Shares of InterGlobe Aviation Ltd are not very far from their lifetime highs of 1,716 seen on 28 May. Besides the airline’s stock, at 1,656.25 currently, is nearly 6% above the levels seen before the troubles between its two promoters intensified in July

InterGlobe runs IndiGo, India’s largest airline by market share. Clearly, investor worries about the turbulence at the top appear to have subsided, at least for now.

In fact, Tuesday’s annual general meeting concluded on a good note. “The consensus between promoters on ‘related party transaction’ policy and board composition is sentiment-positive," wrote Ansuman Deb of ICICI Securities Ltd in a report on Thursday. Shareholders have approved the alteration of the company’s Articles of Association to increase the board size to 10 from six earlier.

IndiGo’s operational performance has remained unaffected by the promoter squabbles so far. This is evident from the impressive June quarter numbers. One bright spot has been the better-than-expected yields (a measure of pricing) improvement of 12.7%.

Having said that, June quarter financial performance cannot be expected to be replicated in the September quarter, as the latter is traditionally leaner. The airline has done its bit to lower expectations.

During its June quarter earnings conference call, Ronojoy Dutta, chief executive officer of IndiGo, said, “We are witnessing some lower fares in the 0-15 day booking window and expect this to add some pressure to our unit revenues in the second quarter."

Nonetheless, crude oil prices have behaved and that is comforting for the sector in general. “The fall in aviation turbine fuel prices in the first 2 months of Q2FY20 will help offset weaker (versus Q1FY20) yields," said analysts at SBICAP Securities Ltd in a report on 22 August. “This will help reduce cost and improve RASK-CASK spread." RASK and CASK are revenue and cost unit measurements for airlines.

During the call, Dutta added, “I want to remind our shareholders that in the second quarter last year, we registered a negative 16% PBT margin. We will, of course, do better than that this year but how much better is still an open question." PBT is short for a profit before tax.

Going ahead, incremental benefits from the grounding of Jet Airways (India) Ltd could well be limited. IndiGo has been a key beneficiary of Jet Airways’ downfall. It flew 17% more domestic passengers in July compared to last year. The airline’s domestic market share stood at an envious 47.8%.

The sharp appreciation in IndiGo’s shares over the past year, suggests investors have taken this into cognizance. However, meaningful appreciation hereon could well be limited given the lean September quarter unless, of course, the airline surprises dramatically. Investors should watch the traction from the international market in future.

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NEW DELHI: Finance NSE 0.15 % Minister Nirmala Sitharaman’s decision to roll back enhanced surcharge on long-term and short-term capital gains will apply to incomes from derivative trades as well

Sitharaman on Friday removed the surcharge on incomes arising from the transfer of equity shares, units of equity oriented-mutual funds and units of business trusts. 

While gains from trading in futures and options (F&O) segment are usually treated as business income, for foreign portfolio investors, they have considered capital gains because derivative exposure taken by these investors are considered as capital assets. 

Friday’s announcement meant tax payable on gains arising from the transfer of these instruments will be also be exempted from the levy of the enhanced surcharge. 

“It is decided that the tax payable on gains arising from the transfer of derivatives (future and options) by FPIs, which are liable to a special rate of tax under Section 115AD, shall also be exempted from the levy of the enhanced surcharge," the government said in a release 

The surcharge, meanwhile, will still be applicable on capital gains from debt instruments and other income such as interest, noted Jairaj Purandare, Chairman, JMP Advisors. 

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The Zambian government is determined to "urgently secure" an investor for Konkola Copper Mines (KCM) once the court processes over the disputed liquidation of the mine are concluded, the mines minister said on Thursday

Vedanta Resources has been locked in a dispute with the Zambian government since May when Lusaka appointed a liquidator to run KCM, which is 20% owned by Zambia's state mining company ZCCM-IH and the rest by Vedanta.

"I would like to categorically state that, much as the Konkola Copper Mines matter is in court, government is willing to listen to any progressive talks that will facilitate an amicable exit of the investor," Minister of Mines and Minerals Development Richard Musukwa said in a statement.

"Government is determined, once the court processes are concluded to urgently secure a credible investor in an open and transparent manner."

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After InterGlobe Aviation Ltd reported 13% growth in yields for the June quarter, investors were probably expecting smaller peer, SpiceJet Ltd, to follow suit. InterGlobe Aviation runs IndiGo, the country’s largest airline by market share

Unfortunately, that hasn’t played out. Paarth Gala, associate (institutional research) at Prabhudas Lilladher Pvt. Ltd said SpiceJet’s yield for the June quarter increased by just 2% year-on-year. Broadly, this is a tad below Street expectations. As such, Gala was expecting it to increase by 3%.

“The airline’s operations remained stressed for a large portion of this quarter due to the continued grounding of its superior B737 MAX aircraft," highlighted the management in the investor presentation.

This limited the airline’s ability to take its yields up, owing to passenger disruptions and re-accommodation; while simultaneously increasing its fixed costs on this category of aircraft, added the company.

Even so, SpiceJet clocked a handsome 35% increase in operating revenues, helped by capacity expansion. A combination of robust revenue growth and 3% decline in fuel CASK (cost per available seat km, a unit measurement for airlines) helped the company clock 88% growth in its Ebitdar. Ebitdar is earnings before interest, taxes, depreciation, amortization and lease rentals, which is a key measure of profitability for airlines.

At the net level, SpiceJet reported a net profit of about 262 crores, far ahead of the Street estimate of 137.5 crores. One of the primary reasons for this steep jump in profitability, versus expectations, is the sharp growth in other income. That’s because SpiceJet has recognized aircraft and supplemental lease rentals worth 114 crores, incurred during the quarter relating to the 737 MAX aircraft, as other income.

As such “adjusted profit of 140 crores is broadly in line with our estimates," said SBICAP Securities Ltd’s analysts in a note.

SpiceJet added 32 aircraft during the quarter, taking its total fleet count to 107 as on 30 June 2019. The company had expected its grounded 737 Max aircraft to resume normal operations by July-August. However, the uncertainty around the resumption of services still persists.

The company’s shares have outperformed the BSE 500 index considerably so far in FY20. “Sector consolidation is an opportunity for SpiceJet to recoup lost market share, but the ability to profitably deploy the massive increase in capacity will be the key to the stock’s performance," said SBICAP analysts in a report on 15 July.

Here, substantial delays in resuming the 737 Max operations could hurt capacity growth. Yields are paramount as well. Unfortunately, considering that the current quarter is seasonally weak, the scope for expansion in SpiceJet’s yields appears limited.

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Zambian President Edgar Lungu will not meet the chairman of Vedanta Resources to discuss the disputed liquidation of its Konkola Copper Mines (KCM) on his visit to India this week, a statement from the Zambian State House said on Tuesday

Mumbai-listed Vedanta said earlier on Tuesday it would meet Lungu and his team for further discussions on KCM, but the Zambian State House said there was no meeting planned between the president and Vedanta Chairman Anil Agarwal or his representatives.

Vedanta has been locked in a dispute with the Zambian government since May when Lusaka appointed a liquidator to run KCM, which is 20% owned by Zambia's state mining company ZCCM-IH and the rest by Vedanta.

Zambia has accused KCM of breaching the terms of its licence, which Vedanta denies.

"The president is expected to meet representatives from 12 Zambian-based Indian companies, and KCM, whose majority shareholder is Vedanta, is not one of them," the State House said.

"His Excellency the President has already stated that the Zambian government will follow the Zambian people's wish over the KCM issue."

The miner had said it was looking forward to engaging with Lungu and his team in India and to building on discussions held last week in Lusaka.

The dispute at Africa's second-largest copper producer has intensified concerns among international miners about resource nationalism in Africa.

Vedanta has taken the matter to arbitration and tried in the meantime to block KCM's liquidation via courts in both South Africa and Zambia. However, the government has continued with the process and said in July it expected numerous bids for KCM within weeks.

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This project is funded by the Department of Telecom (DOT), Government of India and BSNL has been appointed as the nodal agency by the DoT for project execution

Shares of Himachal Futuristic Communication (HFCL) surged 8.5 percent intraday on August 20 after the company received purchase order worth Rs 2,467 crore.

The company has received a purchase order worth Rs 2,467 crore from Bharat Sanchar Nigam for setting up the converged nationwide IP /MPLS backbone & access network for armed forces under the network for spectrum (NFS) programme of the government.

The scope of work also includes operation and maintenance for a period of 10 years including 3 year warranty period for which Rs 862 crore will be paid by the Indian Defence Services after the warranty period is over.

This project is funded by the Department of Telecom (DOT) and the Government of India. BSNL has been appointed as the nodal agency by the DoT for project execution.

Himachal Futuristic Communication was quoting at Rs 19.85, up Re 1, or 5.31 percent on the BSE.

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State Bank of India (SBI), the country's largest lender, on Tuesday, announced processing fee waiver on car loans during the upcoming festival season in a bid to boost car sales. The bank is also offering the lowest interest rate starting 8.70 per cent on car loans, with no escalation in interest

"The SBI has waived processing fees on car loans during the festival season. The bank is offering the lowest interest rate starting 8.70 per cent to customers opting for a car loan, with no escalation in interest. For customers applying for a car loan online through digital platforms like YONO/ the bank's website, it is providing 25 bps concession on the interest rate. Salaried customers can also avail loan up to 90 per cent of the car's on-road price," the lender said in a statement.

To bring more smiles, the SBI has also announced personal loan up to Rs 20 lakh at the lowest interest rate starting from 10.75 per cent with the longest re-payment tenure of 6 years, reducing the EMI burden on customers. 

Additionally, salary account customers can avail pre-approved digital loans up to Rs 5 lakh through YONO (the SBI's integrated digital banking app) in four clicks, said the statement.

The bank is also offering education loan up to Rs 50 lakh and up to Rs 1.50 crore for studies in India and abroad respectively at an interest rate starting 8.25 per cent. Customers will be offered the longest re-payment tenure of 15 years which will effectively reduce their EMI burden.

Recently, the SBI reduced MCLR (marginal cost of funds based lending rate) by 15 bps due to which overall home loan interest rate is down by 35 bps since April 2019. Currently, the bank offers the cheapest home loan with an interest rate of 8.05 per cent as repo rate linked home loan and this rate will be applicable to all existing and new loan from September 1.

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The company reported standalone net loss during the quarter stood at Rs 87.35 crore as compared to net loss of Rs 55.24 crore in the previous year quarter. Net revenue of the company declined substantially by 74.78 per cent at Rs 37.82 crore in April-June quarter of this fiscal as against Rs 149.94 crore in the corresponding period last year. During the April-June quarter, operating expenses dropped by 41.50 per cent to Rs 103.47 crore from Rs 176.88 crore in a year-ago period.

Other Income grew by 266.04 per cent at Rs 1.94 crore versus (Jun'18 Rs 0.53 crore). Operating Profit surged by 143.69 per cent to Rs -65.65 crore as against Rs -26.94 crores in the year-ago period, while Operating Profit Margin (OPM) contracted year-on-year to 866.00 per cent in June quarter. Interest declined by 22.25 per cent y-o-y to Rs 18.14 crore

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Shares of Tata Motors kicked off August 20 session on a bumpy track as the stock declined over 1 percent but rebounded soon to trade with a gain of about half-a-per cent.

The stock swung between gains and losses a day after CARE Ratings downgraded its long-term credit rating, in the light of the weak financial performance of its British subsidiary Jaguar Land Rover Automotive PLC (JLR).

CARE Ratings downgraded the rating on the long-term bank facilities of Tata Motors to 'AA-/Negative' from 'AA/Stable' but reaffirmed rating on short term bank facility and commercial paper at 'A1+'.

In a similar move last week, CRISIL downgraded the rating on the long-term bank facilities of Tata Motors to 'AA-/Negative' from 'AA/Negative' but reaffirmed rating on short term bank facility, commercial paper and short-term debt at 'A1+'.

Hit by the weakness in the global economy amid the US-China trade war and Brexit woes, JLR's sales have been deteriorating of late. Its wholesale volumes declined about 10.8 percent in fiscal 2019 over the previous fiscal and were about 10 percent lower year-on-year in Q1.

Reduction in volumes has been largely driven by a slowdown in China, ongoing uncertainties around diesel vehicles in Europe, and weaker volumes in overseas markets.

Given the high operating leverage in this business, declining volumes have impacted profitability, reflected in operating margins of 8.2 percent in FY19 and 4.2 percent in Q1 FY20, down from 10.8 percent in FY18 and 6.2 percent in Q1 FY19.

Shares of Tata Motors traded at Rs 121.35, up to Rs 0.60 or 0.50 percent on BSE around 0945 hours.

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Edelweiss has a positive business outlook on Ujjivan Small Finance Bank (USFB) but said the listing of USFB will mean dilution & holding company discount for the existing shareholder

Shares of Ujjivan Financial Services fell nearly 8 percent intraday on August 19 after the company's decision to launch IPO of Ujjivan Small Finance Bank. Analysts feel the listing of the bank is negative for shareholders of a microfinance lender

The stock was quoting at Rs 272.55, down Rs 11.55, or 4.07 percent on the BSE.  

Ujjivan Small Finance Bank is planning an initial public offering to raise Rs 1,200 crore. The company on August 16 filed a draft red herring prospectus with SEBI.

"Ujjivan Small Finance Bank is proposing to undertake an initial public offering of equity shares of the face value of Rs 10 each, comprising a fresh issue of equity shares by bank aggregating up to around Rs 1,200 crore," Ujjivan Financial Services said in its BSE filing on August 16.

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In a major blow to the defaulting company IL&FS' auditors Deloitte and BSR and Associates, the Mumbai bench of the National Company Law Tribunal (NCLT) on Friday said that it has jurisdiction over these firms and the authority to ban them under the Companies Act for their alleged role in financial misappropriation

Deloitte Haskins and Sells (Deloitte) and global advisory firm KPMG arm BSR had challenged the NCLT's jurisdiction to prosecute the companies and ban them after the Corporate Affairs Ministry (MCA) had sought such a five-year ban on them. 

The tribunal said that the order is "appealable" and it was aware of the fact that the case could move ahead to the National Company Law Appellate Tribunal and the Supreme Court. 

Both the audit companies have been under the MCA's scanner after the probe by the Serious Fraud Investigation Office (SFIO) found that Deloitte had disregarded the Reserve Bank of India's (RBI) regulations and turned a blind eye to the defaulting firm IL&FS Financial Service Ltd's (IFIN) "evergreening" of loans, and never cross-checked any of the certificates used by the company to mislead lenders. 

BSR too was found to be involved in such gross negligence and violation of norms.

Reacting to Friday's order, a Deloitte spokesperson said: "The NCLT's ruling is unfortunate. While we need to review the written order before determining our further course of action, we continue to believe the NCLT lacks the jurisdictional authority to adjudicate this matter."

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Utilise downsides in the pair to initiate long positions, says ICICIdirect

The Indian rupee has recovered marginally but trading lower by 12 paise at 70.93 per dollar versus Tuesday's close 70.81.

The Indian rupee extended losses for the fourth session on Tuesday, dropping 8 paise to 70.81 against the US dollar ahead of the RBI's monetary policy decision. Unabated foreign fund outflows and higher crude oil prices have taken a toll on the domestic currency's health, reported PTI.

In the past four sessions, the Indian unit has lost 202 paise, it added.

The dollar-rupee August contract on the NSE was at 70.99 in the previous session. Open interest increased 4.53% in the previous session, said ICICIdirect.

We expect the USD-INR to find supports at lower levels. Utilise downsides in the pair to initiate long positions, it added.

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The company reported a standalone net profit of Rs 18.59 crore for the quarter ended June 30, 2019, as compared to Rs 23.64 crore in the same period last year, registering a year-on-year decline of 21.36 per cent. Net revenue of the company declined marginally by 2.61 per cent at Rs 854.75 crore in the April-June quarter of this fiscal as against Rs 877.66 crore in the corresponding period last year. During the April-June quarter, operating expenses dropped by 2.81 per cent to Rs 816.98 crore from Rs 840.62 crore in the year-ago period.

Other Income grew by 127.72 per cent at Rs 6.49 crore versus Operating Profit surged by 1.97 per cent to Rs 37.77 crore as against Rs 37.04 crore in the year-ago period, while Operating Profit Margin (OPM) expanded year-on-year to 4.74 per cent in June quarter. Interest grew by 0.00 per cent y-o-y to Rs 2.69 crore, while Taxation decreased by 23.54 per cent at Rs 9.94 crore.

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ICICI Direct also said Infratel's reported revenues (without the impact of IndAS 116) at Rs 3,629.7 crore were better than its estimate of Rs 3,558.3 crore

Shares of Bharti Infratel rallied nearly 6 percent intraday on July 25 as Morgan Stanley retained positive stance on the stock after strong Q1 show.

While having an overweight call on the stock with a target price at Rs 323 (implying a 22 percent potential upside from current levels), the global brokerage house said revenue in Q1FY20 was in-line with its estimates.

The investment firm further said tenancy movement was positive this quarter with fewer tenancy deletions.

ICICI Direct also said Infratel's reported revenues (without the impact of IndAS 116) at Rs 3,629.7 crore were better than its estimate of Rs 3,558.3 crore.

The outperformance was on account of core rental revenues that came in at Rs 2,182 crore, up 3.5 percent YoY against its expectation of Rs 2,065 crore.

The company reported a net increase of 523 co-locations on consolidated basis against brokerage's expectations of net loss of 1,750 tenancies. The addition of tenancy happened after six quarters which was anyway positive development.

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If you are a risk-taker, then a sneak peek into his portfolio for the June quarter will reveal plenty of stocks that hold the potential to deliver good returns

Ashish Kacholia, an expert at spotting hidden treasures in the small and mid-cap universe, increased stake in six companies during the June quarter and kept it constant in 13, as per the shareholding data as of July 22. He also reduced stake in three companies.

Stocks of four of the above-mentioned companies have given a positive return in 2019 so far. The other two, however, are down over 20 percent year-to-date.

If you are a risk-taker, then a sneak peek into his portfolio for the June quarter will reveal plenty of stocks that hold the potential to deliver good returns.

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Insurance, capital goods,NBFCs are some of the sectors that caught the eye of overseas investors.

Foreign portfolio investors remained net buyers for the fifth consecutive month in June after pumping in Rs 2,596 crore in the equity market, as per the National Securities Depository Ltd data.

However, the inflows have steadily declined in the last four months since March 2019. The overseas investment was the lowest in June since January where FPIs turned net sellers and pulled out Rs 4,262 crore from the equity market.

According to NSDL data, total overseas investment in June 2019 stood at Rs 13,111 crore, including Rs 8,319 crore in debt and Rs 2,196 crore in hybrid securities.

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The capital infusion will help some banks to come out of the central bank's prompt corrective action and resume lending and clean up their balance sheets, she added.

The proposed Rs 70,000-crore capital infusion into public sector banks (PSBs) will provide a timely booster to these lenders, S&P Global Ratings has said.

 The move, announced in the Budget, is likely to be credit positive for the banking sector and the economy, S&P said in a note titled 'India's Budget attempts to address trust deficit in the financial sector.

"We believe the capital infusion will help PSBs make necessary haircuts on their weak corporate loans and shore up their capital adequacy," said S&P Global rating credit analyst Geeta Chugh.

The capital infusion will help some banks to come out of the central bank's prompt corrective action and resume lending and clean up their balance sheets, she added.

S&P said it believe PSBs still require substantial reforms to improve risk management, service quality, efficiency, and diversity of product offerings.

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The approval, with certain stipulations, is for the balance life of UNOSUGEN plant i.e. 19 years.

Torrent Power shares rallied 2.55 percent intraday to hit a 52-week high of Rs 279 on June 26 after Gujarat Electricity Regulatory Commission approved power procurement arrangement.

The stock was quoting at Rs 275.60, up to Rs 3.55, or 1.30 percent on the BSE at 1256 hours IST.

The company said GERC approved the power procurement arrangement of 278 MW between the company's UNOSUGEN power plant and its Licensed Distribution Business for cities of Ahmedabad, Gandhinagar and Surat.

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China is the major exporter and dumps the tyres into the Indian replacement market.

Domestic tyre stocks are having a party after the government imposed a counter-veiling duty on truck and bus radial tyre imports from China.

China is the major exporter and dumps the tyres into the Indian replacement market. Radial tyres constitute about 50 percent of the tyre demand and about 20-25 percent requirement is met through imports mainly through China. This will narrow the price differential between Chinese and domestic tyres and boost the domestic tyre demand.

Tyre stocks including Seat and MRF jumped over 2 percent each while Apollo Tyres gained over a percent. Balkrishna Industries jumped 3 percent while JK Tyre and Industries spiked over 4 percent.

The scrips have registered a loss of up to 35 percent in the last year. This move by the government is a positive sign by domestic tyre manufacturers.

JK Tyre and Industries were quoting at Rs 79.75, up to Rs 3.50, or 4.59 percent.

It touched an intraday high of Rs 81.75 and an intraday low of Rs 75.55 while Chet was quoting at Rs 928.00, up to Rs 25.20, or 2.79 percent. It touched an intraday high of Rs 939.80 and an intraday low of Rs 892.15.

MRF was quo5.05, up to Rs 24.00, or 3.24 percent. It touched an intraday high of Rs ting at Rs 56,020.00, up to Rs 1,287.30, or 2.35 percent. It touched an intraday high of Rs 56,300.00 and an intraday low of Rs 54,544.80 while Balkrishna Industries was quoting at Rs 76769.90 and an intraday low of Rs 735.00.

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Alembic now has a total of 97 ANDA approvals (85 final approvals and 12 tentative approvals) from USFDA.

The share price of Alembic Pharmaceuticals gained 2.5 percent intraday Tuesday after the company received USFDA approval.

The company has received approval from the US Food & Drug Administration (USFDA) for its abbreviated new drug application (ANDA) Oseltamivir Phosphate Capsules USP, 30 mg (base), 45 mg (base) and 75 mg (base).

The approved ANDA is therapeutically equivalent to the reference listed drug (RLD), Tamiflu Capsules, 30 mg (base), 45 mg (base) and 75 mg (base), of Hoffman-La Roche, Inc.

Oseltamivir Phosphate Capsules USP is indicated for the treatment of acute, uncomplicated illness due to influenza A and B infection in patients 2 weeks of age and older who have been symptomatic for no more than 48 hours. It is also indicated for the prophylaxis of influenza A and B in patients 1 year and older.

Oseltamivir Phosphate Capsules has an estimated market size of USD 647 million for twelve months ending December 2018 according to CQ VIA.

Alembic now has a total of 97 ANDA approvals (85 final approvals and 12 tentative approvals) from USFDA.

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