Stocks
Nifty, Sensex may turn weak – Thursday closing report
We had mentioned in Wednesday’s closing report that Nifty, Sensex were overbought and that they are being supported by a benign macro-environment. The major indices of the Indian stock markets suffered a correction on Thursday with losses upto 0.74% 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 and upcoming global event risks depressed the Indian equity markets on Thursday. Selling pressure was witnessed in banking, healthcare and capital goods stocks. On the NSE, at the close of trading, there were 489 advances, 936 declines and 49 unchanged. The BSE market breadth was also tilted in favour of the bears -- with 1,596 declines and 1,088 advances and 184 unchanged.
 
Initially, on Thursday, the benchmark indices opened on a positive note, in sync with their Asian peers, especially the Japanese markets. Besides, the equity markets were pushed up by higher global crude oil prices, firm rupee, healthy progress of monsoon season and recovery in the European indices. However, the equity markets soon ceded their gains on the back of sector-specific profit booking. In addition, reduced chances of further monetary policy easing by the European Central Bank (ECB) in its upcoming monetary policy review dampened investors' sentiments. Further, the ongoing logjam in parliament hampered the upward trajectory in the stock markets.
 
According to market analysts, barring the media, auto and realty, all major sectoral indices traded in the red. Most IT and banking sector stocks traded with bearish sentiments on profit booking. Also, pharma and auto stocks also faced resistance at higher levels due to profit booking.
 
The growth in debt levels over the decade-mainly driven by private debts makes emerging market economies vulnerable to external shocks, global credit rating agency Moody's Investors Service has said in a report. According to the report titled 'The Evolution of Emerging Markets External Debt: Private Sector Debt Drives Broad-Based Build-Up of Emerging Markets External Vulnerability Risks', the debt growth was highest in the Asia-Pacific region. The largest increase was reported in external borrowings in China, India, Indonesia, Taiwan and Malaysia, Moody's said. Driven by growth in private debt in China, India and Indonesia, debt levels in the Asia-Pacific region have grown at an average rate of 13.5%, the report said. According to Moody's, the average external debt to gross domestic product ratio for Asia as a whole has recently increased from 31% in 2008 to 47% in 2015 -- well below the 78% of Emerging Europe, but comparable to the 48% in Latin America and the 43% in the Middles East and Africa region. Total emerging and frontier market external debt -- defined as debt owed by residents of a country to non-residents -- has almost tripled from $3 trillion in 2005 to $8.2 trillion at the end of 2015. Debt is now growing faster than GDP and faster than foreign exchange reserves for many of these countries, said Moody's. In this context, the stock markets in India are likely to suffer a sharp correction when foreign institutional investors withdraw some of their funds from emerging markets like India. Moody’s sums it up by saying, “The potential for capital flows to slow, should US interest rates continue to rise, would also exacerbate the debt situation in emerging economies.”
 
Zinc-lead producer Hindustan Zinc on Wednesday said it has posted a 47% decrease in its net profit to Rs1,037 crore in the quarter ended June 30 as compared to Rs1,940 crore in the corresponding quarter last year. Revenues during the quarter were Rs2,501 crore, which is 30% lower from a year ago. The decrease was on account of lower volumes, the company said in a statement. In accordance with mined metal availability and accretion to inventory, refined zinc production during the quarter decreased by 46% year-on-year (y-o-y) and 34% from the previous quarter. Integrated lead production during the quarter was lower by 11% y-o-y and 36% sequentially for the same reason while silver metal production was up by 20% y-o-y. Rise in silver production was on account of higher volumes from Sindesar Khurd mine, though lower by 27% compared to previous quarter due to accretion to inventory and lower volumes from Rampura Agucha mine. The company’s shares closed at Rs193.20, down 0.44% on the BSE.
 
Fast moving consumer goods (FMCG) company Dabur India on Wednesday announced its entry into the fizzy drinks market with the launch of Réal VOLO -- a range of fruit juice-based aerated drinks. "Our Réal VOLO range contains 20%-25% fruit juice content making the fun of fizz healthier with the goodness of fruits," said Mayank Kumar, head, Fruit Juices and Beverages, Dabur India. The company said the range -- which does not have any added preservatives -- is available in 250 ml cans priced at Rs40 each. Dabur shares closed at Rs304.10, up 0.12% 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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Vikas Singh Gusain

10 months ago

Helpful information, policybazaar.com

7 Indian firms in Fortune 500; Rajesh Exports replaces ONGC
Seven Indian companies figure in the latest Fortune 500 list, released on Thursday, of the world's biggest companies in terms of revenue.
 
Among Indian companies, state-run Indian Oil Corp (IOC) is ranked highest at 161st with revenues of $54.7 billion, although the other public sector firm Oil and Natural Gas Corp has moved out of the rankings for 2016.
 
ONGC has been been replaced by gems and jewellery firm Rajesh Exports, which makes its Fortune 500 debut this year at 423rd position.
 
Of the state-run firms, IOC is followed by State Bank of India (SBI), Bharat Petroleum and Hindustan Petroleum.
 
Mukesh Ambani-led Reliance Industries Ltd (RIL) is the highest ranked, though it has slipped down to 215th position, from 158 last year.
 
Tata Motors follows at number 226, up from 254th last year, with new entrant Rajesh Exports bringing up the rear.
 
Bharat Petroleum fell from 280th to 358th this year, while Hindustan Petroleum is at 367th, compared to its 327th place last year.
 
SBI has improved its position to 232, from being at 260 last year.
 
The overall list was topped by retail giant Walmart with revenue of $482,130 million.
 
The world's 500 largest companies generated $27.6 trillion in revenues and $1.5 trillion in profits in 2015, Fortune said.
 
Others in the global top 10 companies are State Grid (second, $329,601 million), China National Petroleum (third, $299,271 million), Sinopec Group (4th, $294,344 million), Royal Dutch Shell (5th, $272,156 million), Exxon Mobil (6th, $246,204 million), Volkswagen (7th, $236,600 million), Toyota Motor (8th, $236,592 million), Apple (9th, $233,715 million) and BP (10th, $225,982 million).
 
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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ITC net profit rises 10% in Q1
ITC Ltd on Thursday reported that its standalone net profit rose 10% to Rs2,384.67 crore for the quarter ended June 30, 2016 as compared to Rs2,166.09 crore for the corresponding quarter last year.
 
Total income from operations stood at Rs13,253.06 crore in the quarter under review as compared to Rs12,232.65 crore in the quarter year ago.
 
In the April-June quarter, revenue from cigarettes was Rs8,230.60 crore, up 6.4% from Rs7,733.43 crore in the same quarter last year.
 
Total revenue from its hotels, paperboards, paper and packaging and agri business stood at Rs4,404.34 crore in the first quarter ended June as compared to Rs3,957.21 crore last year.
 
Company's 105th annual general meeting will be held on Friday in the city and its Chairman Yogesh Chander Deveshwar will address shareholders for the last time.
 
Deveshwar would complete his present term on February 4, 2017. This AGM will be his last as CEO of the company, it said in a statement earlier.
 
The company had said when Deveshwar assumed office as Executive Chairman in January 1996, the company was confronted with formidable challenges.
 
The cigarette maker to FMCG conglomerate said early diversification efforts had either failed or were languishing, the businesses were not competitive enough in an emerging liberalised economic environment, and the company's reputation was at a low ebb.
 
At the time Deveshwar took over as Executive Chairman, the revenue of the company was less than Rs5,200 crore and Profit Before Tax (PBT) was Rs452 crore.
 
"The company's eevenue has presently grown tenfold to Rs51,582 crores and PBT has grown 33 times to Rs14,958 crores. Total shareholder returns grew at a compound annual rate of 23.3% during this period," it said earlier.
 
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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