TCS CEO N Chandrasekaran salary jumps 18% in FY15

Chandrasekaran earned Rs 1.79 crore as salary, Rs 2.62 crores in perquisites, Rs 86 lakhs in other benefits and and Rs 16 crore in commission. 

Tata Consultancy Services paid its Chief Executive N Chandrasekaran Rs 21.28 crores in FY15, an 18% rise as compared to previous year.

according to a report.

A report says that Chandrasekaran earned Rs. 1.79 crore as salary, Rs. 2.62 crore in perquisites, Rs 86 lakhs in other benefits and and Rs. 16 crore in commission.

Rajesh Gopinath, the company's CFO earned Rs. 2.14 crore during the year, the report adds.

Wipro CEO TK Kurien received a rise of 32% in his salary.

All eyes on Fed! US economy adds 280,000 jobs

The estimate of job growth in March was revised up from 85,000 to 119,000, while April's tally ticked down from 223,000 to 221,000 jobs added. 

Signaling a rebound in overall growth and nudging the Federal Reserve toward its first interest-rate increase in nearly a decade, the U.S. economy gained 280,000 jobs in May, well above the monthly average logged over the last year. Meanwhile, the estimate of job growth in March was revised up from 85,000 to 119,000, while April's tally ticked down from 223,000 to 221,000 jobs added.

In addition to this, workers enjoyed solid wage gains in May. Average hourly earnings of private-sector workers rose 0.3% from the prior month. Earnings were up 2.3% in May from a year earlier, slightly better than the 2% annual pace of recent years and the strongest gain since August 2013.

The sectors with the biggest job gains were professional and business services, adding 63,000 net new jobs, and leisure and hospitality, which added 57,000 jobs. This was followed by health care industry, which generated 47,000 jobs.

However, the unemployment rate went up a notch to 5.5%, but the increase was due to a rise in the number of people entering the
workforce for the first time and looking for jobs. Nevertheless, a broader measure of unemployment, which includes part-time workers who
want full-time jobs and those too discouraged to even search, remained at 10.8 %, not much of a drop as estimated by most of the economists.

Thus, strong private reading of the labor market and falling unemployment claims bolster hopes for a solid jobs report on Friday. The return of stronger job growth is also likely to bolster the resolve of Federal Reserve officials who hope to start raising interest rates from their near-zero level later this year. 

Essar Oil gains on bargain buying

On the BSE, so far 35,000 shares have been traded at the counter as compared to its two-week daily average volume of 50,000 shares. 

Essar Oil continues to trade near the highest level of the day at Rs. 104 - with a surge of almost 3 percent at Rs. 102.60, on the BSE, on account of bargain hunting after the stock tumbled nearly 6 percent in the preceding six trading sessions.

On the BSE, so far 35,000 shares have been traded at the counter as compared to its two-week daily average volume of 50,000 shares.

Meanwhile, the BSE Sensex has slipped 232 points at 26,536. 

Sensex down over 200pts

The NSE Nifty so far has touched a low of 8,036. The India VIX (Volatility) index has soared nearly 5 percent to 18.9625. 

The market is exhibiting weakness in noon deals on the back of lack of buying support in key index heavyweights. The Sensex is trading near the lows of the day, down 220 points at 26,548.
 
The NSE Nifty so far has touched a low of 8,036, and is now down 77 points at 8,037. The India VIX (Volatility) index has soared nearly 5 percent to 18.9625.
 
The broader market are also significantly in red. The CNX Nifty Junior, Midcap and Smallcap indices are down around 1.5 percent each at 18,959, 12,528 and 5,183, respectively.
 
The breadth too extremely negative - out of 1,728 stocks traded so far on the NSE, 1,075 have declined and 380 have advanced.
 
Punjab National Bank (PNB) is the major loser in the Nifty-50 so far. The stock has slumped 4 percent to Rs. 138. 
 
Cairn India, Bank of Baroda and Vedanta have plunged over 3 percent each to Rs. 181, Rs. 155 and Rs. 177, respectively.
 
Tata Steel, IndusInd Bank, Tata Motors, Bosch, Reliance Industries and HDFC are the other major losers.
 
On the positive front, Coal India has soared nearly 2 percent to Rs. 413. Tata Power and Axis Bank are the other notable gainers.
 
A total of 13 stocks have registered a fresh 52-week high, while 77 have dropped to a new 52-week low. 

Is Indian market losing lustre for foreign investors?

An amount of US$7.6 billion has been invested by foreign investors in the first five months of 2015 into Indian markets, which saw the first monthly outflow in May this year.

Markets such as Korea and Taiwan have become more attractive witnessing inflows of USD 1.5 billion and USD 1 billion respectively, making foreign investors pull away from India. With the prospect for equity outflows increasing, the foreign positions are looking expanded , as per an HSBC report, says ET. On the other hand, reports suggested that the Chinese stock market was heating up and could witness some outflows which could augur well for India.  

An amount of US$7.6 billion has been invested by foreign investors in the first five months of 2015 into Indian markets, which saw the first monthly outflow in May this year.

“Equity outflows have started, with the market (Indian) experiencing the first monthly outflow in 2015. We expect this trend to continue as other markets become more attractive," HSBC said.

Owing to pressure on corporate earnings, expensive valuations, high fund exposure, and weaker currency and waning hopes for any further rate cut, HSBC had reduced India’s rank from being ‘overweight’ to ‘underweight’ on May 13.

Recently, it stated that India is still the most overweight market in the region in terms of the holdings of overseas investors. “This is also reflected in high valuations - at a 12-month fwd PE of 17.1x, the market is trading at a 17% premium to its five-year average. Investors have started to take money off the table in India but it is still an overcrowded trade. We believe that valuations need to adjust downwards,” HSBC stated.

“As a result we stay underweight on Indian equities. In the current scenario, sectors we like are capital goods, private banks, power and metals and sectors we would avoid are IT, real estate and healthcare,” the brokerage added. 

Market exhibits lackluster trade

The market continues to trade on a lackluster note on the back of all round selling across all the sectors. 

The market continues to trade on a lackluster note on the back of all round selling across all the sectors.

As on 1230 hrs, the Sensex is down 156 points at 26,613. The Nifty is down 49 points at 8,066.

The CNX PSU Bank index remains top loser - down 1.9 percent. The CNX Auto, the CNX Energy the 

CNX Pharma and the CNX Realty indices have shed 1 percent each.

HDFC twins and Tata Motors are major draggers today, which collectively have accounted for a decline of 83 points for the BSE Sensex and 19 points for the NSE index.

Only 11 stocks are trading on a positive note, out of 50-Nifty stocks.

Punjab National Bank and Cairn India have tumbled over 3 percent each at Rs. 139 and Rs. 181,  

respectively.

Bank of Baroda and Vedanta have dropped 2.8 percent each at Rs. 156 and Rs. 178, respectively. Tata Motors, Tata Steel and IndusInd Bank have shed 2.3 percent each.

HDFC, Hindustan Unilever, Sun Pharma and Asian Paints are among the prominent losers.

Around 13 stocks have hit 52-week high on the NSE counter, while 68 stocks have hit 52-week low.

Singapore Moody's: Tata Chemicals' results improve at slower rate than expected in FY15

Tata Chemical's consolidated results showed revenue up 8% year-on-year to INR172 billion, and reported EBITDA up 19% to INR21.6 billion. 

Moody's Investors Service says that Tata Chemicals Limited's (Ba1 stable) results for the fiscal year ended 31 March 2015 (FY2015), although improved from FY2014, were slightly below expectation.

"Tata Chemicals' EBITDA margin improved at a slower rate than we had expected in FY2015, while delayed payments of fertilizer subsidies led to an increase in net debt," says Kaustubh Chaubal, a Moody's Vice President and Senior Analyst.

"However, more timely subsidy payments and improving conditions at its North American, European and African operations should further improve Tata Chemicals' operations in FY2016," adds Chaubal.

Chaubal was speaking on the release of a new report on Tata Chemicals, entitled "India - Tata Chemicals Limited: Profitability Strengthens in FY2015, but Slightly Lags Expectations". The report was authored by Chaubal and Vincent Tordo, a Moody's Associate Analyst.

Tata Chemical's consolidated results showed revenue up 8% year-on-year to INR172 billion, and reported EBITDA up 19% to INR21.6 billion.

Although the company's EBITDA margin improved to 12.5% in FY2015 from 11.4% last year, the margin was slightly below Moody's expectations and the 15%-16% achieved in FY2013 and FY2012.

By region, Tata Chemicals North America, Inc.'s (TCNA, Ba3 stable) US sales volumes were flat, mainly because extreme weather conditions interrupted operations at its boiler plant in Wyoming.

But with production issuers sorted, FY2016 sales volumes already tied up, and a shrinking capacity in the overall soda ash market, Moody's expects TCNA's EBITDA margins to improve from the current 23%.

The company's African sales volumes were down 22%, but Moody's expects the restructuring of its Kenya operations should improve its operations in the region. Similarly, sales volumes for the company's European business were down 26%, but the installation of a power generating turbine in the UK by September 2015 should support its operations there.

Finally, while subsidy receivables for its Indian fertilizer business increased to INR19.7 billion from INR18 billion, and net debt increased to INR69 billion from INR66 billion, quicker subsidy payments going forward and the government's new gas pooling policy for the urea sector should reduce working capital needs, improve liquidity, and support EBIT margins.

The new gas pooling policy, in effect since 1 June, will enable Tata Chemicals to run its plants at full capacity, making it economic to produce beyond cut-off capacity. As a result, Moody's expects the fertilizer business could return to the 7%-9% EBIT margins achieved in FY2012 and FY2013, from 5% in FY2015. 

Strong US employment data ​puts rupee under pressure

The ​Indian rupee​,​ after a weak start, lost ​further ground and was trading weaker against ​the ​dollar on Monday on account of capital outflows by foreign funds amid strength of American currency against basket of other major currencies overseas. 

Rupee is currently trading at 64.07​ per dollar​, weaker by 32 paise from its previous close of 63.75 on Friday

​The ​Indian rupee​,​ after a weak start, lost ​further ground and was trading weaker against ​the ​dollar on Monday on account of capital outflows by foreign funds amid strength of American currency against basket of other major currencies overseas.

Besides, weakness of local equities due to uncertainty over Greece’s debt obligations and strong US labour market report which added 280,000 jobs in May, the largest gain since December, indicating that the US economy is returning to growth after contracting in the first three months of this year, sapped risk appetite for all the emerging market's assets, including local currency.

On the global front, dollar held firm in early Asia on​ Monday, trading near 13-year highs against the yen after strong U.S. employment data bolstered expectations for an interest rate hike by the Federal Reserve before year-end.

Rupee is currently trading at 64.07, weaker by 32 paise from its previous close of 63.75 on Friday. The currency touched a high and low
of 64.09 and 64.00 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 63.89 and for Euro stood at 71.81 on June 5, 2015.

Emkay Global gains after settling case with SEBI

The stock is now up almost 2 percent on the BSE.

Emkay Global Financial Services is currently trading at the highest level of the day - with a gain of almost 2 percent at Rs. 62 on the BSE, after settling case with SEBI.

On Friday, media reported that the leading brokerage Emkay Global settled a Securities and Exchange Board of India (SEBI) investigate into alleged violations of broker regulations by paying about Rs. 11 lakh towards settlement charges.

So far, the counter has seen trades of around 600 shares as against the two-week daily average volume of 5,033 shares.

Meanwhile, the BSE Sensex is quoted at 26,655 - down 113 points.

Rate cut offers no respite to firms raising funds

The Steel Authority of India (SAIL) had to raise its interest rates by 12 bps as compared to its earlier rates, as it mopped up Rs 420 crore at 8.35% with a three-year maturity, says a report. 

Borrowing costs for corporates have risen despite the Reserve Bank of India giving a rate cut thrice thrice this year. The Steel Authority of India (SAIL) had to raise its interest rates by 12 bps as compared to its earlier rates, as it mopped up Rs 420 crore at 8.35% with a three-year maturity, says an ET report.

Power Grid Corporation will reportedly hit the market with bonds this week along with Power Finance Corporation and Rural Electrification Corporation that are regular issuers. Reports indicate that they too may have to pay higher interest rates to raise funds.

In line with the broader consensus, RBI decided to trim repo rate by 25 basis points and kept the CRR unchanged at 4%. However, the wording of monetary policy remains cautious and indicates a long pause before the next move on the interest rates. The policy statement mentions that there is an element of uncertainty to the inflation outlook, wherein the probability of poor monsoon and volatility in oil prices pose as a serious risk. Governor Raghuram Rajan has added that the interest rate move in June is front loaded, which otherwise would had occurred in August. This implies that next policy meeting in August will yield nothing much on the interest rates front.

Top corporate news of the day - June 5, 2015

Infosys said that it has completed the acquisition of Kallidus Inc., a San Francisco based digital as well as mobile commerce solutions provider which operates under the brand name, Skava. 

Infosys said that it has completed the acquisition of Kallidus Inc., a San Francisco based digital as well as mobile commerce solutions provider which operates under the brand name, Skava.

Aditya Birla Nuvo has informed exchanges that it has entered into definitive joint venture agreement with MMI Holdings, a leading South African Insurance based financial services group, to enter into the health insurance and wellness business in India.

Mahindra First Choice Services (MFCS) has projected total investment of almost Rs1.25bn in Uttar Pradesh over the next five years.

Bharti Airtel said it has raised US$1bn through issuance of 10-year bonds to international investors.

NMDC Limited, has rolled over the existing iron ore prices to June month in anticipation of demand growth even as the off-take from the domestic steel sector remained subdued in the past couple of months, according to the officials.

At a time when credit growth has been under pressure for most lenders, ICICI Bank is confident of growing its loan book 3-4% ahead of the system.

SKS Microfinance Limited announced a 1.55% reduction in the interest rate charged to borrowers to 22% from the 23.55% level with effect from next month. 

ONGC Videsh is withdrawing from the Poco-Verde area in the Sergipe-Alagoas offshore basin where Brazil's state-run Petroleo Brasileiro SA recently discovered a new light oil deposit.

Fitch assigned a stable outlook to Power Finance Corporation and Rural Electrification Corporation.

L&T Infrastructure Finance Company will raise Rs7.5bn on private placement basis via non convertible debentures.

Suzlon said it has bagged a 90.30 MW turnkey project from ReNew Power.

Nestle's woes are far from over as after Delhi, Gujarat  banned the instant noodle snack for one month.

Top economy news of the day - June 8, 2015

India has slapped anti-dumping duty of up to USD316 per tonne on imports of certain steel products from three countries, including China, to protect domestic producers from below-cost inbound shipments. 

India has slapped anti-dumping duty of up to USD316 per tonne on imports of certain steel products from three countries, including China, to protect domestic producers from below-cost inbound shipments.

In a raft of changes to make it easier for businesses to operate in the country, the government has relaxed norms for private companies including those pertaining to related party transactions, acceptance of deposits and auditor appointments.

India's exports are likely to remain flat at USD 310.5 billion-level or may even fall this financial year due to slow global demand for merchandise, Assocham has said. 

Rupee breaches 64/$ levels

The rupee today opened at 64.05 against the US dollar.

The rupee today opened at 64.05 against the US dollar. 

The rupee ended at 63.75 on Friday , stronger by 25 paise from its previous close of 64.00 on Thursday.

Asian markets are mixed with Japan's Nikkei and Hong Kong's Hang Seng index in the red. China's Shanghai index was, however, higher. On Wall Street, Dow Jones  fell 0.31%,  

S&P dropped 0.14% and Nasdaq gained 0.18%.

PSU banks will be in focus as the Finance Minister Arun Jaitley will meet the heads of public sector banks later this week to review the banks' annual performance and bad loans situation as also to persuade them to pass on RBI's rate cut benefit to borrowers for propping growth, says a report.

Nifty slips below 8100 in early trade

Soon, the BSE Sensex and NSE Nifty changed course and slipped into the negative zone, as selling pressure continued in select shares. 

The BSE Sensex opened higher by 46-odd points at 26,814 and the NSE Nifty added ten points at 8,124. The key benchmark indices touched a high at 26,827 and 8,131, respectively.

Soon, the BSE Sensex and NSE Nifty changed course and slipped into the negative zone, as selling pressure continued in select shares.

The 30-shares and the 50-shares indices tumbled to a low of 26,638 and 8,070, respectively.

Now, the BSE Sensex is down almost 100 points at 26,672 and the NSE Nifty is also down 30 points at 8,085.

In the broader market, the CNX Smallcap and Midcap indices are down 0.2-0.5 percent each at 5,249 and 12,660, respectively.

Among sectors, the CNX Auto index has declined 0.4 percent at 8,055. The PSU Bank, Finance and Bank Nifty indices are down 0.2 percent each.

On the other hand, the CNX Metal index has advanced nearly a percent at 2,333 and the Pharma index has gained 0.3 percent at 11,744.

Tata Motors is the top Nifty loser - down 2.4 percent at Rs. 431. IndusInd Bank, BHEL, Bank of Baroda, Hero MotoCorp and Cairn India have dropped 1.5 percent each.

On the other hand, the Coal India has spurted over a percent at Rs. 411. Wipro, Dr. Reddy's, NMDC and ITC are the other notable gainers.

Infosys expects acquisitions to bring in $1.5 bn additional revenues

The company is also planning to bring attrition levels down to the lowest in the industry. 

Infosys is expecting acquisitions to bring in additional revenues of about $1.5 bn, according to reports.

A report says that the company is also planning  to bring attrition levels down to the lowest in the industry.

"The mission of our management is to prepare the company to achieve an aspirational goal of $20 billion in revenue by calendar year 2020," Infosys CEO Vishal Sikka said in the company's annual report.

In February, Infosys had announced its first major acquisition.

After flat start; Sensex slips into red

Coal India, Bajaj Auto, Wipro, TCS and Maruti are among the gainers, whereas Tata Motors, Cipla, BHEL, HUL, ICICI Bank are losing sheen on BSE. 

At 9:23 AM, the S&P BSE Sensex is trading at 26,676 down 92 points, while NSE Nifty is trading at 8,089 down 25 points.

The BSE Mid-cap Index and BSE Small-cap Index was flat.

Coal India, Bajaj Auto, Wipro, TCS and Maruti are among the gainers, whereas Tata Motors, Cipla, BHEL, HUL, ICICI Bank are losing sheen on BSE.

Asian markets are mixed with Japan's Nikkei and Hong Kong's Hang Seng index in the red. China's Shanghai index was, however, higher. On Wall Street, Dow Jones  fell 0.31%,  

S&P dropped 0.14% and Nasdaq gained 0.18%. PSU banks will be in focus as the Finance Minister Arun Jaitley will meet the heads of public sector banks later this week to review the banks' annual performance and bad loans situation as also to persuade them to pass on RBI's rate cut benefit to borrowers for propping growth, says a report.

The developments in Greece will play out in markets world over with European Commission president, Jean-Claude Juncker saying Greek Prime Minister Alexis Tsipras has failed to deliver alternative economic reforms that he had "promised. He further urged Tsipras to arrive at some alternative proposals "swiftly" to enable negotiations to continue this week. 

The release of Chinese trade balance data for the month of May 2015 and Germany's industrial production data for the month of April 2015 on June 8, 2015 are among macro points global investors will watch out for this week. Greece was due to repay 303.3 million euros to the International Monetary Fund on June 5, 2015. But Athens notified the IMF that it plans to bundle all its June loan repayments into one payment of around euro 1.6 billion due by the end of the month.