Shares of interest rate sensitive sectors such as banks, automobile and real estate will be in focus ahead of the Reserve Bank of India (RBI)'s monetary policy review due today, 3 February 2015. The RBI surprised financial markets by announcing a cut in its main lending rate viz. the repo rate by 25 basis points in an unscheduled monetary policy review on 15 January 2015, citing easing of inflationary pressures in the economy. The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India rose to 5% in December 2014 from 4.4% in November 2014. Over the long term, the RBI aims to restrict consumer price inflation to 4%, within a two-per-cent band.
Reliance Industries (RIL) has applied for payments banking license. RIL will be the promoter and State Bank of India (SBI) will be the joint venture partner with equity investment of upto 30%, RIL and State Bank of India (SBI) jointly announced after market hours today, 2 February 2015. The payments bank will leverage SBI's nationwide distribution network and risk management capabilities alongwith the substantial investments made by RIL in its retail and telecom businesses, the two companies said in a press release. It will deploy state-of-the-art technology, build scalable infrastructure and create extensive branch and business correspondent network in order to provide last-mile access and intuitive user experience to all sections of society, the press release added. Besides promoting financial inclusion by providing banking and transaction services to unbanked, underbanked and small businesses, the partners see formation of the payments bank as an opportunity to lead and co-create an eco-system to provide accessible, simple and affordable banking solutions, digitize payments and act as catalyst towards a cashless society and democratise banking and payment services through massive adoption and low transaction costs, the joint press release indicated.
Indian Oil Corporation (IOC)'s board of directors at its meeting held on 29 January 2015 approved two projects. The first project involves laying of Paradip-Hyderabad Product Pipeline. The product pipeline is proposed for evacuation of the products from the upcoming Paradip Refinery to storage depots in Andhra Pradesh and Telangana. The pipeline having a length of 1150 kms would have a capacity of 4.5 MMTPA. The pipeline with allied facilities is estimated to cost Rs 2789 crore and would be completed in a period of 36 months after receipt of statutory clearances, IOC said. The second project involves construction of 0.6 MMTPA LPG Import Facility at Paradip and augmentation of Paradip-Haldia-Durgapur LPG Pipeline. In order to meet the deficit of LPG supply in eastern sector, the Corporation would construct 0.6 MMTPA LPG Import facility at Paradip at an estimated cost of Rs. 690 crore, IOC said. In addition, the existing Paradip-Haldia-Durgapur LPG Pipeline would be augmented and extended to Patna and Muzaffarpur to ensure smooth supply of LPG in the region. The pipeline augmentation and extension is estimated to cost Rs 1823 crore. The project would be completed within 36 months from the date of statutory approvals, the company said.
Hero MotoCorp reported 0.4% fall in sales to 5.58 lakh units in January 2015 over January 2014. The despatches were severely impacted during the two-day long transporters' strike during January 2015, Hero MotoCorp said.
HDFC Bank is reportedly set to raise Rs 10000 crore sometime this week through a combination of qualified institutional placements (QIPs) in the domestic market and a follow-on offering of American Depository Receipts (ADRs) in the US.
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ACC, Britannia Industries, Crompton Greaves, Hero MotoCorp, Jindal Steel & Power, Lupin, Marico, NHPC, Punjab National Bank, Shree Cement and TVS Motor Company will unveil their October-December 2014 results today, 3 February 2015.
NTPC after market hours yesterday, 2 February 2015 in a clarification with regard to news item titled "NTPC Shortlists GVK, Essae, Avantha Plants for Stake Buy" said that the news item is media speculation based on the companies who applied against the Expression of Interest issued by NTPC in early 2014, which is in process. It is difficult for NTPC to comment on genesis of such information, the company said.
Canara Bank after market hours yesterday, 2 February 2015 said that as per the powers delegated by the Board of the bank, the Bond Committee, during the course of its meeting held on 2 February 2015, decided to raise additional Tier- I instruments amounting to Rs 1500 crore through issue of BASEL-III complaint additional Tier-I perpetual bonds by way of private placement.
IIFL Holdings said that the company has submitted an application to Reserve Bank of India (RBI) for a license for setting up Small Finance Bank, pursuant to the RBI Guidelines for Licensing of Small Finance Banks in the Private Sector and the approval of the Board of Directors of the company
Shanthi Gears' net profit fell 18.61% to Rs 3.76 crore on 3.29% rise in total income from operations (net) to Rs 42.98 crore in Q3 December 2014 over Q3 December 2013.
Shanthi Gears said that the Tamil Nadu Generation and Distribution Corporation through its Executive Engineer disconnected the supply power to the Foundry unit of the Company on 31 January 2015 based on a direction from the Tamil Nadu Pollution Control Board. The company is seeking legal remedy to restore the power supply since the company is in compliance with all relevant pollution control laws and regulations, Shanthi Gears said.
Indian Metals & Ferro Alloys said that the mining activity at the company's Mahagiri Chromite Mines has been suspended with effect from 1 February 2015 upon expiry of environment clearance. The company have already completed safety zone diversion which was a pre-condition for extension of environment clearance. The matter is being taken up with the Ministry of Environment & Forest, Govt. of India and the company expect environment clearance co-terminus with the lease to be approved shortly. Adequate stock of chrome ore is available at plant sites and the company does not anticipate any production disruption, Indian Metals & Ferro Alloys said.
Omkar Speciality Chemicals' net profit rose 46.1% to Rs 4.69 crore on 22.05% rise in total income from operations (net) to Rs 59.11 crore in Q3 December 2014 over Q3 December 2013.
Bayer CropScience's net profit rose 41.02% to Rs 55 crore on 7.59% rise in total income to Rs 729.30 crore in Q3 December 2014 over Q3 December 2013.
Future Consumer Enterprise said that the Hon'ble High Court of Judicature at Bombay, has by an order passed on 30 January 2015, sanctioned the Scheme of Amalgamation of Future Agrovet with Future Consumer Enterprise and their respective Shareholders.
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