Indian markets are likely to open higher on Friday as Asian equities edged up in the early morning trade following the Wall Street’s gains overnight. The early indicator of NSE Nifty 50, SGX Nifty Futures was trading little changed, up 0.05% at 9,943 points on the Singapore Stock Exchange. However, Indian equities will also react to the GDP growth rate today as for the first quarter it fell to a 3-year low at 5.7%.
These stocks will be in focus today:
Regulator Sebi has imposed a fine of Rs 2.5 lakh on JSW Steel for failing to redress an investor complaint within the prescribed time limit. “The noticee (JSW Steel), being a listed company failed to redress the complaint satisfactorily even after repeated complaints by the complainant for the same complaint,” the Securities and Exchange Board of India (Sebi) said in an order.
India’s largest telecom operator Bharti Airtel yesterday informed the Telecom Department that it has initiated the process of merging Tikona Digital Networks with itself. In a letter to the Department of Telecom, the company said that it has recently acquired 100 per cent share capital of Tikona Digital. “Subsequently, Tikona Digital Networks has become a wholly owned subsidiary company of Bharti Airtel,” the company said.
Metal and mining major Vedanta Ltd yesterday said Kuldip Kaura will be its interim CEO from tomorrow. Kaura succeeds Tom Albanese, who steps down as CEO and from the board today, while the hunt for a full-time CEO is on. “The board of Vedanta Limited (Vedanta) today announced the appointment of Kuldip Kaura as interim Chief Executive Officer (CEO), effective September 1, 2017,” the company said in a statement. The process to identify Vedanta’s new CEO is ongoing,
the company added.
Shares of Wipro yesterday rose by nearly 3 per cent after the company said its shareholders have approved its Rs 11,000-crore buyback proposal. The stock ended 2.54 per cent higher at Rs 299.05 on BSE. During the day, it went up by 2.86 per cent to Rs 300 — its 52-week high.
Power Finance Corporation yesterday said it will seek shareholders’ nod to raise up to Rs 65,000 crore through issuance of securities on private placement basis. State-owned Power Finance Corp (PFC), which is a one of the leading lenders to the power sector, has sought shareholders’ nod at the 31st annual general meeting to be held on September 20.
Debt-ridden Jaiprakash Associates yesterday said its proposed sale of entire 74 per cent stake in Bhilai Jaypee Cement Ltd for an enterprise value of Rs 1,450 crore is expected to be concluded by year-end and plans to raise up to Rs 2,000 crore through sale of securities. In a notice to shareholders for AGM to be held on September 23, Jaypee Group’s flagship company Jaiprakash Associates said it has taken various steps to reduce its debt, including sale of cement plants. To revive its business operations and repay debt, the company has divested a substantial portion of its cement business with a capacity of 17.2 MTPA to Aditya Birla Group firm UltraTech Cement at an enterprise value of Rs 16,189 crore.
To cater to the steel industry’s growing appetite for iron ore, state-owned miner NMDC has decided to raise production capacity to 67 million tonnes per annum by 2021-22. The company is producing nearly 30 mt of iron ore from three fully mechanised mines — two in Chhattisgarh and one in Karnataka — its homepage showed. “NMDC has made a comprehensive plan to enhance iron ore production capacity to 67 million tonnes per annum (mtpa) by 2021-22 to meet growing requirements of iron ore of the Indian steel sector,” the PSU said this its annual report for 2016-17.
Tata group hospitality arm Indian Hotels Company Ltd plans to open seven hotels in the next two years as part of its expansion plans going forward. Altogether, the new properties to be opened by the company will add 581 rooms to its inventory, IHCL said in an investor presentation. As on March 31, 2017 Taj Group had 134 hotels with 16,675 rooms.
Out of the seven new properties, hotels at Rishikesh, Shimla and Tirupati will be under the Taj Hotels Palaces Resorts and Safaris brand and will follow management contract model, it said.
IHCL said it will also open a property under the brand at Andamans which will be owned by the company. Aurangabad and Lucknow are among other locations, where the company plans to open properties under the Ginger brand through its arm Roots Corporation. In Surat, the company also plans to open a new Ginger property through management contract. In 2017, the company has opened four Ginger hotels with two at Ahmedabad and one each at Mumbai and Gurgaon adding 299 rooms.
FMCG major Nestle India expects its “registered sales” growth to be impacted till June next year on account of GST.
However, sales volume will not be impacted as much, the company said in a investors presentation. “The expected registered sales would be lower. That is because the excise duty has been now subsumed in the GST so the sales line will take a number hit,” said Nestle India CMD Suresh Narayanan. The company said the excise duty has got subsumed in the GST rate post July 1 and will be netted from the sales, which will be higher than the pre-GST regime.
Bankruptcy-NCLT: The NCLT has so far decided more than 655 cases under the Insolvency and Bankruptcy Code while all efforts are made to stick to the timelines, the tribunal’s President Justice M M Kumar said yesterday. The Code, which provides for a market-determined and time-bound resolution of insolvency proceedings, became operational in December 2016. A case is taken up for resolution under the Code only after getting clearance from the National Company Law Tribunal (NCLT) and subsequently, an insolvency professional is appointed.
Macroeconomic data released on Thursday:
India’s GDP grew slower at 5.7 per cent during April-June — the lowest in three years of the Modi government while lagging China for the second straight quarter — as manufacturing slowed ahead of the GST launch and note ban impact lingered.
As businesses destocked inventories ahead of the GST kick-off from July 1, gross value added (GVA) in manufacturing declined to a low of 1.2 per cent, from 10.7 per cent, year on year. Gross domestic product (GDP) growth in the first quarter
of 2017-18 was lower than 6.1 per cent of the preceding one and 7.9 per cent in the same period last fiscal. China recorded 6.9 per cent growth in January-March as well as April-June quarters.
India’s fiscal deficit at July-end touched 92.4 per cent of the budget mainly because of front loading of expenditure by various government departments. In absolute terms, the fiscal defict – difference between expenditure and revenue – was Rs 5.04 lakh crore during April-July, 2017-18, according to the data of Controller General of Accounts (CGA). During the same period of last financial year, 2016-17, it was 73.7 per cent of the target.
Exchange Timings: Leading bourses have proposed to extend the timing of stock trading up to 7.30 pm to better align Indian markets with global trends and boost business, but several brokers are opposing the move citing logistics and employee-related issues, market sources say. Currently, trading commences on the bourses at 9 am and closes at 3.30 pm, with 15 minutes each of pre-open and post-closing sessions. There is also a proposal to align equity market timings with that of commodity derivatives which are traded till late evening hours though exact trade hours are different for different commodities. Various proposals on the table include extending trade hours till 5 pm, 5.30 pm and 7.30 pm.
Indian markets on Thursday:
Indian stock markets which opened almost flat and traded weak through the day managed to close higher on Thursday. Yesterday the market participants keenly awaited the GDP numbers for the first quarter of FY 2018, which slowed the trading activity. The value buying in the shares of heavyweight companies such as Reliance Industries, HDFC, and Maruti Suzuki pushed the benchmark indices to close higher. BSE Sensex advanced over 100 points in the last 30 minutes of trade closed 84 points higher at 31,730.49 points while NSE Nifty inched up 33 points to close at 9,917.9 points.
Indian Rupee on Thursday:
The rupee today staged a recovery to end at a fresh three-week high of 63.90 against the American currency by gaining a good 11 paise on bouts of dollar unwinding from exporters and corporates. This is the best closing for the Indian currency since August 9, when it had closed at 63.84. Heavy selling in the greenback by exporters and banks amid its weakness against other currencies overseas and a smart rally in local equities largely supported the rupee trade.
US markets on Thursday:
U.S. stocks closed higher on Thursday as investors reacted to economic data and took cautious hope from Washington’s latest promises for long-awaited details of a tax reform plan. The Dow Jones Industrial Average rose 59.92 points, or 0.27 percent, to 21,952.35, the S&P 500 gained 13.94 points, or 0.57 percent, to 2,471.53 and the Nasdaq Composite added 60.35 points, or 0.95 percent, to 6,428.66.