Equities gain despite weak global cues, banks stocks up

Apr 3, 2018 0

Mumbai– Despite volatility in the global markets, the key Indian equity indices closed Tuesday’s rangebound trade session with appreciable gains led by healthy buying in banking, auto, oil and gas, and healthcare stocks.

According to market observers, banking stocks got a fillip after the Reserve Bank of India (RBI) on Monday allowed banks to spread bond losses over four quarters, which also led to an upsurge in the benchmark indices during the closing hour of trade.

On Tuseday, the wider Nifty50 of the National Stock Exchange (NSE) edged higher by 33.20 points or 0.33 per cent to close at 10,245 points.

The barometer 30-scrip Sensitive index (Sensex) of the BSE closed at 33,370.63 points — up 115.27 points or 0.35 per cent from its previous session’s close.

The BSE market breadth was bullish with 1,848 advances and 798 declines.

In terms of the broader markets, the S&P BSE mid-cap index was up 0.92 points and the small-cap index up 1.35 points.

“Markets moved up further on Tuesday to end with modest gains for the second consecutive session. The Nifty in the process closed above the immediate resistances of 10,227 despite weak global cues,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.

“Major Asian markets closed on a negative note. European indices like FTSE 100, DAX and CAC 40 traded in the red,” he added.

On the currency front, the Indian rupee strengthened by around 16 paise to close at 65.02 against the US dollar from Wednesday’s close at 65.18.

In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 376.51 crore, while the domestic institutional investors purchased stocks worth Rs 479.18 crore.

Vinod Nair, Head of Research, Geojit Financial Services, said: “Market traded rangebound throughout the day due to volatility in the global market. But towards the close, pace picked-up supported by moderation in yield and growth in core sector.”

Official data released post market hours on Monday showed that the Index of Eight Core Industries (ECI) — which represents the output of major sectors like coal, steel, cement and electricity — rose by 5.3 per cent last month compared to an increase of 6.1 per cent in January.

However, on an year-on-year basis, the ECI showed an uptrend. It had inched up by 0.6 per cent in the corresponding month of 2017.

“Yield declined amid central bank allowing the banks to spread their bond trading losses which gave a positive sentiment to banking stocks. On the other hand, investors are gradually shifting focus to upcoming Q4 (fourth quarter) results and RBI policy outcome which will dictate the market outlook in the near term,” said Nair.

Sector-wise, the S&P BSE banking index rose by 293.63 points, followed by auto index by 208.09 points and oil and gas index by 90.98 points.

On the other hand, the S&P BSE consumer durables index fell by 135.26 points, IT index by 29.60 points and Teck (media, entertainment and technology) index by 5.31 points.

Major Sensex gainers on Tuesday were: ICICI Bank, up 2.94 per cent at Rs 269.60; Mahindra and Mahindra, up 2.92 per cent at Rs 769.40; Tata Motors (DVR), up 2.22 per cent at Rs 193.40; Yes Bank, up 2.11 per cent at Rs 312.65; and Power Grid, up 1.90 per cent at Rs 198.40.

The Sensex losers were: Wipro, down 2.02 per cent at Rs 283.90; ONGC, down 1.28 per cent at Rs 177.70; Adani Ports, down 0.86 per cent at Rs 366.80; HDFC Bank, down 0.74 per cent at Rs 1,916.10; and Bajaj Auto, down 0.60 per cent at Rs 2,791.75. (IANS)

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Positive global cues, healthy auto sales data lift equity indices

Apr 2, 2018 0

Mumbai– Key Indian equity indices closed the first day of the 2018-19 financial year with appreciable gains as broadly positive global peers, along with robust automobile sales data, lifted investors’ risk-taking appetite.

According to market observers, healthy buying was witnessed in auto, capital goods and healthcare stocks.

On a closing basis, the wider Nifty50 of the National Stock Exchange (NSE) rose by 98.10 points, or 0.97 per cent, to 10,211.80 points.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at 33,255.36 points — up 286.68 points, or 0.87 per cent, from its previous session’s close.

The BSE market breadth was bullish with 2,101 advances and 537 declines.

In terms of the broader markets, the S&P BSE mid-cap index edged higher by 1.40 per cent and the small-cap index by 2.35 per cent.

“Markets ended sharply higher on Monday after the correction seen in the previous trading session. It was the first trading session of the near month April derivative series and also the first trading session of the financial year 2018-19,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.

“Markets moved higher on the back of positive Asian equity markets and beginning of new derivatives series/new fiscal year,” he added.

In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 689.75 crore, while the domestic institutional investors purchased stocks worth Rs 413.16 crore.

Vinod Nair, Head of Research, Geojit Financial Services, said: “Markets rallied on account of stellar auto sales and value buying of pharma stocks influenced by US FDA (Food and Drug Administration) approvals. US stock futures dropped and other Asian markets reversed an early advance, where volume was low as many markets remained closed.

“The markets are expected to remain choppy and support levels are likely to be tested globally due to looming uncertainty. Back home, investors are focusing on upcoming RBI (Reserve Bank of India) policy while consensus shows status quo on key rates due to declining yield and inflation,” he added.

Sector-wise, the S&P BSE auto index augmented by 515.45 points, followed by capital goods index by 375.74 points and healthcare index by 326.36 points.

On the other hand, the S&P BSE banking indiex fell by 99.57 points and the oil and gas index by 18.75 points.

Major Sensex gainers on Monday were: Kotak Bank, up 4.65 per cent at Rs 1,097.40; Adani Ports, up 4.33 per cent at Rs 370; Tata Motors, up 3.47 per cent at Rs 338.80; Wipro, up 2.95 per cent at Rs 289.75; and Tata Motors (DVR), up 2.88 per cent at Rs 189.20.

The Sensex losers were: ICICI Bank, down 5.93 per cent at Rs 261.90; Axis Bank, down 2.20 per cent at Rs 498.20; Coal India, down 2.01 per cent at Rs 277.80; State Bank of India, down 1.52 per cent at Rs 246.30; and Bharti Airtel, down 1.12 per cent at Rs 394.45. (IANS)

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Huawei posts 28% rise in 2017 net profit, to hike R&D investments

Mar 30, 2018 0

New Delhi– Eyeing the growth-driven Cloud, Internet of Things (IoT) and 5G markets, Shenzhen-based Huawei on Friday reported net profit of 47.5 billion yuan ($7.3 billion) for 2017, an increase of 28.1 per cent year-on-year, and registered revenue of 603.6 billion yuan ($92.5 billion) — a rise of 15.7 per cent over 2016.

In 2017, Huawei’s annual investment in research and development reached 89.7 billion yuan ($13.8 billion), up 17.4 per cent compared with 2016.

The company’s total R&D spend over the past decade has exceeded 394 billion yuan ($60.4 billion).

“We’re on a new journey. Over the next 10 years, Huawei will continue to increase investment in technological innovation, investing more than $10 billion back into R&D every year,” Ken Hu, Huawei’s Rotating Chairman, said in a statement.

“We will actively pursue open collaboration, attract and cultivate top talent, and step up efforts in exploratory research. We want to better enable all industries to go digital and intelligent,” Hu added.

Focusing on helping global carriers maximise the potential of their existing network assets and seize new opportunities in video, Internet of Things (IoT) and Cloud markets, Huawei’s Carrier business group generated 297.8 billion yuan ($45.7 billion) in revenue, an increase of 2.5 per cent year-on-year.

Huawei’s enterprise business group enhanced innovations in cloud, big data, campus networks, data centres, IoT and other domains.

In 2017, the enterprise business generated 54.9 billion yuan ($8.4 billion) in revenue, an increase of 35.1 per cent compared with 2016.

Huawei set up a Cloud Business Unit in 2017, which launched 99 cloud services across 14 major categories, and over 50 solutions.

The company also unveiled the Enterprise Intelligence (EI) platform and developed over 2,000 cloud service partners.

“As we look to 2018, emerging technologies like IoT, cloud computing, Artificial Intelligence (AI) and 5G will soon see large-scale application,” Hu added. (IANS)

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Indian banks’ credibility at all-time low, says Congress

Mar 30, 2018 0

Bengaluru– With several fraud cases worth thousands of crores of rupees surfacing in Indian banks, the banking sector gone into a “deep crisis” with credibility at all time low due to failure of regulatory oversight, Congress said on Friday.

“Unimaginable sums of thousands of crores have been looted by select few by faking letters of undertaking (LoUs), not paying loans and fraudulent means under a complicit banking system,” party spokesman Randeep Singh Surjewala told media persons here.

About Rs 61,000 crores was swindled through the 11 banking fraud cases that were uncovered over the past few months, he said.

“India’s banking sector is in deep crisis due to the undermining of integrity of regulatory institutions and the failure of regulatory oversight.”

Accusing Prime Minister Narendra Modi of being on an indefinite vow of silence, Surjewala said under his “direct watch”, the duping, loot, cheating and swindling of banks were taking place.

“‘A scam a day’ and ‘Let the looters run away’ were the slogans of the Modi government.

“People’s money was allowed to be brazenly looted by the likes of (liquor baron) Vijay Mallya, (former Indian Premier League Chairman) Lalit Modi and (Punjab National Bank fraud accused diamantaire) Nirav Modi, who were all allowed to flee the country,” the Congress leader said.

As a result of the scams, the gross non-performing assets (NPAs) of the banking sector in the country have tripled, he alleged, adding that there isn’t any bank in the country that is unaffected by the scams.

Attacking the Modi government, he said it has been in deep slumber and has also refused to acknowledge publicly the “looting and duping” of common man’s money by Nirav Modi and his uncle Mehul Choksi through Ponzi gold schemes.

Even as the frauds were piling up, the PM and Finance Minister Arun Jaitley were maintaining their deafening silence, Surjewala added. (IANS)

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India’s Forex reserves rise by $1.19 bn

Mar 30, 2018 0

Mumbai– India’s foreign exchange (Forex) reserves increased by $1.19 billion as on March 23, official data showed on Friday.

According to the Reserve Bank of India’s (RBI) weekly statistical supplement, the overall Forex reserves rose to $422.53 billion from $421.33 billion reported for the week ended March 16.

India’s Forex reserves comprise of foreign currency assets (FCAs), gold reserves, special drawing rights (SDRs) and the RBI’s position with the International Monetary Fund (IMF).

Segment-wise, FCAs — the largest component of the Forex reserves — increased by $1.13 billion to $397.29 billion during the week under review.

Besides the US dollar, FCAs consist of nearly 20-30 per cent of major global currencies. It also includes investments in US Treasury bonds, bonds of other selected governments and deposits with foreign central and commercial banks.

In addition, the country’s gold reserves value rose by $52.7 million to $21.61 billion.

Similarly, the SDRs value increased. It inched up by $3 million to $1.54 billion, while the country’s reserve position with the IMF edged up by $4 million to $2.08 billion. (IANS)

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Telcos’ 2016-17 pre-tax losses broaden to Rs 38,153 cr

Mar 29, 2018 0

New Delhi–  Pre-tax losses of telecom companies have broadened to Rs 38,153 crore during financial year 2016-17 from Rs 1,699 crore in the previous fiscal, the Parliament was informed on Wednesday.

“Based on audited/unaudited information submitted by telecom service sector companies to TRAI (Telecom Regulatory Authority of India), the profit before tax (PBT) for the telecom service sector companies has decreased from Rs (-) 1,699 crore for the financial year 2015-16 to Rs (-) 38,153 crore for the financial year 2016-17,” Communications Minister Manoj Sinha said in a written reply to the Lok Sabha.

He said for the financial year 2016-17, 24 out of a total of 50 companies have shown losses before tax.

“Government ensures healthy competition in telecom sector. Recently, TRAI has reiterated the regulatory principles of non-predatory, non discrimination and transparency in tariff offers vide Telecommunication Tariff (63rd Amendment) Order, 2018 on February 16, 2018,” Sinha said.

According to data provided by Sinha, losses of MTNL for 2016-17 stood at Rs 2,941.08 crore and that of BSNL at Rs 4,793 crore. (IANS)

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HCAH looks at Rs 1,000 crore revenue by 2020

Mar 29, 2018 0

Kolkata–  HealthCare atHome (HCAH), backed by Dabur promoters Burman family, is looking at a Rs 1,000 crore revenue by 2020 with increasing demand for home healthcare services in India.

“Our revenue has grown by 70 times since 2014 till date. We started in NCR region and have now expanded our services in Punjab, Jaipur, Bengaluru, Hyderabad and many other cities and towns. We are targeting about Rs 1,000 revenue by 2020,” company’s co-founder and CEO Vivek Srivastava said.

The company has witnessed a significant growth in ICU space. Since inception in September 2012, it has done over 25,000 oncology or immunology procedures and more than 20,000 ICU days at home and served over 4 lakh patients across 40 cities.

“For our hospital at home services business, about 40 per cent of it comes from the ICU space and while in terms of total revenue, the ICU services contribute about 20 per cent. Our integrated pharma business which has also grown rapidly contributes a sizeable share in total revenue,” Srivastava said.

Currently, the company has been doing about 500 oncology procedures a month and it is expected to grow manifold, he said.

Depending on the services, the prices vary from as low as Rs 500 for injection administration, wound dressing and others to Rs 20,000-Rs 25,000 a day for high-end services including ICU care, he said.

Entering into the Kolkata market, the home healthcare service provided is looking to make the metropolis a base to cater to other eastern states like Bihar, Jharkhand and northeastern states, he added. (IANS)

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Positive global cues, banks stocks push equity indices higher

Mar 27, 2018 0

Mumbai– Extending gains for the second consecutive session, the key Indian equity indices on Tuesday closed in the green as positive global cues, along with healthy buying in banking and metals stocks, gave a boost to investors’ risk-taking appetite.

According to market observers, positive global markets on the back of easing trade war fears among major world economies, coupled with the Central government’s plan to reduce borrowing, uplifted investors’ sentiments.

However, caution ahead of March derivatives expiry on Wednesday added to the initial volatility in the key indices.

On a closing basis, the Nifty50 of the National Stock Exchange (NSE) edged higher by 53.50 points or 0.53 per cent to 10,184.15 points.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at 33,174.39 points — up 107.98 points or 0.33 per cent from the previous session’s close.

The BSE market breadth was bullish with 1,852 advances and 806 declines.

In terms of the broader markets, the S&P BSE mid-cap index rose by 1.06 per cent and the small-cap index by 1.36 per cent.

“Markets ended with modest gains on Tuesday. The gains came on the back of positive Asian and European equity markets. Sentiments turned positive on easing trade war fears between the US and China,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.

Vinod Nair, Head of Research, Geojit Financial Services, said: “Cut in government’s borrowing plan and ease in global trade tensions lifted the market to float above the 200 DMA. Banks led from the front while bond yield shred by 31 basis points to two months low at 7.31, supporting investors’ sentiment.”

“Mid and small-cap outperformed main indices while caution ahead of F&O (futures and options) expiry limited further upside,” he added.

On Monday, the Central government said it will borrow only Rs 2.88 lakh crore through its benchmark bond scheme in the first half of FY19 — 47.5 per cent of the total budgeted amount — as against 60-65 per cent share in this period in previous years.

The Indian rupee on Tuesday closed almost flat at 64.98 against the US dollar from its previous close at 64.87.

In terms of investments, provisional data with the exchanges showed that foreign institutional investors purchased scrips worth Rs 1,063.12 crore and the domestic institutional investors worth Rs 2,172.91 crore.

All the sectors — barring the S&P BSE telecom index, which fell by 18.92 points — closed with gains.

The S&P BSE banking index surged by 253.46 points, followed by metal index by 224.73 points and capital goods index by 164.15 points.

Major Sensex gainers on Tuesday were: State Bank of India, up 3.04 per cent at Rs 253.85; IndusInd Bank, up 1.56 per cent at Rs 1,787.90; Tata Steel, up 1.30 per cent at Rs 590.05; Asian Paints, up 1.16 per cent at Rs 1,131.75; and Tata Consultancy Services, up 1.02 per cent at Rs 2,841.85.

The Sensex losers were: Bharti Airtel, down 2.42 per cent at Rs 411.45; Bajaj Auto, down 1.27 per cent at Rs 2,803.20; HDFC, down 0.58 per cent at Rs 1,821.95; Wipro, down 0.49 per cent at Rs 272.55; and Hero MotoCorp, down 0.44 per cent at Rs 3,465.85. (IANS)

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Banks stocks, positive European markets lift equities

Mar 26, 2018 0

Mumbai– Positive cues from the European markets, along with healthy buying in banking, consumer durables, auto and metal stocks, pushed the key Indian equity indices to provisionally close on a higher note on Monday.

The Nifty50 of the National Stock Exchange (NSE) reclaimed the 10,100-mark. It edged higher by 132.60 points or 1.33 per cent to provisionally close at 10,130.65 points (at 3.30 p.m).

The barometer 30-scrip Sensitive Index (Sensex) of the Bombay Stock Exchange (BSE) reclaimed the 33,000-mark and closed at 33,066.41 points — up 469.87 points or 1.44 per cent from the previous session’s close.

The Sensex touched a high of 33,115.41 points and a low of 32,515.17 during the intra-day trade.

However, the BSE market breadth was bearish with 1,552 declines and 1,198 advances.

On Friday, the equity indices receded to their five-month low levels as investors got spooked after major world economies imposed new trade protectionist measures.

The Nifty50 closed below the 10,000 points level, declining by 116.70 points or 1.15 per cent at 9,998.05 points, while the Sensex closed at 32,596.54 points — down 409.73 points or 1.24 per cent. (IANS)

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Global cues, short-covering lift equities; Nifty50 reclaims 10k mark

Mar 26, 2018 0

Mumbai– Positive cues from the European markets, along with healthy buying in banking, consumer durables, auto and metal stocks, pushed the key Indian equity indices higher on Monday.

According to market observers, positive global cues on the prospects of easing trade war fears, along with short-covering ahead of March derivatives expiry, added to the upward trajectory of the key indices.

The Nifty50 of the National Stock Exchange (NSE) reclaimed the 10,100 mark. On a closing basis, the index edged higher by 132.60 points or 1.33 per cent to 10,130.65 points.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE reclaimed the 33,000 mark and closed at 33,066.41 points — up 469.87 points or 1.44 per cent from the previous session’s close.

However, the BSE market breadth was bearish with 1,573 declines and 1,184 advances.

“Markets ended sharply higher on Monday due to a late surge. The gains came on the back of positive Asian and European equity markets,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.

“Broad market indices like the BSE mid-cap and small-cap indices gained less, thereby underperforming the main indices,” he said.

In terms of the broader markets, the S&P BSE mid cap index rose by 1.19 per cent and the small cap index by 0.73 per cent.

According to Gaurav Jain, Director, Hem Securities, short-covering ahead of March derivatives expiry on Wednesday saw the Nifty50 reclaiming its crucial 10,000 mark on Monday.

“Sentiments changed after US stock futures led global shares higher on reports that the US and China have quietly started negotiations to improve US access to Chinese markets eased fears of a trade war between the two economic giants,” Jain told IANS.

“Today’s gains were led by buying witnessed in banking stocks, especially PSU banks and consumer durables,” he added.

Sector-wise, the S&P BSE banking index surged by 608.79 points, followed by consumer durables index by 485.67 points and metal index by 297.10 points.

On the other hand, the S&P BSE IT index declined by 82.24 points, oil and gas index by 45.54 points and Teck (technology, media and entertainment) index by 4.95 points.

On the currency front, the Indian rupee strengthened by 14 paise to 64.87 against the US dollar from its previous close at 65.01.

In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 741.19 crore, while the domestic institutional investors purchased stocks worth Rs 2,017.95 crore.

Major Sensex gainers on Monday were: Yes Bank, up 5.67 per cent at Rs 302.95; State Bank of India, up 5.01 per cent at Rs 246.35; HDFC Bank, up 2.91 per cent at Rs 1,893.15; Tata Steel, up 2.80 per cent at Rs 582.45; and HDFC, up 2.66 per cent at Rs 1,832.60.

The Sensex losers were: Wipro, down 3.96 per cent at Rs 273.90; Infosys, down 1.13 per cent at Rs 1,154.30; Tata Motors (DVR), down 0.48 per cent at Rs 185.75; Tata Consultancy Services, down 0.12 per cent at Rs 2,813.05; and NTPC, down 0.03 per cent at Rs 170.10. (IANS)

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