Sun Pharma, Ranbaxy shares surge

Ranbaxy Laboratories has surged 3% to Rs 4449, while Sun Pharma gained 2% to Rs 594.

Shares of Sun Pharmaceutical Industries and Ranbaxy Laboratories was higher by up to 3%  after report stated that Andhra Pradesh High Court cleared the decks for the $4-bn deal to go through by lifting the stay. Ranbaxy Laboratories has surged 3% to Rs 4449, while Sun Pharma gained 2% to Rs 594.

IDBI Bank to open 600 branches this fiscal

IDBI Bank is planning to open 600 branches this fiscal, taking its overall branch network to 2,000. In 2013-14, the public sector bank had added around 400 branches, with the overall size of the network of 1,400 branches as at end-March. Further, the bank is looking to add another 700 automated teller machines during this fiscal. As on date, IDBI Bank has a network of 2,300 ATMs, which is now proposed to be enhanced to 3,000 this fiscal. The bank posted a fall of 6.53% in its net profit after tax at Rs 518.23 crore for the quarter ended March 31, 2014 as compared to Rs 554.45 crore for the same quarter in the previous year. However, total income of the bank increased by 4.27% at Rs 7866.52 crore for quarter under review as compared to Rs 7543.78 crore for the quarter ended March 31, 2013.

Sterlite Technologies arm bags sixth UMTP project

Sterlite Technologies’ wholly owned subsidiary - Sterlite Grid (SGL), has been awarded its sixth ultra-mega transmission project (UMTP) on build-own-operate basis by the Ministry of Power, Government of India. This Northern Region Strengthening Scheme project (NRSS 29) is a part of the National Grid and is designed to carry over 1000 MWs of electricity from Punjab to the Kashmir Valley. The NRSS 29 project was conceived by the Central Electricity Authority to provide a direct link between Punjab and the valley region. A new route was specifically chosen to ensure the line has minimum outages. Post-construction, Sterlite Grid will be responsible to ensure that the link is active for 98% of the year. The project consists of one substation and 800 circuit kilometers of 400kV lines in the states of Punjab and J&K. Sterlite Grid has quoted an annual tariff of approximately Rs 440 crores per year, which is 5% lower than the next highest bid. This will be Sterlite Grid’s largest project in terms of revenues and scale.

Sensex, Nifty soar; capital goods stocks up 2.44%

Some buying activity is seen in capital goods, banking, auto and realty on BSE, while healthcare sector is showing some weakness

9:41AM: The BSE Sensex is trading up 284 points at 24,978, while S&P Nifty is trading up 78 points at 7,445. BSE Mid-cap is up 1.02% at 8,757, while BSE Small-cap is up 1.18% at 9,235. Some buying activity is seen in capital goods, banking, auto and realty on BSE, while healthcare sector is showing some weakness. Maruti Suzuki, NTPC, L&T, M&M, Tata Motors and Tata Steel are among the gainers, whereas Hero MotoCorp, Dr Reddy's Lab,Cipla and HUL are losing sheen on BSE. National Democratic Alliance leader Narendra Modi will be sworn in as the Prime Minister of India along with his Cabinet today. Modi will be sworn in by President Pranab Mukherjee at a grand, open air ceremony, attended by about 3,000 guests, including foreign diplomats, in the forecourt of Rashtrapati Bhavan. The ceremony will start at 6pm and is likely to go on for an hour. List of Cabinet names have been finalised. Modi may opt for a lean Cabinet.

Gold futures edge lower on Monday

Gold futures edged lower on Monday ahead of a US holiday and thin trade. Further, investors weighed the outlook for US monetary stimulus against unrest in Ukraine too influenced the precious metal price. Gold futures for June delivery edged down 0.01 percent at $1,291.80 an ounce on the Comex division of the New York Mercantile Exchange. While spot gold was traded at $1,292.95 an ounce.

DLF gains as its arm successfully places CMBS issuance worth Rs 525 crore

DLF is currently trading at Rs. 220.60, up by 4.05 points or 1.87% from its previous closing of Rs. 216.55 on the BSE. The scrip opened at Rs. 218.70 and has touched a high and low of Rs. 221.50 and Rs. 218.70 respectively. So far 77,000 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 222.00 on 23-May-2014 and a 52 week low of Rs. 120.25 on 06-Aug-2013. Last one week high and low of the scrip stood at Rs. 222.00 and Rs. 172.20 respectively. The current market cap of the company is Rs. 39,301.00 crore. The promoters holding in the company stood at 74.93% while Institutions and Non-Institutions held 20.25% and 4.82% respectively. DLF Emporio, a subsidiary of DLF has successfully placed India's first Commercial Mortgage Backed Security (CMBS) issuance of Rs 525 crore, with a coupon rate of 10.90% p.a. and Legal Maturity of 7.5 years. DLF Emporio owns and operates approximately 3 lakh sq. ft of a Luxury Mall in New Delhi, India. The CMBS issue is rated CRISIL AA (SO). This is a landmark issuance, being the first of its kind in the country at a competitive pricing. This shall pave way for more such issuances in future. The Arranger for the Issue is Trust Investment Advisors. DLF is one of India’s largest real estate companies that has over 60 years of track record of sustained growth, customer satisfaction, and innovation. The company has 314 msf of planned projects with 52 msf of projects under construction.

Jindal Stainless develops smokeless stainless steel stove

Jindal Stainless has developed a smokeless stainless steel stove in collaboration with The Energy and Resources Institute (TERI). This step taken by the company is a significant step towards reducing carbon footprints. The maintenance free gas stove is priced at Rs 3,200 and being marketed by TERI.

The stove, made up of a mix of 200 and 300 series stainless steel, ensures high reduction in toxic emissions during cooking and has longer life and better corrosion resistance in adverse village environment.

Jindal Stainless manufactures stainless steel slabs, blooms, hot rolled and cold rolled coils, 60% of which are exported worldwide. It has a stainless steel making facility at Hissar and a ferro alloy plant at Vizag.

TATA MF introduces Fixed Maturity Plan Series 47 Scheme O (370 Days)

TATA Mutual Fund has launched the New Fund Offer (NFO) of TATA Fixed Maturity Plan Series 47 Scheme O (370 Days), a close ended income scheme. The NFO opens for subscription on May 26, 2014 and closes on June 02, 2014. No entry load or exit load will be applicable for the scheme. The minimum subscription amount is Rs 5000. The scheme’s performance will be benchmarked against CRISIL Short Term Bond Fund Index and its fund manager is Amit Somani. The investment objective of the scheme is to generate income and / or capital appreciation by investing in wide range of Fixed Income Instruments having maturity in line with the maturity of the scheme. The maturity of all investments shall be equal to or less than the maturity of a scheme.

Hindustan Motors suspends work at Uttarpara Plant

Hindustan Motors has declared suspension of work at its Uttarpara Plant in West Bengal with effect from May 24, 2014. The company has taken this step due to the worsening conditions at its Uttarpara Plant which include very low productivity, growing indiscipline, critical shortage of funds and lack of demand for its core product the Ambassador and large accumulation of liabilities. Further, given the present circumstances the company has no alternative but to declare a suspension of work at its Uttarpara Plant till further notice. The suspension of work will enable the company in restricting mounting liabilities and restructure its organization and finances and bring in a situation conducive to reopening of the plant. Hindustan Motors is India’s pioneering automobile manufacturing company manufactures passenger cars, Multi Utility Vehicles and RTV. It also manufactures passenger cars in the mid size premium segment (Mitsubishi Lancer, Lancer Select, and Lancer Cedia) and has brought the Sports Utility Vehicle (Mitsubishi Pajero) into the Indian market, in collaboration with Mitsubishi Motors of Japan.

Markets to make a positive start of the big week

The Indian markets resumed their northbound journey in last session with broad based buying taking the markets higher. Today is the big day for markets as well as for the nation, as the new government will be swearing in and traders will be eyeing for important portfolio announcements which may take place today. Meanwhile, the office of Prime Minister-designate Narendra Modi before he takes over as India’s 15th prime minister, indicated a smaller size of the next government and clubbing of ministries for smarter governance. Traders are likely to get some support with a FICCI survey, which has said that 93 percent out of the 76 CEOs covered by it, project a substantial improvement in the near-term economic situation with the Narendra Modi-led new government taking charge at the Centre. On the same time an Assocham study has indicated that riding on huge expectations from the incoming Modi government, foreign investment inflows are estimated to more than double to $60 billion level this fiscal. There will be some buzz in the iron and mining companies, as Goa Government has said that it will adopt a transparent mechanism to award mining leases in future and was studying the Supreme Court order lifting ban on iron ore extraction before taking a decision on vacating current mine operators through a transparent mining policy which is likely to take shape by next month. There will be lots of important result announcements too, to keep the markets in action. Andhra Cements, Britannia Inds, Canara Bank, City Union Bank, Educomp Sol, Everonn, India Cements, Jay Shree Tea, Muthoot Finance, Praj Inds, REC and Wockhardt are among many to announce their numbers. The US markets continued their bull run buoyed by good data of new home sales. The Asian markets have mostly made a positive start with some of the indices touching a six-month high, after an increase in US home purchases. Japanese market has taken the lead with yen holding its three days gains. Back home, Extending their previous session’s jubilation, Indian equity benchmarks ended the Friday’s trade near their intraday high levels with a gain of over a percentage point. There was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too equally participated in the rally. Though, some profit booking was witnessed during the trade amid report that foreign institutional investors (FIIs) sold shares worth a net Rs 294.99 crore on May 22, 2014, as per provisional data from the stock exchanges. But, domestic bourses maintained the steady trend on hopes that a Modi-led disposition would mark a paradigm shift in governance and herald a new era in economic reforms. Meanwhile, industry body Assocham in its action plan for the new government has pitched for liberalisation of ECB norms, GST implementation, incentives for investments and easing of processes for companies planning to set up manufacturing units. Supportive cues from US markets too provided support to local markets and Asian markets too ended mostly in the green. Back home, markets changed gear in last leg of trade to end near intraday high after State Bank of India (SBI) moved higher by nearly 10%, its highest level since May 2011, on reporting a better-than-expected net profit of Rs 3,041 for the quarter ended March 31, 2014 (Q4FY14). Other PSU banks like Canara Bank, Andhra Bank, Syndicate Bank, Oriental Bank of Commerce, Allahabad Bank, IDBI Bank and Indian Overseas Bank too edged higher. Meanwhile, stocks related to power sector too remained on buyers’ radar on the buzz that the incoming government will have a major thrust on the area, while infra and realty stocks witnessed buying on hopes of some recovery of the economy coming out of stagflation type of situation. Additionally, select gold related stocks continued their bull run for second day in a row after RBI permitted exporters, long-term export advance up to a maximum period of 10 years on a satisfactory track record and eased gold import norms. Finally, the BSE Sensex soared by 318.95 points or 1.31%, to 24693.35, while the CNX Nifty surged by 90.70 points or 1.25%, to 7,367.10.