The Mumbai Metropolitan Region Development Authority (MMRDA) will be calling for fresh bids for the sale of transferable development rights (TDR) generated from slum rehabilitation projects at Nirlon and Nesco plots in Goregaon and Ajgaonkar in Jogeshwari, as the proposal floated in June failed due to differences over pricing between the bidders and MMRDA.

A dozen real estate companies in Mumbai, including Oberoi Realty, had bid for TDR for 3.22 lakh square feet that was expected to fetch MMRDA about Rs 150 crore.

A senior official from MMRDA told FE that the planning authority will be coming out with fresh bids again. “There was a condition in the auction process that whatever is the highest quoted rate for the TDR, the other developers will have to match that rate for the space that they desire to take. However, other developers did not agree to the rate that was quoted. Also, the highest bidder did not fulfill the conditions in the given time frame, and we had to call off the process”.

In a ruling on Wednesday the Supreme Court of India banned registration of diesel cars and SUVs larger than 2000cc in the National Capital Region (NCR) until 31 March 2016. This is to address concerns of high air pollution in Delhi. The decision will affect M&M as 2% of its auto sector volumes in FY15 came from vehicles that would be covered by the ban. The auto sector contributed ~60% of M&M’s standalone revenues in FY15, thus the revenue impact we estimate will be ~1.2%.

However, larger concerns are which way the policy and market fuel preferences will head. Currently the diesel vehicle mix in India stands at 42%. For M&M nearly all its volume is from diesel vehicles currently. As per the company, there is no particulate matter (PM) emission difference between a 2L or 2.2L engine. Thus, we believe there needs to be a holistic and multi-pronged approach to solving this problem.

With the stock is already down 5% on this news today and core auto business trading at ~11.3x FY17F EPS for M&M+MVML (Rs 69.9) we believe that above concerns are priced in. We maintain our Buy rating on the stock.

However, the stock is likely to remain volatile in the near term as further news emerges on this topic. The company will present its detailed case when the court re-convenes on January 5, 2016 after which more updates may be available.

In a year when foreign inflows into Indian equities were at the lowest level since 2011 and the Sensex has had a poor show in four years, 20 BSE-listed companies — having market value of at least Rs 1,000 crore — have bucked the trend by yielding at least two-fold returns in each of the last two years.

The companies include Welspun India, KRBL, Sequent Scientific, Indo Count Ind, Force Motors, Ricoh India, Can Fin Homes, Gayatri Projects, and JMT Auto, among others. Shares of these firms have yielded returns in the range of 5-29 times since the end of CY13, Bloomberg data showed.

One-third of these 20 multi-bagger stocks belong to the BSE 500 universe, with four — KRBL, Can Fin Homes, Gayatri Project and Aegis Logistics — having touched their all-time highs this quarter.

In contrast, the Sensex has fallen 6.2% so far this calendar  year after rising 30% last year. Even foreign portfolio investments have dissipated through the year with net inflows now at $2.7 billion after inflows peaked at $8.56 billion in April. Overseas funds have invested more than $16 billion in each of the last three years, Bloomberg data showed.

Data showed that a majority of these wealth-creating stocks belonged to textiles, pharmaceuticals, and automobile sectors. Auto companies dominate the list with 40% presence, companies from construction and software also featured in the list, data showed.

Force Motors, whose shares rose nearly three times last year, further doubled in value in 2015. The stock touched record high in October this year.

Indo Count Industries tops the list as its shares grew 29 times in the last two years, driven by strong business growth in the last three quarters. The company’s market capitalisation has increased to R4,327 crore from R135.19 crore as on quarter ending December 2013.

Experts said that favourable government policies and low cost have made some domestic textile companies more competitive in the export market, which further benefitted these textile companies due to a weak rupee.

JMT Auto as well as Gayatri Projects’ shares have grown four-fold each. “Road project awards have gathered momentum in FY16, with $5.7 billion of contracts awarded by NHAI till September 2015.

Tata Power share price gained over 4 per cent intra-day on Thursday after the company announced the completion of uprating 220kV line

Tata Power share price gained over 4 per cent intra-day on Thursday after the company announced the completion of uprating 220kV line that relieve critical loading of the Kalwa-Salsette lines and will enhance firm transmission capacity for bringing power from outside to Mumbai.

At 3.01 pm, the share price of Tata Power was trading 3.95 per cent up at Rs 64.50. The scrip opened at Rs 62.50 and had touched a high and low of Rs 64.75 and Rs 62.25, respectively in trade so far. Sensex was up 1.06 per cent at 25,764.52.

In a release, the power distributor said, “The acute shortage of power has made it necessary for power to be imported from outside the city. The transmission network, especially 220 KV Kalwa-Salsette lines, is critically loaded most of the time due to reduction in embedded generation in Mumbai. To reduce the critical loading of these lines, Tata Power had put a proposal to Maharashtra State Load Despatch Centre and State Transmission Utility for augmenting transmission capacity between Kalwa and Salsette.”

The BSE group ‘A’ stock of face value Rs 1 has touched a 52 week high of Rs 92.40 on 02-Feb-2015 and a 52 week low of Rs 55.55 on 07-Sep-2015.

Last one week high and low of the scrip stood at Rs 64.75 and Rs 61 respectively. The current market cap of the company is Rs 17,269.06 crore.

The promoters holding in the company stood at 33.02 per cent while institutions and non-institutions held 50.98 per cent and 16 per cent respectively.

The BSE Sensex opened 102.26 points up at 25,596.63, while NSE Nifty50 index opened 32.15 points up at 7,783.05. (Photo: Reuters)

10.23 am: Sensex pared most of its initial gains and was trading 10.98 points up at 25,505. Nifty was up 6.30 points at 7,757.20

9.55 am: The rupee appreciated by 13 paise at 66.60 against the US dollar in early trade today on increased selling of the American currency by exporters even as the US Federal Reserve raised interest rates for the first time in nearly a decade. Nifty was up 16 points at 7,767.

9.45 am: Morgan Stanley upgraded SKS Microfinance to over-weight (OW) from equa-weight (EW) on high earning visibility. The share price of SKS Microfinance was trading 1.17 per cent up at Rs 472.50.

9.41 am: Nifty Bank slipped over 85 points from its day’s high. The index was trading 0.52 per cent up at 16,665.40. Nifty Bank opened at 16,704.05 and had touched a high and low of 16,751.85 and 16657.70, respectively, in trade so far. Nifty 50 index was up 0.29 per cent at 7,773.45.

9.35 am: The BSE Sensex slipped over 100 points from day’s high. Sensex was up 64.37 points at 25,558.74. The index had touched a high and low of 25,659.32 and 25,551.79, respectively, in trade so far.

9.30 am: On the US Fed rate hike, Nikhil Kamath, director, trading & risk, Zerodha said, “With the increase in rates, the Fed has finally aligned its intent and action. I think they have made it amply clear that further rate hikes would be ‘gradual’ and well spaced, which probably means to say we may get to see another marginal uptick in rates toward the end of 2016. The markets have already factored in yesterday’s hike, and I suppose the participants would be happy that the event is through. We may even witness a rally in the market. The focus in now back on domestic macro factors.”

9.26 am: Narayana Hrudayalaya has raised Rs 183.93 crore by allotting shares to anchor investors in a pre-initial public offering (IPO) placement. The three-day public offering opens from today and the minimum bid lot is fixed at 60 equity shares per bid. Axis Capital, IDFC Securities and Jefferies India are the book running lead managers for the issue. Read: Narayana Hrudayalaya IPO hits market today, should you invest?

9.18 am: NSE Nifty 50 index hits 7,800 for the first time since December 7. Sensex was up 103 points at 25,597.41. In the 50-share index, PNB, GAIL, SBIN, NTPC and Sun Pharma were up between 1.51 per cent and 1.80 per cent. On the other hand, Cairn India, Mahindra and Mahindra, HUL and HDFC slid between 0.20 per cent and 2.05 per cent.

9.15 am: Domestic equity markets opened in sync with the gains in the other global markets, after the US Federal Reserve raised interest rates for the first time in almost a decade and Fed Chair Janet Yellen emphasizing that further tightening would be slow. The BSE Sensex opened 102.26 points up at 25,596.63, while NSE Nifty50 index opened 32.15 points up at 7,783.05.

The US markets rallied in last session after Fed announced a 25 basis points interest rate hike on conclusion of its two days meeting, with major averages extending the upward move seen over the two previous sessions. The Fed said monetary policy remains accommodative even after the rate hike, which marked the first rate increase since 2006. The Asian markets have got an all green start, led by the Japanese market which is up by over 2 percent in early deals on yen weakness against dollar.

On Wall Street, the Dow ended Wednesday with gains of 1.28 per cent, while the S&P 500 rose 1.45 per cent and the Nasdaq 1.52 per cent.

Back home, domestic equity markets closed in green on Wednesday on account of buying in front line blue chip stocks. Sensex closed 173.93 points up at 25,494.37, while Nifty closed 50 points up at 7,750.90.

(With agency inputs)