Stocks
Nifty, Sensex under pressure – Wednesday closing report
Nifty has to close above 7,420 for the downtrend to end
 
We had mentioned in Tuesday’s closing report that Nifty uptrend has broken and that a close below 7,400 would push benchmark lower. Major indices in the Indian stock markets suffered a sharp correction again on Wednesday with losses, at close, in the range of 1.26%-1.55% over Tuesday’s close. 
 
 
Aluminium producer National Aluminium Company Ltd (Nalco) on Wednesday said it has developed a new corporate plan under a new business model to withstand market onslaughts and keep the company afloat with profitability. "Given the tough going in the market, Nalco, a leading foreign exchange earner of the country amongst the central public sector undertakings, has developed a new corporate plan that will withstand market onslaughts and keep it afloat with profitability," Nalco CMD Tapan Kumar Chand said in a statement. He said the new business model will insulate Nalco from the vagaries of the market. It will also strengthen the company's aluminium business by reducing the cost and increasing production through modernisation and brownfield expansion and upstream and downstream integration, he added. Besides, the model envisages diversification into green power, nuclear power, rare metal like titanium, recovery of iron from red mud waste and merchant mining that are immune to downturns in the metal market. 
 
The union cabinet on Wednesday gave its approval to allow the Railways Ministry to form joint venture (JV) companies with the state governments to mobilise resources for undertaking various rail infrastructure projects in states, an official statement said. “The joint venture companies would be formed with equity participation of Ministry of Railways and state governments concerned. Each joint venture would have an initial paid up capital of Rs.100 crore based on the quantum of projects to be undertaken,” the statement said. The union cabinet meeting was held under the chairmanship of Prime Minister Narendra Modi. “The Ministry of Railways’ initial paid-up capital will be limited to Rs.50 crore for each state. Further infusion of fund or equity for the purpose of the projects shall be done after approval of the project and its funding at the level of appropriate competent authority,” it said. The JV can also form project-specific special purpose vehicle with equity holding by other shareholders like banks, ports, public sector undertakings and mining companies. The statement said the JV exercise would ensure greater participation of state governments in implementation of railway projects both in terms of financial participation as well as decision making process.  “This will also facilitate in faster statutory approvals and land acquisition. Besides travelling people, various cement, steel, power plants etc. would get the necessary rail link for transportation of their raw material and finished products,” it added.
 
Reliance Group chairman Anil Ambani on Wednesday announced an aerospace centre for research, development and innovation in the field, promising some 1,500 highly skilled jobs. "We've invested nearly Rs.5,000 crore in Karnataka across a wide array of sectors from telecom to energy to entertainment to financial services and now defence and created nearly 5,000 jobs," Ambani told the inaugural event of the "Invest Karnataka Summit". "But we are ready for much more. And I am here today to make a big commitment in that direction by announcing the Dhirubhai Ambani Centre for Innovation and Research in Aerospace," Ambani added. According to him the new initiative, to come up under the Reliance Defence banner, will be a knowledge-driven technology venture to symbolise the "Bengaluru spirit" of innovation. It is slated to come up at Whitefield on the outskirts of this tech-driven city. Last year, the group had announced the Dhirubhai Ambani Aerospace Park, spread over 400 acres at the multi-modal international cargo hub and airport at Nagpur, to create an ecosystem for the indigenous manufacture of aerospace components.  It intends to form a cluster of manufacturers for major aircraft components, spares and avionics requirements of the aerospace industry. Reliance Infrastructure shares closed at Rs435.30, down 3.12% on the BSE.
 
Global software major Wipro Ltd. will hire 25,000 more techies in Karnataka, especially Bengaluru, its chairman Azim Premji said on Wednesday. "We will add 25,000 more IT jobs in Karnataka where we already employ over 55,000 people and are expanding each of our businesses," Premji said at the state's global investors meet (GIM) in Karnataka. The city-headquartered Wipro group has global IT services, consumer care and lighting, aerospace and healthcare systems business with the US-based GE, among others. Wipro shares closed at Rs556.50, down 1.77% 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:
 

User

Rs.5,000 crore to be infused in state-run banks in Q4: Official
New Delhi : The government will infuse around Rs.5,000 crore into state-run banks in the fourth quarter ending March 2016 to strengthen their balance sheets, a senior official said on Wednesday.
 
"As committed, banks will get infusion of funds in the fourth quarter of this fiscal. Banks will get about Rs.5,000 crore," Financial Services secretary Anjuly Chib Duggal told reporters on the sidelines of an event here.
 
Under the Indradhanush recapitalisation plan announced by the government last year, it will pump in Rs.70,000 crore in state-owned banks over four years, while they will have to raise an additional Rs.1.1 lakh crore from the markets to meet their capital requirements under the Basel III risk norms put in place after the US financial meltdown in 2008-09.
 
As per the Indradhanush plan, public sector banks will get Rs.25,000 crore in this fiscal and also in the next financial year. A further Rs.10,000 crore each would be infused in 2017-18 and 2018-19.
 
Duggal said banks were addressing last-mile connectivity issues vis-a-vis widening the scope of financial inclusion, social security and direct benefit transfer, while her department is in regular discussion with them to sort out various problems quickly.
 
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.

User

COMMENTS

Chandragupta Acharya

1 year ago

SS Tarapore, who passed away a couple of days ago, had suggested banks should curtail lending and shrink their Balance Sheets. This is the only sensible & politically palatable solution to fix these banks, other options such as selling them off being impossible to execute. Public sector banks should completely exit large corporate loans, especially term loans and project finance. This will improve capital adequacy without any cost to the taxpayer & harm to the economy.

Ramesh Poapt

1 year ago

yesterday's article in the matter was superb!
only yesterday, Jayant Sinha declared in an interview that banks have 8 lacs crores of stressed assets!
how much the Govt will extend support?!
Any guess about financials of PSUs after 2-3 yrs?!one more article on this please!

Experts differ on tracking deliveries to prevent female foeticide
New Delhi : Union minister Maneka Gandhi's enunciation of an "alternate point of view" that a foetus be tracked from conception to save the girl child has been welcomed by many experts while others are skeptical about it.
 
Inaugurating the All India Regional Editors' Conference in Jaipur on Monday, the minister said: "There is an alternate point of view that if each pregnancy could be registered and the sex of the foetus made known to parents and if it happens to be a female, the delivery should be tracked and recorded. Such a system will help ensure that a foetus is not aborted only because it is a female."
 
She also said that this issue needs further debate and had requested the media for suggestions.
 
The national capital's sex ratio recorded in the 2011 census was 866 females to 1,000 males. But according to the government's birth and death registration report for 2013, the ratio improved slightly to 895:1,000. The average for the whole country was 940:1000 in 2011.
 
"It is an excellent new approach to the problem. It is a different view and a new line of thought as compared to previous thought. Some states have shown that trends are reversing and there is an increase in female ratio. It is not that the previous method is wrong," Dr. Neerja Bhatla, professor of Obstetrics and gynaecology at the All India Institute of Medical Sciences (AIIMS), told IANS.
 
"But to implement the idea it would demand huge infrastructure, logistics and several other parameters. They have to track each and every pregnancy and births in the country, track manpower required for ultrasound, track all the data, adhar cards and how the system works. This is a huge task but nothing is insurmountable. It is about how much we need, when and how. This is about men, money and management. It requires a lot of thinking," she added. 
 
Bhatla also added that looking at the country's narrow health-care budget and the prevailing budget crunch to deal with many diseases, including cervical cancer, it is going to be a huge challenge for the government. 
 
"It is also for the government to decide whether it is to br implemented in the whole country or only in those states where reverse trends have not been seen," she added. 
 
Nitisha Sharma of Inaya Foundation, a NGO, said the suggestion would not "practical" in a state like Rajasthan, which suffers from a skewed sex ratio - 883 girls for 1,000 boys. Girls in the desert state, which is the largest in term of area, are considered a liability.
 
"Girls are not welcome in parts of the state. If you look at the sex ratio it has shown further drop. The sex ratio which was 909, 10 years back, declined to 883 in the last census. In these circumstances the move in state like Rajasthan does not seem practical.
 
"Look what happens with sex determination tests. It is illegal, still it is going on. So if gender determination tests are to be allowed then it has to be in a proper way and method with proper planning, polices and regulations so that the girl child is not killed in the womb," Sharma told IANS.
 
Haryana and Punjab are two states which have been notorious for female foeticide among all states in the country in the past nearly three decades.
 
"This will open a pandora's box all over again. With strict laws and monitoring, sex determination tests were not being done openly. If these are allowed again, people with go in for sex determination and then try to find excuses to abort the girl child," Dr. Preeti, a gynaecologist in Chandigarh, told IANS.
 
Five northern states, Haryana (12 districts), Punjab (11 districts), Jammu and Kashmir (five), Uttarakhand (two) and Himachal Pradesh (one) and union territory of Chandigarh (one) account for 32 worst districts in the country in terms of female foeticide.
 
Out of the 100 worst districts in India for sex ratio, Haryana accounted for 12 districts. Neighbouring Punjab has 11 districts among the worst 100.
 
"If sex determination tests are allowed, strict monitoring will have to be done to track the girl child. Otherwise, the foeticide problem will continue," Geeta Kumar, a social activist in rural area of Haryana's Sirsa district said.
 
Haryana, which is at the bottom among all states in sex ratio, recently drew comfort from Prime Minister Narendra Modi's 'Mann ki Baat' radio broadcast where he mentioned that Haryana had been able to slightly reverse the reducing sex ratio.
 
Haryana's sex ratio stood at just 879 females per 1,000 males as per the 2011 Census. The state claimed last month that, for the first time in over a decade, the sex ratio had crossed the 900-mark. The sex ratio, as per claims of the Haryana government, now stands at 903. This is still far lower than the national average of 940 females per 1,000 males.
 
Given Haryana's track record in sex ratio, Modi had chosen Haryana to launch the 'Beti Bachao-Beti Padhao' (save girl child and educate her) campaign from Panipat in Haryana on Jan 22 last year to counter the adverse sex ratio.
 
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.

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 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 and Lion Stockletter)