Trump to sign new refugee and immigration order  

US President Donald Trump is expected to sign a new refugee and immigration executive order on Wednesday, reports news outlet Independent. outlet Independent. A senior administration official told the news organisation about the new executive order on condition of anonymity. The new executive order was supposed to be signed last week, but as per spokesman Sean Spicer, the President was holding off "to make sure that when we execute this, it’s done in a manner that’s flawless.

Trump not against immigration of skilled workers: 

Mahindra US Mahindra, which has been in the US for just two decades, has now emerged as number three top selling tractor company in the country. With a nationwide network, Mahindra also provides employment to thousands of people here. Trump not against immigration of skilled workers: Mahindra US US President Donald Trump is open to immigration of skilled workers who can add to innovation, a top executive of India's Mahindra company in the US has said amidst the row over possible changes in H-1B visas which, experts believe, would hit India's booming IT sector. "I think Trump is for skilled workers. I don't think he's saying I don't want any immigration. He's talking about getting skilled workers, which will add innovation and technology to this one and we have a lot of Indian scientists. Mahindra, which has been in the US for just two decades, has now emerged as number three top selling tractor company in the country.

Jaitley opens London Stock Exchange in special ceremony

Following the market open ceremony, Nikhil Rathi, CEO, London Stock Exchange (LSE) plc, hosted a roundtable event with Jaitley, delegates from the Federation of Indian Chambers of Commerce & Industry (FICCI), fin-tech companies and leading investors. Finance Minister Arun Jaitley opened the London Stock Exchange in a special ceremony following which he discussed with investors the role of London in developing India's fin-tech ecosystem and delivering infrastructure development priorities. The ceremony was also attended by UK minister for international trade, Liam Fox. Following the market open ceremony, Nikhil Rathi, CEO, London Stock Exchange (LSE) plc, hosted a roundtable event with Jaitley, delegates from the Federation of Indian Chambers of Commerce Industry (FICCI), fin-tech companies and leading investors.

Brokerages cheer Bharti-Telenor's deal, but flag sector issues 

On the debt front, Motilal Oswal said, “With an operating cash flow of Rs 32,000 crore, net debt of Rs 1,02,000 crore, the investment would add hardly 2 percent to net debt, which would be offset by the EBITDA contribution from the merger.” The firm also foresaw a better roll-out of 4G services on 1800 MHz which remains the most efficient due to its well-developed ecosystem. Deutsche Bank maintains its buy call on the stock with a target price of Rs 400. It feels that Telenor’s spectrum liability would account for a large part of the acquisition cost. “Adjusting for the upfront payment, the license-fee set-off and the annual payments made to date, we estimate Telenor’s outstanding spectrum liability would be around Rs 1,600 crore (USD 230 million). This would transfer to Bharti in the event of the acquisition.” However, Fitch felt that Bharti’s credit profile would remain unaffected as benefits from additional spectrum assets will offset spectrum liabilities taken over. Spectrum Needs & User Base ICICI Securities maintains its buy call on the stock with a target price of Rs 410 based on better prospects as well as no extra spectrum needs. The brokerage feels that the telecom firm could further cement its position in the telecom space with a combined subscriber base of 31 crore. It remains a preferred choice owing to the superior operating metrics, analysts at the firm wrote. 

Jio effect: Airtel may let customers enjoy free domestic roaming 

Airtel customers have something to cheer about The telco has decided to do away with national roaming charges on its network for both calls and internet services, reports Economic Times. Airtel customers have something to cheer about. The telco has decided to do away with national roaming charges on its network for both calls and internet services, reports Economic Times, quoting sources. A formal announcement is yet to take place. The move will benefit about 268 million mobile customers of Bharti, who have high-end bundled plans that offer free calling, currently limited to a small segment of subscribers. The company also added that there will be no premium on outgoing calls. The offer comes on the back of Reliance Jio’s introduction of new pricing plan, which also includes all domestic voice calls to any network to always remain free. Competition in the telecom industry is getting intense and price wars have gone to another level. 

Soon, you can use Aadhaar for fund transfer without bank account 

The 12-digit Aadhaar number may soon be a payment address for sending and receiving money irrespective of linking the unique ID to a bank account. IndiaPost, which plans to roll out full-fledged payments bank in September, plans to introduce a solution to make Aadhaar a payment address which can work with or without a bank account. The 12-digit Aadhaar number may soon be a payment address for sending and receiving money irrespective of linking the unique ID to a bank account.

Infosys to tweak Articles, likely to announce share buyback soon

 After Tata Consultancy Services, the country’s second largest software company Infosys may soon announce it’s first-ever share buyback. The company has sought shareholders’ approval to tweak its Articles of Association, which may include a provision for a buyback.  After Tata Consultancy Services , the country’s second largest software company Infosys may soon announce its first-ever share buyback. The company has sought shareholders’ approval to tweak its Articles of Association, which may include a provision for a buyback. Media reports suggest the company could look at a buyback of around USD 2.5 billion (roughly Rs 12,000-13,000 crore) in April or May and it is believed that the promoters, led by founder and former chief NR Narayana Murthy, may be in favour of the move. Earlier this week, industry leader TCS announced buyback worth up to Rs 16,000 crore at Rs 2,850 per share, a 11 percent premium to the market price on the day. It was preceded by Cognizant, while HCL Tech also said it was exploring the possibility of a buyback.

Bharti's decision to buy Telenor India sends stock soaring 10% 

 The stock has seen strong movements, posting a rise of over 18 percent in the past one year. It touched its 52-week high of Rs 390.55 on Thursday. Shares of Bharti Airtel rose over 10 percent intraday Thursday after the company announced that it is acquiring Telenor India. The company entered into a definitive agreement with Telenor South Asia Investments to acquire Telenor (India) Communications, subject to approvals from the regulator, it told the exchanges on Thursday. The cost of this acquisition is still under finalisation. Sources tell CNBC-TV18 that the deal’s value could be pegged roughly at Rs 6,800-7,000 crore, which includes Telenor India’s debt of Rs 1,500 crore. As part of the deal, Airtel will buy Telenor India's running operations in seven circles—Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East), UP (West) and Assam. These circles, Airtel says, represents a high population concentration and a high potential for growth. The firm will also get additional 43.4 MHz spectrum in 1800-MHz band from Telenor India.

Google rolls out AI tool to combat online trolls 

 Google said it will begin offering media groups an artificial intelligence tool designed to stamp out incendiary comments on their websites. Google rolls out AI tool to combat online trolls Google said it will begin offering media groups an artificial intelligence tool designed to stamp out incendiary comments on their websites. The programming tool, called Perspective, aims to assist editors trying to moderate discussions by filtering out abusive "troll" comments, which Google says can stymie smart online discussions. "Seventy-two per cent of American internet users have witnessed harassment online and nearly half have personally experienced it," said Jared Cohen, president of Google's Jigsaw technology incubator. "Almost a third self-censor what they post online for fear of retribution," he added in a blog post yesterday titled "When computers learn to swear". Perspective is an application programming interface (API), or set of methods for facilitating communication between systems and devices, that uses machine learning to rate how comments might be regarded by other users. The system, which will be provided free to media groups including social media sites, is being tested by The Economist, The Guardian, The New York Times and Wikipedia. Many news organisations have closed down their comments sections for lack of sufficient human resources to monitor the postings for abusive content. "We hope we can help improve conversations online,"

Market to open on positive note led by Asian cues:

 SMC Global Market is likely to start on a positive note as Asian stocks rise even as Japan’s stocks struggle against a strengthening yen, says SMC Global. , SMC Global | SMC Global’s Outlook for the day The market is likely to start on a positive note as Asian stocks rise even as Japan’s stocks struggle against a strengthening yen with markets from Hong Kong to Singapore advanced as Oil extended gains after OPEC’s top official said the group intends to achieve full compliance with a deal to trim production. The European markets were mixed and the US markets were up and stayed that way as US stock indexes posted record highs, as Expectations for an interest-rate increase at the Fed’s next policy meeting have been on the rise.

Market to open on flat note:

 SMC GlobalMarket is likely to open flat as Asian shares stalled after US Federal Reserve minutes showed officials were confident they would not have to rush to tighten interest rates, says SMC Global. , SMC Global | SMC Global’s Market Outlook: Outlook for the day The market is likely to open flat as Asian shares stalled after US Federal Reserve minutes showed officials were confident they would not have to rush to tighten interest rates. Meanwhile, the Indian markets may see volatile moves in trades today as the derivatives contract for the month of February expire today. The European markets were up and the US shares were mixed with Wall Street showing a lack of direction ending little changed.

SP-Cong tie-up has wiped the smile off Modi's face:

 Rahul Gandhi Rahul, who is contesting the crucial state polls from Amethi, also took a dig at Modi's "adopted son of Uttar Pradesh" remark. SP-Cong tie-up has wiped the smile off Modis face: Rahul Gandhi Congress vice president Rahul Gandhi claimed that the coming together of Samajwadi Party and Congress for the Uttar Pradesh Assembly polls has wiped the smile off Prime Minister Narendra Modi's face. Rahul, who is contesting the crucial state polls from Amethi, also took a dig at Modi's "adopted son of Uttar Pradesh" remark. "In 2014 Modi said 'Ganga maiya has called her son to Varanasi'. He said Varanasi was his mother and he was the son of Varanasi...

India can develop space station, says ISRO chief

 A long-term thinking was needed for setting up a space station, he said, adding "the sooner the better." Kumar said ISRO was also mulling tying up with the industry to enhance the country's satellite launching capability. India can develop space station, says ISRO chief Indian Space Research Organisation (ISRO) chairman A S Kiran Kumar said the country has the capability to develop a space station, but it needed a long-term approach and an ambitious planning. His comment follows ISRO display of technological prowess last week by launching 104 satellites in a single mission. "We have all the capabilities to set up a space station. The day the country takes the decision, we will 'ok' the project. Just draw a policy and provide us necessary funds and time," Kumar said here. He was in the city to attend the foundation day ceremony of Raja Ramanna Center for Advanced Technology (RRCAT). "We still talk about what would be the immediate benefits of a manned space mission. 

'Govt may cross Rs 45,500 cr divestment target this fiscal'

 "The response to recent disinvestment offers has been very good. It seems the disinvestment target for the current fiscal may be exceeded," one of the officials said. Govt may cross Rs 45,500 cr divestment target this fiscal The government hopes to overshoot the Rs 45,500 crore disinvestment target for the current fiscal amid strengthening of equity markets. Sources said the Finance Ministry cleared disinvestment in two more PSUs last week. "The response to recent disinvestment offers has been very good. It seems the disinvestment target for the current fiscal may be exceeded," one of the officials said. Another official said the stock markets are performing well and stake sale could be done at "better prices".

Centre okays building of over 90,000 houses under PMAY (Urban) 

"The Ministry of Housing and Urban Poverty Alleviation approved construction of 90,095 more affordable houses for the benefit of urban poor under Pradhan Mantri Awas Yojana (Urban) with an investment of Rs 5,590 crore and central assistance of Rs 1,188 crore," an official release said Centre okays building of over 90,000 houses under PMAY (Urban) The Centre approved construction of over 90,000 more affordable houses for the urban poor under Pradhan Mantri Awas Yojana (Urban) with an investment of Rs 5,590 crore. The central assistance for construction of these houses would be to the tune of Rs 1,188 crore.

Order on notes not an attempt at demonetisation

 "This is not an attempt to demonetise. It is an attempt to replace less effective notes with more effective notes. I understand people are making a different interpretations. Unfortunately that should not be the interpretation," he said. Reserve Bank Governor Raghuram Rajan today said the order withdrawing all currency notes printed before 2005 was not an attempt at demonetisation or had anything to do with the general elections. He also made it clear that the pre-2005 notes will continue to be legal tender.  "This is not an attempt to demonetise. It is an attempt to replace less effective notes with more effective notes. I understand people are making a different interpretations

Demonetisation hits micro-finance biz 

 Microfinance Institutions Network (MFIN), there was a decline of 26 percent in the number of loans disbursed and 16 per cent fall in loan amounts given in the October-December quarter of the current fiscal. |  Demonetisation took a heavy toll on cash driven micro-finance industry as both the number of loans given and amount disbursed fell significantly in the December quarter, says a report. According to the report by Microfinance Institutions Network (MFIN), there was a decline of 26 percent in the number of loans disbursed and 16 per cent fall in loan amounts given in the October-December quarter of the current fiscal. "The decrease in both disbursement and collection is due to the impact on industry post discontinuance of the High-Value Currency Notes (HCVNs) of Rs 500 and Rs 1,000," said the MFIN report. The pulling out of the currency from circulation significantly impacted the microfinance sector which is 99 percent cash driven, it said.

Majority of consumers willing to adopt mobile payments: 

Believe that relying on mobile payments could be a time-saver, according to the 'Visa Mobile Payments Majority of consumers in the country are ready to move away from cash and adopt mobile payments for their purchases, says a report. Consumers also believe that relying on mobile payments could be a time-saver, according to the 'Visa Mobile Payments Readiness Survey'. "When it comes to paying in a store, the majority of consumers in the country are prepared to leave their cash at home and use mobile payments," it said. The survey asked 1,000 consumers about their attitudes towards using their mobile phones to make purchases. It found that 93 percent of respondents were interested in using electronic payments more often. "Cashless payments are faster and more convenient than using notes and coins," Visa Group Country Manager (India and South) T R Ramachandran said. In the last quarter, Visa saw nearly 75 percent increase in payments volume in the country and the number of processed transactions more than doubled.

Majority of consumers willing to adopt mobile payments:

Consumers also believe that relying on mobile payments could be a time-saver, according to the 'Visa Mobile Payments Readiness Survey'. | Majority of consumers in the country are ready to move away from cash and adopt mobile payments for their purchases, says a report. Consumers also believe that relying on mobile payments could be a time-saver, according to the 'Visa Mobile Payments Readiness Survey'. "When it comes to paying in a store, the majority of consumers in the country are prepared to leave their cash at home and use mobile payments," it said. The survey asked 1,000 consumers about their attitudes towards using their mobile phones to make purchases. It found that 93 percent of respondents were interested in using electronic payments more often. "Cashless payments are faster and more convenient than using notes and coins," Visa Group Country Manager (India and South) T R Ramachandran said. In the last quarter.

Post Tata Sons debacle, Here’s what Cyrus Mistry is up to

 While committed to taking his legal battle against Tata Sons to its logical conclusion, Mistry is planning to start his own new venture Post Tata Sons debacle, Here’s what Cyrus Mistry is up to By Aveek Datta Forbes India The pitched corporate battle that began on October 24, 2016, with Cyrus Mistry being sacked as chairman of Tata Sons, continued on February 6, 2017 with his removal as a director on the board of the holding company of the conglomerate, in which his family holds an 18.4 percent stake. While Tata Sons may have been successful in removing all traces of Mistry from its headquarters at Bombay House, it may still be premature for them to claim victory, since a long-drawn legal battle is all but a given. Mistry, 48, and his family’s investment firms that have moved court against Tata Sons, its directors, the Tata Trusts and their nominees, fought tooth and nail to obtain a stay on the extraordinary general meeting (EGM) of Tata Sons’ shareholders where a resolution seeking his removal was to be put to vote. The National Company Law Tribunal (NCLT), which is hearing the main petition alleging oppression of shareholders and mismanagement, refused to grant the stay. The petitioners then moved the National Company Law Appellate Tribunal (NCLAT) in New Delhi, but to no avail. Consequently, the EGM went ahead on February 6 and, as expected, the shareholders of Tata Sons passed a resolution to remove Mistry as a director of the company. Sources close to the developments at Bombay House say that neither side is willing to let up.

Dow edges up to seventh straight record high

 The Dow Jones Industrial Average rose a marginal 0.02 percent to end at 20,624.05, while the S&P 500 gained 0.17 percent to 2,351.16. The Nasdaq Composite added 0.41 percent to 5,838.58. Dow edges up to seventh straight record high The Dow Jones Industrial Average barely reached a seventh straight record high on Friday and the S&P 500 and Nasdaq also closed at a record as gains in Kraft Heinz helped offset selling in energy stocks. After suffering losses for most of the session, the Dow and S&P 500 turned positive in the final minutes of a week fuelled by the "Trump Rally" that has seen stocks surge since the November presidential election. "Corporate earnings are fine, the economy's fine, the Fed's going to raise rates, and that's great for financials," said John Canally, chief economic strategist for LPL Financial. Kraft Heinz jumped 10.74 percent after it said it would continue to pursue a USD 143 billion bid for Unilever , despite being rebuffed. Unilever's US-listed shares surged 14.00 percent. Eight of the 11 major S&P sectors rose, with consumer staples adding 0.66 percent, helped by Kraft Heinz as well as a 4.32-percent increase in Colgate-Palmolive and a 4.19-percent rise in Kimberly-Clark .

Samsung India launches solar-powered refrigerators 

Consumer electronics major Samsung India has launched a range of solar powered smart convertible frost-free and direct cool refrigerators, targeting the semi urban and rural customers. Samsung India launches solar-powered refrigerators Consumer electronics major Samsung India has launched a range of solar powered smart convertible frost-free and direct cool refrigerators, targeting the semi urban and rural customers. Smart convertible refrigerator, which is the first of its kind in frost-free category, will have prices starting at Rs 27,250 and its mid-segment range begins from 253-litre and has multiple sizes up to 670-litre. On the other hand, smart digital inverter direct cool refrigerators' price will start at Rs 14,900, and the products range from 192 litre to 230 litre and will be available across key markets, the company said in a statement. Refrigerators in both the segments can be run on solar power as well as on home inverter.

ISRO launches record 104 satellites: How much could it earn?

 The Indian space agency has been in the limelight for the past few years for its economical project execution and 100 percent success rate in foreign satellite launches. India set a new record when space agency Indian Space Research Organization (ISRO) launched 104 satellites from 7 different countries in to orbit, beating its previous personal best of 20 satellites in one go. Out of the 104 satellites, 96 were from US, 3 from India and one each from Israel, Kazakhstan, Netherlands, Switzerland and UAE. Prior to India, Russia held the record when it sent 37 satellites in a single launch in 2014. The Indian space agency has been in the limelight for the past few years for its economical project execution and 100 percent success rate in foreign satellite launches. ISRO's low cost services are attracting a lot of foreign customers as new private players like SpaceX are yet to improve their cost effectiveness. While for a satellite launch, SpaceX will charge around USD 60 million, ISRO charged an average of USD 3 million per satellite between 2013 and 2015. Launched in 2014, India's Mass Orbiter Mission (MOM), also called Mangalyaan cost around USD 74 million as opposed to NASA's Mars orbiter MAVEN, which had a total mission cost of USD 672 million. Last year ISRO launched 10 Indian satellites and 22 foreign satellites. 

Banks have cut rates but RBI Guv thinks there's room for more

 Reserve Bank of India Governor Urjit Patel said that given the quantum of reduction in repo rates that have taken place over the past two years, there is some more scope for reduction in lending rates. Error loading player: No playable sources found The Reserve Bank of India at its monetary policy meet earlier this week took a call to hold rates and shifted its stance from accommodative to neutral. But today, Governor Urjit Patel said that given the quantum of reduction in repo rates that have taken place over the past two years, there is some more scope for reduction in lending rates. “There is scope for further reduction in lending rates. The weighted average lending rate should come down,” he said while addressing a press conference at the end of an RBI board meeting. Patel added that banks have benefited from huge deposits after demonetisation scheme was rolled out. Current and savings account (CASA) deposits have come into the system and the weighted average lending rate has been considerably less. He added that rates have been reduced for housing and personal loans but there are other areas where rate cut benefits can be passed on to.

Low-profile Guv Urjit Patel has ticked right boxes on policy

 Like his predecessor Raghuram Rajan, incumbent governor Urjit Patel has developed a knack for catching the market by surprise Two weeks ago, the Reserve Bank of India (RBI) surprised many when it left key rates untouched even  expected it to cut rates. Like his predecessor Raghuram Rajan, incumbent governor Urjit Patel has developed a knack for catching the market by surprise -- the skill was on display the most when the historic decision to phase out high-value currency notes was announced on the eve of November 8. (While it is perceived that the government took the decision, protocol dictates that such decisions are taken by the central bank. Accordingly, the decision to demonetise Rs 500 and Rs 1,000 was taken by the RBI on the 'advice' of the government.) Demonetisation led people to question Patel’s autonomy and muscle as the Reserve Bank chief. His reluctance to communicate proactively led people to believe he was kept out of the affair.

Under enigmatic Patel, Indians failing  

Reserve Bank of India would cut its key rate by a quarter of a percentage point. But the RBI held rates and moved to a "neutral" policy stance, signalling an end to India's longest monetary easing cycle since the 2008-09 global financial crisis. The move surprised Jose and crimped his expansion plans. "We were planning to buy two commercial vehicles to transport food and were expecting a rate cut. Now, we're forced to defer that plan." He was not the only one wrong-footed. Under governor Urjit Patel, the RBI has significantly reduced communication with markets after he took over in September,  of his public comments shows. Some critics say that a lack of clarity is pushing bond yields higher, and that in turn could send interest rates higher and restrain economic growth.

MCX signs MoU with Singapore Diamond Investment Exchange

 The MoU is intended to facilitate cooperation between the two exchanges in areas such as knowledge sharing and research, standardisation of the product for Indian markets and enhancing transparency in pricing, as well as to explore areas for further collaboration between the exchanges. MCX signs MoU with Singapore Diamond Investment ExchangeMulti Commodity Exchange of India Ltd (MCX) today said it has signed an MoU with Singapore Diamond Investment Exchange (SDiX) for establishing areas of cooperation. "We have singed an MoU with SDiX, the world's first and only commodity exchange trading in physically settled diamonds or establishing areas of cooperation, between the two exchanges. The MoU is intended to facilitate cooperation between the two exchanges in areas such as knowledge sharing and research, standardisation of the product for Indian markets and enhancing transparency in pricing, as well as to explore areas for further collaboration between the exchanges. India is the largest global hub for the cutting and polishing of diamonds, and has several thousand small medium and large enterprises that are involved in the business. 

Cabinet approves merger of SBI, 5 associate banks

 The merged entity will create a banking behemoth, one-fourth of market share in India’s banking sector (in terms of loans and deposits), with an asset base of about Rs 40 lakh crore from Rs 23 lakh crore. State Bank of India, the country’s largest bank, has received Cabinet approval to merge its five subsidiaries, which will make the bank among top 50 banks in the world. Finance Minister Arun Jaitley on Wednesday said the Cabinet has approved the merger of the SBI and its five associate banks — State Bank of Bikaner and Jaipur ( SBBJ ), State Bank of Hyderabad (SBH), State Bank of Mysore ( SBM ), State Bank of Patiala (SBP) and State Bank of Travancore ( SBT ). No decision, however, has been taken on merging Bharatiya Mahila Bank. Currently, no Indian bank features in the list of top 50 global banks. “We expect the data integration process to be completed in a month’s time. We are awaiting government notification for the effective date of merger. Stabilisation of the processes after the merger will be the biggest challenge.” "This merger is an important step towards strengthening the banking sector through consolidation of Public Sector Banks

Trump impact? Nasscom defers annual growth forecast to May

 The IT industry lobby Nasscom today said the sector will grow at the lower end of its revised target in fiscal 2017, but deferred guidance for the next financial year by a quarter, as the headwinds rise. Trump impact? Nasscom defers annual growth forecast to May The IT industry lobby Nasscom today said the sector will grow at the lower end of its revised target in fiscal 2017, but deferred guidance for the next financial year by a quarter, as the headwinds rise. Nasscom President R Chandrasekhar said the association will come out with its guidance for the IT and the business process management sector in the next quarter, most probably in May, which is an unprecedented move, once it is done with "deeper interactions" with customers and other stakeholders. But he did not quantity the revised number. Nasscom had, it can be noted, revised down its fiscal 2017 revenue growth target to 8-10 percent from an initial 10-12 percent as the headwinds started emerging.

Sensex opens higher, Nifty reclaims 8750; 

SBI, TCS lead gainers SBI gained 2 percent after cabinet approved merger of five associate banks with the bank. State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore rallied 6 percent eac Sean Darby of Jefferies says global equities are in a sweet spot with rising asset turnover and pricing power helping shares of the real economy while higher bond yields and firming input costs will weigh heavily on the bond proxies in 2017. As the China data demonstrates, it is better to be upstream rather than downstream, it feels. Value and earnings revisions styles still seem appealing. Turned modestly bearish on India since December 2016, Darby says. 9:25 am Oil Auction: State-owned refiners BPCL, HPCL and IOC alongside a company floated by directors of drugmaker Sun Pharma were declared as winners of the much-hyped small oil and gas field discovery auction. The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved award of 31 fields out of the 34 that had received bids.

Mukesh Ambani: Data the 'new oil', will trigger fourth industrial revolution

 Reliance Industries rode the commodities boom that started in the 1980s but Mukesh Ambani has no qualms in admitting that data is the greatest natural resource Reliance Industries rode the commodities boom that started in the 1980s but Mukesh Ambani has no qualms in admitting that data is the greatest natural resource today. Speaking at a NASSCOM summit, Ambani said data will be the “next oil” – reinforcing an opinion he had expressed at the launch of the multi-billion dollar Reliance Jio venture – and said it would trigger the fourth revolution. “Coal and steam taught us mechanization; electrical power and oil gave us tools of mass production; electronics, automation and silo-ised software gave us the basics of efficiency and productivity. Now we are at the doorsteps of the fourth revolution, which will be triggered by the convergence of the physical, digital and the biological science,

Infosys delayed recording minutes of Bansal payout till January

 The severance pay to Rajiv Bansal and the hike in CEO Vishal Sikka’s pay are at the heart of the corporate governance row at Infosys between the board and the co-founders The Infosys board initially did not take on record discussions relating to the severance pay of Rs 17.38 crore made to former Chief Financial Officer Rajiv Bansal at its meeting on October 12, 2015, says a report in the Mint newspaper , quoting a source. Infosys’s board only put this payment on record only in its board meeting of January 14, 2016 while announcing the third quarter numbers. The severance pay to Rajiv Bansal and the hike in CEO Vishal Sikka's pay are at the heart of the corporate governance row at Infosys between the board and the co-founders. In an interview to Network 18

Unwise' to wait too long to hike interest rates: 

Janet Yellen Waiting too long to raise interest rates would be "unwise" as economic growth continues and inflation rises, Fed Chair Janet Yellen told Congress on Tuesday. Waiting too long to raise interest rates would be "unwise" as economic growth continues and inflation rises, Fed Chair Janet Yellen told Congress on Tuesday. Repeating caution that she and other central bank officials have issued in recent months, Yellen said that even though the Fed expects to hike gradually and to keep policy accommodative, getting rates back to normal levels is important and hikes will be considered ahead. Market reaction was prompt, with government bond yields jumping on sentiment that Yellen was teeing up next month's Fed meeting as possible for a rate hike. "By leaving March rate hike options open, Chair Yellen is sticking with her playbook with repeated reminders that every meeting is in fact a live meeting," said Mark Hamrick, senior economic analyst at Bankrate.com. The Fed kept its target overnight lending rate near zero for seven years and raised just twice since — in December 2015 and again a year later. The funds rate is currently targeted in the 0.5 percent to 0.75 percent range. 

GST likely to halt economy, says Avendus' Andrew Holland 

 "Valuations are challenging. We are seeing early signs of pick-up from demonetisation but its not a V-shape pick-up and will not be a V-shaped recovery" Holland told reporters here. GST likely to halt economy, says Avendus Andrew Holland Even as the economy is getting itself together post-noteban shock, the implementation of goods and services tax (GST) is also likely to cause serious disruptions, Avendus Capital Alternate chief executive Andrew Holland said today. "Valuations are challenging. We are seeing early signs of pick-up from demonetisation but its not a V-shape pick-up and will not be a V-shaped recovery" Holland told reporters here. In a V-shaped decline, the economy suffers a sharp but brief period of decline with a clearly defined trough, followed by a strong recovery. 

Politicians who had to step down after court convictions 

'Chinnamma' Sasikala is not the first to have her political hopes dashed by the courts, and she won’t be the last. Others who have had to step down because of court convictions include former Bihar CM Lalu Prasad, Gujarat minister Maya Kodnani and political nomad Navjot Singh Sidhu. 'Chinnamma' Sasikala is not the first to have her political hopes dashed by the courts, and she won’t be the last. Others who have had to step down because of court convictions include former Bihar CM Lalu Prasad, Gujarat minister Maya Kodnani and political nomad Navjot Singh Sidhu. Lalu Prasad (convicted for corruption): The veteran Bihar politician is no stranger to corruption cases. He was accused in the fodder scam and a disproportionate assets case. In 1996, Yadav’s name surfaced in the Rs 450-crore fodder scam. In 1997, the CBI filed a chargesheet and made Yadav an accused in the case. He promptly installed his wife Rabri Devi as the Chief Minister. In 2013, a CBI court in Ranchi convicted Lalu in the fodder scam. Immediately after the verdict was pronounced, he was arrested and taken to Birsa Munda jail in Ranchi. He was also disqualified as a Member of Parliament and became ineligible to contest elections for six years under the Representation of People’s Act.

Retail inflation at 3.17% in January 

India’s retail inflation rate moderated to 3.17 percent in January from December’s 3.41 percent, mirroring weak demand as households and companies, hit by demonetisation-induced cash crunch, put off spending and investment.  India’s retail inflation rate moderated to 3.17 percent in January from December’s 3.41 percent, mirroring weak demand as households and companies, hit by demonetisation- induced cash crunch, put off spending and investment. High inflation hurts people’s buying power, while low inflation levels can indicate poor demand and weak economic activity. The moderation is sharper on an annualised basis. Retail inflation had grown 5.69 percent in January, 2016, indicating a more expansionary economy a year ago. The latest price data represents slide in shop-end sales, triggered by the unexpected ban on Rs 500 and Rs 1,000 currency notes in November, 2016. 

Consumer price inflation set to see upside pressure:

 Crisil Even as consumer price inflation (CPI) has come down due to a dip in food inflation and Index of Industrial Production (IIP) also seen a slip as a fallout of demonetisation, the former could see upside pressure hereon, Crisil said today. Consumer price inflation set to see upside pressure: Crisil Even as consumer price inflation (CPI) has come down due to a dip in food inflation and Index of Industrial Production (IIP) also seen a slip as a fallout of demonetisation, the former could see upside pressure hereon, Crisil said today. CPI inflation could see upside pressures hereon as some benefits from a high-base effect will begin to wear out and as the imported component of inflation nudges up, the rating agency said in a report. CPI softened 20 basis points to 3.2 percent in January from 3.4 percent in December, primarily because of a 70 bps drop in food inflation. IIP fell by 0.4 percent on- year in December on the back of 2 percent contraction in manufacturing sector. 

Inflation picks up to multi-year highs in China

 Much of the pick up in consumer prices was likely due to higher food and transportation prices heading into the long Lunar New Year holiday, the National Bureau of Statistics said. Inflation picks up to multi-year highs in China China's producer price inflation picked up more than expected in January to near six-year highs as prices of steel and other raw materials extended a torrid rally, adding to views that global manufacturing activity is building momentum. China consumer inflation also rose more than expected to near three-year highs. Much of the pick up in consumer prices was likely due to higher food and transportation prices heading into the long Lunar New Year holiday, the National Bureau of Statistics said. But mounting price pressures in China and many other developed economies have sparked talk of tighter monetary policy this year, after years of super-loose settings aimed at reviving economic growth. China's central bank raised short-term interest rates in recent weeks as it looks to contain financial risks from an explosive growth in debt.Consumer inflation quickened to 2.5 percent in January from a year earlier, the highest since May 2014 and just above market expectations the consumer price index (CPI) would rise 2.4 percent, versus a 2.1 percent gain in December. Food prices, the biggest component of CPI, rose by 2.7 percent in January from a 2.5 percent rise in December. Transportation and communication costs rose 2.3 percent, up from a 0.9 percent gain in December.

Consumer price inflation set to see upside pressure:

 Crisil Even as consumer price inflation (CPI) has come down due to a dip in food inflation and Index of Industrial Production (IIP) also seen a slip as a fallout of demonetisation, the former could see upside pressure hereon, Crisil said today. Consumer price inflation set to see upside pressure: Crisil Even as consumer price inflation (CPI) has come down due to a dip in food inflation and Index of Industrial Production (IIP) also seen a slip as a fallout of demonetisation, the former could see upside pressure hereon, Crisil said today. CPI inflation could see upside pressures hereon as some benefits from a high-base effect will begin to wear out and as the imported component of inflation nudges up, the rating agency said in a report. CPI softened 20 basis points to 3.2 percent in January from 3.4 percent in December, primarily because of a 70 bps drop in food inflation. IIP fell by 0.4 percent on- year in December on the back of 2 percent contraction in manufacturing sector. The fuel component of CPI rose afresh on rising crude oil prices and weaker rupee. Meanwhile, the persistent stickiness in core inflation is contrary to the refrain that demonetisation had materially dented core demand.

Fed could take the wheel from Trump and drive markets this week

 Since he was elected, President Donald Trump has taken the driver's seat for markets, pushing the obsessive focus on the Fed aside, with his promises of big pro-growth fiscal policies impacting market expectations. Fed could take the wheel from Trump and drive markets this week The Federal Reserve could rival the White House as a source of volatility in the week ahead. Since he was elected, President Donald Trump has taken the driver's seat for markets, pushing the obsessive focus on the Fed aside, with his promises of big pro-growth fiscal policies impacting market expectations. But the current back seat driver could grab the wheel for at least two days in the coming week, when Fed Chair Janet Yellen testifies before Senate and House committees on the economy and Fed policy. "Certainly investors are paying close attention and given the fact the VIX is … at some crazy low number, it's possible we see a volatility pop," said Jack Ablin, CIO of BMO Private Bank. The VIX, the CBOE's volatility index, was at a low reading of 10 on Friday, indicating to some a high level of market complacency, as stocks leap to record highs. "Just like last year, they [the Fed] started the year with a forecast where were going to have four rate hikes, and we got one. I think the same thing this year

Sebi keeping close watch on Infosys developments

 Infosys has become the latest major corporate to attract regulatory attention for alleged corporate governance lapses being played out in public after Tatas, United Spirits and Ricoh India, among others. Sebi keeping close watch on Infosys developments As IT giant Infosys remains embroiled in differences between its founders and the top management, markets regulator Sebi is keeping a "close watch" on all the developments with a "special focus" to ensure that minority investors' interest is safeguarded. Infosys has become the latest major corporate to attract regulatory attention for alleged corporate governance lapses being played out in public after Tatas,"It is a worrying trend that issues relating to corporate governance and intra-corporate disputes and differences are being played out in the open and through unconfirmed media reports at a number of corporates that have enjoyed bellwether -like status in their sectors.

Govt may rework indirect tax maths mid-way after GST entry

 Perhaps in a first, the government may have to recalibrate its budgetary tax collection estimate half-way after the goods and services tax (GST) comes into effect from July. Govt may rework indirect tax maths mid-way after GST entry Perhaps in a first, the government may have to recalibrate its budgetary tax collection estimate half-way after the goods and services tax (GST) comes into effect from July. In Budget 2017-18, Finance Minister Arun Jaitley used the traditional tool of setting a modest growth to the expected revenue collection in the current fiscal for indirect tax projections of the next financial year. By that yardstick, 2017-18 will be a different year compared with the past. Mid-way, GST will kick in by subsuming all central indirect taxes such as central excise and service taxes as also state levies like VAT into one.

Solar power tariffs may rise as depreciation benefit capped

 The government had earlier provided benefit of up to 100 percent accelerated depreciation (AD) to certain industrial sectors to give impetus to investment. Solar power tariffs may rise as depreciation benefit capped Solar power tariffs may rise by 10 paise per unit for new projects with the Budget 2016-17 today proposing to cap accelerated depreciation benefit at 40 percent, down from existing 80 percent. The government had earlier provided benefit of up to 100 percent accelerated depreciation (AD) to certain industrial sectors to give impetus to investment. This will now be restricted to 40 percent with effect from April 1, 2017. The new rate is proposed to be made applicable to all assets (whether old or new) falling the relevant block of assets, the Budget for 2016-17 presented by Finance Minister Arun Jaitley today said.

Govt to complete budgetary exercise this week in LS 

The government intends to complete the budgetary exercise within this week in Lok Sabha, with Finance Minister Arun Jaitley set to reply to the debate on the Finance Bill on Thursday. The government intends to complete the budgetary exercise within this week in Lok Sabha, with Finance Minister Arun Jaitley set to reply to the debate on the Finance Bill on Thursday. Jaitley, according to sources, will reply to the debate on Finance Bill after his return from Frankfurt, where is scheduled to attend ADB's annual general meeting. Jaitley will leave for Frankfurt tomorrow. The government will take up the guillotine with regard to demands for grants for all remaining Ministries tomorrow, completing the second phase of the budgetary exercise. The debate on the Finance Bill will be initiated on May 4 by Minister of State for Finance Jayant Sinha and Jaitley will reply to the debate the next day.

Mixed reaction by aviation, tourism industry experts to 

Budget Terming the budget as "overall, a well-balanced, pro-poor, pro-growth budget" Amber Dubey, Partner and Head (Aerospace and Defence) of KPMG in India said the announcement of select AAI airports in Tier 2 cities to be taken up for operation and maintenance in PPP mode is a development step. |  Aviation and tourism industry experts today gave a mixed reaction on the Union Budget. Terming the Budget as "overall, a well-balanced, pro-poor, pro-growth Budget" Amber Dubey, Partner and Head (Aerospace and Defence) of KPMG in India said the announcement of select AAI airports in Tier 2 cities to be taken up for operation and maintenance in PPP mode is a development step.The revenue generated can be utilised for airport upgrade, development of new regional airports and for reducing aeronautical charges," Dubey said. "Under Regional Connectivity Scheme (RCS) viability gap funding (VGF) will be exempt from service tax for a period of one year from the date of commencement of operations of RCS airport. 

Demonetisation delayed NPA resolution, merger by a quarter:

 SBI The demonetisation move has impacted the bad loan resolution and the merger of State Bank of India’s merger with its associates by one quarter, The demonetisation move has impacted the bad loan resolution and the merger of State Bank of India   ’s with its associates by one quarter, according to bank Chairman Arundhati Bhattacharya. On November 8 last year, the government made a sudden announcement of invalidating Rs 500 and 1000 currency notes putting the entire country and the banking system in a limbo for over two months. Speaking to the media in a conference call post results, Bhattacharya said that the focus was entirely on demonetisation by banks and the government. She said, “On resolutions happening, we were hopeful that things would start moving by this quarter. However, the demonetisation has actually put us back by a quarter. So, we are working very hard but we don’t know if they will come in this quarter or maybe slip over to the next year.” State Bank of India declared a 134 percent jump in its standalone net profit for October to December quarter. The last time the bank posted a year-on-year rise in its quarterly profit was the June to September quarter in 2015. “Our outlook on asset quality was Rs 40,000 crore (net NPAs) for this year. I don’t see this number coming down this year. But because the topline growth has been weak this quarter, the asset quality didn’t decline much, Bhattacharya said.

Mixed reaction by aviation, tourism industry experts to Budget

This should be extended to the entire duration of the VGF since by definition, the VGF is the subsidy paid by the government to make regional connectivity viable. A subsidy cannot be treated as taxable revenue," he added. Abolition of FIPB is a welcome step, he said adding there are enough checks and balances at Civil Aviation Ministry and DGCA to keep any undesired foreign investors out. "Awarding of operations and management of airports in tier II cities on PPP mode is a welcome move as it will help create a roadmap for private sector participation in airports in the country and help in improving the operations at these airports," Peeyush Naidu, Partner, Deloitte Touche Tohmatsu India said in his reaction. Albert Tjoeng, Assistant Director, Corporate Communications, Asia Pacific at International Air Transport Association (IATA) said, "The Finance bill 2017 has added new provisions for the future introduction of submission of PNR data by airlines to the Indian Customs. IATA hopes that the established global standards for transmission of PNRGOV data would be adhered to. "We would also urge that stakeholder consultations precede the development of any regulations detailing the form and data elements for this information." Kapil Goswamy, CEO and Managing Director BigBreaks.com, however, said the Budget has once again disappointed the travel industry. "Despite being a key sector of the economy that brings multiplier benefits, the travel and tourism sector stands largely ignored.

Infosys denies governance lapses, rift between founders, board

 Taking a strong stand on issues -- purportedly raised by the founders -- such as CEO's compensation and severance pay of former employees, Infosys said while the board appreciates and respects inputs from the founders, it is committed to fulfilling its fiduciary responsibility to "act independently". Infosys denies governance lapses, rift between founders, board Mired in controversy centring around differences between its founders and the management, Infosys denied any governance lapses and emphasised that its board is "fully aligned with the strategic direction" of CEO Vishal Sikka. Taking a strong stand on issues -- purportedly raised by the founders -- such as CEO's compensation and severance pay of former employees, Infosys said while the board appreciates and respects inputs from the founders, it is committed to fulfilling its fiduciary responsibility to "act independently".

Nifty reclaims 8800, Sensex firm in opening on Asian cues

 Tata Steel, SBI, NTPC, Wipro, Bharti Airtel, Grasim and Power Grid Corp were early gainers while M&M, Tata Motors, ICICI Bank, Aurobindo Pharma and BPCL were under pressure.Goldman on Lupin: Goldman Sachs revised FY17-19 EBITDA by 4-6 percent to factor in margin development and raised target to Rs 1,612 from Rs 1,541. The brokerage house feels product launch rate is a key upside risk for the stock while price erosion and execution at Gavis are downside risks. Shares of GPT Infraprojects rose 4 percent intraday as it has received order from Rail Vikas Nigam. The company has bagged an order worth Rs 217 crore from Rail Vikas Nigam. The order includes construction of important and major steel girder bridges, along with foundation, substructure and related projection works in connection with Mathura-Jhansi third line in Agra and Jhansi division on North central railway in the state of Uttar Pradesh, Madhya Pradesh and Rajasthan.

Sensex, Nifty off day's high; pharma stocks down, ITC drags

 ITC, ICICI Bank, Tata Motors, Lupin, Sun Pharma, M&M and Cipla were down 0.6-1 percent while Adani Ports was the biggest gainer among Sensex stocks, up 2 percent followed by HDFC Bank, SBI, TCS, ONGC and Axis Bank  indices were off day's high in morning after erasing some early gains, weighed by ITC, ICICI Bank as well as auto and pharma stocks. Investors await Q3 earnings of SBI, the country's largest lender. The 30-share BSE Sensex was down 5.99 points at 28323.71 and the 50-share NSE Nifty gained 4.55 points at 8782.95 but the market breadth remained positive. About 1135 shares advanced against 779 declining shares on the Bombay Stock Exchange. 

Budget 2017: Time to align with the changes in income tax rules

 Finance Minister has opted to offer a small concession on income tax front. However, he has also capped the benefit on income from house property. Balwant Jain (more) Company Secretary, Bombay Oxygen | Capital Expertise: Tax ,Property Balwant Jain The budget of 2017 has many provisions which affect an individual tax payer. Let us discus these in detail. Reduced tax rates for initial tax slab and imposition of surcharge on higher taxable income Looking at the fact that the tax base of the tax payer is very narrow in the country as compared to other countries, the finance minister did not have the luxury of increasing the present limit exemption limit of Rs. 2.50 lakh. In order to increase the tax base, the Finance minister has proposed reduced tax rate for the initial tax slab of Rs. 2.50 lakh to Rs. 5 lakh from 10% to 5%. This will reduce tax liability almost all the tax payers

Budget 2017: Time to align with the changes in income tax rules

 Finance Minister has opted to offer a small concession on income tax front. However, he has also capped the benefit on income from house property. Balwant Jain (more) Company Secretary, Bombay Oxygen | Capital Expertise: Tax ,Property Balwant Jain The budget of 2017 has many provisions which affect an individual tax payer. Let us discus these in detail. Reduced tax rates for initial tax slab and imposition of surcharge on higher taxable income Looking at the fact that the tax base of the tax payer is very narrow in the country as compared to other countries, the finance minister did not have the luxury of increasing the present limit exemption limit of Rs. 2.50 lakh. In order to increase the tax base, the Finance minister has proposed reduced tax rate for the initial tax slab of Rs. 2.50 lakh to Rs. 5 lakh from 10% to 5%. This will reduce tax liability almost all the tax payers.

Oil prices slump on bloated US fuel inventories Brent crude futures

 Oil prices, were trading at 54.53 per barrel at 0111 GMT, down 52 cents, or 0.94 percent, from their previous close. Oil prices slump on bloated US fuel inventories Oil prices dropped on Wednesday to extend falls from the previous day, as a massive increase in US fuel inventories and a slump in Chinese demand implied that global crude markets remain oversupplied despite OPEC-led efforts to cut output. Brent crude futures , the international benchmark for oil prices, were trading at 54.53 per barrel at 0111 GMT, down 52 cents, or 0.94 percent, from their previous close. US West Texas Intermediate (WTI) crude futures were at USD 51.52 a barrel, down 65 cents, or 1.25 percent. The slumps came after over 1-percent falls the previous day. Traders said that the sharp declines came on the back of unexpectedly big increases in US crude and refined product inventories, as reported by the American Petroleum Institute (API)  Crude inventories rose by 14.2 million barrels in the week to Feb. 3 to 503.6 million barrels, compared with analysts' expectations for an increase of 2.5 million barrels. Gasoline stocks rose by 2.9 million barrels, compared with analyst expectations in a Reuters poll for a 1.1-million barrel gain.

Genesis Colors gets Sebi nod for Rs 650 cr IPO 

The company had filed its draft red herring prospectus (DRHP) with Sebi in September. The regulator on February 3 issued its final observations on the draft offer documents, which is necessary for any company to launch a public offer. |  Genesis Colors gets Sebi nod for Rs 650 cr IPO Genesis Colors, which owns luxury brands like Satya Paul and Bwitch, has received capital markets regulator Sebi's go-ahead to raise an estimated Rs 650 crore through an initial public offering. The company had filed its draft red herring prospectus (DRHP) with Sebi in September. The regulator on February 3 issued its final observations on the draft offer documents, which is necessary for any company to launch a public offer. The IPO comprises fresh issue of shares worth Rs 380 crore and offer for sale up to 1,916,741 equity scrips by existing shareholders, as per the draft prospectus filed with Securities and Exchange Board of India (Sebi).

Bad news for logistics startups: Funding falls 68% in 2016

 Such startups, which are the backbone of e-commerce companies, managed to raise USD 124.61 million in 2016, significantly lower than the USD 385 million they had raised in 2015. Venture capital funding drastically dried up for hyperlocal logistics startups – the backbone of e-commerce companies – last year, falling 68 percent compared to the previous year and curtailing expansion plans, according to a report in The Financial Express. These startups managed to raise USD 124.61 million in 2016, significantly lower than the USD 385 million they had raised in 2015, according to data from venture capital intelligence company Tracxn. The top 10 startups - Ecom Express, Delhivery, Rivigo, BlackBuck, Xpressbees, GoJavas, Shadowfax Holisol Logistics, LogiNext and Qikpod - got 96.36 percent of the total funds raised last year. These companies mainly operate in the B2B, B2C logistics segments with focus on infrastructure, inter-city and international logistics, courier booking and IOT solutions among others.

China, Japan growth to slow sharply in 2016, warns

 IMF Government stimulus measures, lower commodity prices and low unemployment will help drive regional expansion, the International Monetary Fund said, and called on leaders to push on with reforms. China and Japan's economies are expected to slow sharply over the next two years but Asian growth will remain strong as domestic demand takes up the slack from weak global trade, the IMF said today. Government stimulus measures, lower commodity prices and low unemployment will help drive regional expansion, the International Monetary Fund said, and called on leaders to push on with reforms. However, in its Regional Economic Outlook for Asia and the Pacific, the Fund also warned of several external challenges, from weakness in advanced economies, weak global trade and increasingly volatile global financial markets. Since its previous outlook on the region in October, global markets have seen wild volatility, with worries over China's economy and plunging oil prices hammering shares in January and February, wiping trillions off valuations. While there has been a slight recovery since March, investors remain on edge.

FII  Neelkanth Mishra of Credit Suisse says

 India is the fifth-best performing market in 2017 (so far) globally. In the first five weeks of 2017, Indian equities have outperformed global equities by 10 percent, nearly reversing the under performance in November-December 2016. This has mostly been driven by relative P/E jumping from a near 10-year low of negative 1 percent to positive 5 percent now, he feels. Mishra remains constructive on narrower indices, given their significant global exposure and past positive correlation with commodity prices. He will look through distortions induced by strong flows in a market with disoriented expectations, and continue to prefer businesses with non-India exposure. 9:31 am Stake sale: ITC shares gained 5 percent after government confirmed that it sold 2 percent shareholding in the company via block deals. It is a part of FY17 divestment target of Rs 45,500 crore that has been revised recently from Rs 56,500 crore earlier

No minimum import price extension for 19 products: 

Steel secy Minimum import prices are short-term emergency measures while anti-dumping duty is a long-term measure, she said, adding that she expects to see steel prices stabilising from the current levels. There will be no minimum import price extension for 19 steel products, India's steel secretary Aruna Sharma told television channel ET .She said the government is gradually moving from minimum import price to the WTO-compliant anti-dumping duty. Minimum import prices are short-term emergency measures while anti-dumping duty is a long-term measure, she said, adding that she expects to see steel prices stabilising from the current levels

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Nifty reclaims 8800, Sensex gains 200 pts; Midcap at new high Tata Motors,

 Hero Motocorp, ICICI Bank, Lupin, SBI, Grasim and Tata Motors DVR were early gainers while M&M and ACC were losers.  Benchmark indices extended rally in morning, with the Nifty reclaiming 8800 level led by banks ahead of RBI policy meeting later in the week. The 30-share BSE Sensex was up 209.78 points at 28450.30 and the 50-share NSE Nifty rose 61.05 points to 8802. The market breadth was strong too. About 1468 shares advanced against  412 declining shares Credit Suisse maintained underperform rating on the stock, with unchanged target at Rs 2,750 and slashed FY18 EPS estimate by 3 percent. It says Q3 was good with 17 percent EBITDA beat driven by better margin & lower SG&A (selling, general and administration). According to the research firm, margin beat may not sustain but SG&A savings should continue. Court verdict on Aloxi can give maximum 18 months upside, it feels.  Mixo Das of Nomura says he has downgraded tactical stance on Asia ex-Japan equities from 'neutral' to 'cautious'.

Sensex, Nifty, Midcap continue to gain; ICICI leads, DRL drags 

ICICI Bank was biggest gainer among Sensex stocks, up 2.5 percent followed by ITC, HDFC, HDFC Bank, SBI, L&T, Axis Bank and Reliance Industries. Equity benchmarks as well as broader markets maintained early gains, with the Sensex rising over 150 points supported by banking & financials ahead of RBI monetary policy later in the week. The 30-share BSE Sensex was up 180.44 points or 0.64 percent at 28420.96 and the 50-share NSE Nifty rose 52.60 points or 0.60 percent to 8793.55. Dipen Shah of Kotak Securities says going ahead, the remaining quarterly results will be important to determine the impact of demonetisation. Focus will now shift to the RBI meeting this week wherein expectations of interest rate cuts have increased, after the Finance Minister set the fiscal deficit target at 3.2%, he feels.

Reuters Gold up on weaker dollar after US jobs data 

US job growth surged more than expected in January as construction firms and retailers ramped up hiring, but wages barely rose, handing the administration under President Donald Trump both a head start and a challenge as it seeks to boost the economy. Gd prices crawled higher on Monday on a weaker dollar after mixed US jobs data late last week lowered expectations for near-term interest rate hikes. FUNDAMENTALS * Spot gold had gained 0.2 percent to USD 1,222.30 per ounce by 0053 GMT. * US gold futures rose 0.2 percent to USD 1,223.20 per ounce. * The dollar Index was down 0.2 percent at 99.723. * US job growth surged more than expected in January as construction firms and retailers ramped up hiring, but wages barely rose, handing the administration under President Donald Trump both a head start and a challenge as it seeks to boost the economy. * Wall Street's top banks expect just two rate hikes from the Federal Reserve this year and see only modest risk to the US central bank being pressed into a more aggressive pace of monetary policy tightening, a Reuters polls showed on Friday. * Asian shares edged ahead on as Wall Street gathered momentum into a busy week of earnings with more than 100 major companies due to report, while the dollar was again hobbled by a lack of progress on US fiscal stimulus.

Withholding tax – Boon or nightmare? 

Taxpayers and business houses are willing to take on the responsibilities of collecting and depositing tax and undertake necessary compliances. However, generation of artificial demand and treating honest and innocent taxpayers at par is certainly something that needs to be addressed by the government. Rajeshree Sabnavis / Alpesh Gandhi The government’s focus on “Ease of doing business” and its tax agenda of having non-adverersial tax regime with specific emphasis on certainty and clarity in tax laws and reduce tax litigation is well known now. The government has taken numerous positive steps towards this agenda, which has been welcome by the business houses. Though withholding tax provisions has been an effective mode of recovery of tax, the complexity of the withholding tax laws and the compliance burden, which the business houses are facing, there is an immediate need for rationalisation and simplification of the withholding tax provisions in the Income-tax Act, 1961 (‘ITA’). Tax Deductor’s agony As the great Shri Nani Palkhivala rightly remarked “What is wrong with India is the pathological obsession displayed by the law makers who frame laws only with the tax evader in mind, regardless of the enormous inconvenience and harassment to the far larger section of honest taxpayers

A departmental store which is wholly preoccupied with prevention of shoplifting is a sure candidate for stagnation” The taxpayers and business houses are willing to take on the responsibilities of collecting and depositing tax and undertake necessary compliances. However, generation of artificial demand and treating honest and innocent taxpayers at par and in the same category as that of tax evaders, merely if certain procedural or administerial related nuances are missed, is certainly something that needs to be addressed by the government. Not only does the deductor step into the shoes of the payee and is required to make good the amount of tax which otherwise the payee is liable to pay, they are also required to compensate the government for the time delay by paying interest at exorbitant rates. Additionally, the deductors are not only partially denied of the claim of deduction of their otherwise eligible business expenditure, they are also fastened with various rigorous penalties and even prosecutions in few cases. 

 The withholding provisions, which are embodied in Chapter XVII-B of the ITA, itself are complex to apply. The deductors are often struggling with the interpretation of the tax laws as to whether a particular payment is subject to withholding or not or which provision should apply for a particular payment, especially considering the fact that the definitions in the withholding tax laws are widely defined, there have been amendments to the withholding tax laws on a frequent basis, especially to the definitions itself, some with retrospective effect, compelling the deductors to dance on a tight rope. This complexities increases manifold when the question of applicability of withholding on overseas payment gets involved, wherein apart from the interpreting complex sets of domestic tax rules, due cognizance of the international tax treaty provisions and their interplay with the domestic tax rules, also needs to be taken into account. In addition to above, the prevalent withholding provisions not only covers corporate taxpayers and business transactions but also personal transactions as well like payments made to non-residents for personal purposes, purchase of immovable property exceeding a certain threshold etc, which creates unnecessary stress and financial burdens on individuals and small taxpayers. Procedural bottlenecks

The government should ensure that tax deductors, as an agent, should not be burdened with such onerous penalties and administrative inconveniences. As regards withholding positions on various payments, the government should come out with comprehensive circular clarifying various withholding tax positions especially those which are litigative in nature, so that there is clarity on the withholding position that needs to be taken. Simplification of TDS rules like uniform moderate tax rates, rationalization of interest, penalty/ fee, TDS procedures like easy filing and correction of TDS statements would certainly help. Any procedural bottlenecks faced should be removed in 48 hours of the taxpayers informing the same on TRACES website. Such measures by the Government would go a long way in achieving its tax agenda of creating non-adversarial tax regime, certainty and clarity in tax laws and substantial reduction in tax litigation, apart from supplementing its “Ease of doing business” agenda

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