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Healthy results, strong rupee lift indices to record levels

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SENSEX NIFTY MARKET

Mumbai, July 26: Key Indian equity indices — S&P BSE Sensex and the NSE Nifty50 — settled at new record closing levels on Thursday as healthy corporate earnings and rupee appreciation boosted investors sentiments.

The two indices — Sensex and Nifty — closed at their benchmark settlement levels of 36,984.64 points and 11,167.30 points respectively, after setting fresh intra-day highs of 37,061.62 points and 11,185.85 points earlier in the day.

According to analysts, volatility was witnessed in the market ahead of the expiry of July F&O derivatives.

Index-wise, the wider Nifty on the National Stock Exchange closed at 11,167.30 points, higher by 35.30 points or 0.32 per cent from its previous close of 11,132 points.

The barometer Sensex on the BSE rose by 126.41 points or 0.34 per cent to close at its highest closing level of 36,984.64 points, against the previous close of 36,858.23 points. It touched an intra-day low of 36,852.53 points.

In the broader markets, the S&P BSE mid-cap rose by 0.76 per cent and the S&P BSE small-cap ended 0.31 per cent higher from its previous close. The BSE market breadth was tilted towards the bulls with 1,335 advances and 1,238 declines.

“Markets rallied on Thursday after taking a breather on Wednesday. It was a volatile session (in a range) as it was the derivative expiry day of the July near month series,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

He said the indices ended with healthy gains as sentiments were boosted on the back of better-than-expected quarterly results from corporates.

BNP Paribas Mutual Fund’s Senior Fund Manager for Equities, Abhijeet Dey said: “Additionally, markets also heaved a sigh of relief at US President Donald Trump and the European Commission chief’s plan to ease trade tensions.”

On the currency front, the rupee closed at 68.67, appreciating by 12 paise from the previous close of 68.79 per dollar.

Investment-wise, provisional data with exchanges showed that foreign institutional investors bought scrip worth Rs 2,453.57 crore while the domestic institutional investors sold stocks worth Rs 2,716.04 crore.

Sector-wise, the S&P BSE banking index gained the most, by 429.59 points, followed by the finance index, up 78.64 points and the healthcare index which rose by 55.09 points.

On the contrary, the S&P BSE IT index fell by 98.82 points, the metal index was down 84.59 and the consumer durables index ended lower by 83.94 points from its previous close.

The major gainers on the Sensex were State Bank of India, up 5.62 per cent at Rs 286.70; ICICI Bank, up 4.08 per cent at Rs 285.80; Power Grid, up 4.04 per cent at Rs 182.75; ONGC, up 1.98 per cent at Rs 162.15; and Axis Bank, up 1.84 per cent at Rs 541.65 per share.

The top losers were Maruti Suzuki, down 3.70 per cent at Rs 9,396.65; Yes Bank, down 3.61 per cent at Rs 369.60; Asian Paints, down 1.23 per cent at Rs 1,432.50; Larsen and Toubro, down 1.06 per cent at Rs 1,306.05; and Tata Consultancy Services, down 0.81 per cent at Rs 1,963.305 per share.

IANS

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MTNL plans to sell assets in Mumbai through DIPAM

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MTNL chairman Purwar

New Delhi, Sep 19 : State-run telecom operator MTNL has submitted a set of assets for monetisation through the framework of the Department of Investment and Public Asset Management (DIPAM), which comes under the Finance Ministry.

The assets proposed for sale include land, staff quarters and telephone exchange in Mumbai, said Anurag Thakur, Minister of State for Finance and Corporate Affairs, in reply to a question in the Lok Sabha.

“MTNL has submitted a set of assets for monetisation through the DIPAM Framework…. No property in Delhi is presently under monetisation through the DIPAM Framework,” he said.

He informed the Lok Sabha that international property consultants have been appointed for end-to-end transaction advice on monetisation of these properties.

Noting that the asset monetisation process is a complex one involving multiple stakeholders and agencies, he said that a specific time frame for the completion of these monetisation transactions cannot be defined at present.

The value at which the assets would be monetised would depend on the feasibility of monetisation of the asset, the monetisation model and the market conditions prevailing at the time of monetisation, Thakur said, adding that it would be difficult to anticipate the sale proceeds presently.

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Centre mulls closure of PSUs up for sale on case-to-case basis

Thakur noted that the government has given ‘in-principle’ approval for strategic disinvestment of 34 CPSEs, including subsidiaries and units of CPSEs.

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Centre proposes Disinvestment

New Delhi, Sep 19 : The Union government may consider the closure of central public sector units (PSUs) even if they have been approved for strategic disinvestment on a case-to-case basis.

In a written reply to a question in the Lok Sabha, Minister of State for Finance Anurag Thakur said that the government follows a policy of closure of centre public sector enterprises (CPSEs) in terms of the approved revised guidelines dated June 14, 2018 issued by the Department of Public Enterprises (DPE).

“The government may consider the closure of the CPSEs even in cases earlier approved for strategic disinvestment on a case to case basis,” Thakur said, adding that the guidelines issued by the DPE on the closure of CPSEs addresses the concerns regarding the employees and assets.

Thakur noted that the government has given ‘in-principle’ approval for strategic disinvestment of 34 CPSEs, including subsidiaries and units of CPSEs.

Several of these CPSEs are loss making and sick entities where the government in the past had also faced difficulties in strategic disinvestment. Such companies which have lost value could be the ones that may be recommended for closure.

In certain other CPSEs, policy of minority stake sale without transfer of management control through various SEBI approved methods is being followed in order to unlock the value, promote public ownership and higher degree of accountability, he said.

The various modes of disinvestment commonly used for minority stake sale includes Initial Public Offer (IPO), Follow on Public Offer (FPO), Offer for Sale (OFS), buyback of shares and Exchange Traded Funds (ETF).

“Transaction receipts on conclusion of disinvestment transactions depend on the prevailing market conditions and investors’ interest,” the minister said.

The budget estimate (BE) of disinvestment receipts for 2020-21 from disinvestment of CPSEs was fixed at Rs 1.20 lakh crore.

The already lagging disinvestment plans, have been severely impacted by the ongoing pandemic and deadlines for submission of bids major PSUs on the block, such as oil major BPCL and national carrier Air India have been postponed.

The government is also coming up with a new strategic disinvestment policy as announced by the Finance Minister in May. According to sources, the Cabinet may soon take up and approve the new strategic disinvestment policy, which would include the banking and insurance sector.

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Doubts raised on transparency of 2 PM funds; LS passes Taxation Bill

The Congress raised questions on creation of PM CARES when PMNRF was already present and it was used to help states during various disasters from 2015 to till now.

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tax

New Delhi, Sep 19 : The Lok Sabha on Saturday passed Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020 amid counter allegations levelled by both the BJP and the Congress members on their top party leadership.

Linking the present government’s PM CARES Fund and Prime Minister National Relief Fund (PMNRF) set up by India’s first Prime Minister Jawaharlal Nehru in 1948, both the parties raised suspicion over transparency of both the funds.

The cross allegations created uproar for the second consecutive day in the lower House when Union Minister of State Anurag Thakur on Saturday again raised question on the transparency of PMNRF alleging Congress of utilising the money received in the fund for the benefit of Nehru-Gandhi family while participating in the debate over the Bill which was moved by Finance Minister Nirmala Sitharamn on Saturday for consideration and passage.

The Minister made allegation against Congress’ interim President Sonia Gandhi and her family of utilising the fund of PMNRF being members of the trust.

He also alleged that funds received in PMNRF were transferred in Rajiv Gandhi Foundation and from their it was transferred into various other trusts.

Thakur also alleged that fugitive controversial televangelist Zakir Naik donated Rs 50 lakh into Sonia Gandhi-led Rajiv Gandhi Foundation in 2011.

Though the amount was returned in 2014 it clarified links of the party with Naik, Thakur alleged.

However, the Congress raised questions on creation of PM CARES when PMNRF was already present and it was used to help states during various disasters from 2015 to till now.

Congress leaders Adhir Ranjan Chowdhury and Gaurav Gogoi alleged that there are many “loopholes” in Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM-CARES) fund.

The party also sought details of Vivekanand Foundation and some other trusts related to the BJP.

The Bill was later passed with voice vote during over four hour long counter allegations by both the parties on each other.

The Bill was introduced in the Lok Sabha on Friday to replace the Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 which was promulgated on March 31 this year.

Speaking on the Bill, Sitharaman said we are raising questions on Rajiv Gandhi Foundation because Congress gave money to the trust from PMNRF.

Countering Congress allegations, the Minister said what names the party has taken are not given money from PM-CARES fund on which the opposition has raised question on several occasions earlier after it was set up to undertake and support relief or assistance of any kind relating to a public health emergency during the Covid-19 pandemic.

“You are a responsible political party. Don’t spread rumours. It’s not good for your credibility.”

Citing Rafale fight jet deal, the Minister said Congress indulged in “rumour mongering” and it got back replies. “You will again get answers.”

The government came with the Bill which seeks to amend the Income-tax Act, 1961, the Central Goods and Services Tax Act, 2017; the Finance Act, 2019; the Direct Tax Vivad se Vishwas Act, 2020 and the Finance Act, 2020 which are administered by the Department of Revenue through two boards, namely, the Central Board of Direct Taxes and the Central Board of Indirect Taxes. Thus, no additional expenditure is contemplated on the enactment of the Bill.

The Bill provides for extension of various time limits for completion or compliance of actions under the specified Acts and reduction in interest, waiver of penalty and prosecution for delay in payment of certain taxes or levies during the specified period.

The Finance Act, 2020 is also proposed to be amended to clarify regarding capping of surcharge at 15 per cent on dividend income of the Foreign Portfolio Investor.

The Bill also proposes to empower the Central government to remove any difficulty up to a period of two years and provide for repeal and savings of the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020.

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