Companies and Markets

Companies & Markets

Baton for driving economy has passed from RBI to govt

A significant portion of monetary accommodation which began in January 2015 seems to be now coming to a close. The RBI in the past two years has cut policy repo rate by 175 bps, while the liquidity stance also witnessed a regime shift in early 2016 when RBI, in its annual policy, transitioned from a deficit liquidity stance to a neutral liquidity stance. This was an indication that the central bank was comfortable with neutral to surplus liquidity situation, as monetary transmission was expected to be achieved without a deficit scenario.

2017: A Year of Uncertainties for Equity Market

Markets are expected to move in a narrow range during 2017, with a perceptible recovery seen towards the latter part of the year. Unless the Union Budget surprises very positively through a tax-induced fiscal stimulus, the markets are likely to mirror the movement seen over past three months with foreign institutional investors (FIIs) continuing to stay on the sidelines while locals provide buying support.

Sensex regains 27,000-mark, Nifty tops 8,300

Sensex surged over 151 points to breach the 27,000-level and Nifty hit the crucial 8,300-mark in opening trade today following widespread gains as investors widened their bets amid a firming trend in Asian markets.

However, caution prevailed ahead of macroeconomic data and quarterly earnings from blue-chip companies.

The 30-share index, which gained 173.01 points in the previous session, added 151.01 points, or 0.56 per cent, to 27,050.57 with all the sectoral indices led by metal, capital goods and bank leading the gains.

Srei Sahaj looking for PE investors to dilute stake

Sahaj e-Village, a Srei Initiative and a business integrator in the field of IT infrastructure with a focus on rural India, is scouting for a strategic investor, mostly private equity (PE) investors against dilution of promoters’ stake. It, however, refuses to divulge the names of the possible strategic investors.

PSUs eye EPFO funds

Under the government pressure to step up capital spending, PSUs are eyeing investments from EPFO, wh­ich is sitting on a huge ca­sh pile, to fund projects.
It being a pension fund, EPFO invests its corpus in long-term funds like state and central government bo­n­ds. PSUs too need such funding to implement their infrastructure projects, whi­ch have mostly longer pay back period.

Auto sales plunge most in 16 years

Demonetisation has hit the Indian automobile industry, the fifth largest in the world, hard with monthly automobile sales plummeting to its lowest in 16 years in December, as total vehicles sales in the country fell a whopping 18.66 per cent.
Most of the major automobile segments such as scooters, motorcycles and cars saw record fall in Dece­mber sales as the auto sector continued to bear the brunt of negative sentiments in the wake of ban on Rs 500 and Rs 1,000 notes announced by PM Narendra Modi on November 8 last year.

House buys fall to lowest in six years

The story with the real estate sector, post the note-ban, appears grim. On a day when ratings agency Fitch revised down its GDP growth forecast for the financial year ending March 31 (FY17) to 6.9 per cent from 7.4 per cent in the wake of the demonetisation drive, leading real estate consultancy firm Knight Frank said that demonetisation had delivered a body blow to the real estate sector.

Strong MF inflows in December kept equity market stable

Investment by mutual funds in December backed by strong inflows from the retail investors helped equity market remain stable even as foreign investors turned net sellers.
Robust inflows in equity mutual funds helped asset management companies to invest Rs 9,178 crore in equities in December, according to data from the Securities and Exchange Board of India.
In contrast, in December, foreign portfolio investors were net sellers in equities by Rs 8,176 crore, as per NSDL data.

Wanted Money & Confidence

The enactment of the Real Estate Regulatory Act (RERA) and the November 8 demonetisation have been extremely disruptive for the real estate sector. The Centre has already expressed its vision of Housing for All by 2022. If this is to become a reality, it will need to give a huge stimulus for the real estate sector so that homes become more affordable and get produced much faster than now to meet the vision objectives.