Month: January 2019

Closing Bell: Nifty ends above 10,900, Sensex see sharp recovery, HDFC twins, ICICI Bank lift indexes, M&M falls 4%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asian shares post sharpest losses in seven years in 2018

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asian stock markets ended 2018 with negative returns in dollar terms, weighed down by trade tensions and slowing profit growth.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 16 percent this year in its sharpest drop since 2011.

Chinese equities were the top losers in the region, shedding about 29 percent in dollar terms, followed by Pakistan and South Korea.

This year’s sharp declines have made regional stocks cheaper which could prompt bargain-hunting, some analysts said.

South Korean equities were the cheapest in the region with a forward price-to-earnings ratio of 8.8, followed by China’s 9.9, Refinitiv data showed.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Sydney, Hong Kong kick off 2019 parties with dazzling fireworks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sydney and Hong Kong put on stunning fireworks displays to welcome to the New Year, among the first in a wave of celebrations for billions around the world.

Australia’s largest city organised its biggest-ever fireworks display and used new effects to light up the skyline for 12 minutes. More than 1.5 million spectators packed the harbour front and parks to enjoy the spectacle.

To mark the international year of indigenous languages in 2019, the harbour also hosted a ceremony celebrating Aboriginal heritage that included animations projected onto the bridge’s pylons.

In Hong Kong, hundreds of thousands of revellers packed the streets on both sides of Victoria Harbour for a spectacular 10-minute show that used $ 1.8 million worth of fireworks.

In the Indonesian capital Jakarta, more than 500 couples tied the knot in a free mass wedding organised by the government. Fireworks shows were cancelled out of respect for tsunami victims.

New Year’s Eve celebrations were also called off in nearby Banten province, where the disaster struck on December 22 killing more than 400 people.

In Japan, locals flocked to temples to ring in 2019, as US boxing superstar Floyd Mayweather came out of retirement to beat Japanese kickboxer Tenshin Nasukawa in a multi-million-dollar “exhibition” bout outside Tokyo.

A strong police presence has become a key element of the festivities, to protect crowds that could be targeted in terror and vehicle attacks.

Russia will see in the new year progressively over several time zones, having started in far eastern Kamchatka.

In Moscow, concerts and light shows will be held across the city’s parks and more than 1,000 ice rinks have been opened for merrymakers.

But a tower block gas explosion that killed at least four people and left dozens more missing has cast a shadow over New Year’s celebrations — the biggest holiday of the year in Russia.

In Paris, a fireworks display and sound and light show under the theme “fraternity” is scheduled on the Champs-Elysees despite plans for further “yellow vest” anti-government protests at the famed avenue.

French President Emmanuel Macron in a televised address shortly before the new year, acknowledged that the French government had to do better.

In Berlin, music lovers will party at a concert at the Brandenburg Gate, but a popular German tradition of setting off fireworks to mark the occasion has been banned in some other cities over safety concerns.

Britain’s capital London will usher in the New Year by celebrating its relationship with Europe despite the turmoil over Brexit and the impending departure from the European Union.

Scottish capital Edinburgh’s traditional Hogmanay celebrations will also have a pro-European theme.

Election officials will be counting votes in the Democratic Republic of Congo after Sunday’s massive presidential election.

In Nigeria meanwhile, President Muhammadu Buhari on Monday promised a free and fair election in 2019. Early this month, Buhari and other candidates signed a peace deal ahead of the February 16 vote.

Revellers in Dubai will flock to see fireworks at the world’s tallest tower, Burj Khalifa, while another United Arab Emirates city — Ras al-Khaimah — will attempt to set the Guinness World Record for “longest fireworks show”.

Rio de Janeiro’s famous hilltop statue of Christ the Redeemer will be brought to 3D life with special light projections before fireworks illuminate the city’s Copacabana beach where around two million revellers, many dressed in white, will party till dawn.

As the world parties, many will also look forward to 2019 and wonder whether the turmoil witnessed during the previous year will spill over into the next.

The political wrangling in Westminster over Brexit was one of the key stories of this year, with a resolution yet to be reached ahead of the scheduled March 29 departure.

US President Donald Trump dominated headlines in 2018. He ramped up his trade war with China, quit the Iran nuclear deal, moved the US embassy to Jerusalem and met his North Korean counterpart Kim Jong Un for a summit, the results of which have divided commentators.

North Korea’s commitment to denuclearisation will remain a major political and security issue into next year, as will Syrian President Bashar al-Assad’s reassertion of control after Trump’s shock military withdrawal announcement.

The war in Yemen, which started in 2014 and has already killed about 10,000 people and left some 20 million at risk of starvation, could take a crucial turn after a ceasefire went into effect in mid-December.

Numerous countries go to the polls in 2019, with key elections in India, Afghanistan, Indonesia, Nigeria, South Africa, Argentina and Australia.

Major sporting events on the calendar include the Rugby World Cup in Japan, the cricket one-day international World Cup in England and the athletics World Championships in Qatar.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Wall Street rises, limps across the finish line of a turbulent year

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Wall Street advanced in low-volume trading on Monday as revelers gathered to ring in 2019, marking the end of the worst year for US stocks since 2008, the height of the financial crisis.

Wall Street entered correction territory in late January and was challenged for much of 2018 by tariff jitters, rising interest rates, and fears of diminishing corporate profits.

“Investors got complacent,” said Thomas Martin, senior portfolio manager at Globalt Investments in Atlanta. “People were positioned for the lack of volatility, and when that changed because of trade concerns and interest rates, people started repositioning and that started the cascade.”

December was a particularly trying month for U.S. equities. The S&P 500  saw its worst December since the Great Depression and the Nasdaq confirmed it was in a bear market, or 20 percent below its high. All three are down about 9 percent since the beginning of the month.

In the new year, investors hope for the removal of question marks that acted as significant headwinds in 2018, including U.-China trade negotiations, the path of US Federal Reserve interest rate hikes, slowing corporate growth and economic fallout from the upcoming departure of Britain from the European Union, or Brexit, among other concerns.

As 2019 gets underway, “investors will be looking to corporate earnings, what happens with the trade negotiations and the body language of the Fed,” Martin added.

On Monday, renewed hopes for a resolution to the U.S.-China trade dispute provided a glimmer of optimism for investors.

US President Donald Trump indicated on Twitter that progress had been made toward a potential settlement of trade tensions between the United States and China which have plagued stock markets for much of the year.

Trading volume was relatively light, owing to the holiday as the U.S. federal government shutdown entered its 10th day.

Healthcare and tariff-sensitive technology stocks, led by Boeing Co and Caterpillar Inc, provided the biggest boost to the S&P 500 on Monday.

The Dow Jones Industrial Average rose 265.06 points, or 1.15 percent, to 23,327.46, the S&P 500 gained 21.11 points, or 0.85 percent, to 2,506.85 and the Nasdaq Composite added 50.76 points, or 0.77 percent, to 6,635.28.

All 11 major sectors in the S&P 500 ended the session in positive territory. But for the year, only healthcare and utilities ended 2018 higher.

Energy, materials, communication services, industrials and financials were the biggest percentage losers of 2018, down between 14.7 percent and 20.5 percent from the beginning of the year.

The 20.5 percent drop of energy stocks in 2018 was largely attributable to crude prices plunging 38 percent since early October.

Advancing issues outnumbered declining ones on the NYSE by a 2.42-to-1 ratio; on Nasdaq, a 1.81-to-1 ratio favored advancers.

The S&P 500 posted no new 52-week highs and no new lows; the Nasdaq Composite recorded eight new highs and 98 new lows.

Volume on US exchanges was 7.46 billion shares, compared with the 9.22 billion-share average for the full session over the last 20 trading days.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

New food standards to come into force from January 1: FSSAI

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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New food standards, including for all pulses, organic food and honey, will come into force from Tuesday. The Food Safety and Standards Authority of India (FSSAI) on Monday said food businesses are usually provided at least 6 months as transition period before new standards come into force and the date of effect of standards is either January 1 or July 1.

According to an FSSAI statement, microbiological standards for fruit and vegetables and their products will also come into force on Tuesday.

The statement also said tolerance limit of antibiotics and pharmacology active substances would come into effect on January 1, 2019.

It further said that standards for alcoholic beverages will come into force on April 1, 2019, to coincide with financial year requirements excise laws.
Food fortification regulations will come into force on July 1, 2019, the statement said.

According to the statement, the regulations on advertising and claims, packaging and labelling requirements of blended edible vegetable oils will come into force on July 1, 2019.

It also said that as many as 27 new regulations for food standards were notified in 2018.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Government infuses Rs 10,882 crore capital in four PSU banks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The government on Monday infused Rs 10,882 crore in four public sector banks, including UCO Bank and Syndicate Bank, as part of Rs 28,615 crore capital infusion to be done in about half a dozen public sector lenders.

The bank has received Rs 3,074 crore in the equity by way of preferential allotment on Monday, UCO Bank said in a regulatory filing. Besides, Bank of Maharashtra got Rs 4,498 crore, Syndicate Bank Rs 1,632 crore and Central Bank of India Rs 1,678 crore.

The government has already announced infusion of Rs 10,086 crore in Bank of India, Rs 5,500 crore in Oriental Bank of Commerce and Rs 2,159 in United Bank of India.

The government pumped in Rs 28,615 crore into seven public sector banks (PSBs) through recapitalisation bonds.

The government had earlier announced an infusion of Rs 65,000 crore in PSBs in 2018-19, of which Rs 23,000 crore has already been disbursed, while Rs 42,000 crore is remaining. Earlier this month, Finance Minister Arun Jaitley said the government would put an additional Rs 41,000 crore in PSBs over and above what was announced earlier.

On December 20, the government sought Parliament’s approval for infusion of an additional Rs 41,000 crore. The recapitalisation, the finance minister said, would enhance the lending capacity of PSBs and help them come out of the Reserve Bank of India’s Prompt Corrective Action (PCA) framework.

Eleven out of the total 21 PSBs are under the RBI’s PCA framework, which imposes lending restrictions on weak banks. These are Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, UCO Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce, Dena Bank and Bank of Maharashtra.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Four-fold jump in quantum of money defrauded from banks in last 4 years, says RBI

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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There has been a four-fold increase in the quantum of money swindled by fraudsters from banks in the last four years, the Reserve Bank said on Monday.

Looking at the progress in the first half of the ongoing fiscal, the pace of frauds seems to be continuing on the upward trajectory, the RBI data said.

In the financial stability report, the RBI said 5,917 frauds involving an amount of Rs 41,167 crore were reported by the banks in fiscal year 2017-18, as against 4,306 frauds entailing an amount of Rs 10,170 crore in FY14.

The graph of both the frauds as well as the amount involved has been on the rise steadily through the four years till FY18, which coincides with the government change at the Centre.

The only exception was in fiscal year 2015-16, which saw a dip in the total amount involved as compared to the previous fiscal, even as the number of frauds rose marginally.

In the government’s full final fiscal in office, the trend of a rise in frauds seems to be continuing, with 3,416 frauds involving an amount of Rs 30,420 crore being reported.

On an annualised basis, it is higher than the previous fiscal’s 5,917 frauds involving an amount of 41,167 crore.

There has been a huge jump in credit related frauds in the first half of the current fiscal, the RBI report said, pointing out that they now constitute 94.51 per cent of the overall amount as against 54.8 per cent in the previous fiscal and 82.71 per cent in fiscal year 2013-14.

There has been a marked increase in the number of large frauds involving amounts of over Rs 50 crore, it said, adding that the state-run lenders continue to be a major victim of fraud-related cases.

The FSR said the share of the 11 state-run banks under the prompt corrective action (PCA) framework was more than their share of the risk-weighted assets, at 36.5 per cent of the overall frauds as against under 19 per cent share in operational risk going by risk weighted assets.

“A more judicious alignment of realised operational risk with allocated capital, specifically with regards to PCA-PSBs, is desirable,” the report said.

It recommended a ringside assessment of efficacy of audit framework (both internal and external), the internal governance framework, with regard to accountability and credit screening/oversight for the state-run lenders.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Government monitoring economic conditions to ensure fiscal deficit remains within target, says Finance Ministry

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The finance ministry on Monday said the government is closely monitoring the macroeconomic conditions to ensure that the fiscal deficit remains within the target of 3.3 per cent of the GDP for 2018-19.

It has directed ministries and departments to meet their additional requirements of funds from savings and keep their expenditure within the amount earmarked in the Budget for 2018-19, according to the statement on half-yearly review of the trends in receipts and expenditure.

The ministry further said the efforts were being made to achieve the target for non-debt receipts as well as tax receipts.

“…the macro-economic condition in the country is being closely monitored by the government to keep fiscal indicators within the budgeted targets,” said the statement regarding directives issued under the Fiscal Responsibility and Budget Management Act, 2003.

Referring to the deviations, it said: “Non-debt receipts have marginally deviated from their mid-year benchmark of 40 per cent of Budget Estimates (BE). Total expenditure in first half 2018-19 is 53.4 per cent of BE which is 0.1 per cent lower than corresponding period and 2.7 per cent higher than five years’ moving average.”

Net tax revenue in first half of 2018-19 is 39.4 per cent of BE but in comparison to past trend, it is 4.8 per cent below corresponding period and 0.4 per cent above five years’ moving average, it said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Government forms committee for ‘effective’ implementation of real estate law RERA

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The government has constituted a committee to suggest recommendations to strengthen the real estate law RERA and to remove difficulties in its implementation, an official said on Monday.

The decision to form the committee, to be headed by Union Housing and Urban Affairs Joint Secretary Shiv Das Meena, comes months after the ministry organised four workshops where stakeholders, including home-buyers, had given suggestions for effective implementation of the Real Estate Regulatory Act (RERA).

RERA, which protects the interest of home buyers, empowers states to notify their rules and appoint regulatory authorities.

As of now, 28 states and Union territories have notified rules under the real estate law.

“The ministry has formed a committee under its Joint Secretary Shiv Das Meena. The panel will look into the suggestions received at the four workshops on RERA and then submit its recommendations to the ministry.

“The committee will also consider whether there’s a need for changes under removal of difficulties of the central law’s clause,” the official said.
If needed, the committee may suggest amendments to RERA, he said, adding that the panel will hold its first meeting on January 3.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

NBFCs balance sheet grew 17.2% to Rs 26 trillion as of September 2018, says RBI

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The balance sheet size of non-bank financial companies (NBFCs) grew by 17.2 percent to Rs 26 trillion in September 2018 from Rs 22.2 trillion in
September 2017, a Reserve Bank of India (RBI) report showed.

Net profit of sector increased by 16.2 percent during the half year ended September 2018 as compared to 22.9 percent during the year ended March 2018, RBI said in the Financial Stability Report released on Monday.

Gross non performing assets of the NBFC sector as a percentage of total advances rose to 6.1 percent in September 2018 from 5.8 percent in March 2018, the report said.

The sector saw a 5.8 per cent increase in share capital in September 2018 whereas borrowings grew by 17.2 percent, it said.

Loans and advances of the NBFC sector increased by 16.3 per cent and investments increased by 14.1 per cent, the report highlighted.

The sector’s capital to risk-weighted assets ratio (CRAR) decreased to 21 percent in September 2018 from 22.8 percent in March 2018.

NBFCs are required to maintain a minimum capital level consisting of tier-I and tier-II capital, of not less than 15 per cent of their aggregate risk-weighted assets.

The report said various stress test results for individual NBFCs indicate that around 8 percent of the companies will not be able to comply with the minimum regulatory capital requirements of 15 percent.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow