QBiz: IT Unions Against Cognizant ‘Sacking’, Apple Beats Sensex
The Quint brings you a compilation of the important business stories from the previous day.
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1. IT Unions to Protest Sacking in Cognizant
Two groupings – the Forum of IT Employees (FITE) and NDLF IT employees wing – are petitioning the Tamil Nadu government against what they call unjustified dismissals of employees at Cognizant.
The FITE has filed a petition at the Tamil Nadu labour department to protect the interests of software engineers who have been sacked on performance grounds, even as companies struggle with changing technology and business shifts.
Cognizant has denied that there have been any layoffs and said employees had been let off because they did not meet performance requirements.
2. GST Professionals Getting Huge Salary Hikes Ahead of Tax Roll out
As salary increments across Indian industries fall to, on average, single-digit percentage figures, goods and services tax (GST) professionals are bucking the trend, taking home hefty mid-term bonuses and increments for moving within the organisation into the GST team.
GST, the nation's biggest tax reform, is set for a likely 1 July rollout. This has created a big opportunity for the professional services firms to help their clients understand the changing business and tax dynamics, evaluate its impact and take necessary action.
3. Apple Beats Sensex in Market Capitalisation
The recent rally in the share price of Apple Inc has taken the market capitalisation of the technology giant to more than $797 billion at 10 pm IST, making it bigger than the combined market cap of all the 30 Sensex companies put together.
India’s bluechip index closed at a market cap of $784 billion, based on Monday's share prices. Apple, the most valuable company in the world, is the only company to have a higher market cap than that of the Sensex companies together. The Sensex accounts for 40 percent of India’s total market cap.
Apple is also larger than the market cap of countries like Brazil, Singapore, Spain, and Malaysia.
4. Government Open to Providing More Funds for Banks' Recapitalisation: Arun Jaitley
Finance Minister Arun Jaitley has said the government is open to providing more funds for banks’ recapitalisation and paring its stake once their health improves.
The government has allocated Rs 10,000 crore for recapitalisation of non-performing asset (NPA)-laden public sector banks for 2017-18.
It had given Rs 25,000 crore for the purpose in 2015-16 and the same amount again in 2016-17. Another Rs 10,000 crore will be infused in 2018-19. Jaitley said the government is hopeful that the NPA problem, which is limited to a set of accounts, will get resolved after the promulgation of an ordinance.
5. SBI Makes Home Loans Cheaper for New Borrowers
State Bank of India on Monday announced a cut in interest rate on new home loans ‘in the affordable housing segment’ by up to 25 basis points, making equated monthly instalments cheaper by up to ₹18 per lakh. This move is expected to exert pressure on other lenders to follow suit.
India’s largest bank reduced interest rate on home loans up to ₹30 lakh from 8.60 percent to 8.35 percent. On home loans over ₹30 lakh and up to ₹75 lakh, the bank pared interest rate from 8.60 percent to 8.50 percent.
The new home loan rates are effective 9 May and part of a limited period offer up to 31 July.
(Source: The Hindu BusinessLine)
6. Reliance Jio May Hurt Bharti Airtel in Q4
Bharti Airtel Ltd, the country’s largest telecom operator, is not expected to have a great start to 2017, with its newest rival Reliance Jio Infocomm Ltd launching its ‘Happy New Year’ offer in the last quarter of financial year 2016-17.
Reliance Jio added another 3 crore subscribers in the three months ended March, as users looked to make the most of the free services it offered. This is expected to dent Bharti Airtel’s results in the January-March quarter.
Revenue is expected to fall 10 percent to Rs 22,572 crore, according to a consensus estimate of 12 analysts tracked by Bloomberg. The profit is expected to dip nearly 60 percent to Rs 543 crore – its highest year-on-year drop in more than four years.
7. Indian Stocks Rebound, Real Estate and IT Stocks Lead the Rally
Indian stocks climbed following gains in most equity markets across Asia, amid optimism that global economic growth is on the mend.
The S&P BSE Sensex recovered from a two-week low, rising 0.2 percent to 29,926, while the NSE Nifty rose 0.3 percent to 9,314.
The market breadth was skewed in favour of the bulls. About five stocks advanced for every three stocks that declined. Real estate stocks led from the front, followed by software exporters.
8. FSSAI Panel Turns Heat on Junk Food, Bats for Tax, Ad Ban
An expert panel set up by food regulator FSSAI has recommended additional tax on highly processed food items and sugar-laced beverages as well as a ban on advertising of junk foods on children’s channels or during kids’ shows on TV.
The report by the 11-member panel on ‘Consumption of Fat, Sugar and Salt (FSS) and its health effects on Indian population’ suggests ways to cut consumption of unhealthy food products and reduce rising burden of chronic diseases like cancer and diabetes.
The FSSAI had constituted the panel consisting of experts from different fields like medicine, nutrition and dietetics from well-known medical research and academic institutions.
“The report recommended having balanced diet which should provide around 60-70 percent of total calories from carbohydrate, 10-12 percent from protein and 20-30 percent from fat,” the FSSAI said.
(Source: Financial Express)
9. Hudco IPO Subscribed 63% on Day 1
State-owned Housing and Urban Development Corp. Ltd (Hudco) on Monday saw its initial public offering subscribed 63%, according to data from stock exchanges. The share sale closes on 11 May.
As of 5 pm on Monday, the portion of shares reserved for institutional investors was subscribed 18%, while the portions reserved for high net-worth individuals and retail investors were subscribed 16% and 152%, respectively.
Hudco has set a price band of Rs 56-60 per share for the IPO. The IPO comprises an offer for sale of 200.19 million shares by the central government, which, at the upper end of the price band, could fetch it Rs 1,201.1 crore.
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Topics: Sensex Junk Food Bharti Airtel
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