UK says 600 million pounds of masala bonds to be listed in London

Four rupee-denominated bonds worth a total of 600 million pounds ($748 million) are expected to be listed in London in the next three months, the British government said on Monday, as Prime Minister Theresa May began a two-day visit to India.

The latest four bonds will provide financing to expand India’s highway and rail networks and meet its plans to boost energy efficiency and renewable energy, the government said.

They will be issued by Indian government-backed corporates Indian Railway Finance Corporation, Indian Renewable Energy Development Agency, Energy Efficiency Services Limited, and National Highways Authority of India by the end of January 2017.

May has said she wants to use the trip India, her first bilateral visit to a non-European Union country since taking office in July, to boost ties between the countries and pave the way for a post-Brexit trade deal.

The government said that since July, more than 900 million pounds of so-called masala bonds have been issued in London, an equivalent of more than 70 per cent of the global offshore market.

“This government will continue to work closely with both India Company News and our financial services sector to ensure our growing rupee bond market continues to help finance India’s ambitious infrastructure investment plans,” May said in a statement.

Masala bonds, unveiled in 2015, are an opportunity for Indian firms to raise money while giving international investors access to higher yields in a zero-yield world.

They can be more expensive than issuing bonds in the local market because of India’s 5 per cent withholding tax on such international deals.

As well as a way to borrow overseas, they are also an attempt to make the tightly-controlled rupee more widely available in global markets, similar to the way in which China has moved to sell more yuan debt to overseas investors.

UK says 600 million pounds of masala bonds to be listed in London

India pie in global fund flow dips

India’s share in overseas flows to emerging markets and emerging Asia (EMEA) has contracted in 2016.

The country accounted for only 22 per cent of the total fund inflows in the EMEA region this year. In comparison, its share was 48 per cent in 2015, 43 per cent in 2014 and 57 per cent in 2012, Bloomberg data showed.

Foreign portfolio investors (FPIs) have bought equities worth $6.9 billion in Indian markets in the year till date.

This reduction in India’s share of FPI inflows comes as global funds reduce their India weightage in favour of markets like South Korea and Taiwan. Also, India’s recent underperformance and expensive valuations have weakened its appeal.

The benchmark Sensex has yielded 5 per cent return in the year so far against a 9.3 per cent surge in the MSCI EM Asia index.

According to HSBC, overseas funds are increasing their participation in South Korea and Taiwan in order to have exposure to a US demand recovery. Overseas funds have so far purchased net equities worth $14.2 billion in Taiwan and $9.7 billion in South Korea.

India pie in global fund flow dips “India slipped to fourth position, a level last seen in February 2012. In terms of absolute exposure, funds continued to reduce their holdings of Indian equities, Economy Newsthough India still remained the consensus overweight trade in the region,” said Herald van der Linde, head of equity strategy for the Asia Pacific, HSBC.

A month-wise analysis of the data shows that the pace of FPI inflows has slowed down in the last three months amid concerns about an interest rate hike by the US and its presidential elections. In October, FPIs turned net sellers for the first time in eight months, when they sold equities worth $616 million.

“Although 2016 has been a positive year in terms of FPI inflows, the flows are not as good as they were in the last few years. Even in the near term, there might be nervousness among FPIs over the outcome of the US elections. However, from a long-term perspective, Indian markets are still positive,” said Rajat Rajgarhia, managing director, institutional equities, Motilal Oswal Securities. Not just India, inflows have been slowing down across the globe. In the EMEA universe, FPIs bought equities worth $300 million during October, the lowest in nearly six months. “Investor sentiment remains subdued amid uncertainty over the timing of a US rate hike,” der Linde added.

FPI inflows to India have spiked since 2013 when Indian equities scaled new heights on the hopes of a new government at the Centre. Since then India has been a relative outperformer. Even in 2015, when FPIs were net sellers in a majority of emerging markets, India witnessed inflows of $3.3 billion.

India pie in global fund flow dips

Trump accuses IBM of shifting jobs to India

Republican presidential nominee Donald Trump has accused American tech giant IBM of laying off 500 workers in Minneapolis and shifting their jobs to India and other countries, saying he will levy a 35% tax on companies doing so.

“IBM laid off 500 workers in Minneapolis and moved their jobs to India and other countries. A Trump Administration will stop the jobs from leaving America, and we will stop the jobs from leaving Minnesota,” Trump said in his speech yesterday in Minneapolis, as part of efforts to woo voters in Minnesota state which has been a Democrat stronghold.

“If a company wants to leave Minnesota, fire their workers and move to another country and then ship their products back into the United States, we will make them pay a 35% tax. We will also unleash American energy including shale oil, natural gas and clean coal,” he said.

Trump said he will cancel all harmful Obama regulations that hurt Minnesota farmers, workers and small businesses.

“We will become a rich nation once again Donald Trump. But to be a rich nation, we must also be a safe nation,” he said.

He claimed that Democratic presidential nominee Hillary Clinton wants a 550% increase in Syrian Refugees pouring into the US wants virtually unlimited immigration and refugee admissions from the most dangerous regions of the world.

“Her plan will import generations of terrorism, extremism and radicalism into your schools and communities. When I’m elected President, we will suspend the Syrian Refugee Program and we will keep Radical Islamic Terrorists out of our country,” he added.

“Here, in Minnesota, you’ve seen first-hand the problems caused with faulty refugee vetting, with large numbers of Somali Refugees coming into your state without your knowledge, support or approval and with some then joining ISIS and spreading their extremist views,” Trump said.

He asserted that a Trump administration will not admit any refugees without the support of the local community where they are being placed.

“And we will pause admissions from terror-prone regions until a full security assessment has been performed, and until proven vetting mechanisms have been established,” he said.

A Trump administration will also secure and defend the borders of the United States, he said reiterating that he will build a wall along the Mexico border.

“Hillary supports totally open borders, and strongly supports Sanctuary Cities like San Francisco where Kate Steinle was murdered by an illegal immigrant deported 5 times. Thousands of Americans would be alive today if not for the open border policies of Obama-Clinton,” Trump said.

Trump accuses IBM of shifting jobs to India

ICICI Bank Q2 net up 2.37% at Rs 3,102 crore

India’s largest private lender ICICI Bank (ICICI) reported 2.37 per cent rise net profit at Rs 3,102 crore in the second-quarter ended September 2016.

ICICI Bank shares rose by three per cent to Rs 278 per share at close of trading hours on Bombay Stock Exchange today.

The lender said standalone net profit was Rs 3,030 crore for the three months to September 2015.

The total income rose to Rs 22,759 crore in the quarter under review as against Rs 16,106 crore in Q2FY16.

The provisions for the India Company News bad loans stood at Rs 7.082 crore for Q2 of Fy2017 as against Rs 942 crore a year ago.

The gross non-performing loans were Rs 32,178 crore (6.82 per cent) up from Rs 15,857 crore (3.77 per cent) in September 2015. The pool of bad loans (GNPAs) were at Rs 27,193 crore (5.87 per cent) in June 2016).

The capital adequacy ratio (CAR) at end of Q2 Fy17 stood at 16.14 per cent in September 2016 while it was 16.15 per cent.

ICICI Bank Q2 net up 2.37% at Rs 3,102 crore

Markets snap 4-day losing streak on Clinton’s victory hopes

Benchmark share indices snapped a four-day losing streak amid a rally in global stocks after the FBI’s clean chit on the alleged email scandal boosted her prospects in the race to the White House.

The S&P BSE Sensex ended up 185 points at 27,459 and the Nifty50 ended up 63 points at 8,497. In the broader markets, the BSE Midcap and Smallcap indices gained between 0.6%-1.2% each. Market breadth ended strong with 2001 gainers and 873 losers on the BSE.

“Indian markets rose in line with positive global markets, in a clear sign that financial market’s near term direction is closely intertwined with US electoral developments. PNB’s numbers showing improvement in asset quality have allowed banking sector to lead the rally, and at least temporarily forget NPA worries, but with ICICI Bank and SBI’s figures expected shortly results, caution continues to remain the watchword. UK court’s ruling over Brexit looks to have complicated trade negotiations, and not surprisingly, Pound’s recovery was short lived, and IT stocks look to continue under pressure.” said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services

Foreign institutional investors were net sellers in equities worth Rs 343 crore on Friday, as per provisional stock exchange data.

Global Markets

Asian shares ended higher on Monday after reports suggest that the FBI that it has not changed its view on the closure of the investigation into the alleged email scandal of Democratic presidential candidate Hillary Clinton after its review of new emails. Stocks in Japan were the top gainers in the region with the benchmark Nikkei up 1.6% followed by Straits Times and Hang Seng which gained 0.4%-0.7% each while China’s Shanghai Composite ended up 0.3%.

European stocks surged on Monday after the latest developments indicated that Hillary Clinton was seen leading her rival in the race for the Presidency after the FBI following an investigation cleared of the alleged email scandal. The CAC-40, DAX and FTSE-100 were up 1.4%-1.8% each. Meanwhile, the Dow futures were trading higher.

Index Stocks

Lupin ended up 7% after the pharma major said that it has received Establishment Inspection Report (EIR) from the US health regulator for its Goa plant leading to closure of all outstanding inspections of the facility.

Sun Pharma and Dr Reddy’s Labs gained over 0.4% each. In the broader markets, Glenmark Pharma, Aurobindo Pharma, Neuland Labs, Dishman Pharma, ended up over 3% each.

PNB ended nearly 7% higher post the strong India Business News listing of its housing finance arm.

PNB Housing Finance ended up 15% at Rs 891. Earlier, the stock had listed at Rs 863 on the BSE, an 11% premium over its issue price of Rs 775 per share. PNB Housing Finance, promoted by Punjab National Bank (PNB), raised Rs 3,000 crore through initial public offer (IPO). The issue was oversubscribed 29.55 times at a price band of Rs 750-775 per share.

ICICI Bank ended up 3% ahead of its second quarter earnings due for release today.

ITC extended gains and ended nearly 3% higher after the Goods and Services Tax (GST) Council’s propose to place tobacco products in the 28% tax slab and an additional cess. The current rate of taxation on cigarettes is around 64% and 81% on chewing tobacco.

Broader Markets

Nilkamal dipped 7% after the company’s net profit was flat at Rs 26.33 crore for the quarter ended September 30, 2016 (Q2FY17), due to lower volume growth. The plastic products maker had posted a profit of Rs 26.12 crore in the same quarter last fiscal.

Shares of Dalmia Bharat Group companies OCL India and Dalmia Bharat ended higher by up to 4% on BSE after their respective boards approved the merger of the two firms in an effort to simplify the group structure.

Seshasayee Paper & Boards jumped 12.7% after the company reported an over four-fold jump in net profit at Rs 30.70 crore for the quarter ended September 30, 2016 (Q2FY17), due to lower raw material and finance cost. The company had posted a profit of Rs 7.19 crore in the same quarter last fiscal.

Crompton Greaves surged 12% after the company announced that it has received a binding offer for acquisition of its B2B Automation business from Alfanar.

Heritage Foods ended 10% higher on BSE on back of heavy volumes after a media report suggests that Future Group to announce acquisition of the company’s retail outlets today.

Markets snap 4-day losing streak on Clinton’s victory hopes

GST: Centre hopeful of consensus on assessee scrutiny

The Centre is hopeful of a consensus around ‘vertical division’ of assessees, one without a turnover threshold, to resolve the issue of dual administrative control under the proposed goods and services tax (GST) regime.

While most states are in agreement over the principle of division in a pre-decided ratio between the two authorities, Kerala, West Bengal and Tamil Nadu have pressed for exclusive state control over those with annual turnover up to Rs 1.5 crore and dual control for beyond that.

Also termed ‘horizontal division’, this threshold formula would ensure states get control over most assessees. By government data, 88% of assessees are below the Rs 1.5 crore threshold.

“A consensus appears to be evolving around the ‘vertical division’ of assessees for scrutiny and audit. Negotiations will centre around the ratio of division. We are willing to do less assessment than states,” said a central official. The ratio could be 1:2 or 1:3 in favour of states.

Resolution of the issue is needed to prevent harassment of taxpayers. “We can’t have two competing authorities for the same assessees,” said the official.

Assam’s finance minister, Himanta Biswa Sarma, India Economy News told a television channel after the Council meeting on Friday: “When the meeting started, the Council was leaning towards a Rs 1.5 crore threshold but now many states feel that it should be vertical division. We expect the dual control issue to be resolved soon.”

Jammu & Kashmir’s Haseeb Drabu said the state would back a vertical split of administrative powers. While the states had earlier agreed to exclusive assessment of manufacturing units with turnover of up to Rs 1.5 crore, they went back on it as the Centre retained administrative control over all 2.6 million service tax assessees.

Finance Minister Arun Jaitley said after the meeting, “We don’t want to take a decision in a hurry because, administratively, any mistake on this front could be chaotic.”

The finance ministers will have an informal meeting on November 20 to discuss it. “Sometimes ministers in the Council meeting discuss a politically correct stand in the presence of everyone. Informally, they might have a different view,” said an official.

Pratik Jain, partner at consultancy PwC, said: “With services also getting split between Centre and States, it is unlikely the Centre would agree on horizontal division. A vertical division on an agreed ratio seems more viable.”

GST: Centre hopeful of consensus on assessee scrutiny

Images of supposed new Rs 2,000 notes emerge on Twitter

Pictures of your supposed Urs Only two,500 denomination bank notes happen to be circulating on Twitting. The images stick to several media studies which such a currency exchange be aware may quickly be presented.

Business Regular can’t separately verify if the images going around around the micro-blogging site had been authentic,

About March 21, India Business News acquired noted that will paperwork from the denomination would be throughout blood flow quickly. Your statement acquired added the Arrange Financial institution asia (RBI) had until that will date nearly accomplished all the necessary preparations for launching the newest forex note.

Your paperwork, the statement explained, experienced recently been produced were dispatched through the forex stamping click inside Mysuru.

Even so, the actual economic everyday acquired included that there ended up zero recognized expression coming from sometimes the RBI or the government on the introduction with the brand new denomination take note.

Images of supposed new Rs 2,000 notes emerge on Twitter