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THE COMPASS
Base=100
BLOOMBERG
140
130
120
S&P
BSE 110
Sensex
100
90
Jan 1,16
Jan 1,15
Compiled by BS Research Bureau
Base=100
TRENDING UPWARDS
Sensex (Intra-day)
S
150
Bharat Electronics
Mumbai, 1 January
26,160.90
26,117.54
26,200
Nifty (Intra-day)
7,990
7,963.20
7,970
26,150
7,946.35
26,100
7,950
26,050
7,930
26,000
Dec 31, 15
Jan 1, 16
7,910
Dec 31, 15
Jan 1, 16
Source: Bloomberg
Lower volumes
The Nifty 50 Index added
0.2 per cent, with volume
56 per cent less than the
30-day average. Most major
global markets are shut Friday
for the New Year holiday.
We are seeing lower participation as most people are
away on holidays and the global markets are shut,
A K Prabhakar, head of
research at IDBI Capital
Market Services in Mumbai,
said by phone . The greenshoots of the Modi government's policies should be visible this year and global growth
is also likely to be better.
Maruti Suzuki India, the
biggest carmaker, on Friday
said its December sales rose
8.5 per cent, while Mahindra &
Mahindra, the largest tractor
maker, reported a four per cent
increase in vehicle sales.
Tata Motors climbed 2.7 per
cent after declining 20 per
cent last year. Coal India, the
world's biggest miner of the
fuel, increased 1.3 per cent to
take this weeks gains to
3.7 per cent.
NTPC, Indias biggest power producer, slipped after
climbing for 11 days, the
longest winning streak on
record. Tata Steel, the biggest
producer of the alloy, retreated
0.9 per cent to extend last
year's 35 per cent plunge.
120
100
80
Jan 1,16
Jan 1,15
Compiled by BS Research Bureau
Thursday.
Though the warning letter does not stop the company from exporting products
as would have been the case
if an import alert had been
issued, the complete resolution of the Moraiya plant
may take longer. The company will be submitting its
response post which US FDA
is expected to re-inspect the
affected facilities.
In the existing basket, its
anti-malarial
product,
hydroxychloroquine, has
been driving the US sales in
the recent past, with higher
volumes and as well as price
hikes (including other products) adding to the US revenues.
Thus, the companys
ability to get site transfers
(from Moraiya) will be crucial for maintaining growth.
The companys other facilities such as the new SEZ formulations facility (oral
oncology, oral solids) from
which it has filed over forty
applications has got regulatory clearance and is a
positive.
Analysts such as Sarabjit
Kour Nangra at Angel
Broking say that post correction there could be a
seven-eight per cent upside
in the best case scenario
and
remains
neutral
for now.
Mumbai, 1 January
account to AR Commodities.
In 9,973 instances, amounting
to ~101 crore, funds were
received in the clients bank
account from the commodities wing. As an explanation,
the brokerage stated these
funds were transferred as the
specific client in the securities market was also a client
with AR Commodities and the
transfers were made with the
clients consent. They had,
since, completely stopped the
practice.
However, Sebi noted its regulations do not permit this.
(The relevant) Circular does
not permit moneys to be withdrawn from the client's
account for or towards payment of debt due to the group
company of the broker from
the client, or, money in respect
of which there is liability of
client to the group company of
the broker. The debt/ liability
of the client towards the group
company of the client cannot
become the debt/liability of
the notice with the client, said
Sebi's adjudicating officer in
the order.
Airline stocks at record high on fuel price cut Wholesale sugar prices
rise 14% in December
TAILWINDS
BS REPORTER
Mumbai, 1 January
AVISHEK RAKSHIT
Cadila
Healthcare
BS REPORTER
Price on BSE in ~
IndiGo
Jet Airways
SpiceJet
New high*
~1,341.75
Previous high# ~1,244.75
~760.60
~708.80
~82.35
~75.65
Kolkata, 1 January
Pump it up
Viacom, Time Warner among
2016 merger wannabes
Walt Disney may be big enough to sit it out. But,
other US media-content producers are going to
feel the urge to merge in 2016 and beyond.
Cable companies and other distributors have
bulked up in recent years Comcast, for example, bought NBC Universal even if it later failed
to seal a deal with Time Warner Cable. Apple,
Amazon.com and the like have built new media
streaming models. The giants have 12-digit val-
Peer pressure
Ivan Glasenberg may be
mining's last man standing
Ivan Glasenberg outlasted all his major peers
after the multi-year boom in metals prices
turned into a rout in 2013. The Glencore chiefs
misjudgment of the market severely tried
investors patience in 2015. Yet, when the second wave of mining executive ousters comes, as
it may soon, its likely Glasenberg will again be
the last man standing.
Rio Tinto, BHP Billiton and Anglo American
SWEET DEAL
Mumbai, 1 January
Sugar M
Sugar S
(~/quintal)
3,250
3,202
3,150
3,050
2,812
2,950
3,106
2,850
2,750
2,697
Nov 30
2015
2,650
Dec 30
uations. Most traditional content makOther businesses that pipe proers are puny by comparison, Time
grams have been consolidating,
Warner and Twenty-First Century Fox
too. Cellphone operator AT&T
are each worth less than $60 billion,
bought satellite broadcaster
and CBS and Viacom, Sumner
DirecTV in July, creating a compaRedstones companies, dont even
ny now worth some $200 billion.
reach that figure combined.
Charter Communications is set to
The gulf in market capitalizations,
buy Time Warner Cable and Bright
from Apple at more than $650 billion BY JENNIFER SABA House Networks in a nearly $70 bilto Viacom at $20 billion, is a proxy for
lion tie-up.
the groups relative negotiating power
Distributors pay so-called carwhen it comes to getting television shows
riage fees to content creators, generaland movies to the public. Even Disney, with ly on a per-subscriber, per-month basis, to air
$190 billion of market value, hardly looks invin- networks like Time Warners CNN or TNT.
cible next to Apple or Alphabet, the parent of Negotiating those fees is getting tougher. The
Google and YouTube.
number of US cities affected by blackouts, when
consumers cant access certain channels or networks, ballooned to 94 in 2014 from eight in
2010, according to the American Television
Alliance. Thats an indication of the failure of
content producers and distributors to reach
agreement.
Moreover, players like Amazon and
YouTube, as well as Netflix, are increasingly
creating their own shows as well as paying for
others output. Now relatively small content
makers will have little choice but to become
larger. Rupert Murdochs grip at Fox and
Redstones at his two fiefdoms may have held
that process back, but the pressure for, say,
Time Warner to get together with Fox or CBS
will only intensify.
The authors are Reuters Breakingviews columnists. The opinions expressed are their own. For further commentary see www.breakingviews.com