Economic growth projection kept unchanged at 7.4% for FY16: RBI

RBI says that the outlook for agriculture is subdued, in view of both rabi and kharif prospects being hit by monsoon vagaries.

RBI Governor Raghuram Rajan says that  Economic growth Projection kept unchanged at 7.4% for FY16.

RBI says that the outlook for agriculture is subdued, in view of both rabi and kharif prospects being hit by monsoon vagaries. While there are areas of robust growth in manufacturing such as capital goods and passenger cars, weak rural and external demand holds back stronger overall growth. Similarly, while prospects for a revival in service sector activity have been boosted by optimism on new business, pockets of lacklustre activity such as construction weigh on the overall outlook. 

The step-up in public capital spending and the easing stance of monetary policy provide the enabling environment for a revival in private investment demand, supported by easing input prices and improving conditions for doing business. The growth projection for 2015-16 has accordingly been kept unchanged at 7.4 per cent with a mild downside bias. 

Global financial markets began Q4 on a calmer note: RBI

Markets were also boosted by the easing of monetary policy in China and indications of further stimulus in the Euro area and Japan

RBI Governor Raghuram Rajan says that Global financial markets began Q4 on a calmer note after the Federal Open Market Committee stayed on hold in September. Stock markets recorded modest gains in October; major currencies recouped some ground against the US dollar and crude oil traded briefly above US $ 50 per barrel for the first time since July. 

Markets were also boosted by the easing of monetary policy in China and indications of further stimulus in the Euro area and Japan. Following the early November release of robust US jobs data which increased the likelihood of US monetary policy starting to normalise in December, the US dollar has appreciated significantly, and US yields have hardened. Bond markets in EMEs have generally been tracking the hardening of US yields. 

Currency markets in EMEs have experienced selling pressures as portfolio investors continue to exit them as an asset class. Unease in investor sentiment is likely to increase ahead of the imminent divergence in advanced economy monetary policy stances.

Vigilant on inflation! RBI does not tinker with rates at fifth bi-monthly monetary policy review

RBI left policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.75% and consequently, the reverse repo rate under the LAF at 5.75% and the marginal standing facility (MSF) rate and the Bank Rate untouched at 7.75%

Much in line with expectation, Reserve Bank of India (RBI) did not tinker with rates at its fifth bi-monthly monetary policy review on Tuesday. Keeping the policy a “non-event”, RBI left policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.75% and consequently, the reverse repo rate under the LAF at 5.75% and the marginal standing facility (MSF) rate and the Bank Rate untouched at 7.75%.

Further throwing an element of caution to further rate cuts, India’s central bank said that it will follow developments on commodity prices, especially food and oil, even while tracking inflationary expectations and external developments and that implementation of the Pay Commission proposals, and its effect on wages and rents, will also be a factor in its future deliberations.

Nestle India stock up 1%; resumes manufacturing of Maggi noodles at HP

The company said that it has resumed manufacturing of Maggi noodles at its factory at Tahliwal in Himachal Pradesh.

Nestle India stock was up by 1% at Rs. 5910 after the company said that it has resumed manufacturing of Maggi noodles at its factory at Tahliwal in Himachal Pradesh. 

The scrip opened at Rs. 5865 and has touched a high and low of Rs. 5910 and Rs. 5863 respectively. So far 7253(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 56624.09 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 7499.95 on 10-Mar-2015 and a 52 week low of Rs. 5499 on 08-Jun-2015. Last one week high and low of the scrip stood at Rs. 6150 and Rs. 5860 respectively.

The promoters holding in the company stood at 62.76 % while Institutions and Non-Institutions held 17.05 % and 20.18 % respectively.

The stock is currently trading above its 200 DMA.

Metal stocks shine; Tata Steel jumps 2.8%

JSW Steel, Hindustan Zinc, SAIL, Hindalco Industries, Coal India and NMDC were up in the range of 1% to 2%

BSE Metal stocks were up over 2% on BSE in early trade today. Shares of Tata Steel and Vedanta has rallied over 2.5% each.  

Tata Steel Ltd is currently trading at Rs. 236.65, up by Rs. 6.6 or 2.87% from its previous closing of Rs. 230.05 on the BSE.
The scrip opened at Rs. 230.5 and has touched a high and low of Rs. 237.6 and Rs. 230.35 respectively. So far 21,95,128 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 22342.81 crore.

JSW Steel, Hindustan Zinc, SAIL, Hindalco Industries, Coal India and NMDC were up in the range of 1% to 2%.

Meanwhile, the BSE Sensex is up 44 points at 26,190. 

Shreyas Shipping up 1.8% after signing MoU

The company has entered into a Memorandum of Understanding for the formation of a Joint Venture Company with Suzue Corporation.

Shreyas Shipping & Logistics has gained 1.8% to Rs. 510 on BSE. The company has entered into a Memorandum of Understanding for the formation of a Joint Venture Company with Suzue Corporation, Japan for exploring business opportunities in the logistics space within India and Japan.

The scrip opened at Rs. 504.5 and has touched a high and low of Rs. 510.5 and Rs. 502 respectively. So far 7,553 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 1099.76 crore.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 839.5 on 05-Aug-2015 and a 52 week low of Rs. 162.25 on 11-Dec-2014. Last one week high and low of the scrip stood at Rs. 527.8 and Rs. 404.2 respectively.

The promoters holding in the company stood at 73.25 % while Institutions and Non-Institutions held 0.65 % and 26.1 % respectively.

The stock is currently trading below its 200 DMA.

MMTC gains 1%; to invest Rs. 6,000 crore

The company reportedly said that it will invest about Rs. 6,000 crore to double the capacity of Neelachal Ispat Nigam in the next four years

MMTC has gained 1% and is at Rs. 45.75 on BSE. The company reportedly said that it will invest about Rs. 6,000 crore to double the capacity of Neelachal Ispat Nigam (NINL) in the next four years.

The scrip opened at Rs. 45.45 and has touched a high and low of Rs. 45.95 and Rs. 45.4 respectively. So far 46,261 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 4540 crore.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 63.25 on 01-Dec-2014 and a 52 week low of Rs. 38 on 25-Aug-2015. Last one week high and low of the scrip stood at Rs. 46.7 and Rs. 44.2 respectively.

The promoters holding in the company stood at 89.93 % while Institutions and Non-Institutions held 6.06 % and 4.01 % respectively.

The stock is currently trading below its 200 DMA.

Airtel, Vodafone may look to buy Videocon spectrum: India Ratings

Bharti Airtel and Vodafone India might buy additional spectrum from Videocon in Bihar, Uttar Pradesh (UP) East and Haryana circles due to growing need for 4G technology based radio waves, rating firm India Ratings said on Monday.

Bharti Airtel and Vodafone India might buy additional spectrum from Videocon in Bihar, Uttar Pradesh (UP) East and Haryana circles due to growing need for 4G technology based radio waves, rating firm India Ratings said on Monday.

Videocon has 5 MHz block of spectrum in the 1,800 MHz band in 4 circles - Bihar, Haryana, Madhya Pradesh and UP (East). 

India Ratings said in its reports that like Idea Cellular, other telecom operators plan to strengthen their spectrum capabilities in order to meet the growth in 4G services and competition from Reliance Jio.

Last week, Videocon had sold UP West and Gujarat circles to Idea Cellular at a hefty premium. 

A senior Videocon official had said that the company was in talks with multiple operators to sell its spectrum in UP (East) and Bihar circles at a valuation of INR 3,500 crore.

The company would also sell spectrum, subscribers and network in Madhya Pradesh and Haryana circles for INR 4,000 crore by early next year.

RBI relaxes external commercial borrowings norms

The Reserve Bank of India, in consultation with the Government of India, has reviewed the extant ECB framework.

Keeping in view the macro-economic developments and the experience gained in administering the External Commercial Borrowing (ECB) regime over the last 10 years, The Reserve Bank of India, in consultation with the Government of India, has reviewed the extant ECB framework. Accordingly, a circular containing the revised ECB framework has been released today. The overarching principles of the revised framework are:

A more liberal approach, with fewer restrictions on end uses, higher all-in-cost ceiling, etc., for long term foreign currency borrowings as the extended term makes repayments more sustainable and minimises roll-over risks for the borrower;

Similarly, a more liberal approach for Indian Rupee (INR) denominated ECBs where the currency risk is borne by the lender;

Expansion of the list of overseas lenders to include long term lenders like Sovereign Wealth Funds, Pension Funds, insurance companies;

Only a small negative list of end-use requirements applicable to long-term ECBs & INR denominated ECBs;

Raising of limit for small value ECBs with Minimum Average Maturity (MAM) of 3 years to USD 50 million from the existing USD 20 million; and

Alignment of the list of infrastructure entities eligible for ECB with the Harmonised List of the Government of India.

The framework for ECB as a means to attract flow of funds from abroad will continue to be a major tool to calibrate the policy towards capital account management in response to evolving macro-economic situation.

The guidelines will be reviewed after one year based on the experience and evolving macro-economic situation.

Track I	:	Medium term foreign currency denominated ECB with MAM of 3/5 years
Track II	:	Long term foreign currency denominated ECB with MAM of 10 years
Track III	:	Indian Rupee denominated ECB with MAM of 3/5 years

The Reserve Bank of India has issued the operational guidelines for the revised framework which will come into force with effect from the date of publication of the relative Regulation framed under FEMA, 1999 in the official gazette.

A transitional period upto March 31, 2016 has been allowed to ECBs contracted till commencement of the revised framework and in respect of special schemes which are to end by March 31, 2016.

It may be recalled that a draft of the proposed ECB framework was placed in the public domain for wider consultation in September 2015.

DLF, IOC, Bharti Airtel among 14 Stocks in focus today

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

MMTC: MMTC reportedly said that it will invest about Rs. 6,000 crore to double the capacity of Neelachal Ispat Nigam (NINL) in the next four years. 

IOC, BPCL, HPCL: IOC has announced that it has reduced Petrol prices by 58p/L and Diesel prices by 25p/L with effect from midnight.

Shreyas Shipping & Logistics Ltd: The company has entered into a Memorandum of Understanding for the formation of a Joint Venture Company with Suzue Corporation, Japan for exploring business opportunities in the logistics space within India and Japan.

DLF: CCI dismisses complaint against DLF group firms regarding the anti-competitive business policy, as per media reports.

Kwality: The company would start distribution of their products i.e. Milk, Curd and Chaach under the brand "Kwality". The three categories of Milk i.e. Full Cream, Toned and Double Toned; would be available in pouches in Delhi NCR from November 30, 2015.

Bharti Airtel: Bharti Airtel announced the launch of a massive network transformation program - “Project Leap”. It aimed at perceptibly improving network quality and delivering the best customer experience, this strategic project will see an investment of Rs. 60,000 crore in the next 3 years.

Natco Pharma: The pharma company has received shareholders' approval for amalgamation of its subsidiary Natco Organics into the company. 

Pidilite Industries: Pidilite Industries has acquired Chemifix trademark and other brands associated with PVAC adhesives business from Sri Lanka-based CIC Holdings Plc.

Cipla Ltd: The pharma company said it is ready to launch low dose 'Efavirenz' used in treatment of HIV infection. 

Subex Ltd: The company has allotted 1,86,27,341 equity shares pursuant to the conversion of US$ 4,320,000 out of the Company’s US$ 39.61 million bonds that are outstanding under the US$ 127,721,000 5.70 per cent secured convertible bonds due 2017 on November 30, 2015. Post the conversion, FCCBs aggregating to US$ 35.29 million are outstanding under the said Bonds. Subject to the listing & trading approval of the NSE and BSE the paid up share capital of the Company has increased from Rs. 351,63,69,810 to Rs. 370,26,43,220.

Rajesh Exports: The company said it has bagged an export order worth Rs 1,122 crore for gold and diamond studded jewellery and medallions from the UAE.

Tata Power Company Ltd: The company has announced that Maithon Power Limited, a 74% Joint Venture of the Company, has issued and allotted senior, non-cumulative, redeemable, listed, rated, secured non-convertible Debentures ("NCDs") for an amount of Rs 500 crore on private placement basis.

Fertilizer subsidy dues to touch Rs. 45,000 crore by end-March

The Centre had allotted Rs. 72,659 crore towards fertiliser subsidy for FY16

Subsidy dues to the fertilizer industry are likely to touch Rs. 45,000 crore by the end of FY16 owing to insufficient allocation in the Union Budget, lobby group Fertiliser Association of India (FAI) said on Monday.

The Centre had allotted Rs. 72,659 crore towards fertiliser subsidy for FY16. 

However, out of this amount, Rs. 7,000 crore was used to repay bank loans for FY15, leaving Rs. 65,969 crore for this year’s payment to the fertilizer industry.

"Expenditure on account of the subsidy does not reflect in the Budget and manufacturers have to bear an interest burden of nearly Rs. 3,500 crore due to the pending dues," FAI Director Satish Chander said on Monday.

“We get only 25% of our payments from the farmer as 75% of the price of urea is the subsidy amount for which we have to chase the Government every year,” Chander said.

“Budget for subsidy on urea was exhausted in August this year and as of now pending dues to the industry is more than Rs. 30,000 crore,” he added.

Nifty jumps above 7,950 level

The BSE Mid-cap Index is trading up 0.47% at 11,041, whereas BSE Small-cap Index is trading up 0.44% at 11,688. Wipro, Vedanta, Coal India, Hindalco, ITC and Dr. Reddy's Lab are among the gainers, whereas M&M, Bharti Airtel, Hero MotoCorp, Reliance Industries and Infosys are losing sheen on BSE

At 9:20 AM, the S&P BSE Sensex is trading at 26,227 up 88 points, while NSE Nifty is trading at 7,963 up 27 points.

The BSE Mid-cap Index is trading up 0.47% at 11,041, whereas BSE Small-cap Index is trading up 0.44% at 11,688.

Wipro, Vedanta, Coal India, Hindalco, ITC and Dr. Reddy's Lab are among the gainers, whereas M&M, Bharti Airtel, Hero MotoCorp, Reliance Industries and Infosys are losing sheen on BSE.

The Indian rupee opened higher by 16 paise at 66.53/$ in early trade on Tuesday. On domestic front, the domestic economic growth numbers would be better than expected and as the fiscal deficit narrowed. In addition, growing probability of US Fed hiking interest rates during December is taking a toll on various emerging market currencies. Market participants are keeping an eye on the developments in the winter session of Indian parliament. Expectations are high that the incumbent regime will be able to garner support from the opposition parties in order to pass the important Goods and Services Tax Bill.

The Modi government may choose to breathe a bit easy as India’s Q2 GDP clocked a growth rate of 7.4% which was more or less in less in-line with street estimates and as per RBI's trajectory of between 7- 7.5% for the full year. To that extent RBI’s monetary policy comes with wide expectations of a status quo. Finance Minister Arun Jaitley reportedly said GDP in the current fiscal will be better than the growth rate recorded in the last financial year and improve further in subsequent years.  India's infrastructure output grew at 3.2% in October yoy unchanged from September but down from 9% a year ago. The Centre’s fiscal deficit rose to Rs4.1tn or 74% of the budget estimate of Rs. 5.5tn by October 31.
 
A lot will hinge on what the RBI governor says later in the day. India's November PMI numbers are scheduled. Also on tap are the auto numbers and stocks already saw hectic activity ahead of the announcement.  The Rupee which has been languishing for a while could see some firmness following the upbeat GDP data and will swing depending on the RBI commentary. OMCs will be in focus after petrol price was cut by 58 paise per litre and diesel by 25 paise
 
Companies being included in the MSCI indices from Tuesday were already on the buyers list on Monday. Those which are getting dropped witnessed selling pressure on expected lines.  Sequent Scientific, Welspun Corp Ricoh, Indo Count Industries, Escorts and HSIL saw gains while Amtek Auto, Shree Renuka, Torrent Pharma, Jai Prakash Power, Castex Technologies bore the selling brunt on being dropped. MSCI said 24 companies have been included in the MSCI India Smallcap index while excluding 12 stocks.
 
Dr. Lal PathLabs Limited proposes to open on December 8, 2015, an Initial Public Offering of up to 11,600,000 equity shares of Face Value of Rs. 10 Each (“Equity Shares”) for cash at a Price Band from Rs. 540 to Rs. 550 per Equity Share (the “Offer”) through an offer for sale of up to 1,261,996 Equity Shares. 
 
Bharti Airtel and Vodafone India might buy additional spectrum from Videocon in Bihar, Uttar Pradesh (UP) East and Haryana circles due to growing need for 4G technology based radio waves, rating firm India Ratings said on Monday.
 
Market regulator SEBI on Monday announced the broad guidelines for the listing of stock exchanges, paving the way for BSE and NSE to go public. SEBI has made it mandatory for stock exchanges to ensure that the minimum public shareholding is at least 51 per cent. Trading members, associates and agents can hold the balance 49 per cent.
 
Keeping in view the macro-economic developments and the experience gained in administering the External Commercial Borrowing (ECB) regime over the last 10 years. The Reserve Bank of India, in consultation with the Government of India, has reviewed the extant ECB framework. Accordingly, a circular containing the revised ECB framework has been released.
 
The combined Index of Eight Core Industries stands at 175.4 in October, 2015, which was 3.2 % higher compared to the index of October, 2014. Its cumulative growth during April to October, 2015-16 was 2.5 %.