Private banks to levy up to Rs 150 for cash transactions

Top-three-Private-sector-banks-in-IndiaMajor private banks have begun reintroducing transaction charges for cash deposits and withdrawals at their branches in a move that is being seen as one aimed at discouraging cash transactions and furthering the Prime Minister Narendra Modi and his government’s digital payments drive.

Banks including HDFC Bank   , ICICI Bank   and Axis Bank    on Wednesday began charging a minimum amount of Rs 150 per transaction for cash deposits and withdrawals beyond four free transactions in a month.

ATM intercharge charges have also been re-introduced.

The charges would apply to savings as well as salary accounts effective from Wednesday, leading private sector player HDFC Bank said in a circular.

The bank would also cap the third party cash transactions at Rs 25,000 per day, while cash handling charges would be withdrawn effective on Wednesday, the circular added.

The move was seen in some quarters as aimed at discouraging cash transactions and furthering the digital payment drive.

In his Budget speech last month, Finance Minister Arun Jaitley had imposed a cap on cash transactions above Rs 3 lakh, taking forward the agenda to move towards a cashless economy.

For the basic no-frills accounts, maximum four cash withdrawals would continue to remain free and there would be no fees for cash deposits.

In case of ICICI Bank, the charges are same as they were before the demonetisation move announced on November 8, while there is an increase in such fees in case of some others.

According to details on ICICI Bank website, there will be no charge for first four transactions a month in home branch while Rs 5 per thousand rupees would be charged thereafter subject to a minimum of Rs 150 in the same month.

The third party limit would be Rs 50,000 per day.

For non-home branches, ICICI Bank would not charge anything for first cash withdrawal of a calendar month and Rs 5 per thousand rupees thereafter subject to a minimum of Rs 150.

For anywhere cash deposit, ICICI Bank would charge Rs 5 per thousand rupees (subject to a minimum of 150) at branches, while deposit at Cash Acceptance Machine would be free of charge for first cash deposit of a calendar month and Rs 5 per thousand thereafter.

At Axis Bank, the first five transactions or Rs 10 lakhs of cash deposits or withdrawals would be free and charged at Rs 5 per thousand rupees or Rs 150, whichever is higher.

It could not be ascertained whether the public sector banks have also begun imposing such charges.

When contacted, a senior official said there has been no directive from the government to the banks regarding levy of such charges.

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Nifty Eyes 8150; SBI Tanks 5%, Auto & Oil Stocks Lead

Bussing stocks11:55 am Exclusive: Speaking to CNBC-TV18 from the sidelines of Pune Inc Conclave Power Minister Piyush Goyal said demonetization has huge advantages. It will take India to digital banking and make it a cashless society.

He said the government will use the money from demonetization to pump prime economy.

When asked what one should expect from the Union Budget on February 1, Goyal said ‘Good things’. He said: “The Finance Minister over the last three Budgets – July’14, Feb’15 and Feb’16 has consistently worked on a series of measures. He focused on a sustainable framework for India’s development.”

FM Arun Jaitley never tinkered with rates, minor changes but looked at structural improvements, so that India could move towards and economy, which like China sees 2-3 decades of high-level growth, said Goyal.

11:45 am Sameer Nair Group CEO of Balaji Telefilms says that new shows have a much lower margin and hopes to have 10 shows on air by FY17 end.

TV business gross margin is likely to be up 25 percent by this fiscal year, he believes.

The plan now is to get next releases of movies in the next fiscal year, he says, adding that film business will likely book profit in FY18.

Balaji Telefilms will look to air new shows on Sony, Sun TV and Doordarshan.

11:30 am Exclusive: The demonetization move by the government on November 8 seems to have put the buzzing FMCG sector on a pause mode.

Industry sources told CNBC-TV18 that top FMCG companies like HUL , Nestle India , ITC, as well as Dabur are adopting a ‘wait and watch’ mode with regards to new product launches and may defer new launches of high-end, premium products by one-two quarters.

They would look at geography specific launches to minimise the impact of demonetization, say sources, adding that the worst hit categories are luxury chocolates, premium cookies and ice-creams.

Nestle, ITC may defer launches in premium chocolate, confectionery & cookies space, and HUL, Dabur may defer product launches in premium personal care space, say industry sources.

The market has recovered from early weakness but the Nifty is almost nearing 8150. The 50-share index is up 6.80 points at 8121.10 and the Sensex is up 21.34 points at 26337.68. About 1457 shares have advanced, 652 shares declined, and 112 shares are unchanged.

Bharti Airtel, Cipla, Hero MotoCorp, BHEL and Bajaj Auto are top gainers while ICICI Bank, Wipro, TCS and Axis Bank are losers in the Sensex. SBI is down 5 percent intraday on Monday after RBI increased cash reserve ratio (CRR).

India is proving to be immune from the heavy selling in global emerging market debt, as Prime Minister Narendra Modi’s clampdown on undeclared cash has sparked expectations of a rate cut and pushed issuers to take advantage of low yields.

Indian Railways Finance Corporation, NTPC, Vedanta Resources, Exim India and Axis Bank all rushed to print rupee notes last week to access cheaper funding.

“The debt market is very compelling,” said Killol Pandya, head of fixed income at Peerless Funds Management. “Issuers that were otherwise going to banks are approaching the bond market as banks are yet to cut lending rates.”

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Live Stock Market Updates – Sensex rallies over 100 points; Consumer Durables, Pharma drag

Dalal Street CapitalHeightThe domestic market recovered after hitting a five-month low on Tuesday, tracking positive global cues and lower inflation data released yesterday. The Sensex up over 300 points, while the broader Nifty50 index regained its crucial 8,200 level.

At 10:01 AM, the S&P BSE Sensex is trading at 26,329 up 25 points, while NSE Nifty is trading at 8,156 up 48 points.

The BSE Mid-cap Index is trading down 0.28% at 11,943, whereas BSE Small-cap Index is trading down 0.57% at 11,834.

Asian Paints, TCS, ICICI Bank, Maruti Suzuki and ONGC are among the gainers, whereas Lupin, Sun Pharmaceuticals, Cipla and L&T are losing sheen on BSE.

Some buying activity is seen in realty, IT, auto, banking, energy and oil & gas sectors, while pharma, consumer durables, capital goods and industrial sectors are showing weakness on NSE.

The INDIA VIX is down 0.52% at 20.0400. Out of 1,855 stocks traded on the NSE, 436 declined, 1,036 advanced and 383 remained unchanged today.

A total of seven stocks registered a fresh 52-week high in trade today, while 59 stocks touched a new 52-week low on the NSE.

Asian markets traded in the green on opening bell taking cues from the US indices which hit new all time highs. The return of the risk on trade seems imminent with money now entering the developed markets with US, Germany & Japan set to outperform in the near term.With strong expectation of huge infra spend on the anvil the US indices seem set to move higher as higher bond yields coupled with $ strength indicate bullish momentum.

The Indian rupee opened higer by six paise at 67.68/$ against Tuesday close at as against the previous close of 67.74/$.

The Union cabinet on Tuesday approved a modest 6.6% hike in the minimum support price (MSP) of wheat.

On the economy front, India’s retail price inflation fell to a 14-month low of 4.2% in October from 4.39% a month ago as inflation in fruits and pulses softened, raising the chances of an interest rate cut by the central bank.

India’s trade deficit widened to $10.16 billion in October from $8.34 billion in the previous month, as gold imports more than doubled to $3.5 billion from a year ago. Merchandise exports grew 9.6% year-on-year to $23.5 billion, while imports expanded 8.11% year-on-year to $33.67 billion, the data showed.

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Sensex roars with gains, Nifty eyes 8600; SBI, Tata Steel up 8%

stock-marketAfter badly bruised yesterday, the market is picking up pace as investors are actively buying. The Sensex is up 471.03 points or 1.7 percent at 27723.56 and the Nifty is up 158.05 points or 1.8 percent at 8590.05. About 1971 shares have advanced, 310 shares declined, and 84 shares are unchanged.

SBI, Tata Steel, Cipla, ICICI Bank and Adani Ports are top gainers while HDFC Paints, Infosys, HDFC, Wipro and Hero MotoCorp are losers in the Sensex.

Gold held steady early after briefly surging to a six-week high in the previous session, as global markets and the US dollar showed surprise gains in the wake of Republican Donald Trump’s presidential victory. Donald Trump’s victory in the US presidential race throws into question the core assumption in global financial markets that the Federal Reserve will raise interest rates soon and follow with further gradual hikes over coming years.

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Live Stock Market Updates – Nifty hovers at 8,400 mark

There is selling pressure seen in the Indian stock market.  Donald Trump elected as US President.

The Indian stock market crashed on opening on Wednesday morning, with the Sensex sinking over 1,600 points while the Nifty slumped to near 8,000 levels.

The Nifty cracked over 400 points but bounced back from its crucial support level of 8,000. The fall in the index was weighed down by losses in realty, power, oil & gas, metal, consumer durable, and banking stocks.

At 12:01 PM, the S&P BSE Sensex is trading at 26,791 down 800 points, while NSE Nifty is trading at 8,243 down 303 points.

The BSE Mid-cap Index is trading down 4.72 % at 12,350, whereas BSE Small-cap Index is trading down 5.74% at 12,303.

Bharti Infratel, HDFC Bank, Power Grid, Lupin are losing sheen on NSE.

All the BSE sectoral indices were trading in the negative territory. Realty, metal, auto and IT are showing weakness on NSE.

The INDIA VIX is up 19.60% at 20.0575. Out of 1,870 stocks traded on the NSE, 1,495 declined, 78 advanced and 297 remained unchanged today.

A total of nine stocks registered a fresh 52-week high in trade today, while 170 stocks touched a new 52-week low on the NSE.

The rupee opened lower by 19 paise at 66.80/$ as against the previous close of 66.61/$.

On the economy front, Prime Minister Narendra Modi to abolish the Rs 500 and Rs 1,000 notes on Tuesday. Nearly 40 percent of the economy is driven by small- and medium-sized enterprises that largely run on cash transactions.

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ICICI Bank Rallies Post Q2 FY17 Numbers

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ICICI Bank Ltd is currently trading at Rs 283.5, up by Rs 4.75 or 1.7% from its previous closing of Rs 278.75 on the BSE. The bank reported on a standalone basis its profit after tax was Rs 3,102 crore (US$ 466 million) for Q2 FY17 compared to Rs 2,232 crore (US$ 335 million) for Q1 FY17 and Rs 3,030 crore (US$ 455 million) for Q2 FY16.

The scrip opened at Rs 281.6 and has touched a high and low of Rs 287.4 and Rs 281.6 respectively. So far 13032821 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 162208.34 crore.

The bank posted Net interest income of Rs 5,253 crore (US$ 789 million) in the quarter ended September 30, 2016 (Q2 FY17) compared to Rs 5,251 crore (US$ 788 million) in the quarter ended September 30, 2015 (Q2 FY16).

The BSE group ‘A’ stock of face value Rs 2 has touched a 52 week high of Rs 291.5 on 25-Oct-2016 and a 52 week low of Rs 180.8 on 26-Feb-2016. Last one week high and low of the scrip stood at Rs 280.95 and Rs 265.6 respectively.

The promoters holding in the company stood at 0 % while Institutions and Non-Institutions held 65.5 % and 9.13 % respectively.

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The stock is currently trading above its 50 DMA.

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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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.

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Q2 preview: ICICI Bank Likely to Report over 20% Drop in Profit

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ICICI Bank Q2 Result Preview

ICICI Bank BSE 1.37 %, India’s largest private lender, is projected to report a set of weak numbers for the September quarter. Various brokerages have forecast a double-digit drop in profit on muted sales and a rise in NPA.

That said, brokerages believe given the recent stake sale in the insurance arm, the bank may have enough capital to make sufficient provisions.

Brokerage Motilal Oswal Securities expects the lender to report a 21.4 per cent YoY drop, or 6.7 per cent QoQ rise, in net profit at Rs 2,400 crore. Interest earned is likely to come in at Rs 5,200 crore, flat on a QoQ basis and down 1.7 per cent on a YoY basis. Ebitda is projected to rise 2.9 per cent QoQ and 4.1 per cent on YoY basis.

“We expect PPoP or pre-provision operating profit (ex-capital gains from stake sale) to grow 4 per cent YoY. However, we are factoring in a 20 per cent YoY decline in earnings led by higher credit cost. We expect one-off stake sale gains to be utilised for provisions,” the brokerage said.

Prabhudas Lilladher (PL) is anticipating a 20.8 per cent YoY drop in the bank’s profit. It said the drop in earnings would be led by high provision requirement on likely elevated slippages, mainly from the stressed watch list.

“We factor in credit cost of 250 bps (excluding any contingent provision) and some impact on margins from interest reversals. Core PPoP trends will also continue to be weaker on nominal loan growth of 10-12 per cent with better growth in retail. The bank will have high other income from ICICI Pru Life’s IPO proceeds, which the bank is likely use to make contingent provisions,” PL said in a note.

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Live Stock Market Updates – Nifty holds 8500 mark

NSE picThe Indian equity market opened lower dragged by global concerns. The Nifty breached the crucial 8500 level for the first time since July 11 weighed down by losses in IT, oil & gas, banks, auto, and capital goods stocks.

The Nikkei India Services PMI rose to 54.5 in October from 52 in September. A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction.

At 9:37 AM, the S&P BSE Sensex is trading at 27,567 up 40 points, while NSE Nifty is trading at 8,528 up 14 points.

The BSE Mid-cap Index is trading down 1.40% at 13,254 whereas BSE Small-cap Index is trading down 1.44% at 13,362.

ICICI Bank, Tata Steel, Cipla, Hero MotoCorp, Dr Reddy’s and RIL are among the gainers, whereas ONGC, Bharti Airtel, M&M, Wipro and Sun Pharmaceuticals are losing sheen on BSE.

Some buying activity is seen in metal, consumer durables, banking, realty, pharma, finance and basic materials sectors, while IT sector is showing weakness on BSE.

The INDIA VIX is down 0.62% at 16.6925. Out of 1,865 stocks traded on the NSE, 360 declined, 1,125 advanced and 380 remained unchanged today.

A total of 19 stocks registered a fresh 52-week high in trade today, while nine stocks touched a new 52-week low on the NSE.

Hindalco Industries Ltd is currently trading at Rs 164.85, up by Rs 8.5 or 5.44% from its previous closing of Rs 156.35 on the BSE.

Lupin slipped 1.2%. The company has received approval from the US drug regulator for a contraceptive tablet. The product is a generic version of Janssen Pharmaceuticals Inc.’s drug.

Mphasis Ltd is currently trading at Rs 509.9, down by Rs 11.4 or 2.19% from its previous closing of Rs 521.3 on the BSE. The company will announce its Q2 numbers today.

Hero MotoCorp gained 1.7%.  Hero MotoCorp reported a 3.6% increase in sales at 663,153 units in October.

TVS Motor Company slipped 1.4%. The company posted 12% increase in total sales at 308,690 units in October. The Chennai-based company had sold 274,622 units in the same month last year.

IL&FS Engineering tanked 6% after the company reported net loss of Rs 81 crore for the quarter ended September 30, 2016 against net loss of Rs 82 crore in the same quarter a year ago.

Ambuja Cements inched up 0.48% to Rs 242. Ambuja Cements will announce its Q2 numbers today.

Zensar Technologies tumbled 3.8%.The company has acquired Foolproof Ltd along with its three wholly owned subsidiaries for an undisclosed amount.

Monsanto India Ltd is trading flat on the BSE. The company will announce its Q2 numbers today.

Strides Shasun Ltd soared  6.6%. The company said it and Mylan agree to settle regulatory and general claims on Agila transaction. After payment to Mylan, Strides to receive approximately $30 million from regulatory escrow.

Aurobindo Pharma is trading lower by 1% to Rs 784. Aurobindo Pharma has expressed interest in acquiring Portuguese drug maker Generis Farmaceutica for about $200 million, as per media reports.

Oudh Sugar Mills soared 2%.  The company posted its net profit at Rs 18.6 crore in the quarter ended September 2016 as against net loss of Rs 19 crore in the corresponding quarter last year.

Gulshan Polyols soared 5.2% after the company informed BSE that the board of directors of the company is scheduled to be held on November 05, to consider and discuss the matter of sub-division of equity shares of the company.

MMTC gained 2.3% to Rs 53.  MMTC plans to sell sovereign gold coins to non-resident Indians through branches of Indian banks with which it has tied-ups.

Asian markets opened flat to mildly positive after a huge drubbing in the last session. Globally the Fed maintained status quo on rates which saw yields fall along with the US $. Oil weakness saw energy stocks lead the declines even as financials rallied in the last hour. Next few days could see the uncertainty prevail with opinion divided on the outcome of the elections. However given the market behavior over the last 1 month most participants feel the probability of a Trump victory could well have been priced in with markets having only a knee jerk reaction on the day of the results.

India has the potential to move much ahead said PM Narendra Modi at a journalism awards event presented by IIFL Wealth & Asset Management. While the government says it will continue to undertake needed measures to strengthen economy, boost GDP growth and create jobs, rating agencies are not impressed as yet.

S&P retained India’s rating at ‘BBB-‘ with a stable outlook. Citing low per capita income and weak public finances, it ruled out an upgrade even for next year.

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