Financials

The price of bitcoin reached 1,000 dollars for the first time since mid-December.

The jump comes on Mt. Gox, the second-largest exchange by volume, following multiple announcements of major businesses accepting the currency.

According to Mashable, Zyngaannounced that it is working with BitPay, a bitcoin-payment processor, to test accepting the digital currency as payment in certain online games.

Last month, the CEO of Overstock.com, a popular discount-shopping website, revealed plans to accept bitcoin in the first half of 2014.

Market regulator Sebi today cautioned investors and the general public against entities making false promises of exorbitant returns through schemes being run without regulatory approvals.

In a public notice, the Securities and Exchange Board of India (Sebi) observed that some companies or entities are illegally mobilising funds from the public by making false promises of exorbitant rates of return under various schemes.

Former union telecom secretary R. Chandrashekhar Sunday took over as president of the National Association of Software and Services Companies (Nasscom), the representative body of the multi-billion dollar Indian IT industry.

“I feel privileged to lead Nasscom in its next journey of achieving the vision and aspiration of $300 billion revenues by 2020, as the opportunities are vast at this juncture and exciting times lie ahead for the industry,” Chandrashekhar said.

Chandrashekhar succeeded Som Mittal who was at the helm of the industry body for seven years since 2007.

Public sector steel major Rashtirya Ispat Nigam’s turnover during the April-December period of the current fiscal stood at Rs 9,123 crore buoyed by both domestic sales and exports.

“The cumulative turnover during April-December, 2013 grew by 3 per cent to Rs 9,123 crore against Rs 8,876 crore over the corresponding period last year,” RINL said today in a statement.

The rupee bounced back from a one-month low to post its first gain in the New Year, rising 10 paise to close at 62.16 against the dollar Friday after the RBI was said to have sold the US currency.

Strong foreign fund inflows into stocks and a recovery in local equities after initial losses also supported the rupee.

At the interbank foreign exchange market, the rupee opened lower at 62.38 a dollar from yesterday’s close of 62.26, a one-month low. It dropped further to 62.56 amid a fall in local stocks and dollar demand from importers.

National carrier Air India has given a quiet burial to its much-talked about voluntary retirement scheme (VRS) owing to high attrition rate and government’s disinclination to provide committed funds due to precarious state of the central finances, say sources.

“It has been decided at the last over-sight meeting that we will not pursue the VRS scheme,” Air India sources said.

Air India had in July 2012 approved the VRS package for all its permanent employees who have served for 15 years or are at least 40 years of age.

The poverty ratio in the country has fallen steeply during the UPA regime to 21.9 percent in 2012 from 37.2 percent in 2004, said the UPA Government’s Report Card released by Prime Minister Manmohan Singh on Friday.

“Under the UPA government, poverty in India has declined in an unprecedented manner. Average decline in poverty was 2 percent per annum during 2004-2012, almost twice the rate of the preceding decade,” said the report card.

After an eventful 2013, the new year started on a tepid note for the domestic stock market, which is expected to remain cautious over political developments leading up to the general elections.

The benchmark S&P BSE Sensex snapped its two-week gains, tumbling 342 points in the just concluded trading week on fresh selling in capital goods, power, PSU, auto, refinery, metal and banking sectors.

India’s foreign exchange (forex) reserves increased by $204.9 million to $295.70 billion for the week ended Dec 28, Reserve Bank of India (RBI) data showed Friday.

The reserves grew after falling for two weeks. The foreign exchange reserves had declined by $12.6 million in the week ended Dec 20 after posting strong gains in the previous five weeks largely due to the special swap window opened by the RBI.

According to the RBI’s weekly statistical supplement, foreign currency assets, the biggest component of the forex reserves, grew by $164.3 million to $268.63 billion.

Tata Consultancy Services (TCS) is a shining example of the success of Indian private enterprises, Prime Minister Manmohan Singh said Saturday.

“It has carved a niche for itself in the global market for IT and IT-enabled services and has set benchmarks of excellence in the area of software development,” the prime minister said here.

Manmohan Singh was addressing a gathering at the foundation laying ceremony of TCS Global Learning Centre at the Technopark campus here.

Union Commerce Minister Anand Sharma has said his ministry is in the process of preparing a cabinet note on Foreign Direct Investment (FDI) norms for both the railways and construction sectors.

He said the government is mulling to revisit the gold import norms, keeping demand and supply in view.

Last year, the government had relaxed FDI norms in several sectors, including telecom, defence, and stock exchanges.

Sharma said FDI into the country is expected to touch over 220 billion dollars during the UPA-2 regime. (Ani with inputs)

Prime Minister Manmohan Singh, who Friday declared that he will step down after the next general election due by May this year, said reviving economic growth would be his priority in the remaining five months.

Addressing a media conference here, Manmohan Singh said a sustained high growth has been among the major achievements of his decade-long tenure as prime minister of Asia’s third largest economy.

“I have done reasonably well, the growth process has been sustained despite global crisis, despite Eurozone crisis,” the prime minister said.

Prime Minister Manmohan Singh Friday said any wrongdoing with regard to 2G spectrum allocation and coal block allocations “will be punished” through due process of law.

“There is much public concern on high profile allegations of corruption, notably in regard to 2G spectrum allocations, coal block allocations and cases related to land,” he said while addressing the media here.

“Where some decisions taken earlier, when allocations were made administratively, have come under question, they are being investigated. Any wrong doing will be punished through due process of law.”

Stating that more sectors will report revenue expansion in the December quarter, rating agency Crisil on Thursday said revenue growth has bottomed out, but margin growth may take more time.

“Revenues, after declining for nine successive quarters, rebounded in the September quarter. However, revenue growth was largely on account of export-oriented sectors benefiting from the weak rupee. But from the third quarter of this fiscal, we expect a gradual recovery in more sectors,” Crisil President (Research) Mukesh Agarwal said in a research note.

Indian IT bellwether Infosys Ltd Friday appointed its directors B.G. Srinivas and U.B. Pravin Rao as presidents of the company and realigned their business portfolios.

“As presidents, Srinivas and Rao will report to chief executive S.D. Shibulal with immediate effect,” the company said in a statement here.

Srinivas will also focus on global markets, while Rao will look after global delivery and service innovation.

After dropping 157 points in early trade amid weak global cues, the Sensex on Friday recouped some losses in the latter half on the back of continued strength in IT stocks to end the day with a 37-point fall.

Selling in bluechips led by auto sector on reports of lower vehicle sales and funds offloading power and capital goods shares weighed on the market sentiment, traders said.

Unperturbed by the rise in the fiscal deficit, Finance Minister P Chidambaram
on Thursday exuded confidence that it would remain within the target of 4.8 per cent of GDP in the current financial year.

“We will maintain the fiscal deficit at 4.8 per cent. That is the red line that will not be breached. I am confident that it will not be breached,” he said at a press conference.
The minister was responding to a question about the possibility of the fiscal deficit rising after it touched 94 per cent of the budget estimate at the end of November.

A benchmark index of Indian equities market Thursday fell 252 points, as capital goods and bank stocks fell.

The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 21,179.91 points, closed at 20,888.33 points, down 252.15 points or 1.19 percent from its previous day close at 21,140.48 points.

The Sensex touched a high of 21,331.32 points and a low of 20,846.67 during the day.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) closed trade 80.50 points or 1.28 percent down at 6,221.15 points.

A benchmark index of Indian equities Wednesday closed 30 points down, as information technology (IT) and oil and oil and gas stocks fell.

The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 21,222.19 points, closed at 21,140.48 points, down 30.20 points or 0.14 percent from its previous day close at 21,170.68 points.

The Sensex touched a high of 21,244.35 points and a low of 21,133.82 points during the day.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) closed trade 2.35 points or 0.04 percent up at 6,301.65 points.

Indian equities emerged as the best performer among the major emerging economies with a return of nearly 10 percent for a key index on the back of the close to $20 billion foreign fund inflow into the $1.1 trillion market.

Returns on India’s major stocks have beaten equities in BRICS partner countries Brazil, Russia and China. The performance of the 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) was also among the best globally.

The two widely tracked indices of the Indian equities markets – Sensex and Nifty – scaled a new peaks in 2013.

A benchmark index of Indian equities markets was trading flat at 26.30 points or 0.12 percent up in the early morning trade Wednesday.

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

The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 21,222.19 points, was trading at 21,196.98 points in the early session, up 26.30 points or 0.12 percent from previous day’s close at 21,170.68 points.

The rupee today lost 5 paise to 61.85 against the US dollar in early trade on the Interbank Foreign Exchange market due to appreciation of the American currency against the euro and other currencies overseas.

Dealers attributed the rupee fall to dollar gains against other currencies overseas on upbeat US economic data and demand for the American currency from importers.

They said, however, a higher opening of the domestic equity market capped rupee’s losses.

The domestic unit had gained 11 paise to 61.80 against the dollar in yesterday’s trade.

Indicating a tough year ahead for the country’s banking system, bad loans are likely to rise further in 2014 as the lag effect on asset quality in relation to economic slowdown has not yet peaked, reveals a study by industry body Assocham.

The study, which raises serious concerns on deteriorating asset quality of banks, found that slippages on NPAs show no signs of abating in 2014.

RBI Governor Raghuram Rajan on Monday said high inflation is limiting the central bank’s ability to boost growth with an accomodative monetary policy.

“The outlook for the economy has improved, with export growth regaining momentum, but growth is still weak. The challenges of containing inflationary pressures limit what the monetary policy can do,” Rajan said in his foreword to the half yearly Financial Stability Report 2013 released today.

Painting an optimistic picture on the external front, the Reserve Bank has said the country is ready for the US Federal Reserve’s tapering, and has pegged the current account deficit at below 3 per cent for this fiscal in its eighth Financial Stability Report.

“External sector risks have been considerably reduced and the effect of the tapering on the economy is expected to be limited and short-lived,” the report released today said.