Financials

A benchmark index of Indian equities markets was trading 83.85 points or 0.30 percent down Monday as the capital goods stocks plunged.

Good buying was observed in fast moving consumer goods (FMCG) sector, while selling pressure was seen in capital goods, auto and banking sectors.

The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 27,919.45 points, was trading at 27,784.78 points (at 12.46 p.m.), down 83.85 points or 0.30 percent from the previous day’s close at 27,868.63 points.

The rupee strengthened by 17 paise to 61.45 against the dollar in early trade on Monday at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks amidst sustained foreign capital inflows.

Forex dealers said besides increased selling of the American currency by exporters and banks, the dollar’s weakness against other currencies overseas, supported the rupee.

A higher opening in the domestic equity market, which soared to new highs, too influenced the rupee, they added.

The benchmark BSE Sensex hit new record-high of 28,027.96 and the NSE Nifty touched another peak of 8,383.05, respectively in opening trade today as investors cheered expansion of the Union Cabinet amidst continued foreign capital inflows.

Besides, a mixed trend at other Asian markets influenced trading sentiments.

The 30-share index, which had lost 47.25 points in the previous session, recovered by 159.33 points, or 0.57 per cent, to a new peak of 28,027.96 with all sectoral indices, led by FMCG, healthcare, metal and consumer durables gaining up to 1.43 per cent.

Indian equities markets saw a volatile trade session in the truncated week ended Nov 7, with the main index remaining flat with a marginal gain of 2.8 points or 0.01 percent.

“Current account deficit and fiscal deficit are turning more positive and inflation is also subsiding very fast. However, credit off take, IIP and investment cycle are still showing weakness,” said Rajesh Iyer, head of investment advisory services at Kotak Wealth Management.

With a 60.90 percent increase in revenue from its electricity generation plants, the profit after tax of Satluj Jal Vidyut Nigam Ltd (SJVNL) during the first half of this fiscal rose to Rs.1,221.07 crore from the Rs.758.87 crore earned during the same period in the last fiscal, the company said Friday.

While the company’s total income increased 55.52 percent from Rs.1,293.12 crore to Rs.2,011.03 crore, the profit before tax grew 62.81 percent from Rs.929.19 crore to Rs.1,512.81 crore.

The company’s earning per share during this period has increased from Rs.1.83 to Rs.2.95.

A benchmark index of Indian equities markets Friday was trading flat at 3.79 points or 0.01 percent up in the early session.

Good buying was observed in capital goods and IT sectors, while selling pressure was seen in healthcare and oil and gas sectors.

The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 27,902.71 points, was trading at 27,919.67 points (at 09.16 a.m.) in the early session, up 3.79 points or 0.01 percent from the previous day’s close at 27,915.88 points.

A new government body in the place of the old centralised model of Planning Commission will likely to be formed by the year end, as per media reports.

The PM had promised on August 15 to announce “a new institution with a new spirit” soon.

The new body will lead the country based on creative thinking, public-private partnership, optimum utilisation of resources, utilisation of youth power of the nation, to promote the aspirations of state governments seeking development, to empower the state governments and to empower the federal structure, he had said.

A benchmark index of Indian equities markets Friday was trading flat at 3.79 points or 0.01 percent up in the early session.

Good buying was observed in capital goods and IT sectors, while selling pressure was seen in healthcare and oil and gas sectors.

The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 27,902.71 points, was trading at 27,919.67 points (at 09.16 a.m.) in the early session, up 3.79 points or 0.01 percent from the previous day’s close at 27,915.88 points.

Reliance Industries is looking to sell its 49.9 percent stake in a US joint venture that owns a 460 miles pipeline network for transportation of shale oil and gas.

RIL, as well as its partner Pioneer Natural Resources Co, are seeking a buyer for their stakes in Eagle Ford Midstream venture as they focus on shale oil production.

“Pioneer Natural Resources today announced that the company is pursuing the divestment of its 50.1 percent share of the Eagle Ford Shale Midstream business.

The government Wednesday approved the rise of capital share in Indian Renewable Energy Development Agency (IREDA) from the existing level of Rs.1,000 crore to Rs.6,000 crore.

According to a statement released after a cabinet meeting, the funding will be infused, as and when required, based on level of operations.

During the 12th Five Year Plan, the government has targeted 30,000 MW from various renewable energy projects, of which IREDA aims to finance projects of an aggregate capacity of 4,800 MW.

The government Wednesday approved the financial revival of 23 unlicenced district central cooperative banks (DCCBs) in four States.

According to a cabinet statement released here, of the 23 banks, 16 are located in Uttar Pradesh, three in Jammu and Kashmir, three in Maharashtra and one in West Bengal.

A benchmark index of Indian equities markets Monday touched a record high of 28,006 points in the early morning trade session Wednesday, surpassing the previous high of 27,969.82 points hit in the intra-trade Monday.

The index was trading up 82 points or 0.30 percent around 10.30 a.m. at 27,942.58 points before coming down from the psychological barrier of 28,000-mark.

Healthy buying was observed in bank, auto, consumer durable and fast moving consumer goods (FMCG) stocks. While selling pressure was seen in the metal sector.

The rupee strengthened by six paise to 61.34 against the US dollar in early trade on Wednesday at the Interbank Foreign Exchange on selling of the US currency by exporters and banks amidst sustained capital inflows.

The rupee settled four paise down at 61.40 against the dollar on Monday. Forex market remained closed yesterday on account of “Muharram”.

Financial ratings agency India Ratings and Research Tuesday said that it expects the cumulative restructured assets in the Indian banking system to shoot-up by Rs.600 billion-Rs.1,000 billion in the next five months.

“Around one in four of the 500 largest corporate borrowers may formally be tagged as financially distressed (identified as non-performing asset (NPA), corporate debt restructuring (CDR)) by end-FY15,” the agency was quoted in a statement.

Market analysts Tuesday said they expect further reforms being announced by the government which in turn might lead the bursar into a bullish spell over the medium term.

“We expect further reforms and remain positive on the domestic infrastructure and cyclical sectors over the medium-to-long term,” said Dipen Shah, head – private client group research, Kotak Securities.

“Ater the steep run-up in several of these stocks, we recommend sticking to quality and advise selectively investing in stocks having strong balance sheets and ethical managements.”

The Indian rupee trimmed its initial losses against the American currency but was still quoted down by 10 paise to 61.46 per dollar on some demand from banks and importers in view of firm dollar in the overseas market.

The rupee resumed lower at 61.50 per dollar as against the last closing level of 61.36 per dollar at the Interbank Foreign Exchange (Forex) Market and moved down further to 61.51 per dollar on initial dollar demand from banks on the back of higher dollar in the global market.

A benchmark index of Indian equities markets Monday was trading 33.62 points or 0.12 percent down after touching a record high of 27,969.82 points in the early morning trade session.

The benchmark index had surpassed its previous high of 27,894.32 points hit Friday.

Healthy buying was observed in banks, realty and capital goods stocks; while selling pressure was sustained in auto, consumer durables and fast moving consumer goods (FMCG) sector.

Markets on Monday hit new lifetime highs with the benchmark BSE Sensex rising to 27,969.82 and the NSE Nifty scaling another peak 8,350.60 in early trade today on sustained inflow of foreign funds.

Rupee falls 15 paise to 61.51 against dollar in early tradeThe rupee declined by 15 paise to 61.51 in early trade today at the Interbank Foreign Exchange on fresh dollar demand from banks and importers amidst strengthening of the American currency overseas.

Forex dealers said besides the dollar gaining against other currencies in the global markets, increased demand for the American unit from importers weighed on the rupee but surging domestic equity markets, capped the fall.

The rupee gained nine paise to close at 61.36 against the dollar in the previous session on Friday.

The total value of assets held by India’s financial institutions touched nearly USD 2.8 trillion, the third largest among BRICS nations, in 2013, says a report.

Way ahead, neighbouring China’s financial institutions held assets to the tune of USD 34.43 trillion last year, the Financial Stability Board (FSB) has said.

BRICS grouping constitutes Brazil, Russia India, China and South Africa.

As per the figures compiled by the FSB, the value of assets of financial institutions in India touched USD 2.79 trillion last year.

Updating the system for computing the economic growth rate, the Indian government will release a new series of national accounts with 2011-12 as base year in January next year.

“The new series will better reflect the economy as it would include more sectors. However, it would be difficult to say whether there would be any significant change in growth rates for the previous years,” National Statistical Commission (NSC) chairman Pronab Sen said here.

The NSC has suggested that the base year for computing national accounts should be revised every five years.

As the BSE Sensex gained over 1,000 points last week, the top 10 companies saw a combined addition of over Rs 97,648 crore to market capitalisation during the past week.

Each of these firms saw its m-cap rise but the biggest gainer was TCS which added Rs 27,255.70 crore to its market worth. Its m-cap swelled to Rs 5,10,160.5 crore.

TCS remained at number one, followed by ONGC, Reliance, ITC, Coal India, Infosys, HDFC Bank, State Bank of India, ICICI Bank and Sun Pharma.

India’s foreign reserves shot up by USD 495.5 million to USD 314.177 billion in the week to October 24 due to rise in a key constituent of the assets, according to data released by RBI on Friday.

In the previous week, the reserves had increased by USD 945.6 million to USD 313.682 billion.
Foreign currency assets (FCAs), a major constituent of overall reserves, increased by USD 532.2 million to USD 288.332 billion, RBI said.

FCAs, expressed in dollar terms, include the effect of appreciation and depreciation of non-US currencies such as the euro, pound and yen held in reserves.

The higher fiscal deficit in the current financial year, that has touched 83 percent of the full year’s target, is the result of increased tax refunds, Finance Minister Arun Jaitley said Friday.

“Higher tax refunds are getting reflected in fiscal deficit number. This year there were pending tax refunds estimated around Rs.120,000 crore,” he told reporters here.

“It would be challenging to achieve the indirect tax aim. Direct tax target would be achievable. We would strive to achieve fiscal deficit aim for this fiscal,” he added.

Indian markets today ended the week with a bang with Sensex zooming 519.50 points and Nifty soaring 153 points to new highs for the second straight day in line with a strong global rally after Japan unexpectedly increased its monetary stimulus and US grew at a robust pace.

Hopes of more reform measures from Modi government, expectations of better growth in the second half of the fiscal and heavy buying by foreign funds, also had a positive impact.