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56,000 IT employees in danger

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Indian IT industry

New Delhi, May 13: The Indian IT industry of $150-billion is planning laying off 56,000 of its employees earlier it was seen as white-collar job.

For years, many IT giants like Infosys, Tech Mahindra, Cognizant, etc considered as the placement hub. But now they are on the verge of saying bye to their employees.

According to companies, the reason for lay-off is their employees are non-performers or under performers which can affect their career growth as well.

France-based Cap Gemini SA plan to let go of 4.5% of their workforce in 2017. Cognizant has placed more than 15,000 employees in the lowest category and Infosys has placed more than 3,000 senior managers in the category of employees needing improvement.

The numbers were collated by Mint after extensive interviews with 22 current and former employees across these seven companies.

Many reasons are there for massive layoffs:-

1. The trend of automation

Due to automation many jobs are being replaced by machines especially which are repeatitive. It helps in saving costs and improving performance.

2. The protectionism introduced by US.

Due to increase in H1B visa cost to $130,000 from existing $60,000. Australia, Singapore and many other popular lucrative markets made both time-consuming and costly.

3. Rises of protectionist politics in US, Europe

Pressure of rise of protectionist politics in advanced economies contracts the outsource contracts to firms in India.

Thus, in the short- and medium-term, Indian IT sector is in for some rough times, but their are silver linings too. The push to increase digitisation in India will, over a period of time, lead to a large local market opening up.

According to IT companies it will take some time to materialise meanwhile massive layoffs are compulsory.

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Market Review: Amid volatility equity indices end week with marginal gains

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Sensex Nifty Equity

Mumbai, May 26: The key Indian equity indices settled with marginal gains in the week ended Friday after largely volatile trade throughout the week.

Value buying, a fall in global crude oil prices and appreciation in rupee on Friday led to a nearly one per cent rise in both the BSE and NSE on the week’s last trading day, which eventually lifted the indices on a week-on-week basis.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE rose by 76.57 points or 0.22 per cent to close at 34,924.87 points on a weekly basis.

The wider Nifty50 of the NSE closed the week’s trade at 10,605.15 points — up 8.75 points or 0.08 per cent — from its previous close.

“Markets ended the week with marginal gains after a sharp bounce back from the lows of 10,417 points (on Nifty) towards the end of the week. Buying by domestic institutions, stabilisation of rupee and crude prices helped the Nifty to make a sharp recovery. This week’s marginal gain came after the sharp fall seen last week,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

Equity99’s Senior Research Analyst, Rahul Sharma said: “Volatility was high last week due to political developments in Karnataka. Also, weak global clues and high crude prices added to sentiments.”

“Markets last week ended flat, but (there was) extremely high volatility influenced by quarterly results, crude oil price movement and geopolitical news,” said Prateek Jain, Director of Hem Securities, adding that market observed a slump in the crude oil and dollar improved the frail macro indicators lighting a fire in the Nifty.

On the currency front, the rupee strengthened by 23 paise to close at 67.78 against the US dollar from its previous week’s close of 68.01 per greenback.

In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors sold scrips worth Rs 3,227.06 crore, while the domestic institutional investors purchased stocks worth Rs 4,364.93 crore during the week.

Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) divested equities worth Rs 2,988.86 crore, or $438.81 million, in the week ended May 25.

Sector-wise, PSU Banks, IT and pharmaceuticals gained the most, while realty, energy and FMCG lost the most, Jasani told IANS.

The top weekly Sensex gainers were: State Bank of India (up 11.62 per cent at Rs 267); Bharti Airtel (up 4.06 per cent at Rs 376.65); Infosys (up 3.81 per cent at Rs 1,228.80); Coal India (up 3.62 per cent at Rs 276.05); and ICICI Bank (up 3.53 per cent at Rs 296.50 per share).

The major losers were: ONGC (down 5.24 per cent at Rs 175.35); Tata Motors (DVR) (down 4.74 per cent at Rs 171.75); Tata Steel (down 4.11 per cent at Rs 567.20); ITC (down 3.62 per cent at Rs 271.95); and Tata Motors (down 3.62 per cent at Rs 294.20 per share).

IANS

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Videocon Case: SEBI issues notice to ICICI Bank, CEO Chanda Kochhar

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chanda-kochhar
ICICI Bank CEO Chanda Kochhar

Mumbai, May 25: Private lender ICICI Bank on Friday said that Securities and Exchange Board of India (SEBI) has sought responses from the company and its MD and CEO Chanda Kochhar on alleged non-compliance of the “erstwhile ‘Listing Agreement’ and the ‘Listing Obligations and Disclosure Requirements) Regulations, 2015′”.

According to a BSE filing, SEBI sought the reply via a notice issued to the private lender and its MD and CEO on May 24.

As per the securities market regulator’s LODR regulations, all listed entities are mandated to immediately disclose relevant and important information to stock exchanges.

“The MD and CEO and the bank received a notice from SEBI on May 24, 2018… requiring responses on matters relating to alleged non-compliance with certain provisions of the erstwhile ‘Listing Agreement’ and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015′,” the filing said.

“The notice has been issued based on information furnished by the bank or its MD and CEO to diverse queries made by SEBI concerning dealings between the bank and Videocon Group and certain dealings allegedly between Videocon Group and Nupower, an entity in which Deepak Kochhar spouse of MD and CEO has economic interests.”

The bank said that appropriate responses would be submitted to SEBI in accordance with regulation.

The SEBI notice comes more than a month after nepotism and conflict of interest allegations were levelled against Kochhar. It has been alleged that Kochhar had wrongfully granted a loan to Videocon Group and that her husband’s company — NuPower Renewables — received a loan from the Videocon Group’s Chariman Venugopal Dhoot on a quid pro quo basis.

Chanda Kochhar on May 7 had said that private lender works under and abides by all regulatory norms and that it has been fully cooperating with regulatory and investigative agencies.

On March 29, ICICI Bank Chairman M.K. Sharma had said that reports alleging nepotism by Kochhar were unfounded and malicious in nature.

Saying that ICICI Bank’s exposure to the Videocon Group (Videocon Industries and 12 of its subsidiaries or associates as co-obligors) for a debt consolidation programme and for the group’s oil and gas capital expenditure programme aggregating approximately Rs 40,000 crore was less than 10 per cent.

Sharma had asserted that no individual bank employee has the ability to influence decisions of the credit committee.

He clarified that none of “the investors of NuPower Renewables are borrowers of ICICI Bank” and that Kochhar did not chair the committee that had lent to Videocon.

In addition, Sharma said at the press briefing that Kochhar has been making all her disclosures in accordance with the regulatory guidelines under the Companies Act and the Banking Act.

Sharma revealed that the bank has ‘satisfactorily’ replied to the questions of all the regulators, which he described as an ongoing process between “a regulated entity like a bank and the regulators and other government departments”.

In 2012, a consortium of 20 banks and financial institutions sanctioned credit facilities to the Videocon Group for a debt consolidation programme and for its oil and gas capital expenditure programme aggregating to approximately Rs 40,000 crore.

IANS

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Equity indices rise as oil prices fall

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Mumbai, May 25: A fall in global crude oil prices and value buying lifted the key Indian equity indices on Friday.

As per the exchanges’ data, robust buying support was seen in oil and gas, auto and banking stocks.

However, geopolitical uncertainties after US President Donald Trump pulled out of the planned talks with North Korea’s leader Kim Jong-un capped gains.

At 3.30 p.m., the wider Nifty50 of the National Stock Exchange (NSE) provisionally closed at 10,605.15 points, up 91.30 points or 0.87 per cent from the previous close of 10,513.85 points.

Similarly, the barometer 30-scrip Sensitive Index (Sensex) of the BSE, which had opened at 34,753.47 points, closed at 34,924.87 points (3.30 p.m.) — up 261.76 points or 0.76 per cent — from its previous session’s close of 34,663.11 points.

The Sensex touched a high of 35,017.93 and a low of 34,700.52 points. The BSE market breadth was bullish with 1,635 advances and 1,001 declines.

The major gainers on the BSE were ONGC, Tata Steel, Yes Bank, IndusInd Bank and Adani Ports while Coal India, ITC, State Bank of India (SBI), Tata Consultancy Services (TCS), and ICICI Bank were the major losers.

On the NSE, the top gainers were IndianOil, Indiabulls Housing Finance and Hindalco Industries. The major losers were Bharti Infratel, Tech Mahindra and Coal India.

IANS

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