MOIL gains 1% after reducing manganese ore price

The company has reduced prices of various grades of manganese ore by up to 10% for the January-March quarter.

MOIL gained 1% to Rs. 215.40 on BSE. The company has reduced prices of various grades of manganese ore by up to 10% for the January-March quarter.

The scrip opened at Rs. 212 and has touched a high and low of Rs. 218.7 and Rs. 212 respectively. So far 62117(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 3584.28 crore.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 317.8 on 02-Jan-2015 and a 52 week low of Rs. 183.2 on 25-Aug-2015. Last one week high and low of the scrip stood at Rs. 218 and Rs. 208.25 respectively.

The promoters holding in the company stood at 80 % while Institutions and Non-Institutions held 10.48 % and 9.53 % respectively.

The stock is currently trading below its 200 DMA.

Demand trends remain tepid across many of the consumption-oriented sectors

ICRA analysis suggest that barring some recovery in domestic Passenger Vehicle sales, which have been supported to a great extent by new model launches, the scenario remains fairly weak across sectors. Moreover, the impact of rural distress is also visible in many of the sectors which have sizeable exposure to rural regions (i.e. motorcycles, FMCG etc.).

Demand trends remain tepid across many of the consumption-driven sectors. The operating performance of Indian Corporate Sector has been under pressure over the past couple of years driven by a host of factors. While structural challenges across many of the infrastructure sectors, high-indebtedness of large corporate groups and global commodity meltdown have had the most pronounced impact, anemic trends across consumption-driven sectors have also contributed to weak corporate sector performance. Although the previous fiscal year began with some optimism and witnessed gradual recovery in urban demand, challenges on the rural front (i.e. weak monsoon, subdued hike in MSPs) and lower than expected scale-up in Government spending ensured that demand sustainability was elusive. Following another year of below-average rainfalls and slower than expected recovery in the economy, the demand off-take has been fairly tepid during H1 FY 2016 as well across many of the consumer-oriented sectors. In addition, the spreading up of the festive season over two quarters (i.e. Q2 and Q3) during the current fiscal vis-à-vis the previous year has also impacted the relative performance of various sectors.
 
In the following report, besides regular sectoral commentary, we have done a special focus on consumption driven sectors, ranging from Passenger Vehicles to FMGC. ICRA analysis suggest that barring some recovery in domestic Passenger Vehicle sales, which have been supported to a great extent by new model launches, the scenario remains fairly weak across sectors. Moreover, the impact of rural distress is also visible in many of the sectors which have sizeable exposure to rural regions (i.e. motorcycles, FMCG etc.).
 
Although some trends suggest that urban recovery has been underway but many of urban-oriented sectors (i.e. retail chains, quick service restaurants etc.) are yet to see sustainable improvement. Some of the listed players in the Consumer Durable sector too have reported relatively lackluster performance despite aggressive marketing/promotional initiatives by ecommerce platforms and softening interest rates. Besides weak consumer demand, some of the sectors have also been adversely by industry-specific issues.
 
Discretionary Sectors: Recovery in domestic PV sales is supported by new model launches As Ironic as it may sound, some of the large discretionary sectors like Passenger Vehicles and Retail Jewellery have actually performed better during the current fiscal. For instance, domestic PV sales have grown by 8.9% during 8m FY 2016 compared to a growth of 3.9% in FY 2015 and gold consumption too is up by 4% during 9m CY 2015 compared to the previous year. We believe that the recovery in the PV sales is primarily supported by slew of new model launches and only partially by favorable trend in cost of ownership (i.e. lower fuel cost and EMIs).
 
Discretionary Sectors Gold demand is up owing to low-base effect and soft prices Likewise, the optical recovery in gold consumption also takes into benefit the impact of low-base when gold availability was adversely affected by imposition of mandatory export restrictions. Along with the sharp increase in import duty on gold, the ‘20:80’ policy (which mandated jewellery manufacturers to export at least 20% of their overall production) was implemented to restrict gold imports and reduce India’s current account deficit (CAD). As a result of these measures, the availability of gold declined considerably between H2 CY 2013 and H1 CY 2014, thereby resulting in a decline of 1% in gold demand during CY 2014 compared to almost double digit growth in the prior year (i.e. CY 2013). In addition to low-base, the gold consumption during the current year has also been supported by softening gold prices notwithstanding the challenges on the rural demand front like crop damage in Q2 CY 2015 due to unseasonal rains and weak monsoon.
 
FMCG: Recovery in urban markets have helped to offset rural slowdown to some extent With most of the FMCG companies generating a sizeable proportion of their business from rural markets, the impact of rural stress has also been highlighted by FMCG players over the past few quarters. Nonetheless, companies have reported fairly stable volume growth over the past few quarters driven by new product launches, foray into new segments, price cuts and aggressive promotion/marketing initiatives. In general, most of the companies indicated that growth momentum in modern trade (which typically represents urban markets) and CSD formats is higher than that in rural markets. For instance, HUL indicated that rural growth which was earlier running at 1.5x the growth in urban markets has now come down to almost the same level. Dabur India also indicated that challenges in the semi-urban and rural markets are also with tight liquidity situation.
 
Alcoholic Beverages: Industry specific challenges outweigh weak consumer demand During the current fiscal, the alcoholic beverages industry has also witnessed relatively subdued trend in volumes compared to the previous year. However, unlike many of the other consumer-oriented sectors, the prospects of the alcoholic beverages industry have been more influenced by industry-specific developments rather than by weak consumer sentiment. Apart from regular hike in duties by many of the states, the change in procurement policy in Tamil Nadu (second-largest market for beer in India) and supply disruptions in Odisha (due to disagreement between manufacturers and state agencies on pricing) have affected industry volumes during H1 FY 2016. In addition, some of the national-level companies have also restricted their focus on mass-brands (owing to low profitability), which has also contributed to lower volume
 
Retail Chains: Growth remains stable across non-discretionary formats; Onslaught of e-commerce platforms showing up in some business models With muted demand trends, the organized retail chains have also been reporting low-single digit growth in same store sales. Moreover, the businesses, which are more focused on discretionary segments (like Shopper's Stop, Pantaloon etc.) have seen greater impact of subdued consumer sentiment vis-à-vis retail chains that generate a higher proportion of sales from grocery segments. In addition, they have also been facing the onslaught of aggressive discount-led push by e-commerce players. However, most of retailers/brand owners are gradually gearing up for co-existence with the e-commerce players.
 
Quick Service Restaurants: Yet to see sustainable improvement in demand The demand scenario has also been fairly weak for Quick Service Restaurants (QSRs) with most of them reporting a steady decline in same store sales for almost 7-8 quarters beginning from H2 FY 2014. Although some improvement was visible in H1 FY 2016, but in general, management commentary remains fairly cautious with factors like promotional activities and change in product mix attributed to recent pick-up in sales.
 
Outlook: All eyes are now set on fiscal stimulus measures Having gone through another year of relatively tepid growth even after incorporating the recent pick-up in festive season, the outlook over the near-term clearly hinges on a whole host of fiscal stimulus measures such as implementation of seventh pay commission, OROP, hike in MSPs and relief initiatives for draught-hit states among others. However, we believe that some of these measures will have limited impact and the overall recovery is likely to be gradual. For instance, in absence of arrears (owing to timely implementation), the seventh pay commissions’ 24% hike in salaries would have muted impact on disposable incomes of government employees.

TCS joins bidding process for Dell's Perot Systems

Report says that the companY re-emerged as a bidder in the last few days.

Tata Consultancy Services Ltd has joined bidding process for Perot Systems, according to reports.

Report says that the compan re-emerged as a bidder in the last few days.

Cognizant Technology Solutions Corp , NTT Data Corp and Atos SE also joined as contenders for Perot Systems.

The scrip opened at Rs. 2416.1 and touched a high and low of Rs. 2416.1 and Rs. 2369.05 respectively. A total of 1066341(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 465289.19 crore.

The BSE group 'A' stock of face value Rs. 1 touched a 52 week high of Rs. 2810 on 04-Mar-2015 and a 52 week low of Rs. 2316.65 on 07-Dec-2015. Last one week high and low of the scrip stood at Rs. 2464.5 and Rs. 2369.05 respectively.

The promoters holding in the company stood at 73.86 % while Institutions and Non-Institutions held 21.62 % and 4.52 % respectively.

The stock traded above its 200 DMA.

StanChart holds 10.63% in Castex after Amtek bond conversion

The acquisition is the result of the mandatory conversion of the Amtek India's US$130 million 6% convertible bonds 2017 issued by Castex, says a disclosure notice issued by SCBS.

Standard Chartered Bank Singapore (SCBS) and Standard Chartered Bank Mauritius (SCBM) now hold 10.63% equity stake in Castex Technologies Ltd., an Amtek group company, according to a stock exchange disclosure.

The acquisition is the result of the mandatory conversion of the Amtek India's US$130 million 6% convertible bonds 2017 issued by Castex, says a disclosure notice issued by SCBS. 

The notice, however, adds that the mandatory conversion notice issued by the company may not have been validly exercised. The mandatory conversion notice does not satisfy the conditions of the bonds, it says.

“If the mandatory conversion notice is found to be invalid and of no effect, the acquirers SCBS and SCBM will consider that the bonds remain outstanding and the shares acquired by the entities as a result of the purported mandatory conversion will be returned to Castex," according to the disclosure.

“It will, however be subject to the ongoing proceedings involving Castex before the English Court,” it adds.

It may be recalled that Amtek bondholders were looking to approach UK courts, alleging manipulation of the Castex stock price. 

The bondholders felt that the stock price was pushed up to force a conversion of foreign currency convertible bonds (FCCBs) into equity shares.

Goldman Sachs buys stake in SAMHI Hotels

Report says that SAMHI Hotels had raised over Rs 900 crore over the past four years.

Global investment banking major Goldman Sachs has acquired a significant 'minority stake' in hotel development and investment startup SAMHI Hotels for Rs. 441crore, according to reports.

Report says that SAMHI Hotels had raised over Rs 900 crore over the past four years.

The size of the details has not been disclosed yet.

"This year, we want to expand our portfolio through acquisitions and the investment will be entirely used for growing the business," said Ashish Jakhanwala, founder and CEO of SAMHI Hotels.

RBI imposes Monetary penalty on State Bank of Travancore

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank and its customers.

The Reserve Bank of India has imposed monetary penalty of Rs. 10mn on State Bank of Travancore for violation of its instructions, inter alia, on reporting of data to Central Repository of Information on Large Credits (CRILC). The penalties have been imposed in exercise of powers vested in the Reserve Bank under the provisions of Section 47(A) (1) (c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into account the violations of the instructions/ directions/guidelines issued by the Reserve Bank from time to time.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank and its customers.

Background

The Reserve Bank of India had issued a Show Cause Notice to the bank for not having complied with the directions issued by the Bank on submission of accurate data to the Central Repository of Information on Large Credits (CRILC). After considering the bank’s reply, as also, personal submissions, information submitted and documents furnished, the Reserve Bank came to the conclusion that the bank had violated the instructions/guidelines issued, from time to time, which warranted imposition of monetary penalty on it.

Petronet LNG to renegotiate Australia gas price

The Gorgon gas is expected between end-2016 and early 2017.

Petronet LNG Ltd. (PLL) could opt for renegotiation of the rates for purchasing gas under its contract with Exxon’s Gorgon project in Australia, reports a business daily.

The Australian contract was signed in 2009, when liquefied natural gas (LNG) sources were limited, resulting in higher prices. But now with the market dynamics changing, PLL will likely push for renegotiation, a senior PLL official told the financial newspaper.

The Gorgon gas is expected between end-2016 and early 2017.

This contract is with Mobil Australia Resource Company Pty Ltd for assured LNG supply of 1.4 million tonnes per year for 20 years. 

At the prevailing rates, once supplies begin from 2016-17, the delivered price to end consumers will be at least a dollar more, the PLL official said, adding that the dynamics of gas price keep changing. 

GAIL India Ltd., one of the promoters of PLL, has been pushing for the revision of the contract price in the context of the changing dynamics of the global LNG industry.

VLCC gets Sebi nod for Rs. 400 crore IPO

Report says that the company is planning IPO to fund its expansion in domestic as well as international markets.

Capital markets regulator Sebi has given approval to beauty and wellness firm VLCC Health Care to raise at least Rs. 400 crore through IPO, according to reports.

Report says that the company is planning IPO to fund its expansion in domestic as well as international markets. 

The firm had filed draft red herring prospectus (DRHP) with Sebi on September 23.

The initial public offer (IPO) comprises fresh issue of shares worth Rs 400 crore and an offer for sale of up to 37.67 lakh equity shares by the existing shareholders, says report.

Wipro, Aditya Birla Chemicals, SITI Cable among 16 Stocks in focus today

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

Wipro Limited: Wipro has appointed TK Kurien as the Executive Vice Chairman and Abidali Z Neemuchwala as the Chief Executive Officer and Member of the Board of the company. Both these appointments are effective February 1, 2016.

L&T: L&T Infotech, a subsidiary of engineering giant Larsen & Toubro, has got Sebi's approval to float an initial public offering (IPO) worth Rs. 2,000 crore, according to reports.

State Bank of India: SBI will soon set up a first-of-its-kind branch to cater exclusively to the growing banking needs of start-ups, as per media reports.

Aditya Birla Chemicals India Ltd: ABCIL has been merged today with Grasim Industries from the appointed date of April 1, 2015 with all the requisite approvals for the  Scheme of Amalgamation in place.

Texmaco Rail & Engineering: Texmaco Rail & Engineering Ltd has entered into a Definitive Agreement with Bright Power Projects (India) Pvt Ltd to acquire 55% stake in the company. Now, Bright Power  has become the subsidiary of Texmaco Rail.

SITI Cable Network:  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 SITI Cable Network Limited under the Portfolio Investment Scheme (PIS).

Petronet LNG Ltd: Petronet LNG could opt for renegotiation of the rates for purchasing gas under its contract with Exxon’s Gorgon project in Australia, reports a business daily.

Castex Technologies: Standard Chartered Bank Singapore (SCBS) and Standard Chartered Bank Mauritius (SCBM) now hold 10.63% equity stake in Castex Technologies Ltd., an Amtek group company, according to a stock exchange disclosure.

MOIL: The company has reduced prices of various grades of manganese ore by up to 10% for the January-March quarter. 

SBT: Reserve Bank of India has imposed a penalty of Rs.1 crore on State Bank of Travancore for deficiencies in reporting to the Central Repository of Information on Large Credits (CRILC) database.

Bajaj Auto: Bajaj Auto sales during December remained flat at 2.89 lakh units mainly on the back of a 12% dip year-on-year in exports.

Dabur India: The company has announced its foray into the premium baby care market with the launch of ‘Dabur Baby’, a new brand which will have a range of baby care products prepared using natural oils, essential for safe and tender care of the youngest member of the family. 

IDBI Bank: The bank has mobilised Rs.1900 crore through issue of Basel III compliant Tier 2 bonds through two separate issues on private placement basis to strengthen its capital adequacy.

 Punj Lloyd: The company has won four highway projects worth Rs. 1,555 crore in Bihar, Chhattisgarh, Odisha and Punjab from the central government. 

Videocon Industries: Videocon Industries has restructured its $194.4 million foreign currency convertible bonds (FCCBs) by repaying half the amount in cash and redeeming the rest in new five-year bonds at lower cost, as per media reports.

Gateway Distriparks Limited: The company has ​commenced construction of ​its ​Logistics Park ​at ​Krishnapatnam Port in Andhra Pradesh after receiving all necessary state government approvals.​ 

Sensex, Nifty to open on a positive note

Asian markets are staging a recovery with China’s Shanghai index off its lows. Japanese benchmark Nikkei is higher while Hong Kong's Hang Seng is flat. South Korea's Kospi has notched some smart gains while Taiwan's TWSE is well in the green. The Indian currency will also hope to see some recovery today.

The stock market bulls will heave a sigh of relief  as the bull in China shop came, damaged and has hopefully gone back for now. The world and its currencies came tumbling down following disappointing China factory data. Geopolitical tensions in the Middle East continue to dominate headlines even as our nation grapples with the Pathankot attack. With the Chinese share market freezing to a close, global indices had no place to run for cover and witnessed one of its worst days in recent times.

The new morning brings hope and chances are indices will stage a rebound at least at start. Tuesday is known for its twists in the market and no surprise if indices fail to sustain the early gains. US indices lost over a percent. Thankfully, Asian markets are staging a recovery with China’s Shanghai index off its lows. Japanese benchmark Nikkei is higher while Hong Kong's Hang Seng is flat. South Korea's Kospi has notched some smart gains while Taiwan's TWSE is well in the green. The Indian currency will also hope to see some recovery today.

The sudden crash due to external events could well be used by long term investors to lap up quality counters. A report indicates that over 75% of blue chips are below their five-year average PE ratios while 55% of mid-cap stocks are above their five-year average PEs.

The National Association of Software and Services Companies shared its perspectives on issues concerning Differential Pricing for Data Services stating that the matter needs careful consideration because of its possible impact on the principles of Net Neutrality.

Accenture Plc reported better-than-expected jump in quarterly revenue, helped by strong growth in its consulting business.The company increased its 2016 net revenue growth forecast to 6-9% from 5-8% in local currency, says report.

JMC Projects (India) Ltd has fixed January 12, 2016 as the Record Date for the purpose of Right Issue.