Companies and Markets

Companies & Markets

JAN SERIES ROLLED OVER TO FEB

The market witnessed profit-booking after scaling record high levels in the past few sessions. The S&P BSE Sensex was down 111.20 points or 0.31 per cent to settle at 36,050.44, while the Nifty 50 index fell 16.35 points or 0.15 per cent to end at 11,069.65. Market is closed for Republic Day. Selling was also in mid and small cap segment with the BSE Mid-Cap index and BSE Small-Cap index ended in the red. Both these indices outperformed the Sensex.

Market Outlook

Deepak Jasani, head - retail research, HDFC Securities.

MFs labouring to merge plans before Sebi axe

With market regulator Sebi’s deadline for asset management companies (AMCs) to end multiple MF schemes under single category approaching fast, fund houses are merging plans to comply with the norms. It is estimated that the total mutual fund schemes could come down by half by March 2018.

Bond yields rise as RBI refuses additional dividend to govt

Yields on government bonds inched up further as crude oil prices rose with US oil inventories registering a further drop for the 10th week in a row. News reports that the central bank has refused paying an additional dividend of Rs 13,000 crore to the government also spooked bond traders.

The old 10-year bond yield rose by 3 basis points to 7.48 per cent (Rs 95.42), while the new benchmark was also up 3 basis points to 7.31 per cent (99.04).

Gold hits 14-mth high, demand rises 28%

Gold price touched 14-month high on Thursday and the resumption of rally is expected to further boost demand in the Indian market, which saw consumption go up by

28 per cent and imports by 68 per cent in 2017.

After a brief consolidation last week, gold has resumed its rally that started in mid-December last year. Gold has broken a stiff resistance on Thursday by touching $1,366 per ounce in the international market. In the Indian spot market, gold price gained Rs 350 per 10 gm to touch Rs 31,450. Silver too gained Rs 1,100 as it moved past Rs 41,000 per kg.

Oil import bill could jump 25% to $90b

With global crude oil prices hitting  $71 a barrel on Thursday for the first time since 2014, more bad news seems to be heading India’s way. Sources indicated that the current oil price rally may not just swell the country’s oil import bill by 25 per cent to $90 billion in FY18, but put additional burden of subsidy contribution on state-run upstream companies — ONGC and OIL, and also gas transportation company GAIL.

The situation is difficult, given that India meets more than 82 per cent of its oil needs through imports.

Talk of market bubble rejected

DAVOS: Almost a decade after the Lehman crisis, the world’s financial elite in Davos say not to worry about a potential bubble inflating out of record stock prices: this time it’s different.

Leading the charge on the bullish sentiment is the United States, with president Donald Trump boasting regularly about near-daily highs on Wall Street.

He is expected to also celebrate business gains from his historic corporate tax cut when he addresses the World Economic Forum (WEF) in a speech on Friday.

FIIs building long positions

Key benchmark indices ended with minor gains in a range-bound trading session. The S&P BSE Sensex, rose 21.66 points or 0.06 per cent to settle at 36,161.64, the Nifty 50 index rose 2.30 points or 0.02 per cent to settle at 11,086.

Indices opened higher and hit fresh record highs in early trade. After slipping into the red, indices bounced back in afternoon trade and moved in a narrow range. The BSE Mid-cap index fell 0.57 per cent, while BSE Small-cap index dropped 0.9 per cent.

Market Outlook

Idea Q3 loss widens to Rs 1,284 cr

Telecom operator Idea Cellular on Wed­nesday reported deeper losses of Rs 1,284.5 crore for the quarter ended December 31, hurt by a "sharp" cut in call connect charges and the "unrelenting" rate pressure.

Idea's losses stood at Rs 383.9 crore in the year-ago period, and Rs 1,106.6 crore in the trailing September quarter, as per a BSE filing.

The merger with Vodafone India is in the final leg of regulatory approval and is expected to complete in the first half of 2018, Idea said in a statement.

Sensex at 36K, but India not hottest mkt

If you think the Indian markets are hot button right now, think again. The universe of global markets is seeing major action elsewhere. Latest data from fund tracker EPFR Global reveals that emerging markets have seen gangbusters inflows of $40 billion in the New Year when the frenzy picked up. Surprisingly, in the super cycle, nearly all major assets classes are following a unidirectional path — equities, oil and commodities.

Fewer banks report rise in NPAs in Jul-Dec

The percentage of banks reporting a rise in non-performing assets (NPAs) in July-December has reduced significantly, indicating stability in credit environment, according to a report. The latest round of the Ficci-IBA survey drew responses from 19 public sector, private and foreign banks representing 59 per cent of the banking industry by asset size. According to the survey, 58 per cent of the respondent banks reported a rise in NPAs, significantly lower than 80 per cent in the previous round.
Infrastructure, metals and engineering goods were key contributors to the bad debt.

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