The News International Team
12:50 pm Reaction to FM’s call for rate cut: Finance Minister Arun Jaitley “had spoken for the nation” when he recently called upon the Reserve Bank of India to cut interest rates, Sunil Mittal, chief of India’s largest telecom company Bharti Airtel, said.
Jaitley had recently joined growing clamour for a cut interest rates, which have been left high for several years by RBI governor Raghuram Rajan and his predecessor Duvvuri Subbarao in order to combat high inflation. But the policy has taken a toll on consumer demand with GDP growth coming in below 5 percent over the past two years.
Mittal became the latest industrialist to seek an interest rate cut – as inflation (measured by the consumer price index) appears to have finally come within the central bank’s target of 8 percent by early 2015; with the latest reading coming in at 6.5 percent. A fall in interest rate would make cost of capital easier for businesses and spur consumers to open up their wallets and spend more.
12:30 pm Buzzing: Shares of Thermax rallied over 8 percent intraday after it announced stellar September quarter earnings. The Pune-based energy solutions provider reported over two-fold jump in its net profit at Rs 86 crore for the quarter ended September 30, 2014. The company had posted a net profit of Rs 30.16 crore in the corresponding quarter of the last financial year.
Total income increased to Rs 1,213.96 crore during the quarter under review from Rs 1,050.81 crore in the same quarter of the last financial year, Thermax said in a statement.
MS Unnikrishnan, managing director of the company is confindent of a double-digit growth of around 10 percent for FY15. “The order intake has also gone up by around 42 percent. For the first time in the history of the company, a quarterly order intake is more from outside India than from India. We have been able to possibly garner more business from outside India knowing fully well things have not happened very well so far but will happen for the future,” he said in an interview to CNBC-TV18.
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The market is consolidating after touching record high in early morning session. Banks, pharma and realty stocks are lending strength to the benchmark indices while oil & gas and metals are in red.
The Sensex is up 30.95 points at 27891.33, and the Nifty is up 10.40 points at 8334.55.
About 1513 shares have advanced, 1123 shares declined, and 107 shares are unchanged.
Brent crude losses have extended into the 5th straight session as weak data from China and Saudi Arabia cutting export prices to the US weighs on sentiment.
Gold prices fell by 0.64 percent to Rs 25,797 per 10 grams in futures trading today as
speculators trimmed positions amid a weak global trend. At the Multi Commodity Exchange, gold for delivery in December declined by Rs 166, or 0.64 percent, to Rs 25,797 per 10 grams in a business turnover of 911 lots.