1. Sensex Rises 124 Points, Nifty50 Closes Near Lifetime High
In a highly volatile session, the domestic equity market ended on a positive note with BSE Sensex just 40 points shy from its record high level and Nifty50 closing near its all-time high.
Sensex closed 124 points or 0.39 percent higher at 32,020.89 while Nifty50 closed the day at 9,915.25, up 42 points or 0.42 percent.
The 30-share pack had opened at 32,035.88 and touched an intraday high and low of 32,062.23 and 31,808.93, respectively, as index heavyweights Wipro (up 6.54 percent) and Reliance (up 3.75 percent) hogged the limelight.
(Source: Economic Times)
2. Reliance AGM: Jio Opens New Battlefront, Offers 'Free' 4G Feature Phone
After rattling the telecom market last year with its fourth generation services, Reliance Jio on Friday shook up the sector again with a 4G feature phone, to make inroads in the country’s 500-million customer base.
The Mukesh Ambani-owned firm, which of late has been witnessing slowing customer addition, will give the phone effectively for free to customers, with a three-year contract.
The phone will be sold for a security deposit of Rs 1,500, returnable at the end of three years for a full refund. It is not clear what consumers may do if they want to continue using the phone.
The bundled Jio connection will come with three different usage plans — Rs 24 for two days, Rs 54 for a week, and Rs 153 for a month.
The phone should allow Jio to speed up customer addition, as it will now cater to the mass market. And, add pressure on other telecom operators, now forced to match the rates, which come bundled with the device.
(Source: Business Standard)
3. CAG Audit Finds Half Of IFCI Loans In Violation Of Norms
Government auditor Comptroller and Auditor General on Friday made a strong case for strengthening credit appraisal mechanism by state-owned IFCI, observing that over 50 percent loans audited by it were not as per the general lending policy.
Citing specific examples, the CAG in a report tabled in Parliament, said large amounts of loans were sanctioned to several companies in violation of laws. Referring to a loan issued to Bhushan Steel, the CAG said the amount was sanctioned in violation of the extant general lending policy.
In view of substantial increase in its debt burden as well as huge losses during 2014-15 and 2015-16, the chances of recovery of Rs 402.54 crore are doubtful.CAG Report
(Source: BloombergQuint)
5. Telcos Cost Govt Revenue Loss of ₹12,229 Cr: CAG
The government has lost out on potential revenue of ₹12,229 crore as six telecom companies understated revenue of about ₹61,065 crore till 2015, according to the Comptroller and Auditor General of India (CAG) report on revenue sharing by private telecom service providers.
CAG, which tabled 14 reports relating to various Ministries and Departments on Friday, said the presumed loss was on account of lower licence fee, spectrum usage charge and interest income.
(Source: The Hindu Businessline)
4. Domestic Investment Banks Lead Charge in India's Equity Rush
India’s record equity markets now have a distinct flavor of home: Local bankers, who are leading the charge on behalf of local investors.
Indian funds and retail buyers of equity have knocked overseas investors off the leader-board this year, and the biggest beneficiaries of the changing trend have been local investment banks.
Four of the top five on the league-table for equity markets deals by volume and value in the six months to June are local banks. Unlike their global peers, IIFL, Kotak or SBI Caps have capitalized on the strong demand from domestic institutional investors — insurance companies and mutual funds — and from companies riding the boom to unlock value through share or bond sales.
(Source: Economic Times)
6. Hero MotoCorp Renews ISL Sponsorship for Next Three Years at Rs 160 Cr
Hero MotoCorp has renewed its association with the Star India and IMG Reliance-promoted Indian Super League (ISL) for another three years, tripling its investment in the domestic football tournament.
On board since the league's launch in 2014, Hero's previous deal with ISL was valued at $8 million (around 51 crore) for three years. The renewed deal is estimated at $25 mn (Rs 160 crore) for another three years.
(Source: Business Standard)
7. Arun Jaitley Launches Pension Plan for Senior Citizens With 8% Assured Return
Finance Minister Arun Jaitley on Friday formally launched a pension scheme for senior citizens with an assured return rate of eight percent, favouring efficiency with social security.
“Banks have to lend at feasible rates, while senior citizens want secure, reasonable, unfluctuating return on their investment,” Jaitley said while launching the pension scheme – Pradhan Mantri Vaya Vandana Yojana (PMVVY).
The PMVVY is a pension scheme announced by the government exclusively for the senior citizens aged 60 years and above, which is open for subscription between 4 May 2017 and 3 May 2018.
(Source: IANS)
8. Indian Bank Q1 Net Profit Increases 21% to Rs 372 Crores
Indian Bank Ltd on Friday reported a 21.16 percent increase in June-quarter net profit on the back of higher net interest income. The bank reported a net profit of Rs 372.4 crore compared with Rs 307.35 crore a year ago.
Net interest income (NII), the core income a bank earns from its lending business, rose 1.87 percent to Rs 1,259.48 crore. Non-interest income – which includes fees and commissions, and treasury income – jumped 47.63 percent to Rs 652.07 crore.
NII growth was fuelled by a growth in loans, particularly in the non-corporate book as well as an improvement in net interest margins (NIM) which rose to 2.79 percent from 2.52 percent a year ago.
(Source: Livemint)
9. Carlyle Affiliate Buys 26% In SBI Cards
State Bank of India (SBI) on Friday informed stock exchanges that an affiliate of Carlyle Asia Partners has signed an agreement to buy a minority stake in SBI Cards – the bank’s credit card unit.
CA Rover Holdings, an affiliate of Carlyle Asia Partners IV, will be the new joint venture partner in the bank’s credit card unit and hold 26 percent, the bank said in a notice to stock exchanges. It did not disclose the price at which the deal had been struck. In March, the Economic Times reported that Carlyle was in talks to buy the 26 percent stake for Rs 2,000 crore.
SBI holds the remaining 74 percent in both SBI Cards and GE Capital Business Process Management Services, the backend service provider for the card unit. With the conclusion of this deal, GE Capital will exit the credit card venture in line with its global strategy
(Source: BloombergQuint)
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