BSE to shift 57 scrips, NSE to move 26 stocks to 'T' group

The Bombay Stock Exchange and the National Stock Exchange will transfer the stocks of several companies, including Emami Infrastructure and Shriram EPC, to the restricted trade category from Friday.

The move is part of a surveillance review to safeguard the interest of investors in the capital market.

BSE would shift 57 securities to the trade-to-trade or ‘T’ group, while NSE would transfer 26 stocks to this segment, the two stock exchanges said in separate circulars.

Among other stocks which would be shifted to the ‘T’ group segment on both the bourses include Hindustan Dorr-Oliver Ltd, Hindustan Organic Chemicals, Plethico Pharmaceuticals and Ramco Systems.

Besides, BSE would also be shifting Deccan Chronicle Holdings to the restricted trade segment on its platform.

In the trade-to-trade segment, no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory.

As per the bourses, the move is part of the “surveillance review, with a view to ensure market safety and safeguard the interest of investors’’.

The stock exchanges have advised the trading members to take “adequate precaution” while trading in these scrips “as the settlement will be done on trade-to-trade basis and no netting off will be allowed’’.

However, they added that the transfer of these securities for trading and settlement on a trade-to-trade basis “is purely on account of market surveillance and it should not be construed as an adverse action against the concerned company’’.

These stocks would attract a price band of 5 per cent which would be the maximum permissible limit within which the share price can move.

Power Grid share sale likely to open on 3 Dec: sources

Company filed for a follow-on offering of 17% stake with market regulators

State-run Power Grid Corp of India's sale of shares, valued at about $1.2 billion, is likely to open on December 3, three sources with direct knowledge of the matter said, in a process that could revive the government's divestment programme.

Power Grid said on Monday that it had filed for a follow-on offering of 787 million shares, or 17% stake, with the market regulators.

The offering includes fresh issue of 601 million shares and disinvestment of 185 million shares, or 4% stake, by the Indian government.

The Power Grid issue is likely to remain open for investors to bid until December 6, said the sources, who declined to be named as they were not authorised to speak to the media before a public announcement.

A Power Grid official said the issue was likely to be launched in December but he was not aware of the launch date. Ravi Mathur, secretary at the Department of Disinvestment, was not immediately available to comment.

Markets remain flat amid range bound trade

Markets flat in noon trades tracking weak Asian cues

Benchmark share indices continued to trade flat in noon trades on Tuesday tracking weak Asian cues with the Nifty find tough resistance above 6,200.

At 1PM, the 30-share Sensex was up 25 points at 20,876 and the 50-share Nifty was up 7 points at 6,190.

The rupee continued to stregthen against the dollar on regional cues while the benchmark 10-year bond yield eased after the announcement of the new 10-year bonds.

At 1PM, the rupee was quoting at 62.14 versus its Monday close of 62.41/42. It is seen in a range of 61.80 to 62.50 for the session, traders said.

Asian markets witnessed profit taking after sharp gains in the Hang Seng and Shanghai Composite on MOnday. The Shanghai COmposite was down 0.3%, Hang Seng slipped 0.1%, the Nikkei and Straits Times eased 0.3% each.

" Markets expected to remain flat today. This is actually likely to transform into a range trading pattern with the Nifty moving between 6000-6300 with futures premium relative to spot declining as settlement comes closer. A breakout above 6350 would be a strong positive signal. Given that, we have congestion zones at roughly 50-pt intervals at 6000, 6050, 6100, 6150 etc. So a trader can use those as support-resistance markers and set stop losses accordingly," Says technical analyst,Devangshu Datta.

The BSE Realty Index continued to remain the top sectoral gainer up 1.1% followed by Capital Goodss, Auto, Bankex, Oil and Gas indices. FMCG Index was the top loser down 0.5% followed by Consumer Durables, Metal, Healthcare and Power indices.

IT major Infosys was up nearly 1% contributing the most to the Sensex gains followed by State Bank of India, L&T and Index heavyweight Reliance Industries.

Bharti Airtel was up 1.4% on reports of sale of its tower business in Africa.

Other Sensex gainers include, ICICI Bank, Maruti Suzuki and HDFC

HDFC Bank, TCS and ITC were among the top Sensex losers.

Among other shares, Shalimar Paints has rallied nearly 15% at Rs 96 on back of heavy volumes on the bourses. The stock opened at Rs 82.70 on BSE and has seen over two-fold jump in trading volumes. Over 1.5 million shares were traded so far on both stock exchanges against an average 500,000 shares that were traded daily in past two weeks on BSE and NSE.

In the broader market, the BSE Mid-cap was up 0.2% and the Small-cap index was marginally up with positive bias.

Market breadth was nearly neutral with 1,087 gainers and 1,058 losers on the BSE.

Rupee strengthens to 61.91 on increased dollar selling

The rupee was trading up by 49 paise at 61.91 against the dollar at 1.35 p.m. local time due to increased selling of the US currency owing to sustained capital inflows into the equity market by foreign funds amid firm equities.

The rupee gained 22 paise to 62.18 per dollar in the opening trade against the previous close of 62.40.

The rupee hovered in the range of 61.91-62.33 levels.

On Monday, the domestic unit had logged its biggest gain in about one-and-a-half month as it strengthened by 71 paise.

The dollar fell to its weakest level in more than a week following comments by Janet Yellen, US Federal Reserve’s next chief, that she will continue the $85 billion-a-month monetary stimulus programme. This boosted all Asian currencies.

Call rates, G-secs

The overnight call money rate, the rate at which banks borrow short-term funds from each other, opened flat against the previous close of 8.75 per cent.

Yield on the 10-year benchmark bond, 7.16 per cent maturing in 2023, hardened to 9.05 per cent against the previous close of 9.02 per cent.

Goyal cuts Jet holding by 7.9% ahead of board meet

Wednesday meeting to finalise Etihad stake sale and CEO appointment

Jet Airways’ board will meet on Wednesday to finalise the preferential allotment of 24 per cent equity to Etihad Airways. The allotment might take place the same day, said a source in the know.

The board will also finalise the appointment of Etihad’s Chief Executive Officer James Hogan and Etihad’s chief financial officer James Rigney on its board, the source added.

Last week, the Competition Commission of India had given its green signal to the deal between the two airlines, paving the way for Etihad’s Rs 2,060-crore investment in the Indian airline.

On Monday, Jet Airways’ promoter Naresh Goyal sold the 7.89 per cent stake he was holding through Tail Winds, a promoter entity of Jet Airways, worth Rs 211 crore. The stake sale of 6.8 million shares, which represent the entire stake of Tail Winds Ltd, was carried out in a series of bulk deals and the equity was purchased by several Indian and foreign institutional investors.

A Jet spokesperson did not respond to an SMS query on the issue.

Goyal still owns 67.1 per cent of shares in the airline.

Among those who picked up Tail Winds’ stake include Merrill Lynch Capital Markets, which purchased 2.9 million shares and Deutsche Securities Mauritius Limited which bought 1.26 million shares.

“Etihad Airways is being treated as a public shareholder and the airline felt there should be sufficient free float post issue of equity to Etihad, so the promoters decided to dilute their shareholding,” said an airline executive. Separately, the Securities and Exchange Board of India, asked Goyal to bring down his stake to 51 per cent in ordinary shareholders’ interest.

After allotment to Etihad, the shareholding pattern of Jet Airways will have Goyal owning 51 per cent, Etihad getting 24 per cent and balance will be public shareholding.

Shares of Jet Airways closed at Rs 310.40 apiece, down 4.39 per cent over the previous close.

BHEL bags order worth Rs 1,300 crore from NBPPL

State-owned heavy equipment maker, Bharat Heavy Electricals (BHEL) has bagged order worth Rs 1,300 crore from NTPC BHEL Power Projects (NBPPL), a joint venture between NTPC and BHEL for the supply and installation of the Steam Generator, Steam Turbine Generator and Electrics Package for the upcoming 500 MW Feroze Gandhi Unchahar Thermal Power Project (TPP).

BHEL’s scope of work in the contract envisages design, engineering, manufacture, supply and erection & commissioning of Steam Generator, Steam Turbine Generator and their auxiliaries; Electrics and Switchyard with associated Civil Works along with state-of-the-art Controls & Instrumentation (C&I). The order reinforces BHEL’s leadership status in the execution of thermal power projects involving supply of state-of-the-art equipment, suited to Indian coal and Indian conditions.

More than 100 numbers of 490-600 MW rating thermal sets have been contracted by BHEL in the country so far, of which 45 sets have been contracted for projects of NTPC and its JVs. On commissioning of the unit, 12 million units of electricity will be added to the grid, every day.

BHEL has been committed to the nation’s power development programme and has reaffirmed its commitment to the Indian Power Sector by equipping itself by way of contemporary technology, state-of-the-art manufacturing facilities and skilled technical manpower. Significantly, the company has established the capability to deliver power plant equipment of 20,000 MW per annum.

IDBI Bank gains on plan to raise Rs 1,200 crore through QIP route

IDBI Bank, the public sector lender is planning to raise up to Rs 1,200 crore through qualified institutional placement (QIP) in FY14. During the current financial year, the bank has required an additional Rs 3,000 crore, of which Rs 1,800 crore will come from the Government and the rest will have to be raised via QIP route.

Recently, the bank has been allotted Rs 1,800 crore in support from the government, as part of the Centre’s Rs 14,000-crore capital infusion programme for banks during this fiscal.

IDBI Bank is the youngest, new generation, public sector universal bank that rides on a cutting edge core banking Information Technology platform. This enables the bank to offer personalized banking and financial solutions to its clients through its 1,111 branches and 1821 ATMs.

SBI classifies its Rs 250 cr of dues as bad loans

About 12 other lenders with combined exposure of Rs 1,200 cr likely to follow

Close to a dozen banks’ exposure to First Leasing, the financially troubled non-banking finance company, seem to be turning into bad loans. State Bank of India (SBI), the country’s largest lender, has decided to classify its own Rs 250-crore exposure as a non-performing asset.

ICICI, Axis, State Bank of Travancore, State Bank of Mysore, UCO Bank and IDBI are among the others with a combined exposure of Rs 1,200 crore to the Chennai-based company, promoted by industrialist A C Muthiah and Farouk Irani, the latter a pioneer of the leasing business in India.

Bankers are not hopeful that the account can be upgraded. They indicate the entire exposure might have to be written off, if recovery proceedings don’t get
anywhere.

LOANS TURNING BAD
Bankers indicate the entire exposure might have to be written off if recovery proceedings don't get anywhere
Following an inspection of the books of accounts as on March 31, RBI had in September barred the company from transacting business and accepting public deposits
First Laesing is promoted by industrialist A C Muthiah and Farouk Irani, a pioneer of the leasing business in India

Following an inspection of the books of accounts as on March 31, the Reserve Bank of India (RBI) had, in September, barred the company from transacting business, and to not accept public deposits. The company moved the high court at Chennai, challenging the central bank order. Later, both Irani, managing director since 1973, and Muthiah, the chairman, resigned from the board.

Last week, one of its directors, N Ramakrishnan, and Sheetal R, company secretary, had also resigned. Rajeeva Prakash was appointed additional director (independent & non-executive) on its board.


That the company is facing difficult times was indicated in the annual report for 2011-12, when the company’s profit after tax dipped to Rs 31.6 crore in FY12 from Rs 70.9 crore the previous year. Net profit for 2010-11, however, included a one-time gain of Rs 42.8 crore from the sale of shares of rating agency CARE. Its gross revenue in FY12 also fell to Rs 213 crore, from Rs 233 crore the previous year. In 2011-12, interest expenses went up by 40 crore, due to increase in borrowing.

As on March 31, the public deposit dues were close to Rs 49 crore but the annual report said all these had been paid, with interest. In a filing to the stock exchanges in October, the company said RBI had appointed an auditor for a special examination of the book of accounts and transactions, from the year ended March 31, 2010. N C Rajagopal & Co, chartered accountants, had been appointed for this.

The stock price has declined by a little more than 80 per cent after RBI’s order to bar it from business. It closed at Rs 14.85 on Monday, down 0.7 per cent from the previous close.

FDI in pharmaceutical industry increases to $ 1.07 billion during April-August’ 2013

Amid rising concerns over increasing acquisitions of domestic pharma firms by multinationals, Foreign Direct Investment (FDI) in the pharma sector grew by more than doubled to $ 1.07 billion during April-August’ 2013 as compared to $ 487 million during  the same period last year.

The commerce and industry ministry is presently concerned over the rising acquisitions in domestic pharmaceutical industry and is proposing to tighten the FDI policy for the sector by incorporating conditions like mandatory investment in R&D and non-compete clause in the shareholders pact. The government is of the view that continuing acquisitions of Indian pharma firms by foreign companies would pose serious problems in availability of life-saving drugs to consumers in near future. It also wants restrictions on FDI in brown-field or existing pharma companies amid rising fears that such acquisitions could shrink India’s capacity of producing low-cost generic drugs. During the period from April 2012 to April 2013, over 96 percent of the total FDI in the sector has come into brown-field pharma.

Recently, the government has approved a Rs 5,168 crore proposal of US-based pharma firm Mylan Inc's to acquire Indian generic drugs company Agila Specialties. Such acquisition is likely to impact the industry genetic segment, which accounts for the largest chuck of the sector, with a share of around 72 percent in the total industry revenue. The Indian generic drug market grew at a CAGR of around 17 per cent between 2010-11 and 2012-13 mainly on the back of rising exports of generic drug due to their low cost.

Sadbhav Engineering spurts on emerging successful bidder for contract worth Rs 50.96 crore

Delhi Metro Rail Corporation has declared Sadbhav Engineering as the successful bidder for the project/work for contract valued Rs 50.96 crore. The scope of project includes civil works for construction of depot cum workshop, including structural, architectural, plumbing, drainage, external development, culvert and road works etc. for Bahadurgarh Depot at Mundka - Bahadurgarh Corridor, Line - 5 Extn of Phase - III Delhi MRTS.

Sadbhav Engineering (SEL) is one of the largest BOT developers in the road sector in India with good project execution skills. SEL operates in the four distinct business areas in the infrastructure sector viz. BOT road projects, cash contract-based road projects, irrigation projects and mining.