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Sensex Nifty continue to slide, rupee weak; TCS up 3%

13:00

The News International Team

1:55 pm Infra lending: The Reserve Bank of India’s move to allow banks to restructure existing project loans will help companies, especially those which are behind on interest/principal repayment by 31-90 days, says Pradeep Kumar, MD, corporate banking at SBI.

According to Kumar, banks were earlier trying to restrict the tenure of the loans. The new measure will help smoothen financing of loans and is in line with existing global standards of lending, he said. Ranjan Dhawan, ED, Bank of Baroda said the new norms will help bullet repayments (paying off principal at one go) to be refinanced. Also, extension of refinancing over longer periods will ease pressure on borrowers as well, he said. Dhawan said the non-performing asset situation on the ground was still stressful.

Welcoming the RBI move, Madhu Terdal, Group CFO of GMR said it would give the much needed boost for infrastructure projects. He said that the success of the measures would depend on the flexibility of banks. He said if Net Present Value was protected, banks could ease initial repayment norms.

1:30 pm Gold import: A “phenomenal” rise in India’s gold imports is a concern and the government will watch the impact from a recent easing in gold import rules, Trade Secretary Rajeev Kher. Gold imports jumped 34 percent in November to USD 5.61 billion, sending India’s trade deficit to a 18-month high, data showed late on Monday. Despite the surge in gold imports, India late last month scrapped a rule mandating traders to export 20 percent of all gold imported into the country. Kher, at an event in Mumbai, also said the rupee at 60-62 per dollar was good for exporters, although he added he would be a “little more concerned” if the rupee falls further.

A “phenomenal” rise in India’s gold imports is a concern and the government will watch the impact from a recent easing in gold import rules, Trade Secretary Rajeev Kher said on Tuesday. Gold imports jumped 34 percent in November to USD 5.61 billion, sending India’s trade deficit to a 18-month high, data showed late on Monday. Despite the surge in gold imports, India late last month scrapped a rule mandating traders to export 20 percent of all gold imported into the country. Kher, at an event in Mumbai, also said the rupee at 60-62 per dollar was good for exporters, although he added he would be a “little more concerned” if the rupee falls further.
Read more at: http://www.moneycontrol.com/news/commodities/phenomenal-risegold-importsconcern-trade-secy_1253850.html?utm_source=ref_article

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The market is still continuing to slide, as the Sensex is down 424.29 points or 1.5 percent at 26895.27. The Nifty is down 119.15 points or 1.5 percent at 8100.45. About 428 shares have advanced, 2203 shares declined, and 78 shares are unchanged.

Sesa Sterlite, Dr Reddy’s Labs, Hindalco, Tata Power, ICICI Bank are among the laggards. TCS, Wipro, Infosys and BHEL are top gainers in the Sensex.

The rupee plunges to a 13-month low on broad dollar strength but is off the day’s low after hitting its lowest level since November 14, 2013. Traders say that RBI may have sold dollars at around Rs 63.54 per dollar to stem the rupee fall.

Globally, most of Asia is weak barring shanghai. Markets are weighed down by the persisting slump in oil prices and weak US close. Focusing on China in particular, the flash HSBC PMI for China slipped to 49.5 contracting for the first time in seven months fueled hopes of more stimulus measures.

 

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