businessfortnight

The S&P BSE Sensex and NSE Nifty 50 indexes opened lower in trade on Tuesday on the back of weakness in banking and financial services shares after the Reserve Bank of India warned that the banks may see bad loans double despite signs of an improvement in the economic impact of the COVID-19 pandemic. Meanwhile, weakness in other Asian markets also added to somber investor sentiment on Dalal Street. The Sensex fell as much as 187 points to hit an intraday low of 49,082.04 and Nifty declined as much as 52 points to hit low of 14,484.75. As of 9:23 am, the Sensex was down 105 points at 49,164.22 and Nifty declined 24 points to 14,460. Six of 11 sector gauges compiled by the National Stock Exchange were trading lower led by the Nifty Private Bank index’s 0.6 per cent decline after RBI’s warning on rising bad loans. The gross non-performing assets of banks may increase from 7.5 per cent in September 2020 to 14.8 per cent under a severe stress scenario. Even under a baseline scenario it

Domestic stock markets continued a record-breaking spree on Monday, with the S&P BSE Sensex index trading above the 48,000 mark for the first time ever, tracking record highs in Asian equities as investors pinned their hope on vaccines to eventually deliver a global economic upturn. The Sensex jumped 299.24 points, or 0.63 per cent, to an all-time high of 48,168.22 during the session and the broader NSE Nifty 50 benchmark soared to as high as 14,107.75, climbing up 89.25 points, or 0.64 per cent, from its previous close. Gains across sectors, led by banking, financial services, automobile and IT shares, supported the markets. The Sensex ended 307.82 points, or 0.64 per cent, higher at 48,176.80 and the Nifty added 114.40 points, or 0.82 per cent, to settle at settled at 14,132.90 — both record closing highs.  Tata Motors, GAIL, Tata Steel, Eicher Motors and ONGC, trading between 1.82 per cent and 3.11 per cent higher, were the top percentage gainers in the Nifty basket of 50 shares

The rupee surged by seven paise against the US dollar on Tuesday, December 29, to settle at 73.42 (provisional), amid positive domestic equities and weak American currency. This was the fourth straight session of the domestic unit’s gain against the dollar. At the interbank foreign exchange market, the local unit opened at 73.42 against the dollar and registered an intra-day high of 73.34. It witnessed a low of 73.44. In the opening session, the rupee rose by 11 paise at 73.38 against the dollar keeping on track with stronger Asian peers. The domestic unit finally closed at 73.42 against the greenback, registering a rise of seven paise over its previous close. On Monday, December 28, the rupee had settled at 73.49 against the American currency. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.32 per cent to 90.04. According to traders, the sustained foreign fund inflows also supported the rupee. ”RBI was present at 73.50 yest

Domestic share markets scaled new peaks on Monday tracking gains in Asian equities, as investors remained optimistic about COVID-19 vaccines and US President Donald Trump’s approval of a pandemic relief package aided risk sentiment globally. The S&P BSE Sensex index jumped 433.18 points, or 0.92 per cent, to an all-time high of 47,406.72 during the session, and the broader NSE Nifty 50 benchmark gained 136.05 points, or 0.99 per cent, to an all-time high of 13,885.30 during the session. Gains across most sectors — led by banking, financial services, automobile and metal shares — backed the upmove in the markets. The Sensex ended 380.21 points, or 0.81 per cent, higher at 47,353.75 while the Nifty settled at 13,873.20, up 123.95 points, or 0.90 per cent, from its previous close — both record closing highs.  Forty one stocks in the Nifty basket of 50 shares finished higher for the day. JSW Steel, Tata Motors, State Bank of India (SBI), Titan and HDFC Life, ending between 3.20 per cen

Shares in biscuit maker Mrs Bectors Food Specialities Ltd more than doubled in their market debut on Thursday, in a latest sign of strong investor appetite for the country’s food sector amid the COVID-19 pandemic. The initial public offering (IPO), which was nearly 200 times oversubscribed, comes days after Burger King India – a company to which Mrs Bectors sells buns – also enjoyed a strong stock market debut. Mrs Bectors raised about ₹ 540 crore in the IPO. The company makes cookies, creams and crackers under its flagship “Cremica” brand, besides bakery products such as breads, buns and cakes branded “English Oven”. Shares of the company opened at ₹ 500 per share on the National Stock Exchange, well above the initial public offering price of ₹ 288. At its session high, the company had a market value of ₹ 3,525 crore.

Individuals are often confronted with the dilemma of choosing the right investment option for their portfolio to invest their money. Two of the most prevalent types of investment options are stocks and mutual funds. This article is aimed at serving as a mutual fund investment guide for investors and solve their dilemma. If you are sceptical about investing a lumpsum amount, you might consider resorting to other options such as a systematic investment plan, commonly known as SIP . SIP investments help to stagger your investments over time. As an investor you can either put money in stock SIP or directly invest in mutual funds through SIP. Let’s understand what works best for your investment profile. What is stocks SIP? Stocks SIP work on a similar concept like mutual funds SIP. Under this, an investor can buy a predetermined or fixed quantity of shares at regular or specific intervals. For instance, you might consider purchasing 10 shares of an XYZ company at the beginning of the each

Digital Campaign promotes early planning of investments in ELSS before March 2021 December, 2020, Mumbai: L&T Mutual Fund, one of India’s top asset managers with total AUM of Rs 70,191 crore (as on Nov 30, 2020), has launched an integrated digital campaign called ‘Late Lateef 2021’ to reiterate the importance of investing early in Equity Linked saving Scheme (ELSS) for tax saving. The essential theme of the campaign is to educate masses on avoiding procrastination in everyday life and the snowball effects of delaying important tasks. Through the ‘Late Lateef 2021’ digital campaign, the fund house plans to reach out to a larger pool of users, including millennials, who are interested in ELSS as an instrument to save taxes and also create awareness about the tax-saving tool. Millennials, who formed about 47% of new mutual fund investors in FY19 as per the latest data provided by Computer Age Management Services Limited (‘CAMS’) could use ELSS as an investment vehicle to kick-start t

A day after settling flat, the rupee rose marginally higher by three paise against the US dollar on Friday, December 18, to close at 73.56 (provisional) amid positive domestic equities and sustained foreign fund inflows. At the interbank foreign exchange market, the domestic unit opened at 73.55 against the greenback and registered an intra-day high of 73.49. It witnessed a low of 73.57. In early trade, the local unit opened five paise higher at 73.54 against the dollar. It finally settled at 73.56 against the American currency, recording a surge of three paise over its previous close. On Thursday, December 17, the domestic unit settled flat at 73.59 against the dollar. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading up 0.20 per cent at 90.00. According to traders, the weakness in the American currency in the overseas market supported the domestic unit. According to exchange data, the foreign institutional investors wer

The government succeeded in divesting 20 per cent stake in the railway ticketing firm, Indian Railway Catering and Tourism Corporation (IRCTC) in the recently concluded offer for sale (OFS). The retail investors lapped up all the shares up for sale and the institutional investor portion was subscribed 1.34 times. Following the share sale, the government’s stake in IRCTC will reduce to 67.4 per cent. The Centre had set floor price for the OFS, which was held on Thursday and Friday, at ₹ 1,367. But most bids came around ₹ 1,378, as per data provided by the stock exchanges. Prior to the offer for sale, the government held 87.4 per cent stake in the ₹ 2,275-crore public sector railway undertaking. IRCTC provides catering services, online railway tickets and packaged drinking water at railway stations and trains across India. IRCTC was listed on the stock exchanges in October 2019. The company had raised ₹ 645 crore through an initial public offering (IPO). Three other railway companies, i.

The rupee ended flat at 73.64 against the US dollar on Friday, December 11, while trading in a narrow range and tracking recovery in domestic equities towards the end of the session. At the interbank foreign exchange market, the local unit opened at 73.65 against the dollar and registered an intra-day high of 73.56. It witnessed a low of 73.71. The rupee finally closed at 73.64 against the greenback, registering a marginal rise of two paise over its previous close. In an early trade session today, the rupee opened on a flat note, up by one paisa at 73.65 against the dollar.  On Thursday, December 10, the domestic unit snapped its two-day winning streak to close nine paise lower at 73.66 against the dollar. During the week, the rupee witnessed a highly volatile trade session, recording marginal gains against the dollar, before logging its first loss on Thursday. It witnessed a surge of 30 paise against the dollar on Tuesday, December 8, amid market gains. The local unit then edged margi

Domestic stock markets registered mild losses on Thursday, halting a rally that pushed the benchmark S&P BSE Sensex index above the 46,000 mark for the first time ever. The Sensex index fell 392.63 points, or 0.85 per cent, to 45,710.87 at the weakest level recorded in morning deals. The broader NSE Nifty 50 benchmark slid to as low as 13,399.30, down 129.8 points, or 0.96 per cent, from its previous close. Losses in banking, financial services and IT shares weighed on the markets. The Sensex closed 143.62 points, or 0.31 per cent, lower at 45,959.88, following five consecutive days of gain, and the Nifty settled at 13,478.30, down 50.80 points, or 0.38 per cent, from its previous close. UPL, Tata Motors, Indian Oil, UltraTech Cement and Tata Steel, trading between 2.31 per cent and 13.86 per cent lower, were the worst hit among 43 laggards in the Nifty basket of 50 shares. On the other hand, Nestle, Maruti Suzuki and Titan, up 0.69-1.51 per cent each, were the top gainers in the i

The rupee strengthened by three paise against the US dollar on Wednesday, December 9, and settled at 73.57 (provisional), supported by heavy buying in domestic equities and foreign fund inflows. At the interbank foreign exchange market, the local unit opened at 73.58 against the dollar and registered an intra-day high of 73.49. It witnessed a low of 73.61. In an early trade session, the local unit surged by 11 paise to 73.49 against the dollar. Closing at 73.57 against the American currency, the rupee recorded a rise of three paise over its previous close. On Tuesday, December 8, the domestic unit surged by 30 paise and closed at a one-and-a-half month high of 73.60 against the greenback. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 0.24 per cent down at 90.74. According to traders, the weakening of the American currency in the overseas market also supported the local unit. “Globally, market sentiments are improvi

India’s economy, severely affected by the coronavirus pandemic, is gradually recovering, the International Monetary Fund (IMF) said on Thursday. The country’s economy recovered faster than expected in the September quarter, as a pickup in manufacturing helped GDP clock a lower contraction of 7.5 per cent and held out hopes for further improvement on better consumer demand. “India has indeed been severely affected by the pandemic but is gradually recovering,” IMF chief spokesperson Gerry Rice told reporters. Fiscal, monetary, and financial sector measures announced to date provided much-needed support to the economy, including businesses, agriculture, and vulnerable households, Mr Rice said in response to a question on the IMF’s assessment of the country’s economy during the coronavirus pandemic.

Ending its two-day losing streak, the rupee soared 13 paise higher against the US dollar on Friday, December 4, and settled at 73.80 (provisional) as the Reserve Bank of India (RBI) kept the interest rates unchanged for the third time in a row. At the interbank foreign exchange market, the local unit opened at 73.81 and registered an intra-day high of 73.70. It witnessed a low of 73.81. in early trade, the rupee surged 15 paise higher to 73.38 against the dollar. Closed at 73.80 per dollar, it recorded a rise of 13 paise. On Thursday, December 3, the domestic unit had settled at 73.93 against the American currency. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down by 0.16 per cent to 90.56. According to traders, sustained foreign fund inflows, positive opening in domestic equities, and weakness of the American currency in the overseas market also supported the domestic unit.

The rupee edged lower by 12 paise against the US dollar on Thursday, December 3, settling at 73.93 (provisional) as investors remained cautious ahead of the Reserve Bank of India’s (RBI) policy meet outcome. At the interbank foreign exchange market, the local unit registered a highly volatile trading session. The rupee opened at 73.81 and witnessed an intra-day high of 73.68. It registered a low of 73.95. In an early trade session, the rupee slipped by eight paise to 73.89 against the American currency. It settled at 73.93 a dollar, for the day, with a decline of 12 paise. On Wednesday, the local unit slumped by 13 paise against the dollar and closed at 73.81. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell by 0.12 per cent to 91.00. According to analysts, the investor focus is on the Reserve Bank of India’s Monetary Policy Committee’s three-day interest rate-setting meeting that started on Wednesday, December 2, with the deci

India’s top retail trade body said on Sunday that sales during the country’s Diwali festive period rose by more than 10 per cent year-on-year, indicating “good business prospects” for small businesses. The Confederation of All India Traders (CAIT), which claims to represent tens of millions of firms across the country, said that sales of its members during the one-month festive season that ended on Saturday increased to more than ₹ 72,000 crore ($9.7 billion). “People didn’t purchase anything in the last eight months except essentials. Hence people had enough surplus money, and a portion was spent on Diwali festivities,” Praveen Khandelwal, CAIT’s secretary general, told news agency Reuters. CAIT members include retailers who sell everything from electrical items to furniture and footwear. The trade body said it gathered sales data from 20 cities. Despite the upbeat report, India’s economy, which grew at the slowest pace in over a decade during the year to the end of March, is likely t

Paytm on Tuesday launched ‘Payout Links’ for businesses, enabling them to instantly process payouts to customers, employees, as well as vendors without collecting their bank details. According to a statement by Paytm, “the Payout Links offer seamless payment integration for businesses to send quick incentives and refunds to customers through an easy payout link. This will remove the need to store bank details and will benefit partnered SMEs in diverse sectors such as gaming, e-commerce, retail, export and manufacturing. It will allow easy transfer of salaries and making vendor payments, commissions. The Payout Link can be created and shared with employees, vendors, and customers in one go. The sender can create Paytm Payout Links and share it with the receiver. The receiver needs to open the link. A list of saved accounts is provided such as Paytm Wallet, Paytm UPI and connected bank accounts that can be chosen to receive money instantly.      Paytm Payout Links is a new initiative und

Four years after demonetisation, cash is majorly still used for low-value transactions such as buying groceries and making payments to domestic staff. According to a latest survey conducted by community social network LocalCircles, the top categories of purchases for which citizens paid the most amount in cash without a receipt were grocery (for 39 per cent respondents), and salaries for domestic staff (for 31 per cent out of the 15,376 respondents) in the last 12 months. Even though these categories of payments are considered to be of low-value, Income Tax laws in India have prescribed that payments in cash cannot be made to an individual beyond a daily limit of ₹ 10,000. Similarly, laws have prescribed different restrictions on payments in cash without receipt which applies to businesses as well as individuals. Four years ago, on this day (November 8, 2016), Prime Minister Narendra Modi had demonetised ₹ 500 and ₹ 1000 notes, to curb the black money problem that has been among the pr

The rupee depreciated 30 paise to 74.40 against the US dollar in opening trade on Monday tracking muted domestic equities and strong American currency amid global risk aversion. The local unit opened at 74.40 at the interbank forex market, down 30 paise over its last close. On Thursday, the rupee had declined further by 23 paise to close at a two-month low of 74.10 against the US currency. Forex market was closed on Friday on account of Id-E-Milad. Losses in domestic stock markets and uncertainty ahead of US presidential election weighed on the investor sentiment, traders said. “We may continue to see bids in USD/INR on account of overall global risk aversion. 74.95 is an extremely crucial resistance. 73.65 is now likely to act as a support. We expect an intraday range of 74.25-74.65,” said Abhishek Goenka, Founder and CEO, IFA Global. Goenka further added that “we have the US presidential election on November 3rd (Tuesday), Reserve Bank of Australia rate decision on Tuesday, Bank of E

The S&P BSE Sensex and NSE Nifty 50 indexes snapped their three-day losing streak, led by buying interest in banking shares after ICICI Bank and IndusInd Bank reported strong September quarter earnings. However, the upside for benchmarks was capped as the country’s most valued company – Reliance Industries shares – dropped as much as 9.46 per cent, the most since March 9, after its net profit declined 15 per cent in September quarter on Friday. The Sensex ended 144 points or 0.36 per cent higher at 39,758 and Nifty 50 index advanced 27 points or 0.23 per cent to close at 11,669. Six of 11 sector gauges compiled by the National Stock Exchange ended higher, led by the Nifty Bank index’s over 4 per cent gain. Nifty Private Bank, PSU Bank and Financial Services indexes also surged between 3.4 per cent and 4.2 per cent each. On the other hand, Nifty Energy index was dropped 2.5 per cent. Pharma, metal and auto shares also witnessed selling pressure. Mid- and small-cap shares ended on a