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Exclude 7 Stocks from F&O segment in BSE…


Trading Members are requested to note that Futures and options contracts of expiry month July 2014 for following securities in Equity Derivative Segment shall not be available for trading till further notice.

 

Sr.No
Scrip Code
Scrip Name
Derivative Asset Code
1
500477
ASHOK LEYLAND LTD       
ALLD
2
532754
GMR INFRASTRUCTURE
GMRI
3
500106
IFCI LTD
IFCI
4
500400
TATA POWER CO. LTD.
TATP
5
507878
UNITECH LTD
UNIT
6
532627
JAIPRAKASH POWER VEN. LTD          
JPPW
7
500087
CIPLA LTD.
CIPL

RIL raises USD 550 m from Japanese banks


Reliance_Industries_Ltd_-logo-EAD63F9A9B-seeklogo.comReliance Industries Ltd (RIL) Wednesday said it has raised USD 550 million loan for part-funding expansion of its petrochemical plant and new gasification unit from Japanese banks. “In continuation of the fund raising programme initiated in 2012-13, RIL has tied up Export Credit Agency (ECA) facility of up to USD 550 million co-financed by JBIC (Japan International Bank for Cooperation) and a group of other Japanese banks backed by NEXI,” the company said in a statement.
The 12-year loan will part finance the proposed expansion of RIL’s petrochemical plants and setting up of new gasification unit and refinery off-gas cracker over the next 2-3 years. “This is RIL’s eighth ECA facility for the largest capital expenditure programme it has undertaken,” it said. This is the first time that JBIC is extending credit to RIL.

JBIC will provide direct financing of up to USD 330 million and Japanese banks, supported by a 95 percent Nippon Export and Investment Insurance (NEXI) insurance cover, will finance up to USD 220 million. The participating banks include The Bank of Tokyo-Mitsubishi, Sumitomo Mitsui Banking Corporation, Mizuho Bank, and three regional Japanese banks namely The Gunma Bank,

The Hachijuni Bank, and The Chiba Bank. The facility will have a door-to-door tenor of twelve years and will be used to finance contracts for imports of goods and services signed with more than 20 Japanese suppliers.

US home sales tumble to 8 Month Lows


New home sales in America are running at the weakest pace since last summer.

Sales tumbled 14.5 per cent in March from February to an annualised rate of 384,000, the Commerce Department said on Wednesday.

Economists had forecast a 2.3 per cent rise to an annual rate of 450,000.

America’s housing market is proving one of the slowest parts of the economy to emerge from its winter doldrums, raising concerns that higher mortgage rates and the continued rise in house prices are squeezing activity in the market.

Indeed, the only region of the US to escape a decline in new home sales last month was the northeast, where temperatures were still below average.

The volume of sales fell in the mid-west, the south and the west of the US.

While sales fell, median house prices continued to rise during the month. They climbed to $290,000, up almost 13 per cent from a year ago.

 

China PMI shrinks for fourth month, pace of decline slows


weakness into the second quarter, a preliminary survey showed on Wednesday, although the pace of decline eased helped by policy steps to arrest the slowdown.

Analysts see initial signs of stabilization in the economy due to the government’s targeted measures to underpin growth, but believe more policy support may be needed as structural reforms put additional pressures on activity.
The HSBC/Markit flash Purchasing Managers Index (PMI) for April rose to 48.3 from March’s final reading of 48.0, still below the 50 line separating expansion from contraction. “It’s generally in line (with expectations), reflecting that the growth momentum is stabilizing,” said Zhou Hao, China economist at ANZ in Shanghai, who expected economic growth to pick up slightly to 7.5 percent in the second quarter.

Annual growth in China’s economy slowed to 7.4 percent in the first quarter from a year earlier, its slowest pace in 18 months, but the pace was just ahead of market expectations and seemed to soothe fears of a sharp downturn. China’s central bank will cut the amount of deposits rural banks must hold as reserves by between 0.5 and 2 percentage points, it said on Tuesday, the latest in a series of measures to help combat a slowing economy.

CICC estimated that the reserve cut could release 110 billion yuan (USD 17.64 billion) of bank liquidity, while Nomura put the amount at 80-90 billion yuan, which was small given the size of the economy.

Iron ore mining likely to restart in January in Goa


Mining in top iron ore-exporting state of Goa is likely to restart in January next year once all companies have obtained environment and forest clearances from the federal government, a state government source said on Tuesday.

The Supreme Court lifted a 19-month old ban on mining in Goa on Monday, although it capped annual output in the state at 20 million tonnes. More supply from Goa, which exports nearly all its output, is likely to add to an expected surplus in the world market and put downward pressure on prices.
The ban was imposed in 2012 as part of a drive to curb illegal mining. It was lifted on the recommendation of a panel appointed by the Supreme Court to look into the mining industry. “Mining won’t start so soon… it should start somewhere in January 2015 because of processing and other formalities,” the source, who handles mining in the state, told Reuters.

“Mines will have to comply with forest and environmental clearances.” The restart of mining activity will also be delayed by the four-month Indian monsoon season that begins in June, he said. A ban on production and exports in Goa, coupled with similar curbs enforced earlier in neighbouring Karnataka, have sliced India’s iron ore exports by 85 percent, or 100 million tonnes, over the past two years.

India was once the third-largest exporter of iron ore, but has now slipped to No. 10. The resumption of supply from Goa will add to an expected glut of iron ore as big companies such as Rio Tinto and BHP Billiton boost production, while demand from top consumer China slows.

NSE ready to extend currency trading hours; awaits SEBI nod


The largest bourse National Stock Exchange (NSE) today said it is ready to extend trading hours for currency traders and is awaiting a nod from market regulator SEBI. “We are geared up to change currency trading timings as and when the SEBI allows us to do,” NSE Managing Director and Chief Executive Chitra Ramkrishna told reporters on the sidelines of the exchange-organised Futures Tech Summit.

If the proposal gets the regulator’s nod, the currency futures market would be open from 9 am to 7.30 pm as against the current timing time of 9am to 5pm. SEBI chief U K Sinha had recently said there were plans to increase trading hours for currency futures which would allow domestic market participants to adjust and alter their positions in line with movements in foreign currencies in global markets.

The move would help contain sharp volatility in the onshore currency market, as most of the trading volume takes place in offshore markets like Singapore, over which domestic regulators have no control. The non-deliverable forwards market controls more than 80 per cent of the currency futures market.

“Timings of currency markets can now be enhanced from 5 pm to 7:30 pm. So, we are moving in a direction where the rupee derivatives market can help corporates, for example, hedge on a continuous basis,” Sinha had said at an investors’ conference recently in Mumbai.

At present, currency futures are traded on platforms offered by exchanges like the NSE, BSE, MCX-SX, and United Stock Exchange. In 2013 and before that in 2012, in consultation with the RBI, the SEBI had placed restrictions on currency derivatives, because of a volatile rupee.

However, some time ago, the regulator came out with a set of new guidelines, restoring margin requirements. Ramkrishna also said that she did not envisage any consolidation in the exchange space and said that competition is healthy for the market.

U.S. existing home sales hit 1-1/2 year low in March


U.S. home resales fell to their lowest level in more than 1-1/2 years in March, but there were signs a recent downward trend that has plagued the housing market may be drawing to an end.

The National Association of Realtors said on Tuesday home sales slipped 0.2 percent to an annual rate of 4.59 million units, the lowest level since July 2012.

The decline was, however, less than economists’ expectations for a fall to a 4.55-million pace.

February’s sales pace was unrevised at 4.60 million units.

Existing home sales are counted at the closing of contracts and March’s sales reflected contracts signed in January and February when the country was in the grip of an unusually cold and snowy winter.

Even accounting for the terrible weather, the housing market has slowed significantly since last summer as a run-up in mortgage rates, high house prices and a dearth of properties sidelined potential buyers.

Existing home sales have been trending lower since last August, briefly popping up in December. Compared to March last year, sales were down 7.5 percent.

 

Ready to be PM, says Rahul Gandhi


After much debate and speculation, Rahul Gandhi says he is ready to become prime minister if the Congress wins the Lok Sabha elections. The Gandhi scion had appeared reluctant in the past to take up any responsibility in the government describing the debate around PM candidate as all “smoke”.

However, Gandhi later on expressed his willingness to undertake any responsibility given to him by his party but there was widespread speculation whether he would be announced the Congress’ prime ministerial candidate.

Sources said the Congress top brass thinks it may be “risky” to announce Gandhi as the PM candidate with the party facing an uphill task in the polls and if he is given that responsibility the blame would go to him in the event Congress does badly at the hustings.

Novartis transforms drug biz via deals with GSK and Lilly


Swiss drugmaker Novartis is transforming its business by exchanging certain assets with GlaxoSmithKline and divesting its animal health business to Eli Lilly in deals worth billions of dollars.

The revamp, announced on Tuesday, is the result of a keenly awaited strategic review at the company. Chief Executive Joe Jimenez said the changes would focus the company on innovative businesses with global scale. “They also improve our financial strength, and are expected to add to our growth rates and margins immediately,” he said.

Novartis said it had agreed to acquire GSK’s oncology products for a USD 14.5 billion payment. The Swiss drugmaker will also divest its vaccines business, excluding flu, to GSK for USD 7.1 billion plus royalties. In a separate transaction, Novartis said it had agreed to divest its animal health division to Eli Lilly for approximately USD 5.4 billion.

The deals mark a major reorganisation for GSK too, which is to return 4 billion pounds to shareholders following the changes. GSK will take the lead in running a future consumer health business with Novartis but will effectively give up its ambitions to be a global leader in oncology.

GSK said the company would in future have a balanced business centered around consumer health, vaccines, respiratory and HIV medicines, which together would account for about 70 percent of revenues.

Coal scam:CBI to examine Hindalco head Kumar Mangalam Birla


Aditya Birla Group Chairman Kumar Mangalam Birla is all set to be interrogated by the Central Bureau of Investigation in connection with the multi-crore coal block allocation scam. The CBI has named Mangalam in the Hindalco chargesheet.

The investigators have already questioned several officials of Hindaloco and are now set to interrogate Mangalam this week. An FIR was filed against Mangalam in October, 2013 under various sections pertaining to criminal conspiracy and corruption. The FIR said, “Hindalco did not fulfill requirements of coal block but was unduly favoured by the government.”

According to the FIR, Tamil Nadu government PSU Neyveli Lignite Limited was to be given Talabira II block but Parakh allegedly favoured Hindalco and allowed it to share the block with Neyveli leading to notional loss to the exchequer. The agency could not reach exact quantum of loss as the coal block is still not operational.

The blocks were allocated for power production during a meeting of Screening Committee of the Coal Ministry, the sources said and claimed that the coal allocation was meant for PSUs only. This comes as the CBI is trying to file all the chargesheets in the infamous Coalgate by the end of May, 2014. It had earlier in the day questioned former Coal Minister Dasari Narayana Rao in connection with the case.

Rao was summoned to the CBI headquarters on Monday morning and quizzed about the allocation of Talabira-II coal block at Odhisa to Hindalco despite the screening committee giving it to Public Sector Undertaking (PSU) Neyveli Lignite Limited.

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