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Wednesday, January 20, 2016

NCRPB to support transport infra projects worth Rs 7,838 cr in UP, Haryana

In a major decision, the National Capital Region Planning Board (NCRPB) on Tuesday decided to support 9 transport infrastructure projects in Uttar Pradesh and Haryana that will substantially improve traffic flow besides reducing pollution benefitting Delhi and adjoining areas.

“The project sanctioning & monitoring group of NCRPB chaired by Madhusudhan Prasad, Secretary, Ministry of Urban Development today discussed these projects costing Rs.7,838 cr and decided to support them with a total loan assistance of Rs.3,113 cr,” Ministry of Urban Development said in a statement.

According to B.K.Tripathy, Member-Secretary, NCRPB, this was the highest loan assistance approved in a single meeting of the Board.

Two infrastructure projects in Uttar Pradesh will cost Rs.6,681 cr for which NCRPB will provide a loan of Rs.2,287 cr. Haryana has proposed projects 7 projects at a total cost of Rs.1,157 cr and will get a loan of Rs.726 cr.

Pre Session- Sensex set to resume drop on global growth jitters

Indian equity benchmarks are likely to witness a gap down opening on Wednesday tracking a bearish trend across Asia as traders weigh a cutback of global economic growth forecasts by the International Monetary Fund (IMF) amidst an ongoing China slowdown, and a continued oil price collapse, souring the appetite for risky assets. Weakness in the CNX Nifty Index futures for January delivery which fell by 0.81 per cent or 59.5 points at 7,377.5 at 10:19 am Singapore time also signals that Dalal Street may open lower today. While it left its forecasts for growth in Asia’s third biggest economy unchanged at 7.3 per cent and 7.5 per cent in FY 2015-16 and FY 2016-17 respectively, the IMF cut the growth forecast for the world economy to 3.4 per cent in 2016 from 3.6 per cent earlier as a commodity slump and political turmoil hits emerging markets such as Brazil while China slows. China’s economic growth forecast for 2016 was left untouched at 6.3 per cent. Back home, traders will be focused on the Q3 earnings numbers of index heavyweights such as Axis Bank, JSW Energy and UltraTech Cement to be unveiled today. Shares of Reliance Industries Limited may witness buying momentum after the company in after-market hours on Tuesday reported a record quarterly net profit of Rs 7,290 crore for the October- December quarter of FY16, as refining margins soared to a seven-year high. Snapping a three-day losing streak, the 30-share Sensex on Tuesday rallied 291.47 points or by 1.21 per cent to end at 24,479.84 driven by bargain buying in beaten down stocks and a market rebound in China as slowing growth upped stimulus bets. Foreign investors pulled out a net USD 276 million from Indian stocks on January 18, resulting in a total outflow of USD 1.1 billion for the year so far.

Asian shares plunged on Wednesday as oil fell below the USD 28 per barrel and the IMF lowered its global economic outlook, fueling a flight to safe haven assets and prompting an exit from risky assets. China’s Shanghai Composite fell for the first time in three days led by a drop in shares of commodity producers amid worries that a slowing economy may erode profits. Hang Seng plunged over 3 per cent and Japan’s Nikkei 225 tanked over 2 per cent to almost a one-year low as a stronger yen curbed the lure for exporter stocks. Wall Street posted a mixed finish on Tuesday amidst optimism that China may do more to stem a slowdown after the economy grew at 6.9 per cent in 2015, the weakest pace since 1990 while Q4 growth slowed to 6.8 per cent. Oil’s slide to a fresh 12-year low weighed on sentiment as the IEA cut the outlook for global crude demand in 2016, fueling concerns over a supply glut. The Dow Jones Industrial Average advanced 0.17 per cent; the Nasdaq Composite fell 0.26 per cent while S&P 500 closed up 0.05 per cent.

Top traded Volumes on NSE Nifty – Vedanta Ltd. 25513321.00, State Bank of India 24501774.00, ICICI Bank Ltd. 14747672.00, Axis Bank Ltd. 14215698.00 and Tata Motors Ltd. 7304555.00.

On BSE, total number of shares traded was 32.06 Crore and total turnover stood at Rs. 3062.84 Crore.

On NSE Future and Options, total number of contracts traded in index futures was 312062 with a total turnover of Rs. 16242.27 Crore. Along with this total number of contracts traded in stock futures were 578114 with a total turnover of Rs. 26640.26 Crore. Total numbers of contracts for index options were 3824987 with a total turnover of Rs. 210998.18 Crore and total numbers of contracts for stock options were 361664 with a total turnover of Rs. 17772.18 Crore.

The FIIs on 19/01/2016 stood as net seller in equity and debt. Gross equity purchased stood at Rs. 3131.97 Crore and gross debt purchased stood at Rs. 256.50 Crore, while the gross equity sold stood at Rs. 4998.03 Crore and gross debt sold stood at Rs. 272.47 Crore. Therefore, the net investment of equity and debt reported were Rs. -1866.06 Crore and Rs. -15.97 Crore.

FireFly Networks gets FIPB nod for foreign investment

FireFly Networks on Tuesday got approval from the Foreign Investment Promotion Board (FIPB) for 50 per cent indirect foreign investment and commencement of activities as a Telecom Infrastructure Provider Category-I (IP1).

The company, a joint venture between telecom operators Airtel and Vodafone to provide public WiFi services, had previously sought permission for the same from the FIPB, however the proposal was deferred in November.

“Based on the recommendations of FIPB, the government has approved the proposal of Firefly Networks for approval of the existing foreign investment (50% indirect) and to permit commencement of activities as a Telecom Infrastructure Provider Category-I (IP1),” the ministry of finance said in a statement.

IDFC Bank authorised to be receiving office for SGB Scheme 2016

The Reserve Bank of India on Tuesday said it has decided to notify IDFC Bank as a receiving office for the second tranche of Sovereign Gold Bond issuance (SGB Scheme 2016).

“Government of India, in consultation with RBI, has decided to notify IDFC Bank as a receiving office for the second tranche of SGB Scheme 2016,” RBI said in a notification.

The notification dated January 14, 2016 has been amended to this effect. The other terms and conditions of the Notification shall remain unchanged, it added.

Stocks to Watch

Reliance Industries: RIL reported 38.7% YoY growth in net profit at Rs. 7,290 crore for the quarter ended December 31. Other expenditure decreased by 12.9% to Rs. 8,549 crore ($ 1.3 billion) as against Rs. 9,811 crore incorresponding period of the previous year due to lower fuel prices.
IDFC Bank: IDFC Bank is in advanced talks to acquire Royal Bank of Scotland's (RBS) corporate banking portfolio in a deal worth up to INR 3,000 crore, reports a business daily.
BASF: The company reported net loss of Rs. 106.38 crore for the quarter ended December 31, 2015. The company’s revenue stood at Rs. 1131.7 crore registering growth of 15.77% yoy.
Greenply Industries: The company recorded a rise of 35% in its net profit at Rs. 35.3 crore for the quarter ended December 31, 2015 as compared to Rs. 26.1 crore for the quarter ended December 31, 2014.
Reliance Power : Reliance Power Ltd posted a net profit after taxes, Minority Interest and Share of Profit/(Loss) of Associates of Rs. 3518.10 mn for the quarter ended December 31, 2015 as compared to Rs. 2544.40 mn for the quarter ended December 31, 2014.
Spicejet: The airline is set to place a big fleet order and is in talks with both Airbus and Boeing for the same, Chairman Ajay Singh told a Business TV channel in an interview on Monday. 
Reliance Infra: The company will announce its Q3 results today. IIFL expects the company’s net profit to fall 4.5% to Rs. 432 crore yoy. The company’s Q3 net profit is likely to plunge 4.2% qoq.
Tata Sponge Iron: The company will announce its Q3 results today. IIFL expects net revenue to plummet 35.70% to Rs. 138 crore yoy. IIFL forecasts the company’s net profit for Q3 FY16 to nosedive to Rs. 5.9 crore, declining at a rate of 64.20% yoy; however, it sees a rise of 3.5% qoq.
KPIT Tech: The IT company will announce its Q3 results today.According to IIFL estimates, the company is expected to report net revenue of Rs. 840 crore at 7.7% growth rate on Y-o-Y basis.
JSW Energy: JSW Energy Ltd, the Sajjan Jindal-led firm, will announce its financial results today. IIFL expects the company’s net profit to decline 18% to Rs. 319.60 crore yoy; Q3 net profit is expected to fall 37.2% qoq.  
Autoline Industries: The company is eyeing for business with lndian Railways and Ministry of Defence and recently got Vendor Registration from Defence and Railway Authorities.
Atlanta: The company secured letter of award for four laning of end of Moran Bypass to Bogibeel Junction of NH-37 in the State of Assam under SARDP-NE Package (II).
Aegis Logistics: The company will expand gas supply operations in South India, as per media reports.
IOC, HPCL, BPCL: Petrol price in Delhi was increased by 96 paise per litre and diesel by 53 paise.
Results: Axis Bank,DHFL,Gati,JSW Energy,Reliance Infrastructure,KPIT Technologies,South Indian Bank,NIIT,Sasken Communication Technologies,Tata Elxsi,Tata Sponge Iron,Ultratech Cement, Indiabulls Housing Finance,Indiabulls Ventures,Istreet Network, Abc Bearings,Edelweiss Financial Services,Triveni Engineering & Industrie,Ashirwad Capital,Assam Petrochemicals,Bharat Bhushan Share & Commodity Brokers Ltd,Gandhi Special Tubes,Geecee Ventures,High Street Filatex, Lee & Nee Softwares (EXPORTS),MENON Bearings,Refex Industries,Mafatlal Finance,Swasti Vinayaka Art And Heritage Corporation,Tayo Rolls, VMT
Global Data: World Economic Forum - Davos CHF, Producer Price Index (MoM) (Dec) EUR, Producer Price Index (YoY) (Dec) EUR, Claimant Count Rate (Dec) GBP, Claimant Count Change (Dec) GBP, ILO Unemployment Rate (3M) (Nov) GBP, Average Earnings including Bonus (3Mo/Yr) (Nov) GBP, Average Earnings excluding Bonus (3Mo/Yr) (Nov) GBP, Current Account (YoY) (Jan) EUR, ZEW Survey - Expectations (Jan) CHF, M3 Money Supply INR, MBA Mortgage Applications (Jan 15) USD, Building Permits (MoM) (Dec) USD, Housing Starts (MoM) (Dec) USD, Consumer Price Index Core s.a (Dec) USD, Consumer Price Index n.s.a (MoM) (Dec) USD, Consumer PriceIndex (MoM) (Dec) USD, Consumer Price Index Ex Food & Energy (MoM) (Dec) USD, Consumer Price Index Ex Food & Energy (YoY) (Dec) USD, Consumer Price Index (YoY) (Dec) USD, Manufacturing Shipments (MoM) (Nov) CAD, Wholesale Sales (MoM) (Nov) CAD, Redbook index(YoY) (Jan 15) USD, Redbook index (MoM) (Jan 15) USD, BOC Rate Statement CAD, BoC Interest Rate Decision CAD, Bank of Canada Monetary Policy ReportCAD, BoC Press Conference CAD, 4-Week Bill Auction USD, Business NZ PMI (Dec) NZD, Foreign bond investment (Jan 15) JPY
Trends in FII flows: The FIIs were net sellers of Rs.8.57 bn in the cash segment on Tuesday. The domestic institutional investors (DIIs) were net buyers of Rs.13.86 bn as per the provisional figures released by the NSE.
Other news in the media:
Engineers India Ltd is likely to join three oil marketing companies IOCL, BPCL and HPCL- to set up a mega refinery cum petrochemical complex on the western coast. (BS)
Strides Shasun got competition watchdog CCI's approval to acquire seven brands from consumer healthcare firm Johnson and Johnson. (ET)
Looking to add $1bn in revenues from inorganic growth to reach its target turnover of $5bn by 2018, Lupin says it is open to late stage specialty assets. (BS)
ITC's instant noodles brand Yippee is inching closer to become a Rs 10bn brand, making the most out of the controversy that hit rival Nestle's Maggi. (BS)
The Supreme Court restrained the government from going ahead with any further disinvestment of its stake in Hindustan Zinc Ltd, the management of which is under the control of a Vedanta subsidiary. (BS)
Indian Oil Corporation aims to operate its largest grassroot refinery at Paradip at the full 15MTPA capacity from next fiscal, a top company official said. (BL)
Godrej Properties said that it has entered into a joint development agreement with Pratap Sarnaik’s Vihang Group to develop 15 acres of land off Ghodbunder Road in Thane. (BL)
State Bank of Mysore has raised Rs 2bn by issuing Basel-III compliant bonds. (ET)
Precision Camshafts fixed the price band between Rs 180-186 per share for its initial public offer (IPO) which will hit the capital market on January 27. (ET)
The International Monetary Fund kept India's growth projection unchanged at 7.3% in the current fiscal and 7.5% in the next, even as it cut world economic outlook to 3.4% for 2016. (BS)
Mineral bearing states Odisha, Karnataka, Gujarat, Rajasthan and Maharashtra have put 16 iron ore and 23 limestone mines under the hammer for the first phase of auction. (BL)
The government will consider a new power tariff policy which aims at promoting clean energy, better regulation of discoms and faster rollout of investments. (ET)

Reliance Industries Quarterly Results


OTHER INCOME1848.001832.002172.002340.002009.00
TOTAL INCOME72749.0078962.0069642.0095868.00111806.00
OPERATING PROFIT12552.0012009.0012040.0011029.0011827.00
NET PROFIT6625.006137.006496.005191.005924.00
NET PROFIT AFTER MINORITY INTEREST6720.006222.006381.005256.005972.00
EPS (RS)22.8021.1021.7017.8020.30

BASF Quarterly Results


OTHER INCOME0.2720.80120.9919.1017.70
TOTAL INCOME1131.971139.031470.671091.43995.26
OPERATING PROFIT-33.33-9.46182.0713.4325.76
NET PROFIT-106.38-58.7092.72-59.33-39.59
EPS (RS)-24.57-13.5621.42-13.70-9.15

FM woos British businesses keen on investing in India

Ahead of the India-UK Economic and Financial Dialogue, Finance Minister Arun Jaitley wooed British businesses keen on investing in India, highlighting initiatives taken by the government to make the country an attractive destination for global investment. UK Chancellor George Osborne hosted Jaitley for dinner on his arrival in London yesterday. The India-UK Economic and Financial Dialogue will be held today after which the two ministers are expected to issue a joint statement, reported PTI. Jaitley is on a three-day UK visit with an interaction with a select group of persons of Indian-origin who are associated with India-UK businesses. A breakfast meeting with Goldman Sachs this morning was followed by a luncheon interaction organised by MasterCard with prospective investors. "The Finance Minister has held a series of meetings with investors and organisations keen on investing in India," PTI report said. Following the meetings,Lord O'Neill, commercial secretary to the UK Treasury at the Foreign and Commonwealth Office (FCO), will host a reception for Jaitley. Today, Jaitley will deliver a keynote address at the Investors Summit scheduled at the London Stock Exchange. The event will be followed by another investors meet, jointly organised by Kotak Mahindra Bank in partnership with the Confederation of Indian Industry (CII). Jaitley will then head to 11 Downing Street, the office of the UK Chancellor of the Exchequer, to make his official address to the India-UK Financial Partnership. This will be followed by the eighth round of the India-UK Economic and Financial Dialogue after which Jaitley and Osborne will have a joint briefing for the media. The key topics of discussions between the two leaders are expected to include various tax rationalisation measures and opening-up of different sectors of the economy for FDI (Foreign Direct Investment). Jaitley is expected to highlight initiatives taken by India over the last few months to make it a more attractive destination for global investment. The stability of the Indian economy amid global turmoil is also expected to be the central theme as the Finance Minister leaves for Switzerland in the evening to attend the World Economic Forum.

About 25% of 18,452 unelectrified villages got power since Aug

Government has electrified almost one fourth of 18,452 unelectrified villages since Prime Minister Narendra Modi's announcement in his Independence Day speech last year that these areas will be provided power within 1,000 days, said an official statement. As many as 4,319 villages have been electrified so far which constitute over 23 per cent of the targetted 18,452 villages to be provided power by government, as per the information updated on Centre's Garv portal which provides details in this regard. The process to electrify 940 other villages is on. Besides 1,457 villages are under energisation. Garv also states that the electrification work is yet to be started in as many as 11,736 villages. Earlier in the day, the Power Ministry said in a statement that it has electrified 276 villages across the country last week (January 11 to 17, 2016) under Deen Dayal Upadhyaya Gram Jyoti Yojna ( DDUGJY). Out of these electrified villages, 139 villages are in Assam, 25 villages in Bihar), 21 - Jharkhand, 60 - Odisha, 30 - Uttar Pradesh and one village in Rajasthan. The Centre has decided to provide power to 18,452 villages by May 1, 2018. The project has been taken up on mission mode and strategy for electrification consists of squeezed implementation schedule of 12 months with 12 Stage milestones for village electrification monitoring with defined timelines.

Rallis India Q3 net dips 20% at Rs 20.41 crore

Rallis India has reported a 20 per cent fall in its consolidated net profit at Rs 20.41 crore for the third quarter ended December 31, 2015. The company had reported a net profit of Rs 25.49 crore in the year-ago period, the company said in a filing to the Bombay Stock Exchange. Total income from operations during the October-December quarter of the current fiscal declined 20 per cent to Rs 311.11 crore as against Rs 388.18 crore in the same period last fiscal, the company said in a BSE filing. Commenting on the performance, Rallis India, Managing Director and CEO, V. Shankar, said, “2015 has been a difficult year for farmers and farming, impacted by climatic turbulence the quarter saw muted farmer sentiments due to reduced kharif yields and lower prices of key crops.” Rallis India is a subsidiary of Tata Chemicals with business presence in the Farm Essentials vertical. Meanwhile, shares of the company were trading at Rs 150 apiece, down 4.97 per cent from the previous close at 12:35 hours on BSE.

Godrej acquires 51% stake in India Circus

Business conglomerate Godrej today said it has acquired 51 per cent stake in home decor and personal accessories brand India Circus, which will increase its footprint in the lifestyle space. India Circus, owned by Krsna Mehta, is positioned as a lifestyle brand that offers home decor and accessories at an affordable price. Along with Godrej Interio, the furniture and home solutions business, India Circus will further strengthen the company's lifestyle business, Godrej said in a statement. With this merger, India Circus expects its market revenue to grow by 500 per cent over the next two years. "I'm excited to announce that we've acquired India Circus, a very niche and exclusive lifestyle brand. With this partnership, we look forward to strengthen our lifestyle footprint and also compliment our existing lifestyle brands like Godrej Interio. "The acquisition of India Circus is one of the steps towards building a robust lifestyle vertical," said Navroze Godrej, Head, Strategy and Innovation, Godrej & Boyce. India Circus will continue to retain its identity and brand name under Godrej, the statement said. India Circus Executive Director Krsna Mehta will be responsible for design and Godrej will be responsible for efficiencies in operations and marketing of the business. Furthermore, India Circus employees have been retained. In the coming years, Godrej will continue to expand its portfolio in the lifestyle segment by investing in existing lifestyle brands and by creating their own, he said.

Subex launches new version of fraud management soln

Bangalore-based Subex Ltd on Tuesday said it has launched a new version of the industry leading fraud management solution, ROC Fraud Management 8.3. In a filing to the Bombay Stock Exchange, the company said, “Subex launches ROC Fraud Management 8.3 Solution.” ROC Fraud Management is optimized for Big Data and efficiently handles huge amounts of data-to cater for exponential growth in transactions in 4G/LTE and data/IP product areas, it added. Alongside the new version of ROC Fraud Management, Subex also introduces the Fraud Manager's Toolkit (FMT) which is a set of tools designed to provide enhanced operational intelligence & best practice measurement metrics to support fast decision making for fraud operations managers, the company said in a statement. Meanwhile, shares of the company closed at Rs 10.08 apiece, up 3.81 per cent, from previous close on BSE.

RIL profit jumps 38.7% at Rs 7,290 cr in Dec quarter

After Anil Ambani-led Reliance Power’s fantastic Q3 numbers, Mukesh Ambani-led Reliance Industries Ltd on Tuesday posted stellar numbers with a jump of 38.7 per cent in its consolidated net profit after taxes at Rs 7,290 crore for the October- December quarter of FY16, as refining margins soared to seven-year high. “The consolidated net profit of the Indian conglomerate stood at Rs 5,256 crore during the same period a year ago,” said Reliance Industries Ltd in a filing to the Bombay Stock Exchange on January 19, 2016. However, RIL’s consolidated total income fell by 26.3 per cent at Rs 70,687 crore during Q3 2015-16, as compared to Rs 95,868 crore during the same period last year. During the quarter under review, the company’s net sales shrink to Rs 68,261 crore, as compared to Rs 93,528 crore during the same quarter last fiscal. RIL earned USD 11.5 on turning every barrel of crude oil into fuel in the third quarter of 2015-16 compared to USD 7.3 per barrel gross refining margin a year ago. Speaking on the performance, RIL, CMD, Mukesh D. Ambani said, “Refining business delivered yet another record performance on the back of seven-year high refining margins and highest ever crude throughput. In the current 9-month period, our refining business EBIT has surpassed the record earnings it achieved in FY15. The petrochemical business also delivered amongst its best quarterly performance, driven by robust polymer margins.” “The benefits of low crude oil and energy prices for our downstream businesses clearly outweigh the impact of these factors on our upstream segment, reflecting in the record earnings for the quarter,” he added. On standalone basis, the company’s net profit jumped to Rs 7,218 crore for the quarter ended December 31, 2015 as compared to Rs 5,085 crore for the quarter ended December 31, 2014. Total income has decreased from Rs 82,598 crore for the quarter ended December 31, 2014 to Rs 58,856 crore for the quarter ended December 31, 2015. Following Q3 earnings, shares of the company closed at Rs 1,043.6 apiece, up 2.51 per cent, from previous close on BSE.

Vishakha Mulye takes charge as ICICI Bank ED after RBI nod

Country’s leading private sector lender ICICI Bank Ltd on Tuesday said it has received Reserve Bank of India’s (RBI) approval for the appointment of Vishakha Mulye, Independent (Woman) Director of Tata Power Company Ltd, as an Executive Director of the Bank for a period of three years. “The appointment of Vishakha Mulye as an Executive Director of the Bank has been approved by Reserve Bank of India (RBI) for a period of three years effective from the date of her taking charge as an Executive Director,” ICICI Bank Ltd in a filing to the BSE. Further, “the Board of Directors vide a circular resolution dated January 19, 2016 has recorded January 19, 2016 as the effective date of appointment and taking charge by Vishakha Mulye as an Executive Director,” it added. On the other hand, Vishakha V. Mulye, Independent (Woman) Director, has stepped down from the Board of Tata Power Company Ltd effective January 18, 2016, consequent upon her being appointed as Executive Director of ICICI Bank Ltd, Tata Power Co said in a separate filing to the BSE. The Board places on record its appreciation for the valuable contribution made to the company by Mulye during her tenure as Director, Tata Power added. Meanwhile, shares of ICICI Bank closed at Rs 228.8 apiece, up 2.74 per cent, from previous close on BSE.