The Strange Case of Fiberweb
Established in 1985, Fiberweb is a 100% export-oriented spunbond non-woven fabric manufacturer. Once declared a sick unit by the Board for Industrial and Financial Reconstruction (BIFR), it has come out of the purview of BIFR and gained Star Export House status. Being an export-oriented unit (EOU), Fiberweb enjoys tax benefits from the government. Though the company is a 100% EOU, during a...
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Nifty, Sensex Rally to Continue – Wednesday closing report

We had mentioned in Tuesday’s closing report that Nifty, Sensex were likely to rally. The major indices of the Indian stock markets rallied on Wednesday and closed with significant gains over Tuesday’s close. The trends of the major indices in the course of Wednesday’s trading are given in the table below:

 

 
Scrips of public sector banks (PSBs) rose exponentially on Wednesday, a day after the government announced a massive recapitalisation scheme. Almost all the major PSBs (public sector banks) like State Bank of India, Punjab National Bank and Bank of Baroda rose in the band of 20%-40%. Bank Nifty closed 3.36% higher and the S & P BSE Bankex closed at 28,329.12, up 4.71%. On the NSE, there were 615 advances, 898 declines and 59 unchanged. ICICI Bank closed at Rs305.60, up 14.69% and HDFC Bank closed at Rs1,794.50, down 3.79% among the private banks.
 
Today's upmove was based on Tuesday evening's announcement on recapitalisation of Public Sector Banks. Even the maximum (trade) volume during the day on the NSE was concentrated towards the banking counters and especially the large PSBs. Almost all PSBs' stocks like those of SBI, BoB and PNB rose dramatically to touch their new 52-week highs. Many of them had hit 52-week lows just a few days ago. The rise in PSB stocks not only lifted the sectoral index but also the benchmark indices -- BSE Sensex and NSE Nifty -- to touch their all-time highs. 
 
HCL Technologies on Wednesday reported a Rs2,188 crore consolidated net profit for the second quarter (Q2) of fiscal 2017-18, registering 8.6% yearly growth and 0.8% flat quarterly growth in rupees. In a regulatory filing on the BSE, the Noida-based software major said consolidated revenue for the quarter (Q2) under review grew 7.9% yearly and 2.3% quarterly to Rs12,434 crore under the Indian Accounting Standard. Under the International Financial Reporting Standard (IFRS), net income for Q2 at $339 million is up 12.6% yearly but flat (0.7 per cent) quarterly. Revenue in dollar terms grew 11.9% yearly and 2.3% quarterly to $1,928 million for Q2. The company’s shares closed at Rs907.00, down 0.71% on the BSE.
 
For the second consecutive quarter, global software major Infosys Ltd reported that its net hiring was negative in Q2, with more techies quitting than it recruited as in the first quarter of this fiscal. "Our net addition is minus 113 despite recruiting 10,514 people, as 10,627 employees resigned in the second quarter," a company official told IANS here. As a result, the company's headcount worldwide declined again to 198,440 in Q2 from 198,553 quarter ago and 199,829 year ago. According to the employee metrics, consolidated attrition of the company and its subsidiaries increased to 21.4% in Q2 from 21% quarter ago and 20 per cent year ago on annualised basis. Attrition of the parent company (standalone) went up to 17.2% in Q2 from 16.9% in Q1 and 15.7% in the same period year ago. In the first quarter (Q1), negative hiring was 1,811 despite gross addition of 8,645 new people, as a whopping 10,456 resigned, lowering the headcount to 198,553 by June 30 from 200,364 by March 31. Employee utilisation, however, was at an all-time high of 84.7% in Q2. The company’s shares closed at Rs935.40, up 0.93% on the BSE.
 
The General Provident Fund (GPF) and other similar funds will carry an interest rate of 7.8% during 2017-18 with effect from October 1 to December 31 this year. "The government has announced that during 2017-18, accumulations at the credit of subscribers to GPF and other similar funds shall carry interest at the rate of 7.8% with effect from October 1 to December 31. This rate will be in force w.e.f. October 1," an official release said. This is good news for the urban employed and is likely to keep the long term trend in the stock market bullish.
 
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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Nifty, Sensex Likely to Rally – Tuesday closing report

We had mentioned in Monday’s closing report that Nifty, Sensex were still range-bound. The major indices of the Indian stock markets were range-bound on Tuesday and closed with small gains over Monday’s close. The trends of the major indices in the course of Tuesday’s trading are given in the table below:

 

 
Global cues, along with buying in banking stocks and expectations of positive quarterly results, buoyed the key Indian equity indices during the mid-afternoon trade session on Tuesday. According to market observers, buying was witnessed in banking, oil and gas and metal stocks. On the NSE, there were 936 advances, 743 declines and 295 unchanged.
 
Hiring activity in the banking and financial services sector witnessed a 21% growth during September this year compared to the same period last year, a report by job portal Naukri.com said. Even as the job market in the country remains "volatile", Naukri Jobspeak Report, a monthly analysis of job listings on the portal, shows the overall job market has seen 3% growth in September, compared to the same period last year. "Job market continues to be volatile. The Jobspeak index for September has shown a three per cent year-on-year growth driven by growth in sectors like banking, financial services, insurance, industrial products and auto and engineering," said Chief Sales Officer of Naukri.com V Suresh in a statement. The "uncertainty" in the job market is likely to continue for a few more months, he added. The S & P BSE Bankex closed at 27,054.95, up 0.62% on the BSE.
 
Post-demonetisation and implementation of the Goods and Services Tax (GST), the current economic slowdown has "bottomed out" and the recovery of the economy would "critically depend on the initiatives" the government takes from now onwards, according to a report. The report also said the quantum of impact of the structural reforms - demonetisation and GST - was expected but the quantum was not estimated and hence the current slowdown in the economy is painful. "We believe that the slowdown has bottomed out, however, the stage and pace of recovery would critically depend on the initiatives that the government takes from now onwards to boost the growth momentum, especially the private sector investment, without which we will not be able to aim for an ambitious growth rate," said Arun Singh, Lead Economist Dun & Bradstreet (D&B) India. According to D&B Economy Observer, the rebound in industrial production, especially in capital goods is not just driven by festive-led demand and is on a sustainable basis.
Around 1,900 branches of IDBI Banks across the country were shut on Tuesday due to a strike by employees demanding wage revision, said a leader of the All India IDBI Officers Association (AIIDBIOA). The employee unions - officers and staff - are on strike on Tuesday and Wednesday. IDBI shares closed at Rs54.05, up 4.34% on the NSE.
 
Fast moving electrical goods major Havells India reported a net profit of Rs171 crore for the quarter ended September 30, 2017-18. "GST with high tax rates on electrical products continues to disrupt demand scenario with muted consumer offtake and delayed restocking at channel," said Anil Rai Gupta, Chairman and Managing Director, Havells India. "The GST transition has been well consummated at dealer and vendor platform. We remain cautiously positive on growth in forthcoming period." The company’s shares closed at Rs502.30, down 7.23% on the NSE.
 
Hindustan Zinc reported a rise of 34% in its net profit for the second quarter (Q2) of 2017-18. According to a BSE filing, its net profit during the quarter under review increased to Rs2,545 crore from Rs1,902 crore reported for the corresponding period of 2016-17. The company's board of directors declared an interim dividend of 100% i.e. Rs2 per share on equity share of Rs2 each with a record date fixed for the interim dividend of October 31, 2017. The company added that as on September 30, 2017, its cash and cash equivalents was Rs19,979 crore invested in high quality debt instruments. The company’s shares closed at Rs315.10, down 1.07% on the NSE.
 
India’s largest general insurance company New India Assurance will hit the capital markets on November 1 to raise an estimated Rs10,000 crore through an initial public offering, merchant bankers privy to the development said. The company's share sale will close on November 3, it said. The IPO comprises sale of 9.6 crore shares by the government, besides fresh issue of 2.4 crore shares. Thus, a total of 12 crore shares of the non-life insurer would be sold through the share sale offer, constituting around 14.56% of the company's post issue share capital. The exact amount and pricing for the IPO will be announced by the company on Wednesday. New India Assurance is expected to list on the stock exchanges on November 13.
 
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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