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Sensex recovers 22 points on late buying

Jun 202013

MUMBAI: Reversing early losses, the S&P BSE benchmark sensex today closed 22 points higher on fag-end buying in bluechips including Bharti Airtel, HDFC Bank and RIL amid investors awaiting the outcome of the two-day Federal Reserve meeting in the US.

Sensex, which had lost 102.59 points in yesterday’s trade, recovered by 22.42 points, or 0.12 per cent, to close at 19,245.70 points. It had moved between 19,100.13 and 19,274.26 due to volatile movements in index-heavy stocks.

Besides, a higher opening in the European market ahead of the US Federal Reserve policy outcome tonight, also influenced the trading sentiments to some extent here, brokers said.

“FII selling in the bonds segment has led to Rupee weakening to record low levels above 58 level. This along with profit-booking due to lack of any positive triggers, market is facing resistance at higher levels,” said Nidhi Saraswat, Senior Research Analyst,Bonanza Portfolio Limited.

On similar lines, the wide-based NSE index Nifty ended 8.65 points, or 0.15 per cent higher at 5,822.25,. It had dipped below 5,800 points level to touch session’s low of 5,777.90 in early trade. Also, SX40, the flagship index of MCX-SX, closed 14.04 points higher at 11,427.07.

In the 30-share sensex pack, 15 stocks led by HDFC Ltd, HDFC Bank, Maruti Suzuki, Sterlite Industries and Hindalco gained. However, Infosys, TCS, Hero MotoCorp, Tata Motors and Sun Pharma ended in negative territory.

Shares of telecom companies remained in demand after regulator Trai decided not to make roaming services completely free of charge. Bharti Airtel rose 2.83 per cent, Rcom gained 2.38 per cent and Idea Cellular jumped 4.52 per cent.

RIL saw buying support from funds as well as retail investors and gained 0.91 per cent to Rs 831.10.

Outside of major benchmark indices, shares of IDFC caught investors’ fancy and gained 0.94 per cent after the company’s board has approved a proposal to seek licence from RBI for setting up a bank. Religare Enterprises, however, ended flat.

The BSE consumer durables sector index gained the most among sectoral indices, rising 1.96 per cent, followed by Metal 1.28 per cent and realty 0.58 per cent.

National roaming to get cheaper

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Jun 182013

NEW DELHI: National roaming is set to get cheaper from next month with the telecom regulator asking operators to slash call charges by up to 57%, while also capping the SMS tariff. It has, however, ruled out free national roaming, saying the move will result in local calls getting more expensive as a majority of the mobile users will end up cross-subsidizing a small proportion of the user base that uses the roaming facility.

Telecom Regulatory Authority of India (Trai) on Monday asked telecom companies to offer special vouchers for pre-paid customers, who use roaming facility, besides offering customized tariff plans to post-paid subscribers. Of the two plans, one will come without a rental and will allow users to pay the same tariff while roaming and when at home. Incoming calls will not be free but the scheme will not have fixed charges or rentals. The other option will have a fixed charge but incoming calls will be free.

“Such a regime will significantly bring down cost of roaming and competition will reduce tariffs without a heavy hand (from the regulator),” Trai chairman Rahul Khullar told a press conference. He ruled out a free roaming regime, arguing that it will result in cross-subsidization as only 13% of the mobile subscribers use roaming facility and telecom companies would recover the Rs 2,500 crore hit by jacking up local call charges. “We won’t get to zero but we will get jolly close to it,” he said, adding that the impact will be reviewed after a year instead of three years.

Telecom minister Kapil Sibal had repeatedly spoken of free roaming by October but Khullar clarified that the New Telecom Policy talked of “working towards free roaming”.

While most telecom companies said their revenues will be impacted, Anil Ambani’s Reliance Communications lashed out at the regulator for not moving to a zero-roaming regime. “Roaming charges should have been completely done away with, which is what Reliance Communications has been advocating for a long time now. This would be in the interests of consumers and grow the market, and be in keeping with the MOCIT’s (Sibal’s) stated intent in NTP 2012. We do not agree with the views expressed by certain operators that free roaming would adversely impact revenues. Instead, the growth of business would be rewarding for service providers, as has been seen and confirmed from the international experience,” it said in a statement.

Analysts said the impact on telecom companies will not be significant. “We consider the policy to be balanced as it achieves the government objective of allowing free national roaming and does not materially impact revenues of telcos. Most telcos we spoke to (post this news) do not expect any major negative impact on earnings. We believe any positive elasticity led by rate cuts would positively surprise and offset any likely negative impact,” Goldman Sachs said in a note.

Sensex up 80 points in early trade ahead of RBI policy meet

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Jun 172013

Sensex up 80 points in early trade ahead of RBI policy meet

MUMBAI: The BSE benchmark sensex rose nearly 80 points in early trade on Monday as funds and investors made selective buying ahead of RBI policy meeting.

The 30-share barometer gained 79.48 points, or 0.41 per cent, to 19,257.41 with stocks of healthcare, IT, oil and gas and capital goods leading the rise.

The sensex had gained 350.77 points in the previous session as slowing wholesale inflation and strengthening rupee revived hopes of rate cut by RBI.

The wide-based National Stock Exchange index Nifty up by 12 points, or 0.21 per cent, to 5,820.40.

Brokers said fresh buying by participants before the Reserve Bank of India’s policy meeting today, mainly attributed rise in stock prices.

Besides, a firming trend in the Asian region also supported the upside, they said.

In the Asian region, Hong Kong’s Hang Seng index gained 0.18 per cent, Japan’s Nikkei up by 1.20 points in early trade on Monday. The US Dow Jones Industrial Average ended 0.70 per cent lower in the previous session on Friday.

Times Group enters education biz with TimesPro

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Jun 172013

One of India Inc’s big headaches is the acute shortage of skilled or trained professionals. The 2013 employability survey by Assocham (Associated Chambers of Commerce and Industry of India) finds that only 10% of Indian graduates are employable.

In an attempt to plug this critical gap, the Times Group has decided to enter the education business. Its initiative, TimesPro, will be launched on Monday under the aegis of the Times Centre for Learning. It will aim to meet the needs of industry by improving the skill sets of graduates and transforming them into professionals through specific courses in BFSI (Banking and Financial Industry), Media, Organized Retail, Hospitality and Healthcare.

TimesPro courses will be designed and delivered by industry experts and academics with extensive experience. TimesPro will leverage the group’s extensive resources, knowledge base and technological expertise to provide a first-of-its kind learning experience. As part of the launch, the company has set up modern learning centres in Mumbai, Noida, Jaipur, Lucknow, Ahmedabad, Hyderabad and Bhubaneswar.

Speaking on the eve of the launch, Vineet Jain, managing director, Times Group, said, “The Times of India Group has innovation and excellence in its DNA. TimesPro through its unique and modern training programmes will provide industry with graduates having relevant professional skill sets. These courses will also make graduates more employable and job-ready.”

TimesPro’s flagship program – a post-graduate Diploma in Banking Management – will be launched later this month. It will churn out young professionals to meet the huge demand in the banking industry created by the influx of private banks in the next few years due to the amendments made by the Reserve Bank of India.

Sensex up 195 points to cross 19,000 level in early trade

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Jun 142013

MUMBAI: Snapping its three-session losing streak, the BSE benchmark sensex on Friday rose by over 195 points to trade above the 19,000 level in early trade on buying by funds and retailers, after finance minister P Chidambaram announced that more economic reforms are on the anvil.

Besides, a firming trend in the Asian region influenced the trading sentiment.

The 30-share barometer rose by 195.52 points, or 1.04%, to 19,022.68 with stocks of realty, consumer durables, metal, capital goods, banking and sectors leading recovery. The index had lost 613.91 points in the previous three sessions.

Similarly, the wide-based National Stock Exchange index, Nifty moved up by 58.15 points, or 1.02%, to 5,757.25.

Brokers said the sentiment turned better on revival of buying by funds and retail investors after the finance minister signalled more reforms to boost economic growth.

Further, a firming trend in the Asian region following overnight gains at the US market on the back of upbeat economic data, too, influenced the sentiment, they said.

Meanwhile in Asia, Japan’s Nikkei was up by 2.59%, while Hong Kong’s Hang Seng gained 0.99% in early trade. The US Dow Jones Industrial Average ended 1.21% higher yesterday.

World Bank sees 6.7% GDP growth for India by FY2014-15

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Jun 132013

World Bank sees 6.7% GDP growth for India by FY2014-15

WASHINGTON: The World Bank on Thursday forecast a 6.7 per cent growth rate for India by next fiscal as exports and private investment are projected to strengthen and provide a boost to growth.

In its latest ‘Global Economic Prospects’ report, the IMF said South Asia’s regional growth will be driven mainly by a projected pick up in India, whose GDP in factor cost terms is projected to grow 5.7 per cent in the 2013 fiscal year (ending in March 2014), and then accelerate to 6.5 per cent and 6.7 per cent in FY2013-14 and FY2014-15, respectively.

Exports and private investment, which slowed sharply in 2012, are projected to strengthen during 2013-15 and provide a boost to growth. However, how robust that recovery will be, will depend on the pace of policy and fiscal reforms, and remains subject to significant uncertainty and downside risks.

Some upside risks to the outlook include a faster-than- projected pick up in global demand and a larger than expected decline in commodity prices, the report said.

According to the report, a greater dependence on foreign investment inflows to finance India’s significantly larger current account deficit compared to the past has increased its vulnerability to a sudden reversal of investor sentiment.

“Several factors could result in a slowing or reversal of investment inflows —an unanticipated monetary tightening in some high income countries; resurgence of debt tensions; escalation of geopolitical conflict; and even disenchantment with the pace or nature of domestic reforms,” it said.

Moreover, the sharply relaxed monetary policy in Japan could result in strong and disruptive private capital flows, it added.

Noting that the business sentiment in the manufacturing sector in India weakened to a four-year low in May, the report said if business sentiment were to remain weak in coming months, this could adversely impact investment and growth.

The report said the sharp economic slowdown experienced in the post-financial crisis period exposed structural vulnerabilities and has made the task of reviving growth in a sustainable manner even more urgent.

“But with India’s positive output gap mostly closed after its steep growth deceleration, and given capacity constraints in most South Asian countries, policymakers need to remain vigilant against relying on short-term demand stimulus in order to avoid overheating (inflation and current account) pressures.

“South Asian countries should continue to rebuild their fiscal buffers to be able to deal with future crises,” it said.

Sebi to get powers to summon call data, email, SMS records

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Jun 132013

NEW DELHI: Capital market regulator Seni will soon get powers to summon phone call records, emails and SMSes of persons it is probing for insider trading and other market manipulations.

With these powers, the Securities and Exchange Board of India (Sebi) aims to prevent black money coming into the market as well as to keep an eye on insider trading.

Sebi’s plea for such powers has been endorsed by the finance ministry which late last month wrote to the ministry of home affairs for designating the Capital market regulator as agency authorised to receive call data records (CDR).

Sources said Economic Affairs secretary Arvind Mayaram late last month wrote to home secretary seeking designating Sebi as agency authorised to be a recipient of CDR information related to calls, emails and SMSes under the Indian Telegraph Act, 1885.

This followed a meeting finance minister P Chidambaram took on May 15 to discuss how Sebi can be enabled to requisition and receive CDRs of calls, SMSes and emails available with telecom/other service providers.

Sources said Section 11C of the Sebi Act empowers the regulator to call for information and records from any intermediary or person in respect of any transaction in securities which it is investigating.

Sebi, as per this section, is an investigation agency for offences related to market fraud and insider trading and can thus summon CDRs.

Sources said the ministry asked MHA to operationalise an arrangement for SEBI being designated as an agency which can requisition and receive CDR information related to calls, emails and SMSes under the Indian Telegraph Act, 1885.

The market regulator has been seeking government’s help in getting call data records and e-mail records from the service providers of persons being probed by Sebi in cases of insider trading and other market manipulations.

However, the regulator is not asking for powers to snoop on telephonic conversations.

CDRs generally list out the number of conversations between two or more entities and are different from phone-tapping, wherein an agency can snoop on or record the telephonic conversations of those suspected to be engaged in some wrongdoings.

Regulators in the US and some other countries have often used tapped phone conversations to prove insider trading and other charges, including in the famous Rajat Gupta case.

Currently, the phone-tapping powers are restricted to only a few agencies in India, including the CBI and the tax department.

Sources said the finance ministry is separately considering amendments to the Sebi Act, SCRA and the Depositories Act to strengthen the regulator’s powers.

Retail inflation slows to 9.31% in May

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Jun 132013

NEW DELHI: Falling for the third straight month, retail inflation stood at 9.31 per cent in May due to easing of prices of edible oil and protein-based items, even as vegetable prices inched up sharply.

The consumer price index (CPI) based inflation stood at 9.39 per cent in April. It was 10.39 per cent in March.

The overall food and beverages segment saw an inflation of 10.65 per cent in May, higher than 10.61 per cent in April.

The prices in the vegetables basket rose sharply to 9.78 per cent in May from 5.43 per cent in April, according to data released on Wednesday.

However, inflation in protein-based items — egg, meat and fish — declined to 12.52 per cent during the month, from 13.60 per cent in April. In oils and fats segment, it was 5.49 per cent, down from 7.52 per cent in April.

Among all the constituents that make the CPI, cereals recorded the highest inflation of 16.29 per cent in May.

Besides, inflation in pulses stood at 9.59 per cent and in sugar it was 9.21 per cent on an annual basis.

The rate of price rise in clothing and footwear segment stood at 9.72 per cent during the month.

In urban areas, retail inflation declined to 9.65 per cent in May from 9.73 per cent in April. The CPI for rural population fell to 8.98 per cent during the reported month from 9.16 per cent in April.

The data for wholesale price index-based inflation for May is expected on Friday. The WPI in April eased to over three-year low of 4.89 per cent.

The RBI would take into account the drop in retail inflation and the WPI numbers while formulating its mid-quarterly policy review, which is scheduled on June 17.

In order to accelerate economic growth, the Reserve Bank of India (RBI) had last month cut key interest rates by 0.25 per cent.

Meanwhile, another key economic indicator the index of industrial output (IIP) grew at 2 per cent in April.

Car sales down 12.3% in May

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Jun 112013

NEW DELHI: Car sales in India fell an annual 12.3 percent in May, an industry body said on Tuesday, dropping for the seventh straight month, as weak consumer sentiment in a slowing economy continued to weigh on demand.

Automakers sold 143,216 cars in India last month, according to data from the Society of Indian Automobile Manufacturers (SIAM).

Sales of motorcycles fell 0.7 percent in May to 881,288 vehicles, SIAM said, while truck and bus sales were down 10.6 percent at 55,458 vehicles.

Sensex trims initial gains, up 33 points

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Jun 112013

MUMBAI: Erasing most of its early gains, the BSE benchmark sensex was trading higher by 33 points in the late morning trade on Monday on buying in IT, Capital Goods, Teck and Auto counters despite selling in consumer durable and helathcare counters.

Shares of IT companies firmed up due to depreciation of rupee value against the dollar.

The 30-share index resumed higher at 19,530.35 and moved up further to 19,585.75 on strong buying. However, it declined afterwards to 19,419.07 before quoting at 19,462.56 at 1100 hrs still showing a gain of 33.33 points 0.17% from its last weekend’s level.

The NSE 50-share Nifty also moved up by six points, or 0.10%, to 5,887.00 at 1100hrs.

Major gainers were Wipro (2.06%), Hero Motocorp (2.00%), NTPC (1.32%), M&M (1.28%) Bajaj Auto (1.20%) and TCS (0.98%).

However, Jindal Steel moved down by 2.18%, Sun Pharma 1.87%, Bharti Airtel 0.97% and ICICI Bank 0.84%.

Foreign institutional investors (FIIs) bought shares worth a net Rs 157.90 crs on last Friday as per provisional data from the stock exchanges.

Most Asian stocks edged higher in the early trade after a report showed the US added more workers than expected. Key benchmark indices in Hong Kong, Japan, Singapore, Taiwan and South Korea rose by 0.44% to 3.38%.

US stocks ended higher on last Friday after US jobs data eased investors’ worries that the Federal Reserve may be reducing its stimulus program in the near future.

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