Automotive parts supplier Bosch Ltd reported a second quarter net profit of Rs209.7 crore compared with Rs188.3 crore a year ago.
During the quarter to end-June, its total revenues increased to Rs1,716.6 crore from Rs1,310.7 crore same quarter last year, the company said in a regulatory filing.
On Wednesday, Bosch shares declined 0.7% to Rs5,783 on the Bombay Stock Exchange, while the benchmark Sensex ended 0.8% lower to 18,070 points.
The market, which opened in the red this morning, witnessed a choppy session on poor showing by its Asian peers. The benchmarks rose in early trade but slid into the negative zone later, one hour into the session. The indices made feeble attempts to move upwards, but were dragged southwards by a dismal opening of the influential European markets. After remaining range-bound for a better part of the post-noon session, the market went into a steep fall on selling pressure from heavyweights.
The Sensex closed at 18,080, lower by 149 points (0.8%) over its previous close. The index touched an early high of 18,262 and fell to an intraday low of 18,042 towards the end of the session. The Nifty shut at 5,420, down 40 points (0.7%). The index touched an intraday high and low of 5,474 and 5,412, respectively.
Of the 30 Sensex stocks, 24 ended in the red while six advanced. On the Nifty, 39 declined while 11 advanced. The BSE Mid-cap index was down 0.5% and the BSE Small-cap index declined 0.4%.
Tata Motors continued to be the star performer in the declining market today. The stock was up 5.1% on the Sensex, followed by Jindal Steel (up 0.2%) and Tata Power (0.3%). The draggers of the index were Tata Steel (down 3.2%), HDFC (down 2.4%), Wipro (down 2.2%), Mahindra & Mahindra (M&M) (down 2%) and ICICI Bank (down 1.8%).
The BSE auto index was the lone gainer today, up 0.01%. The top sectoral losers were realty (down 1.8%), bankex and healthcare (HC) (down 1% each), information technology (IT) down 0.8% and technology (TECk) (down 0.7%).
Buoyed by a good monsoon, the area under foodgrain crops during the kharif (July-October) season has gone up by 10% to 514.64 lakh hectares, as on 5th August. During the corresponding period last year, the foodgrain crop acreage was at 468.3 lakh hectares. The India Meteorological Department (IMD) had earlier predicted that the rainfall in the country as a whole is likely to be 102% of the long-period average.
Markets in Asia, with the exception of China’s Shanghai Composite, ended in the red. Machinery orders in Japan, an indicator of business investment, gained a marginal 1.6% in June, from the previous month, lower than analysts’ expectations of over a 5% increase. China's consumer price index rose 3.3% in July from a year earlier, against June's 2.9% rise. However, economists were expecting a 3.4% rise.
The Hang Seng was down 0.8%, Jakarta Composite was down 0.7%, KLSE Composite was down 0.5%, Nikkei 225 was down 2.7%, Straits Times was down 1.1%, Seoul Composite was down 1.2% and Taiwan Weighted was down 1%. Bucking the trend, Shanghai Composite gained 0.4% today.
The Reserve Bank of India (RBI) today brought out a discussion paper on giving out new banking licenses to business houses and non-banking finance companies, and regulations for the same to foster greater competition. The central bank is considering providing licenses to a limited number of new banks. “A larger number of banks would foster greater competition, and thereby reduce costs and improve the quality of service,” the RBI said in a discussion paper.
The RBI also sought to know “whether industrial and business houses could be allowed to promote banks”, and should NBFCs be allowed to convert into or promote banks.
Wall Street ended lower on Tuesday but off the day’s lows after the FOMC said it would take more steps to boost the sagging economy. Besides, the Fed left the overnight interbank lending rate target in a range of zero to 0.25%, where it has been since December 2008, and repeated a pledge to keep rates low “for an extended period.”
However, investors were not impressed and opined that the move was not enough to spur the labour market and consumer spending.
The Dow was down 54 points (0.5%) at 10,644. The S&P 500 was down 6 points (0.6%) at 1,121. The Nasdaq was down 28 points (1.2%) at 2,277.
Foreign institutional investors were net buyers of Rs599 crore worth of stocks on Tuesday. Domestic institutional investors were net sellers of equities worth Rs540 crore on the same day.
The country's largest private telecom operator Bharti Airtel (down 1.4%) reported a decline of 32% in consolidated net profit at Rs1,682 crore during the first quarter ended 30th June, due to the foreign exchange losses.
The April-June quarter of current fiscal witnessed an adverse impact after dollar strengthened against the rupee and several African currencies. As a result derivative and exchange fluctuation loss stood at Rs216 crore, as against gain of Rs279 crore in the same quarter previous year, Bharti Airtel told reporters.
Total income rose by 17.4% to Rs12,231 crore during the first quarter of current fiscal, from Rs10,414 crore in the same period previous quarter.
Ashok Leyland (0.4%), the Hinduja Group flagship, has won an order worth $26 million from the Sri Lanka-based People's Leasing Company to provide 1,000 buses.
The delivery of the 1,000 'Viking' buses, varying from 42-58 seaters, has to be completed before March 2011. The order is being part-funded by the Asian Development Bank, said the company in a press release.
Asahi Infrastructure and Projects Ltd (up 4.5%) has received an order worth Rs10.2 crore under central government scheme for construction related works. The scope of work includes construction of 544 houses, roads, sewerage system, community centres, pre-primary schools etc for municipal council in Washim district Maharashtra. The project is to be completed within nine months from the date of work order issued.
New Delhi: As it sought comments on grant of new banking licenses, the Reserve Bank of India (RBI) today listed out rules in ten global jurisdictions and nowhere found clear-cut laws banning industrial houses from owning or running banks, reports PTI.
The list of countries and regulatory jurisdictions annexed by RBI in its discussion paper on grant of new banking licenses include the US, UK, the European Union, Japan, Hong Kong, Australia, France, Malaysia, Germany and Canada.
While RBI said that "no information is available" in this regard for Malaysia, the other nine jurisdictions did not bar industrial houses as such from the banking space.
Since finance minister Pranab Mukherjee hinted in his budget speech for the year 2010-11 that RBI was contemplating allowing new private players in banking, the entry of business and industrial houses has been widely debated.
Those said to be keen to promote or run banks in India include a number of industrial houses such as the Anil Dhirubhai Ambani Group, Malvinder and Shivinder Mohan Singh-promoted Religare Group, the Aditya Birla Group and the Shriram Group.
Guidelines for new private bank licences first came in January 1993 and subsequently revised in January 2001.
However, the guidelines are "cautious in nature", the RBI said, adding that large industrial houses are not permitted to promote banks. Individual companies connected with large industrial houses are permitted to own 10% of the equity of a bank, but without any controlling interest.
A non-banking finance company (NBFC) with good track record is also eligible to convert into a bank, provided it was not promoted by a large industrial house besides some other conditions.
Talking about rules outside India, the RBI today said that any entity or person was eligible to own a bank in Canada provided they satisfy the statutory criteria.
Australia also has no statutory provisions excluding ownership of a banking business entity by an industrial company and the rules there permit banks to be owned by industrial companies with certain conditions.
In Hong Kong, too, there are no specific restrictions on ownership of banks by industrial houses, while "industrial companies are allowed to own banks in Germany."