German Economy Grew In 2017 At Fastest Pace In 6 Years-The Total Investment & Insurance Solutions

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11 January  2018

Germany government (The Total Investment & Insurance Solutions)

The German economy accelerated last year to grow by 2.2 percent, putting in its strongest performance for six years thanks primarily to increasing demand at home, official data showed Thursday. The Total Investment & Insurance Solutions

The figure released by the Federal Statistical Office was the strongest since 2011, when Europe's biggest economy grew by 3.7 percent. Gross domestic product expanded by 1.9 percent in 2016 and 1.7 percent in 2015.

Household spending by Germans was up 2 percent last year, while investment in machinery and other equipment was up 3.5 percent.

Exports — a traditional strength of the German economy — grew by 4.7 percent, a much stronger performance than the previous year's 2.6 percent. But they were outpaced by imports, which expanded by 5.2 percent, up from 3.9 percent in 2016. Overall, foreign trade contributed only 0.2 percentage points to last year's GDP growth. The Total Investment & Insurance Solutions

Eight consecutive years of growth have also boosted Germany's public finances. Germany had its fourth budget surplus in a row last year, totaling 1.2 percent of GDP, according to Thursday's report. That was up from 0.8 percent the previous year as growth in the state's income outpaced increased spending.

The statistics office offered a rough estimate that the economy grew by a bit more than a half-percent in the fourth quarter compared with the previous three-month period. However, it won't release an official figure until mid-February, after data for December become available. The Total Investment & Insurance Solutions

The same things that helped German growth in the last two years should remain in place this year, said Carsten Brzeski, an economist at ING-DiBa — low interest rates, a relatively weak euro, strong domestic momentum and a recovering eurozone economy. But he pointed to signs of weakness in areas such as digitalization, services and education and called for the incoming government to tackle those. The Total Investment & Insurance Solutions

A major German business group called for more investment in education and infrastructure. Martin Wansleben, the Association of German Chambers of Commerce and Industry's chief executive, said there also should be financial "relief for companies, in any case no tax increases."The Total Investment & Insurance Solutions

Global Shares Steady After Wall Street Rally Fizzles-The Total Investment & Insurance Solutions

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11 January  2018

South korea financial markets (The Total Investment & Insurance Solutions)

 Global shares were mixed Thursday, with Europe steady and Asia posting modest losses after main Wall Street benchmarks fell for the first time in 2018. Unconfirmed reports Thursday that China may slow its purchases of U.S. government bonds weighed on investor sentiment. China's trade minister rejected the reports as false. The Total Investment & Insurance Solutions

KEEPING SCORE: Britain's FTSE 100 lost 0.1 percent to 7,744.75. France's CAC 40 was flat at 5,505.51, while Germany's DAX dipped 0.2 percent to 13,260.53. Futures augured a lackluster start on Wall Street. S&P futures added 0.1 percent and Dow futures also added 0.1 percent.

CHINA: A report by Bloomberg News said China is considering slowing or halting its purchases of U.S. Treasurys, which helped push yields higher. The report triggered sell-offs of U.S. government bonds and the yield on the 10-year Treasury reached its highest level since March at one point before pulling back. China's foreign exchange regulator challenged the report that it might slow or stop purchases of U.S. Treasury debt due to trade tensions with Washington as "fake news." The Total Investment & Insurance Solutions

ANALYST'S TAKE: "Justifiably, Beijing's biggest worry is that the value of its U.S. bond holdings will be eroded substantially by rising inflation and supply," Mizuho Bank Ltd. said in a daily commentary. But it added that "Doubts about (U.S. bonds) allure should not be overblown as a threat of imminent dumping."

SOUTH KOREA: Bitcoin prices in South Korea gyrated, sinking as much as about 20 percent, after the country's justice minister said it plans to ban crypto currency trading. South Korea's presidential office later said the ban is under review and no decision has been made on whether or not to implement it. The justice ministry has taken the sternest stance on digital currencies among South Korean ministries but other government agencies reported oppose an outright ban on bitcoin and other virtual currency trading.

ASIA'S DAY: Japan's Nikkei 225 fell 0.3 percent to 23,710.43 and South Korea's Kospi retreated 0.5 percent to 2,487.91. Hong Kong's Hang Seng index edged 0.2 percent higher to 31,120.39 and the Shanghai Composite index erased earlier losses to edge 0.1 percent higher at 3,425.34. Australia's S&P/ASX 200 slumped 0.5 percent to 6,067.60. Most stock markets in Southeast Asia were weaker.

CURRENCIES: The dollar rose to 111.63 Japanese yen from 111.43 yen. The euro fell slightly to $1.1947 from $1.1948. The Total Investment & Insurance Solutions

OIL: Benchmark U.S. crude rose 17 cents to $63.74 per barrel on the New York Mercantile Exchange. The contract added 61 cents to settle at $63.57 per barrel on Wednesday. Brent crude, the international standard, gained 14 cents to $69.34 per barrel in London. It gained 38 cents to $69.20 a barrel on Wednesday.The Total Investment & Insurance Solutions

Nifty, Sensex may decline If they close below today’s lows – Wednesday closing report-The Total Investment & Insurance Solutions

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10 January  2018

I had mentioned in Tuesday’s closing report that Nifty, Sensex were getting overbought. The major indices of the Indian stock markets were range-bound on Wednesday and closed with negligible losses over Tuesday’s close. On the NSE, there were 589 advances, 922 declines and 37 unchanged. The trends of the major indices in the course of Wednesday’s trading are given in the table below:The Total Investment & Insurance Solutions

 

Major Indices (The Total Investment & Insurance Solutions)

Broadly negative Asian markets, coupled with selling pressure in consumer durables, auto and capital goods stocks, pulled the key Indian equity indices lower during the mid-afternoon trade session on Wednesday. The barometer 30-scrip Sensitive Index (Sensex) of the BSE, which opened at a record high level of 34,538.78 points, touched a fresh high of 34,565.63 points on an intra-day basis. Stocks of Oil and Natural Gas Corp rose after a surge in international crude oil prices. The Total Investment & Insurance Solutions

In major changes liberalising foreign direct investment (FDI) in key sectors, the Union Cabinet on Wednesday approved 100% foreign investment in single brand retail trading (SBRT) and construction development and decided to open up Air India for FDI up to 49%. Besides, the government also decided that foreign institution investors and portfolio investors be allowed to invest in power exchanges through primary market and amended the definition of "medical devices" in its FDI policy. The decisions, taken at a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi, were intended to liberalise and simplify the FDI policy to provide ease of doing business. "In turn, it will lead to larger FDI inflows contributing to growth of investment, income and employment," an official statement said. The present FDI policy on single brand retail trading allows 49% FDI under automatic route and FDI beyond 49% and up to 100% through government approval route. "It has now been decided to permit 100% FDI under automatic route. It has been decided to permit single brand retail trading entity to set off its incremental sourcing of goods from India for global operations during initial five years, beginning April 1 of the year of the opening of first store against the mandatory sourcing requirement of 30% of purchases from India," the statement said. These liberalisation measures are likely to reinforce the long-term bullish trends in the Indian stock markets.

The World Bank is estimating India's economy to grow by 6.7% during the current fiscal year, higher than the 6.5% estimate by the Indian government. The Gross Domestic Product (GDP) growth is expected to rise to 7.3% in 2018-19, making India again the world's fastest growing economy, according to the World Bank's Global Economic Prospects report released on Tuesday. The report dropped the growth estimate for 2017-18 by 0.1% from its projection June 2017, because of the disruptions to the economy from the Goods and Services Tax (GST). But it raised the growth forecast for 2018-19 by 0.1% from the June figure. The Bank forecast GDP growth of 7.5% in 2019-20 and 2020-21. The World Bank saw benefits down the road from GST. The Total Investment & Insurance Solutions

Debt-ridden Electrosteel Steels said four companies- Tata Steel, Vedanta, Renaissance Steel India and Edelweiss Alternative Asset Advisors Pte -have submitted bids to its Resolution Professional, under the corporate insolvency resolution process in terms of the Insolvency and Bankruptcy Code, 2016 (IBC). Tata Steel shares closed at Rs772.85, up 0.19% on the NSE and Vedanta shares closed at Rs334.80, down 0.86% on the NSE.

The Coal India board has approved a non-coking coal price hike for both power and non-power consumers. The price increase is expected to push the miner's revenue up by Rs1,956 crore for the remaining period of the current fiscal. Effective from Tuesday, the revision is projected to lead to an incremental annual revenue of Rs6,421 crore. "The board has approved revision of non-coking coal prices with effect from January 9. This will be applicable to all the subsidiaries of Coal India including NEC for regulated and non-regulated sectors," the miner said in a late night filing. "Due to this revision, Coal India will earn approximately an incremental revenue of Rs1,956 crore for the balance period of the current fiscal (2017-18) and the projected annual incremental revenue would be Rs6,421 crore," an official said. Coal India shares closed at Rs308.30, up 1.48% on the NSE.

The top gainers and top losers of the major indices are given in the table below: The Total Investment & Insurance Solutions

 

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 recapitalization to prioritize large state banks: Fitch-The Total Investment & Insurance Solutions

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10 January  2018

 

Fitch (The Total Investment & Insurance Solutions)

The first tranche of the Indian government's bank recapitalization programme, approved by parliament last week, will increase the average core capital ratio of state banks, helping address shortages that weigh on banks' viability ratings and performance, says Fitch Ratings. However, government officials have indicated that capital injections are to be targeted at supporting lending growth, which suggests the healthiest state banks - generally the larger ones - will be the main recipients. The Total Investment & Insurance Solutions

The government is front-loading the capital injections it plans to provide through recapitalization bonds over the next two years, with the first tranche of Rs800 billion ($12 billion) accounting for 60% of the total. Details are still being finalized, but press reports suggest the government will issue the bonds directly to banks - effectively an accounting adjustment that will not involve any cash transfers. Banks are pushing for recapitalization bonds to have statutory liquidity ratio (SLR) status, which would boost their tradability and enhance liquidity, but inferences so far suggest that the bonds are likely to have non-SLR status and will be non-tradable.

The government appears set to priorities lending growth when allocating capital. This is likely to mean that banks currently in the Reserve Bank of India's (RBI) prompt corrective action (PCA) framework will receive no more than the capital necessary to ensure they do not breach minimum regulatory capital requirements. The PCA framework allows the central bank to take a more interventionist approach - often through restricting asset growth. Eleven of India's 21 state banks, including most small- and mid-sized banks, are in PCA. The Total Investment & Insurance Solutions

We, therefore, expect most of the fresh capital to be provided to large banks that have scope to grow. The injections could allow some of these banks to pursue stronger expansion, particularly if the improvement in their financial profiles helps them independently tap equity capital markets.

Punjab National Bank has raised Rs50 billion through equity issuance since the recapitalization plan was announced and other banks, such as Bank of Baroda and Canara Bank, are reportedly looking to follow suit.

Nevertheless, prospects for system-wide credit growth remain weak. A significant proportion of new capital could still eventually go toward absorbing loan losses, even at healthier large banks, given uncertainty over the size of haircuts banks will need to take on bad loans. Meanwhile, banks in PCA are more likely to shrink than expand as the RBI attempts to steer them toward stronger capitalization. The Total Investment & Insurance Solutions

The recent decision by Indian Overseas Bank (IOB) to set off operational losses against share premium reserves - part of its capital reserves - instead of revenue reserves illustrates the difficulties faced by some undercapitalized banks as they try to avoid skipping coupon payments on loss-absorbing instruments. Fitch estimates that IOB would not have met the pre-requisite of positive distributable reserves for paying its coupon due in February 2018 if it had not dipped into capital reserves.

The move is not unprecedented but would have required RBI approval. Only two other banks in serious financial distress have been allowed to take this option in the last two decades. IOB may set a precedent for other weak banks to clean up their balance sheets in the same way. The RBI's apparent decision not to block the move also adds to the series of regulatory forbearance that has helped avoid the risk of failed coupon payment in the previous few years. Some small, weaker banks are still likely to fall into the government's consolidation agenda, despite support from a fresh capital and regulatory forbearance.The Total Investment & Insurance Solutions

Tyre industry in sweet spot with favourable demand prospects: ICRA -The Total Investment & Insurance Solutions

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10 January  2018

 

Tyre (The Total Investment & Insurance Solutions)

The domestic tyre industry is expected to post volumes growth of 7-8% to ~1,805 lakh tyres during FY2018, despite the weak volumes during Q1 and part of Q2 during GST roll-out. In tonnage terms, tyre demand is estimated to grow by ~7% during FY2018 supported by pick-up in T&B replacement demand after over two years of weak growth and; for FY2019, the unit and tonnage growth is pegged at 8-8.5% and 6.5-7% respectively, as per an ICRA note.

Subrata Ray, Sr. Group Vice President, Corporate Sector ratings, ICRA said, “Tyre volumes across all the commercial segments de-grew during H1FY18 due to Goods and Service Tax (GST) implementation which impacted Q1FY2018 demand due to de-stocking by dealers. However, barring this short-term aberration, the domestic tyre demand has remained favourable during the year and likely to recover in H2FY2018. Further a rebound in automotive production across product segments is expected to have a cascading impact on original equipment (OE) tyre demand during the year.”

Regarding tyre exports, the same have remained strong for the second straight year, led by revival in demand across product segments. Following a 27.5% growth in FY2017, exports volume increased by 14.1% during H1FY2018. In value terms, the growth in exports came a bit lower at 13.3% as realizations remained tepid; the pricing was constrained by softened RM prices. While overall tyre exports grew by 13% during FY2017, growth in exports to the top ten countries was higher at ~18% aided by steady demand in most of the regions, barring UAE and Philippines.

Tyre exports are estimated to grow by ~10% in FY2018 and by ~8-10% over the next three years led by stable demand and increased acceptance of Indian tyres in overseas markets, both in terms of quality and pricing. However, with rising penetration of low cost Chinese tyres in overseas markets, especially post the removal of anti-dumping duty (ADD) by USA on Chinese tyres in February 2017, competition from China (both in terms of volumes and pricing) will remain a key challenge. The Total Investment & Insurance Solutions

Following the ADD imposition on Chinese tyres by USA in FY2015 and removal of ADD on Chinese tyre imports to India in FY2015, TBR tyre imports to India had witnessed a sharp growth in FY2016 and FY2017. However, due to the demonetisation effect and with USA ruling out ADD on Chinese tyres in February 2017, tyre imports have de-grown by 10.5% (in value terms) and 2.0% (in volume terms) during H1 FY2018. This apart, the re-imposition of Anti-dumping duty (ADD) by the Government of India on September 19, 2017 on import of new Chinese TBR (including tubeless) for five years, is likely to keep the imports lower going forward. China cornered a lion share with ~90% of TBR tyres originating from China in FY2017. With the competitiveness of Chinese players diminishing post ADD, it provides level playing field for Indian T&B tyre makers. The Total Investment & Insurance Solutions

“ICRA expects the capacity addition in the industry to continue over next five years given the large cash balances, strong accrual position and favourable demand scenario.  Capex investments are likely to continue with planned Rs25,000cr of investments spread across the next five years,” says Ray.

As for raw material prices impact on the industry, while there was an interim spike of 30% during Feb-Mar’17, the natural rubber (NR) prices have subsequently declined sharply and been trading at an average of Rs130 per kg during 9mFY2018, in line with FY2017 levels. Due to subdued demand, NR consumption increased by only 1.9% during 5mFY2018 vis-à-vis a 5.7% rise in production levels. Global NR prices continue to trade at a discount of ~10% averaging at Rs118 per kg during 9mFY2018. Slowing demand from China, USA and Japan coupled with higher output have kept the global prices lower. Against a 4.7% Y-o-Y increase in production, the global NR consumption increased by just 1.2% during the period January to November 2017. Global NR prices are expected to increase by over 15% and domestic NR prices to trend in the range of Rs135 -145 per kg over the next three months.

WTI crude oil prices have increased to $59.5/bbl in Dec’2017 (up ~20% since October 2017), primarily be attributed to geo-political tensions from countries like Iraq-Kurdistan, Libya and Nigeria, fears of sanctions on Iran by USA, expectations of extension of timeline for production cut back by OPEC and few non-OPEC countries and the recent higher-than-anticipated global demand growth of petroleum products. The Total Investment & Insurance Solutions

ICRA expects the prices of crude derivatives to increase by 15-20% in Q4 FY2018 due to the time lag effect of the 20% spike in oil prices during Oct-Dec’17. The Total Investment & Insurance Solutions

Following 10 quarters of subdued performance, the industry revenues grew by a sharp 12.6% during Q2 FY2018. The growth was fueled by strong volumes across product categories, especially in the OE segments, even as realizations remained weak. With falling imports, T&B tyre demand recovered sharply while LCV and motorcycle tyre sales volumes were supported by good farm output. Stable PV and scooter tyre demand, rise in OTR tyre exports and pent-up replacement demand across product categories (post GST related issues) further supported the growth in volumes during the quarter.

On the margin front, with the softening of RM prices since April 2017, the industry recovered back to its normal levels of margins in Q2 FY2018 following an exceptionally weak performance in the preceding quarter. Nevertheless, Q2 margins are still lower than FY2017 level (considered one of the best years for tyre industry), due to steep correction in RM prices. Industry wide operating and net margins expanded by 670bps and 400bps Q-o-Q respectively. 

ICRA expects the tyre industry (represented by ICRA’s sample of seven major tyre companies) to post 8-10% growth during FY18-22.  While price cuts during 9M FY17, capped revenues during FY2017, price hikes between Jan-May’17 coupled with modest volume growth is expected to support a 7-8% revenue growth during FY 2018; during H1 FY18, the industry posted 6.7% growth in revenues. Despite heavy capex in the coming five years FY18-22, the industry is expected to fund the same from the significant pile of accruals during the past three years, leading to a stable credit profile for the industry.The Total Investment & Insurance Solutions

Cabinet allows foreign airlines to buy up to 49% stake in Air India -The Total Investment & Insurance Solutions

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10 January  2018

Air India (The Total Investment & Insurance Solutions)

In a move designed to expedite the strategic divestment in Air India, the Cabinet on Wednesday decided to open up the national carrier for foreign direct investment (FDI) up to 49 per cent under the approval route.

The present rules allow foreign airlines to invest under the government approval route in the capital of Indian airline companies up to the limit of 49 per cent of their paid-up capital, which is, however, not applicable to Air India. 

"It has now been decided to do away with this restriction and allow foreign airlines to invest up to 49 per cent under approval route in Air India subject to the conditions that foreign investments in Air India including that of foreign airlines shall not exceed 49 per cent either directly or indirectly," an official release said here, following a Cabinet meeting. The Total Investment & Insurance Solutions

"Substantial ownership and effective control of Air India shall continue to be vested in Indian National," it added. 

Currently, a ministerial group -- Air India-specific Alternative Mechanism -- headed by Finance Minister Arun Jaitley is looking into the modalities to divest loss-making Air India. The group has been mandated to decide on key issues such as treatment of Air India's debt and hiving-off of its assets.

Last month, Minister of State for Civil Aviation Jayant Sinha had announced that British consulting multinational EY has been appointed as transaction advisors to aid the government in the strategic divestment of Air India.

Making the announcement, Sinha said the Air India stake sale would most likely be an offering for an integrated airline through the bidding process "and both domestic and international operations will be divested as one entity". 

In September, the Department of Investment and Public Asset Management had invited bids for the role of advisors to guide the government on the financial and legal issues associated with the strategic disinvestment.

The airline, which is under a massive debt burden of Rs 50,000 crore, had posted an operating profit of Rs 105 crore in 2015-16, and is expected to report an improved operating profit margin for the last fiscal. 

The national carrier got a new lease of life in April 2012, when the then UPA government approved a Rs 30,000-crore turnaround and financial restructuring package spanning up to 2021.The Total Investment & Insurance Solutions

Worries China Will Lower US Asset Purchases Hits Markets-The Total Investment & Insurance Solutions

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10 January  2018

Japan financial markets (The Total Investment & Insurance Solutions)

Speculation that China may cut or even halt its purchases of U.S. Treasurys weighed on stock markets Wednesday and sent the dollar sliding.

KEEPING SCORE: In Europe, Germany's DAX fell 0.8 percent to 13,280 while the CAC 40 in France declined 0.2 percent to 5,500. The FTSE 100 index of leading British shares was steady at 7,729. U.S. stocks were poised for a lower opening with Dow futures and the broader S&P 500 futures both down 0.4 percent.

CHINA CONCERN: In a report, the Bloomberg news agency said unnamed officials in Beijing have recommended slowing or actually halting purchases of U.S. Treasurys. Given that China is a major buyer of U.S. Treasurys U.S. assets have taken a hit. The Total Investment & Insurance Solutions

ANALYST TAKE: "If the reports turn out to be true .... the repercussions could be significant as the country is one of the biggest holders of U.S. debt," said Craig Erlam, senior market analyst at OANDA. "A significant change in policy could put considerable upside pressure on U.S. yields, the result of which would be an effective tightening for the U.S." The Total Investment & Insurance Solutions

DOLLAR: The dollar was hit hard by the reports. The euro was up 0.6 percent at $1.2005 while the dollar fell 1.1 percent to 111.39 yen.

JAPAN CENTRAL BANK: A drop in the scale of long-term bond purchases by the Bank of Japan on Tuesday has triggered speculation over further "tapering" of asset purchases. That pushed the Japanese yen higher against the dollar, denting some exporters' shares. The Total Investment & Insurance Solutions

THE DAY IN ASIA: Japan's Nikkei 225 index lost 0.3 percent to 23,788.20 and the Kospi in South Korea lost 0.4 percent to 2,499.75. Australia's S&P ASX 200 slipped 0.6 percent to 6,096.70. The Hang Seng index in Hong Kong climbed 0.2 percent to 31,073.72 and the Shanghai Composite index added 0.2 percent to 3,421.83. The Total Investment & Insurance Solutions

ENERGY: Benchmark U.S. crude oil rose 71 cents to $63.66 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, added 48 cents to $69.29 per barrel.The Total Investment & Insurance Solutions

Nifty, Sensex Getting Overbought – Tuesday closing report-The Total Investment & Insurance Solutions

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9 January  2018

I had mentioned in Monday’s closing report that Nifty, Sensex were headed higher. The major indices of the Indian stock markets closed with minor gains over Monday’s close.  On the NSE, there were 588 advances, 879 declines and 19 unchanged. 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)

The Nifty50 touched a fresh intra-day high of 10,659.15 points. The barometer 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 34,431 points, closed at a new high of 34,443.19 points -- up 90.40 points or 0.26% -- from its previous session's close. The Sensex scaled a fresh intra-day high of 34,488.03 points.

Leading cab aggregator Ola and ICICI Bank signed a MoU to bring forth a range of integrated offers for their customers and driver partners. "This alliance will provide increased convenience to customers on both the platforms as well as hundreds of thousands of driver partners," Bhavish Aggarwal, Co-Founder and CEO of Ola, said in a statement. Through this alliance, both brands will bring together their respective technology platforms to offer Ola booking facility on ICICI Bank's mobile banking platforms. It will enable ICICI Bank customers to seamlessly book an Ola and pay the fare by using the bank's mobile banking applications; 'iMobile' and 'Pockets'. ICICI Bank shares closed at Rs312.60, down 0.57% on the NSE. The Total Investment & Insurance Solutions

The Coal India board on Tuesday approved a non-coking coal price hike for both power and non-power consumers. The price increase is expected to push the miner's revenue up by Rs1,956 crore for the remaining period of the current fiscal. The price revision is effective from Tuesday and the projected incremental annual revenue would be Rs6,421 crore. Coal India shares closed at Rs304.05, up 5.76% on the NSE. The Total Investment & Insurance Solutions

Low-cost carrier IndiGo said that it will commence daily direct flights from Chennai and Bengaluru to Colombo from January 20. "Both corporate and leisure passengers travelling to and from Colombo will get the opportunity to experience on-time, affordable and a hassle-free travel experience that IndiGo is synonymous with," the airline said in a statement. Interglobe Aviation shares closed at Rs1,227.10, up 0.18% on the NSE.

State-run Indian Overseas Bank (IOB) has announced its plans to set off its accumulated losses with funds from its share premium account. In a release late on Monday, IOB said it intends using Rs7,650 crore in its share premium account to write off its accumulated losses worth Rs6,978.94 crore. The decision, approved by the bank board last week, will now be put to vote at an extraordinary general meeting (EGM) on January 30. The bank’s shares closed on Tuesday at Rs23.95 (no change from Monday’s close) on the NSE.

Dry cell batteries maker Eveready Industries India Ltd (EIIL) said it is entering into the confectionery business with its brand "Jollies" and is also hoping to become a major player in the market in the next 3-5 years. According to it, the confectionery market is estimated at over Rs9,000 crore and in the first phase, the brand will be launched in the fruit chew segment which is estimated to be around Rs400 crore. "The segment is growing at a rapid pace. The company believes that the fast growing fruit chew segment will double in the next 3-4 years and expects to become a significant player in this segment by making this under-penetrated category available across urban and rural India through its robust deep distribution network," it said in a statement. The company is working on an asset light model and hopes it can add significant turnover and profitability with entry into this segment. Company's Managing Director Amritanshu Khaitan said "The brand is the first step to scale up our FMCG portfolio of products. We believe that priced at Re.1, Jollies fruit chew will be an attractive offering to Indian consumers who prefer healthier choices." According to him, candies are a mass market product and can be carried in the Eveready vans reaching a million outlets. The company’s shares closed at Rs444.85, up 0.24% on the NSE.

The top gainers and top losers of the major indices are given in the table below: The Total Investment & Insurance Solutions

 

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)