Companies and Markets

Companies & Markets

Foreign fund outflow not India-specific, says Survey

Foreign Portfolio Investments (FPI) / Foreign Institutional Investments (FII) outflow last year was not an India-specific phenomenon as most emerging markets witnessed a pullout due to higher returns in advanced economies.
Playing down sell-off in Indian markets by foreign funds, the Economic Survey said “the FPI/ FII outflow was not a phenomenon associated with Indian markets alone as FPIs pulled out of most EMEs (emerging market economies) in a big way due to higher returns in advanced economies.”

Sensex slides 98 pts as govt readies Economic Survey

The benchmark Sensex dropped over 98 points and the NSE Nifty slipped below the 8,600-mark in early session today as participants kept their bets to a minimum tracking the Economic Survey due later in the day.

Besides, weak global cues tempered mood. The 30-share index was down 98.02 points, or 0.35 per cent, at 27,751.54, with IT, auto, technology, metal and PSU trading in the negative zone, falling by up to 0.92 per cent.

Voda calls Idea for merger in big shake-up

Heralding consolidation in the $37 billion Indian telecom industry, Vodafone Group on Monday announced that it is in discussions with the Aditya Birla group to merge its Indian unit with Idea Cellular in a deal that would create the country’s largest cellular carrier in the country. The UK-based telecom major in a filing to the London Stock Exchange (LSE) said it is in talks with Idea Cellular about a potential merger of the two companies.

Telecom shares spring to life

Shares of most telecom companies rose sharply on Monday as a consolidation has started in the telecom industry, with Idea Cellular confirming that it is in preliminary discussions with British telecom company Vodafone for a merger deal.
While Idea Cellular closed with a sharp gain of 25.90 per cent at Rs 97 on the BSE, the other telecom stocks also made handsome gains, as investors saw their depressed valuations as an opportunity to buy. But the gains for Idea came after a year of negative return of 25.73.

More consolidation on cards

The shake-up in the domestic telecom industry, triggered by the aggressive entry of Reliance Jio that offered free voice services for lifetime and data services for a limited period, is driving the industry down the consolidation path.
Telecom companies have come under increasing pressure after the entry of Reliance Jio, which has set off a price war that undermined industry revenue.

Sensex trips 35 points on profit-booking, global cues

The benchmark Sensex fell almost 35 points in early trade today as investors took profits from recent gainers amid mixed Asian cues.

Investors turned cautious ahead of the upcoming Budget on Wednesday. The 30-share barometer declined 34.71 points, or 0.12 per cent, to 27,847.75, with sectoral indices led by IT, metal, teck and auto trading in negative terrain.

The index had risen 847.96 points in the previous four sessions. The NSE Nifty too was quoting lower by 14.15 points, or 0.16 per cent, at 8,627.10.

Unilever sales hit by India note ban, Brazil weakness

Consumer goods maker Unilever reported lower-than-expected fourth-quarter sales on Thursday, blaming the Indian government's withdrawal of high-value notes and a weak economy in Brazil.
Those issues, the firm said, would continue to hurt results in the first part of the new year, helping to push the company's shares down 4.5 per cent, its worst day in nearly a year.

Moody's downgrades RCom credit rating to B2

Global rating agency Moody's has downgraded credit rating of telecom operator Reliance Communications (RCom) within high credit risk scale from B1 to B2 with negative outlook on account high debt to cash flow ratio of the company.

FMCG firms pin hopes on growth-oriented budget

Fast moving consumer goods (FMCG) companies are pinning their hopes on a growth-oriented budget to see a revival in consumer confidence and create demand in the market.
"We are expecting a growth-oriented budget with various stimuli to revive consumer confidence... Proactive reforms to stimulate demand by increasing the money in the hands of the emerging middle class and rural India, this will help bring FMCG growth back on track," Godrej Consumer Products MD Vivek Gambhir said.

Consumption stocks rally on robust Q3

After several weak quarters of earnings, the worm seems to be turning, thanks to the consumption theme in a country, which devours virtually 67 per cent of its gross domestic product (GDP).
Consumption stocks and companies have delivered sterling results, if the third quarter earnings are any indication.
These stocks fuelled a pre-budget rally on Wednesday on expectations of favourable announcements in the Union budget.
As their third quarter earnings demonstrate, demonetisation fears appear to have been set to rest for a number of them.