Month: July 2019

Closing Bell: Sensex ends 292 points up, Nifty above 11,850 as HDFC twins, RIL lift indexes, ZEEL surges 8.2%, Dr Reddy’s 4%

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

Listen to the Article (6 Minutes)

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

FPIs remain net buyers for 5th month in a row, pump Rs 10,384 crore in June

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

Listen to the Article (6 Minutes)

Foreign investors infused a net amount of Rs 10,384 crore into the Indian capital markets in June and remained net buyers for the fifth month in a row on expectations of continued economic reforms.

Foreign portfolio investors (FPI) invested a net of Rs 2,272.74 crore in equities and Rs 8,111.80 crore in the debt segment, taking the total net investment to Rs 10,384.54 crore in June, according to the depositories’ data.

“The net inflows in June emphasises that investors expect the continuation of economic reforms under the (Bharatiya Janata Party) BJP-led government which would propel economic growth. However, the low quantum of net inflows suggests that investors are not yet investing with full conviction and are adopting a wait-and-watch stance before the Budget scheduled on July 5,” said Himanshu Srivastava, senior research analyst and manager (research), Morningstar.

So far in 2019, the FPIs have invested a net cumulative amount of Rs 87,313.22 crore since January, the data showed.

Except January, FPIs have been net buyers in 2019 till now and have invested a net Rs 9,031.15 crore in May, Rs 16,093 crore in April, Rs 45,981 crore in March and Rs 11,182 crore in February into the Indian capital markets (both equity and debt).

“FPI investment, though trending down post March, continues to be positive. So long as the leading central banks continue to be dovish, FPI inflows will continue. As of now, there are no signs of a stance reversal,” V K Vijayakumar, chief investment strategist at Geojit Financial Services, said.

Commenting on the outlook, he said, “The FPI into Indian equity will depend on the outcome of Budget to be presented on July 5th. Presently, there is no valuation comfort in the market and the monsoon has been well below the long-term average, which are likely to moderate FPI flows.”

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

Anisha Jain’s market update on July 01: Sensex, Nifty likely to open higher; DHFL, Jet Airways, JSW Steel in focus

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

Listen to the Article (6 Minutes)

Indian benchmark indices are likely to edge higher on Monday following gains in global markets after positive development in US-China trade negotiations. Investors, however, will remain cautious ahead of the Union Budget on July 5.

Stocks also rallied and bonds retreated in Asia on Monday as a thaw in the Sino-US trade dispute tempered risks to the global economy, leading investors to pare wagers on aggressive policy easing by the major central banks.

Oil prices rose over $1 a barrel after Russia agreed with Saudi Arabia to extend supply cuts for another six to nine months ahead of an OPEC meeting this week.

Indian benchmark indices closed lower on Friday with the Sensex ending the session 192 points lower at 39,395, while the broader Nifty50 index losing 53 points to end at 11,789.

At 7.27 AM, SGX Nifty an early indicator of the Nifty 50’s trend in India, traded 11.50 points, or 0.10 percent, higher at 11,849.50, pointing to a positive start for the Sensex and the Nifty 50.

Stocks to watch: DHFL, Jet Airways, JSW Steel in focus.

About MarketBuzz

The CNBCTV18.com podcast on the big themes, vital news and key events that you should know before the opening bell, powered by CNBC-TV18 anchors.

MarketBuzz is your daily morning briefing by CNBC-TV18 research analysts and anchors Sonia Shenoy, Ekta Batra, Anisha Jain, Nigel D’Souza and Mangalam Maloo to jumpstart your stock market investing.

Subscribe to our free podcasts on Audioboom or listen on the featured podcast page on CNBCTV18.com.

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

Governement working on tax sops for retail investors in CPSE, Bharat-22 ETF

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

Listen to the Article (6 Minutes)

The government is working on a proposal to extend tax benefits to retail investors in its two exchange-traded funds – CPSE and Bharat-22 ETF.

The Department of Investment and Public Asset Management (DIPAM) has written to the Central Board of Direct Taxes (CBDT), seeking their opinion on whether equity linked saving scheme (ELSS) benefit under section 80C of Income Tax Act can be extended to retail investors of these ETFs, an official has said.

As per the plan chalked out by the DIPAM, retail investors in CPSE and Bharat-22 ETF would be given option to enjoy tax breaks just like investors in ELSS mutual funds. However, their investments would be locked-in for three years.
These investors can also choose to not opt for ELSS category and can continue to trade in their units freely.

“We have written to the tax department seeking their opinion on whether ELSS benefits can be extended to CPSE and Bharat-22 ETF,” the official told PTI.

If the CBDT, which is the apex decision making body for direct tax matter, gives concurrence, then DIPAM would work out a final plan and an announcement may be made in the 2019-20 Budget to be unveiled on July 5.

Though extending ELSS benefits to the existing ETFs would not add to the government’s disinvestment coffers, but it would stimulate retail investments in ETFs and also encourage household savings.

Currently, investments made in ELSS MFs are eligible for tax deduction of up to Rs 1.50 lakh under section 80C of the I-T Act, with a mandatory three-year lock-in period.

The government, currently, has two exchange-traded funds – CPSE ETF and Bharat-22 ETF – listed on domestic exchanges. ETFs function like a mutual fund scheme and have underlying assets of government-owned companies.

Separately, it has also kickstarted work on launching an ETF consisting of stocks of state-owned banks, insurers and financial institutions this fiscal and has invited bids from advisors to explore its feasibility.

The plan to launch a financial sector ETF comes on the back of the government seeing huge investor demand for two existing ETFs. It has raised Rs 32,900 crore through two tranches and an additional fund offer of Bharat-22 ETF, and Rs 38,000 crore in five tranches of CPSE ETF in the domestic market.

The government had raised about Rs 85,000 crore from CPSE disinvestment last fiscal. For the current fiscal, the target is Rs 90,000 crore.

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

Air India Express plane veers off taxiway, all passengers safe

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

Listen to the Article (6 Minutes)

As many as 183 passengers aboard an Air India Express flight had a narrow escape when the aircraft that arrived from Dubai veered off the taxiway after landing at Mangaluru International Airport on Sunday.

All passengers and crew members on board are safe, Air India Express said in a statement.

The incident happened at around 5.40 pm after the aircraft landed at the airport.

“AI Express aircraft VT-AYA, operating IX 384, Dubai to Mangalore on June 30, after landing on runway 24 while vacating the runway to the right side has gone off the taxiway into soft ground,” the airlines 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

OPEC set for oil cut extension if Iran endorses pact

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

Listen to the Article (6 Minutes)

OPEC and its allies look set to extend oil supply cuts next week at least until the end of 2019 as Iraq joined top producers Saudi Arabia and Russia on Sunday in endorsing a policy aimed at propping up the price of crude amid a weakening global economy.

Iran is the only major OPEC nation yet to have spoken publicly about a need to extend production cuts. Tehran has in the past objected to policies put forward by arch-rival Saudi Arabia, saying Riyadh was too close to Washington.

The United States is not a member of OPEC, nor is it participating in the supply pact. Washington has demanded Riyadh pump more oil to compensate for lower exports from Iran after slapping fresh sanctions on Tehran over its nuclear programme.

OPEC and its allies led by Russia have been reducing oil output since 2017 to prevent prices from sliding amid soaring production from the United States, which has become the world’s top producer this year ahead of Russia and Saudi Arabia.

Fears about weaker global demand as a result of a US-China trade spat have added to the challenges faced by the 14-nation Organization of the Petroleum Exporting Countries in recent months.

Russian President Vladimir Putin said on Saturday he had agreed with Saudi Arabia to extend existing output cuts of 1.2 million barrels per day, or 1.2 percent of global demand, by six to nine months – until December 2019 or March 2020.

Saudi Energy Minister Khalid al-Falih said the deal would most likely be extended by nine months and no deeper reductions were needed.

“It’s a rollover and it’s happening,” Falih, whose country is the de facto leader of OPEC, told reporters.

Warren Patterson, head of commodities strategy at Dutch bank ING, said OPEC had more to lose by not extending the deal.

“It comes down largely to fiscal breakeven oil prices – the Saudis have a breakeven price of around $85 per barrel, and so they will be concerned about potentially a widening gap between this level and where the market trades,” he said.

Benchmark Brent crude has climbed more than 25 percent since the start of 2019 to $65 per barrel. But prices could stall as a slowing global economy squeezes demand and US oil floods the market, a Reuters poll of analysts found.

Worsening Geopolitical Risk

The output-cutting pact expires on Sunday. OPEC meets in Vienna on Monday followed by talks with Russia and other allies, a grouping known as OPEC+, on Tuesday.

Iraqi Oil Minister Thamer Ghadhban said on Sunday he expected the deal to be extended by six to nine months.

“Iraq’s position is positive, deals with the reality of the challenges of the oil market and supports all (efforts) related to balancing oil supply and demand,” Ghadhban said.

Iraq has overtaken Iran as OPEC’s second-largest oil producer and its exports have been rising due to investments by Western majors.

Iran’s exports, in contrast, have plummeted to 0.3 million barrels per day in June from as much as 2.5 million bpd in April 2018 due to Washington’s fresh sanctions.

The sanctions are putting Iran under unprecedented pressure. Even in 2012, when the European Union joined US sanctions on Tehran, the country’s exports stood at around 1 million bpd. Oil represents the lion’s share of Iran’s budget revenues.

Washington has said it wants to change what it calls a “corrupt” regime in Tehran. Iran has denounced the sanctions as illegal and says the White House is run by “mentally retarded” people.

Iranian Oil Minister Bijan Zanganeh has not spoken in recent days about the OPEC meeting. He is due in Vienna on Monday.

“Worsening tensions between the US and Iran add potential for oil price volatility that could be tricky for OPEC members to manage,” said Ann-Louise Hittle, vice president, macro oils, at consultancy Wood Mackenzie.

“Geopolitical risk means the supply outlook is tightening, offsetting the moderate weakening in oil demand growth thus far this year,” she added.

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

Non-subsidised LPG cylinder price reduced by over Rs 100

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

Listen to the Article (6 Minutes)

Just a few days ahead of the Union Budget, the price of non-subsidised LPG Sunday was cut by over Rs 100 per cylinder on the back of softening international rates, Indian Oil Corp (IOC) said.

The cooking gas in Delhi will be priced at Rs 637 per cylinder from midnight tonight as against Rs 737.50 currently, IOC said in a statement.

Subsidised cooking gas price will be Rs 494.35 per cylinder.

Finance minister Nirmala Sitharaman will present her first Budget for the fiscal year 2019-2020 on July 5.

“The price of non-subsidised LPG in Delhi will decrease by Rs 100.50 per cylinder with effect from July 1 based on LPG prices in the international market and US dollar-rupee exchange rate,” India Oil said in a statement.

“Accordingly, the upfront cash payment by the consumer of domestic LPG will also reduce by Rs 100.50 per cylinder. Domestic LPG consumer will now be required to make upfront cash payment of Rs 637 per cylinder in place of Rs 737.50 per cylinder.”

“As domestic LPG prices are subsidised by the Government, the effective price after subsidy to consumer will be Rs 494.35 per cylinder for the month of July 2019. The balance amount is borne as subsidy (Rs 142.65 per cylinder) by the central government and is being transferred to the bank account of LPG consumers after purchase and delivery of a refill,” it added.

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

Oil prices rise more than 1% after Russia agrees to extend OPEC+ deal

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

Listen to the Article (6 Minutes)

Oil prices rose more than $1 a barrel on Monday after Russia agreed with Saudi Arabia to extend supply cuts for another six to nine months ahead of an OPEC meeting this week.

Front-month Brent crude futures for September touched an intraday high of $66.14 a barrel and were up 89 cents, or 1.4 percent, at $65.63 a barrel by 1117 GMT.

US crude futures for August rose 88 cents, or 1.5 percent, to $59.35 a barrel after earlier hitting a peak of $60.10, the highest in over five weeks.

The Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers, an alliance known as OPEC+, meet on July 1-2 to discuss supply cuts, which have been curbing oil output by 1.2 million barrels per day (bpd).

Russian President Vladimir Putin said on Sunday the deal would be extended in its current form and with the same volumes.

Saudi Energy Minister Khalid al-Falih said on Sunday that the deal would most likely be extended by nine months and no deeper reductions were needed.

“While this needs to be ratified by the remaining members of the OPEC+ group, this appears to be a fait accompli,” ANZ analysts said in a note.

Oil prices have come under renewed pressure in recent months from rising US supplies and a slowing global economy.

US crude oil output in April rose to a fresh monthly record of 12.16 million bpd, the US Energy Information Administration said in a monthly report on Friday.

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

Asia stocks cheer trade truce, bonds retreat

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

Listen to the Article (6 Minutes)

Stocks rallied and bonds retreated in Asia on Monday as a thaw in the Sino-US trade dispute tempered risks to the global economy, leading investors to pare wagers on aggressive policy easing by the major central banks.

The dollar gained on the safe-haven yen as Treasury yields jumped and futures reined in bets for a half-point rate cut from the US Federal Reserve this month.

“The Osaka truce has reduced the probability of escalation in the near term, and slightly exceeded market expectations,” said analysts at Barclays in a note.

“However, we do not think the likelihood of a deal has necessarily increased,” they warned. “It is probably in the best interest of both parties to keep the talks running as long as they can.”

The initial reaction was one of relief that new tariffs were avoided and Japan’s Nikkei climbed 1.6 percent to a two-month top. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.3 percent.

E-Mini futures for the S&P 500 rose 0.9 percent. Treasury futures slid 11 ticks and yields on 10-year notes rose 4 basis points to 2.04 percent.

Fed funds dropped over 5 ticks as the market scaled back the probability of a 50 basis-point rate cut this month to around 13 percent, from nearer 50 percent a week ago.

The United States and China agreed on Saturday to restart trade talks after President Donald Trump offered concessions including no new tariffs and an easing of restrictions on tech company Huawei in order to reduce tensions with Beijing.

China agreed to make unspecified new purchases of US farm products and return to the negotiating table.

DAMAGE DONE

Still, no deadline was set for a deal and much damage has already been done, with a survey of Chinese manufacturing out over the weekend showing a continued contraction in new orders.

The official Purchasing Managers’ Index (PMI) held at 49.4 in June, just missing forecasts.

“Although a worst case outcome has been averted, the threat of tariffs remains and it is unlikely the truce gives much confidence to firms’ investment and hiring decisions,” said Tapas Strickland, a director of economics at NAB.

“As such, it is likely that soft manufacturing conditions will persist until if and when a fuller agreement is fleshed out.”

The reaction in currency markets was to strip some recent gain from safe harbors like the yen and Swiss franc. The dollar hopped up 0.4 percent on the yen to 108.30 and gained 0.3 percent on the franc to 0.9792.

The dollar added 0.2 percent on a basket of currencies to 96.306, but was little changed on the euro at $1.1361. The offshore Chinese yuan gained 0.6 percent to 6.8248 per dollar, its highest since May 10.

The dollar’s gains took some of the shine off gold, which fell 1.2 percent to $1,391.71 per ounce.

Oil prices swung high in early trade on news OPEC and its allies look set to extend supply cuts at least until the end of 2019 as Iraq joined top producers Saudi Arabia and Russia in endorsing the policy.

Brent crude futures rose $1.04 cents to $65.78, while US crude gained $1.03 cents to $59.50 a barrel.

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