Key benchmark indices edged higher on the first trading session of the week, with the market sentiment boosted by data showing that foreign funds remained buyers of Indian stocks on Friday, 21 February 2014. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, reached their highest closing level in more than four weeks. The Sensex garnered 110.69 points or 0.53%, up close to 175 points from the day's low and off about 20 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Indian stocks edged higher for the second trading session in a row today, 24 February 2014. From a recent low of 20,536.64 on 21 February 2014, the Sensex has gained 274.90 points or 1.33% in two trading sessions. The Sensex has risen 297.59 points or 1.45% in this month so far (till 24 February 2014). The Sensex has declined 359.24 points or 1.69% so far in calendar 2014 (till 24 February 2014). From a record high of 21,483.74 on 9 December 2013, the Sensex has declined 672.30 points or 3.12%. From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 3,362.73 points or 19.27%.
Coming back to today's trade, pharma stocks gained on renewed buying. Dr. Reddy's Laboratories, Lupin and Cadila Healthcare hit record high. Shares of state-run power generation major NTPC tumbled after the Central Electricity Regulatory Commission in its latest order directed power utilities to charge production incentives based on actual offtake, instead of on their readiness to produce power at above 85% capacity utilization.
Key benchmark indices edged lower in early trade on weak Asian stocks. A bout of volatility was witnessed in morning trade as the key benchmark indices trimmed initial losses in morning trade. Intraday volatility continued as key benchmark indices once again slipped into the red after moving into positive zone from negative zone in mid-morning trade. Key benchmark indices once again moved into positive zone from negative zone in early afternoon trade. Key benchmark indices retained positive zone in afternoon trade. Key benchmark indices extended gains and hit fresh intraday high in mid-afternoon trade. Key benchmark indices extended gains and hit fresh intraday high in late trade as European stocks reversed initial losses after the latest data showed that German business confidence brightened for a fourth straight month in February 2014.
The market sentiment was boosted by data showing that foreign funds remained buyers of Indian stocks on Friday, 21 February 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 603.41 crore on Friday, 21 February 2014, as per provisional data from the stock exchanges.
The market may remain volatile this week as traders roll over positions in the futures and options (F&O) segment from the near-month February 2014 series to March 2014 series. The near month February 2014 F&O contracts expire on Wednesday, 26 February 2014. The stock market remains closed on Thursday, 27 February 2014, on account of Mahashivratri.
The S&P BSE Sensex garnered 110.69 points or 0.53% to settle at 20,811.44, its highest closing level since 24 January 2014. The index jumped 127.88 points at the day's high of 20,828.63 in late trade. The index fell 63.45 points at the day's low of 20,637.30 in early trade.
More From This Section
The CNX Nifty garnered 30.65 points or 0.5% to settle at 6,186.10, its highest closing level since 24 January 2014. The index hit a high of 6,191.85 and a low of 6,130.80 in intraday trade.
The BSE Mid-Cap index garnered 19.55 points or 0.3% to settle at 6,441.60. The BSE Small-Cap index garnered 22.30 points or 0.35% to settle at 6,415.63. Both these indices underperformed the Sensex.
The S&P BSE IT index (down 0.38%), the S&P BSE Teck index (down 0.51%), the S&P BSE FMCG index (up 0.45%), the S&P BSE Power index (down 1.45%) and the S&P BSE Metal index (down 0.91%) and the S&P BSE Consumer Durables index (up 0.02%) underperformed the Sensex.
The S&P BSE Bankex (up 1.19%), the S&P BSE Capital Goods index (up 2.53%), the S&P BSE Healthcare index (up 1.11%), the S&P BSE Oil & Gas index (up 0.59%), and the S&P BSE Auto index (up 0.68%) outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,371 shares gained and 1,293 shares fell. A total of 145 shares were unchanged.
The total turnover on BSE amounted to Rs 1892 crore, higher than Rs 1715.52 crore on Friday, 21 February 2014.
Shares of India's largest power generation firm by capacity NTPC tumbled on huge volume after the Central Electricity Regulatory Commission in its latest order directed power utilities to charge production incentives based on actual offtake, instead of on their readiness to produce power at above 85% capacity utilization. The stock plunged 11.31% at Rs 117.20. The scrip hit 52-week low of Rs 116.60 in intraday trade. On BSE, 46.55 lakh shares were traded in the counter, compared with an average volume of 5.08 lakh shares in the past one quarter.
Tata Power surged after the company said that it has got relief from the Central Electricity Regulatory Commission (CERC) that has asked electricity procurers to pay Rs 329.45 crore as compensatory tariff for its Mundra Ultra Mega Power Project (UMPP) to partly offset escalation in the price of imported coal. The stock jumped 5.02% to Rs 82.65. The stock hit a high of Rs 84.50 and low of Rs 81.60. CERC has asked Gujarat, Rajasthan, Punjab, Haryana and Maharashtra Electricity boards to pay this extra amount for the period 1 April 2012 to 31 March 2013, Tata Power said during trading hours today, 24 February 2014. Tata Power further said that a compensatory tariff of Rs 0.524 per kWh has been granted for the project from 1 April 2013, as per CERC order. This order is in continuation of CERC's previous order of April 2013 and the high level committee's recommendations of August 2013.
Tata Power said that the management of the company finds the order balanced keeping in view the beneficiaries and consumer interests. The decision of CERC was awaited to make Mundra viable, which had got impacted due to no fault of itself, but due to change of law at Indonesia as also other coal exporting countries and an unprecedented rise in coal prices which could not have been perceived, Tata Power said. This will help in resolving a major impasse affecting imported coal based power projects in the country that got impacted due to uncontrollable extraneous factors, Tata Power said. The order provides partial relief to Mundra UMPP, which has been contributing to the nation by way of about 2-3% of the gross generation, Tata Power said.
Mundra UMPP has since inception been delivering to its full potential across the five beneficiary states albeit with tremendous fiscal pain and this challenge of keeping Mundra UMPP viable had continued far too long, Tata Power said. Coastal Gujarat Power -- the wholly owned subsidiary of the company in which this UMPP is housed -- will continue to honour its commitment towards the nation's energy security by providing reliable and competitive power supply through the project, Tata Power said in a statement.
Separately, Tata Power Company after market hours said that a meeting of the board of directors of the company has been convened on 27 February 2014 to consider various fund raising options including but not limited to equity issuances by way of a rights issue, preferential issue, qualified institutions placement or any combination thereof
Adani Power was flat at Rs 36.45. The company during market hours today, 24 February 2014, said that the Central Electricity Regulatory Commission on 21 February 2014 has decided the methodology for determination of compensatory tariff for Adani Power's 4,620 megawatt Mundra thermal power plant, in continuation to its previous order of April 2013. Despite facing huge financial losses, Mundra power plant has been supplying power to the states of Gujarat and Haryana, Adani Power said. This order will facilitate in sustaining operations at Mundra and enable the company to continue honouring PPA commitments, Adani Power said. The order shall mitigate hardships to some extent on account of impact of enactment of Indonesian regulation and shortage of domestic coal supplies from Coal India (CIL), Adani Power said.
The order has been passed by CERC considering the views of all the relevant shareholders and is balanced in the interest of the State Discoms, consumers, generation companeis, financial institutions and the nation as a whole, Adani Power said. Power supply from Mundra shall continue to remain competitive even with compensatory tariff, in comparison to other sources of procurement of power by the State of Gujarat and Haryana, Adani Power said. When the power sector is facing a multitude of issues, this order shall go a long way in reviving investor confidence and will provide sustainable energy security for the country, the company said in a statement.
Reliance Power rose 1.11%. Commenting on the order of the CERC on Reliance Power's 3,960 MW Sasan Ultra Mega Power Project (UMPP), a Reliance Power Spokesperson said: "Reliance Power welcomes the order of the Hon'ble CERC recognising that the unprecedented and unforeseen foreign exchange rate variations beyond the control of the company and beyond the normal expectations may need to be considered for quantification and compensation by the procurers appropriately". Reliance Power made the announcement during market hours today, 24 February 2014.
The Hon'ble Commission has observed that the rate quoted by the company is the lowest not only amongst all supercritical/contemporary power projects, but also compared to the cost of generation of hydro power projects generally, Reliance Power said. Considering the extremely competitive rate at which the procurers are getting power from the company, there may be a case for the procurers to share a part of the burden on account of depreciation of the rupee.
Reliance Power said that the management of the company is grateful to the Hon'ble Commission for specifying a fast track 8 week schedule to examine relevant facts, before giving any final directions in this regard under Section 79(1)(b) of the Electricity Act in the interest of the project as well as consumers of the procurer states.
The Sasan Ultra Mega Power Project is the world's largest integrated coal mine and power project having six units of 660 MW each. Two units have already been commissioned and the third unit has achieved boiler-light-up. Also, coal production has already commenced from the 20 million tonnes per annum capacity Moher and Moher-Amlohri coal mines.
Pharma stocks gained on renewed buying. Glenmark Pharmaceuticals (up 2.17%), Ranbaxy Laboratories (up 2.78%) and Sun Pharmaceutical Industries (up 0.91%) gained. Cipla shed 0.56%.
Cadila Healthcare rose 4.69% to Rs 995.10 after striking a record high of Rs 1,009 in intraday trade. The company announced after market hours that it has received the final approval from the USFDA to market Clonidine Hcl Injection 0.1 and 0.5 mg/ml, 10 ml in the United States. Clonidine hydrochloride injection is a centrally acting analgesic solution for use in continuous epidural infusion devices which is indicated in combination with opiates for the treatment of severe pain in cancer patients that is not adequately relieved by opioid analgesics alone.
Cadila Healthcare said that the company now has 90 approvals and has so far filed 216 ANDAs since the commencement of filing process in FY 2003-04.
Lupin rose 2.34% to Rs 956.90 after striking a record high of Rs 958.40 in intraday trade.
Dr. Reddy's Laboratories rose 2.41% to Rs 2,795 after striking a record high of Rs 2,815 in intraday trade.
Reliance Infrastructure (RInfra) rose 0.33%. The company today, 24 February 2014, announced completion of the Trichy-Karur road in Tamil Nadu undertaken through its special purpose vehicle TK Toll Road. This is Reliance Infrastructure's tenth road project, which has achieved full commercialization, the company said. Built at a cost of Rs 732 crore, the two-four laning of 63 kms of Trichy-Karur (TK) road has been completed and toll collection started, RInfra said in a statement.
The project has been executed on Build Operate Transfer (BOT) basis under the aegis of National Highways Authority of India. RInfra has been awarded the contract to operate and maintain the road for a concession period of 30 years. TK road is a section of NH-67 connecting Coimbatore to Trichy, Kumbakonam, Tanjavur and Nagapatinnam. The road connects major tourist destinations such as Srirangam, Samayapuram, Kallanai, Mukkombu and also industrial zones. The corridor also connects more than 44 villages with important cities like Coimbatore and Bengaluru.
Commenting on this development, Mr. Sudhir R Hoshing, CEO (Roads), Reliance Infrastructure, said: ''We are happy to announce completion of the project. The road will not just provide a hassle-free, safe and smooth driving experience for regular traffic, but also connect to industrial units and Trichy and Coimbatore international airports. The corridor will witness approximately 15,000 vehicles per day that is expected to double in the next four years. With the opening of TK corridor, now we have all of our six road projects worth Rs 4000 crore in Tamil Nadu operational''.
RInfra already operates five road projects in Tamil Nadu viz. Nammakal to Karur; Dindigul to Samayanallur; Trichy to Dindigul; Salem to Ulundurpet and Hosur to Krishnagiri.
IDFC fell 1.16% to Rs 94.05 in volatile trade. The stock hit a high of Rs 94.85 and low of Rs 93.90. The Reserve Bank of India (RBI) on Friday, 21 February 2014, notified that the foreign share holding by foreign institutional investors (FIIs) in IDFC has crossed the overall limit of its paid-up capital. Therefore, no further purchases of shares of this company would be allowed through stock exchanges in India on behalf of FIIs, RBI said. IDFC has passed resolutions at the board of directors' level and a special resolution by the shareholders, agreeing for decreasing the limit from 54% to 52.5% for FIIs. RBI said that since FIIs had crossed the overall limit to buy stake in IDFC, they will not be allowed to purchase any further number of shares through the Indian stock exchanges.
Index heavyweight and cigarette maker ITC rose 0.74% at Rs 319.85 in volatile trade. The stock hit high of Rs 320.40 and low of Rs 316.10.
Index heavyweight Reliance Industries (RIL) rose 0.14% at Rs 812.40 in volatile trade. The scrip hit high of Rs 814.50 and low of Rs 805.75.
Bank stocks were mostly higher. Among private sector banks, ICICI Bank (up 1.12%), HDFC Bank (up 0.81%), Federal Bank (up 0.48%), Kotak Mahindra Bank (up 0.9%) and AXIS Bank (up 3.85%), gained.
Among PSU bank stocks, State Bank of India, Canara Bank, Bank of India and Bank of Baroda rose 0.1% to 3.68%.
Punjab National Bank rose 1.02%. The bank has raised Rs 1000 crore capital through Tier II (Basel III Compliant) bonds. The state-run bank made the announcement during market hours today, 24 February 2014.
United Bank of India surged 5.95%. United Bank of India before market hours today, 24 February 2014, said that its board of directors at its meeting held on Saturday, 22 February 2014, has accorded its approval to create, offer, issue and allot by conversion of up to 80000 PNCPS of Rs 100,000 each into such number of equity shares of Rs 10 each at an conversion price as may be determined in accordance with the Regulation 76(1) of SEBI ICDR Regulations on preferential basis to Government of India in one or more tranches.
The Board further approved issuance and allotment by conversion of PNCPS up to 11 crore equity shares of Rs 10 each at such price as may be determined in accordance with the Regulation 76(1) of SEBI ICDR Regulations on preferential basis to the President of India within 31 March 2014.
The approvals of the Board are subject to all applicable approvals/consents from various Regulators and specific approval by the Central Government in this regard.
Union Bank of India edged higher in choppy trade after the state-run bank denied media reports that it is in merger talks with troubled state-run bank United Bank of India. The stock rose 0.05% at Rs 103.20. The scrip hit high of Rs 103.60 and low of Rs 101. "We once again deny the news that United Bank of India may merge with Union Bank of India and no such negotiations are in place. Furthermore, there is no information with us that needs to be submitted to Stock Exchanges in terms of Clause 36 of the Listing Agreement," Union Bank of India said in a statement.
United Bank of India also denied media reports that it is in merger talks with Union Bank of India.
Auto stocks edged higher on renewed buying.
Maruti Suzuki India was up 0.52% at Rs 1,683.30. The stock was volatile. The stock hit a high of Rs 1,693.90 and low of Rs 1,646.65. Maruti has received about 14,000 orders for the Celerio in less than two weeks of its introduction, Maruti's chief operating officer for marketing and sales Mayank Pareek said in a media interview on Friday, 21 February 2014. Mr. Pareek said that the Celerio's automatic transmission is driving demand for the vehicle. Half of the orders for the 14,000 Celerio were models with automatic transmissions, he said. "Demand for the Celerio has exceeded our expectations," he said. Maruti introduced the Celerio on 6 February 2014 with an optional automatic transmission, a rarity for an entry-level car in India. The Celerio's automatic gearbox allows the driver to switch between automatic and manual modes. Maruti expects to draw a large number of buyers for the automatic-transmission model due to the relatively small difference in price with the manual-transmission version.
Maruti has also decided to stop manufacturing the A-Star and Estilo small cars due to weak demand for these two models. The A-Star and Estilo join the former flagship model, the M800 in being junked. Maruti stopped making the M800 in January after a production run of about three decades.
Mahindra & Mahindra (M&M) rose 1.47%. The company last week announced a reduction in prices of its passenger vehicle portfolio ranging from Rs 13,000 to Rs 49,000. The company also reduced prices of its premium SUV, the Rexton by up to Rs 92,000. The reduction is due to the lower excise duties announced in the Interim Budget and would be effective immediately, M&M said in a statement on 19 February 2014.
TVS Motor Company rose after the company announced a reduction in the prices of its two and three wheelers following reduction in excise duty announced by the government in Interim Budget for 2014-15 announced on 17 February 2014. The stock was up 1.7%.
Mr. J Srinivasan, Vice President - Sales, TVS Motor Company said, "In keeping with TVS Motor Company's tradition of trust and transparency, the benefit of the excise duty reduction has been passed on to the consumers through price reduction ranging between Rs 850 and Rs 3500 on the entire range of two and three wheeler models. Further, we have also worked out a mechanism to support all our channel partners through the transition on so that the benefit of reduction in prices is available to consumers even on the existing trade stock. This is true to TVS's longstanding tradition of standing by our consumers and dealers."
Hero MotoCorp gained 1.67%. The company last week said it has decided to pass on the entire benefit of the excise duty reduction to customers. Hero MotorCorp said it has judiciously spread out the price cut across the product portfolio ranging from 2% going up to 5% with the maximum reduction being Rs 4,500 per unit. The government reduced excise duty on two-wheelers to 8% from 12% for a period up to 30 June 2014 in the Interim Budget for 2014-15 announced last week.
Bajaj Auto rose 0.22%.
The government reduced excise duty on cars, commercial vehicles, sports utility vehicles (SUVs), motorcycles and scooters for the period up to 30 June 2014 in the in the Interim Budget for 2014-15 announced on 17 February 2014. The excise duty on small cars, two-wheelers and commercial vehicles was reduced to 8% from 12%. The excise duty on SUVs was reduced to 24% from 30%. The excise duty on large cars was cut to 24% from 27%. The excise duty on mid-segment cars was cut to 20% from 24%.
Capital goods stocks edged higher on renewed buying. Bharat Heavy Electricals (Bhel) (up 3.95%), Crompton Greaves (up 2.65%), Siemens (up 1.08%) and Thermax (up 2.76%) gained. ABB India fell 0.47%.
L&T edged higher after the company said that the Foreign Investment Promotion Board (FIPB) has approved the proposal for issuance of equity shares, Compulsorily Convertible Preference Shares (CCPS) and /or Compulsorily Convertible Debentures (CCD) of Rs 1000 crore by L&T Infrastructure Development Projects (L&T IDPL) to a wholly owned subsidiary of CPP Investment Board (USRE III), Inc. which is under incorporation. The stock was up 2.85%. The investment is subject to finalisation and execution of definitive agreements with the investor and receipt of necessary regulatory and other approvals, L&T said.
BEML gained 2.08%. BEML after market hours on Friday, 21 February 2014, said it has rolled out 136th Metro Car to Delhi Metro Rail Corporation, the final consignment for deployment in the RS-6 Project of Delhi Metro. BEML bagged an order worth Rs 923.44 crore from Delhi Metro in March 2011 for the supply of 136 Intermediate Cars for its prestigious RS-6 Project for replacing the existing 4-Car train sets to 6-Car train sets for enhancing passenger carrying capacity.
SKF India jumped 6.81%. The company's net profit surged 50.32% to Rs 48.39 crore on 15.31% growth in total income from operations to Rs 599.59 crore in Q4 December 2013 over Q4 December 2012. The Q4 result was announced after market hours on Friday, 21 February 2014.
SKF India's net profit declined 12.28% to Rs 166.72 crore on 2.12% growth in total income from operations to Rs 2274.96 crore in the year ended 31 December 2013 over the year ended 31 December 2012.
The profit after tax (PAT) of Rs 166.72 crore in FY 2013 is after absorbing an expenditure of Rs 22.10 crore incurred as VRS compensation which has been disclosed as an exceptional item, SKF India said in a statement.
SKF India's board of directors at its meeting held on Friday, 21 February 2014, inter alia has decided to recommend a dividend of Rs 7.50 per share for the year ended 31 December 2013 (FY 2013).
Commenting on the company's financial performance, Mr. Shishir Joshipura, MD, SKF India said, "2013 was challenging year on several fronts. Steep depreciation of Rupee, high interest rates and persistent inflation coupled with subdued industrial activity demanded a differentiated response from leaders. Our focused efforts at enhancing delivered value to our customers and improving operational efficiencies enabled us to deliver a steady performance and strengthen our leadership position."
GMR Infrastructure was unchanged at Rs 20.30. GMR, Temasek and IDFC Alternatives led consortium of Investors (IDFC Consortium) have agreed to restructure their existing investment in GMR Energy (GEL). These investors had invested Rs 1395 crore in Compulsorily Convertible Preference Shares (CCPS) in GEL in 2010. GMR Group and the investors have now agreed to restructure the terms taking into account the interest of both the parties. The announcement was made after market hours on Friday, 21 February 2014.
Subject to satisfaction of conditions precedent, GMR Infrastructure (GIL) will issue CCPS worth Rs 788.8 crore to Temasek and Rs 347.8 crore to the IDFC Consortium through a preferential allotment. The residual investment of the investors in GEL will continue, GMR Infrastructure said.
Compulsorily Convertible Preference Shares ("CCPS") to be issued by GMR Infrastructure to Tamasek and IDFC consortia amounting to Rs 1136.6 crore would be converted into equity shares of GIL after 17 / 18 months i.e. during September - October, 2015 based on the price to be determined as per Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 [SEBI (ICDR) Regulations] at the time of conversion i.e. higher of the average of the weekly high and low of the closing prices of the GIL equity shares during the 26 weeks or the average of the weekly high and low of the closing prices of the GIL equity shares quoted on a recognised stock exchange during the 2 weeks ending with 30 days prior to date of conversion.
GMR Group Chairman, Mr. G. M Rao has said, "We are extremely happy to have Temasek and the IDFC Consortium as shareholders of GIL. This is the culmination of the long term partnership with the Investors and demonstrates their confidence in the Group. We are confident that together with the support from the Investors, we will build a strong Energy portfolio. This will also pave way for value creation at GMR Energy and GIL as the Power portfolio has almost reached the peak of its capex cycle and is getting into the operational phase".
Mr. Satish Mandhana, Managing Partner & Chief Investment Officer at IDFC Alternatives commented that "GMR Energy has been our 4th investment with the GMR group in the past 10 years. This step is a clear demonstration of how the investors and GMR worked together to forge a win-win solution by being considerate of partnership obligations, in a very difficult and challenging external environment for the power sector. We look forward to a successful IPO of GEL in near future"
PSU OMCs edged higher. BPCL (up 0.96%) and Indian Oil Corporation (up 0.35%) gained. HPCL shed 0.37%.
ICRA rose by maximum permissible 20% upper circuit at Rs 1,913, also its record high, after the company announced after market hours on Friday, 21 February 2014, a conditional open offer has been announced by Moody's Singapore Pte along with Moody's Investment Company India and Moody's Corporation as persons acting in concert (PAC) with the acquirer Moody's Singapore Pte for acquisition of up to 26.5 lakh shares representing 26.5% of the total fully diluted voting equity share capital of ICRA at an offer price of Rs 2000 per share. This offer is a conditional offer and is subject to a minimum level of acceptance of 21.49 lakh shares representing 21.5% of the voting share capital of ICRA. If the number of shares tendered in terms of the offer is less than 21.49 lakh shares, the acquirer will not accept any shares tendered.
The offer is being made to the shareholders of ICRA as a result of the decision/intention of the acquirer to increase the shareholding of the acquirer and the PAC in ICRA by way of acquisition of upto 26.5% of the voting share capital, which together with the present shareholding of the acquirer and the PAC in ICRA, would result in them holding up to 55.009% of the voting share capital which is more than the 5% creeping acquisition limit available to the acquirer under Regulation 3(2) of the takeover regulations. This offer is conditional on the acquirer acquiring atleast 21.5% of the voting share capital (which together with the present shareholding of the acquirer and the PAC in ICRA, would result in the acquirer and the PAC holding at least 50.00001% of the voting share capital) which will make the acquirer along with the PAC the majority shareholders of ICRA and consequently in control of the company.
The offer price of Rs 2,000 per share represented a premium of 25.45% over the closing price of Rs 1,594.20 on Friday, 21 February 2014.
Shares of Credit Analysis and Research (CARE) tumbled after the company said that IDBI Bank has informed the company that no bid was found acceptable to the selling shareholders for divesting their stake in CARE and all the bids have been rejected. The stock lost 8.16%.
Infosys fell 0.03%. Infosys on Saturday, 22 February 2014, announced that it has commenced work on its new campus in Mohali, Punjab. The new campus at SAS Nagar, Mohali, will be spread over 50 acres of land allocated by the Government of Punjab and will see construction undertaken in phases.
In the first phase of construction, the company will make an investment of Rs 425 crore to create a built-up area of 6.5 lakh sq. ft. to seat 5,000 software professionals. Phase I of this state-of-the-art facility is likely to be completed in the next 24 months.
Mr. N. R. Narayana Murthy, Founder and Executive Chairman of the Board, Infosys said: "The State Government of Punjab has done a commendable job in developing Mohali as an investment destination with its new industrial policy and good infrastructure facilities. We have been successful in Chandigarh and are eager to tap into the talent pool in the region. We are very grateful to the State Government of Punjab for extending their proactive support as we expand our operations in Mohali."
Tech Mahindra slipped 0.91%. The company after market hours announced the launch of its Near Field Communication (NFC) test lab in Bangalore, India. The NFC testing and consulting capabilities in the lab will cater to the fast-growing needs of chipset manufacturers, OEMs, services providers, acquires and issuers from the banking industry, Tech Mahindra said in a statement.
JSW Steel dropped 0.48%. JSW Steel after market hours on Friday, 21 February 2014, said that subject to customary closing conditions and third party consents, the company intends to acquire 26% equity in Vallabh Tinplate (VTPL) immediately and shall increase its equity stake in VTPL to 50% in due course. The total investment to acquire 50% equity stake in VTPL is estimated to be a maximum of Rs 46 crore depending upon financial performance of VTPL. Accordingly JSW Steel has executed a legally binding Share Purchase Agreement and Shareholders Agreement with the shareholders of VTPL. JSW Steel will have representation in the Board of VTPL proportionate to its equity holding with a right to appoint certain key managerial personnel. This acquisition marks JSW Steel's entry into growing Tinplate business in India, the company said.
VTPL is currently operating a 60,000 MT per annum tinplate manufacturing facility in Beopror Village, Rajpura, Patiala District in the State of Punjab in India. VTPL is owned by Vardhaman Industries (VIL) along with its promoters.
JSW Steel said that investment in Tinplate business was made in line with the company's strategic goal to enhance the share of value added products segment in the overall product basket to about 40%.
Aditya Birla Nuvo rose 1.03%. Aditya Birla Nuvo during market hours today, 24 February 2014, said that the maintenance shutdown of the Urea Plant at Jagdishpur (UP) will commence from 26 February 2014 instead of first week of March 2014 as informed on 11 February 2014. The maintenance shutdown will be for a period of around 35 days.
Tyre stocks rose as rubber futures in Tokyo and Shanghai sank today, 24 February 2014, as concern grew that property prices in China will retreat, weakening raw-material demand from the largest consumer. Natural rubber is a key raw material in tyre making.
Apollo Tyres rose 1.05% to Rs 125.70 after hitting record high of Rs 126.30 in intraday trade.
Among other tyre stocks, JK Tyre & Industries (up 0.4%), MRF (up 0.38%) and Goodyear India (up 2.37%) gained.
CEAT dropped after the company said there was a major fire at the ram materials store of the company's plant at Bhandup, Mumbai on Sunday, 23 February 2014. The stock lost 0.43% to Rs 278.35. The scrip hit high of Rs 285.90 and low of Rs 266. The company said during market hours that company's plant at Bhandup, Mumbai had an incident of fire at its raw material store on the evening of Sunday, 23 February 2014. The company is in the process of ascertaining the cause of the fire and also the extent of loss. The fire was contained with prompt action of the fire department. As such, there has been no loss of life and damage to the main plant and machinery, CEAT said. While the manufacturing operations have been temporarily suspended at the Bhandup plant, the company is confident to resume the production at the earliest, CEAT said.
In the foreign exchange market, the rupee reversed initial losses against the dollar as equities rose. The partially convertible rupee was hovering at 62.06, compared with its close of 62.12/13 on Friday, 21 February 2014.
Government bond prices dropped after Reserve Bank of India Governor Raghuram Rajan on Sunday, 23 February 2014, warned that inflation remains the biggest threat to economic growth. The yield on 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.885%, higher than its close of 8.7954% on Friday, 21 February 2014. Bond yield and bond prices move in opposite direction.
Rajan said reining in price gains is the Reserve Bank of India's number one challenge and action will be data dependent. "Even at this point our challenge really is to bring inflation down, because inflation is hurting growth. As inflation comes down, we will get much more possibilities for growth," Rajan said in Sydney in an interview to a news agency. Rajan, who last month warned of a breakdown in international monetary policy cooperation, said there was "widespread agreement" that advanced economies should worry about spillover effects of central bank actions.
Finance Minister P. Chidambaram last week said that RBI must strike a balance between price stability and growth, while adding that the elected government must determine the pace of growth and policies that help the economy expand.
The Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Citing price pressures, the Reserve Bank of India raised its key lending rates by 25 basis points after Third Quarter Review of Monetary Policy for 2013-14 on 28 January 2014.
European stocks edged lower in choppy trade on Monday, 24 February 2014. Key benchmark indices in Germany and UK were down 0.16% to 0.4%. France's CAC 40 rose 0.01%.
German business confidence improved more-than-expected this month to hit the highest level since July 2011, industry data showed on Monday. In a report, the German research institute, Ifo said its Business Climate Index rose to a seasonally adjusted 111.3 in February, up from a reading of 110.6 in January. The Current Assessment Index rose to 114.4 this month, up from 112.4 in January. The Business Expectations Index, which measures attitudes toward business prospects over the next six months, dipped to 108.3 this month from 108.9 in January.
The monthly index is based on a survey of around 7,000 German firms in the manufacturing, construction, wholesale and retail sectors.
Italian Prime Minister Matteo Renzi faces his first confidence vote in parliament today, 24 February 2014, since taking office last week. Renzi will address the Senate in Rome to introduce his 16-member cabinet and outline his strategy for governance.
In Ukraine, lawmakers on Sunday, 23 Febraury 2014, gave presidential powers to parliament speaker Oleksandr Turchynov, after ousting Viktor Yanukovych from the role as violence amid anti-government protests killed at least 82 people last week. The new regime issued an arrest warrant for Yanukovych. The US, Europe and the UK have said they would help with financial aid when a new cabinet is formed.
Asian stocks edged lower on Monday, 24 February 2014, amid speculation that reduced lending to the property industry will curb growth in the world's second-largest economy after a Chinese state-owned newspaper said some Chinese banks curbed loans to property developers. Key benchmark indices in Japan, Indonesia, Taiwan, China, Hong Kong and South Korea fell by 0.19% to 1.75%. In Singapore, the Straits Times index rose 0.19%
Industrial Bank Co. and other unidentified banks have curbed lending to the property sector and related industries such as steel and cement, Shanghai Securities News reported as China said new home prices rose in 69 of 70 cities last month from a year before. But the growth in new-home prices in China's first-tier cities slowed in January, National Bureau of Statistics data today showed.
Trading in US index futures indicated a flat opening of US stocks on Monday, 24 February 2014. US stocks edged lower in choppy trade on Friday, 21 February 2014, after the latest data showed existing-home sales in January showed a bigger-than-expected decline. In other economic news on Friday, Dallas Federal Reserve President Richard Fisher said the central bank should continue to taper its bond-buying program that's boosted stocks.
Richmond Fed President Jeffrey Lacker on Friday, 21 February 2014, said the 2008 Federal Open Market Committee transcripts released earlier in the day show "me and several other consumers of economic research grappling with some very difficult policy decisions." In prepared comments at Arizona State, he said there wasn't enough discussion during the crisis about specific models of banking and financial markets that there could have been, and there wasn't enough discussion about long-term consequences. Lacker said he still opposes the Fed's credit market interventions and said he remains "deeply skeptical about the advisability of those actions." Speaking of the market for asset-backed commercial paper, he said markets were responding in a plausibly efficient manner to significant revisions in expectations about the underlying economic fundamentals. Lacker also said the Fed's emergency lending program simply reallocated credit and was not like the "lender of last resort" that Henry Thornton and Walter Bagehot wrote about in the 1800s.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 18-19 March 2014. After a monetary policy review, the FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion.
Finance leaders from the world's biggest economies leaned on central banks and governments to help spur growth, reverting to the global economy's playbook of recent years, in an effort to safeguard a fragile recovery. Group of 20 officials ended their two-day summit on Sunday, 23 February 2014, saying they would look to boost world growth by more than $2 trillion over the next few years under a strategy crafted by the International Monetary Fund.
Under the G-20 plan, advanced economies would continue with their easy-money policies while emerging markets would seek to restructure their economies and tame inflation. In addition, governments everywhere would be expected to channel private-sector finance into new infrastructure projects.
The G-20's final communiquhighlights agreement among central banks to communicate their stimulus-exit strategies clearly and in a timely fashion. The communiquwarned that the global economy faces a period of potential "excessive volatility" harmful to growth as countries adjust their economic policies. "We do not want any surprises," Joe Hockey, Australia's treasurer and G-20 host, said at the conclusion of the summit on Sunday.
Powered by Capital Market - Live News