Monday, September 24, 2012
NIFTY FUTURE BELOW @ 5650
Wednesday, September 12, 2012
NSE cuts transaction fees from 1 October
Mumbai: National Stock Exchange of India Ltd (NSE) said on Wednesday its capital market trading members will be allowed to set off their annual subscription charges of Rs.1,00,000 against transaction costs, starting 1 October. The move comes after new entrant MCX-SX Ltd announced transaction charges up to 50% lower than that of NSE.
“Members will be able to set off this annual subscription charge of Rs.1,00,000 per annum against their transaction charges. That is, annual subscription charges are no longer a fixed overhead. In the futures and options segment, advance transaction charges are currently being offset against transaction charges of the current year. Whatever is not utilised can be carried forward till they utilise the same,” NSE said in a release.
NSE charges Rs.3.25 for every Rs.1,00,000 worth of trade till Rs.1,250 crore in its cash segment. As the turnover goes up, the charges progressively come down.
In a recent announcement, MCX-SX said it will levy a transaction charge of Rs.2 per Rs.100,000 for the firstRs.1,000-crore trade. The charges come down as the turnover goes up.
Rival BSE Ltd, Asia’s oldest bourse, charges between Rs.2.25 and Rs.3.25 per Rs.1,00,000 in the cash segment. Staff writer
Flat IIP growth: More bad news to follow?
So far, the perception has been that growth has bottomed out and things will start looking a lot better in the second half of the fiscal.
The latest index of industrial production print for July (0.1 per cent) somewhat challenges that theory.
Trend suggests that the weakness may continue in the coming months, too, as industrial production has been declining on a month-on-month basis for four out of the last five months and for nine months over the last one year.
This implies a sustained weakness in industrial production.
Though the index may show single digit growth in the coming months, that would be merely statistical in nature due to last year's low base.
Industrial growth this year has been coming down on a month-on-month basis.
In July, while the electricity generation sector declined 1.1 per cent month-on-month, the manufacturing sector's growth was up 1.7 per cent month-on-month.
Emkay Global's Dhananjay Sinha believes that the manufacturing sector will not see a turnaround soon as credit flow to the sector will also slow down as banks will start deleveraging soon to bring down their credit-deposit ratio.
A sustained slowdown in industrial production in the second quarter of FY13 will have implications for gross domestic product growth as well.
Mole Hau of BNP Paribas says: "India's quarterly GDP data are estimated using the monthly index of industrial production and industrial value-added is worth a combined 19 per cent of Indian GDP."
Morgan Stanley's Upasana Chachra and Chetan Ahya expect FY13 growth to touch a 10-year low of 5.1 per cent on poor agriculture output, sluggish growth outlook in the developed markets and weakness in the services sector.
In the event of continued inaction from the government, they see the risk of "deeper macro stress" increasing.
That could entail further significant deceleration in GDP growth to 4.3 per cent in FY13, says Morgan Stanley.
While economists are unanimous on their prognosis on GDP and industrial growth, they are divided on how the central bank will respond to the situation.
Indranil Sen Gupta, India economist at Bank of America-Merrill Lynch is expecting a 25 basis points cut in cash reserve ratio on September 17 as growth is likely to slow below the Reserve Bank of India's 6.5 per cent forecast.
Morgan Stanley believes that the challenging inflation outlook coupled with persistent high fiscal deficit will not provide comfort to Reserve Bank of India to reduce policy rates in the next monetary policy review.
Siddhartha Sanyal of Barclays maintains that the rest of FY13 will see another 100 basis points repo rate cuts.
Business standard news
Friday, August 24, 2012
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Tuesday, August 21, 2012
Markets: Is this the lull before the storm?
Is this the lull before the calm or the lull before the storm? For the past fortnight, foreign currency markets have been trading flat helped by a relatively short supply of market-moving news, data or policy announcements.
Given the way global financial markets have behaved over the past couple of years, it is perhaps rational to expect this brief period of respite to presage another period of extreme volatility.
Besides, it doesn't take much effort to identify the risks that could trigger another episode of stress.
Besides, it doesn't take much effort to identify the risks that could trigger another episode of stress.
For one thing, Greece is back on the radar screen since there are growing doubts about its ability to implement the reforms on which its financial aid is contingent. First it was the International Monetary Fund (IMF) that expressed its concerns and now it is Germany.
As German Deputy Chancellor Philipp Rosler put it somewhat bluntly last week, "Germany has reached the limit of its capacity and might not provide additional aid to Greece."
Thus, the prospect of "Grexit" from the European currency union looms again. Greece, incidentally, is due to redeem $3.2 billion of its sovereign debt today. Any glitch in this process could set the markets on edge again.
A glitch, however, seems unlikely given the fact that Greece successfully picked up the required amount from the market through treasury bill auctions last week.
The real risk of a blow-out in the markets could come in September when the troika (IMF, European Union and the European Central Bank, or ECB) review the Mediterranean economy's fiscal health next month.
The US "fiscal cliff", a combination of automatic expenditure reductions and tax increases that add up to a staggering four per cent of GDP, looms towards the end of the year.
While it seems almost certain at this stage that US lawmakers will pass laws to prevent this, it remains to be seen how much partisan sparring precedes a resolution. If markets see an impasse, it could trigger a massive risk-off episode.
Then there is China whose headline macro data have not failed to disappoint over the last few months. Going forward, if there are indications that growth for 2012 is likely to drop below the 7.5 to eight per cent range, markets will panic.
China's demand, we need to remind ourselves, is propping up a whole bunch of things ranging from Germany's car and engineering goods exports to the demand for global natural resources.
A change in political regime is also likely towards the end of the year and that in itself (given the way markets are known to react to political change) could set off a "risk-off" episode.
That said, it would be remiss on our part to ignore some of the more positive developments over the past few weeks. Markets, for one thing, reacted with remarkable maturity to the disappointment over the ECB's policy announcement on August 2.
The policy, to put things in perspective, came in the wake of (what the market at least perceived to be) a commitment from ECB President Mario Draghi to take radical steps to stymie the rise in Spanish and Italian bond yields.
From what the polls showed on the eve of the policy, the markets were factoring in everything ranging from a cut in the policy rate to an aggressive programme of sovereign purchases. The actual policy delivered nothing.
Research houses – including some of the American investment banking heavyweights – had predicted virtual mayhem in the markets if the ECB disappointed.
Yet financial markets responded with surprising equanimity to the letdown, trading flat and in some cases, consolidating rather than shedding gains.
BUSINESS STANDARD NEWS
Diesel price hike likely in two months: C Rangarajan
New Delhi: To add to the woes of the common man who is already reeling under rising prices and blinding inflation, the government has pitched in with a diesel price hike that is likely to come into effect in two months.
Prime Minister's Economic Advisory Council Chairman C Rangarajan has said that the hike can be expected any time in the next two months.
He, however, added that it was the Council's recommendation and that it wasn't binding on the government.
The final decision rests with the government," Rangarajan said.
IBN LIVE NEWS
Sensex, Nifty rangebound; Infosys up, Hindalco falls most
Markets were range bound, failing to live up to early expectations, when the Sensex and Nifty had seen strong buying interest. A positive opening in European markets failed to drive stocks higher in the afternoon session.
At 12.35 p.m., the Sensex traded 67 points or 0.4 per cent higher at 17,758 while the Nifty advanced 16 points to 5,383.
IT stocks continued to outperform other groups of stocks on the back of gains in Infosys. However, the stock traded off the day's high, up 2.2 per cent. Other frontline IT stocks like TCS and Wipro also traded higher.
Infosys saw buying interest after a US court threw out whistleblower Jack Palmer's harassment suit against the company.
30 of the 50 stocks traded higher on the Nifty index. Mortgage major HDFC was the top Nifty gainer, up 2.3 per cent followed by realty firm DLF, which gained 2.3 per cent. Infra lender IDFC and Tata Motors were the other stocks to gain over 2 per cent on the Nifty index.
Maruti Suzuki, India' largest car maker, traded off the day's high, up 0.6 per cent. The company's Manesar plant has opened today after a month of lockout following violent protest by workers.
Among the losers, aluminium maker Hindalco fell the most on the Nifty on news that Odisha's pollution control board had ordered a shutdown of the company's power plant near Hirakud. The stock traded 2.8 per cent lower. Two wheeler major Hero Moto, Tata Steel, refiner BPCL and private lender Axis Bank also traded 1-2 per cent lower.
On the broader BSE 500 index, Reliance Power was among the top traded stocks. It gained 1.5 per cent, bouncing back from the selloff on Friday, when the stock was hammered because of the CAG report on captive coal mines.
The market breadth was even with 50 per cent stocks managing to advance on the broader BSE 500 index.
NDTV PROFIT NEWS
www.marketfutureindia.com
At 12.35 p.m., the Sensex traded 67 points or 0.4 per cent higher at 17,758 while the Nifty advanced 16 points to 5,383.
IT stocks continued to outperform other groups of stocks on the back of gains in Infosys. However, the stock traded off the day's high, up 2.2 per cent. Other frontline IT stocks like TCS and Wipro also traded higher.
Infosys saw buying interest after a US court threw out whistleblower Jack Palmer's harassment suit against the company.
30 of the 50 stocks traded higher on the Nifty index. Mortgage major HDFC was the top Nifty gainer, up 2.3 per cent followed by realty firm DLF, which gained 2.3 per cent. Infra lender IDFC and Tata Motors were the other stocks to gain over 2 per cent on the Nifty index.
Maruti Suzuki, India' largest car maker, traded off the day's high, up 0.6 per cent. The company's Manesar plant has opened today after a month of lockout following violent protest by workers.
Among the losers, aluminium maker Hindalco fell the most on the Nifty on news that Odisha's pollution control board had ordered a shutdown of the company's power plant near Hirakud. The stock traded 2.8 per cent lower. Two wheeler major Hero Moto, Tata Steel, refiner BPCL and private lender Axis Bank also traded 1-2 per cent lower.
On the broader BSE 500 index, Reliance Power was among the top traded stocks. It gained 1.5 per cent, bouncing back from the selloff on Friday, when the stock was hammered because of the CAG report on captive coal mines.
The market breadth was even with 50 per cent stocks managing to advance on the broader BSE 500 index.
NDTV PROFIT NEWS
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