The Nifty has to manage to stay above 6305 for the upmove to continue
With the positive closing of the US indices yesterday, the indices back home opened much higher and hit the days high immediately. The Sensex opened at 21,367 and hit the high of 21,379 its highest since 9 December 2013. Nifty opened at 6,341 and hit a high of 6,347. The strong opening soon lost its fizz and started moving down. The Sensex hit a low 21,200 and closed at 21,265 (down 24 points or 0.11%) while the Nifty hit a low of 6,300 and closed at 6,319 (down 2 points or 0.03%). The NSE recorded a volume of 54.39 core shares. Over the short-term, the four-day old move seems to have matured and the indices would give up some gains. The first support is at 6300 for Nifty and the second support is at 6280. A fall below 6233 would mean a deeper decline.
Among the other indices on the NSE the top five gainers were Metal (1.84%); Commodities (0.71%); IT (0.61%); Realty (0.52%) and PSE (0.27%) while the top five losers were Consumption (1.07%); Infra (1.03%); Nifty Junior (0.96%); Pharma (0.92%) and FMCG (0.85%).
Of the 50 stocks on the Nifty, 27 ended in the green. The top five gainers were HCL Technologies (4.63%); Coal India (2.52%); UltraTech Cement (2.45%); Hindalco (2.03%) and Wipro (1.75%). The top five losers were Bharti Airtel (4.96%); Tata Motors (2.05%); Sun Pharma (1.49%); ONGC (1.49%) and Ranbaxy (1.48%).
Of the 1,518 companies on the NSE, 558 closed in the green, 883 closed in the red while 77 closed flat.
The Reserve Bank of India on Wednesday, 15 January 2014, announced new rules for setting incremental provisioning and capital requirements for bank exposures to entities with unhedged foreign currency exposures. The provisioning rule requirements will be calculated as per the ratio of likely loss due to foreign exchange movement to a company's earnings before interest and depreciation (EBID), the RBI circular said on Wednesday, 15 January 2014.
After World Bank raised its global growth forecasts, the International Monetary Fund sees global growth to pick up this year. Though deflation is a "rising risk" as long as economic growth stays below what policy-makers believe is optimal. IMF Managing Director Christine Lagarde said that momentum in the world economy in the second half of last year should continue in 2014. The Washington-based fund plans to raise its forecast for global growth when it releases a report later this month.
Economic recovery in India will be slow and will come in the second half of 2014, Moody's Investors Service said today, adding that this will be possible only if the global expansion rises. There is another rider in Moody's assessment. It said the outcome of general elections due in April-May can affect India's growth. Moody's has assigned the lowest investment grade to India. It said the outlook on ratings will remain stable in south Asia.
The Federal Reserve said "moderate" growth across most of the US last month was buoyed by gains in holiday spending by consumers, an improving labor market and strength in manufacturing.
The Federal Reserve Bank of New York said that its general business conditions index jumped to 12.51 in January from an upwardly revised 2.22 in December.
The US producer price index rose 0.4% in December, the biggest increase since June, recovering from a 0.1% decline in November and was 1.2% higher from a year earlier. Core PPI was up 0.3% in December and rose 1.4% on a year-over year basis, compared to expectations for a monthly increase of 0.1% and an annual gain of 1.3%.
Asian indices had a mixed performance. Hang Seng was the top performer which rose 0.37% while Jakarta Composite was the top loser which fell 0.66%.
European indices had a mixed performance while US Futures were trading flat.
The US FDA does not have a formal definition of ‘natural’ with respect to foods other than to state that the term on food labels means the product must not contain anything artificial or synthetic
The US Food and Drug Administration (FDA) have declined a request made by three different federal judges to determine whether food products containing ingredients with genetically modified organisms (GMOs) may be labelled “natural.”
In a letter to the judges who are presiding over separate class actions where food manufacturers are being sued for using the term, Leslie Kux, assistant commissioner for policy at the FDA, said that if the agency was going to revoke or amend its current policy it would “likely embark on a public process” instead.
Currently, the FDA does not have a formal definition of “natural” with respect to foods other than to state that the term on food labels means the product must not contain anything artificial or synthetic.
The letter sent Jan. 6 also notes that if the FDA was to reconsider its policy on defining “natural,” it would have to look at many issues other than just whether the foods include GMOs. The agency, for example, would have to consider an array of modern food production technologies, such as animal husbandry and use of growth promotion drugs. It would also have to consider food-processing methods, such as irradiation, as well as First Amendment issues.
Kux also wrote that the FDA has to prioritize food safety and health issues, which occupy most of the limited FDA resources on food matters at this time.
Companies have come under increasing pressure in recent years to be more transparent about whether GMOs are in foods. In June, Connecticut became the first state to require food manufacturers to label foods that contain GMOS (with some caveats, though). Other states are reviewing similar legislation. Consumers are also turning to class action lawsuits and putting pressure on companies directly through social media to take out genetically modified ingredients or label the foods as having them.
Still, if you see the terms “natural” or “all natural” or “100 percent natural” on the front label of a product, you’ll want to check the ingredients on the back label to decide for yourself. More information about the term “natural” can be found here.
LIC Housing Finance’s net profit grew 38% to Rs327 crore as its net interest income rose 24%
LIC Housing Finance Ltd, one of the largest housing finance company in the country promoted by Life Insurance Corporation (LIC) of India, recorded growth of 38% in its net profit to Rs327 crore from Rs236 crore in the same period last year. While its revenues in December quarter grew 21% to Rs2,343 crore from Rs1,935 crore during the same period last year.
LIC Housing Finance net interest income (NII) for the December quarter grew 24% to Rs458 crore from Rs370 crore same period last year. Net interest margins stood at 2.16% compared with 2.09% in same period last year.
During the third quarter, the company disbursed loans of Rs5,832 crore compared with Rs5,508 crore for the same period last year, a growth of 6%.
Segment-wise the outstanding mortgage (loan asset) portfolio registered a growth of 19% as on 31 December 2013 at Rs86,422 crore as against Rs72,704 crore in same period last year.
Individual loan portfolio stood at Rs83,839 crore as against Rs69,885 crore, a growth of 20%, while developer loan portfolio stood at Rs2,582 crore as on 31 December 2013 as against Rs2,819 crore in same period last year.
LIC Housing Finance gross total gross non performing assets (GNPAs) including developer loans stood at 0.40% compared with 0.52% in same period last year. Similarly, its non performing assets (NPAs) stood at 0.80% as on 31 December 2013 from 0.74% last year.
LIC Housing Finance closed Thursday marginally down at Rs211 on BSE, while the S&P BSE Sensex too closed marginally down at 21,265.
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