Financials

The benchmark BSE Sensex today recovered over 53 points in early trade after two sessions of losses on emergence of buying by funds and retail investors ahead of the RBI’s policy review.

The 30-share index, which had lost over 666 points in the previous two sessions, recovered by 53.76 points, or 0.25 per cent, to 20,761.21, with stocks of consumer durables, capital goods, power, realty and metal sectors leading the recovery.

Similarly, the wide-based National Stock Exchange index Nifty moved up by 11.05 points, or 0.18 per cent, to 6,146.90.

The rupee trimmed initial losses against the American currency but was still quoted down by 11 paise to 62.77 per dollar on good demand for the greenback from banks and importers.

The domestic unit resumed lower at 62.84 per dollar as against the last weekend’s level of 62.66 at the Interbank Foreign Exchange market on initial strong buying.

However, it trimmed its losses and was quoted at 62.77 per dollar at 1045 hours as Economic Affairs Secretary Arvind Mayaram said that there is no need to worry about rupee’s decline as “economic fundamentals are very strong”.

The benchmark BSE Sensex today plunged over 335 points in early trade, extending losses for the second session as funds and retail investors engaged in reducing positions amid a weak trend in global markets.

The 30-share barometer, which had lost 240.10 points in the previous session, fell by 335.33 points, or 1.58 per cent, to 20,798.23.

Stocks of banking, capital goods, metal, auto, power and consumer durable sectors declined due to profit-booking.

Similarly, the wide-based National Stock Exchange index Nifty fell by 80.80 points, or 1.29 per cent, to 6,185.95.

The Reserve Bank is likely to maintain status quo in its third quarter monetary policy review on Tuesday despite the clamour for cutting rates to boost sagging growth in view of some moderation in inflation.

“I think status quo will be maintained by the RBI,” Oriental Bank of Commerce Chairman and Managing Director S L Bansal told PTI.

Echoing similar views HSBC India country head Naina Lal Kidwai said: “I believe that RBI will keep interest rate unchanged in this policy review.

Auditing company KPMG will pay $8.2 million to settle civil charges that it violated rules by providing non-audit services from 2007 to 2011, authorities said.

KPMG broke auditor independence rules various times by providing prohibited non-audit services such as book-keeping and expert services to affiliates of three audit clients from 2007 to 2011, said the Securities and Exchange Commission (SEC), reported Xinhua.

Some KPMG personnel also owned stock in companies or affiliates of companies that were KPMG audit clients, further violating auditor independence rules, said the regulator.

India’s foreign exchange (forex) reserves decreased by $1.20 billion to $292.08 billion for the week ended Jan 17, Reserve Bank of India (RBI) data showed.

The foreign exchange reserves had increased by $177.8 million to $293.28 billion for the week ended Jan 10.

According to the RBI’s weekly statistical supplement, foreign currency assets, the biggest component of the forex reserves, fell by $1.20 billion to $265.93 billion.The foreign currency assets had risen by $190.3 million to $267.14 billion in the previous week.

The basket of 12 crude oils of the Organisation of Petroleum Exporting Countries (OPEC) stood at $106.11 a barrel Thursday, compared to $105.62 Wednesday, according to the OPEC Secretariat.

The new OPEC reference basket comprises Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Iran Heavy (Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (the United Arab Emira

The Indian rupee crashed by 73 paise to close at two-month low of 62.66 against the US currency on on strong dollar buying by banks and importers.

Forex dealers said weakness in local equities cast a shadow on the rupee. Dollar losing in overseas markets didn’t impact the fall of the local currency, they added.

Dollar short-covering by some banks was triggered at 62.45-62.50 level pulling down rupee further at the fag-end.

ESPN has announced the launch of digital shops across its ESPNcricinfo.com and ESPN.com.au sites. The online stores, developed in collaboration with Velocity Brand Management”s retail division (VBM Retail), will provide global cricket fans and sports fans in Australia and New Zealand with a wide range of licensed and fan-specific merchandise along with branded and co-branded products.

Microsoft”s earnings for the fiscal second-quarter are reportedly better than market expectations, despite the company”s pending announcement about any replacement for outgoing CEO Steve Ballmer.

The benchmark BSE Sensex slipped from its record closing high by losing over 82 points in early trade today as funds and retail investors booked profits after recent gains amid a weak trend in the Asian region.

The 30-share barometer, which had gained over 310 points in the previous four sessions, lost 82.20 points, or 0.38 per cent, to 21,291.46, with banking, metal, healthcare and realty sector stocks leading the fall.

Similarly, the wide-based National Stock Exchange index Nifty declined 27.15 points, or 0.43 per cent, to 6,318.50.

City-based Indian Bank has decided to sell off some of its big loan defaulting accounts to asset reconstruction companies and cut down its non-performing assets (NPA), said a top bank official here Thursday.

“We have identified 19 big accounts to be sold to asset reconstruction companies. Each account would have an outstanding of Rs.5 crore and above. Approximately the total outstanding to the bank on these accounts will be around Rs.300 crore,” chairman and managing director T.M. Bhasin told reporters after announcing the bank’s third quarter results.

The Government of India have announced the sale/re-issue of 1.44 per cent of inflation indexed government stock-2023” for a notified amount of Rs. 500 crore through a price based auction.

The auction will be conducted using uniform price method and conducted by the Reserve Bank of India(RBI) in Mumbai on January 29.

Up to 20 per cent of the notified amount of the sale of the stocks will be allotted to eligible individuals and Institutions as per the scheme for non-competitive bidding facility in the auction of government securities.

The rupee dropped by 18 paise to 61.99 against the US dollar in late morning trade today on fresh demand for the American currency from banks and importers.

The rupee resumed lower at 61.95 per dollar as against the last closing level of 61.81 at the Interbank Foreign Exchange (Forex) market and hovered in a range of 62.04-61.90 per dollar before quoting at 61.99 at 1045 hrs.

Banks and importers preferred to increase their dollar position in view of a firm American currency in the overseas market, a forex dealer said.

A benchmark index of Indian equities markets was trading flat at 30.11 points or 0.14 percent down in the pre-noon trade Thursday.

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

The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 21,319.69 points, was trading at 21,307.56 points in the pre-noon session, down 30.11 points or 0.14 percent from the previous day’s close at 21,337.67 points.

Nearly half of the Indian CEOs surveyed are “very confident” about revenue gains for their companies in the next 12 months, even as they cited availability of skilled talent and corruption as major business threats, as per a PwC study.

According to PwC’s 17th Annual Global CEO survey, released by World Economic Forum here, 49 per cent of Indian business heads are very confident about their growth prospects in the next 12 months, higher than the global average (39 per cent).

India is likely to clock an economic growth rate of 4.6 per cent this financial year and the expansion may improve to 5.4 per cent in 2014-15, the International Monetary Fund (IMF) said on Tuesday in a report.

“Growth in India picked up after a favourable monsoon season and a higher export growth and is expected to firm further on strong structural policies supporting investment,” IMF said in its World Economic Outlook update.

The growth rate in 2015-16, at factor prices (excluding taxes), is likely to be 6.4 per cent, it added.

The benchmark BSE index Sensex extended gains for the second straight day by adding nearly 62 points in early trade today on increased buying by funds and retail investors amid a firming Asian trend.

The 30-share barometer, which had gained 141.43 points in the previous session, rose further by 61.95 points, or 0.29 per cent, to 21,267 with banking, metal and capital goods sectors stocks leading the rise.

The National Stock Exchange index Nifty moved up by 19.50 points, or 0.31 per cent, to 6322.80.

Reliance Industries Ltd (RIL) plans to start production of natural gas from coal seams, called coal-bed methane (CBM), in Madhya Pradesh from 2015-16.

In a presentation to analysts post Q3 earnings announcement, RIL said first gas from its Sohagpur CBM blocks in Madhya Pradesh is “targeted by FY16.”

It plans to produce 3.5 million standard cubic meters per day of gas from the two Sohagpur blocks.

Ending almost seven years of wait, Air India is finally expected to join Star Alliance, a global network of airlines, by this summer.

“Without giving a specific date, one can say that we will complete the work (to be carried out by Air India to join the alliance) by this summer. … After that, they will be ready to join straightaway,” Star Alliance CEO Mark F Schwab told reporters here last night.

Snapping its two-day losing streak, the BSE benchmark Sensex on Monday gained over 141 points on buying in bluechips led by IT stocks after Wipro posted encouraging quarter earnings.

The 30-share barometer rose by 141.43 points, or 0.67 percent, to close at 21,205.05 points. The index, which lost 226 points in the last two sessions, touched a low of 21,001.13 points in day trade.

Brokers said sentiment improved as the third-largest software provider Wipro posted attractive earnings for the third quarter ending December 2013.

India increased its holding of American government securities to USD 63.9 billion for the second straight month in November last year.

The exposure, at the end of November last, is also the highest compared to the previous five months.

In October 2013, the holdings were worth USD 59.9 billion. Despite uncertainties in the world’s largest economy, India has been increasing its exposure to American treasury bills since September last when it touched USD 56.8 billion.

Overseas investors have pumped in over Rs 16,000 crore (USD 2.6 billion) in the Indian debt market in the new year so far, after being net sellers of bonds in 2013.

The inflows came against the backdrop of US Federal Reserve’s decision to start reducing its bond purchases by USD 10 billion, to USD 75 billion, from this month.

The US Fed decision to taper its monthly bond-buying programme raised concerns that funds available for investing in the emerging markets may be reduced.

Gold prices rebounded by Rs 210 to Rs 30,180 per ten grams in the national capital on Saturday following revival of buying by stockists for the marriage season coupled with a higher global trend.

Silver also recovered Rs 600 to Rs 45,200 per kg on increased offtake by industrial units and coin makers.

Traders said revival of buying by stockists for the marriage season and a higher global trend, after Federal Reserve Bank of Minneapolis said policy makers need to do more to stimulate the economy, mainly influenced the sentiment.

Dropbox has reportedly raised 250 million dollars in its funding round, putting the company”s valuation at 10 billion dollars. It is the second time the cloud file hosting service has raised the amount, after 2011 in a round that included Goldman Sachs, Sequoia, Index Ventures and Accel Partners. According to Tech Crunch, in November, based on market estimates about an additional 250 million dollars raise, the company was speculated to reach a valuation of 8 billion dollars.