Thursday, 7 June 2018

FM Piyush Goyal to meet heads of PSU banks tomorrow -The Total Investment & Insurance Solutions


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7 June 2018
 
PSU banks (The Total Investment & Insurance Solutions)


Finance Minister Piyush Goyal will meet heads of public sectors banks (PSBs) based out of western and southern regions tomorrow to resolve various issues concerning them. The Total Investment & Insurance Solutions

According to sources, the meeting is being organised by State Bank of India (SBI) and will be chaired by Goyal in Mumbai.

In all 15 CEO of PSBs from the two regions will participate in the meeting to discuss the way forward for the Indian Banking system, they said.

This is the first meeting with the heads of the PSBs after their annual financial result for 2017-18. Most of the banks posted loss in the fourth quarter of the last fiscal. The Total Investment & Insurance Solutions

The Nirav Modi fraud-hit Punjab National Bank alone posted a loss of Rs 13,416.91 crore for the quarter ended March 31, the largest ever quarterly loss by a bank. The Total Investment & Insurance Solutions

PNB provided for Rs 7,178 crore, 50 per cent of the total amount of Rs 14,356 crore liability with regard to Nirav Modi fraud in the fourth quarter of 2017-18. The remaining amount will be covered in the three quarters of the current fiscal year.The Total Investment & Insurance Solutions

PM Narendra Modi: Govt committed to ensuring affordable healthcare for all -The Total Investment & Insurance Solutions


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7 June 2018
 
Affordable healthcare (The Total Investment & Insurance Solutions)



Noting that access to medicines is a "big concern" for the poor, Prime Minister Narendra Modi today said his government is committed to decreasing the financial burden and ensuring affordable healthcare for every Indian.
He stressed on the need to make health a mass movement through public participation. The Total Investment & Insurance Solutions

Interacting with beneficiaries of the Pradhan Mantri Bhartiya Janaushadhi Pariyojna (PMBJP) and affordable cardiac stents and knee implants through video bridge, Modi said his government is working to provide more beds, hospitals and doctors and has taken one step after another to bring down treatment cost for the poor. The Total Investment & Insurance Solutions

"We have to make efforts to make public health a mass movement through public participation," he said during his fifth such interaction in the series with various beneficiaries of government schemes.

The prime minister noted that illness not only creates a huge financial burden on families, especially the poor and middle class, but also affects the socio-economic sector. The Total Investment & Insurance Solutions

"It is the endeavour of the government to ensure affordable healthcare to every citizen," he said. The Total Investment & Insurance Solutions

Observing that the PMBJP was launched with the intention to make the poor, lower middle class and middle class get access to affordable medicines and reduce their financial burden, Modi said more than 3,600 Jan Aushadhi Kendras have been opened all over the country, where over 700 generic medicines are available at affordable price. The Total Investment & Insurance Solutions

"The cost of medicines at Jan Aushadhi Kendras is 50-90 per cent less than the market price. The number of Jan Aushadhi Kendras will reach over 5,000 in the near future," he said. The Total Investment & Insurance Solutions

On the government's ambitious Ayushman Bharat programme, he said under it, around 10 crore families, that is around 50 crore people, will be given health insurance cover of Rs 5 lakh. The Total Investment & Insurance Solutions

"The first phase of this yojna has been initiated and soon people across the country will get benefited by it," he said.

As people living in small villages or towns find it difficult to go to a hospital or health centre that is very far away, the government has decided to open around 1.5 lakh health centres across the country under Ayushman Bharat, Modi said.
Apart from medicines, diagnostics facilities will also be available there, he said.
"In the last four years, our government has taken one step after the other so that the cost incurred by the poor for treatment can come down.
"I can say with satisfaction that we have chosen the right direction, taken the right path, made the right policies and they are now reaching the grass roots level...We have worked in mission mode," he said.

Modi said access to medicines is a big concern for the poor and the government's constant endeavour is to "ensure affordable healthcare to every Indian". The Total Investment & Insurance Solutions

Several people are benefiting from the PMBJP, he said.
He also noted that the government has reduced stent prices substantially, benefiting the poor and the middle class the most.

Earlier, people had to sell or mortgage property to purchase stents, Modi said, adding that the cost of heart stents has reduced from around Rs 2 lakh to Rs 29000. The Total Investment & Insurance Solutions

Although knee-related issues are common, the prime minister said their treatment was not common earlier as those who had the money could ensure treatment.
The government has reduced knee transplant prices by 60-70 per cent, thereby bringing down the cost from Rs 2.5 lakh to around Rs 70,00080,000, he said.
"It is estimated that around 1 to 1.5 lakh knee operations happen in India every year. On that account, the reduction in knee transplant prices has saved close to Rs 1,500 crore for public," he said. The Total Investment & Insurance Solutions

The prime minister noted that the cost of dialysis too was high and it was available in selected cities and keeping that in mind, the PM Rashtriya Dialysis Yojna was started through which the government has performed more than 22 lakh dialysis sessions for 2.25 lakh patients in more than 500 districts.
He said that more than 90 medical colleges have been opened which has led to an increase of 15,000 MBBS seats. The Total Investment & Insurance Solutions

"India would become great and healthy only when its 125 crore citizens are healthy," the prime minister said while stressing his government aims to eradicate tuberculosis from India by 2025, five years ahead of a globally set deadline. The Total Investment & Insurance Solutions

"The world has decided that by 2030, TB will be eradicated. We in India decided why wait for 2030. That is why we have made a programme to eradicate it five years ahead of the global deadline," he said.

Modi said that the government has also started a huge campaign for immunisation and more than 3.15 crore children and 80 lakh pregnant women have been vaccinated in 528 districts through Mission Indradhanush.
"Our target is that till 2020, all those children are immunised who have not been immunised or have been partially immunised, so that they can be saved from 12 different diseases," he said. The Total Investment & Insurance Solutions

Ahead of the International Yoga Day on June 21, the prime minister appealed to people to practice yoga and make it a part of their life. The Total Investment & Insurance Solutions

Bharti Group entity sells Future Retail stake worth Rs 1,697 cr-The Total Investment & Insurance Solutions

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7 June 2018


Big Bazaar(The Total Investment & Insurance Solutions)


Bharti Group entity Cedar Support Services today sold 6 per cent stake in Kishore Biyani-led Future Retail for nearly Rs 1,697 crore, through open market transactions. The Total Investment & Insurance Solutions

According to the bulk deal data available with the NSE, Cedar disposed of 3.03 crore shares, amounting to 6.04 per cent stake in Future Retail.
The shares were offloaded at an average price of Rs 560.01, valuing the transaction at Rs 1,696.83 crore. The Total Investment & Insurance Solutions

At the end of March quarter of 2017-18, Cedar held 4.63 crore shares, or 9.23 per cent stake, in the Kishore Biyani-led firm.

Among the buyers of the shares was Pi Opportunities Fund I and Pioneer Investment Fund. The Total Investment & Insurance Solutions

Pi Opportunities Fund I bought 2.27 crore shares at an average price of Rs 560 for a total of Rs 1,272.71 crore. The Total Investment & Insurance Solutions
Pioneer Investment Fund picked up 71.43 lakh shares at an average price of Rs 560 for Rs 400 crore. The Total Investment & Insurance Solutions

Last month, Cedar had exited a Kishore Biyani-led firm -- Future Enterprises -- by selling its 13.64 per cent stake for an estimated sum of over Rs 240 crore.
Separately, the bulk deal data on the BSE showed that Cygnet Industries sold 12.89 lakh shares of Century Textiles & Industries for Rs 120.36 crore.
All the shares were bought by Pilani Investment and Industries Corporation. VRN SBT SBT.The Total Investment & Insurance Solutions

Stocks Higher As Trump Prepares To Face Allies Over Trade-The Total Investment & Insurance Solutions

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7 June 2018

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


Global stock markets were higher Thursday as investors looked ahead to a summit of leaders where U.S. President Donald Trump is likely to be challenged over his trade policies. The Total Investment & Insurance Solutions

KEEPING SCORE: France's CAC 40 rose 0.3 percent to 5,473.31 and Germany's DAX gained 0.2 percent to 12,856.86. Britain's FTSE 100 fell to 7,708.96 after London's Stock Exchange opened one hour late because of a technical problem. On Wall Street, the future for the Standard & Poor's 500 index was up 0.9 percent and that for the Dow Jones industrial average gained 1.4 percent.

GLOBAL TRADE: The summit of leaders from the Group of Seven industrialized nations will take place Friday and Saturday in Canada, and Trump's trade war is at the top of the agenda. U.K. Prime Minister Theresa May has called his trade tariffs "unjustifiable," and both France and Canada call for international cooperation to tackle Trump's aggressive trade policies.

EUROPE: The euro rose against the dollar after a European Central Bank board member said policymakers will discuss next week withdrawing its bond-purchasing stimulus, suggesting the ECB wasn't overly worried about Italian government plans. Peter Praet's remarks suggested the June 14 meeting would bring hints about the end of the bond purchases. The bank currently says it will buy 30 billion euros ($35 billion) a month at least through September. The euro was up to $1.1822 from $1.1760 the day before.

ASIA'S DAY: Japan's Nikkei 225 jumped 0.9 percent to 22,823.26 while the Shanghai Composite Index finished 0.2 percent lower at 3,109.50. South Korea's Kospi finished up 0.7 percent to 2,470.58 and Hong Kong's Hang Seng index advanced 0.8 percent to 31,512.63. Australia's S&P-ASX 200 gained 0.5 percent to 6,057.30 and India's Sensex surged just over 1 percent to 35,547.13. Benchmarks rose in Taiwan and Southeast Asia.

ANALYST'S TAKE: "Overnight market action suggests investor confidence is growing," said Michael McCarthy of CMC Markets in a report. He said gains on reports the ECB would review unwinding its stimulus indicated "belief that the economic drivers of higher interest rates were sufficiently strong to sustain asset prices." The Total Investment & Insurance Solutions

CURRENCIES: The dollar increased slightly against the Japanese yen, rising to 110.05 yen from 109.85 yen. The Total Investment & Insurance Solutions

OIL: Benchmark U.S. crude added 21 cents to $65.38 per barrel in electronic trading on the New York Mercantile Exchange. It shed 1.2 percent to settle at $64.73 the previous session. Brent crude, used to price international oils, gained 35 cents to $76.44 per barrel in London. The contract lost 1 cent on Wednesday to settle at $75.36.The Total Investment & Insurance Solutions

Wednesday, 6 June 2018

Nifty, Sensex May Head Higher- Wednesday closing report-The Total Investment & Insurance Solutions


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6 June 2018


I had mentioned in Tuesday’s closing report that Nifty, Sensex were under pressure again. The major indices of the Indian stock markets gained after continuous declines in the past two days. On the NSE, there were 1191 advances, 545 declines and 319 unchanged. The trends of the major indices in the course of Wednesday’s trading are given in the table below:

The key Indian equity indices surged as the Reserve Bank of India (RBI) came out with its second bi-monthly monetary policy review where it has decided to raise the repo rate by 25 basis points. Investors' risk taking appetite was enhanced after the Reserve Bank of India maintained its "neutral" stance on future rate hike trajectory. Following a cycle of rate cuts begun in January 2015, the RBI on Wednesday raised its key interest rate for the first time by 25 basis points (bps) to 6.25 per cent, responding to concerns on inflation from surging global crude oil prices, as per a central bank announcement.

Giving significant relief to home buyers, President Ram Nath Kovind on Wednesday gave assent to the ordinance amending the Insolvency and Bankruptcy Code (IBC) to recognise their status as financial creditors. Being treated as financial creditors would bring home buyers at par with banks and other institutional creditors as they would now have a share in the proceeds earned by sale of assets of bankrupt real estate companies. "The President today (Wednesday) gave assent to promulgate the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018," an official statement said. The government said the ordinance would give home buyers due representation in the Committee of Creditors and make them an integral part of the decision making process.

The Cabinet on Wednesday approved revised guidelines for time-bound closure of sick and loss-making central public sector enterprises (CPSEs) and disposal of assets with the first priority for utilisation of land under closure for affordable housing. Briefing reporters after the Cabinet meeting, Law Minister Ravi Shankar Prasad said the revised guidelines would reduce delays in implementation of closure plans for sick or loss making CPSEs. The new guidelines will replace the guidelines issued by the Department of Public Enterprises in September 2016. "The guidelines give first priority for utilisation of land of CPSEs under closure for affordable housing to the poor," Prasad said. These guidelines would provide a broad framework for expeditious completion of various processes and procedures for closure of CPSEs by "laying down important milestones in the closure process along with timelines, outlining the responsibilities of the concerned Ministries/ Departments/ CPSE, etc., in the process", an official statement said.

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:

Major Indices (The Total Investment & Insurance Solutions)



RBI hikes Repo rate to 6.25%, Reverse Repo rate to 6%-The Total Investment & Insurance Solutions

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6 June 2018
RBI (The Total Investment & Insurance Solutions)


The Reserve Bank of India (RBI) on Wednesday hiked the key policy rates for first time in four years.
RBI hiked the repo rate by 25 basis points to 6.25 percent and the reverse Repo rate to 6 percent, the first increase since January 2014 and kept the stance neutral.
On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the 6-member Monetary Policy Committee (MPC) decided to hike the rates with all the members voting in favour of a rate hike.
RBI in its first bi -monthly resolution of 2018- 19 in April projected CPI inflation in the range of 4.7- 5.1 percent in H1:2018- 19 and 4.4 percent in H2, including the HRA impact for central government employees with risks tilted to the upside. The 10-year benchmark bond yield rose 4 basis points to 7.87 percent after the monetary policy announcement while the rupee was at 66.97 to the dollar from 67.05 before the news. 
According to the early results of the Reserve Bank’s IOS , activity in the manufacturing sector is expected to moderate marginally in Q2:2018- 19 on account of deterioration in the overall business situation and order book.
The Central Bank has retained GDP growth for 2018- 19 at 7.4 percent in the April policy. "GDP growth is projected in the range of 7.5- 7.6 percent in H1 and 7.3- 7.4 percent in H2 , with risks evenly balanced," RBI said.
Indian economy grew at 7.7 percent during January-March quarter (Q4) of financial year 20171-18 compared to 6.1 percent a year ago, driven by gains in manufacturing and consumer spending, Central Statistics Office data showed last week.
RBI has revised CPI inflation for 2018-19 to 4.8-4.9 percent in H1 and 4.7 percent in  H2. Crude oil prices have been volatile recently and this imparts considerable uncertainty to the inflation outlook both on the upside and the downside, it said.The Total Investment & Insurance Solutions

Cabinet approves bailout package for sugar industry-The Total Investment & Insurance Solutions

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6 June 2018
Sugar (The Total Investment & Insurance Solutions)


In a move aimed at helping loss-making mills and millions of cane growers, the Union Cabinet, chaired by PM Narendra Modi, on Wednesday approved a Rs 7,000 crore bailout package for the sugar industry.
This includes creation of buffer stock of 30 LMT of sugar for one year and to incur estimated expenditure of Rs 1175 crore for this purpose. "The reimbursement under the scheme would be made on quarterly basis which would be directly credited into farmers’ account on behalf of mills against their cane price dues," an official statement said.
Cabinet has also decided to set the minimum selling price at Rs 29 per kg which can be revised by DFPD subsequently based on revision of FRP. Government will put in place a mechanism to ensure that the retail prices of sugar are kept fully under control. At present, this would be done along with imposition of stock holding limits on sugar mills. The stock limit on mills will be initially imposed for the current sugar season (up to September 2018), which may be reviewed by DFPD at any time.
A bailout package has been worked out as sugar mills' financial health has worsened due to sharp fall in prices following a record sugar production of over 31.6 million tonnes so far in the 2017-18 marketing year (October-September).
Last month, the government had announced a Rs 1,500 crore production-linked subsidy for sugarcane farmers to help millers pay cane payments.
Presently, the average ex-mill price of sugar is in the range of Rs 25.60-26.22 per kg, which is below the cost of production.
The Centre has already doubled sugar import duty to 100 per cent and scrapped export duty to check sliding domestic prices. It has also asked mills to export 2 million tonnes of sugar.The Total Investment & Insurance Solutions

Government nod to Rs 1,948 crore bridge over Ganga -The Total Investment & Insurance Solutions


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6 June 2018
 
Ganga (The Total Investment & Insurance Solutions)


The government today approved a proposal for a 10-km bridge across river Ganga in Allahabad to be built at a cost of Rs 1,948 crore.
The decision was taken by the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi.

"The CCEA... approved the project for construction of 9.9 km long new 6-lane bridge across the Ganga on NH 96 at Phaphamau in Allahabad with total capital cost of Rs 1,948.25 crore," a statement from the ministry of road and highways said.

The project, expected to be completed by December 2021, will resolve the traffic congestion on the existing 2-lane Phaphamau bridge, it said.

It will also ease the rush during Kumbh, Ardh-Kumbh and other rituals at 'sangam' and will boost the pilgrimage tourism and local economy of Allahahad.
"The bridge will also be beneficial for the Lucknow / Faizabad bound traffic coming from Madhya Pradesh via NH 27 and NH 76 through Naini Bridge," the statement said.

It added that the project will generate direct employment during construction for about 9.20 lakh mandays.

The traffic on the old bridge is about 40,000 PCUs (Passenger Car Units) which is much greater than its designed capacity of 15,000 PCUs, resulting in severe congestion.
The government said there were only 13 bridges on the Ganga between Allahabad to Farakka before May 2014, but later additional 20 bridges were planned, of which 5 have been opened to traffic and 7 are under constructionThe Total Investment & Insurance Solutions


Global Stocks Gain After Wall Street Rise Ahead Of G7-The Total Investment & Insurance Solutions

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6 June 2018

China financial markets (The Total Investment & Insurance Solutions)


Global stocks markets followed Wall Street higher Wednesday ahead of a meeting of major industrialized economies overshadowed by tension over U.S. steel tariffs.
KEEPING SCORE: In early trading, London's FTSE 100 rose 0.2 percent to 7,706.16 points while France's CAC 40 edged up 5 points to 5,465.64. Germany's DAX lost 3.6 points to 12,781.79. On Tuesday, the DAX gained 0.1 percent while the CAC 40 dipped 0.2 percent and the FTSE 100 dropped 0.7 percent. On Wall Street, the future for the Dow Jones industrial average rose 0.3 percent while that for the Standard & Poor's 500 index gained 0.1 percent.
ASIA'S DAY: Tokyo's Nikkei 225 rose 0.4 percent to 22,625.73 and Sydney's S&P-ASX 200 gained 0.5 percent to 6,025.10. Hong Kong's Hang Seng advanced 0.4 percent to 31,222.77 while the Shanghai Composite Index added 1 point to 3,115.18. India's Sensex advanced 0.6 percent to 35,113.28 and benchmarks in Taiwan, New Zealand, Bangkok and Manila also rose. South Korean markets were closed for a holiday.
WALL STREET: U.S. stocks mostly rose, helped by gains for technology companies and retailers as up-and-down trading related to trade tensions gave way to smaller moves. The Standard & Poor's 500 index added 0.2 percent to 2,748.80 while the Dow Jones industrial average slipped 0.1 percent to 24,799.98. The Nasdaq composite rose 0.4 percent. Smaller retailers did especially well following strong first-quarter results. Amazon and Macy's also rose.
G7: Leaders of the Group of Seven meet Friday amid criticism that President Donald Trump's tariff hikes on steel and aluminum will undermine trade and weaken confidence in the global economy. Finance ministers of the other six governments expressed "concern and disappointment" over Trump's moves in a statement last weekend. Allies including Canada and the European Union are threatening retaliatory tariffs.
ANALYST'S TAKE: "Between the geopolitical cloud that looms and the sustained growth momentum, global equity markets trudged on in a tepid pace," said Jingyi Pan of IG in a report. Pan noted "renewed confidence" in information technology and forecasts of double-digit second quarter earnings growth. "The focus lies ahead with the bout of geopolitical development that could unfold with the G7 meeting amid a light midweek."
TRADE: Mexico announced duties of 15 to 25 percent on imports from the United States including pork, steel tubes and bourbon in response to Trump's tariff hike. The government said it would waive tariffs on pork from other countries to ensure adequate supplies.
AUSTRALIA GDP: Australia's economic output grew by 1 percent in the quarter ending in March, above consensus forecasts of 0.9 percent.
ITALIAN POLITICS: Italy's new government won the first of two confidence votes needed to take power after its leader denounced Europe's immigration policy and warned his Cabinet would renegotiate Italy's fiscal obligations to help struggling Italians. Financial markets are uneasy the 5-Star-League alliance's promises of higher welfare spending and other changes will increase Italy's debt burden. In his inaugural policy address, Premier Giuseppe Conte said Italy was committed to reducing its public debt but won't do so through austerity measures.
MALAYSIAN CENTRAL BANK: Prime Minister Mahathir Mohamad accepted the resignation of Malaysia's central bank amid a corruption investigation into the previous government. Muhammad Ibrahim gave no reason for quitting halfway through his five-year term. His departure was not expected to have any effect on monetary policy.
ENERGY: Benchmark U.S. crude gained 16 cents to $65.68 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained 77 cents on Tuesday to close at $65.52. Brent crude, used to price international oils, added 56 cents to $75.94 per barrel in London. The contract was 6 cents higher the previous session to close at $75.38.
CURRENCY: The dollar gained to 110.05 yen from Tuesday's 109.79 yen. The euro advanced to $1.1763 from $1.1715.The Total Investment & Insurance Solutions

Tuesday, 5 June 2018

All Eyes on RBI Policy – Tuesday closing report-The Total Investment & Insurance Solutions


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5 June 2018

I had mentioned in Monday’s closing report that Nifty, Sensex are under pressure. The major indices of the Indian stock markets continued its decline on Tuesday and closed with losses over Monday’s close. On the NSE, there were 328 advances, 1422 declines and 302 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

Broadly negative global cues along with caution ahead of the RBI's monetary policy review depressed the key Indian equity indices on Tuesday. According to market observers, heavy selling pressure was witnessed in the capital goods, consumer durables and IT stocks. State-run copper producer Hindustan Copper Limited (HCL), which is focusing on exploration in order to assess copper reserve in its mines, on Tuesday said it is expecting its turnover to cross Rs 2,000 crore in the current fiscal, an official said on Tuesday. State-owned Bank of Baroda on Tuesday said it will hike its benchmark marginal cost of funds based lending rate (MCLR) by 5 basis points, across various tenures from June 7. "The bank's 1-year MCLR will be 8.45 per cent, which is competitive as per the current market scenario," the bank said in a statement. "For all other tenors: overnight, one month, three months and six months rates will be 7.95 per cent, 8 per cent, 8.10 per cent and 8.30 per cent, respectively."

IndusInd Bank Ltd on Tuesday said it has received a 'no-objection' from National Stock Exchange (NSE) and BSE for merger of Bharat Financial Inclusion Ltd with itself. The "no-objection" is based on the draft scheme and other documents submitted by IndusInd Bank, including undertaking given in terms of regulation 11 of SEBI (LODR) Regulation. "This is one of the important approvals, which would enable IndusInd Bank to file the draft scheme of amalgamation, as approved by the Boards of Directors of both the entities on 14 October 2017, with the National Company Law Tribunal (NCLT) at Mumbai," the lender said in a release. The Total Investment & Insurance Solutions

The Enforcement Directorate (ED) on Tuesday questioned former Finance Minister P. Chidambaram here in a probe into the FIPB's approval to the Aircel-Maxis deals. Chidambaram appeared at the ED's office around 11 a.m. -- within an hour after a city court extended the interim protection to him from arrest till July 10 in connection with the case after directing him to join the probe whenever required. It was the first time when the senior Congress leader joined the probe in the case. The questioning is part of ED investigation in a money laundering case registered in 2017 against Chidambaram's son Karti Chidambaram in the Aircel-Maxis case. The Total Investment & Insurance Solutions 

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)