Companies & Sectors
Madras HC rejects Sun TV's plea against asset attachment
The Madras High Court on Wednesday dismissed the petitions filed by Sun TV and Kal Cables for quashing the asset attachment order issued by the Directorate of Enforcement (ED) in connection with the Aircel-Maxis case.
 
Dismissing the petition, the court held that the company can approach the Supreme Court.
 
Counsel for ED argued that the matter is being monitored by the Supreme Court and hearing of the matter by any other court would impede the investigation by the Central Bureau of Investigation (CBI).
 
The petitioners contended that the properties attached were acquired much before the alleged crime and were not in any way connected with the alleged crime.
 
On April 1, the ED said in the Aircel-Maxis case it has attached properties worth Rs.742.58 crore belonging to Sun TV's principal promoter Kalanithi Maran, his wife Kaveri Kalanithi and his brother Dayanidhi Maran, who was a minister in the previous United Progress Alliance (UPA) government.
 
The CBI has argued in the courts that Dayanidhi Maran used his influence to help Malaysian businessmen T. Ananda Krishnan to buy Aircel by coercing its owner C. Sivasankaran to part with his stake.
 
Sivasankaran alleged that Dayanidhi Maran favoured the Maxis Group in the takeover of his firm. He also alleged that the company made investments through Astro Network in a firm purportedly owned by the Marans.
 
Four companies -- the Chennai-based Sun Direct TV, Britain-based Astro All Asia Networks, Maxis Communications Berhad of Malaysia, and the South Asia Entertainment Holdings of Mauritius -- have also been named in charge sheet filed on August 29, 2014, by the CBI.
 
The CBI said there was sufficient evidence to prosecute the accused, and booked all of them on the charges of criminal conspiracy under the Indian Penal Code (IPC) as well as the provisions of the Prevention of Corruption Act.
 
On April 1, the ED said its probe revealed that illegal gratification of Rs.742.58 crore was paid by the companies based in Mauritius, meant for Dayanidhi Maran, in two companies -- Sun Direct TV Pvt. Ltd. (SDTPL) and South Asia FM Ltd. (SAFL).
 
The main shareholder of the SAFL is Sun TV Network with 60 percent, while 20 percent each is with A.H. Multisoft Pvt. Ltd. and South Asia Multimedia Technologies Ltd., Mauritius.

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Nifty, Sensex, Bank Nifty may record more gains - Wednesday closing report
Nifty has to stay above 8090 for the upmove to continue 
 
After closing lower in each of the past six trading sessions, the benchmark stock indices—NSE’s CNX Nifty and S&P BSE Sensex—closed in the black on 10 June 2015. On 9 June 2015, the Nifty had closed at its lowest since 27 October 2014, after declining by 411 points (or 4.87%) over the past six trading days. This downtrend was broken on Wednesday as the 50-stock Nifty gained 102.05 points (or 1.27%) to close at 8,124.45. The S&P BSE Sensex closed 359.25 points higher to close at 26,840.50 (up 1.27%).
 
We had mentioned that the Nifty may remain weak and for it to reverse the downtrend it has to close above 8,100. The 50-stock index closed above this level on Wednesday, setting itself up for more gains.
 
Both the Nifty and the Sensex opened slightly higher than the previous days close at 8024.15 and 26517.32, respectively and investors turned immediately bullish with both the indices trading around 0.80% higher than previous day’s close.
 
While Nifty moved to around 8,100, the 30-stock Sensex crossed 26,700 level. The indices maintained this level for most part of the trading session. Another surge of buying came in around 2pm, taking the indices to hit their intraday highs.
 
Both the indices gave up some gains towards the end, giving rise to the suspicion that the rise was substantially due to short covering. The Nifty hit an intraday high of 8,152.25 and closed at 8,124.45. The Sensex hit a high of 26,934.74 before closing at 26,840.50.
 
Of the 2,748 companies traded on the Sensex, 1,704 (or 62%) closed higher than their previous day’s close while 937 companies closed in the red. All the sector indices maintained by the NSE and BSE closed higher. Among the sector indices on the NSE, the CNX IT was the top gainer up 2.32%. Auto stocks trailed close with a CNX Auto index returning 1.89%. The CNX Bank Nifty closed 1.24% higher.
 
Defensive consumer stocks did not attract a strong buying interest and the CNX FMCG index closed just 0.19% higher. The CNX Metal and the CNX MNC gained 0.69% and 0.66% respectively. 
 
On the BSE, the BSE Capital Goods index was the lead gainer among the sector indices after the IT Index. It closed 2.04% higher. Among the gainers on this index, BHEL rose 4.21%, Siemens gained 2.65%, L&T moved up 2.37% and Thermax was up 2.28%.
 
Sugar stock too, had something to cheer about. The Union Cabinet approved Rs6,000 crore interest-free loan to sugar mills for making payments to cane farmers. Cane arrears amounting to Rs22,000 crore of farmers are still pending. Sugar prices both in domestic and global market have fallen to the lowest levels in the last six years. India's sugar production is estimated to touch all time high of 28.3 million tonnes (MT) in 2014-15. According to Industry body Indian Sugar Mills Association (ISMA), the Indian sugar industry has so far produced a record 27.95 MT, as compared to about 24.04 MT of sugar produced till May in the last 2013-14 sugar season (October-September).
 
Bajaj Hindusthan Sugar surged 10.05%, Balrampur Chini Mills rallied 2.69%, Dhampur Sugar Mills gained 4.50%, Andhra Sugars surged 6.82% and Oudh Sugar advanced 9.15% on the BSE.
 
"Coal India has set a target of increasing its production capacity by 60 million tonne this fiscal. But taking into consideration the steps taken by the company to increase production, it may surpass the target," Coal Secretary Anil Swarup said at a media interaction. In 2014-15, the company's total coal production increased by 31.81 MT to over 494 MT, recording nearly 7% growth over 2013-14. Since coal production is likely to be higher, the government may be able to allocate some more additional quantities for auction for coal linkages, he added. Coal India closed 0.96% up at 404.90.
 
The Indian government is said to be planning to convert into equity a Rs50 billion ($783 million) loan extended by state-run Oil and Natural Gas Corp (ONGC) to its overseas investment arm to improve the unit's finances ahead of a possible public offering. According to news sources, Prime Minister Narendra Modi's cabinet is also expected to consider the deal, which would also require raising the authorised capital of the subsidiary ONGC Videsh by half to Rs150 billion. ONGC closed 1.21% higher.
 
Shares of Cairn India rebounded over 7% to Rs184.80 after slumping nearly 7% in the previous two sessions. It is being rumoured that Cairn India could be merged with another Vedanta group firm Vedanta Ltd. Vedanta closed 1.26% higher in today’s trade.
 
The Reserve Bank of India (RBI) laid down draft rules for companies to sell rupee bonds offshore, setting a limit on the price of the bonds at 500 basis points above government bonds of similar maturities. The price cap is not particularly restrictive, but the appeal of the bonds to offshore investors is likely to be limited for now, analysts said. The value of the rupee is uncertain as an increase in US interest rates begins to look more likely.
 
The benchmark 10-year government bond was trading at a yield of 7.80%, marginally higher than Wednesday’s close of 7.79%. The rupee traded marginally higher at 63.84 against the US dollar compared to 63.93 a day before.
 
China's benchmark Shanghai Composite index ended down 0.15% as investors expressed disappointment following the exclusion from MSCI, one of the world's major equity indexes. A report by the People's Bank of China, which stated that the central bank's economists have lowered their 2015 growth forecast for the country to 7% from 7.1%.
 
Negative sentiments prevailed among the other Asian indices. Hong Kong’s Hang Seng closed 1.12% lower, while Japan’s Nikkei closed 0.25% lower. South Korea’s KOSPI was down 0.62%.
 
Most of the European indices were trading higher. 
 
UK’s FTSE 100 was up 0.33% while Germany’s DAX was trading 1.14% up. 
 
US futures too, were trading higher in early trade. S&P 500 futures was up 0.31%, while the Nasdaq was up 0.30%.

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Foreign funds curbs on 4,470 NGOs; Organizations deny receiving notification
The government has so far barred 4,470 NGOs from receiving foreign funds for not adhereing to the guidelines on this but many affected organisations say they have not been formally informed about this.
 
After scrutinising the records of 9,000 NGOs, the home ministry has cancelled the licenses of 4,470 NGOs for non-compliance with the Foreign Contributions (Regulation) Act (FCRA). 
 
According to the FCRA of 2010, which sets the guidelines for foreign contributions received by NGOs, any such transfer has to be be reflected in the prescribed returns by the transferor and the recipient. 
 
"These NGOs have violated the FCRA and have not been filing their returns. So, their licenses to receive foreign funds have been cancelled," a home ministry official said, adding that some of the organizations have not been filing their returns for over 10 years. 
 
"We have been caught unawares on the issue. We haven't received any notification from the Ministry of Home Affairs so far," said Aishwarya Bhati, Secretary of the Supreme Court Bar Association. 
 
The Supreme Court Bar Association was one of the 4,470 organizations whose licenses to receive foreign funds have been cancelled. Among others similarly affected are Delhi University, Jawaharlal Nehru University, Gujarat National Law University, Delhi Deputy Chief Minister Manish Sisodia's Kabir NGO, Indian Institute of Technology-Delhi, Osmania University and University of Hyderabad. 
 
"Our university has always complied with all the rules. We haven't received any information regarding this," said Delhi University Pro Vice-Chancellor Sudhish Pachauri. 

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