Companies & Sectors
Ratan Tata says land and coal availability challenges for power sector

According to the Tata group chief, shortage of domestic coal and expensive gas are among the concerns which need to be sorted out and there should be policy action to encourage gas-based power projects

Mumbai: Tata Group chairman Ratan Tata on Friday called difficulties on land acquisition and coal block auctions as challenges impeding the growth of the power sector in the country, reports PTI.
"The main fuel (for meeting the increasing energy needs) will be coal...there is a question on coal and land auction which will be the concern and has to be addressed later," he said at Tata Power's annual general meeting (AGM) in Mumbai.
The remarks come on the same day as the government tabling the CAG report on coal block auction, said the national exchequer lost up to Rs1.86 lakh crore on parting with land, rather than auctioning it.
Tata Group companies Tata Steel and Tata Power have been named in the report as among the 25 companies which have got the blocks in various states.
Ratan Tata, who is scheduled to retire towards the end of the year after being at helm for over two decades, said the principle challenges for Tata Power emanate from land acquisition and environmental clearances.
Earlier, Tata said the increasing population and higher standards of living are expected to double the demand for power by 2030.
As we face the task, shortage of domestic coal and expensive gas are among the concerns which need to be sorted out, he said, stressing on the need for policy action to encourage gas-based power projects.
"Availability of energy at affordable rates will be an area of challenge," he said.


SEBI allows seven alternative investment funds to operate in India

The seven AIFs registered with SEBI includes IFCI Syncamore India Infrastructure Fund, Utthishta Yekum Fund, Indiaquotient Investment Trust, Forefront Alternate Investment Trust, Excedo Realty Fund, Sabre Partners Trust and KKR India Alternate Credit Opportunities Fund


New Delhi: Market regulator Securities and Exchange Board of India (SEBI) has allowed seven alternative investment funds (AIFs) to set shop in the country under a newly formulated route, which allows pooling of funds for investments in areas like real estate, private equity and hedge funds, reports PTI.


The approval has been given to all the seven AIFs by the SEBI in a period of less than one month, as per the information available with the market regulator.


SEBI had notified its guidelines in May for AIFs, which are funds established or incorporated in India for the purpose of pooling in of capital from Indian and foreign investors for investing as per a pre-decided policy.


As per SEBI data, six AIFs have got registered with the regulator during August 2012, while one was granted registration on 23rd July.


In a board meeting held yesterday, SEBI had decided that the promoters of listed companies can offload 10% of equity to AIFs such as such as SME Funds, Infrastructure Funds, PE funds and Venture Capital Funds registered with the market regulator to attain minimum 25% public holding.


Under SEBI guidelines, AIFs can operate broadly in three categories and it is mandatory for them to get registered with the regulator. The SEBI rules apply to all AIFs, including those operating as private equity funds, real estate funds and hedge funds, among others.


The seven AIFs that have got registered with SEBI include IFCI Syncamore India Infrastructure Fund, Utthishta Yekum Fund, Indiaquotient Investment Trust, Forefront Alternate Investment Trust, Excedo Realty Fund, Sabre Partners Trust and KKR India Alternate Credit Opportunities Fund.


The Category I AIFs are those funds that might get certain incentives or concessions from the government, SEBI or other regulators in India and include Social Venture Funds, Infrastructure Funds, Venture Capital Funds and SME Funds.


The Category III AIFs are those trading with a view to make short term returns and include hedge funds, among others.


The Category II AIFs are those funds which can invest anywhere in any combination but are prohibited from raising debt, except for meeting their day-to-day operational requirements. These AIFs include PE funds, debt funds or fund of funds, as also all others falling outside the ambit of Category I and Category III.



Sideways move ahead: Friday Closing Report

Lower low and a close below 5,342 may see Nifty slip to the level of 5,250 

The market, which was in the green in the first half of trade, surrendered its gains following the CAG report which estimated losses from allocation of coal blocks at Rs1.86 lakh crore. However, select buying in late trade ensured a green close. Yesterday we had mentioned that the market seems to be under pressure. We may now see the benchmarks moving sideways. However, if today low of 5,342 is broken and the Nifty settles below it, we may see the index slipping to the level of 5,250. The National Stock Exchange (NSE) saw a higher volume of 64.85 crore shares.


The market opened marginally higher despite supportive global cues following reports that German chancellor on Thursday announced her support to the European Central Bank’s move to find a solution to the debt crisis plaguing the continent. The development led the US markets higher overnight and a similar trend was seen in Asia in morning trade today.


The Nifty opened six points higher at 5,369 and the Sensex started the day at 17,701, a gain of 44 points over its previous close. Buying interest in auto, FMCG, consumer durables and IT stocks saw the benchmarks gaining momentum in subsequent trade.


The market continued to remain firm in noon trade on sustained buying which helped the benchmarks hit their intraday high. At this point the Nifty rose to 5,400 and the Sensex went up to 17,801.


The Comptroller and Auditor General of India (CAG) report tabled Parliament stated that private companies are likely to gain Rs1.86 lakh crore from coal blocks that were allocated to them on nomination basis instead of competitive bidding, which amounted to the loss to national exchequer.


The announcement resulted in the market paring all its gains and entering into the negative. The indices fell to their lows around 1.40pm wherein the Nifty went back to 5,342 and the Sensex dropped to 17,623.


While select buying helped the indices recover from the lows, the indices were seen hovering near their previous closing levels in late trade.


The market closed marginally higher on profit booking after the CAG report became public. The Nifty rose three points to 5,366 and the Sensex gained 34 points to settle at 17,691.


The advance-decline ratio on the NSE was in favour of the losers at 765:929.


Among the broader indices, the BSE Mid-cap index added 0.05% and the BSE Small-cap index settled 0.02% higher.


The sectoral gainers were BSE Fast Moving Consumer Goods (up 1.26%); BSE IT (up 1.15%); BSE TECk (up 0.89%); BSE Healthcare (up 0.67%) and BSE Auto (up 0.62%). The main losers were BSE Realty (down 1.71%); BSE Power (down 1.59%); BSE Metal (down 1.49%); BSE Capital Goods (down 0.85%) and BSE PSU (down 0.73%).


The top gainers on the Sensex were Tata Motors (up 2.12%); Infosys (up 1.61%); Hindustan Unilever (up 1.53%); ITC (up 1.43%) and Wipro (up 1.17%). The key losers were Jindal Steel (down 4.02%); Tata Steel (down 3.71%); Hindalco Industries (down 2.48%); GAIL India (down 1.72%) and Larsen & Toubro (down 1.48%).


The top two A Group gainers on the BSE were—Mangalore Refinery & Petrochemicals (up 5.40%) and Shriram Transport Finance (up 4.91%).

The top two A Group losers on the BSE were—Reliance Power (down 5.60%) and Jain Irrigation (down 4.43%).


The top two B Group gainers on the BSE were—Tribhovandas Bhimji Zaveri (up 19.96%) and Gujarat Metallic Coal (up 19.77%).

The top two B Group losers on the BSE were—GIVO (down 12.74%) and Jagson Airlines (down 12.09%).


Tata Motors (up 2.06%); HUL (up 1.75%); ITC (up 1.74%); Infosys (up 1.58%) and Wipro (up 1.36%) were the top performers on the Nifty. On the other hand, Jindal Steel (down 4.29%); Tata Power (down 3.85%); Reliance Infrastructure (down 3.22%); DLF (down 3.13%) and Hindalco Ind (down 2.78%) settled at the bottom of the index.


Markets in Asia settled mostly higher on assurances from German chancellor Angela Merkel to support the ECB’s initiative to find a solution to the ongoing European debt crisis. Meanwhile, in the mid-year growth forecasts, the Japanese government said it expects the economy to expand 1.7% in the fiscal year beginning in April 2013, from an anticipated increase of 2.2% in the current business year.


The Shanghai Composite rose 0.13%; the Hang Seng surged 0.77%; the Jakarta Composite gained 0.4% and the Nikkei 225 advanced 0.77%. Among the losers, the KLSE Composite shed 0.02%; the Straits Times fell 0.03%; the Seoul Composite dropped 0.58% and the Taiwan Weighted declined 0.30%.


At the time of writing, the key European markets were up in the range of 0.03% to 0.23% while the US stock futures were mostly lower, indications of a mixed opening of the US markets.


Back home, institutional investors—foreign as well as domestic—were net buyers of stocks on Thursday. While foreign institutional investors pumped in Rs95.01 crore, domestic investors pooled in Rs225.30 crore.


Amara Raja Batteries has drawn up a Rs14 crore expansion plan for enhancing the capacity of its four-wheeler battery manufacturing unit at Chittoor. This expansion, will take the battery capacity up from 5.6 million units to 6 million units a year. The stock settled at Rs387 on the NSE, up 1.43% from its previous close.


Cairn India has inked a farm-in agreement with PetroSA for exploring for crude oil and natural gas in the offshore Block 1 in the Orange Basin on the west coast of South Africa. The closure of the transaction is however subject to South African regulatory approvals. Located in the geologically proven Orange Basin along the north-western maritime border of South Africa with Namibia, the block is on trend with the discovered Kudu and Ibhubesi gas fields. Cairn India gained 0.12% to close at Rs334.55 on the NSE.



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