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Monday, 21 September 2015

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Corporate News 21-Sep

·         Government examining demand to lower cess on oil output
Government examining demand by oil companies to lower cess on output – Positive for Oil Companies. The government is examining a demand by oil companies to lower cess on output by switching from a fixed amount of Rs4500 per metric tonne to ad valorem as the 60% crash in crude prices has disproportionately increased the contribution of cess to their overall cost. If the government were to concede to the demand of oil producers, it would mainly benefit producers like ONGC and Oil India, Cairn India.
                                                                                                                                                                                         ·         Asian Paints to invest Rs2,300 crore on new plant
Asian Paints to invest Rs2,300 crore on new plant (of 6 lakh kilo litre p.a.) in Karnataka – long term positive for the stock .Asian Paints plans to invest up to Rs2,300 crore to set up a manufacturing plant (of 6 lakh kilo litre p.a.) at Mysore in Karnataka. The proposal for setting up the manufacturing facility in Karnataka is towards fulfilling the long term capacity requirements of the company and is subject to the future demand conditions.
                                                                                
·         PowerGrid to link solar parks with Inter-State Transmission System
PowerGrid to set up lines to link solar parks with Inter-State Transmission System – Positive for PGCIL

·         Tech Mahindra – British Telecom to shut call centres in India
British Telecom has announced plans to shut down its call centres in India to bring them back to Britain following complaints of poor customer service. The firm will continue to outsource back-office work and functions that do not involve frontline work of taking customers’ calls offshore and those jobs will most likely stay in India. The development is sentimentally negative for Tech Mahindra but no material impact on earnings.

·         Orient to invest Rs50 crore to increase fans, LEDs production
Orient Electric plans to invest around Rs50 crore over the next two years to raise its fans and lighting manufacturing capacity. With the government announcing the list of smart cities, the company expect (more) demand for energy saving electric products like fans and LED lightings.
                                                                                                                                          
·         Government mulls Axis Bank-like makeover of IDBI Bank
In an interview Finance Minister talked about reforms in PSU Banks and cited the example of Axis Bank (promoted by government-run companies and but virtually acts as a private sector bank for all purposes) in relation to IDBI Bank (the bank is governed by IDBI repeal Act 2003 which has no mention of the need for the government to maintain a minimum 51%).   
                                           
·         Jubilant Life gets USFDA nod for anti-migraine tablets
 Jubilant Life gets USFDA nod for anti-migraine tablets – positive read through for the stock .Jubilant Life Sciences has received nod from the US Food and Drug Administration ( USFDA) for its abbreviated new drug application (ANDA) for zolmitriptan orally disintegrating tablets in strengths of 2.5 mg and 5 mg. As on June 30, Jubilant Life Sciences had a total of 815 filings for formulations of which 389 have been approved in various regions globally. This includes 72 ANDAs filed in the US, of which 38 have been approved and 46 dossier filings in Europe.




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