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Monday, January 18, 2016

FDSL's IPO subscribed by 2.1 times at NSE's SME platform

The IPO of Fourth Dimension Solutions Ltd (FDSL), which closed for subscription on NSE's SME platform 'Emerge' on January 7, got subscribed by 2.1 times. The net issue offered to public was for 27.44 lakh equity shares which got subscribed 2.1 times amid the volatile market conditions, a company statement said as per the media report. FDSL is an information technology (IT) infrastructure, technical support services and operations outsourcing company. The company's public issue was for Rs 8.7 crore for 28.92 lakh equity shares at a price of Rs 30 per share. Out of total issue size, 1.48 lakh shares were reserved for subscription by market maker, PTI report said. FDSL is the last SME IPO of 2015 and the 12th listing on NSE Emerge. Sarthi Capital Advisors was the sole and lead manager to the issue. This is going to be 3rd listed company by Sarthi Capital on NSE Emerge and their 13th IPO on SME exchanges. The other upcoming IPOs on NSE Emerge by Sarthi Capital include Hitech Pipes and Wealth First Portfolio Managers.

Post Session: Sensex tumbles 266 pts on global cues; RIL dips 5%

The Indian equities continued its losing streak on Monday and settled in the negative terrain amid selling in front line blue chip coupled with a sharp fall in crude oil prices and commodity prices. The market sentiments were also dented by the export data which showed that India’s exports shrunk for a thirteenth straight month, falling 14.75 per cent in December from a year earlier. The 30-share BSE SENSEX closed at 24188.37, down by 266.67 points or by 1.09 per cent, and the NSE Nifty ended 86.8 points lower at 7351. In the bearish trade today, the BSE Sensex touched intraday high of 24524.85 and intraday low of 24141.99, while the NSE Nifty touched intraday high of 7463.65 and intraday low of 7336.4.

The broader market continued to witness hefty selling, with the BSE MidCap and SmallCap Index, dropped in nine out of last 11 trading sessions. The BSE MIDCAP closed at 10062.35, down by 281.38 points or by 2.72 per cent, while the BSE SMLCAP ended at 10345.81, down by 437.07 points or by 4.053 per cent.

On the sectoral front, oil&gas ended the session 3.43 per cent lower with RIL slipping on the back of falling crude oil prices. Following the oil&gas index, realty stocks emerged as other laggards, falling 3.16 per cent.

Leading the decline on BSE Sensex pack were Reliance Industries Ltd. (Rs. 1018.00,-5.14%), Bajaj Auto Ltd. (Rs. 2249.60,-3.67%), Asian Paints Ltd. (Rs. 850.60,-3.29%), Cipla Ltd. (Rs. 590.85,-2.72%), Coal India Ltd. (Rs. 311.45,-2.12%), among others.

Meanwhile, Bharat Heavy Electricals Ltd. (Rs. 142.35,+4.29%), Tata Steel Ltd. (Rs. 236.25,+2.76%), Tata Consultancy Services Ltd. (Rs. 2282.45,+0.84%), Hindustan Unilever Ltd. (Rs. 810.60,+0.80%), Hero MotoCorp Ltd. (Rs. 2443.00,+0.73%), were among top gainers on BSE.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 3041, shares advanced were 394 while 2491 shares declined and 156 were unchanged.

On the global front, the Asian equities ended lower on Monday as fears over the health of the world economy and tumbling oil prices fueled worries over disinflation, hitting investor mood. China’s Shanghai Composite rebounded nearly 0.40 per cent, paring early losses, while Hang Seng tumbled over 1.5 per cent and Japan’s Nikkei 225 also slid 1 per cent amid caution ahead of industrial output data.

Kotak Mahindra Bank Q3 net jumps 32% at Rs 945 cr

Kotak Mahindra Bank, the country’s fourth largest private sector bank by market capitalization, on Monday reported a growth of 31.89 per cent in its consolidated net profit after tax for the third quarter ended December 31, 2015 at Rs 945.16 crore, helped by surge in other income and operating profit. The bank had posted consolidated net profit after tax of Rs 716.61 crore in corresponding quarter of previous fiscal, said Kotak Mahindra Bank in a filing to BSE. Total income of the bank rose 30.56 per cent to Rs 6,950.41 crore in Q3 FY16 from Rs 5,323.46 crore in Q3 FY15. In the quarter, provisions and contingencies jumped significantly to Rs 261.02 crore from Rs 42.18 crore in corresponding quarter of last fiscal. NII, the difference between interest earned on loans and interest paid on deposits, grew 5.2 per cent q-o-q at Rs 1,766.20 crore in the quarter under review. During the quarter under review, the bank’s gross non-performing assets stood at 2.01 per cent of total loans, compared with 1.58 per cent in the year-ago quarter. Net NPA of the bank too rose to 0.85 per cent against 0.83 per cent in corresponding period last year. The other income of the bank increased 38.2 per cent to Rs 1,024.84 crore from Rs 741.56 crore in the year ago period. The merger of ING Vysya Bank with the Bank was effective from April 1, 2015 and accordingly the results for the quarter and nine months ended December 31, 2015 are for the merged entity and not comparable with previous periods, the bank said in the filing. Following the earnings result, shares of bank were trading at Rs 672.70 a piece, down 0.48 per cent, on BSE at 14:20 hours.

NBCC shares plunge as govt revises norms for CPSEs

Shares of National Buildings Construction Corporation fell nearly 5 per cent on Bombay Stock Exchange (BSE) after the company announced that the Government of India (GOI) has issued revised guidelines for CPSEs. "The government of India (GOI) has issued revised guidelines for CPSEs to pay annual dividend of 30 per cent of PAT or 30 per cent of GOI's equity, whichever is higher in lieu of previous guidelines in 2004 communicating a dividend policy of 20 per cent of PAT or 20 per cent of equity, whichever is higher", the company said in a filing to BSE on Monday. Reacting to the news, shares of the company dropped as much as 4.91 per cent in intra-day trade to Rs 899.95 a piece on BSE. In a similar trend, shares of the company dipped 3.81 per cent to Rs 907.00 a piece on National Stock Exchange. Meanwhile, the broader benchmark BSE Sensex was trading at 24,201.80, down 253.24 points, or 1.04 per cent at 15.10 hours.

Nutraplus commences commercial prod of anti-malarial drug

Drug maker Nutraplus India Ltd on Monday said it has commenced commercial production of anti-malarial drug ‘Lumefantrine’ in its new plant at Tarapur. In a filing to the Bombay Stock Exchange, Nutraplus India said, “The company has commenced commercial production in its new plant at Tarapur for anti-malarial drug LUMEFANTRINE.” Previously, it was engaged in the manufacturing of intermediate of the same drug (i.e. n-2 stage) at its existing factory and was selling to the various pharma companies. Now, the company is manufacturing the final end product (i.e. Lumefantrine) on full fledge basis at it’s new production facilities after obtaining necessary approvals, it added. Nutraplus further said that this is a forward integration and shall result in better margin. Moreover, the company is expected to achieve full production capacities in next 3 months in its plant, it said. Meanwhile, shares of the company were trading at Rs 416 apiece, up 6.10 per cent, from previous close on BSE at 15:25 hours.

Asian Paints posts net profit at Rs 463.28 cr in Dec quarter

India’s leading paint company Asian Paints Ltd on Monday reported its consolidated net profit after taxes (PAT) at Rs 463.28 crore for the third quarter ended December 31, 2015. “The consolidated PAT of the company stood at Rs 368.18 crore during the same period a year ago,” said Asian Paints Ltd in a filing to the Bombay Stock Exchange on January 18, 2016. Further, the consolidated total income of the company stood at Rs 4,195.82 crore during Q3 2015-16, as compared to Rs 3,683.09 crore during Q3 last year. Commenting on the development, Asian Paints Ltd, MD & CEO, K.B.S. Anand said, “The demand conditions in the Indian economy remained challenging. However, the decorative business recorded double digit growth in the third quarter aided by the festival season demand.” “The international business did well aided by contribution from units in Middle East. The units in Bangladesh and Ethiopia also did well,” Anand added. The net sales of the company grew to Rs 4,102.95 crore, as compared to Rs 3,602.8 crore during the same quarter last fiscal. The company said that the results of the quarter under review and the corresponding period are not comparable due to acquisition of 51 per cent stake in Ethiopia-based Kadisco Paint through its Singapore-based subsidiary Berger International. Meanwhile, shares of the company closed at Rs 850.60 apiece, down 3.29 per cent, from previous close on BSE.

Exports dip 14.75% in December amid global demand slowdown

According to the data released by the Commerce Ministry, exports tapered for 13th month in a row in December 2015 as outward shipments contracted 14.75 per cent to USD 22.2 billion amid a global demand slowdown. As per the data, imports also plummeted 3.88 per cent to USD 33.9 billion in December over the same month previous year. Trade deficit during the month under review widened to USD 11.6 billion as against USD 9.17 billion in December 2014. Commenting on the issue, a Commerce Ministry Official told the media, “During April-December period of the current fiscal, exports dipped 18 per cent to USD196.6 billion as compared to USD 239.9 billion in the same period of the previous fiscal.” “The main export sectors including engineering, petroleum products and gems and jewellery have recorded negative growth in December, 2015,” he added. As per the data, gold imports in December also more than doubled to USD 3.80 billion as compared to USD 1.36 billion in the year-ago period.

Lower oil prices unlikely to revive demand in Asia: HSBC

A significant decline in crude oil prices is unlikely to result in a swift bounce in demand conditions in Asian economies including India, said an HSBC report. According to the global financial services major, tumbling crude prices are not going to be a "quick fix for Asia's growth malaise". Most Asian economies import crude oil and a lower purchase bill should therefore give a boost to the spending power of consumers, governments and companies, but "it ain't as easy as that", the HSBC Research report said. According to HSBC, falling prices for raw materials, including oil, partly reflects cooling demand in Asia, secondly, there is an income shift under way and its hurting Asia, at least in the short-term. Moreover, crude importers such as advanced economies are preferring to, save their savings, rather than splurge, leaving the world short of demand, it noted. The report said growth across the Asian region would be a "lot lower" if crude was still above USD 100 per barrel. "If underlying growth is even weaker than currently reported, we might see activity sag further once the cushion from the fall in oil prices fades," HSBC Co-head of Asia Economics Research Frederic Neumann said. Lower crude oil prices should in principle be a boost to a region that for the most part imports oil, but that is not happening and growth has decelerated virtually everywhere alongside the decline in oil prices. "Tumbling crude prices are not going to be a quick fix for Asia's growth malaise - rather, they are part of the symptom," Neumann said adding that a bounce in Asian demand thus appears unlikely on the account of oil. "Looks like we'll be stuck in a slow grind for a while," Neumann said. Meanwhile, the Indian government recently lowered its economic growth forecast for 2015-16 to 7-7.5 per cent from 8.1-8.5 per cent.

Indian salaries likely to rise by 10.5% in 2016: Report

Salaries are lexpected to increase by 10.5 percent across levels and industries this year mainly due to optimistic economic outlook, a survey has said. "Organisations are expecting to increase base salaries by 10.5 percent across industries and career levels in 2016," according to Mercer's 'All Industries Total Remuneration Survey', released. The salary increase forecast for 2016 is quite similar to the actual salary increase for 2015. Among the industries surveyed, the projected salary increase ranges from 10-11 percent overall, with relatively higher increases for Life sciences, IT and Chemical industries. Over the years, salary increase differentiation across industries has narrowed down but there is considerable pressure on talent retention as budgets remain tight, it added. "The current pay increase points toward an optimistic economic outlook driving positive sentiment, with companies expecting to increase their headcount. The salary forecasts are the lowest for Consumer, Auto and Shared Services, seeing a dip in salary projections for 2016. Firms in India are assertive of their growth plans and will continue to hire, especially engineers and computer science experts," Mercer Principal and India TRS Product Leader Ruchika Pal said. The survey revealed that 48 percent of these companies are expecting to increase their head count. In 2016, one in two companies are planning to increase head count with Hi-tech, Shared Services and Life sciences leading the pack. The comprehensive survey represents 691 organisations across various industry sectors.

Budget 2016: Nitin Gadkari seeks 'end of life' policy for old vehicles

An ‘end of life’ policy may be announced in the Budget that may include a rebate of at least 50 per cent in excise duty on new vehicles for buyers who surrender their polluting old ones.

Besides, the Budget may see some major announcements for automobile manufacturers which bring investments on green vehicles, a media report said.

“Road Transport and Highways Minister Nitin Gadkari has urged Finance Minister Arun Jaitley to provide at least 50 per cent rebate in excise duty on purchase of new vehicles by buyers who surrender their old polluting vehicles for scrapping,” the media report said.

Gadkari is said to have told Jaitley that this would not only boost the economy and create massive employment, but also lead to a major reduction in pollution, the media report said.

On scrapping of old polluting vehicles, Gadkari has already said that the government is considering giving financial incentives of up to Rs 1.5 lakh on surrender of over-ten-year-old vehicles to check pollution and address road safety concerns.

“Ministry has also requested that accelerated depreciation of up to 50 per cent may be given to auto industry on additional investment for bringing environment-friendly vehicles," the source said.

Jaitley had pre-Budget consultations with Gadkari and Road Transport Ministry officials on January 15.

The demands come close on heels of government announcing a decision to implement stricter emission norms for vehicles from April 2020 despite the auto industry calling it an "extremely challenging" task to move up to BS-VI fuel specifications, skipping BS-V norms altogether.

Last week in a meeting with Gadkari, 26 heads of automobile companies in India had suggested that compliance with BS-VI norms will be extremely challenging, but the industry will work out a way so that all new models are BS-VI compliant from 2020.

The automobile manufacturers have also sought assurance from the government on fuel availability across India when the country moves to the stricter emission norms by 2020.

Regarding the ‘end of life’ policy for polluting vehicles, a proposal to formulate the new incentive policy for surrendering old vehicles is being worked out and would be soon sent for the Finance Ministry's approval, Gadkari has said.

Under the proposed policy, people would get an incentive of up to Rs 30,000 for discarding small vehicles like cars, while total benefits after taking into account tax exemptions could be up to Rs 1.5 lakh for big vehicles like trucks, the minister has said.

The new policy is likely to be valid for over-ten-year-old vehicles across the country.

Panagariya sticks to 8% growth, pins hopes on Q4 'surprise'

Keeping hopes alive for an 8 per cent growth rate this fiscal, NITI Aayog Vice-Chairman Arvind Panagariya has said GDP figures will get revised and there will be a surprise in the fourth quarter.

"I originally said we will get to 8 per cent for 2015-16. It's not ruled out entirely because at the end of the year, revisions do happen... So, there is still possibility that some of these rates might get revised," Panagariya told PTI in an interview.

"I still think we will get a surprise in the last quarter."

In December, the government had lowered its growth forecast for 2015-16 to 7-7.5 per cent from the earlier 8.1-8.5 per cent in its Mid-Year Economic Analysis presented in Parliament during the last session.

Earlier this week, industrial production data showed the sharpest decline in over four years, which fell to (-)3.2 per cent in November after a 5-year high of 9.9 per cent in October.

There are fears in certain quarters that Indian economy would not touch the 8% growth mark against the backdrop of low global demand and subdued farm output.

Panagariya said, "For the whole year, given that current numbers are about an average 7.3 per cent, it is little harder to make up. To make up 0.7 per cent, you have to get 8.7 per cent in the second half."

Terming it as "a little uphill" unless the first two quarters get revised upwards, he said "I'll be quite happy if we get to the 8 per cent in the fourth quarter".

According to Central Statistics Office data, GDP grew at 7 per cent in April-June and 7.4 per cent in July-September this fiscal.

Economy in the first half of this fiscal expanded at 7.2 per cent compared with 7.5 per cent in the same period of the previous fiscal.

To a specific query on the GDP number the government is looking at in 2016-17, Panagariya said, "We (India) should aim at 8 per cent and higher. The economy is moving towards a comfortable position."

On the economy's growth potential in 2016-17, the NITI Aayog VC said, "Scope for GDP growth is enormous, but we have to do the things.

Indian firms most optimistic about economic recovery: Survey

Indian business leaders have emerged as the most optimistic lot globally about economic recovery in 2016, largely owing to a pro-reforms government, recent policy announcements and regulatory changes, a Grant Thornton report said.

According to the Grant Thornton International Business Report (IBR), a quarterly global survey of 2,580 business leaders across 36 economies, 89 per cent of the respondents in India expressed confidence in the stable government and expect economic recovery.

The survey was conducted in the October-December quarter of 2015 and participants were asked how optimistic they are for the economy in the next 12 months, reported PTI.

India was ranked on top, with 89 per cent respondents confident of economic recovery in 2016, followed by Ireland (88 per cent) and Philippines (84 per cent).

"We have a refreshed political will, stretched but resolute businesses, a buzzing start-up space, easing foreign capital policy and some significant legislative reforms in the pipeline -- these are all positive indicators which could not have been imagined two years ago," Grant Thornton India National Managing Partner Vishesh C Chandiok said.

While there is expectation of a recovery, corporate India cited regulations and red tape as constraints on growth. A total of 74 per cent of the respondents said bureaucratic hurdles are impediments in growth.

"The geopolitical tensions and the structural stress building up in the developed and emerging economies would continue to present both opportunities and inherent threats," Chandiok added.

Globally, business optimism heading into 2016 stood at net 36 per cent.

"The global economy continues to change and evolve, with shifting landscapes in major economies creating new challenges but also new opportunities.

"Those businesses with an instinct for growth will be best placed to spot these emerging pockets of opportunity, build new trade links, and make the most of the brighter outlook being reported for 2016," Grant Thornton Global CEO Ed Nusbaum said.

India fails to secure vice presidency of China-backed AIIB

India, which is the second largest stake-holder in the China-backed Asian Infrastructure Investment Bank, has failed to secure a guarantee for the institution's vice presidency even as it asserted that Beijing has no veto rights despite having a say in its functioning, reported PTI. Additional Secretary of Ministry of Finance Dinesh Sharma said that India could not press for the vice presidency as AIIB decided to hire meritorious candidates for such posts, instead of allotting it to countries based on shareholding. "Though we argued for it. I personally was happy to loose that argument because they said the candidates will be decided by merit," Sharma said. AIIB wanted to avoid the patron of allotment of posts followed by the BRICS New Development Bank, under which posts were decided by rotation, he said. Sharma said he was "happy to loose" India's argument for Vice President post as institutions like the IMF and the World Bank were criticised for appointing only US and EU officials. Asked how China got the presidency, he said it was not a cakewalk for Beijing as Russia had fielded a candidate, but it later withdrew. "Chinese could not ensure the Presidency with their share holding. There is no insurance that China will have their President always. They have to get 50 per cent others to get President post. They can not ensure it," he said. He also said China has no veto over the Bank. "It has been ensured that the bank has truly multilateral operational principles not a 'Chinese Exim Bank' with veto rights for China," Sharma said. India has been with China from the beginning ever since it was mooted by Beijing in 2013, he said. China is the largest stakeholder with 26.06 per cent voting shares. India is the second-largest with 7.5 per cent, followed by Russia 5.93 per cent and Germany 4.5 per cent. "People were sceptical about the bank, including in India. But it was found in the course of meeting that the architecture followed by AIIB is currently followed by IMF and Word Bank," he said. "When we went through the details we found that it was not something that what was feared to be a Chinese Exim bank with a different name. That is what the earlier fears were," Sharma said. "The baby appears to be a truly a multilateral bank," he said and complimented AIIB President and ex-Chinese Finance Minister Jin Liqun for his efforts to bring about diversity. The operational structure was such that even with 25 per cent share, China requires "super majority" to push any of its own agenda, he said. The bank's structure has "simple majority, special majority and super majority" principle, Sharma said. "I do not say China has veto but major changes can not be made without China in it," he said. "Going by the articles of association it can not be called a Chinese bank." To a question about whether AIIB will take up financing of the USD 46-billion China-Pakistan Economic Corridor, which India has objected, Sharma said care has been take to avoid funding projects in the territory claimed by another country. "Mutual consent is required in such cases," he said.

Pre Session- Bears may tighten grip on Dalal Street amid global gloom

Indian equity benchmarks are set to witness a bearish opening on Monday as an Asian stock rout deepened amid jitters over the health of the global economy and an ongoing slump in oil prices as a removal of sanctions against Iran threatened to worsen a supply glut, sinking investor sentiment and souring risk taking appetite. The CNX Nifty Index futures for January delivery fell by 0.10 per cent or 7.5 points at 7,443.5 at 10:27 am Singapore time, a sign that Dalal Street may open lower today. The focus today will be on the Q3 earnings numbers of Wipro, the country’s third biggest software services provider which may report a 2 per cent rise in net profit at Rs 2,240 crore in the October-December 2015 quarter. Other companies to report earnings this week include Kotak Mahindra Bank, RIL, Axis Bank, HCL Technologies, Ultra Tech Cement, Idea Cellular, Cairn India and ITC. Aside from Q3 earnings, global stock market movement amidst China’s Q4 GDP data, FII trend, movement of the rupee against the dollar and oil prices will continue to weigh on the Sensex this week. Foreign investors have shunned Indian equities, with this year’s net outflow at USD 686.2 million. Volatility may remain high at the bourses amidst worries over a China slowdown and an ongoing oil collapse. Marking a second straight session in the red, the 30-share Sensex on Friday tanked 317.93 points or 1.28 per cent to end at a 19-month low of 24,455.04 as earnings from blue-chips disappointed and a China rout worsened. The Sensex lost almost 2 per cent for the week, marking its second straight decline.

Markets across Asia continued to bleed heavily on Monday as fears over the health of the world economy and tumbling oil prices fueled worries over disinflation, hitting investor mood. Investors awaited China’s fourth quarter GDP data due on Tuesday which could show a further slowdown in the world’s second biggest economy with growth pegged at 6.8 per cent, year on year by analysts, down from 6.9 per cent in Q3. Oil slid below the USD 30 per barrel mark to a fresh 12-year low with Iran rattling markets by getting ready to increase its shipments by 500,000 barrels per day after the lift-off of West-imposed sanctions against the Islamic Republic over the weekend, threatening to deepen a global supply surplus. China’s Shanghai Composite fell over 0.40 per cent, Hang Seng tumbled over 1.5 per cent and Japan’s Nikkei 225 slid nearly 2 per cent amid caution ahead of industrial output data. Wall Street tumbled on Friday with benchmark S&P 500 sinking to the lowest level since August amidst an ongoing commodity rout and contractions in retail sales & factory output which signaled renewed concerns over the health of the world’s biggest economy. Capping off the weakest year since 2009, US retail sales dipped 0.1 per cent in December while factory output fell for a second month on the trot, down 0.1 per cent last month. The Dow Jones Industrial Average sank 2.39 per cent; the Nasdaq Composite fell 2.74 per cent while S&P 500 declined 2.16 per cent.

Top traded Volumes on NSE Nifty – State Bank of India 29090426.00, ICICI Bank Ltd. 20303548.00, Vedanta Ltd. 15685103.00, Axis Bank Ltd. 13178892.00 and Punjab National Bank 7222691.00.

On BSE, total number of shares traded was 32.03 Crore and total turnover stood at Rs. 2920.07 Crore.

On NSE Future and Options, total number of contracts traded in index futures was 316738 with a total turnover of Rs. 16698.03 Crore. Along with this total number of contracts traded in stock futures were 594002 with a total turnover of Rs. 28562.58 Crore. Total numbers of contracts for index options were 3554962 with a total turnover of Rs. 198395.93 Crore and total numbers of contracts for stock options were 393946 with a total turnover of Rs. 20171.41 Crore.

The FIIs on 15/01/2016 stood as net seller in equity and debt. Gross equity purchased stood at Rs. 3096.66 Crore and gross debt purchased stood at Rs. 1774.79 Crore, while the gross equity sold stood at Rs. 4248.81 Crore and gross debt sold stood at Rs. 2668.45 Crore. Therefore, the net investment of equity and debt reported were Rs. -1152.15 Crore and Rs. -893.66 Crore.

Coal India’s 10% stake sale may spill over to next yr

The 10 per cent stake sale in Coal India is likely to be deferred to next fiscal as the government wants to wait for stability in the equity markets for a better valuation, as per the media reports.

"If we don't get the right price, we may not sell government shares in CIL this fiscal," an official told PTI.

Coal India shares are currently trading at Rs 318.20 a share, resulting in a notional loss of over 11% to investors who purchased the equity at Rs 358 apiece in the disinvestment on January 31, 2015.

At current market price of Rs 318.20, sale of 63.16 crore shares, or 10 per cent stake, would bring in around Rs 20,000 crore to the exchequer.

The government had last sold 10 per cent in the blue-chip on January 31, 2015, at the floor price of Rs 358 apiece and garnered Rs 22,557 crore.

Foreign investors such as Fidelity, Wellington Management and BlackRock have already conveyed to the disinvestment department their reservations over Coal India stake sale at the current juncture as the stock is already beaten down.

Government has already shortlisted five Indian merchant bankers-- JM Financial, SBI Capital and ICICI Securities, Axis Capital and Kotak Mahindra Capital -- for managing Coal India stake sale.

In November last year, the Cabinet approved 10% stake sale in Coal India.

The government currently owns 79.65 per cent in maharatna PSU Coal India.

The stock market slump has wiped away investor wealth across spectrum, including metals and mining stock as global commodity prices have declined significantly.

Aurobindo Pharma gets USFDA nod for 2 generic drugs

Drug maker Aurobindo Pharma Ltd has received final approval from the USFDA to manufacture and market its Tranexamic acid injection and Paricalcitol capsules in the American market, as per the media reports.

The company plans to launch the Tranexamic acid injection by the end of this fiscal and Paricalcitol capsules in the first quarter of the next fiscal, said the PTI report.

“The company has received final approval from the US Food and Drug Administration (USFDA) to manufacture and market Tranexamic acid injection, (100 mg/ml) 1000 mg/10 ml single-dose vial,” Aurobindo Pharma said in a statement.

The approved abbreviated new drug application (ANDA) is generic version of Pharmacia and Upjohn company's Cyklokapron injection in the strength of 100 mg/ml, it added.

"The approved product has an estimated market size of USD 50 million for the 12 months ended November 2015, according to IMS," it said.

Tranexamic acid injection is used in the treatment of short-term control of bleeding in people suffering from hemophilia, including dental extraction procedures. This product is on the WHO list of essential medicines, it added.

The company has also received approval for its Paricalcitol capsules in the strengths of 1 mcg, 2 mcg and 4 mcg.

The product is a generic version of Abbvie's Zemplar capsules in same strengths.

"The approved product has an estimated market size of USD 38 million for the 12 months ending November 2015, according to IMS," Aurobindo Pharma said.

These capsules are indicated for the prevention and treatment of secondary hyperparathyroidism associated with chronic kidney disease.

Pipavav Defence Q3 loss widens to Rs 293.6 cr

Major shipbuilding and offshore fabrication maker Pipavav Defence and Offshore Engineering Company Ltd have reported that its standalone net loss widened to Rs 293.6 crore for the third quarter ended December 31, 2015, on account of sharp decline in sales.

The standalone net loss of the company stood at Rs 70.46 crore during the same period a year ago,” said LIC Housing Finance Ltd in a filing to the Bombay Stock Exchange.

Further, it’s standalone total income decreased sharply by 78.9 per cent to Rs 54.99 crore during Q3 2015-16, from Rs 261.16 crore during the same period a year ago.

It’s sales declined 80.12 per cent to Rs 49.89 crore in the quarter ended December 2015 as against Rs 250.96 crore during the previous quarter ended December 2014.

In March last year, the Anil Ambani group firm Reliance Infrastructure had announced plans to acquire a controlling stake in Pipavav Defence for up to Rs 2,082 crore. The open offer - for acquiring an additional 26 per cent for up to Rs 1,263 crore - was launched on December 2 till December 15 last year. On completion of open offer the Reliance Infrastructure had raised its stake to 35 per cent.

Meanwhile, shares of the company ended Friday’s trade at Rs 79.65 apiece, down 1.61 per cent, from previous close on BSE.