Monday, December 29, 2014

Sensex Up Over 200 Points, Nifty Trades Above 8,250

The BSE Sensex and Nifty rose over 0.8 per cent after opening with minor gains on Monday. The Sensex gained over 250 points to 27,507, while the Nifty surged nearly 80 points to a high of 8,279.
Global cues remained positive. US markets ended higher on Friday with both Dow and S&P 500 closing at record highs. Asian markets were mostly positive on Monday.
Sentiment also turned positive as foreign investors were net buyers of Indian equities on Friday after twelve consecutive days of selling.
Metal counters led the gains on Monday. Four out of the top five gainers in Nifty were metal stocks. Sesa Sterlite was the top gainer in Nifty, up 4 per cent. JSPL, Tata Steel, Hindalco were the other gainers in Nifty, up between 2 to 3.5 per cent. The BSE Metal index was up over 2.5 per cent.
Market sentiment also got a boost after reports suggested that the government is planning the ordinance route to make changes to the Land Acquisition Act. The report said that the government plans to exclude 13 central laws to clear several infrastructure and Public Private Partnership projects.
The high beta auto and realty stocks also witnessed buying today. The CNX Auto index gained 1.5 per cent, while the realty index was up over 2 per cent. DLF, Tata Motors, Hero MotoCorp and Maruti Suzuki were up between 1 to 2.5 per cent.

Easier entry rules, competitive taxation key to boost manufacturing, says Finance Minister Arun Jaitley

Blaming high cost of capital for slowdown in manufacturing sector, Finance Minister Arun Jaitley on Monday pitched for removal of entry barriers and a globally competitive taxation regime to attract investments and boost growth.
"We have to put house in order," Jaitley said, to accelerate the growth, as the manufacturing sector was not growing as per its potential and radical steps might be required to revive growth in this key segment, although as results will not be visible overnight.
Speaking at a day-long workshop on Make-in-India, he however said Indian economy may improve slightly after two years of slowdown and the next fiscal will be even better.
"The entry point into the manufacturing sector itself has to be eased. Our initial barriers have to be lowered and perhaps even removed. If we keep the doors closed investments won't come in," he said.
Jaitley said tax regime should be compatible with rest of the world as when people buy goods "they do not like to purchase taxes along."
Stating that manufacturing will remain a challenge unless radical steps are taken, he said cost of capital is the single factor that has in recent times slowed manufacturing.
On ease of doing business, the finance minister said, "What is it that has happened in the last few years that added to complication of doing business (in India). Was it the uncertainty over the tax administration (that) has scared investors away? Has it not resulted in close down of plants which were comparable to global competitors?" Referring to the tough Land Acquisition Act, he said the law itself is going to add to the complications for investors.
"Danger would be if we lost out on cost, if we lose out on quality then we will be faced with a situation, where we become a nation of trader rather than a nation of manufacturer," Jaitley said.

L&T Hydrocarbon Engineering gets Rs894 crore order from ONGC

Larsen and Toubro Ltd on Monday said that its subsidiary, L&T Hydrocarbon Engineering (LTHE), has won an offshore contract worth Rs.894 crore from Oil and Natural Gas Corp. Ltd (ONGC). The order is for additional development of ONGC’s Vasai East project. The contract includes engineering, procurement, construction and installation of two wellhead platforms, subsea pipelines and modification of existing facilities in Heera-Panna-Bassein block of Mumbai Offshore, the company said in a statement.

The project, part of ONGC’s strategy to improve the recovery factor of Vasai East field, is scheduled to be completed by April. This order is one of the many domestic orders India’s largest engineering and construction company has received in the recent past.

The company’s management has already said that there may be more domestic orders in the next few years versus its current trend of higher orders from international projects. The hydrocarbon segment of the firm however has been facing margin challenges due to high costs and slower execution.

The operating margin of the hydrocarbon segment was negative for the quarter ended 30 September, compared with a positive margin of 8.7% in the corresponding quarter of the previous year. Shares of L&T rose 1% to Rs.1,504.30 apiece on the BSE at 10.15am on Monday, while the benchmark Sensex index was up 0.71% at 27,434.43 points.

Wednesday, December 24, 2014

NCML Industries IPO to open on Dec 29

NCML Industries plans to hit the capital markets on December 29 with an offer for sale of 60 lakh equity shares through an initial public offer (IPO).

The issue would open for subscription on December 29, 2014 and close on January 2, 2015, the company said in a statement.

NCML Industries plans to enter the capital markets by selling 60 lakh equity shares through its IPO.
The price band has been fixed at Rs 100 to Rs 120 per equity share of Rs 10 each.

The company is into the business of importing, manufacturing and marketing of edible oil in India with international presence.

Corporate Strategic Allianz Ltd is the book running lead manager to the issue.

The equity shares are proposed to be listed on BSE and National Stock Exchange (NSE).

Brokerages raise UltraTech’s target price post Jaypee deal.

 The move by UltraTech Cement  BSE 4.31 % to buys Jaiprakash Associate's cement plants in Madhya Pradesh for about Rs 5,400 crore is seen as a positive by brokerages. A couple of them have even raised the target price of UltraTech Cememt.

UltraTech Cement has signed a memorandum of understanding (MoU) to buy two cement plants of Jaiprakash Associates BSE 4.69 %, a deal that will help consolidate its position as India's biggest cement-maker.

The company will acquire 5.2mnt clinker and 4.9mnt grinding capacity along with 180MW captive power capacity located at Bela (2.1mnt clinker and 2.6mnt grinding) and Sidhi (3.1mnt clinker and 2.3mnt grinding).

While the deal is on higher side of valuation based on existing capacity at US$180 per ton (based on grinding capacity), however, adjusting for expansion potential (and additional capex for the same), it is valued at around US$140 per ton, on our calculation," said Morgan Stanley report.

"Given the company has been able to reduce execution time for a new project and gains market share with the deal, we see this as medium term positive," the report added.

Sensex down 36 points in cautious early trade

The benchmark BSE Sensex fell over 36 points in early trade on Wednesday due to offloading of positions by participants in view of monthly expiry in the derivatives segment amidst sustained capital outflows.
The 30-share barometer, which had lost 195.33 points in the previous session, moved further down by 36.69 points, or 0.13%, to 27,469.77 with stocks of infrastructure, oil & gas, metal, capital goods, healthcare and banking sectors leading the fall. Also, the National Stock Exchange index Nifty shed 6.95 points, or 0.08%, to 8,260.05. Brokers said squaring-up of positions by speculators as today being the last trading session of December expiry and persistent selling by foreign funds, influenced sentiments.
They said, however, a firming trend at other Asian markets following overnight gains in US markets on robust economic growth in the third quarter, capped losses on the domestic bourses. Among other Asian markets, Hong Kong's Hang Seng index was up by 0.21%, while Japan's Nikkei rose 1.17% in early trade today. The US Dow Jones Industrial Average ended 0.36% higher in yesterday's trade.

Tuesday, December 23, 2014

Bhushan Steel promoters among 260 Sebi-barred entities

In fresh troubles for crisis-hit Bhushan Steel, four members of its promoter family, including chairman as well as managing director, figure among 260 entities barred by Sebi for suspected money laundering and tax evasion activities through stock markets.
Those barred by Sebi include the company chairman Brij Bhushan Singal, his son and manging director Neeraj Singal, as also their respective spouses Uma Singal and Ritu Singal.
All four of them were allotted shares on preferential basis by Radford Global and First Financial — the two firms at the centre of a massive Sebi crackdown on misuse of this route of share allotment to launder money and avoid taxes.

While further probe is continuing by Sebi along with other agencies such as the Income Tax Department, the Enforcement Directorate and the Financial Intelligence Unit, all the 260 entities, including four from the Singal family, have been barred from all kinds of dealings in securities markets till further directions through an interim order.

No reply was available to queries made to Bhushan Steel, which is already in the dock for ‘cash-for-loan’ scam. It is facing CBI probe in relation to alleged bribing of top officials at public sector banks pertaining to their huge loans amounting to over Rs 40,000 crore.

In its orders, Sebi last Friday said that the modus operandi of the barred entities typically involved stock market dealings aimed at evading long-term capital gains tax and showing the source of income as legitimate from stock markets.

Gujarat Pipavav gains 5% on tie up with NYK Auto Logistics

Shares of  Gujarat Pipavav Port climbed as much as 4.6 percent intraday Tuesday after the company entered into an arrangement with NYK Auto Logistics (India).
As per the agreement, NYK has been sub-leased land for developing a dedicated common user integrated RO-RO yard at Pipavav Port, said the company in its filing.
The RO-RO yard with annual designed capacity for handling 250,000 vehicles will be ready for operations by February 2015, it added.

The company will provide all the port and related facilities to NYK for ensuring smooth and seamless flow of automobile cargo upon commencement of the RO-RO facility.Port Pipavav is managed and operated by APM Terminals, the ports and terminals company of the maritime giant, the AP Moller-Maersk Group.

With a 43.01 percent stake, APM Terminals is the largest shareholder in Port Pipavav. Other key shareholders in Port Pipavav are New York Life International India Fund (Mauritius) LLC; IDFC Infrastructure Fund; The Infrastructure Fund of India; IL&FS Trust Company; Jacob Ballas Capital India; Unit Trust of India; Industrial Development Bank of India; and India Infrastructure Fund.