SPARC net loss widens to Rs 41.02 cr in Q3

Pharma firm Sun Pharma Advanced Research Company Ltd (SPARC) has reported that its standalone net loss widened to Rs 41.02 crore for the third quarter ended December 31, 2015, weighed down by rise in expenses.

“The standalone net loss of the company stood at Rs 18.91 crore during the same period a year ago,” Sun Pharma Advanced Research Company Ltd said in a filing to the Bombay Stock Exchange on February 3, 2016.

However, the standalone total income of the company grew 5.9 per cent at Rs 34.1 crore during Q3 FY16, as compared to Rs 32.21 crore during the same quarter last fiscal.

Meanwhile, shares of the company closed at Rs 286.20 apiece, down 3.33 per cent, from previous close on BSE.

Dust of worries! Indices set for a weak Wednesday start

If the point is sharp, and the arrow is swift, it can pierce through the dust no matter how thick. - Bob Dylan
 
RBI decided to keep repo rate unchanged at 6.75%, along expected lines. Rise in food prices, concerns over the progress of fiscal consolidation and a challenging global environment are key reasons cited in the policy. Meanwhile, the Central bank will continue with daily variable rate repos and reverse repos in order to smooth liquidity. Consumer inflation has moved higher during past five months. RBI has targeted 5% inflation by end of March 2017 but trajectory of oil prices, currency movement, monsoon and inflation resulting from hike in salaries and pensions of Central Government employees (not accounted for in current projection) hold the key.
 
The late sell-off on Tuesday is set to keep the selling pressure on at start. Nifty will attempt a recovery near the 7400 levels. The rupee could drop below the 68 mark versus the dollar today. The heartening news amidst the gloom is that China’s services sector expanded the most in six months. The Caixin-Markit services PMI was at 52.4 in January, up from 50.2 in December. Metals, oil & gas, power, healthcare and auto stocks were among the major losers on Tuesday and they could see sell-off again. Mid-cap and small-cap stocks are also bearing the brunt. Key results today include Bajaj Finance, CCL Products, Gateway Distriparks, Hexaware Technologies, Dish Tv, KEC International, La Opala, Lakshmi Machine, Mangalam Cement, Orient Cement, Meghmani Organics, Pfizer, TD Power and Redington India.
 
The NSE may reportedly announce a re-balancing of Nifty index in its semi-annual review later this month. Punjab National Bank, Vedanta, Hindalco and Cairn India could move out says a report. IndiaBulls Housing Finance, Aurobindo Pharma, Indian Oil Corporation, Eicher Motors and Bharti Infratel are among those which stand a chance to be included, the report added.
 
US stock indices tumbled on Tuesday, as weakness in Energy and Financial companies offset strength in Google parent Alphabet toy maker Mattel, and fashion retailer Michael Kors.
Alphabet officially surpassed Apple to become the most valuable company in the world.
Meanwhile, crude oil futures fell below US$30 per barrel, down 5.5% on the day following a 6% slide on Monday.
 
The Dow Jones Industrial Average sank 295.64 points, or 1.8%, to end at 16,153.54. The S&P 500 index slumped 36.35 points, or 1.9%, to close at 1,903.03. The Nasdaq Composite index plunged by 103.42 points, or 2.2%, to settle at 4,516.95.
 
Days after Prime Minister Narendra Modi defended subsidies aimed at the poor, ET reports that the government is gearing up to announce a mammoth rollout of the National Food Security Act (NFSA) with an outlay at Rs 130,000 crore, will be double the number earmarked in this year's Budget.
 
Finance Minister Arun Jaitley favoured increasing public spending to boost the economic growth. India has been growing by 7-7.5 per cent, and for the country to accelerate, all sectors have to contribute, Jaitley reportedly said at the MGNREGA Sammelan-2016.
 
Yusuf Khwaja Hamied, currently the Non-executive Chairman of drug major Cipla Ltd, has increased his stake in the company to over 20% by acquiring additional 5% stake of his wife Farida Hamied. 
 
Tata Motors is considering changing the name of its new Zica hatchback as global panic mounts over an outbreak of the identical-sounding Zika virus, the company reportedly said.
 
TeamLease Services Limited has finalized the allocation of 22,38,498 Equity Shares at Rs. 850 per share (upper end of the Price Band) aggregating to Rs. 190.28 crore to 15 anchor investors.
 
GMR Infrastructure slipped 1.8% to Rs 12.72 on BSE after the Philippines apex court upheld the decision to award Cebu Airport modernization project to the consortium of the company.
 
Coal India slipped to 3% to Rs.319 on BSE. The company and its subsidiaries on provisional basis achieved 94% of targeted production at 52.86 million tons in January 2016.
 
Yahoo is looking to cut 15 per cent of the company's headcount (about 1,600 jobs), according to media reports. The company will also shut down several business units, the reports add.
 
Microsoft Corp. is all set to buy London-based smart-keyboard maker Swiftkey for about US$250 million, according to a UK financial daily.
 
Godrej Properties Ltd. is hoping to double its full-year sales booking in the current financial year from the INR 2,600 crore levels that it recorded in 2014-15.
 
DLF: The Group has posted a net profit of Rs. 1639.50 million for the quarter ended December 31, 2015 as compared to Rs. 1317.90 million for the quarter ended December 31, 2014.
 
Maruti Suzuki: Maruti Suzuki will launched the Compact SUV Vitara Brezza at Delhi Auto Expo.
 
Lupin: Pharma Major Lupin announced that its US subsidiary, Lupin Pharmaceuticals Inc. has launched its Metformin HCl ER Tablets, 500 mg and 1000 mg to market a generic equivalent of Santarus Inc.’s Glumetza HCl ER Tablets, 500 mg and 1000 mg.
 
Tata Communication: The company posted a decline in consolidated net profit by 79.8 per cent at Rs 21.89 crore in the quarter ended December 31, 2015.
 
Adani Ent: Billionaire Gautam Adani’s mega project worth US$ 16.5 billion in Queensland, Australia, has received environmental approval from the state’s Department of Environment and Heritage Protection (EHP).
 
Hindustan Zinc: The company is looking to expand its all operations in a time-frame of 3-5 years, taking current ore production levels of 9.36 MTPA to 14.00 MTPA and finished metal production levels from 0.85 MTPA to 1.10 MTPA.
 
Birla Corporation: The proposed Rs. 5,000-crore deal by Birla Corporation Ltd. to acquire two cement manufacturing units of Lafarge India Pvt. Ltd., along with two cement brands has been called off.
 
Vedanta: Vedanta Resources will repurchase bonds worth up to $250 million of its outstanding $1.25 billion convertible bonds due this year.
 
Cipla: Yusuf Khwaja Hamied, currently the Non-executive Chairman of drug major Cipla Ltd, has increased his stake in the company to over 20% by acquiring additional 5% stake of his wife Farida Hamied.
 
RPG Life Sciences Ltd: The pharma company reported an increase of 84.58% in its standalone net profit at Rs. 4.67 crore for the third quarter ended December 31, 2015.
 
DCM Shriram Ltd: The company reported more than two-fold jump in its consolidated net profit at Rs. 60.48 crore for the quarter ended December on higher sales and fall in interest outgo.
 
Minda Industries:  Minda Industries reported a 121.5% increase in standalone net profit at Rs. 28.8 crore for the third quarter that ended on December 31, 2015.
 
Crompton Greaves: The company reported consolidated net loss of Rs.107.03 crore for the quarter ended December 31, 2015.
 
Tata Motors: Tata Motors has decided to rename its soon-to-be-launched hatchback Zica as concern grows globally over the outbreak of the identical sounding name Zika virus.
 
Grindwell Norton: The company’s consolidated revenue stood at Rs. 280.79 crore, up 0.36% yoy but down 1.06% qoq.
 
Majesco: Majesco reported consolidated net profit of Rs. 7.9 crore vs loss of Rs. 0.6 crore qoq.
 
Hero MotoCorp: Hero MotoCorp reported a marginal growth in Jan '16 sales with 5,63,348 units as against 5,58,982 units sold in Jan '15.
 
Jindal Stainless: Jindal Stainless Ltd's standalone net loss narrowed to Rs.191.25 crore for the quarter ended December 31, 2015 compared to Rs. 341.98 crore in the corresponding quarter of the previous year, but widened from Rs. 188.05 crore in preceding quarter.
 
Tube Investments: Tube Investments of India Ltd posted a net profit of Rs. 1115.00 mn for the quarter ended December 31, 2015 compared with Rs. 871.40 mn for the quarter ended December 31, 2014.
 
Escorts: Escorts, leading engineering conglomerate, reported standalone net profit of Rs.20.49 crore for the quarter ended December 31, 2015, registering decline of 42.58% yoy, but growth of 26.62% qoq.
 
Maharashtra Scooters: The company recorded a decline of 30.7% in its net profit  Rs.1.8 crore for the quarter ended December 31, 2015 compared with Rs.2.6 crore for the quarter ended December 31, 2014.
 
Amara Raja Batteries: Amara Raja Batteries reported standalone net profit of Rs. 136.18 crore for the quarter ended December 31, 2015, registering growth of 33.07% yoy and 11.1% qoq.
 
Bayer Crop: The consolidated net profit for the quarter was at Rs. 2.7 crore as against Rs. 5.5 crore. The company’s standalone revenue stood at Rs. 642.40 crore, down 9.78% yoy and 45.31% qoq.
 
AstraZeneca: AstraZeneca announced that it has completed the transaction to acquire a majority equity stake in Acerta Pharma, a privately-owned biopharmaceutical company based in the Netherlands and US.
 
HSIL: The company recorded increase 22.4% in its net profit at Rs.37 crore for the quarter ended December 31, 2015 compared with Rs.30.3 crore for the quarter ended December 31, 2014.
 
United Breweries: The company has posted a net profit of Rs. 721.20 mn for the quarter ended December 31, 2015 compared with Rs. 399.40 mn for the quarter ended December 31, 2014.
 
OCL India: OCL India, flagship company of 'Dalmia Group, reported standalone net profit of Rs. 37.07 crore for the quarter ended December 31, 2015, registering growth of 28.85% yoy and 119.74% qoq.
 
Godrej Properties: The company reported a consolidated net profit of Rs. 51.99 crore for the quarter ended  December 31, 2015, registering growth of 10.06% yoy, but declining 51.03% qoq.
 
Uflex: Uflex, flexible packaging solutions company, reported consolidated net profit of Rs. 78.68 crore for the quarter ended December 31, 2015, registering growth of 37.87% yoy.
 
Torrent Power: Torrent Power Ltd posted a net profit of Rs. 3720.10 mn for the quarter ended December 31, 2015 where as the same was at Rs. 687.70 million for the quarter ended December 31, 2014.
 
Results: Hexaware Technologies, KEC International, Hikal, Intrasoft Technologies,Sun Pharma Advanced Research Company, J.B.Chemicals & Pharmaceuticals, Hindustan Copper, Elder Pharmaceuticals, Dish TV India,Pfizer, Redington (INDIA), Gateway Distriparks,Greaves Cotton, La Opala Rg, Accelya Kale Solutions,Bajaj Finserv,Bajaj Finance,CCL Products (INDIA), Aptech, Accel Transmatic,Bajaj Hindusthan Sugar, Adi Finechem, Alchemist, Alchemist Realty, Auroma Coke, Cambridge Technology Enterprises, Dalmia Bharat, Elango Industries, Fruition Venture, Klrf,Mangalam Cement, Mangalam Organics, Neuland Laboratories, Orient Cement,Trident, Orient Cement, Religare Enterprises, Shiva Medicare, The Byke Hospitality, Thomas Cook (INDIA), TTK Healthcare 
 
Global Data: RBNZ Governor Wheeler Speech  NZD, BRC Shop Price Index (MoM) (Jan) GBP, Building Permits (MoM) (Dec) AUD, Building Permits (YoY) (Dec) AUD, Exports (Dec) AUD, Imports (Dec) AUD, Trade Balance (Dec) AUD, Caixin China Services PMI (Jan) CNY, Bank of Japan Governor Kuroda Speech  JPY, Consumer Confidence Index (Jan) JPY, Non-monetary policy's ECB meeting EUR, Markit Services PMI (Jan) EUR, Markit Services PMI (Jan) EUR, Markit PMI Composite (Jan) EUR, Markit Services PMI (Jan) EUR, Markit Services PMI (Jan) EUR, Markit PMI Composite (Jan) EUR, Markit PMI Composite (Jan) EUR, Markit Services PMI (Jan) EUR, Markit Services PMI (Jan) GBP, Consumer Price Index (YoY) (Jan)Preliminar EUR, Consumer Price Index (EU Norm) (YoY) (Jan)Preliminar EUR, Consumer Price Index (EU Norm) (MoM) (Jan)Preliminar EUR, Consumer Price Index (MoM) (Jan)Preliminar EUR, European Commission Releases Economic Growth Forecasts EUR, Retail Sales (MoM) (Dec) EUR, Retail Sales (YoY) (Dec) EUR, M3 Money Supply INR, MBA Mortgage Applications (Jan 22) USD, ADP Employment Change (Jan) USD, Markit PMI Composite (Jan) USD, Markit Services PMI (Jan) USD, ISM Non-Manufacturing PMI (Jan) USD, EIA Crude Oil Stocks change (Jan 29) USD, Foreign investment in Japan stocks (Jan 29) JPY, Foreign bond investment (Jan 29) JPY
 
Trends in FII flows: The FIIs were net sellers of Rs.11.39 bn in the cash segment on Monday. The domestic institutional investors (DIIs) were net buyers of Rs.3.23 bn as per the provisional figures released by the NSE.
 
Other news in the media:
 
Lupin Pharmaceuticals Inc launched metformin, its generic copy of diabetes drug Glumetza, in the US market. A First-to-File (FTF) product, the company will be priced 15-20% lower and enjoy 180 days of marketing exclusivity by the US Food and Drug Administration (FDA). (ET)
 
Indian Oil Corporation, is hoping to build a strong upstream portfolio as the oil rout turns assets cheaper while leaving traditional upstream companies such as Oil and Natural Gas Corporation with depleting cash reserves. (ET)
 
Tata Motors said on Tuesday that it has decided to rename its soon-to-be-launched hatchback Zica as concern grows globally over the outbreak of the identical sounding name Zika virus (BS)
 
PC Jewellers said that the Reserve Bank of India has approved increase in investment limit by foreign institutional investors/foreign portfolio investors. (BS)
 
Moving ahead with its decision to open up the coal sector for commercial mining, government has identified 15 blocks to be alloted to central and state PSUs for undertaking production and sale of the dry fuel. (ET)
 
Lupin pharmaceuticals Inc launched metformin, its generic copy of diabetes drug Glumetza, in the US market. A First-to-File (FTF) product, the company will be priced 15-20% lower and enjoy 180 days of marketing exclusivity by the US Food and Drug Administration (FDA). (ET)
 
Sale of liquor in plastic bottles has been banned in Maharashtra with effect from April 1 this year, fearing it might harm the health of consumers, the state government has told the Bombay High Court. (ET)
 
India approved the third phase of development projects being carrying out in Afghanistan. These projects are part of the 92 small-scale programmes that India had previously approved in an effort to strengthen bilateral strategic and commercial ties. (BL)

Initiatives like Digital India good opportunity for US businesses: Exim Bank

Government's initiatives like Digital India, Make in India and Smart Cities Mission present American businesses a good opportunity to sell high-tech products in the country, US Exim Bank said as per the media reports.

"I want to emphasise the potential for cooperation in three government-led initiatives.

"Digital India will present American businesses with an opportunity to sell their products towards new high-speed internet and digital infrastructure in India.

"The Make-in-India initiative offers US high-tech companies the chance to sell equipment to Indian manufacturers harnessing the globally competitive resources of innovators right here in India," Export Import Bank (EXIM) of the United States Chairman Fred P Hochberg said as per the PTI report.

Delivering the keynote address at the Global Trade Review's (GTR) India Trade and Export Finance Conference, Hochberg said the Smart Cities mission will also offer US exporters the chance to provide engineering and high-tech products towards the modernisation of the world's largest democracy.

Several American companies are looking at opportunities in the renewable energy, transportation and construction sectors.

"We are working with a number of renewable energy companies in the US and they are looking to increase their business here," Hochberg said, adding that India's commitment to renewable energy, particularly solar, is comprehensive and given the country's scale, it has the potential to change the global energy game.

He pointed out that India plans $142 billion investment in railway projects and its aviation sector is fastest growing in the world, increasing by nearly 20% every year.

This offers a huge opportunity for US locomotive and aircraft manufacturers as well as engineering and construction firms that will be bidding to build hundreds of new train stations and airports.

At a time of global economic disruption and with a diminishing number of bright spots, competition for projects among exporters will increase in places like India, he remarked.

He said export credit agencies like Exim play a key role in fostering global economic growth through infrastructure investment by filling financing gaps.

"Our mission is to support US jobs and promoting companies headquartered in the US. We also support the Indian companies to invest in the US and export from our country," he added.

Slow GDP recovery may change govt's policy stance: Report

Slower growth recovery may prompt a potential rethink of government's policy stance away from fiscal consolidation towards "reflating" aggregate demand, says a report by global financial services major UBS.

The 7th Central Pay Commission (CPC) is implicit to this change in the country's policy framework as it amounts to an increase in government support for consumption at the expense of planned fiscal consolidation, it said as per the PTI.

The report noted that investors are either "unaware of or ignoring risks" from potential change in policy stance.

"Our recent discussions with investors indicate some complacency," it said, adding that investors are presuming immediate CPC implementation as a given and looking at such a policy shift positively, ignoring risks to macro stability.

Moreover, investors looking at APAC/GEMs are largely unaware of any such policy shift or haven't realised the full impact as they are looking at the CPC narrowly from central government's fiscal perspective, said Gautam Chhaochharia, Head of India Research, UBS, and author of the report.

According to UBS, India's macro backdrop is very different now as against 2008, the last time India adopted CPC and expanded fiscally.

The report noted that financing the widening current account deficit in the present environment may not be as conducive.

Moreover, international investors in government bonds have increased many-fold and they arguably care more for macro stability when compared to near-term growth and politically, national election was in 2009, while next one due in 2019.

On RBI's policy stance, the report said that it is likely to be a "staggered/delayed/diluted" implementation and 75 bps rate cuts by RBI in 2016.

The report further noted that consumption boost is not guaranteed even with CPC, neither is it surely sustainable beyond 2-3 quarters.

"Markets may be ignoring this and also risks to currency / inflation. Any delay/dilution to CPC, as per our baseline scenario, would be a negative surprise for specific sectors/ stocks," Chhaochharia said.

UBS end-2016 Nifty target is 8,200, while, its downside scenario implies end-2016 Nifty of 7,000.

Indian consumers most confident globally in Q4 2015: Nielsen

Indians were the most confident globally when it came to job prospects, personal finances and immediate spending intentions in the fourth quarter of 2015, according to global performance management company, Nielsen.

"India continues to lead the global confidence index for the quarter at 131 points, the same as last quarter followed by the Philippines (117), Indonesia (115) and Thailand (114)," Nielsen said in a statement.

The Nielsen consumer confidence index measured perceptions of local job prospects, personal finances and immediate spending intentions among more than 30,000 respondents with internet access in 61 countries.

Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively, said the PTI report.

Among the world's largest economies, China's score was 107, a rise of one point from the third quarter, followed by the UK (101), the US (100), Germany (98) and Japan (79), which all showed quarter-on-quarter confidence declines.

Commenting on the findings, Nielsen India Region Senior Vice President Roosevelt D'Souza said: "With inflation largely under control and various macro-economic indicators looking positive, the industry is looking at a period of stability after a volatile 2015. This sense of optimism seems to be rubbing off on the Indian consumer, and consumption is expected to get a fillip in the new year."

According to the survey, four in five (80 per cent) urban Indian respondents indicated the highest level of optimism globally on job prospects, down one percentage point from the previous quarter (81 per cent in Q3 2015).

"Similar trends were seen when respondents were questioned about perceptions on the state of their personal finances over the next 12 months - 82 per cent said it was good or excellent for the quarter," it said as per the PTI report.

It, however, said job security continued to be the top concern for Indians (20 per cent) although state of the economy (14 per cent) has replaced work-life balance (7 per cent) as the second biggest concern, which is down from 12% in the same quarter last year.

India's recessionary sentiment, on the other hand, is notably high (50 per cent) given their optimistic confidence index score of 131.

In terms of discretionary spending and savings, India once again leads the top ten countries when it comes to perceptions of a whether it's a good/bad time to buy things they want and need over the next 12 months, the survey said as per the PTI report.

"Over three out of five (65 per cent) online respondents polled indicated this is indeed a good time for purchases," it added.

Royal Enfield launches new bike Himalayan

Eicher Motors Ltd on Tuesday said Royal Enfield, the fastest growing motorcycle brand in the world, launched its ambitious all-terrain motorcycle – Himalayan, expanding its product range in the mid-sized bike segment. The company, which is the two-wheeler arm of Eicher Motors, currently sells various popular models like Bullet, Classic, Thunderbird and Continental GT. Commenting on the development, Eicher Motors Ltd, MD & CEO, Siddhartha Lal said, Himalayan is the culmination of Royal Enfield’s 60 years of enduring history in its spiritual home—the Himalayas. Our single biggest insight in all these years of riding has been that the best motorcycle for the Himalayas is not one that tries to dominate its landscape, but one that is able to go with its flow.” “With its purpose-built ground-up design, the Himalayan is a simple and capable go-anywhere motorcycle that will redefine adventure touring in India,” he added. The bike, which comes with 220 mm ground clearance, would be lauched commercially in middle of March. Himalayan comes with five speed gearbox and 24.5 bhp engine. The company would also sell accessories to go with the “go anywhere” bike. Meanwhile, shares of the company closed at Rs 17,197.15 apiece, up 0.82 per cent, from previous close on BSE.