Stocks
Nifty, Sensex break the uptrend on low volumes – Wednesday closing report
We had mentioned in Tuesday’s closing report that Nifty, Sensex were still on an uptrend. However, the major indices of the Indian stock markets suffered a sharp correction on Wednesday and closed over 1% lower than Tuesday’s close. The trends of the major indices in the course of Wednesday’s trading are given in the table below:
 
 
 
 
Profit booking, along with negative global cues and caution over upcoming quarterly results, dragged the Indian equity markets lower during the late-afternoon trade session on Wednesday. Heavy selling pressure was witnessed in automobile, banking and healthcare stocks. The BSE market breadth was skewed in favour of the bears -- with 1,896 declines and 832 advances. On the NSE, on Wednesday, there were 335 advances, 1,116 declines and 48 unchanged.
 
Most banking and pharma stocks traded down, while IT (information technology) and auto stocks also faced resistance at higher levels. Aviation stocks traded with sideways to firm sentiments on higher crude oil prices. Indian markets continued to trade with weakness and underperformed its global peers.
 
Pharma exports in the first quarter of fiscal 2016-17 have come down by 4%-5%, causing concern among Pharmaceutical Export Promotion Council of India (Pharmexcil) and ministry of commerce and industry, which have convened two meetings this month with top exporters. "In the first three months the growth has not been on expected lines and the ministry is disturbed," Pharmexcil Director General Appaji told news agencies. The council, which works under the ministry, has called one meeting in Hyderabad on Wednesday and another in Mumbai later this month to look into issues faced by the exporters. The joint secretary in the ministry will interact with CEOs of pharma industries to know what is going wrong and to discuss how to address the problems. Appaji believes many factors led to the drop in exports, including foreign currency shortages in countries like Venezuela, Nigeria and Angola. 
 
JK Tyre & Industries (JKTIL) on Tuesday reported a consolidated net profit of Rs100.26 crore for the quarter ended June 30, 2016. According to the company, its consolidated net profit for the corresponding period of last fiscal stood at Rs117.07 crore. "Consolidated financial results published, as opted by the company, include working of Cavendish Industries Ltd., acquired on April 13, 2016 which restarted its operations in mid-May, 2016," the company said in a regulatory filing to the BSE. "Therefore, results of the quarter are not comparable with previous period." The company's total income during the quarter under review stood at Rs1,786.77 crore from Rs1,771.06 crore earned during the corresponding period of 2015-16. “JK Tyre continues to make deeper inroads in the Indian market with higher sales of both truck/bus radials and passenger radials in volume terms. The company has recorded higher operating profit for the quarter on consolidated basis," said Raghupati Singhania, Chairman and Managing Director of JK Tyre & Industries. The shares of the company closed at Rs102.20, down 2.76% on the BSE on Wednesday.
 
The Lok Sabha on Tuesday passed The Employees Compensation (Amendment) Bill, 2016, as Union Labour Minister Bandaru Dattatreya said a large number of workforce in the organised sector will benefit. The bill provides for higher compensation in case an employee is injured in industrial accident and has a provision for hefty penalty in case of violation by employers, officials said. "A large number of organised workforce will be benefited by it.... Labour is a big component in the nation-building activity as their participation is very high. India has got a huge human resource. That is why labourers or workers play a significant role in building the nation," the minister said while piloting the draft legislation in the lower house of Parliament. At the end of the debate which saw participation of several members, Dattatreya said the new legislation provides for payment of compensation of Rs50,000 to Rs1 lakh to employees and their dependents in case of injury in industrial accidents and also occupational diseases. Besides, Rs50,000 compensation, there will be "penalty for failure to display the Act" by the employers. This is likely to push up quality and also costs in the corporate sector and where the additional costs cannot be passed on to the customers, through higher prices, corporate earnings are likely to be adversely affected to that extent.
 
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:
 

User

HDFC bank denying zero balance accounts to Gurgaon villagers
A few branches of HDFC Bank in the rural areas of Gurgaon are declining to open accounts with zero balance for students, farmers and labourers under Pradhan Mantri Jan-Dhan Yojana (PMJDY) scheme, applicants said here.
 
HDFC Bank has stopped opening accounts with zero balance in Gurgaon's Manesar, Sohna, Pataudi and Taoru regions.
 
At least 10 new branches of HDFC Bank were opened in the rural belt of the district including in Sikanderpur (Badha), Shikohpur, Hayatpur and nearby villages a few years ago to provide banking facilities to the villagers.
 
Villagers said they were denied an account with zero balance even before the PMJDY scheme was launched.
 
"We opened accounts under PMJDY scheme till October last year (2015) but currently opening of accounts with zero balance has been stopped till further orders from the headquarters," a senior HDFC Bank official said on the condition of anonymity.
 
"Accounts under HDFC's bank schemes number (section) 174 and 171 (for farmers and labourers) have been banned," he said.
 
Said Paramveer, a student: "I had deposited all required documents over three months ago at Sikanderpur (Badha) branch to open an account with zero balance. But bank officials are forcing me to open the account with minimum Rs 5,000 or 2,500 balance."
 
"The bank imposes fine on the account holder if the accepted minimum balance is not maintained," added an accountant.
 
"I had applied for an account under PMJDY but was denied," said a farmer from Hayatpur.
 
"We have received dozens of applications for such accounts and we are forwarding 'genuine cases' to circle head office to seek permission to open accounts with zero balance," Praveen Mehta, a senior executive at Sikanderpur (Badha) branch, told IANS.
 
When contacted at PMJDY's national helpline number (18001801111), the call attendant said: "One can open an account under PMJDY at any bank after providing required documents and can avail benefits provided under the scheme."
 
Satish Yadav, a senior official with a government bank, told IANS: "Private banks usually refuse to open such accounts because they don't want to give benefits awarded under PMJDY scheme to the customers."
 
PMJDY is a national mission on financial inclusion to ensure access to various services like availability of basic savings bank account, access to need based credit, remittances facility, insurance and pension to the excluded sections -- weaker sections and low income groups. 
 
Accounts can be opened in any bank branch or business correspondent (Bank Mitr) outlet. PMJDY accounts are being opened with zero balance. However, if the account holder wishes to get a cheque book, she/he will have to fulfil minimum balance criteria.
 
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.

User

Tata Chemicals sells its urea business for Rs 2,670 crore
Tata Chemicals on Wednesday said it has sold its urea business to Yara Fertilisers India Private Limited for a consideration of Rs2,670 crore.
 
"The Board of Directors has accepted the transfer of the business of sale and distribution of urea and customised fertilisers, manufactured by the company at its plants located in Babrala, Uttar Pradesh, by way of a slump sale by the company to Yara Fertilisers India Private Limited," the company said in a filing to BSE.
 
The lump sum consideration for the transfer of the urea business of the company by way of a slump sale pursuant to the scheme is Rs2,670 crore, the filing said.
 
The company said divestment of the urea business would unlock value for the company, strengthen its balance sheet and would help to pursue growth potentials and opportunities in line with its strategic directions.
 
"This marks a decisive move on the part of the company to move forward on its strategy to build consumer business while maintaining leadership in inorganic chemicals business and focusing the farm business through its subsidiary Rallis and Metahelix," said the company's MD R. Mukundan.
 
Yara India is the Indian arm of Norway's Yara International ASA and it imports, sells and distributes plant nutrition products in the country.
 
"The urea business will now have the benefit of international network of Yara and its global expertise... The company will continue to own the brands Paras, TKS and Daksha. This transaction does not include specialty products and complex fertilisers," the filing said.
 
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.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)