F&O Expiry: Sensex slips 383 pts, Nifty below 11,000; financials decline

Domestic investors also remained cautious ahead of GDP data for the April-June quarter due on Friday.

8:55 AM

Toyota, Suzuki enter into capital alliance amid a shake-up in auto industry

Strengthening their existing collaboration to develop futuristic technologies, Japanese automobile majors Toyota Motor Corp and Suzuki Motor Corp on Wednesday announced a “capital alliance” for equity investment into each other. While Toyota will acquire 4.94 per cent shares of Suzuki, worth $908 million, the latter will make a $454-million investment in the biggest automaker of Japan. READ MORE

8:51 AM

Cabinet approves Rs 6,268 crore export subsidy for 6 mn tonnes of sugar

To absorb the surplus sugar, the Cabinet on Wednesday approved an export subsidy of Rs 10.44 per kg. This would enable mills to ship around six million tonnes (mt) of the sweetener in the coming season that starts from October.
 

The subsidy, which is expected to cost the exchequer almost Rs 6,268 crore, will give an additional cash flow to the tune of around Rs 18,000 crore to mills and help them clear cane dues. According to the government, the subsidy will be credited to bank accounts of farmers against cane price dues and are compliant with WTO norms. READ MORE

8:46 AM

SBI economists slam 'intelligentsia' for 'misunderstanding' RBI autonomy

In a note prepared in the context of the Bimal Jalan committee report which cleared transfer of Rs 1.76 trillion of its surpluses to the government, the economists said fears of "heavens falling" stoked by the "scholars" have been given a burial by the panel's recommendations.

 

Stating that the Rs 52,000-crore surplus payout is much lower than the estimates, the economists said, "the questions on the central bank are often misunderstood". READ MORE

8:41 AM

After corporate debt, retail loans face stress amid unemployment, slowdown

Credit analysts are keeping a watchful eye on signs of stress in Indian household debt after unemployment rose to a 45-year high and as lenders grapple with the worst soured debt levels of any major economy.

 

India’s bad debt malaise has centered on corporate debt, and loans to individuals have been seen as safer and a growth opportunity for banks. Given the slowdown in the economy and a drying-up of credit from shadow banks, analysts are signaling potential risks, though publicly available data on personal loan arrears is sparse. READ MORE

8:39 AM

CAG raises concerns over burgeoning costs of NHAI's projects, cautions govt

The Comptroller and Auditor General of India (CAG) has sought the cost audit of national highway projects as it feels expenses are rather high. It has said the government should curtail its debt-raising measures.

 

According to an official in the know, the CAG has raised concerns over the burgeoning costs of the National Highways Authority of India’s (NHAI’s) projects. It has alerted the Ministry of Finance, saying the NHAI’s borrowings are also the government borrowings and should be accounted for accordingly. READ MORE

8:37 AM

High price of gold poses systemic risk for jewellers who avail loan

Soaring gold prices may have raised value of the existing inventory of the bullion jewellery, but pose a systemic risk for medium- and large-sized jewellers, who avail gold loan from lenders and will be now required to pay the mark-to-market margin. Since the fresh sale of jewellery is quite low, they are forced to use the money collected through investors’ monthly deposit scheme for paying margin. READ MORE

8:34 AM

Expert Comment :: Shyam Sekhar on heavy trading by Mutual Funds

8:30 AM

Stocks to watch: Lakshmi Vilas Bank, Nestle, Indiabulls Hsg Fin, Sun Pharma

Here's a list of counters that may trade actively in today's trading session -

 

Nestle, Indiabulls Housing Finance: Nestle India will be included in the Nifty a month from now. The company is set to replace troubled NBFC Indiabulls Housing Finance in the broader index. 

Sun Pharma: A preliminary enquiry by the Securities and Exchange Board of India (Sebi) has found no merit in allegation of violation of securities laws, levelled by a whistleblower, against pharmaceutical major Sun Pharmaceutical Industries, Business Standard reported citing sources.

 

Lakshmi Vilas Bank: The private sector lender's MD & CEO Parthasarathi Mukherjee announced resignation on Wednesday, citing personal reasons. READ MORE

8:27 AM

FDI norms eased for single brand retail, digital media, manufacturing

The Union Cabinet on Wednesday relaxed the rules for single-brand retail, more than seven years after the foreign investment cap was removed for the segment to attract marquee foreign brands such as Gucci, Louis Vuitton, Ikea and others into the country. The latest government move is in line with the recent Budget announcements on FDI changes. READ MORE

8:22 AM

Silver catching up with gold rally, price spike sharply in global market

Silver prices reached a three-year high at the spot market here, closing 3.7 per cent higher at Rs 46,840 a kg, the highest since September 2016.

 

The metal has given a 29.5 per cent return in three months. On the Multi Commodity Exchange, the September silver contract which expires next week is trading at Rs 46,600 a kg. The December contract has reached Rs 48,000 a kg. READ MORE

8:21 AM

Lakshmi Vilas Bank MD & CEO Parthasarathi Mukherjee announces resignation

Even as the Reserve Bank of India is yet to take a call on Indiabulls Housing Finance's plans to merge with Lakshmi Vilas Bank, the mid-sized private sector lender on Wednesday announced the resignation of its chief executive officer Parthasarathi Mukherjee.

 

Mukherjee quit citing personal reasons, the bank informed the bourses late in the evening. Mukherjee, who had served the larger rival Axis Bank before joining the Tamil Nadu based bank in 2015, was given a two-year extension this January.

8:20 AM

Beating benchmark indices has been a challenging task: Vetri Subramaniam

The spike in volatility isn’t really concerning but generating alpha has become more challenging than in the past, says Vetri Subramaniam, head of equity at UTI AMC. In an interview to Samie Modak, Subramaniam shares his view on economic slowdown, valuations and the best investment category. Edited excerpts: How are you keeping your calm in these volatile times? The volatility that we are seeing isn’t exceptional. READ FULL INTERVIEW HERE

8:17 AM

Britannia back on investors' radar after sharp correction in past 3 months

After a sharp correction in the past three months, some factors currently seem to support Britannia Industries’ stock, in which investor sentiment is reviving.

 

The stock has gained about seven per cent in the last two trading sessions, sharply outperforming the Nifty FMCG index that inched up 0.4 per cent during the same period. The recent trigger is led by reports suggesting that good demand for cookies, at a time the biscuit industry is facing slower growth, could augur well for the company, which has an estimated 25-30 per cent revenue share of this segment. READ MORE

8:15 AM

Low dollar returns add to FPIs' woes; Dollex up just 39.8% since March 2014

The Sensex has risen 67.3 per cent since March 2014. The Dollex — which measures Sensex returns in dollar terms — has risen just 39.8 per cent. The fall in the rupee, from 59.89 in March 2014 to its current levels of 71.77, has taken away much of the gains that foreign investors would have otherwise made.

 

In fact, dollar returns over the longer term are even more abysmal. The Dollex is currently trading at 1.8 per cent lower than its pre-2008 crisis high. READ MORE

8:14 AM

OMCs bounce back to sweet spot as crude oil prices slip, GRMs improve

The share prices of public sector oil-marketing companies (OMCs) such as Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL), and Indian Oil Corporation (IOC), which had declined more than 30 per cent since their early-June highs, are now seen bouncing back.

 

The declining crude oil prices, improving gross refining margins (GRMs), and a decent outlook for marketing margins (earned by retailing fuel such as petrol, diesel, etc) bode well for the OMCs and their earnings. READ MORE