News Live: P Chidambaram slams Centre for reducing rates for small savings schemes
This blog will keep track of key global and local developments impacting business and markets through the day. Important local and global political developments will also find resonance here.
P Chidambaram slams Centre for reducing rates for small savings instruments
Senior Congress leader P Chidambaram has slammed the Narendra Modi government for reducing interest rates for small savings instruments and scrapping the 8% Government Savings Bonds, saying the move was a "severe blow" to the middle class. In a series of tweets on Monday, the former Union Finance and Home Minister said the rate reduction comes at a time when inflation is rising, which is a double whammy for the middle class.
"GoI 8% taxable bonds have been the safe harbour of the middle class, especially retirees and senior citizens, since 2003. Government has taken away their only safety net (sic). Modi government scraps 8% taxable bonds dealing a severe blow to the middle class. How will the risk-averse average citizen save?," he tweeted.
Chidambaram wondered whether the government has been pushing people into the stock market and mutual funds. "For whose benefit? Government has a duty to explain. Government owes a duty to provide its citizens one safe and risk free instrument for savings. Taking the only instrument away is a deplorable act," he tweeted.
Jan 02, 08:57 AM (IST)
The first sunrise of 2018 as seen from Bhayandar Chowpatti, in Mumbai on Monday. PTI
Jan 02, 08:49 AM (IST)
RBI deadline for 2nd NPA list: Banks still in process of filing 25 of 28 accounts in NCLT
Even as RBI’s December end deadline for referring stressed firms to the insolvency court is past, bankers are still in process of filing bankruptcy proceedings in 25 of the likely 28 non-performing asset (NPA) accounts, reports Moneycontrol News. While the NPA clean-up exercise continues, the cumbersome out-of-court resolution processes to be completed before December 13 delayed the filings by a few days.
Jan 02, 08:38 AM (IST)
Asia shares reach decade top on China data, dollar in doldrums
Asian shares scaled a decade peak on Tuesday after a survey of Chinese manufacturing proved surprisingly upbeat, while the euro lurked within striking distance of its 2017 top against an ailing dollar. Sentiment was also helped by news that North Korea had offered an olive branch to South Korea, with Kim Jong Un saying he was “open to dialogue” with Seoul.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.5% to heights last visited in 2007, having risen by one-third in value last year. Japan’s Nikkei was closed for a holiday but E-Mini futures for the S&P 500 edged up 0.15%. Shanghai blue chips climbed 1% after the Caixin index of Chinese industry rose to a four-month high of 51.5 in December, confounding forecasts for a decline. The SGX Nifty is trading mildly lower at 10,523.
Jan 02, 08:33 AM (IST)
China Dec factory growth quickens to 4-month high but confidence subdued
Growth in China’s manufacturing sector unexpectedly picked up to a four-month high in December as factories cranked up production to meet a surge in new orders, a private business survey showed on Tuesday. The Caixin/Markit Manufacturing Purchasing Manager’s Index (PMI) rose to 51.5 last month, from 50.8 in November.
Jan 02, 08:20 AM (IST)
Oil marks highest January opening price since 2014
Oil prices had their highest January opening since 2014 on Tuesday, supported by ongoing supply cuts led by OPEC and Russia as well as strong demand. Only rising US production, which is on the verge of breaking through 10 million barrels per day (bpd), is somewhat hampering the outlook into 2018.
US West Texas Intermediate (WTI) crude futures CLc1 were at $60.29 a barrel at 06:49 am, down 13 cents, or 0.2%, from their last settlement of 2017, but starting the year above $60 a barrel for the first time since 2014. Brent crude futures LCOc1 - the international benchmark for oil prices - were at $66.79 a barrel, down 8 cents, or 0.1%, since their last close of 2017. It is also the first time since 2014 that Brent opened a year above $60 a barrel.
Jan 02, 08:14 AM (IST)
Maruti, Honda post double digit sales growth in December
Auto majors Maruti Suzuki India (MSI) and Honda Cars India (HCIL) posted robust sales of passenger vehicles in the domestic market in December, ending 2017 with a double-digit growth. On the other hand, Hyundai Motor India reported a marginal increase in domestic sales last month and utility vehicle major Mahindra & Mahindra (M&M) saw a decline of 7% YoY in its domestic passenger vehicle sales last month.
The country's largest carmaker, MSI, said its domestic sales were at 1,19,286 units, up 12.1%, from 1,06,414 in December 2016. The sales were mainly driven by compact segment, comprising Swift, Dzire and Baleno, which jumped by 23.2% to 53,336 units last month.
Similarly, HCIL reported a 26% jump in its domestic sales at 12,642 units in December. It had sold 10,071 units in December 2016.
Hyundai Motor India's domestic sales, however, rose marginally to 40,158 units last month as compared to 40,057 units in December 2016.
M&M said sales of its passenger vehicles, including Scorpio, XUV500, Xylo, Bolero and Verito, were down 7% to 15,543 units compared to 16,799 units in December 2016.
In the two wheeler sector, TVS Motor Company reported a 39% increase in total sales at 2,56,909 units in December. It had sold a total of 1,84,944 units in the similar month of 2016.
Jan 02, 08:03 AM (IST)
Jan 02, 07:58 AM (IST)
Nifty snaps 10,450-level, slips 95 pts on Jan 1
The Nifty slipped by 95 points on Monday following fag-end selling in auto, financial service, banking, IT, energy, FMCG and metal sectors. In a choppy trade, the Nifty traded near flat-line most of the session in the absence of any definite trigger as financial markets across the globe closed for New Year holiday. It moved in small bouts of buying and selling activity, the final hour trade saw emergence of profit-booking in recent gainers.
The Nifty opened higher at 10,531.70 and moved in a range of 10,537.85 and 10,423.10 before ending at 10,435.55, down 95.15 points, or 0.9%, from its previous close. It saw an intra-day movement of about 114.75 points. On the sectoral front, auto fell by 0.99%, financial service 0.97%, bank 0.87%, IT 0.86%, private bank 0.84%, energy 0.77%, FMCG 0.62%, PSU bank 0.59% and metal 0.53%. However, realty rose by 0.23%.
Major index gainers were Indiabulls Housing Finance, Coal India, Wipro, Sun Pharma, Cipla, Indian Oil Corporation, Larsen & Toubro and Power Grid Corporation of India. Losers included Bharti Infratel, Tata Consultancy Services, Bosch, Bajaj Finance, Bharat Petroleum Corporation, Tata Motors, Hindustan Unilever and Oil and Natural Gas Corporation.
Jan 02, 07:49 AM (IST)
Rupee kicks off 2018 with a bang, revisits five-month high
Starting the New Year on a highly bullish note, the rupee surged ahead to close at a fresh five-month high of 63.68 a dollar, gaining 19 paise against its US counterpart. This is the highest closing for the home currency since August 8 last year when it had settled at 63.63. Continuing its winning streak, the rupee has strengthened by a solid 47 paise in last three sessions.
Frantic dollar unwinding by banks and exporters in the face of extremely bearish sentiment for the greenback overseas largely supported the big rupee upmove despite a fall in local stocks and growing concerns with regard to fiscal deficit. Expectations of robust capital inflows into the country on the back of relevant economic policy measures also kept forex market undertone highly buoyant.
The rupee had risen almost 6% against the dollar in 2017 driven by strong inflows into capital markets. At the Interbank Foreign Exchange (forex) market, the domestic unit opened a tad higher at 63.85 against the last weekend level of 63.87 and traded in a narrow range. But, later breaking the momentum trading, it shot up to hit an intra-day high of 63.64 in mid-afternoon deals before winding up the strong session with a solid 19 paise gain at 63.68.
Jan 02, 07:43 AM (IST)
Retail inflation for industrial workers up at 3.97% in Nov'17
Retail inflation for industrial workers rose to 3.97% in November 2017 mainly due to surge in prices of food items, kerosene and cooking gas. "The year-on-year inflation measured by monthly CPI-IW (Consumer Price Index-Industrial Workers) stood at 3.97% for November 2017 as compared to 3.24% for the previous month (October 2017) and 2.59% during the corresponding month (November 2016) of the previous year," the Labour Ministry said in a statement.
According to the statement, food inflation stood at 3.91% in November against 2.26% of the previous month (October 2017) and 1.66% during the corresponding month (November 2016) of the previous year. The All-India CPI-IW for November increased by 1 point and pegged at 288. On one-month percentage change, it increased by 0.35% between October and November, when compared with the decrease of 0.36% in the corresponding months of last year.
Jan 02, 07:33 AM (IST)
Core sectors' growth hits over 1-yr high of 6.8% in Nov
Eight core sectors expanded at the fastest pace in more than a year at 6.8% in November 2017 on account of robust performance in segments like refinery, steel and cement, official data showed. The output growth for the month under review is highest since October 2016, when these core sectors had witnessed 7.1% rise.
These eight industries - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - had witnessed a growth of 3.2% in November 2016. The output of refinery products, steel and cement rose by 8.2%, 16.6% and 17.3% cent, respectively on an annual basis in November 2017, according to the data released by the Commerce and Industry Ministry.
Crude oil and natural gas output too registered a positive growth during the month under review. On the other hand, coal output growth rate recorded a negative growth during the month. Cumulatively, growth in the eight core sectors during April-November this fiscal slowed to 3.9% as against 5.3% in the same period last fiscal.
Jan 02, 07:26 AM (IST)
Thermax wins Rs 327cr order for co-generation power plant
Thermax Group said it has concluded Rs 327 crore order from a public sector company based in Western India for its upcoming chemical plant. The project is for a BTG (boiler turbine generator) package on engineering, procurement and construction basis for their captive co-generation power plant of 2X65mw capacity, a statement said.
highlights
P Chidambaram slams Centre for reducing rates for small savings instruments
Senior Congress leader P Chidambaram has slammed the Narendra Modi government for reducing interest rates for small savings instruments and scrapping the 8% Government Savings Bonds, saying the move was a "severe blow" to the middle class. In a series of tweets on Monday, the former Union Finance and Home Minister said the rate reduction comes at a time when inflation is rising, which is a double whammy for the middle class.
"GoI 8% taxable bonds have been the safe harbour of the middle class, especially retirees and senior citizens, since 2003. Government has taken away their only safety net (sic). Modi government scraps 8% taxable bonds dealing a severe blow to the middle class. How will the risk-averse average citizen save?," he tweeted.
Chidambaram wondered whether the government has been pushing people into the stock market and mutual funds. "For whose benefit? Government has a duty to explain. Government owes a duty to provide its citizens one safe and risk free instrument for savings. Taking the only instrument away is a deplorable act," he tweeted.
RBI deadline for 2nd NPA list: Banks still in process of filing 25 of 28 accounts in NCLT
Even as RBI’s December end deadline for referring stressed firms to the insolvency court is past, bankers are still in process of filing bankruptcy proceedings in 25 of the likely 28 non-performing asset (NPA) accounts, reports Moneycontrol News. While the NPA clean-up exercise continues, the cumbersome out-of-court resolution processes to be completed before December 13 delayed the filings by a few days.
Oil marks highest January opening price since 2014
Oil prices had their highest January opening since 2014 on Tuesday, supported by ongoing supply cuts led by OPEC and Russia as well as strong demand. Only rising US production, which is on the verge of breaking through 10 million barrels per day (bpd), is somewhat hampering the outlook into 2018.
US West Texas Intermediate (WTI) crude futures CLc1 were at $60.29 a barrel at 06:49 am, down 13 cents, or 0.2%, from their last settlement of 2017, but starting the year above $60 a barrel for the first time since 2014. Brent crude futures LCOc1 - the international benchmark for oil prices - were at $66.79 a barrel, down 8 cents, or 0.1%, since their last close of 2017. It is also the first time since 2014 that Brent opened a year above $60 a barrel.
Maruti, Honda post double digit sales growth in December
Auto majors Maruti Suzuki India (MSI) and Honda Cars India (HCIL) posted robust sales of passenger vehicles in the domestic market in December, ending 2017 with a double-digit growth. On the other hand, Hyundai Motor India reported a marginal increase in domestic sales last month and utility vehicle major Mahindra & Mahindra (M&M) saw a decline of 7% YoY in its domestic passenger vehicle sales last month.
The country's largest carmaker, MSI, said its domestic sales were at 1,19,286 units, up 12.1%, from 1,06,414 in December 2016. The sales were mainly driven by compact segment, comprising Swift, Dzire and Baleno, which jumped by 23.2% to 53,336 units last month.
Similarly, HCIL reported a 26% jump in its domestic sales at 12,642 units in December. It had sold 10,071 units in December 2016.
Hyundai Motor India's domestic sales, however, rose marginally to 40,158 units last month as compared to 40,057 units in December 2016.
M&M said sales of its passenger vehicles, including Scorpio, XUV500, Xylo, Bolero and Verito, were down 7% to 15,543 units compared to 16,799 units in December 2016.
In the two wheeler sector, TVS Motor Company reported a 39% increase in total sales at 2,56,909 units in December. It had sold a total of 1,84,944 units in the similar month of 2016.
Retail inflation for industrial workers up at 3.97% in Nov'17
Retail inflation for industrial workers rose to 3.97% in November 2017 mainly due to surge in prices of food items, kerosene and cooking gas. "The year-on-year inflation measured by monthly CPI-IW (Consumer Price Index-Industrial Workers) stood at 3.97% for November 2017 as compared to 3.24% for the previous month (October 2017) and 2.59% during the corresponding month (November 2016) of the previous year," the Labour Ministry said in a statement.
According to the statement, food inflation stood at 3.91% in November against 2.26% of the previous month (October 2017) and 1.66% during the corresponding month (November 2016) of the previous year. The All-India CPI-IW for November increased by 1 point and pegged at 288. On one-month percentage change, it increased by 0.35% between October and November, when compared with the decrease of 0.36% in the corresponding months of last year.
Core sectors' growth hits over 1-yr high of 6.8% in Nov
Eight core sectors expanded at the fastest pace in more than a year at 6.8% in November 2017 on account of robust performance in segments like refinery, steel and cement, official data showed. The output growth for the month under review is highest since October 2016, when these core sectors had witnessed 7.1% rise.
These eight industries - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - had witnessed a growth of 3.2% in November 2016. The output of refinery products, steel and cement rose by 8.2%, 16.6% and 17.3% cent, respectively on an annual basis in November 2017, according to the data released by the Commerce and Industry Ministry.
Crude oil and natural gas output too registered a positive growth during the month under review. On the other hand, coal output growth rate recorded a negative growth during the month. Cumulatively, growth in the eight core sectors during April-November this fiscal slowed to 3.9% as against 5.3% in the same period last fiscal.
P Chidambaram slams Centre for reducing rates for small savings instruments
Senior Congress leader P Chidambaram has slammed the Narendra Modi government for reducing interest rates for small savings instruments and scrapping the 8% Government Savings Bonds, saying the move was a "severe blow" to the middle class. In a series of tweets on Monday, the former Union Finance and Home Minister said the rate reduction comes at a time when inflation is rising, which is a double whammy for the middle class.
"GoI 8% taxable bonds have been the safe harbour of the middle class, especially retirees and senior citizens, since 2003. Government has taken away their only safety net (sic). Modi government scraps 8% taxable bonds dealing a severe blow to the middle class. How will the risk-averse average citizen save?," he tweeted.
Chidambaram wondered whether the government has been pushing people into the stock market and mutual funds. "For whose benefit? Government has a duty to explain. Government owes a duty to provide its citizens one safe and risk free instrument for savings. Taking the only instrument away is a deplorable act," he tweeted.
The first sunrise of 2018 as seen from Bhayandar Chowpatti, in Mumbai on Monday. PTI
RBI deadline for 2nd NPA list: Banks still in process of filing 25 of 28 accounts in NCLT
Even as RBI’s December end deadline for referring stressed firms to the insolvency court is past, bankers are still in process of filing bankruptcy proceedings in 25 of the likely 28 non-performing asset (NPA) accounts, reports Moneycontrol News. While the NPA clean-up exercise continues, the cumbersome out-of-court resolution processes to be completed before December 13 delayed the filings by a few days.
Asia shares reach decade top on China data, dollar in doldrums
Asian shares scaled a decade peak on Tuesday after a survey of Chinese manufacturing proved surprisingly upbeat, while the euro lurked within striking distance of its 2017 top against an ailing dollar. Sentiment was also helped by news that North Korea had offered an olive branch to South Korea, with Kim Jong Un saying he was “open to dialogue” with Seoul.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.5% to heights last visited in 2007, having risen by one-third in value last year. Japan’s Nikkei was closed for a holiday but E-Mini futures for the S&P 500 edged up 0.15%. Shanghai blue chips climbed 1% after the Caixin index of Chinese industry rose to a four-month high of 51.5 in December, confounding forecasts for a decline. The SGX Nifty is trading mildly lower at 10,523.
China Dec factory growth quickens to 4-month high but confidence subdued
Growth in China’s manufacturing sector unexpectedly picked up to a four-month high in December as factories cranked up production to meet a surge in new orders, a private business survey showed on Tuesday. The Caixin/Markit Manufacturing Purchasing Manager’s Index (PMI) rose to 51.5 last month, from 50.8 in November.
Oil marks highest January opening price since 2014
Oil prices had their highest January opening since 2014 on Tuesday, supported by ongoing supply cuts led by OPEC and Russia as well as strong demand. Only rising US production, which is on the verge of breaking through 10 million barrels per day (bpd), is somewhat hampering the outlook into 2018.
US West Texas Intermediate (WTI) crude futures CLc1 were at $60.29 a barrel at 06:49 am, down 13 cents, or 0.2%, from their last settlement of 2017, but starting the year above $60 a barrel for the first time since 2014. Brent crude futures LCOc1 - the international benchmark for oil prices - were at $66.79 a barrel, down 8 cents, or 0.1%, since their last close of 2017. It is also the first time since 2014 that Brent opened a year above $60 a barrel.
Maruti, Honda post double digit sales growth in December
Auto majors Maruti Suzuki India (MSI) and Honda Cars India (HCIL) posted robust sales of passenger vehicles in the domestic market in December, ending 2017 with a double-digit growth. On the other hand, Hyundai Motor India reported a marginal increase in domestic sales last month and utility vehicle major Mahindra & Mahindra (M&M) saw a decline of 7% YoY in its domestic passenger vehicle sales last month.
The country's largest carmaker, MSI, said its domestic sales were at 1,19,286 units, up 12.1%, from 1,06,414 in December 2016. The sales were mainly driven by compact segment, comprising Swift, Dzire and Baleno, which jumped by 23.2% to 53,336 units last month.
Similarly, HCIL reported a 26% jump in its domestic sales at 12,642 units in December. It had sold 10,071 units in December 2016.
Hyundai Motor India's domestic sales, however, rose marginally to 40,158 units last month as compared to 40,057 units in December 2016.
M&M said sales of its passenger vehicles, including Scorpio, XUV500, Xylo, Bolero and Verito, were down 7% to 15,543 units compared to 16,799 units in December 2016.
In the two wheeler sector, TVS Motor Company reported a 39% increase in total sales at 2,56,909 units in December. It had sold a total of 1,84,944 units in the similar month of 2016.
Nifty snaps 10,450-level, slips 95 pts on Jan 1
The Nifty slipped by 95 points on Monday following fag-end selling in auto, financial service, banking, IT, energy, FMCG and metal sectors. In a choppy trade, the Nifty traded near flat-line most of the session in the absence of any definite trigger as financial markets across the globe closed for New Year holiday. It moved in small bouts of buying and selling activity, the final hour trade saw emergence of profit-booking in recent gainers.
The Nifty opened higher at 10,531.70 and moved in a range of 10,537.85 and 10,423.10 before ending at 10,435.55, down 95.15 points, or 0.9%, from its previous close. It saw an intra-day movement of about 114.75 points. On the sectoral front, auto fell by 0.99%, financial service 0.97%, bank 0.87%, IT 0.86%, private bank 0.84%, energy 0.77%, FMCG 0.62%, PSU bank 0.59% and metal 0.53%. However, realty rose by 0.23%.
Major index gainers were Indiabulls Housing Finance, Coal India, Wipro, Sun Pharma, Cipla, Indian Oil Corporation, Larsen & Toubro and Power Grid Corporation of India. Losers included Bharti Infratel, Tata Consultancy Services, Bosch, Bajaj Finance, Bharat Petroleum Corporation, Tata Motors, Hindustan Unilever and Oil and Natural Gas Corporation.
Rupee kicks off 2018 with a bang, revisits five-month high
Starting the New Year on a highly bullish note, the rupee surged ahead to close at a fresh five-month high of 63.68 a dollar, gaining 19 paise against its US counterpart. This is the highest closing for the home currency since August 8 last year when it had settled at 63.63. Continuing its winning streak, the rupee has strengthened by a solid 47 paise in last three sessions.
Frantic dollar unwinding by banks and exporters in the face of extremely bearish sentiment for the greenback overseas largely supported the big rupee upmove despite a fall in local stocks and growing concerns with regard to fiscal deficit. Expectations of robust capital inflows into the country on the back of relevant economic policy measures also kept forex market undertone highly buoyant.
The rupee had risen almost 6% against the dollar in 2017 driven by strong inflows into capital markets. At the Interbank Foreign Exchange (forex) market, the domestic unit opened a tad higher at 63.85 against the last weekend level of 63.87 and traded in a narrow range. But, later breaking the momentum trading, it shot up to hit an intra-day high of 63.64 in mid-afternoon deals before winding up the strong session with a solid 19 paise gain at 63.68.
Retail inflation for industrial workers up at 3.97% in Nov'17
Retail inflation for industrial workers rose to 3.97% in November 2017 mainly due to surge in prices of food items, kerosene and cooking gas. "The year-on-year inflation measured by monthly CPI-IW (Consumer Price Index-Industrial Workers) stood at 3.97% for November 2017 as compared to 3.24% for the previous month (October 2017) and 2.59% during the corresponding month (November 2016) of the previous year," the Labour Ministry said in a statement.
According to the statement, food inflation stood at 3.91% in November against 2.26% of the previous month (October 2017) and 1.66% during the corresponding month (November 2016) of the previous year. The All-India CPI-IW for November increased by 1 point and pegged at 288. On one-month percentage change, it increased by 0.35% between October and November, when compared with the decrease of 0.36% in the corresponding months of last year.
Core sectors' growth hits over 1-yr high of 6.8% in Nov
Eight core sectors expanded at the fastest pace in more than a year at 6.8% in November 2017 on account of robust performance in segments like refinery, steel and cement, official data showed. The output growth for the month under review is highest since October 2016, when these core sectors had witnessed 7.1% rise.
These eight industries - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - had witnessed a growth of 3.2% in November 2016. The output of refinery products, steel and cement rose by 8.2%, 16.6% and 17.3% cent, respectively on an annual basis in November 2017, according to the data released by the Commerce and Industry Ministry.
Crude oil and natural gas output too registered a positive growth during the month under review. On the other hand, coal output growth rate recorded a negative growth during the month. Cumulatively, growth in the eight core sectors during April-November this fiscal slowed to 3.9% as against 5.3% in the same period last fiscal.
Thermax wins Rs 327cr order for co-generation power plant
Thermax Group said it has concluded Rs 327 crore order from a public sector company based in Western India for its upcoming chemical plant. The project is for a BTG (boiler turbine generator) package on engineering, procurement and construction basis for their captive co-generation power plant of 2X65mw capacity, a statement said.