Stocks
S&P BSE Factor Indices will follow new methodology from September
Asia Index Pvt Ltd, a partnership between S&P Dow Jones Indices LLC, and BSE Ltd says it has changed methodology of its S&P BSE Factor indices. The new changes will come into effect from September 2016.
 
Here are the new changes...
 

User

SAT asks SEBI Member to pass order within two weeks in Adventz Finance case
The Securities Appellate Tribunal (SAT) has asked Whole Time Member (WTM) of Securities and Exchange Board of India (SEBI) to pass within two weeks an order in the Adventz Finance Pvt Ltd case. This follows refusal by Adventz Finance to avail fresh opportunity of hearing before the concerned WTM of SEBI.
 
In its order issued on 8 August 2016, the SAT Bench of Justice JP Devadhar and Dr CKG Nair, said, "...If the WTM of SEBI deems it fit to confirm the ex-parte ad-interim order, then the WTM of SEBI shall consider the alternate plea of the appellant (Adventz Finance) to trade in the cash segment in the light of the order of this Tribunal in Appeal No50 of 2016 dated 4 March 2016."
 
Although the SAT order does not mention the WTM's name, it is clear that the order was that of Rajeev Kumar Agarwal. He is one of the two WTMs at SEBI.
 
The Tribunal also made it clear that in case, the WTM of EBI fails to pass an order within two weeks, then the ex-parte ad-interim order passed on 20 August 2015 qua the appellant would come to an end without reference to the SAT.

User

Slowdown in IT sector?
US-based information technology (IT) company Cognizant Technology Solutions has cut its US dollar revenue growth guidance to 8.5%-9.5% year on year (y-o-y) from 10%-13% for CY2016. Cognizant has forecast revenues from $13.47 billion to $13.60 billion for CY2016 versus $13.65 billion and $14 billion, respectively, earlier. This has been due to demand pressures and slowdown in discretionary spending. Coming to the third quarter, Cognizant has given a muted guidance of merely 1.8%-3% quarter-on-quarter (q-o-q) growth.
 
Cognizant’s revenues for the second quarter of this year rose by 5.2% quarter on quarter (q-o-q) to $31.4 billion. Its key verticals including healthcare and banking and financial services (BFSI) rose by 4.9% q-o-q and 5.1%, respectively. 
 
 
According to Religare Capital Markets Ltd, the operating margin (OPM) of Cognizant for the second quarter stands at around 20%. The margins have been stable over the last 10 quarters, hovering at around 19-20%. The net margins too have been stable over the last nine quarters in the range of 12.5-14.8%. However, the net margins have declined to 7.5% in the second quarter of the current calendar year. 
 
The report from Religare concludes that the growth risk for Indian IT remains high, which may translate into margins in the absence of material depreciation in rupee. The q-o-q growth for different segments for the second quarter stood in the range of 4.4%-5.1%. The quarterly growth stood at 5.1%, 4.9% and 4.4% respectively for BFSI, healthcare and manufacturing sectors respectively. 
 
On the positive front, Cognizant, which earns majority of its revenues in India, have grown at a higher pace than the Indian IT sector. Other domestic IT companies too are suffering from a slowdown in revenues. Infosys has also lowered its guidance in constant currency terms earlier. This has been reflected in the Nifty Information Technology (IT) Index, which has been flat this calendar year. In contrast, the benchmark index has risen by 9%. The Nifty IT Index was relatively flat, falling by 0.10% Monday. 

User

COMMENTS

athresh kumar

4 months ago

you have guessed it right . Wait for one more quarter to see the fireworks

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)