Stocks
Nifty, Sensex to pause for breath – Thursday closing report
We had mentioned in Wednesday’s closing report that Nifty, Sensex were likely to head higher. The major indices of the Indian stock markets rallied on Thursday and closed around 1% higher than Wednesday’s close. The trends of the major indices in the course of Thursday’s trading are given in the table below:
 
 
Key Indian equity market indices opened higher on Thursday in line with global peers and taking positive cues from implementation of the Seventh Pay Commission. Asian markets on Thursday were trading in the green. Chinese stocks opened mixed on Thursday, with the benchmark Shanghai Composite Index opening flat at 2,931.48 points Shanghai Composite closed at 2,929.61, down 0.07%. Tokyo shares opened higher after anxiety over Japanese economy on account of Brexit and the weakening yen started declining. The Nikkei however, ended flat. Other international markets were also in the green. US stocks closed higher, buoyed by gains in oil prices, as global markets continued to rebound from previous sharp losses after Britain's vote to leave the European Union (EU).
 
By the end of trading on Thursday, market analysts pointed out that short covering on the back of latest key economic decisions, combined with positive global cues and a firm rupee, propelled the Indian equity markets into making healthy gains. Sector-wise, all the sub-indices witnessed healthy buying which was led by banking, automobile and capital goods stocks. The BSE market breadth was tilted in favour of the bulls -- with 1,598 advances and 1,011 declines. The equity markets gained on the back of reduced uncertainty over the modalities of Britain's exit from the European Union (Brexit). Investors were also hopeful that international central banks might go in for major stimulus measures to protect growth as a result of Brexit. Further, higher global crude oil prices and a firm rupee enhanced investors' risk-taking appetite.
 
The hardcopy peripherals market in India dropped 2.2 per cent sequentially in the first quarter of this year and reached 795,451 units in terms of shipments, says market research firm International Data Corporation (IDC). Hardcopy peripherals (HCP) includes printers, multifunction peripheral (MFP), and digital copiers. However, the market for laser printers witnessed a remarkable sequential growth of 15.9% in the same quarter, the report said. "In the absence of substantial demand from government and consumers in Q1 2016, the overall HCP market witnessed weak buying as the sentiments were not positive. However, the enterprise segment witnessed some growth and is expected to pick up pace in the coming quarters,” Maninder Singh, Market Analyst at IDC India, said in a statement. Among major vendors, HP managed to achieve 44.7% shipment share and remained as the market leader in India.  HP was followed by Epson and Canon with 19.1% and 16.6% share respectively, the report said. The IT market which is dependent on exports (and imports for domestic sales) is likely to face uncertainty with currency markets swinging in the wake of the Brexit. Attractive pricing and maintaining real operating margins are likely to be challenging issues for IT vendors in India.
 
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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No relief in sight from high prices of pulses
There seemed to be no respite from high prices of pulses like Urad and gram on Thursday as paucity of stocks and restricted supply continued to push up the wholesale prices.
 
At the bulk purchase markets in New Delhi and parts of northern India, there have been reports of overall rise in prices of Urad and Urad Chilka dal by about Rs 100 per quintal.
 
The prices of Urad on Thursday shot up to Rs 10,800-Rs 12,300 per quintal depending on varieties, a source in the Union Food Ministry said.
 
Last week, there was a modest drop in wholesale prices of pulses, the source said.
 
The wholesale price of gram and Kabuli gram also ended higher and advanced on average by Rs 200 per quintal on the backdrop of strong demand from retailers.
 
At the retail market, prices of pulses were Rs 190-200 per kg.
 
In the national capital, gram bulk price rose further by Rs 200 to Rs 7,600, sources said.
 
The prices of Masoor dal small stood around Rs 6,350 per quintal while Masoor local was about Rs 6,600.
 
However, easing demand resulted in drop in prices of maize by about Rs 50 per quintal. Traders also feel there are ample stocks of maize.
 
In New Delhi and other parts of north India, bulk price of maize fell by Rs 50 to around Rs 1,675 per quintal, sources added.
 
Faced with recurring demand-supply issues vis-a-vis pulses, India has requested Mozambique to consider if it can supply Tur dal (or Arhar) for the next five years on a government-to-government basis.
 
India has offered to buy Tur dal from Mozambique at a minimum support price (MSP) plus carrying and transportation cost, the source said.
 
The MSP of Tur dal has been fixed at Rs 5,050 per quintal, which includes a bonus of Rs 200 for 2016-17 crop year (July-June).
 
Mozambique produces around 70,000 tonnes of pulses, including Tur, in a year.
 
India, meanwhile, is also negotiating with Myanmar for long-term supply of Tur dal.
 
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

Dr. Rakesh Goyal

8 months ago

This price rise is all synthetic by artificially creating shortage and hoarding. Further, if MSP is Rs. 5050 per quintal, why the wholesale prices are Rs. 10800-12300 per quintal, why the retail prices are Rs. 190-200 . Unjust enrichment of middlemen/businessmen and may be also of neta and babus. दाल में काला नहीं, पूरी दाल ही काली है.

D S Ranga Rao

8 months ago

For all that hype of Minimum Government and Maximum Governance, the government has hopelessly failed to check not only the galloping prices of pulses but also free availability of other food grains. Now with the approval of the 7th CPC pay scales, the prices of the food grains go up noholds barred.

Banks need to write off losses between 40% and 70% in 240 firms: Study
Banks would need to write off their losses between 40 and 70 per cent in at least 240 companies, which are under heavy debt mostly in steel, construction, power, textiles and infrastructure, a study said.
 
The study, jointly conducted by Associated Chambers of Commerce and Industry of India (Assocham) and India Ratings and Research (Ind-Ra), also suggested asset reconstruction to cut their losses with the help of revamped asset reconstruction companies (ARCs) sector. 
 
This will help banks achieve a sustainable level of bank debts, going down as non-performing assets (NPAs), said the study, which will be released at an event here on Friday, according to an Assochamstatement.
 
The study noted that the gross non-performing advances rose sharply to 7.6 per cent of gross advances in March 2016 from 5.1 per cent in September 2015.
 
"Asset reconstruction companies need re-positioning; the issue of bad debt amounting to Rs 6 trillion would need ARCs to re-orient themselves, if they are to facilitate the resolution process,” the study said, adding that the current capital position of ARCs can at most take care of 10 per cent of the bad debt in the Indian banking system. 
 
“The number of ARCs has been inadequate vis-a-vis the need. However, that scenario is about to change. In the Union Budget 2016-17, 100 per cent foreign direct investment (FDI) has been allowed for ARCs which is expected to substantially improve their capital base,” said Assocham President Sunil Kannoria..
 
“Moreover, the introduction of the Bankruptcy Code has now positioned ARCs as a very important intermediary between lenders and borrowers,” he said.
 
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

Dr. Rakesh Goyal

8 months ago

These companies must undergo forensic audit. Mostly, companies become sick but promoters remain rich and become more healthy.

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