December Issue

12 December 2017
BUSINESS
www.theasianindependent.co.uk
US dollar trades mixed amid GDP report
New York, The US dollar traded mixed against
other major currencies as investors pondered over
the country’s economic growth data for the third
quarter of 2017. US economy expanded at an
annual rate of 3.3 per cent in the third quarter of the
year, slightly higher than 3 per cent previously estimated,
the Department of Commerce reported on
Wednesday. In late New York trading, the euro rose
to $1.1862 from $1.1839 in the previous session,
and the British pound climbed to $1.3422 from
$1.3376 in the previous session, Xinhua reported.
The Australian dollar lost to $0.7577 from
$0.7597. The US dollar bought 111.83 Japanese
yen, higher than 111.55 yen of the previous session.
The US dollar fell to 0.9839 Swiss franc from
0.9844 Swiss franc, and
it moved up to 1.2853
Canadian dollars from
1.2816 Canadian dollars.
The revised gross
domestic product (GDP)
data also showed that
US economy in the July
to September period
grew at the fastest pace
in three years, despite
disruptions caused by
hurricanes Harvey and
Irma along the Gulf
Coast in late August and September. economic
expansion is increasingly
broad based across sectors
as well as across much of
the global economy,”
Federal Reserve Chair
Janet Yellen said
Wednesday before the Joint
Economic Committee of
US Congress.
Wednesday’s report also
confirmed the fact that US
economy had expanded
above 3 per cent in backto-back
quarters for the
first time since 2014. Meanwhile, according to the
Fed’s Beige Book released in the afternoon, US
economic activity continued to increase at a modest
to moderate pace in October and mid-
November across the 12 Fed Districts. On other
economic news, the Pending Home Sales Index
rose 3.5 per cent from a downwardly revised 105.6
in September to 109.3 in October, beating market
estimates, according to the National Association of
Realtors on Wednesday. Analysts thought that the
strong economic growth is likely to bolster market
expectations for another rate hike by the Fed in
December.
The dollar index, which measures the greenback
against six major peers, decreased 0.10 per cent at
93.179 in late trading.
GST to be simple for everyone
by March : Union Minister
Equities close flat ahead of
F&O expiry, Q2 GDP data
Mumbai, Key Indian equity
indices on Wednesday closed on
a flat note with minimal losses
as investors traded with caution
ahead of futures and options
(F&O) expiry as well as the second
quarter GDP data announcement
on November 30
(Thursday). The benchmark
indices, which traded in the
green during most part of the
day, closed marginally in the red
as investors booked profits in
banking and metal stocks.
However, losses were trimmed
by healthy buying in consumer
durables, capital goods and
healthcare stocks. On closing
basis, the wider Nifty50 of the
National Stock Exchange (NSE)
was down 8.95 points or 0.09
per cent at 10,361.30 points. The
barometer 30-scrip Sensitive
Index (Sensex) of the BSE
closed at 33,602.76 points —
down 15.83 points or 0.05 per
cent — from Tuesday’s close.
The BSE market breadth was
bearish — 1,376 declines and
1,341 advances.
“Markets ended trade with
flattish tone as sentiments
remained cautious ahead of the
gross domestic product (GDP)
for the July-September quarter
due tomorrow (Thursday).
Caution prevailed over the latest
missile test by North Korea and
softness in Chinese shares hit
Asian markets,” Dhruv Desai,
Director and Chief Operating
Officer of Tradebulls, told
IANS. According to Deepak
Jasani, Head, Retail Research,
HDFC Securities, markets ended
marginally lower on Wednesday
as the Nifty continued to consolidate
in a range. “It was the second
consecutive session of losses
for the Nifty. The slide was
led by heavyweights like Axis
Bank and Zee Entertainment,”
Jasani told IANS. The S&P BSE
mid-cap index closed lower by
0.17 per cent and the small-cap
index by 0.01 per cent. Vinod
Nair, Head of Research, Geojit
Financial Services, said:
“Q2FY18 GDP is likely to
improve to 6.4 per cent as per
the consensus estimates, while
any extension in crude oil production
cut in the upcoming
OPEC meet will provide some
volatility in the near-term.”
“However, strengthening rupee
over US dollar and expectation
for further upgrade in earnings
after the good set of second
quarter results will keep the sentiment
positive,” he added.
On the currency front, the
rupee strengthened by 10 paise
to close at 64.31-32 against the
US dollar from its previous close
at 64.41-42.
Sector-wise, the S&P BSE
banking index declined by
106.62 points, followed by metal
index by 77.64 points and IT
index by 26.27 points. On the
other hand, the S&P BSE consumer
durables index rose by
126.72 points, capital goods
index by 49.64 points and auto
index by 44.86 points. Major
Sensex gainers on Wednesday
were: Wipro, up 1.33 per cent at
Rs 297.90; Adani Ports, up 1.16
per cent at Rs 402.55; Sun
Pharma, up 0.77 per cent at Rs
547.90; Hindustan Unilever, up
0.75 per cent at Rs 1,277.35; and
Tata Steel, up 0.72 per cent at Rs
709.30. Major Sensex losers
were: Axis Bank, down 2.32 per
cent at Rs 549.15; HDFC, down
1.31 per cent at Rs 1,702.90;
Asian Paints, down 1.18 per cent
at Rs 1,156.20; State Bank of
India, down 1.16 per cent at Rs
328.80; and Tata Consultancy
Services, down 0.98 per cent at
Rs 2,658.55.
Kolkata, Union Minister of
State for Finance Shiv Pratap
Shukla on Wednesday said the
Goods and Services Tax (GST)
should smoothen out by March
2018 as the government has been
addressing the concerns and it
would become so simple that
people would not have any
issues. “By March, it will be so
simple that even children will
able to understand… even in a
country like Singapore, it took
four years for GST to get stabilised.
I am proud that our government
has responded to the
issues so quickly,” he said while
addressing the 116th annual session
of the Merchants’ Chamber
of Commerce and Industry.
Post the Guwahati meet of the
US stocks end mixed
in holiday season
New York, US stocks closed mixed, as a
rally in retail stocks faded. The Dow Jones
Industrial Average on Monday increased 22.79
points, or 0.10 per cent, to 23,580.78, Xinhua
reported. The S&P
500 ticked down
1.00 points, or 0.04
per cent, to
2,601.42. The
Nasdaq Composite
Index inched down
10.64 points, or
0.15 per cent, to 6,878.52. The traditional
brick-and-mortar-retailers got a big boost following
Black Friday, as investors expected
strong sales during the Thanksgiving holiday.
Shares of Macy’s rose 0.66 per cent on
Monday, while Gap jumped 1.21 per cent.
Meanwhile, analysts have observed shifting
consumer behavior in recent years as customers
are more likely to make purchases
online for better discounts and using mobile
phones for convenience. “The big story this
holiday season is in mobile shopping. Retailers
know this is where the audience is now and are
delivering better experiences,” said Mickey
Mericle, Vice President of Marketing and
Customer Insights at Adobe.
E-commerce giant Amazon increased 0.83
per cent to close at $1195.83 dollars per share
on Monday. “Shoppers looking for discounts
are getting better at using smartphones to
quickly close the deal, and we are seeing better
mobile conversion this season at over 10 per
cent growth,” Mericle added.
GST council, tax rates on many
products were reduced to 18 per
cent from 28 per cent, which was
appreciated by businesses, the
minister said. About the increasing
non-performing assets
(NPA) problem, he said, the
Central government has done its
bit in terms of recapitalisation
support to banks to ensure their
better financial health, but the
banks should not make it a “tradition”
to depend on the government.
“If we did not do that (provide
recapitalisation support) the
banks could not have been
saved. But banks should not
make it a tradition,” he said.
Banks, particularly the nationalised
ones “should stand on
their own”, he said. Elaborating,
he said many public sector banks
appear to be sinking just because
they went ahead and lent huge
amounts of money to entities
without proper due diligence.
The Central government has
already announced Rs 2.11 trillion
recapitalisation support to
state-run banks to help them to
meet capital requirements.
Pay Rs 275 cr by Dec
31, SC tells Jaypee
New Delhi, AThe Supreme Court on
Wednesday asked real estate major Jaypee
Associates to deposit Rs 275 crore — in
two instalments — by December 31,
telling it to “behave like a good child”. The
bench of Chief Justice Dipak
Misra, Justice A.M.
Khanwilkar and Justice D.Y.
Chandrachud asked the firm
to deposit another Rs 275
crore after it allowed it to
deposit Rs 275 crore with its
registry.
It directed the Jaypee
Associates to deposit Rs 150
crore by December 13 and
another Rs 125 crore by
December 31. Permitting Jaypee
Associates to deposit another Rs 275 crore
in two installments in December, the court
said: “Needless to say that direction for
deposit of Rs 2,000 crores shall remain as
it is. The only indulgence is to pay the
same in installments.” The court order is
seen as a relief to Jaypee Associates whose
earlier plea to deposit Rs 400 crore was
turned down as court had asked it to be
ready with sizeable amount of Rs 2,000
crore that it has been directed to deposit to
safeguard flat buyers’ interests. Jaypee
Associates had on a mentioning on
November 6 had told the they have Rs 50
crore “ready in hand” and will arrange for
another Rs 350 crore by Friday (November
10). Directing the next hearing of the matter
on January 10, the court said none of
the promoter directors and
the independent directors
would alienate their personal
assets. “Neither the independent
directors nor the
promoter directors shall
alienate their personal properties
or assets in any manner,
and if they do so, they
will not only be liable for
criminal prosecution but
contempt of the court,” the
court said in its order on Wednesday. It further
ordered that “the properties and assets
of their immediate and dependent family
members should also not be transferred in
any manner, whatsoever”.
The court appointed advocate Pawan
Shree Agrawal as amicus curiae and asked
him to prepare a portal carrying all the
details on the lines of one he had prepared
in the case of real estate major Unitech and
ordered that Jaypee Associates counsel
Anupam Lal Das “shall provide all the
details as required by Mr. Pawan Shree
Agrawal”.