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Emerging markets to gain as US shutdown ends
Industrialists can’t be made scapegoats of suspicion: Ficci
HCL Tech profit up 64%
Merger & Acquisition norms for telecom sector by Nov
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Emerging markets to gain as US shutdown ends
New Delhi, October 17
Emerging market currencies demonstrated the relief by posting gains. The rupee closed the day higher by 60 paise (0.97%) at 61.23 against the US dollar. The stock market too started with positive cues but were weighed down by domestic factors and the Sensex closed down 132 points. Exporters also heaved a sigh of relief with end of the deadlock as US is one of the most important markets. The debt deal provides a four-month reprieve and will need to be resolved again after that deadline. In the 16-day shutdown, credit rating agency Fitch has put the United States on a negative watch due to the debt default crisis. Sahil Kapoor, AVP, Retail Capital Markets, Edelweiss, said for the Indian market, the agreement on the US debt deal removes the negative apprehensions and the hedges that had been maintained would be removed now as the event is behind the markets. Kapoor added there are expectations now that due to the disruption in the US, the Federal Reserve would not begin its process of quantitative easing tapering by the end of the year as was expected earlier and may happen next year which would provide a boost to emerging markets and their currencies. However, he added that markets have to watch for the impact of the shutdown on US GDP growth and world GDP as almost 0.5% impact on the US GDP is expected. In addition, the US market will release a lot of data after the shutdown is over, including jobs data, which may impact global markets. Analysts expect the rupee will strengthen as the US tapering gets delayed which will also be positive for the Indian economy. However, there is also a view that foreign inflows which were coming to the emerging markets due to the US shutdown may head back. End of the US fiscal crisis has come as a big relief to the global trade since any more prolonging of the deadlock would have had a crippling effect on the Indian exporters who depend the most on the American market, EEPC chairman Anupam Shah said today. "With over $36 billion of exports (fiscal 2012-13), the US is India's second biggest export destination in terms of country-wise ranking. Any disruption in the US, particularly in the all-important financial markets resulting from the political crisis, would have led to recession in the world's largest economy. Like most other countries, that would have been disastrous for India's exports, which have recently started looking up," Shah said. Rupee gains most in two weeks
Mumbai: The rupee had its biggest gain in two weeks, rising 61 paise to 61.23 against the dollar on Thursday, after US lawmakers reached a deal to end the government shutdown and temporarily avoid a debt
default. Fresh dollar sales by exporters amid sustained capital inflows also boosted sentiment, helping the local currency to end two days of losses. |
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Industrialists can’t be made scapegoats of suspicion: Ficci
New Delhi, October 17 Without mentioning names, Ficci president Naina Lal KIdwai said, “We find that cases are being registered against top bureaucrats and industry icons. It goes without saying that such developments dent the national psyche and also dampen investor confidence, both domestic and foreign. Capable and highly regarded officers and business leaders cannot be made scapegoats of mere suspicion and misconstrued actions". Several businessmen and former bureaucrats have slammed the FIR filed against Birla and Parakh. There is a growing feeling that such instances are scaring business and vitiating the already bleak investment scenario as General Elections are due within months and industry is preferring to wait. The recent episode has Central ministers rushing to express concern as it would lead to a halt in decisions in the government and scare industry away. Ficci also pointed to the ‘trust deficit’ issue which business has been citing as a reason why investments are not happening. “There is also a feeling that with repeated episodes of a trust deficit between industry and government, the business sentiment and the investment environment would be vitiated and India could slip further from the growth trajectory that is so necessary for us to maintain”, Kidwai said. Commerce and Industry Minister Anand Sharma also expressed concern over the impact of the FIR on the investment scenario and functioning of the bureaucracy. There is a need to distinguish between ‘bona fide’ and ‘improper’ decisions so that bureaucrats are not punished after retirement, Sharma said today, expressing concerns over possible fallout of FIR in the coal blocks allocation. Corporate Affairs Minister Sachin Pilot has expressed the view that this would hurt investor sentiment. "A distinction must be made between bona fide decision and decisions which are improper. Retired civil servants who have taken bona fide decisions during their tenure do not deserve punishment post retirement”, he said. Kidwai called for the need for decision making in the government. "We also need to bring back a regime of courageous decision making. Decisions made in the interest of progress, when made in a transparent manner with no personal gains and without mala fide interest are critical for growth”, she added.
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New Delhi, October 17 Axis Bank
Axis Bank on Thursday reported a 21.2% increase in net profit to Rs 1,362.31 crore for the second quarter ended September 30,
2013. The total income increased to Rs 9,375.08 crore during the quarter from Rs 8,280.29 crore over the same period last year. — PTI |
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Merger & Acquisition norms for telecom sector by Nov
New Delhi, October 17 The M&A guidelines were to be released today but will now be released in about next two weeks, Sibal said. Talking to the media on the sidelines of Assocham's India Knowledge Summit here, he said, "It will take two weeks more". The minister had last month said the guidelines would be out by October 15. The guidelines would come as a major relief for the sector and may lead to consolidations besides some takeovers as well. Reports have suggested that as per the draft M&A guidelines, incumbent service providers participating in consolidation activities will have to convert their old licence to the Unified Licence regime. In the revised guidelines, a DoT panel on M&A has proposed one-year time for completing transaction and exemption from cross holding norms that prohibits incumbent companies from having more than 9.9% stake in competing firms. It has also been suggested to reduce the process for the M&As as many telecom service providers are listed on stock exchanges and have to go through a long process to complete the deal. Incidentally, under the norms for new Unified Licence regime announced last week, operators are barred from holding any stake in a rival company. The guidelines include expeditious approval to merger proposals of telecom companies if their combined market share is up to 35%. The DoT will seek telecom regulator TRAI's recommendation in case the resultant entity has 35-60% market share.
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Windows unveils 8.1 OS globally Samsung unveils cheaper phones Gold, silver surge Kobo enters
Indian market
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The US debt deal which was signed at the last minute averted a debt default which would have thrown global markets into an unprecedented turmoil and affected global GDP and
trade.
