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Showing posts from June, 2013

SENSEX AGAIN REACH 19000

Indian markets were on fire today with Sensex zooming by 520 points, its biggest gain in 22 months, with energy firms RIL and ONGC leading the surge fuelled by steep hike in gas price amid hopes US Fed will not begin tapering monetary stimulus soon. Buying across the spectrum saw all 13 sectoral indices closing with gains as FIIs were seen buying stocks after a flurry of reforms in the energy space. Overall, 1535 stocks gained out of 2512 traded, helping investor wealth soar by Rs 1.52 lakh crore today. The Bombay Stock Exchange 30-share barometer resumed up and stayed in the positive zone throughout to end at 3-week high of 19,395.81, a spurt of 519.86 points or 2.75 per cent. Previously, it had gained 567.50 points on August 29, 2011. The NSE 50-issue Nifty flared up by 159.85 points, or 2.81 per cent, to end at two-week high of 5,842.20. Also, SX40 index, the flagship index of MCX-SX, ended 275.16 points, or 2.45 per cent higher at 11,494.35.
Tracking stocks, rup…

GOLD @ 34 MONTHS LOW

Gold today traded near a 34- month low as the worst quarterly slump in at least nine decades following the Federal Reserve’s comments on tapering stimulus may spur more physical demand. Gold added 0.2 per cent to USD 1,202.70 an ounce, after reaching 1,180.50 dollar, a lowest since August 3, 2010. Silver rose 1.9 per cent to 18.84 dollar an ounce, after reaching USD 18.22, the lowest since August 2010. It's down 33 per cent this quarter, the most since 1980. Gold dropped 25 per cent this quarter, its biggest loss since at least 1920. Fed Chairman Ben S Bernanke said that the Fed may begin tapering its bond-buying programme this year. U.S. data may show today that consumer sentiment improved and business activity expanded, economists said. Bullion slid 28 per cent this year, the biggest annual drop since 1981, after rallying the past 12 years. About USD 62.4 billion was wiped from the value of precious metals exchange-traded product holdings this year as some inves…

RUPEE FALL IN JUNE

GOLD RECORDS BIGGEST LOSS AFTER 1920

Gold today plunged to a 34-month low, its record quarterly drop. Gold fell 4.2 per cent to USD 1,224.18 an ounce, the lowest since August 24, 201. Gold dropped 23 per cent this quarter, heading for its biggest loss since 1920. Fed Chairman Ben S Bernanke said last week the central bank may slow its asset-purchase program this year if the economy continues to improve. US durable-goods orders rose more than expected, home sales advanced to the highest in almost five years and consumer confidence climbed, data showed yesterday. About USD 60 billion was wiped from the value of precious metals exchange-traded product holdings this year as some investors lost faith in them as a store of value and speculation grew that the Fed will taper debt-buying that helped gold cap a 12-year bull run last year. UNDER BEAR GRIP FROM APRIL Gold entered a bear market in April, extending the retreat from its all-time high of USD 1,921.15 in September 2011. Analysts from Morgan Stanley to Credit Suisse Group …

MAHINDRA SATYAM MERGES INTO TECH MAHINDRA

IT services firm Tech Mahindra today announced completion of Mahindra Satyam's merger with itself to create nation's fifth largest software services company with a turnover of USD 2.7 billion. The merged entity will be called Tech Mahindra which will aim to almost double the turnover to USD 5 billion by 2015 with focus on telecom, manufacturing, BFSI among others. Anand Mahindra will be the chairman of the combined entity. Today we have fulfilled the commitment made in 2009, when we acquired Satyam, to jointly become one-of-the largest, diversified players leveraging technology for business solutions, Mahindra said in a statement. "Over the past 4 years we worked through the statutory and legal issues, our teams worked closely on the ground to integrate processes, eliminate overlaps, leverage best practices and deliver enhanced value to all our shareholders," Tech Mahindra Executive Vice Chairman Vineet Nayyar said at a press conference here. The US…

SHAME SHAME...

Shame on his part...Union Agricultural Minister says that India is a key player in controling world food prices...Domestic Food Inflation reaching record highs and could not be controlled by the Government due to supply constraints...But the same people at the helm of affairs nod themselves that we are the key players in controlling world food prices...What a pity...See the news...

India has emerged as a strong player in helping cool down global food prices by exporting major farm commodities like rice and wheat, Agriculture Minister Sharad Pawar said today.
"While feeding 17 per cent of world's population we have emerged as strong player in international market helping to cool down the world food prices," Pawar said at the 16th Indian Cooperative Congress organised by NCUI here. Last year, the country exported agriculture produce worth Rs 1.87 lakh crore, while this year till February itself exports have already crossed Rs 2.1 lakh crore, he said.
The minister said that …

INVESTORS PULLOUT 3 B ILLION USD IN A WEEK

Investors globally pulled out more than USD 3 billion from equity funds focused on emerging markets including India in a week amid concerns over the US Federal Reserve's plan of curtailing its stimulus drive starting later this year, says a report. According to funds tracking company EPFR Global, over USD 3 billion has flown out of emerging markets equity funds during the week ending June 19. Explaining the outflow, the report said "investors expected the outcome of the US Federal Reserve's latest meeting to be relatively benign". However, equity funds attracted net inflows to the tune of USD 4.81 billion during the third week of June. "While investors are distancing themselves from most of the top tier emerging markets such as China, Brazil, Russia and South Africa, they have retained their appetite for the smaller, riskier, faster growing ones," the report noted. The US Federal Reserve's decision to curtail its liquidity measures with a goal of ending…

CONNAUGHT PLACE 5th MOST EXPENSIVE PLACE

Connaught Place, located in the heart of the national capital, has been ranked fifth in the list of world's most expensive office market owing to strong demand amid limited supply, property consultant CBRE said today. Hong Kong (Central) with annual occupancy costs of USD 235.23 per sq ft topped the "most expensive" list for the third consecutive time, followed by London's West End, Beijing's Finance Street and Beijing's Jianguomen. "India continued to feature in the list of World's most expensive office markets, with New Delhi (Connaught Place – CBD) ranking at the 5th position (with an overall occupancy cost of USD 178.96 per sq ft per annum)," CBRE said in a statement today. In its semi-annual Prime Office Occupancy Costs survey, CBRE has tracked occupancy costs for prime office space in 127 markets around the globe. Mumbai's Bandra Kurla Complex (BKC) and Narima Point is at 11th and 26th positions, respectively. Comment…

INDIAN MONEY IN SWISS BANKS DECLINES TO 9000 CRORES

Indians' money in Swiss banks has fallen to a record low level of about Rs 9,000 crore (1.42 billion Swiss francs), as a global clampdown against the famed secrecy wall of Switzerland banking system made it unattractive for their global clients. The total funds held by Indian individuals and entities included 1.34 billion Swiss francs held directly by Indian individuals and entities, and another 77 million Swiss francs through 'fiduciaries' or wealth managers at the end of 2012, as per the latest figures released by the Swiss National Bank (SNB) in Zurich today. The official data, which forms part of SNB's annual report on Swiss banks, further showed that Indians' money there fell by about 35 per cent or Rs 4,900 crore in 2012. This was much steeper than a 9.1 per cent fall in the funds held by entities from across the world in Swiss banks, which also hit an all-time low of 1.4 trillion Swiss francs (USD 1.5 trillion) at the end of 2012.While the Swis…

CHAOS IN INDIAN MARKETS

There is a big chaos in INDIAN MARKETS on 20th June, 2013...Stock Market, Forex market and Bullion Market reacted sharply on the Federal Reserve Chairman Bernanke's comments on withdrawal of Stimulus...SENSEX plunged by 520 points and Indian Currency Rupee recorded Liketime low....



The US Fed's monetary stimulus exit plan spooked markets today with S&P BSE Sensex plunging over 526 points, its biggest single-day fall in nearly two years, on massive offloading of shares by investors across the spectrum, amid the rupee hitting a lifetime low of 59.93. After Fed Chairman Ben Bernanke last night said central bank will likely slow its bond-buying programme this year and end it in 2014, global markets went into a tizzy as USD 85 billion-a-month scheme offered easy money, said traders. The Sensex opened with a sharp downside gap and continued to decline further amid rupee falling like a stone to hit record low of 59.93 against the dollar. Sensex kept falling even as finance ministr…

AN INDIAN HEADS SINGAPORE B SCHOOL

Ravi Kumar, an IIT alumnus, was today appointed dean of the Nanyang Technological University's business school here, with the prestigious institution describing him as an academic heavyweight with a good blend of East-West experience. Singapore's Nanyang Technological University (NTU) appointed Professor Kumar as dean of its Nanyang Business School, a statement by the institution said. Kumar did his mechanical engineering from IIT-Madras in 1974. 61-year-old Kumar comes from the University of Southern California's Marshall Business School where he held several key leadership positions, including that of Vice-Dean for international programmes and Vice-Dean for graduate programmes. His academic experience in the East comes from his two years as Dean of the College of Business at the Korea Advanced Institute of Science and Technology while on a leave of absence from University of Southern California. There he introduced reforms that saw the Korean college b…

KARVY LAUNCHES FIRST HEDGE FUND

Karvy Capital, the asset management arm of financial services provider Karvy Group, today launched first hedge fund named 'systematic edge fund'. According to the company, this fund is an open-ended category-III AIF (alternate investment fund), under the AIF guidelines issued by market regulator Sebi. "The systematic edge fund is a multi-strategy absolute-returns hedge fund and targets delivering positive returns across all equity market scenarios. We hope to garner around Rs 100 crore in next two months from HNIs and select institutions," Hrishikesh Parandekar, Chief Executive and Group Head for Broking, Wealth Management and Asset Management, told reporters here. He claimed that the initial response to the new fund from investors has been sound. In May last year, Sebi had issued regulations for AIFs and opened the way for local hedge funds. Before these regulations, while foreign hedge funds were allowed to invest in domestic equities, domestic firms were not permi…

RUPEE @ RECORD LOWS

The Rupee today sank by a whopping 90 paise to all-time closing low of 58.77 on massive dollar buying by banks and importers as forex markets became jittery ahead of Fed's decision on continuing monetary stimulus. Capital outflows also affected the market sentiment with FIIs offloading shares worth over Rs 750 crore in two days, amid talks of continuing sell-off in debt as well. Since May-end, FIIs have sold around USD 5 billion debt securities. "Forex markets were nervous ahead of the Fed meeting. More than demand and supply, the sentiment was very poor. The decision of whether Fed will taper bond-buying will only be known on Wednesday...Its not right time for RBI to intervene as the trend is bearish," said Mohan Shenoi, President - Group Treasury & Global Markets, Kotak Mahindra Bank. Rupee resumed lower at 58.25 per dollar as against the last closing level of 57.87 per dollar at the Interbank Foreign Exchange Market. It dropped further to a low of …

SMALL CITIES DRIVE GROWTH OF SMART PHONES

About 70 per cent students today own smart phones with a larger user base in smaller cities than the metropolitan cities, according to a survey by software services firm TCS. Nearly six out of 10 post-millennial respondents own a smart phone, but what is remarkable is that the difference in ownership patterns between metros (58.50 per cent) and mini metros (59.36 per cent) is not much with the smaller cities scoring over the larger ones, TCS said in a statement. The survey was conducted on nearly 17,500 high school students across 14 Indian cities, which revealed that smart devices and unprecedented levels of online access are making this generation the most connected yet. This is changing the way they communicate with each other and transforming both their academic and social lives, it said. Samsung emerged as the most popular brand with 48.28 per cent respondents agreeing, while Nokia and Apple followed with 46.46 per cent and 39.56 per cent respondents saying they owned electronics…

RARE HONOUR FOR AN INDIAN

A 29-year-old Indian-origin journalist was today named the editor of The Independent, becoming the first non-white editorial head of a UK national paper. Amol Rajan will replace Chris Blackhurst, becoming Fleet Street's first non-white newspaper editor. He was previously the paper's comment editor. Rajan was born in Kolkata before moving to London as a three-year-old. He grew up in Tooting, south London, and went on to read English literature at Cambridge University, the Guardian reported. After graduating, Rajan worked briefly for the Evening Standard and Channel 5, before moving to the Independent where he rose through the ranks from news reporter. It was also announced this morning that Oly Duff, the executive editor of the Independent, has been made editor of sister title, i. Duff, 29, replaces Stefano Hatfield, who is in charge of overseeing the Evening Standard's London Live TV project. Lisa Markwell has also been appointed editor of The Independent on Sunday, having…

GOOGLE DOMINATES MOBILE ADS

Google captured more than half of the USD 8.8 billion spent on mobile Internet advertising worldwide last year and is expected to boost its share in 2013, a market watchers said today. Google also took in one-third of all digital ad dollars spent globally, according to eMarketer, in its first figures on worldwide digital and mobile advertising at major Internet companies. The eMarketer figures showed Google had USD 4.6 billion in mobile ad revenues, a figure expected to rise to USD 8.85 billion in 2013. That would bring its market share from 52 per cent in 2012 to 56 per cent this year. Facebook, meanwhile, which had no mobile revenue in 2011, took in USD 470 million and is expected to increase mobile revenues by more than 333 per cent to over USD 2 billion in 2013. That would account for a 12.9 per cent share of the global online mobile advertising market, eMarketer said. Among the others in the mobile ad sector is online music group Pandora, which is expected to s…

EGGLESS CHACOLATES FROM MARS

Keeping in mind the number of vegetarians, chocolate and confectionery maker Mars International today launched chocolate brand snickers in an eggless variant. Mars has set-up a new assembly line to manufacture the new vegetarian snickers to cater to the increased demand for eggless chocolates, the company said in a statement. "Our endeavour is to bring quality chocolates that will satisfy the Indian palate. The launch is in line with our business objective of growing our snickers range. With snickers green dot we wish to cater to our growing vegetarian consumers," Mars International MD for chocolate business MV Natrajan said. Snickers vegetarian chocolate will be available in two pack sizes –- 25gms and 54gms priced at Rs 15 and Rs 30, respectively. The non-vegetarian stock keeping units will however continue to be available in the market as well, the company added.

FACE LAUNCHES "HASHTAG"

Social networking giant Facebook is now adopting the "hashtag," a distinctive feature of rival Twitter, to help members keep track of popular topics being discussed on the social network. "Starting today, hashtags will be clickable on Facebook. Similar to other services like Instagram, Twitter, Tumblr, or Pinterest, hashtags on Facebook allow you to add context to a post or indicate that it is part of a larger discussion. "When you click on a hashtag in Facebook, you'll see a feed of what other people and pages are saying about that event or topic," Facebook said in a statement. Hashtags have helped social networking users to participate in online conversations as real-time events like political debates and sports events unfold. It has also helped advertisers reach out to a particular set of audience.
"Hashtags on Facebook are just a first step. We'll be rolling out more features in the coming weeks and months that make it even …

NORMS MADE SIMPLE FOR FORIEGN INVESTORS

To attract more capital inflows, a panel appointed by Sebi today suggested a slew of measures including simplified registration process for foreign investors and classifying them into a single category. Besides, the committee headed by former Cabinet Secretary K M Chandrasekhar, also suggested that Know Your Client (KYC) rules should be based on the risk profile of investors. The recommendations from the panel come at a time when the government is exploring ways to lure more foreign capital into the country and strengthen the falling rupee. According to the committee, single overseas investments of more than 10 per cent in a company should be considered as Foreign Direct Investment while those less than 10 per cent should be classified as foreign portfolio investment. Existing FIIs, Sub Accounts and Qualified Foreign Investors (QFI) should be merged into a new investor class called 'Foreign Portfolio Investor' (FPI). "In a significant move to make the p…

SEBI WILL HAVE ACCESS TO CALL RECORDS

Capital market regulator SEBI 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 …

CONSUMPTION IN INDIA ON INCREASE

Despite rising short-term economic uncertainty and GDP projections cut to 5-6 per cent, the consumption in India is expected to touch USD 3,600 billion in 2020 from USD 900 billion in 2010, says the CII and Boston Consulting Group (BCG) report on Retail and FMCG. "Organised retail in India is at an inflection point. There is healthy revenue growth of 25 per cent CAGR over the last 5 years, however, organised retail contributes to less than 10 per cent of overall sales across multiple categories". "This gap in sales forms the biggest growth opportunity for organised retail, especially with consumption expected to touch USD 3.6 trillion by 2020 from the 2010 figure of USD 900 billion," the report titled 'Winning with Uncertainty' by CII and BCG said. Hence, it is imperative that FMCG and retail organisations balance caution due to short-term uncertainty with investment required to drive long-term growth, it said. "Businesses are capital…

SLEEP COST 293 MILLION DOLLARS

Not a matter to sleep over! A German bank employee fell asleep on the keyboard of his computer and accidentally transfered USD 293 million which lead to the sacking of a colleague, a court has heard. A German labour court ruled yesterday that a bank supervisor was unfairly sacked for missing a multi-million- euro error by a colleague who fell asleep during a financial transaction. The clerk was transferring 64.20 euros when he dozed off with his finger on the keyboard, resulting in a transfer of 222,222,222.22 euros (USD 293 million). His supervisor was fired for allegedly failing to check the transaction. But judges in the state of Hesse said she should have only been reprimanded. The incident took place in April last year when the tired bank clerk fell asleep at his computer with his finger pressed on the number two key, the BBC reported. His 48-year-old supervisor, an employee at the bank since 1986, told the court she had not noticed the error and approved the t…

SLEEP COST 293 MILLION DOLLARS

Not a matter to sleep over! A German bank employee fell asleep on the keyboard of his computer and accidentally transfered USD 293 million which lead to the sacking of a colleague, a court has heard. A German labour court ruled yesterday that a bank supervisor was unfairly sacked for missing a multi-million- euro error by a colleague who fell asleep during a financial transaction. The clerk was transferring 64.20 euros when he dozed off with his finger on the keyboard, resulting in a transfer of 222,222,222.22 euros (USD 293 million). His supervisor was fired for allegedly failing to check the transaction. But judges in the state of Hesse said she should have only been reprimanded. The incident took place in April last year when the tired bank clerk fell asleep at his computer with his finger pressed on the number two key, the BBC reported. His 48-year-old supervisor, an employee at the bank since 1986, told the court she had not noticed the error and approved the t…

ONLINE ADS PENETRATES RURAL MARKETS

Black 'Murrah' buffalo with short and tightly curled horns for Rs 80,000 and herd of 10 'Holstein Friesians' cows at Rs 6 lakh on the click of the mouse -- the Indian online classifieds are moving beyond usual items such as mobiles, cars and real estate with increasing internet penetration in smaller towns. Online classifieds players Quikr and Olx are finding good traction for their business from semi urban and rural areas in states like West Bengal, Tamil Nadu, Karnataka, Maharashtra, Orissa, Assam and Uttar Pradesh.
"While the main metros continue to be top contributors to our site, the rapidly increasing internet usage in Tier 2 and Tier 3 towns has also boosted our growth tremendously...Today Tier 2 and 3 cities account for over 50 per cent of our traffic," Quikr CEO Pranay Chulet told PTI.
Olx, which has a majority of users mainly from metros, is also finding that small town traffic on its site is growing. "We do notice positive tre…

CONSUMER CONFIDENCE IMPROVES

Indian consumers' confidence level rose in the month of May owing to improved spending behaviour coupled with easing inflation, says a study by financial services provider BluFin. BluFin's Consumer Confidence Index (CCI) rose to 41.4 points in May, an increase of 3.4 points since the beginning of the year. The index is a key 'aggregate' indicator that assesses the pulse of urban Indian consumers with regard to the economy, spending behaviour and employment. The index reflects pessimism at below 50 score and optimism above that. The two key components of the CCI indicated improvement in the consumer sentiment.
A sub index, which rates inflation sentiment, rose from 23.9 points in January to 26.8 points in May, while the spending sentiment improved from 28.3 points to 30.5 points in the same period.
However, pessimistic views on employment, continue to be a small drag on the the consumer confidence index. The employment sentiment declined to 50.2 p…

OPEN OFFERS WORTH 7000 CRORES IN APRIL

Public shareholders received open offers worth a whopping Rs 7,003 crore by listed companies in April -- the second highest level in the year so far. A total of 10 open offers for shares worth Rs 7,003 crore were made by the companies in April to buy shares from public shareholders, as per the latest data compiled by the market regulator Sebi. This is the second highest value of offers made in a month since January 2013 when companies had made 11 open offers for Rs 8,308 crore. Besides, the amount is significantly higher compared to the four offers amounting to Rs 135 crore in March, this year. According to Sebi regulations, pursuant to substantial acquisition of shares or change in control in a listed firm, an acquirer has to make an offer to the public shareholders, known as open offers, so as to give them a fair opportunity to exit the company if they so wish to. Open offers are made with the objective of change in control of management, consolidation of holdings …

GOOD IDEA

A Dubai-based NRI doctor-cum- entrepreneur has initiated a campaign in his native state to promote preservation of water using a cheap rain harvesting device made by a local Keralite, amid acute drinking water crisis in Kerala during summers. Azad Moopen, who heads the DM Healthcare, a leading healthcare conglomerate in the Middle East, believes that the current water shortage in Kerala can easily be solved even if a small section of the population preserves the rain water that goes into the Arabian Sea due to the peculiar slanting topography of the state, the Khaleej Times report said. Moopen decided to test it out in his home village of Kalpakanchery, where the wells and ponds dry by January every year. People in the village have been sourcing water from far off places in tankers paying Rs 600 for 2,000 litres. Moopen found a cheaper solution in an indigenous rain harvesting device, developed by Perumalparampil Jaleel, that seeks to harvest rain water from rooftops.…

QATAR HAS HIGHEST DENSITY OF MILLIONAIRES

Qatar has the highest density of millionaires in the world, with 14.3 per cent of the oil-rich Gulf nation's population holding private wealth of at least USD 1 million, according to a report. The figure shows 143 out of every 1,000 households in Qatar holding private wealth of at least USD 1 million, much higher than the global average. Kuwait ranks third with 11.5 per cent, while Bahrain (4.9 per cent) and the UAE (4.0 per cent) rank seventh and ninth, respectively, the Boston Consulting Group's (BCG) 13th annual global wealth management report says. Wealth in the Middle East and Africa (MEA) saw near double-digit growth at 9.1 per cent in 2012, the study says. The report asserts that private wealth in MEA will grow to an estimated USD 6.5 trillion by the end of 2017, with a projected CAGR (Compounded Annual Growth rate) of 6.2 per cent. This increase will largely be driven by new wealth creation linked to strong GDP expansion in oil-rich countries. "…

ASSOTECH PLAN SERVICE APPTS IN SHIRDI

Assotech Realty today said it will invest about Rs 100 crore to develop a service apartment project at Shirdi in Maharashtra. The company would develop 125 serviced apartments in the 2.5-acre project 'Sandal Suites'. In a statement, Assotech Realty said it has launched premier service residences at Shirdi "at an approximate cost of Rs 100 crore." These apartment would cater to the needs of pilgrims travelling to Shirdi and expecting comfort and luxury at affordable cost. Just walking distance from Shirdi Shrine, the project will have a small Sai Temple and Satsang Hall along with Pooja area and meditation centres, it added. "This is an opportunity to not only own a home in the spiritual town but also make it earn valuable income from the asset so created. The investment is meant to bring recurring returns to the tune of 18–20 per cent Y-o-Y basis with expected daily rental between 5-6 thousand approximately," Assotech Realty Managing Director Neeraj Gulati …

ECONOMIC GROWTH SLUGGISH

Economic growth in emerging market economies remained sluggish in May, but India expanded at a better rate than the three BRIC peers China, Russia and Brazil, an HSBC survey said today. During May, the HSBC composite index for India, which maps both manufacturing and services sectors, stood at 52, whereas for China it was 50.9, Brazil (51.2) and Russia (51).
An index measure of above 50 indicates expansion.
"India has been the bright spot among the largest EM countries, while a combination of external headwinds and domestic issues has led to weakening growth in Brazil, China and Russia," Andre Loes HSBC Chief Economist, LATAM said. Meanwhile, the HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI surveys, was unchanged from April at 51.4 in May, indicating a muted rise in global emerging market output.
Growth slowed in China, Brazil and Russia, but accelerated slightly in India on the back of a stronger service sector performanc…

FUND RISING THROUGH PRIMARY MARKET DIPS

Fund-raising by Indian companies through the primary market route plunged by 90 per cent to Rs 134 crore in April, over the previous month, owing to volatility in equities. As per latest data available with the market regulator Securities and Exchange Board of India (Sebi), firms have garnered a total of Rs 134 crore in April, lower than Rs 1,368 crore raked in the preceding month. In April, the funds were raised through debt market. However, companies had not tapped the equity market route. During March, a total of Rs 1,072 crore was garnered through equities, while Rs 296 crore were mopped-up via debt segment. Market experts said fund-raising through primary market has slowed down in April due to volatility in equities. "Fund raising through primary market has tumbled in the month of April because of volatility in the market conditions. Another reason for decline could be the huge number of share-sale offered by companies to comply with Sebi's minimum pub…

UNUSUAL TRADING PRACTICES ATTRACT PENALTY

Stock exchanges today warned brokers and traders of strong penal action if they fail to contain unusual or abnormal trading activities, even after issuance of "caution letters" to them. The bourses had started the process of issuing caution letters last year, wherein the brokers and traders were alerted about abnormal or unusual trading activities in the account of their clients. The latest warning comes in the wake of recurrence of such activities even by those brokers who have been issued such caution letters. "The trading members are once again advised to take adequate measures to ensure that similar (abnormal and unusual) trading activity is not continued by/through them post issuance of observation/caution letters by exchange," BSE and National Stock Exchange said in separate circulars. "Continuance of unusual/abnormal activity by the member/clients may attract appropriate disciplinary/regulatory action against the trading member/ client…

IMPORT CURBS FUEL GREY MARKET

World Gold Council today said that curbing gold import may have short-term benefit in containing demand, but cautioned that consumers appetite for yellow metal will ultimately be fulfilled by the unauthorised grey market. It suggested that the government should treat gold as strategic assets, while advocating monetisation of country's huge gold stock to support economic growth. "We understand that part of the rationale for seeking to curb gold imports is to reduce the current account deficit and we recognise that a large current account deficit is unsustainable and needs to be checked," WGC India Managing Director Somasundaram PR said in a statement. However, he said that there are number of factors which influence the current account deficit and gold is one factor. Noting that people buy gold as a long term investment to protect their wealth, he said: "Addressing this demand by curbing supply may have a short term benefit but this demand will be m…

BIZ CLIMATE IMPROVES IN MAY

Business climate in the country improved last month buoyed by rising output of intermediate goods as well as tourist earnings and the government's reform initiatives, according to a report. The 'BluFin Business Cycle Indicator (BCI)', which reflects various macroeconomic trends on a monthly basis, stood at 166.3 points in May, 5.8 per cent higher compared to the same month last year, suggesting that the Indian economy is growing at a faster rate than the previous year. The year-on-year growth rate noted in the previous month was at 5.1 per cent.
Historically, the BCI has grown by an average of seven per cent year-on-year, financial information provider BluFin said today. Moreover, BCI has been indicating a reversal in the economic slowdown since July 2012 and expects that Indian economy would grow at 5.3 per cent in the first quarter of financial year 2013-14. "The growth has been aided by improved production of intermediate commodities like pig ir…

MANUFACTURING ACTIVITIES DIP

) Manufacturing sector output fell in the month of May, its first decline since March 2009, as order flow weakened and power outages affected the sector, a survey said today. As per HSBC Purchasing Managers' Index, the economic activities in manufacturing sector continued to remain sluggish last month with output falling for the first time in about four years.
The index, an indicator measuring changes in output, new orders, employment, supplier delivery times and stocks of purchases, fell from 51.0 in April to 50.1 and hit a 50-month low.
"Economic activity in the manufacturing sector slowed further in May as output contracted in response to softer domestic orders. In addition, power outages hampered output and led to a jump in backlogs of work as businesses struggled to meet orders," said Leif Eskesen, Chief Economist for India & ASEAN at HSBC.
The rise in input costs was, nonetheless, slight and the slowest in the current 50-month inflationary period. However, grow…

SBI, ICICI, HDFC DEBT RATING UNDER WATCH

Global credit rating agency Moody's today said it has placed some debt ratings of 11 banks, including SBI, ICICI, HDFC Bank and Axis Bank, under review because of the updating of its methodology. The subordinated and junior subordinated debt ratings of these banks have been placed under review in the wake of the methodology update, said Moody's Investors Services. Other banks are Bank of Baroda, Bank of India, Canara Bank, IDBI Bank, Indian Overseas Bank, Syndicate Bank and Union Bank of India. "The review takes place in the context of a methodology update that has changed the way Moody's looks at the probability of support, which has led to several subdebt ratings in multiple banking systems being reviewed simultaneously," the rating agency said. The agency also noted debts of those banks were placed under review that had benefited from an uplift linked to Moody's prior assessment of systemic support in the country. However, the agency noted that the reviews…

MF INVESTMENTS IN SOFTWARE DOWN

The mutual fund investments in software stocks fell to Rs 16,557 crore in April, the lowest in four months, as heavyweight Infosys disappointed with its financial results and concerns related to the US immigration bill weighed down on the sector. The April figure also marks the first monthly decline in mutual funds allocation to the software stocks since the beginning of calendar year 2013. According to latest data available with the market regulator Sebi, mutual funds deployed 8.95 per cent of their total equity assets under management (AUM) of Rs 1.85 lakh crore in software sector in April. This was the lowest since December 2012, when equity funds had invested Rs 16,467 crore (7.98 per cent of total funds) in software sector. In March, MFs held software stocks worth Rs 19,196 crore, which was 10.73 per cent of their total AUM. This was the highest level in 44 months. Among other major sectors, pharmaceuticals' exposure was Rs 14,352 crore or 7.76 per cent of AUM, consumer non-d…

DIVIDEND BONANZA

Stock markets may have turned topsy-turvy, but shareholders of the 30 Sensex stocks are in for over Rs 36,000-crore bonanza in terms of dividend payouts by these companies. While promoters of these top blue-chip companies will get around Rs 15,500 crore as their share in this dividend bonanza, the non-promoters, including retail investors and institutions, would also get over Rs 20,000 crore. These dividends have been approved by the boards of the respective companies for the fiscal year 2012-13 and would be paid to the shareholders in the coming weeks. They include special or interim dividend payments in some cases. Companies like ITC, ICICI Bank, HDFC and L&T have no promoter entities and therefore the dividend payouts by these companies would entirely go to non-promoter shareholders. Leading the dividend charts, ITC is expected to pay more than Rs 4,000 crore, followed by RIL (over Rs 3,000 crore), SBI (nearly Rs 2,900 crore), Coal India (Rs 2,700 crore), TCS (Rs 2,500 crore) a…

NEW INDICES IN FORIEGN LAND

Premier stock exchange BSE and S&P Dow Jones, which are in joint venture S&P BSE Sensex, plan to launch more indices in the country and abroad. BSE has joined hands with S&P Dow Jones Indices for the joint venture 'S&P BSE Sensex'. Under the collaboration, the S&P brand would be used for Sensex and other indices such as BSE 200 and BSE 100. In response to a query on whether the JV would come out with new stock indices in India and abroad, BSE Managing Director and CEO Ashishkumar Chauhan replied in the affirmative. "Yes of course. Not only new indices but how do we market the current indices well in India and abroad," he said recently. S&P Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies is the world's largest, global resource for index-based concepts, data and research. Recently, the joint venture had launched the S&P BSE 500 Shariah index, comprising the largest 500 companies in the Indian index. This new index has be…

THIS MAY NOT THAT MUCH WORST

It was not exactly "Sell in May and go away" for the Indian stocks during May 2013, as there was no broad-based selling in the market, although the gains in the benchmark Sensex were restricted to just 25 points. While macroeconomic trends and weak global cues pulled the markets down on many occasions during the month, some kind of cushion came from better corporate earnings and continuing foreign fund flows. As a result, domestic markets this year managed to buck the trend of a downfall for three consecutive years in the month of May. The Sensex gained 24.53 points to 19,760.30 in May 2013 compared to over 6 per cent drop in May 2012. In 2010 and 2011, Sensex fell around 2.5 per cent in May. "Domestic markets saw positive trend last month owing to strong global markets. Also, foreign fund inflows supported the positive domestic market trend," said Ashika Stock Brokers, Research Head, Paras Bothra. Overseas investors have poured in over Rs 22,000 crore (about USD 4…