12:40pm Why Hindalco gain?
Supreme
Court on Wednesday cancelled 214 coal blocks allocated by government since 1993
to 2010 but exempted four coal blocks (including Sasan UMPP, NTPC and SAIL).
The
company had been allocated four coal blocks, which are Mahan coal block jointly
with Essar Power, Tubed coal block jointly with Tata Power, Talabira II &
III coal blocks jointly with Mahanadi Coal Fields and Nayveli Lignite
Corporation, and Talabira I coal block.
Mahan,
Tubed and Talabira II & III Coal blocks are not yet in operation while
Talabira I coal block feeds coal to the power plant which supplies power to
Company's Hirakud Smelter, the company said in its filing to BSE on Thursday
during market hours.
Post
market hours yesterday, the aluminium major clarified that SC cancelling coal
block allocation will have 1-time impact on company of Rs 500 crore.
"We
are not expecting the captive coal immediately. We have plans to operate on
purchased coal. However, the only incremental impact of coal blocks
cancellation to be on cost of production at Hirakud smelter, which is not
expected to be significant," it said.
12:20pm Interview Auto components maker Rico Auto has
announced the sale of its 50 percent stake in FCC Rico to its Japanese partner,
FCC Company, for Rs 495 crore on Thursday. The 50:50 joint venture was for
manufacturing and supplying automobile clutch assemblies.
In an
interview to CNBC-TV18, Arvind Kapur, Chairman and Managing Director of Rico
Auto, said the company signed the deal on Thursday and has even informed the
stock exchanges.
We had a
technical collaboration with FCC since 1985. In 1996, we formed a JV with them
for the components. The growth has been pretty good in the company. Rico was
primarily an investor there with 50 percent equity. But they are the technology
provider and wanted to go it alone. Thus we very amicable settled the prices,”
Kapur said.
Rico Auto had initially invested Rs 3.95 crore
in the JV in 1996-97. The company will use the fund to pay off its debt, which
currently stands at around Rs 350-375 crore, Kapur said.
Apart from
FCC, the company has JVs with Canadian firm Magna and Chinese company Zhejiang
Jinfei. When asked whether the company is looking to sell any more stake in
other JVs just yet, Kapur replied in negative.
12:00pm Market Check
Equity benchmarks extended lossed amid
consolidation in noon trade. The Sensex slipped 168.78 points to 26299.58 and
the Nifty declined 48.30 points to 7863.55. The BSE Midcap and Smallcap indices
lost around 0.7 percent.
About 1019
shares have advanced, 1583 shares declined, and 86 shares are unchanged.
Ritu
Arora, director of investments at Canara HSBC OBC Life, sees the current
downside in the market as an opportunity for new investors to enter the market,
though not just yet. She sees more sectoral re-allocation and perhaps another
4-5 percent downside, which will give better investment opportunities.
Shares of HDFC, ICICI Bank, Hero Motocorp,
Maruti Suzuki, Cipla, Sesa Sterlite and Punjab National Bank were prominent
losers, falling 2-3 percent. ITC, TCS, Tata Motors, State Bank of India, Dr
Reddy's Labs, HUL and Bajaj Auto declined 0.9-1.7 percent.
However, Sun Pharma kept its top position in
the buying list, up 4 percent on hopes that the company may not get import
alert for Halol facility though it received Form 483. Ranbaxy Labs, which may
become a subsidiary of Sun soon, rallied 6 percent.
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