Rubber articles’ exports to rise 10% in FY18: 18 Aug 2017

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Triggered by a sharp increase in demand from the United States and the European Union, India’s exports of rubber articles are likely to jump by over 10 per cent in the current financial year.

Over 6000 units involved in the business of manufacturing around 35,000 highly engineered rubber products for applications in railways, defence, submarine, highways and other such sectors. Of this around 100 large units and 3000 medium size have invested in modernizing their age-old plants to cater to demand from the United States and the European Union. These companies have tied up with global giants, including 3M, Dupont, Sabic who have set up their research centres in India, to bring modern technology in synthetic rubber to improve efficiency.

The remaining around half of the small scale units, however, continued to focus on domestic plants by complimenting with large units for survival in the absence of investment capabilities. These small scale units continued to face challenges in scaling up their manufacturing capacity to meet the requirement of customers.

“While our raw material—natural and synthetic rubber—supply is controlled by a few large corporate houses, we face stiff competition with Chinese manufacturers in consumer markets including the United States and the European Union for which we need a favourable government policy. Firstly, the industry needs a dedicated export promotion council something like Rubber Export Promotion Council (Rubexil) to take up our issues with the government. Currently, our issues are taken up to the government by individual companies which left un-addressed. Secondly, our attempt should be to
address trade barriers like high-interest rate on working capital, long term policy on raw material availability etc. in addition to other such issues. We see our exports growing in double digits irrespective of the growth in the economy,” said Vikram Makar, senior vice president of All India Rubber Industries Association (AIRIA) and chairman and managing director of Oriental Rubber Industries, one of India’s largest producers and
exporters of rubber articles.

Data compiled by the Directorate General of Commercial Intelligence and Statistics (DGCIS) under the Ministry of Commerce and Industry, showed India’s exports of rubber articles (excluding non-tyre and natural rubber) at Rs 2,280 crore for the financial year 2016-17 as compared to Rs 2,008 crore for the previous financial year.

“China has commoditised exports of rubber products resulting into huge volume of shipment going into the consumer markets. But, we have specialised our products which fetched better realization in addition to product specific demand in the United States and the European Union. That’s the reason, our exports to these two destinations continued to move up despite turbulence in economies of these regions,” said Vishnu Bhimrajka, Director, Polmann India Limited.

Meanwhile, the United States and the European Union together contribute nearly 70 per cent of India’s overall rubber products’ exports. Indian exporters, however, are looking to raise India’s share in the world market to 5 per cent in the next couple of years from the existing 1.48 per cent compared to China’s market share of 11 per cent.

The industry is facing huge shortage of skilled workforce which the association is working on to address through commencement of certification programmes in technical institutes, Sundeep Gokhale, deputy secretary general, AIRIA said.

“Out of 700,000 skilled workforce is required to meet growing needs of India’s rubber industry, we have just 500,000 manpower strength. We are in the process to tie up with technical universities to general more skilled workforce in this highly technical rubber industry to meet out future requirement,” said Vinod Patkotwar, chief executive officer, Crown Rubber Products, a Pune-based rubber article manufacturer.

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Infosys falls 6% after Vishal Sikka resigns as MD & CEO: 18 Aug 2017

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Infosys has dipped 6% to Rs 958 on BSE in early morning trade after Vishal Sikka resigned as the Managing Director (MD) and Chief Executive Officer (CEO) of the company with immediate effect.

“The board of directors of Infosys has at its meeting today accepted the resignation of Dr. Vishal Sikka as the Managing Director and Chief Executive Officer of the Company with immediate effect,” Infosys said in a statement.

Vishal Sikka has been appointed as the Executive Vice-Chairman of Infosys. The company has appointed U B Pravin Rao as the Interim-MD and CEO, it added.

Infosys said the succession plan for appointment of a new MD and CEO has been operationalized by the board and a search for the same has been commenced.

The stock has erased its entire Thursday’s 4.5% gain post the development. The Board is also likely to consider a proposal for buyback of its equity shares on Saturday.

On June 12, 2014, Infosys, India’s second biggest IT outsourcer named Vishal Sikka as the CEO & MD of the company. He took over as CEO & MD from S D Shibulal on August 1, 2014.

Even after taking into account today’s fall, the stock of Infosys has outperformed the IT index by gaining 21% since Vishal Sikka was appointed as CEO & MD of the company. The S&P BSE IT index and Nifty IT index added 15.5% and 13.5%, respectively, during the same period.

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CS PERFORMANCE OF THE DAY:- 17 Aug 2017

CS PERFORMANCE MESSAGE:

pp

STOCK FUTURES:

FUTURES INTRADAY:

BUY NIITTECH FUT EXIT AT 504.75
SELL LT FUT SELL 1ST TG

PREMIUM FUTURES:

SELL MOTHERSUMI FUT SELL CALL1ST TG

NIFTY FUTURES:

NIFTY FUTURE BUY CALL MADE HIGH OF 9929 BOOK SUPER BUMPER PROFIT NEAR IT AND FINAL TG 9945

INDEX OPTION CALL

BUY NIFTY 9800 PUT AUG BUY CALL1ST TG HOLD

OPTION

BUY LT PUT 1120 AUG 2ND TG
BUY INFY 1020 CAL AUG BUY CALL2ND TG

OPTION PREMIUM

BUY BPCL 490 CALL AUG BUY CALL3RD TG ALMOST

STOCK CASH

STOCK CASH INTRADAY

BUY VEDL IN CASH BUY CALL1ST TG
BUY COAL INDIA IN CASH BUY CALL COST EXIT

STOCK CASH PREMIUM:

BUY BPCL IN CASH BUY CALL 1ST TG
BUY DLF IN CASH HOLD FOR TOMORROW
ESCORT BOUGHT NR 622 CALL ON FIREEEEEEE 3RD TG 648 FULL ACHIEVED BOOK FULL PROFIT IN IT
JINDALSTEL BOUGHT ON 14TH AUG NR TO 2ND TG MADE HIGH 142.70 BOOK MORE PROFIT AND 3RD TG 148
JUBLIANT BOUGHT ON 11 TH AUG NR 680 CALL ON FIREEEEEEEE NR TO 3RD TG MADE HIGH 715.50

STOCK SUPER CASH PREMIUM

BUY BEML IN CASH BUY CALL 3RD TG
BUY DLF IN CASH BUY CALL 1STG
TVS MOTOR IN CASH 1ST TG 592 ACHIEVED, BOOK PARTIAL PROFIT NEAR IT AND 2ND TG 597
ICICIPRULI IN CASH 14 TH AUG BUY CALL MADE HIGH OF 443 BOOK FULL PROFIT NEAR IT,439-441

OPTION STRATEGY

LT PUT 1120 HOLD FOR TOMORROW
HEXAWARE CALL 270 BOUGHT NR 6 ON 14 AUG FINAL TG

HNI CASH CALL

BUY BPCL IN CASH HOLD FOR TOMORROW

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TOP CORPORATE NEWS :- 17 Aug 2017

Corporate News

TOP Headlines Of The Day:– 17 Aug 2017

Cabinet approves metro rail policy: BEML gains
NCLT approves amalgamation of Phoenix Lamps with Suprajit Engg
Infosys to consider buyback proposal; stk up
Wipro to manage IT infra services for Grameenphone
Indian Hotels surges ahead of board meeting
Power grid board approves investment of Rs1931 Cr

Cabinet approves metro rail policy: BEML gains
Shares of BEML surged over 9%, touched to Rs1879, after new metro rail policy approved by the Union Cabinet on Wednesday.
The Cabinet on Wednesday approved the Metro Rail Policy 2017, which among other things, aims to ensure provision of last-mile connectivity and preventing an escalation in the cost of projects.

NCLT approves amalgamation of Phoenix Lamps with Suprajit Engg
The NCLT (National Company Law Tribunal) has approved the amalgamation of Phoenix Lamps with Suprajit Engineering – Positive read thru for Suprajit Engineering. Given the merger approval, Suprajit can now fully realize the synergistic benefits. As per the NCLT order, the scheme is effective from 1st April 2016.

Infosys to consider buyback proposal; stk up
Shares of Infosys rose by 4%, touching to Rs1015, after the company announced that its board of directors will consider a proposal for buyback of
equity shares at a meeting scheduled on August 19, 2017.

Wipro to manage IT infra services for Grameenphone
Wipro, a leading global information technology, consulting and business process services company has said that it has won a five-year IT infrastructure and applications managed services engagement with Grameenphone (GP), a leading telecom operator in Bangladesh.
Grameenphone is the largest mobile telecommunications operator in Bangladesh, majority owned by Telenor Group, one of the world’s major mobile operators.
Wipro will be managing the complete IT landscape for GP, leveraging Wipro HOLMES. As part of the contract Wipro will own end-to-end application development and management, infrastructure support and maintenance and back office processes for GP.
This partnership closely aligns with Wipro’s vision to localize, expand its presence and explore new businesses opportunities in the country. Wipro will be setting up a new delivery centre in Bangladesh.

Indian Hotels surges ahead of board meeting
Shares of Indian Hotels Company rose over 6% at Rs134.3, after the company said that it has scheduled a board meeting on August 21, 2017 for considering various fund raising options.

Power grid board approves investment of Rs1931 Cr
Power Grid Corporation of India announced on Thursday that the company’s board of directors has approved the investment proposal for three plants with an estimated cost of Rs 1931.39 crore.
The board has approved the investment for HVDC Biopole link between Western region (Raigarh, Chhattisgarh) and Southern Region (Pugalur, Tamil Nadu)-North Trichur (Kerala).

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Sebi slaps Rs 18 cr fine on 22 entities for round tripping funds, IPO fraud: 17 Aug 2017

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Markets regulator Sebi on Thursday imposed a penalty of Rs 17.55 crore on 22 entities for round tripping of funds through fictitious transactions and siphoning off proceeds from the initial share sale of Brooks Laboratories Ltd (BLL).

In a 38-page order, the watchdog said the practices adopted by the 22 entities are “serious in nature which have the cascading adverse effect towards the investors/ shareholders” and have inflicted a fraud on them.

After observing certain irregularities pertaining to the IPO of BLL, the regulator had passed an order against the company and its directors back in December 2011.

Investigations found that certain fraudulent exercise were committed by the promoters of BLL in connivance with other entities resulting in siphoning of Rs 8 crore worth funds.

It was also found that BLL’s board had passed certain resolutions to raise funds through short term unsecured loans in the form of Inter Corporate Deposits (ICDs).

According to Sebi, it was observed that the promoters of BLL in connivance with the noticees had indulged in fictitious transactions and round tripping of funds and in the process also siphoned of the funds from the IPO proceeds.

Sebi noted that fraudulent practices of siphoning off funds from IPO proceeds, round tripping and creating false liability in the form of ICDs, misutilisation of the proceeds to offset losses suffered by entities in the market and concealment of material information can influence the decision of investors while making investment in the IPO.

“The noticees have acted in a concerted manner in inflicting a fraud on the unsuspecting/ gullible investors of BLL who have fallen prey to the fraudulent acts…,” the order said.

Sebi has directed the entities to pay the penalty of Rs 17.55 crore within 45 days of receiving the order.

In 2015, the Securities Appellate Tribunal had set aside the adjudication order in the matter that was passed in December 2013. The tribunal had directed the adjudicating officer to adjudicate the matter afresh.

About Suryamukhi Projects Pvt Ltd, one of the 22 entities, the watchdog said with a malafide and premeditated plan it along with the promoters of BLL had defrauded the IPO investors “by being a significant part in the round tripping of funds and aiding and abetting BLL in such fraudulent activities”.

“Clearly, Suryamukhi’s role in acting as a layer for round tripping of Rs 8 crore in the guise of ICDs and aiding and abetting BLL in such fraudulent activities with ulterior motive of siphoning the IPO proceeds cannot be ignored and the same has been established beyond doubt,” the order said.

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Infosys gains 3% as board to consider share buyback proposal on August 19: 17 Aug 2017

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Infosys was up 3% at Rs 1,010 on BSE in early morning trade after the company said its board will meet on Saturday, August 19, to consider share buyback proposal.

“The board of directors of the Company will consider a proposal for buyback of equity shares of the Company at its meeting to be held on August 19, 2017,” Infosys said in a regulatory filing.

Infosys added that it was closing its trading window with immediate effect and that the window would reopen on August 22.

The Securities and Exchange Board of India (Sebi) has approved Infosys’ share buyback and also offered a solution for participation by holders of the company’s American Depository Receipts (ADRs) and Global Depository Receipts (GDRs), the Business Standard reported.

The cash-rich technology major had in April proposed to pay Rs 13,000 crore to shareholders through a buyback, but the proposal was tied in regulatory knots.

Thus far in the calendar year 2017, Infosys stock had underperformed the market by falling 3.3% as compared to 19% rise in the S&P BSE Sensex till Wednesday.

In past one year, most of the information technology (IT) majors, include Tata Consultancy Services (TCS), Wipro, HCL Technologies, MindTree and
MphasiS had announced share buyback through tender offer.

Share buybacks typically improve earnings per share and return surplus cash to shareholders while also supporting share price during period of sluggish market condition.

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TOP CORPORATE NEWS :- 16 Aug 2017

Corporate News

TOP Headlines Of The Day :- 16 Aug 2017

Granules up after USFDA issues EIR for Gagillapur plant
NBCC Q1 profit up 37%
Patel Engineering Q1 net loss at Rs5 cr
Aurobindo Pharma in race with Intas Pharma
Adani Group faces financial fraud claims
Bajaj Hindusthan Sugar posts Q1 net loss of Rs25 crore

Granules up after USFDA issues EIR for Gagillapur plant
Granules India rose by 10% at Rs128.05, after the company said that the US drug regulator has issued Establishment Inspection Report for the Gagillapur facility.
Granules India said that the US drug regulator has issued Establishment Inspection Report (EIR) for the Gagillapur facility of the company located at Hyderabad, Telangana, India.
The facility was inspected by United States Food & Drug Administration (USFDA) in October 2016 and there were no observations during the inspection.
The facility manufactures finished dosages and pharmaceutical formulation intermediates.

NBCC Q1 profit up 37%
Revenue down 0.1% at Rs1556 crore
EBITDA up 35% to Rs71.6 crore
Margin expanded to 4.6% from 3.4%
Profit up 37% to Rs61.3 crore.

Patel Engineering Q1 net loss at Rs5 cr
Patel Engineering (Q1, YoY)
Revenue down 6.9% to Rs556.4 crore
EBITDA up 1.5% to Rs87.7 crore
Margin expanded to 15.8% from 14.5%
Net loss of Rs5 crore from net loss of Rs23.3 crore.

Aurobindo Pharma in race with Intas Pharma
Aurobindo Pharma is in race with Intas Pharma to acquire assets of Teva Pharma – Israeli generic drug maker. This news is sentimentally positive but
would depend upon valuation of the deal.

Adani Group faces financial fraud claims
Adani Group faces financial fraud claims as it bids for Australian coal loan, group companies to be in focus. Adani Group is expecting a legal
decision in the “near future” in connection with allegations it inflated invoices for an electricity project in India to shift huge sums of money
into offshore bank accounts. Details of the alleged 15bn rupee (US$235m) fraud are contained in an Indian customs intelligence notice obtained by
the Guardian, excerpts of which are published for the first time. The Directorate of Revenue Intelligence (DRI) file, compiled in 2014, maps out a
complex money trail from India through South Korea and Dubai, and eventually to an offshore company in Mauritius allegedly controlled by Vinod
Shantilal Adani, the older brother of the Adani Group chief executive, Gautam Adani. Vinod Adani is the director of four companies proposing to
build a railway line and expand a coal port attached to Queensland’s vast Carmichael mine project. The proposed mine, which would be Australia’s
largest, has been the source of intense controversy for years, as well as legal challenges and protests over its possible environmental impacts. The
Adani Group fully denies the accusations, which it has challenged in submissions to the authority.

Bajaj Hindusthan Sugar posts Q1 net loss of Rs25 crore
Bajaj Hindusthan Sugar (Q1, YoY)
Revenue up 31% to Rs1747 crore
EBITDA up 30.4% to Rs163 crore
Margin unchanged at 9.9%
Net loss of Rs25 crore from net loss of Rs77 crore.

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CS PERFORMANCE OF THE DAY :- 16 Aug 2017

CS PERFORMANCE MESSAGE:

pp

STOCK FUTURES:

FUTURES INTRADAY:

BUY HEROMOT FUT BUY CALL2ND TG

PREMIUM FUTURES:

BUY TECHM FUT BUY CALL3RDTG

NIFTY FUTURES:

BUY NIFTY FUTURE BUY CALL1ST TG

OPTION

BUY TECHM 410 CALL AUG BUY CALL 3RD TG

STOCK CASH

STOCK CASH INTRADAY

BUY ITC IN CASH BUY CALL3RD TG
BUY TATAGLOBAL IN CASH BUY CALL3RD TG
BUY GODREJIND IN CASH BUY CALL2ND TG

STOCK CASH PREMIUM:

BUY FRETAIL IN CASH BUY CALL1ST TG
BUY ESCORT BUY CALL 2ND TG
PCJEWELLER BOUGHT NR 323.50 CALL ON FIREEEEEE 3RD TG 342 ACHIEVED BOOK FULL PROFIT IN IT

STOCK SUPER CASH PREMIUM

BUY TECHM IN CASH BUY CALL 1ST TG
BUY TVSMOTOR IN CASH HOLD FOR TOMORROW

EQUITY KING CALL

HEROMOTO FUT TRADING NR 4043 BOOK 50% PROFIT NR IT HOLD 50% FOR TGT 4075

OPTION STRATEGY

HEXAWARE CALL 270 ON HOLD

HNI CASH CALL

BUY TATAGLOBAL IN CASH FIRST TGT
BATA INDIA IN CASH 3RD AUGUST BUY CALL ON FIREEEEEEEEEEE OUR FINAL TGT 675 ALMOST ACHIEVED, HIGH 672.75 (BOUGHT NR 612) BOOK FULL PROFIT

HNI FUTURE CALL

APOLLOHOSPITAL FUT SOLD NR 1188 MADE LOW 1165.15 NR FINAL TGT 1158 BOOK MOST OF PROFIT NR IT

CPE FUTURE CALL

JUBLFOOD FUT BOUGHT NR 1360 FINAL TGT 1390 ACHIEVED BOOK FULL PROFIT NR IT HIGH 1442.6

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Tata Global hits record high on pact to sell Himalayan mineral water in US: 16 Aug 2017

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Tata Global Beverages hit a record high of Rs 189, up 6% on BSE in early morning trade, after the company said it will launch its premium natural mineral water brand ‘Himalayan’ in the US market.

At 09:48 am; the S&P BSE Sensex was down 0.08% at 31,425. The trading volumes on the counter more than doubled with a combined 7.75 million shares changed hands on the counter on BSE and NSE.

“The company’s premium natural mineral water brand ‘Himalayan’, will now enter the USA market in a phased manner, through an agreement signed by its subsidiary with Talking Rain Beverage Company, the maker of Sparkling Ice flavored sparkling waters to distribute and market the brand,” Tata Global Beverages said in a release on Tuesday.

This agreement will give Himalayan the benefit of Talking Rain’s extensive go to market and execution capabilities in the U.S, which synergize well with TGB’s product expertise and marketing capability. The premium end of the water market in the country is growing rapidly and Himalayan is well positioned to leverage the growth in this segment, it added.

Meanwhile, in past three trading sessions, the stock of Tata Group Company has rallied 21% after reporting 13% year-on-year (YoY) growth in consolidated net profit at Rs 143 crore in June quarter (Q1FY18). The revenue from operations however, declined 1.8% YoY to Rs 1,704 crore in Q1FY18. The company witnessed marginal expansion of 58 bps YoY in EBITDA margin to 14.3%.

“The company intends to invest in incubatory businesses (Starbucks, Nourischo) to drive future growth. Additionally, the company is focusing on entering large tea consuming markets in Asia like Singapore, Malaysia and China. Lastly, focus on operational efficiency through, cost control, exit from loss making geographies and business restructuring, would help the company improve the operating margin, going ahead,” analysts at ICICI Securities said in a result update.

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More shell firms found: PAN deactivation jolt for tax evaders in stock market: 16 Aug 2017

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Of the 1.1 million permanent account numbers (PAN) that the government deactivated last month, income-tax (I-T) sources say a majority were duplicates and were being used to open share-trading and demat accounts, transact on the stock markets, and operate in shell firms.

The I-T department has discovered one individual could have five to seven PAN cards, each with a slightly different spelling of the holder’s name.

According to I-T officials, such people, who have been identified as small- and medium-sized stock brokers, sub-brokers and their clients, have evaded taxes.

They could have evaded so by using one card for filing tax returns, and others for investing in financial instruments or making high-value transactions, said a senior tax official.

High-value transactions of more than Rs 50,000 and above require PAN details. During demonetisation, PAN was required to be quoted in the case of cash deposits of more than Rs 2 lakh in savings accounts.

Sources said that the tax department had used data analytics to track down evaders by collecting information such as common addresses, mobile numbers, and emails to establish the relationship among multiple PANs.

The exercise is continuing since demonetisation, at the time of which the department matched the databases of third parties such as banks and financial institutions with its own database and other details like know your customer (KYC), tax deducted at source (TDS), and payments made overseas. This is how it got a comprehensive profile of taxpayers.

A senior tax official said the department identified the link between PAN holders through their business associations, assets and associated transactions, and compliance history in the various databases.

“Through this we have clustered PAN-linked demonetisation data, using identified relationships as well as common addresses, email, and respective bank branch,” said the official.

More than 250 million PANs have been allotted so far, and of those only 52 million are used to file tax returns. This indicated that there were nearly five PAN cards per registered taxpayer, said the official, assuming all PAN holders filed returns.

This is the reason why the government is aiming to link the biometrics-based Aadhaar card with PAN so that it would be able to weed out duplications in the system. The government has made the Aadhaar mandatory for filing tax returns and financial transactions of Rs 50,000 and above, and it will become mandatory for opening bank accounts after December 2017.

Meanwhile, the Securities and Exchange Board of India is planning to identify investors through their Aadhaar numbers.

However, tax experts say that the huge mismatch between PAN holders and tax filing could also be possible due to other reasons. “PAN does not have any expiry date, unlike other identity cards. So the number of PANs includes those who died since its inception,” said a tax expert. According to him, the anomalies regarding the duplication of PANs are also because there is no database on the old PAN cards issued.

However, the new series of the PANs was devised to take care of such problems.

“As on July 27, 1.14 million PAN cards have been identified and deactivated in cases where multiple PANs were found allotted to one person,” Minister of State for Finance Santosh Kumar Gangwar told the Rajya Sabha recently.

Moreover, 1,566 PAN cards have been identified as “fake” because they were allotted to either people non-existent or in the names of persons with false identities. Sources said that the second list of PAN deactivation would soon be released by the tax department.

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