This week that was: Rupee makes investors 'dukhee'
Equity benchmarks closed at their lowest levels in over three months on Friday as continuing concerns over the depreciating rupee and the likely wording of the General Anti-Avoidance Rule in the Finance Bill, triggered a sell-off.
Equity benchmarks closed at their lowest levels in over three months on Friday as continuing concerns over the depreciating rupee (close to its all-time low) and the likely wording of the General Anti-Avoidance Rule in the Finance Bill, triggered a sell-off.
The Indian currency fell to 53.87 levels on persistent dollar buying by oil importers.
Weakness in European markets further aggravated the slide, with capital goods, banking and metal shares figuring among the worst performers.
With today's fall, the Sensex and the Nifty have breached their key support levels of 17,000 and 5100 respectively, and some technical analysts see this as a decisive downward move by the market. For the week, the market is down around 2%.
Let's take a look at the top headlines of the week
The oil ministry served a notice to Reliance Industries, disallowing 1.45 billion dollars of cost recovery from the eastern offshore KG-D6 fields for failing to meet its drilling commitment.
According to reports, the government has asked the oil major to pay around Rs 6600 crore for the sharp fall in gas output from its KG-D6 block, sharply escalating the oil ministry's raging dispute with the Mukesh Ambani-controlled company.
The Reserve Bank of India has asked banks to set aside more risk capital and implement Basel III norms faster than its global peers. Indian banks have to migrate fully to RBI's version of Basel III by March 31, 2018, whereas globally the deadline is January 1, 2019.
As expected, automobile sales in April 2012 were down on MoM basis, a trend that usually witnessed in the month after the Union Budget. While Tata Motors sales fell by 7% (YoY), M&M was the only one which has posted strong sales numbers.
Pantaloon Retail said on Thursday that its board had passed a resolution to change its name after the country's largest retailer sold majority stake in its apparel business to Aditya Birla Nuvo on April 30.
In earnings this week, Bharti Airtel ninth consecutive drop in quarterly profit didn’t stop the stock from rising on Wednesday, largely on account of the company’s performance exceeding expectations on key measures such as minutes of usage and subscriber additions.
Meanwhile, according to CNBC-TV18 report, Airtel's accounts are being inspected under section 209(A) of the Company's Act for alleged irregularities.
HUL, India's largest consumer goods company, beat Street estimates by reporting an over 20.7% jump in net profit for Q4.
Hero MotoCorp posted 20% rise in net profit to Rs 603 crore in the quarter ended March, missing analysts' estimates, as higher raw material costs damped gains from record sales of bikes and scooters.
Meanwhile, public sector lender Bank of Baroda recorded 17.3% rise in net profit. (read more: Here)
In current affairs, Finance Minister Pranab Mukherjee dismissed as speculation reports that he has emerged as a front runner in the race for presidential election.