Prior to joining Union Bank, Mundra was the chief executive of BoB’s European operations based in London
New Delhi/Mumbai: The finance ministry has cleared the name of Union Bank executive director SS Mundra as the new chairman and managing director (CMD) of Bank of Baroda (BoB), reports PTI quoting sources.
For the 58-year-old Mundra, this is a second home-coming as he started off his career with Bank of Baroda.
When contacted, Mundra confirmed the development and said he will be taking over charge later this evening itself.
“It is a great legacy of the bank (BoB) and it is special for me as this is my parent bank,” he told PTI.
Prior to joining Union Bank, Mundra was the chief executive of BoB’s European operations based in
Mundra, who joined BoB as a directly recruited officer in 1977, has held various posts within the bank, right from branch manager to heading treasury operations.
A Master’s in Commerce, Mundra is also a certified associate of Indian Institute of Banking and Finance and fond of reading on leadership and banking.
Fuel pricing reforms are a must, and these look unlikely in the near term, says Nomura Equity Research
Public sector oil companies (oil PSUs) have seen sharp upward moves and large volatility in the stock market over the last few days. This is an over-reaction. The diesel price increases last week were relatively minor, and it is believed that such an increase on a regular basis is not sustainable, especially as the general elections approach, says Nomura Equity Research.
Indian Oil Corporation (IOC) announced the following price-increase decisions:
Nomura believes that fuel pricing reforms look unlikely in the near term. Of course, even as OMC stocks have seen some rally over the last one month, valuations remain un-demanding. Hence Nomura recommends ‘BUY’ on all three oil marketing companies—BPCL, HPCL and IOCL.
The brokerage firm has maintained its preference for OMCs over upstream PSUs (public sector units). It thinks that macro concerns remain elevated, and believes that upstream oil PSUs are vulnerable to higher subsidy sharing. With the government’s priority on fiscal deficit control (amid revenue slippages) this year, and likely doling out of populist measures in FY14F ahead of the 2014 elections, the near-term outlook remains weak for upstream oil PSUs.
The government has highlighted that last week’s price actions are in line with the Kelkar Committee report on the road-map for fiscal consolidation. But Nomura highlights that even if the price action is positive, it is much softer than what the Kelkar committee has recommended.
As per IOC’s statement, due to the price increase and no discount on bulk sales, diesel under-recoveries would reduce by Rs34 billion for the remaining FY13F and Rs150 billion for FY14. Also, due to the increase in LPG subsidised cylinder cap (from six to nine), IOC expects under-recoveries to increase by Rs52 billion in FY13F and Rs100 billion in FY14F.
So overall under-recoveries would increase by Rs18 billion for FY13F (1.1% of total likely Rs1.6 trillion in FY13F) and decline by Rs50 billion for FY14F (3.8% of total likely Rs1.3 trillion in FY14F), as per Nomura’s estimates.
The market volatility is down even as the indices are rising slowly. A quick correction may be round the corner
The Indian market closed higher for the third day in a row on buying in blue-chips and a positive trend in the European markets. The market volatility is down even as the indices are rising slowly. A quick correction may be round the corner. The National Stock Exchange (NSE) reported a volume of 61.04 crore shares and advance-decline ratio of 763:931.
The market opened in the green on the positive trend shown by domestic corporates in their third quarter earnings reports. Reliance Industries (RIL) which announced better-than-expected December quarter numbers, after the market closed on Friday, led the gainers in opening trade. However, Asian markets were mostly down on nervousness ahead of the Bank of Japan’s two-day meeting which begins today.
The Nifty opened trade 22 points higher at 6,086 and the Sensex resumed trade at 20,133, a gain of 94 points over its previous close. A minor bout of profit booking saw the indices paring part of their gains and trading sideways in the morning session.
The sell-off in realty, auto and banking stocks led the market to its lows in noon trade with the Nifty falling to 6,065 and the Sensex retracting to 20,056.
However, a positive opening of the European markets as finance ministers of the countries in the region are expected to meet in Brussels today to discuss the European Stability Mechanism, boosted domestic sentiments in post-noon trade.
The market continued moving northwards on support from capital goods, oil & gas and fast moving consumer goods stocks. The gains helped the benchmarks hit their day’s high with the Nifty rising to 6,094 and the Sensex climbing to 20,163.
The market closed off the highs as the indices pared a part of their gains in late trade but ended in the positive for the third day in a row. The Nifty closed 18 points (0.30%) higher at 6,082 and the Sensex finished the trading session at 20,102, a gain of 63 points (0.31%) over its previous close.
Among the broader indices, the BSE Mid-cap index declined 0.14% and the BSE Small-cap index added 0.02%.
The top sectoral gainers were BSE Capital Goods (up 1.49%); BSE Oil & Gas (up 1.31%); BSE Fast Moving Consumer Goods (up 1.06%), BSE Power (up 0.75%) and BSE TECk (up 0.29%). The main losers were BSE Realty (down 1.31%); BSE Healthcare (down 0.41%); BSE Auto (down 0.31%); BSE Bankex (down 0.21%) and BSE PSU (down 0.15%).
Seventeen of the 30 stocks on the Sensex closed in the positive. The chief gainers were Reliance Industries (up 2.35%); BHEL (up 2.25%); Larsen & Toubro (up 2%); Maruti Suzuki (up 1.87%) and Bharti Airtel (up 1.82%). The key losers were Sun Pharmaceutical Industries (down 1.86%); Tata Motors (down 1.55%); NTPC (down 1.46%); TCS (down 1.45%) and Cipla (down 1.38%).
The top two A Group gainers on the BSE were—United Breweries (up 9.43%) and Reliance Communications (up 6.91%).
The top two A Group losers on the BSE were—Opto Circuits (down 8.53%) and Oberoi Realty (down 3.96%).
The top two B Group gainers on the BSE were—JMT Auto (up 19.92%) and Hathway Bhawani Cablenet and Datacom (up 19.90%).
The top two B Group losers on the BSE were—Quintegra Solutions (down 18.82%) and Gujarat Themis Biosyn (down 13.57%).
Out of the 50 stocks listed on the Nifty, 30 stocks settled in the positive. The major gainers were Reliance Infrastructure (up 3.99%); Bharti Airtel (up 2.36%); BHEL (up 2.23%); RIL (up 2.19%) and L&T (up 2%). The chief losers were DLF (down 2.53%); Sun Pharma (down 1.69%); HDFC (down 1.67%); TCS (down 1.50%) and Tata Motors (down 1.40%).
Markets in Asia settled mostly lower as investors await the outcome of the two-day meeting of the Bank of Japan, which began today, for expectations of fresh stimulus measures to spur the economy. Analysts termed the performance as an “adjustment” after the recent highs.
The Hang Seng shed 0.05%; the Jakarta Composite dropped 0.57%; the KLSE Composite tumbled 2.43%; the Nikkei 225 tanked 1.52%; the Seoul Composite fell 0.05% and the Taiwan Weighted lost 0.10%. On the other hand, the Shanghai Composite climbed 0.48% and the Straits Times rose 0.31%.
At the time of writing, the CAC 40 of France was up 0.25%; the DAX of Germany rose 0.35% and UK’s FTSE was up 0.63%. At the same time, the US stock futures were marginally in the green. Markets in the US will remain closed today for a local holiday.
Back home, foreign institutional investors were net buyers of shares totalling Rs1,165.69 crore on Friday while domestic institutional investors were net sellers of equities aggregating Rs967.62 crore.
Tecpro Systems has bagged Rs139.8 crore worth of orders from the the West Bengal Power Development Corporation for supply of ash handling plant turnkey package for its upcoming project. With the new order, the total order book stands at Rs4,500 crore, the engineering, procurement and construction company said in a statement. The stock jumped 3.18% to close at Rs154 on the NSE.
Leading healthcare provider Apollo Hospitals has decided to set up a Proton Therapy centre in India for cancer treatment, which is stated to be the first of its kind across South-East Asia, Africa and Australia. Hospital sources said that this launch, which would mark the beginning of the next wave of advancement in radiation therapy in India, would cost approximately Rs400 crore. The stock declined 1.65% to close at Rs780 on the NSE.
Pharma major Aurobindo Pharma today said it has received final approvals from the US health regulator to manufacture and market Oxacillin for Injection used for treating bacterial infections in the American market. The company has received final approvals from the USFDA to manufacture and market Oxacillin for Injection USP, packaged in 1g and 2g vials and Oxacillin for Injection USP 10g/vial pharmacy bulk package, Aurobindo Pharma said in a statement. The stock climbed 1.79% to settle at Rs196 on the NSE.