New Delhi, April 24
The Met Department's forecast of a below-normal monsoon for the year is likely to temper bullish sentiments in the stock market due to its negative impact on food inflation, interest rates and consumer demand.

Though not unexpected, the Met forecast released today assumes significance since it is the official forecast for rains in a country that is still heavily dependent on agriculture for producing food and livelihood. International weather experts have already been predicting a weak monsoon with chances of the El Nino effect which disturbs rainfall patterns.

In its monetary policy review earlier this month, the RBI, which kept interest rates unchanged, had pointed to this risk. It had cited fears of inflation and worries about a deficient monsoon this year due to the El Nino effect.

Factoring in this scenario, many experts had predicted that the RBI is unlikely to reduce interest rates anytime soon.

RK Gupta, managing director, Taurus Asset Management, said a deficient monsoon will mean that food prices will go up due to which interest rates may not be cut. He said this would put the industry margins under pressure. Also, if there are additional imports, it will put pressure on the current account deficit (CAD) numbers, he added.

Companies which thrive on the rural economy like automobiles, two-wheelers, FMCG and consumer durables will also face pressure if the demand slows down due to lesser rains.

With headline inflation inching up in March to 5.7%, industry body Ficci had pointed out that a jump in the prices of fruits and vegetables coupled with the fact that there could be disruption in the progress and spread of monsoon going ahead again highlight the importance of tackling supply-side issues on a priority basis.

The weak monsoon will be one of the first challenges of the new incoming government at the Centre to be formed after results for Lok Sabha polls are declared on May 16.

Some analysts had warned that the stock market is ignoring the headwinds."The reward-risk balance is quite unfavorable in general, based on the binary outcome of national elections alone. Other risks such as potential weak monsoons and growth challenges are simply being ignored in the general euphoria", Kotak Equities said.

Another ssue that may crop up is the increase in usage of diesel that will increase imports. Aditi Nayar, senior economist, ICRA, said an unfavourable monsoon may boost the demand for diesel for drawing groundwater for irrigation and augmenting power availability for domestic consumers, resulting in higher crude oil imports in the second half of 2014.

Kolkata, April 24
Zuari Agro Chemicals Ltd chairman Saroj Poddar is not yet out of the takeover battle for Vijay Mallya-promoted Mangalore Chemicals and Fertilizers Ltd (MCFL).

Deepak Fertilisers, the largest shareholder in MCFL, yesterday bid for control of the company by announcing an open offer to acquire up to 3.08 crore MCFL shares, comprising 26% stake, at Rs 61.75 a share.

"We are evaluating and examining the development. All options are open," Poddar said when asked about Deepak Fertilisers' Rs 190 crore open offer announcement after its stake in MCFL crossed the 25% threshold.

Last year, Zuari acquired 16.43% stake in MCFL and Deepak Fertilisers purchased 24.46%.

Deepak Fertilisers said today its stake in MCFL increased to 25.3% after buying additional shares for about Rs 6.26 crore.

Poddar had earlier said he was interested in MCFL at a valuation that made sense and did not favour any hostile move.

He said both Zuari and MCFL were the right fit and complementary for the growth of both companies. However, he was also not averse to selling his own shares, depending on the offer he got, Poddar had said.

According to shareholding data, almost 11 per cent of MCFL's stake held by United Breweries (Holding) Ltd was encumbered. — PTI 

New Delhi, April 24
State-owned life insurer LIC lowered its exposure in 15 blue-chip firms during the January-March quarter with sale of shares that are currently worth over Rs 6,300 crore.

At the same time, LIC increased stake in 12 Sensex firms by purchasing shares worth over Rs 13,000 crore, as per the shareholding pattern of 30-bluechip companies on the BSE.

In two companies — Tata Steel and Tata Power — LIC's stake remained unchanged during the quarter. It has not held any stake in Hindustan Unilever in the past few quarters.

LIC holds 17% stake in Larsen & Toubro, the highest it has among the Sensex firms.

At current share prices, LIC offloaded shares worth Rs 6,313 crore in 15 Sensex constituents. At the same time, the insurance giant picked up scrips worth Rs 13,357 crore in 12 blue-chip companies.

The sell-off by the Life Insurance Corporation of India coincided with a surge of 5.74% in BSE's benchmark index Sensex during the January-March quarter. — PTI

New Delhi, April 24
Running against time to conclude its $7.2-billion deal with Microsoft, Finnish mobile maker Nokia is doing "all it can" to ensure that its biggest manufacturing facility in South Asia is part of the deal.

The Chennai plant may be excluded from software giant Microsoft's acquisition of Nokia's handset business for 5.4 billion euros due to tax issues.

"Nokia is ensuring all it can to see the transfer of the plant and other assets to Microsoft by tomorrow," a Nokia spokesperson said. However, the task at hand is complicated, the spokesperson added.

"With the situation at the moment, it seems highly unlikely that the transfer will happen in the time frame," she said.

People following the developments at Nokia said the firm is also exploring the option of operating the plant by entering into a service agreement, which would allow it to continue as a contract manufacturer.

Last September, Nokia announced it would sell its devices and services (D&S) business, including assets in India, to Microsoft for $7.2 billion by March 2014. The deadline was subsequently extended to April 25.

The handset and other asset components under the deal are to be handed over to Microsoft's Finnish entity Microsoft Mobile Oy.

In March, the Tamil Nadu government served a Rs 2,400-crore notice on Nokia, saying the company sold products from the Chennai plant in the domestic market instead of shipping them overseas.

In a separate tax case, the Supreme Court ordered Nokia India on March 14 to give a Rs 3,500 crore guarantee before it transfers the plant to Microsoft.

The company has often indicated that the transfer of the plant could be adversely impacted if the dispute remains unresolved. — PTI

New Delhi, April 24
DLF Offices, the offices leasing and management arm of DLF Ltd, has created a benchmark by leasing 3 million sq ft of office space in FY14 with many marquee MNCs and Indian companies.

A company statement said, out of the 3 million sq ft leased out, a record 1.7 million sq ft has been leased out in Gurgaon alone. This has been achieved despite intense competition in the office leasing space and a subdued economic environment.

The lease rentals witnessed stable to healthy increases in various micro markets. Significantly, most tenants who are completing the 9-year lease term in DLF CyberCity, Gurgaon, chose to renew their leases with DLF.

DLF Offices has approximately 27 million sq ft of leasable space pan India with certain projects having achieved above 95% occupancy.

According to Amit Grover, national director, DLF Offices, “DLF reinforced its vision to enhance the experience of its clients with high emphasis on safety and quality of services. Our strategic view is to enhance the ecosystem in which the clients’ workforce feels safe and comfortable to spend a larger part of their day at work. Our Infrastructure initiatives, especially the mass transport and value, adds like accessible healthcare, entertainment, dining and engagement avenues like Cyber Hub at Cybercity Gurgaon have established new industry benchmarks. Our partnership approach for structuring space solutions and working on client feedback is well reciprocated by existing clients, resulting in expanding their presence in DLF Offices”.

New Delhi, April 24
Stocks continue to outshine gold and silver when it comes to adding to investors' wealth by giving 8% return so far this year. The BSE 30-stock benchmark index, Sensex, has generated a positive return of 8% for investors so far this year, while gold prices rose by 2.14%. Silver fell however by 1%.

Gold was at Rs 29,800 per 10 grams on December 31, 2013 and silver was at Rs 43,755 per kg. While gold closed at Rs 30,440 per 10 grams yesterday, silver was at Rs 43,300 per kg.

On the other hand, Sensex, which was at 21,170.68 points on December 31, closed at an all-time high of 22,876.54 on Wednesday.

After outperforming stock market for more than a decade, gold has been on a back foot for more than two consecutive years now vis-a-vis equities.

Market experts said gold's under-performance compared to stocks this year was mainly due to robust foreign funds' investment in Indian equities.

They said stock market sentiment has improved on the hopes that a strong, pro-reforms government will come to power after the ongoing General Election are over in mid-May.

Investors expect the Indian economy to improve and the inflation to ease, they said.

"Emerging markets globally have done well this year.

Besides, investors back home are counting on the elections' outcome. Also FIIs, a major driver of the Indian stocks have been putting lot of money in the equities. All this has supported the markets," Augment Financial Services' Founder and CEO Gajendra Nagpal said.

Improvement in the world economy has brought the risk appetite back amongst retail investors and this has drenched the liquidity from safe havens such as gold leading to its under-performance, an expert said.

Last year, the Sensex gave a positive return of about 9% to investors, while gold prices fell by about 3% and silver plummeted close to 24%.

In 2012, the Sensex rose by over 25%, which was nearly double the gain of about 12.95% in gold prices. The appreciation in silver was at about 12.84% in 2012. — PTI

BRIEFLY

Amazon forays into apparels segment
Bangalore: E-commerce major Amazon on Thursday made its entry into apparels with the launch of ethnic and Indo-Western wear for women on its platform. It also announced the launch of a dedicated sunglasses store with the selection of more than 2,800 styles catering to men, women and kids, across all ages, occasions and price ranges. — PTI

Monster, Air Force Placement Cell in pact
New Delhi: Online recruitment solutions provider Monster India on Thursday announced collaboration with the Indian Air Force Placement Cell to assist retired and shortly retiring officers for a second stint in their careers. Air Marshal HB Rajaram, Air Officer-in-charge, Administration, IAF, said the association with Monster India would help retiring Air warriors find the most suitable opportunity to share their expertise and add value to various organisations. — PTI

Truecaller partners with Tata Docomo
New Delhi: Swedish caller ID firm Truecaller on Thursday announced a partnership with Tata Docomo, the first with any Indian telecom operator. Under the partnership, Tata Docomo customers will be able to access Truecaller service without having to pay mobile internet charges. Under the agreement, Tata Docomo customers will get access to premium features of Truecaller free for 90 days. — PTI

ACC Q1 profit dips 9% to Rs 400 crore
New Delhi: Cement maker ACC on Thursday reported a 8.67% decline in consolidated net profit to Rs 400 crore during the January-March quarter on higher input costs and lower realisations. Sales volumes remained almost static at 6.48 million tonnes, while turnover rose marginally to Rs 2,967 crore as compared to Rs 2,906 crore a year earlier. — PTI

Bharti Infratel Q4 net jumps 64% to Rs 472 cr
New Delhi: Bharti Infratel on Thursday reported a 64% jump in its consolidated net profit at Rs 472 crore for the quarter ended March 31, 2014. The revenues grew 4% to Rs 2,790 crore as compared to Rs 2,674 crore in the same period last year. — PTI