Nifty headed for 5,000-5,045
The market settled lower this week on concerns about the government’s proposed tax reforms, a depreciating rupee and the weakening macro picture. While the market closed in the green on the first day of holiday-shortened week, the losses kept increasing on the latter three days.
The market closed 2% lower in the week with the Sensex losing 303 points at 16,831 and the Nifty settling at 5,087, down 104 points. The market is likely to see a further slide with the Nifty headed for the 5,000-5,045 area.
The market closed higher on Monday on hopes of a stimulus from the US Fed on the back of weak growth in the world’s largest economy. The market sputtered in the second half of trade and settled flat on Wednesday. The losses increased on the last two sessions on domestic as well as global concerns.
BSE IT (up 3%) and BSE TECk (up 2%) were the main sectoral gainers in the week while BSE Capital Goods and BSE Auto (declined 5% each).
The top Sensex gainers were TCS (up 6%), Cipla, Hindustan Unilever (up 5% each), Wipro and Infosys (up 2%). The main losers were Hero MotoCorp (down 9%), Maruti Suzuki (down 7%); State Bank of India, Coal India and Tata Steel (down6% each).
The Nifty was led by TCS (up 6%); Cipla, HUL (up 5% each), Asian Paints (up 3%) and Wipro (up 2%). The losers on the index were Bank of Baroda (down 10%); Hero MotoCorp, Axis Bank (down 9% each), Maruti Suzuki (down 7%) and Tata Steel (down 6%).
The government has proposed to review the Direct Tax Avoidance Convention (DTAC) to incorporate amendments to the DTAC for prevention of treaty abuse and to strengthen the mechanism for exchange of information on tax matters between India and Mauritius. The review will help India to raise revenue from these foreign investments in the country. India is said to be losing more than $600 million every year in revenue because of the tax treaty, ministry of state for finance SS Palanimanickam informed the Parliament on Friday.
After three months of decline, India’s factory output inched up to 54.9 in April, from 54.7 in March. A reading above 50 shows that the sector is growing, while a reading below 50 means the segment is contracting.
Similarly, driven by a rise in new businesses, services sector growth picked up momentum in April to 52.8, up from 52.3 in the previous month, and business optimism hit its highest level since last June, according the HSBC services PMI survey released on Thursday.
Reflecting a slowdown in the economy, the growth rate of eight core infrastructure sectors dipped to 2% in March and 4.3% during 2011-12 on account of poor performance in crude oil and natural gas.
India’s exports surpassed the target of $300 billion for 2011-12 at $303.7 billion while imports touched $488.6 billion on account of rise in imports of crude oil and gold. The high import bill resulted in a trade deficit of $13.9 billion.
On the global front, US markets witnessed their biggest weekly fall this year on weak economic indicators. Eurozone services and manufacturing output contracted more than expected in April, dampening the prospects of a firm pickup in the world economy.
India, in 2011, made the third greatest number of record applications to Guinness World Records - behind only US and UK. In last five years, numbers of applications have grown 400% with actual record holders increasing by 250%
Pune: Here is a good news for adventure lovers from India, eager to enter the world record books. In order to cope with an ever-increasing number of applications from India, Guinness World Records (GWR), the global authority on record-breaking achievement, has for the first time launched its Indian operations, reports PTI.
It has appointed a dedicated India-based official in response to the country's phenomenal interest in the domain.
"In 2011, India made the third greatest number of record applications to Guinness World Records - behind only US and United Kingdom. Applications from India have grown nearly 400 per cent in the past five years and number of actual record holders have grown over 250 per cent in the same period," said Nikhil Shukla, India representative of GWR based in Pune.
Mr Shukla, who is to report directly to GWR headquarters in London, will focus on meeting the huge demand for record- breaking within India.
GWR is also launching a dedicated Indian website www.guinnessworldrecords.in. The site will be the home of record-breaking for Indian audiences and feature the latest world record news from India and around the world, he added. The website also hosts a free of charge official record application process.
Recent Indian record-breakers making their place in history include the 485 children of Kolkata, who were brought together on 29 January 2012 by the charity TRACKS, to mark the 64th anniversary of the death of Mahatma Gandhi with a peace march which achieved the Guinness World Records title for largest gathering of people dressed as `Bapu'.
Zee TV's popular `Dance India Dance' programme earned its place in the record books with the largest Bollywood dance show which involved 4,428 people at Somaiyya College, Mumbai.
The telecast of `Guinness World Records: Ab India Todega' on private TV channel Colors, hosted by Bollywood star Preity Zinta, led to an 85% year-on-year increase in record applications in 2011. The show is set to be re-commissioned and will return to screens later in 2012, a GWR statement said.
Commenting on the launch in India, Alistair Richards, global managing director for Guinness World Records said, "India is an incredibly important market for Guinness World Records. We have seen record applications growing at an incredible rate year-after-year. For Guinness World Records, establishing our official presence in the India represents our commitment to building on this success and bringing greater focus to the talents and skills of India."
Talking to PTI, Mr Shulka said, "My focus is to promote Guinness World Records as the ultimate authority on record- breaking and human achievement. I believe that India has a wealth of untapped talent which can make our country the leaders in record-breaking success."
Following the RBI's announcements, the Indian banks will be able to offer higher interest rates on NRI deposits in foreign currency
New Delhi: To attract inflows in view of falling rupee, the Reserve Bank of India (RBI) on Friday raised the interest rate ceiling on NRI deposits in foreign currencies by up to 3%, reports PTI.
Following RBI’s announcements, the Indian banks will be able to offer higher interest rates on NRI deposits in foreign currency.
In another notification, the RBI deregulated interest rates on export finance, a development that would help exporters to freely raise money in foreign currency without any limit on interest ceilings.
The RBI’s decisions are aimed at arresting the declining value of the Indian rupee which closed at Rs53.47 against a dollar on Friday.
With regard to foreign currency deposits, the RBI said, “interest rate ceiling on Foreign Currency Non-Resident FCNR (B) deposits of banks has been raised from 125 basis points (bps) (1.25%) above the corresponding LIBOR or swap rates to 200 bps for maturity period of one year to less than three years, and to 300 bps for maturity period of three to five years.”
For one-year, LIBOR (London Inter-Bank Offered Rate) stood at 1.0472%. LIBOR is world's most widely used benchmark for short-term interest rates.
In another notification, RBI said, “it has been decided to allow banks to determine their interest rates on export credit in foreign currency with effect from 5 May 2012.”
Besides these measures, RBI is also reported to have intervened in the forex market by selling dollar.