Siemens wins order worth Rs.113 cr from Power Grid Company of Bangladesh

The company bagged order worth approx Rs.113 crore from PGCB to design, procure, supply, install, test and commission 230/132kV Gas Insulated Switchgear Substation along with 225/300 MVA, 132/33 KV and 50/75 MVA Transformers at Keraniganj within Dhaka.

Siemens Ltd. announced that, together with Siemens Bangladesh Ltd., it has won an order worth approximately Rs. 113 crore from Power Grid Company of Bangladesh Limited (PGCB) to design, procure, supply, install, test and commission 230/132kV Gas Insulated Switchgear Substation along with 225/300 MVA, 132/33 KV and 50/75 MVA Transformers at Keraniganj within Dhaka.

“With the latest reliable 230kV and 132kV GIS solution from Siemens, PGCB will be able to ensure transmission grid stability and provide better service to consumers across Bangladesh,” said Dr. Harald Griem, Executive Vice President and Head, Energy Management Division, Siemens Ltd.

Stock commentary:

Siemens Ltd is currently trading at Rs. 1239.7, up by Rs. 32.6 or 2.7% from its previous closing of Rs. 1207.1 on the BSE.

The scrip opened at Rs. 1214.35 and has touched a high and low of Rs. 1245 and Rs. 1203.9 respectively. So far 339316(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 42987.28 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 1558 on 06-Aug-2015 and a 52 week low of Rs. 969 on 29-Jan-2016. Last one week high and low of the scrip stood at Rs. 1234 and Rs. 1197.25 respectively.

The promoters holding in the company stood at 75 % while Institutions and Non-Institutions held 13.95 % and 11.05 % respectively.

The stock is currently trading above its 200 DMA.

SBI to offer financing to farmers through corporate partnerships

This new product is an innovative offering that uses corporate’s ecosystem data to digitally enable lending solutions to customers. Farmers’ past performance data with the associated anchor company will be used to assess eligibility and enable loan sanction. A proprietary digital tool has been developed by SBI to facilitate this centralized electronic sanctioning.

State Bank of India (SBI), country’s largest commercial bank has signed a MoU with Jain Farm Fresh Foods Limited (a subsidiary of Jain Irrigation Systems Limited). The new tie-up will help farmers associated with Jain Farm Fresh Foods Limited to avail finance against receivables due from the company.

This new product is an innovative offering that uses corporate’s ecosystem data to digitally enable lending solutions to customers. Farmers’ past performance data with the associated anchor company will be used to assess eligibility and enable loan sanction. A proprietary digital tool has been developed by SBI to facilitate this centralized electronic sanctioning. This solution, unlike traditional agri-lending products moves away from lending based on the farmers’ assets, land holding and financial history. Instead it uses proprietary historical performance data and information from public domain to assess   farmer's eligibility and credit worthiness to sanction the loan.

Speaking on the occasion, Rajnish Kumar, MD - National Banking Group, SBI said, "We are pioneering the combined potential of the rural economy, disruptive digital innovation, and leveraging the strength of corporate partnerships. The Government is also taking many steps for reviving the farm sector – New crop insurance scheme, promotion of irrigation facilities, KisanSuvidha app, electronic Mandi portal etc. All of these will help revive   agriculture sector and give a boost to GDP. Our corporate customers will see great value in this program and will look to strengthen their ecosystem".

"The product is truly pioneering as it provides credit to farmers to make investments in modern agricultural technologies like mechanization, irrigation, etc. resulting in higher productivity and subsequently higher farm income. For the bank the product is a disruptive industry offering as it relies on minimal documentation and liquid assets as security. This significantly improves customer experience and helps reduce the time involved in sanctioning." he added.

Speaking on the occasion, Shri. K. M. Trivedi, CGM - Rural Business, Jain Irrigation Systems Ltd. said "The farmer financing against corporate's receivables product is an innovative product as now we can extend credit to all farmers associated with an anchor without relying on traditional financial sources of information. More importantly, the solution   provides quick and easy credit access to farmers, thereby reducing   reliance on informal money lending channels. With access to capital, farmers will be in a position to invest in the upcoming cultivation cycle resulting in opportunity to earn additional income. Additionally the digital process has helped effectively leverage the ecosystem data to facilitate assessment. The usage of technology reduces human intervention; especially for a segment that was inundated with high cost to serve, customer turnaround time and manual processes.”

SBI is looking to strengthen the 'Farm-to-Fork' program and increase agricultural lending through corporate partnerships. The affiliation and comfort from the anchor corporate will increase the risk mitigation for loans given to various stakeholders. It plans to expand its product suite across sectors to offer customized solutions to the corporate players and their associated farmers and vendors. Recently, SBI has also signed MoUs with NIF Private Limited (Namaste Dairy), PepsiCo India Holdings Pvt. Ltd., Siddhivinayak Agri Processing Pvt. Ltd. and Origo Commodities for ecosystem financing in the agri-value chain of the corproates

SBI has been a pioneer in rural lending and financial inclusion and with the largest rural portfolio and customer base, it is at the forefront in implementing various financial inclusion programs and serving their financing requirements. In recent times, the Bank has been working with corporates to develop risk mitigated, value chain financing solutions that can cater to all stakeholders – starting from the farmer to the distribution channel partners. Today, the Bank has taken yet another giant leap in this space with the launch of a new product for financing farmers against receivables of corporate.

SBI has over 10 million rural customers with a loan book of more than Rs. 1.25 lac crore as on March 2016.  It serves them through a branch network of around 11,000 RUSU branches, 20,000 ATMs and around 58,000 Business Correspondents. The Bank has hired management consulting firm, The Boston Consulting Group to support this project which also facilitated the development of this innovative product.

Reliance Defence climbs 14%

The scrip opened at Rs. 60.6 and has touched a high and low of Rs. 64.4 and Rs. 60.6 respectively.

Reliance Defence and Engineering Ltd stock was higher by 14% at Rs.67.

The scrip opened at Rs. 60.6 and has touched a high and low of Rs. 64.4 and Rs. 60.6 respectively. So far 2007445(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 4351 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. 51.45 on 25-Aug-2015. Last one week high and low of the scrip stood at Rs. 60.85 and Rs. 58.6 respectively.

The promoters holding in the company stood at 29.9 % while Institutions and Non-Institutions held 14.22 % and 55.88 % respectively.

The stock is currently trading below its 200 DMA.

Is volatility overcoming monsoon predictions for rural economy related stocks?

An analysis of return offered during the post-budget rally and pre-monsoon rally by stocks of companies linked to rural economy including agrochem & fertilizers, automobile & farm equipments, pumps and FMCG, clearly shows that the pre-monsoon rally (from April 12 to date) has failed to carry the positive momentum erupted during the post-budget rally (from February 29 to April 12).

Along with India Inc., the stock markets had also given their thumbs up to the Finance Minister, Arun Jaitley’s Union Budget, in February this year. The overwhelming response to the budgetary announcements by the stock market participants, mainly dominated by FPIs, saw benchmark Sensex gaining 9%, till the IMD announced its phase one prediction of above normal monsoon for 2016.

Ever since the IMD predicted the rainfall to be 106% of the Long Period Average (LPA) on April 12, the stock market barometer has gained 7.5% as of June 7, 2016. This market scenario indicates that the post budget rally in equities from February 29 to April 12 seems to be losing sheen from the day IMD came up with monsoon estimates. Increasing volatility is believed to be the prime factor responsible for stocks of companies fetching significant revenues from rural consumption, paring gains clocked during the post-budget rally on Dalal Street.

An analysis of return offered during the post-budget rally and pre-monsoon rally by stocks of companies linked to rural economy, including agrochem & fertilizers, Automobile & farm equipments, pumps and FMCG, clearly show that the pre-monsoon rally (from April 12 to date) has failed to carry the positive momentum, erupted during the post-budget rally (from February 29 to April 12).

During the two aforementioned phases, the Indian economy continued facing headwinds such as not so good macro economic data, weakening of rupee against the US dollar, declining corporate earnings, rising NPAs of banks and overall gloomy scenario on global economic front, which mainly revolved around slowing US economy and Brexit.

Meanwhile, since the Union Budget, mutual funds (MFs) started profit booking in equities with heavy net selling in March and April. On the other hand, the foreign portfolio investors (FPIs) attempted to offer much need support to the market with net buying in March, April and May this year.

According to analysts, the MFs fund deployment took a hit in the rural economy related companies and adding to the woes, the rally in primary market kept the retail investors away from secondary market and particularly in the above mentioned sectors.

Slowing rally in agrochem & fertilizer stocks

The overall robust market sentiment post the budget saw stocks of agrochemicals and fertilizers manufacturers posting gains and experts believed that above normal monsoon will augment the upsurge further. However, many of these stocks reacted opposite of the market expectations and pared the gains achieved during the post budget rally.

It is pertinent to note that shares of Monsanto India skyrocketed 48% during the pre-monsoon rally as compared to a 3% rise in the post-budget rally. However, the upsurge is mainly due to a possible acquisition of Monsanto by Bayer CropScience at an estimated US$ 62 billion.

Performance of agrochem & fertilizer stocks
Company	Return in post - budget rally (%)	Return in pre - monsoon rally (%)
Insecticides	23	9
GSFC	16	0.75
Bayer Cropscience	12	4
Kaveri Seeds	8	19
Deepak Ferti	8	1
PI Industries	4	12
Monsanto India	3	48
JK Agri	-3	13

Automobile stocks in reverse gear

The platform was set by the post-budget rally for the automobile sector, even at a time when the sector struggled with falling sales numbers. The IMD predictions were clearly discounted by the the street in the wake of increasing uncertainty on the economic front, which saw stocks of some of the companies engaged in manufacturing farm equipments and two-wheelers slipping into the bearish grip from the bull’s back. Shares of tractor manufacturers succumbed to heavy selling pressure, while two-wheeler makers’ stocks suffered a major setback, despite the sector expecting good sales in rural due to above normal rainfall.

Performance of automobile stocks
Company	Return in post - budget rally (%)	Return in pre - monsoon rally (%)
Escort	34	2
VST Tillers	24	10
HMT	23	-10
Atul Auto	22	-2
TVS Motors	19	-8
Bajaj Auto	12	7
M&M	1	11

Plummeting pump stocks

Stocks of manufacturers of submersible pumps, one of the key farm equipments, have completely taken a U-turn since the IMD predicted above normal monsoon for this year. The post-budget rally propelled these stocks between 5-62%, while the pre-monsoon rally dragged many of them between 10-20%.

Performance of pump makers’ stocks
Stock	Return in post - budget rally (%)	Return in pre - monsoon rally (%)
Shakti Pumps	62	-12
Dynamatic Tech	46	13
Roto Pumps	37	-19
WPIL	27	-20
KSB Pumps	20	8
Kisloskar Bros	14	-10
Yuken India	5	8

FMCG stocks in fast lane

A significant chunk of their revenues comes from the rural markets and FMCG companies have been betting big on rural demand. With good rainfall, the rural demand is expected to shoot up and the very optimistic outlook is cemented amongst the FMCG stocks during both the phases. In fact, barring a few, FMCG stocks have risen further in the pre-monsoon rally.

Performance of FMCG stocks
Stock	Return in post - budget rally (%)	Return in pre - monsoon rally (%)
Godrej Consumer	13	15
Dabur	10	17
ITC	9	12
Marico	9	-0.7
HUL	5	3
Colgate	-0.09	4
Emami	-2	6

Amidst increasing volatility, some positive factors such as falling crude oil prices, increased power generation and steadily growing core sector have helped the overall market sentiment to be upbeat. The numbers themselves indicate a positive undertone for the overall market, but stocks related to rural economy tell a completely different picture. With the monsoon is about to knock the doors, it would be interesting to see how these stocks react to the rainy rally.

HDFC Bank slashes 1-month MCLR rate to 8.95%

The scrip opened at Rs. 1175 and touched a high and low of Rs. 1179.5 and Rs. 1168 respectively.

HDFC Bank reduced one-month marginal cost lending rate (MCLR) to 8.95 percent from 9%, according to reports.

HDFC Bank Ltd ended at Rs. 1174.2, up by Rs. 3.2 or 0.27% from its previous closing of Rs. 1171 on the BSE.

The scrip opened at Rs. 1175 and touched a high and low of Rs. 1179.5 and Rs. 1168 respectively. A total of 1521554(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 297277.07 crore.

The BSE group 'A' stock of face value Rs. 2 touched a 52 week high of Rs. 1194.8 on 30-May-2016 and a 52 week low of Rs. 928.8 on 29-Feb-2016. Last one week high and low of the scrip stood at Rs. 1185.95 and Rs. 1160.5 respectively.

The promoters holding in the company stood at 21.49 % while Institutions and Non-Institutions held 43.5 % and 16.3 % respectively.

The stock traded above its 50 DMA.

NMDC board approves buyback of 20.2% equity shares at Rs.94/sh

The Board of Directors has constituted a Buyback Committee and delegated its powers to the buyback Committee to do all such acts, deeds, matters and things as it may, in its absolute discretion, deem necessary expedient, usual or proper in connection with the buyback.

NMDC Ltd has informed BSE that the board of directors of the company has approved by majority vote the proposal to buy back by the Company of its fully paid-up equity shares of Re. 1 each not exceeding 80,08,25,526 equity shares (representing 20.20% of the total number of equity shares in the paid-up share capital of the Company and is not exceeding 25% of the total number of equity shares in the paid-up share capital of the Company i.e 99,11,79,000 equity shares) at a price of Rs. 94/- per equity share (the Buy Back Offer Price) of face value of Rs 1 each payable in cash for an aggregate consideration not exceeding Rs.7527,75,99,499 (the Buyback Offer Size) which is not exceeding 25% of the aggregate of the fully paid-up share capital and free reserves as per the audited accounts of the Company for the financial year ended March 31, 2016 from the equity shareholders of the Company, as on the record date, on a proportionate basis, through the Tender Offer route as prescribed under the Buyback Regulations.

The Board of Directors noted the intention of the Promoter of the Company to participate in the proposed Buyback.

The Board of Directors has constituted a Buyback Committee and delegated its powers to the buyback Committee to do all such acts, deeds, matters and things as it may, in its absolute discretion, deem necessary expedient, usual or proper in connection with the buyback.  

Asian Granito rallies 11%; wins 12 lakhs sq.meters order

The company bagged 12 lakhs sq.meters order for its recently launched product.

Asian Granito stock was higher by 10% at Rs. 192. The company bagged 12 Lakhs sq.meters order for its recently launched product.

The scrip opened at Rs. 192 and has touched a high and low of Rs. 194.9 and Rs. 190 respectively. So far 40751(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 391.2 crore.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 197.1 on 26-Nov-2015 and a 52 week low of Rs. 83 on 09-Sep-2015. Last one week high and low of the scrip stood at Rs. 176.9 and Rs. 164.35 respectively.

The promoters holding in the company stood at 37.52 % while Institutions and Non-Institutions held 0.14 % and 62.34 % respectively.

The stock is currently trading above its 50 DMA.

L&T in focus after securing large contract

L&T in focus after securing large contract

L&T announced that its construction arm along with its JV partner in Qatar, Al Balagh Trading & Contracting, has signed a contract to build a 40,000 seater stadium, as part of the sports infrastructure being readied by the Emirate in preparation of the 2022 Fifa World Cup. The contract for the project is for a combined value of $360 million for both JV partners and is slated to be completed by 2019. The scope for the stadium includes main works and construction of the site, following completion of the enabling works, L&T said in a statement. The announcement was made after market hours yesterday, 7 June 2016.

Pharma Lupin announced the appointment of Yugesh Goutam as President-Global Human Resources (HR). Yugesh will lead the HR function for Lupin globally and will be based at the company's corporate headquarters in Mumbai, India. Yugesh takes over from Divakar Kaza who has opted to retire after a transition period to pursue other interests, Lupin said in a statement. The announcement was made after market hours yesterday, 7 June 2016.

Asian Granito India (AGL) announced that it has a won a 12 lakh sq. meters order for its recently launched 1000x1000mm Jumbo Double Charge vitrified tiles and 800x800mm Imperio Double Charge vitrified tiles. Jumbo is AGL's first initiative to make such gigantic size through most eco-friendly double charge technology of the world, with the special type of fedders to provide regal designs, AGL said in a statement. Imperio Double Charged vitrified tile is blend of aesthetic look like digital tiles, the company said. The announcement was made after market hours yesterday, 7 June 2016.

Bharat Forge will be watched. Alstom Bharat Forge Power (ABFPPL), the joint venture company between GE and Bharat Forge, signed a contract worth $219 million approximately with NTPC. The company will supply two units of 800 megawatts (MW) ultra-supercritical Steam Turbine Generator Islands, on engineering procurement and construction (EPC) basis, along with related civil work for the Telangana Super Thermal Power Project Phase-1 near Ramagundam, Karimnagar district of Telangana state in India.

The total power demand from the southern region is 34,000 MW. The 800 MW Steam Turbine Generator Islands for the power plant will be the first with ultra-supercritical parameters and will help in meeting the ever increasing power demand of southern states in India by adding a much needed 1600 MW to the electricity grid.

Under the scope of the contract ABFPPL will manufacture and supply two units of 800 MW Steam Turbine Generator Islands along with the associated civil work. The equipment for the project will be manufactured at ABFPPL's manufacturing facility at Sanand in Gujarat. The announcement was made after market hours yesterday, 7 June 2016.

GMR Infrastructure (GIL), a leading global infrastructure conglomerate led consortium, has been awarded two more packages on the long Eastern dedicated freight Corridor.

The consortium has been issued a Letter of Award for construction of 221 kilometre (km) long Eastern Dedicated Freight Corridor railway project at a cost of Rs 2280.70 crore on engineering procurement and construction (EPC) basis.

GMR Group is not required to provide significant investment for the project since it is implemented on EPC basis. Earlier in April 2016, GMR led consortium emerged s the successful bidder amongst a total of six bidders for the project through an international competitive bidding process.

The project funded by World Bank is divided into two packages. The first package comprises of 175 km single line connecting Sahnewal and Pilkhani that passes through Uttar Pradesh, Haryana and Punjab. The other package is a 46 km double line corridor in Uttar Pradesh connecting Dadri and Khurja.

The scope of work in the recently bagged project involves design and construction of civil, structures and track works for single/double line on design-build lump sum basis. The announcement was made after market hours yesterday, 7 June 2016.