India to move to T+1 settlement from Friday: Here's what it means

 India To Start with T+1 stock settlement from February 25, which means that trade-related settlements must be done within one day of the transaction’s completion.

Currently, trades on the Indian stock exchanges are settled within two days, just like most major markets such as Singapore, Hong Kong, Australia, Japan, and South Korea. Indian exchanges, however, will be moving to T+1 settlement from February 25 in a phased manner. T stands for trade day. Here is the lowdown on what the shorter settlement cycle means:

What is the new T+1 settlement cycle?

T+1 means that trade-related settlements must be done within one day of the transaction’s completion. Trades on Indian stock exchanges are currently settled in two working days after the transaction is completed (T+2). For example, if you buy shares on Wednesday, they will be credited to your Demat account by the next day, which is Thursday. Till now they were getting settled on Friday.

Will it be a gradual transition?

Initially, on the last Friday of February, only 100 stocks that are placed at the bottom according to their market valuation will be placed under the new settlement cycle. After that, 500 more stocks will be added every last Friday of subsequent months, until every stock is placed under the new settlement system…Read More

RBI cuts repo rate by 40bps to 4%, sees contraction in FY21 GDP growth

Catch all the market updates here

Indian markets declined on Friday even as the Reserve Bank of India (RBI) slashed repo rate by 40 basis points (bps) to 4 per cent and maintained the stance ‘accomodative’. Consequently, reverse repo rate now stands at 3.35 per cent from 3.75 per cent earlier. Moreover, RBI Governor Shaktikanta Das said that the GDP growth in FY21 is expected to be in negative territory. READ MORE

Among headline indices, the S&P BSE Sensex slipped 290 points to around 30,630 levels and the Nifty50 index slipped below the 9,050 level. Infosys gained 2 per cent after the class action lawsuit filed against the company in the US was dismissed. Reliance Industries gained 1 per cent after the conglomerate said that KKR would invest Rs 11,367 crore into Jio Platforms for 2.32 per cent equity stake. READ MORE

The trends among Nifty sectoral indices was mixed. Nifty PSU Bank index, up 1.8 per cent, gained the most.

Results today: A total of 25 companies including Alembic Pharmaceuticals, IDFC First Bank, and UPL, are scheduled to announce their March quarter earnings later in the day.

COMMENT :: VK Vijayakumar, chief investment strategist, Geojit Financial Services

RBI, which has been proactive in recent times, has risen to the occasion by advancing the policy meet to cut policy rates by 40bp. Also, the unequivocal statement that monetary policy will continue to be accommodative till growth revives sends positive signals. The fact that the central bank has refrained from giving a GDP growth figure is a reflection of the complexity in giving projections with the present growth models. Extension of the moratorium announced earlier by another 3 months is a relief. A takeaway from the policy announcement is that the stress in the banking sector will continue..Read More

SBI Cards lists 12% below issue price of Rs 755; recovers later

At 10.09 am, SBI Cards was trading at Rs 751 after hitting a high of Rs 754 on the BSE

Markets News: Portions of SBI Cards and Payment Services (SBI Cards) recorded at Rs 661, 12.45 percent underneath its issue cost of Rs 755 on the National Stock Exchange (NSE) on Monday. On the BSE, it opened at Rs 658, 13 percent lower against issue cost. In any case, at 10:09 am, the stock was exchanging at Rs 751, in the wake of hitting a high of Rs 754 on the BSE. A joined around 26 million offers have changed hands on the counter on both the trades up until this point.

The stock saw a frail introduction because of winning economic situation as the vulnerability in regards with the impact of the coronavirus scourge kept on holding financial specialist notion under tight restraints. The benchmark lists Nifty50 and S&P BSE Sensex have declined 16.6 percent since the SBI Card beginning open offer (IPO) opened for membership on March 2, 2020. The records have failed almost 21 percent, since the Visa arm of the State Bank of India (SBI) documented Draft Red Herring Prospectus (DRHP) for its IPO with Sebi on February 26.

Practically all financiers were sure on the underlying open offer (IPO) and some had anticipated up to 60 percent upside from the IPO value scope of Rs 750-755, given its predominant situation in the Visa showcase and solid parentage, SBI Cards is very much set to profit by the rising pattern of computerized installments and online business. SBI Card’s IPO had figured out how to draw in offers worth Rs 2 trillion, despite testing economic situations. The 100-million offer contribution produced near 2.7 billion offers (multiple times). The certified institutional purchasers (QIBs) segment of the IPO was bought in multiple times, trailed by high networth individual (HNI) (multiple times) and investors (25.4 occasions)…

I-T crackdown: Brokers, speculators go under scanner for false exchanges

Conducts searches at over 150 places linked to brokers, investors for alleged tax evasion

Countless merchants and speculators are under the scanner of the annual assessment (I-T) office for supposedly executing fake exchanges illiquid investment opportunities.

As per sources, I-T authorities on Wednesday directed overviews and search tasks at around 150 areas the nation over, including Delhi, Mumbai, Hyderabad, and Kolkata. “We have propelled a test in the issue following data from the market controller about anomalies in the value subordinate portion,” said an assessment official conscious of the improvement. The authority included this was a crisp test dependent on the investigation of certain subordinate agreements both on the BSE and the National Stock Exchange (NSE).

The test covers exchanges of the most recent five years, beginning 2014, and will proceed for a couple of more days, sources said.  The I-T office associates the inclusion with more than 20,000 substances, including exchanging individuals and financial specialists, in the issue, which could have prompted tax avoidance of about Rs 80,000 crore.

Early this year, the Securities and Exchange Board of India (Sebi) exacted an all out punishment of over Rs 55 lakh on nine substances for fake exchanging illiquid investment opportunities of the BSE. The activity had come after the controller led an examination concerning the exchanging action the section from April 2014 to September 2015, subsequent to watching huge scale inversion of exchanges….Read More

YES Bank: World’s worst-performing bank stock posts globe’s biggest surge

Its shares have rallied about 50 per cent — the biggest gain among global peers valued at more than $1 billion — after embattled founder Rana Kapoor was forced to sell his holdings in October

India’s Yes Bank Ltd., the world’s worst-performing lender in 2019, has posted the globe’s biggest gain over the past month.

Its shares have rallied about 50 per cent — the biggest gain among global peers valued at more than $1 billion — after embattled founder Rana Kapoor was forced to sell his holdings in October and a new management team promised fresh capital and lower bad loans. The surge helped pare the annual loss in the Mumbai-based lender’s shares to 63 per cent. Yes Bank rose about 3 per cent as of 9:48 a.m. in Mumbai on Monday, while the main equity index was little changed.

The recovery will be a relief for new Chief Executive Officer Ravneet Gill, who’s been courting investors to revive the bank. India’s billionaire investor Rakesh Jhunjhunwala this month bought shares of Yes Bank, after the lender announced a binding offer from an unidentified global investor to inject $1.2 billion. Gill is rushing to raise funds. Latest results released this month show Yes Bank swung to a loss in the September quarter and its bad-loan ratio rose.“Capital is of utmost importance to the bank and we want the money to be in the bank by December,” Gill told reporters after the results. “Once we get the capital it will run us for 24 months.”

PNB Housing rises 6% as PNB, Carlyle Group plan to offload 51% stake

The stock was up by 6% at Rs 1,269 on Wednesday in intra-day trade, extending its 2% gain in the previous day on the BSE.

 

Shares of PNB Housing Finance were up by 6% at Rs 1,269 per share on Wednesday in intra-day trade, extending their 2% rise in the previous day on the BSE, after the company said that Punjab National Bank (PNB) and the Carlyle Group proposed to sell their stake to the potential acquirers.

“We hereby inform you regarding joint communication received today from Punjab National Bank (PNB) and Quality Investment Holdings (The Carlyle Group) regarding sale of minimum 51 % stake in PNB Housing Finance Limited to the potential acquirers,” PNB Housing Finance said on Tuesday after market hours.(CLICK HERE : PNB SHARE PRICE)

As on date, PNB owns 32.79% and Quality Investment Holdings owns 32.36% of the paid up equity share capital of the Company. The Board of Directors of the Company has been apprised about the same, it added.

Earlier, on May 8, Quality Investment Holdings, an arm of the global private equity giant Carlyle, had sold 8 million shares of PNB Housing Finance, translating into about 4.8% of its equity, for around Rs 10.24 billion through block deals. The Carlyle Group sold shares at an average price of Rs 1,280 per share, data shows.

News source : BS

Shilpa Medicare surges 13% after receiving EIR from USFDA

The stock surged 13% to Rs 434 on the BSE in morning trade after the company said it has received EIR from the US health regulator for it’s both facilities located at Raichur, Karnataka.

 

Shares of Shilpa Medicare have surged by 13% to Rs 434 per share on the BSE in morning trade after the company said that it has received Establishment Inspection Report (EIR) from the US health regulator for both of its facilities located at Raichur, Karnataka.
“Our both active pharmaceutical ingredient (API) manufacturing facilities located at Raichur, Karnataka, received EIR from the US Food and Drug Administration (US FDA),” Shilpa Medicare said in a regulatory filing.

This inspection was carried out between 16th and 19th January, 2018. The inspection has now been closed by USFDA, it added.

On January this year, Shilpa Medicare had announced that the USFDA has completed inspection of Company’s API facilities Unit-I and Unit-II located at Raichur, Karnataka, India with three 483 observations. The Company said it is in the process of submission of corrective and preventive action (CAPA) plan to the regulator within the stipulated timelines in response to the form 483 issued at the end of inspection.

In calendar year 2018, Shilpa Medicare had underperformed the market by falling 38% as compared to 6.4% rise in the S&P BSE Sensex till Tuesday. The stock hit 52-week low of Rs 374 on June 5, 2018 in intra-day trade.(CLICK HERE : SHILPA MEDICARE SHARE PRICE)

At 10:05 am; the stock was trading 10% higher at Rs 424 against 0.09% gain in the benchmark index. The counter has seen multiple fold jump in trading volumes with a combined 492,116 shares changed hands on the BSE and NSE so far.

News Source : BS

TCS gains 3% as Q1 profit beats Street estimate

TCS Q1FY19 CC revenue growth at 4.1% QoQ is a meaningful beat to estimates and is highest in several quarters.

Shares of Tata Consultancy Services (TCS) rose 3% to Rs 1,928 per share on the BSE in early morning trade after the country’s biggest software services exporter posted a better-than-expected rise of about 23.5% year on year (YoY) and 6.3% quarter on quarter (QoQ) in first-quarter (Q1) net profit, helped by strong growth in its banking, financial services and insurance division (BFSI).

TCS has recorded a consolidated net profit of Rs 73.40 billion in April-June 2018 (Q1FY19) versus a profit of Rs 59.45 billion in the same quarter last year. While the revenues at the reported currency grew 15.8% YoY and 6.8% QoQ to Rs 342.61 billion, in constant currency (CC) terms, it rose by 9.3% year-on-year (YoY) and 4.1% sequentially.

Analysts on an average had expected profit of Rs 69.67 billion on revenue of Rs 341.69 billion for the quarter.

“TCS Q1FY19 CC revenue growth at 4.1% QoQ is a meaningful beat to estimates and is highest in several quarters. Revenue recovery has gathered further momentum with a definite growth revival in BFSI and retail verticals. Slowdown in these two verticals had adversely impacted FY18 growth and with the recovery double digit constant currency revenue growth is almost a certainty,” Antique Stock Broking said in a result review.

Overall, FY19 has started on a strong note for TCS. Company will outshine peer group in FY19 with CC revenue growth of ~12% while most of the peer group will grow at mid-single digit. TCS will also report YoY EBIT margin improvement and company has maintained aspirations to achieve 26%-28% EBIT margin range. Robust deal signings in 1QFY19 is after a very strong order booking in 4QFY18, the brokerage firm said with ‘buy’ rating on the stock and 12 month target price of Rs 2,090.(CLICK HERE : TATA COMPANY SHARE PRICE)

“TCS reported an above-expected operating performance in Q1FY19 driven by a beat on both revenue and margins. With a growth recovery in BFSI services in North America, management is confident of sustaining growth momentum in the medium term. Digital revenue growth accelerated for the fifth straight quarter, rising 44.8% YoY in CC terms,” analysts at BOB Capital Markets said in result review.

TCS is our only BUY-rated stock among tier-I players as we believe it is best placed to weather the structural challenges visible in legacy revenue portfolios. We have a Mar’19 target price of Rs 2,190 for the stock, revised from Rs 2,180 earlier as we tweak EPS estimates to factor in the Q1 performance, the brokerage said.

At 09:34 am; TCS was trading 2% higher at Rs 1,917 on the BSE, as compared to 0.11% rise in the S&P BSE Sensex. A combined 4.9 million shares changed hands on the counter on the BSE and NSE so far. The stock had hit an all-time high of Rs 1,930 on Monday, July 9, 2018 on the BSE in intra-day trade.

 News Source : BS

NDTV surges 20% as Sebi orders Vishvapradhan Commercial to make open offer

The stock is locked in upper circuit of 20% at Rs 39 on the BSE in early morning trade on Wednesday.

 

Shares of NDTV are locked in upper circuit of 20% at Rs 39 on the BSE in early morning trade on Wednesday, after the Securities and Exchange Board of India (Sebi) on Tuesday passed an order asking Vishvapradhan Commercial Pvt Ltd (VCPL) to make an open offer for the company.

Till 09:25 am; a combined 160,893 shares changed hands on the counter and there were pending buy orders for 462,932 shares on the BSE and NSE.

“The order noted that VCPL had acquired indirect control through a loan agreement in 2009, which would have necessitated an open offer at the time. The regulator has now asked for this open offer to be made with interest,” Business Standard reported. CLICK HERE FOR COMPANY NEWS

Meanwhile, the Bombay High Court on Tuesday directed the Reserve Bank of India (RBI) to consider the compounding applications filed by news organisation NDTV in a case of alleged violation of the Foreign Exchange Management Act (FEMA).

“The Bombay High Court has today directed the Reserve Bank of India (RBI) to consider the compounding application(s) filed by the Company. The Court has ruled in favour of the writ petition number 2026/2017 filed by NDTV against the RBI and Enforcement Directorate,” NDTV said in a BSE filing on Tuesday.

“NDTV had approached the Bombay High Court against the RBI’s refusal to consider its compounding applications in circumstances where the RBI was relying on the Enforcement Directorate’s unsubstantiated allegations against NDTV. The Bombay High Court has today quashed the directive issued by the Enforcement Directorate to RBI which had prevented the compounding, “ it added.

Read More : NDTV Share Price

Axis Bank cuts savings bank deposits rate to 3.5% on deposits below Rs 50 lakh

Bank to continue to pay 4% interest on deposits of above Rs 50 lakh

economy policy: Private sector lender Axis Bank has reduced interest rate on savings bank accounts by 50 basis points to 3.5 per cent for deposits up to Rs 50 lakh.

However, the bank will continue to pay four per cent interest on deposits of above Rs 50 lakh. The new interest rates will be effective from August 8, Axis Bank said in its filing with the BSE.

Axis Bank’s action follows the decision by State Bank of India (SBI) and Bank of Baroda to reduce rates on savings deposits. SBI was the first bank to cut the savings deposit rate by 50 basis points to 3.5 per cent for deposits up to Rs 1 crore. Bank of Baroda had cut the rate to 3.5 per cent on deposits of up to Rs 50 lakh.

While Kotak Mahindra Bank retained the existing rates of five per cent on savings deposits up to Rs 1 lakh and 6 per cent on deposits between Rs 1 lakh and Rs 1 crore, it reduced the rate on savings deposits of amounts above Rs 1 crore and up to Rs 5 crore from six per cent to 5.5 per cent. The interest rate on deposits of over Rs 5 crores was retained at 5.5 per cent. Karnataka Bank, too, had tweaked the interest rate on savings deposits.

SBI Managing Director Rajnish Kumar had said that it was a choice between increasing MCLR (marginal cost of funds-based lending rate) or reduce the savings bank rates.

A hike in lending rates would have meant an increase in equated monthly instalments (EMIs) for retail, small and medium enterprises, and farm loans. SBI opted to cut savings rate, helping to maintain MCLR at the existing level, he said.