businessfortnight

The power ministry proposes letting coal-fired power plants keep selling power after completing their agreements with buyers, a letter seen by news agency Reuters shows, despite national promises to close old plants to curb pollution. The proposal, if approved, would help old coal plants earn additional revenue, increase liquidity in short-term power markets and help distribution companies in states facing a power deficit access cheaper power, the ministry said in the draft proposal dated Friday. “It is in the consumer interest to keep the tariff of electricity as low as possible,” says the letter sent to power departments of the country’s states and the heads of central government-run utilities such as NTPC Ltd. Such a move would enable government-run electricity generators such as NTPC “to sell power in any mode” after distribution companies exit an agreement upon the completion of the tenure, the ministry said. Power Minister RK Singh and Finance Minister Nirmala Sitharaman have pre

Domestic stock markets surged to record highs on Friday, after the Reserve Bank of India left key lending rates unchanged as expected but raised its forecast for the country’s GDP. The S&P BSE Sensex index jumped 515.63 points, or 1.16 per cent, to touch an all-time high of 45,148.28, and the broader NSE Nifty 50 benchmark surged to a record 13,280.05, gaining 146.15 points, or 1.11 per cent, from its previous close. A surge in global shares on optimism around the development of COVID-19 vaccines and world economic recovery also boosted investor sentiment. The Sensex ended 446.90 points or 1.00 per cent higher at 45,079.55 and the Nifty rose 124.65 points or 0.95 per cent to settle at 13,258.55 — both record closing highs.  Adani Ports, ICICI Bank, Hindalco, UltraTech Cement, Sun Pharma, closing between 4.01 per cent and 4.86 per cent higher, were the top gainers in the Nifty basket of 50 shares.  On the other hand, Reliance Industries, HDFC Life, Bajaj Finserv, Bharat Petroleum an

Domestic stock markets surged to record highs on Friday, after the Reserve Bank of India left key lending rates unchanged as expected but raised its forecast for the country’s GDP. The S&P BSE Sensex index jumped 515.63 points, or 1.16 per cent, to touch an all-time high of 45,148.28, and the broader NSE Nifty 50 benchmark surged to a record 13,280.05, gaining 146.15 points, or 1.11 per cent, from its previous close. A surge in global shares on optimism around the development of COVID-19 vaccines and world economic recovery also boosted investor sentiment. The Sensex ended 446.90 points or 1.00 per cent higher at 45,079.55 and the Nifty rose 124.65 points or 0.95 per cent to settle at 13,258.55 — both record closing highs.  Adani Ports, ICICI Bank, Hindalco, UltraTech Cement, Sun Pharma, closing between 4.01 per cent and 4.86 per cent higher, were the top gainers in the Nifty basket of 50 shares.  On the other hand, Reliance Industries, HDFC Life, Bajaj Finserv, Bharat Petroleum an

Domestic equity benchmarks ended marginally higher on Thursday, with the Nifty settling at a fresh record, amid mixed cues from global markets. After scaling an all-time intra-day peak of 44,953.01, the 30-share BSE Sensex pared some gains to end 14.61 points or 0.03 per cent higher at 44,632.65. Similarly, the broader NSE Nifty touched a fresh intra-day high of 13,216.60, before settling 20.15 points or 0.15 per cent up at 13,133.90 — its lifetime closing high. Maruti was the top gainer in the Sensex pack, rallying around 7 per cent, followed by ONGC, Asian Paints, NTPC, SBI, Bajaj Finserv and Tata Steel. On the other hand, HDFC Bank, TCS, Bajaj Auto, Infosys and M&M were among the laggards. “Indian market opened mixed following mixed global market cues in Asian markets. Trades in the global markets also remained lacklustre…,” said Narendra Solanki, head, equity research (fundamental), Anand Rathi. During the afternoon session, markets briefly traded in the negative territory but

Domestic stock markets pulled back on Wednesday from record closing highs hit in the previous session, with banking stocks slipping ahead of a top court hearing on loans under moratorium. The S&P BSE Sensex index dropped 94.93 points – or 0.21 per cent – to 44,560.51 at the weakest level recorded in early deals, and the broader NSE Nifty 50 benchmark slid to as low as 13,087.80, down 21.25 points – or 0.16 per cent – from its previous close. Selling pressure in financial and IT stocks pulled the markets lower, however gains in automobile and metal shares limited the downside. Analysts awaited the RBI Governor-led Monetary Policy Committee’s review statement due later this week for near-term cues.

Domestic stock markets rose nearly 1 per cent on Tuesday, resuming trade after a day’s holiday, after official macroeconomic data showed the country’s GDP contracted a better-than-expected 7.5 per cent in the July-September period. The S&P BSE Sensex index rose 416.22 points – or 0.94 per cent – to touch 44,565.94 at the strongest level recorded during the session, and the broader NSE Nifty 50 benchmark climbed to as high as 13,081.10, up 112.15 points – or 0.86 per cent – from its previous close. Gains across sectors – led by IT, pharmaceutical and metal shares – supported the markets. MSCI’s broadest index of Asia-Pacific shares outside Japan added 1.08 per cent, having closed November with a gain of 9 per cent. That marked the best November since 2001. China’s blue-chip CSI300 index jumped to be 1.56 per cent higher on Tuesday, after a business survey showed on Tuesday activity in China’s factory sector accelerated at the fastest pace in a decade in November. Japan’s Nikkei was

Cryptocurrency Bitcoin jumped by more than $850 – or 5 per cent – to touch the $18,238.20 mark on Sunday, inching towards an all-time high of $19,666 registered this week. Recent gains in the virtual currency are part of a broader bull run that began last month after US-based online payments company PayPal allowed its customers to use Bitcoin on its network. It was last seen trading higher by over $800 to $18,173.70 on November 29, 2020.  Most other cryptocurrencies followed suit. Among major peers, Ethereum (ETH) traded 5.11 per cent higher at $556.16, XRP was up 6.83 per cent at $0.62688 and Cardano (ADA) up 0.24 per cent at $0.169106. Bitcoin has surged exponentially since entering a four-digit value for the first time in 2013. It has rallied more than 130 so far this year, fueled by demand for riskier assets. The cryptocurrency’s perceived quality as a hedge against inflation and expectations of mainstream acceptance lured institutional and retail demand.

Manish Mehra, owner of Washex Hospitality, an industrial laundry service, recently flew from Delhi to Jodhpur to win a contract to service a large, government-run hospital – a move essential to kickstarting his business. “For a new relationship, it is essential to know each other before you can establish the trust and confidence to work online and that need is higher in case of government departments,” said Mr Mehra, who had to stay for a week in a Jodhpur hotel. Increased demand for air travel and hotel stays by small business owners like Mr Mehra, accompanied by a rise in rural incomes and spending after two good monsoons, is helping the pandemic-hit Indian economy slowly recover. Government data released on Friday showed the economy shrank 7.5 per cent in the July-September quarter, performing better than analysts’ expectation of an 8.8 per cent contraction as lockdowns were eased and some pent-up demand was met. In the April-June period, the economy shrank 23.9 per cent. Annual gro

India’s gross domestic product (GDP) contracted 7.5 per cent in the July-September period, as the economy rebounded from a record slump of 23.9 per cent in the previous quarter due to slowdown caused by the coronavirus pandemic. Friday’s data confirms the economy’s first technical recession – which is two consecutive quarters of GDP contraction – since 1996, when the country began quarterly records. The GDP reading for the second quarter of current financial year is much better than economists’ forecasts of 8.8 per cent in a poll by news agency Reuters. Yet, the economy is on track to register an overall contraction of 8.7 per cent over the full year, which, if that were to happen, would be its worst performance in more than four decades. However, annual growth of 3.4 per cent in the farm sector and 0.6 per cent in manufacturing raised hopes of an early recovery as the government gears up to distribute coronavirus vaccines to a country with about 140 crore people. The latest data bring

The S&P BSE Sensex and NSE Nifty 50 indexes ended on a flat note in trade on Friday as investors awaited official release of Gross Domestic Product (GDP) data for second quarter of the current financial year due later today. The benchmarks for most part of the day traded in a range bound manner. The Sensex moved in a range of 412 points and Nifty touched an intraday high of 13,035.30 and low of 12,914.30. Gains in HDFC, HDFC Bank, Asian Paints and Bajaj Finance were offset with losses in Reliance Industries, Infosys, TCS, Axis Bank and HCL Technologies. The Sensex ended 110 points or 0.25 per cent lower at 44,150 and Nifty 50 index declined 18 points or 0.14 per cent to settle at 12,969. The country’s economic activity likely picked up in July-September after a record 23.9 per cent contraction the previous quarter. Economists in a Reuters poll forecast gross domestic product (GDP) to shrink 8.8 per cent, a contraction that would still amount to a technical recession. Fourteen of 19

The S&P BSE Sensex and NSE Nifty 50 indexes resumed their upmove after a day’s pause in the previous session, led by gains in metal, banking and financial services shares. The benchmarks staged a gap-up opening, but turned volatile in late-morning deals owing to expiry of November future and option contracts. However, late buying in banking shares lifted the benchmarks to intraday highs towards the close of the session. HDFC Bank, HDFC, Bajaj Finance, Axis Bank and Kotak Mahindra Bank were among the top movers in the Sensex. The Sensex rose 432 points or 0.98 per cent to close at 44,260 and Nifty 50 index surged 129 points or 1 per cent to settle at 12,987. In the November series, Sensex rose 11 per cent, Nifty climbed 10.71 per cent and Bank Nifty index surged 22 per cent. Rahul Sharma, Market Strategist & Research Head, Equity99 Advisors said, “In an extremely volatile trading session, the benchmark indices settled higher with more than 60-65 per cent roll-over of open positi

The S&P BSE Sensex and Nifty 50 indexes fell sharply in trade on Wednesday as investors booked profits at record highs a day ahead of the monthly expiry of future and option contracts, analysts said. The Sensex crashed as much as 1,067 points from record high of 44,825.37 and Nifty 50 index touched an intraday low of 12,834 after hitting a record high of 13,145.85 during the session. HDFC Bank, Infosys, Kotak Mahindra Bank, HDFC, Reliance Industries, Axis Bank and Bharti Airtel were among the top drags in the Sensex. The Sensex slumped 695 points or 1.56 per cent to close at 43,828 and Nifty 50 index dropped 197 points or 1.51 per cent to settle at 12,858. Selling pressure was visible across sectors as all the 11 sector gauges, barring the index of PSU banks, ended lower led by the Nifty Realty index’s 2.5 per cent decline. Private bank, pharma, bank, financial services and auto indexes also fell around 2 per cent.

The domestic stock markets are likely to open flat, after two succesive days of gains, going by indications from SGX Nifty futures. Trends on SGX Nifty indicate a flat opening for the index in India. At 7:30 am, the Nifty futures were trading virtually unchanged at 12,953 on the Singapore Stock Exchange. Asian stocks opened higher on Tuesday as COVID-19 vaccine progress shored up global sentiment and U.S. President-elect Joe Biden was given the go-ahead to begin his White House transition. S&P 500 was up 0.52 per cent in early Asian trade, while Japan’s Nikkei was 1.8 per cent higher and Australia’s S&P/ASX 200 1.11 per cent stronger. U.S. stocks closed higher in a choppy session on Monday as hopes for a COVID-19 vaccine lifted economically sensitive sectors such as energy and industrials, but a pullback in megacap shares curbed gains on the S&P 500 and Nasdaq. The Dow Jones Industrial Average rose 1.12 per cent and the S&P 500 gained 0.56 per cent, while the Nasdaq Com

The S&P BSE Sensex and NSE Nifty 50 indexes rose for second straight session on Monday led by gains in information technology, pharma and metal stocks. The benchmarks staged a gap up opening wherein the Sensex rose as much as 389 points and Nifty 50 index touched an intraday high of 12,969. However, due to weakness in banking stocks the benchmarks erased intraday gains briefly. However, buying in index heavyweights like Reliance Industries, Tata Consultancy Services and Infosys helped benchmarks recover and close higher. The Sensex advanced 195 points to close at 44,077 and Nifty 50 index rose 67 points to settle at 12,926. The session was marked with high volatility as the India VIX, the gauge of expected volatility spiked 6.2 per cent as investors’ feared about government imposing lockdowns again to curb the spread of Covid-19 which has been spreading at a faster pace in cities like Delhi, analysts said. Seven of 11 sector gauges compiled by the National Stock Exchange ended high

The Delhi High Court Friday reserved order on an application by Kishore Biyani led Future Retail Ltd (FRL) seeking to injunct Amazon from interfering in the ₹ 24,713 crore Reliance-Future deal on the basis of an interim order passed by the Singapore International Arbitration Centre (SIAC). Justice Mukta Gupta heard arguments for five days and asked the parties to give written submissions, if any, by November 23. The Future Group and Amazon have been locked in a battle after the US-based company took FRL into an emergency arbitration over an alleged breach of contract. The SIAC on October 25 had passed an interim order in favour of Amazon barring FRL from taking any step to dispose of or encumber its assets or issuing any securities to secure any funding from a restricted party. Subsequently, Amazon wrote to market regulator SEBI, stock exchanges, and Competition Commission of India (CCI), urging them to take into consideration the Singapore arbitrator”s interim decision as it is a bind

The S&P BSE Sensex and NSE Nifty 50 indexes resumed their up move after a day’s pause in the previous session led by gains in information technology, banking and telecom shares. The benchmarks opened higher but turned negative as banking shares witnessed selling pressure. However, late buying in banking and financial services shares led to recovery in the last hour of trading. The Sensex rose over 400 points at the day’s highest level and Nifty 50 index touched an intraday high of 12,892.45 before hitting an intraday low of 12,730.25. The Sensex ended 282 points higher at 43,882 and Nifty 50 index rose 87 points to close at 12,859. All the 19 sector gauges, barring the index of energy shares, ended higher led by the S&P BSE Telecom index’s nearly 5 per cent gain. FMCG, consumer durables, power, banking, auto and IT indexes also rose between 1-2.8 per cent each. Mid- and small-cap shares also witnessed buying interest as the S&P BSE MidCap index climbed 1.22 per cent and S&a

The country’s antitrust body on Friday cleared conglomerate Reliance Industries’ $3.4 billion deal to buy Future Group’s retail assets, thwarting Amazon.com’s efforts to block the deal. The Competition Commission of India (CCI) announced its decision in a tweet on Friday, with details likely to be made public later. Amazon had approached the CCI and the country’s market regulator SEBI alleging the deal would violate some pre-existing agreements it had with Future Group. Last month Amazon won an injunction from a Singapore arbitrator to halt the deal pending arbitration. Amazon, Future and Reliance did not immediately respond to a request for comment. While the deal is yet to receive approval of stock exchanges and market regulator SEBI, the three companies are now embroiled in a legal battle at the Delhi High Court over the transaction.

Domestic stock markets are likely to start Friday’s session on a positive note, a day after benchmark indices halted a winning streak that lasted four days in a row. The Singapore Exchange Nifty futures – an early indicator of the National Stock Exchange’s Nifty 50 benchmark index added 54.45 points to touch 12,831.80 at the strongest level recorded ahead of the opening of Indian markets. At 8:44 am, the SGX Nifty futures traded up 49.85 points – or 0.39 per cent – at 12,827.20. Globally, equity markets were struck by a wave of uncertainty on Friday after US Treasury Secretary Steven Mnuchin called for an end to coronavirus pandemic relief for struggling businesses, sparking a rare clash between the central bank and Treasury. In Asia, MSCI’s broadest index of Asia-Pacific shares excluding Japan eked out a 0.20 per cent gain. Japan’s Nikkei 225 benchmark dropped 0.50 per cent. South Korea’s KOSPI index was flat, Australian shares were mildly positive, and Chinese shares little changed.

Domestic stock markets rose to record highs for a second straight session on Tuesday, led by gains in banking and financial services shares. The Sensex rose as much as 523 points to trade above the 44,000 mark for the first time ever, and the Nifty 50 touched an all-time high of 12,934.05. Investor sentiment was bolstered by news that US drug maker Moderna’s coronavirus vaccine was 94.5 per cent effective in preventing COVID-19 infection. The Sensex rose 315 points or 0.72 per cent to close at 43,953 and the Nifty 50 index went up 94 points or 0.74 per cent to close at 12,874 – both record closing highs. The markets had clocked modest gains in a special one-hour “muhurat” trading session for Diwali on Saturday, and were closed on Monday. Moderna Inc became the second drug maker after Pfizer Inc to announce promising trial data in the development of a COVID-19 vaccine, pushing global markets higher. “There is comfort in the fact that the temperature requirements for (Moderna’s) vaccine

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