Sensex jumps 91 pts on macro data, earnings optimism

Benchmark Sensex built on gains to close at a fresh six-week high of 34,192.65 today on better-than-expected macro data and optimism ahead of the earnings season.

This was the seventh straight session of gains for the index, its longest winning streak since November 24 last year.

The 30-share BSE Sensex rose by 91.52 points to end at 34,192.65 after hitting a high of 34,313.14 and a low of 34,103.53.

This was its highest closing since February 27 when it had settled at 34,346.39 points.

Fitch flags governance issues at ICICI

Rating agency Fitch in a credit market commentary said allegations against ICICI Bank pose reputational  risks and it would take appropriate rating action if risks to bank’s reputation and financial profile were to rise considerably.

Lemon Tree rises 28% on market debut

Lemon Tree Hotels made a strong debut on the bourses on Monday, with its shares rising 27.86 per cent. After listing at a 10 per cent premium on both BSE and NSE at Rs 61.60 against the issue price of Rs 56, the shares touched an intra-day high of Rs 73.90. Finally, the Lemon Tree shares closed at 71.60, up 27.86 per cent, on both the bourses.

Early exit for Axis Bank’s Shikha

Indian women athletes are hogging the limelight at Commonwealth Games. For the leading ladies in the banking sector, it is disrepute. The board of private sector lender Axis Bank on Monday curtailed the fourth term of its CEO and MD Shikha Sharma to seven months. On other hand, the board of ICICI Bank is divided over whether to ask its CEO and MD Chanda Kochhar, facing allegations of impropriety, to step down. The Axis Bank board’s decision came following an unusual request from Sharma that she be relieved on December 2018, 29 months ahead of the scheduled term.

Two-wheeler loans grow 32% in 2017; Gujarat has highest NPAs

Two-wheeler loans witnessed an impressive 32 per cent growth in 2017 led by non-bank lenders, and Gujarat had the highest incidence of non-payments by borrowers. The Thane district, on northern fringe of the Mumbai metropolitan area, had the highest asset quality stress in the segment, the data said.

“The loan growth is led by non-bank lenders, which indicates a good showing by the captive non-bank finance companies promoted by the auto makers,” Kalpana Pandey, the managing director and chief executive for CRIF High Mark, said.

Smaller MFs grow faster than large funds in FY18

The mutual fund industry’s total asset under management (AUM) rose 26 per cent in FY17-18 to a new high of Rs 23.05 lakh crore. According to data released by the Association of Mutual Funds in India (Amfi) for 42 Sebi registered fund houses.

A rally in the equity market and an awareness campaign run by the Amfi saw 32 lakh new investors joining the mutual fund industry in FY18.

Equity, bond markets rally on new hopes

Equity and bond markets made a strong comeback on Thursday, as stocks rallied with US President’s office and US Federal Reserve trying to ease escalated trade tensions with China and the RBI’s dovish monetary policy statements led to a rally in the bond market. Equity market benchmarks Sensex and Nifty gained 1.75 per cent and 1.94 per cent, respectively, with financials contributing the most to index gains. The fall in bond yields led to a rally in the shares of banks and non-banking finance companies (NBFCs).

Unpreparedness, incompatible formats force RBI to defer Ind-AS implementation

In a major relief to the banking sector, the Reserve Bank of India has deferred the adoption of Indian Accounting Standards (Ind-AS) by banks, for a year on account of incompatible formats and unpreparedness of banks.

In fact, scheduled commercial banks (SCBs), excluding regional rural banks (RRBs), are required to implement Ind AS from April 1, 2018.

The format of financial statements as prescribed under Schedule 3 of Banking Regulation Act is not compatible with the reporting standards under Ind-AS, said  RBI deputy governor NS Vishwanathan.

Michael Patra lone dissenter in favour of rate hike

The MPC voted 5-1 in favour of leaving the repo rate at 6 per cent, in line with consensus. As in the February policy review, the lone dissenter this time too was Michael Patra, executive director at RBI, who voted for a 25 basis points hike.