Economy
India may not be affected much by ECB rate cuts
In the event of growth in the Euro zone slowing down, Indian exports would tend to get affected – though the impact will not be too severe, says CARE Ratings
 
The European Central Bank (ECB) on Thursday announced unprecedented measures in its monetary policy review meeting to continue its ongoing stimulus programme, in a bid to promote growth and deter the region from entering the deflationary trap. There were significant reductions in interest rates even as banks were signalled to increase lending. However, India may not be affected much, though slow growth in Euro region will affect our exports in a limited manner, says CARE Ratings in a report.
 
It said, "The crisis in Europe is to a large extent driven by low consumption and investment, which cannot be reversed easily by lowering interest rates, especially when the longer term refinancing operations (LTRO), which injected a lot of liquidity, did not quite succeed to turn the economy around."
 
According to CARE Ratings, as a fallout of ECB moves, the US dollar is expected to rise, which may put slight pressure on the Indian rupee. "When juxtaposed with the continued stimulus by the ECB and thereby higher Euro flows in the market, the US dollar is imminently expected to rise against the Euro. The rise in the dollar in international markets will impose pressure on rupee to a slight extent. Indian rupee may witness volatility with slight risks of depreciation against the US dollar, if international forces (foreign institutional investors-FII flows) dominate over the prevailing domestic factors," it said.
 
As of FY13, India’s exports to the European Union were about 17%-20% of the total export basket. In the event of growth in the Euro zone slowing down exports would tend to get affected – though the impact will not be too severe, the ratings agency said.
 
CARE Ratings feels emerging economies are likely to remain the favoured destination for FIIs. It said, "Firstly, given the macro economic situation in the Euro zone with low growth and low inflation, it is unlikely that the Euro area will offer competition to the emerging economies as regards FII inflows. Extremely low interest rates will be a deterrent to foreign investment inflows in the region. Secondly, the Eurozone contributes to only 12%-13% of the total foreign currency inflows in India as majority foreign currency inflows come from the US. Hence, this scenario is unlikely to be changed going ahead." 

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Sensex, Nifty manage to sustain upward momentum – Friday closing report

Nifty moves higher on positive cues

Indian markets opened Friday with the highest gap up since 26 May 2014. Positive closing of the US indices on Thursday helped the upward momentum at home. The S&P BSE Sensex opened 25,205 (up 185 points) while the NSE 50-share Nifty opened at 7,522 (up 47 points). After a range bound session till 2.00 pm, during which they hit their intra-day lows of 25,130 and 7,498. After around 2.00 pm the benchmark indices started rising and hit a high of 25,419 and 7,593, and closed almost near the intra-day high. Sensex closed at 25,396 (up 377 points or 1.51%) while the Nifty closed at 7,583 (up 109 points or 1.46%). The NSE recorded a volume of 164.52 crore shares. India VIX rose 3.46% to close at 15.9825.
 

Except for Metal (0.46%) and IT (0.44%) all the other Asian indices closed in the green. The top five gainers were Realty (5.03%), CPSE (4.92%), Energy (4.11%), PSE (3.91%) and Dividend Opportunities (2.57%).
 
Of the 50 stocks on the Nifty, 40 ended in the green. The top five gainers were ONGC (10.56%), Gail (7.66%), DLF (6.40%), Hero MotoCorp (4.17%) and Kotak Mahindra Bank (3.86%). The top five losers were Sesa Sterlite (2.64%), NMDC (1.39%), Infosys (1.35%), TCS (0.91%) and Hindalco (0.91%).
 
Of the 1,603 companies on the NSE, 1,081 companies closed in the green, 483 companies closed in the red while 39 companies closed flat.


Monsoon rains reached the Kerala coast, weather officials reportedly said. India's weather office had forecast a delayed onset for this year's monsoon on around 5th June, instead of the normal onset date on 1st June.

Food Minister Ram Vilas Paswan was quoted as saying, that the government will examine raising import tax on sugar to support local prices and help mills clear dues to cane growers which are estimated at Rs11,000 crore.

Government officials on Thursday, reportedly said that the oil ministry has to decide on gas pricing issue by 1 July 2014 and that more clarity on the issue may be reached next week. ONGC (10.57%) was the top gainer in the Sensex 30 pack.

Prasad Thrikutam is the latest addition to the series of exits from Infosys, he was the the global head for sales and marketing. The stock was among the top two losers (1.26%) among the Sensex 30 stock.

Tata Global Beverages (11.23%) top gainer in the ‘A’ group on the BSE. The scheme of amalgamation of Mount Everest Mineral Water Limited with the company was approved by the shareholders in the meeting held on 4 June, 2014.

Muthoot Finance (2.74%) was the top loser in the ‘A’ group on the BSE. The company was in the news recently after the Government of Singapore picked up a 1.06% stake in the company. This share purchase transaction was part of the recent institutional placement programme by the company raising Rs418 crore.

Asian indices showed a mixed performance. Among the indices which were trading today, Straits Times    (0.60%) was the top gainer, while Hang Seng (0.69%) was the top loser.

European indices were trading in the green. US Futures were also trading a little higher.
European Central Bank on Thursday cut its benchmark interest rates to unprecedented lows, spurring speculation that the decision will accelerate capital inflows.

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SEBI widens probe into investment tips scam

In the SMS and WhatsApp messages, investors were promised 200% assured returns on deposit payments of Rs25,000, along with promises of trading tips

Capital markets regulator Securities and Exchange Board of India (SEBI) has widened its probe into suspected investment scams through mobile SMS and mobile messenger services like WhatsApp, which are being used to lure investors with a promise of huge returns after initial payments.

 

Two individuals — Mansoor Rafiq Khanda and Firoz Rafiq Khanda — were on Thursday restrained by SEBI from acting as investment advisors ,after they were allegedly found offering unauthorised ‘trading tips’ through SMS and WhatsApp messages via mobile phones.

 

SEBI has ordered a further probe into the scam after it noted that the “modus operandi” of these two individuals, as well as names of the operators in this case are similar to the case of Imtiyaz Hanif Khanda and Vali Mamad Habib Ghaniwala, where the regulator had passed restraint orders in August 2013 and December 2013.

 

“Considering these facts of the case, it may be appropriate for further investigations to find out the connection, if any, between the entities hereinabove (Mansoor and Firoz) and the entities in the orders dated August 20, 2013 and December 30, 2013,” the SEBI said in its interim order issued on Thursday.

 

The regulator had begun a preliminary probe involving Mansoor and Firoz after complaints that certain entities were offering trading tips through SMS and WhatsApp sent from five distinct mobile numbers, as also some websites.

 

In these messages, the investors were being promised 200% assured returns on deposit payments of Rs25,000, along with promises of trading tips. The messages also promised monthly gains of Rs25-50 lakh.

 

Based on the complaint, SEBI undertook the probe by making telephone calls to the concerned mobile numbers and were directed to make necessary payments through a website.

 

Subsequently, the regulator zeroed on the two Surat residents — Mansoor Rafiq Khanda and Firoz Rafiq Khanda — based on the details gathered of the bank accounts where the money was to be deposited by investors.

 

According to SEBI, the entities were prima facie acting as investment advisors without necessary regulatory approvals.

 

“A detailed investigation may bring to light the depth of such activities that are carried out by these entities and the extent of losses caused to investors,” the regulator said.

 

To safeguard investors' interest, SEBI has asked Mansoor and Firoz as also their associated companies to cease and desist from acting as investment advisors and not to solicit or undertake such activities or any other unregistered activity in the securities market.

 

They have also been asked to immediately withdraw and remove all advertisements, brochures, documents, and websites, among others, in relation to their investment advisory or any unregistered activity in the securities market.

 

At the same time, SEBI also cautioned “investors to take their informed investment decisions without being influenced by such messages and advices and to deal with only intermediaries registered with SEBI”.

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COMMENTS

jay mata

5 months ago

i was aspen grup privet ltd .Agent this is rons company
I am invetment 500000 lakh rupes.pleas SEBI
SEBI is our prayer that these poor workers who have money deposited in Aspen Group Ltd, the company therefore has begged Sir checking pleased to take the money back to the poor |
Mukesh Prajapati
274 001 gram Brhra Deoria

Vaibhav Dhoka

2 years ago

With rising market these unscrupolous players have say and and those greedy fall prey to these fraudesters.

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