Stocks
Nifty, Sensex may rise a bit – Thursday closing report
We had mentioned in Wednesday’s closing report that Nifty, Sensex may move in a narrow range. The major indices of the Indian stock markets were range-bound on Thursday and closed with namesake small gains over Wednesday’s close. The trends of the major indices in the course of Thursday’s trading are given in the table below:
 
 
Profit booking, along with negative Asian indices and a weak rupee, subdued the Indian equity markets on Thursday. However, a fresh bout of buying support and short covering during the last hour of the day's trade saw the key indices closing on a flat-to-positive note. The BSE market breadth was tilted in favour of the bulls during the second half of the session, closing with 1,444 advances and 1,258 declines. On the NSE, on Thursday, there were 764 advances, 677 declines and 59 unchanged.
 
Bata India has changed its strategy of opening over 100 stores a year and would start concentrating on same store growth, a said Chairman Uday Khanna on Thursday. It also plans to set up online kiosks in some major retail stores across the country. The shoe maker added 26 new retail stores during the last financial year, Khanna told shareholders at the company's 83rd annual general meeting. The company continues to penetrate into tier 2 and tier 3 cities in India and other rural markets, he said. The footwear maker has been investing to strengthen its digital multi-channel business division along with logistics division with due importance for delivery of footwear and accessories, its latest annual report said. In 2015-16, online sales reached Rs40 crore. The company reported standalone net profit of Rs50.49 crore for the first quarter ended June 30 as compared to Rs50.18 crore in the same period last year. The company’s shares closed at Rs528.65, down 4.44% on the BSE.
 
The Central Board of Direct Taxes (CBDT) has entered into an advance pricing agreement (APA) with an Indian subsidiary of a Japanese trading company to foster a non-adversarial tax regime. "Signing of this bilateral APA is an important step towards ascertaining certainty in transfer pricing matters of multinational company cases and dispute resolution," said a statement issued here by the Finance Ministry under which the CBDT functions. The agreement was signed on August 2. The scheme endeavours to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and setting the prices of international transactions in advance. "The progress of the APA Scheme strengthens the government's mission of fostering a non-adversarial tax regime," the statement said. Overall, it is fourth bilateral APA signed by the CBDT. The APA scheme was introduced in the Income-tax Act in 2012. The CBDT expects more APAs to be signed in the near future, it said. The agreement is likely to be favourable for FDI (Foreign Direct Investment) in India.
 
As India took a big leap towards a unified Goods and Services Tax (GST) regime across the country, with the upper house of parliament passing the relevant Constitution amendment bill on Wednesday, industry biggies and major think tanks said this transformational change is a win-win situation and hoped it will be implemented soon. Marie Diron, Senior Vice President, Sovereign Risk Group, Moody's Investors Service said, “The short-term credit implications of GST for the sovereign will be limited. In the medium term, GST is likely to have a positive impact on the economy and government revenues. We assume that GST will have no significant impact on inflation, in line with the revenue-neutral framework.” This development is likely to be favourable for both FDI and FII (foreign institutional investors) to invest in India.
 
The central government has decided to import another 30,000 tonnes of pulses for the buffer stock, official sources said on Thursday. The Price Stabilization Fund chaired by Consumer Affairs Secretary Hem Pande at a meeting here on Wednesday decided that fresh imports will include 20,000 tonnes of Tur dal and 10,000 tonnes of Urad. The government agencies have also procured about 1.19 million tonnes of pulses from the domestic market, official sources said. "The department of Consumer Affairs has requested state governments repeatedly to lift the pulses Tur and Urad from the buffer stock for distribution at not more than Rs 120/kg. Tur is being provided to the state at the rate of Rs67/kg and Urad at Rs 82/kg," a source said. Over 29,000 tonnes of pulses were allocated to the states as on August 1, 2016 but only three states have lifted some quantities against their allotments. Prices of pulses continue to be high despite a series of efforts from the government to put things under check. With agricultural imports drawing upon foreign exchange reserves of the country, inflation and stability of the rupee are likely to come under government control and the stock markets are likely to be subdued 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

Pondy Oxides and Chemicals: Growth at a Reasonable Price?
POCL (Pondy Oxides and Chemicals Limited) is the foremost secondary lead smelter in India. POCL produces lead and lead alloys and PVC (polyvinyl chloride) additives which are supplied to battery manufacturers, chemicals manufacturers and manufacturers of PVC extruded and moulded products. About 50% of its production is exported to international customers in South Korea, Japan, Indonesia and...
Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MAS member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
Nifty, Sensex may move in a narrow range – Wednesday closing report
We had mentioned in Tuesday’s closing report that Nifty, Sensex were still struggling to go up. The major indices of the Indian stock markets suffered a sharp correction on Wednesday of around 1% over Tuesday’s close. However, the losses were on relatively thinner trading on the NSE. The trends of the major indices in the course of Wednesday’s trading are given in the table below:
 
 
On Wednesday, in line with global cues from the Asian stock markets, the major indices of the Indian stock markets suffered a correction of around 1%. Indian equity markets on Wednesday succumbed to profit booking on uncertainties regarding the passage of the GST (Goods and Services Tax) bill in the Rajya Sabha. Consequently, both the key indices traded in the negative territory during the mid-afternoon trade session as heavy selling pressure was witnessed in automobile, capital goods and fast moving consumer goods (FMCG) stocks. The BSE market breadth was skewed in favour of the bears -- with 1,815 declines and 914 advances. On the NSE, on Wednesday, there were 423 advances, 1,178 declines and 243 unchanged.
 
Initially, the benchmark indices opened on a negative note, as investors traded with caution on expectations of approval of the GST bill in the Rajya Sabha later in the day. Investors are hopeful about the bill's passage after the union cabinet last week approved key changes in the proposed legislation. The amendments in the bill, scheduled to be moved by Finance Minister Arun Jaitley in the Rajya Sabha, are expected to sail through with the government scrapping the additional levy of 1% proposed earlier. Technically called the Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014, it has proposed to delete Clause 18 of the original bill that intended to compensate the manufacturing states with one per cent additional duty for a period of two years or more for revenue losses. The pan-India tax reform has been passed by the Lok Sabha but is stuck in the Rajya Sabha, where the government lacks a majority.
 
Global software major Infosys Ltd on Wednesday announced investing $4 million (Rs27 crore) in Cloudyn, an Israeli corporation, providing software as a service (Saas) solutions for the management and optimization of hybrid, multi-cloud deployments. "Cloudyn enables enterprises to manage and optimise their hybrid, multi-cloud deployments. The solution provides visibility into usage, performance and cost, coupled with actionable recommendations for confident cloud growth," said the IT major in a regulatory filing with stock exchange BSE in Mumbai. The company did not disclose the minority holding in percentage equivalent to the cash investment in the five-year-old Israeli firm, which has presence in the US. "The investment is expected to be completed on August 15," the filing noted. Infosys shares closed at Rs1,085.00, up 0.06% on the BSE.
 
Berger Paints India posted a consolidated net profit of Rs120.30 crore for the first quarter of the current fiscal, registering a jump of 54.6% over the corresponding year-ago period, the company said on Wednesday. "Income from operations for the quarter ended in June this year was Rs1,246.10 crore against Rs1,126.30 crore last year, an increase of 10.6%," it said at its 92nd annual general meeting. "Net profit for the quarter ended was Rs120.30 crore against Rs77.80 crore last year, representing an increase of 54.60%," company chairman K.S. Dhingra said. The company's standalone profits stood at Rs114.20 crore against Rs83.30 crore in the corresponding quarter, registering an increase of 37%. Dhingra said the company has approved issue of bonus shares in the proportion of two bonus shares for every existing fully paid up equity shares. Talking about the expansion plans, CEO Abhijit Roy said the company was setting up two plants in Assam. Berger Paints shares closed at Rs234.55, down 2.25% on the BSE.
 
Global IT services major HCL Technologies Ltd on Wednesday reported a consolidated net profit of Rs2,047 crore for first (April-June) quarter of fiscal 2016-17, registering 14.8% year-on-year growth. The Noida-based software firm said consolidated revenue grew 15.9% year-on-year to Rs 11,336 crore under the Indian accounting standard. Revenue in constant currency was up 11.2%. Under the International Financial Reporting Standard (IFRS), consolidated net income was up 9.5% to $305 million and consolidated revenue up 10% year-on-year to $1,691 million ($1.7 billion). On standalone basis, net income was Rs1,799 crore and revenue Rs4,829 crore for the quarter under review (Q1). The company’s shares closed at Rs825.90, up 3.16% on the BSE.
 
Public sector Indian Bank on Tuesday said it closed the first quarter of the current fiscal with a net profit of Rs307.35 crore. In a regulatory filing in BSE, the bank said it has posted a net profit of Rs307.35 crore for the quarter ended on June 30, 2016 as compared to Rs215.27 crore for the quarter ended on June 30, 2015. Indian Bank earned a total income of Rs4,512.96 crore for the quarter ended on June 30, up from Rs4,494.53 crore earned during comparable quarter the previous year. The bank’s shares closed at Rs179.70, down 3.49% on Wednesday 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:

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 Online 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)