India Infoline Weekly Newsletter - May 24, 2013

On the domestic front, economic activity has been moderating as factory output continues to lose momentum and services growth decelerates. Domestic consumption, which was a bright spot, is fast fading. But on a positive note, with inflation trending lower, the Reserve Bank may be able to cut policy rates at its June 17 meet.

May 24, 2013 7:13 IST | India Infoline News Service

Top Stories

NSE to cut securities transaction tax from June 1

NSE is set to revise STT (Securities Transaction Tax) as per the Finance Act 2013, which received the go ahead on May 10, 2013. The revised rates will be effective from 1st June, 2013.

Fall in May China PMI triggers global sell-off ...

China’s HSBC Purchasing Mangers’ Index (PMI) for May fell to 49.6 against April’s 50.4, signaling contraction in factory output of the world’s second biggest economy. The data sparked concerns after months of slowing growth in the Chinese economy and resulted in heavy sell-off across world markets. PMI came below street consensus of 50.4. Experts attributed the slowdown in May manufacturing to a weaker domestic and global demand. World markets plunged 2-2.5% on Tuesday with shares in Japan leading the nosedive at a staggering 7%. Ben Bernanke's comments and a spike in Japanese bond yields were other major factors to blame for the mayhem in markets.Stock markets witnessed deeper cracks post minutes of the latest Federal Reserve meet. Fed Chairman Ben Bernanke's suggestion that the central bank may begin tapering its bond-buying program later this year sent markets tumbling. Asian markets tanked sharply on Thursday with shares in Japan leading the nosedive in the region. The Nikkei 225 is down 7.32% while Hong Kong's Hang Seng is off 2.54% and China's Shanghai Composite is lower by 1.16%, BSE Sensex was down almost 2%. The HSBC Flash China Manufacturing Purchasing Managers’ Index (PMI) is the earliest available indicator of manufacturing sector operating conditions in China. The estimate is typically based on approximately 85%–90% of total PMI survey responses each month and is designed to provide an accurate indication of the final PMI data.

‘Victimised’ Phaneesh Murthy to contest sexual charges in court

Phaneesh Murthy has clarified that he has not violated the company policy. "Charges of sexual harassment against me are completely false," says Phaneesh Murthy. Former iGate CEO, Murthy also reported that he will contest all harassment charges. Earlier in the day, iGATE announced that its Board of Directors decided to terminate the employment of President and CEO Phaneesh Murthy. Concurrently, the Board has appointed Gerhard Watzinger as President and CEO on an interim basis. All changes are effective immediately. The Board's decision was made as a result of an investigation by outside legal counsel, engaged by the Board, of the facts and circumstances surrounding a relationship Murthy had with a subordinate employee and a claim of sexual harassment. The investigation, which is ongoing, has reached the finding that Murthy's failure to report this relationship violated iGATE's policy, as well as Murthy's employment contract. The investigation has not uncovered any violation of iGATE's harassment policy...Read More

Tata Steel may explore options to sell Corus assets

Shares of Tata Steel was down 1% after reports stated that company may explore options to sell Corus assets. Corus will remain subsidiary of Tata steel. Tata Steel sold teesside plant in 2011. The stock has hit a high of Rs316 and a low of Rs310.

US Senate okays changes in Immigration Bill

The Senate Judiciary Committee Tuesday approved changes in US immigration policy. The panel voted 13-5 to approve the bill that will make it easier for illegal residents in US to get citizenship over a period of time. The move made it easier for technology companies to hire highly skilled from overseas, which were otherwise required to recruit Americans over foreigners.

A day earlier senators agreed to include the issue of high-tech visa program while working to resolve a key issue in the US immigration bill. The deal which will benefit technology firms that rely on skilled foreign workers was brokered by Democrat Chuck Schumer and Republican Orrin Hatch.

I-T issues Rs5.77bn demand notice on Infosys

Income-Tax Department has issued $ 106 mn (about Rs 5.82bn) tax demand notice on Infosys, for 2009 fiscal, adding to reports. Reports stated that Infosys is already contesting additional income tax demands of $ 214 mn (about Rs 11.75bn) for four fiscals years beginning 2005 and said it will take legal recourse against the fresh tax demand notice as well. Infosys added that its position in the cases relating to tax demands is strong and it expects to win the appeal.

‘Daiichi Sankyo allegations false, kept in loop on USFDA’

Daiichi Sankyo released a statement where, among other things, it was stated that it "believes that certain former shareholders of Ranbaxy concealed and misrepresented critical information concerning the US DOJ and FDA investigations". The phrase is an obvious reference to the members and companies of the Singh family who were shareholders of Ranbaxy. Daiichi Sankyo’s allegations of concealment and misrepresentation are false and baseless. Daiichi Sankyo purchased the Singh family's interests in Ranbaxy in 2008 after a long negotiation process, as is typical of deals of this magnitude, and after conducting full due diligence on the affairs of Ranbaxy. The negotiations on behalf of Daiichi Sankyo were led by Takashi Shoda, Daiichi Sankyo’s current Representative Director and Chairman and Dr. Tsutomu Une, Executive Director, who is also the current Chairman of Ranbaxy. They and Daiichi Sankyo were legally advised. At every step of the way during the negotiation process, Daiichi Sankyo and its representatives were made aware of the on-going US FDA and DOJ investigations. They were also given full access to the documents at Ranbaxy pertaining to US FDA and DOJ investigations...Read More

Competition Commission examining Jet-Etihad deal

Competition Commission of India (CCI) is looking into the Rs. 20 billion Jet-Etihad deal. CCI got an application to clear the deal between Jet Airways and its Abu-Dhabi based partner Ethihad Airways.  Jet Airways earlier sold 24% of stake to Etihad in a Rs. 2058 crore deal. In the deal Jet Airways will sell 27.26 million shares in a preferential offer to Etihad at Rs. 754.74 a share. The deal was the first of its kind and happened after FDI norms were relaxed in the aviation sector by the government. Merger and Acquisition deals are required to be cleared by the fair practices regulator CCI to go ahead.

See strong Nifty support at 5940 levels: IIFL

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