Integrated Power Development Scheme gets cabinet approval

The launch of Integrated Power Development Scheme (IPDS) aimed at improving India’s sub-transmission and distribution network has finally got the Union Cabinet approval. The programme entails an investment of Rs 32,612 crore and requires a budgetary support of Rs 25,354 crore for the entire duration. The earlier scheme "Restructured Accelerated Power Development and Reforms" for 12th and 13th Plans will get subsumed in this new scheme. The estimated cost of IPDS will include components of strengthening of sub-transmission and distribution networks, including metering of consumers in the urban areas. The scheme will help in reduction in AT&C losses, establishment of IT enabled energy accounting / auditing system, improvement in billed energy based on metered consumption and improvement in collection efficiency. Along with IPDS the cabinet has also approved Deen Dayal Upadhyaya Gram Jyoti Yojana, North Eastern Region Power System Improvement Project, and a framework agreement for energy cooperation among SAARC members. The North Eastern Project is to strengthen the intra state transmission and distribution system for Assam, Manipur, Meghalaya, Mizoram, Tripura and Nagaland at an estimated cost of Rs 5,111.33 crore, while the Deen Dayal project is for the rural areas, the scheme will replace the existing Rajiv Gandhi Grameen Vidyutikaran Yojana. It is aimed at ensuring around eight hours of quality power supply to agricultural consumers and 24-hour electricity to households.

Nouveau Global Ventures forays into teleshopping, e-commerce business

Nouveau Global Ventures has entered into teleshopping and e-commerce business by signing a MOU. The company has entered into a Memorandum of Understanding (MOU) with principal vendor overseas of Naaptol Online Shopping (Naaptol) and Naaptol which is one of the leading home shopping companies in India and a one shop destination for shoppers, merchants and market enthusiasts, thus helping customers to choose from various products in categories ranging from apparel, electronics, home furnishings, kitchen appliances, furniture, etc.  Under this MOU, Nouveau Global Ventures FZE incorporated in Ras Al Khaimah Free Trade Zone, Dubai, of Nouveau Global Ventures will act as a Carrying and Forwarding Agent (CFA) of principal vendor overseas of Naaptol in all the sovereign countries covered in Gulf Co-operation Council (GCC), South Asian Association for Regional Co-operation (SAARC) and Middle East and North Africa (MENA). Founded in 2008, Naaptol, a leading virtual-commerce platform has immensely revolutionized the online shopping and is now the leader of home shopping platform and a top product research engine, while Nouveau Global Ventures is presently engaged in the business of acquisition and trading of media telecast rights over national and regional TV channels.

Jindal Saw’s UAE arm raises Rs 775 crore: Report

Jindal Saw’s subsidiary, Jindal Saw Middle East FZC (JSME) has reportedly raised Rs 775 crore for its long term requirements by selling a club facility. JSME has a large facility in Abu Dhabi (UAE) to produce ductile iron (DI) pipes. It also provides techno-economic products and solutions for water transportation and sewage systems in the wider MENA region. JSME has the approval for supply of its DI pipes from many Middle East and North Africa countries. The Commercial Bank of Dubai PSC, Commercial Bank International PSC, Emirates NBD PJSC and Mashreqbank PSC acted as mandated lead arrangers and book runners. Alpen Capital (ME) was the financial advisor to the transaction. Jindal Saw is in a commanding position in India's tubular market, being the undisputed leader with a turnover in excess of Rs 7,000 crore. The business operations are highly structured with three strategic business units: large diameter pipes, seamless tubes, and DI (ductile iron) pipes. Every SBU has its own dedicated sales and marketing targets and operations.

Arvind to expand presence of its ‘The Arvind Store’

Arvind is looking to expand the presence of its ‘The Arvind Store’ to 165, from the existing 142, by the end of this fiscal. Expansion, mostly through the franchise model, will have specific focus on Tier-II, III, IV, V cities and towns. While, regular stores are approximately 1500 sq ft in size; flagships are around 4,000 sq ft. Currently, around 55 per cent of the demand in The Arvind Stores is for fabric; while the remaining is for branded apparels. The Arvind Store offers mid to premium range shirting and suiting fabrics apart from three of its fast-moving brands - Arrow, US Polo Association and Flying Machine.

Infosys features as a leader in Gartner’s Magic Quadrant

Infosys, a leader in consulting, technology, outsourcing and next generation services, has been positioned as a leader in Gartner’s Magic Quadrant for International Retail Core Banking report. The company has been positioned following the evaluation of Finacle Core Banking Solution. This is the eighth time in a row that Infosys has been named a leader in this Magic Quadrant. The evaluation began with 63 product candidates for the 2014 Magic Quadrant, and resulted in a qualified group of 20 vendor/product offerings that represent the major movers in the retail core banking system market. Infosys is highest in execution and furthest in vision within the Leaders Quadrant. Infosys is a global leader in consulting, technology and outsourcing solutions. The company enables clients, in more than 30 countries, to stay a step ahead of emerging business trends and outperform the competition.

Hester Biosciences trades jubilantly on acquiring 100% stake in Gujarat Agrofarm

Hester Biosciences is currently trading at Rs. 420.25, up by 17.55 points or 4.36% from its previous closing of Rs. 402.70 on the BSE.

The scrip opened at Rs. 420.00 and has touched a high and low of Rs. 423.25 and Rs. 405.00 respectively. So far 1977 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 471.70 on 11-Sep-2014 and a 52 week low of Rs. 78.10 on 05-Feb-2014.

Last one week high and low of the scrip stood at Rs. 423.25 and Rs. 363.00 respectively. The current market cap of the company is Rs. 342.57 crore.

The promoters holding in the company stood at 53.81% while Institutions and Non-Institutions held 0.14% and 46.05% respectively.

Hester Biosciences has acquired 100% share holding of Gujarat Agrofarm for Rs 52.50 lakh. Gujarat Agrofarm, a company located in Gujarat, is involved in the manufacturing of growth media.

This backward integration by Hester aims at securing for itself a source of growth media used in the production of vaccines.  The acquisition would enable Hester in saving over Rs 1.50 crore annually towards growth media procurement costs.

Hester Biosciences is a 100% biotech company producing animal biological. Hester has a state-of-the-art facility to produce live and killed (Inactivated) veterinary vaccines.

Crude oil futures bounce back on good economic data

Crude oil futures made a sharp rebound on Thursday amid speculation the OPEC may cut production to keep a check on prices at its meeting in Vienna next week. There were some positive economic data that too supported the prices. A Federal Reserve Bank of Philadelphia report showed its manufacturing activity index jumped to its highest level in over twenty years in November, while a Conference Board index of leading U.S. economic indicators rose more than anticipated in October. Traders overlooked the preliminary weak reading on Chinese manufacturing activity in November and euro zone private sector growth.

Benchmark crude oil futures for January delivery gained $1.35 or 1.8 percent to close at $75.85 a barrel after trading in a range of $75.90 and $74.20 a barrel on the New York Mercantile Exchange. In London, Brent oil futures for January delivery gained 0.88 percent to $78.79 a barrel on the ICE.

FIIs were net buyers of Rs 1164.81 crore in index futures and options segments on November 20

According to the data released by the NSE, the Foreign Institutional Investors (FIIs) were net buyers of Rs 1164.81 crore in index futures and options segments, as per Thursday’s data, November 20, 2014.

FIIs were buyers of index futures to the tune of Rs 227.21 crore and they bought index options worth Rs 937.60 crore. In the stock segment, FII’s were net sellers of stock futures worth Rs 308.50 crore, while they sold stock options worth Rs 64.22 crore.   

US markets closed up on signs of strengthening economy

The US markets closed higher on Thursday, as data showed improvements in the American economy which overshadowed concern over weaker growth overseas. On the economy front, the number of people who applied for new unemployment benefits totaled fewer than 300,000 for the 10th straight week, reflecting the low level of layoffs in the US economy as growth gradually picks up. Initial jobless claims fell by 2,000 to a seasonally adjusted 291,000 in the week ended November 15. Over the past month, meanwhile, the average of new claims rose by 1,750 to 287,500. The four-week average reduces seasonal volatility in the weekly data and is seen as a more accurate barometer of labor-market trends. Also, Labor stated that continuing claims decreased by 73,000 to a seasonally adjusted 2.33 million in the week ended November 8. Continuing claims reflect the number of people already receiving benefits. The Philadelphia Fed’s manufacturing index jumped to 40.8 in November from 20.7 in October. This is the highest reading of activity since December 1993. Any reading above zero indicated expansion. Both new orders and shipments rose sharply in November. Labor market indicators also improved. The two price measures moderated. Besides, the leading economic index jumped 0.9% in October, the Conference Board stated, after a gain of 0.7% in September and a flat reading in August. The upward trend in the LEI points to continued economic growth through the holiday season and into early 2015. The leading economic index is a weighted reading of 10 different indicators. Sales of existing homes rose 1.5% in October to a seasonally adjusted annual rate of 5.26 million, the highest level since September 2013, supported by low interest rates, more homes on the market and slower price growth. Separately, US consumer prices were flat in October as plunging gasoline costs offset increases in housing, medical and airline fares. The pace of inflation over the past 12 months was unchanged at 1.7% in October, but that’s down from two-year high of 2.1% earlier in the year. Energy prices dropped a seasonally adjusted 1.9% - the fourth straight decline - led by a 3% reduction in gasoline. Food prices rose 0.1%, the smallest gain in fourth months. The core CPI, which excludes volatile food and energy costs, rose by 0.2% last month. Americans are paying more for housing, especially rent, while costs also increased last month for household furnishings, airline tickets and medical care, including prescription drugs. However, the Markit Economics flash manufacturing purchasing managers index for the US fell to a 54.7 reading in November from 55.9 in October. This is the third straight monthly decline in the index, which is similar in design to the Institute for Supply Management manufacturing index. The index is now at its lowest level since January although any reading above 50 indicates expansion. Meanwhile, Federal Reserve Bank of St. Louis President James Bullard stated that low inflation in the US economy is no longer enough to justify the current rock bottom setting for short-term interest rates, and he repeated his view that rates should be lifted off their current near zero levels early next year. Bullard added that labor markets continue to improve and are approaching or even exceeding normal performance levels. Bullard took stock of the robust gains seen in the job market, which have come at a time where inflation has run persistently below the Fed’s 2% price rise target. Dow Jones Industrial Average added 33.27 points or 0.19 percent to 17,719.00, Nasdaq was up by 26.16 points or 0.56 percent to 4,701.87 while, S&P 500 ended higher by 4.03 points or 0.20 percent to 2,052.75.    The Indian ADRs closed mostly in green on Thursday; HDFC Bank was up by 0.28%, Dr. Reddy’s Lab was up 0.21% and Tata Motors was up 0.10%. On the other hand, Infosys was down by 0.97% and Wipro was down 0.05%.

Kotak Bank, ING Vysya Bank, Tech Mahindra and Dr. Reddy's to see some action today

Kotak Mahindra Bank has announced that it will acquire Bengalaru-headquartered ING Vysya Bank in an all-stock deal. ING shareholders will get 725 Kotak Bank shares for every 1,000 shares they hold. The deal will make Kotak the fourth-largest private bank in the country in terms of total business. The biggest three are ICICI Bank, HDFC Bank and Axis Bank, in that order. The combined banking entity will have a widespread network of 1,214 branches across the country. The deal will need regulatory approvals, including those from the Reserve Bank of India and Competition Commission of India. The management of the banks expects the new entity to be operational by April 1, 2015. Tech Mahindra has signed a definitive agreement to acquire global Network Services leader Lightbridge Communications Corporation (LCC) for an enterprise value of around $240 million, subject to regulatory approvals. The transaction is expected to close by Q4 of Tech Mahindra’s 2015 Fiscal Year. With this acquisition Tech Mahindra will also be addressing a rapidly growing market opportunity as Telecommunications companies and enterprises accelerate the network upgrade cycle. With Networks increasingly becoming all IP-based and Virtual, software will play a key role in managing the networks of the future. Hyderabad-based pharmaceutical company Dr. Reddy’s Laboratories has launched over-the-counter (OTC) Fexofenadine Hydrochloride and Pseudoephedrine Hydrochloride extended release tablets 60 mg / 120 mg. The allergy relief and nasal decongestant tablets are bioequivalent generic version of Allegra-D 12 Hour. The abbreviated new drug application of Dr. Reddy’s has been approved by the United States Food & Drug Administration (USFDA). The Allegra-D 12 Hour brand has US sales of approximately $49.8 million for the latest 52 weeks ending October 6, 2014. Tata Communications, a leading provider of A New World of Communications, has launched mobile LNS. The new service enables OTTs and cloud communications companies to open their communication ecosystem to telecommunication services such as voice calls and text messages, by assigning dedicated local numbers to their customers in countries of their choice. This allows the OTT’s customer’s contacts or employees in those countries to call and text the customer using a local number - significantly reducing the cost to the contact or employee. It also gives mobile operators a new revenue stream from leasing mobile phone numbers, offering growth opportunities to the entire mobile ecosystem. Aurobindo Pharma will replace about 600 products of Actavis with its own for cost optimization. Early this year, the Hyderabad-based Rs 8,100 crore drug-maker had acquired the commercial operations of Actavis Plc in seven Western European countries for euro 30 million. Aurobindo has already completed the front-end operational integration. In the second phase, it will be switching the Actavis product with Aurobindo’s wherever possible. In the third phase of integration over the next 18 months, Aurobindo plans to move manufacturing of some of the products from Europe to its own units to reduce costs. A rift between the five powerful labour unions at Coal India (CIL) is set to clear the way for Prime Minister Narendra Modi’s government to complete a stake sale in the state company that is critical to hitting budget targets. One of the unions, close to Modi’s Bharatiya Janata Party (BJP), says it has the backing of half of Coal India’s 370,000 workers and will not join a strike to oppose plans to sell 10% of the firm and let private firms to mine and sell coal. The stake sale of CIL could fetch a third of the government’s $9.5 billion annual divestment target. The Coal India offering would follow a 5% stake sale in state-controlled Oil and Natural Gas Corporation, worth $2.8 billion and slated for December. Canara Bank has launched 109 new branches and an equal number of ATMs on the occasion of Founders’ Day. The Bank was founded 109 years ago at Mangalore. The bank is expanding its reach and investing in technology, people and process for faster delivery of products and services to meet expectations of the customers. In the current financial year, the bank opened 875 branches, taking the total number to 5,632, including seven in overseas locations. The bank opened 1,188 ATMs during the year taking the total to 7,500. Sanitaryware Company, HSIL has commenced production at its faucet plant at Kaharani in the Bhiwadi region of Rajasthan. The plant, built with an investment of Rs 120 crore, has the capacity to manufacture 2.5 million pieces a year and is the country’s first bath-fitting plant with robotic technology. The company has recently shifted the production of faucets from Bhiwadi plant to Kaharani plant with effect from November 01, 2014 till the time the company achieve full capacity utilization at Kaharani plant.