News-14/05/2015

1.Govt to find it tough if GST, Land Bill not passed in July

The Modi government has done well to not stand on prestige and agree to vetting by committees in order to get the bills passed in July. If it misses the bus in July, it will find the going tougher after that. The window of opportunity is small.

2. April WPI inflation falls sixth straight month to -2.65%

Given the weakness in industrial output and downtrend in inflation, expectations of a rate cut by the RBI at its June meet have risen.

Following is the break-up of the April WPI performance: Food articles inflation at 5.73% Vs 6.31% (MoM) Food articles index up 1.3% Vegetable inflation at -1.32% Vs 9.68% (MoM) Non-food articles inflation at -6.18% Vs -7.12% (MoM) Non-food articles index up 0.6% All commodities index down 0.1% Primary articles inflation at -0.25% Vs 0.08% (MoM) Primary articles index up 0.9% Manufactured products inflation at -0.52% Vs -0.19% (MoM) Manufactured products index down 0.1% Fuel, Power group inflation at -13.03% Vs -12.56% (MoM) Fuel & Power Group index down 1.7%

3.No material launch, price erosion impacted earnings: Lupin Pharma

Major Lupin reported a very disappointing set of fourth quarter numbers Wednesday with consolidated net profit falling 1.1 percent to Rs 547 crore in January-March quarter from Rs 553 crore in the corresponding quarter last fiscal.

4. Essar to develop three berths at Vizag port for Rs 1,200 crore 

NEW DELHI: Essar Ports today said it has taken over Vishakhapatnam Port Trust's (VPT) iron ore handling complex for 30 years and has also decided to develop three berths at the port at a cost of Rs 1,200 crore. 

The company said its subsidiary, Essar Vizag Terminals Ltd (EVTL), has taken over VPT's iron ore handling complex on a build-operate-transfer basis at Rs 185 crore. 

5.Rate cut uncertainty adding to volatility in Bank Nifty 

MUMBAI: The Bank Nifty is witnessing a sharp bout of volatility due to overall bearish market sentiment and weak quarterly results. This is being aggravated by concerns of uncertainty on further rate cuts in the month of June. 

The flight of foreign portfolio investors from the Indian markets couldn't have come at a more inappropriate time. Banks, which have already been beaten down, are facing more pressure as asset quality remains worrisome. 

6.Alibaba plans heavy investments beyond the Chinese market: CEO 

News-14/05/2015

BEIJING: Alibaba Group Holding Ltd will invest heavily in existing and new ventures abroad, making its push beyond the China market a top priority, the Chinese e-commerce leader's new CEO, Daniel Zhang, said.

7. ICICI Bank to expand China presence with Shanghai branch

HANGHAI: India's largest private sector lender ICICI BankBSE -0.74 % is set to expand its Chinese presence with the opening of a branch this weekend in Shanghai, China's biggest city and a major global financial hub.

8. India’s Gold Demand Rises 15%.

NEW DELHI—Demand for gold in India, the world’s largest consumer, rose 15% in the first quarter as relaxed import restrictions and a decline in international prices whet appetite for jewelry, the World Gold Council said Thursday.

9.IOC, GAIL in gas deal with Adani

NEW DELHI: Flagship oil refiner and marketer IndianOil and gas utility GAIL have inked a deal with an Adani Group firm for booking capacity at a liquid gas import terminal in Odisha, with the option of taking equity in the project at a later stage.

In a statement on Wednesday, GAIL said the two firms signed an MoU with Dhamra LNG Terminal which proposes to build a terminal at the Dhamra port in Bhadrak district of the state for importing gas in ships and regassify it for feeding customers in the eastern region.

10. Britain's FTSE edges lower, miners weigh 

LONDON: Britain's blue-chip FTSE 100 index edged down on Thursday, broadly in line with European shares hit by a persistent bond-market sell-off, after a mixed bag of corporate earnings and weaker commodity prices. 

Market Snapshot