Tata Consultancy Services gains on unveiling digital wallet app 'QuickPass

Tata Consultancy Services is currently trading at Rs. 1497.05, up by 5.35 points or 0.36% from its previous closing of Rs. 1491.70 on the BSE.

The scrip opened at Rs. 1494.05 and has touched a high and low of Rs. 1506.90 and Rs. 1474.00 respectively. So far 2,830 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 1598.00 on 07-Mar-2013 and a 52 week low of Rs. 1175.50 on 17-Jul-2012.

Last one week high and low of the scrip stood at Rs. 1525.00 and Rs. 1382.10 respectively. The current market cap of the company is Rs. 2,93,005.00 crore.

The promoters holding in the company stood at 73.96% while Institutions and Non-Institutions held 21.58% and 4.46% respectively.

Tata Consultancy Services (TCS), the leading IT services, consulting and business solutions organisation, has launched the latest innovation from its insurance vertical with the release of TCS Insurance QuickPass - an app that allows insured drivers to maintain a true digital wallet that includes a digital version of their insurance card and other critical policy and resource information on their smartphones.

This new solution not only eliminates the need for printing insurance cards and reduces the risk of losing valuable information, but empowers users to access all of their current insurance policies. Users can take and store photos and carry their review policy details anywhere, anytime. These end user benefits will help insurance companies increase customer satisfaction and loyalty by providing consumers with a solution they both want and need.

26 in queue for bank licence

The 13th floor of the Reserve Bank of India’s headquarters in South Mumbai on Monday saw an unusual sight: Many visitors carrying huge cartons filled with documents lining up before the office of Chandan Sinha, chief general manager-in-charge, department of banking operations & development.

The documents, some running into more than 20,000 pages, were part of the applications for banking licences, the deadline for which expired on Monday.

A total of 26 applications were received, including those from the usual corporate heavyweights like L&T, the Tata group (Tata Sons has applied, not Tata Capital), Reliance Capital, Aditya Birla Nuvo, Bajaj Finserv, Videocon (in the name of Aurangabad-based Value Industries), apart from infrastructure financier IDFC, gold loan company Muthoot Finance, realty developer Indiabulls, micro financier Bandhan and Bangalore-based Janalakshmi. SKS Microfinance, India’s only listed microfinance company, was absent, though its chief financial officer had said it would consider applying.

Among surprise entries were Noida-based little-known Smart Global Ventures and Gurgaon-based advisory services firm INMACS Management. UAE Exchange India, a remittance and foreign exchange services firm and Suryamani Financing, part of the Kolkata-based Pawan Kumar Ruia group also joined the fray.

The Department of Posts, Tourism Finance Corporation and government-owned financial institution IFCI were among the public-sector entities that applied.

Apart from these, India Infoline, Religare, Edelweiss, Magma Fincorp, Muthoot Finance and SREI Infra Finance were also on the list of aspirants. In a statement issued on Monday, India Infoline said former Corporation Bank chairman, V K Chopra, would head its banking foray.

The central bank has not formally communicated how many licences it will issue but sources indicate the number is unlikely to exceed eight.

This is the first time in more than a decade that banking licences will be issued. This is also the first time that corporate and industrial houses are being considered for entering the sector. Earlier, new banks had been allowed to be set up on the basis of 1993 guidelines and 2001 norms.

While the banking regulator has not set a timeline by when it will issue the licences, finance ministry officials indicate those are likely to be given by the end of the current financial year.

After the expiry of the deadline on Monday, the applications will now be screened by RBI to ensure prima facie eligibility of applicants. After the screening, the applications will be referred to a high-level advisory panel to be set up by RBI. The committee will comprise eminent people with experience in the banking & financial sector and other relevant areas. The constitution of the committee, which could ask for more information from the applicants, has yet to be announced.

The high-level panel will submit its recommendations to RBI for consideration. After getting in-principle approval, an entity will get 18 months to set up a bank. RBI had also clarified that new banks will have to comply with all the norms regarding reserve requirements and priority sector from their inception.

According to RBI, private players aspiring to enter the banking space need to create a non-operative financial holding company (NOFHC).

“The requirement is that not less than 51 per cent of the voting equity shares of the NOFHC shall be held by companies in the promoter group, in which the public hold not less than 51 per cent of the voting equity of such companies,” RBI had said in its clarifications on final guidelines for new banking licences.

Asian stocks perkier, Nikkei extends gains

Asian stocks rose on Tuesday with Tokyo's Nikkei extending gains after encouraging manufacturing data in Europe and the United States helped cheer a market fretting about a slowing Chinese economy. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5% in early trade, reversing Monday's 0.3% fall. Australian shares  climbed 1.8%, while South Korean stocks edged up 0.1%.

Japan's Nikkei was up 0.9% at its highest since late May, adding to Monday's 1.3% gain. "We will likely continue to test strong levels," said Kenichi Hirano, operating officer at Tachibana Securities. "A weaker yen has become the normal condition, and stock prices are showing a tendency to gradually rise." The lighter mood in Asian bourses followed a rise on Wall Street, which took heart after data showed US manufacturing expanded last month, while construction spending neared a four-year high in May.

Also encouraging, factory activity in Europe showed signs of stabilisation last month, and British manufacturing recorded its strongest growth in more than two years. All these reports helped offset some disappointment over China, whose own survey on Monday showed a further slowdown in factory activity. The reports also highlight an improving trend for the US economy that could see the Federal Reserve keep to guidance that it could start dialling down stimulus later this year.

Analysts said that should keep the US dollar on an upward trajectory over the medium- to longer- term."As the US economy pulls ahead of Europe and Japan, and the Fed changes course, the dollar is at the start of a multi-year rally," said Kit Juckes, strategist at Societe Generale.

Juckes said the dollar index, which tracks the greenback's performance against a currency basket, can rise by 10-15% over the medium/longer term.

For now though, the dollar index was taking a bit of a breather having jumped 3.5% from June 19 to June 28 to reach a one-month peak. It was last down 0.1% at 82.996 , just off Friday's high of 83.344.

Against the yen, the dollar hovered near a one-month high of 99.87, while the euro edged up 0.1% to $1.3070.

The big mover was the Australian dollar, which bounced to $0.9240 from a 33-month trough of $0.9110 as investors trimmed bearish positions following a bruising 4.7% tumble in June.

The steep fall in the currency, which in itself is stimulatory for the economy, is a key reason many economists expect the Reserve Bank of Australia (RBA) will keep its cash rate steady at a record low 2.75% later on Tuesday.

Only 2 out of 23 economists polled by Reuters see the RBA lowering its cash rate to 2.5% and markets are giving a less than one-in-five chance of a rate cut. The outcome of the meeting is due at 0430 GMT.

In the commodities, copper slipped 0.5% to $6,943 per tonne while US crude was steady at $97.95 a barrel.

Spot gold hovered at around $1,251 an ounce, continuing to consolidate after a horror quarter in which it slumped 23%, its worst performance in 45 years.

Diesel prices hiked by 50 paise/litre, excluding VAT

After petrol price hike of Rs 1.82 per litre on Friday, Indian Oil Corporation today announced a hike in diesel prices by 50 paise per litre, excluding VAT with effect from midnight tonight.

This is the seventh hike in diesel price since January when the government authorised state-owned oil firms to increase prices by up to 50 paisa per litre every month till entire losses on the fuel are wiped out.

Oil India to acquire stake in Videocon Mozambique Rovuma

Oil India Limited, along with ONGC Videsh Limited ("OVL"), has signed definitive agreements in Singapore on 25th June 2013 with Videocon Mauritius Energy Limited to acquire 100% of shares in Videocon Mozambique Rovuma 1 Limited, the company holding a 10% participating interest in the Rovuma Area 1 Offshore Block in Mozambique ("Area 1"), for US$ 2.475 Bn.

The acquisition is expected to be implemented via a newly incorporated special purpose vehicle jointly owned by OIL and OVL. The acquisition is subject to the approvals of the Governments of Mozambique and India, relevant regulatory approvals, pre-emption rights and other customary conditions. The transaction is expected to close in the fourth quarter of 2013.

Area 1 covers approximately 2.6 million acres in the deepwater Rovuma Basin offshore Mozambique and represents the largest gas discovery offshore East Africa with estimated recoverable resources of between 35 and 65 TCF as per operator's estimates. Partners in Area 1 include Anadarko, operator of the project, ENH, Mitsui, BPRL and PTTEP. Area 1 has the potential to become one of the world's largest LNG producing hubs with first LNG expected in 2018.

The Area 1 LNG project is strategically located to competitively supply LNG to India, and OIL's and OVL's participation in the project will facilitate access to the growing Indian gas market which will supplement the country's energy security endeavour. OIL and OVL will also devote significant financial and technical resources to the development of the project. This investment is expected to further enhance the strong business and cultural links between Mozambique and India.

This investment provides an early entry for OIL into one of the world's largest natural gas assets. It will significantly enhance OIL's Reserves base improving the longer term growth prospects of the Company. OIL's Chairman & Managing Director, Mr. S. K. Srivastava said, "This acquisition is in line with our Strategic 2020-21 Plan which has a strong focus on inorganic growth across the energy value chain. It will also provide us with first hand experience of setting up and operating a deep water natural gas field and LNG plant, while further helping in addressing the growing energy requirements of our country. This is a high quality world class asset with one of the largest discovered resource base, which combined with its locational advantage makes this a highly attractive investment proposition for us." Mr. T. K. Ananth Kumar (Director - Finance) and Mr. N. K. Bharali (Director - HR&BD) led the Oil India team in the successful execution of this important transaction.

Morgan Stanley is acting as the exclusive financial adviser, Halliburton as Technical consultants, Ernst & Young as tax and accounting adviser, Simmons & Simmons as legal adviser to OIL for this transaction.

BSE Sensex was trading at 19545, while Nifty was quoting at 5,880

At 9:16 am (IST), the BSE Sensex was trading at 19545, down 32 points over the previous close. It had earlier touched a day's high of 19573 and a day's low of 19529. It opened at 19675.
The NSE Nifty was quoting at 5,880, down 18 points over the previous close. It earlier touched a day’s high of 5,890 and a day’s low of 5879. It opened at 5,885.
The BSE Small-Cap index and BSE Mid- Cap index was trading flat at 0.19% and 0.9%.
Infosys, TCS,  Wipro, Bajaj Auto, Tata Steel, ONGC, Hero MotoCorp, are among gainers in Sensex and Nifty.

RIL, Bharti Airtel, HDFC Bank, Tata Power, Cipla, Coal India, Gail India, Tata Motors, Hero MotoCorp, Maruti,  Jindal Steel, Mahindra & Mahindra, are among losers in Sensex and Nifty.
Oil and gas, IT, Teck, Healthcare indices are the gainers.
Bankex, FMCG,  PSU, Capital Goods, Consumer Durables, Metal, Power indices are the losers.

RCOM completes full repayment of two Syndicated ECB Loan facilities aggregating US$ 1 Billion

RCOM completes full repayment of two Syndicated ECB Loan facilities aggregating US$ 1 Billion:    
         
Reliance Communications today announced it has completed full repayment of two Syndicated ECB loan facilities of US$ 500 Million each, aggregating US$ 1 billion, during the quarter ended 30th June 2013. These loans were availed in the year 2007 from a group of international banks.


RCOM makes scheduled repayments of another US$ 207 million against other foreign currency loans :
            In addition, RCOM has made scheduled repayments of another US$ 207 million (Rs. 1,200 crore) in respect of other foreign currency loans, on the respective due dates during the quarter ended 30th June, 2013. The repayments have been from RCOM’s rupee resources.

           RCOM’s foreign currency debt is steadily declining every year, and the interest outgo on such debt is fully covered by US$ denominated earnings from the Reliance Globalcom business. 

Hero Moto to buy 49% stake in Erik Buell Racing for $25m

India's largest two-wheeler maker Hero MotoCorp is investing USD 25 million in US-based motorcycle maker Erik Buell Racing to buy a 49.2 percent stake.

Hero has  incorporated a wholly owned subsidiary HMCL (NA), Inc in United States, which is investing in EBR.

The first tranche of USD 15 million has been invested by HMCL (NA) on June 28, and the second tranche of USD 10 million is proposed to be invested within the next 9 months, it said.

Hero and Japan's Honda had ended a long-standing joint venture in India in 2010, post which Hero started scouting for technology to power its motorcycles.

It signed a technology sharing deal with EBR in February 2012. The East Troy, Wisconsin-based company makes customised superbikes and Hero had said the two companies were working together to develop sports bikes.

Hero is also developing the concept hybrid scooter Leap, which was showcased at the Delhi Auto Expo last year, in collaboration with EBR, the compay had said.

Hero MotoCorp shares is up by 0.90 % at Rs 1,679.10 on NSE.

Petrol gets dearer again; prices hiked by Rs1.82 per litre

Sharp depreciation of rupee have forced the state run fuel retailers to hike petrol prices for the third time this month by Rs 1.82 a litre, excluding local sales tax or VAT, on Friday midnight.  Oil firms had on June 1 first raised petrol prices by 75 paise, excluding VAT and then followed with steep Rs 2 per litre hike on June 16. Thus, with this latest hike, petrol price, in Mumbai, have been increased by Rs 2.30 to Rs 76.90 while in Kolkata rates is up from Rs 73.79 to Rs 76.10 per litre. In Chennai, prices are hiked by Rs 2.32 to Rs 71.72. Most importantly, latest increase negated the four reductions this year till May.

However, this is not the only factor which would burn a hole in one’s pocket, diesel prices too are set to be raised by 40-50 paise per litre by this week in accordance with the government's January decision to gradually move to market pricing with gradual hikes.

The depreciating rupee has prompted widening of losses on diesel and cooking fuel. Oil firms are now losing Rs 8.60 per litre on diesel compared to Rs 6.31 previously. Diesel prices, uptill now, have been hiked on five occasions since January when the government authorized state-owned oil firms to increase prices by up to 50 paisa per litre every month till entire losses on the fuel are wiped out. Besides, Oil firms are losing Rs 30.53 per litre on kerosene sold through public distribution system and Rs 368.50 per 14.2-kg cooking gas cylinder.

Reliance Infra to exit Delhi Airport Metro on June 30

Anil Ambani Group company Reliance Infra has stated that it will stop operating the Delhi Airport Metro from midnight on June 30. The metro line links Delhi’s international airport with central Delhi.

The public private partnership project is operated by Delhi Airport Metro Express Pvt Ltd (DAMEPL), a special purpose vehicle promoted by Ambani’s Reliance Infra. The company has been battling mounting losses, which are nearing the Rs 300-crore-mark.

LONG-RUNNING SAGA

This is not the first time that the operator has issued such a termination notice to the Delhi Metro Rail Corporation (DMRC). The DMRC Board, which met on Friday to consider the issue, rejected the termination notice, stating that it was
against the contract.

DMRC also added that it would operate the project if Reliance stepped out.

After a meeting of the Delhi Metro Board, Sudhir Krishna, Secretary, Urban Development Ministry, stated: “The notice (by Reliance Infra) is in violation of the concession agreement and the ongoing arbitration proceedings. The Board decided to reject the notice and call upon them to continue operations. If, however, they do not do so, DMRC shall step in and operate the line in the larger public interest.”

Meanwhile, arbitration proceedings, over who was responsible for the metro link’s closure for almost six months last year, continue. Insiders say that the operator is maintaining that the reason for the termination notice is not financial but breach of contract by Delhi Metro.

After getting the termination notice, Delhi Metro had pointed out there are three options: First, the line remains closed; second, lenders, led by Axis Bank, bring back DAMEPL or substitute the developer; and third, Delhi Metro starts operations and maintenance of the project, including absorbing the staff of DAMEPL for the time being.

DEBT REPAYMENT

However, in case the concession agreement is terminated, and DMRC has to manage the entire debt of about Rs 2,000 crore, then DMRC wants the Central Government and Delhi Government to arrange the money.

The stance of the Centre and Delhi Government on this issue is not yet clear. One view is that Delhi Metro should itself arrange for funds to operate the line and also come up with a viable plan for the line.

While Delhi Metro had projected that the line would have a daily ridership of 40,000 people, actual ridership is about a fourth of that, at around 10,000, said an official source.