Provisional: Sensex ends 200 pts higher, Rupee gains

On a provisional basis, 30-share Sensex gained 205 points to end at 18,517

Markets ended on a positive note this Friday with benchmark index Sensex gaining over 200 points on back of recovery in Rupee.

On a provisional basis, 30-share Sensex gained 205 points to end at 18,517 and the 50-share Nifty rose 63 points at 5,471 levels.

The rupee strengthened marginally amid lacklustre trade in the afternoon. There is dollar demand from importers, however, according to currency dealers it is not "that significant" in early trade today.

The rupee was quoting at Rs 64.26 compared with previous close of Rs 64.63. It had even strengthened to a level of 64.30 per dollar.

Jammu and Kashmir Bank opens five new branches

Jammu and Kashmir Bank has taken its total branch network to 701 by adding five new branches. The addition is the part of Bank’s massive expansion plan to spread its wings far and wide especially within the state of J&K. The new branches include Soimoh in Tral area of Pulwama district, Wandevalgam and Ahlan Gadole in Anantnag, Trenz and Fruit Mandi Prichoo in Shopian.  To keep the expansion momentum going, the bank is planning to take its branch network to 800 by the end of current fiscal.

J&K Bank has taken the Khidmat Centres e-governance project to make information and knowledge reaches all corners of the state as well as to ensure growth for both urban and rural sections of the society.

Maharashtra Electricity Regulatory Commission (MERC) allows RInfra to recover Rs 925 crore arrears per year along with 14.5% p.a carrying cost

Maharashtra Electricity Regulatory Commission (MERC) has allowed Rlnfra to recover past arrears, along with 14.5% per annum (p.a) carrying cost, at Rs. 925 crore per year, aggregating to Rs. 5,550 crore over the next 6 years.

The MERC has also allowed Rlnfra to recover revised Cross Subsidy Surcharge (CSS) of Rs. 819 crore for the current FY 2013-14, Rs  896 crore for FY 2014-15 and Rs 590 crore for FY 2015-16.

According to the MERC order, revised tariff, the arrears recovery and revised CSS will become effective from 1 September, 2013.Rlnfra's tariffs are most competitive across all major categories, and this will ensure major inflow of high-end consumers back to Rlnfra. Notwithstanding the above, Rlnfra's tariffs are expected to reduce by 12% and 11% in the next two financial years, benefitting its valued customers significantly, mainly owing to efficient and low power procurement cost by Rlnfra.

Rlnfra is the largest power distribution licensee in Mumbai, with 25 years license to distribute electricity in its licensed distribution areas spread over 400 Sq. Kms. in the suburbs and surrounding areas of Mumbai, and supplying power to around 29 lakh consumers.

Consumer durables, capital goods stocks push Sensex up 57 points

Indian markets were trading up by over 0.3 per cent in the afternoon session on buying by funds and retail investors in select stocks amid firm Asian cues.

At 12.00 noon, the 30-share BSE index Sensex was up 56.97 points (0.31 per cent) at 18,369.91 and the 50-share NSE index Nifty was up 23.6 points (0.44 per cent) at 5,432.05.

Among BSE sectoral indices, consumer durables index rallied by 2.61 per cent, followed by capital goods 1.24 per cent, auto 1.15 per cent and oil & gas 1.09 per cent.

On the other hand, metal and FMCG indices lost investors' support and were down 0.35 per cent and 0.31 per cent, respectively.

Among 30-share Sensex, BHEL, Jindal Steel, TCS, Tata Motors and M&M and ICICI Bank were the top five gainers, while the top five losers were Bharti Airtel, Sterlite, Hindalco, NTPC and Cipla.

Asian shares were up after economic data from Europe to US suggested that the global economy is improving.

Purchasing managers surveys showed better-than-expected growth in the euro zone, a Chinese manufacturing rebound and US manufacturing activity rising to a five-month high this month.

Also, the US Labour Department data showed new claims for jobless benefits held near a six-year low last week, adding to signs that the US jobs market is stabilising.

Nikkei surged 368.77 points or 2.76 per cent to 13,733.90, Hang Seng jumped 113.86 points or 0.52 per cent to 22,009.30 and S&P/ASX 200 gained 50.95 points or 1.00 per cent to 5,126.70.

Rising rates, slow business growth to dent loan demand

The modest recovery in credit growth earlier this month is unlikely to sustain as rising rates coupled with slow business activities and uncertain macro-economic environment are expected to dent loan demand. Some of the analysts even consider the situation to be worse than early 90s, when capital spending and credit demand was significantly weak.

"We have lost all hope. Nothing is going to happen till central government elections in April/May 2014 and we are now going to be in an extended period of low growth. Our economist does not expect much recovery in 2013-14 (even 2014-15 is very unclear as of now) and we expect disappointments on all fronts – loan growth, margins and asset quality," Suresh Ganapathy, analyst with Macquarie Capital Securities, wrote in a recent note to his clients.

Credit growth recovered to a five-month high level of 16.6% at the start of August after staying below 15% since the beginning of this financial year. Bankers had attributed the revival to strong demand for retail loans.

However, with lenders now increasing their loan rates demand for retail credit is likely to take a hit.

India's largest mortgage lender Housing Development Finance Corporation (HDFC) and largest private sector lender ICICI Bank have increased their lending rates by 25 basis points each from today. The moves follow lending rate hikes by other large and mid-sized private banks including HDFC Bank, Axis Bank and YES Bank.

"Borrowing cost is becoming expensive. Retail loan demand is expected to decline if the current situation persists. There is uncertainty over jobs and salary increments, while inflation is on the rise. Consumers will not be too keen to borrow money in this environment," said an analyst with a domestic brokerage.

Macquarie Capital Securities has cut its loan growth expectation to around 13% in the current financial year, almost 300 basis points lower than 2012-13 credit growth.

According to Barclays Capital, the slowdown in credit growth is likely to be more prolonged than the decline in deposit growth.

"The current macro context and consequently the monetary policy challenges are similar to those in 1991-92...If the 1991-92 scenario is repeated, the credit growth rate could drop to 10-11%. Slower system growth would put pressure on public sector banks given their inflexible cost structures," Anish Tawakley, analyst with Barclays Capital, said in his note to clients.

City Union Bank inaugurates new branch at Bhopal, Madhya Pradesh

City Union Bank has inaugurated new branch at Bhopal, Madhya Pradesh on August 23, 2013. Recently, the bank opened new branch at Batlagundu, Dindigul on August 12, 2013.

City Union Bank’s first quarter net profit surged 22 percent year-on-year to Rs 90.3 crore on lower provisions. While, net interest income jumped 35.8 percent to Rs 187.4 crore in April-June quarter from Rs 138 crore in a year ago period. The company’s gross non-performing asset (NPA) increased 12 bps quarter-on-quarter to 1.25 percent, but net NPA was unchanged at 0.63 percent.

NHPC strengthens on plan to buyback shares worth Rs 1,600 crore

NHPC, the country’s largest hydro power producer is planning to buyback shares worth Rs 1,600 crore instead of going through Offer for Sale. The share buyback proposal is aimed at improving the value of company's share in the market. In this regard, the company is seeking approval from its Board, after which the Power Ministry will approach the Cabinet for the final nod.

The government had earlier planned to disinvest 11.36% stake in NHPC through OFS in the domestic market, which is in the doldrums. At present, the government holds 86.36% stake in the state-owned company.

The company, currently, generates 5,702 MW electricity from 17 hydel stations in the country and as many as seven power stations totalling 4,095 MW capacity are under construction.

NHPC is engaged in the planning, development and implementation of an integrated and efficient network of hydroelectric projects in India. It executes all aspects of the development of hydroelectric projects, from concept to commissioning.

NALCO inks 5-yr fuel supply agreement with MCL

National Aluminium Company (NALCO), a Navratna PSU of Ministry of Mines, has reportedly signed a long term fuel supply agreement with Mahanadi Coalfield (MCL). As part of the pact, MCL will supply 47.16 lakh tonnes of coal to NALCO’s captive power plant at Angul and 873,324 tonnes of coal for its steam cum power generation plant, at Damanjodi.

The agreement, which is for a period of five years from 2013 to 2018, was signed on August 21, 2013.

The company’s total alumina sale during first quarter ended June 2013 stood at 2.83 lakh tonnes (LT) as against 2.53 LT in the first quarter of the previous fiscal. As regards metal sales, the company sold 0.85 LT in Q1 as against 1.02 LT in the corresponding period of previous year.

Parsvnath Developers surges on paying Rs 500.86 crore to RLDA to develop Sarai Rohilla land

Parsvnath Group, India’s leading real estate and infrastructure developer with a diversified portfolio, has paid an amount of Rs 500.86 crore to Rail Land Development Authority (RLDA), Ministry of Railways for the development of 15.27 hectares (38 acres) of railway land area situated at Sarai Rohilla-Kishanganj in Delhi. A development agreement has been executed between RLDA and Parsvnath Rail Land Project, a special purpose company (SPV) incorporated for implementing this Project on 31st May, 2013.

This Project will be developed over an area of about 15.27 hectares (38 acres), comprising of luxury air-conditioned residential apartments, commercial/ shopping areas, railway housing, railway service building & common facilities, hospital/school and other amenities, state of the art club with gymnasium and sports facilities, etc.

Parsvnath Developers is one of India’s leading real estate developers. The company has emerged as one of the most progressive and multi-faceted real estate and construction entities in the country.

Hero MotoCorp introduces two-wheelers in Peru

Hero MotoCorp, country’s largest two-wheeler maker has entered into Peru with the launch of the ‘Hero’ brand and its range of two-wheelers in the Latin American nation. It has employed MOTOCORP SAC- a part of the EFE Group of Peru - as distributor to sell its two-wheelers to in the country.

With this initiative, the company aims to surpass 100 million units in cumulative sales by 2020. The range of Hero two-wheelers which are now available in Peru include brands across segments - scooter Pleasure, Passion Pro, Glamour, Hunk, Thriller, Karizma ZMR and Karizma R.