Financial Tech, MCX shares tumble in early trade

Jignesh Shah-promoted Financial Technologies and MCX shares tumbled in early trade on Wednesday due to trouble at NSEL.

Financial Technologies shares crashed to a low of Rs 143.25 in early trade on the BSE, as the auditors refused to authenticate the financial statement of the company due to the Rs 5,600-crore trade settlement crisis at its subsidiary, National Spot Exchange Ltd.

Financial Technologies’ Annual General Meeting is scheduled today in Chennai.

The stock, however, recovered to Rs 160 (at 10 a.m. IST), down 4.4 per cent over the previous day’s close.

Dividend payment

This (auditor) development may also delay the dividend payment to investors as the company has deferred the consideration of this proposal at the AGM.

Statutory auditor Deloitte Haskins & Sells had said the financial statement of Financial Technologies could not be relied upon due to the crisis in NSEL.

In a statement, Financial Technologies said: “Due to purported crisis at NSEL in the recent past and based on the communication of management of NSEL and the statutory auditor of NSEL on the financial statement of NSEL, the statutory auditors of the company on September 23, in accordance with Standard on Auditing 560, informed that the audit reports dated May 30 on the standalone and the consolidated financial statement of the company for the year ended March 31, 2013 should no longer be relied upon.”

Agenda items

Hence, the company has decided to defer three agenda items, including consideration of audit report, dividend payment and reappointment of Deloitte Haskins as auditor for this financial year at the AGM.

Following this development, the company said the financial accounts may undergo amendment together with the revised auditor’s report which will be approved and published once the accounts are finalised.

Similarly, MCX shares slipped three per cent to trade at Rs 424 after exchanges sought clarification from the company on its July 29 board meeting.

The company said: “We wish to state that on July 29, 2013, there was no agenda item in the matter. The board was only apprised of an impending litigation and there was no any definitive development of any substantive nature and hence in the interest of compliance by the company, the board decided to delegate the further decision to be taken by the directors committee for implementing any orders that may be passed by the court, if any. There has been no decision by the directors committee as no order had been passed in the intervening period.’’

It further said that the Hon’ble Court on August 29 had rejected the application of La-Fin to implead MCX. Hence, details of the aforesaid matter were not informed to the exchanges on July 29 in terms of Clause 36 of the listing agreement.

Tata Global Beverages rises as its JV opens Starbucks stores in Mumbai and Delhi

Tata Global Beverages is currently trading at Rs. 144.60, up by 1.30 points or 0.91% from its previous closing of Rs. 143.30 on the BSE.

The scrip opened at Rs. 144.90 and has touched a high and low of Rs. 146.85 and Rs. 144.00 respectively. So far 110984 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 181.70 on 15-Nov-2012 and a 52 week low of Rs. 122.00 on 26-Mar-2013.

Last one week high and low of the scrip stood at Rs. 151.90 and Rs. 141.95 respectively. The current market cap of the company is Rs. 8979.15 crore.

The promoters holding in the company stood at 35.20% while Institutions and Non-Institutions held 36.36% and 27.48% respectively.

Tata Global Beverages’ 50:50 joint venture (JV) with Starbucks Coffee Company - Tata Starbucks - has continued its expansion in India, with opening of two new outlets with one each in the cities of Mumbai and New Delhi. The opening of the above stores is part of the company’s ongoing expansion to open 50 outlets this year. The JV partners have earmarked an investment of Rs 400 crore for the purpose.

The 23rd store in the country is opened at Viviana Mall, one of the biggest malls in Thane - a satellite city to Mumbai, sharing its cosmopolitan culture. While in Delhi the company opened its 24th Starbucks store in sector 29 at Gurgaon. This neighbourhood is famous for its local and international restaurants and coffee shops catering to the corporate and residential crowd.

Tata Global Beverages, formerly known as Tata Tea, is a multinational non-alcoholic Beverages Company headquartered in Kolkata, West Bengal, India and a subsidiary of the Tata Group. It is the world's second-largest manufacturer and distributor of tea. Tata Global Beverages markets tea under the major brands Tata Tea, Tetley, Good Earth Teas and JEMCA.

Vedanta begins talks for Cairn's residual 10%

Vedanta group's Indian holding company, Sesa Sterlite, now owns 58.77% in Cairn India

Anil Agarwal's Vedanta group has begun formal talks to buy London-based Cairn Plc's 10 per cent residual stake in oil and gas producer Cairn India Ltd, valued at close to Rs 6,000 crore.

Vedanta group's Indian holding company, Sesa Sterlite, now owns 58.77 per cent in Cairn India.

Vedanta had earlier bought the company from Cairn Plc, to make an entry in the energy sector here. Talks have begun with bankers on when to buy the stake and on the price.

Vedanta had bought the Cairn India stake in 2010 for $8.7 billion. It then made an open offer at Rs 355 a share for minority shareholders and increased its stake to the present level. Other than Cairn Plc's remaining stake, the rest is owned by institutional and minority shareholders.

On Tuesday, Cairn India's shares closed at Rs 318 a share. The stock hasn't risen since January; it has been down since the takeover by Vedanta.

Vedanta, based in London, is also preparing to buy out the Union government's minority stake in Hindustan Zinc and Bharat aluminium. On Monday, department of economic affairs secretary Arvind Mayaram said there is no legal impediment for the sale.

The government currently has 29.5 per cent stake in Hindustan Zinc and 49 per cent in Balco. It is looking at exiting from the two companies by December. The sale would fetch close to Rs 20,000 crore for the government.

In an interview with Business Standard in February, Agarwal had said Vedanta was expecting $10-12 bn earnings in the next two to three years and he'd bid for oil and gas assets in India, besides some coal assets.

What to expect from Financial Technologies AGM today

Deloitte yesterday said FY13 accounts can't be relied upon due to NSEL crisis

There was more trouble for Jignesh Shah-controlled Financial Technologies a day ahead of its 25th Annual General Meeting (AGM) scheduled for September 25, 2013 with its auditor – Deloitte Haskins & Sells – saying that the company’s results for the year ended March should no longer be relied upon given the crisis at National Spot Exchange Ltd (NSEL), a group company.

Given the development, the company has deferred passing of three items that were earlier scheduled, a release to the Bombay Stock Exchange (BSE) said.

Meanwhile, NSEL Investor’s Forum is planning a protest outside the AGM venue, asking the company to payback their dues. Around 150 investors are expected to stage a protest against the firm, which owes nearly Rs 5,600 crore to investors.

Here are some of the key items that were originally listed to be discussed and adopted at the AGM today:

To appoint M/s Deloitte Haskins & Sells, the retiring Statutory Auditors of the Company, to hold office from the conclusion of this AGM until the conclusion of the next AGM and to authorise the Board of Directors / Committee to fix their remuneration.

To appoint Directors in place of Ravi K Sheth and C M Maniar, who are retiring by rotation, and being eligible, offer themselves for re-appointment

Payment of commission to non-executive directors of the company upto 1% of the company’s net profit as computed in accordance with Sections 349 and 350 of the Company’s Act, 1956.

As recommended by the Remuneration & Compensation Committee, the Board of Directors at its meeting held on 30 July 2013 has approved and recommended the Employees Stock Option Scheme (ESOP) 2013. Accordingly, the approval of members is being sought to approve Scheme – 2013.

M&M’s business unit MFCS launches first workshop in Kochi

Mahindra & Mahindra’s (M&M) business unit - Mahindra First Choice Services (MFCS) multi-brand certified used car company, has launched its first workshop in Kochi, marking its debut in the Kerala market. The facility is spread over 20,000 sq. ft with 15 bays and a monthly capacity of servicing 1000+ cars of various brands.

Mahindra First Choice Services (MFCS), a wholly owned subsidiary of Mahindra & Mahindra, is a chain of multi brand car workshops across major cities in India like Bangalore, Nasik, Hyderabad, Mumbai, Pune, Surat, Vapi, Nellore, Coimbatore, Chennai, Ludhiana and Delhi NCR. The company aims to offer a world class car servicing experience in India at value for money prices.

Ashoka Buildcon gains on receiving letter of award worth Rs 494.50 crore from MSEDCL

Ashoka Buildcon has received letter of award worth Rs 494.50 crore from Maharashtra State Electricity Distribution Company (MSEDCL). Of the total amount, order worth Rs 115.27 crore is for Tender number T-8 for Kedgaon division, Baramati, Rs 117.79 crore worth of contract is for Tender number T-10 for Baramati division, Baramati, Rs 106.24 crore worth of order is for Tender number T-11 for Solapur (R) division, Baramati and order worth Rs 155.20 crore is for Tender number T-13 for Barshi division, Baramati.

Earlier on August 6, 2013, the company had emerged as the lowest bidder for the turnkey contracts for electrification work for Mahavitaran Infrastructure plan Phase-II aggregating to Rs 494.50 crore from MSEDCL.

Ashoka Buildcon builds and operates roads and bridges in India on a build, operate and transfer (BOT) basis. It currently operates one of the highest numbers of toll-based BOT projects in India.

Tata Global Beverages’ JV opens Starbucks stores in Mumbai and Delhi

Tata Global Beverages’ 50:50 joint venture (JV) with Starbucks Coffee Company - Tata Starbucks - has continued its expansion in India, with opening of two new outlets with one each in the cities of Mumbai and New Delhi. The opening of the above stores is part of the company’s ongoing expansion to open 50 outlets this year. The JV partners have earmarked an investment of Rs 400 crore for the purpose.

The 23rd store in the country is opened at Viviana Mall, one of the biggest malls in Thane - a satellite city to Mumbai, sharing its cosmopolitan culture. While in Delhi the company opened its 24th Starbucks store in sector 29 at Gurgaon. This neighbourhood is famous for its local and international restaurants and coffee shops catering to the corporate and residential crowd.

Tata Global Beverages, formerly known as Tata Tea, is a multinational non-alcoholic Beverages Company headquartered in Kolkata, West Bengal, India and a subsidiary of the Tata Group. It is the world's second-largest manufacturer and distributor of tea. Tata Global Beverages markets tea under the major brands Tata Tea, Tetley, Good Earth Teas and JEMCA.

Markets may open tad lower, SGX Nifty flat

SGX Nifty was down 3 points at 5,916 at 0720 hrs.

Markets are likely to start on a weak note as global uncertainties will weight on the investor sentiments. The early indicator, SGX Nifty was down 3 points at 5,916 at 0720 hrs.

The Dow and S&P 500 ended lower on Tuesday, extending their recent slide to a fourth session as worries over a possible U.S. government shutdown added to investor caution.

Though uncertainty remains over the Federal Reserve's intentions to scale back its stimulus, some of the focus for now has turned to Capitol Hill.

The Dow Jones industrial average was down 0.43 percent, at 15,335. The Standard & Poor's 500 Index was down 0.26 percent, at 1,697. The Nasdaq Composite Index was up 0.08 percent, at 3,768.

Asian shares slipped and the dollar inched higher in early Asian trade, as concerns about a possible U.S. government shutdown and uncertainty about the U.S. Federal Reserve's policy outlook made investors hesitant to take aggressive positions.

MSCI's broadest index of Asia-Pacific shares outside Japan slipped about 0.1 percent, while Japan's Nikkei stock average was down 0.2 percent.

Stocks to Watch

Financial Tech will be under pressure after the company's auditor said the results for the year ended March should no longer be relied upon due to the crisis at group company NSEL.

Kingfisher Airlines is likely to hit the upper circuit as Vijay Mallya informed that talks are on with an investor keen on the debt-ridden carrier.

Another aviation name, SpiceJet will be in spotlight as the carrier denied it was in talks with Singapore-based low-cost airline Tigerair for a stake sale.

Jet Airways is likely to fly high as chairman Naresh Goyal will purchase over 1% stake in the airline from another promoter entity, Tail Winds, for up to Rs 45 crore.

Shipping Corporation of India might see a red tick because the company decided to shelve its plans of having shipyards due to an unfriendly business environment.

Lull after the storm; Sensex, Nifty end flat

After sharp falls in the past two trading sessions, the Indian indices ended on a flat note on Tuesday. For a brief while the NSE Nifty surged past the 5930 levels. However, the gains were short-lived as selling pressure was witnessed at higher levels. From there on, benchmark indices were stuck in a narrow trading range throughout the day with the NSE Nifty hovering around the 200 day moving average of 5900.

The capital goods, auto, power, consumer durables, healthcare and FMCG were among the top gainers. On the other hand, metals, PSU, telecom and oil and gas stocks were among the top laggards.

The banking stocks, which were at the receiving end since the repo rate hike on Friday settled down in a tight zone. Commenting on the same, Amar Ambani, Head of Research at IIFL said, “Private Banks are well-capitalized to absorb shocks from external environment. Banks with robust or improving retail banking franchise are unlikely to see a significant deterioration in RoA delivery over FY13-15. Recent steep price correction has also made valuation reasonable vis-à-vis perceived risks for banks such as HDFC Bank, IndusInd and Axis.”

Finally, BSE Sensex closed at 19920 up 19 points, while NSE Nifty closed at 5,892 up 3 points over the previous close.

Bajaj Auto, Tata Power, NTPC, LT, Cipla, M&M, BHEL, HDFC, NMDC, Tata Motors, GAIL and Maruti were among the major gainers in the Nifty.

On the other hand, Hindalco, BPCL, Coal India, Jindal Steel, ACC, HCL Tech, Bharti Airtel, Bank of Baroda and IDFC were among the major laggards.

The advance-decline ratio was marginally in favour of the bears. On the BSE, 1168 stocks declined against 1148 advancing stocks, while 152 remained unchanged.

The INDIA VIX was down 1.1% at 26.72. It hit a day’s high of 28.49 and low of 26.27.

Stock News

Shares of Kingfisher Airlines shot up by 10% to close at Rs5 after reports stated that it was in talks with a foreign investor for a potential stake sale.

SBI was down 0.7% after rating agency Moody's Investors Service downgraded public sector bank's senior unsecured debt and local currency deposit ratings to 'Baa3'.

Shares of ONGC edged lower by 0.5% to close at Rs274. ONGC Videsh Ltd and its partners are mulling raising stake in Venezuela's US$20bn Carabobo-I oil project even as India looks at raising crude oil imports from the Latin American country.

Shares of Glenmark Pharmaceuticals were up 1.5% after receiving final approval from the US health regulator for its generic Desoximetasone Ointment.

Edible oils prices steady at wholesale centers

During the week prices of Groundnut oil remained steady at all reporting centers and decreased at two centers Jammu and Puducherry.

As per data monitored by the Ministry of Consumer Affairs and Food, prices of Edible Oils during the week ending on September 19th, 2013 remained steady across the country. Price Monitoring cell of the Ministry regular monitors prices of twenty two essential commodities at 55 market centers across the country.
During the week prices of Groundnut oil remained steady at all reporting centers and decreased at two centers Jammu and Puducherry.

Prices of Mustard Oil also remained steady at most of the centers infact decreased at four centers which are Mumbai, Bhagalpur, Bhubaneswar and Sambalpur.
Similarly, prices of Vanaspati remained steady at all the reporting centers and declined at three centers which are Dehradun, Mumbai and Bhubaneswar.

Prices of twenty two essential commodities are regularly monitored by Department of Consumer Affairs for taking suitable action to keep the prices under check. These commodities include Rice, Wheat, Atta, Gram Dal, Tur (Arhar ) Dal, Urad Dal , Moong Dal, Masur Dal, Sugar, Gur, Groundnut Oil, Mustard Oil, Vanaspati, Sunflower Oil, Soya Oil, Palm Oil, Tea, Milk, Potato, Onion and Salt . Price datas are supplied on daily basis by the State Civil Supplies Departments of the respective State Governments.