Mr Kannan who joined BSE in 2009 has resigned and is likely to join the Tata group
The Bombay Stock Exchange (BSE) on Tuesday suffered a setback as its managing director and chief executive Madhu Kannan decided to step down. According to media reports, Mr Kannan would join Tata Sons as group head for business development and report to Cyrus Mistry, deputy chairman of Tata Sons. However, this could not be confirmed. Mr Kannan's move may be personally satisfying and more challenging, comes the very next day after the Securities and Exchange Board of India (SEBI) announced norms for stock exchanges that would govern how much money they can make and how the top management can be compensated.
In a release, BSE, said Mr Kannan has expressed his intention to not to seek new term at the expiry if his current tenure that would end in May 2012, to puruse other opportunity.
Mr Kannan joined BSE in 2009. Prior to his appointment at BSE, Mr Kannan was a managing director in the corporate strategy group with Bank of America-Merrill Lynch based in New York. He joined Merrill Lynch in March 2008 as managing director (strategy and business development). In this role he focused on the development and execution of key strategic initiatives for Merrill Lynch in the emerging markets of Asia and Middle-East & North Africa (MENA) and the Global Sovereign Wealth Funds Group.
Prior to Bank of America-Merrill Lynch, Mr Kannan was senior vice president at NYSE Euronext. During his stint at NYSE Euronext, he served in various senior roles across a range of businesses including vice president, corporate client group, head of international listings (Asia Pacific Region), and managing director, international strategy and business development of the exchange.
ISMA says has urged the government to allow a fourth tranche of 1.5 MT sugar export before sugar production from Brazil, the largest producer of sugar, is made available in the international market
The total sugar production in the country, as on 31st March stands at around 23.3 million tonnes (MT), 13% higher compared to previous year where it was 20.4 MT. With 26 MT of total estimated production and domestic consumption of 22 MT, the Indian Sugar Mills Association (ISMA), the apex industry body is demanding additional 1.5 MT of sugar for exports. The government has so far allowed export of 3 MT of sugar.
According to ISMA, with the current trend of sowing all over the country, sugar production in 2012-13 season will be higher than the domestic requirement and the country may continue to remain a net exporter next year, too. A clear estimation of sugar production would be available only after a couple of months. Therefore, with the surplus sugar production almost certain next year, the country should carry forward the opening stock to next year as low as possible.
The industry body says that the opening balance of 6.8 MT of sugar as on 1st October 2011 has burdened the sugar industry. So the next year's opening balance should not be allowed to cross the mark of 5-5.5 MT as it will put pressure on the balance sheets of the sugar mills and harm the interests of sugarcane farmers.
ISMA says that the government should allow a fourth tranche of 1.5 MT sugar export before sugar production from Brazil, which is the largest producer of sugar, is made available in the international market.
Due to piling inventory of 18 MT, the cane arrears are growing. Abinash Verma, director-general, ISMA said that, "The total cane arrears of the sugar mills across the country is about Rs9,900 crore as the crushing season is coming to an end. In Uttar Pradesh, the ex-mill rate is around Rs28.5-RS29 per kg, while the production cost is Rs34. Mills are clearly making losses."
Uttar Pradesh has produced has produced 6.63 MT, Maharashtra has 8.01 MT and Karnataka, India's third largest sugar producing state, has 3.5 MT, till 31st March.
Nifty to move in the range of 5,300 and 5,400
A strong close in the US and strong opening in Asia saw a positive opening in Nifty and Sensex. The indices closed in the green for the third day. On a rising volume of 68.83 crore shares on the National Stock Exchange (NSE), the Nifty struggled to make an upmove today, which is in line with what we said yesterday. The Nifty may now see a staggered climb where it will move in the range of 5,300 and 5,400. For the third consecutive trading session today, the benchmark made a higher high and higher low.
Nifty opened at 5,353, up 35 points and the Sensex gained 98 points over its previous close to resume trade at 17,576. Metal, banking and IT sectors supported the initial gains.
The benchmarks were range-bound till around 1.30pm, after which a rise in buying activity lifted the market to its intraday high. At this point the Nifty rose to 5,379 and the Sensex went up to 17,664.
The market pared some gains in the post-noon session as the key European indices drifted lower after opening firm. The indices fell to the day's lows at around 2.30pm with the Nifty at 5,344 and the Sensex going down to 17,570.
The market closed off the lows with the Nifty gaining 41 points at 5,359 and the Sensex settling at 17,597, up 119 points.
The advance-decline ratio on the NSE was at 1208:517.
Among the broader indices, the BSE Mid-cap index gained 0.95% and the BSE Small-cap index surged 1.14%.
BSE Consumer Durables (up 2.14%) was the top sectoral performer. It was followed by BSE Capital Goods (up 1.65%); BSE Oil & Gas (up 1.56%); BSE Metal (up 1.38%) and BSE Bankex (up 1.22%). The losers were BSE Healthcare (down 0.45%); BSE Auto (down 0.19%) and BSE IT (down 0.06%).
The major Sensex gainers were Hindalco Industries (up 3.25%); Sterlite Industries (up 2.87%); State Bank of India (up 1.95%); Larsen & Toubro (up 1.93%) and ICICI Bank (up 1.87%). Hero MotoCorp (down 2.25%); Maruti Suzuki (down 2.12%); Sun Pharma, TCS (down 1.04% each) and Bharti Airtel (down 0.96%) settled at the bottom of the index.
Jaiprakash Associates (up 4.66%); Cairn India (up 3.96%); Hindalco Ind (up 3.42%), Sesa Goa (up 3.14%) and Sterlite Ind (up 3.02%) were the key performers on the Nifty. The top losers were Dr Reddy's (down 2.57%); Hero MotoCorp (down 2.49%); Maruti Suzuki (down 2.36%); TCS (down 1.555%) and Reliance Power (down 1.43%).
Markets in Asia closed mostly higher on hopes that the global economy is showing some confidence. However, the Japanese market edged lower as the appreciation in the value of the yen hurt exporters' sentiments.
The Hang Seng surged 1.31%; the Jakarta Composite climbed 1.19%; the KLSE Composite rose 0.18% and the Seoul Composite gained 0.99%. On the other hand, the Nikkei 225 declined 0.59%; the Straits Times shed 0.04% and the Taiwan Weighted dropped 1.30%. The Chinese market will re-open for trade on Thursday. At the time of writing, the key European indices were trading with minor losses and the US stock futures were in the negative.
Back home, foreign institutional investors were net buyers of shares totalling Rs245.94 crore on Monday while domestic institutional investors were net sellers of shares amounting to Rs72.81 crore.
Pharma major Pfizer today said the company's shareholders have approved the sale of its animal health division to its subsidiary, Pfizer Animal Pharma (PAPPL), for Rs440 crore. Consequent to the closing of the transaction the animal health business comprising marketing and trading in drugs, formulations and vaccines, together with their rights, title and interest in the movable intangible and current assets stand transferred to PAPPL. Pfizer settled at Rs1,230, up 2.48% on the NSE.
Steel Strips Wheels, a manufacturer of automotive wheels, today said its net sales have increased 20.78% in March to Rs 91.80 crore. In terms of number of wheel rims, the company sold 9.16 lakh rims in last month. Besides, the company also achieved highest ever sale of truck wheel rims last month, though it did not give the figure. The stock gained 1.99% to close at Rs220 on the NSE.
The Gujarat-based Elecon Engineering Company, a leading materials handling equipment and transmission products manufacturer, has completed expansion of its gear division. The stock fell 0.25% to settle at Rs60.75 on the NSE.