Sagar Cements gains acquisition plan of grinding unit of Toshali Cements

Business standard has Published by Sagar Cements gains acquisition plan of grinding unit of Toshali Cements The stock rallied 6% to Rs 710 on the BSE. Sagar Cements has rallied 6% to Rs 710 on the BSE after the company on Wednesday announced the complete acquisition of grinding unit owned by M/s Toshali Cements for Rs 60 crore.

“The board has accorded its ‘in principle’ approval for the acquisition of the entire assets in the grinding unit of 181,500 tons per annum capacity in Bayyavaram, Vizag district, Andhra Pradesh, owned by M/s Toshali Cements, Hyderabad, at a cost of around Rs 60 crore (including transaction cost),” Sagar Cements said in a BSE filing.

Post acquisition, the company proposes to increase the capacity of the said unit to 300,000 tons per annum by optimizing the equipment already available with the company by infusion of funds to the extent of around Rs 6 crore.

The acquisition will enable the company to save its logistic cost and to introduce slag cement to cater markets in Visakhapatnam, Viziangaram, Srikakulam and parts of Orissa, it added.

The transaction is expected to be completed by September 30, 2016, subject to regulatory approvals as may be required by the company to commence its grinding operations in the said unit.

At 09:45 AM, the stock was up 5% at Rs 706 on the BSE. A combined 49,247 shares changed hands on the counter on the BSE and NSE so far.

PC shipments dip 7.4% in Q1, 2016

Business standard has published by PC shipments dip 7.4% in Q1, 2016 According to Gartner, personal computer (PC) shipments in India totalled nearly two million units in the first quarter of 2016, a 7.4 per cent decrease over the corresponding period in 2015. “Consumers accounted for 45 per cent of the total PC sales, down from 48 per cent in the first quarter of 2015,” said Vishal Tripathi, research director at Gartner.

“There was a decline in both the enterprise and consumer segments in buying. With the first quarter being the end of the financial year for some companies, there were expectations that enterprises would exhaust their budgets. However, it did not have much of an impact on the market, and it continues to face a challenging time.”

White boxes (including parallel imports), which accounted for 28 per cent of the overall desktop market, declined 6 per cent. Mobile PCs declined by 13 per cent year-on-year mainly due to lack of enthusiasm in consumer buying. Gartner analysts believe the first quarter of 2016 saw an excess inventory which was carried forward from the fourth quarter of 2015 and believe this to be carried into the second quarter of 2016 as well.

HP was the leader in PC shipments in India due to a strong presence in channels and online consumer purchases.

Ashok Leyland impaired Rs 558 crore in 2015-16

Business standard has Published by Ashok Leyland impaired Rs 558 crore in 2015-16 Commercial vehicle (CV) major Ashok Leyland has said it made an impairment charge on its balance sheet of Rs 558 crore in 2015-16. And, had disposed of the shares in Ashok Leyland John Deere at a loss of Rs 233 crore.

In a letter to the shareholders, Chairman Dheeraj G Hinduja said in 2016-17 and beyond, the cornerstone of the growth plan would focus on the core business of CVs. A portfolio rationalisation, already in process, would see progressive exit from non-core and non-performing businesses. The impairment charge of Rs 558 crore in 2015-16 included one of Rs 107 crore towards Albonair Germany, Rs 150 crore towards Optare Plc of the UK and Rs 5 crore towards Albonair India.

“The company and its joint venture (JV) partner (Nissan Motors) are in discussion to resolve the uncertainty with respect to the continuity of the JV operations represented by three companies,” it said. These companies are Ashok Leyland Nissan Vehicles, Nissan Ashok Leyland Powertrain and Nissan Ashok Leyland Technologies.

Leyland said considering the significant uncertainty in continuity of the JV operations and the accumulated losses of the JV entities, it had provided for the carrying value of the investment in the said companies, aggregating Rs 296 crore. In 2014-15, it said it had made an impairment provision of Rs 214 crore in the three Nissan JV entities.

The loss at Ashok Leyland Nissan Vehicles came down to Rs 61.9 crore in 2015-16 from Rs 791.2 crore a year before. AL has 51 per cent stake in this company. Nissan Ashok Leyland Powertrain's profit was Rs 71.9 lakh in 2015-16 as compared to a Rs 3.1 crore loss a year before. Nissan Ashok Leyland Technologies made a profit of Rs 5.05 crore, as compared to a Rs 9.8 crore loss a year before.

In the major JV, for construction equipment with John Deere, the company said as mentioned earlier that it had disposed the shares in Ashok Leyland John Deere at a loss of Rs 233 crore. The JV company has reported a loss of Rs 75.9 crore in 2015-16 as against Rs 29.6 crore a year before. AL attributed the poor performance to market conditions. It also said two of the JVs/associates under liquidation were Ashley Airways and Automotive Infortronics.

Managing Director Vinod K Dasari earlier said AL had decided to focus on its core business of CVs, with related diversification.  He agreed it was a bad decision to get into unrelated areas; it was done with good intent, “but somehow things didn't work out...instead of spending the time and energy to revive a dead business, let it go and focus on the core business.”

Hinduja said AL would give more thrust in international markets. In the target clusters, it would develop products specifically for the identified markets. It is doubling the capacity of its Ras-Al-Khaimah plant (in the UAE) this year and a new assembly unit in Bangladesh is in the offing. Further units in Africa are under active consideration.

To leverage availability of the in-house developed Neptune engines and respond to growing application needs, the power solutions business would be implementing an updated strategic road map, he added.

Future plans include introduction of Euro VI-compliant engines and exhaust system variants, commercialisation of hybrid and electric buses, and introduction of a modular business programme for both truck and bus variants.

Volkswagen reaches $14.7B emissions settlement

Business standard has posted by Volkswagen reaches $14.7B emissions settlement would repair or buy back polluting vehicles and pay each owner as much as $10,000 under a $14.7 billion deal the car maker has reached to settle lawsuits stemming from its emissions cheating scandal, a person briefed on the settlement talks said.

The deal sets aside $10 billion to repair or buy back roughly 475,000 polluting Volkswagen vehicles with 2-litre diesel engines, and to compensate each owner with an additional payment of between $5,100 and $10,000, the person said.

The person asked not to be identified because the deal will not be filed in court until Tuesday, and a judge has ordered attorneys not to talk about it before then.

Owners who pick the buybacks would get the clean trade-in value of their cars from before the scandal became public on September 18, 2015. The average value of a VW diesel has dropped 19% since just before the scandal began. In August of 2015, the average was $13,196, and this May it was $10,674, according to Kelley Blue Book.

The settlement still requires a judge's approval before it can go into effect.

The scandal erupted in September when it was learnt that the German automaker had fitted many of its cars with software to fool emissions tests and had put dirty vehicles on the road.

Investigators determined that the cars emitted more than 40 times the legal limit of nitrogen oxide, which can cause respiratory problems in humans. Car owners and the U.S. Department of Justice sued.

The settlement also includes $2.7 billion for environmental mitigation and another $2 billion for research on zero-emissions technology, the person said.

The $14.7 billion would eclipse the cost of all recent automotive scandals. But VW is still facing billions of dollars in fines and penalties that are not part of the deal.

The company has admitted developing sophisticated software that determined when the cars were being tested by the EPA on a treadmill-like device called a dynamometer and turned on the pollution controls. Once all wheels began spinning and the steering wheel was turned, the controls were turned off.

The company, which knew the EPA's testing routine, got away with the scam for seven years before being caught by the International Council on Clean Transportation, which hired West Virginia University to test a VW in real roads conditions.

The settlement does not include another roughly 90,000 3-litre Volkswagen diesels, which had another version of cheating software.

Viacom board rejected offer for director to meet Sumner Redstone

Business standard has posted by Viacom board rejected offer for director to meet Sumner Redstone Board's dismissal of a possible route toward a settlement shows how far apart the two sides are in the legal fight for control over Redstone's $40 billion media empire Viacom Inc's board rejected an offer by Sumner Redstone's attorneys to have one of Viacom's independent directors meet face-to-face with the 93-year-old media mogul to get an understanding of his views on the media company, a spokesman for Redstone confirmed on Monday.

The board's dismissal of a possible route toward a settlement shows how far apart the two sides are in the legal fight for control over Redstone's $40 billion media empire, amid questions over whether the magnate is making his own decisions or is even of sound enough mind to do so.

Redstone offered to meet Viacom Independent Director Charles Phillips in the days after Viacom lead independent director Fred Salerno filed suit over Redstone's June 16 move to oust him and four other directors, including Viacom CEO Philippe Dauman, from the Viacom board, Reuters exclusively reported Monday.

Last week Salerno vetoed the idea, opting instead to continue with litigation, sources told Reuters.

Salerno and Phillips declined to comment. In a statement, Viacom did not confirm or deny it received such an offer from Redstone. But did say it would be wrong to suggest such a meeting could "actually assess" Redstone's capacity.

Salerno has sent a number of letters to Redstone over the past several weeks requesting a meeting with him to discuss his views of the business, and to go over the rationale for Dauman's planned stake sale of Viacom's Paramount movie studio.

"We are quite concerned that your voice — and views — are not being heard," Salerno wrote in a June 14 letter, made public by Viacom.

The fact that the Viacom board rejected Redstone's offer of a meeting with Phillips showed claims by Viacom executives and Salerno that they are being blocked from meeting with Redstone are "fiction," said Mike Lawrence, a spokesman for Redstone, in a statement.

"Fred Salerno, Philippe Dauman, and (Viacom board member) George Abrams have repeatedly told the courts that the Viacom board is being blocked from meeting with Sumner, leaving them no choice but to pursue claims," Lawrence said in the statement. "That fiction has been shattered."

Viacom called those statements both inaccurate and incomplete.

"The one fact not in question is that an examination to assess Mr. Redstone's capacity and undue influence needs to happen," the company said in a statement.

For investors, the impasse could mark the beginning of a long legal battle that will prolong the uncertainty over the future of Viacom. The company's shares closed down 5.1% on Monday, in a broadly lower market.

Redstone's privately held movie holding company, National Amusements Inc, owns 80% of the voting shares of Viacom as well as CBS Corp . On June 16, when National Amusements moved to oust the five directors from the board, investors told Reuters they hoped a change in management or a merger between CBS and Viacom could be on the horizon.

On the same day, National Amusements asked a Delaware court to affirm the changes, while Salerno shot back with his own suit seeking to block the move, calling it "invalid" and the result of Redstone's daughter Shari Redstone manipulating her father.

A Delaware judge said last week that he would schedule a hearing in July in a case about whether National Amusements' move was valid.

State-owned oil marketing companies gain; BPCL hits new high

Business standard has posted by State-owned oil marketing companies gain; BPCL hits new high Shares of state-owned oil marketing companies such has Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC) were trading higher between 2%-5% on the bourses as oil prices dropped on Monday, extending Friday’s sharp decline after Britain's vote to leave the European Union.

“Brent crude futures were down 15 cents at $48.26 a barrel by 0238 GMT on Monday, after settling down $2.50, or 4.9 percent, at $48.41 on Friday,” the Reuters report suggests. LINK Lower crude oil prices could reduce under-recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at government controlled prices. The government has already decontrolled pricing of petrol and diesel.

Among the individual stocks, BPCL has moved higher to its record high of Rs 1,044, up 3% on the BSE. The stock has outperformed the market by gaining 14% post bonus announcements on May 26, 2016, as compared to 2% rise in the S&P BSE Sensex.

BPCL has fixed July 14, as the record date for the purpose of determining members who would be entitled to the bonus shares in the ratio of 1:1 i.e. 1 (one) new bonus equity share of Rs 10 each for every existing 1 (one) fully paid up equity share of Rs 10 each. The stock will turn ex-bonus on July 13.

HPCL has surged 5% to Rs 984 on the BSE in intra-day trade, currently nears to its all-time high of Rs 991 touched on August last year. IOC was up 2% at Rs 428, as compared to 0.14% decline in the benchmark index at 10:19 AM.

YES Bank hits record high; Nomura revises target price

Business Standard has posted by YES Bank hits record high; Nomura revises target price Thus far in 2016, the stock rallied 50% as compared to 2.5% gain the S&P BSE Sensex. YES Bank has moved higher to its record high of Rs 1,092 on the BSE in an otherwise subdued market, after Nomura maintained a ‘buy’ rating on the stock with revised target price of Rs 1,300 from its earlier target of Rs 1,125.

YES Bank’s asset quality, according to the research firm, has held up better than most corporate banks.
According to Nomura, YES Bank’s credit costs at around 60 basis points (bps) in FY15/16 and almost no impact from the RBI’s asset quality review highlight its superior underwriting, driven by better collateral structuring.

"The bank believes that around 70% of its exposure to stressed groups is well collateralised and we will continue to see examples of those exits even in FY17. This provides comfort that credit costs for Yes Bank will stay within the guided range," Nomura said in a report.

“We will continue to see exits from stressed names by YES Bank, driven by self-liquidating collateral. Also the bank is delivering well on its retail liability franchise and we expect a similar scale up on the assets side as well. With low corporate asset quality risk and an improving retail franchise, Yes Bank’s valuations have more scope for re-rating, in our view,” the brokerage firm mentioned in a report dated June 23, 2016.

Thus far in 2016, the stock rallied 50% from Rs 726 on December 31, 2015 as compared to 2.5% gain the S&P BSE Sensex. Till 12:24 PM, a combined 987,872 shares changed hands on the counter on the BSE and NSE.

KEC International gains on winning orders worth Rs 1,036 crore

Business standard has Posted by KEC International gains on winning orders worth Rs 1,036 crore

KEC International has rallied 7% to Rs 144 on the BSE in early morning trade after the company in a release said that it has secured new orders worth of Rs 1,036 crore.

The orders include Rs 582 crore worth of order from Abu Dhabi Transmission and Dispatch Company for supply and construction of 400 KV transmission line from Barakah Switchyard to Madinat Zayed Grid Substation in Abhu Dhabi, the company said in a release.

The company also secured a composite order of Rs 317 crore for electrification, civil works, track laying, signaling, construction of road beds and bridges in connection with doubling between Raebareli and Amethi stations from Rail Vikas Nigam Limited, the release added.

At 09:26 AM, the stock was up 5% at Rs 141 on the BSE. A combined 684,102 shares changed hands on the counter on the BSE and NSE so far. 

Escorts hits 52-week high

Business standard has posted by Escorts hits 52-week high Escorts has moved higher to its fresh 52-week high of Rs 202, up 11% on the BSE in early morning trade on hopes of good monsoon will aid tractor sales growth.

The counter has seen huge trading volumes with a combined 3.52 million equity shares representing 2.9% of total equity of Escorts changed hands on the BSE and NSE till 09:32 AM.

In past one-month, the stock has outperformed the market by gaining 21% as compared to 6% rise in the S&P BSE Sensex.

The company had reported ebidta (earnings before interest depreciation and tax) margin at 4.8% in March quarter, correspondingly up by 213 basis points (bps) on Y-o-Y and sequentially up by 98 bps on Q-o-Q, due to better product mix and cost reduction.

“We have improved our profitability and are confident that the company is well poised to take advantage of the inevitable improvement in both the farm and construction sector,” said Rajan Nanda, chairman and managing director, Escorts, on commenting Q4 results.

Anand Rathi Research believes with a favourable monsoon predicted, the broking firm expects the companies linked to the rural economy to report strong growth in earnings.

Escorts have diversified business in to four different segments. Escorts Agri Machinery (EAM), Escorts Construction Equipment (ECE), Railway Equipment Division (RED) & Escorts Auto Products (EAP).

Tech Mahindra acquires UK digital firm The Bio Agency

Tech Mahindra acquires UK digital firm The Bio Agency IT services provider Tech Mahindra on Wednesday said it has acquired The BIO Agency (BIO). It is a UK-based agency that offers digital services to global clients and engages with their customers. The deal value was not disclosed. 

Business standard has posted by

The BIO Agency services brands across financial services, retail, property, travel, and technology sectors and the acquisition will help them make sizeable inroads into Fortune 100 / 500 telecommunications and enterprise clients of Tech Mahindra, the company said in a statement.

Tech Mahindra has embraced the future with its focus on digital and sees this as an important strategic move. The acquisition will further strengthen and enable the company to engage with its clients at the start of the journey and more importantly, help design the customer experience for their businesses.

"The BIO Agency and Tech Mahindra will create one of the world's leading innovation practices. A combination of BIO's visionary thinking and delivery with Tech Mahindra's IT to DT (Digital Transformation) strategy will enable and create digital services, that get industries ready beyond just technology transformation, but a larger integrated customer experience," CP Gurnani, MD & CEO, Tech Mahindra said.

The acquisition will open up more clients for BIO globally (especially in Europe and the US), scaling their offerings and enabling new services and deeper digital change. This will significantly help enhance BIO's offerings in people, turnover and market impact. BIO will continue to further invest into its people and its propriety thinking, the firm said in the statement.

"We are looking forward to the next stage of BIO's journey. With a partner like Tech Mahindra, we plan to further scale our offering, continuing to help clients change the way they engage with their customers," said Peter Veash, CEO, The BIO Agency.

Hindalco hits 52-week high; surges over 40% in one month

Business Standard has posted by Hindalco hits 52-week high; surges over 40% in one month Hindalco has gained 3% to hit its 52-week high of Rs 124 on the BSE, extending its past one month rally, after the company reported better-than-expected results for the quarter ended March 2016 (Q4FY16).

In past one-month, the stock surged 43% from Rs 87 on May 20, as compared to 14% rise in the S&P BSE Metal index and 6% gain in the S&P BSE Sensex.

Hindalco reported Q4FY16 earnings way ahead of consensus estimates on the back of steep cut in costs.

The company’s standalone bottom line more than doubled to Rs 356 crore in Q4FY16, up 123% year-on-year, mainly because of lower input costs as net sales took a hit due to falling aluminium and copper prices.

Hindalco said the profit before interest depreciation and tax (PBIDTA) rose by 27% with strong contribution from both Aluminium and copper segment. Higher aluminium volumes and lower input costs led to this robust performance.

The global demand continued to remain robust and expected to grow at around 4%. Indian demand rising and is expected to grow smartly on the back of expected pick up in industrial activity, infrastructure spend and focus on power transmission and distribution, it added.

Analysts at Prabhudas Lilladher believes that earnings quality of domestic operations of Hindalco would further improve on the back of optimization of new smelters, stable LME and structural improvement in availability of domestic coal. This coupled with low capex would drive significant improvement in the company’s gearing ratios and free cash flows in FY17/FY18.

Till 10:08 AM, a combined 4.59 million shares changed hands on the BSE and NSE.

Stocks in news: InterGlobe, Britannia, IndusInd, Tata Comm, TCS

Here are stocks that are in news today: Stocks in news: InterGlobe, Britannia, IndusInd, Tata Comm, TCS

Mahanagar Gas IPO
-IPO opens today and closes on June 23
-Offer for sale of upto 2.47 crore equity shares (issue represent 25 percent of the post issue paid-up capital)
-Price band Rs 380-421/share
-Looking to raise Rs 938-1,040 crore

Tata Communications
-Puts ATM business on block: ET
-Eyes valuation of Rs 1,350 crore; approaches buyers in Japan and US

IndusInd Bank
-In advanced talks to buy Rs 1,000 crore worth non-performing assets (NPAs) from Spandana Sphoorty Financial: ET
-Also looking to buy preferential share of Spandana worth Rs 780 crore

Quick Service Restaurant like Westlife, Britannia and Jubilant Foodworks:
-Food regulator removes two additives from the permissible list
-Food Safety and Standards Authority of India excludes potassium bromate from the list of permissible additives

Auto companies
-Nodal agency may be set up to launch probe into safety issues and recommend recall: ET
-Auto companies shunning recall may face penalties

Other stocks and sectors that are in news today:
-Aurobindo Pharma USA receives US FDA tentative approval for Efavirenz tablet
-Aviation stocks (Jet Airways, SpiceJet, InterGlobe Aviation) in focus: May passenger growth very strong, up 22 percent at 87 lakh passengers
-Andhra Bank to raise Rs 1,000 crore from bonds
-Nestle looks to launch 25 new products to fend off competition from Patanjali
-Indian coffee stocks - Positive for Indian coffee makers as rains spoil Brazil coffee harvest: ET
-TCS, Sernova Financial enter into strategic partnership
-Reliance Communications/Aircel merger talks extended by a couple of weeks: BS
-Kesar Terminals board meeting on June 24 to consider issue of bonus shares
-Apollo Hospitals ties Up with Hainan Ecological Smart City Group, China to build a state-of-the art hospital in Hainan Province, China
-Quick Heal launches cyber security consulting and education services named ‘Seqrite Services’ and ‘Quick Heal Academy’
-GOL Offshore gets shareholder nod to convert loan into equity
-Government leaves interest rate for small savings schemes for July-September unchanged

Real estate shares extend gain; HDIL hits 52-week high

Business standard has Reported Real estate shares extend gain; HDIL hits 52-week high Shares of real estate companies were trading higher for the second straight day on the bourses after the Securities and Exchange Board of India (Sebi) proposed further relaxations to the real estate investment trusts (Reits) regulations, to attract real estate developers towards launching these instruments.

Earlier, a Reit could invest only up to 10% in an under-construction project. It also eased the criteria for related-party transactions and allowed Reits to have more sponsors.CLICK HERE TO READ REPORT.

Among the individual stocks, SSPDL, Unitech, DLF, Phoenix, Housing Development & Infrastructure (HDIL), NBCC (India), Kolte-Patil Developers and Sunteck Realty were up 2%-10% on the BSE.

HDIL hit a 52-week high of Rs 106 during intra-day trade on the BSE. The stock rallied 10% in past two trading sessions from Rs 96 on June 16, 2016.

At 12:52 AM, the S&P BSE Realty index was up 1.7% as compared to 0.62% rise in the S&P BSE Sensex. In past two trading sessions, the realty index rallied 5% against 1% gain in the benchmark index.

Max Financial Services hits 52-week high

Business Standard has Posted by Max Financial Services hits 52-week high

Max Financial Services has moved higher by 12% to Rs 531, also its 52-week high on the BSE, after the company and Max Life on Friday entered into an agreement for a merger with HDFC Life.

In past two trading sessions, the stock rallied 24% from Rs 429 on June 16, as compared to 0.61% rise in the S&P BSE Sensex.

Under this arrangement, Max Life will first merge with Max Financial Services which in turn will merge with HDFC Life.

In a statement to the stock exchanges, Max Financial Services and HDFC said their respective boards had approved entering a confidentiality, exclusivity and standstill agreement to evaluate a potential combination through a merger of Max Life Insurance Company and Max Financial Services into HDFC Standard Life Insurance Company by way of a scheme of arrangement.

The agreement provides for a mutually agreed exclusivity period for due diligence and discussions between the parties in relation to the proposed transaction, it added.

At 10:32 AM, the stock was up 11.5% at Rs 527 on the BSE as compared to 0.29% rise in the benchmark index. The trading volumes on counter jumped an over three-fold with a combined 4.78 million shares changed hands on the BSE and NSE so far.

Tyre shares trade weak; MRF hits 52-week low

Reported by Tyre shares trade weak; MRF hits 52-week low Shares of tyre manufacturers were trading weak, with the sector major MRF hitting 52-week low of Rs 31,005 on the BSE in intraday trade.

At 11:21 AM, Ceat, MRF, JK Tyre, Balkrishna Industries, TVS Srichakra and Apollo Tyres were down up to 2% as compared to 0.28% rise in the S&P BSE Sensex.

In past two-months, Ceat (down 29%), MRF & Apollo Tyres (down 15% each) and TVS Srichakra (down 9%) have underperformed the market by falling more than 8% each, against 3.3% gain in the benchmark index.

Increasing radialisation, currency depreciation and Chinese competition have put pressure on exports for tyre companies.

Mayur Milak, analyst at Anand Rathi Share and Stock Brokers expect these issues to continue in H1 FY17; therefore, export figures may continue to be dismal. Nevertheless, anticipating greater replacement demand, a better monsoon and a revival in the rural economy, analyst expect domestic volumes to fare well.

“Margins of the tyre group were squeezed compared to the previous quarter. This was primarily due to the double impact of lower realizations due to price cuts and an increase in rubber prices toward the beginning of March 2016. So, while they reported lower raw-material costs due to low-cost inventory, we expect material costs to go up in coming quarters. That also means, however, that price cuts would be halted and the industry may soon see some price hikes to protect margins,” analyst said in report dated June 2016.

Company	18/04/2016	LTP	% chg
CEAT	1147.30	819.10	-28.61
MRF	36686.95	31227.95	-14.88
Apollo Tyres	173.35	148.00	-14.62
TVS Srichakra	2566.35	2335.00	-9.01
Goodyear India	514.10	515.00	0.18
JK Tyre & Indust	86.45	87.70	1.45
Balkrishna Inds	627.80	673.05	7.21
Sensex	25816.36	26688.00	3.38
LTP : Last traded price on BSE in Rs at 11:12 AM.

Stocks to watch: HDFC, Cipla, IOC, Eros, Rolta, Tata Chemicals

Money Control has posted by Stocks to watch: HDFC, Cipla, IOC, Eros, Rolta, Tata Chemicals Here are stocks that will be in news on Monday:

SEBI issues consultation paper on REITs
-SEBI allows real estate investment trust (REITs) to invest up to 20 percent in under construction assets
-To remove restrictions on SPV (special purpose vehicle) investing in other SPVs holding assets
-To allow change in the number of sponsors in REITs
-To align REITs minimum public holding requirement with SCRR (Securities Contract (Regulation) Rules)
-Issues consultation paper on amendments to portfolio managers norms
-Proposes to change obligations & responsibilities of fund managers
-Proposes to change minimum investment norms for existing portfolio managers
-Proposes to change method of audit of overseas fund
-To rationalise compliance w.r.t related party transactions in REITs

HDFC chairman Deepak Parekh says
-Boards of 3 companies have agreed to merger of Max Life, Max Financial Services into HDFC Life
-Macro environment in India is very conducive
-Favourable demographics provide a big opportunity for insurers
-Life insurance penetration significantly lower in India
-Expect new business premium to grow at 15 percent over the next 5 years
-Top 4 life insurance companies have 65 percent market share
-If pact materialises, HDFC Standard will become largest player in sector
-HDFC Life shareholders are keen to list the company
-HDFC Life & Max Life have strong margins & synergies
-Product mix of the combined entity will be well diversified
-Merger will lead to eventual listing as Max Financial already listed
-Eventual shareholding to be determined by swap ratio later
-Both Standard Life & Sumitomo have agreed to thistransaction
-Expect due diligence & valuations to be done in next 60 days

Max Life, executive chairman Analjit Singh says
-Company is a profitable life insurance player
-Company has a solvency ratio of 345 percent
-Possibility to merge HDFC Life & Max Life & then reverse merge into Max Financial
-Max Life to be merged with Max Financial & than merged with HDFC Life
-Valuation to come in 2 months, will take 10 months for entire process

HDFC says
-The entire transaction will be done via share-swap
-Expect double-digit growth from the merged entity
-Intend to retain top management in both companies

Tata Chemicals
-Have stopped production of complex chemical including Di-ammonium phosphate (DAP) at Haldia plant
-Production of single super phosphate remains unaffected

RBI
-Simplifies & rationalises process of registration of new non-banking finance companies (NBFCs)
-Reduces documentation for NBFC registration to 7-8 from 45 earlier

Rolta India
-Have suffered unexpected delays in large payment collections
-Facing working capital stress due to the delay in payment collection
-Have been unable to meet recent external commercial borrowing (ECB)/bond interest obligations
-Management working on addressing situation in consultation with bankers

Karnataka High Court provides temporary relief to UB Holdings
-Stays Debt Recovery Tribunal (DRT) order in recovery case against UBHL
-Stays demand notice of Rs 192.5 croreagainst UBHL

Other stocks and sectors that will be in news on Monday:
-Export Inspection Council of India and US Food and Drug Administration ink pact to share information on import alerts: PTI
-Eros International signs television licence deal with Zee Network
-IOC-led consortium to buy 24 percent stake in Russia's Vankor oil field from Rosneft for about USD 2.1 billion: PTI
-Cipla in pact with Russian firm Nacimbio for HIV, Hepatitis C drugs: PTI
-HDFC Life's IPO plan put on hold post-merger deal with Max: PTI

Sugar stocks dip as government imposes export duty

Business standard has Reported By  Sugar stocks dip as government imposes export duty Shares of sugar companies are under pressure with most of the stocks trading lower by up to 10% after the government imposed 20% customs duty on sugar exports to boost domestic supply and ensure that traders don’t ship out sugar to take advantage of favourable international markets.

Ugar Sugar Works (down 9% at Rs 51), Simbhaoli Sugars (9% at Rs 48) , KCP Sugar & Industries (down 8% at Rs 40), Oudh Sugar Mills (8% at Rs 129), Rajshree Sugars & Chemicals (7% at Rs 83), Sakthi Sugars (8% at Rs 46), Upper Ganges Sugar & Industries (7% at Rs 381), Kesar Enterprises (6% at Rs 60) and Uttam Sugar Mills (6% at Rs 81) were down more than 5% each on the BSE.

At 11:41 AM, the S&P BSE Sensex was up 0.45% or 119 points at 26,645.

According to PTI reports, sugar prices drifted by Rs 21 to Rs 3,727 per quintal in futures market today as participants engaged in trimming positions, triggered by the government's decision to impose customs duty on exports. CLICK HERE TO READ FULL REPORT.

Thus far in June 2016, most of the sugar stocks that hit multi-year highs and had outperformed the market by rallied by up to 150% as compared to 0.53% decline in the benchmark index till yesterday.

Global sugar prices have risen 53%t in the past six months to around 20 cents per pound due to delayed harvest of the Brazilian crop. Brazil is the world’s largest producer of sugar and competes with India in the international market. LINK

Company	31/05/2016	16/06/2016	% chg	LTP	% chg
Upper Ganges	166.30	408.55	145.67	381.00	-6.74
Thiru Arooran	57.65	118.85	106.16	114.50	-3.66
Ugar Sugar Works	28.00	56.20	100.71	51.00	-9.25
Kesar Enterprise	33.45	64.15	91.78	60.10	-6.31
Dharani Sugars	33.80	64.30	90.24	61.10	-4.98
Rajshree Sugars	47.70	89.15	86.90	82.85	-7.07
Oudh Sugar Mills	79.55	139.55	75.42	129.00	-7.56
Uttam Sugar	49.30	85.80	74.04	80.60	-6.06
Simbhaoli Sugar	31.40	52.75	67.99	48.00	-9.00
Mawana Sugars	40.30	65.20	61.79	61.95	-4.98
LTP : Last traded price on BSE in Rs at 11:48 AM

Bharti Infratel hits 52-week low

Business standard has reported by Bharti Infratel hits 52-week low Bharti Infatel has hit a 52-week low of Rs 334, down 4% on the BSE, extending its past two day's 8.4% fall, after the stock turned ex-date for buyback of shares on June 15. The company has fixed June 16 (Thursday) as the record date for the buy-back, wherein it will buy shares worth Rs 2,000 crore on a proportionate basis from shareholders including promoters through the tender offer route.

The committee has determined the final buy-back price of Rs 425. Earlier, the board of directors of the company at its meeting held on April 26 had approved the share buyback proposal at a maximum price of Rs 450 per equity share.

According to Business Standard reports, the brokerages have cut earnings estimates and downgraded the stock recently. CLICK HERE TO READ FULL REPORT.

Meanwhile, the rating firm ICRA said the major cause for concern for the telecom companies (telcos) is the downward trend of data realisations, which have been declining unilaterally for the last 12 quarters on account of increase in free/discounted offerings by the telcos to increase the data usage as well as increasing competitive pressures.

“In the medium term, the realisations are expected to continue to remain under pressure given the level of competition and the entry of Reliance Jio Infocomm Limited (RJio). However despite falling realizations, the increase in data usage has pushed the data ARPU which has grown from 121 for Q3 FY2015 to Rs 146 for Q3 FY2016 for the ICRA Sample,” the rating firm said in recent report on telecom sector.

At 11:10 AM, the stock was down 2.3% at Rs 340 on the BSE as compared to 0.5% rise in the benchmark index. A combined 2.65 million shares changed hands on the counter on the BSE and NSE so far.

SBI merger to create banking powerhouse

Reported by SBI merger to create banking powerhouse In a definitive push for consolidation in the banking sector, the Union Cabinet on Wednesday gave a go-ahead to the merger of State Bank of India (SBI) with its five associate lenders and Bharatiya Mahila Bank. The combined entity would create a financial sector powerhouse, with total assets worth Rs 29.7 lakh crore.

SBI has indicated it wants to complete the merger in 2016-17. While India's largest lender would reap benefits of scale and a larger balance sheet, it will be a major challenge to integrate staff and rationalise branches.

In the near term, SBI would concentrate on valuation to finalise the swap ratio for merger. The valuation process would take about two months, SBI managing director (associates and subsidiaries) V G Kannan said.

SBI Chairman Arundhati Bhattacharya said the merger is a win-win scenario for both SBI and the associate banks. Not only will the SBI network expand, its reach would multiply.

"The group will get the benefit of efficiencies to be created from rationalisation of branches, common treasury pooling and proper deployment of a large skilled resource base," the SBI chief said. A significant aspect of employee rationalisation will be aligning the pay structures. The associates have a little over 70,000 employees, or 34 per cent of SBI's employee base.

While SBI employees receive pension, provident fund and gratuity, those at associate banks do not receive contributory provident fund. The actual incremental employee cost will depend on their internal arrangement and negotiations.

In the recent past, SBI merged two of its erstwhile associate banks with itself - State Bank of Saurashtra in 2008 and State Bank of Indore in 2010.

Former SBI Chairman P Chaudhuri suggested that one associate bank should be merged with the parent every year to ensure healthy and smooth integration. Chaudhuri was involved in merger of State Bank of Saurasthtra with the SBI.

Global rating agency Moody's, in its report last month, said the merger will have limited impact on SBI's credit metrics, given that SBI already fully owns SBH and SBP and has majority stakes in the other three associate banks. In addition, BMB only started operations in 2013 and accounts for less than 0.1 per cent of SBI's total assets.

The implementation of the merger is likely to be challenged by strong employee unions. The staff unions of the associate banks went on a one-day strike last month and have threatened to launch a larger protest in near future.

The five associate banks are State Bank of Bikaner & Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP) and State Bank of Travancore (SBT). In the last financial year, only SBP posted a loss, while all others were in profit. SBP had posted a net loss of Rs 972 crore in FY16, against a net profit of Rs 362 crore in FY15. SBH posted highest net profit of Rs 1,065 crore in FY16 among the peers.

SBI and its subsidiaries witnessed hectic buying after the Cabinet decision, surging up to 20 per cent. Shares of SBM jumped 20 per cent to Rs 547.90, SBT zoomed 19.99 per cent to Rs 478.90 and SBBJ soared 19.99 per cent to Rs 599.60 on BSE. All these banks hit their highest trading permissible limit for the day on the bourse. The scrip of SBI also moved up by 3.90 per cent to Rs 215.65.

Ujjivan Financial falls after RBI restricts FII buying

Business Standard has Reported By Ujjivan Financial falls after RBI restricts FII buying 

 Ujjivan Financial Services has dipped 5% to Rs 372 on the BSE in early morning trade after the Reserve Bank of India (RBI) notified that the aggregate foreign shareholdings in the company has crossed the permissible limit, which means overseas investors will not be able to buy further equity in the company.

“The aggregate foreign shareholdings through Foreign Institutional Investors (FII)/Registered Foreign Portfolios Investors (RFPIs)/Foreign Direct Investment (FDI)/Non-Resident Indians (NRI)/American Depository Receipts (ADR)/Global Depository Receipts (GDR)/Persons of Indian Origin (PIO) in M/s Ujjivan Financial Services Ltd. has crossed the permissible limit,” RBI said in notification dated June 15, 2016.

Hence it may please be noted that no further purchase of shares of this company would be allowed through Stock Exchanges in India on behalf of FII/RFPI/FDI/NRI/ADR/GDR/PIO, it added.

Meanwhile, post listings on May 10, this year, the stock had outperformed the market by surging 69% from Rs 232 to Rs 391 till yesterday. The S&P BSE Sensex was gained 3.7% during the same period.

The company had raised around Rs 900 crore by issuing shares at Rs price of Rs 210 per share.

At 09:26 AM, the stock was down 4% at Rs 377 on the BSE. A combined 792,964 shares changed hands on the counter on the BSE and NSE so far.