Mumbai: Stock markets on Monday surged 0.78 per cent to close at a more than five-month high of 35,934.72 following strong global cues and investors set aside concern about escalating trade tensions to focus instead on the upcoming earnings season.
The 30-share BSE Sensex rallied for the second day by rising 276.86 points or 0.78 per cent to settle at 35,934.72, the highest closing level since January 31, when it had closed at 35,965.02. The broader NSE Nifty closed above the 10,800 level by gaining 80.25 points or 0.74 per cent to 10,852.90, the highest closing since June 13, 2018, when it ended at 10,856.70. Index heavyweight Reliance Industries rose by 1.96 per cent to Rs 995.65 while IT major Infosys gained 1.14 per cent at Rs 1,299.15, helping the Sensex to post gains for the second day.
The rupee also remained strong. It opened higher by 29 paise at 68.58 and hovered in a range of 68.78 and 68.57 before ending at 68.70, up 17 paise.
Vinod Nair, head of research, Geojit Financial Services said: “Change in focus to upcoming quarter earnings and appreciation in rupee led the market to rally with mid and small cap outperformance. Q1 FY19 result season will kick start from Tuesday with IT heavyweight and investors are keen on upcoming data of CPI inflation and IIP this week to get more cues on market direction. Additionally, global cues were positive due to better US job data.”
Asian markets mostly closed higher and European stock markets advanced in opening trade, tracking gains on Wall Street on Friday after a strong jobs data for June allayed fears of impact of the US-China trade dispute. In the Asian region, Hong Kong’s Hang Seng rose 1.32 per cent, Shanghai Composite Index climbed 2.47 per cent and Japan’s Nikkei ended 1.21 per cent higher. In Europe, Paris CAC edged higher 0.19 per cent, while Frankfurt’s DAX rose 0.18 per cent. London’s FTSE too up 0.31 per cent.
Investors were looking forward to the quarterly results of IT majors TCS and Infosys that will kick-start the earnings season this week, brokers said. TCS, however, fell by 1.34 per cent at Rs 1,887.65 on profit booking ahead of its financial results Tuesday. Shares of other Tata group companies witnessed gains after the National Company Law Tribunal (NCLT) dismissed the pleas of Cyrus Mistry against Tata Sons for removing him as chairman. Tata Motors rose 0.81 per cent to Rs 273.35 after Tata Motors-owned Jaguar Land Rover (JLR) reported 0.9 per cent year-on-year increase in global sales at 52,049 units in June. Tata Steel rose 0.49 per cent to Rs 556.85 on strong quarterly sales, Tata Power climbed 2.09 per cent to Rs 73.20, Tata Chemicals was up 1.65 per cent at Rs 712.90, and Tata Coffee went up 0.68 per cent to Rs 118.95.
The broader markets displayed a firm trend. The BSE small-cap index rose by 1.58 per cent and mid-cap by 1.23 per cent. Sector-wise, energy rose 1.46 per cent, capital goods 1.46 per cent, power 1.32 per cent, infrastructure 1.29 per cent, metal 1.24 per cent, healthcare 1.16 per cent, oil & gas 1.12 per cent, bankex 0.94 per cent.
RBI needs to ensure stability: Shaktikanta Das
New Delhi: The head of the Reserve Bank of India (RBI) said he would take the steps necessary to maintain financial stability in the country and help create favourable conditions for growth.
India’s economy has grown because of measures such as the nationwide goods and services tax and the insolvency and bankruptcy code that prevents wilful defaulters from bidding for stressed assets, Shaktikanta Das said in his address to an investor roundtable.
The country’s growth story is backed by its strong domestic fundamentals, he said, citing lower inflation.
Annual retail inflation rate dropped to an 18-month low of 2.19 per cent in December, strengthening the views of some economists that the central bank could ease monetary policy next month.
India’s top business groups on Thursday urged the central bank to cut its benchmark interest rate by at least half a percentage point and lower the cash reserve ratio it imposes on banks.
The country also needs to watch out for any sudden turbulence in the gloal financial market, Das said.
Centre removes two PNB executive directors for lapses in Rs 13,500-cr fraud
Chennai:The Central government has removed two Punjab National Bank (PNB) Executive Directors — Sanjiv Sharan and K.Veera Brahmaji Rao — for the lapses in the Rs 13,500 crore fraud allegedly perpetrated by absconding diamantaire Nirav Modi.
The PNB has intimated the action to the stock exchanges.
“We welcome the Central government’s action to dismiss the two Executive Directors. The scam of such proportions could not have happened without the knowledge of the top management,” C.H. Venkatachalam, General Secretary, All India Bank Employees’ Association (AIBEA), told IANS.
“Perhaps for the first time, the Centra has removed the Executive Directors of a nationalised bank under the Nationalised Banks (Management and Miscellaneous Provision) Scheme, 1970. All these days it was said the top management of government-owned banks — Chairman, Managing Director, Executive Directors — are governed only by the contract of appointment.
“It is also good that the central government has followed the due process of giving the two PNB Executive Directors opportunity to put forth their views before dismissing them,” Venkatachalam added.
According to the Central government’s notification, on July 3, 2018, Sharan and Rao were issued a show cause notice as to why they could not be removed from office for having failed to exercise proper control over the functioning of PNB, thus enabling the fraud through the misuse of SWIFT at the bank’s Brady House branch in Mumbai.
After considering Sharan and Rao’s replies and the comments of the bank’s Board, the Centre removed them from office as it found it was expedient in the interests of PNB.
According to the notification, the dismissal of Rao is subject to the outcome of a plea in the Delhi High Court.
“We are happy to see some action being taken. Whether it is only the two Executive Directors and other officials are also involved in the scam has to be probed in full,” Venkatachalam said.
According to him, in the past, low-level officers would have been the scapegoats for such massive scams.
“With the action taken on the top management, people will be satisfied that public sector bank officials are answerable for their lapses,” Venkatachalam added.
In this new world, data is the new wealth: Ambani
Mumbai: Reliance Industries chairman and managing director Mukesh Ambani urged Prime Minister Narendra Modi to take steps against ‘data colonisation’, specially by global corporations, stating that Indian data must be owned by Indians.
Invoking Mahatma Gandhi’s movement against political colonisation, Ambani said India now needs a new movement against data colonisation.
“Gandhiji led India’s movement against political colonisation. Today, we have to collectively launch a new movement against data colonisation,” he said Gandhinagar at the Vibrant Gujarat Global Summit.
Stressing that, in this new world, data is the new wealth, Ambani said, “India’s data must be controlled and owned by Indian people and not by corporate, especially global corporations.”
He further said, “For India to succeed in this data driven revolution, we will have to migrate the control and ownership of Indian data back to India. In other words, give Indian wealth back to every Indian.”
Stating that the “entire world has come to recognise” Modi “as a man of action”, Ambani said, “Honorable Prime Minister, am sure you will make this one of the principal goals of your digital India mission.”
Later in the day, countering Ambani’s call, Governor – Commonwealth of Kentucky, Matthew Griswold, asked Modi “to think in the opposite” in order to realise the tremendous opportunity that lies in Indo-US partnership.
“Honorable prime minister you have been asked from this stage to think about limiting the amount of competition, limiting the exchange of ideas, information and goods. I would encourage you to think in the opposite,” he said.
While stating that it is important to put the people of India first, Griswold said, “It is also important to put their opportunity and our opportunity as citizens of the world to trade with one another and exchange ideas because iron sharpens iron.”
The greatest possibility comes from the exchange of these idea, he added.
“If we can cut the regulations, cut the bureaucracy, cut the red tape, the opportunity is enormous between our nations,” he added that India is now the 10th largest trading partner for the US and “climbing quickly”.
“The opportunity before us between India and the United States is incredible, but responsibility falls on each of one us, those of us in elected positions, those of you in the industry, those of you who represent various constituencies, we have much work to do…we must do this, ” Griswold said.