Sensex gains over 100 pts; Jindal Steel, M&M, HUL losers

Tightening their noose on loan defaulters, banks have decided to 'name and shame' the guarantors of such borrowers as well by publishing their photographs and other details in newspapers and at notice boards of bank branches and community centres, reports PTI.

Banks, mostly public sector lenders, began publishing pictures of wilful loan defaulters in newspapers and at other places around the areas of residence of such borrowers earlier this year to induce them to pay up.

 Management speaks: In an interview on CNBC-TV18 , Shekhar Bajaj, CMD, Bajaj Electricals , says the company has no choice but to pass on the impact of rupee depreciation to consumers. Giving a break-up, Bajaj says for Morphy Richards, 40 percent of its total turnover is imported products, for Bajaj Appliances it is about 20 percent and in case of fans and lighting, it is about 10 percent. The company plans to undertake a price hike this month.

Bajaj says the company is targeting an 18-20 percent growth in the lighting segment and a 20-22 percent growth in consumer durables. He further says they have not lost market share in lighting or consumer durables sector. In fact, he expects a 100 bps improvement in consumer durables margins.

In FY14, the company is targeting Rs 4,200 cr revenues and 20-25% growth.

Gold futures trade higher on MCX

Gold futures were trading marginally higher on MCX due to aggressive demand from stockists and investors amid firm overseas support. The trading sentiment improved further as gold in overseas markets rose the most in a week after data showed China's inflation accelerated more than estimated in June, boosting demand for the yellow metal as a hedge. The prices found further support from weakness in the US dollar, as dollar-priced commodities become less expensive to investors holding other currencies.

The contract for August delivery was trading at Rs 26222.00/10 GRMS, up by 0.44% or Rs 115.00 from its previous closing of Rs 26107.00/10 GRMS. The open interest of the contract stood at 13737.00 lots

The contract for October delivery was trading at Rs 26329.00/10 GRMS, up by 0.33% or Rs 86.00 from its previous closing of Rs 26243.00/10 GRMS. The open interest of the contract stood at 3217 lots on MCX.

Bond yields drop after regulators tighten rules for derivatives trading in the currency market

Bond yields dropped on Tuesday following measures by the central bank and the market regulator to curb speculative trading in foreign exchange derivatives. In a bid to arrest the steep decline of the rupee, which fell to a record low of 61.21 against the dollar on Monday, regulators tightened rules for derivatives trading in the currency market. The Reserve Bank of India banned banks from proprietary trading in domestic currency futures and the exchange-traded options market, while the Securities and Exchange Board of India (SEBI) increased the margin requirement on the domestic dollar-rupee forward trade to 100 percent of the traded amount.

On the global front, US Treasuries prices climbed in Asian trade on buying by bargain-minded investors, helping to bring benchmark yields down from near two-year highs. Brent crude dropped towards $107 a barrel on Tuesday as investors locked in profits after prices climbed to a three-month top in the previous session and as worries about supply for the Middle East eased.

Back home, the yields on 10-year 7.16% - 2013 bonds were trading 6 basis points lower at 7.51% from its previous close of 7.57% on Monday.

The benchmark five-year interest rate swaps were trading 10 basis points higher at 7.54% from its previous close of 7.60% on Monday.

The Reserve Bank of India has announced the auction of 91 and 364 day Government of India Treasury Bills for notified amount of Rs 7,000 crore each. The auction will be conducted on July 10, 2013 using 'Multiple Price Auction' method.

Reliance Infrastructure launches Mobile Wallet Bill Payment facility

The service would facilitate Reliance Infrastructure's 28 lakh consumers to pay their electricity bills through a simple SMS, anytime, anywhere.

Reliance Infrastructure Limited, India’s leading integrated power distribution company  launched the Mobile Wallet Bill Payment facility for their Mumbai customers. Customers who prefer to pay their bills in cash will be benefited by this fast and hassle free technology based bill payment system.The service would facilitate Reliance Infrastructure's 28 lakh consumers to pay their electricity bills through a simple SMS, anytime, anywhere. They can now avoid long queues and save time and money.

Reliance Infrastructure’s 23 lakh low end consumers will be most benefited as they normally prefers to pay their bills by cash.

With this, Reliance Infrastructure became first Indian power utility to offer both web based and mobile based wallet payment facility to their customer. 

Commenting on the development, Spokesperson, Reliance Infrastructure Ltd. said, “We are committed to take technology enabled services to all our consumers to facilitate them to save their precious time and money. We cater to around 23 lakh domestic users including approximately 12 lakh coming from the unstructured developments. Since, these consumers normally prefer to pay their power bills by cash, Mobile Wallet Bill Payment facility will thus benefit them the most.”

Anant Raj up 15% on Haryana govt nod for residential colony

Anant Raj  shares spiked more than 15 percent to hit an intraday high of Rs 58.70 in afternoon trade Tuesday. The real estate developer received license from Haryana government to set up a residential colony.

In its filing with exchange, the company says residential group housing colony over an area admeasuring 26.075 acres will have saleable area of 2.8 million square feet.

Anant Raj further says it also got license to set up a commercial project at Gurgaon over an admeasuring 4 acres and 2.95 acres, which will have saleable area of 0.8 million square feet.

Karnataka Bank jumps on co-financing pact with Reliance Capital

Karnataka Bank surged 5.41% to Rs 113.95 at 14:37 IST on BSE after the bank said it has entered into a memorandum of understanding with Reliance Capital for financing the micro, small and medium enterprises through co-financing arrangement.

The announcement was made during trading hours today, 9 July 2013.
Shares of Reliance Capital were trading 2.46% higher at Rs 379.60.
Meanwhile, the S&P BSE Sensex was up 92.48 points or 0.48% at 19,417.25.
On BSE, 14.89 lakh shares of Karnataka Bank changed hands in the counter as against average daily volume of 8.50 lakh shares over the past one quarter.
The stock hit a high of Rs 116.60 and a low of Rs 108.80 so far during the day. The stock had hit a 52-week high of Rs 198.80 on 11 December 2012. The stock had hit a 52-week low of Rs 78.10 on 11 September 2012.

The stock had underperformed the market over the past one month till 8 July 2013, sliding 26.44% compared with the Sensex's 0.54% fall. The scrip had also underperformed the market in past one quarter, declining 17.13% as against Sensex's 4.81% rise.
The private sector bank has equity capital of Rs 188.36 crore. Face value per share is Rs 10.

Under the memorandum of understanding (MoU) with Reliance Capital, Karnataka Bank will provide fund based/non-fund based finance to the eligible micro, small and medium enterprises (MSMEs) referred by Reliance Capital, as per the norms of the bank.
Reliance Capital, a part of the Reliance Group, is one of India's leading private sector financial services companies.
Karnataka Bank's net profit declined 19% to Rs 67.39 crore on 14.1% growth in total income to Rs 1090.32 crore in Q4 March 2013 over Q4 March 2012.
Karnataka Bank is a private sector banking institution based in the town of Mangalore in Karnataka and has major presence in South India. The bank is engaged in commercial banking and related activities.

Markets cool off from day’s high as investors went for profit-booking

Indian equity markets have come off their day’s high as investors went for profit-booking following the surge in early trade on account of measures taken by the central bank and the market regulator to curb speculative trading in foreign exchange derivatives and arrest rupee’s slide. Nevertheless, trade at D-street continues to remain in green territory amidst positive global cues, with benchmark indexes, Sensex and Nifty, trading with gains of over a quarter percent, comfortably cruising past the crucial 19,400 and 5,800 levels respectively. Meanwhile, broader indices showcasing degree of outperformance are trading with gains of over around half a percent. On the global front, taking cues from positive Asian shares, European market have also got off to a positive start after euro zone finance ministers decided to grant Greece a last substantial tranche of aid-but with strings attached.

Closer home, stocks from Metal, Auto and Oil & Gas counters were the weak pockets and have cut short bourses’ gains, while those from Consumer Durable, Health Care and Power counters are sustaining the uptrend of the bourses. Meanwhile, Sugar stocks have rallied after Government issued a notification to implement a hike in import duty on sugar to 15 per cent from 10 per cent as the world's top sugar consumer tries to prop up local prices which are falling due to ample and cheap global supplies.

The BSE Sensex is currently trading at 19401.04, up by 76.27 points or 0.39% after trading in a range of 19486.00 and 19380.25. There were 23 stocks advancing against 7 declines on the index.

The broader indices were trading in green; the BSE Mid cap and Small cap indices were trading up 0.36% and 0.50% respectively.

The top gaining sectoral indices on the BSE were, Consumer Durables up by 2.25%, Health Care up by 1.52%, Power up by 1.21%, Capital Goods up by 1.12%, and Bankex up by 0.77%, while Metal down by 0.25%, Auto down by 0.11% and Oil & Gas down by 0.07% were the top losers on the index.

Out of the 30 share, 19 stocks were advancing while 11 were declining on Sensex. The top gainers on the Sensex were Sun Pharma up by 4.32%, Bajaj Auto up by 2.42%, NTPC up by 1.28%, Infosys up by 1.24% and BHEL up by 1.18%. On the flip side, Coal India down by 1.79%, Maruti Suzuki down by 1.17%, Tata Motors down by 0.94%, Mahindra & Mahindra down by 0.92% and Hindustan Unilever down by 0.74%, were the top losers on the Sensex.

Meanwhile, amid the talk of government increasing import duty on pulses and Commission for Agriculture Costs and Prices (CACP) suggesting 10% import duty hike on pulse import to boost domestic production, the Food Ministry has favoured a 7.5% import duty on pulses. The pulses imports have been permitted at zero import duty since 2006. CACP, which recommends support price for agriculture commodities, had recommended 10% import duty on pulses in its report on kharif 2013-14 crops.

The government is of the view that import duty hike is necessary at this point to protect the domestic production because imported pulses have become cheaper compared to domestic pulses, especially after the hike in the minimum support price (MSP). As per the industry data, traders are now importing tur pulse at Rs 3,300-3,500 per quintal from Myanmar, while domestic prices are ruling at Rs 4,300 per quintal.

Although India is the largest producer of pulses but it imports about three million tonnes of pulses every year to fulfill its domestic demand. In last few years, the government has made progress in increasing the pulses production through higher MSP, which boosts confidence of Indian farmers to produce more pulses.

The CNX Nifty is currently trading at 5,840.70, up by 29.15 points or 0.50% after trading in a range of 5,864.95 and 5,834.60. Out of the 50 share index, 35 stocks were gaining; top gainers of the Nifty were Sun Pharmaceuticals up by 4.59%, Power Grid Corporation up by 2.52%, Bank of Baroda up by 2.28%, Bajaj Auto up by 2.20% and IndusInd Bank up by 1.69%. On the flip side, Coal India down by 1.74%, Maruti Suzuki down by 1.32%, Mahindra & Mahindra down by 0.94%, Jindal Steel down by 0.79% and Tata Motors down by 0.78% were the major losers on the index.

Most of the Asian equity indices were trading in green; Shanghai Composite rose 0.35%, Hang Seng increased 0.28%, KLSE Composite jumped 0.27%, Nikkei 225 surged 2.58%, Straits Times gained 0.78%, KOSPI Composite added 0.74%and Taiwan Weighted was up by 1.08%.

On the flip side, Jakarta Composite declined by 0.28% was the lone loser amongst Asian pack.

European markets too got off to a positive start; with CAC 40 inching higher by 0.38%, DAX rising by 2.08% and FTSE 100 advancing by 0.44%.

Canara Bank picks up 10% in Brickwork Rating

Canara Bank has invested in Bengaluru-based credit rating agency Brickwork Ratings. The completion of the deal was announced via an exchange release on Tuesday.

R K Dubey, chairman and managing director of Canara Bank suggested that there are many synergies at play.

“Brickwork and Canara Bank are both Bengaluru-based entities. Canara Bank and Brickwork would collaborate in various activities related to banking and credit rating. The strategic investment would help take up joint activities on risk management, training, research, financial inclusion, credit rating models, events, conferences,etc.” he said.

Vivek Kulkarni, Managing Director of Brickwork Ratings also alluded to the regional connection.

“We are very excited to be partnering with a hundred year old bank from Karnataka. Brickwork is committed to make a difference in the ratings industry and emphasizes research, training and financial literacy,” he said.

Canara Bank is a nationalized bank with a total business of over Rs.6 lakh crore, according to the press statement.
Brickwork Ratings  offers Bank Loan, NCD (Non Convertible Debenture), Commercial paper, MSME (Micro, Small and Medium Enterprises) ratings and other grading services, according to its website. Brickwork has presence in Bengaluru, New Delhi, Mumbai, Chennai, Hyderabad, Kolkata as well as forty cities in India.

Financial details of the deal were not disclosed.

Canara Bank was trading up 3.46%, at Rs.357.4 at the time of writing. It out-performed the banking index, which was up 1.23%.

Average basmati exports realisation
Financial year Price (Rs/kg)
2010-11          47.90
2011-12           48.61
2012-13         56.10

Just Dial hits record high, stock surges 58% against issue price

Just Dial has surged 12% to Rs 763, its record high since listing, on back of heavy volumes on the National Stock Exchange (NSE). The stock opened at Rs 686 and touched low of Rs 685 so far.

A combined 2.01 million shares representing 4.3% of total equity of the company changed hands on the counter till 1240 hours against an average less than 300,000 shares that were traded daily in past two weeks on NSE and BSE.

Just Dial has surged 58% against its issue price of Rs 483 per share offered to retail individual investors. The internet firm had raised Rs 950 through initial public offer (IPO) in May, by issuing shares at price of Rs 530 per share. The company offered a 10% or Rs 47 discount retail individual investors.

The company, founded in 1997, provides comprehensive listings of local small businesses across India, which can be accessed via a single telephone number (8888888888) or via the Web site.

Venkatachalam Sthanu Subramani, the founder of the company along with other promoters, held 33.13% stake in the company post listing. Foreign corporate bodies held 35.02% stake, followed by foreign institutional investors (14.85%), Individual shareholders (5.89%) and Foreign Venture Capital Investors (4.46%). The remaining 6.65% holdings are with mutual funds, financial institutions and others.

Sundaram Clayton promoter to sell equity shares via OFS

Sundaram Finance Limited (the "Seller"), the promoter of Sundaram Clayton Ltd (the "Company"), has informed to BSE that the Seller proposes to sell an aggregate of upto 4 equity shares of Rs. 5 each ("OFS Shares") representing approximately 0.00002 % of the equity share capital of the Company as on July 09, 2013.

The OFS shall be undertaken exclusively through Seller's Broker on a separate window provided by the BSE for this purpose.

- Date and time of the opening and closing of OFS : The OFS shall take place on the separate window of the Stock Exchanges and shall commence on July 11, 2013 at 2.30 pm and shall close on the same day at 3.30 pm (Indian Standard Time) ("OFS Date").