Lift in spirits! United Breweries up 2%

Heineken International BV increased its stake in the company, buying shares worth Rs.39.48 crore through an open market transaction on Thursday.

United Breweries Ltd stock was up 2% at Rs. 976. Report says that Heineken International BV, the maker of Heineken beer, increased its stake in the company, buying shares worth Rs.39.48 crore through an open market transaction on Thursday, according to reports.

The scrip opened at Rs. 979 and has touched a high and low of Rs. 997 and Rs. 973 respectively. So far 102582(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 25346.71 crore.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 1225 on 17-Apr-2015 and a 52 week low of Rs. 732.05 on 17-Dec-2014. Last one week high and low of the scrip stood at Rs. 999 and Rs. 927.2 respectively.

The promoters holding in the company stood at 74.68 % while Institutions and Non-Institutions held 19.94 % and 5.39 % respectively.

The stock is currently trading below its 200 DMA.

US Fed hike looming; markets and investors jittery

Most market watchers consider rupee to be overvalued and blame it for hurting India's export growth. They are of the opinion that an orderly depreciation in rupee would help stem the volatility to an extent.

The sharp fall in rupee on Thursday and the days before is an ominous sign ahead of the impending rate hike by the US Federal Reserve. The domestic currency fell by 29 paise at 66.61 in Thursday's session due to sharp appreciation in the US dollar in overseas markets. The domestic currency has slipped to its lowest level since 16th September on Thursday, trading at 66.57 vs. the dollar. It fell by about 3.5 percent against the US dollar this year, and by 21 percent since May 2013.

A strong domestic stock market, where the benchmark Sensex gained about 200 points, offset the losses in rupee to an extent. However, the demand for US currency from importers and banks was too high, which eventually weighed on the domestic currency.

The rupee has been under tremendous pressure over the past two months because of a strengthening dollar and strong outflow of overseas portfolio investor money from domestic equities, leading to a spurt in dollar demand. The RBI has intervened from time to time to stem the sharp fall in rupee and reduce the overall volatility.

The US dollar index, which measures the dollar strength against a basket of eight key currencies belonging to its trade partners, has surged about 5 percent in the past month, as investors became ever more certain of a rate hike in December. The dollar index was trading above the 99 mark in the last five sessions and hit a eight-month high of 100.21.

The central bank's attempts to arrest the fall in rupee's value due to domestic political uncertainties and a strengthening US dollar drained $1.90 billion from India's Forex reserves in the first week of November alone. A steady rise in the value of the greenback and heightened fears of a US Fed rate hike have made rupee more volatile.

Most market watchers consider rupee to be overvalued and blame it for hurting India's export growth. They are of the opinion that an orderly depreciation in rupee would help stem the volatility to an extent. Market watchers are convinced that as long as the fall in rupee remains in line with the weaknesses that have surfaced in other emerging market currencies, the scenario is manageable.

Notwithstanding the above, the outlook for rupee is strong because the fundamentals of India's economy remain strong. The Government has managed to keep the current account deficit and fiscal deficit in check and the broad view on India remains positive. Despite a surge in outflow from domestic equities, there has been a decent inflow into local debt markets. This is giving some confidence to currency market traders and investors, many of which are concerned about an immediate or sharp depreciation in rupee.

Larsen & Toubro rally 1.9% after securing order

The company announced that the Power Transmission & Distribution Business of L&T Construction has bagged an orders worth Rs. 1,038 crore in the international and domestic markets in November 2015.

Shares of Larsen & Toubro was trading higher 1.9% to Rs. 1,360 on BSE. On Thursday, the company announced that the Power Transmission & Distribution Business of L&T Construction has bagged an orders worth Rs. 1,038 crore in the international and domestic markets in November 2015. 

The scrip opened at Rs. 1339.95 and has touched a high and low of Rs. 1362 and Rs. 1336.8 respectively. So far 6,73,156 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 124224.05 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 1892.95 on 04-Mar-2015 and a 52 week low of Rs. 1325.55 on 16-Nov-2015. Last one week high and low of the scrip stood at Rs. 1383 and Rs. 1331.1 respectively.

The promoters holding in the company stood at 0 % while Institutions and Non-Institutions held 55.28 % and 42.36 % respectively.

The stock is currently trading above its 200 DMA.

Godrej Properties surges 2%; launches mixed use flagship project in Mumbai

The company said that with an area of 34 acres, this is one of the largest real estate projects in Mumbai and is the first step towards the greater development opportunity that will unfold in Vikhroli.

Godrej Properties Ltd stock was up by 2% at Rs.330. 

The company announced the launch of its mixed use flagship project, The Trees, in Mumbai.The project comprises of a 5 star luxury hotel, cultural buildings, luxury residential, and a high street retail park.

The first phase of residences in the project contains a total of 374 apartments with a saleable area of approximately 46,000 sq. mt. (500,000 sq. ft.).  Customers can choose from 1BHK, 2BHK, 2.5BHK, 3BHK, and 3.5 BHK apartments with carpet areas ranging from 45 sq. mt. to 124 sq. mt. (480 sq. ft. to 1,334 sq. ft.) and Penthouses with carpet areas ranging from 190 sq. mt. to 229 sq. mt. (2,043 sq. ft. to 2,465 sq. ft.).

The scrip opened at Rs. 326.2 and has touched a high and low of Rs. 330.5 and Rs. 323.9 respectively. So far 44471(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 6473.21 crore.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 374.5 on 20-Oct-2015 and a 52 week low of Rs. 231.55 on 30-Apr-2015. Last one week high and low of the scrip stood at Rs. 330 and Rs. 314.1 respectively.

The promoters holding in the company stood at 74.86 % while Institutions and Non-Institutions held 10.01 % and 15.13 % respectively.

The stock is currently trading below its 50 DMA.

Fortis Healthcare arm acquires stake in Religare Health Trust; up 2%

The company said that one of its subsidiaries has entered into an agreement with RGAM Investment Advisors and other stakeholders to acquire stake in Religare Health Trust Trustee Manager Pte Ltd for USD 14.9 million (about Rs. 100 crore).

Fortis Healthcare stock was up by 2% to Rs. 164. The company said that one of its subsidiaries has entered into an agreement with RGAM Investment Advisors and other stakeholders to acquire stake in Religare Health Trust Trustee Manager Pte Ltd for USD 14.9 million (about Rs. 100 crore).

Fortis Healthcare Ltd is currently trading at Rs. 164, up by Rs. 3.15 or 1.96% from its previous closing of Rs. 160.85 on the BSE.

The scrip opened at Rs. 162 and has touched a high and low of Rs. 164 and Rs. 161.7 respectively. So far 179620(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 7449.19 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 199.2 on 05-Aug-2015 and a 52 week low of Rs. 100.5 on 16-Dec-2014. Last one week high and low of the scrip stood at Rs. 164.5 and Rs. 158.35 respectively.

The promoters holding in the company stood at 71.32 % while Institutions and Non-Institutions held 11.05 % and 17.63 % respectively.

The stock is currently trading above its 200 DMA.

Sanjiv Puri to be ITC's new FMCG director and other top FMCG news of the day

Round up of the major headlines that dominated the FMCG sector, nationally and internationally.

Consumer goods maker Unileve said it would switch to using only renewable energy by 2030 and would stop using energy from coal by 2020, as businesses jostle to highlight their green credentials ahead of a global climate summit.

Top officials from consumer goods companies have raised a red flag on rural consumption for the next two-three quarters after a second consecutive year of a deficit rainfall and lack of stimulus stressed their incomes and adversely affected sales across product categories. Sales growth of household items, ranging from toothpastes and detergents to biscuits and beverages slowed to about 5-6 per cent from about 11-12 per cent last year, said two CEOs of companies with large rural footprints.

After a research of about 10 years, ready-to-eat pioneer P Sadananda Maiya has come up with two new types of masala cubes which dissolve into hot water to produce the aromatic South Indian soup, rasam.

In a top-level change, diversified group ITC has elevated Sanjiv Puri as Director of its FMCG business. Puri would take charge from P Dhobale, who is a director on the board of ITC and has responsibility for the group's FMCG businesses. 

IDBI Bank to go on strike and other top Banking news of the day

Round up of the major headlines that dominated the Banking sector, nationally and internationally.

Employees of IDBI Bank have decided to go on a nationwide strike on Friday to oppose the government's move to dilute stake in the state-run bank. In Madhya Pradesh, there are 93 branches of IDBI and 700 officers and employees will take part in the strike. 

A foreign bank can deploy a maximum of four expatriates for each branch opened in India and not more than six expatriates for their Head Office functions, the Reserve Bank (RBI) said today. 

Swiss justice officials have issued their first order to send bank information to US prosecutors who in May charged 14 soccer officials and sports-rights marketers with racketeering, money laundering and bribery. 

Rating company Fitch has said that capital-raising will be the key for Indian banks as lenders look to revive credit growth in support of a recovering GDP outlook. In a report issued on Thursday Fitch said that there will be challenges for state-owned banks in particular, given weak core capitalisation and expectations of slow earnings recovery due to high credit costs. 

Affirming its credit ratings for Indian Overseas Bank (IOB), Standard & Poor's (S&P) on Thursday said the public sector lender, whose stressed assets are about 20 per cent of its loan book, will continue to witness slippages from the restructured loan book. The chances of rating upgrade for the Chennai-based bank were remote in the next 12 months. 

State-run Union Bank of India today tied up with Maharashtra for over-the-counter (OTC) collection of taxes and receipts. 

Indian consumers seem to be becoming more proactive in demanding their financial rights and seeking actions against banks which failed to keep promises.

Vedanta's Zambia unit to stop copper production, cut 2,500 jobs

Keeping the operation going would cost the company as much as US$40 million next year and Konkola is placing it under care and maintenance to protect the financial viability of its entire business, Vedanta said.

Vedanta Resources Plc said on Thursday that it’s Zambian unit, Konkola Copper Mines, will stop production at its loss-making Nchanga underground mine and cut 2,500 contractor jobs.

Keeping the operation going would cost the company as much as US$40 million next year and Konkola is placing it under care and maintenance to protect the financial viability of its entire business, Vedanta said.

While Konkola will redeploy direct employees at the mine to other company operations, it will end contracts with companies providing non-permanent staff that will affect 1,675 people immediately and a further 825 over the next three months, the Vedanta unit said in a statement.

Vedanta’s Chairman Anil Agarwal had said on 18th November that the slump in metal prices will force the company to cut costs by as much as 25%.

Zambia is Africa’s biggest copper producer after the Democratic Republic of Congo, and copper accounts for more than 75% of foreign exchange inflows.

SKS Microfinance cuts interest rate to 19.75%

The company becomes the first micro finance institution to charge a sub-20% interest rate on its core Income Generating Loans which are unsecured micro loans.

SKS Microfinance Limited today announced a 1% reduction in the interest rate charged to borrowers from 20.75% to 19.75% with effect from December 7, 2015, for all future disbursals. With this, the Company becomes the first micro finance institution to charge a sub-20% interest rate on its core Income Generating Loans (IGL) which are unsecured micro loans. Interest rate of 19.75% is the lowest rate charged by any private sector MFI in the world.

This is the fourth interest rate reduction, aggregating 4.8%, announced by the Company since October 2014. The reductions are consistent with the Company’s policy of passing on the cost advantages accruing from reduction in the cost of borrowing and economies of scale to its borrowers.

SKS Microfinance Limited could reduce its marginal cost of borrowing to 11.3% in Q2-FY16 from 13.6% in FY14 on account of downward adjustments in risk premium. Marginal cost of borrowing for H2-FY16 is expected to be lower than 11.3% given the Company has accessed refinance from MUDRA at 10% and issued commercial papers at 9.5% per annum in October and November 2015.

The Company’s sustained turnaround, improved profitability in FY15, Q1-FY16 and Q2-FY16, capital raise in May 2014, rating upgrade as also issuance of Commercial Papers and NonConvertible Debentures are the factors that drove the reduction in its cost of borrowing.

Creditor confidence in SKS Microfinance Limited has also been boosted by the Company’s spotless repayment track record. During the most difficult Andhra Pradesh microfinance situation, the Company did not join Corporate Debt Restructuring (CDR) and met all its financial obligations -- amounting to Rs. 5,800 crore -- to the banking system without any hair-cut or rescheduling.

The Company has a short-term credit rating of ‘A1+’ and a long-term rating of ‘A+’. In Q2-FY16, SKS Microfinance Limited’s gross loan portfolio has surpassed the past peak of Rs. 5,434 crore (in Q2-FY11), thanks to the Company’s consistent annual growth of around 50%. Also, the Company registered a 5.3% quarter-on-quarter drop in cost to income to 47% in Q2-FY16 from 52.3% in Q1-FY16.

As of September 30, 2015, SKS Microfinance Limited had a net worth of Rs. 1,203 crore and a capital adequacy of 24.6%. Cash and cash equivalents stood at Rs. 834 crore.

Ashok Leyland, Dr Reddy’s Lab, Reliance Infra among 16 Stocks in focus today

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

Dr Reddy’s Laboratories Ltd: The pharma company said the USFDA has extended the time-frame for replying to the warning letter issued to the company by about two weeks to December 7.

Ashok Leyland Ltd: The company has announced that it has bagged contract for 3600 vehicles worth $200Mn from Cote D'Ivoire. This contract is being funded by EXIM Bank of India.

Man Industries (India) Ltd: The company has announced that in the matter of proposed scheme of arrangement between Man Industries (India) Limited and Man Infraprojects Limited, the Company has filed an application in Hon’ble Bombay High Court for a modification in the scheme, by proposing to incorporate clause of swapping of shares between two promoter groups., post implementation of scheme.

NMDC Ltd: NMDC has cut iron ore prices by 12.5% with immediate effect on a sharp decline in its demand from steel mills.

Fortis Healthcare: Fortis Healthcare said that one of its subsidiaries has entered into an agreement with RGAM Investment Advisors and other stakeholders to acquire stake in Religare Health Trust Trustee Manager Pte Ltd for USD 14.9 million (about Rs. 100 crore).

RIL: UK’s Hardy Oil & Gas plc said on Thursday that it was in talks to acquire Reliance Industries’ entire 90 per cent stake in a gas discovery block off the Gujarat coast.

ACC: ACC plans to open multiple cement brick-making units in partnership with dealers and social organisations, Head of Business Development Danish Rashid has been quoted as saying.

Reliance Infra: Reliance Infrastructure Ltd., together with its wholly owned subsidiary, Reliance Defence Systems Pvt Ltd., has already announced a transaction for the acquisition of substantial shareholding and change of management control of Pipavav Defence & Offshore Engineering.

Colgate-Palmolive India:Colgate-Palmolive India to consider second interim dividend.

Patel Integrated Logistics: Patel Integrated Logistics to mull issuing shares on preferential basis.

M&M: Designed with automatic transmission with a starting price of Rs. 15.36 lakh (ex-showroom Navi Mumbai), Mahindra & Mahindra launched its premium sports utility vehicle XUV500 Automatic. With this new launch, the urtility vehicle major has gone the distance and pushed the boundaries, says M&M President and Chief Executive (Automotive) Pravin Shah. 

Welspun Corp Limited: Welspun Corp has announced that it has won an order for supply of 216k MT  line pipes for an onshore pipeline project in Americas.

GAIL (India) Ltd: GAIL has announced the launch of Bhuvan- GAIL Portal Proj of Satellite Monitoring of Pipeline RoU.

Larsen & Toubro: L&T said power transmission and distribution business of L&T Construction has bagged orders worth Rs. 1,038 crore in domestic and international markets so far this month.

IDBI Bank Ltd: IDBI Bank has raised $350 million (about Rs.2,310 crore) from green bonds to fund clean energy projects. The issue was made under the $5 billion medium term note (MTN) programme listed on Singapore Stock Exchange, IDBI Bank said in a statement.

Godrej Properties: Godrej Properties said that with an area of 34 acres, this is one of the largest real estate projects in Mumbai and is the first step towards the greater development opportunity that will unfold in Vikhroli.

Sensex, Nifty to open on a flat note

Asian shares are mixed with Japan’s Nikkei down half a percent while China's Shanghai Composite is down 0.7%. Hong Kong's Hang Seng has lost half a percent while South Korea's Kospi is marginally down. Taiwan's TWSE has managed to buck the trend and is trading slightly higher.

The government may well buy into the argument of the Congress party and accept a revenue neutral rate of 18% for GST even as the industry and government are keen to push a rate between 20- 22%. To what extent the government manages to convince its principle Opposition leaders remains to be seen in the coming days. Meanwhile, the November series ​saw a disappointing end ​as Nifty down 2.84% on an expiry to expiry basis. Banks showed interest but Pharma, IT and capital goods were on the sellers list. Out of total 162 stocks available for trading in the derivative segment​,​ 93 stocks end​ed​ November series with a price contraction.

The outlook is a flat to weak start as December series gets underway. For the near term, support for Nifty is seen emerging at 7720 levels and resistance close to 8055 (spot basis). Lower rolls in share terms for Nifty coupled with VIX trading at lower levels indicates focus is likely to shift on individual stocks. The rupee movement will also be closely eyed.  

Colgate-Palmolive could be in action as the company will consider a second interim dividend.

Patel Integrated Logistics is likely to consider issuing shares on preferential basis.

Asian shares are mixed with Japan’s Nikkei down half a percent while China's Shanghai Composite is down 0.7%.  Hong Kong's Hang Seng has lost half a percent while South Korea's Kospi is marginally down. Taiwan's TWSE has managed to buck the trend and is trading slightly higher.

On the weather front, the Met dept has forecast four days of heavy to very rains for Tamil Nadu, Puducherry and coastal Andhra Pradesh from today.

GST can be a “Brahmastra” for the Indian economy against a very difficult global economic scenario, affected by demand slowdown, uncertain geo-political situation after the Paris terror attacks, and an unprecedented crash in vital commodities, says Sunil Kanoria, new ASSOCHAM President.

Reliance Infrastructure Ltd., together with its wholly owned subsidiary, Reliance Defence Systems Pvt Ltd., has already announced a transaction for the acquisition of substantial shareholding and change of management control of Pipavav Defence & Offshore Engineering Co. Ltd. (PDOC).The open offer will open on 2nd December, 2015 and will close on 15th December, 2015. 

Indian banks are stable, but there will be challenges ahead for state-owned banks, Fitch reportedly said.

Ola, India’s leading mobile app for personal transportation announced the appointment of Rajiv Bansal as its Chief Financial Officer. Rajiv brings close to 21 years of experience in finance with over 16 years at Infosys, where he was the CFO and recently transitioned to being an Advisor to the CEO.