3:15 pm Gold price:
Falling for the third straight day, gold prices dropped by Rs 80 to Rs 26,730 at the bullion market largely in tandem with weakening trend in global markets amid low demand from jewellers.
However, silver strengthened by Rs 275 to Rs 35,575 per kg on increased offtake by industrial units and coin makers. Bullion merchants said a weak trend overseas after the European Central Bank signalled it could increase stimulus,which boosted the dollar and reduced demand for a safe haven, put pressure on the precious metal prices.
3:10 pm Fund raising: Wind turbine manufacturer Suzlon Energy’s board has sought shareholders’ approval to raise up to Rs 5,000 crore through the issue of securities.
“(It is proposed) to issue securities to the extent of Rs 5,000 crore,” the company said in a notice to its shareholders for Annual General Meeting scheduled on September 28.
The decision to raise Rs 5,000 crore by offering securities was taken in the board meeting of the company on July 31.
3:05 pm Merger: Multiplex operator PVR today said it has approved an amalgamation scheme between Bijli Holdings Pvt Ltd and itself to simplify PVR’s shareholding structure.
“The Board of Directors has considered and approved the Scheme of Amalgamation…between Bijli Holdings, based on the recommendation of the audit committee,” the company said in a BSE filing.
The purpose of the amalgamation is to simplify the shareholding structure of PVR and reduction of shareholding tiers.
It also envisages to demonstrate Bijli Holdings’ direct engagement with PVR, it said.
“Bijli Holdings is part of the Promoter Group of PVR. Post-amalgamation, paid-up capital of the company will remain the same and there shall be no dilution for any shareholders including public shareholders,” PVR said.
3:00 pm Market Update: Equity benchmarks remained under pressure in afternoon trade. The Sensex dropped 524.76 points or 2.04 percent to 25240.02 and the Nifty fell 159.40 points or 2.04 percent to 7663.60.
The market is headed towards biggest weekly closing since November 2011.
About 445 shares have advanced, 2158 shares declined, and 78 shares are unchanged on the BSE.
2:55 pm USFDA nod: Aurobindo Pharma has received final approval from the USFDA to manufacture and market Telmisartan tablets USP 20 mg, 40 mg and 80 mg.
The approved ANDA is bioequivalent and therapeutically equivalent to the reference listed drug product Micardis tablets of Boehringer Ingelheim Pharmaceuticals. This drug is used in the treatment of essential hypertension and has estimated market size of USD 92 million for 12 months ending July 2015, according to IMS.
2:50 pm Angel on Cipla: Cipla’s acquisitions are likely to get completed by end of December 2015 and thus will fully reflect in FY2017 financials. Thus, in FY2017, the acquisitions will contribute around 10 percent of the overall sales (estimated to be around of Rs 1,550 crore) of the company, says Sarabjit Kour Nangra, VP Research – Pharma) at Angel Broking.
Cipla announced that its UK arm, Cipla EU, has entered into definitive agreements to acquire two US-based companies, InvaGen Pharmaceuticals and Exelan Pharmaceuticals. The transaction being subject to certain closing conditions is valued at USD 550 million and will be an all cash transaction.
On the operating front, the acquisitions could have OPM of 18-20 percent, thus yielding around Rs 150 crore of net profit. Thus, the EPS could see an enhancement of around 7-8 percent in FY2017E (assuming the acquisition is debt and cash funded), she says. Thus leaving little scope for an upside, she maintains neutral rating on the stock.
According to her, acquisitions will enhance Cipla’s US presence and are likely to be EPS accretive.
2:40 pm PMJDY in focus: India aims to utilise bank accounts created under Pradhan Mantri Jan-Dhan Yojana to extend insurance, pension and credit facilities to those excluded from these benefits, Finance Minister Arun Jaitley has said, as the country joined a UN initiative to enable nations transition to electronic payments.
Taking a step closer to becoming a cashless economy, India has joined the ‘Better Than Cash Alliance’, a United Nations Capital Development Fund (UNCDF) initiative that helps enable countries transition to electronic payments.
The announcement comes on the first anniversary of Prime Minister Narendra Modi’s flagship financial inclusion programme Pradhan Mantri Jan-Dhan Yojana (PMJDY).
2:30 pm Rajesh Exports bags order: Rajesh Exports has bagged an export order worth Rs 1,123 crore of designer range of gold and diamond studded jewellery and medallions from Singapore.
The order is to be completed by December 31, 2015.
Execution of this order will significantly add to the bottomline of the company, says the company in its filing.
It adds that this order will be executed at the company’s manufacturing facility at Bangalore, the world’s largest jewellery manufacturing facility spread over 12 acres of land.
2:20 pm Mindtree in News: MindTree has completed the closing conditions and obtained necessary regulatory approvals with respect to the acquisition of entire ownership interest in Bluefin Solutions, a leading UK based IT solutions provider specializing in SAP HANA solutions.
2:10 pm GVK wins case: India’s GVK group and Australian mining magnate Gina Rinehart today won a court battle against a conservation group which had sought cancellation of environmental approval of their 10 billion dollars joint coal mine project in the Galilee Basin in Queensland province.
The Alpha mine, rail and port project, which is expected to produce 30 million tonnes of coal per year and create up to 3,600 construction jobs and 990 operational jobs, was challenged by Conservation group Coast and Country. The group, originally working for three farmers, had claimed that the project would adversely affect the groundwater and biodiversity in the region.
2:00 pm Market Check
Slaughter at Dalal Street continues. The Sensex is down 563.62 points or 2 percent at 25201.16 and the Nifty slips 170.75 points or 2 percent at 7652.25. About 397 shares have advanced, 2155 shares declined, and 72 shares are unchanged.
Bharti Airtel, Coal India and Lupin are top gainers while Vedanta, Tata Steel, Hindalco, Dr Reddy’s Labs are major losers. Ruppee extends losses and is currently at 66.50 per dollar.
Global markets are nervous ahead of US jobs data to be released later today. The street expects US non-farm payrolls to increase by 220,000 in August versus 215000 rise in July. A strong jobs data would increase the chances of Fed hiking rates in the September FOMC policy.