Stock Market Latest News Today:SKS Microfinance Rose by 0.82% Today

SKS Micro finance inches up after completing securitization transaction

SKS Micro finance rose 0.82% to Rs 177.80 at 11:30 IST on BSE after the company said it has completed its third substantial micro finance securitization transaction of Rs 215 crore during current financial year.

The announcement was made before market hours today, 19 December 2013.

Meanwhile, the S&P BSE Sensex was down 157.41 points or 0.75% at 20,702.45.

On BSE, so far 81,000 shares were traded in the counter as against average daily volume of 2.63 lakh shares in the past one quarter.

The stock was volatile. The stock rose as much as 2.66% at the day's high of Rs 181.05 so far during the day. The stock lost as much as 0.65% at the day's low of Rs 175.20 so far during the day. The stock had hit a 52-week high of Rs 190.40 on 9 January 2013. The stock had hit a 52-week low of Rs 95.60 on 24 May 2013.

The stock had underperformed the market over the past one month till 18 December 2013, declining 3.74% compared with the Sensex's 0.04% rise. The scrip had, however, outperformed the market in past one quarter, jumping 31.95% as against Sensex's 4.5% rise.

The small-cap company has equity capital of Rs 108.21 crore. Face value per share is Rs 10.

Commenting on the development, S. Dilli Raj, Chief Financial Officer, SKS Microfinance said, "With this, the total sum of securitizations completed for FY 2014 (YTD) is Rs 616.81 crore. This transaction is priced at a good 200 basis points lower than our cost of borrowing for the previous quarter".

SKS Microfinance said it has downloaded the receivables from micro loans extended to more than 2,50,000 rural women entrepreneurs to a Special Purpose Vehicle, and Pass Through Certificates (PTCs) have been purchased by a major private sector bank. The entire pool qualifies for priority sector treatment as per RBI's priority sector lending guidelines, it added.

The pool is rated A + (SO) by a leading rating agency signifying 'adequate degree of safety regarding timely servicing of financial obligation'. Such instruments carry low credit risk, the company said in a statement. The pool is structured with geographical diversity as it comprises receivables from 14 non-Andhra Pradesh states and has been subjected to a seasoning of three months, it added.

SKS Microfinance reported net profit of Rs 16.34 crore in Q2 September 2013 as against net loss of Rs 262.16 crore in Q2 September 2012. Total income rose 67% to Rs 135.19 crore in Q2 September 2013 over Q2 September 2012.

SKS Microfinance is a non banking financial company – micro finance institution (NBFC-MFI), registered and regulated by the RBI, whose mission is to provide financial services to low-income households. SKS operates across 15 states of India. They include: Andhra Pradesh, Karnataka, Maharashtra, Odisha, Madhya Pradesh, Bihar, Uttar Pradesh, Rajasthan, Uttaranchal, Haryana, West Bengal, Jharkhand, Chhattisgarh, Kerala and Punjab.

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Stock Market Latest News Tesco Invest USD:110 Million in India

Tesco to invest USD 110 million in India Trent says

• Tesco in talks with company to buy stake in Trent Hypermarket
• Tesco will apply to Foreign Investment Promotion Board (FIPB) for hypermarket stake buy
• Tesco to own 50 percent in hypermarket if FIPB approves deal
• Tesco, company plan to operate on existing Star Bazaar stores

Commerce Minister Anand Sharma :

• Welcome Tesco's decision to invest in India
• Tesco to establish stores in Maharashtra, Karnatak
• Expect other international retailers to look at investing in India
• Tesco investment to help transforming Indian retail industry
• MBR FDI policy's key objective to manage post harvest losses
• MBR policy seeks to secure remunerative prices for farmers

CNBC-TV18 Exclusive: Tesco says –

• Like working with the Tata group in India
• Have developed great relations with local suppliers, farmers
• See tremendous potential in Indian market along with Tatas

PSU banks in focus

• Banks to go on strike today 
• Trade unions have decided to go on day long strike to press for wage revision and other demands

PTC India divests 16.76 percent stake in Meenakshi Energy for Rs 209 crore PTC India:

• Meenakshi Energy setting up 1,000 MW Andhra power plant
• Meenakshi Energy commissioned 300 MW of Andhra plant

Other stocks and sectors that are in news today:

• I-T Department versus Kingfisher Airlines (KFA): Karnataka High Court reserves order in TDS case against KFA
• Domestic roadshows for IOC divestment to begin today will end on December 20
• JM Financial allots 1.2 crore warrants to Vikram Pandit at Rs 19.05 apiece on a preferential basis
• JK Tyre allots 43 lakh warrants to promoters at Rs 115/Warrant
• Tata Steel puts Borivli land worth Rs 1000 crore up for sale: Mumbai Mirror
• Corporate action: HCL Technologies ex-date for dividend Rs 6 per share
• Board Meeting: Pipavav Defence AGM

SEBI chairman UK Sinha says

• Will consider not making IPO grading mandatory
• To consider making IPO grading non-compulsory in 7-10 days
• Shelf prospectus eligibility to list should be expanded
• To initiate process to bringing SMEs and PEs on common platform

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Stock Market News WPI Inflation Accelerates in November

NEW DELHI: With the Wholesale Price Index (WPI) for the month of November rising to a 14-month high of 7.52%, the case for a rate hike by the Reserve Bank of India (RBI) in its upcoming monetary policy review seems to have strengthened, say analysts.
The repo currently stands at 7.75%, while the marginal standing facility is at 8.75%, maintaining a corridor of 100 bps. An interest rate increase will be critical in another respect: as a protection from the effects of the withdrawal of ..the stimulus programme by the US Federal Reserve.

The repo currently stands at 7.75%, while the marginal standing facility is at 8.75%, maintaining a corridor of 100 bps. An interest rate increase will be critical in another respect: as a protection from the effects of the withdrawal of the stimulus programme by the US Federal Reserve.

Abheek Barua, Chief economist at HDFC BankBSE -1.12 % said that RBI's actions will be data dependant rather than some predetermined action on the trajectory of inflation. "What I can say is that the WPI does not give any room for comfort. Based essentially on the CPI, there will be rate action, and we are expecting 25 basis points," Barua said.

Barua however is of the opinion that a rate hike may not be the right solution to help bring down inflation. "The irony is that raising rates isn't helping. I think the government will have to get down to more active supply management because the problem is largely with vegetables and meat and fish, which is the protein basket," he added.

Sujan Hajra, Chief Economist at Anand Rathi Securities feels that a 25 basis points rate hike is likely. "I am looking at a total 50 bps of hike for the financial year. I don't think the government will be completely averse to a rate hike as it has said that inflation remains its biggest worry," he opined.

Echoing the same sentiment, Rupa Rege Nitsure, Chief Economist at Bank of BarodaBSE -0.39 % said, "Earlier I was expecting only 25 bps hike in repo rate, but now I am looking at either a 50 bps CRR or a 25 bps hike in repo and 25 bps in CRR."

According to Nitsure, "The pressures are across the board. Rupee depreciation, diesel price increases are all pushing up inflation. If the RBI really wants to have effective monetary policy transmission, they should hike CRR ( cash reserve ratio) by 50 bps as liquidity is sloshing around and that is adding to aggregate monetary demand."

Saugata Bhattacharya, Chief Economist at Axis BankBSE 1.67 % feels that the language of the monetary policy statement will be very tough. "The bulk of the probability is still a 25 basis point rate hike, but given the significantly higher CPI and WPI number a 50 basis points cannot be ruled out."

"Earlier we were expecting the RBI to pause in December policy and raise the rate to 8 percent in January, but after the CPI and WPI data we expect two more rate hikes - one in December and another in January taking the repo rate to 8.25 per cent" Bhattacharya added. 

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