JSW Group to commence cement production in West Bengal by Dec 2016

JSW Group is planning to start construction of the proposed 2.4 million tonne cement plant in West Bengal. The plant is located at Salboni, West Bengal. The construction of the plant is expected to start early next year.

JSW Group is reportedly planning to start construction of the proposed 2.4 million tonne cement plant in West Bengal. The plant is located at Salboni, West Bengal. The construction of the plant is expected to start early next year.

The project is being set up by JSW Cement.  Mamata Benerjee, Chief Minister of West Bengal,  and Sajjan Jindal, Chairman and MD of JSW Steel Ltd will attend the inauguration ceremony of the project.

The cement plant would be constructed  on 150 acres of land. The project would come up on the 4000 acres of land acquired by JSW Group for the proposed mega integrated steel cum power project at Salboni, West Bengal. 

JSW Group entered the cement market in 2009. Their plants are located at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh and Dolvi in Maharashtra.

Good Luck Steel gets approval from Rail Ministry India

This is a major boost for company’s structure division and justify ongoing capex of Rs. 30 cr. Railway is one of the key focus sector of Good luck’s future vision, M C Garg said,

In line with Company’s growth strategy, Good Luck has achieved another milestone with the approval of RDSO (Research Design & Standards Organization), Ministry of Railway, India for fabrication and supply of Steel Bridge Griders.

Indian Railway, one of the world’s largest network, is in big ticket expansion mode with planned Dedicated Freight Corridors (DFCs) of approx. 6200 kms and upgrade feeder route to DFCs of approx. 6000kms. Further, Railway plan to convert all railway crossings to Railway Over bridges (ROBs) is offering approx. 3mn. metric ton capacity of fabricated bridge.

M C Garg, Chairman said, “This is a major boost for company’s structure division and justify ongoing capex of Rs. 30 cr. Railway is one of the key focus sector of Good luck’s future vision. This approval is likely to give wings to achieve our target.” The Company is visualizing a huge scope of its products such as CDW tubes, forging, structure fabricated items in the Expansion of Railway Infrastructure. The Company is eying a good amount of share from different railway projects. Good Luck has already got entry in LHB coach parts & HTM, motor shaft in Electric loco engines. 

Goodluck Steel Tubes Ltd is currently trading at Rs. 100, up by Rs. 3.7 or 3.84% from its previous closing of Rs. 96.3 on the BSE.

The scrip opened at Rs. 96.1 and has touched a high and low of Rs. 101 and Rs. 96 respectively. So far 208081(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 211.92 crore.

The BSE group 'B' stock of face value Rs. 2 has touched a 52 week high of Rs. 117.85 on 15-Jul-2015 and a 52 week low of Rs. 64.9 on 24-Dec-2014. Last one week high and low of the scrip stood at Rs. 98.8 and Rs. 92.6 respectively.

The promoters holding in the company stood at 60.46 % while Institutions and Non-Institutions held 0.17 % and 39.37 % respectively.

The stock is currently trading below its 50 DMA.

Sinking to record lows! Brent crude plunges to eleven year low

Brent futures fell almost 2 percent and as low as $36.17 per barrel trading around 0500 GMT, while U.S. West Texas Intermediate (WTI) futures were down 33 cents.

Brent Crude oil has witnessed continued selloff during the last week, and the trend has spilled over in the new week, as the price fell to an eleven-year low. Brent is now trading at $36.4/barrel, a level not seen since July, 2004, and even lower than December 2008, when there was recession in the market.

Production has been on record highs, with US, Russia and Saudi Arabia pumping in huge quantities of crude in the market. As per news reports, supply from Iran is likely to head higher this year by at least half a million barrels per day. Russia, on the back of cheaper Ruble, is producing 10 million barrels per day (bpd). Organization of the Petroleum Exporting Countries (OPEC) output has also boomed to 31.5 million bpd. International Energy Agency (IEA) warned that global oil oversupply could worsen in the new year.

Brent futures fell almost 2 percent and as low as $36.17 per barrel trading around 0500 GMT, while U.S. West Texas Intermediate (WTI) futures were down 33 cents at $34.40 per barrel.

Dollar has been robust since the Fed decided on a 25 bps rate hike, the first in nine years, and this has added to the crude woes. This, in addition to the sluggish demand from European nations, has led to sharp downfall in the prices.

Global Solar installations forecast to reach approximately 64.7 GW in 2016: Mercom Capital Group

“The largest markets in 2016 will again be China, the United States and Japan; the United States is set to overtake Japan as the second largest solar market behind China. These three countries will account for about 65 percent of installations next year” said Raj Prabhu, CEO and Co-Founder of Mercom Capital Group.

Mercom Capital Group, llc, a global clean energy communications and consulting firm, forecasts another year of solar growth with installations expected to reach 64.7 GW in 2016 up from 57.8 GW forecast for 2015.
 
“The largest markets in 2016 will again be China, the United States and Japan; the United States is set to overtake Japan as the second largest solar market behind China. These three countries will account for about 65 percent of installations next year” said Raj Prabhu, CEO and Co-Founder of Mercom Capital Group.
 

China will continue to be the largest solar market in the world, installing approximately 19.5 GW in 2016. China has installed almost 10 GW in the first three quarters this year, well ahead of 3.79 GW installed in the same period last year. Curtailment and delayed subsidy payments remain a challenge. The announcement of an additional 5.3 GW installation quota with a completion deadline of June 2016 for provinces that have met or exceed their installation goals is likely to help China get close to meeting its installation goals in 2015, and ensures a strong 2016. The Chinese government is expected to increase its 2020 installation target to 150-200 GW.
 
Mercom is forecasting the United States to install about 13 GW of solar next year which will be the best year for U.S. solar installations by far. The U.S. solar market is expected to experience robust growth for the next 13 months as the industry rushes to complete projects before the 30 percent investment tax credit (ITC) drops to 10 percent. The industry is hopeful, but not betting, on a possible extension to 30 percent ITC at 30 percent. The 2016 installation estimates will need to be revised if solar projects are allowed to “begin construction” by December 31, 2016 instead of reaching completion, or if there is an agreement in Congress to extend the ITC in any form.

 
Japan is expected to install about 9 GW of solar in 2016. The Japanese solar industry has experienced two feed-in tariff (FiT) cuts in 2015 as the government looks to trim solar subsidy costs. So far, Japan has approved a little more than 80 GW of solar projects under its FiT program, of which about 25 percent has been installed. Japan is going through a transformation in the energy sector with a change in its energy mix going into 2030, giving more weight to renewables and cutting back on nuclear energy. Japan also is in the process of deregulating its utilities and breaking up monopolies. Japanese domestic solar module shipments have dropped the last two quarters following the reduction in FiTs.
 
In European market activity, the U.K. is expected to lead in terms of PV installations in 2016 followed by Germany and France. There is a lot of uncertainty surrounding the U.K. PV market with a decision on FiT cuts still pending and Renewable Energy Credits set to expire in April 2016. Europe recently extended import tariffs on Chinese solar panels which could result in tariffs remaining for a few more years, which will be detrimental for solar project development in Europe.
 
Indian solar installations are expected to reach about 3.6 GW in 2016, significant growth compared to the 2.1 GW forecasted for 2015. Momentum has picked up after the government set a target of 100 GW by 2022. Aggressive bidding in its recent auctions has caused some concerns as to the viability of these projects due to unrealistically low bids. 

UltraTech Cement plans to set up cement plant in West Bengal

UltraTech Cement is in the process of setting up a cement plant on 90 acres of land in Dankuni, Hooghly district, West Bengal.

UltraTech Cement is reportedly in the process of setting up a cement plant on 90 acres of land in Dankuni, Hooghly district, West Bengal.  

The plant is located close to National Highway 2, a kilometre away from Dankuni Toll plaza. The plant is strategically located 40 kilometre from Kolkata and 15 kilometres from Singur.

The plant received environmental clearance and according to company officials, the plant is expected to commence production by July 2016. 

The land for the plant was acquired by UltraTech under Mamta Banerjee’s governments ‘alternative land policy’ where industries can either procure land on their own or opt for the parcels in the state’s land bank.

UltraTech Cement paid landowners between Rs 1.5 lakh and Rs. 9 lakh for every kottah.

Stock performance

UltraTech Cement Ltd is currently trading at Rs. 2801.4, down by Rs. 23 or 0.81% from its previous closing of Rs. 2824.4 on the BSE.

The scrip opened at Rs. 2810 and has touched a high and low of Rs. 2819.9 and Rs. 2783.55 respectively. So far 67249(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 77506.65 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 3399 on 04-Mar-2015 and a 52 week low of Rs. 2418.3 on 18-Dec-2014. Last one week high and low of the scrip stood at Rs. 2898.45 and Rs. 2783.6 respectively.

The promoters holding in the company stood at 61.69 % while Institutions and Non-Institutions held 25.53 % and 11.04 % respectively.

The stock is currently trading above its 200 DMA.

Kesoram Industries climbs 4.9% on fund raising plan

The board has given the approval to dispose off the company's spun pipe and the heavy chemicals units located in West Bengal.

Kesoram Industries climbed 4.9% to Rs. 115 on BSE. The board approved the company's proposal to raise up to Rs. 650 crore through qualified institutional placement. The board has also given the approval to dispose off the company's spun pipe and the heavy chemicals units located in West Bengal.

The scrip opened at Rs. 113 and has touched a high and low of Rs. 114.8 and Rs. 111.9 respectively. So far 358,880 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 1200.87 crore.

The BSE group 'T' stock of face value Rs. 10 has touched a 52 week high of Rs. 148.85 on 13-Apr-2015 and a 52 week low of Rs. 69.5 on 15-Jun-2015. Last one week high and low of the scrip stood at Rs. 110.8 and Rs. 95.5 respectively.

The promoters holding in the company stood at 46.01 % while Institutions and Non-Institutions held 8.77 % and 38.8 % respectively.

The stock is currently trading below its 200 DMA.

Sun Pharma plunges 6.6% after receiving warning letter from USFDA

The pharma company received a Warning Letter from the USFDA as a result of the September 2014 inspection, for its facility located at Halol, Gujarat in India.

Sun Pharma slipped 6.6% to Rs.738.45 on BSE. The pharma company received a Warning Letter from the US FDA as a result of the September 2014 inspection, for its facility located at Halol, Gujarat in India.

The scrip opened at Rs. 740.1 and has touched a high and low of Rs. 744 and Rs. 732 respectively. So far 3833024(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 190234.92 crore.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 1200.7 on 07-Apr-2015 and a 52 week low of Rs. 706.4 on 24-Nov-2015. Last one week high and low of the scrip stood at Rs. 809.3 and Rs. 753.55 respectively.

The promoters holding in the company stood at 54.71 % while Institutions and Non-Institutions held 35.62 % and 9.68 % respectively.

The stock is currently trading above its 200 DMA.

5 key sector themes playing out for 2016

Interest in India is fairly high, with specific focus on bottom-up ideas for 2016. Jefferies discusses 5 key sector themes playing out, with focus on Gateway Distriparks, Cummins, ABB, Voltas and NTPC, says a report.

2015 has been a difficult year across emerging markets. Disappointment was exhibited on the overall picture in India taking time to settle down. Despite this, interest in India is fairly high, with specific focus on bottom-up ideas for 2016. Jefferies discusses 5 key sector themes playing out, with focus on Gateway Distriparks, Cummins, ABB, Voltas and NTPC. 

1. MNC Engineering: driven by cost competitiveness and patent enforcement in India
2. Railways: Dedicated Freight Corridor (DFC) seeing sharp pick-up in execution
3. Operating leverage: companies benefitting from sweating expanded capacities in a gradually upticking economy
4. Defence: Indigenisation focus continuing
5. Renewables: On-ground progress being well ahead of expectations.

MNC Engineering received strong interest with valuation push-back being discussed at length, the report stated. Railways came as a positive surprise to investors.
 
Following is an extract from the Jefferies report: 
 
L&T - Investor skepticism on a high: L&T, which began as an industry favourite, has been weak in 2015. We downgraded L&T in July 2014, and focussed on alternate names within the sector during 2015. From here on, in our minds, we believe a lot of the concerns have played out, and are now closely watching for early indications of stability/improvement.
 
Voltas – 2% AC penetration surprised most: Air-conditioner (AC) industry is a segment we have been positive on in 2015 and believe will remain strong in 2016. Most investors were surprised that AC penetration in India is only 2% and only 7% even if one considers only mid-income and above households. India needs 25%+ CAGR for the next 10 years to reach penetration levels similar to China of 20%+. Strong 3QFY16 can be expected post it seeing a 38% YoY volume growth in October 2015 and 15-20% in November 2015.
 
Gateway – still a name to be known: The upside potential that Gateway Distriparks holds due to DFC commissioning in FY18E-19E, is not a fully known story among investors. It is interesting to note that at one-tenth of Container Corporation (Concor) size in terms of volumes, it has 66% higher profitability per TEU. Also it has increased its market share from 5.3% in FY12 to 7.3% in FY15. Rail volumes should see a 20% CAGR over FY15-25 taking into account DFC commissioning and some market share gains to 10% by FY21. Our investor interactions are leading to interest picking-up in the company, as the fundamentals are being viewed positively.
 
Cummins and ABB - valuations have not stopped stock appreciation in the past: Most investors agree that India is increasingly becoming an attractive manufacturing destination v/s China given rupee depreciation and lower hourly compensations. Among MNCs, Cummins has the clearest path and ABB listed will benefit from the entire parent manufacturing push.

S Chand and Company plans IPO in 2017

The company will continue to focus on inorganic growth, as it expands its presence across the country, according to reports.

Textbook-focused, publishing firm S Chand and Company is planning initial public offering next fiscal, says report.

Report says that the company plans to ramp up its portfolio of digital and print content and services.

The company will continue to focus on inorganic growth, as it expands its presence across the country, according to reports. 

"We estimate a requirement of about $150 million through external and internal accruals, as we look to reach 1,00,000 institutions over the next five years," Himanshu Gupta, joint managing director, S Chand was quoted as saying.

IVRCL to split into two companies

In a Board meeting held on Saturday, the company said that while the EPC company will have working capital and current assets, the BOT company will have land and other long term assets.

IVRCL Ltd. has decided to split itself into two companies, separating the Build Operate Transfer (BOT) and Engineering Procurement Construction (EPC) parts of the business, according to a business daily.

In a Board meeting held on Saturday, the company said that while the EPC company will have working capital and current assets, the BOT company will have land and other long term assets.

The proposal will have to be approved by the joint lenders forum, and the high courts of Telangana and Andhra Pradesh among others.

"After the strategic debt restructuring (SDR) lenders would hold around 51% in each company," IVRCL Group CFO R. Balarami Reddy has been quoted as saying. 

IVRCL has a debt of around rS. 5,000 crore.

At the Board meeting, the company also decided to convert part of the debt into equity shares followed by the invocation of SDR by the Joint Lenders Forum. 

On 26th November, lenders had invoked SDR, a scheme which allows banks to convert debt into equity stake of a debt-laden company and take over the management. 

In July last year, IVRCL had gone through CDR.

Narayana Hrudayalaya IPO receives tepid response so far

The issue has received bids for 51,12,900 shares as against total issue size of 1,71,66,309 shares, according to NSE data.

Narayana Hrudayalaya's, initial public offering (IPO) received tepid response from the markets so far.

The issue has received bids for 51,12,900 shares as against total issue size of 1,71,66,309 shares, according to NSE data.

The quota for retail institutional investors (RII) and non-institutional investors was subscribed 0.32 times, and 0.02 times, respectively. 

The company is planning to raise Rs 600 - 613 crore from the equity market at a price band of Rs 245 - 250 per equity share. 

The company has raised Rs 184 crore from 15 anchor investors, including the Government of Singapore, Morgan Stanley, Mirae, Nomura, Reliance, Birla Sun Life, DSP Blackrock, UTI, ICICI Prudential, and SBI MF at the upper limit of the price band.

Sun Pharma, Jubilant Life Science among 12 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: The pharma company received a Warning Letter from the US FDA as a result of the September 2014 inspection, for its facility located at Halol, Gujarat in India.

United Bank of India: The bank is planning to raise Rs. 1,500 crore through preferential allotment of shares, the bank said in a BSE filing.

M&M: The auto company has launched the all-new KUV100, a sub-4 metre compact SUV.  Mahindra KUV100 is powered by an all-new engine family called ‘m Flacon’.

Blue Star Ltd: The company has informed BSE that the Hon'ble Bombay High Court has at the hearing held on December 18, 2015, sanctioned the Scheme of Amalgamation of Blue Star Design and Engineering Limited ("BSDEL") with Blue Star Engineering & Electronics Limited ("BSEEL") and their respective shareholders and creditors. The authenticated copy of the final order is still awaited. Blue Star Design and Engineering Limited and Blue Star Engineering & Electronics Limited are wholly-owned subsidiaries of the Company.

UltraTech Cement: The company has informed BSE that the tenure of O. P. Puranmalka as Managing Director of the Company ceases on March 31, 2016. He continues as a Non-executive Director of the Company with effect from April 01, 2016. The Board of Directors of the Company ("the Board") at its meeting held on December 18. 2015 took note of these changes.

Havells India: Havells is planning to start manufacturing small domestic appliances from January 2016.

Tata Power: Tata Power's subsidiary Maithon Power Ltd has commenced 150 MW supply to Kerala with immediate effect.

Aarti Industries Ltd: The company has informed BSE that Promoters of the Company have indicated that they are exploring possibility to set aside approximately 40 Lac equity shares (Rs. 5/- each fully paid up) held in the Company for charitable/philanthropic purpose.

Jubilant Life Science: Reserve Bank of India has notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 45 per cent of the paid up capital of Jubilant Life Science Limited under the Portfolio Investment Scheme

Kesoram Industries: Kesoram Industries board approved the company's proposal to raise up to Rs. 650 crore through qualified institutional placement.

L&T Finance Holdings Ltd: The company has informed BSE that the Board of Directors of the Company at its meeting held on December 18, 2015, has approved the allotment of 3,18,36,971 (Three Crore Eighteen Lakhs Thirty Six Thousand Nine Hundred and SeventyOne) Equity Shares to BC Investments VI Limited (Investor 1), and 6,38,20,990 (Six Crore Thirty Eight Lakhs Twenty Thousand Nine Hundred and Ninety) Share Warrants ("Warrants") to BC Asia Growth Investments (Investor 2), on a preferential basis.

NTPC: NTPC is likely to drop a plan to take over Damodar Valley Corporation’s (DVC) 2,520 MW Raghunathpur plant in West Bengal after the railways refused to buy power from the utility, reports a financial newspaper.

Gammmon India: Lenders to Gammon India Ltd. will convert Rs. 245 crore worth of debt to a 60.10% equity stake under the strategic debt restructuring (SDR) norms.

Sensex, Nifty to open on a flat note

Asian markets are mixed with Nikkei in the red. US indices had closed lower on Friday.The Sensex is down over 5% for the year but a report shows that 10% of BSE stocks doubled during the year while four out of every 10 stocks delivered over 20% returns. In fact almost half the scrips on BSE gained over 10%.

With barely a few days left for the Winter Session of Parliament to end, the government is set to miss its glory regarding GST Bill. Stating that the bill is being delayed for collateral reasons, Finance Minister Arun Jaitley said, a delayed GST is better than a flawed GST.  The government is expected to the push the Bankruptcy Law in the next three days and is likely to introduce the same in Parliament today.

The outlook is a flat start. Despite a crash on Friday, Nine of the top 10 most valued Sensex firms added nearly Rs. 70,000 crore in mcap last week with Reliance Industries mcap surging by ~Rs.12,9000 crore.

Asian markets are mixed with Nikkei in the red. US indices had closed lower on Friday.

The Sensex is down over 5% for the year but a report shows that 10% of  BSE stocks doubled during the year while four out of every 10 stocks delivered over 20% returns. In fact almost half the scrips on BSE gained over 10%.

The government plans to award Rs 28,000 crore worth of highways development projects in the current fiscal under the newly conceived hybrid annuity model amid renewed interest among private firms. This will be the largest chunk of investment under public private partnership or PPP in the sector in any single year since 2010, says a report.

Narayana Hrudayalaya's, initial public offering (IPO) received tepid response from the markets so far.

Textbook-focused, publishing firm S Chand and Company is planning initial public offering next fiscal, says report.

IDBI Bank is planning to sell 20% stake in life insurance joint venture for Rs. 800 crore, according to reports.

IT industry veteran and Infosys co-founder NR Narayana Murthy reportedly said that the benefits of the government's ambitious Digital India programme will take three to five years for citizens to derive full benefit out of it.

Jaitley stated that the fiscal situation has never been as good as it is now. Despite challenges, India has kept pace with growth. Global slowdown has impacted India's International trade, says FM.

Phase one of the L&T Metro Rail Hyderabad Ltd. will be commercially operational by the first quarter of 2016, Telangana IT Minister K.T. Rama Rao has been quoted as saying by a business daily.

NTPC is likely to drop a plan to take over Damodar Valley Corporation’s (DVC) 2,520 MW Raghunathpur plant in West Bengal after the railways refused to buy power from the utility, reports a financial newspaper.

Domestic air traffic grew by nearly 25 per cent in November to 7.32 million passengers as compared to 5.82 million passengers in the same period last year, according to latest DGCA data.

The Competition Commission of India (CCI) is examining a fresh complaint of alleged unfair trade practices against the country's cement manufacturers, Chairman Ashok Chawala has been quoted as saying by a business daily.

Lenders to Gammon India Ltd. will convert Rs. 245 crore worth of debt to a 60.10% equity stake under the strategic debt restructuring (SDR) norms.

GoAir is set to increase its existing fleet in the next five years staring from 2016, reports a financial newspaper.