Sensex down 196 points after Fed’s decision

Extending losses for the fifth straight session, the benchmark BSE Sensex on Thursday fell over 196 points in early trade on sustained selling by funds after the US Federal Reserve decided to further taper its monetary stimulus programme.

Besides, monthly expiry in the derivatives segment also weighed on the sentiment.

The 30-share barometer, which had lost over 726 points in the past four sessions, fell further by 196.27 points, or 0.95 per cent, to 20,451.03.

All the sectoral indices were trading in negative zone, led by consumer durables, realty and banking.

Similarly, the wide-based National Stock Exchange index Nifty fell by 52.50 points, or 0.86 per cent, to 6,067.50.

Brokers said a weak trend in Asian trade sparked by emerging markets turmoil coupled with the Federal Reserve deciding to further cut its monetary stimulus by $ 10 billion to $ 65 billion dampened the trading sentiment here.

They said participants adopted a cautious approach keeping in view the monthly expiry in the derivatives segments.

In the Asian region, Japan’s Nikkei Index tumbled 3.33 per cent, while Hong Kong’s Hang Seng index shed 1.22 per cent in early trade.

The US Dow Jones Industrial Average ended 1.19 per cent down in Wednesday’s trade.  

Source: Latest Business News

From TH News

In Bernanke's final act, Fed cuts stimulus despite market turmoil

The Federal Reserve on Wednesday decided to trim its bond purchases by another $10 billion as it stuck to a plan to wind down its extraordinary economic stimulus despite recent turmoil in emerging markets.

The action was widely expected, although some investors had speculated that the U.S. central bank might put its plans on hold given the jitters overseas.

Fed Chairman Ben Bernanke, who hands the Fed's reins to Vice Chair Janet Yellen on Friday, managed to adjourn his last policy-setting meeting without any dissents from his colleagues. It was the first meeting without a dissent since June 2011 - a sign of how tumultuous Bernanke's tenure has been.

In addition to proceeding with plans to scale back its bond buying, the Fed made no changes to its other main policy plank: its pledge to keep interest rates low for some time to come.

The decision suggests that it would take a serious threat to the U.S. economy before the Fed backs down from a resolve to shelve the asset-purchase program later this year.

Indeed, it offered a somewhat rosier assessment of the U.S. economy's prospects than it did last month, saying "economic activity picked up in recent quarters." It also largely shook off surprisingly soft jobs growth in December. "Labor market indicators were mixed but on balance showed further improvement," it said.

"They really want to move to the sidelines here and get out of the (bond buying) business," said Jack Ablin, chief investment officer at BMO Private Bank in Chicago.

All 17 top Wall Street economists polled by Reuters on Wednesday expect the Fed to wind the program down by year's end, and nearly all believe the Fed won't raise rates until at least the third quarter of 2015.

Major U.S. stock indexes closed down more than 1 percent, while yields on the benchmark 10-year Treasury note hit the lowest level since late October. The dollar rose against the euro but was little changed against a broad basket of currencies. Read more..

Source: Business News India

From BS News

Rupee strengthens further against dollar, up 37 paise

The Indian rupee strengthened further by 37 paise to 62.14 against the American currency in the late morning trade on persistent selling of dollars by banks and exporters.

This was on hopes of resumption of foreign capital inflows in view of firm equity market amid lower dollar overseas.

The rupee resumed higher at 62.28 per dollar as against the last closing level of 62.51 per dollar at the Interbank Foreign Exchange (Forex) Market and firmed up further to a high of 62.11 before quoting at 62.14 per dollar at 1045 hrs.

Source: Latest Business News

From TOI News

3,000kg of gold being smuggled in a month: Chidambaram

 

Finance minister P Chidambaram on Monday acknowledged a spurt in gold smuggling in the wake of higher duties and other curbs on the import of the yellow metal into the country. While estimating illegal shipments of up to 3,000kg in certain months — a record by all accounts — the minister justified the restrictions, citing high current account deficit (CAD) but indicated that some of the tightening may be eased in the next few months.

The government had increased customs duty on gold to 10 per cent and later RBI imposed import restriction by linking it to exports in an attempt to lower the ballooning CAD which was $88 billion last fiscal. This year, the government hopes to contain CAD at around $50 billion by bringing down gold imports.

The finance minister, who was speaking at the international customs day function here, said a review on the decision to lower duties or remove other restrictions was possible only after March even as he said monthly smuggling of gold was 1-3 tonnes after imposition of the restrictions.

The finance minister, who was speaking at the international customs day function here, said a review on the decision to lower duties or remove other restrictions was possible only after March even as he said monthly smuggling of gold was 1-3 tonnes after imposition of the restrictions. Read more..

Source: Latest Business News

From ET News

Opto Circuits soars 14% on reports that Goldman may buy stake

Opto Circuits surged as much as 14 per cent on Monday on reports that global investment bank Goldman Sachs may acquire a 26 per cent stake in the Bangalore-based company, which manufactures medical equipment maker. According to media reports the deal is valued at Rs. 300 crore.

As of 09.55 a.m., Opto Circuits shares traded 11.8 per cent higher at Rs. 34.60 on the BSE. The stock had earlier hit a high of Rs. 35.25. It was the most traded stock on the BSE 500 benchmark. (Track stock)

In contrast, the broader Sensex traded down 1.4 per cent or 296 points at 20,837 amid a global selloff in equities and currencies.  Read more..

Source: Latest Business News

From NDTV News

Ranbaxy slumps another 9% on FDA ban

Ranbaxy shares fell as much as 9 per cent on Monday as the selloff in the drugmaker intensified after the US Food and Drug Administration banned its fourth plant in India. On Friday, Rs. 3,437 crore was wiped out of Ranbaxy's market cap as the stock plunged 19.43 per cent.

As of 10.36 a.m., Ranbaxy shares traded 5.7 per cent lower at Rs. 317.30 after earlier hitting a low of Rs. 306 on the BSE. The stock underperformed the broader Sensex, which traded down 1.5 per cent.

Global brokerage UBS retained its "sell' call on the stock and cut its price target on the stock from Rs. 500 to Rs. 300. Downside risk continues to be high after FDA banned drugs from the Toansa facility in Punjab, UBS said, adding there is uncertainty around Ranbaxy's first to file (FTF) drugs.

Ranbaxy has been reportedly planning to launch couple of high-yielding generic drugs in the United States, including a version of Novartis AG's hypertension drug Diovan, with ingredients from Toansa. The FDA action could also delay the launch of a generic version of AstraZeneca Plc's blockbuster heartburn and ulcer pill Nexium in the US.

Ranbaxy has been a major supplier of drugs, especially generics, to the United States and this latest enforcement action means most Ranbaxy products are now banned there. Read more..

Source: Latest Business News

From NDTV News

Indian economy projected to grow at 5.35% in 2014: UN

India's economy is projected to grow at a slower-than-expected rate of 5.3 per cent this year, according to a United Nations report which said the country's slowdown may have bottomed out.

The UN World Economic Situation and Prospects 2014 (WESP) report said a mild recovery in investment as well as stronger export growth will help in the gradual GDP pick-up.

It said the Indian economy, which accounts for over 70 per cent of total output in South Asia, slowed further in 2013.

The growth was held back by weak household consumption and sluggish investment, the report added.

Full-year growth decelerated to 4.8 per cent in 2013 from 5.1 per cent in the calendar year 2012.

It said external conditions continued to be challenging as the Indian economy experienced significant capital outflows, which led to a sharp depreciation of the rupee. Read more..

Source: Business News India

From NDTV News

Srinivasan misses BCCI emergent meet after mother passes away

BCCI President N Srinivasan will not attend the Board's Emergent Meeting today after his mother, Jayalakshmi Narayanaswamy, passed away here.

She was 92 and breathed her last while asleep in the wee hours this morning, family sources said.

The development has forced Srinivasan to skip the BCCI Emergent Meeting, which was to be chaired by him.

In Srinivasan's absence, BCCI vice-president Shivlal Yadav will chair the meeting, the agenda of which was unknown to all the affiliated units of the board.

Even though the agenda is not clear, there is speculation that the meeting might have been called to discuss the scheduling of the seventh Indian Premier League the dates of which haven't been announced.

The IPL clashes with the country's general elections are still not out and there are chances that a few of the matches might be held in neighbouring Sri Lanka.  Read more..

Source: News in Hindi

From BS News

Australian Open: David Ferrer wears down Jeremy Chardy to reach fourth round

Third seed David Ferrer smashed a racket after losing his serve in the second set but recovered his composure to reach the fourth round of the Australian Open with a 6-2 7-6 (7-5) 6-2 victory over Jeremy Chardy on Friday.

Playing in temperatures of 42 degrees Celsius (108 Fahrenheit) on Rod Laver Arena, Ferrer`s trademark brand of attritional tennis simply wore down the Frenchman, who made 51 unforced errors, in two hours and 12 minutes.

The 31-year-old Spaniard, twice a semi-finalist at Melbourne Park, took his frustrations on his racket in the second set but saved two set points to win it in the tiebreak. read more...

Source: Sports News

From Z News