India Insight

Markets this week: ITC, Infosys top Sensex losers

By Sankalp Phartiyal and Ankush Arora

Brokers trade on their computer terminals at a stock brokerage firm in Mumbai May 13, 2014. REUTERS/Danish Siddiqui/FilesThe benchmark BSE Sensex fell in three of five sessions this week, as higher crude prices hurt sentiment and the cabinet’s decision to delay a hike in gas prices disappointed investors. Caution also prevailed ahead of the June derivatives’ expiry on Thursday and fears of more violence in Iraq prompted investors to pare positions.

A Reuters poll on Thursday forecast the 30-share Sensex hitting 27,750 points by the end of December, following a brief correction after the budget.

For the week, the BSE Sensex ended 0.02 percent lower. Investors are now awaiting the new government’s first budget on July 10.

While investors remain hopeful of a pre-budget rally, the progress of the ongoing monsoon is key. Monsoon rains, which continue to be below average, are expected to revive early next month.

In its biannual Financial Stability Report on Thursday, the Reserve Bank said prospects of India’s economic recovery look bright following the formation of a stable government.

Markets this week: Sensex gains 2.7 percent, Maruti surges 11 percent

By Ankush Arora and Sankalp Phartiyal

The BSE Sensex rose 2.7 percent in the week ending September 20, as foreign inflows and the U.S. Federal Reserve’s surprise decision to continue with its bond-buying programme boosted market sentiment.

The benchmark index, which is now up 9 percent in September and has gained for four consecutive weeks, touched its highest level since November 2010 on Thursday after the Fed’s surprising move. Analysts said the U.S. central bank’s decision could lead to a resurgence of portfolio flows into emerging markets such as India.

On Friday, the Reserve Bank of India stunned markets by raising the repo rate by 25 basis points (bps), but some of the recent rupee support measures were trimmed. The Indian currency gained 2 percent in the last five sessions and ended the week at 62.23/24 per dollar.

Bharti Airtel, NTPC top Sensex losers this week

By Sankalp Phartiyal and Ankush Arora

The BSE Sensex recovered on Thursday and Friday after the index lost around 700 points in the first three trading sessions of the week. However, the index still ended down 0.4 percent as a weak rupee, concerns over foreign flows and uncertainty over the end of the U.S. Fed’s stimulus plan kept investors on the edge.

As a worsening current account deficit and inflation loomed large, the rupee hit fresh record lows below 65 per dollar in the week ending Aug. 23. However, gold prices and bonds rallied.

Fitch Ratings has warned Asia’s third-largest economy of a downgrade if the government fails to soothe tensions in the financial market. JP Morgan and HSBC downgraded Indian shares to ‘neutral’.

from DealZone:

No bruised egos as Bharti-MTN redial once again

Exactly one year ago, squabbles over control forced Bharti Airtel and MTN to ditch their hope of forming a global telecoms group, but both emerging markets-focused companies are back on the negotiating table to thrash out a $61 billion merger.

What's changed?

MTNFor a start, both firms are now publicly talking about a detailed structure for the combined entity, something that was missing last time.

As part of an initial deal worth more than $23 billion unveiled on Monday, Bharti will pay in cash and shares for 49 percent of MTN, while MTN pays cash and stock for an effective 36 percent stake in the Indian firm. Previous merger talks collapsed when the South African firm proposed a new structure that would have seen Bharti become an MTN unit.

The iPhone 3G dilemma: To buy or not to buy?

iPhone 3GWell, if you use your mobile phone just to make calls, send text messages or click photographs — the iPhone 3G is not for you.But in case you are a tech freak who loves tinkering with gadgets, this Apple smartphone might be your dream come true.

Downloadable GPS, games, AIM, Facebook on the go and of course 24-hour access to the iTunes store are just some of its pluses, but at 30,000 rupees (give or take a few hundred) for the 8GB model, the iPhone certainly doesn’t come cheap.

Slight problem though. Added applications are great on a phone that provides basic features like message and business card forwarding and video recording.

  •