Saturday, January 30, 2016
The Indian Railways has said that it has signed MoUs with Kerala and Andhra Pradesh Governments for formation of joint venture companies to ensure faster implementation of rail projects in the respective states. As per reports, the JV companies will have 51 per cent stake of the respective state governments and 49 per cent stake of the railways. Commenting on the issue, Railway Minister Suresh Prabhu told the media, "It is always necessary to have partnership with state governments and we have declared it in our Rail Budget." "We will have this with 17 states. We have decided to work together. It is a unique idea to enter into JVs with state governments for project implementation," he added. As per the plan, project specific SPV (special purpose vehicle) will be formed to execute a project under the JV arrangement. Earlier, Odisha and Maharashtra had signed similar agreements with the railways to execute projects in their respective states.
The Minister of State (IC) for power, Piyush Goyal on Thursday said that 30,000 megawatt more capacity of thermal power has been added during last 20 months of present government. Addressing an interactive session organized by Indian Chamber of Commerce in Kolkata, Goyal Said, power being the most important ingredient of infrastructure for nation’s development, the government is laying utmost emphasis on this sector. The Minister informed that his ministry has achieved 60 per cent working capacity of power plants and has a target of 90 per cent working capacity which will be achieved in near future. Asserting that India’s Coal production has increased substantially by 9.6 per cent which has resulted in remarkable reduction in our coal imports, the Minister said, his ministry is now emphasizing on creating more marketing facilities for coal. Goyal said that more than 5 crore 36 lakh LED bulbs have been given out at government subsidized rates due to which the rate per bulb has come down from Rs.310 to Rs.64 and within a short time it will come down further to make it affordable for common man. He added that this has resulted in 1600 MW reduction in power consumption and said that by this year March, 10 crore of LED bulbs will be given out. This will result in a huge reduction in power consumption and drastic cut in pollution. Regarding transmission, the Minister said, during the present government 22,000 circuit Kms of transmission line has been drawn which is a record. During last 18 months, 71 per cent of additional transmission capacity has been created and by 2019 it will reach 200 per cent.
The Indian Government has said that it is pushing Coal India to liquidate about 40 million tonnes of unsold coal piling up at pitheads of mines. Commenting on the issue, Union Power and Coal Minister Piyush Goyal told the media, "Coal India is unable to sell more coal. Evacuation of coal is a problem as we are unable to stock further. I have talked to Coal India chairman and discussed how to liquidate the coal stock." "I have said get this coal out so that production does not fall," he added. The Minister indicated that he would not mind if price of pithead coal was reduced to liquidate the stock, but added that he does not want to intervene in the pricing decision of CIL. The minister said he was able to reduce stress in the power sector by resolving issues facing thermal power plants with 30,000 MW capacity. As per reports, the Government is working on structural and fundamental changes in the economy.
The Reserve Bank of India is approaching the end of its rate-cutting cycle and is expected to go for a final 25-bps repo rate cut at its policy review meet on February 2. According to the global financial services major, a rate reduction is likely as inflation may be in line with RBI's January 2016 under-6 per cent target. "We continue to expect a final 25 bps RBI repo rate cut on February 2. That said, RBI is approaching the end of its rate-cutting cycle," Bank of America Merrill Lynch said in a research note. BofA-ML sees "compelling reasons" for a rate cut on Tuesday. First, inflation print could be in the comfort zone of RBI in the near term, reported PTI. Second, growth remains weak and a rate cut would provide an additional impetus to the fledgling recovery. BofA-ML's assessment is policy easing should back up the rupee as well by attracting inflows. The other supporting factor, it argued, is fiscal deficit, which is "well under control". On inflation outlook, BofA-ML said CPI is likely to bounce back to around 5-6 per cent in 2016-17. The global brokerage firm noted that RBI achieving 5 per cent 2016-17 target will depend on how weather phenomenon El Nino plays out, the 7th Pay Commission impact and oil price movements. BofA-ML's lead indicators are projecting 5 per cent GDP for the December quarter as per the old series. In the new GDP series, "we are tracking 7-7.5 per cent, without any improvement over September's 7.4 per cent", the report added. "Even if Arun Jaitley retains the 2016-17 fiscal deficit at 3.9 per cent of GDP, like FY16, instead of cutting it to the pre-committed 3.5 per cent, it will be well below the 4.8 per cent average since 2000," the report added.
The benefits to the Indian economy from fall in crude oil prices will be "limited" this year and domestic reforms and developments will gain focus, a report said. "Low crude prices have been of great help to a net oil importer like India. Brent prices (INR terms) are down 70 per cent from mid-2014 levels," global financial services major DBS noted in the report, titled 'India: Fading boost from low oil price'. "While the economy benefited significantly from the first leg of the oil price down move, the incremental boost to the economy will be limited this year," it said, adding that "as the tide runs out, underlying fundamentals and policy decisions will be back in focus". The report said the government's pro-growth policy and the RBI's role in providing macro-stability has provided a favourable backdrop for the economy over the past two years. "The drop in global crude prices was an unexpected windfall and helped to magnify improvements in the macroeconomic variables," it added as per the PTI report. Noting that the incremental impact of falling oil prices is fading, the report said that while the fall has halved the oil import bill, exports have also fared poorly, down 18 per cent year-on-year so far this fiscal year. "The higher weight of commodities in India's export basket has hurt earnings in recent months. On the demand side, shipments to oil-producing economies have taken a hit," DBS said. As per the report, a favourable external environment had magnified the post-election optimism in domestic financial markets since mid-2014. "However, as the boost from these factors wanes, local developments will gain in importance," it said. While expecting a GDP growth of 7.4 per cent for the current fiscal and 7.8 per cent for the next year, DBS said the recovery has been uneven, with the "private sector still to participate in the growth upturn". "Reforms have been under way, with executive decisions proving to be less of a challenge than legislative ones," the report said. "It is imperative that progress continues, if India is to fare better than its peers in face of falling risk-appe
Raising doubts over the new GDP growth rate methodology, RBI Governor Raghuram Rajan said there is a need for better computation of numbers so as to avoid overlaps and capture the net gains to the economy. "There are problems with the way we count GDP which is why we need to be careful sometimes just talking about growth," Rajan told the students of the RBI-promoted Indira Gandhi Institute of Development Research. In his convocation address, citing the example of two mothers who babysit each other's kids, he said there is a rise in economic activity as each pays the other, but the net effect on the economy is questionable. "We have to be a little careful about how we count GDP because sometimes we get growth because of people moving into different areas. It is important that when they move into newer areas, they are doing something which is adding value. We do lose some, we gain some and what is the net, let us be careful about how we count that," he said. The academic-turned-central banker further said that there are many suggestions from various quarters on the ways to calculate GDP in a better way and we should take those seriously, reported PTI. Some analysts have questioned the new GDP computation methodology, which has been in effect for a year. The critics point to the divergence in the mood between GDP data and other indicators like factory output to question the veracity of the new series. Also, the new GDP methodology has seen for the first time the economy growing at lower in nominal terms than in real terms at the factor-cost effective 2005. In the second quarter of the current fiscal, the real GDP clipped at 7.4 per cent, while the nominal GDP grew much lower at 6 per cent. Rajan also spoke about the need to focus on employment creation and took a middle line to say that policies need to be geared up to face the onslaught of technological innovations, reported PTI. "We have to make sure that our policies are geared up such that we will create the appropriate playing field to find new jobs. We should not create a distorted playing field where at the end of the day the wrong kinds of jobs emerge," he said. Interestingly, at the same time he hailed taxi-hailing services like Uber, calling their emergence as the "beginning of a revolution" because of the way multiple technologies come together for offering a single service. Once driver-less cars become a reality, the same technology can be used to deliver more efficiencies in the system and can be replicated in buses too, Rajan said, conceding that this may lead to drivers becoming redundant. Historically, jobs have been lost because of emergence of newer technologies, but newer ones have been created as well in the process. Rajan, however, also hinted at the need for policies to incentivise jobs creation and rued that we have policies directed towards capital subsidies alone. "We subsidise capital in so many ways; apart from direct tax benefits for investment, we also give interest subventions for loans in many situations. We may not do similar things for labour. Clearly, trying to incentivise the employment of labour and especially employment that will add skills to labour is extremely important," Rajan said as per the PTI report. The Governor also hailed the government's Start-up India initiative saying provisions like immunity from inspections for three years will be very helpful.
With complete dimming of prospects of disinvestment target being met in the current financial year and the markets expected to stay in subdued mood even in the next fiscal, the government is likely to drastically scale down targets for realization of resources from PSUs’ stake sale in the Budget for 2016-17, ASSOCHAM said on Thursday. “It is given that with just about a month to go for the Budget presentation and the window of opportunity having been missed earlier in the year, there is no hope that the over-optimistic target of Rs Rs 69,500 for the current financial year could be reached. Hopefully, the Finance Ministry will desist from setting an un-realistic disinvestment yet again for the FY 2016-17,” the ASSOCHAM Paper on Budget expectations pointed out. It said the disinvestment targets, ironically, have always been off the mark with either the government doing a mere academic budget making exercise or getting it completely wrong. “ It is nobody’s case that we can always be on the top of the market moods and the projections can go wrong at times, but it is difficult to understand how year after year, these targets have gone completely haywire under successive governments” , the paper said. ASSOCHAM Secretary General D S Rawat said, “With the odds stacked against the equity market in 2016 and the world economic prospects looking even grimmer, there is less hope of a recovery in the financial markets. Thus, it is expected that next Budget would be much more realistic in getting the Revenue Budget right”. The paper noted that but for a windfall from a steep reduction in the crude oil prices, the Finance Ministry would have found a huge shortfall in the Revenue Budget in 2015-16. “Bulk of the windfall has been retained by the government. While it is debatable whether it has been the right or wrong strategy, the oil prices cut has certainly helped the Finance Ministry to come closer to the fiscal deficit target for the year”. The government has so far raised only Rs. 12700 crore through PSU disinvestments in the current fiscal and may raise another Rs 2000-3000 crore in the remaining months of this fiscal. The government has missed its disinvestment target for fourth consecutive financial years. In 2013-14, the government has raised Rs. 15819 crore against the target of Rs. 40000 crore. In 2014-15 it raised Rs. 24277 crore against the target of Rs. 36925 crore. As per ASSOCHAM study, Government may face a shortfall of at least Rs. 55000 crore with regard to disinvestment target. The government would meet the shortfall through higher taxable and non taxable routes. In fact, the disinvestment target for FY 2015-16 had been increased by 88 percent over the last financial year to Rs. 69500 crore with the objective of generating non-debt resources to both boost public investment and contain fiscal deficit. Of this, Rs. 41000 crore was to come from minority stake sale in PSUs and another Rs. 28500 crore from strategic stake sale. For the past six years running, receipts have lagged targets with such regularity that underperformance now appears to be routine and accepted. With regards to the dividend, the government is taking steps to push profit making PSUs to either increase their capital expenditure or pay higher dividends and suggested them not sit on cash pile. By way of dividend from the profit making public sector enterprise, the government had budgeted to collect Rs 36,174 crore which is higher than last year's realisation of Rs 28,423 crore. Through this initiative the Government has already received a dividend of Rs 65,896 crore from RBI, which is higher than this year's budget projection of Rs 64,477 crore.
An economic poll has said that Finance Minister Arun Jaitley can get away with letting his borrowing targets slip when he presents his annual budget next month. As per reports, half the 30 economists surveyed also said the most pressing priority for Jaitley's third budget was to invest in infrastructure - endorsing the pro-growth course he set a year ago. A poll conducted before last year's budget also highlighted growth as the top priority, while a slim majority saw the Government meeting high hopes for economic reforms. Commenting on the issue, Deloitte economist Rishi Shah told the media, "We'll take a longer route to consolidation; otherwise the economy would be negatively affected." According to the poll, the consensus view was for the 2016/17 fiscal deficit to be raised to 3.7 per cent of gross domestic product (GDP) from a previous goal of 3.5 per cent. Gross borrowing is predicted at 6.49 trillion rupees (USD 95.2 billion).
Firstsource Solutions announced that it has posted a 16.6 per cent growth in its consolidated net profit at Rs 67.04 crore for the quarter ended December 2015 as against a net profit at Rs 57.51 crore for the quarter ended December 2014. The revenues of the company grew by 8.9 per cent to Rs 817.8 crore during the period under review as compared to Rs 751 crore in the corresponding period last year. Commenting on this, Firstsource chairman Sanjiv Goenka said, "Our third quarter results are consistent with expectations. We have been able to effectively meet operational as well as financial targets. Building on our growth momentum, we expect to see more demand across our key verticals.” He added, "We will continue to invest to expand our solutions portfolio and provide long-term value to our clients and stakeholders.”
Thursday, January 28, 2016
The French Government has said that its top company Alstom will manufacture 800 electric locomotives of horse power double than the existing ones in India, involving foreign investment of Rs 1300 crore. As per reports, two significant pacts, marking stepped up cooperation in the rail sector, were signed after talks between Prime Minister Narendra Modi and French President Francois Hollande. As per the agreement, the Madhepura factory will produce 800 electric locomotives with horse power of 12,000 each over a period of 11 years. The existing strength of electric locomotives is 6,000 horse power (HP). The project will involve foreign investment of Rs 1300 crore, considered to be substantial in rail sector. Alstom will be responsible for setting of the factory, manufacturing of the locomotives as well as maintenance. As per reports, Railways had decided in November to award the contract to Alstom for Madhepura electric locomotive project.
The government of India has given its approval for the hybrid annuity model as one of the modes of delivery for implementing the highway projects. “Adopting such a model for projects not found viable on BOT (Toll) mode shall be more effective in terms of maximizing the quantum of kilometers implemented within the available financial resources of the government,” according to a Cabinet statement. The main object of the approval is to revive highway projects in the country by making one more mode of delivery of highway projects. By adopting the model as the mode of delivery, all major stakeholders in the PPP arrangement - the Authority, lender and the developer, concessionaire would have an increased comfort level resulting in revival of the sector through renewed interest of private developers in highway projects and this will bring relief thereby to travelers in the area of a respective project. It will facilitate uplifting the socio-economic condition of the entire nation due to increased connectivity across the length and breadth of the country leading to enhanced economic activity, it added.
The Power Ministry has said that it will seek cabinet approval for revised bidding documents for Ultra Mega Power Projects (UMPPs), paving the way for auctioning three plants entailing an investment of over Rs 80,000 crore by March-end.
Commenting on the issue, Power Minister Piyush Goel told the media, "We shall shortly be putting to the Cabinet, a draft bid document for UMPP (domestic coal-based) duly revised taking into account all the concerns of all stakeholders."
"It will take some time to finalise the bid document for imported coal-based UMPPs. The discussion on it is on," he added.
As per reports, the investment for a UMPP of 4,000 MW has been revised from Rs 20,000 crore to about Rs 27,000 crore recently on the basis of rise in prices of coal and land. Thus, the auction of three UMPPs will entail an investment of over Rs 80,000 crore.
As per reports, once approved by the Cabinet, the auction for domestic coal-based UMPPs will be conducted. The government has planned to auction three UMPPs by March-end.
US oil major ExxonMobil has said that India's energy demand is likely to double in next 25 years as the economy is estimated to expand to USD 9 trillion by 2040.
Commenting on the issue, an ExxonMobil Official told the media, "Through 2040, we see China, India and other non-OECD countries - home to seven-eighth of the world's population - needing much more energy to fuel economic development and rising living standards. On the other hand, the US, Europe and other OECD nations will see declines in overall energy demand and emissions, even as their economic output continues to grow."
"We anticipate some developed economies to see net declines in overall energy demand through 2040. By 2040, India will have passed China as the world's most populous nation, with 1.6 billion people,” he added.
As per reports, India's energy demand is likely to rise from 34 quadrillion British thermal units (BTU) to 47 quadrillion BTUs in 2025 and 63 quadrillion BTUs in 2040.
Even though the fall in oil prices has created some space to ease rates, HSBC said it expects RBI Governor Raghuram Rajan to maintain status quo in the forthcoming policy review and wait for the fiscal roadmap presented in the Budget.
"We do not think RBI will cut rates on February 2," it said in a note.
The foreign brokerage said even though oil has "opened some space", the exact quantum of the benefit will only be determined once the markets stabilise, and also by the stance of the Central government, which has till now let pass only half of the benefit by raising duties on oil products.
"The Budget on February 29 should show how this extra space will be shared between monetary and fiscal policies," the report noted.
The RBI will also be closely watching the Budget fine print, it said, adding its effect on inflation and financial stability will be closely watched.
Additionally, there are other factors governing inflation which will play out in the next few weeks, like the arrival of the Rabi crop, it said.
"The current instability in markets and insufficient transmission (by banks) are further reasons why the RBI may not rush to cut the rate on February 2," HSBC said.
The RBI is most likely to achieve its January 2016 target of having inflation under the 6 per cent mark, but is committed to getting the headline number down to 4 per cent in two years from now.
"While the tone (of the policy) is likely to be dovish, the RBI, in our view, will also take a moment to remind markets of its medium-term 4 per cent CPI target, suggesting that any additional space that does open up will be measured," HSBC said.
The RBI cut rates by a total of 1.25 per cent in 2015, including one within a week of the last Budget, after switching the stance of the policy to be accommodative and address sagging growth.
HSBC said Rajan will reiterate the accommodative stance on February 2 and will be in a position to deliver a cut at the April review, provided the Budget meets his expectations.
"We continue to forecast a 0.25 per cent rate cut in the April policy meeting under the assumption that the Budget will be responsible. Thereafter, if oil stabilises at around USD 40 a barrel for FY17, space for a further 0.25 per cent rate cut could open up," it added.
Finance Minister Arun Jaitley and Road Minister Nitin Gadkari will meet road developers and bankers to sort out key issues to put back on track 20 stalled highway projects of worth Rs 20,000 crore, reported PTI.
The meeting assumes significance as the government after a series of meetings with bankers and developers had resolved issues pertaining to 58 projects but 20 projects worth over Rs 20,000 crore are still stuck.
Running out of patience for stalemate over these 20 projects, the government has warned non-serious developers and bankers of terminating these contracts.
The projects relate to key national highways in Andhra Pradesh, Bihar, Haryana, Rajasthan, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Tamil Nadu, Uttarakhand and West Bengal.
The stuck projects belong to players like Larsen & Toubro, HCC, Gammon, Madhucon, Soma and Essel Ifra, among others, while the list of lenders includes top names like State Bank of India, Punjab National Bank and Bank of India.
A top official last month had said that the government was "reaching a stage of impatience" over the stalled projects.
"The concessionaires and bankers are not realising that we are reaching a stage of impatience, and people who are users of these roads are not going to be waiting any more," the then Road Transport and Highways Secretary Vijay Chhibber had said.
"If developers and bankers fail to mend their ways and initiate correctives to roll out projects by January-end, the government will start terminating contracts in PPP mode and repackage them," he had said before his retirement.
The government recently "offered a full package", which among other steps extends the concession period of projects where delays are not attributable to developers.
The Reserve Bank plans to procure an Audit Management and Risk Monitoring System (AMRMS) for the central bank from five "potential shortlisted" solution providers, including PwC and Quadrant 4 Software Solutions, reported PTI.
The RBI said it has decided to implement AMRMS to carry out various audit and risk monitoring related activities efficiently in a seamlessly integrated fashion, thereby replacing the existing system which is partially computerised.
The AMRMS will be a comprehensive package to facilitate Internal Audit and Risk Monitoring functions of the central bank.
"Reserve Bank of India desires to procure an Audit Management and Risk Monitoring System (AMRMS) for the Bank from potential shortlisted solution providers," it said in the Request for Proposal (RFP).
AMRMS should also enable achieving the objective of paperless office environment, it added.
The five short-listed bidders based on Expression of Interest (EOI) evaluation are: Auditime Information Systems Pvt Ltd, Mumbai; NCSSoft Solutions Pvt Ltd, Chennai; PWC Pvt Ltd, Mumbai; Quadrant 4 Software Solutions Pvt Ltd, Chennai; and Thomson Reuters Pvt Ltd Mumbai.
The envisioned AMRMS, the RFP should be capable of providing an end-to-end solution from audit planning to final closure of the report.
It envisages a centralised web-based application which is browser independent (preferably), which would be hosted at Data Centre and seamlessly connect all stakeholders for its usage.
The AMRMS would cater to the requirements of primarily two Departments - Inspection Department and Risk Monitoring Department.
As per the RFP, AMRMS would be an online web based application with a centralized database and browser independent (preferably). The system should be flexible and configurable to the user requirements dynamically.
Applauding the economic reforms unveiled by India, tech giant Apple's CEO Tim Cook said the world's third largest smartphone market presents a "very good business environment" going ahead.
Apple, maker of the iconic iPhone, has been sharpening its focus on the the world's largest democracy as it sees India "quickly becoming the fastest growing BRIC (Brazil, Russia, India and China) country".
Describing India as a rapidly expanding market, Cook said revenues from the country were up 38 per cent and in constant currency, the growth was 48 per cent.
"So it's a very rapidly expanding country. And I think the government in India is very interested in economic reforms and so forth that I think all speak to a really good business environment for the future," Cook said on an investor call.
Recently, Apple has sent an application to the Department of Industrial Policy and Promotion (DIPP) for approval for setting up retail outlets in India.
Cook said the company is "putting increasingly more energy in India" and will continue to invest here for the long-term.
"India's growth, as you know, is very good. It's quickly becoming the fastest growing BRIC country. It's the third largest smartphone market in the world, behind China and the US," Cook said.
After years of rocketing growth, Apple reported the slowest sales ever of its market-leading iPhone for the quarter ended December 26.
It sold a record 74.8 million iPhones, but only fractionally higher than the 74.5 million in the same period last year and the slowest growth since the iconic handsets were introduced in 2007.
In India, the total iPhone sales grew 76 per cent, Cook said.
Comparing India with the Chinese market, Cook said the population of India is incredibly young.
"I think of the China age being young, at 36, 37 and so 27 (median age in India) is unbelievable. Almost half the people in India are below 25. And so I see the demographics there also being incredibly great for a consumer brand and for people who really want the best products," he said.
Cook said revenues from India were up 38 per cent and in constant currency, the growth was 48 per cent.
Apple posted a record quarterly profit with net income growing 2 per cent year-on-year at USD 18.4 billion, while revenue was also up at USD 75.9 billion.
India is one of fastest growing handset markets globally and is poised to overtake the US soon.
According to research firm IDC, shipments in India grew 21.4 per cent year-on-year to 28.3 million units in the July-September 2015 quarter.
Samsung led the tally with 24 per cent share, followed by Micromax (16.7 per cent), Intex (10.8 per cent), Lenovo Group - Len
As the world looks up to India to provide a leadership role in pushing global economic growth, the government has no option but to make some big bang announcements in the forthcoming Budget to resurrect investment in the public projects, or else the Indian economy can soon catch up the Chinese flu with serious consequences, apex industry body ASSOCHAM said on Wednesday. “With major multilateral institutions like the IMF and big economies such as the US, Japan, Germany and the UK all betting high on India being saviour of the international economy, stakes are too high for us not to let them and ourselves down,” said Sunil Kanoria, president of The Associated Chambers of Commerce and Industry of India (ASSOCHAM) while addressing a press conference along with chamber’s national secretary general, D.S. Rawat in Kolkata. “While we are surely reaping the benefit of a big fall in oil prices, as much as 75 per cent in the last 18-20 months, we have enough challenges in terms of checking capital outflows from the stock market, grappling with deflationary trends with a number of areas and a huge setback to the exports,” said Kanoria. He said that although an ASSOCHAM Bizcon Survey has polled corporate India's views which expect things to improve in the next two quarters, “We cannot take it for granted and need to work really hard on all fronts.” Besides, all-out efforts should be made to get the Goods and Services Tax Constitutional Amendment Bill passed in the Parliament, Kanoria said, appealing to the Congress President Ms Sonia Gandhi to support the important reforms measure, which alone can make a huge difference to the business sentiment. He said as the entire global economy is on the edge and India may also get a big hit like other emerging economies, the government should certainly not implement the seventh Pay Commission because it would not only ruin the health of the Central fiscal structure but also the states which require large allocations for Planned development. The ASSOCHAM President said, “Given the perilous state of financial markets, raising money through disinvestment would be quite difficult for the government, which then is also expecting banks to get some re-capitalisation from the market which is going through one of the most tumultuous times.” “With the nominal GDP likely to stay muted next year as well, the tax revenue targets cannot be set at ambitious level, while there would be lot more demand for pushing investment. That is why off-Budget innovative financial models like the Railways have to be found,” he added.
Wednesday, January 27, 2016
Hope doesn't come from calculating whether the good news is winning out over the bad. It's simply a choice to take action. - Anna Lappe
announced termination of a share purchase agreement (SPA) with Ideal Energy Projects Limited (IEPL) for acquisition of 100% stake in a 270-mw coal based thermal power project in Maharashtra, extendable to 540 Mw. (BS)
, is eyeing around 12% market share in the Indian AC market by end of FY17 from the current 10.5%. After launching THE company's new range of star rated inverter ACs, B Thiagarajan, Executive Director & President - AC&R Products Business, Blue Star Limited said that the room AC segment is estimated to be around Rs110bn in the overall AC market, which is estimated to be around Rs150bn. (BS)
Low cost carrier announced its cheaper deals for domestic base fares as low as Rs826 and overseas base fares starting at Rs3026. (BS)
(M&M) had offered its new generation Scorpio for bookings online on e-commerce portal Snapdeal in September 2014. The success of the endeavour encouraged the company to now offer its latest offering the micro sports utility vehicle (SUV) KUV100 online on Flipkart and two other platforms. (BS)
has announced its pipeline of 65-plus films across multiple languages for this year. The titles include Housefull 3, Shivaay, Singam 3 and Rock On 2. (BL)
has launched a new product Zandu Pure Honey. In a statement, the company said the product’s 100% purity is guaranteed, and no sugar is added to it. It is available in pack sizes of 100 gm, 250 gm and 500 gm and priced at Rs75, Rs165 and Rs270, respectively. (BL)
At least five Indian drug companies — — are in initial discussions to bid for Sagent Pharmaceuticals, a Nasdaq-listed specialty injectables maker, sources familiar with the talks said. (ET)
Looking to exit the stalled 4,000 MW Krishnapatnam power project, has written to Andhra Pradesh government suggesting that it could be done on similar lines to that of Tilaiya UMPP, which was acquired by procurers from the company. (BS)
Indian naval ship (INS) Vikrant, the first aircraft carrier, which played a pivotal role in the 1971 Indo-Pak war, has made its way into a commuter bike to be launched by next month. It will launch a 150-cc motorcycle on February 1 christened ‘V’ which is built from metal used in the country’s most celebrated aircraft carrier. (BS)
The Paradip Refinery of , which is set to be dedicated to the nation on February 7, will massively boost the bottomline of the largest oil marketeer to the tune of 20-30%, thanks to the latest technologies deployed at the facility that's coming up after a delay of 14 long years. (BS)
Drug discovery firm (SPARC) has received markets regulator Sebi's approval to raise up to Rs2.50bn through a rights issue. (BS)
Apollo Energy Company Limited, an Group company, has approved the divestment of 23.3% shareholding in Apollo Munich Health Insurance Company Limited to its joint venture partner, Munich Re of Germany for Rs1.6bn. The proposed transaction values Apollo Munich at Rs7bn. (BS)
In a tussle of manufacturers and the end-user industry over imposition of steel import curbs, the department of commerce has recommended introduction of standards on certain grades of steel as a measure to keep shipments from South Korea and China at bay. (BS)
Road Transport and Highways Minister Nitin Gadkari will meet bankers and road contractors on January 28 to discuss issues related to funding of highway projects. (ET)
The Prime Minister of India Narendra Modi, and the President of France François Hollande, on Monday jointly laid the foundation stone of the International Solar Alliance (ISA) Headquarters and inaugurated the interim Secretariat of the ISA in National Institute of Solar Energy (NISE), Gwalpahari, Gurgaon.
The Alliance has France’s full support. The France President announced that the French Development Agency will allocate €300 million to developing solar energy over the next five years in order to finance the initial projects.
Government of India has dedicated 5 acre land in NISE campus for the ISA Headquarters and also has contributed Rs 175 crore for ISA corpus fund and also for meeting expenditure for initial five years.
ISA is part of Prime Minister’s vision to bring clean and affordable energy within the reach of all and create a sustainable world. It will be a new beginning for accelerating development and deployment of solar energy for achieving universal energy access and energy security of the present and future generations.
Speaking on the occasion, Modi stated that ISA will be India’s first international and inter-governmental organization headquartered in India.ISA will be dedicated to promotion of solar energy for making solar energy a valuable source of affordable and reliable green and clean energy in 121 member countries. He thanked the President of France for his continued help and support in shaping ISA.
Appreciating India, President of France, Francois Hollande said that at Paris Conference, India showed that it was ready to fully commit to energy transition and the fight against climate change. Thanks to India’s commitment, we were able to secure an ambitious, fair and dynamic agreement in Paris, which is binding for all of humanity, Hollande added.
He also said that India’s role will be just as essential in implementing the Paris Agreement and the commitments which have been made. He reaffirmed his commitment by saying that France want to build the post-Paris Agreement world with India and ISA paves the way for this. He stressed on the fact that contributing to the success of the Alliance also means launching French-Indian projects.
The key domestic equity benchmarks are poised to extend a two-day rally on Wednesday as traders look past an ongoing China stock slump while eying key corporate earnings and the US Federal Reserve’s verdict with the world’s top central bank likely to hold off further interest rate tightening, bolstering the lure for risky assets. A bullish trend across most Asian equities and a strong finish at Wall Street overnight, coupled with gains in the CNX Nifty Index futures for January delivery which advanced by 0.56 per cent or 41.5 points at 7,437 at 10:26 am Singapore time signals a positive opening for Dalal Street today. Traders will focus on the December quarter earnings of HDFC, IDFC Bank, Havells and Godrej Consumer Products set to be unveiled on Wednesday. However, volatility may remain high at the domestic bourses as traders roll over their positions ahead of the January futures and options (F&O) contracts expiry on Thursday. Globally, all eyes will be fixated on the Fed which concludes a two-day meeting later on Wednesday. While the Fed is likely to keep interest rates unchanged after undertaking a maiden interest rate hike since 2006 in December, investors will focus on cues from the central bank over further lift-off in borrowing costs this year amidst heightened global economic uncertainty. Marking a second straight rally, on Monday the 30-share Sensex advanced by 50.29 points or by 0.21 per cent to end at 24,485.95 on strong global cues but gains were limited amidst comments from top rating agency Moody’s which in a poll warned of the risks facing the Indian economy from global headwinds such as higher US interest rates and China slowdown. Markets were closed on Tuesday on account of Republic Day.
Most Asian stocks were trading higher on Wednesday tracking an overnight rally in US markets as investors awaited the outcome of the US Fed meet. China’s Shanghai Composite extended a rout from a 13-month low, tumbling over 2 per cent after data showed that the country’s industrial profits fell 4.7 per cent in December 2015 from the same month a year ago, raising concerns over a slowdown in the world’s second biggest economy. Hang Seng surged over 1 per cent and Japan’s Nikkei 225 rallied over 2 per cent amidst speculation that the Bank of Japan which meets on Friday may take a call to expand stimulus. US stocks advanced on Tuesday as a rally in crude oil, strong corporate earnings and upbeat US economic data overshadowed worries over China. The Dow Jones Industrial Average advanced 1.78 per cent; the Nasdaq Composite rose 1.09 per cent while S&P 500 closed up 1.41 per cent. While a gauge measuring US consumer confidence rose to the highest level in three months at 98.1 in January from 96.3 in December, home prices in 20 cities advanced at the fastest pace since July 2014, up 5.8 per cent, year on year in November 2015, easing worries over a slowdown in the world’s biggest economy, buoying sentiment.
Top traded Volumes on NSE Nifty – Vedanta Ltd. 18539818.00, State Bank of India 17534650.00, ICICI Bank Ltd. 15579335.00, Axis Bank Ltd. 10252421.00 and Cairn India Ltd. 9123526.00.
On BSE, total number of shares traded was 26.04 Crore and total turnover stood at Rs. 2615.35 Crore.
On NSE Future and Options, total number of contracts traded in index futures was 407756 with a total turnover of Rs. 21632.15 Crore. Along with this total number of contracts traded in stock futures were 1202869 with a total turnover of Rs. 54808.10 Crore. Total numbers of contracts for index options were 4997046 with a total turnover of Rs. 274362.59 Crore and total numbers of contracts for stock options were 339671 with a total turnover of Rs. 16252.70 Crore.
The FIIs on 25/01/2016 stood as net seller in equity and debt. Gross equity purchased stood at Rs. 3930.43 Crore and gross debt purchased stood at Rs. 1176.09 Crore, while the gross equity sold stood at Rs. 4663.85 Crore and gross debt sold stood at Rs. 1783.12 Crore. Therefore, the net investment of equity and debt reported were Rs. -733.42 Crore and Rs. -607.03 Crore.