Wednesday, 12 February 2014

NTPC pays Rs 2,473.64 crore to GoI as dividend for 2013-14

NTPC has paid Rs 2,473.64 crore to Government of India (GoI) as an interim dividend for the financial year 2013-14. The company has transferred the said amount through RTGS to the government’s designated bank account.

NTPC has paid highest ever interim dividend of Rs 3,298.19 crore, being 40% of the paid-up equity share capital of the company, for the financial year 2013-14, as against the dividend of Rs 3,092.06 crore paid for the last financial year. This is the 21st consecutive year that the company has paid dividend.

NTPC is the largest power generating company in the country. It has also diversified into hydro power, coal mining, power equipment manufacturing, oil & gas exploration, power trading & distribution.

Parliamentary panel rejects micro finance bill

A Parliamentary panel, headed by senior BJP leader and former finance minister Yashwant Sinha has rejected the bill on micro finance institutions, which sought to empower the Reserve Bank as the regulator, by giving it the authority to fix interest rates ceiling on loans to be provided by MFIs.

The committee, which was not in favour of the draft legislation to regulate MFIs, will soon submit its report on the bill to the Parliament. The bill was introduced in the Lok Sabha in May, 2012 and was later referred to the committee for perusal.

The bill, which was drafted against the backdrop of problems faced by borrowers of MFIs in Andhra Pradesh and other states, provides for compulsory registration of MFIs with the RBI and is most likely to be lapse with dissolution of House.

BF Utilities firms up on plans of forming JV with Premier Explosives

BF Utilities is currently trading at Rs. 545.00, up by 2.45 points or 0.45% from its previous closing of Rs. 542.55 on the BSE.

The scrip opened at Rs. 540.00 and has touched a high and low of Rs. 551.85 and Rs. 530.00 respectively. So far 964 shares were traded on the counter.

The BSE group 'T' stock of face value Rs. 5 has touched a 52 week high of Rs. 669.70 on 13-Jan-2014 and a 52 week low of Rs. 118.10 on 07-Aug-2013.

Last one week high and low of the scrip stood at Rs. 600.00 and Rs. 535.25 respectively. The current market cap of the company is Rs. 2034.05 crore.

The promoters holding in the company stood at 66.06% while Institutions and Non-Institutions held 1.06% and 32.88% respectively.

BF Utilities has entered into a Memorandum of Understanding (MoU) with Premier Explosives to consider forming a joint venture company (JVC) to participate in the indigenisation of defence products. The MoU has been signed on February 07, 2014, at Defexpo India 2014, New Delhi.

BF Utilities is engaged in power generation through wind mill technology. The company was set up to satiate the power requirements of the Kalyani Group companies, which have business interests in areas of steel making, forging, machining, etc.

RBI imposes stricter norms on intra-group exposure for banks

In a bid to create a level playing field for existing banks and new players that may soon get the banking license, the Reserve Bank of India (RBI) has imposed curbs on banks investing in their group companies. As per the norms, banks cannot lend more than 5% of their paid-up capital and reserves to a single non-financial company or unregulated financial company belonging to the same group, while their aggregate group exposure should not exceed 20%.

However, in a case where bank’s current intra-group exposure is more than the limits stipulated, it would be required to bring it down before March 31, 2016. Nevertheless, exposure through equity and other capital instruments would be exempted from this norm. 

The measures, which would ensure banks maintaining arm's length relationship in dealings with their own group entities, meeting minimum requirements with respect to group risk management and group-wide oversight, and adhering to prudential limits on intra-group exposures, would come into effect in October, 2014. Almost all existing commercial banks, including foreign banks operating in India, will have to adhere to these norms.

Further, the central bank also has mandated banks not to enter into cross-default clauses i.e. clauses that trigger automatically when a lender declares that a loan is in default. It has barred banks from selling their bad loans to group entities other than asset reconstruction companies.

Canara Bank enters into partnership with NCMSL for financing warehouse services

Canara Bank, a leading nationalized bank, has entered into a partnership with National Collateral Management Services (NCMSL) to provide finance for collateral management and warehousing services. With this partnership both NCML and Canara Bank aims to assist industries, traders and farmers in financing their capital requirements at all stages of the supply chain.

Canara Bank has reported 42.39% fall in its net profit at Rs 409.35 crore for third quarter ended December 31, 2013 as compared to Rs 710.51 crore for the same quarter in the previous year. However, Total income of the bank has increased by 16.45% at Rs 10935.29 crore for quarter under review as compared to Rs 9390.29 crore for the quarter ended December 31, 2012.

Palred Technologies gets nod for scheme of merger

Palred Technologies has received an approval for merger of Palred Media and Entertainment and Pal Premium Online Media with itself. The company’s board of directors at its meeting held on January 11, 2014, has approved for the same

Palred Technologies is a global leader offering software solutions for the logistics and transportation industry. It provides innovative and integrated enterprise solutions ensuring customer satisfaction. Four Soft software engineers are providing solutions to enterprises across the SCM market place.

M&M gains on tying-up with Canara Bank to provide loan facility to its customers

Mahindra & Mahindra is currently trading at Rs. 895.80, up by 0.35 points or 0.04% from its previous closing of Rs. 895.45 on the BSE.

The scrip opened at Rs. 900.00 and has touched a high and low of Rs. 900.00 and Rs. 891.50 respectively. So far 1,982 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 1026.45 on 20-May-2013 and a 52 week low of Rs. 741.50 on 28-Aug-2013.

Last one week high and low of the scrip stood at Rs. 902.95 and Rs. 868.80 respectively. The current market cap of the company is Rs. 55,171.00 crore.

The promoters holding in the company stood at 25.24%, while Institutions and Non-Institutions held 52.77% and 16.95% respectively.

Mahindra & Mahindra (M&M) has entered into a tie-up with Canara Bank to provide loan facility to its customers. The company has entered into a preferred financier tie-up with Canara Bank. Through this tie-up the auto major’s customers can avail a car loan from any of the 4,600 branches of the bank.

Besides, this tie-up will enable both the company and the bank to leverage on the inherent strengths of each other’s vast pan-India network of 4,600 branches and 250 dealers, respectively.

Mahindra & Mahindra (M&M) is the flagship company of the Mahindra Group, a multinational conglomerate based in Mumbai, India. Amongst the various business interests of its parent group, the company is mainly involved in the automobile manufacturing. It is one of the leading auto companies of India.

Jaihind Projects bags order worth Rs 21.71 crore

Jaihind Projects, a prestigious Engineering, Procurement and Construction company has bagged an order worth Rs 21.71 crore from Karnataka Urban Water Supply & Drainage Board, for providing & laying sewer lines and construction of manhole chambers, wetwells, providing, laying DI rising main, construction of D.G set rooms in Zone-1 under 2nd stage UGD scheme to Kollegala town .

Jaihind Projects is engaged in engineering, procurement and construction (EPC) with a focus on the hydrocarbons, water & infrastructure sectors. Jaihind Projects is a public Listed Company with its shares listed on the Bombay Stock Exchange (BSE).

Hindustan Petroleum Corporation reports net loss of Rs 1733.91 crore in Q3

Hindustan Petroleum Corporation has reported results for third quarter ended December 31, 2013.

The company has reported a net loss of Rs 1733.91 crore for the quarter as compared to net profit of Rs 147.11 crore for the same quarter in the previous year.  However, total income of the company has increased by 3.79% at Rs 55651.51 crore for quarter under review as compared to Rs  53618.52 crore for the quarter ended December 31, 2012.

HPCL operates two major refineries producing a wide variety of petroleum fuels and specialties, one in Mumbai (west coast) of 6.5 million metric tonnes per annum (MMTPA) capacity and the other in Vishakapatnam, (east coast) with a capacity of 7.5 MMTPA.

Markets to get a good start on sanguine global cues

The Indian markets posted modest gains in last session after remaining range bound throughout the day. Today, the start is likely to be good on cheerful global cues. However, there will be some cautiousness too, as the global rating agency Moody’s has said that a fragmented government, without a clear mandate or policy platform, would increase the risk of downgrade for India. Today, the trade is likely to be influenced by many activities ranging from political to economic. The data on industrial production for December 2013 slated to be announced later in the day will be most eagerly watched, while the railways related stocks will be in limelight as the government will present the interim railway budget. Facing a revenue shortfall, Railway Minister Mallikarjun Kharge in his maiden budget may not bring about a reduction in basic passenger fares although he may make changes in the fuel adjustment component for minimum impact on ticket prices. There will be some action in banking license aspirants and the existing banks, as Reserve Bank of India (RBI), in a bid to create a level playing field for existing banks and new players has mandated strict intra-group exposure norms that will take effect from October. Auto sector stocks too will see some action, as the he Indian automobile industry has sought tax sops from government after reporting the fourth straight monthly fall in domestic car sales in January.

Today is a results heavy day and lots of important companies will be announcing their numbers, Apollo Tyres, Bata India, BPCL, Cipla , Coal India, Eicher Motors, IL&FS Transportation Networks and Tata Communications etc. will release their earnings for December quarter

The US markets surged, reacting positively to the Federal Reserve Chair Janet Yellen’s first day of Congressional testimony. As expected she said that Fed would continue to reduce the pace of asset purchases in measured steps but reiterated that a highly accommodative policy will remain appropriate for a considerable time after the asset purchases end. The Asian markets have mostly made a positive start led by Japanese shares and tracking the gains in the US markets, though the Chinese market was marginally in red despite trade data exceeding estimates.

Back home, the Indian markets fared comparatively better on Tuesday, to what they had gone through last session, though there was no major gain but volatility too was not seen at any point of time. There was a modest gap-up start and the benchmarks kept their spirit high, trading in a range throughout the session, there were some instances of profit booking but at no point market looked losing hold. However, sense of cautiousness too prevailed in the market ahead of the US Federal Chair Janet Yellen’s testimony on monetary policy and the nation's economic outlook. Earlier the US markets closed modestly higher, the Asian markets ended with good gains, while the European markets extending their gains made a good start, following upbeat cues from Asian markets. Back home, the Indian markets though could not made an impressive mark but remained firm in day’s trade and never faltered from the range. The cautiousness mainly emerged in early deals with Credit Suisse and Nielsen’s latest survey showing that confidence among emerging market consumers has deteriorated during the last year and that optimism level in India has also slipped four percentage points over last year and India was ranked fifth in the list. The good economic data too was unable to put life into the market, India's trade deficit narrowed in January to $9.92 billion, helped by a 77 per cent drop in imports of gold and silver. However, exports growth remained almost flat, up by 3.79 percent year-on-year to $26.75 billion, compared with a 3.5 percent annual growth in December. Market, moves on upside was partially restricted by the weakness in heavyweight Reliance Industries, which came under pressure after Delhi Chief Minister Arvind Kejriwal has asked anti-corruption branch for legal cases to be filed against Reliance Industry Chairman Mukesh Ambani and some ministers, over pricing of gas produced from the KG-D6 basin. IT stocks were the major gainers of the trade after software industry body Nasscom forecasted that IT sector exports will grow by 13-15 percent as against 13 percent (Y-o-Y) in FY15. It also said that domestic IT market is expected to grow 9-12 percent and the additional FY15 revenue will be $13-14 billion in FY15. Finally, the BSE Sensex gained 29.10 points or 0.14%, to settle at 20363.37, while the CNX Nifty added 9.25 points or 0.15% to settle at 6,062.70.