The News International Team
9:50 am Exclusive: A day after the tax department was learnt to have issued a notice to London-based Cairn Energy in a three-year-old case, sources told CNBC-TV18 government officials believe the issue is a “legacy of the previous government” and that the incumbent regime is committed to ending the era of retrospective taxation.
Cairn Energy Plc has been embroiled in a USD 1.6 billion claim arising out of a “business reorganization” it carried out in 2007, prior to listing its former subsidiary Cairn India. (Shares of a foreign company holding Indian assets were transferred to the Indian subsidiary — a move the tax department later said warranted payment of capital gains tax.)
Tax lawyers said the tax office was able to make a demand on a transaction that happened in 2007 due to a law passed by the UPA government in 2012, which allowed raising claims on past deals.
9:30 am Houseviews: Credit Suisse maintains an outperform rating on Wipro citing that significant pickup in growth may also result in re-rating.
The brokerage likes the stock for its valuations which is lowest among peer group. Credit Suisse says that management looks confident on the outlook and expects increased focus on client mining and its focus on execution to accelerate growth. Despite short-term headwinds in the energy vertical, management is optimistic on medium-term opportunities. It also sees an upside bias in the margins in the medium term.
Wipro had held its analyst day at its Bengaluru campus. Besides presentations on its strategy, demand environment, infrastructure management and the India/Middle-East business, it showcased its focus on execution and its capabilities in next-gen technologies.
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The market has opened firm with the Sensex gaining 151 points at 28803.50. The Nifty is
at 8752, up 50.75 points. About 702 shares have advanced, 136 shares declined, and 93 shares are unchanged.
SBI, ICICI Bank, BHEL, Sesa Sterlite and HDFC are top gainers in the Sensex. Among the losers are Bajaj Auto, M&M, HUL, Hindalco and Bharti Airtel.
The Indian rupee opened flat at 62.77 per dollar against previous day’s closing value of 62.78 a dollar.
The euro is struggle just above a fresh 12-year low early as the European Central Bank kicked off its 1 trillion euro bond-buying campaign. Meanwhile, the dollar climbs further, fueled in part by expectations the Federal Reserve is not far from lifting interest rates.
Mohan Shenoi of Kotak Mahindra Bank said, “Strong US jobs data last week has increased expectations of an early Fed rate hike. Safe heaven dollar buying has resulted in a dollar rally and weak equities across the board.”
Among global markets, in the US, stocks closed mildly lower as equities failed to recover from Tuesday’s sell-off, amid continued concern over dollar gains and the timing of a fed interest rate hike. Asian markets were trading higher this morning. Nikkei was higher as the yen is sitting pretty at 121 versus the dollar.
Kospi reversed its losses as the Bank of Korea surprised markets by cutting interest rates to a fresh record low. They cut its base rate for the first time in five months by 25 basis points to 1.75 percent. The Korean won traded at its lowest level since July 2013 aiding exporters.
In commodities, Brent crude rebounds from a 1-month low and is inching towards USD 58 dollar per barrel. From precious metals space, gold slips further to USD 1150 an ounce following a robust dollar and expectations of higher US interest rates curbed appetite for the metal.