In a short, four-day trading week, the market was fairly circumspect and closed with marginal gains. The market was still trying to digest the happenings at Infosys. The Sensex closed with gains of 71.38 points, or 0.23 per cent, to close at 31,596.01 points. The Nifty gained 19.65 points, or 0.20 per cent, to close at 9,857.05 points.
Companies and Markets
Companies & Markets
Notwithstanding layoffs in the June quarter, the IT sector has registered a 9 per cent growth in hiring in July, says Naukri.com. According to web portal Naukri.com, the IT/software industry is on the path of recovery with 9 per cent YoY growth and has helped the job market recover with a 2 per cent growth in July.
Banking, financial services and insurance too have contributed to this growth.
Ashutosh Khajuria, executive director and chief financial officer at Federal Bank spoke to Payal Shah and Laxmikant Khanvilkar of TickerNews Service on varied topics ranging from outlook for the rupee, benchmark treasury yields, and Reserve Bank of India rate action. Below is an excerpt:
Where do you see the rupee by the end of this calendar year and fiscal year?
Indian stocks today shrugged off weakness in US markets as the Sensex surged over 110 points, with domestic investors doing the job amid positive Asian cues.
After sustained public anger over frequent rail accidents leading to big loss of lives, railway minister Suresh Prabhu has offered to tender his resignation from the council of ministers. Prabhu announced his decision on Twitter, but said that prime minister Narendra Modi has asked him to wait.
Government sources told Financial Chronicle that Prabhu’s resignation would be accepted shortly, as the prime minister has not turned down his offer.
The clamour for Nandan Nilekani’s return to Infosys became louder and clearer on Wednesday with institutional investors on Wednesday throwing their weight behind the former chief executive officer (CEO).
As many as 12 fund managers representing institutional investors in Infosys in a letter to the board said Nilekani “enjoys the confidence of various stakeholders” and should be invited to the board in “a suitable capacity” (see the full letter in the accompanying box).
While leaving domestic lenders out of its mega plan to repay debt, the Essar Group has decided to reward its former shareholders with an additional payment of Rs 75.48 per share and share with them the premium accruing to the promoters from the sale proceeds of the oil venture.
India’s regulator is putting a spotlight on dealings between banks and troubled borrowers by requiring listed companies to report within one working day missed interest or installment payments on loans.
Publicly traded companies in India from October 1 will need to notify the stock exchange of a default on a bank loan, following an order from the Securities and Exchange Board of India (Sebi) this month.
The move may help Indian authorities to stem mounting bad loans by putting pressure on borrowers to honour obligations and banks to improve credit vetting.
Micro-finance institutions (MFIs) have lost their lead in micro-credit to banks for the first time in last quarter. While some of the large MFIs have become small finance banks, the industry growth has stunted post-demonetisation.
Reliance Industries, owned by Mukesh Ambani, is considering entering the power-storage business with its partner BP Plc to expand into the country’s growing renewable energy sector, according to two people with knowledge of the plan.
The companies are considering a plan to set up energy storage projects near solar and wind energy installations, the people said, asking not to be identified, citing company policy. A decision on investment and implementation will be taken by December, they said.
Reliance didn’t respond to requests for comment. BP declined to comment.