Home / Business / Money / Sensex, Nifty consolidate; rupee recovers further

Sensex, Nifty consolidate; rupee recovers further


TheNewsInternational Team

02:45 pm Interview:

Just Dial’s Search Plus will be launched in September this year and monetisation from it should start by first half of FY17, says Ramkumar Krishnamachari, CFO, Just Dial.

Search Plus business will enable customers to carry out transactions such as booking movie tickets, ordering flowers or making doctor appointments from its directory, as well as buy various products.

Speaking to CNBC-TV18, Krishnamachari says Just Dial continues to stay most popular search player as there is no competition for local search since it has disrupted the yellow pages business.

On pricing, he says the company would keep low prices in tier-II cities as Just Dial focuses on increasing volume of vendors and gain value out of them.

On tier-I cities, he says there is no pricing pressure as 95-96 percent of the businesses don’t have website. “Unless business has website they can’t go to Google to advertise,” he says.

From advertising point of view, Just Dial is the most efficient of all the alternate platforms available for a small business to get discovered, he says, adding, “the fact is that we have relationship with all these vendors and are competing with traditional advertising like print, hoardings, etc where it has been proven that the leads generated through Just Dial bring a superior rate of return”.

02:30 pm S&P on PSB: Standard & Poor’s today said the government’s plan to infuse capital into public sector banks is a “breather”, but is unlikely to “fully resolve” their looming credit shortfall. “The central government’s planned capital infusions come at a good time for public sector banks. But they don’t go far enough,” Standard & Poor’s Credit Analyst Amit Pandey said.

In a report titled – India’s Capital Infusions For Public Sector Banks Are Just A Breather, S&P said the stand-alone credit profiles and ratings on some PSU banks remain sensitive to any further deterioration in asset quality, capital, and earnings. “The Basel III-related capital requirements could lead weaker PSU banks to lose market share to better-performing banks in the private sector, public sector… ,” it said.

Last month, the government had announced infusion of Rs 70,000 crore in PSU banks through four years till 2018-19. Of this Rs 25,000 crore would be injected in the current fiscal. Besides, the PSU banks would raise an additional Rs 1.10 lakh crore from the markets in the next four years.

“For the next 12-18 months, the government’s capital infusions will be an important lifeline for PSU banks. Many of the banks have a reduced ability to generate internal capital, largely because of the pressure on asset quality in the past few years. The weakening asset quality has resulted in lower net interest margins and higher credit costs,” S&P said.

02:00 pm Market Check

The market continued to see short covering and value buying in afternoon trade, rising half a percent amid consolidation. The Sensex rose 141.12 points to 27972.66 and the Nifty advanced 41.80 points to 8508.35. About 1452 shares have advanced, 1260 shares declined, and 107 shares are unchanged on the BSE.

The rupee recovered further, appreciating 14 paise to 65.17 a dollar. The currency hit a fresh two-year high of 65.42 in early trade today.

Sun Pharma surged 4.5 percent, the biggest gainer on Sensex after Bank of America Merrill Lynch upgraded stock to buy from neutral with a target price of Rs 1,070, implying 20 percent upside. It also raised FY17/18 earnings per share forecast by 10 percent each driven by potential synergy benefits of USD 400 million from Ranbaxy integration in FY18; recent price hikes in Taro and sequential improvement in ex-Taro US business including supply from Halol.

Cipla jumped 2 percent as HSBC added the stock to its GEM Super 15 portfolio, which was launched 2014. It has a buy rating on the stock with a target price of Rs 795. “Earnings will be driven in the near term by new product launches in emerging markets and certain product approvals in UK & US,” it said, adding respiratory franchise will double in next 4-5 years.

Leave a Reply

Scroll To Top