LIC clocks Rs. 11,000 cr profit via equity investment in FY16

Amidst the ongoing hide-and-seek game between the Bulls and the Bears, LIC has been able to avert the severe impact that ensues from bearish market trends on its investments in Sensex blue-chip firms. 

India’s largest life insurer, Life Insurance Corporation of India (LIC), has clocked a profit of Rs.11,000 crore through equity investment in FY16, reported PTI.

LIC’s executive director for investment operations, Pravin Kutumbe was quoted as saying: “We saw some profit booking opportunities during the fiscal and have made a profit of Rs.11,000 crore through our equity investments in the recently concluded financial year.”

The DII biggie pumped in Rs.2.70 lakh crore in Indian securities markets, of which, Rs.65,000 crore was invested in equities.

Volatility in the markets towards the latter part of 2015-16 led to the company exceeding its equity investments target of Rs.60,000 crore announced earlier.

Kutumbe said that having announced a target of investing up to Rs.1.5 lakh crore to help the Railways, LIC has loaned Rs.7,000 crore to the Railways in 2015-16 for scaling up.

During the fiscal, the Sensex corrected nearly 10%.

The investment pattern of Life Insurance Corporation of India (LIC) in as many as 23 Sensex companies between December 2014 to December 2015 somehow reflects the billionaire investor’s famous advice on: “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”

Amidst the ongoing hide-and-seek game between the Bulls and the Bears, LIC has been able to avert the severe impact that ensues from bearish market trends on its investments in Sensex blue-chip firms.

During the aforesaid period, India’s largest life insurer has increased its shareholding in 13 Sensex firms. However, this DIIs biggie trimmed its exposure in 9 firms from the Sensex pack. 

LIC’s combined shareholding value in 23 Sensex heavyweights has come down 3.3% to Rs.1,79,772.31 crore as on March 9, 2016 from Rs.1,85,925.02 crore on December 31, 2014. It is pertinent to note that of this 23 Sensex firms 16 stocks have crashed between 2-59%, but still the intensity of fall in combined shareholding value is not alarming, especially when the Indian stock markets have entered the bearish phase.

LIC's shareholding in 23 Sensex firms

Company	As on Dec-2014 (%)	As on Dec-2015 (%)	Change in Percentage points
Hero MotoCorp	2.13	5.43	3.30
Tata Motors	3.28	6.25	2.97
Sun Pharma	1.35	3.36	2.01
Adani Ports	1.45	3.28	1.83
HUL	0.00	1.55	1.55
M&M	12.31	13.53	1.22
Infosys	4.69	5.59	0.90
RIL	8.67	9.40	0.73
ONGC	7.70	8.36	0.66
Bajaj Auto	4.82	5.26	0.44
TCS	2.43	2.78	0.35
NTPC	9.68	10.03	0.35
Wipro	1.70	1.89	0.19
Tata Steel	14.59	14.59	0.00
Asian Paints	5.53	5.37	-0.16
Bharti Airtel	4.79	4.62	-0.17
SBI	12.26	11.50	-0.76
Maruti Suzuki	6.77	6.01	-0.76
HDFC Bank	3.45	2.65	-0.80
Coal India	7.24	5.86	-1.38
Cipla	6.67	5.26	-1.41
BHEL	9.42	4.89	-4.53
GAIL	7.45	2.20	-5.25

Ipca Labs slumps 13%; to source ACTs from pre-qualified suppliers

The company will source ACTs from pre-qualified suppliers that have no pending regulatory issues. 

Ipca Labs Ltd was lower by 13% at Rs. 487. The Global Fund, Geneva, Switzerland vide their letter dated April 04, 2016 (which was transmitted to the company vide their e-mail dated April 06, 2016), have informed the company that in the light of the warning letter issued to the company by the United States Federal Drug Regulatory Authority (US FDA) on January 29, 2016, they have re-assessed the situation and following a risk consideration exercise, will not allocate any volume of Artemisinin-based combination therapy (ACTs) to the company and that they will only source ACTs from other pre-qualified suppliers that have no outstanding issues with the regulators.

The scrip opened at Rs. 525 and has touched a high and low of Rs. 534 and Rs. 491.45 respectively. So far 73044(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 7048.9 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 888 on 19-Aug-2015 and a 52 week low of Rs. 525 on 16-Mar-2016. Last one week high and low of the scrip stood at Rs. 581.7 and Rs. 540 respectively.

The promoters holding in the company stood at 45.89 % while Institutions and Non-Institutions held 35.94 % and 18.17 % respectively.

The stock is currently trading below its 200 DMA.

Equitas IPO achieves several milestones; subscribed 17 times

Among various investors’ categories, the issue was subscribed 15.05 times by qualified institutional buyers (QIB), 57.47 times by HNI-NII, 1.36 times by retail investors and 0.86 times by employees.

The initial public offering (IPO) of the Chennai-based small finance bank (SFB) closed with a bang today. The issue subscribed 17.28 times and collected over 26,800 crore as against expected over Rs. 2,000 crore.

Among various investors’ categories, the issue was subscribed 15.05 times by qualified institutional buyers (QIB), 57.47 times by HNI-NII, 1.36 times by retail investors and 0.86 times by employees.

This has been the first significant IPO by a BFSI in a long long time. Besides, Equitas’ IPO is the second largest only after InterGlobe Aviation’s Rs. 3,000 crore IPO in October 2015. With its issue size of over Rs. 2,000 crore, this is the first and only IPO of such a huge amount in CY16 and FY17. The IPO is the first in CY2016 and FY17 to collect over Rs. 25,000 crore so far.

The company has raised Rs. 650 crore from anchor investors by allotting 59.3 million shares at Rs. 110 per share. Post IPO, the holding of foreign investors in the company will come down to 35% from the current 93%. 

Opening Bell - Sensex, Nifty in red

At 9:15 AM, the S&P BSE Sensex is trading at 24,636 down 49 points, while NSE Nifty is trading at 7,543 down mere three points. Asian markets have worries of their won and US indices ended in the red. 

 At 9:15 AM, the S&P BSE Sensex is trading at 24,636 down 49 points, while NSE Nifty is trading at 7,543 down mere three points.

Asian markets have worries of their won and US indices ended in the red. The currency movement, developments on the oil front and FII flows will continue to be routinely checked ahead of the weekend.

US stock indices tumbled on Thursday, with the technology shares particularly taking it on the chin, as investors turned to safe haven assets amid persistent worries over anemic global growth prospects. The Dow sank 1%, S&P 500 index fell 1.2% and  Nasdaq Composite declined 1.5%. The dollar fell to its lowest level against the yen in nearly 18 months. Since the beginning of the year, the dollar has shed more than 10% of its value against the Japanese currency. Expectations of a slowdown in US interest-rate hikes have sapped demand for the greenback. Gold prices rose 1.1% to settle at US$1,237.50 an ounce.

Finance Minister Arun Jaitley reportedly said that even if oil prices move a little higher, they will not be negative for India, but “exceedingly high” rates create problems for the country.

The Supreme Court on Thursday asked Vijay Mallya when he would return to India to negotiate on his offer to settle the INR 9,000 crore debt he and his companies owe 17 public sector banks (PSB).

The Reserve Bank of India in its State Finances Report notes that shareable taxes rose from 2.9% in FY15 to 3.4% of GDP in FY16. Also States Held Rs. 1.49 Lakh Crore 14-day T-bills As On March 31. Led by former CAG Vinod Rai four members Bank Board Bureau (BBB) will hold its first meeting in Reserve Bank of India headquarters in Mumbai on April 8 to discuss a range of issues including board level appointments in public sector banks and consolidation among themselves. 

Sensex, Nifty to open on a weak note

Asian markets have worries of their won and US indices ended in the red. US stock indices tumbled on Thursday, with the technology shares particularly taking it on the chin, as investors turned to safe haven assets amid persistent worries over anemic global growth prospects. 

As people celebrate Gudi Padwa in Maharashtra and Ugadi in Karnataka and Andhra Pradesh, they will consume a mixture of sweet and sour to symbolise good and bad. The market too is going through a choppy phase and is likely to see more sourness initially. Auto, IT and FMCG stocks led the decline on Thursday followed by realty, capital goods and banking stocks. Mid-cap and small-cap stocks are also mostly on the dumping list.

The Nifty has now declined by 2.5% post the Reserve Bank's interest rate reduction announcement on 5th April. While the Bank Nifty has fallen 4.3%, the Nifty PSU Bank index has plunged ~7% since then.

The outlook is a weak start. Asian markets have worries of their won and US indices ended in the red. The currency movement, developments on the oil front and FII flows will continue to be routinely checked ahead of the weekend.

US stock indices tumbled on Thursday, with the technology shares particularly taking it on the chin, as investors turned to safe haven assets amid persistent worries over anemic global growth prospects. The Dow sank 1%, S&P 500 index fell 1.2% and  Nasdaq Composite declined 1.5%. The dollar fell to its lowest level against the yen in nearly 18 months. Since the beginning of the year, the dollar has shed more than 10% of its value against the Japanese currency. Expectations of a slowdown in US interest-rate hikes have sapped demand for the greenback. Gold prices rose 1.1% to settle at US$1,237.50 an ounce.

Finance Minister Arun Jaitley reportedly said that even if oil prices move a little higher, they will not be negative for India, but “exceedingly high” rates create problems for the country.

The Supreme Court on Thursday asked Vijay Mallya when he would return to India to negotiate on his offer to settle the INR 9,000 crore debt he and his companies owe 17 public sector banks (PSB).

The Reserve Bank of India in its State Finances Report notes that shareable taxes rose from 2.9% in FY15 to 3.4% of GDP in FY16. Also States Held Rs. 1.49 Lakh Crore 14-day T-bills As On March 31. Led by former CAG Vinod Rai four members Bank Board Bureau (BBB) will hold its first meeting in Reserve Bank of India headquarters in Mumbai on April 8 to discuss a range of issues including board level appointments in public sector banks and consolidation among themselves.' 

ITC renews partnership with Starwood Hotels

ITC Ltd is currently trading at Rs. 321.55, down by Rs. 4.55 or 1.4% from its previous closing of Rs. 326.1 on the BSE. 

ITC Ltd has announced that it has renewed partnership with Starwood Hotels & Resorts.

ITC Ltd is currently trading at Rs. 321.55, down by Rs. 4.55 or 1.4% from its previous closing of Rs. 326.1 on the BSE.

The scrip opened at Rs. 328.4 and has touched a high and low of Rs. 328.4 and Rs. 320.45 respectively. So far 2218742(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 262419.42 crore.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 359.75 on 26-Oct-2015 and a 52 week low of Rs. 268 on 29-Feb-2016. Last one week high and low of the scrip stood at Rs. 336.75 and Rs. 324.25 respectively.

The promoters holding in the company stood at 0 % while Institutions and Non-Institutions held 55.93 % and 43.82 % respectively.

The stock is currently trading above its 200 DMA.

SBI sets home loan rates 25 bps above its MCLR Rate at 9.45%

The bank has set home loan rate 20 bps above MCLR at 9.40% for women borrowers.

State Bank of India sets home loan rates 25 bps above its MCLR rate at 9.45%. The bank has set home loan rate 20 bps above MCLR at 9.40% for women borrowers.

Stock view:

State Bank of India is currently trading at Rs. 184.85, up by Rs. 0.9 or 0.49% from its previous closing of Rs. 183.95 on the BSE.

The scrip opened at Rs. 184.05 and has touched a high and low of Rs. 185.65 and Rs. 181.15 respectively. So far 11339235(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 142796.28 crore.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 305 on 22-May-2015 and a 52 week low of Rs. 148.3 on 12-Feb-2016. Last one week high and low of the scrip stood at Rs. 198.75 and Rs. 182.5 respectively.

The promoters holding in the company stood at 60.18 % while Institutions and Non-Institutions held 28.55 % and 9.32 % respectively.

The stock is currently trading above its 200 DMA.

ITC: update on scheme of amalgamation

Greenacre is a wholly-owned subsidiary of Russell Credit Limited which, in turn, is a wholly owned subsidiary of ITC Limited. 

ITC Ltd has announced that the scheme of amalgamation of Classic Infrastructure & Development Limited, a wholly-owned subsidiary of Greenacre Holdings Limited (Greenacre), with Greenacre became effective from April 05, 2016. 

Greenacre is a wholly-owned subsidiary of Russell Credit Limited which, in turn, is a wholly owned subsidiary of ITC Limited. Consequently, Classic Infrastructure & Development Limited has ceased to be a subsidiary of Greenacre and that of ITC Limited with effect from the said date.

ITC Ltd is currently trading at Rs. 321.8, down by Rs. 4.3 or 1.32% from its previous closing of Rs. 326.1 on the BSE.

The scrip opened at Rs. 328.4 and has touched a high and low of Rs. 328.4 and Rs. 320.45 respectively. So far 1667727(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 262419.42 crore.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 359.75 on 26-Oct-2015 and a 52 week low of Rs. 268 on 29-Feb-2016. Last one week high and low of the scrip stood at Rs. 336.75 and Rs. 324.25 respectively.

The promoters holding in the company stood at 0 % while Institutions and Non-Institutions held 55.93 % and 43.82 % respectively.

The stock is currently trading above its 200 DMA.

Pfizer calls off US$ 160 bn merger with Allergan and other top pharma news of the day

Biocon chairperson Kiran Mazumdar-Shaw on Wednesday sought a five-year exemption from drug price control and asked the government to desist from “ad hoc” measures to help the pharmaceutical sector acquire scale and become competitive in the global market.

Pfizer Inc. today announced that the merger agreement between Pfizer and Allergan plc has been terminated by mutual agreement of the companies. The decision was driven by the actions announced by the US Department of Treasury on April 4, 2016, which the companies concluded qualified as an “Adverse Tax Law Change” under the merger agreement.

Biocon chairperson Kiran Mazumdar-Shaw on Wednesday sought a five-year exemption from drug price control and asked the government to desist from “ad hoc” measures to help the pharmaceutical sector acquire scale and become competitive in the global market.

The Centre can ban even those drugs approved by the highest drug regulatory authority, the government maintained at the Delhi High Court on Wednesday in defense of its ban on several combination drugs last month, said a lawyer present at the proceedings. The court has, meanwhile, extended by nearly two more weeks the stay on the ban of the brands using these combinations, added the lawyer, who is representing a large pharmaceutical firm in the hearings. (ET)Justifying its recent ban on 344 combination drugs, the central government told the Delhi high court on Wednesday that it was a “legislative exercise” that was not influenced by earlier approvals granted by the Drug Controller General of India (DCGI), a body which operates under the central act governing medicines in India.

The Drug Price Control Order (DPCO) 2013 that expanded the span of regulation to 60% of the $22-billion Indian pharmaceutical market appears to have come a cropper. A recent study confirmed what many analysts feared: That regulation of the kind prevalent now could dent access to medicines, an outcome opposite to what the government wants.

Dr Reddy's Laboratories US arm is recalling 3,342 vials of anti-osteoporosis injection, made by Gland Pharma, according to reports.

Cipla has set its sights on building a pipeline of speciality drugs in the United States. The company, India's third-largest drugmaker, plans to deploy more funds for research and development in respiratory, dermatology, neurology and oncology segments and hopes for the first commercial launch in the US around 2020. 

Asserting that regulatory action by the US Food and Drug Administration (USFDA) on leading Indian firms has impacted exports from the country, Dr Reddy's Laboratories Chairman Satish Reddy today asked for a dialogue between government and US health regulator.

The government has decided to relax a number of norms on environment clearances related to bulk drug manufacturing to encourage Indian drug makers and reduce the country’s dependence on Chinese imports.

Top 17 stocks in focus today: Tata Steel, Kotak Mahindra Bank, Dr Reddy's Lab

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

Tata Steel: The Tata group has decided to sell steel assets in the UK and will launch a formal sale process for the same by Monday. British business minister Sajid Javid had a two-hour meeting with the company's Chairman Cyrus Mistry at Bombay House, the Tata Group's headquarters, on Wednesday in an effort to save thousands of jobs.

Kotak Mahindra Bank: Kotak Mahindra Bank has announced that the Company's subsidiary, Kotak Mahindra (International) Limited (KMIL), a Foreign Portfolio Investor (FPI) has acquired 38,68,606 equity shares at Rs. 23.65 each, aggregating to Rs. 9.16 crore being 6.8% of the paid-up capital of Diamond Power Infrastructure Limited.

Tata Motors: Tata Motors is working on sub-2 litre (2,000cc) diesel engines for its portfolio of utility vehicles (UVs), a move that will enable it to sell vehicles in the National Capital Region (NCR), a top official has been quoted as saying by a business daily.  Tata Motors launched its much awaited hatchback Tiago at an aggressive introductory price of Rs 3.2 lakh to Rs 5.54 lakh ex-showroom New Delhi.

Sobha Ltd: The real estate company has registered new sales area of 3.38m sq ft valued at 20.12bn at an average price realisation of Rs. 5946 per sq ft.

Dr Reddy's Laboratories: Dr Reddy's Laboratories US arm is recalling 3,342 vials of anti-osteoporosis injection, made by Gland Pharma, according to reports.

Future Retail: Future Retail Limited has announced that the Company has made further investment in its subsidiary, Staples Future Office Products Limited (SFOL), pursuant to the rights issue, which has resulted in increase of its total holding from 60% to 61.67% of the equity share capital of SFOL.

Pfizer: Pfizer Inc. announced that the merger agreement between Pfizer and Allergan plc has been terminated by mutual agreement of the companies. The decision was driven by the actions announced by the US Department of Treasury on April 4, 2016, which the companies concluded qualified as an “Adverse Tax Law Change” under the merger agreement.

Biocon: Biocon Chairperson Kiran Mazumdar-Shaw on Wednesday sought a five-year exemption from drug price control and asked the Government to refrain from announcing “ad hoc” measures to help the pharmaceutical sector become globally competitive.

Axis Bank: Axis Bank, a lender to Jaypee Infratech Ltd, has taken possession of the debt-laden company’s headquarters in Noida, reports a business daily.

Bajaj Auto: Bajaj Auto’s ambitious Qute quadricycle secured a one-star rating in crash tests performed by the Brussels-based Euro New Car Assessment Programme, or Euro NCAP, reports a business daily.

Nava Bharat Ventures Ltd: The company entered into an agreement for renewal of Conversion arrangement of Chrome Ore into Ferro Chrome, with Tata Steel for a period of 4 years commencing from April, 2016, to produce up to 70,000 MT of High Carbon Ferro Chrome per annum at its Odisha Ferro Alloy Plant.

Gayatri Projects: The company is planning to restructure debt via 5/25 scheme, says report.

Siemens: Siemens has announced that it has partnered with NTPC to boost power generation in South India.

Adani Power: Adani Power Ltd has informed BSE that the board of directors of the company at its meeting held on April 06, 2016, approved Preferential offer and issue of up to 52,3 crores Warrants, convertible into equivalent number of Equity Shares of Rs. 10/- each to the promoter group entities subject to the approval of the Members of the Company through postal ballot by way of passing special resolution under Section 42 and 62 of the Companies Act, 2013 and other necessary regulatory approvals.

MEP Infrastructure Developers Ltd: MEP Infra in a joint venture (JV) with its Spanish partner has received Letters of Award (LOAs) for Rs.1762.98 Crores from National Highways Authority of India (NHAI) and Ministry of Road Transport and Highways (MORTH).

INOX Leisure Limited: INOX, one of the largest cinema exhibition chains in India, announced an agreement with IMAX Corporation, for five IMAX theatre systems.

ABB India, Welspun Energy: ABB India and Welspun Energy, have together installed about 700 MW of solar photovoltaic projects across several states in India like Punjab, Rajasthan, Gujarat, Maharashtra, Karnataka and Tamil Nadu.