|Market Commentary||Friday, June 29, 2012 08:57 Hrs IST|
PSU OMCs in spotlight after petrol price cut
Shares of public sector oil marketing companies (PSU OMCs) will be watched after these companies cut petrol price by Rs 2.46 a litre, excluding state taxes, from the midnight of Thursday, 28 June 2012. This is the second time that fuel retailers reduced petrol price since they raised it by Rs 7.50 a litre on 24 May 2012. The retailers had last reduced the price by Rs 2 a litre.
Reduction in petrol prices may boost shares of car maker Maruti Suzuki India and two-wheeler makers like Bajaj Auto, Hero MotoCorp and TVS Motor Company.
Jaypee Infra Ventures -- the promoters of Jaiprakash Power Ventures -- will sell 2.9 crore of Jaiprakash Power Ventures through the Offer for Sale (OFS) mechanism on the separate window provided by the stock exchanges for this purpose. The OFS will take place today, 29 June 2012, from 9:15 IST to 15:30 IST.
UK's Cairn Energy is reportedly selling 6.7 crore shares of Cairn India, translating to about 3.5% of the company, through block deal for about Rs 2100 crore. The stake sale, at a price of between Rs 307.5 and Rs 317 per share, is being handled by Citigroup's securities arm in India. The sale of the block could be completed as early as Friday, 29 June 2012.
Bank shares will be watched after the Reserve Bank of India (RBI) unveiled its fifth Financial Stability Report. The RBI on Thursday in Financial Stability Report, said that though the Indian financial system remains robust, risks to financial stability have increased in the recent past due to the dismal global macroeconomic situation and the muted economic growth on the domestic front. It said risks to domestic growth are accentuated by fiscal and external sector imbalances. Inflationary pressures have moderated but inflation risks remain. RBI said that banks remain resilient to credit, market and liquidity risks and would be able to withstand macroeconomic shocks, given their comfortable capital adequacy positions. Asset quality concerns, however, persist and liquidity pressures have intensified. Credit and deposit growth in the banking sector have decelerated while banks' reliance on borrowed funds has increased.
Distress dependencies between banks have risen. The analysis of the network of the Indian banking system reveals that the systemic importance of the ‘most connected' banks has increased, warranting a closer monitoring of the banks. RBI added that there could be unintended consequences of the implementation of the reform measures for emerging economies, like India, e.g. due to the deleveraging induced by the new capital and liquidity standards. RBI informed that banks in India will migrate to Basel III from a position of relative strength but there could be challenges in the form of higher cost of capital.
The new Principles for Financial Market Infrastructure, issued by the Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO), propose stringent risk management requirements, which could necessitate a relook at the risk management practices of domestic central counterparties, the RBI said.
Clearing Corporation of India (CCIL)'s financial resources and its liquidity as well as credit risk management framework needs to be fine-tuned to take cognisance of the significant un-collateralised intraday exposures to its designated settlement banks, the RBI report added.
Tata Power Company said it completed purchasing 51% equity shares of Tata BP Solar India, which were held by BP Alternative Energy Holdings. Consequently, Tata BP Solar India is now a wholly-owned subsidiary of the company.
Oracle Financial Services Software said it has introduced Oracle FLEXCUBE 12.0, the latest version of the Oracle FLEXCUBE banking platform. The release includes features that enable banks to deliver more personalised and convenient service to customers across all channels. It also offers a harmonized infrastructure and open development environment that allows more flexible deployment options and upgrade paths.
The board of Pfizer accepted the resignation of Kewal Handa as the Director and Managing Director of the company with effect from the end of day on 15 August 2012. Kewal Handa would continue as an employee of the company until his retirement from the company i.e. 31 August 2012. Further, the board of the company at their meeting held on 28 June 2012 appointed Aijaz Tobaccowalla as an Additional Director of the company with immediate effect. Further, the board of the company at their meeting held on 28 June 2012 also appointed Aijaz Tobaccowalla as the Managing Director of the company with effect from 16 August 2012 subject to approval of shareholders and Central Government.
NHPC said that Unit 2 and 3 with an installed capacity of 77 megawatts (MW) each of Chamera Hydro Electric Project (Stage III) will come under commercial operation with reference from midnight of 30 June 2012 after successful trial run and demonstration of peaking capacity.
The Great Eastern Shipping Company said it has delivered its 1991 built liquified petroleum gas (LPG) carrier "Jag Viraj" (about 17500 deadweight tonnage) to the buyers. With this, the company's current fleet size comprises of 32 vessels.
Bliss GVS Pharma has acquired 70% management stake in Kremoint Pharma, which is into manufacturing of pharmaceuticals and a leading company in the manufacture and export of creams, ointments and gels. Bliss GVS Pharma said that the acquisition will boost the company's strength in the manufacture and export of pharmaceuticals.
Automotive Stampings And Assemblies said that CRISIL has reaffirmed the rating of "CRISIL A/Stable" for the Long Term borrowings and "CRISIL A1" for Short Term borrowings of the company.