Rupee rises 16 paise against the Dollar in early trade on Approval of FDI in Railways

Mumbai: The rupee recovered by 16 paise to trade at 61.33 against the dollar in early trade today at the Interbank Foreign Exchange market, tracking positive sentiments after the government approved FDI liberalisation in railway sector. Forex dealers said besides selling of dollars by exporters, strength in other currencies against the American unit overseas also supported the rupee, but a lower opening in the domestic equity market capped the gains.

The Cabinet yesterday cleared the long-delayed proposal for raising FDI limit in defence to 49 per cent and fully opened up the railway infrastructure segment, like high-speed trains, for foreign investment. The rupee had plunged 65 paise in its biggest single-day drop in over six months to end at 61.49 in yesterday’s trade against the greenback, hit by spike in dollar demand and negative cues from local stocks. Meanwhile, the benchmark BSE Sensex fell further by 54.13 points, or 0.21 per cent, to 25,611.14 in early trade today.

Shares of companies whose fortunes are linked to orders from Indian Railways and defence equipment makers are in focus on reports the Cabinet has on Wednesday, 6 August 2014 approved a plan to raise the amount of foreign direct investment allowed in its railway sector. The government has increased the foreign investment limit in the Railway sector to 100% as per the announcement by the Finance Minister Arun Jaitley in the Union Budget 2014-15 on 10 July 2014.

IT stocks may decline after global information technology, consulting, and business process outsourcing services provider Cognizant Technology Solutions Corp. unexpectedly cut its full-year revenue growth forecast to 14% from 16.5%, the slowest pace in its 20-year history, indicating an annual revenue growth of $10.1 billion. The management said that the company was facing client specific challenges.

Bharti Airtel, the promoter of Bharti Infratel will offer to sell up to 4.5 crore shares of Bharti Infratel today, 7 August 2014 through a sale on the separate window provided by the stock exchanges. In addition to the sale of shares, Bharti Airtel may also sell up to 4 crore shares in the sale. The sale of shares will commence at 9:15 IST and end at 15:30 IST today, 7 August 2014. The floor price of share sale shall be Rs 250 a share.

On a consolidated basis, Jindal Steel & Power (JSPL)’s net profit fell 20% to Rs 402 crore on 10% increase in turnover to Rs 4978 crore in Q1 June 2014 over Q1 June 2013.

EBITDA (earnings before interest, taxes, depreciation and amortization) rose 25% to Rs 1629 crore in Q1 June 2014 over Q1 June 2013. EBITDA margin increased to 33% in Q1 June 2014 compared with 29% in Q1 June 2013.

Total production of steel products rose 13% to 800,522 MT on 11% increase in sales to 737,471 MT in Q1 June 2014 over Q1 June 2013, JSPL said in a statement.

Jindal Power’s net profit fell 39% to Rs 195 crore on 9% increase in turnover to Rs 702 crore in Q1 June 2014 over Q1 June 2013. EBITDA rose 1% to Rs 427 crore in Q1 June 2014 over Q1 June 2013. EBITDA margin increased to 61% in Q1 June 2014 compared with 65% in Q1 June 2013. Power generation increased 29% to 1,682 kWh in Q1 June 2014 over Q1 June 2013.

Jubilant FoodWorks, Neyveli Lignite Corporation and Oracle Financial Services will unveil Q1 June 2014 results on Thursday, 7 August 2014.

Ador Fontech turned ex-dividend today, 7 August 2014, for dividend of Rs 3.50 per share for the year ended March 2014.

GHCL turned ex-dividend today, 7 August 2014, for dividend of Rs 2 per share for the year ended March 2014.

LIC Housing Finance turned ex-dividend today, 7 August 2014, for dividend of Rs 4.50 per share for the year ended March 2014.

Munjal Showa turned ex-dividend today, 7 August 2014, for dividend of Rs 3.50 per share for the year ended March 2014.

UPL turned ex-dividend today, 7 August 2014, for dividend of Rs 4 per share for the year ended March 2014.

Venky’s (India) turned ex-dividend today, 7 August 2014, for dividend of Rs 5 per share for the year ended March 2014.

VST Tillers Tractors turned ex-dividend today, 7 August 2014, for dividend of Rs 15 per share for the year ended March 2014.

Facebooktwittergoogle_plusredditpinterestlinkedinmail