Financials

The rupee snapped its two-week losing string and recovered by 40 paise to close at a high of 62.28 against the US dollar following fresh selling of the American currency by exporters despite capital outflows and weak local stocks.

At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced slightly lower at 62.70 a dollar from last weekend’s close of 62.68 and later it was trapped in a narrow range of 62.25 and 63.83 before concluding the week at 62.28, showing a rise of 40 paise or 0.64 percent.

In last two-weeks, it had lost 114 paise or 1.85 percent.

Moving ahead with the residual stake sale in HZL and Balco, an inter-ministerial panel has begun the process of valuation of the two companies so as to complete the deals by march-end.

“We are in the process of valuing the two companies. The IMG discussed the issuance of Request For Proposals (RFP) for valuation of HZL and Balco,” a senior Finance Ministry official said.

The government holds 49 percent stake in Balco and 29.5 percent in Hindustan Zinc Ltd (HZL).

“We are working very hard to make it happen by March,” Disinvestment Secretary Ravi Mathur told reporters here.

The Sensex on Friday rose for the fourth straight day and ended 66 points up at one-week high levels led by gains in Tata Steel, Sun Pharma and Sesa Sterlite, amid volatility ahead of advance growth estimates for 2013/14.

The index, which had gained 101 points in the previous three days, rose further by 65.82 points, or 0.32 percent, to end at 20,376.56. Intra-day, the barometer touched a low of 20,282.30 and a high of 20,450.51. Today’s close was the highest since 20,513.85 on January 31.

India’s per capita income is projected to soar by 10.4 percent to Rs 74,920 in 2013-14 as the country becomes a USD 1.7 trillion economy.

Per capita income is calculated by evenly dividing the national income by the country’s population.

However, the increase in per capita income would be only 2.8 percent in 2013-14 if it is calculated on the basis of 2004-05 prices.

Per capita income (at 2004-05 prices) would be Rs 39,961 in 2013-14, against Rs 38,856 in the previous fiscal, according to the latest data on national income.

Buoyed by good performance of the farm sector, economic growth in the current fiscal is estimated to rise to 4.9 percent, though it is below potential as manufacturing and mining sectors continue to remain a cause of concern.

“The growth in GDP during 2013-14 is estimated at 4.9 percent as compared to the growth rate of 4.5 percent in 2012-13,” according to advanced estimates released Friday by the Central Statistics Office (CSO).

Global food prices declined for the first time in three months as lower prices for cereals, sugars, oils and meat outstripped gains in dairy products, the UN’s Food and Agriculture Organisation (FAO) reported.

The Rome-based agency said Thursday its food price index averaged 203.4 points in January, which is 1.3 percent below December and 4.4 percent below January 2013.

The index measures monthly changes in international prices of a basket of meat, dairy, cereals, oils and fats, and sugar.

The benchmark BSE Sensex surged nearly 128 points in early trade today, extending gains for the fourth straight session, on sustained buying by funds amid a firm trend on other Asian bourses.

The 30-share index, which had gained 101.48 points in the previous three sessions, rose further by 127.87 points, or 0.63 per cent, to 20,438.61, with stocks of healthcare, realty and metal sectors leading the rise.

All the sectoral indices were trading in the positive zone with gains up to 1.18 per cent.

A benchmark index of the Indian equities markets rose 50 points Thursday, closing in the positive for the third straight session, led by good buying support in FMCG, auto, consumer durables and metal stocks.

The 30-scrip S&P Sensex of the Bombay Stock Exchange (BSE), which opened in the positive at 20,286.09 points, ended the day at 20,310.74 points, up 0.25 percent or 49.71 points from its previous day close at 20,261.03 points.

The Sensex touched a high of 20,358.19 points and low of 20,079.82 points in the intra-day.

A total of 28 rounds of bidding were completed by the end of Day 4 Thursday of the second generation (2G) spectrum or airwaves auction that began Feb 3, an official statement said here. The government received cumulative bids worth Rs.52,689 crore at the end of the fourth day, Telecom Secretary M.F. Farooqui said.

“The government received cumulative bids worth Rs.52,689 crore at the end of the fourth day. Around Rs.30,754 crore was received from 1,800 MHz and Rs.21,935 crore was received from 900 MHz,” Farooqui told IANS.

The Board of Directors of Ranbaxy Laboratories Limited at its meeting held today, took on record the unaudited results for the Quarter and YTD ended December 31, 2013 under Indian GAAP.

Key Financial Highlights

Financial Performance for the quarter ended December 31, 2013 (Q4 FY14)

· Consolidated Sales were Rs.28.6 Bn [Q4’12: Sales Rs.26.7 Bn].

· Earnings before Interest, Tax, Depreciation & Amortization (EBITDA) was Rs.2.7 Bn. Margins strengthened in the quarter. Adjusted for Forex movements and non-routine charges, margin was >10%

The rupee today gained 16 paise to 62.37 against the dollar in early trade at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks.

Forex dealers said strengthening of other currencies against the dollar overseas and a higher opening in the domestic equity market also supported the local currency.

The rupee had gained three paise to end at 62.53 yesterday on late dollar selling by exporters and some banks.

Meanwhile, the benchmark BSE Sensex rose by 42.89 points, or 0.21 per cent, to 20,254.82 in early trade today.

Finance Minister P Chidambaram on Tuesday asked regulators to expeditiously introduce a common demat account for financial assets, a move that is expected to benefit investors.

Chairing the Financial Stability and Development Council (FSDC) meeting, attended by all financial regulators, Chidambaram also said that inter-regulatory issues should be resolved in a time bound manner by the FSDC Sub-Committee.

“Priority should be accorded to the steps like common demat account for financial assets which will add considerable benefits to the consumers,” he said.

The benchmark BSE Sensex today dipped below psychological 20,000-level by falling nearly 233 points in opening trade following weak global trends after disappointing US factory data.

The 30-share barometer fell by 232.88 points, or 1.15 per cent, to trade below 20,000-level at 19,976.38. The index had lost 304.59 points in the previous session.

All the sectoral indices led by realty, IT and metal were major losers, dragging down the benchmark Sensex.

The wide-based National Stock Exchange index Nifty dipped below 6,000-mark by falling 59.80 points, or 1.00 per cent, to 5,942.00.

The mutual funds industry, though promising higher returns to investors faces a trust deficit from the masses, Finance Minister P. Chidambaram has said.

“People still place enormous trust in the public sector banks, but the same level of trust is missing when it comes to mutual funds,” Chidambaram said here late Sunday night while speaking at the Golden Jubilee of UTI Mutual Fund.

The benchmark BSE Sensex fell over 90 points in opening trade today on selling by foreign funds and retail investors, triggered by a weak trend in the Asian region.

The 30-share barometer fell by 90.36 points, or 0.44 per cent, to 20,423.49. The index had gained 15.60 points in the previous session.

Stocks of IT, consumer durables, realty, capital goods and oil and gas sectors led the fall.

Similarly, the wide-based National Stock Exchange index Nifty declined by 26.10 points, or 0.43 per cent, to 6,063.40.

The benchmark BSE Sensex fell over 90 points in opening trade today on selling by foreign funds and retail investors, triggered by a weak trend in the Asian region.

The 30-share barometer fell by 90.36 points, or 0.44 per cent, to 20,423.49. The index had gained 15.60 points in the previous session.

Stocks of IT, consumer durables, realty, capital goods and oil and gas sectors led the fall.

Similarly, the wide-based National Stock Exchange index Nifty declined by 26.10 points, or 0.43 per cent, to 6,063.40.

Amazon has reportedly disappointed Wall Street analysts as its stock fell more than 8 percent after it released its fourth-quarter earnings.

While Wall Street expected earnings of 67 cents a share and a revenue of $26.05 billion, Amazon failed to stand up to investors’ expectations with just 51 cents-per-share and a revenue of $25.59 billion in the fourth quarter .

Meanwhile, Amazon’s revenue for 2013 saw an increase of 22 percent against its last year’s revenue.

The rupee recovered by 19 paise to 62.37 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 but dollar’s strength against other currencies overseas, following better-than-forecast US growth figures, capped the rise.

The benchmark BSE Sensex recovered by almost 55 points in early trade today on the back of gains in the stocks of realty, metal, capital goods, banking and oil and gas sectors amid a mixed trend in other Asian markets.

The 30-share barometer, which has lost 875.41 points in the past five sessions, rose 54.65 points, or 0.26 per cent, to 20,552.90 in early trade.

On similar lines, the National Stock Exchange index Nifty rose 13.75 points, or 0.23 per cent, at 6,087.45.

Billionaire investor Carl Icahn has reportedly bought 500 million dollars more shares even as the tech giant”s stock sank low.

Icahn blasted Apple”s board for its ”imperial” ways last week, yet he stood by the tech giant and announced his acquisition on Twitter.

The Central Government has taken note of the US Federal Reserve’s decision to reduce the level of purchase of mortgage-backed securities and longer-term treasury securities to USD 65 billion per month as against USD 75 billion per month.

The rupee fell sharply by 36 paise to 62.77 against the dollar in early trade today at the Interbank Foreign Exchange market on increased demand for the American currency from importers after the US Federal Reserve decided to scale back its stimulus.

Forex dealers said the US Federal Reserve’s move to scale back its stimulus programme put pressure on other currencies overseas.

Besides, month-end demand from importers for the American currency and a lower opening of the domestic equity market also weighed on the rupee, they said.

Extending losses for the fifth straight session, the benchmark BSE Sensex today fell over 196 points in early trade on sustained selling by funds after the US Federal Reserve decided to further taper its monetary stimulus programme.

Besides, monthly expiry in the derivatives segment also weighed on the sentiment.

The 30-share barometer, which had lost over 726 points in the past four sessions, fell further by 196.27 points, or 0.95 per cent, to 20,451.03.

All the sectoral indices were trading in negative zone, led by consumer durables, realty and banking.

Chandrajit Banerjee, Director General of CII is reportedly surprised by the RBI”s decision to increase the repo rate despite all indicators suggesting that a status quo was in order. In a press release, Banerjee said that while CII recognised the overwhelming concern of the monetary authorities to keep inflation under check, it expected RBI to take cognizance of the faltering investment and consumption demand, which is preventing the economy from realising its growth potential.

The benchmark BSE Sensex today gained over 145 points in early trade on the back of encouraging corporate earnings coupled with a firming trend on other Asian bourses.

The 30-share barometer, which had lost over 690 points in the previous three sessions, recovered by 145.17 points, or 0.70 per cent, to 20,828.68.

All the sectoral indices led by auto, banking and realty, were trading in positive zone with gains up to 1.32 per cent.