Economy, business and cricket. All these ingredients came to together to make the week a lip-smacking, eventful and rollercoaster ride of expectation and hope. The low inflation data on Monday set the pace for the days to follow. Earnings were not behind as ITC threw a surprise by declaring that its profits rose on the back of stellar perfromamce by its non-cigarette segment. The IPL match-fixing scandal, the USFDA fining Ranbaxy USD 500 million on charges regarding drug safety and JM Financial hiring Citigroup’s Vivek Pandit to head its NBFC foray tingled the senses and raised more questions than could be answered. Welcome To The Week That Was.
CPI, WPI inflation Slump Annual consumer price inflation slowed for the second straight month in April to 9.39 percent. The wholesale price index (WPI) in April rose 4.89 percent, the slowest since November 2009. The impact was quite visible in Interest-rate sensitive sectors which responded favaourably. The BSE Capital-Goods Index rose 4.30 percent over last week, the S&P BSE Bank-Ex soared 4.09 percent and the S&P BSE Realty Index ended on a high of 5.93 percent.
FII ownership At 8-year High Foreign institutional investors' (FIIs) ownership of the BSE Sensex stocks touched an eight-year peak in the January-March quarter, Bank of America Merrill Lynch said in a research report.
The Earnings Rumble -> With the earnings season in full swing, ITC led the recovery in market mood by declaring a 19%- rise in net profit, at Rs 1,928 crore, on the back of the non-cigarette FMCG business breaking even. -> Bajaj Auto's fourth quarter net profit slipped by 1 percent year-on-year to Rs 766 crore. MD Rajiv Bajaj says that the company is betting big on the launch of six versions of the Discover in July. -> TV18 Broadcast's revenues for 2012-13 rose 20 percent to Rs 1, 699.1 crore, helping the company trim its full-year loss to Rs 25.5 crore from Rs 73.8 crore the previous year.
And the Tax-Man Cometh… -> After Vodafone, Nokia and Shell, WNS was the latest MNC to fall under the tax scanner on issues of transfer pricing. The I-T department has notified the company regarding an additional tax of about Rs 557 crore on income and the acquisition of UK-based Aviva's BPO services. -> With three Congressional probes of the IRS looming and Republicans' calls for firings at the agency growing louder, Obama told treasury secretary Jack Lew to demand the resignation of Steven Miller, the acting IRS commissioner.
USFDA fines Ranbaxy USD 500m Drugmaker Ranbaxy Laboratories pleaded guilty to felony charges related to drug safety and was charged USD 500 million in civil and criminal fines under the settlement agreement with the US department of justice.
Falling Gold Prices Stoke Indian Desire: Demand Up 27% in Jan-Mar Gold demand in India rose by 27 percent to 256.5 tonne in the first quarter of 2013, the World Gold Council (WGC) said. The demand for the precious metal stood at 202.1 tonne in the same quarter last year. The rise in demand comes on the back of falling gold prices as a strong US dollar and resilient global equities lead capital from safe-haven avenues to riskier assets.
IPL Spot-Fixing Scandal Three Rajasthan Royals players including Indian paceman S Sreesanth were arrested by the Delhi police on charges of spot-fixing. The other two players arrested were Ajit Chandila and Ankeet Chavan.
S&P affirms ‘BBB – rating’ On India Standard & Poor’s affirmed its ‘triple B minus’ long-term and ‘A-3’ short-term unsolicited sovereign credit ratings on India . The outlook on the long-term rating remains negative.
Infosys boss Shibulal Takes Pay Cut Infosys CEO SD Shibulal took a 26.5-percent cut in salary for FY13 because of a steep reduction in his bonus component. Shibulal's annual compensation for FY13 stood at USD 119,774, compared to USD 162,990 the previous year. His bonus fell 70.14 percent to USD 15,918. The cut was initiated as part of an exercise by the board to align the compensation employee directors with that of employees
Sebi Gets More Teeth A move by the finance ministry to amend the securities law will give Sebi powers to regulate collective investment schemes and attach and sell assets.