Rupee opens higher by 11 paise at 65.48/$

On macroeconomic side, growth in India’s eight core sectors during September rose 3.2%, a 4‐ month high. The currency touched a high and low of 65.76 and 65.80 respectively.

Indian Rupee today opened higher by 11 paise at 65.48/$ in early trade on Tuesday. On macroeconomic side, growth in India’s eight core sectors during September rose 3.2%, a 4‐ month high. The strength in the reading was attributed to resurgence in fertilizer production and electricity generation. The core sectors had grown at 2.6% during the same month last year. In US, manufacturing activity during October hit a 2‐1/2‐year low, while the employment index hit its lowest level since August 2009. On the brighter side, new orders rebounded slightly, with the index coming in at 50.1, although this is marginally above the 50 mark. US construction spending during September gained 0.6%. On the global front, the Dow is up for the year after it added close to a percent on Monday. S&P 500 gained 1.19% and managed a close above 2100. Nasdaq was among the biggest gainers adding 1.45%. Asian markets too are trading well in the green.

The rupee ended at 65.59, lower by 33 paise from its previous close of 64.26 on Monday. The currency touched a high and low of 65.76 and 65.80 respectively.

The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 65.47 and for Euro stood at 72.21 on November 02, 2015. While, the RBI’s reference rate for the Yen stood at 53.93, the reference rate for the Great Britain Pound (GBP) stood at 101.0608

Sun Pharma successfully acquires InSite Vision

The acquisition was completed by means of a short-form merger under Delaware law. Post the short-form merger, InSite has become an indirect wholly owned subsidiary of Sun Pharma.

Sun Pharmaceutical Industries Ltd announced today the successful completion of its acquisition of InSite Vision Incorporated. The acquisition was completed by means of a short-form merger under Delaware law. Post the short-form merger, InSite has become an indirect wholly owned subsidiary of Sun Pharma.

As a result of the merger, (i) each issued and outstanding share of InSite common stock (other than shares of InSite common stock owned by the indirect wholly owned subsidiaries of Sun Pharma or InSite (or held in its treasury), any subsidiary of the indirect wholly owned subsidiaries of Sun Pharma or InSite, or by any stockholder of InSite who or which is entitled to and properly demands and perfects appraisal of such shares of InSite common stock pursuant to, and complies in all respects with, the applicable provisions of Delaware law) was converted into the right to receive US$0.35 and (ii) each option to acquire shares of InSite common stock that is unexercised and outstanding as of immediately prior to the merger, (a) to the extent not then vested or exercisable, became fully vested and exercisable and (b) was converted into the right to receive a cash payment in an amount equal to the excess, if any, of US$0.35 over the exercise price of such option to acquire shares of InSite common stock. As a result of the merger, InSite will no longer have reporting obligations under the Securities Exchange Act of 1934, as amended.

Holders of shares of InSite common stock that did not tender their shares into the tender offer will receive by mail written instructions for surrendering their share certificates or transferring their bookentry shares, including a letter of transmittal, and information regarding the exercise of appraisal rights under Delaware law.

Sensex, Nifty to open on a positive note

Global markets are providing the much needed push to help indices spurt at start. The Dow is up for the year after it added close to a percent on Monday. S&P 500 gained 1.19% and managed a close above 2100. Nasdaq was among the biggest gainers adding 1.45%. Asian markets too are trading well in the green.

The negativity of the last six trading sessions may be arrested as global markets seem to have regained some health. A jump in the health-care sector on account of soaring bio-tech stocks boosted US markets. Energy shares too saw gains after oil prices firmed up on Monday.  Back home, the beleaguered banking sector received a shot in the arm after outlook was upgraded to stable from negative by Moody's Investors Service citing gradual improvement in operating environment for Indian banks. On the macro front, Infrastructure output grew at its fastest pace in four months to 3.2% yoy in September on account of higher production of electricity and fertilizers. Manufacturing sector growth fell to a 22-month low in October due to a slower increase in new orders, but firms hired additional workers, according to Nikkei survey.

The outlook is a positive start. Indices could swing later in the day. Global markets are providing the much needed push to help indices spurt at start. Sectors which were at the receiving end on Monday may see some buying today. These include capital goods, metals, healthcare and power stocks. The Dow is up for the year after it added close to a percent on Monday. S&P 500 gained 1.19% and managed a close above 2100. Nasdaq was among the biggest gainers adding 1.45%. Asian markets too are trading well in the green.

Foreign investors continue to have faith in the India story, with the auction of government bonds witnessing bids nearly twice the debt securities on offer on Monday. The auction of debt securities received bids worth Rs. 1,678 crore (US$257 million), almost double the securities on offer Rs. 852 crore (US$131 million).

Amtek Auto said on Monday that it has appointed US-based investment bank Morgan Stanley to advise the company on its debt reduction plan. "The company has received a large number of enquiries to buy out a couple of its overseas businesses, including Tekfor, which it bought out of insolvency two years ago," the company said in an exchange filing.

Eros International Plc. on Monday said that it has engaged the US law firm Skadden, Arps, Slate, Meagher & Flom LLP to conduct an independent review into alleged financial wrongdoing. In the past few days, Eros International has been fighting allegations of financial misreporting linked to its business in the United Arab Emirates (UAE).

Tata Realty & Infrastructure Ltd. (TRIL) and its new investor partner Standard Chartered Private Equity, plan to build commercial office projects and list the assets through a real estate investment trust (REIT), reports a financial daily.

The CBI’s appeal against the Delhi High Court order quashing charges against Prakash Industries and its director in a coal block allocation case will come up before the Supreme Court today, says a report in HBL.

ATF or jet fuel price has been cut marginally, while rate of non-subsidised cooking gas LPG has been increased by Rs 27.50. Aviation Turbine Fuel (ATF) price in Delhi has been cut by Rs 142.56 per kilolitre, or 0.3 per cent, to Rs 43,041.61 per kilolitre, oil companies said.

Tata Motors appoints Lionel Messi as global brand ambassador

"The idea behind engaging Messi is to break from the clutter”, said Mayank Pareek, President of Tata Motors' passenger vehicle business unit

Tata Motors announced Lionel Messi as its global brand ambassador to better connect with the consumers across the world and boost sales of its passenger vehicles. 

The company's passenger vehicle division will on Tuesday launch the official campaign with the star soccer player.

"The idea behind engaging Messi is to break from the clutter”, said Mayank Pareek, President of Tata Motors' passenger vehicle business unit.

“The connect with Messi, who personifies excellence and self belief will be immediate and the effect a multiplier one,” he added.

Pareek said that the association with Messi is also part of a plan to expand the Tata Motors footprint in newer markets. This is the first campaign in the series and many more will unfold, he added.

It may be recalled that in November last year, Tata Motors hired Pareek, who was Head of Sales & Marketing at Maruti Suzuki India, to turn around its passenger vehicles business.

In a bid to lift the fortunes of its passenger vehicle division, Tata Motors launched the Zest sedan in September 2014 and the Bolt hatchback in July this year.

Adani Ports Q1 cons total income up 6%

Consolidated cargo across all ports handled by the company was 76 MMT in H1FY16, an increase of 10%, over corresponding period last year.

Adani Ports and Special Economic Zone Limited (“APSEZ”), India’s largest port developer and part of Adani Group, today announced the financial results for the quarter and half year ended September 30, 2015.

Consolidated cargo across all ports handled by the company was 76 MMT in H1FY16, an increase of 10%, over corresponding period last year. Adani ports at Mundra handled 57 MMT cargo in H1FY16 thereby continuing its leadership as the largest commercial port in India. In case of containers, the Mundra port handled 1.48 million TEUs in H1FY16 as against 1.35 million TEU’s in corresponding period last year resulting in a 10 % growth as compared to growth of 2% aggregate growth in container volumes at all the major ports.  

Consolidated cargo handled by the company was 36 MMT in Q2FY16, an increase of 4%, over corresponding period last year. Also, in case of containers, the Mundra port handled 0.73 million TEUs in Q2FY16 as against 0.67 million TEU’s in corresponding period last year showing a 9% growth. 

Our twin ports of Hazira and Dahej handled cargo of 9.88 MMT in H1FY16 thereby showing a growth of 8%.

Consolidated total income including other income increased by 18% to Rs.3,883 crores in H1FY16 as compared to Rs.3,301 crores in the corresponding period last year and consolidated EBIDTA increased by 17% to Rs.2,643 crores in the current half year as compared to Rs.2,251 crores in corresponding period last year.

Consolidated total income increased by 6 % to Rs.1,986 crores in Q2FY16 as compared to Rs.1,868 crores in the corresponding period last year and consolidated EBIDTA increased by 7% to Rs. 1,349 crores in the current quarter as compared to Rs. 1,261 crores in corresponding period last year.

The consolidated PAT for H1FY16 increased by 15% to Rs 1,308 crores, as compared to Rs 1,142 crores in corresponding period last year and in Q2FY16 increased by 16% to Rs 667 crores, as compared to Rs 574 crores in corresponding period last year.

Commenting on the results, Gautam Adani, Chairman, Adani Group said “Our strategic intent is to continue to develop the port infrastructure along the Indian coastline and thereby benefit from the synergies this network brings to APSEZ. We are pleased to have added to our portfolio and signed the concession agreement for the development of the Vizhinjam International Deepwater Seaport with the Government of Kerala. This will give us access to the significant volume of global container traffic that goes past this region”.

Elaborating on the performance, Sudipta Bhattacharya, Chief Executive Officer of APSEZ, said “We continue to improve our mix of cargo across our ports. As we build out our pan India presence, we are also seeing the specific benefits of an increasingly diversified cargo mix that our ports are already handling. This positions us well to continue to capture market share across all types of cargo that are expected to grow as the Indian economy continues to expand”.

Progress on Other Projects:

Adani Ports signed the concession agreement on August 17th, 2015 with Kerala State Government for development and operation/maintenance of the Vizhinjam International Deepwater Multipurpose Seaport Project on PPP mode on DBFOT basis.

Adani Ports entered into a non-binding MOU with LTSB for operations of the port at Kattupalli, Tamil Nadu.

Mundra Solar Techno Park Pvt Ltd has got letter of approval from the Ministry of Commerce & Industry for developing Electronic Manufacturing Cluster (EMC) as a SEZ Co-developer.

Adani Food & Agro Processing Park Pvt Ltd has got letter of approval from the Ministry of Commerce & Industry for developing Mega Food Park as a SEZ Co-developer.

RCOM approves merger deal with Sistema Shyam

Reliance Communications Ltd and Sistema JSFC, a publicly-traded diversified holding company in Russia and the CIS announced the signing of definitive documents for demerger of Sistema’s Indian wireless business, carried on by Sistema Shyam Teleservices Ltd. (SSTL) under the MTS brand, into RCOM.

Reliance Communications Ltd. (RCOM), one of India’s leading fully-integrated telecommunications service providers, and Sistema JSFC, a publicly-traded diversified holding company in Russia and the CIS, today announced the signing of definitive documents for demerger of Sistema’s Indian wireless business, carried on by Sistema Shyam Teleservices Ltd. (SSTL) under the MTS brand, into RCOM.

RCOM will acquire approx. 9 million customers and approx. Rs. 1,500 crore of annual revenues by virtue of the transaction.

In addition, RCOM will acquire SSTL’s most valuable and superior 800 / 850 MHz band spectrum, ideally suited for 4G LTE services, to complement its own unique nationwide footprint of minimum 5 MHz contiguous 800 / 850 MHz spectrum aggregating 148.75 MHz.

This will extend the validity of RCOM’s spectrum in 800 / 850 MHz band in 8 important circles by a period of 12 years from 2021 till 2033 (Delhi, Gujarat, Tamil Nadu, Karnataka,Kerala, Kolkata, UP (West) and West Bengal).

As result of the demerger, SSTL will acquire and hold a 10% equity stake in RCOM. In addition, RCom will assume the liability to pay the DoT instalments for SSTL's spectrum, amounting to Rs. 392 crore per annum for the next 10 years.

Prior to Closing of the Transaction, SSTL intends to pay off its existing debt. An appropriate payment / earn-out mechanism has been agreed in relation to disputed spectrum contiguity charges claimed by DoT.

Gurdeep Singh, President & Chief Executive Officer, Consumer Business, Reliance Communications, said, “We are delighted to welcome Sistema Shyam TeleServices Ltd. as a valued shareholder and partner in Reliance Communications Ltd.

The combination of our wireless businesses, through the demerger of SSTL wireless business into RCOM for stock consideration, will generate significant capex and opex synergies for mutual benefit.

The Indian data market is witnessing explosive growth, and SSTL's proven strengths in that space will further enhance RCOM's capabilities in delivering a superior experience to our valued customers. We are pleased that the addition of SSTL's valuable spectrum holdings in the 800 - 850 MHz band will strengthen RCOM's spectrum portfolio, and extend our ability to provide world class 4G LTE services to our customers in 8 important circles in the country till the year 2033, he added.”

Mikhail Shamolin, President and CEO of Sistema, said, “The merger of SSTL and RCOM's telecom businesses is a milestone event. Despite the numerous challenges the

sector faced in recent years, the combination of two leading data service providers is a clear sign of progress for the Indian telecom industry. We are confident that SSTL’s entry into the equity capital of RCOM as a strategic investor will strengthen the competitive position of the combined company and provide subscribers with superior experience by fasttracking the growth of LTE technology in India.

Taskbob.com acquires Zepper.in

With the added strength of Zepper, Taskbob will now have access to the company’s 300-400 service professionals catering to 2500 customers with a robust database of 600 service professionals serving 50,000 happy households.

Taskbob.com, India’s most reliable home services platform today announced acquisition of Zepper.in, a Bengaluru based web portal which offers consumers in the city practical solutions related to finding trusted, effective professionals for common household services such as home cleaning, drivers, home repairs, etc. With this acquisition, Taskbob readies itself to expand footprint into a new geography, Bengaluru after its tremendous success in Mumbai.

With the added strength of Zepper, Taskbob will now have access to the company’s 300-400 service professionals catering to 2500 customers with a robust database of 600 service professionals serving 50,000 happy households.

The acquisition will further help Taskbob augment its outreach in Bengaluru, a city known for its strong working population. Keeping the upcoming festive season in mind, Taskbob aims to focus on its cleaning services and thus gain a strong foothold in the city.

Commenting on its first acquisition, Aseem Khare, Founder & Chief Executive Officer, Taskbob.com said, “At Tasbob, we are committed to becoming a one-stop shop to deliver exceptional and quality on-demand home services such as cleaning, driver, home repair to simplify customer’s daily lives. With the acquisition of Zepper.in, we aim to leverage our robust technology platform, and industry experience to replicate our success in the Bengaluru market. We aim to service around 1000 orders a day in Bengaluru over the next 6-9 months.”

“In the recent past, the hyperlocal home services industry has seen exponential growth fragmented with multiple players and poised to become the next centre of growth.  Our acquisition of Zepper, signals the beginning of consolidation in the industry” he further added.

Taskbob.com aims to create happy households by providing instant reliable home services to consumers. To deliver this vision, Taskbob follows a stringent recruitment process comprising of a mix of skill and psychometric tests to hire the top 20% servicemen of the industry. Once on board, Taskbob consistently invests in training and skilling its servicemen to deliver high-quality service to the consumer.

Atul stock surges 3%: Q2 net profit surges 3%

The company reported standalone net profit at Rs. 84.46 crore for the quarter, registering increase of 42.98% yoy

Atul Ltd stock was higher by 3% at Rs. 1722. The company reported standalone net profit at Rs. 84.46 crore for the quarter, registering increase of 42.98% yoy. 

The scrip opened at Rs. 1700 and has touched a high and low of Rs. 1785 and Rs. 1699.8 respectively. So far 90235(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 4948.77 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 1701 on 30-Oct-2015 and a 52 week low of Rs. 1034.35 on 26-Mar-2015. Last one week high and low of the scrip stood at Rs. 1701 and Rs. 1530.3 respectively.

The promoters holding in the company stood at 50.83 % while Institutions and Non-Institutions held 20.43 % and 28.73 % respectively.

The stock is currently trading below its 50 DMA.

Coffee Day Enterprises Shares Sink on Debut

Coffee Day Enterprises shares dropped as much as 14.5 per cent on the first day of trade on Monday. The company that runs the Cafe Coffee Day retail chain had raised Rs 1,150 crore through its initial public offer in October.

Shares in Coffee Day Enterprises hit a low of Rs 290.70 on the Bombay Stock Exchange as against their issue price of Rs 328. Coffee Day Enterprises IPO was subscribed 1.64 times.

TS Harihar of HRBV Client Solutions told NDTV that Coffee Day Enterprises shares are "fairly valued".

"There is certainly a novelty value to it because you don't have a similarly listed stock in the market, but Rs 328 seem to be fairly valued at this point of time," Mr Harihar added.

Many analysts had cautioned investors about the company's lack of profitability ahead of the IPO. Coffee Day Enterprises has been posting losses for the last three years (FY15 net loss at Rs 87 crore) because of high depreciation and interest costs.

Analysts had also pointed that the company pays a huge interest on the high debt (Rs 4,500 crore according to ICICI Securities) it has on its books. Coffee Day Enterprises said it will pay more than half of the Rs 1,150 crore raised for repayment of debt.

Coffee Day Enterprises had raised over Rs 334 crore from anchor investors ahead of the IPO, while in March, the firm had mobilised Rs 100 crore in a pre-IPO funding from Nandan Nilekani and Rare Enterprises (owned by Rakesh Jhunjhunwala and Ramesh Damani), among others.

As of 10.16 a.m., Coffee Day Enterprises shares traded 9.2 per cent lower at Rs 297.95 as against 0.5 per cent decline in the broader Nifty.

India October Nikkei Manufacturing PMI slips to 22 month low; stands at 50.7 Vs 51.2 (MoM)

Sector data indicated that consumer goods was the best performing category in October, while improving operating conditions were also seen in the intermediate goods sub-sector. Conversely, capital goods firms saw business conditions deteriorate in the latest month as output and new orders declined for the first time since September 2014 and August 2014 respectively.

Business conditions across the Indian manufacturing economy improved further in October. That said, the latest PMI dataset highlighted weaker growth of both output and new orders. Encouragingly, companies added to their worforces for the first time since January and continued to increase buying levels. On the price front, both input costs and factory gate charges rose, albeit at rates that were below their respective long-run averages.

Posting a 22-month low of 50.7 in October (September: 51.2), the seasonally adjusted Nikkei India Manufacturing Purchasing Managers’ Index (PMI) – a composite single-figure indicator of manufacturing performance – was indicative of a weaker improvement in business conditions across the sector. Nonetheless, the PMI has recorded above the crucial 50.0 threshold in each month since November 2013.

Output growth eased in October on the back of a slower increase in new orders. Rates of expansion in both production and order books were the weakest in their current 24-month sequences of growth, with panellists reporting challenging economic conditions and a reluctance among clients to commit to new projects.

Sector data indicated that consumer goods was the best performing category in October, while improving operating conditions were also seen in the intermediate goods sub-sector. Conversely, capital goods firms saw business conditions deteriorate in the latest month as output and new orders declined for the first time since September 2014 and August 2014 respectively. New business from abroad placed with Indian manufacturers rose for the twenty-fifth straight month in October. However, growth was littlechanged from the marginal pace seen in September.

Despite the slowdown in new order growth, manufacturers hired additional workers in October. Employment rose for the first time since January, although only marginally. Those companies reporting higher staffing levels commented on expectations of a pick up in demand in coming months.

October saw inflationary pressures return to India’s manufacturing economy. Average purchase costs rose, amid reports of higher metal, paper and food prices. The rate of increase was, however, only slight in the context of historical data. Part of the additional cost burden was passed on to clients as tariffs were raised. Nonetheless, the rate of charge inflation was marginal overall.

Buying levels rose for the twenty-fourth consecutive month in October, although at the weakest pace since December 2013. Meanwhile, stocks of purchases were broadly unchanged whereas holdings of finished goods fell further.

Commenting on the Indian Manufacturing PMI survey data, Pollyanna De Lima, Economist at Markit and author of the report, said, “PMI data for October show a further loss of growth momentum across the Indian manufacturing economy, with a slower rise in new business inflows resulting in a weaker expansion of output. “Undeterred by tough economic conditions overall, firms took on extra staff in October. This, combined with a further drop in inventories of finished goods, suggests that production growth may rebound in coming months.

“Looking deeper into the data, consumer goods was – once again – the bright spot, with growth rates for both output and new orders being the strongest among the three market groups. Capital goods, meanwhile was the weakest link as new business inflows and production fell during October.

“A return to inflationary pressures, meanwhile, indicates that the RBI may pause its loosening cycle for the rest of the year following a 50 bps cut to the key repo rate in September. Upcoming survey data will show how effective the central bank’s effort to revive the economy has been.”