Ajanta Pharma dips after bonus announcement

The board has recommended a bonus shares in the ratio of 1:2.

Ajanta Pharma is trading lower by 4% at Rs 986, falling over 11% from intra-day’s high, after recommending a bonus shares in the ratio of one new fully paid-up equity share for every two fully paid-up equity share.

Meanwhile, the pharmaceutical company has reported a robust 66% year-on-year (yoy) jumped in its net profit at Rs 33 crore on back of 26% yoy growth in operational revenues at Rs 219 crore for the quarter ended June 30, 2013 (Q1).

The stock opened at Rs 1,021 and hit a high of Rs 1,110 on BSE, before the announcements of bonus shares and Q1 earnings. A combined 331,362 shares have changed hands on the counter till 1118 hours on BSE and NSE.

Natco Pharma up 20% post US ruling on Copaxone patent case

Natco Pharma  shares are locked at 20 percent upper circuit Monday after the healthcare firm received favourable US ruling on Copaxone patent case.

"We are pleased to announce the US Court of Appeals for the Federal Circuit ruling, reversing a district court's finding related to Teva's US patent for Copaxone," Natco said in its filing.

Copaxone (Glatiramer Acetate) is used in treatment of relapsing-remitting multiple sclerosis.

According to a release, the product is estimated to have clocked revenues in USA, of about USD 3.45 billion during 2012.

After this favourable ruling, the company may now launch generic Copaxone through its marketing partner Mylan in May 2014.

Coal India inks 82 FSAs for about 34,793 MW capacity Power Plants

Coal India (CIL) has signed 82 Fuel Supply Agreements (FSAs) as on July 25, 2013, with power stations with a capacity of 34,793 MW. This includes 16 power stations belonging to NTPC and its joint venture companies (JVs). Besides, 11 more FSAs are ready to be signed shortly with NTPC or its JVs, while another 23 FSAs with state and private sector entities are in the pipeline. These FSAs were part of the 131 FSAs for a capacity of 60,678 MW which CIL was directed to sign in February, 2012. This will substantially increase the power generation during the current and subsequent years.

Besides, the Ministry of Coal has issued another Presidential Directive to CIL on July 17, 2013 for signing of FSAs for a capacity of 78,000 MW instead of the earlier 60,678 MW. This will not only increase the power generation further but will also fast track several power projects which are under development.

Coal India is the world’s largest coal mining company. It also produces non-coking coal and coking coal of various grades for diverse applications.

Dena Bank seeks Rs 2,000 crore capital infusion from central government

Dena Bank, public sector lender is looking for Rs 2,000 crore capital infusion from the Central government, in order to support its future loan growth as the tier-I capital of the Bank fell below 8% by the end of June quarter. The bank’s capital adequacy ratio stood at 11.12% even as tier-I capital, which is critical to support loan growth, fell below 8% to 7.28%. In the last fiscal, the public sector lender had requested for Rs 1,200 crore of capital infusion from the government.

The bank’s net profit for the Q4FY13 declined by 50.68% at Rs 125.67 crore as compared to Rs 254.79 crore for the Q4FY12. However, its total income has increased by 17.23% to Rs 2539.74 crore for the quarter from Rs 2166.36 crore for the corresponding quarter of the previous year.

Sensex down 39 points in early trade

The BSE benchmark Sensex on Monday fell over 39 points in early trade, extending losses for the fourth straight session, due to increased selling by funds ahead of RBI’s policy review tomorrow amid a weak trend in other Asian markets.

The 30-share barometer fell by 39.37 points, or 0.19 per cent, to 19,708.82. The index had lost nearly 555 points in the previous three sessions.

Stocks of banking, FMCG, realty, metal and capital goods sectors were major losers, pulling down the benchmark Sensex.

The wide-based National Stock Exchange index, Nifty moved down by 16.19 points, or 0.28 per cent, to 5,869.30.

Brokers said selling by funds and other participants ahead of Reserve Bank of India’s monetary policy review to be announced tomorrow and a weak trend in the Asian region, mainly dampened the trading sentiment here.

In the Asian region, Hong Kong’s Hang Seng index traded lower by 0.51 per cent, Japan’s Nikkei Index fell 2.33 per cent, in early trade.

The US Dow Jones Industrial Average ended 0.02 per cent higher on Friday.

ONGC inks MoU with RIL on Eastern Offshore facility sharing arrangement

Oil and Natural Gas Corporation (ONGC) has inked a memorandum of understanding (MoU) with Reliance Industries (RIL) to explore the possibility of sharing the latter’s infrastructural facility in the East Coast. The MoU aims at working out the modalities for sharing of infrastructure, identifying additional requirements as well as firming up the commercial terms.

This shall not only minimize ONGC’s initial Capex but also expedite its field development resulting in early monetization of its deep water fields adjacent to the fields of RIL. The companies intend to enter into a formal agreement after conducting a joint study which will be spread over the next nine months.

ONGC, the country’s largest oil & gas producer, has drawn a roadmap to make substantial investment over a period of next five years both in exploration & developmental activities, and deepwater exploration and development constitutes a major component of the same. Under this plan, ONGC has a conservative estimate to produce about 6 to 9 MMSCMD of gas by mid-2017 from G-4, KG-DWN - D & E fields in the first phase.

Dr Reddy'S launches Donepezil Hydrochloride tablets

Dr. Reddy’s Donepezil Hydrochloride Tablets, 23 mg is available in bottle count sizes of 30 and 90.

Dr. Reddy’s Laboratories announced that it has launched Donepezil Hydrochloride Tablets, 23 mg,  a therapeutic equivalent generic version of ARICEPT®, 23 mg in the US market on July 26, 2013, following the approval by the United States Food & Drug Administration (USFDA) of Dr. Reddy’s ANDA for Donepezil Hydrochloride Tablets, 23 mg.

The ARICEPT, 23 mg brand had U.S. sales of approximately $92.6 Million MAT for the most recent twelve months ending in May 2013 according to IMS Health*.

Dr. Reddy’s Donepezil Hydrochloride Tablets, 23 mg is available in bottle count sizes of 30 and 90.

FIIs pull out Rs 18,500 cr from Indian capital market in July

Overseas investors have pulled out nearly Rs 18,500 crore (about $ 3 billion) from the Indian capital markets so far this month, amid concerns over the US Fed policy and the depreciating rupee.
   
The outflows as of July 26 were about Rs 12,081 crore ($ 2 billion) from the debt market and Rs 6,394 ($ 1 billion) from equities, according to data on net FII investments with market regulator Sebi.
   
Foreign institutional investors (FIIs) had withdrawn a record Rs 44,162 crore ($ 7.5 billion) from the debt and equities markets in June.
   
The weakness in the Indian currency was instrumental in overseas investors exiting the debt markets as the rising cost of hedging a volatile rupee hurts the yield differential the FIIs work with, according to market experts.
   
The rupee slumped to a lifetime low of 61.21 (intra-day) against the US dollar on July 8. Since April 30, the rupee has depreciated by about 13%. The currency closed at 59.04 against the dollar on Friday.
   
That apart, there was turmoil in the global markets after the US Federal Reserve said it may taper the $ 85-billion-a -month bond purchase programme later this year and end it next year if the US economic recovery is up to its expectations.
 
The Fed's loose monetary policy has driven asset prices higher, including those in emerging markets, and fears are that inflows may be hit if the US monetary stimulus comes to an end.
   
FIIs had been aggressive buyers of bonds in the first five months of 2013 on account of higher yields offered by the government and corporate debt. The debt market witnessed a net inflow of almost Rs 25,000 crore in January-May this year.
   
So far this year, foreign investors have pulled out a net Rs 21,169 crore ($ 3.2 billion) from the debt market, while foreign investment in the country's equity market is a net Rs 65,785 crore ($ 12.4 billion).
   
As of July 26, the number of registered FIIs in the country stood at 1,756 and the total number of sub-accounts at 6,426. 

Government gets Rs. 1,770-crore investment proposal for telecom products

: The government has received a Rs. 1,770-crore investment proposal from a domestic company for the manufacturing of telecom products.

"Our policies have attracted investors. The aim of the government is to reduce dependence on imports. In total investment that we have received so far there is Rs. 1,770 crore proposal from an Indian firm for manufacturing telecom products," DEITY Joint Secretary Ajay Kumar told PTI.

Without disclosing the name of the firm, Mr. Kumar said that the application is in process and is expected to be approved by inter-miniterial panel within a month.

The Department of Electronics and Information Technology under National Policy on Electronics 2012 and further strengthened by National Telecom Policy 2012 has so received investment proposal of Rs. 4,595 crore for electronics manufacturing which includes telecom and IT products.

The proposal by the domestic company is the biggest among proposals that government has received so far for indigenous manufacturing, an industry source said.

"Government has come up with good policies but recent rethinking by it on Preferential Market Access Policy is enough to shake investor's confidence. Telecom sector has already seen dip in investments due to regulatory uncertainity," the source said.

The Cabinet in February last year approved the PMA policy seeking to give preference to domestically manufactured electronic products which have security implications and for government procurement also.

The PMO has put on hold the policy, and said that it will 'revisit and review' the entire policy on providing preference to domestically manufactured electronic goods.

According to regulator Trai, only 12-13 per cent of all local products made with the aid of foreign vendors were used in the sector during 2009-10. However, purely India-made products formed just 3 per cent of the market.

Out of the total investment proposal received for domestic manufacturing, government has cleared proposals worth Rs. 961 crore which inlcudes invetsment from Bosch Electronics, Samsung and an Indian firm Sahasra Electronics.

Some of the other investments proposal inlcude Rs. 450 crore for manufacturing of consumer electronics, Rs. 310 crore LEDs and LED Products, Rs. 45 crore for electronics components, Rs. 610 crore automotive electronics, Rs. 40 crore power electronics, Rs. 210 crore strategic electronics and Rs. 750 crore for semiconductor test and packaging.

Markets may open with marginal gains

Markets are expected to open tad higher today but further gains could be capped as investors may remain cautious ahead of the Reserve Bank of India’s monetary policy tomorrow.

At 8:15AM, the SGX Nifty was up trading flat at 5,917.

According to the technical charts, "Key momentum oscillators are in favour of the bears, hence the markets may face downward pressure in the near term. On Monday, the Nifty may seek support around 5,855-5,840, while face resistance around 5,915-5,935."

Meanwhile Asian shares dropped in early trades on expectations of dovish comments from the US Federal Reserve after a policy review this week.

Among the key Asian indices, Japan’s Nikkei was down  2% to 13,880.

On Friday, US stocks ended higher on expectations of stimulus.

The Dow Jones Industrial Average rose 3.22 points, or 0.02 percent, to end at 15,558.83. The Standard & Poor's 500 Index gained 1.40 points, or 0.08 percent, to finish at 1,691.65. The Composite Index advanced 7.98 points, or 0.22 percent, to close at 3,613.16.

Domestically, in the earnings calendar we have Colgate Palmolive, IDFC set to unveil their first quarter results later today.

Following stocks are expected to move on the exchanges today:

Coal India Ltd (CIL) has signed fuel supply pacts with NTPC's 16 power plants and joint ventures, while 11 more agreements with the power major and its JVs are being processed.

As part of its cost cutting exercise, RP Sanjiv Goenka group flagship company CESC is set to get delisted from London Stock Exchange (LSE).   The market of the company's shares in UK has practically frozen and the dealings in the shares in recent years has been very low.

Wipro on Friday posted a net profit of Rs 1,081.2 crore,up 20.8% from the same period last year. The company's revenue was reported at Rs 8,741 crore compared to Rs 8,314 crore, up 5.1%.

Private power utility JSW Energy today posted a higher net profit of Rs 214.26 crore in the three months ended June 2013, primarily driven by higher income.   The Sajjan Jindal-led company had a net profit of Rs 3.41 crore in the year-ago period.  

RPG Life Sciences today reported over 19-fold increase in net profit at Rs 54.69 crore for the first quarter ended June 30, 2013. The company had posted a net profit of Rs 2.79 crore during the same period of previous fiscal.

Mahindra Lifespace Developers, the realty arm of Mahindra Group, today said it has entered into a joint venture with a investment arm of UK's Standard Chartered Bank to develop residential properties in the country.