ITC to invest Rs. 4500 crore in WB

The company reportedly said that it will establish 3.5 msf ITC Infotech & Related Infrastructure In West Bengal.

ITC Chairman YC Deveshwar reportedly said that it is planning to invest Rs.4,500 Cr in West Bengal.

The company reportedly said that it will establish 3.5 msf ITC Infotech & Related Infrastructure In West Bengal.

ITC Ltd is currently trading at Rs. 316.05, up by Rs. 6.45 or 2.08% from its previous closing of Rs. 309.6 on the BSE.

The scrip opened at Rs. 310 and has touched a high and low of Rs. 316.9 and Rs. 309.3 respectively. So far 4958152(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 248815.93 crore.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 409.7 on 28-Feb-2015 and a 52 week low of Rs. 294.5 on 15-Jun-2015. Last one week high and low of the scrip stood at Rs. 328.5 and Rs. 308.8 respectively.

The promoters holding in the company stood at 0 % while Institutions and Non-Institutions held 55.81 % and 43.94 % respectively.

The stock is currently trading above its 50 DMA.

Indian crude oil basket price slips below US$ 30 per bbl

Indian crude oil basket price was US$ 111.23 as on August 30, 2012 and from this level the prices have come down by nearly 74%.

The sluggish economic activities in China are strongly expected to affect the crude oil demand in emerging economies. The anticipation of declining Chinese demand for crude oil has sent the crude oil prices below 12 years low of nearly US$ 30 per bbl. The Indian crude oil basket price is a clear beneficiary and has slipped below US$ 30. For January 7, the Indian crude oil basket price was quoted at US$ 29.24 per bbl (Rs. 1,956.65).

According to Bloomberg data, the Indian crude oil basket price was US$ 111.23 as on August 30, 2012 and from this level the prices have come down by nearly 74%.

The Indian crude basket is used as an indicator of the price of crude imports in India, and is one of the elements watched by the Indian government when deciding on domestic price issues.

There are mainly three crude oil baskets: Indian crude oil basket, Nymex WTI basket and OPEC basket. Despite the Nymex Oil basket prices are cheaper than Indian crude basket prices the Indian refiners mainly prefer to purchase oil at Indian crude basket prices that are linked to the Brent crude oil.

As the price difference between WTI crude and Brent crude is a short-term phenomenon, Indian crude oil importers prefer Indian crude oil basket because in any case, loading, inland movement and a longer ocean voyage involved in buying American crude oil narrows down the price difference to a point where it is not worthwhile.

Volatility is the new norm in Global economy: Arun Jaitley

The Finance Minister said states are formulating policies to attract investments.

Finance Minister Arun Jaitley stated that States are  formulating policies to attract investments.

The weak rainfall has impacted rural demand, added Jaitley.

FM says that volatility is the new norm in Global economy.

Central Govt in partnership with states are trying to accelerate growth, Jaitley was quoted as saying.

IREDA tax-free bonds see huge appetite

IREDA offered tax free bonds to raise up to Rs.1,716 crore. This amount would be invested in renewable energy projects

India Renewable Energy Development Agency Ltd (IREDA) which issued Rs. 1,000 crore tax-free bonds has received bids for around 52.33 lakh bonds, or nearly 52% of the 1 crore paper up for sale within 40 minutes of its listing, says a report. The issue closes on January 22, 2016 with an option for early closure.
 
According to the BSE website, as of 12:10 pm, the issue received subscriptions worth Rs.1,16,29,070( 116.29% ). 
 
IREDA offered tax free bonds to raise up to Rs.1,716 crore. This amount would be invested in renewable energy projects.
 
Around 20% of the bond is entitled for qualified institutional buyers, domestic corporate houses and high net-worth individuals with interest at the coupon rate of 7.28%, 7.49% and 7.43% for a tenor of 10 years, 15 years and 20 years. These investors fall under Categories I, II and III, respectively. Retail individual come under Category IV who’ll be declared interest on coupon rate of 7.53%, 7.74% and 7.68%.

Tech Mahindra climbs 1.8%; announces global tie-up with MetricStream

Tech Mahindra has entered into a strategic alliance with MetricStream Inc to deliver governance risk and compliance management applications across the globe, the city-based information technology services provider said.

Tech Mahindra climbed 1.8% to Rs. 520.90 on Friday. The IT firm has entered into a strategic alliance with MetricStream Inc to deliver governance risk and compliance management applications across the globe, the city-based information technology services provider said.

The scrip opened at Rs. 515.55 and has touched a high and low of Rs. 521.2 and Rs. 513.3 respectively. So far 832661(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 49449.18 crore.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 749.5 on 02-Feb-2015 and a 52 week low of Rs. 458.7 on 06-Jul-2015. Last one week high and low of the scrip stood at Rs. 525.9 and Rs. 504.85 respectively.

The promoters holding in the company stood at 36.65 % while Institutions and Non-Institutions held 49.08 % and 14.27 % respectively.

The stock is currently trading above its 200 DMA.

Canara Bank to raise Rs. 900 crore

Canara Bank has informed BSE that as per the powers delegated by the Board of the Bank, the Bond Committee has decided to raise Rs 900 Crores.

Canara Bank has informed BSE that as per the powers delegated by the Board of the Bank, the Bond Committee has decided to raise Basel III Compliant Tier -II Bonds amounting to Rs. 900 Crore (as Series - II) by way of Private Placement. Accordingly, the Bank has successfully raised Rs. 900 Crore under BASEL-III Compliant Tier-II Bonds on January 07, 2016 with a coupon of 8.40 % PA.

The scrip opened at Rs. 220 and has touched a high and low of Rs. 222.1 and Rs. 220 respectively. So far 449813(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 11888.79 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 478.4 on 28-Jan-2015 and a 52 week low of Rs. 218 on 07-Jan-2016. Last one week high and low of the scrip stood at Rs. 239.5 and Rs. 218 respectively.

The promoters holding in the company stood at 66.3 % while Institutions and Non-Institutions held 27 % and 6.71 % respectively.

The stock is currently trading above its 200 DMA.

L&T down 2% despite order win

L&T Hydrocarbon Engineering (LTHE), a fully owned subsidiary of Larsen & Toubro, in consortium with McDermott has bagged an offshore contract from Oil & Natural Gas Corporation (ONGC) valued at Rs 24.50 bn.

L&T stock was down by 2% at Rs. 1186. L&T Hydrocarbon Engineering (LTHE), in consortium with McDermott has bagged an offshore contract from Oil & Natural Gas Corporation (ONGC) valued at Rs 24.50 bn.

The scrip opened at Rs. 1215 and has touched a high and low of Rs. 1217 and Rs. 1185.05 respectively. So far 979785(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 112332.43 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. 1200 on 07-Jan-2016. Last one week high and low of the scrip stood at Rs. 1291.25 and Rs. 1200 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.

MUDRA Bank to undertake refinance operations

MFIs can now become Member Lending Institutions (MLIs) with MUDRA (SIDBI) Bank for refinance and with NCGTC for credit guarantee.

The Union Cabinet had yesterday i.e. 6th January, 2016 approved creation of a Credit Guarantee Fund (CGF) for Micro Units Development Refinance Agency (MUDRA) loans and for converting MUDRA Ltd. into MUDRA Small Industries Development Bank of India (SIDBI) Bank as a wholly owned subsidiary of SIDBI. 

The MUDRA (SIDBI) Bank will undertake refinance operations and provide support services with focus on portal management and also data analysis etc. The MUDRA (SIDBI) Bank can take -up any other role as may be assigned to it by Government. 

MFIs can now become Member Lending Institutions (MLIs) with MUDRA (SIDBI) Bank for refinance and with NCGTC for credit guarantee. This membership is predicated on the fulfilment of certain criteria such as size, experience, an assessment of internal systems, processes and procedures, CRAR and other norms, capacity assessment rating, etc. 

On an ongoing basis, the cost of guarantee is linked to rating and recovery performance, to incentivize all MFIs, who join up as MLIs to continue good performance. 

MUDRA loans amounting to Rs 71,312 crore have been disbursed to 1.73 crore borrowers as on 1st January, 2016. 

RBI panel on financial markets meets

The TAC reviewed the recent developments in money, government securities and foreign exchange markets and discussed various issues relating to the financial benchmarks, disclosure and reporting requirements for commercial papers (CP) and relaxations in the documentation-related requirements for hedging in the forex market.

The 40th meeting of the Technical Advisory Committee (TAC) on Financial Markets was held today at Reserve Bank of India, Central Office, Mumbai, under the chairmanship of Shri Harun R. Khan, Deputy Governor, Reserve Bank of India. Senior officials from RBI, representatives from the Ministry of Finance, the Securities Exchange Board of India (SEBI), the Insurance Regulatory & Development Authority (IRDA), in addition to academia, industry bodies, banks, exchanges, clearing corporation, Fixed Income Money Market and Derivatives Association of India (FIMMDA) and other market entities participated in the meeting.

The TAC reviewed the recent developments in money, government securities and foreign exchange markets and discussed various issues relating to the financial benchmarks, disclosure and reporting requirements for commercial papers (CP) and relaxations in the documentation-related requirements for hedging in the forex market. The TAC also reviewed the recommendations of the Working Group on Interest Rate Options (Chairperson: Prof P.G. Apte) and Implementation Group on encouraging retail participation in government securities (Chairperson: Smt. Rekha Warriar). The TAC approved the constitution of a Standing Group under the TAC to suggest measures for compliance with global standards in the OTC derivative market. The Committee also deliberated on measures for development of corporate bond and the term money market.

Background

The Reserve Bank had reconstituted the Technical Advisory Committee on Money, Foreign Exchange and Government Securities Markets in April, 2015. The terms of reference of the Committee are:

To review and recommend measures for deepening and widening the money, foreign exchange and government securities markets including those relating to participants, products, institutional and infrastructural arrangements, etc.;

To suggest measures for development of market and promoting liquidity in money market instruments, foreign exchange market and government securities;

To examine and advise on the evolving and desirable linkages among the money, foreign exchange and government securities and capital markets;

To review the infrastructure, legal and institutional arrangements for trading, transfer and settlement in the money , foreign exchange and government securities markets in the context of the emerging payments system including CCIL;

To prepare and consider papers on topics relating to product/market development and advise on the policies and practices for the same;

To review the qualitative and quantitative aspects of risk management, accounting disclosure, settlement, legal framework etc. in the money, foreign exchange and government securities markets and render advise; and

To examine any relevant issue having a bearing on these markets referred to it, by RBI.

Titan sees Rs. 500 cr hit in FY16 on PAN rule

“We would have of around Rs. 400 crore to Rs. 500 crore effect on our turnover. This would be loss of turnover. This is our estimate,” Titan Co. MD Bhaskar Bhat has been quoted as saying.

Titan Co. expects to take a hit of up to Rs. 500 crore in FY16 due to the Government’s move to lower the transaction threshold of quoting permanent account number (PAN) to Rs. 2 lakh from INR 5 lakh earlier, reports a financial newspaper.

“We would have of around Rs. 400 crore to Rs. 500 crore effect on our turnover. This would be loss of turnover. This is our estimate,” Titan Co. MD Bhaskar Bhat has been quoted as saying.

The company has already taken a hit due to the previous limit at INR 5 lakh, he added.

In December, the Finance Ministry lowered the purchase limit for quoting PAN to Rs. 2 lakh per transaction from INR 5 lakh as part of measures to curb domestic black money.

Last month, Titan Co. had stated that it expected cash sales of jewellery items between Rs. 2 lakh and Rs. 5 lakh to be impacted to some extent after the Government’s move. 

The company has not resorted to means to circumvent the rule by breaking up bill, Bhat said.

Results for the day: 8K Miles, Goa Carbon among others

The results which are expected today are 8K Miles Software Services, Goa Carbon and Integrated Capital Services.

The results which are expected today are 8K Miles Software Services, Goa Carbon and Integrated Capital Services. 

8K Miles Software Services Ltd ended at Rs. 2329.95, down by Rs. 104.8 or 4.3% from its previous closing of Rs. 2434.75 on the BSE. The scrip opened at Rs. 2414.9 and touched a high and low of Rs. 2414.9 and Rs. 2260 respectively. A total of 80847(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 2538.27 crore.

Goa Carbon Ltd ended at Rs. 82, down by Rs. 6.15 or 6.98% from its previous closing of Rs. 88.15 on the BSE.The scrip opened at Rs. 85 and touched a high and low of Rs. 86.5 and Rs. 80.7 respectively. A total of 140430(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 75.03 crore.

L&T Mutual Fund plans to sell 49% stake

Report says that the stake sale could fetch an estimated Rs. 600-625 crore.

L&T Mutual Fund is planning to sell a 49% stake to a strategic partner to raise capital, according to reports.

Report says that the stake sale could fetch an estimated Rs. 600-625 crore. 

The fund is exploring various options, which include a joint venture with an established mutual fund, says L&T MF.

Wipro, Titan, Cipla, among 15 Stocks in focus today

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

Wipro: Wipro has appointed a new COO Bhanumurthy BM and also assigned new roles to other veterans such as GK Prasanna as part of a newly-unveiled organizational structure, as per media reports.

Axis Bank Ltd: The Govt is considering diluting its 11.7% stake in Axis Bank it holds through the Specified Undertaking of the Unit Trust of India to meet shortfall in disinvestment proceeds and revenue collection during the current fiscal, according to reports.

Mahindra & Mahindra: Mahindra & Mahindra expects to launch two more passenger cars/utility vehicles by the end of March to complete the planned launch of 10 vehicles during FY16, reports a business daily.

Titan: Titan Co. expects to take a hit of up to Rs. 500 crore in FY16 due to the Government’s move to lower the transaction threshold of quoting permanent account number (PAN) to Rs. 2 lakh from INR 5 lakh earlier, reports a financial newspaper.

Tata steel Ltd: The company has announced that it is expecting India steel output around 10 mn tn in FY16, according to reports. The Kalinganagar plant will start commercial operations on April 1, the company was quoted as saying.

Tech Mahindra Ltd: The company has entered into a strategic alliance with MetricStream Inc to deliver governance risk and compliance management applications across the globe, the city-based information technology services provider said.

Cipla: As part of its ongoing transformation journey to simplify decision making and improve operational excellence, Cipla Ltd has announced the creation of a six member Management Council that will be the apex executive leadership team for the company.

Jaiprakash Associates: Jaiprakash Associates has signed an agreement with Shree Cement to divest its stake in the 2.1-MT Bhilai Jaypee Cement for an enterprise (BJCL) value of Rs 21-22bn.

Bajaj Auto: The company is planning launch series of new products, double capacity at one of its plants and also to launch new a brand this year even as it targets to increase its domestic market share, as per media reports.

Bharati Shipyard Ltd: The Board of Directors of the Company at its meeting held on January 07, 2016 have approved for issuance and allotment of 2647313 convertible warrants at Rs.22/- per warrant on preferential basis to M/s. Edelweiss Finance & Investments Limited in compliance with all statutory and relevant regulations.The Company has received 25% amount towards the issue price i.e. Rs.5.50 per warrant, totaling to Rs.1,45,60,221.50 from M/s. Edelweiss Finance & Investments Limited.

Canara Bank: Canara Bank has informed BSE that as per the powers delegated by the Board of the Bank, the Bond Committee has decided to raise Basel III Compliant Tier -II Bonds amounting to Rs. 900 Crore (as Series - II) by way of Private Placement. Accordingly, the Bank has successfully raised Rs. 900 Crore under BASEL-III Compliant Tier-II Bonds on January 07, 2016 with a coupon of 8.40 % PA.

Maruti Suzuki: Maruti Suzuki has unveiled their latest offering in their flagship model, Maruti Suzuki DZire equipped with Auto Gear Shift (AGS) technology.

L&T: L&T Hydrocarbon Engineering (LTHE), a fully owned subsidiary of Larsen & Toubro, in consortium with McDermott has bagged an offshore contract from Oil & Natural Gas Corporation (ONGC) valued at Rs 24.50 billion.

Bharat Heavy Electricals Ltd: BHEL, an integrated power plant equipment manufacturer, has commissioned two 220/20kV substations in Afghanistan on EPC basis.

Bajaj Corp: FMCG firm Bajaj Corp reported 18.6% increased in net profit at Rs.49.6 crore for the third quarter ended December 31, 2015. The company's total income for the third quarter stood at Rs.213.1 crore, up 3.4% from Rs.206 crore in the year-ago period.