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IT stocks in focus on weak rupee

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Last Updated : Aug 19 2013 | 11:51 PM IST

IT stocks will be in focus as rupee closed at a record low against the dollar on Friday, 16 August 2013. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.

ICICI Bank on Friday, 16 August 2013, reportedly raised interest rates on fixed deposit by 0.25%-0.75% mainly on short term deposits. Deposit rate in the 46 days to 60 days tenure has been hiked by 0.75% to 7%, while in the 61 days to 289 days by 0.75% to 7.75%. One year to 389 day deposit has been hiked by 0.50% to 8%. Five year deposit has been hiked by 0.25% to 8.5%. The bank however kept its benchmark lending rate or base rate unchanged at 9.75%, reports added.

Shares of public sector oil marketing companies (PSU OMCs) will be in focus as the Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas said on Friday, 16 August 2013 that the under-recovery on High Speed Diesel (HSD) applicable for 2nd fortnight of August effective 16 August 2013 increased sharply to Rs 10.22 per litre higher than Rs 9.29 per litre during 1st fortnight of August 2013 with effect from 1 August 2013. In the case of PDS Kerosene and Domestic LPG, under-recoveries for the month of August 2013 remains same at Rs 33.54 per litre and Rs 412 per cylinder respectively since it is computed on monthly basis on these products.

OMCs, effective 16th August 2013, are incurring combined daily under-recovery of about Rs 389 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. This is higher than daily under-recovery of Rs 379 crore for the previous fortnight effective 1 August 2013. The OMC's have reported Rs 25579 crore as under-recoveries during 1st Quarter of 2013-14 on diesel, PDS Kerosene, domestic LPG.

Tata Motors will be watched on media reports that workers delivering auto parts to Tata Motors-owned Jaguar Land Rover (JLR) factories in the UK are expected to unveil a walkout plan next week. Logistics firm DHL has been holding talks with the staff union, which is now expected to give notice of industrial action on Tuesday, 20 August 2013. DHL, which employs 1,800 people at JLR's three main plants in the country, manages warehouses and the delivery of parts to production lines. A logistics blockade could bring operations at Solihull and Castle Bromwich in the Midlands and Halewood on Merseyside to a standstill, forcing a shutdown, reports suggested.

Indiabulls Real Estate said it has purchased the entire stake of US-based FIM in seven real estate projects for Rs 1172.16 crore. These projects include residential apartments in over 120 acres in Gurgaon, 160 acres in other regions of the national capital region and 15 acres in Chennai. FIM held 49% stake in these joint ventures and had invested Rs 847.48 crore in 2006 to 2008. With the purchase of the stake, these project subsidiaries will now be fully owned by Indiabulls Real Estate, the company said in a statement.

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Real estate developer Housing Development and Infrastructure (HDIL) has reportedly decided to scrap plan to sell the 70-acre land parcel at Kochi Special Economic Zone and is now looking to construct IT infrastructure there.

Sesa Goa and Sterlite Industries (India) (Sterlite) in a joint statement on Saturday, 17 August 2013 announced that merger of Sterlite and The Madras Aluminium Company (MALCO) with Sesa Goa and transfer of MALCO power plant to Vedanta Aluminium (VAL) pursuant to the Scheme of amalgamation and arrangement amongst Sterlite, MALCO, Sterlite Energy (SEL), VAL and Sesa Goa and their respective Shareholders and Creditors ('Composite Scheme') and the Scheme of Amalgamation of Ekaterina (Ekaterina) with Sesa Goa and their respective Shareholders and Creditors (Ekaterina Scheme) has become effective. The company has fixed 28 August, 2013 as the record date for determining the list of the shareholders of Sterlite, MALCO and Ekaterina to whom the equity shares of the Sesa Goa will be allotted as per terms of the scheme as already announced on 25 February 2012 in the following manner; every equity shareholder of Sterlite holding 5 equity shares in Sterlite shall be entitled to be issued 3 shares of the Sesa Goa. Every holder of Sterlite ADSs (each representing 4 Sterlite shares) holding 5 Sterlite ADSs shall be entitled to receive 3 Sesa Goa ADSs (each representing 4 Sesa Goa shares). Every equity shareholder of MALCO holding 10 equity shares in MALCO shall be entitled to be issued 7 equity shares of the Sesa Goa. Every equity shareholder of the Ekaterina holding 25 equity shares in Ekaterina of $0.1 each shall be entitled to be issued 1 equity share of the Sesa Goa.

Shares of Strides Arcolab will be in focus after media reports suggested that the Prime minister Manmohan Singh on Friday, 16 August 2013, cleared the Strides Arcolab-Mylan deal, overruling the concerns raised by Department of Industrial Policy and Promotion (DIPP) and Ministry of Health. The Foreign Investment Promotion Board (FIPB) had kept its approval on the deal in abeyance till there was clarity on brownfield foreign direct investment (FDI) norms one in which acquisition is built into a new project. Now, the deal will be brought to the Cabinet Committee on Economic Affairs (CCEA) under existing policy to get the final approval, reports suggested. On 28 February 2013, US-based Mylan and Bangalore-based Strides Arcolab signed the agreement under which the US drug major was to acquire Agila Specialties, the injectible medicine business of Strides.

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First Published: Aug 19 2013 | 9:06 AM IST

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