TVS Motor Company share price surged over 14 per cent on Tuesday after the company reported 22.78 per cent year-on-year (yoy) rise in its net profit figures for the quarter ended September 30, 2015. (Photo: Reuters)

TVS Motor Company share price surged over 14 per cent on Tuesday after the company reported 22.78 per cent year-on-year (yoy) rise in its net profit figures for the quarter ended September 30, 2015.

At 3.01 pm, the share price of the company was up 14.03 per cent at Rs 278.30. The scrip opened at Rs 244.05 and had touched a high and low of Rs 282.65 and Rs 241, resepectively, in trade so far.

The company posted net profit of Rs 116.41 crore for the quarter under review against Rs 94.81 crore in the same quarter last year.

Total Income of the company increased from Rs 2,673.58 crore for the quarter ended September 30, 2014 to Rs 2,886.45 crore for the quarter ended September 30, 2015.

Bharat Gianani, sr research analyst, automobile, Angel Broking, said, “TVS Motor 2QFY2016 results were significantly ahead of our estimates owing to robust operating performance. The comany surprised positively reporting highest ever operating margins of 7.4 per cent in about five years. Revenues grew 8 per cent yoy to Rs 2,881 cr coming marginally ahead of our estimates. While the volumes were flat, the realisation per vehicle grew by about 7 per cent coming ahead of our estimates.”

In the past one year, the share price of the company fell 4.50 per cent to Rs 244.05 on October 26 while BSE Sensex gained 2.28 per cent during the same period.

Security Exchanges Board of India (SEBI) is in process of allowing participation of Foreign Portfolio Investors (FPIs) in Indian commodity markets. (PTI)

Security Exchanges Board of India(SEBI) is in process of allowing participation of Foreign Portfolio Investors(FPIs) in Indian commodity markets. Speaking at a conference organised by  (FICCI) U K Sinha, Chairman SEBI said the regulator will come out with new guidelines in this regard in the next few months. The announcement comes within a month after commodities regulatory body Forward Markets Commission (FMC) was merged with SEBI.

During the event Sinha also said that the market regulator will come out with new guidelines for the credit rating agencies to reduce risks for debt mutual funds adding that the ratings agencies shouldn’t suspend ratings of a company without a proper explanation.“In certain cases, paper being rated as investment grade the credit rating was suddenly suspended; that must be explained to investors and to the public at large. We also look whether there were any conflicts of interest in the ratings process.  ” he said. He also indicated that SEBI would also look at whether there were any conflicts of interest in the ratings process.

The regulator’s comments come amid concerns over corporate debt investments by asset managers after a unit of JP Morgan in India suffered significant market losses in late August when auto-parts maker Amtek Auto’s debt was downgraded by rating agencies.

At the event Sinha also announced that SEBI was coming out with new set of regulations for the distribution of Mutual Fund products along with simplification in the Know your customer (KYC) norms. “What we are looking at is how to make KYC norms simple and digital. For instance there is no need for in-person verification in a KYC,” he said. He also indicated that regulator will soon come up with specific guidelines on selling of mutual funds through e-commerce platforms.

The Rs 3,018-crore initial public offer of IndiGo’s parent InterGlobe Aviation was subscribed 33 per cent till noon on the first day of the issue today. (Reuters)

The Rs 3,018-crore initial public offer of IndiGo’s parent InterGlobe Aviation was subscribed 33 per cent till noon on the first day of the issue today.

The much-awaited IPO had received bids for 99,26,190 shares against the total issue size of 3,01,22,088 shares, data available with the NSE till 1200 hrs showed.

The portion reserved for qualified institutional buyers (QIB) was over-subscribed 1.14 times, sources said.

However, retail and high net worth individual (HNI) category saw slow demand.

InterGlobe Aviation has already raised Rs 832 crore from anchor investors by allotting shares at the upper price band of Rs 765 apiece.

InterGlobe hit the capital markets to raise Rs 3,018 crore through the initial public offering, the biggest in nearly three years. The price band for the offer has been fixed at Rs 700-765 per share.

The company had reduced its initial share sale size to a little over Rs 3,000 crore last week, with three of the promoters deciding to sell less number of shares than proposed earlier.

The offer comprises fresh issue of shares worth Rs 1,272.2 crore and the revised Offer for Sale (OFS) size that would be about Rs 1,746 crore. Together, the share sale can rake in up to Rs 3,018.2 crore.

The IPO would conclude on October 29.

Barclays Bank PLC, Kotak Mahindra Capital Company Limited and UBS Securities India are managing the issue.

IndiGo has a fleet of 98 aircraft and about 75 of them are on operating lease – a business model which has helped it lower costs.

Foreign institutional investors have reduced their holdings in 19 blue chip firms that are part of the 30-share benchmark Sensex during July-September quarter as they recast their portfolio on account of several domestic and global factors. (Illustration: Shyam)

Foreign institutional investors have reduced their holdings in 19 blue chip firms that are part of the 30-share benchmark Sensex during July-September quarter as they recast their portfolio on account of several domestic and global factors.

They have raised their holdings in 11 companies, as per the data available for the 3-month period ended September 30.

In the April-June quarter, FIIs had trimmed exposure in 20 blue-chip companies.

Market experts said that a slew of global and domestic factors including concerns over economic slowdown in China and weak GDP numbers in India prompted FIIs to reduce their holdings.

Moreover, foreign investors have pulled out more than Rs 18,000 crore from the stock markets during the July-September quarter, higher than over Rs 2,600 crore outflow in the preceding three months.

FIIs cut their stake in Hindalco the most in the September quarter — by 3.42 percentage points to 21.46 per cent. They reduced shareholding in Axis Bank by 2.38 percentage points to 42.13 per cent, while in GAIL it fell by 2.22 percentage points to 16.4 per cent.

Besides, these investors shed more than 1 per cent holding in Vedanta, Dr Reddy’s Laboratories, Infosys, ICICI Bank, Tata Consultancy Services (TCS), State Bank of India (SBI) among others.

While FIIs holding increased in ITC by 5.24 percentage points to 20.71 per cent, followed by Cipla, wherein foreign investors shored up their stake by 4.22 percentage points to 22.51 per cent.

Further, these investors raised their exposure in Sun Pharmaceuticals, Bajaj Auto, Bharti Airtel, Mahindra & Mahindra and Larsen & Toubro among others.

SEBI will increase surveillance of mutual fund investments in corporate debt, said chairman UK Sinha. (AP Photo)

The Securities and Exchange Board of India (SEBI) will increase surveillance of mutual fund investments in corporate debt, its Chairman UK Sinha said on Tuesday and called for the industry to be more careful with investments and procedures.

Sinha’s comments come amid growing worries about corporate debt investments by asset managers after a unit of JP Morgan in India suffered significant mark-to-market losses in late August when auto-parts maker Amtek Auto Ltd’s debt was downgraded by rating agencies.

The regulator, at an event organised by the Federation of Indian Chambers of Commerce & Industry (FICCI), added SEBI would also look at whether there were any conflicts of interest in the ratings process.

Sinha also noted SEBI would come out with a new set of regulations for the distribution of mutual fund products, “hopefully” in a couple months.