Gold Futures Rise 0.18% on Global Cues

Gold futures were trading up 0.18 per cent at Rs 29,778 per ten grams as traders raised bets amid positive cues from the global markets.

At the Multi Commodity Exchange, gold for delivery in February next year rose Rs 54, or 0.18 per cent, to Rs 29,863 per ten grams in a business turnover of 9 lots.

Similarly, the metal for delivery in December traded higher by Rs 50, or 0.15 per cent, to Rs 29,778 per ten grams in 378 lots.

Analysts attributed the rise in gold prices to a firming trend overseas where it rose to the highest in more than a week as an uptick in geopolitical uncertainty increased demand for the precious metal as a safe-haven but growing hopes that the US Federal Reserve will hike interest rates for the third time this year capped gains.

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Demonetization: Demand may Slowdown But not Evaporate, Says PC Jeweller

pc-jewellersIn the wake of demonetization of Rs 500 and Rs 1000 notes by the government earlier this month, the impact on jewellery sector has been adverse.

However, Sanjeev Bhatia, CFO, PC Jeweller   is not so worried and expects things to settle down with the upcoming wedding season. With the company largely catering to wedding jewellery, which is almost a compulsory purchase, Bhatia said the demand could get postponed but would not evaporate.

He is confident of things normalizing sooner than later. He told CNBC-TV18 that with the main season starting post Sankrant, the second half for the company would be on expected lines. In the first half company reported a 30 percent growth in topline.

It would be difficult to quantify the impact on their Q3 numbers as of now, said Bhatia. Post the demonetization news, some of their stores saw sales while others did not, he added.

He said according to their past experience, with any kind of destruction the purchases are either advanced or postponed. So, even though sales have slowed down, people have come out with other alternative arrangements like RTGS, cheques etc.

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India to levy tax on investments from Cyprus from April 2017.

taxIndia and Cyprus today signed the revised bilateral tax treaty under which capital gains tax will be levied on sale of shares on investments made after April 1, 2017, bringing the island nation at par with Mauritius in terms of tax treatment.

The new agreement also provides for exchange of banking information and allows the use of such information for purposes other than taxation with prior approval of competent authorities of the country.

Both had earlier in June agreed to revise the over two decade old tax treaty and decided to grandfather investments made prior to April 1, 2017.

“The new DTAA provides for source-based taxation of capital gains arising from alienation of shares, instead of residence-based taxation provided under the existing DTAA.

However, a grandfathering clause has been provided for investments made prior to April 1, 2017, in respect of which capital gains would continue to be taxed in the country of which taxpayer is a resident,” a finance ministry statement said.

The new agreement provides for assistance between the two countries for collection of taxes.

It also updates the provisions related to exchange of information to accepted international standards, which will allow exchange of banking details and its use for purposes other than taxation with prior approval of competent authorities of the country providing the information.

The new agreement expands the scope of ‘permanent establishment’ and reduces the tax rate on royalty in the country from which payments are made to 10 per cent from the existing 15 per cent, in line with the tax rate under Indian tax laws.

It also updates the text of other provisions in accordance with the international standards and consistent policy of India in respect of tax treaties, the ministry added.

The completion of the negotiation on avoidance of double taxation and the prevention of fiscal evasion will also pave the way for the removal of Cyprus from the list of ‘Notified Jurisdictional Areas’ retrospectively from November 2013.

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Retail inflation eases to 14-month low of 4.20% in October

inflationIndia’s annual consumer price inflation eased to 4.20 percent in October, its lowest level in 14 months, helped by smaller rises in food prices, government data showed on Tuesday.

The reading matched the median consensus in a Reuters’ poll of economists. Retail prices were up 4.39 percent on year in September.

Food inflation was 3.32 percent last month, lower than 3.96 percent recorded in September.

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October CPI Inflation at 4.20%

October CPI Inflation stood at 4.20% versus 4.31% MoM. Food Inflation at 3.2% as against 3.96% in September 2016.

October Cereals and Products Inflation at 4.4% over 4.17%. Pan, Tobacco, Intoxicants inflation at 7.09% compared with 6.82% in September.

Provisional indices for the month of October 2016 and also the final indices for September 2016 are being released with this note for all-India and for State/UTs. All-India provisional General (all-groups), Group and Sub-group level CPI and CFPI numbers for October 2016 for Rural, Urban and Combined are given in Annexure I. The inflation rates of important categories of items are given in Annexure II. State/UT wise provisional General CPI numbers for Rural, Urban and Combined are given in Annexure III.

Inflation rates of major States, having population more than 50 lakhs as per population Census 2011, are given in Annexure IV. All India Inflation rates (on point to point basis i.e. current month over same month of last year, i.e., October 2016 over October 2015), based on General Indices and CFPIs .

CPI

Monthly changes in the General Indices and CFPIs are given below:

cpi-2

Provisional indices for the month of October 2016 and also the final indices for September 2016 are being released with this note for all-India and for State/UTs. All-India provisional General (all-groups), Group and Sub-group level CPI and CFPI numbers for October 2016 for Rural, Urban and Combined are given in Annexure I. The inflation rates of important categories of items are given in Annexure II. State/UT wise provisional General CPI numbers for Rural, Urban and Combined are given in Annexure III. Inflation rates of major States, having population more than 50 lakhs as per population Census 2011, are given in Annexure IV. State/UT–wise Group CPIs are available on the Ministry’s website (www.mospi.gov.in).

Price data are collected from selected towns by the Field Operations Division of NSSO and from selected villages by the Department of Posts. Price data are received through web portals, maintained by the National Informatics Centre.

Annexure I

All India Consumer Price Indices

(Base: 2012=100)

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Here’s what Raghuram Rajan had to say about demonetisation

Raghuram RajanWhile the government’s demonetization initiative has been applauded by many for its impact on black money, former Reserve Bank Governor Raghuram Rajan had a different take on the subject. “It (demonetization) is often cited as a solution (to get black money out of circulation). Unfortunately, my sense is the clever find ways around it,” he had said at the 20th Lalit Doshi Memorial lecture on ‘Finance and Opportunity in India’ in August 2014.

Rajan believed it is not that easy to flush out the black money. “They (people) find ways to divide up their hoard in to many smaller pieces. You do find that people who haven’t thought of a way to convert black to white, throw it into the Hundi in some temples. I think there are ways around demonetization,” an article by The Huffington Post said quoting Rajan.

Rajan also noted that a fair amount of the black money is in the form of gold which is even harder to track.

Instead, the focus, according to Rajan, should be taxes that prove to be among the major incentives to generate and retain black money. While noting India’s tax rates are fair and drawing attention to the high tax rates in some other countries, he said he would prefer to focus more on tracking data and better tax administration to get at where money is not being declared.

“I think it is very hard in this modern economy to hide your money that easily.”

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Top 15 stocks in focus today: ICICI Bank, Future Retail, Britannia Industries

ICICI Bank: ICICI Bank reported net profit of Rs 3,102 crore for the quarter ended September 30, 2016 against Rs 3,030 crore in the corresponding quarter a year ago.

Britannia Industries: Britannia Industries posted a 5.8% rise in its consolidated net profit to Rs 234 crore in the quarter ended September 30, 2016 as compared to Rs 221 crore in the year-ago period.

IT stocks: IT stocks will be in focus today. Cognizant reported 11.8% in net profit to $444.4 million in the July-September quarter, but cut its annual revenue forecast for the third straight time this year.

Future Retail: Future Retail said it has agreed to buy the retail business of Hyderabad-based Heritage Foods Ltd, promoted by the family members of Andhra Pradesh chief minister N. Chandrababu Naidu, in an all-stock deal.

Ceat: Ceat registered 1.6% rise in consolidated net profit at Rs 107 crore for the quarter ended September 30. It had posted a net profit of Rs 105 crore in the same quarter last fiscal.

GlaxoSmithKline Consumer Healthcare: The company reported 16.62 per cent decline in standalone net profit at Rs 183.72 crore for the second quarter ended September 30, 2016. It had posted a standalone net profit of Rs 220.34 crore in the same quarter last fiscal.

Varun Beverages: Shares of Varun Beverages is going to list on bourses today.

GIC Housing Finance: The company said S Gopakumar, general manager with Oriental Insurance Company, has been appointed as managing director of the company. Warendra Sinha resigned as MD and CEO of the company following his elevation as whole time director of National Insurance Company.

Wipro: The company on Monday announced the launch of its Open Banking API (Application Programming Interface) Platform. The Open API platform, will enable banks and financial institutions to launch Open Banking initiatives and create new forms of distribution channels and servicing capabilities, provide access to third-party application marketplaces, and comply with emerging regulatory norms through the standardisation of APIs.

Ashok Leyland: Ashok Leyland will announce its Q2 numbers today.

L&T: L&T-MHPS Boilers Pvt Ltd has signed a technology licence agreement for selective catalytic reduction systems with Mitsubishi Hitachi Power Systems Ltd.

Cyinet Ltd: The company has signed a definitive agreement with Blom ASA to acquire 100% stake in Blom Aerofilms.

Indigo: The airline company will announce its Q2 numbers today.

Bombay Dyeing: Bombay Dyeing will announce its Q2 numbers today.

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8K Miles Q2 FY17 Revenue up 18% qoq

8K Miles Software Services, Ltd., a leading Global IT Business Transformation, Secure Cloud Solutions and Managed Services Provider, today announced the Company’s unaudited financial results for the quarter ended 30th September, 2016 as approved by the Board of Directors.

The company reported 170% jump in net profit at Rs 24 crore for the quarter ended September 30. Its gross revenue stood at Rs 122 crore, up 100% on YoY basis, while its EBITDA grew to Rs 42 crore, an increase of 101% YoY.

As an innovation thought leader and an early mover of Enterprise  wide IT Business Transformation through  Cloud Computing for Highly Regulated Industries, 8K Miles is able to make an impact across verticals, industry recognized secure and compliant control framework resulting in acceleration of new cloud business initiatives for fortune 500 customers,”said Suresh Venkatachari, Chairman and Managing Director, 8K Miles Software Services, Ltd. 

Stock Commentary:

8K Miles Software Services Ltd is currently trading at Rs 778, up by Rs 17.4 or 2.29% from its previous closing of Rs 760.6 on the BSE.

The scrip opened at Rs 775.85 and has touched a high and low of Rs 814.7 and Rs 767.2 respectively. So far 244005(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 2321.17 crore.

The BSE group ‘B’ stock of face value Rs 5 has touched a 52 week high of Rs 956.25 on 14-Jan-2016 and a 52 week low of Rs 478.13 on 12-Feb-2016. Last one week high and low of the scrip stood at Rs 807 and Rs 752.2 respectively.

The promoters holding in the company stood at 63.41 % while Institutions and Non-Institutions held 2.69 % and 33.89 % respectively.

The stock is currently trading above its 50 DMA.

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Results to watch out for! ICICI Bank, Godrej Consumer Products, 8K Miles in focus

The results which are expected today are ICICI Bank, Godrej Consumer Products, 8K Miles, Aban Offshore, Aegis Logistics, Britannia Industries, Ceat, EID Parry (India),  Swaraj Automotives, TIL Ltd and Vakrangee Ltd, Shalimar Paints, Shree Cements.

Stock Commentary:

ICICI Bank Ltd ended at Rs 269.35, down by Rs 0.45 or 0.17% from its previous closing of Rs 269.8 on the BSE. The scrip opened at Rs 271.1 and touched a high and low of Rs 272.6 and Rs 265.6 respectively. A total of 10307982 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 156942.02 crore.

icici-bank-ltd

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