Sensex to open on a flat note

The outlook is a smooth start with the Nifty managing to bounce back before touching its 200-DMA. The Bank Nifty too has staged a smart recovery. 

Just when the market was running out of patience, the markets world over seem to have got a fresh lease of life. Expectations of monetary policy easing and infrastructure spending improvement in China have topped headlines as even as China unveiled details of its “New Silk Road” plan to boost trade and economic relations with Eurasia and Africa. The indices were anyways waiting for a reason to rise after being subdued for around 8 days.

 

The outlook is a smooth start with the Nifty managing to bounce back before touching its 200-DMA. The Bank Nifty too has staged a smart recovery. The 8540 level will be watched on the upside as it is the 100 DMA. Profit booking could set in later in the day. Stocks like ICICI & HDFC Bank will see action after they cut rates. Colgate Palmolive India could smile as it considers third interim dividend today. State Bank of Mysore will also consider interim dividend today. VHCL Industries may consider issue of bonus shares today. EGMs for the day include Canara Bank, Vesuvius India and ZF Steering Gear India. Data awaited for the day includes core sector growth for February and government finances. 

Global cues are positive. US markets closed higher with Down adding 1.5% and S&P closing 1.2% up. Nasdaq notched gains of 1.15%. Asian markets are all trading marginally higher for now. 

Wipro is prepared to cope with the eventual exit of billionaire chairman Azim Premji, whenever that happens, outgoing finance chief Suresh C Senapaty said in an interview to ET. 

Bhushan Steel is reportedly in advance discussions with promoters of Orissa Sponge Iron & Steel Ltd (OSISL) and Monnet Group to acquire the company and secure raw material for their Odhisa plant. 

GVK Power & Infrastructure Ltd is likely to file a draft prospectus for an up to $250 million initial public offer (IPO) of its airport unit soon. 

Indian Hotels will see action as Belmond (Orient Express Hotels)  has announced a share buyback program for its shareholders which will allow the Taj Group to exit the company, says a report. 

Avantha Group Company CG has bagged a significant order from Power Grid Corporation of India Limited (PGCIL) for the supply of 80 MVAR 765kV Shunt Reactors valued at Rs 115 Crore. The scope of this contract to be executed in 20 months includes design, engineering, manufacture, shop testing, supply, erection testing and commissioning at site, and other associated civil works.

Magma Fincorp Ltd announced that its Board of Directors have approved preferential allotment of equity shares worth Rs 500 crore (~US$80 million) to a clutch of investors including KKR; Indium V, an investment vehicle advised by India Value Fund Advisors (“IVFA”); and LeapFrog Investments (“LeapFrog”). The transaction is subject to customary regulatory approvals.Indium and LeapFrog, both new investors in the company, will invest Rs 220 crore and Rs 200 crorerespectively. KKR, which first invested in Magma in 2011, will inject an additional Rs 80 crore. The company will issue 4.63 crore equity shares at a price of Rs 108 per share (face value of Rs 2 and a premium of Rs 106).

Piramal Fund Management has committed Rs 1,200cr to Omkar Group’s luxury residential development in Worli, Mumbai as project specific debt, in one of the largest single project financing transactions in India. Rs 400cr of this amount is being used to part refinance existing senior lenders against pari passu senior charge on the cash flows and development rights. The balance Rs 800cr is innovatively secured against a 20:80 scheme and is intended to be drawn as a line towards construction progress over the next two years.

The newly formed Telangana state utility, Telangana State Power Generation Corporation Limited (TSGENCO) has awarded Bharat Heavy Electricals Limited (BHEL) with an EPC (Engineering, Procurement & Construction) order for setting up a 4x270 MW thermal power plant in the state.   

GMR Infra jumped nearly 2 per cent to touch a high of Rs. 15.85 in opening trades on plans of reducing debt. 

Panacea Biotech has hit the 20 per cent upper circuit in noon deals on the back of notable jump in traded volume.

Jet Airways stock was up 4% at Rs 467 after the company today launched daily international flights to Abu Dhabi from Pune, Ahmedabad and Mangalore. 

Astra Microwave Products Ltd has announced that a meeting of the Board of Directors of the Company will be held on April 02, 2015, inter alia, to consider fund raising programmes through various matters. The stock surged 5% at Rs 140.

EID Parry India Ltd announced that the Company divested its entire shareholding of 102,222 equity shares of Rs. 100 each in Alagawadi Bireshwar Sugars Private Limited, a wholly owned non-operating subsidiary for a consideration of Rs. 1.70 cr.The stock was flat at Rs 167.

Gulshan Polyols Ltd stock was higher by 15% at Rs306.Report said that Reliance mid and smallcap fund acquired nearly seven percentage points stake in the company via open market. 

Adhunik Metaliks surged over 5 per cent to touch a high of Rs. 22.20 after the company's board approved its debt recast plan.

Fortis Healthcare gained nearly 2% at Rs. 167. The company has announced that The Board of Fortis Healthcare International Pte Ltd, a step down subsidiary of Fortis Healthcare Ltd (Fortis) based out of Singapore has decided to disinvest 100 % shareholding in Fortis Healthcare Singapore Pte Ltd which holds and operates “Fortis Surgical Hospital” to Concord Medical Services (International) Pte Ltd (CCM), for a consideration of SGD 55 Mn. The deal is expected to be completed on or about April 06, 2015.

Jet Airways stock ended 4% higher at Rs 469 after the company today launched daily international flights to Abu Dhabi from Pune, Ahmedabad and Mangalore.

GMR Infra jumped 1.3% to Rs. 15.75 on plans of reducing debt. According to media reports, GMR Infra plans to raise up to Rs. 4,000 crore over the next one year through divestment of assets and share sale to reduce debt and improve cash flow.

SpiceJet zoomed 8 per cent to Rs. 21.75 on plans to lease seven more Boeing 737 aircraft by May. Also the new promoter Ajay Singh is expected to infuse another Rs 500 crore in the company next month.

Astra Microwave Products jumped nearly 6 per cent to Rs. 141 as the company said that its board will meet on 02 April, 2015, to consider fund raising programmes through various matters.

Pennar Industries surged over 7 per cent to Rs. 53.85 on news that the company’s subsidiary Pennar Engineered Buildings Systems filed a Draft Red Herring Prospectus with Securities Exchange Board of India (SEBI).

CG wins Rs 115 crore order

The scope of this contract to be executed in 20 months includes design, engineering, manufacture, shop testing, supply, erection testing and commissioning at site, and other associated civil works. 

Avantha Group Company CG has bagged a significant order from Power Grid Corporation of India Limited (PGCIL) for the supply of 80 MVAR 765kV Shunt Reactors valued at Rs 115 Crore. The scope of this contract to be executed in 20 months includes design, engineering, manufacture, shop testing, supply, erection testing and commissioning at site, and other associated civil works.

These reactors will be installed at PGCIL’s Vemagiri and Srikakulam Sub-stations in the state of Andhra Pradesh and will add to the existing population of over 100 CG made reactors already in commission in PGCIL’s UHV network.  This order reinforces CG’s existing leadership in the UHV transmission segment in India and its long standing relationship with the Central Transmission Utility. 

CG won this order beating stiff global competition and its successful track record having partnered with PGCIL for multiple projects. These reactors when commissioned will not only enhance the transmission efficiency of the national grid, but will also improve the quality of power that reaches the consumer.

As India migrates to 765kV as the national transmission backbone, CG plays a vital role in building that grid with its indigenously created UHV portfolio. CG has attained self sufficiency in the segment having created a complete UHV platform comprising Transformers, Reactors, Current Transformers, Capacitive Voltage Transformers, Circuit Breakers and Surge Arresters.

Commenting on this prestigious win, Avantha Group Company CG’s CEO & Managing Director, Mr. Laurent Demortier said: “We are honoured to receive this opportunity from PGCIL and thankful to them for continuing to repose trust in our products and technological expertise. As rapid urbanisation and industrialisation adds millions of new consumers in the country, a robust UHV infrastructure will be the backbone of the power sector and CG is well positioned to serve the utilities for their future growth plan with its complete UHV range”

BHEL bags contract for 1,080 MW Manuguru thermal power project from TSGENCO

Valued at over Rs.50,000 Million, the present order envisages setting up a 4x270 MW Thermal Power Plant on EPC basis at Manuguru in Khammam District of Telangana. With this, TSGENCO has reposed confidence in BHEL’s expertise in this sector. 

The newly formed Telangana state utility, Telangana State Power Generation Corporation Limited (TSGENCO) has awarded Bharat Heavy Electricals Limited (BHEL) with an EPC (Engineering, Procurement & Construction) order for setting up a 4x270 MW thermal power plant in the state. 

Earlier, in December, 2014, TSGENCO had placed an order for BHEL to set up Telangana’s first Supercritical Thermal Power Plant of 800 MW rating, also on EPC basis, at Kothagudem. Valued at over Rs.50,000 Million, the present order envisages setting up a 4x270 MW Thermal Power Plant on EPC basis at Manuguru in Khammam District of Telangana. With this, TSGENCO has reposed confidence in BHEL’s expertise in this sector. 

Significantly, the project is targeted to be commissioned in 24 months on fast track basis with both TSGENCO and BHEL setting up teams to expedite clearances and execution of the project. TSGENCO has also entered into an MoU with BHEL for construction of new thermal power plants totaling 6,000 MW in the state. All these power plants are expected to commence generation within the next three years to meet the state's increasing demand for power. With the order for Manuguru project, 1880 MW has already been awarded to BHEL. To overcome the current uncertainty of coal supply, BHEL shall use its in-house developed fuel flexible boiler in the proposed power plants. This boiler is capable of firing the entire range, from 100% Indian to 100% imported mix of coal. 

Its design has been developed by BHEL with its experience of over five decades of working with various types of coal. It is anticipated that the use of this boiler will provide security against variation in design coal and the coal actually available during operation, thereby offering operational flexibility for uninterrupted generation. BHEL’s scope of work in the project includes design, engineering, manufacture, supply, construction, erection, testing & commissioning of 4x270 MW thermal sets on EPC basis. The key equipment for the contract will be manufactured at BHEL’s Trichy, Hyderabad, Haridwar, Bhopal, Ranipet, Bangalore and Jhansi plants, while the company's Power Sector - Western Region will be responsible for civil works and erection / commissioning of the equipment. Notably, with this order, BHEL’s reference list is enhanced to 35 sets of 270 MW ratings units. 

With a manufacturing capacity of 20,000 MW per annum, BHEL is the largest manufacturer of power generation equipment in the country and has been a partner in the country's vision to achieve self-reliance in energy. The company has established the capability to deliver power plant equipment of 20,000 MW per annum aiming to meet India's demand for power equipment with technology suitable for Indian conditions developed through in-house R&D.

At 12:01 PM, the stock of the company is trading at Rs. 237. The stock is up 2% from its previous close which was at RS. 233. It hit a high at Rs. 238 and low at Rs.233. Total traded quantity on the counter stood at over 1.29 lk shares on BSE.

Crompton Greaves gains on winning order from Power Grid

The stock is now trading 1.2 per cent higher on the BSE. 

Crompton Greaves is trading on a positive note on the back of winning order of Rs. 115 crore from Power Grid Corporation of India.

The stock so far has touched a high at Rs. 167 - up 2.1 per cent from its previous close. Now, the stock is up 1.2 per cent at Rs. 166.

So far, 53,000 shares are traded on the BSE, as against two-week daily average volume of 419,000 shares.

Meanwhile, the Sensex has jumped 236 points at 27,694.

Defence counters gain! Bharat Electronics stock spurts 5%

A report stated that the government sanctioned a Rs 5,113 crore project to develop a next-generation Airborne Warning and Control System (AWACS).

Defense stocks  rallied by up to 5% on reports that the government sanctioned a Rs 5,113 crore project to develop a next-generation Airborne Warning and Control System (AWACS).

Bharat Electronics stock surged 5% at Rs 3250.

Pipavav Defense and Offshore Engineering Ltd stock was up 2% at Rs 57.

A report said that The Defence Acquisition Council also approved the purchase of 1,512 mine ploughs for T90 tanks for Rs 710 crore and 30 weapon-locating radar for Rs 1,605 crore.

Corporate Announcement

 Board Meeting on March 30, 2015

Gujarat NRE Coke Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 30, 2015, inter alia, to consider the draft Scheme of Amalgamation of NRE Metcoke Limited and Bajrang Bali Coke Industries Limited with the Company i.e. Gujarat NRE Coke Limited and other connected matters.

Further the trading window as per Insider Trading Code of the Company shall remain closed from March 26, 2015 to March 31, 2015 (both days inclusive).

Top corporate news of the day - March 30, 2015

Shareholders of Trinetra Cement Ltd have given their consent to the scheme of amalgamation and arrangement between the company and Trishul Concrete Products Ltd with India Cements. 

Reliance Communications said it has gained capability to provide 4G services across the country on the back of spectrum won by it in the recently concluded spectrum auction.
 
Shareholders of Trinetra Cement Ltd have given their consent to the scheme of amalgamation and arrangement between the company and Trishul Concrete Products Ltd with India Cements. 
 
UPL is buying a 40% equity stake in Brazilian firm Sinagro group, which is a distributor of farm inputs-crop protection, fertilisers and seeds in the Cerrado region of Brazil. 
 
Grasim Industries has ventured into retailing women garments made of viscose staple fibre. The company’s subsidiary, Birla Cellulose, launched the garment brand Liva, which will be available at 1,000 outlets across 50 cities. 
 
Government is likely to exempt oil producers ONGC and Oil India Ltd from payment of fuel subsidy in the fourth quarter ending March 31, a senior Petroleum Ministry official said. 
 
NMDC limited will complete the construction of the 3 million tonnes per annum (Mtpa) integrated steel plant in Nagarnar in Chhattisgarh by 2016. 
 
To capture a pie of the flourishing online retail business, Ashapura Intimate Fashion (AIFL) plans to launch its own e-commerce venture in April. The launch will coincide with the launch of physical stores in major cities across the country. 
 
The Taj Group announced the opening of Taj Dubai located in the Burj Khalifa downtown area in Dubai. This hotel has 296 rooms including 2 lavish suites. 
 
SpiceJet plans to lease seven more Boeing 737 aircraft by May while another Rs5bn is expected to be infused by its new owner Ajay Singh next month. 
 
Prime Minister Narendra Modi is expected to announce a Rs360bn capacity expansion plan for SAIL's Rourkela steel plant when he inaugurates the modernised unit of the state-owned firm on April 1. 
 
Union Bank of India has deferred its plan to raise Rs13.86bn fund through qualified institutional placement (QIP) to the next fiscal. 
 
GlaxoSmithKline has reached a deal with the British government to supply a new meningitis B vaccine, following a lengthy stand-off over price with the product's previous owner Novartis. 
 
Strides Arcolab has launched its generic drug Sofosbuvir in India under the brand name 'Virso'. This drug, which is used for Hepatitis C treatment and is shown to have cure rates of around 90%, according to Strides officials. 
 
The construction wing of Larsen & Toubro – L&T Construction – has secured orders worth Rs17.11bn during March. 
 
Jet Airways launched daily international flights to Abu Dhabi from Pune, Ahmedabad and Mangalore. 
 
To tap into the growing middle class, travel services provider Thomas Cook is working on a model to reach out to its customers by setting up small outlets in high footfall areas such as malls and markets. 

Spicejet plans to lease seven more Boeing 737 aircraft

Ajay Singh may infuse another Rs 500 crore next month.

SpiceJet Ltd is reportedly planning to lease seven more Boeing 737 aircraft by May.

Ajay Singh may infuse another Rs 500 crore next month.

Singh has already pumped in Rs 500 crore into the carrier.

The airline currently has 17 Boeing 737s and 15 Bombardier Q400s in its fleet. 

India’s measures to revive gas-based power plants will benefit banks: Moody's

The government has now taken steps to make the import of LNG economically feasible for supply to these stranded plants by making the various stakeholders share the higher costs 

Last Wednesday, the government of India approved measures to revive and improve the utilization of stranded gas-based power generation plants in the country. This is credit positive for India’s banks because they have significant credit exposure to such plants.

Among the biggest beneficiaries of these measures are IDBI Bank Ltd (Baa3/Baa3 review for downgrade, ba3 review for downgrade), State Bank of India (SBI, Baa3 stable, ba1) and ICICI Bank Limited (Baa3 stable/Baa2 review for downgrade, baa3).

Power generation plants that use regasified liquefied natural gas (RLNG) as their fuel base have been facing significant availability and pricing challenges because the actual domestic production of liquefied natural gas (LNG) has been significantly lower than the assumptions made when the plants were set up. At the same time, importing LNG at prevailing prices has proved difficult because it increased generation costs, which, in turn, raised prices beyond the reach of buyers.

Among our rated banks, IDBI Bank has an especially high exposure to gas-based power plants and would be the key beneficiary of these measures. SBI and ICICI Bank have exposure to Ratnagiri Power Plant, which is the largest gas-based power plant in India, and would benefit as well.

The government has now taken steps to make the import of LNG economically feasible for supply to these stranded plants by making the various stakeholders share the higher costs. The central and state governments will provide exemptions from certain applicable taxes and levies on the incremental LNG being imported, while gas transporters and re-gasification terminals will reduce their transportation tariffs, marketing margins and re-gasification charges on the incremental LNG. Power developers will forego their return on their equity. The Indian government has also proposed to provide support to power distribution companies that buy this power. The government estimates that there are 24,150 megawatts of gas-grid-connected power generation capacity in India. Of this, 14,305 megawatts of capacity has currently no supply of domestic gas and thus is stranded. The remaining 9,845 megawatts has also been working at a sub optimal level based on the limited quantity of domestic gas in the country.

This capacity involved a significant level of investment, at around $16 billion, most of which was bank financed. To put this in context, the total exposure of the banking system to the power sector at the end of January 2015 totaled around $88 billion, or 9% of total outstanding bank credit. Thus, banks had a material exposure to gas-based power plants that had a high risk of turning into nonperforming loans. Hence, if these measures lead to a revival of these plants, it would be a significant credit positive for Indian banks.

Indices to open on a positive note

After days of weak ends, the market is finally looking up for the day.

After days of weak ends, the market is finally looking up for the day. There is nothing extra-ordinary in terms of cues really, but looks like at least the constant fall may be arrested for the time being. Over the weekend, Federal Reserve Chair Janet Yellen said rates would likely start rising later this year though she reinforced her point that the pace of tightening would be gradual and would depend a lot on data.

The outlook is a positive start. The rupee movement will be in focus even as reports state that the telecom auction may keep the dollar flow on. The global cues are more or less positive. US economic growth show a slowdown, dollar saw some weakness and gold lost some of its luster after a rally for over a week.

The day will see the AGMs of Alumeco India Extrusion and Bf Utilities. EGMs for the day include Lokesh Machines, Venlon Enterprises,  Rajsanket Realty and Systematix Corporate Services among others. Sharon Bio-Medicine could be in action as it considers allotment of equity shares.  Himalya International will today consider allotment on conversion of warrants.  Lokesh Machines, which has its EGM today will also consider allotment of preferential issue of equity shares and convertible warrants. Reliance Chemotex Industries will consider issue of Equity Shares.

Global markets will also be cued into Japanese steel data, EU surveys, macro data from Germany, and a host of data from US.

Asian markets are in the green.  US indices ended higher on Friday. The Dow Jones rose 34.43 points, or 0.19 per cent, to 17,712.66, the S&P 500 gained 4.87 points, or 0.24 per cent, to 2,061.02 and the Nasdaq Composite added 27.86 points, or 0.57 per cent, to 4,891.22.

Capital spending in India to take 12 more months to recover, says S&P. 

 

The government could launch the disinvestment programme for 2015-16, the country's biggest so far, as early as the second week of April, provided market conditions remain favourable, says a report. 

The Centre is likely to raise compensation limit for crop damage, says Jaitley

India to become 3rd largest auto manufacturer by 2020, says Ford

Low-cost carrier SpiceJet Ltd may cancel more than a fifth of its planned daily flights if it cannot reach an agreement with its lessors, according to reports. The airline is scheduled to make 280 daily flights from next week.

Infosys is planning to look at a two-pronged acquisition strategy, U B Pravin Rao, chief operating officer reportedly said. Report said that the company expects the acquisition size of next-generation tech companies such as Panaya.

Telecom minister has urged the participating companies to shell out a huge Rs. 29,000 crores as this payment was due from the participants at the beginning of the spectrum auction. The funds will be used to meet the government’s fiscal deficit. 

However, tele companies will not comply to this demand easily as they are already reeling under steep bidding prices. 

The Union Finance Minister Arun Jaitley said that there is need to take steps to encourage people to use more and more accounted money and discourage the use of unaccounted currency. Jaitley added that with the progress in the growth of economy, more and more people should be incentivized to use plastic money such as credit cards, Rupay cards and cheques or any other negotiable instrument. They should be discouraged to use hard currency or unaccounted money, he added.

Budget carrier IndiGo is leading record market share of 37.1%, carrying 22.21 lakh passengers during the month, according to reports.  Jet Airways, along with JetLite, improves its market share to 24.3% (up from 24.1% in January).. while SpiceJet and GoAir gained 9.2% and 8.9% share of the overall traffic. Air India’s total share in the February traffic stood at 17.8%, says report. 

HDFC Standard Life is planning to sell 10% via IPO, according to reports. A report said that the company has finalised Bank of America Merrill Lynch, JPMorgan, Morgan Stanley, Credit Suisse and JM Financial to manage the initial public offer (IPO).The company is planning to raise Rs 2,400 crore which is expected to take place in the July-September quarter, says report.

Moody's Investors Service says that Reliance Communications Limited (RCOM)'s spectrum payments totaling around Rs 43bn are at  the high end of our expectations but can be accommodated in its Ba3 corporate family rating with a stable outlook.