Companies and Markets

Companies & Markets

Volatility index hovers near 52-week high, correction on the cards

The volatility index India VIX of NSE is hovering near 52-week high level, indicating a likely weakness to corrections after a steep rise to record high on Monday.

With over 600-point gain for Nifty 50, the rally was looking stretched and a consolidation at this juncture is a welcome sign, market observers said.

The benchmarks corrected moderately on Tuesday. The broader market indicators couldn’t hide the fear among the investors as 2,097 BSE stocks closed in the red and 748 stocks ended the day with gains.

Bulk deposit rates rise as credit growth picks up momentum

Your bank deposit rates are likely to fetch you more returns in the coming months as banks are witnessing an accelerated credit growth while deposit mobilisation continues to remain weak.

Leading banks have already hiked bulk deposit rates (deposits of Rs 1 crore and above) in the last few months. State Bank of India (SBI), the country’s largest bank, has hiked bulk deposit rates for deposits of Rs 1 crore to Rs 10 crore by 50-140 basis points effective Tuesday.

FDI equity inflows to services grew by 15% in 2017-18

The Narendra Modi government is banking heavily on its various reforms initiative to attract fresh capital inflows. The increase of Foreign Direct Investments (FDI) to the services sector by 15 per cent in the first seven months of the current fiscal is one such reform initiatives taken by the government which augurs well for the investing community and is expected to ensure that India remains an attractive investment destination. At least that’s what The Economic Survey-2017-18, presented in Parliament by union Finance minister Arun Jaitley on Monday, said.

Rebate on levies advantage for apparel exports

The Economic Survey found that the Rebates on State Levies Scheme (ROSL) had a positive impact on apparel exports compared to other goods which did not receive the benefits of the scheme. Further, it increased the exports of man-made fibre apparels more than that of natural fibre apparels. 

Tech, metals and banking stocks rally in New Year

Stocks in sectors like technology, metals and banking have largely driven the massive rally in the Indian market in New Year. These sectoral indices have hit their 52-week highs over the past few weeks and have outperformed benchmark indices like Sensex and Nifty by a large margin.

BSE IT index clocked the highest during the month as it surged 13 per cent from the beginning of the month, followed by the BSE Banking index with 8 per cent rise, while BSE Metal index rose 5 per cent.

Sensex and Nifty, while ruling at new all-time highs, have gained 6.5 per cent during 2018.

Survey highlights pressure points

The Economic Survey 2017-18 put a reality check on many government dreams — controlling fiscal deficit, investment revival, doubling farm income by 2022, to name a few — with strong challenges coming from rising crude prices, high asset valuations in the stock market and possible derailment or delay in stressed asset resolution and bank recapitalisation programme.

JSW may offer Rs 30K cr for Bhushan Steel

In a bid to give tough competition to others, JSW Steel is expected to double its bid value for debt-laden Bhushan Steel, a source privy to the development said.

Play the waiting game

The market continued the rally this week. Indices galloped on the first two days and the expiry day ended on a negative note. Though bulls had an upper hand in the series, they were unable to push things on the expiry day. The BSE Sensex gained 538.86 points, or 1.49 per cent, to close at 36,050.44 points. The Nifty gained 174.95 points, or 1.58 per cent, to close at 11.069.65 points. The rally has become so strong in recent days that it took a mere four trading sessions for the Sensex to rise from 35K to 36K. These should be cautionary signals.

Dividend distribution tax may stay

Companies hoping for relief from dividend distribution tax (DDT) may be in for a disappointment on February 1 when finance minister Arun Jaitley presents his government’s last full budget before polls in 2019.

The finance ministry is said to have decided against scrapping DDT in budget 2018-19 as such a step would dry up a stable and firm source of revenue at a time when GST collection is yet to stabilise and non-tax revenue scenarios are not exactly bright. Abolishing DDT will

BharatNet likely to get 100% hike in allocation

BharatNet, the Modi government’s flagship digital connectivity programme, may receive 100 per cent hike in budget allocation. This likely increase is seen as a government move to raise infrastructure spending and make BharatNet a part of infrastructure, said sources. BharatNet aims to provide high speed broadband in 1.5 lakh gram panchayats by the end of the next fiscal. Of the 2.5 lakh gram panchyats in the country, 1 lakh have already been connected with broadband under phase I, which ended on December 31, 2017.