Stocks
Nifty, Sensex uptrend continues – Monday closing report
We had mentioned in Friday’s closing report that Nifty, Sensex were to head higher. The major indices of the Indian stock markets were range-bound on Monday and closed with small gains over Friday’s close. NSE trading volumes were also on the lower side. The trends of the major indices in the course of Monday’s trading are given in the table below:
 
 
Positive global markets, along with hopes of parliamentary approval for a major economic legislation buoyed the Indian equity markets on Monday. Sector-wise, healthy buying was witnessed in automobile, oil and gas, and consumer durables stocks. The BSE market breadth was tilted in favour of the bulls -- with 1,542 advances and 1,212 declines and 154 unchanged. On the NSE, on Monday, there were 900 advances, 725 declines and 230 unchanged. According to market analysts, gains were capped due to caution ahead of the Reserve Bank of India's monetary policy review.
 
FMCG major Britannia Industries Ltd. on Monday reported a 13% rise in its consolidated net profit to Rs219.13 crore in the quarter ended June 30, 2016, as compared to Rs193.66 crore in the corresponding period in 2015. Its consolidated revenue in the quarter under review grew 8% to Rs2,162 crore against Rs1,998 crore in the year-ago period. The share price of the company closed at Rs3,143.00, up 9.07% on the BSE.
 
The Lok Sabha on Monday took up for discussion the amendments to the Goods and Services Tax Bill with Finance Minister Arun Jaitley stating that there was a wide consensus on the legislation. “There has been a wide consensus. A large number of political parties have come forward in its support,” Jaitley said.  The Rajya Sabha had last week unanimously passed the Constitution amendment bill to pave the way for the introduction of a pan-India Goods and Services Tax regime. The upper house passed what is called the Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014, with 203 ayes in the final vote.  The AIADMK staged a walk-out before the bill was passed in the upper house. The government had moved amendments to the bill earlier passed by the Lok Sabha to accommodate some concerns of opposition parties. The stock markets in India are in favour of the bill being passed and are bullish in anticipation.
 
Moody's said on Monday the Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions Bill, 2016, and the Insolvency and Bankruptcy Code, 2016 (bankruptcy), will lead to structural improvements in banks dealing with bad assets. While the bankruptcy law has been enacted, the Enforcement of Security Interest and Recovery of Debts Bankruptcy Code, 2016, has to be passed by the Rajya Sabha after it was cleared by the Lok Sabha. The Enforcement of Security Interest and Recovery of Debts Bankruptcy Code, 2016, is a credit positive for the Indian banks as it aims to expedite the recovery and resolution of bad debts, said a statement issued by Moody's Investors Services. "Weakness in current processes for bad debt resolution has been a key structural credit challenge for Indian banks. There are currently about 70,000 cases pending in debts recovery tribunals (DRTs), and these cases have been pending for many years owing to various adjournments and prolonged hearings," Moody's said. According to Moody's, the provisions relating to promotion of asset reconstruction companies for banks to off-load their non-performing assets (NPA) and prioritise debt due to secured creditors over all other debts and claims (including government claims) are credit positive features for the Indian banks. The Bank Nifty closed at 18,939.45, up 0.07%.
 
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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Bug fear looms in 900 million Android smartphones: Report
Researchers have reportedly found major security flaws in chips being used in nearly 900 million Android smartphones globally that could give cyber criminals complete access to the data.
 
According to the team from Israel-based software and hardware giant Check Point, the bugs were uncovered at the software running on chipsets made by US firm Qualcomm, BBC reported on Monday.
 
Qualcomm processors are found in about 900 million Android phones, Check Point said, adding that there is no evidence of the vulnerabilities currently being used in attacks by cyber thieves.
 
"I am pretty sure you will see these vulnerabilities being used in the next three to four months," Michael Shaulov, head of mobility product management at Checkpoint, was quoted as saying.
 
The flaws, which were found in software that handles graphics and in code that controls communication between different processes running inside a phone, were revealed after six months of work to reverse engineer Qualcomm's code.
 
The attackers can exploit the bugs to gradually take control over a device and gain access to data. "It is always a race as to who finds the bug first, whether it is the good guys or the bad," Shaulov added.
 
According to the report, Check Point handed information about the bugs and proof of concept code to Qualcomm earlier this year.
 
In response, Qualcomm is believed to have created patches for the bugs and started to use the fixed versions in its factories.
 
As a security measure, Android owners should download apps only from the official Google Play store.
 
According to Check Point, affected devices include: BlackBerry Priv and Dtek50, Blackphone 1 and Blackphone 2, Google Nexus 5X, Nexus 6 and Nexus 6P, HTC One, HTC M9 and HTC 10, LG G4, LG G5 and LG V10, New Moto X by Motorola, OnePlus One, OnePlus 2 and OnePlus 3, US versions of the Samsung Galaxy S7 and Samsung S7 Edge and Sony Xperia Z Ultra.
 
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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CAG report slams ONGC for incorrectly reporting crude oil production
The Comptroller and Auditor General (CAG) of India has slammed the "over-reporting and incorrect reporting" of crude oil production by the ONGC, and recommended that the company should not include items like condensate, basic sediment and water as crude oil production.
 
"The over-reporting and incorrect reporting of crude oil production has presented an inaccurate picture of performance of the company on crude oil production and has led to the company sharing an additional subsidy burden of Rs 18,787.43 crore from 2012 to 2015," said the CAG report tabled in Parliament on Monday.
 
It said the "measurement and metering system" for crude oil production in the state-run company also had "several infirmities".
 
The CAG report recommended that the company should report condensate as a "separate stream as opined by the international consultant".
 
The official auditor maintained that in western offshore for the ONGC operations, the reported production quantity measured at offshore platforms were higher than the actual sale quantity "with the bulk of differences in volume arising during transportation of crude oil in a closed pipeline".
 
The CAG added: "Reasons for the differences should have been investigated and corrective action should have been taken."
 
Moreover, the report said: "In onshore areas, it was noticed that to reconcile over-reported production, fictitious inflating of closing stock of crude oil, erroneous reporting of theft of crude oil and reporting non-existent pit oil as stock were adopted."
 
The CAG said: "The company should strictly adhere to prescribed schedules laid down for calibration of all crude oil measuring devices such as storage tanks and Mass Flow Meters, Turbine Meters, Auto Suppliers etc in both offshore and onshore assets to ensure accuracy of their measurement".
 
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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