Stocks
Nifty, Sensex still under the control of bulls – Tuesday closing report
We had mentioned in Monday’s closing report that that there was a fresh upsurge in Nifty and Sensex. The major indices of the Indian stock markets suffered a minor correction on Tuesday. The trends of the major indices in the course of Tuesday’s trading are given in the table below:
 
 
On Tuesday, the benchmark indices opened on a flat-to-positive note in sync with their Asian peers. However, negative Japanese indices, lower crude oil prices and a weak rupee dented sentiments. Besides, investors were seen cautious ahead of Finance Minister Arun Jaitley's meeting with his counterparts from the states to discuss proposed amendments to the GST (Goods and Services Tax) Bill. 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. It is widely expected that the bill will be listed for discussion in the Rajya Sabha following Jaitley's consultations with the Empowered Committee of State Finance Ministers. Nevertheless, a logjam in parliament has spooked investors over the prospects of the bill getting passed. In addition, volatility was flared by the start of the US Fed's FOMC (Federal Open Market Committee) meet.  The meet assumes significance as it will decide whether or not to increase interest rates. A hike in the US interest rates can potentially lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India.
 
The US dollar declined against most major currencies on Monday as investors were awaiting the closely-watched Federal Reserve meeting due to open on Tuesday. The seasonally adjusted Markit Flash US Manufacturing Purchasing Managers' Index (PMI) rose from June's reading of 51.3 to 52.9 in July, the highest level in a year, pointing to a solid improvement in overall US business conditions. Moreover, US Commerce Department reported last week that privately-owned housing starts in June were at a seasonally adjusted annual rate of 1.189 million units, 4.8% above the revised May estimate. The latest reading also beat market consensus of 1.170 million. Oil prices dropped on Monday as rising US crude rigs and fuel inventories spurred market concerns that another glut is building up. Analysts said recent data have intensified fears on oversupply in the market, which weighed on oil prices on Monday. US stocks ended lower after wavering in a tight range, as a decline in oil prices weighed on Wall Street ahead of the Federal Reserve's policy meeting.
 
Passenger car maker Maruti Suzuki on Tuesday reported a rise of 23% in its net profit for the first quarter (Q1) of 2016-17. The company's net profit stood at Rs1,486.2 crore for the quarter ended June 30, 2016 - up from Rs1,208.1 crore in the corresponding period of 2015-16. "The profit in the quarter was helped by a higher turnover, material cost reduction, higher non-operating income and lower depreciation," the automobile manufacturer said in a statement. "Adverse foreign exchange movement reduced profits to some extent." The passenger car major's net sales during the quarter under review stood at Rs14,654.5 crore -- up 12.1% from Rs13,078.3 crore for the quarter ended June 30, 2015. Maruti Suzuki sold 348,443 vehicles during the quarter under review, logging a growth of 2.1% over the similar period of the previous fiscal.  The company's sales in the domestic market grew by 5.4% to 322,340 units. However, exports during the quarter plunged by 26.7 per cent to 26,103 units.  "The growth in the first two months of the quarter had been 10.2 per cent but the unfortunate incident of fire at a key vendor of the company resulted in lower sales in June 2016," the statement said. "The company hopes to recover the lost sales during the course of the year." Maruti Suzuki shares closed at Rs4,485.25, down 1.44% 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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Will end fast, marry and contest elections, says Irom Sharmila
Irom Sharmila, who had long been on a hunger fast against the Armed Forces (Special Powers) Act, on Tuesday surprised people with her announcement that she will end her fast on August 9, the next date of her court hearing.
 
Making the announcement in the court of the chief judicial magistrate, Imphal west, she further said that she will marry and contest the Manipur assembly elections next year as an independent candidate.
 
The 42-year-old activist has declined food or drink for the last 16 years, seeking repeal of the controversial Armed Forces (Special Powers) Act. She is on forcible nose feeding. 
 
Sharmila began a hunger strike in November 2000, following the killing of 10 civilians by security forces. She was arrested by the Manipur government in 2000 under section 309 of the Indian Penal Code, which prohibits an attempt to commit suicide.
 
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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COMMENTS

anil r vanjari

10 months ago

Respected Sharmila Madam,

Wish you all the best for your health and meaningful activities in future.
Hope this country will recognise your sacrifice made so far and support you thru thoughts and action too.

Won arbitration case against India, says Devas Multimedia
India has lost its arbitration case in an international tribunal against Bengaluru-based Devas Multimedia Private Ltd for cancelling its space/satellite contract with the government-owned Antrix Corporation, Devas said on Tuesday.
 
In a statement, Devas said: "A Permanent Court of Arbitration tribunal has found that the government of India's actions in annulling a contract between Devas and Antrix Corporation Ltd., and denying Devas commercial use of S-band spectrum, constituted an expropriation."
 
The ruling on Monday was the second by an international tribunal arising out of the cancellation of the contract between Devas and Antrix, the commercial arm of Indian space agency Indian Space Research Organisation (ISRO), the statement added.
 
The Hague-based tribunal, which regularly takes cases involving states, including investment treaty claims brought under the arbitration rules of the United Nations Commission on International Trade Law (UNCITRAL), also found that India breached its treaty commitments to accord fair and equitable treatment to Devas's foreign investors.
 
According to Devas, the unanimous decision included the arbitrator appointed to the tribunal by India.
 
Reacting to the development, G.Madhavan Nair, who was ISRO Chairman when the deal was signed, told reporters in Thiruvananthapuram that all this happened because of the UPA-2 government.
 
S. Rakesh, Chairman-cum-Managing Director of Antrix Corporation Limited, was not available for comments.
 
In an earlier decision, an International Chamber of Commerce (ICC) tribunal in 2015 found unanimously that Antrix's repudiation of the contract was unlawful, and awarded Devas damages and pre-award interest of approximately $672 million, plus post-award annual interest accruing at 18 per cent until the award is paid in full.
 
The courts in Britain and France have recognised the ICC award and held it to be enforceable.
 
According to Devas Chairman Lawrence Babbio, with the PCA award, two international tribunals have now unanimously agreed that financial compensation should be paid after annulment of Devas's rights.
 
"Other courts in France and the United Kingdom have agreed that the award against Antrix ought to be enforced. We prefer a mutually agreeable resolution of this matter. But until that occurs, Devas and its investors will continue to press their claims before international tribunals and in courts around the world," Babbio was quoted as saying in the statement.
 
The PCA tribunal unanimously found that by annulling the contract in 2011 and denying the commercial use of S-band spectrum, the Indian government expropriated the investments of Devas's foreign shareholders and also acted unfairly and inequitably, thus making it liable to pay financial compensation.
 
Antrix entered into an agreement with Devas in 2005 for the long-term lease of two ISRO satellites operating in the S-band.
 
However, the then United Progressive Alliance government cancelled the controversial contract in February 2011, invoking sovereignty and decided to use the advanced satellite for the country's strategic use.
 
Under the annulled deal, Antrix was to lease satellite transponders to Devas for allowing it to offer digital multimedia services using the S-band wavelength (spectrum), reserved for strategic purpose.
 
The space agency launched the GSAT-6 on August 27, 2011 from its spaceport at Sriharikota in Andhra Pradesh, about 90 km north of Chennai, as a communication satellite, using a heavy rocket.
 
In June 2016, the Enforcement Directorate (ED) had issued a notice to Devas for alleged violation of foreign exchange laws involving around Rs 1,200 crore.
 
According to a government statement, Devas Multimedia is suspected to have received foreign direct investment of Rs 578.54 crore between May 2006 and June 2010 from various overseas investors, including CC Devas Mauritius Ltd, Telecom Devas Mauritius Ltd, Deutsche Telkom Asia Pvt. Ltd. and Devas Employees Mauritius Pvt. Ltd. in violation of the provisions of the Foreign Exchange Management Act.
 
The ED said the share subscription agreements entered by Devas Multimedia with the investors contained clauses relating to settlement of disputes in courts other than those in India and applicability other than Indian laws in matters of dispute, and thus, the FDI received by the firm was contrary to the conditions specified in the approvals granted by Foreign Investment Promotion Board.
 
The extent of contravention on the said count is Rs 578.54 crore, the ED said.
 
The ED also charged Devas Multimedia with contravening the FDI regulations under FEMA for assuring foreign investor an annual eight per cent priority dividend in addition to other dividends on cumulative basis.
 
The investments received by the Indian company with such assured returns is Rs 571.72 crore, the statement said.
 
According to the ED, Devas, for one tranche of receipt of funds, issued a security akin to an External Commercial Borrowing (ECB) promising higher returns than the ceiling fixed by the Reserve Bank of India. The extent of violation is Rs 67.5 crore, the ED said.
 
According to the probe agency, a show cause notice has been issued to the Indian investors, the persons responsible in the Indian company, including its directors and foreign investors.
 
The ED has initiated adjudication process. In case the alleged contravention is proved in the adjudication proceedings, the noticees are liable for penalty under FEMA, which may be imposed up to thrice the sum involved in such contravention.
 
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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