Stocks
Nifty, Sensex still in an upmove - Wednesday closing report
We had mentioned in Tuesday’s closing report that Nifty, Sensex might continue to rally. But, a late evening shock from the government about taxing investments coming in from Mauritius set the market back today. The trends of the major indices in the course of Wednesday’s trading are given in the table below:
 
 
The government on Tuesday announced amendments to the DTAA (Double Taxation Avoidance Agreement) with Mauritius as a result of which the key Indian indices plunged on Wednesday at the open. The amended DTAA has increased the potential of a massive outflow of foreign funds from the equity markets since Mauritius is a major source of such foreign investments. Consequently, the key indices of the Indian equity markets closed the day's trade in the red, although the market made a spirited recovery in the first two hours. The BSE market breadth was skewed in favour of the bears -- with 1,454 declines and 1,114 advances.
 
Private sector South Indian Bank Ltd on Wednesday said it closed the last fiscal with higher profit at Rs.333.27 crore. In a regulatory filing in BSE, the bank said it has posted a net profit of Rs.333.27 crore for the year ended 31 March 2016, as compared to Rs.307.20 crore for the year ended March 31, 2015. Last fiscal the bank's total income has increased to Rs.6,074.62 crore as compared to Rs.5,783.29 crore earned for the year ended 31 March 2015. The bank board has recommended a dividend of Re.0.50 value of Re.1/- each (previous year Re.0.60 per equity share) for the financial year ended 31 March 2016, subject to the approval of the shareholders. South Indian Bank shares closed at Rs18.00, up 0.28% on the BSE.
 
Government-owned Oriental Bank of Commerce on Wednesday closed FY16 with a net profit of Rs.156.08 crore. In a regulatory filing in BSE the bank has posted a net profit of Rs.156.08 crore for the year ended 31 March 2016 as compared to Rs.497.08 crore for the year ended 31 March 2015. The bank's gross non-performing assets (NPA) and net NPA stood at Rs.14,701.78 crore and Rs.9,932.15 crore respectively as on 31 March 2016. The gross and net NPA as on 31 March 2015 were at Rs.7,666.22 crore and Rs.4,816.24 crore. The bank's total income has decreased from Rs.22,082.78 crore for the year ended 31 March 2015 to Rs.21,824.99 crore for the year ended 31 March 2016. The board has recommended a dividend of Re.0.70 per share (face value of each share being Rs10) for the financial year ended 31 March 2016. Oriental Bank of Commerce shares closed at Rs84.95, down 2.75% on the BSE.
 
Finance Minister Arun Jaitley on Wednesday said the UK has turned down India's request for deportation of liquor baron Vijay Mallya, but added that he can be extradited once a chargesheet is filed against him. Jaitley, who is Leader of House in Rajya Sabha, was speaking after Janata Dal-United (JD-U) member Sharad Yadav raised the issue in the house. "Government has said we will get him back. UK has clearly denied it and said there is no question of sending him back. This man took so many things from here and government was sleeping," Yadav said. 
 
Strong urban consumption sentiment, reversal of dieselisation and lower prices are likely to have caused India's petroleum products consumption growth to touch a record high during last fiscal, American investment banker Jefferies said on Wednesday. Total petroleum product consumption growth as reported by the government's Petroleum Planning and Analysis Cell (PPAC) was at a multi-year high of 10.9% in 2015-16, compared to an average growth of 5% and a previous high of 7% in both 2007 and 2008. "Strong urban consumption sentiment, reversal of dieselization and lower price are likely to have been factors for strong petrol consumption as it is almost entirely used for personal transportation in two-wheelers and cars," Jefferies said in a research note. These consumption trends are good for overall growth for the major indices in the Indian stock markets.
 
Skills and talent development company NIIT on Tuesday said it posted a consolidated net profit of Rs17.8 crore for the fourth quarter of 2015-16 as against a net loss of Rs151.2 crore for the same quarter in 2014-15. During the quarter, the company recorded a net revenue of Rs238.9 crore, up 7% over the same period last year. "Over the year, each quarter, we have delivered steadily accelerating top line YoY (year-on-year) growth. Further, the revenue from all NIIT Go-Forward businesses, which excludes geographies and businesses that we had defocused and exited, grew by a robust 11% during the year, thus indicating strong demand and a healthy growth momentum for our focused strategy," said CEO Rahul Patwardhan in a statement. NIIT Technologies shares closed at Rs475.05, up 0.77% 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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COMMENTS

DYNAMICLEVELS

1 year ago

Indian market Outlook: FII have sold 116319 contracts in the futures markets and 298794 contracts in the Options market in the current expiry. Nifty is expected to open 15 points below yesterday's close of 7869 as per SGX at 8:30 am IST. Small Cap trend change confirmation level is 5089 and Nifty recent low was 7700. The level of 7912 continues to be a major resistance for Nifty in short term.

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Reliance Jio Beats Others in Speedtest
Reliance Jio (RJIO), the Mukesh Ambani group company, is all set to launch its fourth generation (4G) network with its employees referring the services to 10 people for testing. Edelweiss says it availed RJio's employee referral offer for testing. "First impression is positive owing sound network performance. We consistently received network speed of 12-20Mbps outdoors and 3-8Mbps indoors with satisfactory coverage. The experience on voice side, with respect to voice quality and call set-up time, was also satisfactory. RJIO is trying to create a unified digital ecosystem with a suite of applications, though there are credible established alternatives in each of the verticals. We remain cautious on the sector anticipating increase in competitive intensity with launch of RJIO," it said in a research report. 
 
RJIO is expected to disrupt market with significantly lower data prices and combo offers, which will enable customers to access variety of content on a single platform. This also means incumbent operators will have to continue to invest in their network and innovate on pricing to maintain market share.  
 
Edelweiss Securities says it found the data service of RJIO much superior when compared with incumbent players' 4G services with indoor network speed of 3-8Mbps and outdoor speed of 15-20Mbps, which is about 25% higher than current operators. "However," it says, "superior performance can be attributed to RJIO’s relatively empty network and performance may deteriorate post commercial launch. There were few occasions when RJIO reported lower speeds and signal strengths versus incumbents, especially in indoor environs. With respect to building blocks, with pan-India 5MHz paired spectrum in 800MHz band and 20MHz unpaired spectrum in 2300MHz band, RJIO is better placed than incumbents with data spectrum holding in both coverage and capacity spectrum."    
 
Apart from LTE infrastructure, RJIO services come preloaded with various apps, such as Jio Play (live TV), JioOnDemand (VoD), JioMoney (wallet), and JioBeats (music) to ensure that content is also available to the users. "Although there are credible alternatives available in each of the verticals, customers are unlikely to access all vertical specific apps due to the hassle of maintaining separate apps, their credentials and subscriptions. With RJIO offering unified login and subscription management, the process could be simplified and may increase customer stickiness," Edelweiss says.
 
 
The report mentions that the employee referral scheme necessitates purchase of LYF branded phones, which it found to be significantly under-spec’d compared to similarly priced phones. "However, 90 days of free data and voice usage offset the lower perceived value of the phone," it added.

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COMMENTS

Rishi Jain

1 year ago

they are pushing LYF handset currently to test the integration of their network with their handset, ofcorce force buying if their LYF brand will not be permanent. Now the pricing, yes LYF is expensive than their competitors, but thats the way to pull out money for the freebies they are giving in test connections with their LYF brand. wait and watch im sure it is going to be a game changer and we the consumer will be at best receiving end.

Simple Indian

1 year ago

Forcing subscribers to buy the Lyf handset could deter potential customers of Reliance Jio's 4G network. Moreover, as the article mentions, Lyf handsets are overpriced for the specs they offer. R-Jio ought to find a way to enable regular (non-Lyf) 4G capable handsets to use its network. Else it won't find too many takers, esp. in metros and large cities where Airtel and Vodafone offer decent 4G speeds without being locked-in with a particular brand of handset.

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