Mini Derivative Contracts on Index to be discontinued

As per SEBI circular dtd 20.11.2012. Exchanges to Discontinue Mini Derivative contracts on Index (Sensex and Nifty). 

SEBI in its circular has mentioned that, it has initiated this step to discourage retail investors from trading in Derivatives Segment.

Source : SEBI Circular

BSE : http://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20121121-25

NSE :http://www.nseindia.com/content/circulars/FAOP22155.zip

RBI asked to finalise new bank licence guidelines: FM

Finance Minister P Chidambaram today said he has asked RBI to finalise guidelines for new bank licences and start accepting applications for the same pending passage of the Banking Laws (Amendment) Bill.

"...we have written to the RBI recently urging them to proceed to finalise the guidelines and proceed to receive applications for new banking licences in anticipation of the amendment in the banking regulation act," he told reporters after reviewing the performance of public sector banks.

Source : Economic Times News Paper

Muhurat Trading Session for Samavat Year 2069

Muhurat Trading Session timings for Samavat

Year 2069  on account of Diwali on Tuesday,

 November 13, 2012

Pre-open order entry open Time	15:30 hrs
Pre-open order entry close time	15:38 hrs
Normal Market/LPM/RDM/ open time	15:45 hrs
Normal Market/LPM/RDM/ close time	17:00 hrs
Closing Session start	17:10 hrs
Closing Session end	17:20 hrs

Source : NSE Circulars (http://www.nseindia.com/content/circulars/CMTR22083.pdf)

Source : BSE Circulars (http://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20121106-32)

The United States presidential election Results

The United States presidential election is scheduled to be held on Tuesday, November 6, 2012.

Polling ends on Wednesday, 7th Nov, 6.30 AM (IST) and the final results will be out by 10.30 AM (IST).

RBI Hikes provisioning for restructured assets

In a move that could hit the bottom lines of banks, Reserve Bank of India (RBI), during its Second Quarter Review of the Monetary Policy 2012-13’, sharply hiked the provisioning for restructured assets to 2.75 per cent as against the earlier 2 per cent. Keeping in view the larger objectives of financial stability and in line with international best practices, RBI, to ensure that banks have sufficient provisioning buffer, raised the provision for restructured standard accounts. Further, detailed guidelines on the same shall be issued shortly by the Apex Bank. 

In light of the working group report on restructuring guidelines, the central bank hiked the provisioning for restructured asset.  With a view to contain risks associated with the spiraling restructured loans of Indian banks, especially Public Sector Banks , RBI in September this fiscal appointed a working committee, which recommended the provisioning requirement on standard restructured assets to be hiked to 5% in a phased manner, over a period of two-year. The committee suggested a hike of 3.5% at the end of the first year and 5% in the second year. However, the central bank partially accepting the suggestion increased the provisioning norms to 2.75%.

Meanwhile, the new norm, effective immediately, are expected to impact the banks, especially Public Sector Banks, which have witnessed an unprecedented rise in loan restructuring due to economic stress of their borrowers. In the report, its stands to be highlighted that RBI’s this move is calculated to impact profit before tax (PBT) of Public Sector Banks for the current fiscal by between 1.5% and 4.5%. Further, among the Public Sector Banks, the best positioned is estimated to be SBI, which could see a 1.5% hit in its PBT, the report showed.

Moreover, the central bank also mandated banks to improve their disclosure norms pertaining to their exposure to credit, derivatives and un-hedged foreign currency exposures among themselves and put in place an effective mechanism for information sharing by end- December 2012.

RBI keeps Policy Rate unchanged, CRR cut by 25bps

The Reserve Bank of India (RBI) has come out with its Second-Quarter Monetary Policy review,  albeit the policy stance for this meet is in line with our as well as general consensus. Again, RBI kept Policy Rate unchanged and cut CRR by 25bps.  The following are the policy measures;

Repo Rate

Retained Repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 per cent.

Reverse Repo Rate

The reverse repo rate under the LAF, determined with a spread of 100 basis points below the repo rate, stands at 7.0 per cent.

Marginal Standing Facility (MSF) Rate

The MSF rate, determined with a spread of 100 basis points above the repo rate, stands at 9.0 per cent. 

Bank Rate

The Bank Rate stands at 9.0 per cent. 

Cash Reserve Ratio

The cash reserve ratio (CRR) of scheduled banks has been reduced by 25bps to 4.25 per cent of their net demand and time liabilities (NDTL). 

Inflation Projection

The baseline projection for headline WPI inflation for March 2013 is raised to 7.5 per cent from 7.0 per cent indicated in July.

GDP Projection

The baseline projection of GDP growth for 2012-13 is revised downwards to 5.8 per cent from 6.5 per cent. 

 Guidance

The reduction in the CRR is intended to pre-empt a prospective tightening of liquidity conditions, thereby keeping liquidity comfortable to support growth. It anticipates the projected inflation trajectory which indicates a rise in inflation before easing in the last quarter. While risks to this trajectory remain, the baseline scenario suggests a reasonable likelihood of further policy easing in the fourth quarter of 2012-13. The policy guidance will, however, be conditioned by the evolving growth-inflation dynamic.

Muhurat Trading Session for Samavat Year 2069

Muhurat Trading Session timings for Samavat Year 2069  on account of Diwali on Tuesday, November 13, 2012

Pre-open order entry open Time	15:30 hrs
Pre-open order entry close time	15:38 hrs
Normal Market/LPM/RDM/ open time	15:45 hrs
Normal Market/LPM/RDM/ close time	17:00 hrs
Closing Session start	17:10 hrs
Closing Session end	17:20 hrs

Source : NSE Circulars (http://www.nseindia.com/content/circulars/CMTR22083.pdf)

Source : BSE Circulars (http://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20121106-32)

Indian Stock exchanges will remain closed on 24.10.2012

Indian Stock exchanges will remain closed  on 24.10.2012 (Wednesday) on account of Dasara.

http://www.nseindia.com/global/content/market_timings_holidays/market_timings_holidays.htm

Ril can raise price of gas - GOVT

The government has decided in principle that Reliance Industries (RIL) can raise the price of gas from the Krishna-Godavari (KG) basin.

A recent high-level meeting convened at the Prime Minister's Office decided that RIL can begin negotiations with the petroleum ministry on fresh pricing for the gas currently being sold at $ 4.2 mmBtu

http://www.indianexpress.com/news/govt-decides-in-principle-to-let-reliance-industries-raise-kg-gas-price/1018279/

News You can use : TCS, Infosys, Spicejet, KFA, Larsen and Toubro, Cox and Kings, Reliance Power

TCS reports 35.64% rise in Q1 net profit 

India's top software services provider, TCS has reported results for first quarter ended June 30, 2012.

The company has posted a rise of 35.64% in its net profit at Rs 2797.59 crore for the quarter ended June 30, 2012 as compared to Rs 2062.43 crore for the same quarter in the previous year.  Company’s total income has increased by 33.15% at Rs 11579.91 crore for quarter under review as compared to Rs 8696.81 crore for the quarter ended June 30, 2011.

On the consolidated basis, the company has posted a rise of 37.39% in its net profit at Rs 3317.68 crore for the quarter ended June 30, 2012 as compared to Rs 2414.76 crore for the same quarter in the previous year.  Total income has increased by 35.74% at Rs 15054.97 crore for quarter under review as compared to Rs 11091.16 crore for the quarter ended June 30, 2011.

Tata Consultancy Services is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT, BPO, infrastructure, engineering and assurance services.

L&T expands capacity with new E&A facility in Vadodara 

Larsen & Toubro has inaugurated its manufacturing facility for switchgear products at Vadodara, on an 18 acre plot adjacent to L&T Knowledge City. This is a capacity expansion initiative for the business of L&T's Electrical & Automation (E&A), leader in low voltage switchgear in India. E&A will manufacture Air Circuit Breakers (ACBs) and Moulded Case Circuit Breakers (MCCBs) at this facility.

In an area of close to 27000 sq metres under a single roof, the facility houses modules for the assembly lines for circuit breakers - ACBs and MCCBs - along with the shops for press working, moulding and tooling. A development centre to provide research, development and engineering for circuit breakers will also be located.

A smart mix of labour and automation has been deployed that would enhance productivity by 2.5 times. All critical-to-quality steps have error-free assembly. The lines are equipped to produce circuit breakers of different frames and several ratings from 16A to 6300A.

The manufacturing facility has applied for 'Green Factory' certification in line with the Indian Green Building Council (IGBC) norms and audited for the ISO 9001 certification. All material used in the construction are green-certified and eco-friendly. Environment management measures include tree plantation, rain water harvesting and zero discharge of water. The new facility makes optimum utilization of natural resources of energy with sun light being effectively used to avoid any electric lighting on the shop floor during the day. Wet FDCS system has been installed to maintain a friendly temperature inside the factory.

Infosys reports 33% jump in Q1 net profit; below estimates 

Infosys, India’s second largest information technology company has reported lower than expected Q1 FY13 result for the quarter ended June 30, 2012.  The company has posted a rise of 33.25% in its net profit after exceptional item at Rs 2,204 crore for the quarter under review as compared to Rs 1,654 crore for the same quarter in the previous year. Total income has increased by 27.98% at Rs 9,368 crore for Q1FY13 as compared Rs 7,320 crore for the corresponding quarter previous year.

On the consolidated basis, the group’s net profit rose 32.93% to Rs 2,289 crore for the Q1 FY13 as compared to Rs 1,722 crore in Q1 FY12. Moreover, the total income also surged 27.30% to Rs 10,092 crore in the quarter under review as compared to Rs 7,928 crore in the corresponding quarter previous year.

Reliance Power raises $1.1 billion from Chinese lenders 

Reliance Power has raised loans worth $1.1 billion from three Chinese lenders for its upcoming 3,960 MW Sasan ultra mega power project in Madhya Pradesh. The State Council of Government of China has granted the final approval for Chinese banks to finance the Sasan project.

These loans would be provided by Bank of China, China Development Bank and The Export Import Bank of China, along with Standard Chartered Bank. The insurance cover would be from China Export & Credit Insurance Corp. The long term loans have duration of over 13 years. Reliance Power is part of the Reliance Anil Dhirubhai Ambani Group and is established to develop, construct and operate power projects domestically and internationally. 

Cox & Kings inks pact with Abacus International 

Cox & Kings has inked pact with Singapore-based travel solutions and services provider Abacus International for distribution of services. The deal will help Abacus to position as India's premium travel distribution platform and will facilitate Cox & Kings with solutions like Abacus WorkSpace, Abacus TicketingExpress and Abacus Mobile.

The company will also get benefits like full access to the Abacus business processes and strategy consulting practice, comprehensive training resources and day-to-day technology support.Cox & Kings is one of the oldest and recognized holiday brands that cater to the overall travel needs of an Indian and International traveller. It is one of the India’s largest tour and travel operator that serve as a ‘One Stop Shop’ for all travel and travel related products.

LKP Merchant Financing offloads Kingfisher’s 65 lakh shares for Rs 6.85 crore 

LKP Merchant Financing has offloaded 65 lakh shares of debt-laden Kingfisher Airlines for Rs 10.54 apiece or Rs 6.85 crore in total in an open market transaction.Last week, LKP Merchant Financing sold 78.51 lakh shares of Kingfisher Airlines for Rs 9.57 crore. As of June 23, 2012, LKP Finance held 13,32,96,791 shares, or 16.48% stake of Kingfisher Airlines.

Recently, the promoter holding in Kingfisher Airlines slipped to a record low of 35.86 percent - the lowest since the carrier became a public listed company after acquiring Deccan Airways. Moreover, after excluding the shares they have pledged, the promoters hold a meager 3.55 percent in the crisis-ridden airline.Earlier in April this year, private sector lender ICICI Bank lowered its stake in the troubled air carrier to 2.9%, from more than 5% at the end of 2011. ICICI Bank now holds about 16.7 million shares, accounting for a 2.9% stake, in the airline.

SpiceJet to increase global operations 

Low-cost airline, SpiceJet is planning to start flights to six new international destinations, which includes Kabul (Afghanistan), Riyadh (Saudi Arabia), China, Hong Kong, Bangkok and Male in Maldives. The company will be starting the services to these destinations by October-end.

At present, the company already operates its international flight services to Dubai, Kathmandu and Colombo.Earlier, the company had announced expansion of its services in northern region by connecting Chandigarh, Amritsar and Srinagar to Delhi. The carrier will also connect the cities of Dehradun and Indore to Delhi on its network in the coming days.SpiceJet operates 270 flights a day connecting 32 domestic cities and two global destinations -- Kathmandu and Colombo.

CMC reports 66.63% rise in Q1 net profit 

CMC has reported results for the first quarter ended June 30, 2012.On standalone basis, the company has posted a rise of 66.63% in its net profit at Rs 43.59 crore for the quarter ended June 30, 2012 as compared to Rs 26.16 crore for the same quarter in the previous year. Total income has increased by 27.93% at Rs 266.31 crore for quarter under review as compared to Rs 208.16 crore for the quarter ended June 30, 2011.

On consolidated basis, the company has posted a rise of 67.52% in its net profit at Rs 58.43 crore for the quarter ended June 30, 2012 as compared to Rs 34.88 crore for the same quarter in the previous year. Total income has increased by 48.01% at Rs 452.28 crore for quarter under review as compared to Rs 305.58 crore for the quarter ended June 30, 2011.

CMC is a Tata group firm and subsidiary of the country's top software company TCS. The company operates in four strategic business units namely customer services (CS), Systems Integration (SI), IT enabled Services (ITES) and Education and Training (E&T). The company has pan-India presence that caters to various sectors such as the railways, banks, government entities and other organisations with countrywide operations.

Govt offers amnesty to 100 Swiss HSBC account holders.

India has offered amnesty to more than 100 wealthy citizens who evaded taxes by hiding funds in accounts in HSBC Holdings Plc (HSBA)’s Swiss unit, according to a government official with knowledge of the matter.

The income tax department has agreed not to start criminal proceedings or levy a penalty if the Indians repatriate the money from Geneva and pay the taxes, the official said, asking not to be identified because the information is confidential. The official declined to name anyone on the list.

Onmobile Global trades up as Kotak Mahindra Bank ups stake

Kotak Mahindra Bank has upped its stake in India’s largest value-added service (VAS) company, Onmobile Global, to 5.89%, by acquisition of additional 12 lakh shares. The bank earlier held 55.8 lakh shares in the company, aggregating to 4.85% stake in the company.

 

On July 3, HDFC Mutual Fund bought over 1% stake in Onmobile through an open market transaction. HDFC Mutual Fund A/C Growth Fund bought 1.73 million shares representing 1.5% stake of the company at Rs 30.97. While Goldman Sachs Investments, Mauritius, on July 2, bought 1.2 million shares of the company.

 

Onmobile Global offers contest management, content aggregation and distribution, voice short codes, mCommerce solutions, missed call alerts, multimedia push services, mobile advertising, mobile search, ringtones, ringback tones, personalized music greetings, mobile media portals, phone backup, voiceportals, and voice SMS.