Shares of public sector oil marketing companies (PSU OMCs) will be in focus after petrol price was hiked by Rs 1.82 a litre, excluding local sales tax or VAT, with effect from midnight of Friday, 28 June 2013. Actual increase varies from city to city depending on local taxes. Petrol price in Delhi was hiked by Rs 2.19 per litre to Rs 68.58 as against Rs 66.39 earlier. In Mumbai, petrol price has been increased by Rs 2.30 to Rs 76.90 while in Kolkata rates went up from Rs 73.79 to Rs 76.10 per litre. In Chennai, prices were hiked by Rs 2.32 to Rs 71.72. The price hike was mainly due to depreciation of rupee against the dollar.
Tata Power Company will be in focus after Maharashtra Electricity Regulatory Commission (MERC), the electricity regulatory commission in Maharashtra, on Friday, 28 June 2013, approved 25% increase in average tariff for Tata Power's residential consumers for the year ending 31 March 2014 (FY 2014), which will be effective from 1 July 2013. MERC has approved the multi-year tariff plan till 2016 of Tata Power and allowed an increase of 25% for FY 2014, 15% for FY 2015 and 11% for FY 2016 for residential consumers. For commercial and industrial consumers, the tariff hike would range from 22% to 39% in the current financial year, 9% to 13% in FY 2015, and 4% to 8% in FY 2016.
Infrastructure sector stocks will be in focus after Prime Minister Dr. Manmohan Singh on Friday, 28 June 2013, held a meeting with the ministries of power, coal, railways, roads, shipping and civil aviation to set up targets for the current fiscal year. The Prime Minister highlighted the need to ramp up investment in infrastructure to revive investor sentiment, a statement from the Prime Minister's Office (PMO) said. For this purpose, a target of rolling out public-private partnership (PPP) projects of at least Rs 1 lakh crore in the next six months has been set, the PMO said.
FMCG and agri-sector stocks will be in focus after the latest data showed a pick-up in sowing of kharif crops. The Centre on Friday, 28 June 2013, said that as per reports received from state governments, the total sown area in the country stands at 250.99 lakh hectare (lh) as on 28 June 2013, compared with 135.87 lh at this time last year.
Reliance Infrastructure (RInfra) through its special purpose vehicle (SPV) Delhi Airport Metro Express (DAMEPL) has intimated the take over of the line by Delhi Metro Railway Corporation (DMRC) with effect from 1 July 2013. The announcement was made before market hours today, 1 July 2013.
RInfra said that due to the defects in the civil structure designed and built by DMRC, DAMEPL after deliberations and consultations with all stakeholders was forced to suspend the operations of the project, with effect from 8 July 2012, in paramount interest of safety of commuters and public at large.
In view of the fact that DMRC failed to cure the said defects within the period prescribed under the concession agreement, and on account of material breach and DMRC event of default having arisen as a result thereof, DAMEPL terminated the concession agreement vide its termination notice dated 8 October 2012.
RInfra said it has requested DMRC for payment of termination payment; as per the terms of the concession agreement, for the termination due to DMRC's event of default, DMRC is to pay the termination payment equivalent to 130% of the adjusted equity and 100% of the debt-due. The total investment of RInfra towards Project capital expenditure is to the tune of Rs 2800 crore.
L&T Finance Holdings' board has approved the proposal to apply to the Reserve Bank of India (RBl) for obtaining a licence to set up a bank.
Aditya Birla Nuvo said it has submitted its application to the RBI on 28 June 2013 for obtaining a licence to set up a bank.
Aditya Birla Nuvo said that at presently, Aditya Birla Financial Services (ABFSPL), a wholly-owned subsidiary of the company, holds all entities engaged in financial services with the exception of life insurance i.e. Birla Sun Life Insurance Company (BSLI), which is directly held by the company. It is proposed that ABFSPL will be the non-operative financial holding company (NOFHC) as stipulated in the RBI guidelines. ABFSPL will be holding the entire financial services businesses. The transfer of BSLI under ABFSPL would be subject to regulatory approvals.
In terms of RBI guidelines, Aditya Birla Finance, a wholly-owned subsidiary of ABFSPL, the existing non-banking finance company, will be converted into a bank. The company and its subsidiaries will comply with the RBI guidelines, Aditya Birla Nuvo said in a statement.
Videocon Industries after market hours on Friday, 28 June 2013, said that the company's board of directors has accorded approval to the proposal of the group for filing an application with Reserve Bank of India (RBI) for opening a bank.
Applicants seeking licenses to set up banks are required to submit their applications to the RBI by 1 July 2013. Entities in the private and public sector and NBFCs will be eligible to set up a bank through a wholly-owned Non-Operative Financial Holding Company (NOFHC). However, they need to have sound credentials, integrity and financials with a successful track record of 10 years.
Hindustan Motors (HML) after market hours on Friday, 28 June 2013, said it has on 28 June 2013, signed a memorandum of understanding (MoU) with Isuzu Motors India, a subsidiary of Isuzu Motors, Japan for contract manufacturing of Isuzu SUVs and pickup trucks in India. The components for producing these vehicles will be imported by Isuzu Motors from Thailand and assembled in HML's factory at Thiruvallur near Chennai in Tamil Nadu. Isuzu Motors India is a subsidiary of Isuzu Motors, Japan. Known globally for its expertise in diesel engines and for the manufacture of tough and durable vehicles, Isuzu Motors will supply the MU7 sports utility vehicle and the DMAX pickup truck in India.
The board of Timbor Home approved to sell the land and building of the company situated at Umreth in Gujarat. The board also approved to change the name of the company to IKI TIMBOR. Further, the board also approved to make preferential allotment of up to 15% of the paid up share capital of the company.
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