|Vol. 879 - June 05, 2015|
Frontloading by RBI signals a long pause
On the basis of an assessment of the current and evolving macroeconomic situation, the RBI has decided to:
Reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.5% to 7.25% with immediate effect;
Keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0% of net demand and time liabilities (NDTL);
Continue to provide liquidity under overnight repos at 0.25% of bank-wise NDTL at the LAF repo rate and liquidity under 14-day term repos as well as longer term repos of up to 0.75% of NDTL of the banking system through auctions; and
Continue with overnight/term variable rate repos and reverse repos to smooth liquidity.
Consequently, the reverse repo rate under the LAF stands adjusted to 6.25%, and the marginal standing facility (MSF) rate and the Bank Rate to 8.25%.
The frontloading of rate cut, as RBI governor terms it, hints that the central bank may well take a pause as far as rate cuts are concerned. In line with the broader consensus, RBI decided to trim repo rate by 25 basis points and kept the CRR unchanged at 4%. However, the wording of monetary policy remains cautious and indicates a long pause before the next move on the interest rates. The policy statement mentions that there is an element of uncertainty to the inflation outlook, wherein the probability of poor monsoon and volatility in oil prices pose as a serious risk. Governor Raghuram Rajan has added that the interest rate move in June is front loaded, which otherwise would had occurred in August. This implies that next policy meeting in August will yield nothing much on the interest rates front...Read More
Reactions to the RBI move
25 bps cut in interest rate too little too late: ASSOCHAM
The Associated Chamber of Commerce and Industry of India (ASSOCHAM) said the 25 basis points cut in interest rate, though on expected lines, is too little and too late to infuse the consumer demand which should then induce investment. Governor Dr Raghuram Rajan himself has acknowledged the fact the investment in the economy is weak and corporate results poor, but still he has refrained from taking somewhat bolder steps. At least 50 basis points cut in the Repo rate was required along with a reduction in the Cash Reserve Ratio (CRR) so that banks are able to reduce their cost of funds, said Mr. Rana Kapoor, President ASSOCHAM.... Read More
Decision to cut repo rate is welcome and timely: Arundhati Bhattacharya
"The decision to cut repo rate is welcome and timely. With credit demand expected to perk up, we anticipate the rate cut will transmit through the banking system sooner than later. With monsoon forecast going a little awry and the RBI upping its inflation projections for March FY16, the Government should now push for more public infrastructure spends that would support growth in the near term and create more jobs."
Rate cut is a welcome step to improve domestic demand and revive credit growth: Chanda Kochhar
The rate cut is a welcome step considering the need to further improve domestic demand and revive credit growth. The uncertainties cited in the policy statement present a pragmatic evaluation of economic conditions warranting a guarded approach, particularly with regard to risks to inflation and impact of monsoon. In summary, the policy stance is in alignment with the current economic conditions and the issues that require structural policy changes.
Blessings on God's Own Country: Monsoon hits Kerala
India Meteorological Department has declared onset of monsoon over Kerala today i.e. on 5 th June 2015.
Following conditions were observed favouring onset of monsoon over Kerala
Govt well-equipped to deal with impact of weak monsoon: Arun Jaitley
In an attempt to allay growing concerns over deficient monsoon, Finance Minister Arun Jaitely said that the government was prepared to deal with the impact of weak monsoon. He highlighted that prognosis for monsoon were better than last year and that expenditure could go up in coming months. Denying the case of any distress on account of the present monsoon trends, Jaitley clarified that foodgrain production would not be impacted and that there was abundance of food grain stock in the economy. He cited recent growth data which gave positive indication for the economy. With the growing clamor against the Narendra Modi's claims of Acche Din, the minister said that there wasn't any need to panic and fears of deficient monsoon were misplaced. He also underscored that advanced predictions suggest monsoon will be closer to normal in south, central and northeast zones...Read More
Finally, a panel to review the controversial new GDP series!
The launch of new GDP Series (Base 2011-12) in India has been a head scratcher for everyone from RBI Governor to Chief Economic Adviser. Improvement in methodology of GDP calculation or for that matter the Base Year is usually a routine kind of affair. However, the launch of new GDP Series (Base 2011-12) in India has been a head scratcher for everyone from RBI Governor to Chief Economic Adviser, who have been quite vocal in expressing their struggle with understanding the new growth numbers. It is in this backdrop that the government has set up an expert group to review the manufacturing data used in compiling the new measure of gross domestic product (GDP). A three-member committee headed by National Statistical Commission (NSC) chairman Pronab Sen has been set up to review these new series. Other members of the group include the former head of the Central Statistics Office (CSO) A.C. Kulshreshtha and NSC member Ramesh Koli. The panel is expected to initially first investigate the discrepancies, if any, in the manufacturing sector data used in the series and subsequently review the services sector data. Eyebrows were raised both by the private economists and RBI governor, Raghuram Rajan after CSO changed the way it measures GDP in January, to make it internationally comparable and sharply revised GDP at market prices to 6.9% from 5% reported under the old series in 2013-14. Much of the concerns also relate to the numbers pertaining to an upbeat manufacturing sector depicted by the data...Read More
Rupee ends upbeat! Snaps three consecutive sessions' depreciating streak
Snapping three consecutive sessions' depreciating streak, the Indian currency ended on a strong note against the dollar on Friday on incremental dollar sales by exporters and banks. Sentiment was buoyed to an extent following monsoon hitting Kerala coast resulting in the rupee recovering to sub 64/$ level. On the global front, a yo-yo week for the euro settled on Friday, with major currencies treading water ahead of a monthly U.S. non-farm payrolls report which is looking for a clear sign on whether the Federal Reserve can raise interest rates this year. Finally the Rupee ended at 63.75, stronger by 25 paise from its previous close of 64.00 on Thursday. The currency touched a high and low of 63.99 and 63.75 respectively. The Reserve Bank of Indias (RBI) reference rate for the dollar stood at 63.89 and for Euro stood at 71.81 on June 5, 2015. While, the RBIs reference rate for the Yen stood at 51.33, the reference rate for the Great Britain Pound (GBP) stood at 97.9774. The reference rates updated earlier in the day are based on 12 noon rates of a few select banks in Mumbai.
Withdrawal Symptoms! Nestle India takes Maggi noodles off the shelves
Food group Nestle has withdrawn Maggi noodles in India due to "an environment of confusion for consumers", the company reportedly said. This move comes after food inspectors in Uttar Pradesh reportedly found high lead levels in some packets of Maggi instant noodles. "The trust of our consumers and the safety of our products is our first priority," Nestle was quoted as saying. For the last few days, there seems to be no respite in sight for the makers of Maggi Noodles, Nestle India, the shares of which plunged another 3% to close at 6010.80 on Thursday after Uttarakhand joined the list of states to ban the sale of Maggi noodles as samples of the popular food product failed laboratory tests. The stock plunged 10% on Wednesday, clocking its biggest plunge in over 9 years after Delhi government imposed a 15-day ban on the sale of instant noodles, claiming high levels of lead obtained in preliminary testing...Read More
Service Tax: Come June 1, shell out for your indulgences
As was conveyed in the FMs February budget speech, June 1 will see the implementation of the revised rates of Service tax and TDS on RDs. Heres a summary to help you come to terms with the new reality that would affect your financial transactions, whether periodic, day-to-day or one-off.
From June 1, remember you are going out to shell more for most of your indulgences whether watching your favorite star on the silver screen or relishing gastronomical delights at your preferred restaurant. The jump from 12.36 to 14 per cent will hit your pocket every time you avail of a service under different labels - travel, fitness, insurance, plastic card payments, health care, transport or consultancy.
From June 1, TDS will apply on interest income exceeding Rs. 10,000, whether on RDs or FDs (of any branch of the same bank). The least you can do, only if your estimated total income for the financial year is less than the minimum liable for income tax, is to avoid TDS on your bank FDs and RDs by filing Form 15G/15H whichever is applicable. This will help you bypass the long, winding route of claiming refund of TDS in retrospect.
Will lending rates come down?
The Reserve Bank of India (RBI), in its monetary policy review, slashed the repo rate by 25 basis points to 7.25%, for the third time this year, on the back of easing inflation numbers. The central bank, however kept the cash reserve ratio or CRR intact at 4%. The statuary liquidity ratio was also left unchanged at 21.5%. The central banks target inflation rate is 6% by January 2016 and inflation to 4% over the years to come. While this move was widely anticipated, given the central banks comfort with consumer price inflation and a slowdown in industrial growth, it is yet to be seen if lending rates will see a further fall, thereby leading to lower Equated Monthly Installments (EMIs).
In todays policy, RBI Governor, Raghuram Rajan has once again instructed banks to reduce its lending rates. "Banks have started passing through some of the past rate cuts into their lending rates, headline inflation has evolved along the projected path, the impact of unseasonal rains has been moderate so far, administered price increases remain muted, and the timing of normalisation of US monetary policy seems to have been pushed back," said Rajan in the second bi-monthly monetary policy statement...Read More
Five tips for new Credit Card users
A credit card is, beyond doubt, a double-edged sword in your pocket or purse. If used well, it can be one of the most rewarding credit options available to a consumer but if not; it could push you towards a vicious debt trap. Herere five things you ought to know before that proverbial first swipe:
A for Activation
For security reasons, none of the credit cards come to you in an active mode. You need to call the bank/toll free number for activation. In most cases, you will need to enter your card number and answer KYC questions. Make sure you make the call for activation from a registered phone number.
Its absolutely essential to be aware of interest rates to avoid scripting the disastrous stories of reckless credit card use that has spelt doom for scores of gullible consumers across the globe. First and foremost, examine the standard rate of interest, which is determined by annual percentage rate. This is the rate at which you will typically pay your outstanding dues. Further, this rate gets divided by 365 days and is applied to your outstanding on daily basis. Carefully read the terms and conditions mentioned in the literature dispatched with your credit card. They reveal valuable information on how to how to avoid recurring interest on your charges when you make payments in part or full.
Love Your Limits
The credit card issuer sets your credit limit based on factors including your income, repayment history, spending patterns and CIBIL score. This is the maximum amount one can spend on the given card. Usage beyond this limit will invite penalty...Read More
Vacation on Loan? Vacate the idea...
Many people dont think twice before taking a personal loan to fund their leisure travel, so compelling is the idea of a vacation for them. From a lender's perspective, this rise in personal borrowings in a sluggish economy, what if only for a vacation, makes perfect business sense. But from a borrower's perspective, it is far from it. Given the cost one has to bear for it, the leisure turns into a ridiculous liability. Personal loans, being collateral free, bear a higher rate of interest than other form of loans, typically 14% to 23% for a two-year or more tenure of two years or more. So Rs. 4 lakh borrowed for a 10-day vacation could translate into an EMI of Rs. 13,500 per month for three years or more. This self-scripted botheration impacts the borrowers loan eligibility for other purposes. Worse, the holiday itself adds fuel to the fire as people tend to be careless about their travel expenses. They hardly realize then that the huge credit card bills in conjunction with the personal loan EMIs would play havoc in the time to come. And if the borrower fails to service the loan EMIs at any point, the credit score is badly hit. Thus its always better to methodically plan and save for a holiday even if one may have to wait for a few years to realize the big dream. The sheer financial comfort of a self-funded vacation makes it truly memorable in every respect...Read More
What have we learned from the crises of the last 20 years?
There have been many economic and financial crises since the Mexican crisis that began in December 1994. Michel Camdessus, then Managing Director of the IMF, called the Mexican crisis "the first economic crisis of the twenty first century"--by which he meant that it was the first emerging market country crisis whose immediate roots were more in the capital account than in the current account of the balance of payments. The Mexican crisis was followed by the crises of East Asia, including Thailand, Indonesia and Korea that started in the second half of 1997. The crisis also affected Malaysia, which by imposing capital controls and other measures avoided having to enter an IMF program. The current Japanese crisis began in the 1990s, but was not then seen as a possible forerunner of crises among the industrialized countries of North America and Europe. The problems of East Asia were followed by crises in Russia, Brazil, Turkey and Argentina. All these took place during the Great Moderation, the moderation being the decline in inflation and greater stability of output that occurred in much of the industrialized world. The Great Moderation was ascribed primarily to the switch in many countries to an inflation targeting approach to monetary policy...Read More
Will falling profits and rising losses put Indias economy in doldrums?
Owing to increasing costs and a tempered demand, quarterly profits of M&M, Cipla, Sun Pharma and many such big corporations along with NTPC, SAIL and the likes, have seen their profits under pressure. And its just not just the big corporations or heavyweights; performance by smaller companies too has been discouraging, according to an ET analysis. Major players in the public sector like NMDC, Coal India as well as private sector players like Hindalco, Wockhardt, Omaxe and others too witnessed a gloomy quarter, the report said. An analysis of 336 companies from the BSE 500 Index that have declared their results so far shows that employee costs grew 10.3 per cent in 2014-15. "The wage bill grew 28 per cent in 2013-14 and 16.5 per cent in 2012-13. The tepid rise in employee costs during 2014-15 is partly due to the meagre 3.4 per cent increase in revenue and 6 per cent contraction in earnings. But even as the absolute wage bill has been moving up over the last few fiscals, there has not been too much change in the bill when viewed as a proportion of revenue," says a report in HBL.
What if Sherlock Holmes was a central banker?
If Sherlock Holmes were a central banker, he may have remarked, "elementary, my dear Watson". Stronger than expected 1Q2015 GDP growth at 7.5% y-o-y and some inflation risks on the horizon are a logical mix for the central bank to not cut rates. But the truth is, factually speaking, Holmes never uttered those words, (at least going by Doyle's books). And it may not be so elementary a decision after all. Look closer. Majority activity indicators and GDP's own supply side estimates are in fact pointing to continued weakness in recovery. Furthermore, low inflation at present coupled with a possible Fed exit later in the year, suggest a final rate cut now could be an opportunistic move. Considering all, HSBC forecasts a 25bp rate cut in the June 2 RBI policy meeting. The note authored by Pranjul Bhandari, Chief India Economist, Prithviraj Srinivas, Economist and Stuti Saksena, Economics Associate says while India's 1Q2015 GDP (on the demand side) grew 7.5% y-o-y, showing an almost 100bp increase from the (downward revised) 6.6% growth of the previous quarter, the same message was not carried on the supply side of GDP (known as GVA at basic prices), which grew 6.1% y-o-y, 60 bps slower than the 6.8% y-o-y growth in the previous quarter...Read More
We can't be satisfied merely with slow incremental growth in manufacturing: FM
On Commenting RBI policy, FM Arun Jaitley said "We can't be satisfied merely with slow incremental growth in manufacturing,". RBI today cut the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.5% to 7.25% with immediate effect. The central bank has kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0% of net demand and time liabilities (NDTL). The Minister of Finance, Corporate Affairs and Information and Broadcasting Arun Jaitley also inaugurated the New Bank Note Paper Line of 6000 MT capacity and also flagged off the first consignment of Rs. 1000 Bank Note paper made indigenously to Currency Note Press, Nashik at Security Paper Mill, Hoshangabad in the august presence of Shri Shivraj Singh Chouhan, Chief Minister, Madhya Pradesh and other dignitaries...Read More
Honey I shrunk the growth! Crisil cuts GDP growth forecast by 50 bps
On a day, the RBI cut repo rate but cited monsoon as a worrying factor, Ratings agency Crisil has cut Indias GDP growth forecast for FY16 by half a percent to 7.4% from earlier 7.9%. The rating agency has cited increasing likelihood of a weak monsoon for the change in stance. " A washout monsoon forecast, we cut GDP growth by 50 bps" based on IMDs Monsoon forecast . A second straight year of weak monsoon will decrease the efficacy of India's irrigation ecosystem and hit agricultural output and farmers adversely. This will also have negative implication on rural demand," Crisil stated. "Already, unseasonal rain and hailstorm in March have impaired the rabi or winter crop. This will show up in weak agriculture growth in Q1 (2015-16)," it added...Read More
Farm sector growth: 0.02% Rural-Urban divide widens
Indias agriculture growth rate dropped to 0.02% in the last quarter of 2014-15, according to the latest government data, compounding predictions of a bad monsoon ahead. The meteorological department on June 2, 2015, lowered its rainfall projections, predicting the monsoon rainfall would be 88% of normal. If this prediction pans out, 2015 will officially be a drought year, declared when monsoon rainfall shortfall exceeds 10%. Unseasonal rains caused crop damage and a farm crisis this year, forcing wheat imports from Australia. While agriculturewhich supports 600 million Indiansfaces significant distress, the warning signs have been evident for many years. Over the past 20 years, the farm sector has experienced negative growth during five years, three of those being drought years. Two indicators of Indias struggle to keep its people fed are foodgrain production and per capita availability of foodgrain. Although foodgrain production increased 32% over the past two decades, the population has increased by roughly 42% over this period. Per capita availability of food grains has increased marginally, from 471 gm in 1994-95 to 511 gm in 2013-14. With final figures for the financial year 2014-15 awaited, here is a look at Indias agriculture sector over the past 20 years...Read More
Worldwide M&E revenues will rise at CAGR of 5.1% in next five years: PwC
Total worldwide entertainment and media revenues will rise at a compound annual growth rate (CAGR) of 5.1% over the coming five years, from US$1.74trn in 2014 to US$2.23trn in 2019, according to PwCs Global entertainment and media outlook 20152019. While the pace of industry growth will vary widely in different marketswith Japan seeing the slowest growth at a CAGR of 0.9%, and Nigeria the fastest at 15.1%its apparent that when consumers around the world become connected their behaviour becomes more similar, subject to two differentiators. The first is the quality of the available infrastructure for consuming content. The second is consumers common desire for content experiences that are relevant to them personally which is why, even in a globalised world, meeting local preferences remains critical...Read More
Execution in focus! Government spending appears on track
Nearly 9% of the budget has been deployed by the Modi government in the very first month, directing a large part of the fund towards capital spending. The month of April this year saw 8.7% of the allocated amount being spent as against 6.7% last year, as per the data released on Friday. This is likely to accelerate economys growth, until private private demand rises, indicating increased focus on execution by government, says an ET report. The month of April saw an expenditure of Rs 1.55 lakh crore, of which 17% was on the capital account. The road sector saw Rs 5,830 crore being spent in April, which is 14% of the fiscal's allocation. To help address various issues including the major stress in the farm sector, the rural development ministry disbursed Rs. 17,503 crore in April, which is 24% of its total plan allocation for the year, the report added.
Why India must submit to king coal-for now
Coal generates over 75% of Indias electricity and is among the cheapest energy sources available. But its main advantage over other feasible alternatives is that it is largely immune to interference from naturequakes, floods, droughtseconomic vagaries and artificial accidents. India also generates electricity using natural gas, hydropower and nuclear powerfeasible options for generating electricity at a large scale. They are all cleaner than coal from a carbon-emissions perspective...Read More
SBI cuts base rate by 15 bps
SBI has reduced Base Rate by 15 bps to 9.7% from 9.85% effective June 8. This move reduction follows 25 basis point cut in the repo rate by the Reserve Bank of India (RBI).
Dena Bank reduces base rate by 25 basis points to 10 % from Jun 8
Dena Bank has reduced its Base Rate by 25 basis points from 10.25 % to 10 % with effect from June 8.
Punjab & Sind Bank cuts base rate by 25 bps to 10% from 10.25% effective June 3
Punjab & Sind Bank has informed BSE that the Bank has reduced its 'Base Rate' by 25 bps from existing 10.25% p.a. to 10.00% p.a. as well as, reduced 'Benchmark Prime Lending Rate' (BPLR) by 25 bps from existing 15.25% p.a. to 15.00% p.a. effective from June 03, 2015. On Tuesday, the market tumbled like nine-pin post the RBI policy announced, and the selling pressure just mounted as the day progressed.... Read More
Allahabad Bank to cut Base Rate by 30 bps to 9.95% from Jun 8
Allahabad Bank has informed the Exchange that the Bank has decided to cut its BASE RATE and Benchmark Prime Lending Rate (BPLR) by 30 basis point, effective from June 08, 2015. Consequently, the BASE RATE will be reduced to 9.95% from existing 10.25% and BPLR of the Bank will be reduced to 14.20% from existing 14.50% with effect from June 08, 2015.
Bank-Domains: A Revolution in Online Banking
Experts are sure about this: the new bank domain - officially supported by the American Bankers Association - will revolutionize the electronic banking and online business of banks worldwide. Even the registration process of bank domains is secured thanks to more verification steps. Only banks that are authorized and controlled by the responsible supervisory authority are entitled to register bank domains.... Read More
Bank of Maharashtra reduces Base Rate on loans
On the background of good financial results posted for 31.03.2015, Bank of Maharashtra, a Nationalised Bank reduces its Base Rate or Minimum Lending rate by 25 basis points from 10.25% to 10%, a move which would lower the interest cost to customers and EMIs of all loans. The Base Rate of Interest reduction is effective from 1st June, 2015. As it will reduce Base Rate Linked Loans and Advances EMIs. Commenting on this Mr. R.K.Gupta, ED, Bank of Maharashtra said that, "It is hoped to boost Housing Loan, Car Loan, SME Loans and other Retails Loans credit off-take in the Current Year."
Aditya Birla Nuvo enters into JV agreement with MMI Holdings
Aditya Birla Nuvo Ltd has entered into definitive Joint Venture agreements with MMI Holdings Ltd., a leading South African Insurance based financial services group, to enter into the Health Insurance and Wellness business in India. As per the agreements, ABNL will hold 51% share in the Joint Venture Company named Aditya Birla Health Insurance Co. Limited (ABHICL), subject to the regulatory approvals. ABHICL is in the process of making an application to the Insurance Regulatory and Development Authority of India for obtaining license to start health insurance and wellness business operations. The Company expects to commence operations in next 12-15 months.
Only ~25% Indians have access to healthcare services in India!
Swiss Re, the world's second largest reinsurer, launched a report titled Health Risk Factors - India" in collaboration with the Harvard T.H. Chan School of Public Health. It highlights the considerable increase in incidents of non-communicable chronic diseases (NCDs) in India, including cardiovascular disease (CVD), making India a potential 'CVD capital' among the emerging markets. The research on the Systematic Explanatory Analyses of Risk factors affecting cardiovascular health (SEARCH) is conducted to better understand the relationship between risk factors and health outcomes, and build sustainable life and health insurance pools.... Read More
Tips to gain maximum benefits out of your Life Insurance Policy
Decisions that have long-term impact require thorough thinking so that you could minimize the possibilities of mistakes. Same is true for life insurance, the ideal financial instrument to meet your life stage needs and provide protection against life risks. It is important to know your needs for life insurance and also review such needs annually or when there is a life-changing event so that you can plan for your changing financial requirements.... Read More
HDFC Life launches HDFC Life Cancer Care
HDFC Life, Indias leading long term private life insurance solutions provider today announced the launch of HDFC Life Cancer Care, a health plan that provides financial support on diagnosis of early or major stages of cancer. HDFC Life is the only private life insurance company to offer such a product. The plan is distinct from standard critical illness policies as it provides a fixed lump sum benefit on diagnosis of early and major stages of cancer, waives future premiums and also pays regular income on diagnosis for treatment of cancer.... Read More
Toyota Kirloskar Motor sells 12,965 units in May, 2015
Toyota Kirloskar Motor (TKM) sold 12,965 units in May 2015 compared to 13,228 units in May 2014. The company exported 1,448 units of Etios series this month... Read More
Hyundai domestic sales up by 3.4%
Hyundai Motor India Ltd, the countrys leading premium car manufacturer and the largest passenger car exporter registered the domestic sales of 37,450 units and exports of 15,065 units with cumulative sales of 52,515 units for the month of May 2015.
Maruti Suzuki May total sales at 1.14 lakh units
Maruti Suzuki Ltd has announced that it has sold total of 1,14, 825 units in May, a growth of 13.8%. This includes 1,02,359 units in domestic market and 12,466 units in export market. The sales figures for May 2015 are given.... Read More
Ashok leyland May total sales at 9294 Units
Ashok leyland May total sales stands at 9294 units. The company's LCV Sales was at 2,402 Units. The M&HCV sales was at 6892 units.
Eicher Motors May total CV sales at 4,035 units
Eicher Motors Total CV Sales stood at 4,035 units in May. The company sold 3,750 units in May, 2014. The Exports stood at 345 units in May as against 621 units in the corresponding period a year ago.
M&M total sales at 36,706 units in May
M&M total sales stands at 36,706 units in May 2015. While CV sales stands at 11,407 Units in May. The company's Total domestic Sales was at 333,69 Units in May, while exports also stood at 3337 units.
Honda Motorcycle total sales at 3.67 lk units in May
Honda Motorcycle total sales stands at 3.67 Lk units in May. The exports was at 13,786 Units.
M&M total sales at 36,706 lakh units in May
Mahindra & Mahindra announced its auto sales numbers which stood at 36,706 units during May 2015 as against 37,869 units during May 2015. The passenger Vehicle segment sold 18,135 units in May 2015 as against 19470 units during May 2014. The company domestic sales stood at 33,369 units during May segment 2015 as against 35,499 units during May 2014.
Volkswagen sales up 57% in May 2015
Volkswagen, Europes largest carmaker, has announced a 57% increase in sales in May 2015 at 4,167 units as compared to 2,657 units sold in May 2014. This increase in sales comes on the back of the recent successful launch of the new Jetta, which offers class-leading building quality, safety and performance. The Volkswagen Polo, the only hatchback in its segment that comes with a 4-star NCAP safety rating for adult occupants, also continues to contribute to Volkswagens increase in sales.... Read More
TVS Motor total sales at 2.2 Lakh Units in May
TVS Motor total sales stands at 2.2 Lakh Units in May. The Exports was at 43,595 Units. The 2-wheeler Sales in May was At 2.1 Lakh Units as compared to 1.97 Lakh Units (YoY).
Tata Motors total sales at 39,496 lakh units in May
Tata Motors continued to witness strong growth in certain key segments as passenger cars (excluding UVs), M&HCV and Exports grew by 32%, 17% and 47%, respectively, year-on-year; with the total commercial and passenger vehicles sales (including exports) in May 2015 of 39,496 vehicles, a growth of 5% over 37,538 vehicles sold in May 2014. The companys domestic sales of Tata commercial and passenger vehicles for May 2015 were at 34,818 nos., remained flat. Cumulative sales (including exports) for the company for the fiscal are 75,641 nos., higher by 6% over 71,442 vehicles, sold last year.... Read More
Suzuki Motorcycle India total sells 33,287 units in May 2015
Suzuki Motorcycle India Pvt. Ltd., a subsidiary of one of the worlds leading two-wheeler manufacturer Suzuki Motor Corporation, registered a 3.64% increase in their May 2015 sales figures as compared to May 2014. Suzuki Motorcycle sold 33,287 units in May 2015 as opposed to 32,117 units in May 2014, recording a growth in its overall sales volume. Suzuki Motorcycles has maintained a constant growth over the past few years.
Ford India sells 11,714 vehicles in May
Ford India sold 11,714 vehicles in combined domestic wholesales and exports in May, compared to 12,288 vehicles in the corresponding month last year. May domestic wholesales stood at 4,726 vehicles against 6,053 units in the same month last year, while exports grew to 6,988 vehicles compared to 6,235 units in May 2014. During the month, Ford commenced 10-week long roadshow to showcase its new compact sedan Figo Aspire at 40-locations in 25 cities across India.... Read More
Honda Cars India registers domestic sales of 13,431 units in May
Honda Cars India Ltd. (HCIL), leading manufacturer of premium cars in India, registered monthly domestic sales of 13,431 units in May 2015 against 13,362 units in the corresponding month last year, registering a growth of 1% . The company sold 26,067 units during April May15 as against 24,402 units sold during the same period last year, marking a growth of 7%. HCIL also exported a total of 655 units during May 2015.
Hero MotoCorp sales down 5.4% in May
Reiterating its market leadership, Hero MotoCorp Ltd (HMCL), the worlds largest two-wheeler manufacturer reported yet another month of over five lakh unit sales. HMCL sold 569,876 units of two-wheelers in May 2015. The company had sold 602,481 two-wheelers in the corresponding month last year.... Read More
Royal Enfield sales increases by 41.35%
Royal Enfield has reported 41.35% rise in total sales in May at 35,354 units as against 25,010 units last year in the same month. The exports stood at 739 units which is again a rise of 48 precent as 501 was last years figure.... Read More
ah! Mark Mobius to Invest in Entropy Innovation
Entropy Innovations, a Mumbai based engineering technology startup, has raised an undisclosed sum as angel capital through ah! Ventures, a startup focused growth catalyst bridging ideas and money. The Angels from ah! Ventures, together with Dr Mark Mobius, Executive Chairman of Templeton Emerging Markets and AdvantEdge Incubator partnered to fund the startup. The deal was solely advised and syndicated by ah! Ventures and led to closure on its private equity investment platform, CLUBah.com.... Read More
Monsoon will be normal, says Skymet
Skymet believes that weather forecasting agencies across the world are over-weighing El Nino's impact on Monsoon 2015. Skymet has been assessing other oceanic parameters and atmospheric conditions since December 2014, and will not change its stance that Monsoon will be normal. Skymet also believes that Monsoon 2015 will be promising for the farmers. The overall performance of Monsoon 2015 will be normal, but it will be weak in the sub-divisions of South Interior Karnataka, Tamil Nadu, Rayalaseema, East Madhya Pradesh and Arunachal Pradesh. Skymet has also deduced that Madhya Pradesh will be the worst affected this year...Read more
Farm sector growth: 0.02% Rural-Urban divide widens
Indias agriculture growth rate dropped to 0.02% in the last quarter of 2014-15, according to the latest government data, compounding predictions of a bad monsoon ahead. The meteorological department on June 2, 2015, lowered its rainfall projections, predicting the monsoon rainfall would be 88% of normal...Read More
Modi shifts to Delhi; investors move out of Gujarat PSUs?
Since Narendra Modi exited as Chief Minister of Gujarat and went on to become Prime Minister of India, the stocks of myriad state-owned companies in Gujarat have dropped below the benchmark indices, says an ET report. Gujarat State Financial Corp, Gujarat Alkalies, Gujarat Narmada Valley Fertilizers and Gujarat Mineral Development Corp underwent a decline of 18-45% this year, says the report...Read More
GDP growth rate signals definite positive developments: Rana Kapoor
It is pleasing to that finally green shoots of economic activity are getting converted into growth figures, apex industry body ASSOCHAM said. "The 7.5 percent GDP growth rate witnessed in Q4 of 2014-15 (y-o-y) signals definite positive developments," said Rana Kapoor, president of The Associated Chambers of Commerce and Industry of India (ASSOCHAM)...Read More
ATF price increased by 7.5%; non-subsidised LPG by Rs 10.50 in Delhi
The Jet fuel price was increased by a steep 7.5% and rates of non-subsidised cooking gas (LPG) by Rs 10.50 per cylinder. The Price of aviation turbine fuel (ATF), in Delhi was increased by Rs 3,744.08 per kilolitre (kl), or 7.54 per cent, to Rs 53,353.92, oil companies reportedly said. The price of non-subsidised or market-priced domestic cooking gas (LPG) was hiked to Rs 626.50 per 14.2-kg cylinder in Delhi. This move comeson the back of a Rs 5 per 14.2-kg cut in rates effected from May 1.
GDP growth could touch more than 10% if GST comes into force: Adi Godrej
During a conversation with NDTV, Adi Godrej, Chairman of Godrej Group said that the company's businesses had performed well during the last financial year when the economy did not perform up to the mark. He applauded the Narendra Modi government for setting the path of reform and said that India's GDP growth could touch more than 10% if Goods and Services Tax (GST) comes into force by April 2016.... Read More
GMR Infrastructure Q4 net loss at Rs. 8,919 million
GMR Infrastructure Ltd has posted a net profit / loss after tax, minority interest and share of profit / (loss) of associates of Rs. 8919 million for the quarter ended March 31, 2015 as compared to net profit of Rs. 11701.80 million for the quarter ended March 31, 2014. Total Income has decreased from Rs. 30668.10 mn for the quarter ended March 31, 2014 to Rs. 29977.30 million for the quarter ended March 31, 2015. The Group has posted a net profit / (loss) after tax, minority interest and share of profit / (loss) of associates of Rs. 27332.90 million for the year ended March 31, 2015 as compared to net profit of Rs. 100.10 million for the year ended March 31, 2014. Total Income has increased from Rs. 109690.90 million for the year ended March 31, 2014 to Rs. 114151.40 million for the year ended March 31, 2015.
L&T bags Defence order worth Rs. 468 crore
Larsen & Turbo has been awarded a contract worth Rs. 468 crore by the Ministry of Defence for the design and construction of a floating dock. The floating dock is expected to significantly enhance the support infrastructure of the navy for docking of warships and submarines for repairs and refits.
Infosys on track to meet revenue guidance: Vishal Sikka
Infosys is on track to meet full year revenue guidance of 10%-12% growth, chief executive Vishal Sikka reportedly said. The company is planning to implement new incentive structure that may include a different stock option plan, Sikka said at an investor conference. Sikka also stated that said company bagged six major deals this quarter that would contribute more than $50 million in annual revenue.
Indian IT Services Market grew 7.1% yoy in CY 2014: IDC
According to IDCs H2 2014 IT Services tracker data, the Indian IT Services market grew 7.1% year-on-year to reach Rs. 470,708.13 million (US$7,719mn) in calendar year 2014. During second half of 2014, compared to same period last year, the market saw slight uptick primarily on the back of higher demand for hosted infrastructure, hosted applications services, custom application development, IT consulting, and application management services. Besides this, there was a renewed focus on infrastructure projects.
Infosys appoints R Seshasayee as Non-Executive Chairman
Infosys Limited announced that in a meeting held earlier today, the Companys Board unanimously approved the appointment of Mr. R. Seshasayee as Non-Executive Chairman of the Board with immediate effect. K V Kamath is stepping down from his position as Chairman of the Board and as an Independent Director of the Company, consequent to his nomination as President of the BRICS New Development Bank. Seshasayee has been an Independent Director on the Companys Board since January 2011 and is the chairperson of the Audit Committee. Mr. Seshasayees other board positions include Non-Executive Vice Chairman of Ashok Leyland Ltd. and Chairman of IndusInd Bank Ltd. Commenting on the appointment, outgoing Chairman. K V Kamath said, "I am proud to have served as a member of the Infosys Board and as its Chairman. The Board has made the most appropriate choice in nominating Mr. Seshasayee as my successor, given his vast and varied experience in leading large public companies, and his strong contribution to Infosys, during the last four years of his association. Infosys will benefit greatly from his sagacity."...Read More
Just Dial approves buy-back of equity shares
Just Dial Ltd has announced that the Board of Directors of the Company at its meeting held on June 04, 2015, inter alia, has approved the proposal to buyback the fully paid-up equity shares of face value of Rs. 10 each of the Company ("Equity Shares") from the shareholders of the Company on a proportionate basis through a tender offer (the "Buy-back"). The Buy-back shall be up to 25% of the aggregate of paid-up capital and free reserves of the Company at a maximum price Rs. 1,550 per Equity Share, subject to the approval of the shareholders of the Company and approvals of statutory, regulatory or governmental authorities as may be required under applicable law.
10 coal mines to be put up for auction for unregulated sector: Anil Swarup
Anil Swarup said that 10 coal mines will be put up for auction to cater to the unregulated sector. He also stated that it will start auctioning Coal linkages from Unregulated Sector. "We are looking at earmarking more coal for unregulated sector, " Swarup said at a press conference. The total extractable reserves from coal blocks will be auctioned at 356 mt. "We also expect to open 60 new mines to achieve coal production target of 1 bn ton," the Coal Secretary said.
Coal Ministry asks Reliance Power to revise production from Sasans coal mines
The Ministry of Coal has asked Reliance Power Ltd to revise production plan from two mines allocated to the Sasan ultra mega power project to 16 million tonne per annum, according to reports. The production has already started from these mines, the report added.
Coal India hopes to maintain EBITDA at 30% in FY16: Bipin Kumar Saxena
In an interview with CNBC TV18, Bipin Kumar Saxena, Director, Coal India, said that in FY15, the e-auction volumes were around 46 million tonnes as compared to a level of 58 million tonnes in 2013-2014. For the year FY16, the company is planning coal level between 7-10 percent which will be the range for the auction. Moving forward, in terms of incentives which the company received in the final quarter was around Rs. 800-1000 crore as compared to Rs. 1200 crore in FY14. Talking about the volumes in the last quarter, he said, "I do not know the volume but the total year was 46 and in fact in the first half of the year, it was less but the second half of the year, the power plants got stocks build up to a level of 26 million tonnes. The e-auctions volumes also increase subsequently".... Read More
SAIL Q4 PAT at Rs. 334 crores; Operating Margin at 9%
SAIL produced 3.72 million tonnes (MT) of crude steel in Q4 which was 10% higher as compared to 3.38 MT over the corresponding period last year (CPLY). The profit After Tax in Q4 FY15 was Rs 334 crores against Rs 453 crores CPLY. SAIL has maintained its output and braved the headwinds by improved production, better techno-economic parameters and strategic policy initiatives. In FY15, SAIL achieved the highest ever concast production at 10.34 MT with a growth of 6% over the previous best of 9.8 MT achieved last year.... Read More
RIL to produce 23 mmscmd from five discoveries in KG-D6: Oil Ministry
Reliance Industries will produce 23 mn standard cubic meters per day of more gas from five discoveries in KG-D6 block by 2016-17, the Oil Ministry reportedly said in its latest annual report. The Ministry reportedly stated that 10 mmscmd gas will come from four satellite fields of D-2, D-6, D-19 and D-22 in the eastern offshore Krishna Godavari basin block KG-D6 and another 13 mmscmd from D-34 discovery. Out of the 254 blocks awarded for exploration of oil and gas under nine rounds of New Exploration Licensing Policy (NELP) since 1999, only 96 are operational, says report.
Vedanta raises stake in Cairn India; acquires 4.98% for $315 mn
Vedanta Limited has entered into an agreement with a wholly owned subsidiary, Twinstar Mauritius Holdings Limited ("TSMHL"), whereby TSMHL has transferred 4.98% of its stake in Cairn India Limited ("Cairn India") to Vedanta Limited for a cash consideration of US$315mm. The funds received by TSMHL will be used to service existing debt obligations at TSMHL. Vedanta Limited's ownership in Cairn India does not change as a result of this share transfer.
BPCL expects FY16 refining margins to dip to $4-6 per barrel
The robust gross refining margin of $8 a barrel seen in the last quarter of FY15 may slip to $4-6 per barrel in the current fiscal. Bharat Petroleum Corporation reportedly said that the robust gross refining margin of $8 a barrel reported in the fourth quarter of 2014-15 is not sustainable. The company expects it to decline to $4-6 per barrel in the current fiscal. "The fourth quarter GRM had been exceptionally good due to several reasons and these levels are not sustainable. Our GRM will be in the range of $4-6 a barrel going ahead," P Balasubramanian, director-finance, was quoted as saying in ET.
Natural gas output to increase 50% by 2018-19
India's natural gas output may rise by 50% to 146.87 million standard cubic meters per day by 2018-19 on account of higher production from ONGC fields, Oil Ministry reportedly said. The ministry reported that domestic gas production will rise from 98.15 mmscmd in 2014-15 to 99.87 mmscmd in the current fiscal.In 2016-17, the output will increase to 112.95 mmscmd and finally to 146.87 mmscmd in 2018-19. ONGC production will include 4.66 mmscmd from New Exploration Licensing Policy (NELP) block, the report added.
Govt directs IOC, HPCL to procure crude oil from Iraq
The Exchange had sought clarification from Indian Oil Corporation Ltd with respect to news article appearing on CNBC TV 18 on June 03, 2015 titled "IOC, HPCL in talks w/Iraq's SOMO to buy 4m bbls oil for strategic reserves" Indian Oil Corporation Ltd clarified that the Govt. of India has directed Indian Oil Corporation and HPCL to procure crude oil from Iraq for "Indian Strategic Petroleum Reserves Limited", a Wholly Owned Government Company under the Ministry of Petroleum & Natural Gas set up for storage of strategic reserves.
ONGC plans to invest Rs. 5000 crores: reports
Oil and Natural Gas Corporation is reportedly planning to invest Rs 5,000 crores. D K Sarraf, chairman and managing director ONGC reported, "We have decided to expedite development in our CBM blocks." The company stated that it has invested about Rs 510 crore on the four CBM blocks. Sarraf stated that the company may look for options if the companies are interested in an partnership, says report.
We are open for acquisitions, but selective with targets: Sun Pharma
Sun Pharma reportedly said that it is open to further acquisitions but will consider only targets "which will not require significant amount of management involvement".
"We continue to remain opportunistic for acquisition," Sun Pharma MD Dilip Shanghvi reportedly said in an analyst call. Dilip Shanghvi added"We continue to look for opportunities which are well managed and which can either operate as a standalone business. The Group has posted a net profit after minority interest of Rs. 8880.50 mn for the Quarter ended March 31, 2015 where as the same was at Rs. 15871.20 million for the Quarter ended March 31, 2014. Total Income is Rs. 65407.40 million for the Quarter ended March 31, 2015 where as the same was at Rs. 42524.40 million for the Quarter ended March 31, 2014.
Only ~25% Indians have access to healthcare services in India!
Swiss Re launched a report titled Health Risk Factors - India" in collaboration with the Harvard T.H. Chan School of Public Health. It highlights the considerable increase in incidents of non-communicable chronic diseases (NCDs) in India, including cardiovascular disease (CVD), making India a potential 'CVD capital' among the emerging markets. The research on the Systematic Explanatory Analyses of Risk factors affecting cardiovascular health (SEARCH) is conducted to better understand the relationship between risk factors and health outcomes, and build sustainable life and health insurance pools. The Indian health insurance sector is a mix of mandatory Social Health Insurance (SHI), voluntary private health insurance and Community-Based Health Insurance (CBHI). However, demand far outstrips supply. The result is queues, waits and scheduling at inconvenient times. The considerable underfunding of the public health services requires substantial numbers to parallel private health services. In urban areas, around 70% of households rely on the private sector as their primary health provider. The report highlights the potential positive impact insurance can have in supporting and financing improved health care solutions in the country. Read More
Life sciences sector: Poor compliance management hindering growth
The fast pace of growth in the life sciences sector in India appears to have outpaced compliance management processes, according to Deloitte Indias latest survey report titled Managing Growth Through Better Compliance Management. According to the report, the rise in regulatory noncompliance in the sector may be attributed to the evolving changes in regulatory standards, which have resulted in limited availability of compliance management professionals equipped to manage these requirements. About 55% of survey respondents have indicated that their compliance teams were not adequately trained to address regulatory requirements. Besides talent shortage, lack of an efficient internal control/ compliance system (61% of survey respondents), inadequate utilization of technology to identify red flags (45%), and lack of a zero tolerance approach towards noncompliance and malpractice (45%) were indicated as key contributors to noncompliance and malpractice in the sector. Read More
Prolonged stress leads to multiple inner health problems
Stress just the word may be enough to set your nerves on edge. Everyone is stressed in some form or other. Some people handle stress effectively or recover from stressful situations quicker than others. Stress is good if it is a short term phenomenon and pushes you to achieve your goals or targets, but it is harmful, if it prolongs or becomes routine. Stress can be defined as a physical, mental, or emotional factor that causes bodily or mental tension. We usually tend to think that stress can lead to negativity, but that isnt the case always. However, anything that puts high demands and forces you to adjust accordingly can be stressful. Stress may have adverse effect on your health, but one may not realize it. Chronic unrelenting stress has become so common in modern life; provoking feelings of hopelessness; what is usually termed as a defeat response. Stress and emotions related to stress trigger chemical reactions in the body and leads to increased fat storage, abdominal obesity, tissue breakdown, suppression of the immune system, increased risk for heart disease etc. Read More
Godrej Properties to develop residential project in North Bengaluru
Godrej Properties, the real estate development arm of the Godrej Group, has entered into a partnership to develop a residential project on the Doddaballapur Yelahanka main road in North Bengaluru. The proposed project will offer approximately 69,800 square metres (0.75 million sq. ft.) of saleable area and will be developed as a modern residential development. Yelahanka is well connected to the airport and key commercial catchments of CBD and Hebbal. The location benefits from a well-developed social and physical infrastructure making it a self-sustaining cluster.
Getting the most out of rental income-producing properties: JLL
Among many other things, you need to know how the different rental markets (read cities) are performing across the country, and how you can make your potential rental income grow faster than the market trends. If you have some surplus funds and are looking to invest in a property purely for generating rental income, your highest chances for success lie in educating yourself about the right opportunities and avoiding the wrong ones. Among many other things, you need to know how the different rental markets (read cities) are performing across the country, and how you can make your potential rental income grow faster than the market trends. But first, you need to understand how the rental property business works in the first place. A central concept here is rental yield.
Property Prices in Mumbai grow by 5% in Oct-Dec 2014 quarter: 99acres.com
Redevelopment activities continued with the same gusto this quarter as in Oct-Dec 2014. Amongst all the zones in the city, Navi Mumbai performed the best, witnessing 3% growth in Jan-Mar 2015 over Oct-Dec 2014. This was followed by MMR with 2% and Thane with 1% growth in property prices. 99acres.com Insite is a quarterly report focusing on capital and rental price trends in the residential realty market across seven major cities of India. According to the report, property prices per sq ft in Mumbai have witnessed a growth of 2% in Jan-Mar 2015, after seeing an increase of 5% in Oct-Dec 2014. Rental values have witnessed an average surge of 8% in the quarter ending March 2015 as compared to Jan-Mar 2014. Residential apartments captured 97% of the market. Independent houses/villas witnessed majority supply in the posh south and in areas seeing rapid redevelopment.
ECB leaves interest rates unchanged at 0.05%
The Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.05%, 0.30% and -0.20% respectively.
Strong dollar remains headwind to revenues for US multinationals: Fitch
Many U.S. multinational companies cited the strong dollar as a headwind to revenues during 1Q15 earnings calls; the dollar has climbed 9% this year against most major currencies. Companies with significant international sales and operating exposure are experiencing pressure not faced by peers with a domestic focused business, according to Fitch Ratings. Despite efforts by management to defray the impact on the bottom line through hedging agreements or operational adjustments, the profitability of companies with significant international exposure remains vulnerable to currency swings. When accompanied by other operational or capital structure challenges, the impact on a company's credit profile may be great enough to influence ratings. In early May, Fitch downgraded Avon Products Inc. to 'BB-' with a Negative Rating Outlook. Avon generates more than 80% of revenues internationally, with a strong orientation toward the emerging markets of Brazil and Russia. The value of the real and the ruble dropped by 9% and 21%, respectively, against the dollar in 2014, and the company absorbed $315 million of foreign exchange (FX) translation and transaction costs. In the first quarter of 2015, negative FX translation took 19% off the top line and dampened operating profits and EBITDA by $135 million...Read More
Global growth seen at 3.1% in 2015, rising to 3.8% in 2016
Global growth will gradually strengthen towards its pre-crisis trend rate by late 2016 as activity becomes more evenly shared across the major economies and overall external imbalances are less marked than in the run-up to 2007, according to the OECD's latest Economic Outlook. Labour markets are gradually healing in the advanced economies and risks of deflation have receded. But the global economy can be characterised as only achieving a muddling-through "B-minus " grade. Global growth in the first quarter of 2015 was weaker than in any quarter since the crisis. And although this softness is seen as transitory, productivity growth continues to disappoint, reflecting in part tepid business investment which has weakened the spread of new technologies. Weak investment in many economies is hindering an increase in consumption, job creation and wage rises, and eroding the prospects for long-term sustainable growth...Read More
The Evolution of the Oil Weapon
In the age of derivatives, swaps, and electronic money transfers, a new form of warfare has emerged: financial warfare. Recently, the US has passed sanctions on countries such as Syria, Venezuela, and North Korea, but the majority of energy related sanctions passed have been targeted at Iran and Russia. An estimated 68% of Russia's government revenue is derived from oil and gas exports, while 80% of Iran's revenue comes from oil exports. That presents a very large target for the use of financial weapons. To understand why financial warfare is now so commonplace, one must understand how it came into existence and what has been achieved taking such an approach. The oil weapon first came into existence in 1965, when Egypt nationalized the Suez Canal. What resulted from this was a declaration of war by France, England, and Israel. As a way to counter this invasion, Saudi Arabia decided to ban exports to England and France. This embargo turned out to have minimal economic impact, as the US increased shipments to Europe, and international oil companies redirected shipments to England and France...Read More
Asian Liquidity Stress Index stable at 24% in May: Moody's
Moody's Investors Service says that its Asian Liquidity Stress Index remained at 24% in May for the third consecutive month. The number of rated high-yield companies with Moody's weakest speculative-grade liquidity (SGL-4) score remained at 30, while the number of rated high-yield companies remained at 125. "The index -- which increases when speculative-grade liquidity appears to decrease -- remains well below the record high of 37% reached in December 2008 amid the global financial crisis," says Brian Grieser, a Moody's Vice President and Senior Analyst. "It is a bit above the index's long-term rolling average of 20.5% and its trailing 12-month average of 22.6%," adds Grieser, who was speaking on the release of Moody's latest report on the index, entitled "Asian Liquidity Stress Index." The liquidity sub-index for Chinese speculative-grade companies also was unchanged at 28.6% in May, as the number of Chinese companies with SGL-4 scores remained at 18, and the total number of high-yield Chinese companies remained at 63. And China's high-yield property sub-index was flat at 21.1% in May, while the Chinese high-yield industrial sub-index was high at 40.0% as the number of industrial issuers remained at 25...Read More
Etihad Airways net profit up 52% in 2014
Etihad Airways achieved its strongest financial results to date in 2014, posting a net profit of US$ 73 million on total revenues of US$ 7.6 billion, up 52.1 per cent and 26.7 per cent respectively over the previous year. The record performance, which marked the airlines fourth consecutive year of net profitability, also saw earnings before interest and tax (EBIT) up 32.5 per cent to US$ 257 million. Earnings before interest, tax, depreciation, amortisation and rentals (EBITDAR) were up 16.2 per cent to US$ 1.1 billion, representing a 15 per cent margin on total revenues. Etihad Airways financial statements are audited by KPMG and are in accordance with International Financial Reporting Standards (IFRS)... Read More
Former Jet Airways chief Wolfgang Prock-Schauer now joins GoAir as CEO
GoAir, one of Indias fastest growing airlines, today announced that its Board has appointed Wolfgang Prock-Schauer as the new Chief Executive Officer. With over 34 years of experience, Wolfgang has been associated with various commercial aviation businesses and has also served as the CEO of some of the major airlines across Europe and Asia. Austrian by nationality, Wolfgang will be seen at the helm of the airlines operations with effect from June 2015. Prior to joining Go Air, Wolfgang held the position of CEO & Executive Director of Air Berlin, a leading airline in Germany carrying over 32 million passengers annually, with 140 aircraft operations. He was instrumental in implementing comprehensive restructuring initiatives leading to improved performance of the airline. He has also served as the Chief Executive of British Midland for 3 years and Jet Airways in its most formative years between 2003 and 2009. Wolfgang is a graduate in Economics and Business Administration, from the University of Economics, Vienna.
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There appears to be no end to this carnage on Dalal Street. Just when markets made recovery in last weeks trade, selling pressure was on the rise yet again as Nifty tumbled by 3% this week. There's a lengthy menu of unappetizing factors, which has led to recent decline. The wording of monetary policy remained cautious and indicated a long pause before the next move on the interest rates. Despite a repo cut by 25bps, the policy statement mentioned that there is an element of uncertainty to the inflation outlook, wherein the probability of poor monsoon and volatility in oil prices pose as a serious risk. The central banks concerns about monsoon and likely pause for a while sent banking stocks in a tizzy. However, losses to some extent were restricted after heavy overnight showers in Kerala raised hopes of southwest monsoons arrival in India on Friday. This happened barely few days after the MET department downgraded its rain forecast to "deficient" and sparked fears of a drought in the country.
The coming week is expected to be data heavy, with market participants eyeing the release of Index of Industrial Production (IIP) data for the month of April on June 12, 2015. After rising to almost 5% in February, the index of industrial production (IIP) fell to a five-month low of 2.1% in March. The release of May Consumer Price Index (CPI) data on June 12, 2015 will also be keenly awaited. Consumer Price Index (CPI)-based inflation for April eased to 4.86 per cent, the lowest in four months, on the back of another month of declining food prices, data by the Central Statistics Office showed on Tuesday. However, prior to that Reserve Bank of India (RBI) is scheduled to announce current account deficit (CAD) data for Q4 March 2015 on June 8, 2015. India's CAD narrowed to $8.2 billion or 1.6% GDP in Q3 December 2014 from $10.1 billion or 2% of GDP in Q2 September 2014.
From a global perspective, the street would be eyeing the release of Chinese trade balance data for the month of May 2015 and Germany's industrial production data for the month of April 2015 on June 8, 2015. This will be followed by UK industrial production data for the month of April 2015 on June 10, 2015. Besides that China's industrial production data and retail sales data, both, for the month of May 2015 are scheduled to be released on June 11, 2015. Lastly, developments in Greece will be keenly tracked. Greece was due to repay 303.3 million euros to the International Monetary Fund on June 5, 2015. But Athens notified the IMF that it plans to bundle all its June loan repayments into one payment of around euro 1.6 billion due by the end of the month.
For the coming week, it would be advisable to remain cautious and stay light. We expect a short bounce after such a sharp decline.
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