Financials

India’s foreign exchange (forex) reserves increased by $1.26 billion to $292.33 billion for the week ended Feb 7, Reserve Bank of India (RBI) data showed.

The foreign exchange reserves had decreased by $1.16 billion to $291.07 billion for the week ended Jan 31.

According to the RBI’s weekly statistical supplement foreign currency assets, the biggest component of the forex reserves, grew by $1.26 billion to $265.83 billion.

The foreign currency assets had fallen by $1.48 billion to $264.56 billion in the week ended Jan 31.

A benchmark index of the Indian equities markets closed Friday’s trade 173 points up, as information technology (IT), oil and gas, bank, metal and technology, entertainment and media (TECk) stocks gained.

The 30-scrip S&P Sensex of the Bombay Stock Exchange (BSE), which opened at 20,265.13 points, ended the day at 20,366.82 points – up 173.47 points or 0.86 percent from its previous day’s close at 20,193.35 points.

The Sensex hit a high of 20,391.95 points and a low of 20,149.01 points intra-day.

India’s wholesale price-based inflation fell to 5.05 percent in January, the lowest level in seven months, on the back of slower increase in food and vegetables prices, government data showed Friday.

India’s main inflation indicator measured in terms of the Wholesale Price Index (WPI) was at 7.31 percent in the corresponding month of last year and 6.16 percent in December 2013.

Food inflation eased to 8.8 percent in January from a high of 13.68 percent in the previous month, according to data released by the ministry of commerce and industry here.

The country’s largest lender State Bank of India (SBI) Friday reported 34 percent slump in its net profit for the third quarter of the current financial year.

The bank posted a net profit of Rs.2,234.34 crore for the quarter ended Dec 31, 2013 as compared to Rs.3,396.06 crore posted in the corresponding quarter of last year, registering a decline of 34.20 percent.

SBI’s non-performing loans or bad loan as proportion of total assets rose to 5.7 percent during the quarter under review as compared to 5.6 percent posted in the previous quarter.

India will see more investments from American companies if New Delhi raises the Foreign Direct Investment (FDI) level to 49 per cent in the defence sector from the present 26 per cent, a top executive of Boeing said here.

Boeing’s vice president of international business development in Defence, Space & Security, Lt Gen Jeff Kohler said: “49 will see more investment from US companies.”

A benchmark index of the Indian equities markets closed Thursday’s trade 255 points down, as bank, capital goods and healthcare stocks fell.

Market sentiment was bearish on global cues and lower-than-expected earning results of some blue chip companies.

The 30-scrip S&P Sensex of the Bombay Stock Exchange (BSE), which opened at 20,478.67 points, ended the day at 20,193.35 points – down 255.14 points or 1.25 percent from its previous day’s close at 20,448.49 points.

The Sensex hit a high of 20,503.86 points and low of 20,16.67 points intra-day.

A benchmark index of Indian equities markets slumped 122.50 points or 0.60 percent in the pre-noon trade Thursday.

Selling pressure was seen in banking index (bankex), oil and gas, capital goods and healthcare sectors.

The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 20,478.67 points, was trading at 20,325.99 points in the pre-noon session, down 122.50 points or 0.60 percent from the previous day’s close at 20,448.49 points.

The Sensex touched a high of 20,503.86 points and a low of 20,313.79 points during the trade so far.

Google’s stock reportedly plummeted to an all-time high of 1,191 dollars, following which its market cap hit 400 billion dollars for the first time in its history.

The US House of Representatives has passed an increase in the government”s debt limit. The move comes after the Republicans gave up on their attempt to win concessions from the Democrats in return.

The House voted 221-201 to waive the 17.2 trillion dollars debt limit for just over a year. According to the BBC, the bill, when signed into law by President Barack Obama, will enable the US government to borrow money to fund its budget obligations and debt service. The US government will run a budget deficit of about 514 billion dollars in its 2014 fiscal year. (ANI)

A benchmark index of Indian equities markets gained 125.57 points or 0.62 percent in the pre-noon trade Wednesday.

Good buying was observed in banking index (bankex), capital goods and oil and gas sectors, while selling pressure was seen in metal sector.

The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 20,449.83 points, was trading at 20,488.94 points in the pre-noon session, up 125.57 points or 0.62 percent from the previous day’s close at 20,363.37 points.

The new chief of the Federal Reserve has said the bank will continue to cut its stimulus measures for the US economy.

Janet Yellen said if the US economy keeps improving, the bank would take further measured steps to reduce its support.

In her first comments since taking over, Yellen also signalled that interest rates would remain low, the BBC reports.

Though Yellen noted there is volatility in global financial markets, she said at this stage it did not ‘not pose a substantial risk to the US economic outlook,’ the report said.

The benchmark BSE Sensex today rose over 104 points in early trade, extending yesterday’s gain on sustained buying by funds ahead of industrial output data amid a firm trend in the global markets.

The 30-share index rose by 104.43 points, or 0.51 per cent, to 20,467.80 points with banking, IT, realty, auto and oil and gas sectoral indices leading the rise by gaining up to 0.83 per cent. The index had gained 29.10 points in the previous session.

The wide-based Nifty of the National Stock Exchange moved up by 28.95 points, or 0.48 per cent, to 6,091.65.

The rupee today appreciated by 16 paise to 62.06 against the US dollar in early trade at the Interbank Foreign Exchange market on increased selling of the American currency by exporters.

Dealers said besides increased dollar selling by exporters, a higher opening in the domestic equity market supported the rupee.

The rupee strengthened by 21 paise to close at 62.22 in yesterday’s trade, logging its best daily gain in two weeks after trade gap narrowed in January and the dollar fell ahead of Fed Reserve chief Janet Yellen’s testimony to US Congress.

A total of 56 rounds of bidding were completed Tuesday at the end of Day 8 of the second generation (2G) spectrum or airwaves auction, an official statement said here. The government has received cumulative bids around Rs.58,980.29 crore so far.

Eight mobile phone service providers are participating in the auction, that began Feb 3, for 46 MHz in 900 MHz band and 385 MHz in 1,800 MHz band.

The benchmark BSE Sensex gained 64 points in early trade today on the back of selective buying by funds and retailers amid a firming trend on other Asian bourses.

The 30-share barometer, which had lost 42.29 points yesterday, recovered by 63.95 points, or 0.31 per cent, to 20,398.22, led by gains in auto, tech, consumer durables and capital goods sector stocks.

On similar lines, the National Stock Exchange index Nifty moved up by 15.45 points, or 0.26 per cent, to 6,068.90.

Power Ministry has initiated the process of sourcing gas for fuel-starved power projects and has proposed Rs 6,000 crore subsidy for distribution companies so that they can sell electricity at lower rates to consumers.

However, power plants running on gas from Reliance Industries’ KG-D6 basin will have to wait for the fuel as any additional gas from those fields has been reserved for the beleaguered Dabhol project in Maharashtra till March 2015.

According to sources, the Ministry of Power has circulated a Cabinet note on the issue of gas availability to the fuel-starved power projects.

State-owned Indian Overseas Bank today said it plans to raise Rs 400 crore by selling shares on preferential basis to Life Insurance Corporation.

“We are seeking approval of Extra Ordinary General Meeting (EGM) on February 26 for making preferential allotment to LIC,” IOB Chairman and Managing Director M Narendra said on the sidelines of its 78th foundation day here.

The bank proposes to issue 8.15 crore shares to LIC at Rs 48.84 per shares on preferential basis to LIC or its schemes.

Retreating from one-week high levels, the benchmark Sensex today slid over 42 points to decline for the first time in five days on losses in TCS, HDFC and Bharti Airtel shares as investors booked profits.

The index, which rose over 167 points in previous four sessions, started the day on a positive note but failed to hold onto gains. Selling in IT, banking and metal weighed.

Chidambaram, speaking at the 78th foundation day of Indian Overseas Bank, said, ”It cannot be that all profits are used to declare dividend and to provide enhanced wages and allowances to bank employees.

As public sector bank employees started a two-day strike today seeking higher wages, Finance Minister P Chidambaram said the profit of banks cannot be used only to enhance salaries because there are other obligations.

The rupee strengthened by 18 paise to 62.10 against the US dollar in early trade today at the Interbank Foreign Exchange market on increased selling of the American currency by exporters.

Forex dealers said a higher opening in the domestic equity market also supported the rupee.

The rupee had gained 9 paise to close at 62.28 against the dollar on Friday.

Meanwhile, the benchmark BSE Sensex rose 42.66 points, or 0.21 per cent, to 20,419.22 in early trade today.

Indian economy is likely to grow by 5.6 percent in the next financial year but a stable government after elections, a pick-up in investment and good monsoon are vital factors, Citigroup said in a report.

An occurrence of El Nino could lead to deficient rainfall in India and consequently pose a downward risk to agricultural output, the report said. El Nino is a series of climatic changes across Pacific Ocean due to warm ocean water temperatures.

An improvement in investment would spur economic growth. Companies would, however, wait for elections before commencing operations, it said.

Overseas investors pulled out nearly Rs 1,700 crore from Indian equities in the first week of this month following a further reduction in the bond buying programme by the US Federal Reserve and rising concerns about growth in China.

Thus, Foreign Institutional Investors also turned net sellers of equities in this year. After buying USD 20 billion worth of stocks in 2013, they have sold equities totalling Rs 953 crore since January.

Dragged down by TCS and Infosys, the combined market capitalisation (m-cap) of top-six blue-chip companies slumped by Rs 41,307 crore last week.

While TCS, RIL, ITC, ONGC, Infosys and Wipro saw erosion in their market valuation, CIL, HDFC Bank, Bharti Airtel and HUL made gains.

M-cap of TCS tanked Rs 18,187 crore to Rs 4,19,823 crore, becoming the top loser among the 10 most valued firms on the BSE.

Infosys’ value slumped Rs 7,623 crore to Rs 2,04,812 crore, while RIL lost Rs 5,348 crore to Rs 2,63,154 crore from its m-cap.

Google for a short time surpassed Exxon Mobile to become the second-largest US company by market value. The fast-growing tech giant briefly nudged past Big Oil”s biggest player to become the second-largest US company.

Finance Minister P Chidambaram on Saturday expressed confidence that the economic growth rate for the current financial year will be revised to not less than 5 per cent.

“I am confident that the final estimate will be not less than 5 per cent for the whole year,” Chidambaram said, while commenting on the Central Statistics Office’s projection of 4.9 per cent growth.

Growth in 2012-13 slipped to a decade-low of 4.5 per cent. The economy expanded 4.6 per cent in the first half (April-September) of this financial year.