The market is poised for higher opening on first trading day of the week today, 19 May 2014. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could surge 78 points at the opening bell. Asian stocks were mostly lower on Monday after data showed a spreading slowdown in China's housing market.
Reliance Industries (RIL) said its board has recommended the appointment of Nita M. Ambani, the Chairperson of Reliance Foundation, as a director on the board of RIL. She is being nominated to the board in place of Ramnik H. Ambani, who is retiring at the age of 90 years. Approval of the shareholders will be sought in the 40th annual general meeting (AGM) being held on 18 June 2014. The announcement was made after market hours on Friday, 16 May 2014.
HDFC Bank said its board will meet on 19 May 2014, to consider raising of capital and seeking appropriate enabling shareholder approvals for such capital raising at the ensuing Annual General Meeting to be held on 25 June 2014. The announcement was made after market hours on Friday, 16 May 2014.
Shares of Bank of Baroda may be in focus as the Reserve Bank of India on Friday, 16 May 2014 notified that the foreign share holding through foreign institutional investors (FIIs)/ non resident Indian (NRI)/ persons of Indian origin (PIO) in the bank has reached the trigger limit. Hence, further purchases of equity shares of the bank would be allowed only after obtaining prior approval of the Reserve Bank of India.
Foreign institutional investors (FIIs), non-resident Indians (NRIs), and persons of Indian origin (PIOs) are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS). Under this scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges in India.
The ceiling for overall investment for FIIs is 24% of the paid up capital of the Indian company and 10% for NRIs/PIOs. The limit is 20% of the paid up capital in the case of public sector banks, including the State Bank of India. In Bank of Baroda, 18% caution limit has been reached and further purchases by FIIs/NRIs/PIOs are allowed only with prior permission of RBI. RBI sets caution limit 2% below the overall investment limit.
Adani Enterprises' consolidated net profit spurted 501.08% to Rs 2847.82 crore on 38.89% growth in total income to Rs 16418.67 crore in Q4 March 2014 over Q4 March 2013. The bottom line in Q4 March 2014 was boosted by tax credit of Rs 1387.31 crore while there was a tax expense of Rs 237.59 crore in Q4 March 2013. The result was announced on Saturday, 17 May 2014.
Adani Enterprises' consolidated net profit surged 37.68% to Rs 2220.77 crore on 18.73% growth in total income to Rs 56225.86 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Adani Enterprises said that income from operations includes revenue recognized by one of the subsidiary companies i.e. Adani Power amounting to Rs 1843.12 crore towards the compensatory Tarrif comprising of lump sum compensation of Rs 829.75 crore till 31 March 2013 and Rs 1013.37 crore for the period from 1 April 2013 to 31 March 2014 vide order dated 21 February 2014 by Central Electricity Regulatory Commission (CERC) dated 21 February 2014. Haryana Discoms (Uttar Haryana Bijli Vidyut Nigam and Dakshin Haryana Bijli Vidyut Nigam) and GUVNL (Gujarata Urja Vikas Nigam) have filed appeals with the Appellate Tribunal for Electricity (APTEL) challenging the said order and to grant a stay on the enforcement of the order. APTEL has sought replies from the company and has set the next date of hearing on 22 May 2014. As of date, APTEL has neither granted the stay nor has passed an order setting aside the said CERC order. The Management has been legally advised that the CERC order is enforceable as on date and is in operation and that the subsidiary company has a fairly arguable case with respect to the appeals filed by the customers against the said order with APTEL, Adani Enterprises said.
On a consolidated basis, Oracle Financial Services Software's net profit rose 10% to Rs 311 crore on 2% increase in revenue to Rs 895 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Friday, 16 May 2014.
Consolidated net profit rose 26% to Rs 1359 crore on 8% rise in revenue to Rs 3741 crore in the year ended March 2014 (FY 2014) over the year ended March 2013 (FY 2013). Operating income rose 15% to Rs 1328 crore in FY 2014 over FY 2013.
The revenue and operating income from the products business was Rs 2900 crore, up 11% and Rs 1256 crore, up 18% respectively, while the revenue and operating income from the services business was Rs 740 crore, down 4% and Rs 152 crores, down 4%, respectively, in FY 2014 over FY 2013, Oracle Financial Services Software said in a statement.
Chet Kamat, managing director and chief executive officer for Oracle Financial Services Software, said, "We signed US$ 14.7 million of new license fees in the quarter; while we have a strong pipeline, new license fees for the year were down 18%. We are investing in the sales and marketing infrastructure and processes to grow our core banking and analytics deal flow."
Makarand Padalkar, chief financial officer for Oracle Financial Services Software, said, "We posted another solid operating performance with the operating margins for the year at 35%, a 2 percentage point improvement over operating margin in the fiscal year ended March 2013. Our focus on operational excellence has delivered strong operating metrics; the days of sales outstanding at the end of March 2014 were at 61 days as compared to 68 days at the end of March 2013."
Amtek Auto's board has decided to issue equity shares through a Qualified Institutional Placement (QIPs)/Global Depository Receipts/American Depository Receipt/other securities convertible into equity shares/such other equity-linked instruments.
SpiceJet after market hours on Friday, 16 May 2014 reported net loss of Rs 321.51 crore in Q4 March 2014, higher than net loss of Rs 185.71 crore in Q4 March 2013. Total income from operations rose 8.37% to Rs 1589.61 crore in Q4 March 2014 over Q4 March 2013.
SpiceJet reported net loss of Rs 1003.24 crore in the year ended 31 March 2014, higher than net loss of Rs 191.07 crore in the year ended 31 March 2013. Total income from operations rose 11.51% to Rs 6356.10 crore in the year ended 31 March 2014 over the year ended 31 March 2013.
SpiceJet said that the year ended 31 March 2014 was perhaps the most challenging period in Indian aviation history. The sharp depreciation of the Indian Rupee during the quarter ended 30 September 2013 was unprecedented. Given the fact that over 75% of any Indian airline's cost is influenced by the US Dollar, the effects of the exchange rates on a broad spectrum of cost heads were crippling. The net loss was due to slowing economy and softening demand in a market where capacity continued to be added by the industry, SpiceJet said.
On a positive note, SpiceJet's market stimulation and revenue management approach in the latest quarter helped it to increase year-over-year RASK despite adverse market conditions. Unit revenue (RASK or revenue per available seat kilometer) in the three month ended March 2014 was 5% higher, and unit cost (CASK) 12% higher, than comparable period last year. Normalized for exchange rate, the CASK would have been only 2% higher, SpiceJet said.
Market stimulation also resulted in SpiceJet gaining market share in March 2014 relative to previous month, despite 2% capacity reduction. SpiceJet expects the macroeconomic environment to significantly improve and demand to grow in year ending 31 March 2015. SpiceJet is well into the process of executing on a re-structuring and transformation plan to position it well as market conditions improve, and to take on the challenge of new entrants that are expected to enter the market.
Aptech turns ex-dividend today, 19 May 2014, for interim dividend of Rs 2.50 per share for the year ended 31 March 2014.
Hindustan Zinc turns ex-dividend today, 19 May 2014, for final dividend of Rs 1.90 per share for the year ended 31 March 2014.
Sundaram Clayton turns ex-dividend today, 19 May 2014, for third interim dividend of Rs 6.50 per share for the year ended 31 March 2014.
Coromandel International said after market hours on Friday, 16 May 2014, that the board of directors of the company has considered and approved 29 May 2014 as the record date for the purpose of allotment of shares of the company to the shareholders of Liberty Phosphate pursuant to the scheme of amalgamation approved by the High Court of Andhra Pradesh at Hyderabad and of Gujarat at Ahmedabad.
The scheme provides for amalgamation of Liberty Phosphate and Liberty Urvarak with the company. Liberty Urvarak is a wholly owned subsidiary of Coromandel. The appointed date under the scheme is 1 April 2014. Seven shares will be allotted of Coromandel for every 8 shares held in Liberty Phosphate.
Ashiana Housing announced after market hours on Friday, 16 May 2014, the launch of residential project "Ashiana Surbhi" located in Bhiwadi (Rajasthan). The entire project is spread across 5.65 acres of land with total saleable area of approximately 4.63 lakhs square feet (sq. ft.).
Archies said after market hours on Friday, 16 May 2014, that Mr. Vijayant Chhabra Executive Director of the company has resigned from the directorship of the company from 16 May 2014. Further the company has said that, the board of directors of the company in a meeting held on 16 May 2014 have appointed Mr. Vijayant Chhabra as Chief Executive Officer (CEO) of the company with immediate effect.
Puravankara Projects' consolidated net profit fell 67.33% to Rs 25.73 crore on 9.65% decline in total income from operations to Rs 374.82 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Friday, 16 May 2014.
Puravankara Projects' consolidated net profit declined 34.28% to Rs 159.97 crore on 5.16% growth in total income from operations to Rs 1310.19 crore in the year ended 31 March 2014 over the year ended 31 March 2013.
Ashish R Puravankara, Joint Managing Director, Puravankara Projects said, Financial year 2013-14 has seen a dedicated focus on increasing cash flows, reducing cost of debt and accelerating execution with 3.87 msft being delivered. The key strategy for financial year 2014-15 is to continue augmenting our cash flows through our new launches and to capitalise on demand for homes under the ready-to-move-in category.
Puravankara Projects said that with a focussed outlook towards project delivery and execution, the company's foray into newer construction technologies like precast, plasmolite and plaswall have further strengthened its quality and would shorten project cycle times.
Puravankara Projects said that with new launches of Purva Westend and Purva Palm Beach under the Puravankara brand have met with an excellent response with both having sold over 60% of the launched area.
The company's aggressive marketing efforts are yielding results by tapping into the demand for the ready-to-move-in category, as is evident from the consistent sales in this category over the last few quarters, Puravankara Projects said in a statement.
Puravankara Projects said that both the brands, Puravankara and Provident will see several new projects launched across varied geographies in FY 2014-15.
On the political front, results of 16th Lok Sabha elections declared on Friday, 16 May 2014 showed that Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) is all set to form the next government at the Centre. The NDA won 335 seats out of the total of 543 Lok Sabha seats. The Congress-led United Progressive Alliance (UPA) won 60 seats. Investors are hoping that the BJP-led government will be better at getting things done and more business-friendly than the Congress-party-led coalition government which was in power during the past ten years.
Addressing the country after NDA won the Lok Sabha polls with a thumping majority, Narendra Modi on Friday, 16 May 2014 promised to work for the nation and take everyone along for 'inclusive growth'. "Government is for the common man. It is time to not die but live for the nation," Modi said in this victory speech.
"There is no enemy in politics. I want to assure everyone that we will want to take everyone along," Modi said. "Irrespective of who is in the opposition, I want to take everyone along. To run the government and country we want to take everyone along," Modi emphasised in his speech.
Meanwhile, President Pranab Mukherjee on Sunday, 18 May 2014 dissolved the 15th Lok Sabha with immediate effect, completing a formality before the constitution of the new House. The outgoing Union Cabinet, in its last meeting on Saturday, 17 May 2014 under Prime Minister Manmohan Singh, had advised the President to dissolve the 15th Lok Sabha with immediate effect. The Election Commission will now be submitting the list of newly elected members of the 16th Lok Sabha to the President.
US President Barack Obama invited Narendra Modi to Washington in a phone call on Friday, 16 May 2014, to congratulate him on his victory in the country's elections, the White House said. "The President noted he looks forward to working closely with Mr. Modi to fulfill the extraordinary promise of the US-India strategic partnership, and they agreed to continue expanding and deepening the wide-ranging cooperation between our two democracies," the White House said in a statement. The White House didn't specify a time frame for Mr. Modi's visit but said it would take place at a mutually agreeable time. US Secretary of State John Kerry also extended his congratulations to Mr. Modi.
After Bharatiya Janata Party (BJP) led National Democratic Alliance's (NDA) landslide victory in Lok Sabha election, focus has shifted to those who will take up key posts in the next cabinet of the NDA government at the Centre. Along with the post of the Prime Minister, Narendra Modi may take charge of some key ministries, if party veterans like L.K Advani do not join his cabinet.
Modi is perceived as being more business-friendly and decisive by the business community. As chief minister for the fast-growing state of Gujarat, Modi has built a reputation for getting things done. While campaigning for the Lok Sabha elections, Modi pledged to reinvigorate the country's manufacturing sector, create more jobs and overhaul the country's inadequate infrastructure. Investors are hoping that the BJP-led government will be better at getting things done and more business-friendly than the Congress-party-led coalition government which was in power during the past ten years.
Investors are expecting measures for revival of the economy, business-friendly policies and good governance from the new government that comes to power after the elections. Investors expect policy measures from the new government to put India on a high-growth path on a sustainable basis.
The BJP in its Lok Sabha polls manifesto had promised more business-friendly policies when the party comes to power after elections. The BJP had said that measures for the revival of the economy are its priority if the party comes to power after elections. India's GDP growth has slowed to a decade low of below 5%. The GDP grew 4.7% in Q3 December 2013.
Global credit rating agency Standard & Poor's Ratings Services on Friday, 16 May 2014, said that the fiscal and economic reforms taken by India's new government in the next two to three months will have significant implications on India's sovereign credit rating. S&P's statement came after Narendra Modi-led Bharatiya Janata Party (BJP) routed the Congress-led United Progressive Alliance (UPA) across the nation, registering the biggest ever win for any single party since 1984 in Lok Sabha elections. Modi is likely to be sworn in as India's Prime Minister on Wednesday, 21 May 2014.
S&P said that the next government would need to regain fiscal prudence in a sustainable way, such as by implementing a goods and services tax to help stabilise government revenues. "What the next government says and does in the coming months is crucial to boosting confidence in the policy settings and the economy. If confidence rises, investment and consumption in India could strengthen, after being held back by the uncertainty surrounding the election," S&P credit analyst Takahira Ogawa was quoted as saying in the statement.
S&P is the only of the three major credit agencies to have India with a "negative outlook" for its "BBB-minus" rating, meaning any downgrade would send the country to below investment grade.
High volatility characterized trading as investors reacted to leads and results of Lok Sabha election that showed that Narendra Modi was on course to wrest the top job in the country as a saffron wave swept large swathes of India and leaving Congress in tatters. The S&P BSE Sensex garnered 216.14 points or 0.9% to settle at 24,121.74, a record closing high for the index.
Foreign institutional investors (FIIs) bought shares worth a net Rs 3634.82 crore on Friday, 16 May 2014, as per provisional data from the stock exchanges.
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, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.
Asian stocks were mostly lower on Monday after data showed a spreading slowdown in China's housing market. Key benchmark indices in South Korea, Taiwan and Hong Kong and China fell by 0.06% to 1.02%. Key benchmark indices in Singapore, Japan and Indonesia rose by 0.06% to 1.15%.
China's new-home prices rose in April in the fewest cities in 1-1/2 years as developers offered discounts and the economy slowed, prompting the easing of property curbs in some places. Prices last month climbed in 44 of the 70 cities tracked by the government compared with 56 cities in March. That was the fewest cities with price gains since October 2012, when increases were recorded in only 35 on a monthly basis.
US stock market closed higher on Friday, 16 May 2014 after an abrupt late-day reversal. Analysts attributed such a move to 'buying the dip' strategy that has been the theme in the past few months.
In economic data, construction on new US homes surged in April to the fastest pace in five months, with the volatile apartment category leading that jump, according to government data released Friday.
The preliminary May reading of the University of Michigan and Thomson Reuters's gauge of consumer sentiment fell unexpectedly to 81.8 from 84.1 in April.
The Federal Reserve releases minutes from the April 29-30 meeting of Federal Open Market Committee on Wednesday, 21 May 2014. The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 17-18 June 2014. The Fed on 30 April 2014 said after a monetary policy review that it will keep the benchmark interest-rate target at almost zero for a "considerable time" after its bond-buying program ends. The FOMC also reduced monthly debt purchases to $45 billion, its fourth straight $10 billion cut, and said further reductions are likely in "measured steps" if the economy continues to improve.
In Europe, the Monetary Policy Committee publishes minutes of its May 7-8 meeting on Wednesday, 21 May 2014, when it held the key interest rate at a record-low 0.5%.
Powered by Capital Market - Live News
