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Rupee down 13 paise against dollar

Jul 242012

MUMBAI: The rupee on Tuesday breached the 56-mark, down 13 paise to trade at fresh three-week low of 56.10 against the US dollar on the Interbank Foreign Exchange due to strong demand for the American currency from banks and importers, particularly oil firms.

Besides, the dollar also strengthened against other currencies such as the euro in the overseas market on worsening euro zone worries and Moody’s downgrading Germany’s sovereign outlook to negative, putting further pressure on the rupee, dealers said.

The domestic currency has fallen past the 56-level against the dollar after June 29.

Industry grows at fastest

Oct 132009

industrial The country’s industrial output grew at its fastest pace in 22 months in August as factories cranked out more big-ticket household goods and cars as stimulus spending drove demand, but economists said the Reserve Bank of India was unlikely to lift interest rates at its review later this month.

Industrial output rose 10.4 percent in August from a year earlier, beating the median forecast in a Reuters poll, and July’s annual growth was revised up to 7.2 percent from 6.8 percent, data showed on Monday.

Economists said while the data reinforced expectations for rising inflation, the RBI was unlikely to raise interest rates at an October 27 policy review as it would want more evidence of a sustained economic upturn.
“RBI would like to wait for the IIP and inflation numbers for the next month,” he said.

Consumer durable goods output surged by an annual 22.3 percent as stimulus measures helped fuel demand, although Ramya Suryanarayan, an economist at DBS in Singapore, said the growth was driven by pent-up demand and pre-holiday season spending that was unlikely to be sustained.

“Inflation is rising, production is rising fast, so logically the data does suggest that it makes sense to move, but the central bank will probably wait it out at this meeting,” said Suryanarayan, who expects the first rate hike by January at the earliest.

Manufacturing production in Asia’s third-largest economy rose 10.2 percent in August from a year earlier, while mining output was up 12.9 percent and power generation rose 10.6 percent.

India’s industrial output growth, which expanded for the eighth consecutive month, was the fastest since October 2007 but still lagged China’s 12.3 percent growth in August, the quickest pace there in 12 months.
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Equities to open higher

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Jul 232009

share-market-indiaStocks are expected to open higher Thursday in line with Asian peers. However, volatility is likely with good amount of stock specific action as an entire host of large corporates announce their report cards for the April-June quarter.

US stocks ended on a mixed note overnight after the recent sharp rally. The Dow Jones Industrial Average declined as investors sold some of the market’s recent winners to take profits. The S&P 500 index was near break-even. While the Nasdaq rose on Wednesday for its 11th straight daily gain, buoyed by solid profits from Apple Inc and Starbucks Corp. Disappointing results from some banks and a drop in the energy sector weighed on the Dow and the S&P 500.

Meanwhile, stocks across Asia edged higher with the Nikkei climbing 0.13 per cent and Topix adding 0.1 per cent. Hang Seng rallied 2.13 per cent and Straits Times inched up 1.05 per cent.

Back home, stock markets ended lower for the second consecutive session Wednesday, as traders booked profits after the recent rally. Capital goods, IT and auto space were down while realty stocks closed a little higher.

Bombay Stock Exchange’s Sensex ended at 14,843.12, down 219.37 points or 1.46 per cent. The broader index hit a high of 15369.42 and low of 14786.58. National Stock Exchange’s Nifty closed at 4398.90, down 70.2 points or 1.57 per cent. The index touched an intra-day low of 4380.45 and high of 4557.95.
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Wall St extends gains

Jul 162009

usstock US stocks rallied further on Wednesday, sparked by strong results from bellwether Intel Corp that lifted hopes for a rebound in
technology spending and fueled optimism for the earnings season.

The Dow Jones industrial average rose 248.56 points, or 2.97 percent, to 8,608.05. The Standard & Poor’s 500 Index gained 26.53 points, or 2.93 percent, to 932.37.

The Nasdaq Composite Index jumped 60.44 points, or 3.36 percent, to 1,860.17.
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Stocks are expected to extend gains

Jul 152009

equity-negliStocks are expected to extend gains on Wednesday following encouraging cues from Wall Street.
US stocks managed to end with decent gains on Tuesday as better-than-expected corporate profits offset concerns about weak consumer demand. Goldman Sachs Group’s surge in quarterly profit handily beat expectations while anticipation that chipmaker Intel will follow suit drove the market momentum.
The Dow Jones Industrial Average rose 27.81 points, or 0.33 per cent, to 8,359.49. The Standard & Poor’s 500 Index gained 4.79 points, or 0.53 per cent, to 905.84 and the Nasdaq Composite Index advanced 6.52 points, or 0.36 per cent, to 1,799.73.
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Wall street stock fell

Jul 142009

shaves-320-points-off-sensexStocks fell on Monday as caution about the latest earnings season derailed an early bounce, and investors fretted about the survival of
CIT Group Inc, which provides financing to many small and mid-sized businesses.

CIT shares tumbled 26.1 per cent to $1.13 on the New York Stock Exchange.

Shares of big-cap technology bellwethers, including Research In Motion Ltd and Cisco Systems Inc weighed on Nasdaq.

The Dow Jones industrial average was down 12.55 points, or 0.15 per cent, at 8,133.97. The Standard & Poor’s 500 Index was down 3.47 points, or 0.39 per cent, at 875.66. The Nasdaq Composite Index was down 18.43 points, or 1.05 per cent, at 1,737.60.
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Dividend-focused funds shine

Jul 062009

share-market-india2Fund manager Paul Magnuson only invests in companies that pay dividends, a proven but conservative strategy that analysts say
requires patience.

The dividend-investing focus of the Allianz NFJ Small-Cap Value fund kept it above the broader US market last year. And Magnuson views his consistent approach as a safety net for investors in the long run.

The $5.2 billion fund has posted modest returns of 2.3 per cent this year. But while the benchmark Standard & Poor’s 500 Index plummeted 38 per cent in 2008, Magnuson’s fund posted a less dramatic 27 percent decline in total returns.

The Dallas-based asset manager attributes his fund’s stability to its strategy of only investing companies that pay dividends, considered by industry professionals to be signs of a company’s financial health.

Magnuson’s conservative strategy reflects the broader nature of investing in dividend-paying companies, which analyst Christopher Davis says requires patience.

A dividend-focus can appear sluggish in “racier” markets, but has long-term payoffs,

“If these funds tend to lose less in the downside and keep up with the market in the upside, you’re going to have an attractive risk-return profile,” said Davis, who follows dividend-focused funds for research firm Morningstar.

From 1979 through June this year, the S&P 500′s dividend-paying companies beat their counterparts by 1.56 per cent per year compounded, said Howard Silverblatt, senior index analyst at credit ratings agency Standard & Poor’s.

The Allianz NFJ Small-Cap Value fund has done well over the long term, posting 10-year annualized total returns of 8 per cent, about 10 percentage points ahead of the S&P 500 over the same period, ranking it in the top 11 per cent of its small-cap value category, according to Morningstar.

Other dividend-focused funds show slimmer returns this year but have done well over the longer term.

T. Rowe Price’s Equity Income Fund, which also has a dividend approach, has lagged the S&P 500 by about 2 percentage points this year, but is beating its large-cap value index by about 7 percentage points. It’s 10-year annualized returns are about 3 percentage points ahead of S&P 500.

There are limits to this approach, including a restriction on industries in which dividend-focused funds can invest.

Magnuson had a negligible 2 percent of his fund parked with information technology companies as of May 31, because companies in that sector are unlikely to provide regular cash payouts to investors. He favors the industrials and materials sectors, including Commercial Metals Co, a maker of steel and metal products that is his fund’s No. 2 holding.

Commercial Metals suffered last year when commodity prices took a hit, but Magnuson liked its strong balance sheet and practice of increasing its dividend payout over the past 10 years. Its shares are up nearly 35 per cent this year, compared to a nearly 1 per cent fall in its sector.
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US stocks open an unexpected rise in jobless claims

Jun 262009

share-marketsAn unexpected rise in jobless claims is causing investors to sell

The government says new jobless claims rose by 15,000 to 627,000 last week. The market had been expecting a decline. Unemployment affects many drivers of the economy – most importantly, consumer spending.

Uncertainty about when the economy will turn around, and how fast it will grow when it finally does, have weighed on the market this month. The Dow Jones industrial average remains up 26.8 percent from its 12-year low hit on March 9, but is down about 5.7 percent from a June 12 high.

In the first few minutes of trading, the Dow is down 19 to 8,280. The Standard & Poor’s 500 index is down 2 to 898, while the Nasdaq composite index is down 8 to 1,783.
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