Jaitley predicts 8% growth rate this year

The country is able to do much better than 7.5% growth rate, says Union Finance Minister Arun Jaitley 

India's economic growth rate which stands at 7.5% in not its best potential growth rate. The country is able to do much better than 7.5% growth rate, Union Finance Minister Arun Jaitley told CNBC news channel.

Jaitley, who is on a 10-day visit to the US, said that he is extremely happy with what the government has achieved in the last one year. However, the minister feels that India has the ability to do much better, the news channel added.

The minister said that there is a lot of restlessness in the government because we feel that the 7.5 per cent growth rate we have achieved is not our best potential growth rate, according to the news channel.

Jaitley predicted a growth rate of 8 per cent this year and said that the government will set higher GDP growth targets in the future.

HDFC Bank up 1.2% on reducing base rate

The bank has reduced its base rate by 15 bps to 9.70 percent with effect from 15 June 2015. 

HDFC Bank has strengthened its gains in early morning deals, and is trading at the highest level of the day - with a jump of 1.3 percent to Rs. 1,018 on the BSE, on the back of positive news flow.

According to media reports, the bank has reduced its base rate by 15 bps to 9.70 percent with effect from 15 June 2015.

So far, the counter has witnessed trades of around 26,000 shares as compared to its two-week daily average volume of 105,000 shares.

Meanwhile, the BSE Sensex has surged 214 points at 27,047. 

Arun Jaitley rings closing bell at NYSE

Union Finance Minister Arun Jaitley, who is on a nine-day visit to the US, rang the customary closing bell at the NYSE at the close of trading day at 4 PM

Union Finance Minister Arun Jaitley rang the closing bell at the New York Stock Exchange (NYSE).

Jaitley, who is on a nine-day visit to the US, rang the customary closing bell at the NYSE at the close of trading day at 4 PM.

Before ringing the bell, Jaitley met senior officials of the stock exchange and toured the trading floor where the Indian tricolor was displayed at various TV screens.

After arriving in the city, Jaitley attended a luncheon meeting with executives of top US companies organised by the industry chamber FICCI.
In the evening, he attended a reception hosted by the Indian law firm Shardul Amarchand Mangaldas. 

Strides Arcolab drops as FIPB rejects FDI proposal

The stock so far has plunged 5.4 percent to a low at Rs. 1,091 on the BSE.

Strides Arcolab is trading on a negative note after the Foreign Investment Promotion Board (FIPB) has rejected proposal of the company.

On Wednesday, after market, the company informed the BSE that the Press Information Bureau, Government of India, has issued a press release dated June 17, 2015 on the outcome of the FIPB meeting held on May 28, 2015 which stated that company's application of issuing equity shares to non-resident shareholders of Shasun Pharmaceuticals under the proposed Scheme of Amalgamation has been rejected.

However, the company is awaiting a formal communication from FIPB in this regard.

The stock so far has plunged 5.4 percent to a low at Rs. 1,091 and is now down 2 percent at Rs. 1,129.

Meanwhile, the Sensex has jumped 206 points at 27,039. 

Bank of Greece warns of 'painful' euro and EU exit

"Failure to reach an agreement would... mark the beginning of a painful course that would lead initially to a Greek default,” says Bank of Greece 

Bank of Greece has warned for the first time that the country could be on a "painful course" to default and exit from both the eurozone and the EU.

The central bank also warned the country's economic slowdown would accelerate without a deal.

"Failure to reach an agreement would... mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country's exit from the euro area and, most likely, from the European Union," the Bank of Greece said in a report.

Bank of Greece firmly believes that striking an agreement with our partners is a historical imperative that we cannot afford to ignore, the central bank said in its Report on Monetary Policy 2014-2015 on Wednesday.

A compromise has been reached on the main conditions attached to this agreement and that little ground remains to be covered. Besides, the lowering of the primary surplus targets is a decision of paramount importance that significantly extends the time needed for fiscal adjustment and allows for additional degrees of freedom in the conduct of fiscal policy, the report added.

Equally important will be the reaffirmation and articulation in more specific terms of our partners’ willingness to provide debt relief, as initially stated at the Eurogroup meeting of 27 November 2012. What we need today is a viable debt deal which will spare future generations burdens that we have no right to saddle them with, Bank of Greece further said. 

Sensex over 200 points; pharma, capital goods stocks gain

The BSE Mid-cap Index is trading up 0.45% at 10,391, whereas BSE Small-cap Index is trading up 0.57% at 10,858. 

Following more than 450-points surge, the market has started the day on a firm note for the fifth straight day.

Overnight, the Federal Reserve in its meeting indicated that it could raise interest rates at some point in 2015.

The BSE Sensex opened higher by 85-odd points at 26,917 and the NSE Nifty added 22 points at 8,113.

The key benchmark indices touched a high at 26,959 and 8,119, respectively.

At 9:29 AM, the S&P BSE Sensex is trading at 27,045 up 213 points, while NSE Nifty is trading at 8,141 up 49 points.

The BSE Mid-cap Index is trading up 0.45% at 10,391, whereas BSE Small-cap Index is trading up 0.57% at 10,858.

Dr. Reddy's, ICICI Bank, Axis Bank, Cipla, Wipro, Sun Pharma and L&T are among the gainers, whereas Bharti Airtel, Tata Steel, Tata Power and GAIL are losing sheen on BSE.

Though the market seemed to be sailing smooth on Wednesday, the last two minutes of trade in Nifty options suggests some choppiness at start. Total OI added was ~2.38mn shares with an approximate value of Rs. 1,927crore.

The global cues are mostly healthy. Asian stocks are up. US indices just about managed a positive close despite some swings.

All sectoral indices are trading in green, the CNX Bank Nifty and Finance indices have advanced 0.4 percent each at 17,655 and 7,190, respectively.

The CNX Pharma, IT and Energy indices are the other gainers.

In the Nifty space - Asian Paints has jumped nearly 2 percent at Rs. 723. Cipla, Sun Pharma, ICICI Bank, BPCL and Axis Bank have spurted a percent each.

On the losing side, Bharti Airtel has slipped 1.4 percent at Rs 416. Tata Steel has shed almost a percent at Rs. 302.

Yes Bank, Zee Entertainment, Tech Mahindra, Cairn India and Bosch have shed over 0.5 percent each.

Top corporate news of the day-June 18, 2015

Bharti Airtel said its agreement with Helios Towers Africa for sale of tower assets in Tanzania and Tchad signed last year has been terminated.

Bharti Airtel said its agreement with Helios Towers Africa for sale of tower assets in Tanzania and Tchad signed last year has been terminated.

Private sector HDFC Bank has cut base rate or minimum lending rate by 0.15%, a move which will lower EMIs for its borrowers.

The government's resolve to defend its position in the Rs. 204bn retrospective taxation case with Cairn India, even as it has stopped pursuing similar cases with other multinational companies including Vodafone and Shell, highlights the issues facing the petroleum explorer.

ONGC Videsh Limited (OVL), the external arm of state-run explorer Oil and Natural Gas Corporation, will invest up to USD400mn for exploration activities in Kazakhstan.

After launching a new brand, budget carrier, SpiceJet put up 50,000 tickets on sale for four days to popular international destinations such as Colombo, Bangkok and Dubai.

Cipla Ltd, India's fourth-largest drugmaker by sales, is planning to enter Latin America and Eastern Europe to tap into growing demand for generic drugs in emerging markets, Chief Executive Subhanu Saxena said.

Nestle India said it's investigating the complaint of live beetles reportedly found in a baby milk food supplement produced by it and is fully cooperating with the authorities on the matter.

After setting up 1,500 fuel retail outlets and having 1,400 under implementation, Essar Oil is planning to set up another 2,100 retail outlets, taking the total tally to 5,000 retail outlets. This will make Essar Oil largest private fuel retailer in the country. 

Mahindra First Choice Wheels, the multi-brand pre-owned cars division of Mahindra & Mahindra, has set a target of selling around 7,000 units of small commercial vehicles (SCVs) this financial year.

State-run NTPC said that it has entered into an agreement with Jammu and Kashmir State Power Development Corporation Ltd (JKSPDCL) to form a joint venture company for mining at Kudanali-Luburi coal block in Odisha. 

Top economy news of the day - June 18, 2015

The Cabinet Committee on Economic Affairs increased the minimum support price of paddy by Rs. 50 to Rs. 1,410 per quintal for this year. 

The Cabinet Committee on Economic Affairs (CCEA) increased the minimum support price (MSP) of paddy by Rs. 50 to Rs. 1,410 per quintal for this year.

The Cabinet cleared 'Housing for All by 2022' scheme with an increase in interest subvention to 6.5% on housing loans to economic weaker section (EWS). 

Government has increased import duty of flat and long steel products effective 16 June. Duty on flat products has been increased from existing 7.5% to 10% and on long products it was raised to 7.5% from 5.5% at present.

The government has cancelled approvals of 22 special economic zones, including that of Tamil Nadu Industrial Development Corporation and True Developers, as no "satisfactory" progress was made to execute the projects 

The government approved Rs75.3bn projects in Maharashtra for widening of stretches of NH 6 under its flagship road building programme NHDP.

Proposals for foreign direct investment amounting to around Rs40bn by four pharma and medical devices firms, including Torrent Pharmaceuticals and Biocon's research services arm Syngene, were approved by the government. 

Gearing up to roll out GST from April 1, 2016, the Finance Ministry set up two committees to suggest tax rates and look into IT preparedness for the new indirect tax regime. 

Rupee opens at 63.94/$

The global cues are mostly healthy. Asian stocks are up. US indices just about managed a positive close despite some swings. 

The rupee today opened at 63.94 against the US dollar. The local unit hit a low of  and a high of  against the US dollar.

On Wednesday,  rupee ended at 64.11 against the US dollar. The global cues are mostly healthy. Asian stocks are up. US indices just about managed a positive close despite some swings.

The Federal Reserve left its benchmark interest rate unchanged at near zero termed the US economic growth as moderate and added that there were still signs of cyclical weakness in the economy, especially in the labor market. While the world is debating on the timing of the first rate cut, Janet Yellen made it clear that the timing of a first decision to raise rates is something that should not be overblown whether it is September or December or March. What matters is the entire path of rates, Yellen added. 

Arun Jaitley to hold meetings with top CEOs in US

Finance Minister Arun Jaitley will also hold meetings with the management of New York Stock Exchange 

Union Finance Minister Arun Jaitley will hold meetings with Foreign Institutional Investors (FII) and top CEOs of American financial companies during his stay in US.

 Jaitley, who left for a nine-day visit to the US on Wednesday night, will arrive in New York today. The finance minister will hold a luncheon meeting with executives of top US companies, organised by FICCI.

 Jaitley will discuss broad policy agenda for reviving India’s growth, what India expects from long term investors and how the Government is focused on making India an easier destination to do business. 

The Finance Minister will also hold meetings with the management of New York Stock Exchange (NYSE).