Nifty, Sensex must stay above Tuesday’s low for the uptrend to continue – Tuesday closing report-The Total Investment & Insurance Solutions

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4 July 2017

I had mentioned in Monday’s closing report that Nifty, Sensex were on an uptrend. The major indices of the Indian stock markets were range-bound on Tuesday and closed flat. The trends of the major indices in the course of Tuesday’s trading are given in the table below: The Total Investment & Insurance Solutions

 

Major Indices (The Total Investment & Insurance Solutions)

Broadly negative global cues and selling pressure in automobile, healthcare and FMCG (fast moving consumer goods) stocks dampened investors' sentiments. On the NSE, there were 699 advances, 780 declines and 63 unchanged. There is market resistance when the indices try to fall lower and so the medium trend of the market is bullish.

As India shifts to a cashless economy, cyber-threats are at a new high with the number of such incidents occurring in banking systems increasing in the last five years, a study here said on Tuesday. The joint study by Assocham and PwC said that an ATM card hack hit the Indian banks in October last year, affecting around 3.2 million debit cards. "Hence, efforts are needed to enhance cyber security as businesses and citizens embrace this new digital wave," the study noted. The Total Investment & Insurance Solutions

Central Bank of India's shareholders have approved a proposal to raise Rs6,500 crore through follow-on public offer (FPO), rights issue and qualified institutional placement (QIP). The state-owned lender on Monday said its shareholders approved the company's capital raising plans at the annual general meeting (AGM) held on June 30 at Mumbai. Central Bank shares closed at Rs87.10, down 0.23% on the BSE. The Total Investment & Insurance Solutions

The Delhi High Court on Monday asked budget carrier SpiceJet to pay Rs250 crore as cash deposit and Rs229 crore in bank guarantee in connection with a share transfer dispute with previous owner Kalanithi Maran. A division bench of Justice S. Ravindra Bhat and Justice Yogesh Khanna, while dismissing the plea of SpiceJet and its co-founder Ajay Singh against a single judge order directing it to deposit Rs579 crore in share dispute with Maran, asked them to pay the money. SpiceJet was asked to deposit Rs250 crore in cash by August 31. This is one more blow to the ailing aviation sector after Kingfisher Airlines collapsed a few years ago. The airlines’ shares closed at Rs126.80, down 1.48% on the BSE.

Leading footwear brand Khadim India on Monday said it has filed a Draft Red Herring Prospectus (DRHP) with market regulator SEBI for its initial public offering (IPO). According to the company, the IPO will comprise of a fresh issue aggregating up to Rs500 million and an offer for sale of up to 6,574,093 equity shares by the "selling shareholders". "The equity shares will have a face value of Rs10 each. The issue will be on book-building basis and the price band decided later," the company said in a statement. "The net proceeds from the fresh issue are proposed to be utilised towards prepayment or scheduled repayment of all or a portion of term loans and working capital facilities availed by the company and for general corporate purposes." As of March 31, the company operated 829 'Khadim's' branded exclusive retail stores across 23 states and one union territory in India, through their retail business vertical. In a range-bound stock market, with the indices often closing flat, IPOs of companies with good financial results are likely to do well. The Total Investment & Insurance Solutions

While petroleum is yet to come under the GST, petrol prices per litre have decreased by Rs2.35, and of diesel by Rs1.02, ever since the daily revision in rates was implemented throughout the country from June 16. On that day, petrol cost Rs65.48 a litre in Delhi, while diesel sold for Rs54.49 per litre. Prices vary at locations according to state taxes. The Goods and Services Tax (GST), which rolled out pan-India, except in Jammu and Kashmir, from July 1 is a unified national tax subsuming the earlier myriad central and state levies and the petroleum industry has been demanding inclusion in the new regime so as not to lose the benefit of input tax refund available under the GST. Indian Oil Corporation shares closed at Rs382.15, down 1.18% on the BSE. The Total Investment & Insurance Solutions

The top gainers and top losers of the major indices are given in the table below:

Top Gainer (The Total Investment & Insurance Solutions)

The closing values of the major Asian indices are given in the table below: The Total Investment & Insurance Solutions

Asian Indices (The Total Investment & Insurance Solutions)

RBI to allow higher foreign investment in government securities -The Total Investment & Insurance Solutions

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4 July 2017

The Reserve Bank of India (RBI) on Monday said that it has decided to enhance the foreign investment limit in central government securities from July 4. The Total Investment & Insurance Solutions

According to the Reserve Bank, the total long- and short-term investment limit will be enhanced to Rs 2,420 billion from the current Rs 2,310 billion. The Total Investment & Insurance Solutions

"The limits for investment by FPIs (Foreign Portfolio Investors) in central government securities and state development loans (SDLs) for the quarter July-September 2017 are increased by Rs 110 billion and Rs 61 billion, respectively," a notification issued by the RBI said.

"The revised limits will be effective from July 4, 2017."The Total Investment & Insurance Solutions

Price glitch leaves tech giants stocks fixed at USD123.47-The Total Investment & Insurance Solutions

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4 July 2017

In after-hours trading on the eve of the US Independence Day, a stock market data error set major tech companies like Apple, Google and Amazon listed on the Nasdaq exchange to the same share price of $123.47 late on Monday, that saw Amazon going down 87% and Facebook game maker Zynga up a massive 3,292%. The Total Investment & Insurance Solutions

As a result of the glitch, which Nasdaq said was caused by "faulty test data being improperly disseminated by third-party vendors", several stocks briefly showed their price to be USD123.47. The Total Investment & Insurance Solutions

Prices on Nasdaq's official website appeared unaltered but the issue was replicated across financial data services including Bloomberg, Thomson Reuters, Google Finance and Yahoo Finance which displayed the incorrect price change, Financial Times reported on Tuesday.

The glitch made Apple appear down by 14.3%. The Total Investment & Insurance Solutions

Nasdaq said the glitch did not affect any market trading, including after hours. 

However, traders in Hong Kong were quoted as saying they saw a handful of trades reported at those prices, although many deals were subsequently cancelled.

At the USD123.47 price, Microsoft jumped 79.1%, which would value the company at nearly USD1 trillion. The Total Investment & Insurance Solutions

For tech giant Amazon which had an opening price of USD972.79 a share, the error had a catastrophic effect on the appearance of its market cap while other companies like struggling Facebook game maker Zynga saw their stock price soaring by a massive 3,292%. 

If the declines had actually occurred, it would have knocked USD104 billion off the market value of Apple, the world's most valuable stock. Amazon's market cap would have dropped USD396 billion, the report added. The Total Investment & Insurance Solutions

In a statement to the Financial Times, Nasdaq said the culprit was "improper use of test data" that was picked up by third party financial data providers. The exchange said it was "working with third party vendors to resolve this matter."The Total Investment & Insurance Solutions

Central Bank shareholders okay plan to raise Rs 6,500 crore-The Total Investment & Insurance Solutions

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4 July 2017

Central Bank of India's shareholders have approved a proposal to raise Rs 6,500 crore through follow-on public offer (FPO), rights issue and qualified institutional placement (QIP). The Total Investment & Insurance Solutions

The state-owned lender on Monday said its shareholders approved the company's capital raising plans at the annual general meeting (AGM) held on June 30 at Mumbai.The Total Investment & Insurance Solutions

Aussie Shares Outperform As US Holiday Drains Trading-The Total Investment & Insurance Solutions

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4 July 2017

Hong Cong stock markets (The Total Investment & Insurance Solutions)

Australian shares were the standout performers Tuesday as the central bank kept rates unchanged and signaled they wouldn't be raised soon. Elsewhere, trading was subdued not least because Wall Street is off for U.S. Independence Day and unease over North Korea's latest missile launch.

KEEPING SCORE: In Europe, France's CAC 40 was down 0.2 percent at 5,198 while Germany's DAX fell 0.1 percent to 12,459. Britain's FTSE 100 was steady at 7,377.

DECISION DOWN UNDER: Officials at the Reserve Bank of Australia kept interest rates unchanged at 1.5 percent following a monthly policy board meeting, saying it was the right level for sustainable economic growth and to hit inflation targets. More importantly, they indicated they wouldn't follow counterparts in the U.S., Britain, Europe and Canada who have started raising rates, or are considering doing so. The surprisingly neutral stance of the RBA was felt across markets. The Australian dollar fell 0.7 percent to $0.7607 as traders priced in a lower rate profile going out, but that helped stocks, and the country's main S&P/ASX index surged 1.8 percent to close at 5,783.80.

ANALYST TAKE: "Expectations that the RBA would adopt a more hawkish rhetoric were misplaced," said Lee Hardman, currency analyst at Bank of Tokyo-Mitsubishi UFJ.

ASIAN SCORECARD: Elsewhere in Asia, Japan's benchmark Nikkei 225 index shed 0.1 percent to 20,032.35. South Korea's Kospi declined 0.6 percent to 2,380.52 and Hong Kong's Hang Seng slumped 1.5 percent to 25,389.01. The Shanghai Composite Index lost 0.4 percent to 3,182.80. Benchmarks in Taiwan and Southeast Asia also lost ground. The Total Investment & Insurance Solutions

ROCKET LAUNCH: Shares in Seoul wobbled briefly after first reports that Pyongyang fired yet another ballistic missile toward Japan. Stocks resumed sliding as more details came in. North Korean state media said it was the country's first successful test of an intercontinental ballistic missile, flying 933 kilometers (580 miles) for 39 minutes before falling into the sea.

ENERGY: Oil's rally fizzled. Benchmark U.S. crude lost 10 cents to $46.97 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, fell 21 cents to $49.47 a barrel in London. The Total Investment & Insurance Solutions

CURRENCIES: The euro was down 0.1 percent at $1.1351 while the dollar fell 0.2 percent to 113.25 yen.The Total Investment & Insurance Solutions

Nifty, Sensex on an uptrend – Monday closing report-The Total Investment & Insurance Solutions

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3 July 2017

I had mentioned in Friday’s closing report that Nifty, Sensex might bounce back a bit. The major indices of the Indian stock markets rallied on Monday and closed with gains of close to 1% over Friday’s close. The trends of the major indices in the course of Monday’s trading are given in the table below: The Total Investment & Insurance Solutions

 

Major Indices (The Total Investment & Insurance Solutions)

The Indian equity markets traded with substantial gains during the mid-afternoon session on Monday, following the launch of the country's biggest indirect tax reform -- the Goods and Services Tax (GST) -- at the start of July 1. According to market observers, investors' sentiments were also buoyed by positive global cues and buying in FMCG (fast moving consumer goods), automobile and consumer durables stocks. Equity benchmarks started off the week on a strong note. Asian markets traded in the positive zone following positive US market closing. The mid-cap and small-cap indices traded in the green with small-cap trading well over 0.90% while mid-cap traded above 0.78%. Top gainers in the NSE were ITC, Infratel, Hindalco and VEDL while top losers were NTPC, Wipro, HCL Tech and Sun Pharma. Stocks of FMCG rose to hit a record high on Monday, with ITC, which is the largest contributor to the index, witnessing the highest momentum. The Total Investment & Insurance Solutions

Commercial vehicles maker Ashok Leyland on Monday said it closed June with 11 per cent growth in sales volume. In a statement issued here, Ashok Leyland said it sold 12,330 units last month up from 11,108 units sold during June 2016. During the first three months of this fiscal year, the company has sold 28,495 units down from 31,165 units sold during the corresponding period of the previous year. Ashok Leyland shares closed at Rs100.25, up 6.82% on the BSE.

The All India Petroleum Dealers' Association has (AIPDA) called a nationwide petrol pump strike on July 12, protesting against the oil marketing companies' failure to install 100% automated system at the pumps and lack of transparency in the daily dynamic pricing mode. The daily dynamic pricing mode has been started from June 16. "Our national body AIPDA has called the nationwide strike on July 12. Ahead of that, we won't purchase any oil on July 5 as a mark of protest," West Bengal Petroleum Dealers' Association President Tushar Sen said. He said after the introduction of the dynamic pricing system, petroleum prices have been on a downslide. "But we are totally in the dark about the process. Small dealers are facing crisis". In West Bengal and other states, the automated system has been installed in only one percent of the petrol pumps, Sen said. "The oil marketing companies were supposed to install 100% automated system at the pumps. The Total Investment & Insurance Solutions

Two- and three-wheeler maker TVS Motor Co on Monday said it closed the June sales book with 11% volume growth. The company said in a statement that it sold 273,791 units in June, up from 247,364 in June 2016. During the period under review, the company sold 268,638 two-wheelers and 5,173 three-wheelers as against 240,236 two-wheelers and 7,128 three-wheelers sold during June last year. During the first quarter of the current financial year, two-wheeler sales grew by 12%, increasing from 7.01 lakh units in the first quarter of 2016 to 7.85 lakh units in the first quarter of 2017. Sales of three-wheelers remained at the same level as that of the corresponding quarter of 2016 at 0.17 lakh units. The Total Investment & Insurance Solutions

Infosys Ltd has appointed D. Sundaram as an independent director on its board, the software major announced on Saturday. A fellow of the Institute of Cost and Management Accountants, the Mr Sundaram was the Vice-Chairman of Hindustan Unilever Ltd, which he joined in 1975. Infosys shares closed at Rs951.40, up 1.68% on the BSE.

The top gainers and top losers of the major indices are given in the table below:

 

Top Gainer (The Total Investment & Insurance Solutions)

The closing values of the major Asian indices are given in the table below: The Total Investment & Insurance Solutions

Asian Indices (The Total Investment & Insurance Solutions)

India's manufacturing sector expansion slows in June: PMI-The Total Investment & Insurance Solutions

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3 July 2017

India's manufacturing sector's expansion slowed last month due to weak demand, a key macro-economic data showed on Monday. The Total Investment & Insurance Solutions

The Nikkei India Manufacturing Purchasing Managers' Index (PMI), which is a composite indicator of manufacturing performance stood at a four-month low of 50.9 in June from the index reading of 51.6 reported in May 2017. The Total Investment & Insurance Solutions

Nevertheless, the headline figure averaged 51.7 during the April to June quarter, above the 51.2 seen in fourth quarter FY 2016. The Total Investment & Insurance Solutions

An index reading of above 50 indicates an overall increase in economic activity, and below 50 an overall decrease. The Total Investment & Insurance Solutions

"For the third month in a row production growth in India eased during June. The slowdown occurred due to weak client demand, with order books up at a slight and softer pace," said Pollyanna De Lima, economist at IHS Markit and the author of the report.

"In many cases, businesses indicated that growth was held back as a reflection of water scarcity and the impending introduction of the goods and services tax (GST)."

According to the report, input costs continued to increase, with "anecdotal evidence" pointing towards higher prices of chemicals, food, plastics and rubber. 

However, the rate of inflation was modest and the weakest since August 2016. Likewise, output charges rose only slightly and at a below-trend pace. 

"On a more cheerful pitch, the PMI survey showed strong foreign demand for Indian-manufactured products in June. New orders from external markets increased at a solid rate that was the most pronounced in eight months," De Lima said.

"Confidence towards future performance was mixed among goods producers. While the new tax system is anticipated by some firms to generate more business, others expect the GST to have a detrimental impact on their order books. As such, overall optimism slipped to a three-month low." The Total Investment & Insurance Solutions

Over 90% Indian customers still prefer branch over online banking: Report-The Total Investment & Insurance Solutions

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3 July 2017

While the government has been pushing people to go online when it comes to banking, the branch still continues to dominate banking channels in India, with 94 per cent of retail banking customers having visited the branch/store at least once in the past 12 months, a new study revealed on Monday. The Total Investment & Insurance Solutions

According to the 2017 Oracle J.D. Power India 'Retail Banking Study,' despite the impetus provided by demonetisation, digital banking is not yet a pervasive experience in India. 

"Most banking relationships still begin and continue at the branch. However, there is great potential for banks to move more into the digital space. Only 51 per cent of retail banking customers have a reliable online banking experience with their main financial institution," said Gordon Shields, senior director, J.D. Power, a US-based global marketing information services firm. The Total Investment & Insurance Solutions

The results was based on in-person interviews with 5,368 retail banking customers conducted between February and April 2017 across 14 states and included both private and public banks.

"In fact, overall customer satisfaction with banking in India is lagging significantly behind other key markets at 672 index points, compared to the industry average score reported in other J.D. Power studies in China (806), the USA (793) and Australia (748)," Shields added.

The study measured overall satisfaction in five factors: account activities (39 per cent); account information (18 per cent); facility (17 per cent); product offerings (14 per cent) and fees (12 per cent). The Total Investment & Insurance Solutions

While overall customer satisfaction with mobile banking is markedly higher (693) than with In-Person Branch interaction (676), only 9 per cent of India retail banking customers use mobile banking for everyday transactions. The Total Investment & Insurance Solutions

"Among the 48 per cent of customers who have yet to download a banking app, one-fourth state lack of security is a key reason for non-usage," Shields noted. 

Nearly three-fourths (73 per cent) of customers believe their financial needs were not fully understood before they were offered new products, with only 7 per cent having had fees and pricing of products explained. The Total Investment & Insurance Solutions

"As India embarks on its digitisation agenda, results on ground exhibit a contrary reality," said Kiran Kumar Kesavarapu, APAC leader, industry innovation advisors-financial services Oracle. 

"We believe the issue lies in customer engagement models that Indian banks employ today and related security uncertainties when transacting online. This can be addressed easily and quickly," Kesavarapu added. The Total Investment & Insurance Solutions

Private banks outperformed public banks and were rated higher in overall satisfaction (680) than public banks (666). The Total Investment & Insurance Solutions

Private banking customers are more likely to recommend their bank to friends and relatives (89 per cent) than public banks (86 per cent).The Total Investment & Insurance Solutions

Eurozone Unemployment Rate Remains At 8-Year Low-The Total Investment & Insurance Solutions

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3 July 2017

Eurozone (The Total Investment & Insurance Solutions)

Official figures show that unemployment across the 19-country eurozone remained at an eight-year low in May. The Total Investment & Insurance Solutions

Eurostat said Monday that the unemployment rate was unchanged at 9.3 percent. That's the lowest since March 2009, when unemployment was rising markedly following the global financial crisis.

Over the month, the statistics agency said the number of people out of work fell by a modest 5,000 to 15.03 million. The Total Investment & Insurance Solutions

Hopes are high that the falling trend across the eurozone will accelerate in the months to come as the region's economic growth appears to have picked up speed.

The figures mask huge disparities across the region, but even in those countries where unemployment has been highest, notably Greece and Spain, there is an improving trend.The Total Investment & Insurance Solutions

Global Stocks Gain On Manufacturing Data, Head Of US Holiday-The Total Investment & Insurance Solutions

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3 July 2017

Global stock markets (The Total Investment & Insurance Solutions)

Global stock markets rose Monday after a survey showed Japan's manufacturing outlook improving and as oil prices continued to recover from a recent slide. Trading was thin, however, due to a holiday in the U.S. on Tuesday. The Total Investment & Insurance Solutions

KEEPING SCORE: France's CAC-40 gained 1 percent to 5,172 and Germany's DAX added 0.6 percent to 12,395. London's FTSE 100 advanced 0.3 percent to 7,334. On Wall Street, futures for the Dow Jones industrial average and the Standard & Poor's 500 index were both up 0.3 percent.

MANUFACTURING: The Japanese central bank's Tankan survey of large manufacturers found they believe business conditions are improving and plan to increase investment as export demand recovers. A separate survey of factory purchasing managers also indicated the outlook improved in June for the 10th straight month. A similar report on the U.S. manufacturing sector is due later in the day and will be monitored by investors gauging the government's success in boosting the industrial sector.

ANALYST'S TAKE: The Tankan "yielded surprisingly positive results," said Jingyi Pan of IG. "Both large manufacturers' index and outlook had surprised on the upside."

ASIA'S DAY: The Shanghai Composite Index rose 0.1 percent to 3,195.91 and Tokyo's Nikkei 225 added 0.1 percent to 20,055.80. Hong Kong's Hang Seng was unchanged at 25,776.71 and Sydney's S&P-ASX 200 shed 0.6 percent to 5,684.50. Seoul's Kospi added 0.1 percent to 2,394.48 and India's Sensex gained 0.8 percent to 31,167.18. Benchmarks in Taiwan, Bangkok and Manila gained while New Zealand and Singapore fell. The Total Investment & Insurance Solutions

KOREAN EXPORTS: Exports in June rose but the gains were overshadowed by President Donald Trump's demand to renegotiate a 2012 trade agreement. Exports increased by 13.7 percent over a year earlier, driven by sales of electronics and ships. Growth was faster than May but below forecasts. The trade surplus widened to $11.4 billion. Korean analysts warn, however, that the trade outlook is clouded by Trump's demand Friday during a visit to Washington by his Korean counterpart, Moon Jae-in, for changes to a trade agreement that he said would be aimed at narrowing the U.S. trade deficit with South Korea. The Total Investment & Insurance Solutions

ENERGY: Benchmark U.S. crude gained 15 cents to $46.19 per barrel in electronic trading on the New York Mercantile Exchange. The contract soared $1.11 on Friday. Brent crude, used to price international oils, rose 11 cents to $48.88 in London. It jumped $1.14 the previous session.

CURRENCY: The dollar rose to 112.98 yen from Friday's 112.34 yen. The euro declined to $1.1367 from $1.1427.The Total Investment & Insurance Solutions