Showing posts with label Market. Show all posts
Showing posts with label Market. Show all posts

Wednesday, October 19, 2016

GST Council has almost reached consensus on tax rates: Jaitley

GST Council has almost reached consensus on tax rates: Jaitley

news-gst-council almost reached consensus on tax rates jaitley

New Delhi, Oct 19: The Goods and Services Tax (GST) Council has almost reached a consensus on compensating states for loss of revenue under the new revenue collection regime, which will permit a decision on the new tax structure at the next meeting, Finance Minister Arun Jaitley said on Wednesday.

"The Council meeting today discussed the issue relating to different rates of tax structure. Rates also depend on the source of funds, on the basis of which compensation to losing states will be funded. Decision on a rate structure is possible once this is decided," Jaitley told reporters here after the meeting. 

"We have virtually converged on a consensus. The technical issues will be sorted out and the formal decision will be announced at the next meeting," Jaitley, who chairs the GST Council, said.

"The question is whether the compensation will be funded from the rate structure itself, or some other sources, or some cess. Once this becomes clear, it will be possible to decide on the rate structure," he added. 

The third meeting of the Council, that began on Tuesday, was cut short by a day. 

Jaitley said the Council would meet next on November 3-4.

Thursday, October 13, 2016

Macro-data, US rate hike fears' spook investors; equity markets' tumble

Macro-data, US rate hike fears' spook investors; equity markets' tumble

Macro-data-US-rate-hike-fears-spook-investors-equity-markets-tumble

Mumbai, Oct 13: The Indian equity markets on Thursday plunged as investors were spooked ahead of the release of inflation macro-data and upcoming key quarterly results.

Global cues such as increased chances of a US rate hike, disappointing China trade data and renewed fears of an early exit of Britain from the European Union (Brexit), too, dragged the key indices to end lower by more than 1.50 per cent each.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) plunged by 135.45 points or 1.56 per cent to 8,573.35 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,042.62 points, closed at 27,643.11 points -- a tumble down of 439.23 points or 1.56 per cent from the previous close at 28,082.34 points.

The Sensex touched a high of 28,042.62 points and a low of 27,563.84 points during the intra-day trade.

The BSE market breadth was in favour of the bears -- with 1,931 declines and 933 advances.

On Monday, the last trading day, both the key Indian indices had made marginal gains on the back of positive global cues.

The barometer index had closed higher by a mere 21.20 points or 0.08 per cent to 28,082.34 points, while the NSE Nifty inched-up by 11.20 points or 0.13 per cent to 8,708.80 points.

Initially on Thursday, the benchmark indices opened on a negative note in sync with their Asian peers.

The Asian, domestic and European markets plunged due to increased chances of US Federal Reserve (US Fed) going in for a rate hike in December.

The September meeting minutes of the Federal Open Market Committee (FOMC) revealed that most members were in favour of a rate hike in the later part of the calendar year. 

A rate hike can potentially lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India, and is also expected to dent business margins as access to capital from the US will become expensive.

In addition, sentiments were dampened by disappointing factory output data released on Monday and anxiety over the upcoming release of key quarterly results.

India's factory output remained subdued for the second consecutive month -- decelerating by (-)0.7 per cent in August from a decline of (-)2.49 per cent in July and a 6.3 per cent rise in the corresponding month of last year.

The second quarter results season started on October 7. TCS (Tata Consultancy Services) is expected to be the first blue chip firm to come out with its results on October 13, followed a day later by Infosys.

The Indian rupee weakened by 41 paise to 66.93-94 against a US dollar from its previous close of 66.53 to a greenback. 

"Heightened chances of a US rate hike and caution ahead of key inflation data led the steep down fall," Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services, told IANS.

"Investors were spooked ahead of the release of key quarterly results." 

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, CNX Nifty traded with bearish sentiments tracking global cues and firm USD/INR futures prices. 

"Banking, pharma and auto stocks traded down on selling pressure," Desai said.

"However, IT and oil-gas stocks witnessed recovery from lower levels in second half of the session." 

In terms of investments, provisional data with exchanges showed that the foreign institutional investors (FIIs) sold stocks worth Rs 911.53 crore, whereas the DIIs bought scrip worth Rs 679.49 crore.

Sector-wise, only the S&P BSE IT index remained afloat. It inched up by 18.30 points.

In contrast, the S&P BSE bank index plunged by 484.32 points, followed by the automobile index, which receded by 300.20 points, and the consumer durables index declined by 243.91 points.

Major Sensex gainers during Thursday's trade were: Infosys, up 2.19 per cent at Rs 1,052.05; ONGC, up 1.70 per cent at Rs 272.05; Cipla, up 0.22 per cent at Rs 581.85; Maruti Suzuki, up 0.21 per cent at Rs 5,724.20; and Hero MotoCorp, up 0.11 per cent at Rs 3,493.50.

Major Sensex losers were: Adani Ports, down 4.68 per cent at Rs 251.65; HDFC, down 3.83 per cent at Rs 1,338.45; ICICI Bank, down 3.56 per cent at Rs 241.20; Reliance Industries, down 3.49 per cent at Rs 1,057.70; and Tata Motors, down 3.17 per cent at Rs 544.30.

Wednesday, October 12, 2016

Time for telecom industry to dump the dumb pipe: Report

Time for telecom industry to dump the dumb pipe: Report

Time-for-telecom-industry-to-dump-the-dumb-pipe:-Report

New Delhi, Oct 12: The connectivity-driven digital revolution in the country has prompted fundamental policy reforms, a premier thought-leadership brand has stated, adding that trends in the industry are pushing telecoms to choose between 'dumb' utility models and growth-driven business models.

"A connectivity-driven digital revolution is already one of the key phenomena of our age prompting a need for fundamental policy reforms," said a Citi GPS: Global Perspectives and Solutions report published earlier this month.

The report is titled 'Re-birth of Telecoms into a New Digital Industry - Time to dump the dumb pipe'.

The report said that over the past two decades, telecom companies have been busy building infrastructure that is critical to the communications sector -- copper, cellular or mobile, cable, and fiber networks -- which are the backbone of the increasingly digital economy. 

This connectivity-driven revolution has created some of the world's largest companies who generate their profits by using the infrastructure that the telecom sector has built. 

While telecom operators have seen minimal industry growth of just 0-3 per cent in the past few years, sectors that use their networks -- Internet services -- are seeing growth at rates at least six times higher.

"The described trends, in our view, are pushing telecoms to choose between a ‘dumb pipe' utility model and a growth-driven business model based on newly built advantages in the less regulation prone digital service layer," the report stated.

The $4 trillion global digital services market is growing relatively modestly at three to four per cent per year, while telecoms have often struggled to keep up pace even with that low number. 

"It is, therefore, crucial for telecoms to choose the right expansionary areas. Internet Protocol TV, consumer video, Virtual Reality, IoT including telematics (vehicle connectivity), big data and 3D printing/scanning that constitute major potential growth opportunities for data traffic and specialised digital businesses," the report said.

The report also talked about newly arising opportunities in the service layer for telecoms willing to undergo digital transformation. 

"Such opportunities are emerging just now due to growing importance of local digital regulation and local content, as well as, local partnerships including -- corporate venture capital opportunities; technology trends such as all-IP networks and network virtualization, which potentially create new scale economies; and new opportunities coming based on internet of things or 5G," the report said.

"Telecom digital transformation in our view entails the technological overhaul of networks, IT systems, and processes; the provision of digital experience to the consumer; and the provision of tailored connectivity, cloud, big data, and other services in business-to-business," it added.

Tuesday, October 11, 2016

GST passage can lead to 8% GDP growth over next few years: Report

GST passage can lead to 8% GDP growth over next few years: Report

GST-passage-can-lead-to-8-percent--GDP-growth-over-next-few-years

Singapore, Oct 11: Leading credit risk research firm S&P Global Ratings on Tuesday said that passage of the GST (Goods and Services Tax) bill can lead to India's eight per cent GDP (gross domestic product) growth over the next few years.

According to the firm's report "Asia-Pacific Steadies While China Goes Silent", "India's GST passage gives us additional conviction around our 8%-ish GDP growth forecast over the next few years."

"The GST passage is arguably the most important structural reform to date by the Modi government, and will improve efficiency, cross-state trade, and tax buoyancy."

The report pointed out a trend of reasonably firm pick-up in Asia-Pacific's macro momentum indicators.

"Retail sales offer the clearest sign of pickup and is currently above trend in most of the region's economies," the report said.

"This stems from rising incomes, which, in turn, is part of the region's evolving growth dynamics, with consumption playing a larger role." 

The report elaborated that trade momentum in Asia-Pacific region-- both exports and imports -- has been on the rise.

"On the flip side, despite decent growth and relatively easy monetary conditions, there is little or no evidence of price pressure in the region," the report said.

The report said that credit growth in the region has been broadly contained despite concerns about the effects of record-low interest rates. 

"Given the region can still generate decent domestic demand-led growth with only moderate credit expansion, offers some degree of comfort in light of a number of high-profile credit-fuelled excess investment episodes," the report added.
India plays crucial role in Montreal Protocol talks

India plays crucial role in Montreal Protocol talks

India-plays-crucial-role-in-Montreal-Protocol-talks

Kigali (Rwanda), Oct 11: India on Tuesday played a crucial role in the ongoing negotiations on the Montreal Protocol by favouring two baseline years for bringing down the consumption of HFC by the developing countries -- provided the developed world "agrees to reduce its consumption by 70 percent by 2027".

India, at the 28th meeting of the Parties to the 1989 Montreal Protocol on Substances that Deplete the Ozone Layer, also demanded transparency and more clarity for the allocation of funds to help developing countries for research and development for smooth technological transition without any delay.

Putting forth the case strongly, India's lead negotiator Manoj Kumar Singh, Joint Secretary with the Ministry of Environment and Forests, at a formal meeting of contact groups said India proposed two baseline years for the developing countries to freeze their consumption of hydrofluorocarbons (HFCs), used in air-conditioners and refrigerators.

The baseline year, he said, should either be 2024-26 or as early as 2020-22.

"But the developed world should have 70 percent reductions by 2027," he said.

In the past, India, a major player in the ongoing negotiations, had proposed a baseline for developing countries as average consumption of HFCs in 2028-30.

The baseline is the maximum quantity of HFCs that a country can consume in a year. Freeze year is the year in which its baseline consumption has to be reached. After that, the countries have to start reducing HFC consumption from the baseline.

India's proposal has received favourable response from both developed and developing countries.

Likewise, India also sought China, the world's largest HFC producer, to take more responsibility by pledging to cut its production and consumption earlier than other developing countries. China is likely to agree to 2020-22 as the baseline period, officials involved in the negotiations said.

Manoj Kumar Singh said there should be more openness and fairness in the allocation of the multilateral fund to be used for smooth transition from HFCs by the developing nations.

Ahead of the Kigali negotiations, 19 global foundations together contributed $53 million and other $27 million came from a few countries for the multilateral fund to be used for early transition from HFCs by the developing nations and directed towards energy efficiency efforts.

India demanded an open discussion on this fund and how it will be used.

For smooth transition to developing new technologies indigenously, there is a huge financial burden on India -- both for the industry and the consumers.

Delegates from nearly 200 countries are attending the Kigali meeting.

An agreement to freeze HFCs as early as 2025-26 to eventually globally eliminate the use of HFCs is likely to happen on October 14, the last date of the meeting.

Union Environment Minister Anil Madhav Dave is reaching Kigali on Wednesday for participating in the ministerial negotiations a day later.

Experts say though HFCs do not harm the ozone layer, they have a high global warming potential.

Their elimination will ultimately help avoiding an up to 0.5 degree Celsius rise in global temperature by the end of the century and will significantly contribute towards the global goal of staying well below two degrees.

The Montreal Protocol was designed to protect the ozone layer by reducing the production and consumption of ozone-depleting substances. It was agreed to on September 16, 1987, and entered into force on January 1, 1989.

Since then it has banned the use of several ozone-depleting substances, including chlorofluorocarbons, which were replaced by HFCs.

Monday, October 10, 2016

Equity markets inch up on global cues

Equity markets inch up on global cues

Equity-markets-inch-up-on-global-cues

Mumbai, Oct 10: The Indian equity markets on Monday closed on a flat-to-positive note on the back of reduced chances of a US rate hike and a strengthened rupee.

However, gains were capped by profit booking, outflow of foreign funds, negative European markets and caution ahead of key quarterly earnings' results.

The wider 51-scrip Nifty of the National Stock Exchange (NSE) inched up by 11.20 points or 0.13 per cent to 8,708.80 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,144.28 points, closed at 28,082.34 points -- up only 21.20 points or 0.08 per cent from the previous close at 28,061.14 points.

The Sensex touched a high of 28,216.64 points and a low of 28,068.32 points during the intra-day trade.

The BSE market breadth was in favour of the bulls -- with 1,700 advances and 1,182 declines.

On last Friday, both the key Indian indices were pulled lower by negative global indices, caution ahead of earnings' announcements and profit booking.

The barometer index had closed lower by 45.07 points or 0.16 per cent to 28,061.14 points, while the NSE Nifty surged by 11.95 points or 0.14 per cent to 8,697.60 points.

Initially on Monday, the benchmark indices opened on a positive note in sync with their Asian peers.

Asian and domestic markets had surged due to reduced chances of US Federal Reserve (US Fed) going in for a rate hike in December, after lower than expected macro-data on US jobs' growth in September was released on last Friday.

On October 7, the US Bureau of Labor Statistics reported that the total non-farm payroll employment increased by just 156,000 in September, whereas the unemployment rate remained little changed at 5 per cent.

The data assumes significance as it acts as a gauge for the likelihood of a rate hike by the US Fed in December.

The data was been deemed as lower than expected by analysts, however, some financial reports have suggested that September jobs' growth figure can be viewed as strong enough for the US Fed to consider a rate hike by the end of the year.

A rate-hike can potentially lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India, and is also expected to dent business margins as access to capital from the US will become expensive.

Besides, healthy buying by domestic institutional investors (DIIs) and an appreciation of the rupee supported the key indices' upward movement.

The Indian rupee strengthened by 16 paise to 66.53 against a US dollar from its previous close of 66.69 to a greenback.

However, gains were capped due to caution ahead of key quarterly earnings' results and the release of August factory output data -- IIP (Index of Industrial Production).

The second quarter results season started on October 7. TCS (Tata Consultancy Services) is expected to be the first blue chip firm to come out with its results on October 13, followed a day later by Infosys during the truncated week.

"Weak US non-farm payrolls data, broadly higher Asian markets and a strengthened rupee lent positive bias to the equity markets," Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.

"However, caution ahead of key macro-economic data on factory output and earnings' results capped gains."

According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, CNX Nifty traded with sideways to firm sentiments due to the lack of buying interest at higher levels. 

"Banking, pharma and auto stocks traded with mixed sentiments due to profit booking at higher levels. However, textile and cement stocks traded firm on strong buying support from traders," Desai said.

"Bearish USD/INR futures prices prevented any heavy selling pressure." 

In terms of investments, provisional data with exchanges showed that the foreign institutional investors (FIIs) sold stocks worth Rs 547.26 crore, whereas the DIIs bought scrip worth Rs 468.96 crore.

Sector-wise, the S&P BSE oil and gas index plunged 71.24 points, followed by the capital goods index, which declined by 29.80 points, and the energy index fell by 22.75 points.

In contrast, the S&P BSE consumer durables index surged by 216.08 points, the metal index rose by 151.98 points, and the IT index gained by 105.84 points.

Major Sensex gainers during Monday's trade were: Tata Steel, up 2.71 per cent at Rs 417.40; Asian Paints, up 2.22 per cent at Rs 1,211.95; Cipla, up 1.90 per cent at Rs 580.55; Infosys, up 1.67 per cent at Rs 1,029.55; and Lupin, up 1.17 per cent at Rs 1,516.25.

Major Sensex losers were: NTPC, down 1.28 per cent at Rs 146.45; Bharti Airtel, down 1.27 per cent at Rs 316.10; Reliance Industries, down 1.26 per cent at Rs 1,095.95; Adani Ports, down 1.14 per cent at Rs 264; and HDFC, down 0.98 per cent at Rs 1,391.80.
India's factory output remains subdued in August

India's factory output remains subdued in August

Indias-factory-output-remains-subdued-in-August

New Delhi, Oct 10: India's factory output remained subdued for the second consecutive month -- decelerating by 0.7 per cent in August from a decline of 2.49 per cent in July and a 6.3 per cent rise in the corresponding month of last year, official data showed on Monday.

As per data on Index of Industrial Production (IIP) released by the Central Statistics Office (CSO), the fall was mainly on account of a 0.3 per cent drop in manufacturing output, which also has the maximum weight in the overall index.

Among the other two major sub-indices, electricity generation inched up by 0.1 per cent while that for mining declined by 5.6 per cent.