Top mutual fund news of the day- September 22, 2015

ICICI Prudential Mutual Fund has launched a new fund named as ICICI Prudential Fixed Maturity Plan - Series 77 - 1123 Days Plan V, a close ended debt scheme.

Reliance Mutual Fund has launched a new fund named as Reliance Fixed Horizon Fund - XXIX - Series 7, a close ended income scheme with the duration of 1117 days from the date of allotment.

ICICI Prudential Mutual Fund has launched a new fund named as ICICI Prudential Fixed Maturity Plan - Series 77 - 1123 Days Plan V, a close ended debt scheme.

Motilal Oswal Mutual Fund has announced September 25 as the date for the declaration of dividend under quarterly dividend option of Motilal Oswal Most Ultra Short Term Bond.

Deutsche MF has given September 24 as the date for declaration of dividend under the following schemes. The amount of dividend (Rs per unit) on the face value of Rs. 10 per unit.

Axis MF has approved introduction of dividend sweep option for Axis Enhanced Arbitrage Fund, which will take effect from September 22.

BNP Paribas Mutual Fund has announced September 24 as the record date for declaration of dividend on the face value of Rs. 10 per unit under several of its schemes.

HDFC Mutual Fund opened its first branch in this summer capital of the state. A release issued here said the branch, located in Aksa Mall at Airport Road here, was inaugurated by Seniior Vice President and State Head (J&K) Zubair Iqbal and Zonal Head, HDFC Mutual Fund Gunit Singh.

Kotak Mahindra Mutual Fund has launched the Kotak India Growth Fund-Series II, a close ended growth scheme. The NFO opens for subscription on September 22, 2015 and closes on October 06, 2015.

Bombay HC approves TCS, CMC amalgamation

TCS has fixed October 01, 2015 as the Record Date to determine the names of the public shareholders of CMC (i.e. shareholders other than TCS) who would be entitled to receive the equity shares of TCS in lieu of equity shares held in CMC.

Tata Consultancy Services Ltd has announced that the Hon’ble High Court of judicature at Bombay has sanctioned the Scheme of Amalgamation between CMC Limited (CMC or Transferor Company) and Tata Consultancy Services Limited (TCS or Transferee Company) on August 14, 2015 with respect to petition filed by TCS.

Further, the Hon'ble High Court of judicature at Hyderabad for the states of Telangana and Andhra Pradesh had sanctioned the Scheme on July 20, 2015 with respect to petition filed by CMC.

Pursuant to Clause 3.1.9 of the Scheme, TCS has fixed October 01, 2015 as the Record Date to determine the names of the public shareholders of CMC (i.e. shareholders other than TCS) who would be entitled to receive the equity shares of TCS in lieu of equity shares held in CMC.

Pursuant to clause 11.2 of the Scheme, 79 (seventy nine) equity shares of Rs. 1 each of TCS will be issued and allotted as fully paid up equity shares for every 100 (one hundred) equity shares of Rs. 10 each held by the public shareholders of CMC, whose names appear in the Register of Members of CMC and whose names appear as the beneficial owners of the equity shares of CMC in the records of the depositories (or to such of their respective heirs, executors, administrators or other legal representatives or other successors in the title as may be recognised by the Board of Directors of TCS) on the Record Date.

Business News :

Business News :

• Infy Bags Rs 1,320cr Contract To Build GST Network
• India’s Ashok Leyland Plans To List Financing Arm
• Oil Prices Up 2 Per Cent After US Drilling Falls
• Enhanced Southwest Monsoon To Bring Good Rains: IMD
• Adani Eyes 20% Growth In Rs 20K Crore Agro Biz
• Declare Foreign Asset By September 30 Or Face Consequences: Finance Ministry
• Bain Capital Acquires 10% Stake In L&T Fin For Rs 1370 Cr
• LIC Big Market Player, Not Only To Bailout Divestment: FM
• Call Drop Issue: Bharti Airtel Moves All Prepaid Users To Per-Second Plan
• Govt Considers FDI Cap Hike In DTH, Cable Networks; Dish TV Up 4.5%
• Godrej & Boyce Aims At Rs 10,000 Cr Turnover This Year
• Corporate Tax Exemptions Phase-Out May End MAT
• Ricoh Looking At Digital India Projects To Drive Revenue Growth
• Air India Inaugurates Airbus A-320 Training For External Pilots
• After 10 Years, Makemytrip Turns To Hotels, Packages To Drive Growth
• Defamation Suit Against Website: HC Stays Rs. 50-Lakh Penalty On NSE
• Google Aims To Make India A Hub For App Development

• Amtek Auto Fails To Meet Bond Redemption Deadline
• Aditya Birla Minerals To Sell Australia Copper Mine To Lighthouse Minerals
• Power Grid Gets Shareholders Nod To Raise Rs14,000 Crore In FY17
• OVL Chasing $712 Million In Dues From Foreign Govts
• GE Says No To Nuclear-Power Plants In India, Cites Liability Risks
• Give Govt Access To Whatsapp Messages, Emails: Draft National Encryption Policy
• Black Money: Declare Foreign Assets By Sep 30 Or Face Consequences, Says Finmin
• Sensex Ends Flat To Settle At 26,193; Nifty Closes At 7,977
• RBI May Cut Policy Rate By 25 Bps On Sep 29: Report
• US-Based Healthcare Tech Company To Invest `750 Cr
• Domestic Mfs Have Got $18b Of Inflows In 1 Year: Sikka
• Indian IT Cos Among World’s Worst Paymasters

Chinese banks face growing risks on bad loans, realty mess: S&P

The US-based ratings firm revised its assessment of the economic risks facing China's banking industry to 'negative' from 'stable'.

Standard & Poor's Ratings Services said on Monday that China's banks face growing risk linked to rising bad loans and problems in its real-estate sector.

The US-based ratings firm revised its assessment of the economic risks facing China's banking industry to 'negative' from 'stable'.

"We view economic risks for China's banking industry as high," S&P said in a report.

"Big lending by banks and the country's informal shadow-banking system between 2009 and 2013 "has led to high risks of economic imbalances and elevated credit risks in the economy," it said.

Although Chinese banks have a strong customer deposit base, and credit growth in the country has slowed, state ownership of major Chinese banks leads to market distortions and the system lacks transparency, S&P said.

Qiang Liao, an S&P senior director and author of the report, said that the ratings agency sees a one-in-three chance that private-sector credit could exceed 150% of GDP by the end of 2016, up from ~141% now.

Volkswagen shares slide on US emission tests imbroglio

The US Environmental Protection Agency (EPA) said on Friday that Volkswagen used software for diesel VW and Audi branded cars that deceived regulators measuring toxic emissions and could face penalties of up to US$18bn.

Volkswagen shares sank on Monday after the German carmaker admitted that it had rigged emissions tests of diesel-powered vehicles in the United States.

German officials urged Volkswagen to fully clear up the matter and said that they would investigate whether the company had falsified emissions data in Europe also.

The US Environmental Protection Agency (EPA) said on Friday that Volkswagen used software for diesel VW and Audi branded cars that deceived regulators measuring toxic emissions and could face penalties of up to US$18bn.

The US Department of Justice has reportedly started a criminal probe into the alleged manipulation of the emissions tests by the German auto giant.

VW shares fell 18.6% to close at 132.20 euros. Shares in Porsche SE, a holding company which controls 51% of VW’s common stock, also plunged by ~20%.

The Rajan Effect: Then and Now

All eyes on the upcoming monetary policy on the 29 September as the market awaits to see the Reserve Bank of India’s next course of action.

While a series of events have taken place globally, across the economy and the banking sector, in the past two years, since the time Raghuram Rajan took over as the RBI Governor, he has judiciously dealt with them. Certainly, there have been some hits and some misses, on the rate front, currency front, and on the asset quality management for banks.
 
He came, he saw…took action
Back in 2013, when Rajan took over as the Governor of RBI, his agenda was clear. He was all set to bring about stability into financial markets, look at financial inclusion​ and support the Indian rupee ​amongst others​. The Indian rupee had heavily depreciated against the US dollar, and Rajan announced ​a ​series of fire-fighting measures to combat this situation. He announced swap windows for foreign currency non-resident (bank) deposits and overseas borrowings by banks, resulting in capital inflows of over $34 billion. Today, the rupee has benefited, thanks to strong inflows in the equity and debt markets and low oil prices.
 
Not just that, in order to tackle the problem of growing bad loans in the banking sector, the RBI came up with ways to accelerate the working of Debt Recovery Tribunals and Asset Reconstruction Companies and take steps accordingly. “Finance is not just about lending, it is about recovering loans also. We have to improve the efficiency of the recovery system, especially at a time of economic uncertainty like the present. Most immediately, we need to accelerate the working of Debt Recovery Tribunals and Asset Reconstruction Companies,” the Governor had then said. Some measures included coming up with the joint lenders’ forum, set up to revitalise distressed assets​ and giving more time to banks to restructure their distressed loans. Despite best efforts, Indian banks are still facing mounting pressures on their non-performing assets.
 
Interest Rates and Inflation
As soon as he took over, Rajan went on with hiking the policy rate, in his first policy review, to combat inflation. Wholesale price index (WPI) inflation had touched 6.1 per cent in August 2013 and consumer price index (CPI) stood at 9.52 per cent then. He then said, “What is equally worrisome is that inflation at the retail level, measured by the CPI, has been high for a number of years, entrenching inflation expectations at elevated levels and eroding consumer and business confidence.”
 
While the central bank stayed hawkish for the whole of last year, it decided to slash interest rates thrice this year. Rajan also urged banks to slash lending rates following the rate cuts. Leading banks such as State Bank of India, ICICI Bank, HDFC Bank promptly reacted by doing the needful. Currently, the repo rate stands at 7.25% and the reverse repo at 6.25%. Today, CPI or the retail inflation has declined to 3.66 % in August, last month. Rate hikes, coupled with a slow growth in the economy and fall in global commodity prices has paved for a fall in the inflation numbers.

Rajan had also noted, exactly a year ago, in his policy statement that, “The future policy stance will be influenced by the RBI’s projections of inflation relative to the medium term objective of 6 percent by January 2016, while being contingent on incoming data.”
 
Last week, the US Fed Reserve decided not to raise interest rates, which led to a sharp rise in the stock markets and the rupee touching a one-month high at 65.17 to the dollar.
 
Certainly, it is a tough decision on the rate cut front​. Given poor monsoon this year, ​it could lead to a spike in food prices, ​which ​will weigh on the central bank. Most market participants are of the view that there could be a cut of a 25 basis points to give a boost to investment in the country. Inflation is below the central bank’s estimated trajectory, and other factors such as a fall in the global crude oil prices and a slowdown in demand, also call for a rate cut. 
 
​The central bank has not ruled out a possibility of a rate cut, if the economic data suggests a need for a rate cut. Let’s wait n watch!

Bain Capital acquires 10% stake in L&T Finance Holdings: Reports

Report says that this move is part of Bain Capital’s strategy to expand footprint in India.

Bain Capital has acquired about 10% stake in L&T Finance Holdings for Rs.1,305 crore through two transactions, according to reports.

Report says that this move is part of Bain Capital’s strategy to expand footprint in India.

The first transaction involves L&T Finance Holdings allotting equity shares and warrants on a preferential basis to BC Investments VI and BC Asia Growth Investments  respectively worth Rs.708 crore.

This translates into 5.27% stake (1.75% stake for equity and 3.51% stake for warrants) in L&T Finance Holdings on a fully diluted basis, says report.

Top Corporate news of the day - September 22, 2015

Check out the most important news stories which captured the headlines at the corporate level in India and internationally

IT major Infosys has won a Rs14bn contract from GST Network (GST-N) to build the IT system so that the goods and services tax (GST) regime is rolled out on schedule. The company is supposed to lay the IT-backbone to implement the GST regime. Once the backbone is ready, Infosys will operate it for five years. 

Leading NBFC L&T Finance Holdings sold 5.27% promoter stake to leading private equity firm Bain Capital through an issue of preferential shares and warrants for about Rs7bn.

Wind turbine maker Suzlon Group said that its cumulative installations in Maharashtra have surpassed 2,000 MW with over 1,900 windmills during the first half of the year. Suzlon's projects in Maharashtra are spread across eight districts in over 40 sites. 

Engineering major Larsen & Toubro has bagged orders worth Rs18bn across various verticals so far in this month, including an order worth Rs7.4bn from a leading real estate company to construct a commercial complex in Gurgaon. 

SRS Ltd will invest up to Rs9bn in the next two years to expand retail network of its various consumer centric businesses such as hospitality, cinema, jewellery and real estate. It is also foraying into the pharmacy business with the launch of 30 'SRS Pharmacy' stores this year. 

Aditya Birla Minerals Ltd (ABML) will sell its closed Birla Mt Gordon (BMG) copper mine in Queensland, Australia to Lighthouse Minerals Holdings Pty Ltd for around $10.75 million. BMG, located in northwest Queensland, was set up to produce copper concentrate at around 1.4 million tonnes per annum. The operation has been put under care and maintenance since April 2013. 

California-based BioMarin Pharmaceutical has entered into a settlement agreement with Dr Reddy's Laboratories to resolve patent litigation in the US regarding Kuvan, the former's 100mg oral tablets. 

Ahmedabad-based leading denim fabric maker, Nandan Denim Limited (NDL) is set to raise Rs500mn by issuing 2.5 million fully convertible warrants (FCWs) to UK-based foreign institutional investor, Polus Global Fund. As per an official statement by the company, the warrants will be converted into equity shares at Rs 200 per share within 18 months time. 

Top economy news of the day- September 22, 2015

After over a year, domestic natural gas production increased by 3.66% to 2.836 billion cubic meters in August this year. In the same month last year, the production was 2.736 billion cubic meters.

After over a year, domestic natural gas production increased by 3.66% to 2.836 billion cubic meters in August this year. In the same month last year, the production was 2.736 billion cubic meters.

National Bank for Agriculture and Rural Development (NABARD) has sanctioned RIDF assistance of Rs11.3bn for Odisha. The sanctioned amount included Rs10.4bn for two important mega projects for drinking water and lift irrigation in the state. 

Andhra Pradesh is set to house India's first National Investment and Manufacturing Zone (NIMZ) after the state assured the Centre of availability of 10 sq km of land in one place in Prakasham district.

15 Stocks in focus today

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

Ashok Leyland Ltd: The company plans to list its financing arm Hinduja Leyland Finance Ltd. in the second half of next year and could raise up to Rs. 6.5 billion.

Bharti Airtel Limited:, The telecom company will move all its prepaid mobile customers nationally to the more affordable per second bill plan. Rolled out under the new “Pay For What You Use” initiative as part of the company’s “Customer First” commitment, this will help ensure that customers pay only for the time they use the Airtel network.

MMTC Ltd: The company will sell its 10% stake in the commodity bourse ICEX equally among two bidders, who participated in the global tender.

Hindalco Industries Ltd: Aditya Birla Minerals Ltd , a subsidiary of Hindalco, will sell its closed copper mine in Queensland, Australia, to Lighthouse Minerals Holdings Pty for A$15 million (Rs. 70.5 crore) in cash and another A$41.7 million (Rs.196 crore) in rehabilitation bond costs, as per media reports.

Steel Strips Wheels Ltd: The company has tied up with South Korea's Kalink Co to come up with a new alloy wheel manufacturing facility in Gujarat.

State Bank of Mysore Ltd: The bank has cut the minimum lending rate by 10 per cent to 9.90 per cent.

IDFC Ltd: The company today fixed October 5 as record date for share transfer as part of demerger scheme.

Castrol India Ltd: The company has decided to permanently close its Wadala plant in Mumbai where it was not carrying out any production.

Infosys: The company has signed a three-year agreement with TOMS Shoes to become its worldwide partner to maintain and develop its digital platform. The agreement will enable TOMS to streamline the management of its web-based properties and introduce automation technologies to lower overall support and development costs.

Mindtree: The company has announced that it will help Molnlycke Health Care, a world-leading provider of single-use surgical and wound care solutions, to enhance business efficiency using the SAP application suite. This will help Mölnlycke Health Care optimize the time to market of its products.

Tata Motors Ltd: The company plans to launch a new small commercial vehicle (SCV) 'Magic Mantra' in the country next month, thereby expanding product range under its popular public transport vehicle 'Tata Magic'.

NTPC: The company said it is targeting to begin production from Pakri-Barwadih coal block in Jharkhand this year and three more blocks in next two years.

Dr Reddy's Laboratories: California-based BioMarin Pharmaceutical has entered into a settlement agreement with Dr Reddy's Laboratories to resolve patent litigation in the US regarding Kuvan, the former's 100mg oral tablets. 

SRS Ltd: The company will invest up to Rs.9 bn in the next two years to expand retail network of its various consumer centric businesses such as hospitality, cinema, jewellery and real estate. It is also foraying into the pharmacy business with the launch of 30 'SRS Pharmacy' stores this year.

Larsen & Toubro: The company has bagged orders worth Rs18bn across various verticals so far in this month, including an order worth Rs7.4bn from a leading real estate company to construct a commercial complex in Gurgaon. 

Rupee opens higher at 65.63/$

The currency touched a high and low of 65.61 and 65.88 respectively.

Indian Rupee today opened at 65.63 against the dollar, marginally higher in early trade on Tuesday. On the global are positive for now. Asian indices are well in the green. In the US market, the Dow gained 0.77%, S&P 500 added 0.46% while Nasdaq was marginally up. Democratic presidential candidate Hillary Clinton in a tweet stated that she would lay out a plan to prevent price gouging by specialty drug makers. The remarks triggered a selloff of biotechnology and health-care stocks. The currency touched a high and low of 65.68 and 65.76 respectively. The currency touched a high and low of 65.61 and 65.88 respectively.

Meanwhile, there is a strong perception that Reserve Bank of India will trim the interest rates by 25bps at the monetary policy review meeting on September 29th. Dovish US Fed policy statement and moderating Indian inflationary scenario will compel RBI to act on the interest rates.

On Monday, rupee ended at 65.73, weaker by 6 paise from its previous close of 65.67 on Friday. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 65.75 and for Euro stood at 74.37 on September 21, 2015. While, the RBI’s reference rate for the Yen stood at 54.83, the reference rate for the Great Britain Pound (GBP) stood at 102.1672.