude market weakness was causing drillers to put on hold production plans, triggering a slight increase in prices on Monday.

U.S. West Texas Intermediate (WTI) crude futures were trading at $44.84 per barrel at 0108 GMT, up 16 cents from their last settlement. Globally traded Brent futures were at $47.60 per barrel, up 13 cents.

"The current rig count is pointing to U.S. production declining sequentially between 2Q15 and 4Q15 by 255,000 barrels per day at the observed path of the U.S. horizontal and vertical rig count across the Permian, Eagle Ford, Bakken and Niobrara shale plays," Goldman Sachs said.

"The implied year-on-year growth by 4Q15 of 120,000 barrels per day is lower than the prior week's estimate of 125,000 barrels per day," it added.

Analysts said low prices would have a bigger impact in the longer term as producers struggle to cut enough costs.

"Operators are seeking an average cost reduction of 20-30 per cent on projects, supply chain savings through squeezing the service sector will only achieve around 10-15 per cent on average," energy consultancy Wood Mackenzie said.

"$1.5 trillion of uncommitted spend on new conventional projects and North American unconventional oil is uneconomic at $50 a barrel," it added.

SKS Micro, Bajaj Finance, Voltas To be Under Pressure

The Nifty ended 83 points higher at 7,982 on Friday, extending its winning streak to a second straight week. Derivative data suggests that the Nifty's winning run is likely to continue this week too.

September Nifty futures added 11.9 lakh shares to open interest, while the premium on Nifty future increased to 0.65 points from a negative 2.85 points on Friday, suggesting fresh addition of bullish bets.

Option data also suggests the continuation of bullish trend, though the Nifty is likely to be range bound between 7,800 and 8,200.

Maximum open interest of 48.9 lakh shares was concentrated at 7,800 strike put, which suggests 7,800 will act as a near term support in case of any correction in the Nifty. Similarly 8,200 strike calls had the maximum open interest of 36.5 lakh shares, suggesting upside in Nifty will be capped at 8,200.

Overall, Nifty calls shed 47.6 lakh shares in open interest, while open interest in puts shed 7 lakh shares, pushing the put call ratio to 1 from 0.95 earlier. PCR is the ratio of open interest of puts and calls. A PCR value of more than 1 indicates bullish outlook for the market.

The India VIX or the volatility index fell 16.84 per cent to end at 18.29 on Friday as traders anticipate lower volatility in the near future.

Among individual stocks, bullish bets increased in Amara Raja Batteries, Adani Ports and Indiabulls Real Estate. However stocks like SKS Microfinance, Bajaj Finance and Voltas saw addition of short positions

BSE Sensex Set to Open Lower Amid Weak Asian Markets

BSE Sensex and Nifty are likely to open lower, tracking weak Asian markets. The SGX CNX Nifty was down 0.77 per cent to 7,907, indicating a weak start for Indian markets.

Here are top 10 developments:

1) Asian shares followed Wall Street lower on Monday after the Federal Reserve's decision to keep interest rates at record lows raised fresh concerns about growth globally, particularly in China.

2) Japan's Nikkei plunged nearly 2 per cent, Hong Kong's Hang Seng fell over 1 per cent while China's Shanghai Composite was up nearly 0.25 per cent.

3) Traders will be closely eyeing foreign funds, which bought Indian equities (net) of Rs 643 crore on Friday. Analysts say the sustainability of this fund flow needs to be watched as foreign funds have earlier sold close to Rs 6,000 crore of Indian equities so far this month.

4) FIIs had sold a record Rs 16,877 crore (net) worth of domestic stocks in August, leading to the recent selloff in Indian markets.

5) The rupee would also be closely tracked by the traders. Following the Fed's decision to hold rates, the rupee had closed at a nearly 1-month high of 65.67/dollar on Friday, posting its biggest gain in two years.

6) Despite the sharp pullback, analysts don't see significant near-term upside to the rupee.

7) The Fed has not ruled out a rate later this year and the concerns about emerging countries could keep the rupee gains capped, they say.

8) Indian markets had rallied over 1 per cent on Friday with traders attributing the solid gains to hopes of a repo rate cut on September 29, when the Reserve Bank meets to review its monetary policy.

9) Analysts say that a 25-basis point rate cut is already factored in; the RBI could surprise with a 50-basis point cut, they say.

10) But many market analysts are cautious about their near-term outlook. The upcoming earnings season, Bihar assembly elections and action on reforms front will be closely tracked for further cues, traders said.