Sensex slips 160 pts, US jobs data eyed

Markets continued their losing spree for the fourth straight seesion on Friday as investors turned cautious and booked profits

Markets  continued their losing spree for the fourth straight seesion on Friday as investors turned cautious and booked profits at higher levels ahead of the US jobs data due later today. An encouraging US jobs data would help the US Fed to start winding down its monetary stimulus measures sooner than expected.

The 30-share Sensex ended down 157 points at 20,666 and the 50-share Nifty ended down 46 points at 6,141.

The rupee recovered slightly from the day's lows and was trading at Rs 62.63 compared with previous close of Rs 62.42 per dollar.

Asian share indices continued to remain weak as investors turned cautious ahead of the US jobs data later today. A robust jobs data would help the US Fed start reducing its monetary stimulus measures sooner-than-expected. Japan's benchmark share index, the Nikkei, ended down 1.1% at 14,086.80. Among other indices in the region, Shanghai COmposite ended down 1.1%, Hang Seng closed 0.6% lower while Straits Times ended down 0.8%.

Stocks in Europe witnessed profit booking on Friday on worries that better-than-expected US jobs data may help the US Fed to start winding down its monetary stimulus measures sooner than expcted. Further, global rating agency Standard & Poor's to lower France's sovereign credit rating to AA from AA+ also weighed on investor sentiment. The CAC-40, DAX and FTSE-100 were down 0.3-0.9% each.

The BSE Consumer Durables index was the top loser among the sectoral indices down 2% followed by Oil & Gas, Bankex, Auto and FMCG indices.

Financials were among the top Sensex losers with HDFC and HDFC Bank down 3.8% and 1.9%, respectively. SBI and ICICI Bank ended marginally lower.

In the oil and gas segment, Reliance Ind ended down 1.2% at Rs 876 and PSU exploration major ONGC ended over 2% down at Rs 277.

Other Sensex losers include TCS, Mahindra & Mahindra and Bajaj Auto.

Capital goods shares were among the top Sensex gainers. L&T and BHEL ended up 0.7-1.8% each.

Tata Motors ended up 1.3% ahead of its second quarter earnings later today.

Among other shares, Tech Mahindra has rallied 6% to end at Rs 1,674, after reporting 4.7% quarter-on-quarter (qoq) growth in the dollar revenues to US$ 758 million for the quarter ended September 30, 2013. Analyst expected revenue to drop around 3% for the quarter.

Aurobindo Pharma surged nearly 9% up to end at Rs 260 after reporting a healthy 80% year-on-year (yoy) growth in consolidated adjusted net profit at Rs 245 crore for the quarter ended September 30, 2013 (Q2) on back of strong operational performance. The pharmaceutical company had profit of Rs 136 crore in a year ago quarter.

Eicher Motors gained 2.9% on reporting a robust 63% year-on-year (yoy) jump in consolidated net profit at Rs 107 crore for the third quarter ended September 30, 2013 (Q3) mainly due to one-time other operating income of around Rs 53 crore. The company had posted a net profit of Rs 66 crore during the same period of previous year.

Shares of Punjab National Bank (PNB) dipped 4.2% to end at Rs 522 on BSE after net profit of the state-owned bank has been more than halved at Rs 505 crore during the quarter ended September 30, 2013 (Q2) due to higher provisioning for bad loans.

Sun TV Network dipped 5.6% to end at Rs 413 after reporting a lower than expected 11.5% year-on-year (yoy) growth in net profit at Rs 169 crore for the quarter ended September 30, 2013 (Q2) due to slower revenue growth.

Thinksoft Global Services ended locked in upper circuit of 20% at Rs 194 on BSE after the company said that SQS Software Quality Systems AG has made an open offer at price of Rs 260 per share to public shareholders.

In the broader market, the BSE Mid-cap and Small-cap indices ended marginally lower.

Market breadth was negative with 1,319 losers and 1,121 gainers on the BSE.

Cummins India surges despite reporting 10% fall in Q2 net profit

Cummins India is currently trading at Rs 405.00, up by 2.85 points or 0.71% from its previous closing of Rs 402.15 on the BSE.

The scrip opened at Rs 397.85 and has touched a high and low of Rs 406.00 and Rs 392.00 respectively. So far 20609 shares were traded on the counter.

The BSE group 'A' stock of face value Rs 2 has touched a 52 week high of Rs 550.00 on 09-Jan-2013 and a 52 week low of Rs. 365.05 on 28-Aug-2013.

Last one week high and low of the scrip stood at Rs 414.00 and Rs. 396.50 respectively. The current market cap of the company is Rs 11226.60 crore.

The promoters holding in the company stood at 51.00% while Institutions and Non-Institutions held 35.32% and 13.68% respectively.

Cummins India has reported results for the second quarter ended September 30, 2013.

The company has reported a fall of 10.02% in its net profit at Rs 144.81 crore for the quarter as compared to Rs 160.94 crore for the same quarter in the previous year. Total income of the company has decreased by 11.79% at Rs 988.55 crore for quarter under review as compared to Rs 1120.72 crore for the quarter ended September 30, 2012.

Canara Bank hikes deposit rates by 0.50%

Taking cue from other lenders, state-run Canara Bank today hiked interest rates on fixed deposits by up to 0.50 per cent.

Fixed deposits in the maturity bracket of 46 days to 60 days and 61 days to 90 days would now fetch interest rates of 7.50 per cent, up from 7 per cent earlier, effective today, Canara Bank said in a filing to the BSE.

For deposits above one year to less than two years, the interest rates would now be 9.05 per cent, up from 8.75 per cent. For those of five years and above to less than 8 years would now be 9.05 per cent, up from 8.75 per cent.

Additional interest rate of 0.50 per cent would be given to senior citizens for domestic term deposits, Canara Bank said.

With revision in deposit rate, the peak rate has gone up to 9.05 per cent. Term deposit between one year to up to 10 years would earn interest rate of 9.05 per cent.

Besides, state-run Punjab National Bank (PNB) has hiked interest rates on select maturities by up to 0.50 per cent effective from November 11.

Fixed deposits for less than Rs. one crore between 271 days to less than one year would yield interest rate of 8 per cent, up from 7.50 per cent earlier, PNB said.

In case of maturity period of one year and above up to 10 years, uniform interest rates of 9 per cent shall be applicable, PNB said.

Earlier this week, private sector Axis Bank had revised the interest rates on select maturities for fixed deposits of less than Rs. 1 crore. In two buckets there was an upward revision of 0.25 per cent and in 9 buckets a downward revision of 0.25 per cent by the bank.

The rate revision by various lenders comes after the Reserve Bank hiked interest rates by 0.25 per cent in its monetary policy on October 29.

Following this, country's largest lender State Bank of India (SBI) and HDFC Bank hiked their base rate or the minimum lending rate by 0.20 per cent to 10 per cent.

UCO Bank Q2 net up 4-fold to Rs. 400 crore

 Public sector UCO Bank today reported a near four-fold jump in net profit at Rs. 400 crore for the second quarter ended September 30.

The bank had a net profit of Rs. 103.7 crore in the July- September quarter of 2012-13 fiscal.

Total income of the bank increased to Rs. 4,653.30 crore for the quarter ended September, from Rs. 4,408.55 crore in the same quarter a year ago, UCO Bank said in a filing to the BSE.

The gross NPAs of the bank rose to 5.32 per cent during the quarter, from 4.88 per cent in the year ago period.

Interest income of the bank rose to Rs. 4,444 crore during the second quarter, from Rs. 4,196 crore in the same period a year ago.

Shares of UCO Bank were trading at Rs. 74.20, up 4.51 per cent in the afternoon trade on the BSE.

State-run banks' capital adequacy ratios dip on rise in credit demand

Data on the CARs differ according to whether PSBs have gone by Basel-II or Basel-III norms

The capital adequacy ratios of public sector banks (PSBs) in the country continue to shrink, following a pick-up in credit demand and requirement of higher provisions in the wake of asset quality deterioration.

Most state-run lenders, which have announced their second quarter earnings so far, have reported a dip in their capital adequacy ratios (CARs) in the July-September period.

Data on the CARs differ according to whether PSBs have gone by Basel-II or Basel-III norms.

BANKING ON GOVT

Most PSBs have reported a dip in their capital adequacy ratios (CAR) in the July-September period.

Bank of Baroda saw its CAR as per Basel-II contracting to 12.32 per cent at the end of September 2013 from 12.70 per cent a quarter ago.

Allahabad Bank closed July-September quarter with a CAR of 11.07 per cent.

Bankers hope that the govt's decision to inject Rs 14,000 crore capital will help them meet regulatory requirements and finance business growth.

Sudden rise in credit demand is one of the main reasons for dip in capital adequacy ratios.

Bank of Baroda, the second largest state-run lender in the country, saw its CAR according to Basel-II contracting to 12.32 per cent at the end of September from 12.70 per cent a quarter ago and 12.91 per cent a year earlier. The ratio also declined sequentially by 39 basis points when computed according to the new Basel-III norms to 12.07 per cent.

Allahabad Bank closed the quarter with a ratio of 11.07 per cent under Basel-II guidelines. While it was flat on a sequential basis, the ratio narrowed by 109 basis points from the corresponding period of previous year. However, bankers appear confident that the government's decision to inject Rs 14,000 crore capital in state-run banks will help them meet regulatory requirements and finance business growth.

"The government has decided to infuse Rs 400 crore capital in the bank. That will strengthen our capital base and will help us comply with the CAR under Basel-III norms. In addition, we are planning to raise Rs 330 crore through a qualified institutional placement (QIP). The timing of the issue will depend on market conditions," Shubhalakshmi Panse, chairperson and managing director of Allahabad Bank, said.

The Kolkata-based public sector bank's CAR was 10.72 per cent according to Basel-III rules at the end of September compared to 10.60 per cent a quarter ago.

Union Bank of India will also get Rs 500 crore from the government in the current financial year. The bank's CAR decreased by 76 basis points sequentially and 101 basis points from a year ago to 10.38 per cent under Basel-II norms at the end of the second quarter.

The bank's Chairman and Managing Director D Sarkar said the lender was exploring options to raise money through QIP but is yet to finalise the fund raising plan.

Bank of India, which more than doubled its net profit on a year-on-year basis in the July-September quarter, has also witnessed a dip in its capital adequacy ratio under Basel-II norms. Its capital adequacy ratio was 10.86 per cent according to Basel-II at the end of September compared to 11.10 per cent a year earlier.

Bankers and industry analysts believe the dip in capital adequacy ratios was primarily on account of sudden rise in credit demand. The industry credit growth accelerated to 16.6 per cent on a year-on-year basis to Rs 5,614,926 crore at the end of October 18, 2013. The increase was more than the Reserve Bank of India's (RBI) forecast of 15 per cent year-on-year growth in bank advances in 2013-14.

According to the banking regulator, the increase in money market rates, including discount rates on commercial papers, and subdued primary market conditions have persuaded domestic corporates to borrow money from banks leading to a rise in loan demand.

Higher provision requirements amid deterioration in credit quality have also contributed to the fall in capital adequacy ratios, analysts said. They added capital requirements of public sector banks would continue to expand if the lenders fail to check the rise in bad assets.

NTPC inches up on its subsidiary commissioning UNIT-I of MTPS Stage-I

NTPC is currently trading at Rs. 152.50, up by 0.25 points or 0.16% from its previous closing of Rs. 152.25 on the BSE.

The scrip opened at Rs. 152.00 and has touched a high and low of Rs. 153.20 and Rs. 150.50 respectively. So far 82028 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 170.70 on 08-Nov-2012 and a 52 week low of Rs. 122.65 on 28-Aug-2013.

Last one week high and low of the scrip stood at Rs. 155.20 and Rs. 145.00 respectively. The current market cap of the company is Rs. 124918.79 crore.

The promoters holding in the company stood at 75.00 %, while Institutions and Non-Institutions held 20.43 % and 4.57 % respectively.

NTPC’s subsidiary company - Kanti Bijlee Utpadan Nigam’s Unit-I of 110 MW of Muzaffarpur Thermal Power Station (MTPS) Stage-I was declared on commercial operation with effect from November 01, 2013, subsequent to achieving the full load on August 09, 2013.

With this the total installed capacity and total commercial capacity of NTPC Group has become 41,794 MW and 40,294 MW respectively.

BSE Sensex down over 170 points

Some buying activity is seen is healthcare and FMCG sectors on BSE, while consumer durables, banking, oil & gas, PSU and realty sectors are losing sheen

At 12:56 PM, S&P BSE Sensex is 20,653 down 169 points, while CNX Nifty is at 6,134 down 52 points.

BSE Mid-cap is at 6,196 down 24 points, while BSE Small-cap is at 5,999 down 30 points.

Some buying activity is seen is healthcare and FMCG sectors on BSE, while consumer durables, banking, oil & gas, PSU and realty sectors are losing sheen.

Tata Steel, Tata Motors, SSLT, Dr Reddy's Lab, Cipla, ITC and L&T are up on BSE, whereas HDFC, Maruti Suzuki, HDFC Bank, Coal India, ONGC, Gail, TCS and Hindalco are showing some weakness.

UCO Bank gained 5.35% on the news that its net profit increased to Rs. 4 billion in the quarter ended September 30, 2013 from Rs. 1.03 billion for the quarter ended September 30, 2012.

JSW Steel said its crude steel production increased 39% to 10.62 lakh tonnes in October 2013. The scrip is 0.22% down on BSE.

Aurobindo Pharma gained 9.59% on BSE. The company posted a net profit of Rs. 1.79 billion for the quarter ended September 30, 2013 against Rs. 2.38 billion for the quarter ended September 30, 2012.

Reliance Industries Ltd and Essar Oil Ltd have joined the race to supply diesel to the Indian Railways for the next year. RIL is 1.06% down, while Essar Oil declined 1.52% on BSE.

Parsvnath Developers said it plans to monetise non-core land parcel in south-west India either through joint ventures with local builders or outright sale of plots. The scrip is 0.38% down on BSE.

Market regulator SEBI (Securities and Exchange Board of India) has issued 154 attachment notices till date for recovering more than Rs 1,545 crore from various defaulters and is in the process of ascertaining the amounts available in the bank accounts held by the respective defaulters.

Indian mutual funds' average assets under management (AUM) fell by 4.5% or Rs 38,355 cr to Rs 8.08 lakh cr during the quarter ended September 2013 compared to Rs 8.47 lakh cr in the previous quarter (excluding fund of funds), according to CRISIL.

Nikkei closed 141 points down at 14,086, while Hang Seng is trading 137 points down at 22,744.

Telecom Commission asks TRAI to fix reserve price for 800-MHz in 15 days

The Telecom Commission (TC), major decision-making agency of the Department of Telecommunications (DoT), has asked the Telecom Regulatory Authority of India (TRAI) to recommend the reserve price for the 800 MHz band within 15 days so that the government could auction the 800-MHz spectrum along with the 1,800-MHz and 900-MHz bands. The Telecom Commission is of the view that keeping 800 MHz band spectrum unsold would result in lower revenues for government and it may be appropriate to put the spectrum to auction to allow telecom players to determine the appropriate technology solution using the liberalised spectrum. The government has planned to conduct the auction on January 8, 2014.

Earlier, the Department of Telecommunications (DoT) had rejected TRAI's recommendation of an extended GSM band, taking spectrum out of the existing 800-MHz (CDMA) band as CDMA operators, including Reliance Communications, Sistema Shyam, and Tata Teleservices currently use it, and the proposed extended GSM band would block their further roll out.

Meanwhile, Telecom Commission (TC) has also recommended raising reserve price for auction of pan-India mobile phone spectrum by 15% more than the price suggested by the TRAI in the 1,800 megahertz (MHz) and by 25% more in case of 900 MHz. Further, in order to enhance telecom geographical coverage, the Commission has also decided to modify the roll out obligation of telecom operators in a bid to ensure that all villages are connected. In India, around 50,000 more villages are yet to be covered by mobile operators.

India Investment Partners acquires 1.45% stake in Atul Auto

India Investment Partners has reportedly acquired 1.6 lakh shares or 1.45% stake in Atul Auto for an average price of Rs 265, through open market route valuing the transaction at Rs 4.24 crore.

Atul Auto is a leading manufacturer of 3-Wheeled Commercial Vehicles in the state of Gujarat, presently engaged in the manufacturing of Three Wheelers like 6-seater Auto Rickshaws, Pick-Up Vans and Chassis of Passenger Vehicles.

Tata Motors operating profit may beat estimates

Tata Motors may beat consensus operating profit forecasts for the July-September quarter when it reports results later in the day, Thomson Reuters StarMine's SmartEstimates shows.

StarMine's SmartEstimates, which places greater emphasis on forecasts by top-rated analysts, expects Tata Motors to report an operating profit of 76.09 billion rupees for the quarter, compared with a consensus mean estimate of 74.80 billion rupees.

Still, in terms of net profit, StarMine's SmartEstimates expects India's largest automaker by revenue to post September quarter net profit of 24.93 billion rupees, lagging consensus mean estimate of 25.48 billion rupees.

Tata Motors shares are up 1.2 percent at 9:59 a.m.