Stocks
Nifty, Sensex may rally a bit – Thursday closing report
We had mentioned in Wednesday’s closing report that Sensex, Nifty await Fed actions. The major indices of the Indian stock markets rallied strongly on Thursday, as the Federal Reserve maintained interest rates unchanged, to close around 1% higher than Wednesday’s close. The trends of the major indices in Thursday’s trading are given in the table below:
 
 
Indian equity markets soared on the back of positive global cues on Thursday. The key indices gained around a percentage each during the mid-afternoon trade session, as healthy buying was witnessed in stocks of banking, automobile, and capital goods. The BSE market breadth was tilted in favour of the bulls -- with 1,695 advances and 1,044 declines. On the NSE, there were 993 advances, 471 declines and 74 unchanged.
 
The Fed's decision to hold interest rates fuelled a rally in the equity markets globally leading to a sharp gap up move in our markets as well, according to market analysts. Initially on Thursday, the benchmark indices opened in the green following positive global cues. Investors' sentiments were buoyed on the US Federal Reserve's decision to keep its key interest rates unchanged for September. Besides, domestic cues such as the proposal to merge the general and railway budget, along with consultations to advance the budget presentation date, gave a positive momentum to the equity markets.
 
Union Finance Minister Arun Jaitley on Thursday said that infrastructure is the key to economic growth. Jaitley said this in his inaugural address at the BRICS (Brazil, Russia, India, China and South Africa) India 2016 seminar on "Best Practices in Public Private Partnerships (PPPs) and Long-term Infrastructure Financing".  The one day seminar was organised in the national capital by the Department of Economic Affairs, Ministry of Finance, with organisational support from the Confederation of Indian Industries (CII). Delegates from BRICS countries and senior officials of the Finance Ministry, along with senior executives of private sector companies participated in the seminar. It was organised in the run up to the BRICS Summit scheduled for October, 2016. India assumed the chairmanship of BRICS in 2016. According to Jaitley, an institutionalised forum amongst BRICS countries could serve as a regional knowledge hub with exchange of information facilitated through cloud sharing, and other electronic methods.  He pointed out that development projects in transportation sector like highways, ports and railways will be the area of mega economic activities as far as the infrastructure sector in India is concerned. The Finance Minister further said that investment from both the public and private sector will be required for financing projects in the areas of health, education, sanitation, renewable energy, highways, ports and railways among others. There is likely to be a good opportunity for investors in India in the infrastructure sector.
 
The US dollar decreased against other major currencies as investors were digesting the latest Federal Reserve statement. In the statement released on Wednesday after Fed's two-day policy meeting, the US central bank decided to keep its federal funds rate unchanged amid recent weak economic data and tepid inflation. "The Committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence of continued progress toward its objectives," said the statement.
 
As the global financial markets waited nervously, the US Federal Reserve kept its key interest rates unchanged -- a move that should bring some cheer when Indian markets open on Thursday. "The committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence of continued progress toward its objectives," said a statement by the Federal Open Market Committee after a much-watched, two-day meeting. The committee said even though unemployment rate is little changed in recent months, the job gains have been solid, even as household spending has been growing strongly. But business investment has remained soft, while inflation has continued to run below the 2 per cent long-term target. "Against this backdrop, the committee decided to maintain the target range for the federal funds rate at 0.25% to 0.50%."
 
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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Government names three academics to Monetary Policy Committee
Three academics from the country's top institutions have been named the government nominee members to the Monetary Policy Committee that has been mandated to ensure the country's retail inflation stays within a band of 4 percent, plus or minus two percentage points.
 
The names, cleared by the Appointments Committee of the Cabinet, are: Chetan Ghate, Professor at the Indian Statistical Institute; Pami Dua, Director at Delhi School of Economics; and Ravindra Dholakia, Professor at the Indian Institute of Management, Ahmedabad.
 
On its part, the Reserve Bank of India (RBI) has already named its set of three representatives to the six-member committee -- the Governor, at present Urjit Patel who is also the chair with a casting vote, Deputy Governor R. Gandhi and Executive Director Michael Patra.
 
With the full membership of the panel in place, the next bi-monthly monetary policy update of the Reserve Bank of India, scheduled on October 4, is expected to go by the recommendations of this panel, including a call on interest rates, officials said.
 
The government had said its three members will be experts in the field of economics, banking, finance or monetary policy and will be appointed for a period of four years -- and will not be eligible for re-appointment. 
 
The panel is to meet at least four times a year and publicise its decisions after each meeting.
 
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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Billionaire Mukesh Ambani richest Indian for ninth year: Forbes
With $22.7 billion (Rs 151,477 crore) net worth, Reliance Industries Chairman Mukesh Ambani is the richest Indian for the ninth consecutive year, American business magazine Forbes India said on Thursday.
 
Ambani, 59, who retains the top spot in the annual list of 100 richest Indian tycoons, saw his wealth increase to $22.7 billion from $18.9 billion last year as shares of Reliance Industries rose 21 percent over 12 months, the magazine said in a report.
 
The oil-to-retail conglomerate launched its 4G phone service Jio early this month, offering free calls and internet data link till December 31.
 
Dilip Shangavi of drug major Sun Pharmaceutical Industries is the second-richest Indian with $16.9 billion net worth though his personal wealth declined $1.1 billion due to its share price dropping, while London-based Hinduja brothers, with a combined network of $15 billion in 2016 as against $14.8 billion in 2015, are third.
 
The four siblings - Srichand, Gopichand, Prakash and Ashok - head the multinational group, whose businesses spans trucks and lubricants to banking and cable television.
 
IT czar Azmi Premji of Wipro slipped to fourth from third with $15-billion, while his flagship IT services company reported six percent decline in net earnings to $304 million in second quarter of this fiscal due to sluggish sakes.
 
The government's infrastructure push and housing-for-all policy have turned the fortunes of cement and paint tycoons such as Benu Gopal Bangur, who features at 14 in the top 20 for the first time with $5.9 billion net worth, as shares of his Shree Cement soared.
 
Like Bangur, Asian Paints non-executive Vice-Chairman Ashwin Dani added $1.1 billion to his wealth to figure at 34 with $3.3-billion net worth.
 
Though the composition at the top of the list remains unchanged, the combined net worth of the country's 100 wealthiest increased 10 per cent to $381 billion from $345 billion in 2015.
 
"In a post-Brexit world, India appears a steady ship with an economy growing at 7 percent-plus. The majority of India's 100 richest have notched up handsome gains as their companies outperformed the stock market in the past year," said Forbes Asia's India Editor Naazneen Karmali.
 
"This year's list has seen a rise in the overall wealth of the country's top 100 billionaires, in line with the movement of the markets," said Forbes India Editor Sourav Majumdar.
 
Meanwhile, eight tycoons rejoined the ranks after their companies outperformed the stock market's 12 percent rise in the past year.
 
Among them is the country's richest self-made woman and Biocon chairperson Kiran Mazumdar-Shaw at 65 with $1.83 billion net worth, as her firm's shares doubled in 12 months.
 
Six newcomers to the list include serial entrepreneurs and brothers Bhavin and Divyank Turakhia (95, $1.3 billion), who make the ranks after selling their ad tech firm Media.net for $900 million to a consortium of Chinese investors in August.
 
Acharya Balkrishna (48, $2.5 billion) also makes his debut on the list, thanks to his 97 percent holding in the fast-growing consumer goods outfit Patanjali Ayurved, which he co-founded with yoga guru Baba Ramdev.
 
Pawan Munjal (29, $3.65 billion), son of Brijmohan Lall Munjal, founder of Hero Group, took over his father's spot on the list.
 
The minimum net worth to enter the annual list of the richest Indians was $1.25 billion, up from $1.1 billion in 2015.
 
Flipkart co-founders Sachin Bansal and Binny Bansal, however, dropped out from the list as their net worth fell below the minimum amount, along with 11 others, including textile tycoon Balkrishan Goenka.
 
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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