Pipavav Defence up 2%; to raise funds via QIP

The company will meet on 18 January to consider raising funds for the company including by way of qualified institutional placements (QIP).

Pipavav Defence and Offshore Engineering Ltd stock was up by 2% at Rs. 81.

The company will meet on 18 January to consider raising funds for the company including by way of qualified institutional placements (QIP).

The scrip opened at Rs. 78.5 and has touched a high and low of Rs. 83.4 and Rs. 77.5 respectively. So far 5248778(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 5878.64 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 114 on 28-Dec-2015 and a 52 week low of Rs. 46.6 on 23-Jan-2015. Last one week high and low of the scrip stood at Rs. 88 and Rs. 74.5 respectively.

The promoters holding in the company stood at 42.24 % while Institutions and Non-Institutions held 17.13 % and 40.63 % respectively.

The stock is currently trading below its 50 DMA.

Talwalkars to acquire 50% stake in Zorba yoga studio chain

Talwalkars Better Value Fitness Limited (TBVF), India's largest fitness chains has entered into a Memorandum of Understanding (MOU) with Zorba - A Renaissance Studio (Zorba) a chain of yoga studios having operations in Chennai.

Talwalkars Better Value Fitness Limited (TBVF), India's largest fitness chains has entered into a Memorandum of Understanding (MOU) with Zorba - A Renaissance Studio (Zorba) a chain of yoga studios having operations in Chennai. 

As per the terms of the MOU, TBVF shall acquire 50% stake in Zorba s rapidly growing Yoga Studios business. 

The investment into Zorba will enable TBVF to further strengthen its wellness and fitness offerings initially in the Chennai Market and also enable the Company to expand its yoga training activities across multiple locations of TBVF in India thereby benefiting TBVF's existing members.

Banks call for raising tax exemption limit in pre-Budget meet

Currently, tax deduction up to 1.5 lakh annually for Public Provident Fund, life insurance and equity-linked saving schemes is being provided under Section 80 (C) of the Income Tax Act.

Seeking an alleviation in the severity in Section 80 (C) of the Income Tax Act , banks and financial institutions met with Finance Minister Arun Jaitley on Tuesday, at a two hour-long pre-Budget consultation meeting, says a report in a leading financial publication. 

The meeting was graced by the presence of Rana Kapoor, Managing Director and Chief Executive Officer of YES Bank and State Bank of India Chairperson Arundhati Bhattacharya.

Currently, tax deduction up to 1.5 lakh annually for Public Provident Fund, life insurance and equity-linked saving schemes is being provided under Section 80 (C) of the Income Tax Act.

Hoping projects to pick up momentum by getting quicker approval and also hinging expectations on the Reserve Bank of India to slash rates further in this calendar year, banks have proposed the government to focus on public spending in 2016-17, the report said.

Additionally, banks also asked for increasing the limit of investment in Public Provident Fund.

Tata Steel tumbles 4%; S&P revises rating

The company announced that sharp fall in international steel prices due to excessive exports from China and other has triggered a review of Tata Steel’s credit rating by Standard and Poor (“S&P").

Tata Steel stock was down by 4% at Rs. 237.Standard & Poor's Ratings  Services said  that it had lowered its long-term corporate credit rating  on Tata Steel UK Holdings Ltd. (TSUKH) to 'B+' from 'BB-'. The outlook is  stable. At the same time, we affirmed our 'B' short term corporate credit  rating on the U.K.-based company.

S&P lowered the rating on TSUKH following the downgrade of the company's parent  Tata Steel Ltd. (BB-/Stable/--). We assess that TSUKH is a "highly strategic" subsidiary of Tata Steel and expect the parent to continue to support TSUKH. We therefore rate TSUKH two notches above its stand-alone credit profile (SACP).

The company announced that sharp fall in international steel prices due to excessive exports from China and other has triggered a review of Tata Steel’s credit rating by Standard and Poor (“S&P"). The corporate credit rating has been downgraded by 1 notch.

The scrip opened at Rs. 235.6 and has touched a high and low of Rs. 238 and Rs. 231.7 respectively. So far 4208392(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 23989.02 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 411.4 on 23-Jan-2015 and a 52 week low of Rs. 200 on 29-Sep-2015. Last one week high and low of the scrip stood at Rs. 263.9 and Rs. 237.1 respectively.

The promoters holding in the company stood at 31.35 % while Institutions and Non-Institutions held 37.73 % and 28.94 % respectively.

The stock is currently trading above its 200 DMA.

Contraction! December WPI Inflation at -0.73%

Build up inflation rate in the financial year so far was 0.74% compared to a build up rate of -0.89% in the corresponding period of the previous year.

The annual rate of inflation, based on monthly WPI, stood at -0.73% (provisional) for the month of December, 2015 (over December, 2014) as compared to -1.99% (provisional) for the previous month and -0.50% during the corresponding month of the previous year.  Build up inflation rate in the financial year so far was 0.74% compared to a build up rate of -0.89% in the corresponding period of the previous year.


PRIMARY ARTICLES (Weight 20.12%)

The index for this major group rose by 0.5 percent to 257.8 (provisional) from 256.5 (provisional).  The groups and items which showed variations during the month are as follows:-

The index for ‘Food Articles’ group rose by 0.6 percent to 272.7 (provisional) from 271.0 (provisional) for the previous month due to higher price of poultry chicken (18%), fish-inland (10%), beef & buffalo meat (9%), pork and bajra (4% each),      egg, tea, fish-marine and condiments & spices (3% each), jowar, urad and barley (2% each) and maize, arhar and wheat (1 % each).  However, the price of moong (7%), masur (5%), fruits & vegetables (2%) and mutton (1%) declined.

The index for ‘Non-Food Articles’ group rose by 1.0 percent to 223.9 (provisional) from 221.7 (provisional) for the previous month due to higher price of mesta and flowers (12% each), raw jute and linseed (5% each), groundnut seed and raw wool (4% each), niger seed (3%), fodder and raw cotton (2% each) and rape & mustard seed and sunflower (1% each).  However, the price of guar seed (11%), castor seed and raw rubber (7% each), soyabean and gingelly seed (3% each), coir fibre (2%) and copra (coconut) and cotton seed (1% each) declined.

The index for  ‘Minerals’ group declined by 2.4 percent to  212.3 (provisional) from 217.6  (provisional) for the previous month due to lower price of iron ore (10%), zinc concentrate (6%) and manganese ore (1%).  However, the price of      sillimanite and copper ore (1% each) moved up.

FUEL & POWER (Weight 14.91%)

The index for this major group declined by 0.6 percent to 176.8 (provisional) from 177.9 (provisional) for the previous month due to lower prices of furnace oil (10%), bitumen (3%) and petrol and aviation turbine fuel (1% each).  However, the price of LPG (1%) moved up.

MANUFACTURED PRODUCTS (Weight 64.97%)

The index for this major group declined by 0.3 percent to 152.6 (provisional) from 153.0 (provisional) for the previous month. The groups and items for which the index showed variations during the month are as follows:-

The index for ‘Food Products’ group rose by 0.3 percent to 175.4 (provisional) from 174.9 (provisional) for the previous month due to higher price of tea dust (unblended) (7%), gram powder (besan) (6%), cotton seed oil and canned fish (4% each) and soyabean oil, mixed spices, processed prawn, mustard & rapeseed oil, sugar, wheat flour (atta), groundnut oil,     palm oil, maida, sugar confectionary, gola (cattle feed) and bakery products (1% each).  However, the price of powder milk (5%), tea leaf (blended) and gur (3% each), sooji (rawa), oil cakes and sunflower oil (2% each) and gingelly oil, tea leaf (unblended), copra oil and khandsari (1% each) declined.

The index for ‘Beverages, Tobacco & Tobacco Products’ group declined by 0.4 percent to 205.2 (provisional) from 206.0 (provisional) for the previous month due to lower price of bidi (2%).  However, the price of zarda (4%) and dried tobacco    (1%) moved up.

The index for ‘Textiles’ group declined by 0.1 percent to 139.7 (provisional) from 139.8 (provisional) for the previous month due to lower price of man made fabric and cotton yarn (1% each).  However, the price of jute sacking cloth, jute yarn and gunny and hessian cloth (2% each) and tyre cord fabric, jute sacking bag and cotton fabric (1% each) moved up.

The index for ‘Wood & Wood Products’ group declined by 0.7 percent to 196.4 (provisional) from 197.7 (provisional) for the previous month due to lower price of processed wood (1%).

The index for ‘Paper & Paper Products’ group rose by 0.2 percent to 154.9 (provisional) from 154.6 (provisional) for the previous month due to higher price of paper cartons / boxes (2%) and books/ periodicals/ journals and newsprint (1% each). However, the price of corrugated sheet boxes (1%) declined.

The index for ‘Leather & Leather Products’ group rose by 0.4 percent to 144.4 (provisional) from 143.8 (provisional) for the previous month due to higher price of leather garments & jackets (2%).

The index for ‘Rubber & Plastic Products’ group declined by 0.3 percent to 145.8 (provisional) from 146.3 (provisional) for the previous month due to lower price of plastic products (1%).

The index for ‘Chemicals & Chemical Products’ group declined by 0.5 percent to 149.9 (provisional) from 150.6 (provisional) for the previous month due to lower price of antibiotics (3%), hair / body oils and non-cyclic compound (2% each) and pesticides, polymers, urea, rubber chemicals, photographic goods and explosives (1% each).  However, the price of synthetic resin (2%) and pigment & pigment intermediates and safety matches/ match box (1% each) moved up.

The index for ‘Non-Metallic Mineral Products’ group rose by 0.3 percent to 177.5 (provisional) from 176.9 (provisional) for the previous month due to higher price of polished granite (2%) and bricks & tiles (1%).  However, the price of marbles      (3%) declined.

The index for ‘Basic Metals, Alloys & Metal Products’ group declined by 1.2 percent to 150.3 (provisional) from 152.2 (provisional) for the previous month due to lower price of pig iron, angles, plates and melting scrap (4% each), HRC,     pencil  ingots and CRC (3% each), joist & beams, gp/gc sheets, billets, rounds, ferro silicon and steel: pipes & tubes (2% each) and sponge iron, rebars, wire rods, steel rods, copper / copper ingots and steel castings (1% each).  However, the price of zinc (5%) and sheets, ferro chrome and ferro manganese (1% each) moved up.

The index for ‘Transport, Equipment & Parts’ group rose by 0.1 percent to 138.0 (provisional) from 137.9 (provisional) for the previous month due to higher price of auto rickshaw / tempo/matador (3%).

Reliance Industrial Infrastructure down 2% on Q3 numbers

The company reported 26.65% decline in its December quarter earnings at Rs.3.96 crore compared with Rs.5.32 crore a year ago.

Reliance Industrial Infrastructure Ltd stock was down by 2% at Rs. 437. The company reported 26.65% decline in its December quarter earnings at Rs.3.96 crore compared with Rs.5.32 crore a year ago.

Reliance Industrial Infrastructure Ltd is currently trading at Rs. 436, down by Rs. 11.25 or 2.52% from its previous closing of Rs. 447.25 on the BSE.

The scrip opened at Rs. 435 and has touched a high and low of Rs. 440 and Rs. 425.75 respectively. So far 419132(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 675.35 crore.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 539.75 on 04-Jan-2016 and a 52 week low of Rs. 295 on 25-Aug-2015. Last one week high and low of the scrip stood at Rs. 495 and Rs. 425 respectively.

The promoters holding in the company stood at 45.43 % while Institutions and Non-Institutions held 0.25 % and 54.32 % respectively.

The stock is currently trading below its 50 DMA.

India crude basket price at US$ 27.32 on Jan 13

The international crude oil price of Indian Basket was US$ 27.32 per barrel (bbl) on Wednesday. This was lower than the price of US$ 27.33 per bbl on Tuesday.

The international crude oil price of Indian Basket as computed/published by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 27.32 per barrel (bbl) on Wednesday. This was lower than the price of US$ 27.33 per bbl on Tuesday.

In rupee terms, the price of Indian Basket decreased to Rs 1826.30 per bbl on Wednesday as compared to Rs 1828.42 per bbl on Tuesday. Rupee closed stronger at Rs 66.84 per US$ on Wednesday as against Rs 66.89 per US$ on Tuesday. The table below gives details in this regard:

Particulars	Unit	Price on January 13, 2016 (Previous trading day i.e. 12.01.2016)	Pricing Fortnight for 01.01.2016 (Dec 12 to Dec 29, 2015)
Crude Oil (Indian Basket)	($/bbl)	27.32            (27.33)	33.58
	(Rs/bbl	1826.30         (1828.42)	2234.08
Exchange Rate	(Rs/$)	66.84             (66.89)	66.53

Dr. Reddy’s hits 52-week low; Mcap slips below Rs. 50K

Nothing is going right for Dr. Reddy’s Laboratories, India’s second largest drug maker, since the US FDA issued a warning letter to the company on November 5, 2015.

Nothing is going right for Dr. Reddy’s Laboratories, India’s second largest drug maker, since the US FDA issued a warning letter to the company on November 5, 2015. Dr. Reddy’s shares have crashed to a 52-week low of Rs. 2,854.05 today; while the company’s market cap has plunged below Rs. 50,000 crore mark. 

The US drug regulator has issued a warning letter to Dr. Reddy’s over violation of Good Manufacturing Practice (GMP) at its API manufacturing facilities at Srikakulam, Andhra Pradesh and Miryalaguda, Telangana, as well as Oncology formulation manufacturing facility at Duvvada, Vishkhapatanam, Andhra Pradesh. The action followed the earlier inspection of these sites by the US FDA in November 2014, January 2015 and February 2015 respectively. 

The company’s stock has tumbled 33.11% to Rs. 2,885.90 at present, from Rs. 4,314.35 on November 4, 2015. During the same period, Dr. Reddy’s market capitalization as also eroded by Rs. 24,242.24 crore to Rs. 49,305.61 crore. 

On receiving the warning letter from the US FDA, G V Prasad, CEO of Dr. Reddy’s had said, “We take quality and compliance matters seriously and stand by our commitment to fully comply with the cGMP quality standards across all of our facilities.”

The company, on December 7, 2015, had submitted its response to the US drug regulator. 

ONGC to cut capex by Rs 4,800 crore

Collapsed in oil prices have pushed state-owned ONGC to cut its capital expenditure (capex) by about 15% for the current fiscal year, as per reports.

Collapsed in oil prices have pushed state-owned ONGC to cut its capital expenditure (capex) by about 15% for the current fiscal year, as per reports.

Reports say, ONGC’s board has approved a cut in capital expenditure (capex) to Rs 31,400 crore for 2015-16 from Rs 36,200 crore.

Oil & Natural Gas Corpn Ltd is currently trading at Rs. 217.95, down by Rs. 4.85 or 2.18% from its previous closing of Rs. 222.8 on the BSE. The scrip opened at Rs. 220 and has touched a high and low of Rs. 223.35 and Rs. 216.8 respectively. So far 726617(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 190616.32 crore. The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 373.7 on 04-Feb-2015 and a 52 week low of Rs. 208 on 25-Aug-2015. Last one week high and low of the scrip stood at Rs. 233 and Rs. 217.65 respectively. The promoters holding in the company stood at 68.93 % while Institutions and Non-Institutions held 17.49 % and 13.58 % respectively. The stock is currently trading above its 200 DMA.

Firm-specific issues impact revenue growth for TCS, says IIFL

Although valuations have corrected in the past year, they are still rich at 17x FY17ii PER. INFO, TECHM and HCLT are top picks in large-cap IT.

TCS’ 3QFY16 revenue growth of 0.5% (cc, QoQ) was weaker than IIFL Institutional equities estimate of 1.3%. This is a material miss, says the brokerage. Poor growth in smaller geographies such as India, Japan, Middle East, and continued slowdown in Diligenta BPO impacted revenue, it added.


Following is an extract from the report:

• Ebitda margins declined 50bps QoQ and were in-line with our estimate. Loss of billing days due to Chennai floods was a significant headwind.
• While the headline revenue was a negative surprise; commentary on Diligenta, BFS vertical and pricing was positive. Management indicated instances of significant pricing pressure were limited to a few deals.
• We are cutting our FY17/18 EPS estimates by ~2% due to a modest cut in revenue growth. Although valuations have corrected in the past year, they are still rich at 17x FY17ii PER. INFO, TECHM and HCLT are our top picks in large-cap IT.

Power Grid Corp investment for transmission projects and other top power news of the day

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

Japanese energy companies and financial institutions are looking to invest heavily in India, Power Minister Piyush Goyal said in Tokyo.

State-run Power Grid Corp said it has approved a cumulative investment of Rs 2,510 crore for various transmission projects, including Rs 1,455.47 crore for strengthening its network in the Southern region.

Wind turbine maker Suzlon Group said it has bagged orders for 210 MW of solar projects from the Southern Power Distribution Company of Telangana, marking its foray into the sector.

Japanese two-wheeler major Yamaha has inaugurated a 4,000 KW solar power project at its facility in Surajpur, Uttar Pradesh. 

Competition Commission has approved the proposed acquisition of Jaiprakash Associates' five wind power plants by Suraksha Group entities.

Haryana's power distribution firms Uttar Haryana Bijli Vitran Nigam Ltd and Dakshin Haryana Bijli Vitran Nigam Ltd have made arrangements to produce 165 mw solar power during 2016-17 to help meet the state's target. 

The government will invite bids for 8-12 ultra mega power projects (UMPPs) with a total capacity of 48,000 MW in the next two years, Union Power Minister Piyush Goyal has said.

The three discoms - BSES Rajdhani, Yamuna and Tata Power Delhi - have taken their plea over surrendering of "costly" power to the Central Electricity Regulatory Commission (CERC).

Suzlon Group, the Pune-based maker of wind turbines and end-to-end EPC player in the wind energy space, announced its entry into the solar power space. 

State-run power equipment maker, BHEL said that it commissioned power generation capacity of 5,010 MW during the first three quarters of the fiscal, which is highest-ever done by the company.