equity research report 09 november 2015 ways2capital
TRANSCRIPT
TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES )
CNX NIFTY - The Nifty is open on Monday 8050 in down trend due to globle cues and expectation of rate
change in December by federal reserve Nifty traded in 8000-8100 range and made a high of 8060 and low of
7995..From Tuesday market was in minor Uptrend movement and Wednesday traded below the psychological
level of 8100 .on Friday Nifty given the gap down opening of 7955 and made low of 7929 but traded in the range
of 7900-8000. range and close at 7954. the Nifty in next week likely to trade in the bullish trend of 8200-8300
back of mixed Festival Season and expectation of hopefully result of Bihar election. The resistance for Nifty is of
8175-8200 and support of Nifty is S1 7890 and S2 7748 .The Weekly Resistance for Nifty is R1 8186 R2 8561
and Support For Nifty is S1 7812 and S2 7437. We could also expect the panic zone of Nifty on Monday.
Bank Nifty Future: On Monday Bank nifty open at 17351 and made high of 17372 and traded in the downward
movement for whole week.On the Friday market closed in the downtrend . Bank Nifty last hope is 17125 and 1752
. If bank Nifty is Breaking the level of 17125 we can expect it to 17250 and 17400 and on the other hand we can
expect the panic zone of Bank Nifty. The Hurdle for Bank Nifty is 17125 and 17250. There is a possibilities of
Bank nifty can give the gap up opening according to Technical Analysis but there is a some external impact also on
Market. On Monday So there is a chances of Bank nifty can made low level also but all over trend of market will
be positive.On the other hand the expectation of fed rate change and results of election can worry to investors this
can take away the investors on Monday trading session. And give the negative movement of Market.The
Resistance of Bank Nifty is R1 17252 and R2 17637 or Support for Bank Nifty is S1 16866 and S2 16480.
TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES )
NIFTY
DAILY R2 R1 PP S1 S28175 8033 7961 7890 7748
WEEKLY R2 R1 PP S1 S28561 8186 7999 7812 7437
MONTHLY R2 R1 PP S1 S28561 8186 7999 7812 7437
BANK NIFTY
DAILY R2 R1 PP S1 S217637 17252 17059 16866 16480
WEEKLY R2 R1 PP S1 S218716 17683 17167 16650 15617
MONTHLY R2 R1 PP S1 S218716 17683 17167 16650 15617
MOVING AVERAGE 21 DAYS 50 DAYS 100 DAYS 200 DAYS
NIFTY 8146 7995 8214 8383
BANK NIFTY 17554 17225 17889 18312
PARABOLIC SAR DAILY WEEKLY MONTHLY
NIFTY 8196 7702 8681
BANK NIFTY 17793 15828 11767
PATTERN FORMATION ( NIFTY AND BANK NIFTY )
Depiction of Chart - On the above given weekly chart the SMA is indicating if nifty is crossing the moving average line then we couldexpect the gap up opening of Nifty in Short Term Period. But there is a pressure on Nifty due to globle cues and domestic electionresults.However it is all depend on the news and always worry that globle market affect for long time. The domestic news can give themovement of Nifty minimum 2-3 % intraday on Monday either positive or negative but according to weekly technical chart of Nifty can giveGap up Opening on Monday expectation of positive results of Bihar election and nifty fifty companies result were also good. on the basis oftechnical Analysis Nifty resistance will be R1 8186 and will go ahead There is a possibilities of nifty for next week it can break theResistance . we can expect the gap up opening of nifty in Next week Resistance for nifty is R1 8186 R2 8561 and the support for Nifty isS1 7812 S2 7437.
BANK NIFTY MACD
Details of Chart - On the Above given chart of Bank Nifty WEEKLY SMA for week is in consolidated Trend so we can expect Thedowntrend movement for Bank nifty in Next week trading Session Also. The Resistance for Bank Nifty is R1 17683 R2 18716 and theSupport of bank Nifty is S1 15617 S2 16650. Although the Bank if Nifty could break the Resistance level 17252 Level we can expect theupward movement of Bank Nifty for next week .
NSE EQUITY DAILY LEVELS
COMPANY NAME R2 R1 PP S1 S2
ACC EQ 1403 1393 1382 1372 1361
ALBK EQ 77 76 75 73 72AMBUJACEM EQ 212 211 208 207 204ASIAN PAINT EQ 822 813 807 798 793
AXISBANK EQ 473 470 465 462 457BAJAJ-AUTO EQ 2471 2458 2434 2421 2397
BANKBARODA EQ 182 174 157 148 132BANKINDIA EQ 139 136 133 131 128
BHEL EQ 204 198 191 185 178BHARTIARTL EQ 353 344 331 321 308
CIPLA EQ 683 672 661 650 640COALINDIA EQ 343 339 336 333 330
DLF EQ 122 120 118 116 114DRREDDY EQ 4519 4085 3859 3425 3199
GAIL EQ 300 295 290 285 281GRASIM EQ 3746 3715 3687 3655 3627
HCLTECH EQ 898 892 883 877 869HDFC EQ 1233 1222 1214 1203 1195
HDFCBANK EQ 1097 1092 1083 1078 1069HEROMOTOCO EQ 2697 2681 2659 2643 2621
HINDALCO EQ 83 82 81 80 79HINDUNILVR EQ 811 805 802 797 793ICICIBANK EQ 273 270 268 265 262
ITC EQ 342 340 337 335 333INDUSIND BANK EQ 927 923 916 912 904
INFY EQ 1157 1150 1136 1129 1115JINDALSTEL EQ 76 74 73 71 70KOTAKBANK EQ 668 659 653 644 638
LT EQ 1394 1387 1379 1372 1365M&M EQ 1297 1268 1241 1212 1185MRF EQ 39204 38832 38516 38144 37828
MARUTI EQ 4562 4535 4508 4481 4454ONGC EQ 261 256 252 248 243
ORIENTBANK EQ 154 150 145 141 136RCOM EQ 80 79 78 77 75
RELCAPITAL EQ 431 420 413 403 396RELIANCE EQ 965 959 948 942 931RELINFRA EQ 410 398 390 378 370RPOWER EQ 54 51 49 46 44
SBIN EQ 252 247 240 235 228SSLT( VEDL) EQ 98 95 93 90 88SUNPHARMA EQ 830 817 808 795 786TATAMOTORS EQ 409 402 397 390 385TATAPOWER EQ 71 69 68 66 65TATASTEEL EQ 226 224 219 217 213UNIONBANK EQ 171 167 162 158 152
TOP 15 ACHIEVERS // TOP 15 LOOSERS
1. JUSTDIAL FUTURE : TODAY JUSTDIAL FUTURE SHOWS BEARISH MOVEMNET.ON DAILY
CHART OF JUSTDIAL FUTURE ALSO SUGGEST BEARISH MOVEMENT,WE CAN EXPECT ITS
FURTHER BEARISH MOVEMENT WE CAN MADE SHORT POSITION IN IT BELOW 755 TGT
710 SL 770.
2. ZEEL FUTURE : WE CAN MADE SHORT POSITION IN ZEEL FUTURE BELOW 397 TGT 380 SL
405.
3. DISHTV FUTURE : DISHTV CONISTENTLY MOVES IN BEARISH MOVEMNT WE CAN
EXPECT FURTHER BEARISH MOVMENT IN IT. MADE SHORT POSITION BELOW 96 TGT 90 SL
99.
4. DLF FUTURE : WE CAN MADE LONG POSITION IN DLF FUTURE ABOVE 120 TGT 130 SL 123.
5. ONGC FUTURE : WE CAN MADE LONG POSITION IN ONGC ABOVE 252 TGT 265 SL 244.
NSE CASH 1. APOLLOTYRECASH : LONG POSITION CAN BE MADE APOLLOTYRE ABOVE 162 FOR TGT
OF 175 WITH SL OF 157.
2. IOC CASH : IOC TRADED SIDEWAYS WITH POSITIVE BIAS LAST WEEK .LONG POSITION
SR.NO SCRIPT NAME PREV CLOSE CMP % CHANGE
1JUST DIAL 946.45 764 -20.70 %
2 CENTRAL BANK 84.90 69.30 -18.37 %
3APOLLO TYRES 190.70 159.15 -16.54 %
4 KAVERI SEEDS 516.45 439.95 -14.81 %
5 ADANI ENTERPRISES 91.10 79 -13.28 %
6 VEDANTA 105.05 92.25 -12.18 %
7 J K TYRE INDUSTRIES 105.70 92.95 -12.06 %
8 GATI LTD. 151.30 133.20 -11.96 %
9DR. REDDY LAB. 4107.50 3629.50 -11.04 %
10 SREI INFRA. 47.55 42.15 -11.36 %
11CEAT LTD. 1144.95 1016 -11.26 %
12 TATA STEEL 247.25 220.10 -10.98 %
13 JAYPEE INFRATECH 13.31 11.85 -10.97 %
14 BATA INDIA 524.30 467.10 -10.91 %
15SUNPHARMA. 901 803.70 -10.80 %
SR.NO SCRIPT NAME PREVCLOSE
CMP % CHANGE
1MOTHERSON SUMI 241.95 268.75
+11.08 %
2 ATUL LTD. 1560.70 1724 +10.46 %
3UNITED SPIRITS LTD. 3140.30 3450
+9.86 %
4 ORIENTAL BANK 136.90 146.80 +6.50 %
5MPHASIS LTD. 450.30 475.30
+5.60 %
6 NTPC 129.55 135.35 +4.48 %
7 TVS MOTOR CO. LTD. 271.80 283.30
+4.23 %
8 COAL INDIA LTD. 329.75 343 +4.02 %
9YES BANK LTD. 729.30 758.35
+3.98 %
10 IOC 398.40 412.35 +3.50 %
11TATA MOTORS LTD. 386.00 399.00
+3.37 %
12 POLARISH CONS. 198.10 204.00 +2.98 %
13MARICO LTD. 393.10 403.70
+2.70 %
14 HEXAWERE 252.80 259.50 +2.05 %
15BERGER PAINTS 218.80 225.40
+2.55 %
CAN BE MADE IN IT ABOVE 415 WITH TGT OF 450 WITH SL OF 402.
3. MOTHERSUMI CASH : MOTHERSUMI GAINED 8% LAST WEEK AND EXPECTED TO SHOW
UPWARD MOMENTUM. LONG POSITION CAN BE MADE ABOVE 272 FOR TGT OF 295 WITH
262.
4. ORIENTBANK CASH : LONG POSITION CAN BE MADE IN ORIENT BANK ABOVE 150 FOR
TGT OF 163.50 WITH SL OF 145.50.
5. HDIL CASH : LONG POSITION CAN BE MADE IN HDIL ABOVE 70 FOR TGT OF 76.50 WITH SL
OF 67.50.
NSE - WEEKLY NEWS LETTERS
TOP NEWS OF THE WEEK
1. FIIs trim stake in 35 Nifty stocks in Q2 - Foreign institutional investors have reduced their
exposure in 35 Nifty companies during July-September quarter as they recast their portfolio
primarily on account of global factors. FIIs, on an aggregate basis, holding in 50-share Nifty
has remained flat at 28.6 per cent during the period under review, as per a report by ICICI
Securities. Market experts said that a slew of global factors including concerns over economic
slowdown in China prompted FIIs to reduce their holdings.The global risk off environment
perpetuated by the turmoil in Chinese markets and the heightened prospects of an early lift-off
in US interest rates impacted flows to emerging markets in the second quarter," the report
noted. Moreover, foreign investors have pulled out more than Rs 18,000 crore from the stock
markets during the July-September quarter, higher than over Rs 2,600 crore outflow in the
preceding three months. However, the report said that inflows will improve in third quarter of
the current fiscal .
2. FIIs were net buyers of Rs 1958.95 crore in index futures and options segments on
November 02 - According to the data released by the NSE, the Foreign Institutional Investors
were net buyers of Rs 1958.95 crore in index futures and options segments, as per Monday’s
data, November 02, 2015. FIIs were net sellers of index futures to the tune of Rs 256.04 crore
and they bought index options worth Rs 2214.99 crore. In the stock segment, FIIs were net
sellers of stock futures worth Rs 266.93 crore, while they bought stock options worth Rs 71.59
crore.
3. Money laundering to become difficult in next 1-2 years: Arun Jaitley - Finance Minister
Arun Jaitley today said tax evasion and money laundering will become "extremely difficult" in
the next 1-2 years, with real-time global automatic exchange of information system coming into
effect. "I am quite certain that the activity is going on in that direction and the next 1-2 years
are also going to bring significant results because with almost real-time exchange of
information, lives are going to become extremely difficult as far as lawbreakers in that regard
are concerned” he said. In his inaugural speech at international conference on 'Networking the
Networks', he said tax evasion and parking of illegal money anywhere in the world is
increasingly becoming difficult as G20 has taken an initiative and various international
agencies have now stepped in. The world is also increasingly moving towards a situation where
you can't shift the profits that you earn in one jurisdiction and erode the capital base of that
jurisdiction itself," he said.
4.Market regulator Sebi disposes of case against three entities - Markets regulator SEBI
has disposed of an alleged violation case against three entities -- Akshay Poddar, Shradha
Agarwala, Indrakshi Trading -- saying the charges of non-disclosure of shareholding could not
be established against them. The Securities and Exchange Board of India received a complaint
alleging violation of shareholding norms by owning shares more than a prescribed limit and
making false submissions to the regulator earlier. As per the complainant, these entities,
promoters of Gobind Sugar Mills Ltd , acquired five per cent stake in the company through
bulk deals. Following the acquisition, shareholding increased to 64.86 per cent from 59.86 per
cent but they did not make disclosure about the same thereby violating Substantial Acquisition
of Shares and Takeovers norms as they did not qualify for exemption under the said norms,
according to the complaint.
5. Deepak Singhal appointed Executive Director of RBI - The Reserve Bank has appointed
Deepak Singhal as Executive Director with effect from today. "Deepak Singhal has taken over
as the new Executive Director at the Reserve Bank of India today, November 2, 2015," RBI
said in a communication. Prior to this, Singhal was the Regional Director in-charge of RBI in
New Delhi. He has also headed Department of Banking Operations and Development, Human
Resource Development Department and Premises Department at central office of central office
of RBI and office at Belapur, Navi Mumbai. Singhal will look after Central Security Cell,
Corporate Strategy and Budget Department, Department of Corporate Services, Human
Resource Management Department (including HR Operations Unit), Rajbhasha Department
and Right to Information Act Division.
6. NSE campaign in Jammu and Kashmir: It is time to fire stock investments! - National
Stock Exchange, one of the two largest exchanges of India, has now entered the hilly terrains of
Jammu and Kashmir in a move aimed at driving people towards stock market investments.
NSE, in association with the capital market regulator Securities and Exchange Board of India,
J&K Bank and University of Kashmir, organized a Regional Investor Awareness Programme
Monday on "Economic Empowerment through Financial Education", at Srinagar. The exchange
has signed an Memorandum of Understanding with the University of Kashmir as well during
the program. The MOU will enable students to learn financial market skill from the next
academic year. All courses will be initially at the post graduate level. J&K is a state, fraught
with terrorism over decades. The prolonging political upheaval has caused a havoc in the local
economy leading to large scale joblessness amid drying up industrial activities.
7. FII-MAT row finds fodder on place of business - Following the A P Shah Committee
recommendations, the income tax Act was amended to give exemption to foreign institutional
investors from minimum alternate tax. However, the tax law did not have clarity on the
treatment of foreign portfolio investors if they have a permanent establishment in India. This
lack of clarity resulted in fresh tax demands. The tax department has sought an explanation
from about 10 FPIs whether they have a presence in India. According to the tax laws, a foreign
entity is considered to have a PE if it has a functioning subsidiary, branch office in India or an
agent executing sales for them. In the case of FPIs investing in Indian markets, they execute
their trades through a broker or a bank thus, generating sales. In income tax parlance, this is
construed as PE presence. However, according to most tax treaties, a broker or any other
independent agent would not be construed a PE if such broker is acting in the ordinary course
of his business. “Unlike the budgetary amendment effective April 2015, the treatment for past
cases could continue to be mired in ambiguities because of the PE examination,” said Rajesh H
Gandhi, partner, Deloitte Haskin & Sells.
8. FII outflow in Q2 at $2.5billion, highest since '09 financial crisis - India bore the brunt of
the sell off in emerging markets with FII equity outflows touching $2.5 billion in the second
quarter of 2015-16, the highest since the global financial crisis. The outflow was the second
highest among EMs with Taiwan taking the top spot. FII outflows hit new highs during the last
quarter of 2007-08 after the meltdown that followed the global economic recession. Though
FIIs trimmed their stake in 35 out of the 50 stocks on the Nifty index, their holdings remained
flat at 28.6 per cent on an overall basis during the quarter. FIIs cut their positions significantly
in nine Nifty stocks. They have been reducing their holdings for more than two quarters in 16
Nifty stocks in the IT, private banks, automobiles and utilities sectors. The sustained selling by
FIIs pulled the Nifty down by 5 per cent in July-September Despite the selling, inflows from
DIIs stood at around $4.1 billion during the quarter. While FIIs were overweight on private
sector banks, financial services and pharmaceutical companies, they were underweight on
consumer staples, industrials, energy and PSU banks. FIIs sold underperforming stocks and
bought out performers. On the contrary, DIIs bought underperforming stocks and sold
outperforming stocks. FIIs sold fundamentally weak and high beta non-financial stocks.
Cement and financial are the only two sectors which were bought by both FIIs and DIIs.
9. With recent cuts in bank FD rates, investors rush to the post office deposits - The recent
cuts in bank FD rates are driving investors to post office instruments. After the rate cuts in early
October, a five-year fixed deposit with the country's leading banks fetches 7-7.75%. In
comparison, a time deposit with the post office for the same duration fetches 8.5%. With
10-year National Savings Certificates you get 8.8%. Financial advisers said expectations of
lower returns from post office deposits after the Union Budget in 2016 are prompting investors
to lock in a portion of their money in this instrument. Soon after Reserve Bank of India's 50
basis points repo rate cut in September, the government said it would review the small savings
rates in order to facilitate transmission of monetary policy easing. Banks have complained that
higher interest rates on small savings schemes have made their deposits rates uncompetitive. "I
am advising investors to shift from bank deposits to post office time deposits, as and when their
deposits come up for maturity," said Jitendra Solanki, a New Delhi-based financial planner.
10. Record setting quarter for aerospace and defence M&A: Report - The third quarter of
2015 saw a record $52 billion in merger and acquisition announced deals in the defence and
aerospace industry, more than the whole of 2014, according to a report released by the US arm
of audit firm Price Water house Coopers. This year is already a record year, and we believe that
2016 will continue to be very active, and likely above the rolling ten-year average, which will
be approximately $25 billion after 2015," said Scott Thompson, who heads PwC's US
aerospace and defence practice. The report said that the total number of deals for 2015 was
worth $64 billion, more than a 190 percent increase from the $22 billion for the whole of 2014.
11. NPAs to peak by this fiscal year, recovery to take longer: Fitch - Fitch Ratings has said
that formation of stress assets of Indian banks' is likely peak this fiscal year, although recovery
of those loans may take much longer. Rating company said that the share of bad loans to total
loans would improve after touching a high of 11.1% in fiscal year march 2015. NPL formation
should be held back by a pick-up in GDP growth, which we forecast to reach 7.8% and 8.0% in
fiscal year 2016 and fiscal year 2017 respectively," Fitch said in a report released today. It has
predicted that the share of bad loan would jump to 10.9% by March 2016.
12. Larger female workforce can add Rs 46lk cr to GDP: McKinsey - The socio-political
consequences of gender bias for society's progress have been well documented. What is not so
widely known is that the discrimination against women has an economic cost--or opportunity
cost, depending on how you look at it--as well. A report by McKinsey Global Institute
estimates that bridging the gender gap in India could add Rs 46 lakh crore to the country's gross
domestic product in 2025. This economic boost, the report states, translates into 1.4 percent per
year incremental GDP growth. "About 70 percent of the increase would come from raising
India's female labour-force participation rate from 31 percent at present to 41 percent in 2025.
This would bring 68 million more women into the economy over this period," says the report.
13. RBI fixes gold bonds issue price at Rs 2,684 per gram - Reserve Bank has fixed the
public issue price at Rs 2,684 per gram for the sovereign gold bonds, for which applications
will be accepted from November 5 to 20. Aimed at providing an alternative to buying physical
gold, the gold bond scheme will offer investors an interest rate of 2.75 percent and a choice to
buy bonds worth 2 grams of gold, up to a maximum of 500 grams. "The issue price of the
sovereign gold bond for this tranche has been fixed at Rs 2,684 per gram of gold," the RBI said
in a statement today.
14. In a first, Chinese central bank invests in Indian govt bonds - People’s Bank of china,
the world second-largest holder of financial assets after the US Federal Reserve, has emerged
as acreditor to the indian government. The central bank of china, which functions as a monetary
authority as well as a regulator of financial institutions, bought Government of India bonds
soon after New Delhi’s decision to raise the permissible investment limit in gilts for offshore
investors. PBoC is registered with the indian capital market regulator SEBI as a registered
foreign portfolio investors The new nomenclature for foreign institutional investors under a
new regulatory regime. The move hints at a greater acceptability of rupee in the global financial
market and its relative stability compared with other emerging market (currencies. China may
be testing the water with india deciding to progressively allow foreign investment in
government bonds. Diversifying its foreign exchange reserve, indian G-secs offer a higher
yield” Said a regulatory source. The development comes at a time when PBoC has sold a small
slice of its holding in the US treasury bills. It is widely perceived that PBoC has been
offloading dollars and buying yuan to prop up the local exchange rate. The central bank’s forex
reserve is now at 3.51 trillion, down from $ 4 trillion in June 2014.
15. Sebi tells mutual fund industry: No new offers until plans are merged - SEBI has
categorically told the mutual fund industry that it will not clear any of their new launches until
fund houses, merged existing schemes with similar characteristics, the latest instance of the
stock market regulator ticking off the MF industry in recent weeks.The capital market
regulator, which has long been pushing for the merger of similar schemes to cut down
duplication and under performance, is miffed with assets management companies that they
have not merged similar schemes despite the government removing a key tax hurdle to
facilitate such actions in the last budget. We are for simplification of products. Unless the fund
house is able to explain the difference, Sebi is not clearing any scheme," a senior Sebi official
told ET. "We have told them you have no excuse for not merging the schemes," the official
added. Multiplicity of schemes has been a major bugbear for Sebi for some time. The issue of
multiple schemes with similar characteristics was first raised during CB Bhave's tenure as the
Sebi chief. After UK Sinha took over from Bhave, he pushed for merger of mutual funds.The
mutual funds has said expand.
16. Govt fixes 2.25-2.50% interest on gold monetisation scheme - Entities participating in
Gold Monetisation Scheme can earn up to 2.50 percent interest rate on their idle gold. Interest
rate on Medium and Long Term Government Deposit are 2.25 percent and 2.20 percent,
respectively, according to a notification issued by RBI today. The tenor of medium term would
be between 5-7 years while long term would for 12-15 years tenure. The deposit under MLTGD
category will be accepted by the designated banks on behalf of the central government. The
receipts issued by the Collection and Purity Testing Centre and the deposit certificate issued by
the designated banks shall state this clearly. The government had in September cleared the gold
monetisation scheme aimed at tapping part of an estimated 20,000 tonnes of idle gold worth
about Rs 5,40,000 crore into the banking system. The gold received under MLTGD will be
auctioned by the agencies notified by the government and the sale proceeds will be credited to
government's account held with RBI, it said.
17. SunEdision to supply cheapest solar power in India - US-based SunEdison has won a
bid to sell solar power in India at a record low tariff, which could boost the appeal of the
renewable source at a time when Prime Minister Narendra Modi is pushing for clean energy to
combat climate change. Solar energy still has a long way to go before it can effectively
compete with coal, given questions over consistent supply and transmission. But falling rates
could unlock more government support for solar and wind energy. Modi's government expects
clean energy to yield business worth $160 billion in India in the next five years, and established
US companies like SunEdison and First Solar Inc are likely to be the biggest beneficiaries.
SunEdison won the auction for a 500 megawatt project in the southern state of Andhra Pradesh,
bidding to supply power at 4.63 rupeesper kilowatt-hour, Upendra Tripathy, new and renewable
energy secretary, told Reuters on Wednesday
18. Moody's warns of impact from China slowdown and US rate hike - Moody's Investor
Services says a slowdown in global growth linked to China and a rise in US interest rates are
the two main reasons why it could lower its credit grades for countries next year. In a report
Wednesday, the credit ratings agency warned that a sharp slowdown in China would have
"broad implications and negatively affect trading partners and economies that are highly
dependent on commodity exports." It also said a rate hike from the U.S. Federal Reserve, which
would be its first in more than nine years, could hit emerging market economies that have seen
money pour into their economies in the era of super-low US borrowing costs. Overall, Moody's
said its view for sovereign creditworthiness in 2016 is "stable" due to a "shallow economic
recovery."
19. Janet Yellen: December rate hike a 'live possibility' - Federal Reserve Chair Janet Yellen
said Wednesday that December would be a "live possibility" for a rate hike if the upcoming
data are supportive. "Now no decision has been made on that and, what it will depend on, is the
[Federal Open Market Committee's] assessment at the time. That assessment will be informed
by all of the data that we collect between now and then," she said, testifying before the House
Financial Services Committee. Janet Yellen also said she and the committee expect the
economy to grow "at a pace that's sufficient to generate further improvement in the labor
market, and to return inflation to our 2 percent target." "If the incoming information supports
that expectation, then or statement indicates that December would be a live possibility," she
said.
20. RBI comfortable with existing interest rates: RBI Governor Raghuram Rajan - RBI
Governor Raghuram Rajan on Thursday said the central bank is comfortable with the current
level of policy rates till more room builds up, even as the government expressed hope for
further cuts. "What we said in our monetary policy statement is that we essentially looked at all
the room we had and we have taken full advantage," Rajan said. Stating that RBI was
data-dependent on its monetary policy, the Governor said, "Until more room builds up... we are
comfortable with where we are." RBI in its September bi-monthly monetary policy review cut
interest rate by 0.5 per cent, much higher than that popular expectations for a rate cut of 25
basis points. The benchmark repurchase rate has subsequently come down from 7.25 per cent to
6.75 per cent, lowest in four-and-half-years.
21. Prime Minister has Launched 3 gold scheme and national Gold Coin - Prime Minister
Narendra Modi has launched the three Gold related scheme-Gold Monetisation Scheme Gold
Sovereign Bond Scheme and the Gold Coin and bullion Scheme. PM Modi also unveiled the
first ever National Gold Coin minted in india with the national emblem of Ashok Chakra
engraved to be released among other on the occasion. Speaking at the event the PM Modi Said
the question of Physical gold’s security will now be ruled out and woman will benefit the most
of these Schemes.
22. US productivity rises in the third quarter, manufacturing strong - U.S. Nonfarm
productivity unexpectedly rose in the third quarter as a decline in self-employed workers
contributed to overall hours worked falling for the first time in six years, restraining
labor-related production costs.The Labor Department said on Thursday that productivity, which
measures hourly output per worker, increased at a 1.6 percent annual rate after increasing at an
upwardly revised 3.5 percent rate in the second quarter. Manufacturing productivity increased
at its fastest pace in four years, led by the durable goods sector.
23. Govt clears rescue package for state power firms - The government approved a rescue
package for its loss-making electricity utilities on Thursday, the power minister said, a move
Prime Minister Narendra Modi hopes will increase the supply of power and help spur economic
growth. Power Minister Piyush Goyal said after a meeting of the Cabinet the government had
cleared the package, which it has been working on for several months, to ease the financial
crunch at state-owned utility companies.
24. Infrastructure development top priority; Rs 4Lakh crore stuck projects rolled: PM
Narendra Modi - The government has rolled out stuck projects worth Rs 4 lakh crore in the past
six months, Prime Minister Narendra Modi said on Thursday. Modi, who was in Kundli on
Delhi-Haryana border to lay the foundation stone of three roads projects costing over Rs 13,800
crore that will decongest traffic in Delhi and National Capital Region, said infrastructure was
the top priority of his government and building roads was the fastest means to bring economic
growth. Showering praise on road transport and highways minister Nitin Gadkari for the work
done since the government assumed charge in May 2014, Modi said that no one has done as
much for the roads and highways sector in the past 60 years as Gadkari has done. Modi said
that road projects like Bharatmala and Setu Bharatam will accelerate the pace of development
in the country. "Bharatmala will connect 123 districts to national highways. Under the Setu
Bharatam project, we'll be building over 400 new bridges," the Prime Minister said. He said
that his government had brought in new rules to accelerate the pace of implementing projects.
"We'll not only create highways but also I-ways. Our mission is to provide 24x7 power to all
villages of India by 2022," Modi said.
25. PM Modi says economic reforms to transform India - Prime Minister Narendra
Modi on Friday inaugurated the Delhi Economics Conclave, which will be hosted by the
Finance Ministry. Here are the highlights of the Prime Minister’s speech during the inaugural
ceremony Like -
* Poor sanitation and lack of cleanliness is much more than issue of health
*We are now moving towards universal neem coating of urea
*Agriculture remains India’s mainstream in terms of providing livelihood, we have introduced
series of reforms
*Believe it or not,accounts opened under Jan-Dhan yojana today have a total balance of almost
Rs 26000 crores
*GDP growth is up & inflation is down, foreign investment is up, current account deficit is
down
*Maximum value for every rupee spent,maximum empowerment for our poor,maximum
technology penetration among masses: PM Narendra Modi
TOP ECONOMY NEWS
1. Bridging gender gap may add Rs 46 lakh crore to India's GDP in 2025: McKinsey -
Pushing gender equality can deliver a sizeable additional economic growth and could add Rs 46
lakh crore to India's GDP in 2025, a McKinsey report says.According to the new report by
McKinsey Global Institute titled The Power of Parity: Advancing Women's Equality in India',
bridging the gender gap will have a huge economic impact and the boost could translate into
1.4 per cent per year incremental GDP growth for India. Advancing gender equality can deliver
sizeable additional economic growth and broad-based prosperity to the world -- nowhere more
so than in India," the report said, adding that delivering that impact will require tackling
significant gender gaps in society and driving a national agenda for change that involves all
stakeholders. About 70 per cent of the increase would come from raising India's female
labour-force participation rate to 41 per cent in 2025, from 31 per cent at present. This would
bring 68 million more woman into the economy over this period.
2.India could cut corporate tax to 25% earlier than expected: Revenue secretary
Hasmukh Adhia - The Indian government could cut corporate tax to 25 percent from 30
percent before a previous deadline of four years, and will provide a roadmap for ending
corporate tax exemptions shortly, Revenue Secretary Hasmukh Adhia said on Monday.Finance
Minister Arun Jaitley, while presenting his annual budget in February, announced that the
government would gradually pare corporate tax by 5 percentage points during the next four
years and roll back various tax exemptions.
3. September infrastructure output up 3.2% y/y, fastest growth in 4 months - Infrastructure
output grew at its fastest pace in four months to 3.2 per cent in September from a year ago,
mainly driven by higher production of electricity and fertilisers, government data showed on
Monday. The output had grown 2.6 per cent year-on-year in August. The infrastructure sector
accounts for nearly 38 per cent of India's industrial output.
4. Manufacturing growth cools to 22-month low in October - Manufacturing growth slowed
down to almost two year's low in October despite it being a festival season, showed the
widely-tracked Nikkei purchasing managers' index survey. Output growth eased as new orders
were not as forthcoming. Even after that, companies employed additional hands, for the first
time since January. Meanwhile, inflation in some commodities came back, because of which
the Reserve Bank of India may pause its move to soften interest rate regime. PMI fell to a
22-month low of 50.7 in October against 51.2 in September. Both represents growth, but
October reflected slowing down of expansion. This is so because the index above 50 points
implies a growth and one below that shows contraction. PMI was indicative of a weaker
improvement in business conditions across the sector, said Markit Economics, a complier of
PMI. 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.
5. September core sector up 3.2% YoY vs 2.6% in August - Growth in output of the
country's eight "core" sectors grew 3.2 percent year-on-year in September, compared to 2.6
percent in August, as high growth in electricity and fertilizers was offset by slow growth in
every other sector. Government data released today showed electricity and fertilizer production
grew 10.8 percent and 18.1 percent. In other sectors, steel, oil and cement production fell 2.5
percent. 0.1 percent and 1.5 percent, respectively, while output of coal, gas and petroleum
refinery products grew between 0.5 percent and 1.9 percent. For the six-month period between
April and September, core sector growth stood at 2.3 percent, compared to 5.1 percent last year
during the same period.
6. Moody’s projects stable growth rate for India - Global rating agency, Moody's Investors
Services has reiterated its stand, projecting stable growth rate for India and has said that the
Indian economy would grow at 7.5 percent in the current fiscal and improve marginally in the
following year. It said “We expect that India’s real GDP will grow at 7.5 percent in the financial
year ending March 31, 2016 (FY16) and 7.6 percent in FY17,” it further added that these
growth rates would be slightly faster than the 7.4 percent recorded in FY15 and substantially
better than from FY12 to FY14. In its report it also pointed that India’s average annual
expansion of 7.7 percent over the past decade is one of the fastest growth rates globally, as its
favorable demographics and the opportunities afforded by a large and diverse national market
with high levels of savings have overcome the effects of weak physical infrastructure and
sometimes disjointed policies. However, during this long growth period, the country
experienced a significant slowdown in FY12-13 driven in part by policy bottlenecks impacting
project investments. Though, in past two years some of these problems were addressed. There
has been a focus on improving the ease of doing business, particularly with respect to approvals
required from the government.
7. GAIL plans to build smart villages along Jagdishpur-Haldia pipeline - GAIL is engaging
with local communities early on and planning to build 'smart villages' along its proposed
Jagdishpur-Haldia pipeline to ensure the project does not suffer the same fate as its
Kochi-Bengaluru-Mangaluru pipeline, which has been stuck for years as the company has been
unable to obtain right of way from most landowners. The state-run company, India's largest
natural gas pipeline operator, has revived the 2,050-km pipeline project after eight years of
uncertainty following Prime Minister Narendra Modi's push to get cleaner fuel to eastern India
even though the source of the gas, customers and the funding for the project remain shaky. The
company resurrected the project after the Modi-led NDA government decided to revive the
fertiliser units in Barauni in Bihar and Gorakhpur in Uttar Pradesh amid attempts by the
coalition leader Bharatiya Janata Party to shore up political fortunes in the two states.
8.September infrastructure output up 3.2 per cent y-o-y -The infrastructure output grew at
its fastest pace in four months to 3.2 per cent in September from a year ago, mainly driven by
higher production of electricity and fertilisers, government data showed on Monday.The output
had grown 2.6 per cent year-on-year in August.The infrastructure sector accounts for nearly 38
per cent of the country's industrial output.
9. RPP Infra forms joint venture with China's Hunan Construction - RPP Infra Projects
today said it has formed a joint venture with China's largest state-owned firm Hunan
Construction Engineering Group Corporation, a pact that will help in capturing big-size orders
and profitable business in the infra space in India. "Hunan and RPP Infra Projects Ltd hereby
associate them into a joint venture to act in collaboration with each other under the name and
style of Hunan-RPP joint venture. Hunan will act as a lead partner of the joint venture to make
all necessary statement on behalf of the joint venture," RPP Infra Projects said in a statement.
Performance guarantees, advance guarantees or any such other bonds, securities shall be
provided by the lead member of the joint venture, it added.
10. Services sector growth hits 8-month high in October - India’s services sector activity
touched an eight- month high in October driven by a significant rise in new business orders
even as growth in manufacturing output eased, a Nikkei survey said.the Nikkei Business
Activity index climbed to 53.2 in October, from 51.3 in september, as fresh orders expanded at
a solid pace and were most pronounced since February. Services companies saw a faster rise in
new business than their manufacturing counterparts” said pollyanna de lima, economist at
markit, which complied the survey.Meanwhile, the seasonally adjusted Nikkei India Composite
PMI Output index, which maps both manufacturing and services sectors, rose to 52.6 in
October from 51.5 in September helped by new businesses. A reading of 50 divides growth and
contraction. "India's economic growth shifted into higher gear in October driven by the services
sector. Although manufacturing production continued to expand, the growth eased and was
sluggish by historical standards," Lima added.
11. 1st tranche of corporate tax reduction in next Budget: FM - Finance Minister Arun
Jaitley on Wednesday said the government in the next few days will list out the exemptions to
be phased out as part of its plans to gradually bring down corporate tax rate to 25 percent the
first tranche of which will be announced in the budget in February. “I have announced a road
map for direct taxation to bring corporate tax rate to 25 percent by phasing out some of those
exemptions. We are going to put in public domain in the next few days some of those
exemptions that we intend to phase out in the first round” he said.
12. GST only a question of time : Finance Ministry Arun Jaitley - Finance Ministry Arun
Jaitley expressed confidence on Wednesday that he would be able to pass a new goods and
services tax (GST), saying opposition to the reform would crumble when it comes to a
parliamentary vote. “GST is only a question of time”, Jaitley told an economic conference in
new Delhi.
13. Government will unveil big power reforms in next couple of days: FM Arun Jaitley -
The government in the next couple of days will announce a major policy for the stressed power
sector, which has been reeling under high debt, Finance Minister Arun Jaitley said today.
"Power is a stressed sector. In the next couple of days, we are likely to announce some major
policy decisions in that regard to take the sector out of stress. Once that happens, I am quite
sure the private sector will also start participating," he said at the National Strategy Day on
India, jointly organised by the World Economic Forum and CII. While Jaitley did not elaborate,
it is believed that the Cabinet at its next meeting may consider recasting Rs 4.3 lakh crore of
loans of nine power distribution companies subject to states agreeing to raise electricity tariff
over a period of time. "The big problem area for us is the power sector. I think that is an
infrastructure issue which we are going to be addressing literally in the next couple of days, if
not in the next couple of days, if not in the next couple of hours itself. We have almost finalised
an approach in that direction," he said.
14. France pledges over 2 billion euros for Smart Cities project in India - France has
committed to invest over 2 billion euros for Smart City projects in India with special focus on
Chandigarh, Nagpur and Puducherry, French ambassador in India, Francois Richier,
said.Richier said there is also an investment of 200 million euros for the extension of Bangalore
Metro. He was speaking at a seminar on 'Towards Smart and Sustainable Cities' organised by
FICCI, Embassy of France in India and the Ministry of Urban Development.
15. RBI issues guidelines on sovereign gold bonds - The Reserve Bank of India has issued
operational guideline for sovereign Gold Bond, 2015-16, to be launched by Prime Minister
Narendra Modi today. Beside sovereign Gold Bonds, Modi will also launch two other Gold
related schemes-Gold Monetisation scheme (GMS) and and the gold coin and bullion Scheme.
Issuing the operational guidelines on the Gold bonds, RBI said application form from investors
will be received at branches during normal banking hours from November 5-20. “ Relevant
additional detail may be obtained from the applicants, where necessary. Receiving office need
to ensure that the application is complete in all respects,” it said. Regarding interest on
application money, RBI said applicants will be paid interest at prevailing saving bank rate from
the date of realisation of payment to the settlement date.
16. MSME Sector largest contributor to india’s GDP - Secy - The Micro, small and Medium
enterprises (MSME) sector is the single largest contributor to the Nation’s GDP, a senior
official said. ‘MSME Sector is important in two ways...first,because it contribute as the single
largest source to the Gross Domestic Products (GDP) of the country, and second, which is more
important, is that it is the most innovative among all the sectors,” MSME Secretary Anup Pujari
said during switch-Asia conference. "Innovation essentially comes because in a big
corporation, the innovative activities get diffused where as in a micro or small unit, the
innovative activity is more focused, more linked to the actual problem that they face. "This is
true in India, this will be true in Bhutan and this will be true in Germany, everywhere," he said.
He was speaking at Switch-Asia, an international conference and networking event on the role
of Sustainable Consumption and Production (SCP) towards building livelihoods in Asia.
17. PM Narendra Modi for indigenous manufacturing to cut defence budget by 50 per
cent - Noting that India imports defence equipment in large quantity, Prime Minister Narendra
Modi today emphasised on indigenous manufacturing to help slash the defence budget by 50
per cent within a decade. Addressing an event here, Modi also stressed on developing "local"
technology to help people deal with daily challenges as well as the need to provide a proper
environment and mobilise resources to encourage "innovation". Today our nation imports
defence equipment in large quantity. Is it not possible that our institutions concentrate in the
area of defence and research and prepare a human resource development pool which will help
in making equipment cheaper to the extent that outside importers use this talent for
manufacturing. India can be a global market if we do it. If our institutions decide today that we
will be able to cut down defence import by 50 per cent in next 10 years, then the amount we
save on our defence budget will be pumped into the education sector. Will it not be a big gain?
We will be self-reliant," he said.
18. Bankruptcy Law to Improve Ease of Doing Business: Shaktikanta Das - A new law on
bankruptcy aimed at improving the ease of doing business will be introduced in Parliament at
the earliest, a top finance ministry official said on Thursday.
Bankruptcy law will improve ease of doing business in India. Government will try to introduce
the bill in the Parliament at the earliest," Economic Affairs Secretary Shaktikanta Das said in a
tweet.A government-appointed panel had yesterday suggested a modern bankruptcy law to deal
with insolvency cases within 180 days that may arise on account of business failures or
economic downturns.The draft legislation prepared by a panel, headed by former Law
Secretary T K Vishwnathan, also proposes early identification of financial distress so that steps
could be taken to revive the ailing companies.Mr Vishwnathan had presented the Bankruptcy
Law Committee Report to Mr Jaitley here on Wednesday.
19. Infrastructure development top priority; Rs 4Lakh crore stuck projects rolled: PM
Narendra Modi - The government has rolled out stuck projects worth Rs 4 lakh crore in the
past six months, Prime Minister Narendra Modi said on Thursday. Modi, who was in Kundli on
Delhi-Haryana border to lay the foundation stone of three roads projects costing over Rs 13,800
crore that will decongest traffic in Delhi and National Capital Region, said infrastructure was
the top priority of his government and building roads was the fastest means to bring economic
growth.
20. Rupee down 12 paise to 65.87 on strong dollar demand in early trade on Friday - The
rupee weakened by another 12 paise to trade at a fresh one-month low of 65.87 against the US
dollar in early trade today at the Interbank Foreign Exchange due to sustained demand for the
American currency from importers. Besides, sustained foreign capital outflows kept pressure
on the rupee, forex dealers said. However, a higher opening in the domestic equity market and
the dollar's weakness against other currencies overseas capped the losses, they added. The
rupee had lost 26 paise to close at more than one-month low of 65.75 against the US dollar
yesterday on fresh demand for the American currency from banks and importers amid higher
greenback in overseas markets.
21. RBI comfortable with existing interest rates: RBI Governor Raghuram Rajan - RBI
Governor Raghuram Rajan on Thursday said the central bank is comfortable with the current
level of policy rates till more room builds up, even as the government expressed hope for
further cuts. "What we said in our monetary policy statement is that we essentially looked at all
the room we had and we have taken full advantage," Rajan said. Stating that RBI was
data-dependent on its monetary policy, the Governor said, "Until more room builds up... we are
comfortable with where we are."
RBI in its September bi-monthly monetary policy review cut interest rate by 0.5 per cent, much
higher than that popular expectations for a rate cut of 25 basis points. The benchmark
repurchase (repo) rate has subsequently come down from 7.25 per cent to 6.75 per cent, lowest
in four-and-half-years.
22. Modi govt on right track in drawing FDI' - Even as a majority of India Inc is holding on
to its purse on new investments, London-based billionaires Hindujas said they will invest
'billions of dollars' more in India as the policies by the Modi government is conducive for fresh
investments. With the right leadership and policies in place, foreign investment will start
flowing into the country as investors are now getting clarity on policies. The foreign investors
are engaging the Big four audit companies to get information from India and so far the
feedback is that the Modi’s government has taken the right steps in attracting investment since
they came to power in May last year,” said Prakash Hinduja, 69, chairman of the Hinduja group
of companies in Europe, on Monday. They (the investors) know exactly what’s going on in
India and they are getting the right signals on India, he said.
23. Cabinet clears financial restructuring package for discoms - The Union Cabinet has
given its approval to a scheme that will allow power distribution companies (discoms) in select
states to convert their debt into state bonds, as well as roll out a host of steps to improve
efficiency at power plants. This will ensure struggling discoms can shake off years of losses
and start on a path to profitability. Power Minister Piyush Goyal said that power discoms in
several states had been severely mismanaged, resulting in a debt burden upward of Rs 4 lakh
crore. This has taken a toll on the power as well as bank sectors. The plan, called Ujwal Discom
Assurance Yojna (UDAY), will shift 75 percent of discoms debt burden from their to states'
balance sheets and this will be result in interest cost savings to the tune of 3-5 percent.
TOP CORPORATE NEWS
1. RCom to pay Rs 3,920 cr for spectrum licence post MTS merger - Reliance
Communications, which signed a definitive agreement with Sistema Shyam Teleservices
Limited (SSTL) today to acquire operation of MTS network in exchange for 10% stake, has
agreed to pay Rs 392 crore per year till next 10 years for spectrum licence owned by the
Russian operator. Before closing the deals, SSTL would pay off all its liabilities, RCom said in
a statement without giving definite time period to close the transaction.
"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 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," the company said in a statement post its board of directors meeting
today.
2. Indian promoters' stake in companies at 8-year low - Are Indian promoters less bullish
about their companies than their foreign peers or institutional investors? There has been a
steady decline in promoters' holding in Indian private sector companies to an eight-year low of
43.4 per cent at the end of September 2015. The corresponding ratio was 44.4 per cent a year
ago and 48.7 per cent at its peak in the March 2008 quarter. A similar trend is visible in the
public sector undertakings (PSUs) with a consistent decline in promoters' (government) holding
as the government pursues divestment. Effective promoter holding in PSUs is down nearly 750
basis points or around 10 per cent in the past decade to 67.1 per cent at the end of the last
quarter from an average holding of around 75 per cent in 2005. In comparison, foreign
multinationals have been consistent buyers on Dalal Street shoring up stakes in their Indian
arms. Promoter holding in listed foreign companies such as Hindustan Unilever, Bosch, ACC,
Ambuja Cement and Nestle India, among others, is up to a high of 64.4 per cent at the end of
the September 2015 quarter from a low of 51.6 per cent in March 2005. At the end of
September 2015, Indian (private) promoters' holding in their companies was worth Rs 28.5 lakh
crore (Rs $438 billion), up from Rs 26.7 lakh crore in September 2014 and Rs 3.4 lakh crore in
March 2005. In comparison, global companies' stake in their Indian ventures stood at Rs 6.8
lakh crore (Rs $104 billion), while the government's stake in listed public sector companies was
worth Rs 11.1 lakh crore (Rs 170 billion) in September 2015, respectively.
3. United Spirits Q2 profit at Rs 929 crore - Liquor major United Spirits posted a net profit
of Rs 929.3 crore for the second quarter ended September 30, 2015, on the back of Rs 870
crore share sale in United Breweries Ltd. The company had reported a net loss of Rs 26.9 crore
for the same period of previous fiscal. Net sales of the company rose to Rs 2,122.17 crore
during the September quarter, from Rs 2,007.8 crore during the same period of previous fiscal,
United Spirits said in a filing to the BSE. For the six months ended September 30, the company
posted a net profit of Rs 949.22 crore, as compared to a net loss of Rs 85.86 crore in the same
period of previous fiscal. "Our F16 half year results are starting to show the dividends of our
comprehensive strategic plan focused behind our power brands with a clear prioritised
geographical participation strategy," United Spirits CEO Anand Kripalu said.
4. Piramal Enterprises reports Q2 net profit at Rs 245.91 cr - Piramal Enterprises today
reported a consolidated net profit of Rs 245.91 crore for the second quarter ended September
30, mainly on improved performance across business segments and lower R&D expenses. The
company had posted a net loss of Rs 390.79 crore for the corresponding period of the previous
fiscal, Piramal Enterprises said in a regulatory filing. The company's consolidated total income
from operations stood at Rs 1,544.11 crore for the quarter under consideration as against Rs
1,243.36 crore in the year-ago period. Commenting on the results, Piramal Enterprises
Chairman Ajay Piramal said. We are making good progress against our clearly defined strategic
roadmap across all our businesses. Our efficient capital allocations and healthy growth rates are
enabling us to again deliver a significantly improved bottom-line performance.
5. Looking to grow loan book 25%, focus on non-infra: IDFC CFO - An exceptional
provision led to IDFC reporting a loss of Rs 1411 crore in the September quarter, Sunil Kakar,
Group Chief Financial Officer, IDFC tells CNBC-TV18. But for the provision, IDFC would
have reported a net profit of Rs 511 for the half year ended September, he says. IDFC had to
make a provision of Rs 2500 crore and reverse Rs 139 crore of interest income, towards
stressed assets during the September quarter. Kakar says the provisions were not mandated by
regulations, but were made as a prudent measure. He says the total size of stressed assets has
been constant around Rs 5000 crore and he does not see any increase in slippages. Kakar says
the bank's focus will be on the non-infrastructure sector, as there are few opportunities to lend
in the infra sector. He sees continuing stress in infra sectors like power coal and gas.
6. NPLs to improve by year-end; focus on retail: Indian Bank - Gross non-performing loans
reduced due to higher recoveries in the second quarter of FY16, Mahesh Kumar Jain, Managing
Director (MD) & Chief Executive Officer (CEO), Indian Bank told CNBC-TV18. The bank’s
profit after tax (PAT) grew 17.5 percent to Rs 369.3 crore. Gross non-performing assets
declined to 4.61 percent and net NPA decreased to 2.6 percent in the quarter gone by. The
bank’s total slippages for Q2 were Rs 547 crore. One nominal account was refinanced under the
Reserve Bank’s 5/25 scheme and another was sold to asset restructuring company (ARC), Jain
said. He expects the NPL situation to improve further by the year-end. The bank’s focus is on
growth in the retail sector and not much in the corporate segment, Jain said adding that he
expects 11-12 percent loan growth in FY16.
7. Lupin gets FDA nod for generic Aricept tablets - Pharma major Lupin on Tuesday said it
has received final approval from the US drug regulator to market generic Aricept tablets used
for treatment of dementia. The company's US subsidiary, Lupin Pharmaceuticals , would
commence promoting the product shortly in the US, the company said in a statement.It has
received final approval for its Donepezil Hydrochloride Tablets, 23 mg from the United States
Food and Drug Administration (FDA) to market a generic version of Eisai Inc's Aricept
tablets," it added. Lupin's Donepezil Hydrochloride Tablets are the AB rated generic equivalent
of Eisai Inc's Aricept tablets and is indicated for the treatment of dementia of the Alzheimer's
type. Aricept had US sales of USD 52.3 million (IMS MAT June 2015), it added.
8. Reliance Power consolidated net up by 37 per cent - The Anil Ambani-led Reliance Power
Ltd on Tuesday said it closed the second quarter of the current fiscal with 37 percent growth in
net profit on a consolidated basis. In a statement here, Reliance Power said it posted a net profit
of around Rs.346 crore for the quarter ended September 30, this year as against Rs.253 crore
for the quarter ended September 30, last year. According to the company, its total income for
the period under review stood at Rs.2,856 crore up from Rs.1,885 crore earned during the
corresponding period of the previous fiscal. The company said its total operating capacity stood
at around 6,000 MW.
9. Adani Enterprises Q2 net plunges 40% to Rs 299 crore - Adani Enterprises, the flagship
firm of the Adani Group, said consolidated net profit declined by 40 per cent on comparable
basis to Rs 299 crore for the second quarter ended September 30. The Ahmedabad-based firm
had clocked a net profit of Rs 496 crore in the year-ago period, it said in a statement. Total
consolidated income, however, rose by 6 per cent to Rs 11,390 crore in July-September quarter
from Rs 10,752 crore in the corresponding period last year, on a comparable basis.
10. ABB India reports 30.5% increase in quarterly net profit - ABB India has reported a
30.5% increase in its quarterly net profit, helped by good order flow. The power and
automation technology company's net profit for the quarter ended September stood at Rs 58.74
crore compared with Rs. 44.98 crore a year ago. Its total income increased by 6.7% to Rs
1,969.49 crore compared with Rs 1,846 crore for the same quarter in 2014, ABB India said on
Tuesday. Continued confidence in the value addition of our portfolio of advanced and
integrated solutions resulted in a good build-up of orders for the quarter," said Bazmi Husain,
its managing director. ABB India said it received Rs 2,292 crore worth of orders in the third
quarter of 2015, compensating for the award postponement experienced in the last two quarters.
11. Adani Power posts Rs 369 crore quarterly loss; net loss shrinks - Adani Power posted a
net loss of Rs 369 crore for the quarter ended September 30, compared with a loss of Rs 798.7
crore in the same period last year. Total income increased 39% to Rs 5,784 crore as it sold more
power. Pursuant to its sale of stake in Adani Transmission (India), the merger between Adani
Enterprises' Solar Power Undertaking with Adani Power and the acquisition of Lanco
Infratech's Udupi Power, the financial results for the past quarter weren't fully comparable with
the year-earlier numbers, the company said.Adani Power said its earnings before tax increased
47% to Rs 1,824 crore in the past quarter. Adani Power remains committed to continue
expanding towards the goal of achieving a power generation capacity of 20,000 MW by 2020
to bridge the power deficit in the country," Chairman Gautam Adani said.
12. Tech Mahindra Q2 net up 16% on other income, $ rev rises 2% - IT services provider
Tech Mahindra 's July-September quarter profit increased 16.2 percent sequentially to Rs 785.6
crore, driven mainly by other income and operational performance. Rupee revenue increased
5.1 percent to Rs 6,615.5 crore and dollar revenue rose 2.2 percent to USD 1,011 billion on
sequential basis. Dollar revenue growth in constant currency was 3 percent. Profit and rupee
revenue were higher than analysts' expectations that were at Rs 732 crore and Rs 6,578 crore
for the quarter, according to analysts polled by CNBC-TV18. Dollar revenue growth was in line
with estimates but constant currency growth was ahead of estimates of 2.7-2.8 percent.
Mahindra and Mahindra group company has reported an other income of Rs 165.8 crore during
the quarter, higher by 21.5 percent over Rs 136.6 crore in preceding quarter, including Rs 31.85
crore write back of excess provision made for contingencies provided earlier. Foreign exchange
loss for the quarter was at Rs 8.8 crore against gain of Rs 93.21 crore in June quarter.
13. Indian Oil Corporation posts Rs 329 crore net loss in Q2 - Indian Oil Corp (IOC) today
reported a net loss of Rs 329 crore in the September quarter as margins squeezed on falling oil
prices. This is compared to a net loss of Rs 898.46 crore in the same period a year ago,
IOCBSE 1.18 % said in a stock exchange filing. Fall in oil price meant turnover dropped to Rs
85,384.81 crore in Q2 as opposed to Rs 111,663.81 crore a year ago. IOC said all of its loses on
sale of PDS kerosene and domestic LPG at government controlled rate were made good.
14. Hero Motocorp sales grow 11% in October - Country's largest two-wheeler maker Hero
MotoCorp today reported 11.25% rise in sales at 6,39,802 units in October, its highest ever in a
single month.The company had sold 5,75,056 units in the same month last year, Hero
MotoCorp said in a statement.Its previous highest sales in any month was in October 2013
when it sold 6,25,420 units."With over 1,08,000 units of scooters sold in October, Hero
MotoCorp crossed the landmark one-lakh unit sales in scooters in a month," the company said
15. Hinduja bets big on Africa; to invest $1 bn in automotive, oil, chemicals, trading &
infrastructure sectors - Hinduja Group has identified Africa as its next big frontier for growth
and has committed to pump in $1 billion across sectors over the next five years. Calling for a
unified Africa plan to fast-track the development of the continent, the automobile-to-financial
services conglomerate plans to expand its business across the African region, especially in
automotive, oil, chemicals, trading and infrastructure sectors, Hinduja Group Europe Chairman
Prakash Hinduja said here on Tuesday. Africa is the future market for us. A continent of vast
size and population, as large as India, is going to be our next frontier. We have significant
expansion plans in Africa and will be investing $1 billion over the next five years," the group's
Europe chairman added. He said the group nets $300-400 million from the continent and after
this investment "we expect our income to be around $2 billion over the next five years." For the
mid-term, Hinduja said this 'Go Africa' strategy will have the group's flagship Ashok Leyland
more than doubling its bus as well as truck exports to the continent from the present 12,000
units per annum to over 25,000 units over the next three years.
16. DLF Q2 net profit rises 21% to Rs131.50 crore - DLF Ltd, India’s most valuable
property developer, posted a 21% increase in fiscal second-quarter profit to Rs.131.50 crore
from a year ago on Tuesday.The realty firm reported a 7.33% drop in revenue to Rs.1,865.49
crore in the quarter ended September.Sequentially, DLF posted an 8.18% rise in net profit and a
16.4% drop in revenue.
DLF is continuing to face challenges in selling homes because of a slowdown in the real estate
market and particularly in its core National Capital Region (NCR) market. However, the profit
margin of DLF has improved with the developer clocking maximum sales in its luxury
Cammelias project in Gurgaon, during the quarter. In September, unit DLF Home Developers
Ltd and Government of Singapore Investment Corp. Pvt Ltd (GIC) entered into a joint venture
to invest in two upcoming projects in central Delhi.
17. Reliance Capital Q2 profit rises 15% to Rs250 crore - Reliance Capital Ltd, the financial
services arm of Anil Ambani-controlled Reliance group, on Monday said its fiscal second
quarter profit increased 15%. Net profit rose to Rs. 250 crore for the quarter ended september
compared with Rs. 217 crore in the corresponding period of last year. Total income rose 13% to
2,361 crore from Rs. 2,084 crore in the year period. As on 30 September, the company’s net
worth stood at Rs. 14,175 crore, while total assets at Rs. 49,420 crore.The company’s asset
management subsidiary—Reliance Capital Asset Management Ltd (RCAM), which is set to
acquire Goldman Sachs’ Indian asset management business for Rs.243 crore, had total assets
worth Rs.2.54 trillion at the end of the quarter. RCAM’s profit before tax increased 7% to
Rs.122 crore for the September quarter.
18. RCOM to set up four data centres in India in 12 months - Billionaire Anil Ambani-led
Reliance Communications (RCOM) and its subsidiary Global Cloud Exchange (GCX) would
invest USD 80 million (around Rs 500 crore) to set up four data centres in India over the next
12 months. "We are adding four data centres in the next 12 months as part of our strategy to
increase capacity by 40 per cent," Bill Barney Chief Executive of Reliance Communications
(Enterprise) and GCX said.
This is part of the company's major expansion of its cloud platform, where it sees significant
business opportunity. It expects that in the next five years, 25 per cent of the company's
business would come from cloud services. RCOM-GCX is the largest provider of cloud
computing facilities in India with 11 data centres. Around 3,210 Indian enterprises, 14,505
global enterprises and 231 Fortune 500 companies in Mumbai have connected through the
RCOM/GCX network, the company said.
19. Canara Bank Q2 profit falls 16% on high provisions, NPA Up - Public sector lender
Canara Bank 's July-September quarter earnings disappointed street on Wednesday with profit
falling 15.6 percent year-on-year to Rs 528.9 crore, impacted by higher provisions. It was
supported by other income, operating profit and net interest income. Net interest income, the
difference between interest earned and interest expended, increased 11.8 percent year-on-year
to Rs 2,646.5 crore with 4 percent loan growth during the quarter. Net interest margin improved
to 2.24 percent from 2.21 percent on sequential basis. That should be around 2.35 percent by
year-end, says Rakesh Sharma, CMD in an interview to CNBC-TV18. Profit was much lower
than analysts' expectations of Rs 625 crore while net interest income was slightly ahead of
estimates of Rs 2,602 crore for the quarter, according to analysts polled by CNBC-TV18.
20. Fortis Healthcare Q2 profit at Rs 34 crore - Fortis Healthcare today reported a
consolidated net profit of Rs 33.98 crore for the second quarter ended September 30, 2015. The
company had posted a net loss of Rs 58.12 crore for the corresponding period of the previous
fiscal, Fortis Healthcare said. Consolidated total income from operations stood at Rs 1,097.05
crore for the quarter under consideration. It was Rs 1,031.20 crore for the same period year
ago. Commenting on the results, Fortis Healthcare CEO Bhavdeep Singh said: "We have seen a
consistent growth in both revenues and operating margins of our hospital and diagnostic
business over the preceding quarters." This is a reflection of an uptick in the business with
better overall performance including in the operations of company's newer facilities, he added.
21. Marico Q2 net up 27%, volume growth disappoints; bonus 1:1 - FMCG major Marico 's
profit increased 27.4 percent to Rs 150.7 crore in July-September quarter compared to Rs 118.3
crore in year-ago period, driven by operational performance. Revenue grew by 3.8 percent to
Rs 1,485.4 crore from Rs 1,431.2 crore during same period due to slow volume growth.
Volume growth for the quarter was 4 percent, which was much below analysts’ estimates of 6-7
percent. The company reported mixed set of earnings today as profit matched analysts'
expectations and operating profit margin was ahead of estimates but revenue missed forecast.
Profit was expected at Rs 150 crore and revenue of Rs 1,550 crore for the quarter with
operating profit growth of 20 percent and margin expansion of 150 basis points, according to
analysts polled by CNBC-TV18.
22.Essar in talks with Russia’s VTB to refinance $ 3.5 billion loans - Essar Global, the Ruia
family holding company headquartered in London, is in talks with Russia's VTB Bank to
refinance up to $3.5 billion of loans the conglomerate owes to a group of banks led by Standard
Chartered as the British bank has been asking its borrowers to pay up as it sets its house in
order, said two people familiar with the development."The negotiations are at a very advanced
stage," said one of the persons who did not want to be identified. "Essar wants to refinance
these loans because it has links in Russia and would like to make them more solid." But there is
no certainty of a transaction given the sanctions against Russia and the bank's ability to raise
US dollar funds, the people said. Essar, the steel-to-shipping conglomerate, has piled up
billions of dollars in loans across banks in India and the UK as it built steel plants, refineries,
and power plants.
23. Chennai Petro cracks 15% after posting net losses in Q2 - Shares of Chennai
Petrochemical cracked over 15 per cent in Thursday's trade after the company said net losses
further expanded to Rs 452.39 crore in the September quarter from Rs 233.14 crore in the same
period a year ago. In reaction to the earnings numbers, the scrip slumped 15.57 per cent to hit a
low of Rs 181.30. Total net income for the quarter under review stood at Rs 5,982 crore versus
Rs 10,616.31 crore in Q2 of FY15, a drop of 43.64 per cent. Average gross refining margin for
the company stood at $5.9 /barrel in the first half of 2016 against $ 2.11 in H1 2015.
24. DLF’s promoters to sell 40 % stake in rental arm by march-end - Realty major DLF
today said its promoters are likely to sell their 40 percent stake in the company rental arm DLF
Cyber City Developers Ltd. (DCCDL) by the end of the fiscal. In a conference call with
analysts, DLF’s CEO Ashok Tyagi also gave sales booking guidance of around Rs. 3500 Cr. In
the current fiscal. The company had achieved sales bookings of Rs. 3850 Cr. In the last fiscal.
Giving update on the promoters stake in the DCCDL , DLF senior Executive Director (Finance)
Saurabh Chawla said the process to divest the stake has started.
25. Reliance Infra to sell 5.8 MT cement Business, Monetise 8,800 cr. Projects - In a
strategic move to unlock value, Reliance infrastructure (RInfra) Said on Wednesday it will sell
its 5.8 MTPA cement business and monetise 11 road projects worth Rs 8,800 crore, making the
defence sector as primary driver of the company's growth. The Anil Ambani-led firm said its
board after conducting strategic review of businesses, approved that defence sector "will be
primary driver" for growth and gave nod for "disposal of cement business" for which seven
potential buyers have been short-listed. The 5.8 million tonnes per annum (MTPA) cement
business and related assets of the company will be disposed off through a formal process. The
company has short-listed seven potential buyers from a total of 15 parties that submitted
preliminary Expressions of Interest. The Due Diligence process has been commenced. Further
announcements will be made at the appropriate stage," the company said in a statement.It said
investment of Rs 8,800 crore made by the company in its 100 per cent owned roads business,
comprising 11 revenue generating projects of approx 1,000 km across 7 states, will be
appropriately monetised.
26. Ashok Leyland Q2 profit at Rs 287 crore - Ashok Leyland Ltd has reported a net profit of
Rs 287 crore for the quarter ended September 30, 2015, an increase of 137%, as compared to
Rs 121 crore for the quarter ended September 30, 2014.Total revenue rose by 53.5% to Rs
4,940 crore for the quarter ended September 30, 2015 from Rs 3,218 crore for the quarter ended
September 30, 2014. Vinod K Dasari, managing director, Ashok Leyland, said the market for
commercial vehicles is back after a long period of downturn.
27. Arvind Q2 net down 2%, lower raw material cost lifts EBITDA - Textile company
Arvind 's consolidated profit declined 2.5 percent year-on-year to Rs 91 crore due to higher tax
and exceptional item. Revenue increased 6.7 percent to Rs 2,096.4 crore from Rs 1,964.6 crore
in same period. Earnings barring profit missed analysts' expectations. Profit was expected at Rs
86.3 crore and revenue of Rs 2,124.4 crore for the quarter with operating profit rising 10.5
percent and margin expansion of 30 basis points.
28. Cipla Q2 misses forecast, profit up 44% to Rs 431 cr - Pharma company Cipla's
July-September quarter earnings missed analysts' expectations on Thursday. Consolidated profit
shot up 44.4 percent year-on-year to Rs 431.2 crore, driven by revenue and operational
performance. Revenue climbed 24.8 percent to Rs 3,452.4 crore in quarter ended September
2015 compared to Rs 2,767.3 crore in year-ago period. Earnings barring operating profit margin
missed analysts' expectations. Profit was estimated at Rs 520.88 crore and revenue at Rs
3,562.7 crore with operating profit growth of 42.3 percent and margin expansion of 212 basis
points.
29. Tata Steel Q2 profit jumps 22% to Rs 1529cr on other income - Tata Steel 's second
quarter consolidated profit grew by 21.9 percent to Rs 1,528.7 crore from Rs 1,254.3 crore
year-on-year, driven by other income. Revenue declined 18 percent to Rs 29,304.7 crore from
Rs 35,777.1 crore during same period. Other income stood at Rs 2,938.2 crore for the quarter,
significantly higher compared to Rs 321.5 crore in year-ago period due to sale of shares in Tata
Motors.
30. BoB Q2 profit tanks 89% on higher provisions, NPA worsens - Public sector lender
Bank of Baroda 's July-September quarter earnings disappointed street on Friday. Profit has
seen a massive degrowth of 88.7 percent to Rs 124.48 crore during the quarter compared to Rs
1,104 crore in year-ago period. Net interest income, the difference between interest earned and
interest expended, declined 4.6 percent to Rs 3,244 crore from Rs 3,401 crore during same
period. Reacting to the news, Prakash Diwan says it is very clearly a clean up act. Whatever
shows on the price today will be the bottom for the stock.
31. SBI beats forecasts with 25% rise in profit - SBI today posted a 25 per cent rise in
stand-alone net profit at Rs 3,879.07 crore for the second quarter ended September. The
country's largest bank had a stand-alone net profit of Rs 3,100.41 crore in the same quarter last
year. Total income increased to Rs 46,854.81 crore during the quarter as against Rs 41,833.36
crore a year earlier. The bank has reported a consolidated net profit at Rs 4,991.70 crore for the
said quarter compared with Rs 4,023.84 crore in the year-ago period. Total income has jumped
to Rs 66,585.85 crore for the second quarter, from Rs 61,098.67 crore in the same period last
year.
32. Tata Motors Q2 loss Rs 430 cr on damaged JLR cars in China - Tata Motors has posted
a loss of Rs 430 crore during July-September quarter against profit of Rs 3,290.8 crore in
year-ago period, hit by Jaguar Land Rover cars damaged in Tianjin Port explosion and finance
cost. The commercial vehicle and luxury car maker has reported an exceptional cost of Rs
2,652.92 during the quarter, including a charge of Rs 2,493 crore (which was one-time hit) on
account of vehicles damaged at Tianjin Port explosion in Jaguar Land Rover business. It also
included forex loss of Rs 114 crore for the quarter against gain of Rs 26.5 crore in year-ago
period. Weaker China sales and mix, foreign exchange revaluation and higher depreciation &
amortisation expenses in Jaguar Land Rover business also hit bottomline during the quarter.
33.M&M Q2 profit down 2.4% on tax cost, revenue beats forecast - Utility vehicle maker
Mahindra and Mahindra 's (M&M) standalone profit declined 2.4 percent to Rs 923.6 crore in
July-September quarter compared to Rs 946.6 crore in year-ago period, impacted by tractor
business and higher tax cost. Revenue was down 1.8 percent to Rs 9,245 crore during the
quarter compared to Rs 9,410 crore in year-ago period due to a 10.2 percent fall in volume.
Auto sector sales volume declined 2.1 percent year-on-year to 1.13 lakh units and tractor sales
dropped 26 percent to 45,246 units during the quarter.
34. Motherson Sumi Q2 net soars 176% to Rs 287cr, rev up 14% - Motherson Sumi has
posted a robust September quarter earnings boosted by healthy sales across geographies and
business segments. Its net profit surged 176 percent to Rs 287 crore in September quarter from
Rs 104 crore in corresponding quarter last fiscal. During the period, its total revenue climbed
14 percent to Rs 9037 crore compared to Rs 7922 crore in year-ago period. Its consolidated
EBITDA was at Rs 895 crore in Q2 versus Rs 709 crore while EBITDA margin came in higher
at 9.7 percent versus 8.8 percent, year-on-year. Motherson Sumi says it has booked new orders
worth €3.87 billion in H1FY16.
35. BHEL posts Q2 loss Rs 205 cr, revenue beats estimates - State-run power equipment
maker Bharat Heavy Electricals (BHEL) has posted a loss of Rs 205 crore in July-September
quarter against profit of Rs 124.84 crore in corresponding quarter of last fiscal. Lower revenue
and weak operational performance hit bottomline but other income and tax write back limited
losses. Revenue declined 3.35 percent to Rs 5,938 crore during the quarter compared to Rs
6,144 crore in same quarter last fiscal. The company disappointed street with its bottomline
performance but revenue surpassed analysts' estimates. Profit was estimated at Rs 152 crore on
revenue of Rs 5,650 crore for the quarter, according to average of estimates of analysts polled
by CNBC-TV18
36. Union Bank Q2 net up 77% at Rs 658 crore - Union Bank of India today reported a
massive jump of 77 per cent in its net profit to Rs 658 crore for the September quarter.
The bank had reported net profit of Rs 371 crore in the July-September quarter of the previous
fiscal. Global business grew by 7.4 per cent to Rs 5,84,687 crore as on September 30 of the
current fiscal, while deposits soared by 10.2 per cent to Rs 3,30,665 crore, Union Bank said in a
statement. Advances grew by 3.9 per cent to Rs 2,54,022 crore.Net interest income for
July-September quarter of 2015-16 increased by 0.8 per cent to Rs 2,102 crore from Rs 2,085
crore in the same quarter of last fiscal.
TOP BANKING AND FINANCIAL NEWS OF THE WEEK
1. India's banks in better shape but NPA recovery will be prolonged: Moody's - India's
banking system is in a much better shape than four years ago driven by higher GDP growth,
structural reforms and lower interest rates, global credit rating agency Moody's said in a report
on Monday. However, asset quality concerns remain and recovery is unlikely to be quick as
company balance sheets remain highly leveraged, Srikanth Vadlamani, vice president and
senior credit officer at Moody's said. The US based credit rating agency upgrade the outlook on
India's banking sector to stable from negative for the first time in four years mainly due to a
better operating environment. Vadlamani said the recovery in asset quality of Indian banks will
be "U shaped rather than V shaped" indicating that recovery will be long drawn. Public sector
banks in India have been besieged by bad loans particularly from the infrastructure sector in the
last four years, leading to a downgrade in the in the credit outlook by Moody's to negative in
November 2011.
2. Federal Bank appoints Shalini Warrier as COO - Privately-held Federal Bank has
appointed Shalini Warrier as Chief Operating Officer with effect from November 2, this year.
Warrier is a member of the Institute of Chartered Accountants of India being the first rank
holder in 1989. She is also a Certified Associate of Indian Institute of Bankers. Having worked
with Standard Chartered Bank for more than 25 years, Warrier was the CEO and Head of
Consumer Banking of SCB in Brunei, the company said in a release.At Federal Bank, she will
be in charge of spearheading the digital strategy and enhancing operational excellence through
automation and digitalization designed to improve client experience, while at the same time
focusing on optimizing cost of delivery. Her addition to the management team is expected to
add to the Bank's bench strength.
3. Government appoints MDs of four PSU banks - The government has appointed MDs of
four public lenders, including UCO Bank, Corporation Bank and Andhra Bank. Suresh N Patel,
Executive Director of Oriental Bank of Commerce, has been appointed managing director of
the Hyderabad-based Andhra Bank. R K Takkar, ED, Dena Bank, will now head the
Kolkata-based UCO Bank while J K Garg has been named as the MD of Corporation Bank.
The incumbent CMD of Corporation Bank retires in January. Mahesh Kumar Jain, ED, Indian
Bank, has been elevated as the MD and CEO for three years from the date of taking charge or
till the date of his superannuation or till further orders, whichever is earliest, the bank said in a
statement.Jain assumed charge as MD of Indian Bank on November 2, it added.
4. Standard Chartered examines if IDR holders can buy into $5.1 billion rights issue -
British Major Standard Charted said it is examining the legal aspect as to whether Indian
depository Receipt holders of the lender can participate in the USD 5.1 billion rights issue
programme. The Company is currently clarifying local legal and Regulatory Requirements in
order to determine whether to extend the rights issue to holders of Indian Depository
Receipt(IDRs) and will make a further announcement, as appropriate, standard chart said in a
statement.
5. Mahindra Group to appoint payments bank CEO in 4-8 weeks - : Mahindra Group will
appoint a CEO for its soon-to-be launched payments bank in the next four to eight weeks, most
likely an outsider, a senior executive told ET, as the conglomerate looks to setup the bank
within a year. "We should have a CEO on board in the next 4-8 weeks. Search firms are on it
and we have narrowed down on few people," Jagdish Mitra, chief strategy officer at Tech
Mahindra told ET. "We are also looking at a management and leadership team, a total of 20-25
people." Tech Mahindra is among the 11 successful applicants that received the Reserve Bank's
nod to set up payments banks as part of financial inclusion drive. The bank will be an
independent unit under the Mahindra Group led by Tech Mahindra and Mahindra Finance, a
rural non-banking finance company, as equal contributors to the new entity.
6. Corporation Bank to write off Rs 532-cr loan to REI Agro - State-run Corporation Bank
today said it will technically write-off a Rs 532-crore loan given to REI Agro, which is under
the CBI scanner for alleged loan fraud, in the December quarter after making full
provisions. Last month, the Central Bureau of Investigation (CBI) had registered a case against
Basmati rice exporter REI Agro on the basis of a complaint filed by a consortium of
bankers. The consortium, led by UCO Bank, alleged that the company had defrauded them to
the extent of Rs 3,815 crore since 2013 through conspiracy, cheating and forgery. Corporation
Bank Chairman and Managing Director S R Bansal said the lender had already categorised the
account as fraud and has been making provisions for it since January last, as per the regulatory
requirement. "We have been making provisions for the account for the past three quarters... the
December quarter will be the last one and then we will just technically write-off the account,"
Bansal told reporters here after launching the bank's institutional broking services through its
wholly-owned subsidiary CorpBank Securities.
7. Government looks at three options to reduce stake in IDBI Bank - The government is
looking at three options to shed its stake in IDBI Bank and lower it to 49% in the first such
exercise in the public sector banking space. While no decision has been taken, sources said the
easiest way to deal with the reduction in stake is to sell shares in small lots to the public
through the stock exchange route. But the mode is seen to be time consuming and may not
realize the best value for the government as the market would be able to beat the stocks. The
other option is to get state-run insurance companies, including Life Insurance Corporation, and
other pension and provident funds to buy the shares at a premium. The third option is to look at
the Maruti model of 2005-06, where the government had sold the shares to state-run entities
such as State Bank of India through an auction process. Among the institutions, LIC already
holds close to 6% in IDBI Bank.
8. IDBI to raise Rs. 2800Cr. by the QIP or FPO - The Board of IDBI Bank Wednesday
passed an enabling resolution to allow it to raise Rs 2800 crore via a qualified institutional
placement (QIP) or any other instrument like follow-on public offer. But this does not follow
from recent talks that the government was looking to sell direct stake in the firm, and would
hold it indirectly via other public companies, as it does in Axis Bank, a move that has allowed
the latter to operate like a private sector bank. In an interview with CNBC-TV18's Latha
Venkatesh, IDBI Deputy MD BK Batra said he had not heard from government on any planned
reduction of its stake. Recently, Finance Minister Arun Jaitley had said the government was
evaluating options through which a bank such as IDBI could be quasi-private, like how Axis
evolved from UTI. "It was the bank’s annual plan to raise capital was Rs 5000 crore, out of
which Rs 2200 crore is being infused by government in the next few days," he said, adding that
the remaining will be raised from the market. The government’s stake in the company currently
stands at 76.5 percent, which would go up to 80 percent post Rs 2200 crore infusion and then
again come down to around 74-75 percent after Rs 2800 crore is raised, Batra said.
9. RBI imposes Rs 1 crore penalty on Dhanlaxmi Bank - The Reserve Bank of India today
imposed a monetary penalty of Rs 1 crore on Dhanlaxmi Bank. The penalty was levied for
violation of RBI guidelines on Know Your Customer and Anti Money Laundering standards.
RBI in a statement said, "This action is based on deficiencies in regulatory compliance and is
not intended to pronounce upon the validity of any transaction or agreement entered into by the
bank and its customers.
RBI had issued a Show Cause Notice to the bank for not having complied with KYC and AML
guidelines. The notice was sent in respect of a current account under investigation of the
Economic Offences Wing in Mumbai. After considering the documents and personal
submission by the bank, the Reserve Bank came to the conclusion that Dhanlaxmi Bank had
violated the KYC & AML guidelines from time to time, leading to a monetary penalty
10. Government, RBI on same page on monetary Policy committee structure - RBI
Governor Raghuram Rajan said on Thursday said the govenment and the central bank have
agreed on composition of the interest rate-setting monetary policy committee (MPC). MPC
Agreement has been largely done. Only fine-tuning is left. The government and RBI are
broadly on the same page on composition of MPC Rajan Said. The government has proposed to
set up MPC, which will consist of representative from the Finance Ministry and RBI, To decide
on interest rate. Rajan said the Final call on the timing of implementation MPC will be taken by
the Finance Ministry. The revised draft of the Indian Financial Code (IFC), released by the
ministry in july, had suggested doing away with RBI Governor’s veto power and proposed a 7-
member MPC to take rate decision by a majority vote. Of the seven members, four are
proposed to be government nominees and the rest from RBI.
11. Ex-GE Capital India execs want to buy GE’s loan book for $400 million - Pramod
Bhasin and Anil Chawla, who used to be top executives at General Electric India, have teamed
up to jointly pitch for the purchase of GE Capital's consumer and commercial loan portfolio for
an estimated $400 million. Talks are at an advanced stage, said people with knowledge of the
discussions. Bhasin is one of the founders of the domestic BPO industry and former CEO of
back-office firm Genpact, which was spun off from GE. Chawla was managing director of GE
India before launching local operation for US hedge fund and private equity Advisor DE Shaw
in 2006.
12. IDBI bank may be merged with private lender - The government has hired SBI Capital
Markets to draw up plans for the sale of a strategic stake in IDBI Bank and is open to a range of
options including merger with a nonstate lender and preferential allotments to institutions of
sound financial standing. Other proposals that have emerged in early talks include a follow on
public offer and sale to institutional investors through the open market, said persons with
knowledge of the two rounds of discussions that have already been held. Amerger would face
the minimum regulatory hurdle. This will only need the Reserve Bank of India's permission, the
person said. The government currently owns 76.5% of IDBI Bank. IDBI Bank is governed by
the IDBI Act and the government can lower its stake without having to approach Parliament.
That's in contrast with the position at other state-run banks, where the government has
committed to retain a 52% holding at least.
13. IDFC Bank gets listed on bourses at an opening share price of Rs 70.50 - IDFC Bank
shares that demerged from IDFC got listed on the bourses on Friday at an opening share price
of Rs 70.50 on both BSE and NSE. IDFC Bank has been carved out as the country’s newest
bank after it demerged from infrastructure financing firm IDFC Ltd. Rajiv Lall is the MD and
CEO of IDFC Bank. Promoters hold 53 per cent stake in IDFC Bank, whereas institutional
investors have 43.80 per cent and others hold 13.20 per cent stake as of Oct 27, 2015.
14. Foreign Banks’ subsidiary trip runs into a Maharashtra duty hurdle - The ease of
doing business might have improved in India, but not for international banks, which have been
directed by the Reserve Bank of India to form local companies instead of operating as branches
of their parent companies. The plan has hit tax roadblock in Maharashtra which is seeking
stamp duty for the transaction though Pranab Mukherjee as finance minister exempted them
from capital gains tax. Foreign banks, including Singapore's DBS Bank and State Bank of
Mauritius (SBM), which have applied to RBI to launch local subsidiaries in India, are awaiting
an assurance from the Maharashtra government that they will be exempted from paying a stamp
duty on this transfer. "Though capital gains have been exempted, the issue of stamp duty still
remains. Stamp duty is a state subject and most of the foreign banks have a majority of
branches in Maharashtra. This is still an issue which requires clarification if banks have to
move towards subsidiarisation," said a foreign banker who is in touch with RBI on the issue.
This Document has been prepared by Ways2Capital (A Division of High Brow MarketResearch Investment Advisor Pvt Ltd). The information, analysis and estimates containedherein are based on Ways2Capital Equity/Commodities Research assessment and have beenobtained from sources believed to be reliable. This document is meant for the use of theintended recipient only.
This document, at best, represents Ways2Capital Equity/Commodities Research opinion and ismeant for general information only. Ways2Capital Equity/Commodities Research, its directors,officers or employees shall not in any way to be responsible for the contents stated herein.Ways2Capital Equity/Commodities Research expressly disclaims any and all liabilities thatmay arise from information, errors or omissions in this connection. This document is not to beconsidered as an offer to sell or a solicitation to buy any securities or commodities.
All information, levels & recommendations provided above are given on the basis of technical& fundamental research done by the panel of expert of Ways2Capital but we do not accept anyliability for errors of opinion. People surfing through the website have right to opt the productservices of their own choices.
Any investment in commodity market bears risk, company will not be liable for any loss doneon these recommendations. These levels do not necessarily indicate future price moment.Company holds the right to alter the information without any further notice. Any browsingthrough website means acceptance of disclaimer.