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Friday 15 April 2016

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Infosys Q4 net up 3.8%, FY17 $ revenue growth seen at 11.8-13.

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IT software major Infosys' fourth quarter profit and operating profit margin beat analysts' expectations on Friday but revenue matched estimates. Profit grew by 3.8 percent to Rs 3,597 crore in January-March quarter compared to Rs 3,465 crore in preceding quarter. Revenue increased 4.1 percent sequentially to 16,550 crore from Rs 13,411 crore in same period.  The company says dollar revenue in Q4 rose 1.6 percent to USD 2,446 million and 1.9 percent in constant currency compared to preceding quarter.

Thursday 14 April 2016

National Small Savings Fund loan rate cut to 8.8 percent


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The National Small Savings Fund (NSSF) loan rate to the Centre as well as states has been lowered to 8.8 percent from 9.5 percent following a recent cut in small savings interest rates, an official statement said on Wednesday.
"In line with the revision of interest rates of small savings schemes, interest rates for the National Small Savings Fund (NSSF) loan to Centre and states for FY 2016-17 has been revised and fixed at 8.8 percent," a finance Ministry statement here said.
"This interest rate was felt to be burdensome on states' economies. In the context of easing the transmission of the lower interest rates in the economy, the government has taken a comprehensive view on the social goals of certain National Small Savings Schemes (NSSS)," it added.
The NSSF invests its net collection as loans to central, state and union territory governments.
In a bid to align small savings to the market, the government, last month, cut interest rates on all such schemes, including on Public Provident Fund (PPF), Kisan Vikas Patra (KVP) and senior citizen deposits.
Interest rate on PPF has been cut to 8.1 percent for the period April 1 to June 30, from 8.7 percent.
The interest rate on KVP has been reduced to 7.8 percent from 8.7 percent, while senior citizen savings schemes of five years would earn 8.6 percent interest, compared to 9.3 percent.

Wednesday 13 April 2016

Here's why holding largecap funds makes sense: Morningstar


Morningstar has done intensive research on largecap funds like Birla Sun Life Frontline EQ , Franklin India Bluechip , ICICI Pru Top 100 and SBI Bluechip Fund .  Kaustubh Belapurkar of Morningstar Investment Adviser tells us the rationale for investing in them. According to him an investor should give a bigger allocation to largecap funds in his portfolio because they hold lower risks. Even a first-time investor can dabble in them because they have lower risks than other funds, he adds. The house tracks the importance of a fund by its ability to protect capital, says Belapurkar. Most funds are comfortable holding private banks than public sector banks, says Belapurkar. However, in an exception of sorts,  HDFC Mutual Fund  holds SBI, Punjab National Bank and Bank of Baroda. Although these holdings have impacted the fund’s performance, Prashant Jain who manages the fund is convinced of a turnaround in them, says Belapurkar.


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Mutual Funds approach Sebi with 30 NFO proposals in 2016

Mutual Funds approach Sebi with 30 NFO proposals in 2016

To tap the growing demand from retail investors, mutual fund houses have filed draft papers with markets regulator Sebi to launch as many as 30 New Fund Offers. Retirement, fixed maturity plan (FMP) and equity are some of the themes for which mutual fund houses have filed the applications. Interestingly, many mutual fund companies have approached Sebi for launching plans with Hindi names so that investors in rural areas understand the objectives of the schemes in a better manner. The move is seen as moving away from the old tradition of English names for investment schemes.


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Jewellers back in biz, industry keen to recoup losses

All jewellers on Wednesday called off their strike. About 60 percent of jewellers had already called off the strike after the government's assurance that the Ashok Lahiri Committee will consider all their demands. The jewellers had gone on a strike since March 2 after Finance Minister Arun Jaitley in his Budget announced a 1% percent excise tax on non-silver jewellery. Sanjeev Agarwal, CEO, Gitanjali Export Corporation, says although the industry is not happy that the duty has not been rolled back, he is relieved that jewellers are back in business. The company will make an attempt to recoup at least a part of its losses, says Agarwal.


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Indian Stock Market Trading Trending News

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The market extended rally in morning with the Sensex climbing 400 points and the Nifty eyeing 7850 level. All sectoral indices continued to be positive, tracking good monsoon forecast, better-than-expected CPI & IIP data and positive global cues. The 30-share BSE Sensex rallied 398.43 points or 1.58 percent to 25544.02. The 50-share NSE Nifty rose 121.45 points or 1.58 percent to 7830.40 that recovered 1000 points from February low of 6825.


Forecast for normal monsoon rains, after two back-to-back droughts, is the single biggest trigger for today's rally, traders said. Adequate monsoon rains will help raise agricultural productivity, adding to the country's GDP growth. Agriculture accounts for 14 per cent of India's $2 trillion economy. Normal monsoon will revive the farm sector, which has been weighed down by subdued agriculture output and falling farmers' income. The farm sector supports two-thirds of the country's population.

Indian Stock Market Trading Trends by Marketmagnify

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The S&P BSE Sensex rallied over 300 points in morning trade on Wednesday, led by gains in ICICI Bank, ITC, RIL, HDFC, L&T, and Wipro.The rally in markets was largely led by surplus monsoon forecast by the weather office this year after two consecutive droughts. 

Indian banking stocks rise on Wednesday.India's retail inflation eased in March to a six-month low, raising hopes the central bank would ease interest rates further.Reserve Bank of India cut policy rates by 25 bps last week to a more than five-year low, leaving open the prospect of more cuts if inflation trends stay benign.The S&P BSE Bankex index jumps 1.66 pct, has the highest weightage on the benchmark BSE index, which is up 1.5 pct

Tuesday 12 April 2016

Duty on stainless steel imports from China may face a probe:Srcs

The Director General of Antidumping has asked for a probe into the Countervailing Duty (CVD) on stainless steel products that are being imported mostly from China. The request has come following an application from JSL Stainless , reports CNBC-TV18 quoting sources. China gives a lot of subsidy to stainless steel makers by way of power tariffs and taxes. This probe will have implications for the Indian stainless steel industry. About 50 percent of China's total stainless steel produce is exported to India.


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Dr Reddy's Labs up 2% as Rs 1569-cr buyback to begin on April 18

Shares of Dr Reddy's Laboratories climbed more than 2 percent intraday Tuesday after the drug major announced commencement date for its buyback offer of worth Rs 1,569 crore. The stock gained more than 7 percent in last two months, especially since February 11. The company said the buyback of equity shares will begin on April 18 and is proposed to be completed within a maximum period of six months from the date of opening. The board of directors and shareholders (through postal ballot) approved the buyback proposal on February 17 and April 1, respectively.


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Why banks are unable to draw savers despite high interest rates

A relatively high real interest rate is still not encouraging savers to deposit money with banks, resulting in shortage of funds with banks for lending. According to a report by SBI’s Economic Research Department, deposits with all scheduled commercial banks (ASCBs) have grown 9.9 percent in FY16, the lowest in more than five decades. According to SBI Chief Economic Adviser Soumya Kani Ghosh, a key reason for this could be that lower inflation is giving people the confidence to spend more than when inflation was high.


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Farm sector stocks in focus on hopes of good monsoon

Shares of fertiliser, irrigation systems and agri machinery manufacturers were in limelight today, rising as much as 10.6 percent, after the government said monsoon this year is expected to be normal. Jain Irrigation Systems   soared 8.23 percent on NSE. The scrip of Escorts zoomed 10.61 percent and VST Tillers Tractors rallied 7 percent. Shares of Chambal Fertilisers and Chemicals   surged 5.19 percent, Kaveri Seed   Company gained 4.96 percent, Rashtriya Chemicals and Fertilizers (4.42 percent), Deepak Fertilisers and Petrochemicals (4.1 percent) and National Fertilizers   (4 percent). "El Nino condition is declining. It is expected that La Nina condition will takeover, and will perhaps favour a good monsoon this year," Agriculture Secretary Shobhana K Patnaik said yesterday addressing a national conference to launch kharif campaign for 2016-17.


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Indian Stock,MCX,Commodity Trading Analysis

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The market continued to be marginally higher in morning trade with the Sensex rising 78.91 points to 25101.07 and the Nifty climbing 23.50 points to 7694.90. Pharma, banking & financials, auto and oil & gas stocks gained while metals stocks lost shine. The BSE Midcap and Smallcap indices outperformed, rising over 0.7 percent as more than two shares advanced for every share declining on Bombay Stock Exchange.


Shares of fertiliser, irrigation, seed and two-wheeler manufacturers, rallied sharply a day after private weather forecaster - Skymet - predicted above average rains this year. Monsoon rains are important because they provide water to half of the country's farmlands that lack irrigation facilities.

Indian Stock Market Analysis Today

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Domestic equities inched higher in Tuesday's trading session on mixed Asian cues, ahead of the release of February industrial production and March consumer price index (CPI) data later in the day.The S&P BSE Sensex was trading higher by nearly 100 points above the crucial support level of 25,000. The 50-share Nifty50 inched up and was testing its crucial psychological support level of 7,650. 

 Kitchenware and appliances maker TTK Prestige soars as much as 10.3 pct to a 3-week high.Buys Horwood Homewares Ltd, a table and cookware suppliers, in UK for an undisclosed amount.Deal to help TTK expand global operations and give access to European markets, company says in statement.

Monday 11 April 2016

RBI declines to share details of banks inspection report

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RBI declines to share details of banks inspection report

The RBI has declined to share details of banks inspection reports citing a section of the transparency law that exempts public authority from disclosing information that may prejudicially affect sovereignty, security or economic interests of the country. Replying to an RTI query, the central bank also said furnishing the requested information will disproportionately divert the resources of the public authority. The Reserve Bank of India (RBI) was asked to provide copies of all the annual financial inspection reports, concurrent audit or inspection reports carried out between 2007 and 2015 on foreign currency derivative contracts sold by the 19 banks that were earlier penalised by it.

Aadhaar, net banking-based IT e-filing appeal system activated

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Aadhaar, net banking-based IT e-filing appeal system activated

Income Tax department has activated the Aadhaar and net banking-based e-filing verification system for taxpayers to file the first appeal before a tax officer, on similar lines of online ITR filing. In order to reduce the interface between taxman and the taxpayer, the department has recently operationalised the maiden facility on its official e-filing portal. "One EVC can be used to validate one form of the assesse irrespective of the assessment year. The EVC will be stored against the assesse PAN along with other verification details. The EVC will be valid for 72 hours or as otherwise specified," a notification in this regard said.

DLF up 3% as promoters kick off divestment in rental arm

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Shares of realty major DLF   today climbed over 3 per cent after the company initiated the process to sell promoters' 40 per cent stake in the rental arm, a deal estimated at Rs 12,000-14,000 crore. Shares of the firm were trading at Rs 122.40 on BSE, up by 3.33 per cent over the previous close. On NSE, the stock surged 3.42 per cent to trade at Rs 122.45. DLF had in October announced that its promoters will sell their stake in the DLF Cyber City Developers Ltd (DCCDL),which holds the bulk of office and retail complexes. The realty firm would continue to own remaining 60 per cent stake in DCCDL.

RBI to launch Unified Payment Interface on April 11

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The Reserve Bank of India (RBI) April 11 will launch Unified Payment Interface (UPI), which will make money transfer as simple as sending a text message. In the first phase, which will start next week, 29 banks will operate the platform. It will be inter-operable across different banks and will allow instant payments. This UPI method could change the micro-payment landscape in the country.   According to a report, 95 percent of consumer transactions in volume terms and 65 percent in value terms are in cash. This is much higher than the 40-50 percent transaction in volumes and 10-20% in value terms for advanced economies. Therefore, the government and the Reserve Bank of India have been working on ways to reduce cash in the economy. Considering the number of smart phones in the country is estimated to go up from 150-200 million to 500 million, mobile money transfer is expected to get a boost. 

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The market started off week on a flat-to-positive note. The Sensex rose 41.81 points to 24715.65 and the Nifty advanced 13.35 points to 7568.55. Bharti Airtel topped buying list on Sensex, up 3.11 percent after acquisition of 4G spectrum rights from Aircel for 8 circles for Rs 3,500 crore.


Reliance Infrastructure was the top gainer from the mid-cap space; the stock advanced 2.13 per cent to Rs 552. Titan, JSW Energy, Pidilite Industries, Reliance Capital, Adani Power, Page Industries, Bajaj Holdings, Divis Labs and Emami were also among the gainers.

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The S&P BSE Sensex pared gains after rallying over 100 points in early morning trade on Monday, weighed down by losses in Infosys, HDFC, M&M, and Asian Paints.Investor sentiment was hit by low expectations from the earnings season that is set to kick start with IT giant Infosys on Friday. 


Concerns in the developed world over fading arsenal of central banks to fight deflation also weighed on sentiments. 
Indian stock markets closed little changed on Friday as investors took a pause before a busy week of corporate results, but the stock indexes posted their biggest weekly fall in six due to profit-taking in recent outperformers.