Sensex trades marginally lower; Bhel, Tata Motors fall Read more at: http://www.livemint.com/Money/ZnYXQrfzKSvvFZnOOPvSEO/Sensex-trades-marginally-lower-Bhel-Tata-Motors-fall.html?utm_source=copy

Sensex trades marginally lower; Bhel, Tata Motors fall 

 

Mumbai: The 30-share bellwether BSE Sensex on Thursday was trading marginally lower led by losses in consumer durables, capital goods and power companies. The rupee which weakened past 62 mark in opening session also muted down sentiment. At 9.42am, the Sensex was trading lower by 0.10%, or 28 points, at 28,004.41 points, while the National Stock Exchange’s broader barometer 50-share Nifty was trading down 0.11%, or 8.90 points, at 8,373.40 points. The gainers included State Bank of India (SBI) that was trading up 1.5% to Rs.295.35 as it turned ex-split on Monday and Oil and Natural Gas Corp. Ltd (ONGC) that rose 1% to Rs.387.75. Among the losers, Bharat Heavy Electricals Ltd (Bhel) fell 1.7% to Rs.245 and Tata Motors Ltd fell 1.1% to Rs.523. Among the sectoral indices, BSE FMCG was the top sectoral gainer, up 0.6% followed by BSE healthcare index which was up 0.4%. BSE IT and Teck indices were up 0.2% and 0.1%, respectively. BSE consumer durables index was the top sectoral loser. down 0.9% followed by BSE capital goods and power indices which were down 0.7% each. BSE realty and auto indices were down 0.5% and 0.4% respectively. Ranbaxy Laboratories Ltd fell 1.4% to Rs.594.50 after the company lost a bid for a temporary court order to block rivals generic versions of the heartburn pill Nexium and the antiviral drug Valcyte. Amtek Auto Ltd, Bosch Ltd, Engineers India Ltd, Indiabulls Housing Finance Ltd, Strides Arcolab Ltd and Wockhardt Ltd will be included in F&O from 28 November, NSE said in a release. Amtek Auto rose 4.3%, Engineers India 1.8%, Indiabulls Housing Finance 0.7%, Strides Arcolab 3.4% and Wockhardt 2.9%. ING Vysya Bank Ltd was trading at Rs.801 on BSE up 5.4% while Kotak Mahindra Bank Ltd was up 5.6% to Rs.1,139 after news report said that Kotak Mahindra Bank is in final stages of acquiring ING Vysysa Bank. However Kotak Mahindra Bank has clarified that there is no decision about any merger or acquisition. Alok Industries Ltd was trading at Rs.11.63 on BSE, up 4.3% from previous close after the company said it will raise Rs.2,000 crore through a land sale in next two years by selling its store 21 and land in Mumbai, Vapi and Silvassa for reducing its debt and it also hopes to double exports in the next three years period. Indiabulls Securities Ltd rose 5.4% to Rs.26.35 after the company said its subsidiary Indiabulls Distribution Services Ltd has acquired India Land and Properties Pvt. Ltd, a real estate firm, for Rs.600 crore. Since the beginning of this year, the Sensex has gained 32.30%, while foreign institutional investors have bought $15.43 billion from local equity markets. US markets ended in the red as Fed minutes revealed few insights about the Fed’s policy plans and there was no additional clarity about when interest rates would be hiked. Nasdaq Composite fell 0.5%, S&P 500 and Dow Jones Industrial Average closed marginally in the red. Asian stocks were trading mixed on Thursday as fresh data signalling a further loss of momentum in China’s economy weighed on sentiment, while the yen slid to multi-year lows against the dollar and euro. Japan’s Nikkei Stock Average was trading marginally higher 0.02% after it recorded its smallest trade gap since June 2013 led by higher exports, Hong Kong’s Hang Seng up 0.13% and China’s Shanghai Composite was down around 0.2%

md.aquil alam

pgdm 2^nd year

iimt college of management

source. Live mint

Rupee falls to nine-month low on broad dollar strength

The rupee slumped to its lowest level in nine months on Thursday, tracking the dollar's strength against major currencies and other Asian peers, while state-owned banks' dollar demand for Iran oil payments also weighed.

At 9:57am, the partially convertible rupee was trading at 62.1850/1900 after falling to as low as 62.22 per dollar, its lowest since Feburary 20.

Traders expect the rupee to trade in a 61.90-62.30 range during the session. 

 

Pradeep Shukla

pgdm 2nd year

New Sebi norms tighten noose on insider traders

MUMBAI: Capital markets regulator Sebi on Wednesday tightened insider-trading norms by widening the scope of the category of insider, bringing in all persons, including immediate relatives, under its ambit.
ens and protects investor interests, it has also drawn criticism with legal experts saying the harsh provisions could be open to interpretation.
Sebi finalised the new regulation that will replace the Sebi (Prohibition of Insider Trading) Regulations of 1992, after deliberating on recommendations made by the Justice N K Sodhi Committee. The panel had been constituted to review the existing insider trading regulatory regime.
Sebi said the definition of insider has been made wider by including persons connected on the basis of being in any contractual, fiduciary or employment
Sebi chairman sitive information. “Now, immediate relatives will be presumed to be connected persons, with a right to rebut the presumption. In the 1992 regulations, definition of connected person was largely position based,” Sebi said.
The move to tighten the norms follows Sebi’s publicly stated concerns on instances of insider trading at big corporates. Sebi chairman UK Sinha had recently said: “We are revising our prevention of insider trading regulations because we have discovered cases ... Unfortunately the cases are not just from small companies but also from big ones.”
Insider trading typically involves dealing in securities by persons with prior access to unpublished price-sensitive information (UPSI). Former McKinsey head Rajat Gupta, for instance, was found to have violated similar provisions in the US and convicted.
However, certain outdated provisions of the existing norms have also been misused by offenders to escape regulatory action.
“They have defined the new regulation in such a manner that it may be misused,” said Rohan Shah, managing partner at Economic Laws Practice. “While Sebi needs to be lauded for ensuring a transparent capital markets structure, this widening of the scope of insider may cause problems.”
“This can be described as a situation where you are presumed guilty unless proven innocent,” says Harish HV, partner at Grant Thornton. “Already firms have been finding provisions of Companies Act difficult to meet. The new insider tradin
NAME-RAJ GAURAV
            PGDM 3 SEM

OECD raises India’s 2015 GDP growth forecast to 6.6%

New Delhi: India’s economy will accelerate in 2015 but will fail to attain the heady growth rates of the past decade without sweeping structural reforms, the Organisation for Economic Cooperation and Development (OECD) said on Wednesday.

In a country survey, the Paris-based think tank forecast that Asia’s third-largest economy would grow by 6.6% in 2015, up from its last forecast of 5.7% growth in May. 

Growth would edge higher to 6.8% in 2016, it said. “The economy has shown signs of a turnaround and imbalances have lessened,” the OECD said in the report which, while providing comfort to Prime Minister Narendra Modi that things are looking up, highlighted tough choices ahead. Modi’s election by a landslide earlier this year has lifted business confidence, while fiscal consolidation and easing pressures on inflation and the current account deficit all point in the right direction. 

In its latest forecast, OECD said it expected inflation to fall to 5.4% in 2015 and nudge higher to 5.6% the following year, after 6.9% in 2014. In May, it forecast that inflation would remain above 6% over the next few years. Yet while current risks are broadly balanced, the medium-term outlook is less bright. 

Exports are constrained by supply-side bottlenecks, while high corporate borrowing and deteriorating asset quality at banks “may put the investment recovery at risk”, the report added. Huge barriers to growth, from infrastructure bottlenecks to restrictive labour laws to weak education, will hold India back if not addressed. “Structural reforms would raise India’s economic growth. 

In their absence, however, growth will remain below the 8% achieved during the previous decade,” the OECD said in the 158-page report. In its key recommendations the OECD said India should: -- Improve the macroeconomic framework by introducing flexible inflation targeting, pursuing fiscal consolidation, implementing a national value-added tax and strengthening banking oversight. -- Boost manufacturing jobs by simplifying labour laws, improving access to education, accelerating approvals for infrastructure projects and improving the business climate. -- Increasing female economic participation by ensuring equal work opportunities for women and expanding access to education and skills training for female entrepreneurs. -- Improving access to, and the quality of, healthcare.

The OECD tracks its 34 advanced economy members, in addition to issuing forecasts and surveys of large non-member countries like India.

RANJAY KUMAR,

PGDM 3^RD SEM,

SOURCE- MINT.

OECD raises India’s 2015 GDP growth forecast to 6.6%

Read more at: http://www.livemint.com/Politics/NZG0wyVdkUFiED66UnTZ1H/OECD-raises-Indias-2015-GDP-growth-forecast-to-66.html?utm_source=copy

New Delhi: India’s economy will accelerate in 2015 but will fail to attain the heady growth rates of the past decade without sweeping structural reforms, the Organisation for Economic Cooperation and Development (OECD) said on Wednesday. In a country survey, the Paris-based think tank forecast that Asia’s third-largest economy would grow by 6.6% in 2015, up from its last forecast of 5.7% growth in May. Growth would edge higher to 6.8% in 2016, it said. “The economy has shown signs of a turnaround and imbalances have lessened,” the OECD said in the report which, while providing comfort to Prime Minister Narendra Modi that things are looking up, highlighted tough choices ahead. Modi’s election by a landslide earlier this year has lifted business confidence, while fiscal consolidation and easing pressures on inflation and the current account deficit all point in the right direction. In its latest forecast, OECD said it expected inflation to fall to 5.4% in 2015 and nudge higher to 5.6% the following year, after 6.9% in 2014. In May, it forecast that inflation would remain above 6% over the next few years. Yet while current risks are broadly balanced, the medium-term outlook is less bright. Exports are constrained by supply-side bottlenecks, while high corporate borrowing and deteriorating asset quality at banks “may put the investment recovery at risk”, the report added. Huge barriers to growth, from infrastructure bottlenecks to restrictive labour laws to weak education, will hold India back if not addressed. “Structural reforms would raise India’s economic growth. In their absence, however, growth will remain below the 8% achieved during the previous decade,” the OECD said in the 158-page report. In its key recommendations the OECD said India should: -- Improve the macroeconomic framework by introducing flexible inflation targeting, pursuing fiscal consolidation, implementing a national value-added tax and strengthening banking oversight. -- Boost manufacturing jobs by simplifying labour laws, improving access to education, accelerating approvals for infrastructure projects and improving the business climate. -- Increasing female economic participation by ensuring equal work opportunities for women and expanding access to education and skills training for female entrepreneurs. -- Improving access to, and the quality of, healthcare. The OECD tracks its 34 advanced economy members, in addition to issuing forecasts and surveys of large non-member countries like India

Read more at: http://www.livemint.com/Politics/NZG0wyVdkUFiED66UnTZ1H/OECD-raises-Indias-2015-GDP-growth-forecast-to-66.html?utm_source=copy

HDFC to pare stake for foreign investment in bank

 

MUMBAI: Parent HDFC will pare its stake in HDFC Bank to create room for foreign investors. HDFC, the country's oldest mortgage lender which owns 22.5 per cent in HDFC Bank, will not step in as a buyer when the bank issues shares to local and foreign investors to raise Rs 10,000 crore, said three people aware of the decision.

The institution will let its stake dip to a little over 20 per cent in HDFC Bank where `foreign ownership', as defined by the government, is close to the maximum permissible 74 per cent. "HDFC will not participate in the share purchase but will, in fact, sell shares to make way for other foreign investors,'' said one of the persons. In the past whenever there has been a share dilution in HDFC Bank, HDFC had always purchased shares to preserve its holding in India's most valuable lender.

HDFC Bank shareholders have approved a proposal to raise Rs 10,000 crore capital by July 2015. The bank has appointed investment banks Bank of America Merrill Lynch, Credit Suisse, HSBC, JP Morgan, Morgan Stanley and Citi Group as advisors to the proposed fund raising. HDFC's decision is driven by the government's stand that the institution's holding in HDFC Bank should be treated as foreign ownership because more than 51 per cent of HDFC's stake is with offshore investors.

 COMMENT: HDFC Bank's proposed fund raising would be a combination of ADRs and local share issuance to mutual funds and insurance companies. Since the headroom available is slim, a local share sale without parent's participation will allow space for foreign investors

Anand kumar maurya

pgdm-3sem

Government to take steps to curb gold imports soon: FinMin source

                NEW DELHI: Government is likely to announce measures to curb gold imports as early as Tuesday, a senior finance ministry source said, as a surge in inbound shipments threatens to worsen the country's trade deficit.

"We are working on it. The measures to slow gold imports are almost ready and may be announced today or tomorrow," said the source, who declined to be named because of the sensitivity of the matter.

Gold imports into India, the world's No. 2 gold consumer behind  ..

Comment:   Imports of the precious metal have risen steadily since August, boosted by jewellery demand for the wedding season, raising concerns among policymakers.

 pratima kumari

pgdm-3sem

Arvind Vashistha to head equity capital markets at Citi India

 

 MUMBAI: Banking major Citi India today appointed Arvind Vashistha as the head of its equity capital markets division.

He will be based in Mumbai and handle the equity origination & execution business of the leading US lender.

Vashistha will report to Ravi Kapoor, head of corporate and investment banking at Citi India, and Kenneth Poon, chief of Asia Pacific capital market origination, Hong Kong, the foreign lender said

COMMENT: Prior to joining Citi, he was executive director for global capital markets at UBS Investment Bank India, a post he held since 2006. In this role, he originated and executed transactions of over USD 25 billion in over 60 equity

 anand kumar maurya

pgdm-3sem