Nifty, Sensex still under pressure – Tuesday closing report-The Total Investment & Insurance Solutions

Contact Your Financial Adviser Money Making MC

http://moneymakingaimsee.blogspot.in
https://www.facebook.com/moneymakingmc

19 February 2019

I had mentioned in Monday’s closing report that Nifty, Sensex were looking weak. The major indices of the Indian stock markets were range-bound on Tuesday and closed with losses over Monday’s close. On the NSE, there were 992 advances, 705 declines and 366 unchanged. The major trends of the Indian stock markets during Tuesday’s trading are given in the table below:

  

The Sensex advanced on Tuesday a few points, as it opened higher with key banking and finance sectors gaining. All the sectors on the NSE traded in green, as well, except for IT (information technology), Pharma and Media stocks as the Indian rupee slid against the US dollar on Tuesday. On Monday, foreign institutional investors (FIIs) were net sellers and the domestic institutional investors (DIIs) were net buyers. FIIs sold stocks worth Rs1,239.79 crore while the DIIs bought stocks to the tune of Rs2,336.74 crore.

The Emami Group's stocks rose sharply by over 14% on Tuesday after the group promoters sold their 10% stake in Emami Limited, raising about Rs1,600 crore to reduce debts. After the sale, the promoters' holding in the company stood at 62.74%. The transaction was executed on the stock exchange on Monday and purchasers included SBI Mutual Fund, PremjiInvest, Amundi, IDFC, L&T Mutual Fund and Pioneer Investment. "The stake sale proceeds will reduce promoter debt, which was used in creation of assets like cement and solar power," the company said. Commenting on the divestment, Director of Emami Limited Mohan Goenka said: "We have concluded a stake sale which will ease the liquidity position of the promoter group and reduce the debt." He also said the promoters are committed to maintaining their significant majority stake in the company and "do not anticipate any further dilution of stake in the foreseeable future". Emami shares closed at Rs407.50, up 12.58% on the NSE.

The government has decided to give a push to its strategic disinvestment plan within the current fiscal year itself by clearing sale of 100% stake in three special steel producing units of Steel Authority of India Ltd. (SAIL), including Salem Steel and Alloy Steel Plant. Sources said that the Prime Minister's Office has accorded its approval to the sale and Department of Investment and Public Asset Management (DIPAM) will now start the process of appointment of transaction advisors to conclude the deal quickly. The three units of SAIL identified for strategic disinvestment includes Visveswaraya Iron and Steel Plant, Bhadravati, Karnataka, Salem Steel Plant, Tamil Nadu, and Alloy Steel Plant, Durgapur, West Bengal. All these units of the steel giant have been consistently making losses and sale has been considered the best option. The disinvestment of these units will be to strategic buyers to be identified through a two-stage auction process. Sources said that with the steel market on the upswing again, the units could realise good value. Companies like JSW Steel, Vedanta, Tata Steel, ArcelorMittal have been in a look-out for new assets. However, the likely amount to be mobilised could not immediately ascertained. Steel Authority of India shares closed at Rs46.15, up 3.94% on the NSE.

Massive turbulence continued to hit the Indian airline sector as even the formidable passenger carrier IndiGo now faces headwinds of pilot shortage leading to a truncated flight schedule and consequently a dive in its stock price. Lately, the Indian airline sector has been hit by the double-whammy of high crude oil prices and low fares, leading players like Jet Airways either deep into red or asset restructuring programmes just to keep the company afloat. Interestingly, some industry insiders have termed IndiGo's case as unique, where the airline has over 200 pilots, commands the majority domestic market share but also faces shortage of pilots to maintain its schedule of over 1,300 flights a day. Since February 9-10, the airline has cancelled over 300 flights but this figure has been widely disputed by industry sources. InterGlobe Aviation shares closed at Rs1,102.50, down 0.33% on the NSE.

IT (information technology) major Infosys Ltd has paid Rs34 lakh to settle a case related to alleged lapses regarding a severance payment done in 2015, Securities and Exchange Board of India (SEBI) said in an order.

"The proposed adjudication proceedings for the defaults... are settled," the market regulator said in a settlement order dated February 15. "SEBI shall not initiate any enforcement action against the applicant for the said defaults," it added. SEBI, in 2017, had issued a notice seeking to initiate adjudication proceedings against the company. The notice was with regard to the examination in the scrip of Infosys. During the examination, SEBI probed the issues pertaining to severance payment made by Infosys to its former Chief Financial Officer Rajiv Bansal who had resigned from the company on October 11, 2015. "The examination prima facie revealed that the severance payment was not in accordance with the remuneration policy and the same was without the approval of the Nomination and Remuneration Committee," it said. Further, the payment had no prior approval of Audit Committee and the company failed to make detailed and timely disclosure of the severance agreement. Infosys shares closed at Rs724.00, down 2.30% on the NSE.

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

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

Major Indices (The Total Investment & Insurance Solutions)

Data not cooked up, GDP figures to go up further: Government -The Total Investment & Insurance Solutions

Contact Your Financial Adviser Money Making MC

http://moneymkingaimsee.blogspot.in
https://www.facebook.com/moneymakingmc

19 February 2019

 

GDP (The Total Investment & Insurance Solutions)

Refuting charges of destroying the credibility of Indian data, the government said the revised GDP figures for demonetisation year was not cooked up and, in fact, the growth rates are likely to go up further due to the GST. "It's not cooked up at all. It's data driven and real.

 Nobody has manipulated it. It's possible that sometimes anecdotally it may appear to be an un-understadable kind of result because of the quirkiness in data which takes place on account of abnormal events like demonetisation," Economic Affairs Secretary Subhash Chandra Garg told. On January 31, the government revised the Gross Domestic Product (GDP) growth rates by 110 basis points from 7.1 per cent to 8.2 per cent for 2016-17, the year of demonetisation, and by 50 basis points from 6.7 per cent to 7.2 per cent for fiscal 2017-18. Garg said the growth was reflected mainly in two sectors, construction and financial services, and was absent in sectors like manufacturing and mining when the figures were revised.

 This was primarily because demonetisation helped the two sectors directly. "In financial services, the growth is calculated based on several parameters like deposits and many other. Likewise, construction activity went up at that time. There were several incentives which were in place for taking construction activity. The Construction activity actually went up. "It's possible that the growth is not reflected in other areas well. There's no growth revision in manufacturing. There's no growth revision in mining. It's possible that it may be quirky but it's possible," Garg said, explaining the positive impact of demonetisation on economy

Apart from defending the possibility of demonetisation jacking up GDP rates, NITI AayogVice Chairman Rajiv Kumar went a step further to suggest that the growth rates will see another revision upwards for the years since Goods and Services Tax (GST) was rolled in. "By the way, this (upward revision) will happen more with the implementation of GST as there are many sectors that have never given tax. Now they will come inside GST. This will increase further. Manufacturing will grow as more of the unorganised sector gets formalised. "Revised figures can show the increase for the years since GST has been 2017-18 and 2018-19. I will not be surprised at all. 

Thousands of garment makers never gave any tax, now they are doing. Suddenly, you see garment industry larger than what it was," Kumar told IANS. On demonetisation, he said when nearly half of the economy that was running in black and is now included in the formal economy, it had to show the impact. When people decide to bring out their cash, show it as income and pay tax, it suddenly bumps up the activity, he said. Though the government defends the recent revision of GDP figures along with the new back series of GDP data released last November, which trimmed growth rates in UPA era making Modi government look better in terms of growth, it rejected the recent data on jobs. On January 31, the government rejected the leaked National Statistical Commission (NSC) report that showed unemployment rate at a 45-year high saying it was not finalised leading to a major backlash from the Opposition with charges of manipulating data. "Ours is not a command economy, we don't produce data on orders. 

Ours is a decentralised and democratic management system. There are institutions which prepare and publish the data that is there... the credibility of Indian data remains very high," Kumar said. However, on the allegations that NITI Aayog, which in the words of former Finance Minister Yashwant Sinha "has nothing to do with data and statistics", got involved, manipulated and revised the figures, Kumar said the Aayog will continue to engage in data. "NITI Aayog by its very nature must be engaged in improving the statistical system of India. I consider it my duty to make sure our Indian fiscal system is modernised, strengthened and remains as credible as ever. To that extent, NITI Aayog being the think tank that uses data for evidence-based enquiry and policy making will continue to be involved in data," he stated. He, however, said the Aayog will never think of usurping whatever the Central Statistics Office (CSO) and the Ministry of Statistics and Programme Implementation (MoSPI) does but will remain interested in working with MoSPI to help it evolve so that the quality of data collected is improved and is in sync with each other. The Total Investment & Insurance Solutions

Government approves new national electronics policy eyeing 1 crore jobs -The Total Investment & Insurance Solutions

Contact Your Financial Adviser Money Making MC

http://moneymakingaimsee.blogspot.in
https://www.facebook.com/moneymakingmc

19 February 2019

Job (The Total Investment & Insurance Solutions)

The Cabinet on Tuesday approved a new electronics policy which aims to create a USD 400 billion electronic manufacturing ecosystem by 2025 and generate 1 crore jobsin the country. "We are targeting USD 400 billion (ecosystem) by 2025. It will give jobs to 1 crore people," Law and IT minister Ravi Shankar Prasad said after the Cabinet meeting.

The National Electronics Policy 2019 proposes to boost mobile manufacturing in the country to 1 billion units worth USD 190 billion (about Rs 13 lakh crore) of which 600 million units worth USD 110 billion (about Rs 7 lakh crore) will be exported from the country. Under the policy, the government aims to push manufacturing of strategic electronics required by defence and other strategic sector in the country. The first electronics policy came in 2012.The Total Investment & Insurance Solutions

WTO warns of global trade slowdown as indicator hits nine-year low-The Total Investment & Insurance Solutions

Contact Your Financial Adviser Money Making MC

http://moneymakingaimsee.blogspot.in
https://www.facebook.com/moneymakingmc

19 February 2019

WTO (The Total Investment & Insurance Solutions)

A quarterly leading indicator of world merchandistrade slumped to its lowest reading in nine years on Tuesday, which should put policymakers on guard for a sharper slowdown if trade tensions continue, the World Trade Organization said on Tuesday.

The WTO’s quarterly outlook indicator, a composite of seven drivers of trade, showed a reading of 96.3, the weakest since March 2010 and down from 98.6 in November. A reading below 100 signals below-trend growth in trade.

“This sustained loss of momentum highlights the urgency of reducing trade tensions, which together with continued political risks and financial volatility could foreshadow a broader economic downturn,” the WTO said in a statement.

The WTO forecast last September that global trade growth would slow to 3.7 percent in 2019 from an estimated 3.9 percent in 2018, but there could be a steeper slowdown or a rebound depending on policy steps, it said.

The quarterly indicator is based on merchandise trade volume in the previous quarter, export orders, international air freight, container port throughput, car production and sales, electronic components and agricultural raw materials.

“Indices for export orders (95.3), international air freight (96.8), automobile production and sales (92.5), electronic components (88.7) and agricultural raw materials (94.3) have shown the strongest deviations from trend, approaching or surpassing previous lows since the financial crisis,” the WTO said.

The index for container port throughput remained relatively buoyant at 100.3, but that may have been influenced by a front-loading of shipments before an anticipated hike in U.S.-China tariffs, the WTO said.

International trade tensions could spike next month if the United States and China escalate their tariff war, a step that could have negative consequences for the world trading system, according to the United Nations trade agency UNCTAD.

A new round of U.S.-China talks will take place in Washington on Tuesday, with follow-up sessions at a higher level later in the week, the White House said on Monday, following a round in Beijing last week.The Total Investment & Insurance Solutions

World Stocks Turn Lower Ahead Of More China-US Trade Talks-The Total Investment & Insurance Solutions

Contact Your Financial Adviser Money Making MC

http://moneymakingaimsee.blogspot.in
https://www.facebook.com/moneymakingmc

19 February 2019

Financial Markets (The Total Investment & Insurance Solutions)

Stock mostly fell in Europe and Asia on Tuesday and U.S. markets looked set to open lower as Chinese and U.S. negotiators geared up for trade talks in Washington.

Germany's DAX fell 0.4 percent to 11,256 while the CAC 40 in France slipped 0.5 percent to 5,141. Britain's FTSE 100 sank 0.7 percent to 7,168.

With U.S. markets preparing to reopen after the President's Day holiday, the future contract for the Dow Jones Industrial Average lost 0.4 percent to 25,798 and that for the S&P 500 also slipped 0.3 percent to 2,767.

Vice Premier Liu He, China's economy czar, was due to arrive in Washington on Thursday, China's state media reported, after two days of preliminary talks by lower-level officials.

A truce between the U.S. and China on increased American tariffs on Chinese good expires March 2, leaving the U.S. free to more than double its import taxes on $200 billion in Chinese goods.

U.S. President Donald Trump has said he may hold off on these if the country was close to a deal with China.

Analysts said much is riding on the outcome of the trade talks after an inconclusive end to an earlier round in Beijing last week.

"Without sounding like a damp squib, there is now a vast amount of optimism baked into currency, stock and energy market prices globally and precisely zero concrete detail," Jeffrey Halley, senior market analyst for OANDA, said in a commentary.

"The unwind, should no deal be struck, could be very ugly," he said.

The U.S. is wrangling over trade with many nations. On Monday, the European Union warned that the bloc will hold back on a commitment to buy more American soybeans and liquefied gas if European cars are hit with punitive tariffs.

ASIA'S DAY: The Shanghai Composite index edged 0.1 percent higher to 2,755.65, while Japan's Nikkei 225 edged 0.1 percent higher to 21,302.65. Australia's S&P ASX 200 climbed 0.3 percent to 6,106.90 and the Hang Seng in Hong Kong gave up 0.4 percent to 28,228.13. South Korea's Kospi lost 0.2 percent to 2,205.63. Shares were mostly higher in Southeast Asia.

CHINA AUTO SALES: China's auto sales fell for an eighth month in January, extending a painful decline for the biggest global market as demand cooled amid a slowing economy and tariffs standoff with the U.S. Purchases of sedans, SUVs and minivans fell 15 percent from a year earlier to just over 2 million vehicles, according to an industry group, the China Association of Automobile Manufacturers.

ENERGY: U.S. crude added 48 cents to $56.07 per barrel in electronic trading on the New York Mercantile Exchange. It gained $1.19 on Monday. Brent crude, used to price international oils, lost 16 cents to $66.34 per barrel.

CURRENCIES: The dollar strengthened to 110.77 yen from 110.60 yen on Monday. The euro slipped to $1.1280 from $1.1309.The Total Investment & Insurance Solutions

Nifty, Sensex Looking Weak - Monday closing report-The Total Investment & Insurance Solutions

Contact Your Financial Adviser Money Making MC

http://moneymakingaimsee.blogspot.in
https://www.facebook.com/moneymakingmc

18 February 2019

The major indices of the Indian stock markets suffered a correction on Monday. On the NSE, there were 575 advances, 1,145 declines and 359 unchanged. The trends of the major indices in the course of Monday’s trading are given in the table below:

The Sensex and Nifty declined after opening on a flat note on Monday led by selling in auto, IT (information technology) and FMCG (fast moving consumer goods) stocks. On Friday, foreign institutional investors (FIIs) sold shares to the tune of Rs966.43 crore, while the domestic institutional investors (DIIs) bought Rs853.25 crore worth of scrips.

The Reserve Bank of India (RBI) may impose monetary penalty on Yes Bank for breaching the confidentiality norms of its communications exchange with the private bank which the central bank is said to be treating as a market-related information slip aimed at boosting the stock. Yes Bank made an exchange between it and the RBI public where it said that the central bank had not found any divergence in its non-performing asset recognition for 2017-18. Soon, after its stock soared and it attracted the attention of the apex bank, which in a first-of-its-kind criticism told Yes Bank that the risk assessment report was intended to a be a "confidential" document and that disclosures made by the lender was viewed by the regulator as a "deliberate attempt to mislead". Yes Bank shares closed at Rs214.00, down 2.28% on the NSE.

In a setback to Vedanta, the Supreme Court refused to order the re-opening of its Sterlite Copper Smelting plant located in Tamil Nadu as it set aside the National Green Tribunal's (NGT) December 15 order on the grounds of jurisdiction. Setting aside the NGT order on maintainability, a bench of Justice Rohinton Fali Nariman and Justice Vineet Saran asked Vedanta to approach the High Court and since the Thoothukudi plant has been locked up for quite some time, they could urge the High Court Chief Justice for an expeditious hearing and interim relief. The plant was shut down permanently on May 28, 2018, when the state government had ordered the Tamil Nadu Pollution Control Board (TNPCB) to seal and "permanently" close the plant in the wake of protests over pollution concerns. The protests had turned violent, resulting in the death of 13 people in police firing on May 22-23 in Tuticorin, officially called the Thoothukudi port city. The top court verdict came on the TNPCB's plea against the December 15, 2018, NGT order directing it to give its consent. The grant of consent by the state pollution control board was subject to the satisfaction of certain conditions by Vedanta.  The TNPCB had in the course of arguments asserted that the copper smelting plant was the cause of near irreversible ground water pollution and thus could not be allowed to resume operation. On the other hand, Vedanta had described as "political" the decision to put the plant under the lock. Vedanta had contended that the high level ground water pollution was not limited just to Thoothukudi alone, and that similar situation existed in other parts of the state. Vedanta shares closed at Rs147.95, up 0.44% on the NSE.

RInfra said that the Supreme Court has admitted a Special Leave Petition (SLP) filed by its subsidiary challenging a Delhi High Court order that set aside an over Rs5,800 crore arbitral award won by the RInfra minor against the Delhi Metro Rail Corporation (DMRC). In 2018, the High Court had directed the DMRC to take over the servicing of all debt liabilities of Delhi Airport Metro Express Pvt Ltd (DAMEPL). Reliance Infrastructure (RInfra) had said that 11 banks, who had lent to DAMEPL to run the Delhi Airport Metro Express line, would benefit from the High Court's order. Noting the apex court's entertaining the SLP, a RInfra release said a short notice was also issued to the DMRC on DAMEPL's plea for interim relief, so that the DMRC continued to service the debt of DAMEPL, pending the plea disposal by the apex court. "The Supreme Court has entertained the Special Leave Petition (SLP) filed by Reliance Infrastructure Ltd., SPV Delhi Airport Metro Express Pvt Ltd (DAMEPL) challenging the judgement of Division Bench of Delhi High Court, which set aside the over Rs5,800 crore arbitral award won by DAMEPL against DMRC," it said. Reliance Infrastructure shares closed at Rs122.70, up 6.74% on the NSE.

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

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

Major Indices (The Total Investment & Insurance Solutions)

RBI to pay Rs 28,000 crore as interim dividend to government-The Total Investment & Insurance Solutions

Contact Your Financial Adviser Money Making MC

http://moneymakingaimsee.blogspot.in
https://www.facebook.com/moneymakingmc

18 February 2019

RBI (The Total Investment & Insurance Solutions)

The Reserve Bank will pay an interim dividend of Rs 28,000 crore to the government, a move that will help the Centre keep fiscal deficit in check. The announcement on Monday came after the bank's Central Board meeting, which was addressed by Finance Minister Arun Jaitley. This is the second successive year when the Reserve Bank of India (RBI) will be transferring an interim surplus. This is in addition to Rs 50,000 crore surplus transfer announced by RBI in August 2018 for 2017-18 (RBI follows July-June financial year). Of this, Rs 10,000 crore was given as interim dividend to the government on March 27, 2018. "Based on a limited audit review and after applying the extant economic capital framework, the Board decided to transfer an interim surplus of Rs 280 billion to the central governmentfor the half-year ended December 31, 2018," the central bank said in a statement. RBI had given Rs 30,663 crore as dividend to the government in 2017-18.

In his address to the Board, Jaitley outlined various reforms and policy measures taken by the government over the last four years and the effects thereof. The central bank transfers its surplus amount to the government, under Section 47 of the RBI Act, 1934. Section 47 of the Act says:"After making provision for bad and doubtful debts, depreciation in assets, contribution to staff and superannuation fund and for all matters for which provision is to be made by or under the Act or which are usually provided by bankers, the balance of the profits shall be paid to the central government.” As per the Budget document, the government expects Rs 82,911.56 crore as dividend/ surplus of RBI, nationalised banks and financial institutions during 2019-20. The statement further said the Central Board, chaired by RBI Governor Shaktikanta Das, also observed two minutes silence as a mark of respect for the security personnel killed in the terror attack at Pulwama, Jammu and Kashmir. Fiscal deficit for 2018-19 is expected to be slightly higher at 3.4 per cent of the GDP on account of Rs 20,000 crore budgeted for income support to farmers. For 2019-20 too, the government has retained the fiscal deficit at 3.4 per cent.The Total Investment & Insurance Solutions

Warehousing may pull in $10 billion in next 4-5 years-The Total Investment & Insurance Solutions

Contact Your Financial Adviser Money Making MC

http://moneymakingaimsee.blogspot.in
https://www.facebook.com/moneymakingmc

18 February 2019

Top 5 Markets (The Total Investment & Insurance Solutions)

Riding on structured reforms including the infrastructure NSE -0.34 % status and the implementation of Goods & Services Act, Indian warehousing and logistics sector is estimated to attract nearly $10 billion investments over the next 4-5 years. With addition of around 200 million sq ft warehousing space across India, total supply is expected to nearly double by 2022, estimated JLL India.

With e-commerce players expanding operations across the country, there has been a corresponding rise in demand for space from these companies in both tier I and II markets and this is expected to add to robust growth in Delhi NCR, Mumbai, Pune, Bengaluru and Chennai markets. “Warehousing and logistics sector has been growing steadily since 2017, when it was granted an infrastructure status. Structured reforms such as the implementation of Goods and Services Act, the formation of a Logistics Department under the ministry of commerce and industry and various other policy changes have directly or indirectly resulted in sector’s growth of the sector,” said N Srinivas, managing director, industrial services, JLL India.

A key trend emerging now is the growing demand for warehousing and logistics space from tier II cities like Coimbatore, Guwahati, Lucknow, Jaipur & Ludhiana. While the year 2018 witnessed a 22% year-onyear growth in total stock in Grade A & B warehousing space in top eight cities at 169 million sq ft compared to 138 million sq ft ft year ago, absorption clocked an unprecedented growth of 60% year-on-year growth to nearly 32 million sq ft last year from around 20 million sq ft in 2017. The robust growth in absorption reflects demand outstripping supply significantly and vacancies dropping below 10% level for the first time ever, showed data from JLL India. With 24% share of total platform level investments in India in 2018, warehousing and industrial segment is expected to retain strong momentum over the next few years

A number of private Indian developers are already considering investments into the investable grade real estate. These include Musaddilal, Panchshil, GWC, FWS, Hiranandani, Lodha Group, Jalan Group, Srijan, Apeejay, AllCargo among others. Established and newer foreign funds-managed developers are considering different entry strategy. These include joint ventures, joint developments and acquisition of existing portfolio.

Some of these names include Altico Capital, Ascendas FirstSpace, ESR, Hindustan Infralog (DP World + NIIF), IndoSpace, Embassy, LOGOS India, Morgan Stanley and Proprium. Among sectors, third-party logistics (3PL) companies, ecommerce, auto & ancillary, retail and fast moving consumer goods (FMCG) companies accounted for around 60% of the absorption during the year. Delhi NCR, Mumbai, Pune, Bengaluru and Chennai continued to be the top five markets in terms of demand & absorption.

While Chennai, Pune and Ahmedabad registered significant demand from the manufacturing sector, Kolkata emerged as a major logistics hub due to its consumption and distribution advantage. “A dearth of good quality and ready supply in the market has forced occupiers to go for Built-to-Suit (BTS) developments that accounted for almost 26% of total absorption in 2018. However, in line with the demand and requirements, the developers are also aligning themselves to focus on creating quality spaces,” Srinivas said. The year 2019 has started on a positive note for the sector.The Total Investment & Insurance Solutions

Provident Fund rate may be retained at 8.55%-The Total Investment & Insurance Solutions

Contact Your Financial Adviser Money Making MC

http://moneymakingaimsee.blogspot.in
https://www.facebook.com/moneymakingmc

18 February 2019

India (The Total Investment & Insurance Solutions)

The government is likely to retain the provident fund interest rate at 8.55% despite the decline in interest rates, benefitting over 60 million subscribers of the Employees’ Provident Fund Organisation (EPFO). The Central Board of Trustees (CBT) of the EPFOwill meet on Thursday to consider the return for the current year besides an increase in the minimum pension for subscribers. The doubling of the minimum pension under the Employee Pension Scheme (EPS) of the EPFO will benefit nearly 5 million subscribers. “There is an FIAC (finance, investment and audit committee) meet just before the CBT meet on Thursday in which we will get a clear picture on the accounts of EPFO and the rate of interest that can be offered. But we hope it will be retained at the existing level,” said Prabhakar Banasure, a CBT member. The CBT is a tripartite body with representatives from the government, employers and trade unions headed by the labour minister.

 It is the apex decision-making body of the EPFO. The 8.55% rate is higher than that available on government small savings schemes, the return on which is benchmarked to market rates. The RBI cut key interest rates by a quarter point on February 7, citing the easing of inflationary pressures and the need to lower the cost of funds to support economic activity amid a worsening global growth outlook in the past few months. “The sub-committee on pension has reviewed the proposals of high-empowered committee to double the minimum pension to Rs 2,000 from Rs 1,000 now, restrict its withdrawal before retirement and introduce some amount of contribution from the beneficiaries during their work life,” said another official, adding these could be laid before the CBT.The Total Investment & Insurance Solutions

World Stocks Mostly Rise Ahead Of More China-US Trade Talks -The Total Investment & Insurance Solutions

Contact Your Financial Adviser Money Making MC

http://moneymakingaimsee.blogspot.in
https://www.facebook.com/moneymakingmc

18 February 2019

Financial Markets (The Total Investment & Insurance Solutions)

 

World stocks mostly rose on Monday ahead of more trade talks between Chinese and American officials in Washington this week.

After Asia closed higher, France's CAC 40 gained 0.3 percent to 5,167 while the DAX in Germany was up almost 0.1 percent to 11,303. Britain's FTSE 100 shed 0.1 percent to 7,228. Wall Street was due to remain closed for President's Day.

On Friday, China and the U.S. announced plans to resume trade negotiations in Washington, fueling hopes that both countries were edging toward a deal.

"We feel we have made headway on very, very important and difficult issues," U.S. Trade Representative Robert Lighthizer said in a meeting with Chinese President Xi Jinping.

Xi expressed hope for "a mutually beneficial and win-win agreement," according to the official Xinhua News Agency.

Negotiators had just wrapped up two days of talks in Beijing. A tariffs truce expires March 2 and will leave the U.S. free to more than double import taxes on $200 billion in Chinese goods.

U.S. President Donald Trump has said he may hold off on these if the country was close to a deal with China. Traders are waiting to see if enough progress was made on thorny issues like Washington's unhappiness over Chinese technology and trade policies.

"Achieving a deal is important to avert an escalation in the tariff war between the world's two largest economies," DBS Group Research strategists Philip Wee and Eugene Leow said in a commentary.

"It, however, does not imply that the U.S. would lower tariffs. China will still be looking at fiscal stimulus and monetary easing measures to cushion growth," they added.

THE DAY IN ASIA: Japan's benchmark Nikkei 225 advanced 1.8 percent to 21,281.85 and South Korea's Kospi jumped 0.7 percent to 2,210.89. The Shanghai Composite index rose 2.7 percent to 2,754.36. Hong Kong's Hang Seng was 1.6 percent higher at 28,347.01. Australia's S&P/ASX 200 index added 0.4 percent to 6,089.80. Shares rose in Taiwan and throughout Southeast Asia.

ENERGY: U.S. crude added 44 cents to $56.03 per barrel in electronic trading on the New York Mercantile Exchange. It added $1.18 on Friday. Brent crude, used to price international oils, gained 25 cents at $66.50 per barrel in London. It picked up $1.68 on Friday.

CURRENCIES: The dollar strengthened to 110.59 yen from 110.48 yen late Friday. The euro rose to $1.1306 from $1.1293.The Total Investment & Insurance Solutions