Oil India up 1%; consortium to buy 23.9% stake in Vankorneft

An Indian consortium, led by Indian Oil Corporation (IOC) along with Oil India (OIL) and Bharat Petro Resources (BPRL), a 100% subsidiary of Bharat Petroleum Corporation (BPCL), have signed definitive agreement to acquire upto 23.9 per cent shares from Rosneft Oil Company (Rosneft), NOC of Russia in JSC Vankorneft, a company organised under the law of Russian Federation which is the owner of Vankor and North Vankor Field licenses.

Oil India Ltd stock was up by 1% at Rs. 352. An Indian consortium, led by Indian Oil Corporation (IOC) along with Oil India (OIL) and Bharat Petro Resources (BPRL), a 100% subsidiary of Bharat Petroleum Corporation (BPCL), have signed definitive agreement to acquire upto 23.9 per cent shares from Rosneft Oil Company (Rosneft), NOC of Russia in JSC Vankorneft, a company organised under the law of Russian Federation which is the owner of Vankor and North Vankor Field licenses.

The scrip opened at Rs. 349.35 and has touched a high and low of Rs. 354.75 and Rs. 348 respectively. So far 38186(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 21042.76 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 478 on 23-Jun-2015 and a 52 week low of Rs. 300.5 on 01-Mar-2016. Last one week high and low of the scrip stood at Rs. 358 and Rs. 346.85 respectively.

The promoters holding in the company stood at 67.64 % while Institutions and Non-Institutions held 17.13 % and 15.22 % respectively.

The stock is currently trading above its 200 DMA.

Consumer sentiment in China remains strong despite slowing economic growth and market volatility: BCG

Consumer sentiment, conducted by BCG’s Center for Customer Insight, found that three quarters of Chinese consumers plan to maintain or increase the level of their spending in 2016 down only slightly from 81% in 2015, according to BCG’s latest survey.

Despite slowing economic growth and market volatility, China’s consumers continue to spend, albeit a bit slower at the moment, and consumption growth remains on a staggering trajectory, according to new research by The Boston Consulting Group (BCG). BCG’s latest survey of consumer sentiment, conducted by BCG’s Center for Customer Insight, found that three-quarters of Chinese consumers plan to maintain or increase the level of their spending in 2016 down only slightly from 81% in 2015. 
 
The two principal drivers of growth in consumption are consumers’ ability and their willingness to spend more. The ability to spend remains strong: more than 40% of Chinese urban households today are firmly in the middle class and affluent (MAC) category. The willingness to spend is strong as well, but it’s down from its peak in 2007 as slowing household-income growth takes a modest toll. Household income growth declined to 8.7% in the first quarter of 2016 from 9.4% a year earlier, a result of the slowdown in the industrial sectors of the economy, which is leading to a more cautious stance among many consumers employed in these sectors. 
 
“Even as sentiment moderates a bit, it is important to note that we are looking at a slowdown in consumption growth,” said Jeff Walters, a BCG partner who oversaw the research. “Consumption in 2016 will be tantamount to consumers’ moving from the fast lane to the middle lane on the economic highway. They are not pulling into the breakdown lane.” 
 
The forces behind rising consumption
Two of the forces behind continuing strong consumption in China are the rise of upper-middle-class (UMC) households and small-city MACs, and the emergence of a new generation of younger, freer-spending, sophisticated consumers. By 2020, the number of UMC and affluent households will have almost doubled to about 100 million and will account for 30% of the urban population. The spending intentions of this group remain constant, and the spending growth rate is rapid at 17%. Almost 30%—the same as in 2015—are planning to spend more this year. A big reason for the spending resilience among UMC and affluent consumers is that half of UMC consumers and three-quarters of affluent consumers are employed in the high-end service sector. Consumers in the emerging middle class, middle class, and aspirant categories, whose spending has been growing at 5%, indicated that some belt tightening was in order. Only about a quarter of these consumers intend to spend more in 2016. 
 
China’s “young generation” is growing quickly in both numbers and income. Those aged 18 to 30 years old will likely make up more than one-third of the urban population by 2020. Their consumption is growing at a 14% annual rate—twice the pace of the “last generation,” those older than 35. The young generation’s share of total consumption is projected to increase from 45% to 53% by 2020. 
 
These consumers, for the most part, grew up during a time of expanding wealth as China made the transition to a market-based economy. One result is that they are notably more aggressive in their spending intentions: 60% agree with the statement, “It seems like every year, there are more things I want to buy.” UMC young-generation consumers are particularly freewheeling. Almost two-thirds believe, “Some products are just too important to me to scrimp on.” One constraint on their intentions may be wages: many young-generation workers are employed in lower-paying retail and commercial-service sector jobs than their last-generation counterparts. 
 
Home values trump stock market turmoil
Recent stock market volatility has little impact on Chinese consumers’ daily lives, including consumption. More than half of China’s consumers see the market volatility as normal; more than 40% consider the recent volatility a correction to the stock market bubble that formed after a sustained period of strong growth. For almost half of consumers, stock market gains or losses do not affect consumption. About 70% of urban households do not invest in stocks, and those that do have both higher incomes and higher likelihood of increasing spending than those that do not. 
 
Housing-market stability is a much more critical consideration for Chinese consumers, who continue to be optimistic about housing prices. More than 80% of urban households own their homes, and 60% of these homeowners are sitting on unrealized gains in value. Almost 60% of consumers expect home values to rise in one to two years, and one-third said that they would buy property in one to two years. Younger and more affluent consumers and those living in midtier cities are the most optimistic: almost two-thirds of young-generation, UMC, and affluent and midtier consumers expect housing prices to increase in the next one to two years. 
 
Consumers continue to trade up
Chinese consumers like to trade up, but the mix of objects of their desire is undergoing some transition. Infant and baby products, consumer electronics, and financial services remain the three categories in which consumers are most likely to trade up. Personal-care products—such as for skin care and beauty—and travel and vacations are moving up the list. Cars and durable goods are moving down, perhaps indicating that consumers are manifesting some uncertainty in the current environment by postponing trading up in big-ticket categories.

Axis Bank leaves the MCLRs unchanged; stock down 1.4%

The bank said that the bank's marginal cost of funds based lending rate (MCLR) for overnight loans, will be 8.95%. The rate for one month will be 9.05% and for three months it will be 9.25%.

Axis Bank slipped 1.4% to Rs.519.50. The bank said that the bank's marginal cost of funds based lending rate (MCLR) for overnight loans will be 8.95%. The rate for one month will be 9.05% and for three months it will be 9.25%.

The MCLR on 6-month loans will be 9.3% and for one-year loans the rate will be 9.35%, the bank said.

MCLR on two-year loans will be 9.45% and for three-year loans the rate will be 9.5%.

The scrip opened at Rs. 516 and has touched a high and low of Rs. 523.4 and Rs. 515.1 respectively. So far 3073809(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 125692.92 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 613.4 on 16-Jul-2015 and a 52 week low of Rs. 366.65 on 18-Jan-2016. Last one week high and low of the scrip stood at Rs. 535.05 and Rs. 516.5 respectively.

The promoters holding in the company stood at 29.73 % while Institutions and Non-Institutions held 56.64 % and 10.27 % respectively.

Rupee crashes to 1-month low; opens at 67.65/$

The Indian rupee opened lower by 57 paise at 67.65/$ against US Dollar on Monday as against the previous close of 67.08/$.

The Indian rupee opened lower by 57 paise at 67.65/$ against US Dollar on Monday as against the previous close of 67.08/$.

On the economy front, Raghuram Rajan made public his intention of returning to academia after the end of his term in September. There are seven candidates to replace Reserve Bank of India governor Raghuram Rajan, according to reports.

Globally, markets are bracing for increased volatility and heavy trading, as investors position themselves to parse out the consequences of a Brexit vote. British PM warned that British exit from the EU would push the country into a huge recession.

The Indian currency ended higher by 13 paise at 67.08/$. The local unit had hit a high of 67.45 and a low of 67.78. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.16 and for Euro stood at 75.45. The RBI’s reference rate for the Yen stood at 64.39; reference rate for the Great Britain Pound (GBP) stood at 95.5535.

RBI will survive any Governor, says outgoing Rajan

Rajan has been often hailed as the ‘rockstar central banker’ ever since becoming RBI Governor in September 2013.

Reserve Bank will survive any Governor and it is important not to “personalise this office”, the outgoing Raghuram Rajan reportedly said.

Report says Rajan has been often hailed as the ‘rockstar central banker’ ever since becoming RBI Governor in September 2013.

Rajan has also been often praised for containing inflation to a large extent and for forcing the banks to do a “deep surgery” to clean up their books of bad loans.

Top 22 stocks in focus today: Cipla, Gammon India, SpiceJet

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

Cipla: Cipla has signed a Memorandum of Understanding with Russia's National Immunobiological Company to collaborate on HIV and Hepatitis C drugs, entailing an investment of 2.8 billion roubles (around Rs.289 crore).

Indian Oil Corporation: An Indian consortium, led by Indian Oil Corporation (IOC) along with Oil India (OIL) and Bharat Petro Resources (BPRL), a 100% subsidiary of Bharat Petroleum Corporation (BPCL), have signed definitive agreement to acquire upto 23.9% shares from Rosneft Oil Company (Rosneft), NOC of Russia in JSC Vankorneft, a company organised under the law of Russian Federation which is the owner of Vankor and North Vankor Field licenses.

NTPC: NTPC is planning to sell rupee-denominated offshore green bonds to raise up to $250 mn by the end of July, according to reports.

SpiceJet: SpiceJet will offer passengers the option of booking a taxi to reach the airport at the time of ticket purchase, according to reports.

Gammon India: Gammon India reported a net profit of Rs.53.38 crore for the quarter ended March 31, compared to a net loss of Rs.73.53 crore reported in the corresponding quarter of last fiscal.

Srei Infrastructure Finance:  The company announced that it has consolidated 100% shareholding in Srei Equipment Finance Limited ("SEFL").

Aurobindo Pharma: The pharma company has received tentative approval from US Food and Drug Administration for generic version of Astrazeneca's Prilosec drug, according to media report.

Realty stocks in focus: Securities and Exchange Board of India has proposed relaxing real estate investment trust norms, including allowing investment of up to 20% of their funds in under-construction assets, among other things.

HDFC: HDFC is planning to raise Rs.500 crore by issuing secured redeemable non-convertible debentures through private placement.

JSPL: Jindal Steel and Power Ltd is seeking shareholders nod to divest 1,000 mega watt (MW) power plant of a subsidiary company and sale of its 920 MW captive power plants.

Larsen & Toubro:  L&T wholly-owned subsidiary L&T Hydrocarbon Engineering has bagged orders worth Rs11.70bn across business verticals.

Centum Electronics: The company has acquired French company Adetel Group for an undisclosed sum.

UCO Bank: UCO Bank board has approved a proposal for raising Rs.42.43 billion Tier I Capital through issue of bonds and equity shares.

Mahindra & Mahindra Financial Services: The company is planning to raise up to Rs.245 billion through issuance of non-convertible debentures (NCDs).

Tata Steel:  Tata Steel aims to ramp up production at the Kalinganagar unit in Odisha “quickly”, as per media report.

Subros: The company said it has resumed full supplies to Maruti Suzuki India (MSI) from the company’s other facilities in Noida, Pune and Chennai.

Eros International: Eros International  announced a television syndication deal for their new and catalogue films with Zee Network.

Tata Chemicals: The company has decided to supply Di-ammonium Phosphate (DAP) to its customers from inventory in hand and imports, and consequently production of complex fertilisers, including DAP, is being temporarily suspended at Haldia, West Bengal.

Jaiprakash Power:  The Board of Directors at its meeting held on June 17, 2016, considered the recommendations of the Committee of Directors /Audit Committee and agreed to call for additional inputs before taking the decision for the proposed transfer of Company’s Jaypee Bina Thermal Power Plant to its subsidiary company.

Siemens: The company has bagged an order worth EURO 130 million, to set up a high voltage direct current (HVDC) link to connect power supply networks of India and Bangladesh.

Coal India: The Board of Directors of Central Coalfields Limited, the Company's subsidiary, at its meeting held on June 16, 2016 has considered and approved the buyback of 2350000 fully paid equity shares of face value of Rs. 1000/- each.

HCL Technologies:  HCL Technologies has signed a strategic IT partnership contract with LeasePlan. Under the terms of agreement, HCL will create Group Competency in collaboration with LeasePlan Information Services to provide IT solutions in various domains such as core leasing platforms, business intelligence and data warehousing solutions, enterprise IT solutions, and application development & maintenance services.