News Update, February 3rd, 2018

Budget blues: Sensex tanks 840 pts

For a market that rose 14 months without a pause, Friday’s ‘mini-tremor’ felt like an earthquake. The Sensex, India’s key equity gauge, fell 900 points (2.5 per cent) just a day after Finance Minister Arun Jaitely announced his government’s last full Budget before the 2019 general elections. The imposition of a Long-Term Capital Gains tax (LTCG) on equities has been blamed for the fall, but experts say a dramatic correction in stock prices was long building up. Efforts by Revenue Secretary Hasmukh Adhia to calm the markets by detailing the positives of the “grandfathering” clause under the LTCG regime did not cut much ice.

Source: Business Line

Hindalco Q3 profit rises 17% to Rs 375 cr but margin contracts, copper biz grows 40%

Aluminum major Hindalco Industries has reported standalone profit growth of 17.2 percent year-on-year at Rs 375 crore for December quarter, driven by copper business but hit by one-time loss. Profit for quarter ended December 2016 stood at Rs 320 crore, the company said. One-time loss of Rs 115.3 crore was a provision based on a judgment of the Supreme Court on mining regulations.

Source: MoneyControl

Bitcoins losing currency on Budget warning

Trading on Bitcoin exchanges surged on Thursday and Friday after finance minister Arun Jaitley said in his February 1 Budget speech that cryptocurrencies weren’t legal tender. Exchange servers were said to have ground to a near halt on both days due to the sudden spurt in transactions, although the platforms themselves said things had settled down after the initial panic. Zebpay, Unocoin, Coinsecure and BTCXIndia all saw large transaction volumes.

Source: Economic Times

Govt plans to wrap up Air India sale by Dec: Jayant Sinha

The government will allow a private bidder to pick up a stake of 51% or more in Air India Ltd and plans to complete the sale of the airline by December, minister of state for aviation Jayant Sinha said on Friday. A group of ministers led by finance minister Arun Jaitley will decide on whether the government will retain a stake and its extent, but management control will be handed over to the new owner, he said at a CNBC-TV18 Mint Budget Verdict conclave in New Delhi. Sinha added that the disinvestment of state-owned helicopter services firm Pawan Hans Ltd was also on track.

Source: LiveMint

Flipkart losses swell 68% to Rs 8,771 crore in FY17

Flipkart Group saw its overall revenues increase by nearly a third in the previous fiscal while losses ballooned on the back of falling valuation. Revenues rose by 29% to Rs 19,854 crore in the financial year ending March 2017, according to the regulatory filings made by the online retailer’s parent company in Singapore. The company’s losses increased by 68% to Rs 8,771 crore, according to documents sourced from data intelligence platform Paper.VC.

Source: Economic Times

Equity schemes may declare huge dividends

Mutual fund houses are likely to pay huge dividend in their equity-oriented mutual fund schemes before March 31. Wealth managers managing money for the rich have started calling up fund houses asking for huge dividend from such schemes before it becomes taxable from April 1. Dividend on equity-oriented mutual funds is tax-free for the investor till the end of this financial year. The finance minister has announced a 10 per cent dividend distribution tax for such schemes from April 1. Chief executive officers of at least three fund houses have confirmed receiving requests for dividends from high networth individuals and wealth managers.

Source: Economic Times

Budget 2018: Affordable housing gets a big boost

Real estate and its allied sectors are the second largest employers in India, next only to agriculture. Most estimates believe that real estate in India will touch the $180-200 billion mark by 2020 and is expected to grow by 30% over the next decade. The importance of the housing sector can be gauged from the fact that it alone contributes about 5% of the GDP. The law establishing RERA in the states, introduction of GST and focus on affordable housing are initiatives that have transformed the real estate sector. The promulgation of RERA has made realty more transparent and has helped protect consumer rights – something that previously has been a concern for homebuyers. GST has converted India into a unified market and helped the ease of doing business.

Source: Financial Express

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