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Dr Reddy’s shares fall as its arm recalls Amlodipine besylate and Atorvastatin calcium tablets in US (07-09-2015)

SENSEX

Dr Reddy’s Laboratories, Inc, the US-based arm of Hyderabad-based firm is recalling the drug for being “sub-potent”. (PTI)

Share price of Dr Reddy’s Laboratories fell over a per cent in the afternoon trade on Monday on reports that the drug major is recalling over 55,000 bottles of Amlodipine besylate and Atorvastatin calcium tablets, used to treat high blood pressure and cholesterol related diseases, in the US market.

At 12.40 pm, Dr Reddy’s Laboratories shares were trading 1.15 per cent lower at Rs 4,009.50 apiece on BSE. It opened at Rs 4,071 and had touched a high and low of Rs 4,095.60 and Rs 3,991.10, respectively, in trade so far. Sensex was flat at 25,179.

According to the US Food and Drug Administration (USFDA), Dr Reddy’s Laboratories, Inc, the US-based arm of Hyderabad-based firm is recalling the drug for being “sub-potent”.

The tablets being recalled by the company have been manufactured at its Bachupally facility, near Hyderabad and distributed in the US by its subsidiary, Dr Reddy’s Laboratories, Inc. The recall was initiated by the company on August 13 this year.

On a year-to-date basis, the share price of Dr Reddy’s Laboratories jumped 26.30 per cent to Rs 4,056.15 on September 4. The BSE Sensex slid 8.38 per cent during the same period.

For the quarter ended June 2015, the company posted a consolidated net profit of Rs 625.65 crore, up 13.67 per cent, against Rs 550.39 crore in the corresponding quarter a year ago.

(With inputs from PTI)

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Australian partner UGL mulls exiting Texmaco Rail & Engineering joint venture (07-09-2015)

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Texmaco and UGL decided to jointly establish a manufacturing facility at Texmaco’s facility at Belgharia, in Kolkata. Texmaco UGL commenced commercial production in 2013. (Reuters)

Rail freight car manufacturer and engineering services firm Texmaco Rail & Engineering Ltd today said its joint venture partner Australia-based UGL Ltd has initiated a discussion to exit from the JV due to drying up of orders in the Australian market.

“In view of downturn in locomotive sales in Australia impacting throughput volume of UGL, the JV facility, Texmaco Rail Pvt Ltd, which was set up in India primarily for catering to the requirements of Australian market through UGL, is starved of orders and not able to operate to its potential,” Texmaco Rail & Engineering Ltd said in a BSE filing.

It further said: “In view of the above, UGL has initiated discussion about the future of the project including their view to exit from the joint venture. The matter is under active consideration.”

Texmaco Rail & Engineering Ltd added that there will be “no material impact on the company as the unit was commission on April 1, 2013 and in view of the market conditions in Australia, the unit has been operating below capacity.”

In December 2010, UGL Ltd announced that it has formalised a joint venture agreement with Texmaco Rail & Engineering Ltd.

Texmaco and UGL decided to jointly establish a manufacturing facility at Texmaco’s facility at Belgharia, in Kolkata. Texmaco UGL commenced commercial production in 2013.

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IndusInd Bank shares gain over 2% as RBI allows FIIs to buy shares (07-09-2015)

Sensex and Nifty

Shares of IndusInd Bank today surged over 2 per cent in morning trade on the bourses after the Reserve Bank on Friday removed the lender from its caution list. (PTI)

Shares of IndusInd Bank on Monday jumped over 2 per cent in morning trade on the bourses after the Reserve Bank of India (RBI) on Friday removed the lender from its caution list.

RBI in a release on September 4 said it has removed IndusInd Bank from its caution list, allowing foreign investors to buy further shares in the lender.

“The restrictions placed on the purchase of shares of the above bank are withdrawn with immediate effect,” RBI said adding that the shares of IndusInd Bank can now be purchased through the primary market and stock exchanges.

Following which, shares of the company opened on a bullish note, in an otherwise volatile market, and surged 2.37 per cent to an early high of Rs 860.

Similar movement was seen on the National Stock Exchange as well, where the stock opened at Rs 850, then jumped 2.23 per cent to an early high of Rs 859.60.

The surge in the counter assumes significance as the broader market was trading in the negative territory. At 1130 hours the 30-share benchmark index was trading at 25,152.84, down 49.06 points.
Under the Portfolio Investment Scheme (PIS), RBI keeps a tab on foreign shareholding of Indian firms in accordance with the stipulated cap.

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Natco Pharma shares jump 2% on RBI approval to hike FIIs limit (07-09-2015)

Natco Pharma

RBI allowed FIIs to buy up to 31.50 per cent of the paid up capital of Natco Pharma. Earlier, the FII limit in the company was 24 per cent. (Photo: PTI)

Natco Pharma shares gained as much as 2 per cent in the early trade on Monday after the Reserve Bank of India (RBI) allowed Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) to buy up to 31.50 per cent of the paid up capital of Natco Pharma. Earlier, the FII limit in the company was 24 per cent.

At 10.15 am, Natco Pharma was trading 0.80 per cent higher at Rs 2,268 on BSE. It opened at Rs 2,299 and had touched a high and low of Rs 2,299 and Rs 2,254, respectively, in trade so far. Sensex was down 0.30 per cent at 25,125.21.

On NSE, Natco Pharma was trading 0.57 per cent higher at Rs 2,267.50. Nifty was down 0.15 per cent at 7,643.65.

The company has passed resolutions at its board of directors’ level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs.

For the quarter ended June 2015, the company posted a consolidated net profit of Rs 28.23 crore, down 15.63 per cent, against Rs 33.46 crore in the corresponding quarter a year ago.

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Kotak Mahindra Mutual Fund introduces Capital Protection Oriented Scheme-Series 1 (07-09-2015)

kotak mahindra mutual fund

The scheme’s performance will be benchmarked against customised index–CRISIL Composite Bond Fund Index (80%) and CNX Nifty (20%) and its fund managers are Abhishek Bisen and Deepak Gupta. (Photo: Reuters)

Kotak Mahindra Mutual Fund launched the Kotak Capital Protection Oriented Scheme-Series 1, a close ended income scheme. The new fund offer (NFO) opens for subscription on September 7 and will close on September 21, 2015. No entry load and exit load will be applicable for the scheme. The minimum subscription amount is Rs 5,000.

The scheme’s performance will be benchmarked against customised index–CRISIL Composite Bond Fund Index (80%) and CNX Nifty (20%) and its fund managers are Abhishek Bisen and Deepak Gupta.

The investment objective of the scheme is to seek capital protection by investing a portion of the portfolio in highest rated debt securities and money market instruments and also to provide capital appreciation by investing the balance in equity and equity related securities.

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Stocks that are in focus today: Idea Cellular, Rajesh Exports and more (07-09-2015)

stocks in focus

The BSE Sensex and NSE Nifty lost 562.88 points and 167.95 points at 25,201.90 and 7655.05, respectively on Friday. (Reuters)

The BSE Sensex and NSE Nifty opened on a positive note on Monday despite weak global trends. At 9.29 am, Sensex was up 174.18 points at 25,376.08. Similarly, Nifty was up 40.45 points at 7,695.50 during the same time.

The BSE Sensex and NSE Nifty lost 562.88 points and 167.95 points at 25,201.90 and 7655.05, respectively on Friday.

Below are the stocks that are likely to be in focus today:

Rajesh Exports: Rajesh Exports on Friday had said that it has bagged an export order worth Rs 1,123 crore from Singapore for gold and diamond studded jewellery.

ONGC: ONGC Videsh, the overseas arm of state explorer Oil and Natural Gas Corp (ONGC), has made a gain of about Rs 700 crore on a Euro loan it had raised to finance its Mozambique acquisition.

Dr Reddy’s Laboratories: The stocks of the pharma company will be in focus as the company on Friday announced that it has entered into the hair serum market with the launch of Mintop Pro – Procapil Hair Therapy.

Idea Cellular: Idea Cellular is seeking shareholders nod to raise up to Rs 10,000 crore through issue of non-convertible securities on private placement basis in one or more tranches. It would seek shareholders approval at its annual general meeting to be held onSeptember 28.

Force Motors: Pune-based commercial vehicle maker, has reported the production, sales and export of the products manufactured by the company during the month of August 2015. The company’s production of Small Commercial Vehicles (SCV), Light Commercial Vehicles (LCV), Utility Vehicles & Sports Utility Vehicles (UV & SUV) and Tractors stood at 252 units, 1295 units, 629 units and 400 units respectively. The company’s domestic sales for SCV, LCV, UV & SUV and Tractor stood at 10 units, 1293 units, 806 units and 272 units respectively, while the company has exported 210 units of SCV and 14 units of LCV in month of August 2015.

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LIVE: Sensex up over 100 points, Nifty nears 7,700; Tata Motors gains over 2% (07-09-2015)

Sensex Nifty BSE NSE

(Photo: PTI)

 

9.21 am: Sensex was up 89.85 points at 25,291.75. In the 30-share index, Tata Motors and HDFC were trading 2.40 per cent and 1.55 per cent higher at Rs 330.60 and 1159.75, respectively.

Domestic equity markets opened on a positive note on Monday. The BSE Sensex and NSE Nifty opened 101.08 points and 30.08 points higher at 25,302.98 and 7,685.85, respectively.

Shares of realty, power and oil & gas were trading in red in the early trade.

The BSE Sensex and NSE Nifty lost 562.88 points and 167.95 points at 25,201.90 and 7655.05, respectively, on Friday.

Global Markets

New York: US stock indexes dropped more than 1 per cent on Friday after a mixed August jobs report did little to quell investor uncertainty about whether the Federal

London: Britain’s top share index fell sharply on Friday, following the release of US jobs data that suggested to some that a Federal Reserve interest rate hike in September is still a possibility.

Tokyo: Japanese stocks bounced from seven-month lows on Monday in choppy trade, helped by gains in the Chinese market after regulators sought to calm sentiment.

Hong Kong: The Hang Seng Index was down 0.12 per cent.

(With inputs from agencies)

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LIVE: Sensex up over 100 points, Nifty nears 7,700; Tata Motors gains over 2% (07-09-2015)

Sensex Nifty BSE NSE

(Photo: PTI)

 

9.21 am: Sensex was up 89.85 points at 25,291.75. In the 30-share index, Tata Motors and HDFC were trading 2.40 per cent and 1.55 per cent higher at Rs 330.60 and 1159.75, respectively.

Domestic equity markets opened on a positive note on Monday. The BSE Sensex and NSE Nifty opened 101.08 points and 30.08 points higher at 25,302.98 and 7,685.85, respectively.

Shares of realty, power and oil & gas were trading in red in the early trade.

The BSE Sensex and NSE Nifty lost 562.88 points and 167.95 points at 25,201.90 and 7655.05, respectively, on Friday.

Global Markets

New York: US stock indexes dropped more than 1 per cent on Friday after a mixed August jobs report did little to quell investor uncertainty about whether the Federal

London: Britain’s top share index fell sharply on Friday, following the release of US jobs data that suggested to some that a Federal Reserve interest rate hike in September is still a possibility.

Tokyo: Japanese stocks bounced from seven-month lows on Monday in choppy trade, helped by gains in the Chinese market after regulators sought to calm sentiment.

Hong Kong: The Hang Seng Index was down 0.12 per cent.

(With inputs from agencies)

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Sensex, Nifty may open in red tracking weak global cues (07-09-2015)

Sensex

The BSE Sensex and NSE Nifty are likely to open in red tracking SGX Nifty and mixed Asian markets. (PTI)

The BSE Sensex and NSE Nifty are likely to open in red on Monday tracking SGX Nifty and mixed Asian markets.

At 8.20 am (IST), Nikkei and Hang Seng were down 0.36 per cent and 0.47 per cent at 17,727.90 and 20,742.90 while Shanghai Composite Index was up 0.20 per cent at 3,164.86.

Asian stocks weakened on Monday, taking early cues from Wall Street’s slide after the August jobs report failed to give a clear view on the Federal Reserve’s interest rate hike, while participants also nervously awaited the restart of Chinese financial markets following the long weekend. Dow Jones Industrial Average slid 1.66 per cent on Friday.

China major stock indices rose in early trading on Monday following remarks by regulators to calm the market. The China Securities Regulatory Commission said in a post on its official microblog late on Sunday that markets were more stable and risks associated with high levels of leverage have eased following a period of high volatility.

Back home, the BSE Sensex and NSE Nifty lost 562.88 points and 167.95 points at 25,201.90 and 7655.05, respectively, on Friday.

(With inputs from agencies)

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All leading MFs exposed to debt with low ratings (07-09-2015)

mutual fund

The lure of higher and better returns amid competition to outperform the competitor is visible across the sector.

While JP Morgan AMC is facing the heat for investing around Rs 200 crore into AA rated bonds of Amtek Auto that became illiquid over the last few months and forced the fund house to restrict redemptions, a look at the debt investment portfolio across asset management companies reveals that all such firms have significant exposure to debt instruments of private sector companies that carry a credit rating lower than the highest AAA rating or A1+ rating.

The lure of higher and better returns amid competition to outperform the competitor is visible across the sector. A look at the debt portfolio (sourced from ICRA MFI explorer) of the top 10 asset management companies at the end of July 2015 (by size of their assets under management) shows varied strategies adopted by the fund houses. While IDFC Mutual Fund and SBI MF have more than 90 per cent of their AUM parked in sovereign bonds, AAA, A1+ rated bonds or as cash, Franklin Templeton has the highest percentage of its debt AUM parked in lower rated instruments. The fund house has less than 35 per cent of its total debt AUM parked into sovereign bonds or private sector bonds rated lower than AAA or A1+.

Among top ten players, the percentage of highest rated safe instruments along with cash stood at 91.5 per cent for IDFC Mutual Fund and 90.3 per cent for SBI but that for Franklin Templeton was lowest at 33.5 per cent. The numbers also stood high for Kotak Mahindra AMC and Reliance Mutual Fund as their holding in safest instruments stood at 84.3 and 82.9 per cent, respectively.

asset-management-company

Experts believe that it is more of a strategy than anything else but in a volatile market it may pose some risk. “Franklin Templeton focuses mostly on retail money and hence they don’t have to deal much with daily entry and exits as some other large fund houses that focus on getting institutional money. As a conscious strategy they invest in lesser rated papers and benefit from their upgrades at a later date. But in times like this when investors are concerned, while credit risk may not come into play, liquidity risk may come into play,” said the debt CIO of a leading fund house, who did not wish to be identified.

He further added that many large fund houses have a relatively high liquid AUM and thus they need to have highly liquid portfolios which is why they have a higher percentage of highest rated papers and investors should not be too worried about the presence of lower rated instruments in the portfolio.

However, financial advisors say that retail investors should not worry too much and should not run for redemptions as there is no credit risk in the market. “If they start redeeming their investments in apprehension it may however lead to a liquidity issue. They must hold the investment for the term they had planned and not look at early redemption citing the issue of two debt funds at JP Morgan AMC,” said a Mumbai-based financial planner.

Redemption cap: Sebi seeks details from JP Morgan

New Delhi: About a week after JP Morgan AMC restricted redemption in two of its debt schemes — Short Term Income Fund and India Treasury Fund — the capital markets regulator, Securities and Exchange Board of India (Sebi) is learnt to have initiated its investigation into the matter.

A source close to the development said that Sebi has asked the fund house, through a letter, if they had taken permission of the board of trustees before imposing the restriction on redemption .

“The norms prescribe that in order to impose any such restriction, the fund house has to first seek an approval from the board of trustees of the AMC and so Sebi is now looking if such an approval was taken in this case,” said the source.

While the fund house had allowed redemptions from the two troubled schemes till August 27 and three large corporate were allowed to exit till then, the restriction was imposed on Friday (August 28) and several large corporates including ITC, promoters of HCL Tech and Hero Motocorp were not allowed to exit on Friday. The source also confirmed that JP Morgan had informed the regulator about the imposition of restriction on redemption in the evening on August 28.

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