Companies and Markets

Companies & Markets

Rupee may gain this week

The rupee may gain against the dollar in the week to December 22 on overseas fund inflows into local stocks after the Bhartiya Janata Party won the state elections in Gujarat and Himachal Pradesh, while thin volumes ahead of the festive season may cap the gains, dealers said.

“Investors are expecting the new BJP government in Gujarat to give special focus to the high-employment export sector, influencing more inflows into the market and, thus, appreciating the rupee,” said a dealer with a private sector bank.

Govt seeks Parliament nod for Rs 66,113 crore extra spending

The government on Monday sought Parliament approval for incurring additional expenditure of Rs 66,113 crore, including Rs 33,380 crore of net cash outgo, to fund ongoing schemes to provide electricity connections to poor, payment of urea subsidies and building national highways.

The expenditure includes 76 grants and 3 appropriations. Higher spending may have marginal impact on country's fiscal deficit that has already reached 96.1 per cent of full year target at the end of October to Rs 5.25 lakh crore.

Govt unlikely to table FRDI Bill in Budget session

The Financial Resolution and Deposit Insurance Bill may not be introduced in Parliament even during the Budget session, as the joint committee looking into it on Monday got an extension for submitting its report. Lok Sabha speaker Sumitra Mahajan informed the House that extension of time has been granted for the joint panel on the FRDI Bill “up to the last day of Budget session, 2018.”

Recap bonds rollout in Jan; SBI, PNB 1st claimants

The government is planning to start issuing the first phase of the Rs 1.35 lakh crore bank recapitalisation bonds in the first week of January after getting Parliament approval this month. The top three banks — SBI, Punjab National Bank and Bank of India — are likely to get majority of the funds for meeting the capital infusion criteria.

Airtel told to move LPG subsidies to bank accounts

State-run oil marketer Hindustan Petroleum On Monday asked Airtel Payments Bank to immediately transfer the cooking gas subsidies it had got back to the bank accounts of customers or to the oil companies.

The move comes after LPG subsidies of millions of customers have been credited to the Airtel Payments Bank accounts without their permission.

Look at stock ideas and individual companies in the coming year

THE market was volatile and yo-yoed on expected lines. The week ended on a positive note with the BSE Sensex gaining 212.67 points, or 0.64 per cent, to close at 33,462.97 points. The Nifty gained 67.60 points, or 0.65 per cent, to close at 10,333.25 points.

Budget triggers for foreign participation in GIFT likely

THE February 1 Union Budget may provide some incentives for foreign institutional investors to start transactions from the International Financial Services Centre at Gujarat International Finance Tech-City (GIFT-City), the newly created trading facility to bring parity with other finance centres like Singapore, London and Dubai. So far incentives have been provided for broking units but there is no incentive for buyers.

Irdai panel: Cut G-sec, up equity portion

In order to ensure that life insurance plans offer higher returns to policyholders, an insurance panel has suggested lowering investment in government securities and raising exposure to equities, property or corporate bonds.

At present, more than 60 per cent of funds from traditional life policies, pension and annuity plans have to be invested in G-Secs, which render them an internal rate of return of 2 to 6 per cent unlike debt MFs that offer 7 to 12 per cent.

Better targeting may help 10% cut in 3 major subsidies

The total subsidy on key three key items-- food, fuel and fertiliser- may be lowered by about 10 per cent from the current level of Rs 2.41 lakh crore by better targeting of beneficiaries under the DBT or direct benefit transfer scheme and successful execution of ongoing projects, highly placed sources said.

Govt suspends leave limit order for PSUs after staff backlash

An ill-thought decision of the Centre has drilled a hole of about Rs 1,000 crore in the coffers of central public sector enterprises (CPSEs). In doing so, it has ruined the government’s reputation among millions of CPSE employees.

The blame lies on a November 24 letter written by the department of public enterprises (DPE) to all CPSEs, informing them that encashment of in-service earned leave by PSU employees stands suspended with immediate effect and that only 300 days accumulated earned leave could be encashed at the time of superannuation.