The benchmark stock indices opened the day on a positive note, with financial stocks leading the morning rally.
Join us as we follow the top business news through the day.
Asset quality stress touches ‘peak’, GNPAs may rise after SC order, says Yes Bank
Yes Bank has reached the “peak” of asset quality stress after reporting heightened challenges in the December quarter earnings, even though there can be a jump in the gross non-performing assets (GNPA) ratio in the March quarter, a top official has said.
The GNPA ratio may shoot up to touch 20% of the overall assets once the Supreme Court order on bad asset recognition comes in, the official said.
In the results released over the weekend, the bank reported a GNPA ratio of 15.36%, but admitted that if one were to include the standstill NPAs (ones which were not recognised due to SC order) and the restructured assets, the overall stressed assets would be higher.
“The stress we saw is a peak and there are many positives on the asset quality like collections being improving, cheque bounce rates coming down to industry averages and the recoveries being high,” its managing director and chief executive Prashant Kumar told PTI.
Tata in talks to launch Moderna COVID-19 vaccine in India – ET
Vaccine availability in India could get a boost soon.
Reuters reports: “Tata Medical & Diagnostics is said to have started initial discussions with Moderna Inc for a partnership to launch its COVID-19 vaccine in India, the Economic Times reported on Monday.
Tata could team up with the India’s Council of Scientific & Industrial Research (CSIR) to carry out clinical trials of Moderna’s vaccine candidate in India, the report https://bit.ly/2Yd8E2B added, citing officials familiar with the matter.
The Indian government this month gave emergency-use approval to a COVID-19 vaccine developed by Bharat Biotech International Ltd and state-run Indian Council of Medical Research, and another licensed from Oxford University and AstraZeneca PLC that is being manufactured by the Serum Institute of India.
Moderna did not respond to Reuters’ request for a comment outside business hours, while Tata Medical & Diagnostics did not immediately respond.”
Rupee rises 4 paise to 72.93 against US dollar in early trade
The rupee has opened with marginal gains against the dollar.
PTI reports: “The rupee edged 4 paise higher at 72.93 against the US dollar in opening trade on Monday, tracking positive domestic equities and weak American currency.
Traders said the local unit is trading in a narrow range against the US dollar ahead of the US Federal Reserve meeting this week.
At the interbank forex market, the domestic unit opened at 72.95 against the US dollar and inched higher to 72.93 against the greenback, registering a rise of just 4 paise over its previous close.
On Friday, the rupee had settled at 72.97 against the American currency.
“We are likely to see some positioning adjustments across domestic equities, bonds and Rupee in the holiday shortened week, leading up to the budget on 1st February. The economic survey would be tabled a day prior,” Abhishek Goenka, Founder and CEO, IFA Global said.
“On the global front, the focus this week will be on the US Federal Reserve monetary policy due late Wednesday evening,” Goenka said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.13 per cent to 90.12.
“Asian currencies were mixed against the greenback ahead of the Fed meeting this week,” Reliance Securities said in a research note.
The euro and the sterling have started marginally weaker against the US Dollar this Monday morning in Asian trade. The Japanese yen was marginally weak against the US Dollar in morning trade.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 34.21 points higher at 48,912.75, and the broader NSE Nifty was up 10.05 points at 14,381.95.
Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 635.69 crore on a net basis on Friday, according to exchange data.
Brent crude futures, the global oil benchmark, fell 0.07 per cent to USD 55.37 per barrel.”
Union Budget 2021 | Govt may announce formulation of policy for toys sector
The government may in the Budget next week announce formulation of a dedicated policy for the toys sector to boost domestic manufacturing, sources said.
They said the policy will help in creating a strong ecosystem for the industry in the country and also attract startups.
The Commerce And Industry Ministry is already taking steps to promote domestic manufacturing of toys. It has came out with a quality control order for the sector and had also increased import duty last year on toys.
Quality control order is one of the ways to stop flow of cheap sub-standard toys into the domestic market.
A source said that the country has low share in the international toys industry and India’s exports account for less than 0.5% of global demand, so there are immense opportunities in this segment.
The other areas which could be considered for the sector include promotion of research and development and design centres for toys.
Sensex zooms over 340 points in early trade; financial stocks lead rally
A good start to the week for the stock indices.
PTI reports: “The BSE benchmark Sensex surged 346.55 points in the opening session on Monday, propelled by a rally in financial stocks.
The 30-share index was trading 346.55 points or 0.71 per cent higher at 49,225.09 in opening trade.
Likewise, the NSE barometer Nifty rose 88.40 points or 0.62 per cent to 14,460.30 in early deals.
On the Sensex chart, UltraTech Cement, Bajaj Finance, HDFC, Axis Bank, Bajaj FinServ, HDFC Bank and Mahindra and Mahindra were the prominent gainers.
On the other hand, RIL, PowerGrid, Asian Paints, ONGC and ITC were among the major laggards.
On Friday, the BSE Sensex had tumbled 746.22 points or 1.50 per cent to finish at 48,878.54, posting its largest single-session drop in a month; while, the NSE Nifty had slumped 218.45 points or 1.5 per cent to 14,371.90. However, a day before the Sensex had breached the historic 50,000-level for the first time ever.
Foreign institutional investors offloaded Indian equities worth Rs 635.69 crore on a net basis on Friday.
Analysts are of the view that markets may remain volatile in this holiday-shortened week amid monthly derivatives expiry, quarterly earnings and the upcoming Union Budget.
Indian equity markets would remain closed on Tuesday for the Republic Day holiday.
Asian shares were trading higher in afternoon trade on Monday.
Meanwhile, Brent crude, the global oil benchmark, was trading 0.16 per cent higher at USD 55.30 per barrel on Monday.”
Why SIPs are brain-friendly
Emotions are good for your overall well-being, but those can sometimes get in the way of your financial decision making.
For instance, the possibility of a negative future outcome from an investment could prompt you to not take a decision today even though that investment may be required to achieve your life goal. It is, therefore, important that you distance yourself from your investment decisions.
Here, we discuss how systematic investment plans (SIPs) help moderate emotions and improve your chances of achieving life goals. The possibility of regret in the future because of a bad outcome prompts many to postpone taking a decision today. Suppose you want to accumulate money to make down payment for a house 7 years hence. You know that investing in bank deposits is not enough; lower post-tax returns would mean you have to save more to achieve your goal. But investing in equity could lead to losses.