The market may open slightly higher tracking firmness in Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 16.50 points at the opening bell. The stock market remained closed on Tuesday, 8 April 2014, on account of Ram Navami.
Tata Steel said that Steel & Tube Holdings of New Zealand has agreed to acquire Tata Steel International (Australasia) (TSIAL) on 14 April 2014 for a cash consideration of NZ$ 27.5 million. TSIAL, based in New Zealand, is a distribution business supplying stainless steel, engineering steels and composite floor decks to the New Zealand and Pacific Island markets. The company made announcement on Tuesday, 8 April 2014.
JSW Steel said it acquired 26% equity stake in Vallabh Tinplate (VTPL) on 7 April 2014. Earlier on 21 February 2014, the company had intimated that it intended to acquire 26% equity stake in VTPL and increase it to 50% in due course. The company made announcement on Tuesday, 8 April 2014.
DLF after market hours on Monday, 7 April 2014 in a clarification to the exchange regarding news item titled "DLF slapped Rs 2.4 crore penalty by competition watchdog" said that the Competition Commission of India (CCI) had passed order charging a penalty of Rs 2.4 crore against the company in August 2011 based on complaints filed by certain alleged apartment owners association. The Competition Appellate Tribunal (COMPAT) vide its order dated 9 November 2011 granted stay against the orders of CCI imposing penalty and have further ordered that direction of CCI for modification of the terms of agreement shall remain in abeyance.
DLF said that the current order appears to be a sub-set of ongoing cases. The company is perusing the order and seeking counsel's advice including but not limited to appealing against the above, DLF said in its clarification.
ALSTOM India (AIL) said it has received a letter from Alstom Finance B.V. dated 4 April 2014 requesting the board of directors to consider the proposal for disposal by the company of its auxiliary components business to an Indian legal entity to be specified by Triton, as a going concern on a slump-sale basis, subject to receipt of all relevant corporate consents and in accordance with applicable laws.
This activity is part of the non-core asset disposal programme, announced by Alstom, France in November 2013. The auxiliary components business proposed to be sold is part of the steam segment within thermal power and is active both in the new equipment market and aftermarket services across three product lines: air preheaters and gas-gas heaters for thermal power plants, heat transfer solutions for a variety of petrochemical and industrial processes, and grinding mills for diversified industrial applications, AIL said in a statement.
Alstom Finance B.V. has requested the company to consider the proposal favourably and commence the requisite process under Indian law including determination of the fair valuation of the auxiliary components business/undertaking and obtaining relevant consents to implement the aforesaid proposal, AIL said.
Ramco Systems will be watched as Schneider Electric, a global specialist in energy management, has entered into a strategic partnership with Ramco Systems, an enterprise software product company. The partnership will see Ramco's Advanced Process Optimization software, OPTIMA, become an important part of Schneider Electrics solutions for the cement industry and strategically help explore business opportunities.
With cement manufacturers focusing their efforts on reducing energy and emissions, improving overall performance and managing consistent product quality grade, plant operators are looking for solutions that stabilize the production process and maintain the optimal operation point for minimal effect on the environment. Schneider Electric's strategic pannership with Ramco will deliver this much required solution, with a specific focus on optimization of kiln and mill operations, to its cement customers. The solution will support increased production volumes, promote the ease and uptake of alternative fuels and support human operators to make the best decisions for changing operating conditions, Ramco Systems said in a statement.
Mr. Diego Areces, Mining, Minerals and Metals Solution President, Schneider Electric said, "Schnelder Electric's solutions for the Cement industry focuses on two key areas of importance to our customers - maximizing production and quality across the supply chain and minimizing their energy consumption and emissions. By integrating Ramco's optimization offering, we can provide our customers with a complete solution which supports their complex operational challenges. The combined offer of process control, expert system and energy management allows the deployment of a unique optimization strategy. This strategy will ensure optimum consumption of resources, best use of assets, maintain quality of product, and stabilize processes while building an environmentally sustainable business."
Mr. Virender Aggarwal, CEO, Ramco Systems, said, "It is a moment of great pride as a global multinational like Schneider Electric has chosen our advanced process control optimization solution, OPTIMA, to integrate with its suite of offerings to address the global market. lt is an endorsement of the capabilities that we have built to address the needs of the process manufacturing industry. Schneider Electric through its wide network of operations will help explore business opportunities for Ramco OPTIMA in the Cement industry. We look forward to a mutually successful engagement with Schneider Electric."
OPTIMA is an advanced process optimization solution that has been designed to improve plant productivity and efficiency and leverages technologies like fuzzy logic, regression analysis and artificial intelligence techniques to offer the best in class optimization solutions.
Piramal Enterprises on Tuesday, 8 April 2014 in a clarification to the exchange regarding news item titled "Piramal Enterprises seeks to sell diagnostic solution business" said that as a fast growing company, Piramal Enterprises explores various business and strategic initiatives from time to time, keeping in mind its business focus, strategic interests and the economic environment, amongst other factors. Piramal Enterprises said that it may be relevant to note that the diagnostic solutions business (which is known as the Lab Diagnostics & Point of Care (LDPOC) Business) comprises a small portion (about 1%) of the company's consolidated business. The company will keep the stock exchanges informed of any definitive developments in this regard, Piramal Enterprises said.
Jaihind Projects has bagged order worth Rs 114.83 crore from Indian Oil Corporation for laying of mainline for Paradip-Haldia-Durgapur LPG Pipeline Project (PHDPL)-Group-A.
Suzlon Energy will be watched after its wholly-owned subsidiary, Senvion SE, signed an agreement in late March with a consortium of banks headed by BayernLB, Commerzbank Aktiengesellschaft and Deutsche Bank AG for a syndicated working capital facilities of Euro 850 million foi the period of 3 years. This move enables Senvion SE to secure follow-on financing early for the credit facilities of Euro 750 miliion agreed in May 2012 for the period up to August 2014.
In total, 14 internationai hanks and credit insurance companies are participating in this financing with a term of three years, syndication of which was significantly oversubscribed. Six globally reputed financial institutions and banks with excellent ratings have been added to the banks consortium. The financing structure remains largely unchanged and primarily consists of non-fund based (guarantee) facilities.
Marcus A. Wassenberg, CFO of Senvion said: "This enhanced facility with long tenure is of significance importance for the growth of the company and the oversubscription of the same with new additions to the consortium clearly reflects strong confidence of global banks and credit insurance companies in business fundamentals, company management and strategy of the company."
ING Vysya Bank announced after market hours on Monday, 7 April 2014, that pension, gratuity and leave encashment operate as defined benefit schemes for the benefit of a portion of the bank's employees. The calculation of the bank's obligation under these plans is performed by a qualified actuary using the projected unit credit method. One of the assumptions used by the actuary for calculating the bank's obligation under these plans is the estimated salary escalation rate (SER). For ING Vysya Bank, the weighted average increase in pay per annum for IBA employees (to whom the defined benefit pension scheme applies) is only 2.25%, as recruitment under IBA category has significantly slowed down since 2002 and 63.5% of the IBA employees have reached their maximum scales of pay with eligibility for only stagnated increments once in 2 or 3 years depending on their cadre or scale, the bank said in a statement. However, for the purpose of actuarial valuation, from the year ended 31 March 2013, the bank has increased its estimated SER for employees under the IBA category to 3.5%, in line with the Indian Bank's Association's (IBA) guidelines which required the SER to be adjusted further to take into account future wage revisions, the bank said.
The bank has since a communication from the Reserve Bank of India (RBI) dated 24 March 2014, requiring the bank to adopt the IBA mentioned SER of 5-5.5%, to be further adjusted upwards to take into account future wage revisions, before finalizing the results for the year ended 31 March 2014. ING Vysya Bank said it has approached RBI to permit the bank to adjust, the impact of increase in estimated SER from 3.5% to 5%, along with adjustments to further take into account future wage revisions, on bank's obligation under the defined benefit retiral plans, against the opening reserves. However, in the eventuality of RBI not acceding to the bank's request, the impact of this adjustment, which is estimated to be around Rs 60 crore pre-tax, will reflect in the bank's earnings for the quarter and year ended 31 March 2014, ING Vysya Bank said.
IFCI on Tuesday, 8 April 2014 in a clarification to the exchange regarding news item titled "IFCI plans to sell its factoring biz said that IFCI Factors is an unlisted non-material subsidiary of IFCI and in this regard, we would like to state that no such news have been officially disseminated from IFCI. Though the Board has been exploring such possibilities, no decision has been taken so far. In future, if IFCI decides to go ahead with divestment of its stake in IFCI Factors Ltd., Stock Exchanges would be informed of the matter".
Sundaram Brake Linings on Tuesday, 8 April 2014 said that ICRA Limited vide its letter dated March 31, 2014, has reaffirmed the [ICRA] A- (pronounced ICRA A minus) rating outstanding on the outstanding Rs 50 crore fund based facilities of the company and has stated that the outlook on the long-term is stable. ICRA has also reaffirmed the short-term rating of [ICRA] A2+ (pronounced ICRA A two plus) for the Rs 35 crore fund based Export Packing Credit facilities and the Rs 3 crore non-fund based facilities of the company.
Gulf Oil Corporation after market hours on Monday, 7 April 2014 said that the company's promoter, Gulf Oil International (Mauritius) Inc. (GOIMI) has recently acquired additional shares to the extent of 4.99%, increasing their shareholding in the company to 54.96%. With this, the company becomes subsidiary of GOIMI, Gulf Oil Corporation said.
Schneider Electric Infrastructure after market hours on Monday, 7 April 2014 said that the company's Board of Directors has approved through a circular resolution the closure of company's unit at Naini and to sell / dispose off or to shift to another manufacturing location/s of the company, the assets belonging to Naini unit on such terms and conditions, at such time(s) and in such form and manner as the Board may think fit.
Atul after market hours on Monday, 7 April 2014 said that the company's wholly owned subsidiary Atul Europe has sold its investment in all equity shares (50% stake) held in a hitherto JV Company, M Dohmen SA on 3 April 2014.
Sterling Tools after market hours on Monday, 7 April 2014 said that the Board of Directors vide their meeting held on Monday, 7 April 2014 to discuss the proposal of purchase of 100% shareholding of Haryana Ispat, a related entity, has recommended the said proposal for approval of shareholders though Postal Ballot.
IFB Agro Industries after market hours on Monday, 7 April 2014 said that the Board of Directors of the company at its meeting held on Monday, 7 April 2014, has approved purchase of all the business of Nurpur Gases.
State Bank of Travancore turns ex-dividend today, 9 April 2014, for an interim dividend of Rs 2.50 per share for the year ended March 2014. Before turning ex-dividend, the stock offered a dividend yield of 0.60% based on the closing price of Rs 414.30 on Monday, 7 April 2014.
The Reserve Bank of India (RBI) on Monday, 7 April 2014, said that with a view to further liberalising the existing facilities the RBI has decided to allow all resident individuals, firms and companies, who have actual or anticipated foreign exchange exposures to book foreign exchange forward contracts up to $250,000 on the basis of a simple declaration without any requirement of further documentation, the RBI said in a circular issued to Authorised Dealer Category-I (AD Category-I) banks. This is higher than the existing limit of $100,000. The existing facilities in terms of this circular for Small and Medium Enterprises (SMEs) having direct and/or indirect exposures to foreign exchange risk permitting them to book/cancel/roll over forward contracts without production of underlying documents to manage their exposures effectively subject to conditions specified therein shall remain unchanged, the RBI said.
The Securities and Exchange Board of India (Sebi) on Monday, 7 April 2014, partially reversed curbs on dollar-rupee forward contracts that were imposed last year after the rupee hit record low against the dollar. Sebi had doubled the margin requirement on the domestic dollar-rupee forward trades last year in a bid to arrest the steep decline of the rupee. The stock market regulator on Monday, 7 April 2014, asked stock exchanges and clearing corporations to restore the initial margins and extreme loss margin for dollar-rupee trades to pre 8 July 2013 levels from 15 April 2014.
A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. The 36 days long voting process began on Monday, 7 April 2014 and will finally conclude on 12 May 2014.Polling began for the lone parliamentary seat in Nagaland in the second phase of Lok Sabha elections today, 9 April 2014. The poll will decide the fate of Chief Minister Neiphiu Rio, who is the candidate from his Naga Peoples Front party. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on June 1 and the new House has to be constituted by May 31.
The next major trigger for the stock market is Q4 March 2014 and year ended 31 March 2014 (FY 2014) corporate earnings. Investors and analysts will closely watch the management commentary that would accompany the results to see if there is any revision in their future earnings forecast of the company for the year ending 31 March 2015 (FY 2015) and/or for the year ending 31 March 2016 (FY 2016). Indian companies will start reporting their Q4 and full year results from mid-April 2014. The result season will conclude in end-May 2014.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014.
High volatility was witnessed on the first trading session of the week on Monday, 7 April 2014 as key benchmark indices erased a lion's part of the intraday losses. With a small decline, the barometer index, the S&P BSE Sensex, reached its lowest closing level in more than a week. The 50-unit CNX Nifty registered miniscule gains for the day. The S&P BSE Sensex shed 16.05 points or 0.07% to settle at 22,343.45 on that day, its lowest closing level since 28 March 2014.
Foreign Institutional Investors (FIIs) bought shares worth a net Rs 703.71 crore on Monday, 7 April 2014, as per provisional data from the stock exchanges.
Asian stocks outside Japan rose on Wednesday as consumer companies advanced. Key benchmark indices in Hong Kong, Singapore, China, Taiwan and South Korea were up 0.18% to 1.03%. Japan's Nikkei Avergae fell 1.82%.
The Bank of Japan stuck to its existing monetary stimulus on Tuesday, confident that it did not need further support measures to beat chronic deflation - even as a sales tax hike clouds the economic outlook. The BOJ maintained its commitment to increasing base money, its key policy gauge, at an annual pace of 60-70 trillion yen. The central bank maintained its upbeat view on the economy, affirming its conviction that Japan is on track to meet its 2% inflation target by around April next year, signalling that no further easing was on its near-term horizon.
Stronger US growth this year and next will help the world economy withstand weaker recoveries in emerging markets including Brazil and Russia, the International Monetary Fund said in a report yesterday. The IMF predicted global growth of 3.6% this year, compared with a January estimate of 3.7%. Next year, the expansion will accelerate to 3.9%, unchanged from the prior forecast.
US stocks snapped three-day losing streak on Tuesday, 8 April 2014 on bargain-hunting as investors picked up stocks that had fallen the most in the slump over the previous three days.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 29-30 April 2014. The Federal Reserve on 19 March 2014 said after the conclusion of a monetary policy review that it will trim its monthly bond purchases by $10 billion to $55 billion. The Federal Reserve will end its bond-buying program before the end of the year with an interest-rate increase likely to follow in "around six months," Chair Janet Yellen said on 19 March 2014. Quarterly Fed forecasts on 19 March 2014 showed more officials predicting that the benchmark interest rate, now close to zero, will rise to at least 1% by the end of 2015 and 2.25% a year later.
In Europe, a monthly meeting of the Monetary Policy Committee of the Bank of England's (BoE) for monetary policy review is scheduled tomorrow, 10 April 2014.
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