Ripples Advisory, Sugar mills hit as excess output trips supply balance

On Tuesday, shares of sugar mills fell sharply on a sharp upward revision to output estimates. While there were fears this could happen, the quantum was significant

The government will soon have to bail the sugar industry out of its predicament. On Tuesday, shares of sugar mills fell sharply on a sharp upward revision to sugar output estimates. While there were fears this could happen, the quantum was significant. The government may have little choice but to offer support in the form of export quotas and a rupee subsidy to make it worthwhile to export sugar.

The Indian Sugar Mills Association (ISMA) revised its estimate for sugar to 29.5 million tonnes, up from its earlier estimate of 26.1 mn tonnes. Thus, output will be in excess of consumption by about 4.5 mn tonnes. The previous season had closed with inventory of 4 mn tonnes, according to ISMA.

The main reason for the revision is a surge in Maharashtra’s output to 10 mn tonnes compared to 4.2 mn tonnes in the previous year. Karnataka’s output has also been revised up. Once again, the inability of the industry or government to accurately forecast sugarcane output and yields is a problem that comes back to bite investors.

ISMA has reiterated its demand to be allowed to export some of this excess, to lower the domestic surplus and support prices. Second, mills can raise cash through export sales, which can be used for business needs and to clear mounting arrears to cane farmers, which has risen to around Rs14,000 crore, 

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Stock Market Tips, Airtel acquires India leg of GBI submarine cable

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Telecom major Bharti Airtel says it has acquired India leg of Gulf Bridge International submarine cable which will boost its data carrying capacity

 Telecom major Bharti Airtel on Tuesday said it has acquired India leg of Gulf Bridge International submarine cable which will boost its data carrying capacity.

“Under the agreement, Airtel will acquire the ownership of the India leg of GBI’s India-Middle East-Europe submarine cable. Airtel will also pick up a significant capacity on Middle East-Europe leg of GBI’s cable system,” Airtel said in a statement.

Submarine cables are considered backbone of internet. Airtel and GBI have also agreed to formulate joint “go to market” strategies and leverage the footprint of their respective global networks to serve global customers.

“With this, we are adding a large capacity to meet the growing data, content demand in markets like India as well as serve the connectivity needs of global carriers and enterprise customers. This will also complement Airtel’s existing global network spanning 250,000 Rkms with presence in 50 countries and contribute to our vision of serving customers with a future ready network,” Ajay Chitkara, director and CEO for Global Voice and Data Business, Bharti Airtel said.

Ripples Advisory, Tata Motors to probe leakage of price sensitive information

The Securities and Exchange Board of India (SEBI) on Tuesday directed Tata Motors to conduct an inquiry into the leakage of unpublished price sensitive information relating to financials prior to their official announcement in the stock exchanges.

The SEBI order comes after it probed the leakage of Tata Motors financial numbers for the quarter ended December 31, 2015 on Whatsapp groups ahead of its filing with the stock exchanges.

According to SEBI, the financial numbers of Tata Motors for the quarter ended December 31, 2015 was officially announced to the stock exchanges on February 11, 2016 at 15.16 hours.

But the financial numbers matching that of the results for the quarter ended on December 31, 2015 were in circulation on Whatapp group since 12.29 hours.

The SEBI had directed Tata Motors to conduct an internal inquiry into the leakage of unpublished price sensitive information relating to its financial results and take appropriate action against those responsible.

The market regulator said the scope of such inquiry shall include and not be limited to determination of the possible role of following persons in relation to the aforesaid leakage of unpublished price sensitive information:

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Indian Oil, JetPrivilege Partner for Earning Flying Miles Scheme

JetPrivilege, the frequent flyer programme of Jet Airways, on Tuesday announced its partnership with state-run Indian Oil Corp (IOC) to allow customers earn flying miles under the JetPrivilege frequent flyer programme when they buy petrol or diesel.

This is the first time that a frequent flyer programme (FFP) in India has partnered with the energy sector to allow flyers to earn as well as redeem points every time they refuel at select Indian Oil outlets, according to a JetPrivilege and IOC joint statement here.

"Alternatively, JetPrivilege members can also redeem their existing JPMiles to purchase fuel at the same outlets," it said.

Until now, frequent flyer programmes had been limited to hotel bookings, dining out or shopping.

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As per this arrangement, JetPrivilege members can now earn flying miles whenever they buy petrol or diesel from select Indian Oil outlets by mentioning their frequent flyer number at the time of payment. They can also pay for transport fuel by redeeming their flying miles.

JetPrivilege members will earn one JPMile on every Rs 150 spent on regular fuel and three JPMiles on every Rs 150 spent on XtraPremium, or branded, fuel at IOC outlets, the statement said.

Consumers can also redeem the accumulated JPMiles for free flight tickets.

The facility to earn or redeem flying miles will initially be available at select Indian Oil outlets in Mumbai and Delhi. This will be expanded to over 500 outlets across eight cities in 2018, the statement added.

Commenting on the development, Jet Privilege Pvt Ltd MD Manish Dureja said in the statement: "Our partnership with an iconic Indian brand like Indian Oil gives our members even greater choice and flexibility in how they earn and use their JPMiles."

"Indian Oil always strives to add to the refuelling experience of its customers. Our association with JetPrivilege would be giving one more reason for customer to fuel with us," IOC Executive Director (Retail) Sanjeev Jain said.

Torrent Power Seeks 2 LNG Cargoes for April, May - Trade Sources

India's Torrent Power is seeking two liquefied natural gas (LNG) cargoes for delivery across April and May via a tender process, trade sources said.

The delivery windows are April 7 and May 30 and offers are due on March 7 and stay valid until March 9, traders said.

(Reporting by Oleg Vukmanovic in LONDON and Jessica Jaganathan in SINGAPORE, editing by Jason Neely)

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पीएनबी मामले में चंदा कोचर-शिखा शर्मा को समन

पीएनबी मामले में एसएफआईओ ने दूसरे बैंकों से भी पूछताछ शुरू कर दी है। इस मामले में एसएफआईओ ने आईसीआईसीआई बैंक की चंदा कोचर और एक्सिस बैंक की शिखा शर्मा को समन किया है। पीएनबी मामले में दोनों से पूछताछ होगी। बता दें कि इस मामले में एक्सिस बैंक, आईसीआईसीआई बैंक का नाम सामने आया है। चंदा कोचर आईसीआईसीआई बैंक, शिखा शर्मा एक्सिस बैंक की एमडी हैं।

चंदा कोचर और शिखा शर्मा को आज पेश होना था लेकिन निजी कारणों से चंदा कोचर आज पेश नहीं हो सकीं। पेश होने के लिए चंदा कोचर ने 10 दिन का वक्त मांगा। वहीं शिखा शर्मा आज एसएफआईओ के सामने पेश हो सकती हैं। पीएनबी के एमडी सुनील मेहता को बुधवार को पेश होने का समन भेजा गया है।

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Pipavav Founders sent Rs5,440 crore Arbitration notice by Reliance Infra

Anil Ambani-led Reliance Infrastructure Ltd on Monday said the company and its wholly-owned subsidiary Reliance Defence Systems Pvt. Ltd have issued a Rs5,440 crore arbitration notice to founder-promoters of erstwhile Pipavav Defence and Engineering Ltd, citing a breach of warranties..

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Exactly two years ago, Reliance Defence had bought Pipavav Defence, India’s largest shipyard, from the Gandhis of SKIL Infrastructure Ltd. Later, it bought another 26% stake in the company through an open offer.

In a stock exchange filing, Reliance Infra said it is making indemnity claims of Rs5,440.38 crore under the purchase agreement dated 4 March 2015 against Nikhil and Bhavesh Gandhi and their companies SKIL Infrastructure, Grevek Investments and Finance Pvt. Ltd, and SKIL Shipyard Holdings Pvt. Ltd.

Reliance Infra did not disclose the nature of these breaches.

“The company has discovered that there have been serious breaches of warranties and representations made by the founder-promoters (of Pipavav Defence). As per the share purchase agreement, we are entitled to claim the loss caused in an arbitration,” said a person aware of the development, on condition of anonymity.

Warranties are assurances of the state of affairs and governance standards of the company, and any breach can lead to a claim.

Reliance Infra is convinced of the breaches discovered and is therefore compelled to enforce its rights, this person added.

Reliance Group declined to furnish additional details.

Calls and messages received no response from Nikhil Gandhi, founder-chairman at Pipavav Defence.

Composite PMI shows Private sector Activity Contracted in February

Scarcely did we rejoice about GDP growth picking up in the December quarter than the Purchasing Managers’ Indices (PMI) delivered bad news. The Nikkei India Composite PMI Output Index, a gauge of conditions in both the manufacturing and services sectors, showed that private sector activity contracted in February 2018. The composite index fell from 52.5 in January to 49.7 in February. A reading below 50 indicates contraction from the previous month.

The composite index was dragged lower by the services PMI, which fell from 51.7 in January to 47.8 in February. Manufacturing, too, lost momentum during the month, falling from January’s 52.4 to 52.1, although it continued to expand.

Which sectors dragged down the services index? The PMI survey says, “Downturns in consumer services, finance & insurance, real estate & business services outweighed the upturns in information & communication and transport & storage.” What’s more, consumer services and real estate & business services reported declines in new business.

The PMI numbers for February indicate a loss of momentum in the economy. Although it’s still not reason for alarm, perhaps what it shows is that the recovery is going to be slow. There are, after all, headwinds emanating from higher interest rates, higher inflation, the parlous state of the banking sector and from the external sector.

Within the services sector PMI, the input price and prices charged indices moved up. Taken together with the rise in output prices in the manufacturing PMI, it shows the return of inflationary pressures.

It is also unfortunate that the “future output” sub-index in the manufacturing PMI and the “business expectations” sub-index in the services PMI have moved down in recent months, indicating that animal spirits among entrepreneurs are drooping.

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Negative Asian cues pull Equity Indices lower

Negative Asian cues -- on the prospect of global trade wars -- pulled the key indices of the Indian equity market lower during the early morning session on Monday.

According to market observers, heavy selling pressure was witnessed in metals, auto and banking stocks.

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At 9.25 a.m., the barometer 30-scrip Sensitive Index (Sensex) of the BSE traded at 33,812.13 points -- down 234.81 points, or 0.69 per cent, from its previous close of 34,046.94 points.

Similarly, the wider Nifty50 of the National Stock Exchange (NSE) edged-lower. It was down by 80.25 points, or 0.77 per cent, to close at 10,378.10 points.

In the intra-day trade so far, the S&P BSE Sensex touched a high of 34,034.28 points and a low of 33,795.38 points.

The key indices of the Indian equity market were closed last Friday to mark the festival of Holi.

On Thursday -- the previous trade session -- both the key indices closed on a flat-to-negative note due to negative global cues and the stress being faced by the banking sector.

However, a minor pullback rally led by healthy GDP growth data for the third quarter of 2017-18 pared some losses.

Consequently, the Nifty50 had inched lower by 32.7 points, or 0.31 per cent, to close at 10,458.35 points, while the Sensex closed at 34,046.94 points -- declined 95.21 points, or 0.28 per cent.

PNB Fraud: NCLT Bars 64 Firms from Selling Assets

The National Company Law Tribunal (NCLT) has restrained over 60 companies, including those belonging to Rs 12,600-crore PNB fraud accused Nirav Modi and his uncle Mehul Choksi, from selling their assets, according to a government announcement on Sunday.

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The ex-parte NCLT order was passed on a petition filed under various sections of the Companies Act 2013 by the Union Corporate Affairs Ministry last week before the Mumbai bench of the NCLT, the ministry said.

The NCLT has granted an injunction against the specified entities from "removal, transfer or disposal of funds, assets and properties" till further orders, the announcement said.

The order restraining 64 entities include those of Nirav Modi, Mehul Choksi and some companies related to the fraud on Punjab National Bank (PNB). These include Gitanjali Gems, Gilli India, Nakshatra Brands, Firestar Diamond, Solar Exports and Stellar Diamond.

According to the ministry, the NCLT has posted the matter for further hearing on March 26 when the entities concerned have been asked to present before the tribunal, failing which the matter would be heard ex-parte.

Besides the PNB, several other government-owned banks, including Bank of Baroda, Oriental Bank of Commerce and Corporation Bank, have reported fraud in the recent period.