Inter-bank liquidity could tighten again: Morgan Stanley

Chetan Ahya, Morgan Stanley said, "The aim of conducting open market operations (OMOs) and cash reserve ratio (CRR) cut is to prevent unintended tightening in domestic liquidity conditions and a further rise in short-term rates. While liquidity conditions should see a seasonal improvement in April, we believe unless capital inflow improves significantly, inter-bank liquidity could tighten again from May-June warranting more CRR cuts."

Muthoot Estate cannot accept public deposits

The Reserve Bank today directed Muthoot Fincorp Ltd arm -- Muthoot Estate Investments -- not to accept any deposits from public in any manner.

"The RBI has directed Muthoot Fincorp Ltd to stop allowing the use of its premises or branches or officials, in anymanner by Muthoot Estate Investments for accepting deposits from public," the RBI said in a notification.

Muthoot Fincorp Ltd, a Kerala based non-deposit taking and non-banking financial company (NBFC), has a partnered with its arm Muthoot Estate Investments.

"Acceptance of deposits from the public by Muthoot Estate Investments is prohibited. Members of the public are hereby cautioned that acceptance of deposits by the company or its arm (Muthoot Estate Investments) is punishable with imprisonment..." the notification said.

Muthoot Estate Investments, in which the promoters of Muthoot Fincorp Ltd are partners, has collected and has been collecting deposits in the form of fixed deposits, cumulative deposits and special public deposits from the public, it added.

Compact Disc board meet today

Compact Disc board will meet today to consider issue of preferential shares.

Compact Disc has touched an intraday high of Rs 24.60 and an intraday low of Rs 21.30. At 09:47 hrs the share was quoting at Rs 24.60, up Rs 4.10, or 20.00%. There were pending buy orders of 19,051 shares, with no sellers available. 
 
It was trading with volumes of 86,791 shares, compared to its 5-day average of 14,332 shares, an increase of 505.57%. 
 
In the previous trading session, the share closed down 0.00% or Rs 0.00 at Rs 20.50. The company touched its 52-week high Rs 65.20 and 52-week low Rs 18.15 on 15 Apr, 2011 and 22 Dec, 2011, respectively. 
 
Currently, it is trading -62.27% below its 52-week high and 35.54% above its 52-week low. Market capitalisation stands at Rs 23.62 crore.

Vijay Mallya may sell United Breweries stake to Heineken

MUMBAI (Reuters) - Tycoon Vijay Mallya, scrambling to raise funds to rescue his ailing Kingfisher Airlines Ltd, is considering the sale of all or part of his stake in United Breweries (UB), his flagship beer business, to Dutch brewer Heineken NV, said people familiar with the situation.

They added that Mallya has the option of selling a stake in UB to ease his financial woes, and Heineken would be a keen buyer to gain control of India's biggest brewer and maker of Kingfisher beer.

The Amsterdam-based brewer holds a 37.38 percent stake in UB as a legacy of its takeover of Scottish and Newcastle in 2008. The purchase of 13 percent, valued at $370 million at current market prices, would be enough to take Heineken over the 50 percent mark.

Mallya owns around 19 percent of UB and has held talks with a number of different parties to try and raise cash for his ailing Kingfisher airline. There are no active talks going on at the moment with Heineken, the people said.

"Mallya is clearly looking at all his options and if he did look to sell a stake to give Heineken control of United Breweries then he would find a willing buyer," said one person with knowledge of the situation.

A spokesman at Mallya's UB Group did not answer calls or reply to text messages from Reuters. A spokesman for Heineken declined to comment.

United Breweries controls around half the fast-growing Indian beer market with SABMiller Plc having around a third, but beer consumption is still relatively low at less than 1 litre per person per year compared with China at close to 30 litres and western Europe of around 60 litres.

The Financial Times reported that Mallya was close to selling a 13 percent stake in UB to Heineken, while the Business Standard newspaper said he may be looking to sell part of his holding and invest some of the process in his airline.

Mallya is under pressure from his airline's lenders to inject equity into Kingfisher, which has debts of $1.3 billion and has slashed its flight schedule and grounded most of its fleet as it has been unable to pay staff.

Mallya's UB Group confirmed it had entered talks with the world's biggest spirits group Diageo Plc in late 2008 about buying a stake in his 38.7 percent-owned United Spirits company. But the talks broke down in 2009 after Diageo was offered a high-priced small stake and saw no future path towards increasing its holding or influence.

Shares in United Spirits were up 1.4 percent and United Breweries were up 0.6 percent in Thursday trading.

Tata Motors sells 127,318 vehicles in February

Tata Motors said its global wholesales, including Jaguar Land Rover, were 127,318, in February 2012, higher by 24 percent over February 2011. Its cumulative sales were 1,112,518, higher by 15 percent compared to the corresponding period in 2010-11.

Global sales of all commercial vehicles - Tata, Tata Daewoo and the Tata Hispano Carrocera range - were 57,857, in February 2012, highest-ever in a month and a growth of 24 percent. Cumulative sales for the fiscal are 536,136, a growth of 18 percent.

Global sales of all passenger vehicles were at 69,461 February 2012, higher by 25 percent and cumulative sales for the fiscal are 576,382, higher by 11 percent.

Global sales of Tata passenger vehicles and the distribution off-take in India of Fiat cars were at 37,204, for the month, higher by 9 percent over February 2011. Cumulative sales for the fiscal are at 2,98,420.

Global sales of Jaguar Land Rover in February 2012 were at 32,257 vehicles, higher by 49 percent over February 2011, driven by the Range Rover Evoque and the 12 MY Jaguar products.

Tata Motors said Jaguar sales for the month were 4,228, higher by 32 percent, while Land Rover sales were 28,029, best ever in a month and higher by 52 percent. Cumulative sales of Jaguar Land Rover for the fiscal are 277,962, higher by 27 percent. Cumulative sales of Jaguar are 48,696, lower by 1 percent, while cumulative sales of Land Rover are 229,266, higher by 35 percent.