Bank stocks up on govt steps to address NPAs.

Shares of banks on Friday went up by about 6 percent after the government said that it is planning to set up a high-level panel to effectively deal with the issue of mounting bad loans.

Shares of State bank of India jumped 2.80 percent to settle for the day at Rs 249.55 on BSE. While, Bank of Baroda edged higher by 5.38 percent to end the day at Rs 179.25.

Punjab National Bank closed the day at Rs 144.30, up 3.29 percent and Canara Bank went up by 3.22 to close at Rs 270.80.

Among others, Syndicate Bank surged by 5.23 percent to close at Rs 94.60, while Union Bank went up 4.96 percent to close at Rs 168.20.

Interestingly, IDBI Bank whose staff has gone on a nationwide strike today closed the day at Rs 86.40 after going up by 4.03 percent.

Taking a cue from the development, private lenders like Axis Bank, ICICI Bank and HDFC Bank also ended the day on a positive note.

Axis Bank closed the day at Rs 470.90, up 1.23 percent, while HDFC Bank went up by 1.34 percent to close at Rs 1078.80. ICICI Bank closed the day at Rs 269.60, up 1.97 percent.

Concerned over mounting bad loans, the government today said that it is planning to set up a high-level panel to effectively deal with the issue.

The gross NPAs of PSBs rose to 6.03 percent at the end of June 2015, as against 5.20 percent in March 2015.

"The government is taking number of steps to address issues like NPAs, which is a big concern. The move has helped the sector to gain today," Geojit BNP Paribas Head-Research Alex Mathews said.

Analysts also attributed the rise in the sector to the overall market, which was up being the first day of December F&O expiry.

"Being the first day of December F&O expiry the markets rose on the back of buying in almost all counters. Also the possibility of passing of major bills in the winter session supported the markets," Mathews said.

In the broader market, the benchmark BSE Sensex jumped 169.57 points to close at 26,128.20, while Nifty climbed 58.90 points to 7,942.70.

Firm End to the Week.

Indian equity markets gathered steam in the post noon trading session as buying activity intensified in stocks from the banking, capital goods and IT spaces. The BSE-Sensex today closed higher by around 170 points while the NSE-Nifty saw an increase of around 59 points. BSE Mid Cap and BSE Small Cap indices also closed well in green gaining 0.5% and 0.3% respectively.

Asian markets finished broadly lower today with shares in China leading the region. The Shanghai Composite is down 5.48% while Hong Kong's Hang Seng is off 1.87% and Japan's Nikkei 225 is lower by 0.30%. European markets are mixed. The DAX is higher by 0.03%, while the CAC 40 and FTSE 100 are down by 0.30% and 0.30% respectively. The rupee was trading at 66.55 against the US$ in the afternoon session.

According to a leading economic daily, National Aluminum Company (NALCO) Ltd has received US$8.05 million or around Rs 540 million in an out-of-court settlement with a US firm. This ends a long-drawn litigation with Peak Chemical Corporation Inc. of the US in a case related to 1994 supply contract for a specific variety of caustic soda used in the alumina refinery.

Furthermore, the company recently lined up a plan to invest US$2.8 billion to build a smelter and a captive power unit in either Iran or Oman, depending on where it will get the fuel cheaper. Nalco reportedly reckons that the proposed smelter abroad could make it competitive against even Chinese aluminum producers known for their lower costs, enabled by captive power units. Nalco is a Navratna CPSE under Ministry of Mines, Government of India where the government holds a stake of 80.93%.

Nalco's move comes at a time when the global aluminum stocks and margins are under severe pressure due to concerns over the Chinese aluminum exports and global meltdown in commodity prices. Moreover, domestic aluminum companies are also struggling with higher fuel costs. The aluminum companies were forced to source coal from the open markets in the wake of cancellation of the captive coal blocks allotted to them by the Supreme Court last year. And price hikes taken to pass on the cost has further dented their competitiveness in the global markets.This has all been reflected in the weakening financial performance during the first half of FY16. (Subscription required)

NALCO closed the trading day up by 1.5% on the BSE.

Oil and Gas sector closed on a mixed note with Castrol India and Gujarat State Petronet leading the gains. However,Indraprastha Gas and BPCL witnessed majority of the selling activity. According to a leading financial daily, GAIL Indiain collaboration with National Remote Sensing Centre (NRSC), a unit of Indian Space Research Organization (ISRO), has launched an innovative surveillance geo-portal called 'Bhuvan-GAIL portal' utilizing space technology for its pipeline application. Despite all challenges, GAIL has proved that the space technology can be efficiently used for monitoring the pipeline Right of Use.

GAIL will reportedly start live satellite monitoring of the pipeline Right of Use by January 2016 and is also looking for alternative methods like advance Unmanned Ariel Vehicle (UAV) which can also be integrated with this system. The company has over 13000 Km of Pipeline network wherein monthly monitoring of pipeline ROU at present is being carried out through Helicopter surveys.

The government has proposed a revenue sharing model for oil and gas exploration. Until now, the companies have been winning bids based on the contractor's commitment to carry out a minimum work program, as specified in various exploration phases. The new model has no concept of cost recovery first. The companies will need to indicate the amount of revenues they would be sharing with the government at each stage of production and in different price scenarios. In our recent edition of '5 Minute Wrap up', we outline how the new changes would be a boon for oil and gas companies.

Dr Reddy's shares slump 8.5%; m-cap dips Rs 4,746 crore

Shares of Dr Reddy's Laboratories on Thursday plunged by 8.5 percent, wiping out Rs 4,746 crore from market valuation, on worries that the USFDA might stop imports of the firm.

The stock fell on reports that the US Food and Drug Administration (USFDA) might withhold approval of the company's fresh drugs and stop import after it found several violations at three of its plants.

The stock tanked 8.21 percent to settle at Rs 3,110.35 on BSE. During the day, it slumped 9.99 percent to Rs 3,049.75.

At NSE, shares of the company dipped by 8.47 percent to end at Rs 3,100.75.

Led by the decline in the stock, the company's market valuation fell by Rs 4,746 crore to Rs 53,059 crore.

The stock was the worst performer on both the Sensex and the Nifty.

The regulator said it had found several violations with regard to current good manufacturing practices (CGMP) at three of its plants.

"At Dr Reddy's Laboratories' facilities, we identified significant deviations from CGMP for manufacturing of active pharmaceutical ingredients (APIs)... We found significant violations of CGMP regulations for finished pharmaceuticals," US FDA noted.

Meanwhile, in a post-market statement, Dr Reddy's Laboratories said the US FDA has extended the time-frame for replying to the warning letter issued to the company by about two weeks to December 7.

The company also said that it is in the process of preparing responses to the letter.

"The company is in the process of preparing a response to FDA's warning letter. The FDA has granted an extension until December 7, 2015 for the submission of the company's response to its warning letter," Dr Reddy's said in a regulatory filing.

The USFDA had earlier set a deadline for the company to respond within 15 days from the date of receiving the letter.

The FDA, which issued a warning letter to Dr Reddy's Laboratories on November 5 on three of its plants, said it found several violations with regard to current good manufacturing practices (CGMP).

Sensex breaks 2-day fall on GST Bill optimism, jumps 183 points.

 The benchmark BSE Sensex  bounced back almost 183 points to close at over two-week high of 25,958.63 as investors lapped up realty, auto and metal stocks amid hopes of a breakthrough on GST Bill in Parliament and mixed cues from global markets.

Pick-up in rollover of November derivative contracts to the December series helped.

The market barometer managed to snap the two-day falling streak in which it had lost almost 93 points as value-buying in several blue-chip stocks surfaced.

Sentiment got a big lift on hopes that the government might pull off a compromise on the crucial GST Bill in the Winter Session of Parliament, which began today, brokers said.

The BSE 30-share gauge ended 182.89 points, or 0.71 percent, higher at 25,958.63, a level last seen on November 9.

Among the 30-Sensex constituents, 22 shares ended higher.

The broad-based NSE Nifty also closed the day higher by 52.20 points, or 0.67 percent, at 7,883.80. During the day, it shuttled between 7,897.10 and 7,832.

Covering-up of outstanding short positions by traders in view of the November expiry supported the recovery.

Globally, premier stocks in Asia closed mixed with an upward bias while Europe was higher in late morning deals.

Back home, Tata Motors was back in demand and gained the most by rising 5.51 percent, followed by Sun Pharma (up 3.96 percent) after the company announced that it has shelved plans to invest in wind energy business in the US.

GAIL, ITC, M&M, RIL and Hero MotoCorp registered gains.

Hindalco and Tata Steel rose up to 1.76 percent as prices of base metal pack recovered at the London Metal Exchange. Vedanta held flat at Rs 90.30.

In contrast, Dr Reddy's was hardest hit, falling 8.21 percent on reports that US FDA might withhold approval of the company's fresh drugs and stop import if no corrective action is taken.

Among BSE sectoral indices, realty gained most followed by auto, metal, consumer durables and power.

The broader markets continued to shine on persistent buying by investors, with the small-cap index ending 0.45 percent higher while mid-cap rose 0.26 percent.

Foreign Portfolio Investors (FPIs) remained net sellers as they sold shares worth Rs 540.12 crore on Tuesday, as per provisional data. The markets were closed yesterday on account of Gurunanak Jayanthi.

Slum dwellers made company directors in Bank of Baroda forex scam: Report

New Delhi: Slum dwellers in Delhi were made pseudo entrepreneurs in the illicit money remittance case involving public lender Bank of Baroda, a daily newspaper has said.

 Bank of Baroda scam: DRI tells FIU to red-flag multiple forex transactions

As per a report in the Times of India, vegetable sellers, rikshaw pullers and even domestic maids were approached to become proxy company directors in the money transfer case.

It is alleged that Rs 6,172 crore black money was remitted from Bank of Baroda to Hong Kong camouflaged as payments for non-existent imports like cashew, pulses and rice.

Bank of Baroda scam: SFIO probes 10 companies

It is also alleged that amount was deposited in 59 accounts of the bank's Ashok Vihar branch (New Delhi) in cash as advance for import and the money was sent to some selected companies in Hong Kong.

 Black money SIT meets; asks agencies to check Bank of Baroda like cases

The branch opened 59 current accounts during the period May 2014 to June, 2016 through which large foreign exchange remittance were done. The TOI report said that “drivers, vendors etc were asked to just provide their voter ID cards, PAN cards for which they were offered Rs 10-15,000 per month.”

Gold tumbles Rs 100 on global cues, silver plunges too.

Taking weak cues from the global market and slack demand from jewellers, gold extended its slide for the second straight day as prices plunged Rs 100 to Rs 25,650 per 10 grams.

Silver slipped below the Rs 34,000-mark by falling Rs 225 to Rs 33,800 per kg on reduced offtake by industrial units and coin makers.

Bullion traders said a weakening trend in the global market amid growing confidence in the US Fed to raise interest next month helped the dollar cement gains, eroding demand for the precious metals.

Furthermore, a muted demand from jewellers and retailers pulled down gold prices, they said.

Globally, gold retreated as much as one percent to USD 1,067.58 an ounce in Singapore today while it ended 0.43 percent down at USD 1,077.20 in New York yesterday.

Silver slumped 1.5 percent to USD 13.97 an ounce in Singapore today, the lowest since august 2009.

In the national capital, gold of 99.9 percent and 99.5 percent purity slumped Rs 100 each to Rs 25,650 and Rs 25,500 per 10 grams, respectively. The precious metal had lost Rs 150 on Saturday.

Sovereign, however, remained flat at Rs 22,200 per piece of eight grams in scattered deals.

Following gold, silver ready cracked below the Rs 34,000 mark by declining Rs 225 to Rs 33,800 per kg and weekly-based delivery by Rs 290 to Rs 33,300 per kg.

Silver coins remained unchanged at Rs 48,000 for buying and Rs 49,000 for selling of 100 pieces.

IT and Auto Stocks Lead the Gains.

After opening firm, the Indian Indices continued to move northwards and are presently trading on a positive note. Sectoral indices are trading on a positive note with stocks from the IT, auto and banking sectors leading the gains.

The BSE-Sensex is trading up 354 points (up 1.4%) and the NSE-Nifty is trading up 103 points (up 1.3%). The S&P BSE Midcap index and the S&P BSE Smallcap index are also trading in the green, both up by 1.1%. Gold prices, per 10 grams, are trading at Rs 25,204 levels. Silver price, per kilogram is trading at Rs 33,695 levels. Crude Oil is trading at Rs 2,812 levels per barrel. The rupee is trading at 66.18 to the US$.

In a move to boost overseas shipments after a persistent decline in exports, the government has announced 3% interest subsidy scheme for exporters. The decision was confirmed after the government gave its approval for Interest Equalisation Scheme (earlier called Interest Subvention Scheme) on Pre and Post Shipment Rupee Export Credit with effect from 1st April, 2015 for five years.

The scheme would be available to all exports of Micro, Small and Medium Enterprises (MSME) and 416 tariff lines. However, the same would not be available to merchant exporters. The rate of interest equalisation is kept at 3% and it will be evaluated after three years.

Under the scheme, exporters can avail loans at affordable rates which in turn help them ship more goods to foreign markets. The financial implication of the proposed scheme is estimated to be in the range of Rs 25 billion to Rs 27 billion. However, the actual implication would depend on the level of exports and the claims filed by the exporters with the banks.

India's exports have remained in the negative territory for the 11th month in a row in October, registering a dip of 17.53% to US$21.35 billion due to a demand slowdown. With this move initiated by the government, one can hope for some relief in India's exports levels. The scheme can help the identified export sectors to be internationally competitive and achieve higher level of export performance.

Stocks in the automobile space are trading on a positive note with Hero MotoCorp and Bajaj Auto leading the gainers. As per a leading financial daily, Hero MotoCorp has clocked over 10 lakh units in retail sales during the festive season this year. The company reported that this landmark was achieved during the 35-day festive period starting with the Navratras. This records an 11% increase in retail sales for the company over the corresponding period last year.

As reported, the company's two new scooters, Maestro Edge and Duet, have been blockbusters. Further, there has also been a phenomenal demand for the new Splendor PRO. The company stated that these, along with the sales of Passion PRO and Glamour bikes, and the continuing popularity of Pleasure and Maestro scooters have resulted in this double digit growth.

Hero MotoCorp is the world's single largest two-wheeler motorcycle company. The company had recently announced its second quarter results of the financial year 2015-16 (2QFY16). It posted a 1.1% YoY fall in sales, while net profits rose by 1.1% YoY.

Indian Markets Trade on a Negative Note.

After opening flat, the Indian Indices have slipped in the red during the post noon trading session. Sectoral indices are trading on a mixed note with stocks from IT and metal sectors bearing the maximum brunt. Stocks in the consumer durables sector, however, are trading positively.

The BSE-Sensex is trading lower by 135 (down 0.5%) and the NSE-Nifty is trading down by 31 points (down 0.4%). TheBSE Mid Cap index is trading up 0.1% while the BSE Small Cap index is trading up by 0.2%. Gold prices, per 10 grams, are trading at Rs 25,092 levels. Silver price, per kilogram, is trading at Rs 33,734 levels. Crude oil is trading at Rs 2,716 per barrel. The rupee is trading at 66.15 to the US$.

Stocks in the pharma space are trading on a mixed note with Novartis and Sanofi India witnessing maximum selling pressure. As per an article in Business Standard, GlaxoSmithKline Pharmaceuticals (GSK Pharma) has sharpened focus on its vaccine business with a price cut in its top-selling pneumonia vaccine. Moreover, the company has also lined up two product launches for next year.

Last week, the company cut the price of its pneumococcal conjugate vaccine (Synflorix) by 40% to Rs 1,400 per vial. This move was aimed at increasing the product affordability and widens its market share. As regards new product launches, the company has sought regulatory approval to launch two new pediatric vaccines in India.

GSK Pharma's existing vaccines portfolio contributes Rs 3-3.5 billion in revenues. The existing portfolio includes vaccines for influenza, chickenpox and Hepatitis A and B. This is said to be about 20% of the overall revenue of the company The company will now get access to Novartis' vaccine business, especially on rabies and meningitis. GSK Pharma completed the acquisition of Novartis' vaccine business and the sale of its oncology business to the Swiss drug major in a global deal in September. Following the deal, GSK Pharma expanded the vaccine portfolio and absorbed around 120 employees from Novartis to ramp up its sales in India.

Stock of GSK Pharma is currently trading down by 0.4% on the BSE.

Mining stocks are also trading mixed with Hindustan Zinc and MMTC Ltd being the major losers. As per a leading financial daily, Coal India's arm- Western Coalfields- has finalized a capital investment plan of Rs 62.8 billion till 2019-20 in a phased manner. Of the total, the company will be investing Rs 34 billion on land acquisition, while Rs 20 billion will be invested on installation of plant and machinery. The company has also marked another Rs 2 billion for exploration.

Furthermore, the company is going to spend about Rs 8.5 billion on land acquisition during the current fiscal for opening new mines and Rs 3.5 billion on plant and machinery this year.

Coal India is the world's largest coal mining company. The company in its results for the quarter ended September 30, 2015 has reported 16% YoY increase in its net profit at Rs 25 billion. The consolidated net sales of the company registered an increase of 8% YoY at Rs 169 billion. The earnings growth was mainly aided by higher production and better offtake during the period. Coal production for the company during the quarter stood at 108.20 million tonne (MT) as against 102.42 MT reported during the same period last year.

Lastly, eight investment banks have submitted bids to manage the 10% stake divestment in the company. The stake sale is a part of the government's aim to raise Rs 695 billion by March by selling minority stakes in government-owned companies. The stake in Coal India is valued at about US$ 3.2 billion at the current stock price.

Presently the stock of Coal India is trading up by 1.5%.

Sensex rises for second day, up 104 points on strong global cues.

Rising for the second day in a row, the benchmark BSE Sensex Tuesday jumped over 104 points to 25,864.47, helped by value-buying in beaten-down stocks and a firm global trend after concerns about impact of Paris attacks receded.

Covering-up of short positions by speculators added to the gains, traders said.

Sentiment took a turn for the better after Asian and European stocks rose across the board following a strong close on Wall Street overnight as investors covered up losses following last week's deadly Paris terror attacks.

Participants, however, remained cautious in view of muted September earnings by several blue-chip companies while foreign institutional investors (FIIs) have been net sellers so far this month.

Marked by volatility, the 30-share Sensex after shuttling between 25,948.20 and 25,732.79, finally settled 104.37 points, or 0.41 percent, higher at 25,864.47.

The gauge had gained 149.57 points in the previous session.

The 50-share NSE Nifty closed at 7,837.55, up 30.95 points, or 0.40 percent. Intra-day, it hovered between 7,860.45 and 7,793.

GAIL was among the stars as it closed up 4.04 percent at Rs 306.55, followed by ITC (2.91 percent) at Rs 348.15.

The country's biggest private lender, ICICI Bank, after rising over 2 percent ended 0.06 percent higher after the company said it will sell 6 percent stake in its life insurance arm, ICICI Prudential Life, for Rs 1,950 crore.

Gains in Vedanta Ltd, Tata Steel, Hindalco, HDFC Ltd, Sun Pharma, Tata Motors, Hindustan Unilever, ONGC, Cipla, M&M, NTPC and TCS too supported the upside.

Among the 30-Sensex constituents, 20 stocks ended with gains while 10 led by Infosys, Dr Reddy's, Axis Bank, Hero MotoCorp, Bajaj Auto, RIL, Lupin and L&T fell.

Sector-wise, BSE FMCG index gained most by rising 2.17 percent, followed by metal (1.03 percent), healthcare (0.79 percent), auto (0.55 percent) and power (0.34 percent).

The broader markets too displayed a firm trend as investors strengthened their bets as the BSE small-cap index rose 0.47 percent and mid-cap gained 0.31 percent.

Sugar stocks remained in the spotlight for yet another session amid a global rally in sugar prices.

In the sugar segment, Shree Renuka Sugars, EID Parry, Bajaj Hindusthan and Mawana Sugar soared up to 19.24 percent.

Meanwhile, foreign investors sold shares worth Rs 1,051.26 crore yesterday, as per provisional data.

Gold price at 4-month low, tumbles Rs 450 to Rs 25,700 per 10 grams

Gold prices on Tuesday plunged by Rs 450 to trade at almost four-month low of Rs 25,700 per 10 grams at the bullion market, tracking a weak global trend amid subdued demand from jewellers and retailers.

Silver also fell sharply by Rs 500 to Rs 34,100 per kg on reduced offtake by industrial users and coin makers.

Apart from slackened demand from jewellers and retailers, a weak global trend where gold traded near the lowest level in over five years on expectations that the US Federal Reserve will soon hike interest rates, has cut demand for the precious metal as a safe-haven, leading to fall in prices.

Gold in Singapore, which normally determines price trend on the domestic front, dropped by 0.4 percent, to USD 1,078.07 an ounce today, while it ended 0.17 percent down at USD 1,082.10 an ounce in New York in yesterday's trade.

In the national capital, gold of 99.9 and 99.5 percent purity tumbled by Rs 450 each to Rs 25,700 and Rs 25,550 per 10 grams, respectively, a level last seen on July 20. It had gained Rs 235 in yesterday's trade.

Sovereign, however, continued to be asked at previous level of Rs 22,200 per piece of eight grams.

In tune with gold, silver ready fell by Rs 500 to Rs 34,100 per kg and weekly-based delivery by Rs 620 to Rs 33,640 per kg.

Meanwhile, silver coins remained flat at Rs 48,000 for buying and Rs 49,000 for selling of 100 pieces.

Rupee down 9 paise to 66.19 against dollar in early trade.

The rupee weakened by 9 paise to 66.19 against the dollar in early trade, snapping its two-day winning run, on fresh demand for the US unit from importers.

Besides, the dollar's gain against euro in global market after the Paris attack added to the caution on the common currency and a lower opening in the domestic equity market put pressure on the rupee, forex dealers said.

The rupee had gained 21 paise to end at 66.10 against the US dollar in Friday's trade on heavy selling of the American currency from banks and exporters amid weak domestic macroeconomic data and fall in equities.

Meanwhile, the BSE Sensex dropped by 118.88 points or 0.46 percent to 25,491.65 in early trade.

A positive start to the week.

After opening the trading session on a negative note, the Indian equity markets gathered steam as the day progressed and finished the day on a strong note. While the BSE-Sensex today closed higher by 150 points, the NSE-Nifty closed higher by 44 points. Smallcaps and Midcaps too were in demand today with both the BSE Mid Cap and BSE Small Capindices closing higher by 0.2% and 0.5% respectively. Gains were largely seen in banking and capital goods sector.

Asian markets finished mixed as of the most recent closing prices. The Shanghai Composite gained 0.73%, while the Hang Seng led the Nikkei 225 lower. They fell 1.72% and 1.04% respectively. European markets are mixed today. The FTSE 100 is up 0.34%, while the CAC 40 gained 0.18%. The DAX is down 0.08%. The rupee was trading at 66.17 against the US$ in the afternoon session.

According to a leading economic daily, the Environment Ministry has decided to grant environmental clearance toTata Steel for expansion as well as setting up of two units at its Joda plant in Keonjhar district, Odisha based on the recommendation of the Expert Appraisal Committee. Reportedly, the total cost of the project is estimated to be around Rs 1.85 bn providing employment to about 2,000 people.

The company has received clearance for expansion of Fe-Mn (Ferro Manganese) alloy plant from 0.0504 million tonnes per annum (MTPA) to 0.06 MTPA. Besides, the company has also received nod for addition of 0.06 MTPA silico-manganese plant and 0.05 MTPA manganese sinter plant in existing Ferro alloy plant at Joda, Koenjhar district in Odisha.

The approval has been given with some specific conditions including developing green belt in 33% of plant area and maintaining of gaseous emissions within permissible limits among others. The company is expanding the Ferro alloys production keeping in view the country's rising steel demand, which is expected to touch 193 MT in 2020.

Tata Steel recently declared its results for the quarter ended September 2015. Market conditions in Europe significantly worsened in the quarter as UK continues to witness surge in imports and declining competitiveness of the manufacturing sector due to weak industrial demand, strengthening of the sterling and adverse regulatory and business conditions. Income from operations declined by 18.1% YoY and other operating income also declined by 12.3%. Here is our detailed analysis of the results. (Subscription required)

According to a leading financial daily, Sun Pharmaceutical Industries is believed to be in talks with Swiss pharmaceutical giant Novartis to acquire its branded drug portfolio in Japan. If the deal happens to go through, it would be Sun's second association with Japan. It had acquired Ranbaxy Laboratories from Japan's Daiichi Sankyo last year.

Reportedly, the deal could be valued at US$ 300-400 million and might be concluded by as early as December. The deal will enable Sun to gain market access in the world's second largest pharma market. It is to be noted that Sun Pharma is India's largest drug company by sales and it generates half its consolidated revenue from the US market.

The scrip of Sun Pharmaceuticals Limited finished the trading day on negative note (down 0.2%) on the BSE.