Companies & Sectors
Government decides to wind up Hindustan Diamond Company
The government on Wednesday said that it is initiating the process of winding up Hindustan Diamond Company (HDCPL).
 
The decision was taken by the Cabinet Committee on Economic Affairs (CCEA), to wind up the 50:50 joint venture company of the government of India and De Beers Centenary Mauritius (DBCML). 
 
"The winding up of HDCPL is not likely to affect supply of rough diamonds to Indian diamantaires as Indian diamond industry has grown in these years and several Indian players are sightholders with top diamond producers now," an official statement from the CCEA said.
 
"Also, with the objective to facilitate the constant supply of rough diamonds and to make India an International Diamond Trading Hub, the government has created a Special Notified Zone (SNZ) at Bharat Diamond Bourse, Mumbai, in 2015."
 
The CCEA statement elaborated that at present, viewing operations are being carried out in the SNZ at Mumbai -- wherein Foreign Mining Companies (FMCs) only display their rough diamond lots to the Indian manufacturers and then take these back.
 
"Thereafter, the sales are carried through e-auction from offices situated in other countries to Indian manufacturers. This facility has enabled even smaller Indian players to have direct access of supply of rough diamonds," the statement said.
 
The company was incorporated in 1978 under the Companies Act, 1956. 
 
The company was formed to supply rough diamonds to processing industry in India, particularly to small and medium diamond jewellery exporters.
 
The small and medium diamond jewellery exporters had no direct access to rough diamonds from Diamond Trading Company (DTC), London -- the marketing arm of De Beers, which held a very large chunk of the world's rough diamonds market. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Highlights of budget-related decisions of India's Cabinet
The following are the highlights and implications of the three budget-related decisions taken by the Union Cabinet at a meeting presided over by Prime Minister Narendra Modi on Wednesday:
 
Merger of Railway Budget with the General Budget:
 
- Distinct identity of Indian Railways will continue as a departmentally-run commercial unit
 
- Functional autonomy and financial powers will be retained by the Railways
 
- Railways will continue to meet their revenue expenditure from revenue receipts
 
- Railways will no longer pay dividend to the government totalling Rs 9,700 crore
 
- The merged budget will help present a holistic picture of government's financial position
 
- It will cut legislative and procedural requirements.
 
Advancement of the Budget presentation:
 
- Advancement of budget will help complete related legislative business before March 31
 
- It will enable better planning and execution of schemes from the beginning of a fiscal year
 
- This will preclude the need for vote on account by the Lok Sabha
 
- It will enable the implementation of legislative changes in tax laws from the beginning of a fiscal
 
Merger of plan and non-plan classification of budget:
 
- Earmarking of funds for the Sscheudled Castes, the Scheduled Tribes and related subjects will continue
 
- Plan and non-plan expenditure distinction had led to fragmented view of resource allocation to various schemes
 
- It was becoming increasingly difficult to ascertain the cost of delivering a service and to link outlays with outcomes.
 
- The focus on plan expenditure had led to a neglect of expenditures on maintenance of assets and for providing essential social services.
 
- The merger is expected to provide corporate-style budgetary framework having a focus on revenues and capital expenditure.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Sensex, Nifty await Fed actions – Wednesday closing report
We had mentioned in Tuesday’s closing report that Nifty, Sensex might rally a bit. The major indices of the Indian stock markets were range-bound on Wednesday and ended flat compared to Tuesday’s close. NSE trading volumes were on the lower side. The trends of the major indices in the course of Wednesday’s trading are given in the table below:
 
 
Indian equity markets succumbed to profit booking to close the day's trade on a flat note on Wednesday. Selling pressure was witnessed in FMCG and banking stocks. The markets were largely positive as hopes of a rate-hike turned down in the US Fed meet enhanced the risk-taking appetite, according to market analysts. However, investors were not willing to push prices higher as caution still prevails ahead of the FOMC's final decision. The Bank of Japan (BoJ) decision (to keep its policy balance rates unchanged) did not have much impact on the domestic markets. Initially on Wednesday, the benchmark indices opened on a flat-to-positive note on the back of positive Asian markets. The CNX Nifty traded with firm sentiments on buying support from traders. Most IT stocks traded firm on recovery in USD/INR futures. Auto and oil-gas stocks also traded with firm sentiments. On the NSE, there were 731 advances, 725 declines and 67 unchanged. The BSE market breadth was tilted in favour of the bulls -- with 1,413 advances and 1,314 declines.
 
The Bank of Japan (BOJ) unveiled its new policy framework on Wednesday, saying it will keep its negative policy rate at minus 0.1% while modifying the framework of its bond-buying programme to guide long-term rate at around 0%. The BOJ said it will continue to expand the monetary base until consumer prices exceed two percent in a stable way. The Japanese central bank concluded a two-day Policy Board meeting on Wednesday dedicated to having a "comprehensive assessment" of its monetary easing steps in an effort to achieve a 2% inflation goal.
 
Adani Green Energy (Tamil Nadu) Ltd on Wednesday dedicated its 648MW solar power project in the state to the nation, the company said. In a statement issued here, Adani Green Energy said it has dedicated the world's largest solar power plant at a single location of 648MW set up in Kamuthi, Ramanathupuram district. Adani Power closed at Rs27.70, down 0.72% on the BSE.
 
Coal India Ltd (CIL), which produces 84% of country's coal output, "needs to step up to a double digit growth rate from that of around 9% achieved during 2015-16" to meet its production targets, company Chairman Sutirtha Bhattacharya said on Wednesday. "Going forward, in order to meet the production targets, Coal India needs to step up to a double digit growth rate from that of around 9% achieved during FY 2016...during the first four months of FY 2017, Coal India's production growth was more than 6 million tonnes (mt) over the same period last year," he said while addressing shareholders at the company's 42nd Annual General Meeting. Coal India closed at Rs330.10, up 0.21% on the BSE.
 
E-commerce platform Flipkart on Wednesday announced the registration of 100 million customer users -- making it the first online marketplace in India to reach this milestone. This landmark was crossed just six months after hitting the 75 million registered users mark in March 2016. Flipkart's registered customer base stands at around 63% of entire wireless and wireline broadband connections in India, the company said in a statement. 
 
With an aim to boost digital transformation, HCL Technologies will increase investment on SMAC (Social, Mobility, Analytics, Cloud) -- especially Cloud -- in next couple of years, a top company executive has said. "Currently, 60% of our IT budget is focused on SMAC. It will go up to 80-90 per cent of total IT spend by 2019-20," Manoj Kumbhat, CIO of HCL Technologies, told IANS on Tuesday on the sidelines of the ongoing Oracle OpenWorld (OOW) 2016 conference. "As we aim to become a $10 billion company by 2020, total IT investment on SMAC will go up significantly and Cloud gives tremendous flexibility for scaling up," Kumbhat said. Moving towards digital transformation, he said the company will shut down four of its six data centres in India in next three-four years. "We are not investing in data centres anymore. Currently, we have six data centres in the country. By 2019-20, we will keep only two data centres as we move towards Cloud services," Kumbhat noted. HCL Technologies closed at Rs787.00, down 0.66% on the BSE.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 

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