Blue Star Infotech gets CCI approval for Scheme of amalgamation

Blue Star Infotech Ltd has announced that the Company has received an approval from the Competition Commission of India (CCI) for the Composite Scheme of Amalgamation.

Blue Star Infotech Ltd has announced that the Company has received an approval from the Competition Commission of India (CCI) for the Composite Scheme of Amalgamation between Blue Star Limited, the Company and Blue Star Infotech Business Intelligence and Analytics Private Limited.

Blue Star Infotech Ltd ended at Rs. 239.5, up by Rs. 3.1 or 1.31% from its previous closing of Rs. 236.4 on the BSE.

The scrip opened at Rs. 242.1 and touched a high and low of Rs. 242.2 and Rs. 235 respectively. A total of 16753(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 258.66 crore.

The BSE group 'B' stock of face value Rs. 10 touched a 52 week high of Rs. 315.7 on 19-Aug-2015 and a 52 week low of Rs. 160.3 on 08-May-2015. Last one week high and low of the scrip stood at Rs. 242.2 and Rs. 232 respectively.

The promoters holding in the company stood at 51.78 % while Institutions and Non-Institutions held 1.98 % and 46.24 % respectively.

The stock traded below its 100 DMA.

Reliance Infra in talks to sell cement biz for Rs. 26bn

Under the terms of the deal, the buyer would also take over the cement unit's outstanding debt of Rs. 24 billion, giving the business an enterprise value of Rs. 50 bn, reports a business daily.

Reliance Infrastructure Ltd. is in advanced talks to sell its cement business for INR 26 billion (US$394 million) and a deal could be announced as soon as this week, according to a foreign news agency.

Under the terms of the deal, the buyer would also take over the cement unit's outstanding debt of Rs. 24 billion, giving the business an enterprise value of Rs. 50 bn, reports a business daily.

A consortium, which includes some private equity (PE) firms, is likely to emerge as the successful bidder for the cement unit of Reliance Infrastructure, according to the newspaper.

Seven bidders had been shortlisted earlier.

Another media report on Wednesday indicated that Reliance Infrastructure was in talks with cement makers as well as PE firms, including Blackstone Group LP and Carlyle Group LP for the sale of its cement business.

Reliance Infrastructure's cement unit has three plants with total installed capacity of 5.8 million tonnes per annum (MTPA). Another 5 MTPA cement manufacturing plant is being built in Maharashtra.

ONGC to invest Rs. 3500 cr for developing 3 CBM blocks

"We see a peak production of 3.2 million standard cubic meters per day of gas from the three CBM blocks," ONGC's Director (Onshore) Ved Prakash Mahawar told reporters in New Delhi.

Oil & Natural Corp. Ltd. (ONGC) on Wednesday said that it will invest INR 3,500 crore in three coal-bed methane (CBM) blocks in eastern India. 

"We see a peak production of 3.2 million standard cubic meters per day of gas from the three CBM blocks," ONGC's Director (Onshore) Ved Prakash Mahawar told reporters in New Delhi. 

ONGC will drill more than 350 wells in three CBM blocks in Jharia, Bokaro and North Karanpur in Jharkhand. 

A fourth block in Ranigajan North in West Bengal may be relinquished as it may fall in the way of a planned air-strip. 

"Production will start in three years and peak output of 3.2 mmscmd is likely in 2020-21," Mahawar said. 

Mahawar also said that CBM production is viable at USD 4.8 per million British thermal unit (mmBtu) gas price. In comparison, the current Government has mandated a rate of USD 4.24 per mmBtu.

ONGC sells CBM gas from wells at Parbatpur in the Jharia block at an approved price of USD 5.1 per mmBtu. 

ONGC suspends capex plans due to crude oil slump

The decision follows an investment review meeting called by Union Petroleum Minister Dharmendra Pradhan on Monday and a meeting of the company’s Board of Directors on Tuesday

ONGC has decided not to invest in new projects until crude oil prices recover and the realisation is enough to maintain its earlier capex plans, reports a financial newspaper. 

The decision follows an investment review meeting called by Union Petroleum Minister Dharmendra Pradhan on Monday and a meeting of the company’s Board of Directors on Tuesday.

ONGC won’t halt its ongoing exploration and development works, as it is getting the advantage of a fall in oil field services cost, according to the business daily.

The company's coveted deepwater block "KG-DWN-98/2" in the Krishna-Godavari Basin entails an investment of US$6-7 billion to pump out oil and gas by 2018.

ONGC's capex between FY11 and FY15 stood at INR 1.5 lakh crore. About 60% of these investments was used for maintaining the existing production infrastructure and explorations. 

Till November this year, the company's capex for FY16 has been Rs. 19,000 crore.

It had estimated capex of INR 36,249 crore in FY16 and Rs. 34,000-35,000 crore in FY17. These plans could be deferred until global crude oil prices recover, according to the newspaper.

Govt to soon announce coal linkage, new tariff policies: Piyush Goyal

“In the coal sector, a lot of policies are being changed. The process (for coal linkage policy is underway). Both (the policies) are coming out very soon,” Coal & Power Minister Piyush Goyal said on Wednesday.

The Government will soon introduce a coal linkage policy to ensure supply of fossil fuel, besides a new tariff policy aimed at boosting regulatory mechanism for discoms and attracting investments.

“In the coal sector, a lot of policies are being changed. The process (for coal linkage policy is underway). Both (the policies) are coming out very soon,” Coal & Power Minister Piyush Goyal said on Wednesday.

On the Government's one billion tonnes coal production target, Goyal said “100 per cent, we will make one billion tonnes. May be more than that.”

He also denied that the Finance Ministry has raised concerns about the impact of UDAY - a bailout scheme for discoms - on the combined fiscal deficit of states and Centre.

“Every banker, both the ministers, junior and senior, have thanked me,” Goyal said.

NPA of large borrowers hurting banking system: RBI

In its Financial Stability Report released on Wednesday, the RBI stated that there has been a sharp increase in the large borrowers' share of gross NPAs in the total gross NPAs to 87.4% in September from 78.2% in March.

The Reserve Bank of India (RBI) on Wednesday expressed concern about the debt servicing capability of large borrowers, saying that it was affecting the health of the banking sector.

In its Financial Stability Report released on Wednesday, the RBI stated that there has been a sharp increase in the large borrowers' share of gross NPAs in the total gross NPAs to 87.4% in September from 78.2% in March. 

"This is a major concern to the lending institutions and other stakeholders," according to the central bank.

In his foreword to the FSR, RBI Governor Raghuram Rajan says that corporate sector vulnerabilities and the impact of their weak balance sheets on the financial system need closer monitoring.

The RBI has requested public sector banks (PSB) to ensure that they don't overpay dividends since their bad loans could rise further in case there is a deterioration in the economic condition.

Worsening asset quality and sluggish profitability show that risks to banking stability have increased in the past six months, RBI said in its FSR.

The risk to the banking system from the domestic economy has dropped to medium from high, the central bank sai

Reliance Defence, United Shipbuilding sign Rs. 66,000 cr pact

The agreement has a time horizon of 15 years and focuses on modernisation and refitment of all Russian origin surface warships of the Indian Navy at Reliance’s newly acquired facility in Pipavav, according to the business daily.

Reliance Defence has entered into a strategic partnership with Russia’s United Shipbuilding Corporation (USC) and Rosoboronexport with an aim to get US$10 billion worth of business in manufacturing, refitting and modernisation of surface vessels for the Indian Navy, reports a financial newspaper.

The agreement has a time horizon of 15 years and focuses on modernisation and refitment of all Russian origin surface warships of the Indian Navy at Reliance’s newly acquired facility in Pipavav, according to the business daily. 

Prime Minister Modi arrived in Moscow on Wednesday. During his visit both countries are set to seal a raft of deals in key sectors like defence, nuclear energy and hydrocarbons.

A delegation of 18 Indian industry leaders is already in Russia to accompany Prime Minister Modi.

India is expected to sign a Rs. 30,000 crore deal for four new improved Talwar class (Krivak-3 follow-on/Admiral Grigorovich class) frigates, reports the newspaper. 

Two of these frigates will be fully made in India at the Pipavav facility of Reliance Defence, while two will be built in collaboration with USC in Russia.

The second part of the deal includes the refit, maintenance and life-extension of 35 Russian and Soviet-origin surface vessels with the Indian Navy. 

This modernisation and refitting work will also be done at Pipavav Defence and Offshore Engineering Company Ltd. (PDOC). 

The combined value of the two opportunities exceeds Rs. 66,000 crore, according to the newspaper.

M&M, Reliance Infra, V-Mart Retail among 22 Stocks in focus today

Check out the companies which will be in focus during trade today based on recent and latest news developments.

Mahindra & Mahindra Ltd: M&M plans to introduce a premium pick-up truck range under the brand name "Imperio" in the Indian market in early January, according to media reports.

ONGC: The company has decided not to invest in new projects until crude oil prices recover and the realisation is enough to maintain its earlier capex plans, as per media reports.

Reliance Infrastructure Ltd: Reliance Infra is in advanced talks to sell its cement business for Rs. 26 billion (US$394 million) and a deal could be announced as soon as this week, according to a foreign news agency.

Sanofi India: Sanofi Pasteur, the vaccines division of Sanofi, today said Food and Drug Administration of Philippines has granted marketing approval to its Dengvaxia vaccine to be licensed for the prevention of dengue in Asia.
 
Lupin: Drug major Lupin has received final approval from the US health regulator to market Potassium Chloride extended release capsules, used to treat potassium deficiency in the body, in the American market. 

Kwality: The company is planning to acquire mid-sized dairy companies with a capacity of 3 lakh litres milk per day. The company had earlier acquired Varshney Bandhu Foods and Pashupati Dairies, according to the newspaper.

Bank of India: The bank has said it will raise up to Rs 3,000 crore by issuing tier-II bonds. 
 
Essar Oil:Essar Oil’s delisting on Wednesday got through as the markets regulator Sebi gave its go-ahead to the stock exchange BSE to accept nearly 2 crore shares tendered by the state-run LIC for the promoters’ buyout offer. 

Wipro Ltd: Wipro has agreed to buy a business process outsourcing (BPO) technology platform provider for capital markets, Viteos Group, for $130 million. The move comes as the Indian company presses the pedal in its efforts to bolster its portfolio of high-margin software platforms.

DLF:  DLF has received Rs 1,992 crore from Singapore’s sovereign wealth fund GIC, thereby completing the deal to sell 50 per cent stake each in two upcoming projects in the national capital.

Tech Mahindra Ltd: Tech Mahindra announced the launch of India’s first contactless digital payment ecosystem, branded MoboMoney.

V-Mart Retail: The Reserve Bank of India has notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 49 per cent of the paid up capital of V-Mart Retail Limited under the Portfolio Investment Scheme.

Idea Cellular: Idea Cellular announced the launch of its high speed 4G LTE services across all five states of South India - Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana. 

Sakthi Sugars Ltd: Sakthi Sugars said that it reached settlement with FCCB holders and will settle $11.7 million of bonds at 65% face value.

Suven Life Sciences: The company announced securing 7 product patents overseas. The company has secured product patents in ARIPO, Europe, Hong Kong, Japan Macau and South Korea to their New Chemical Entities (NCE’s) for CNS therapy through mechanism of action – H3 Inverse agonist and these patents are valid until 2031.

Kalpataru Power Transmission: The company has secured news orders approx. Rs.1,395 crore.

Hatsun Agro Product Ltd: Hatsun Agro Products has finalised plans to acquire a cattle feed mill in Tamil Nadu for Rs. 13.50 crore. The Rs. 2,900-crore Hatsun Agro will acquire the mill belonging to VKS Farms Pvt Ltd at Coimbatore in an all-cash deal subject to due diligence and other formalities, according to information provided by the company to the BSE.

Pincon Spirit: The company plans to launch its new product in the market as Flavored Indian Made Indian Liquor (Country Spirit) in the Name of Company Existing "Pincon Bangla No. 1 Nimbo Pani".

Azure Power: The company has announced it has won 100 MW solar power capacity projects in Andhra Pradesh, which were recently put up for auction by NTPC Limited under the National Solar Mission.

Dish TV: Dish TV said it has rolled out an aggressive plan targeted at over 33 million households with the potential to get digitised, as per media reports.

Larsen & Toubro: L&T has bagged orders worth Rs. 1,178 crore across various segments so far this month.

Natco Pharma Ltd: Natco Pharma and its US partner Allergan have announce settlement of the pending litigation with Celgene regarding generic Lenalidomide (Revlimed) capsules.

Sensex, Nifty to open on a positive note

Investors will be cautious as it attempts previous peak. The decline earlier in the month was triggered by Nifty’s failure to break above the 8,000 levels. For now the cues from global markets are positive. Oil prices moved up sharply taking along with it energy shares. The S&P 500 rose 1.2%, and in the process is positive for the year. Dow danced 1.06% higher while Nasdaq gained close to a percent.

This is Christmas season and there isn’t any reason why the market, which has had quite at tumultuous ride for the year should not have a merry time. The movement these days has been bouts of gains and losses. Wednesday’s trade was merry after Tuesday’s fall of around 50 points for the Nifty. Strength in metals, Oil & Gas, power and realty stocks lifted the Nifty above 7850.

The outlook is a happy start. What transpires later in the day ahead of a long Christmas weekend remains to be seen. Despite a dramatic comeback in last two weeks, the index is yet to break past the peak of 7979, hit on 2nd December. Investors will be cautious as it attempts previous peak. The decline earlier in the month was triggered by Nifty’s failure to break above the 8,000 levels. For now the cues from global markets are positive. Oil prices moved up sharply taking along with it energy shares. The S&P 500 rose 1.2%, and in the process is positive for the year. Dow danced 1.06% higher while Nasdaq gained close to a percent.

The Reserve Bank of India (RBI) on Wednesday expressed concern about the debt servicing capability of large borrowers, saying that it was affecting the health of the banking sector. In its Financial Stability Report released on Wednesday, the RBI stated that there has been a sharp increase in the large borrowers' share of gross NPAs in the total gross NPAs to 87.4% in September from 78.2% in March.

Minister of State for Finance Jayant Sinha has said that 2016-17 would be a challenging term with headwinds from low farm sector growth, the global slowdown, and implementation of the Seventh Pay Commission report and the One Rank One Pension.

Reliance Infrastructure Ltd. is in advanced talks to sell its cement business for INR 26 billion (US$394 million) and a deal could be announced as soon as this week, according to a foreign news agency.

Shishir Bajaj-led Bajaj group on Wednesday said that it has synchronised the second 660 MW unit of its power plant at Lalitpur in Uttar Pradesh.

Gateway Distriparks Ltd., (GDL) has undergone significant changes in its shareholding pattern and board composition, following complete exit of Singapore shareholders from all the Gateway group of companies and its board.

The Government will soon introduce a coal linkage policy to ensure supply of fossil fuel, besides a new tariff policy aimed at boosting regulatory mechanism for discoms and attracting investments.

India Ratings and Research  expects current account deficit (CAD) to come in at 1.0% of GDP in FY16. CAD for 2QFY16 came in at USD8.2bn (1.6% of GDP), sequentially higher than USD6.1bn (1.2% of GDP) in 1QFY16, but lower than USD10.9bn (2.2% of GDP) in 2QFY15. Sequentially higher CAD in 2QFY16 was mainly due to a higher trade deficit USD37.4bn in 2QFY16 than USD34.2bn in 1QFY16.

Idea Cellular announced the launch of its high speed 4G LTE services across all five states of South India - Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana. In the first phase, Idea’s high speed 4G Network will be available across 75 Towns in Southern India.

Honda Cars India will hike prices of its vehicles across models by up to Rs 16,000 from January, says report.

Two debutants of Dalal Street, Dr Lal Pathlabs and Alkem Laboratories, were on a strong wicket as they clocked smart gains. Dr Lal Path Labs closed with super gains of 52% at Rs 834.50 per share as against an issue price of Rs 550 per share. The intraday high of the share was Rs 843.70 per share. Alkem Labs gained 31 percent ending at Rs 1381 per share on the NSE as against issue price of Rs 1050.