IT stocks fail to cash in on record rupee fall

Although the rupee hit a new low on Thursday against the dollar, IT stocks barely reacted gaining just between 0.8% and 2%. Mindtree’s shares were up around 2% during Thursday’s trading session followed by Tech Mahindra whose stock was up around 1.7%. Stocks of other IT firms like Tata Consultancy Services (TCS), Infosys, Hexaware and Wipro barely budged. The Indian rupee on Thursday hit a lifetime low of 68.86 in intra-day trades against the US dollar due to a strengthening of the dollar against virtually all currencies. The BSE IT index ended the session at 9,434.05, up 114.78 points or 1.23%, […]

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As stock markets plunge, promoters pledge more shares; Vivimed Labs, TGB, Premier, Reliance Power in list

Promoters of 36 companies were required to provide additional shares worth Rs 1,863 crore to lenders. (Reuters) With the markets in free fall, promoters have been compelled to pledge more shares as collateral against funds borrowed, data compiled from Capitaline shows. Promoters of 36 companies were required to provide additional shares worth Rs 1,863 crore to lenders. For a sample of 37 companies, the pledged shares went up to 64.3% of their stakes, an increase of 54 bps since the end of September. . Such a sharp jump in additional pledges is probably a function of margin calls getting triggered, market […]

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Rupee dives to lowest level since August 2013! 5 reasons why the Indian currency is in a free fall

Indian Rupee: The currency is in a free fall owing to multiple reasons, such as FIIs exiting the Indian market, dollar’s bull run. (Reuters photo) The Indian rupee has plunged to its lowest level in over 3 years and there is no respite in sight, despite the Reserve Bank of India (RBI) is actively intervening to step the rapid depreciation of the currency versus the US dollar. The currency is in a free fall owing to multiple reasons, such as FIIs exiting the Indian market, dollar’s bull run on possible US Federal Reserve rate hike, and month-end demand for the American […]

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Rupee hits record low of 68.86 by plunging 30 paise against US dollar

Forex dealers said besides a strong month-end demand for the American currency from importers, continued capital outflows by foreign funds and the dollar’s bull run on an imminent hike in Fed’s interest rates, mainly weighed on the domestic currency. (Reuters) The rupee hit a record low of 68.36 by plunging 30 paise against the US dollar on Thursday amid sustained foreign fund outflows and the greenback’s surge in overseas markets. The low surpassed the rupee’s previous all-time nadir of 68.85 hit in August 2013, when the country was mired in its worst currency crisis in more than two decades. News agency […]

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Sensex to hit 30,000 mark by September 2017, instead of March: Citi

Surendra Goyal, Head of India Equity Research at Citi India told CNBC-TV 18 that FIIs (Foreign Institutional Investors) will be spooked by rupee’s depreciation. Citi expects the Sensex to hit the 30,000 mark by September 2017, as against the earlier projection of March 2017. Surendra Goyal, Head of India Equity Research at Citi India told CNBC-TV 18 that FIIs (Foreign Institutional Investors) will be spooked by rupee’s depreciation. Goyal believes that it is tough to assess the damage caused by demonetisation. Talking sector-specific, Goyal said that real estate, cement, consumer discretionary, rural-focused NBFCs will face stress for longer time than others […]

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IIFL cuts by 3 per cent aviation volume growth assumption

The domestic air travel industry has grown at around 20% since mid-CY2014. However, this coincided with a significant increase in supply; hence, pricing was under pressure. Just when the pricing scenario seemed to stabilise, the government’s demonetisation move has come as a bolt from the blue. The proportion of cash payment for air tickets is low. Nevertheless, the negative wealth effect and the resultant fall in consumer sentiment would affect sales, especially given the discretionary nature of air travel. We cut our FY18 industry volume growth assumption by 3-4ppt. Lower demand will hurt load factor and pricing, given that aircraft deliveries […]

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Eclerx’s share buyback to open on Monday

The buyback offer is for Rs 2,000 per share, 37% above its closing price of Rs 1457.10 a piece on Thursday at the Bombay Stock Exchange (BSE).(Reuters) Eclerx Services, a Mumbai-based knowledge and business process outsourcing company, has in a regulatory filing said that it will buy back 11.7 lakh shares from the existing shareholders for about R234 crore from November 28. The company has cash and equivalents of Rs 544 crore as on March 31,2016. The buyback offer will close on December 9,2016. The buyback is proposed to be made from all the existing shareholders, including promoters, of the company […]

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Morgan Stanley says US Fed rate hike to have negligible impact on Dalal Street

Besides, Desai said while demonetisation will have some negative impact on the Indian economy in the short term, the scenario looks positive in the long run. (Source: Reuters) Keeping its Sensex target for the March 2017 unchanged at 30,000, Wall Street brokerage Morgan Stanley today said the impact of a US Fed rate hike seems to be becoming less relevant for the domestic market.”In the context of the country’s macro stability today that risk (Fed) is less relevant to India. We are pretty comfortable and in fact this is the first time since the liberalisation 25 years ago that India has […]

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P-Notes investments fall to 30-month low at 2 lakh crore in October

The total value of P-Notes investment in Indian markets has fallen since October 2015 and the trend continued till February this year. (Source: IE) Investments in domestic capital markets through participatory notes (P-Notes) fell to its lowest level in two-and-half years to Rs 2 lakh crore in end-October. P-Notes are typical instruments issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to participate in Indian markets without registering themselves directly in the country to save time. But they still need to go through a proper due diligence process. According to data available with Sebi, the total value of […]

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