Sensex tops 27k after 7 months on RBI's stance

Mumbai, Jun 7 (PTI) RBI's policy stance to stay accommodative gave market a shot in the arm today as the Sensex wrested back control of the crucial 27,000-mark by surging more than 232 points to close at an over 7-month high.

Banking and realty stocks fired on all cylinders while global cues were largely positive.

The rupee firmed up 25 paise to 66.72 (intra-day) against the dollar, which kept domestic equities in a good shape.

In the second bi-monthly monetary policy meet of this fiscal, RBI kept the repo rate unchanged at 6.50 per cent and the cash reserve requirement at 4 per cent.

Governor Raghuram Rajan cited higher upside risks to the inflation trajectory behind the move, but signalled that the central bank could cut rate provided data are supportive.

Right from the word go, the BSE Sensex was up and running as it advanced to hit the day's high of 27,082.63 after the market gave Reserve Bank of India's accommodative stance a thumbs-up.

The index finally settled higher by 232.22 points, or 0.87 per cent, at 27,009.67, a level last seen on October 28 last year.

The NSE Nifty after shuttling between 8,294.95 and 8,216.40 ended at 8,266.45, up 65.40 points, or 0.80 per cent.

The central bank also retained India's growth projection at 7.6 per cent for 2016-17, refering to corporate profits and a surge in consumption.

The state-run SBI took the cake by surging 5.4 per cent, followed by ICICI Bank 4.31 per cent.

Other big movers were ITC, Sun Pharma, Hind Unilever, Tata Steel, L&T, Lupin, BHEL, ONGC and Adani Ports.

Bucking the trend, shares of Infosys, RIL, HDFC, GAIL and Dr Reddy's fell by up to 0.78 per cent.

Asian and European shares too remained in a positive frame as investors speculated that the US Fed may delay its next rate hike beyond July.

Out of the 30-share Sensex pack, 25 showed up in the green.

The BSE realty index gained the most by climbing 1.70 per cent followed by banking (1.63 per cent), consumer durables (1.57 per cent), FMCG (1.35 per cent), metal (1.30 per cent), capital goods (1.23 per cent), and PSU (1.10 per cent).

In broader markets, the BSE small-cap index surged 0.96 per cent and the mid-cap 0.29 per cent.

Foreign portfolio investors (FPIs) bought shares worth net Rs 28.80 crore yesterday, as per provisional data released by the stock exchanges.

Japan's Nikkei rose 0.58 per cent while China's Shanghai index was up 0.07 per cent and Hong Kong's Hang Seng rose 1.42 per cent. Europe was also higher in its early trade.

US backs India's bid for NSG membership

Washington, Jun 7 (PTI) Backing India's bid to join the Nuclear Suppliers Group (NSG), the US has said by becoming the member of the elite grouping the country would be in a stronger position to be a "good citizen" on proliferation- related issues.

"Having gone down the path of the civil nuclear agreement with India, and having invested a significant amount of time in building up our cooperation with India as it relates to nuclear security," Deputy National Security Advisor Benjamin Rhodes told a Washington audience.

Rhodes remarks on India came in response to a question about why some countries like China are opposing India's membership in the 48-member NSG.

"..I think the bottom line for us is that we believe that through engagement with India and through engagement with groups like the NSG, we are in a better position to support India as a good citizen on these issues," Rhodes said.

He said the US believed that engaging India and trying to bring it into international processes will be more effective in promoting the country's security protocols.

"And frankly, it takes place against continued conversations that we have with India about their approach to nuclear weapons; and of course, the support that we've always expressed for diplomatic efforts between India and Pakistan," Rhodes said in response to a question at an event organised by the Arms Control Association.

Based in Washington, Arms Control Association is a think-tank that had opposed India-US civil nuclear deal and is now opposing India's membership to the NSG.

Rhodes remarks on India came in response to a question on India about why some countries are opposing India's membership to NSG.

"So, I think the bottom line for us is that we believe that through engagement with India and through engagement with groups like the NSG, we are in a better position to support India as a good citizen on these issues going forward," Rhodes said.

"Of course, we'll take seriously the concerns of other nations, but again for us I think this is part of a broader context where we've decided to take this approach with India.

And we've seen it bear some fruit, particularly on issues related to nuclear security," he said.

"So again, we understand the concerns, but in many ways we're dealing with a challenge that was fairly far advanced by the time we took office. And we decided to sustain the previous administration's decision to pursue that civil nuclear cooperation broadly," he said.

"Then what we've tried to do is nest it in these international bodies and protocols so that, again, India is in a stronger position to be a good citizen on proliferation- related issues," Rhodes said.

Parrikar holds talks with Vietnam Prez, PM, Defence minister

New Delhi, Jun 6 (PTI) Seeking to strengthen military ties, Defence Minister Manohar Parrikar today met Vietnamese President Tran Dai Quang, with whom he reviewed strategic partnership and new initiatives undertaken to further nourish cooperation in the military sector.

Parrikar also met Prime Minister Nguyen Xuan Phuc and his counterpart Gen Ngo Xuan Lich and held high level bilateral talks on key military issues including possible sale of supersonic missile Brahmos to the Southeast Asian country and reviewed the entire spectrum of defence cooperation initiatives.

During the interaction, Ngo emphasised on the significance of closer ties between Vietnam and India due to common threats and challenges.

The contentious South China Sea was also believed to have been discussed by the two Defence ministers, official sources said here.

On the mechanism of exchange of information, Parrikar and Ngo emphasised the necessity for sharing of white shipping information to facilitate exchange of data in the maritime domain. The two sides also focused on enhancing hydrographic cooperation.

The meeting gained significance as both countries are celebrating 45 years of diplomatic relations and 10 years of strategic partnership, with defence sector being the major sector contributing towards this partnership.

Parrikar, who reached Hanoi yesterday, attended a business roundtable meeting comprising defence industry delegates from the two countries.

The highlight of the meeting was the handing over of the bid document by Vietnam Border Guards to Larson & Toubro Limited. India has recently provided Vietnam with a US$100 million Line of Credit which is being utilised by Vietnam for procurement of Offshore Patrol Boats for their Border Guards.

Speaking on the occasion, he desired Indian private sector to lead the initiative and explore and actively participate in Vietnamese modernisation of defence forces.

This will not just strengthen the diplomatic and military bond between both the nations but also open the doors of strategic exports, he said.

Parrikar also assured the Indian private sector of full support of Ministry of Defence, DRDO and DPSU to realise the aspiration of exports of defence items to friendly nations at competitive price.

The major areas identified for working together are for upgrade of Soviet legacy systems, upgradation of Thermal Sights and Fire Control Systems for - BMP, T 54 and T 55 Tanks, upgarade of MI 17 / Mi 8 Helicopters, Shipbuilding Programmes, Missile Systems from India and Software Defined Radios from Vietnam.

RBI likely to maintain status quo tomorrow

New Delhi, Jun 6 (PTI) With inflation rearing its head again and global crude oil prices inching up, the Reserve Bank is likely to maintain the status quo on interest rates tomorrow at its bi-monthly monetary policy review for the current fiscal, say experts.

Besides, the central bank may wait for the impact of delayed monsoon rains before making the next move.

RBI Governor Raghuram Rajan, criticised for following hawkish monetary policy for too long before starting to lower rates, has reduced the benchmark interest rate by 1.5 per cent since January last year. Since then, he has been persuading banks to fully transmit the benefit of the policy rate cut to customers.

The customary post-policy press briefing by Rajan, whose current 3-year term as the central bank Governor ends in September, will also be closely watched for any cues relating to whether he is being given an extension.

"I don't see much in this credit policy. Interest rate wise, there would not be any change," IDBI Bank Managing Director Kishor Kharat said.

Tomorrow's review could also turn out be the last policy anchored by Rajan if the proposed Monetary Policy Committee (MPC) is put in place before the next review due on August 9.

Economic Affairs Secretary Shaktikanta Das had said the panel would be vested with powers to decide on interest rates from September onwards.

The six-member MPC will include RBI Governor and three nominees of the government, which has a mandate to bring consumer or CPI inflation to the pre-set target.

"RBI is likely to maintain status quo this time. Although there is consistency in inflation numbers, the last numbers do not give much comfort," a senior banker said.

"Only positive factor is good monsoon. RBI will wait for it to happen before taking any call on rate cuts," he said.

Retail inflation soared to 5.39 per cent in April on higher food prices, reversing a downward trend seen in recent months.

"With inflation remaining sticky at slightly above 5 per cent and growth fairly steady (although uneven), we expect policy rates to stay on hold until end-2016 (including at the upcoming policy meeting on June 7) with the focus shifting to liquidity provision," Nomura said in a report. .

Dia Mirza named ambassador for 'Swachh Saathi' programme

 Mumbai, Jun 6 (PTI) Bollywood actress Dia Mirza has been named the ambassador for Swachh Bharat Mission's youth-based 'Swachh Saathi' (student internship) programme.

The "Rehna Hai Tere Dil Mein" star will take forward the message of the government's 'Swachh Saathi' programme, which she hails as the most important part to realise the dream of a clean country.

"Swachh Bharat is among the most important initiatives taken up by the government and I believe that the Swachh Saathi programme will be an extremely important part of our dream to realise a clean, healthy and environmentally conscious youth and country," Dia, 34, said in a statement.

Under the Swachh Saathi programme, more than 2,000 interns would be enrolled, who would coordinate with around 10,000 schools across the country and ensure that all students in these schools take the pledge for Clean India, the statement read.

"Dia is a youth icon and has been an active campaigner for Swachh Bharat. We felt that she would be the best person to help us reach out to more youngsters. Our aim is to make it a viral youth led movement," Swachh Bharat mission director Praveen Prakash said.

As the ambassador, the actress would interact with school and college students from across the country through awareness sessions, community cleaning activities and motivational videos.

"Over the years I have tried to engage as many minds as possible to understand that our planet and our country need the immediate involvement of all its citizens, so that we can take responsibility and make our world a better place to live in," Dia said.

Switzerland backs India's NSG bid; to help tackle blackmoney

 Geneva, Jun 6 (PTI) India today got the backing of Switzerland in its bid to become a member of the Nuclear Suppliers Group ahead of the elite group's crucial meeting even as the two countries resolved to strengthen cooperation in combating tax evasion and blackmoney.

Swiss President Johann Schneider-Ammann announced his country's support to India's membership in the 48-member grouping after holding comprehensive talks with Prime Minister Narendra Modi here.

Agreeing to expand cooperation in tackling the problem of Indians stashing blackmoney in Swiss banks was one of the key focus areas of the talks between the two leaders besides stepping up ties in areas of trade, investment and vocational training.

"We have promised India support in its efforts to become a member of NSG," Schneider-Ammann said at a joint media interaction.

India has been pushing for membership of the bloc for last few years and had formally moved its application on May 12. The grouping will take up India's application in its plenary meetings on June 9 in Vienna and June 24 in Seoul.

"I am thankful to the President for Switzerland's understanding and support for India's membership of the NSG," Modi said.

The NSG looks after critical issues relating to the nuclear sector and its membership will help India expand its atomic energy sector.

Modi also said combating the menace of black money and tax evasion was "shared priority" for both the countries.

"We discussed the need for an early and expeditious exchange of information to bring to justice the tax offenders.

An early start to negotiations on the agreement on the automatic exchange of information would be important in this respect," Modi said.

On his part, the Swiss President said both the countries are making considerable progress in fighting tax fraud and evasion. .

BSE to auction investment limits for Rs 4,046-cr govt bonds

New Delhi, Jun 5 (PTI) Leading stock exchange BSE will auction tomorrow investment limits for overseas investors for the purchase of government debt securities worth Rs 4,046 crore.

The auction will be conducted on BSE's e-bidxchange platform from 1530 hrs to 1730 hrs, after the close of market hours.

The debt auction quota gives overseas investors the right to invest in the debt, up to the limit purchased.

"Live bidding session for allocation of debt investment limits for FII/FPI/sub accounts shall be conducted on Monday, June 6, 2016, on exchange's 'ebidxchange' platform," BSE said in a circular.

A mock bidding session was conducted on Friday in this regard.

Last month, the government debt securities witnessed lukewarm response in an online auction after months of over-subscription. It had attracted bids worth Rs 2,957 crore from foreign investors as against securities to the tune of Rs 3,340 crore put on offer.

To boost inflows of foreign funds, the limit for overseas investors in central government was hiked to Rs 1.4 lakh crore from April 4, and it will be further increase to Rs 1.44 lakh crore from July 5. Earlier, the limit was Rs 1,35,400 crore.

India, Qatar ink 7 agreements to boost cooperation

The Prime Minister, Shri Narendra Modi and His Highness Sheikh Tamim Bin Hamad Al Thani witnessing the signing of agreements to strengthen India-Qatar ties, in Doha, Qatar on June 05, 2016.

Doha, Jun 5 (PTI) India and Qatar today signed seven agreements, including one on finance intelligence to check money laundering and terrorism financing and another to woo foreign investment in the infrastructure sector from the gas-rich Gulf state.

Cooperation and investment in areas of skill development and education, health, tourism and sports between the two countries were the other agreements signed by Indian and Qatar officials in the presence of Prime Minister Narendra Modi and Emir Sheikh Tamim Bin Hamad Al Thani.

Official talks were held between Modi and Seikh Tamim for multi-sectoral partnership and strengthening of Indo-Qatar ties following which the agreements and Memorandums of Understanding (MoUs) were signed on the second day of the Prime Minister's visit here.

An MoU was signed between Qatar Investment Authority and External Affairs Ministry for investment in National Investment and Infrastructure Fund between the two countries that would facilitate foreign investment from the gas-rich Gulf state.

An MoU signed between Finance Intelligence Unit India (FIU-IND) and the Qatar Financial Information Unit (QFIU) would help in tracking money flow and investment from Qatar to India. It would also help authorities to safeguard against money laundering, terrorism financing and other economic offences.

An agreement was also signed between the two countries on cooperation and mutual assistance in custom matters besides an MoU on cooperation in tourism.

Modi was accorded a ceremonial guard of honour at the Emiri Diwan that was followed with official bilateral talks between the two leaders. .

Terrorism should be addressed through international cooperation: Vice President

The Vice President, Shri M. Hamid Ansari being bid farewell by the Prime Minister of Tunisia, Mr. Habib Essid, in Tunis, Tunisia on June 03, 2016. 

Concludes five-day official visit to Morocco

The Vice President of India, Shri M. Hamid Ansari has said that the terrorism should be addressed through international cooperation including bilateral efforts. He was interacting with the media delegation onboard Air India One on his way back to India from Tunisia after concluding the five-day visit to Morocco and Tunisia, today. The Vice President further said that the visit to Morocco and Tunisia was very fruitful and that had very good discussions with both countries on vast area of issues including terrorism.

With Tunisia, the Vice President said that both countries have agreed to rejuvenate the relationship and focus on areas which have been identified. There will be a sharper focus on these issues when the Tunisian Foreign Minister visits India later this year in a Joint Commission, he added. He further said that there is no difficulty in the political side as they are very supportive on international fora. 

The Vice President said that both countries are major victims of terrorism and they were absolutely in agreement that this menace could be addressed with international cooperation including bilateral discussions.

The Vice President said that during the visit, the focus was also on trade and technology and through Morocco and Tunisia, some of our new initiatives in Africa have received attention and certain triangular tie-ups could take place. All in all, the reception was very warm and friendly, he added.

Reacting to a question on terrorism, the Vice President said that each country has to fight its own battle on terrorism because terrorism is 'international'. Counter terrorism should also have its international dimensions and sharing the information on a timely basis is critical, he added.

On a question on the unemployment in these countries, the Vice President said that they are very much aware that their young people are having university degrees and there are no jobs. There is a complete disconnect between academic qualification and the requirements of the job market, he added. He further said that our contribution can be doing more business with them and offer more employment as there are some Indian companies doing well there. These countries have a great potential and also a role to play in developing tourism, he added.

India to stand by Afghanistan despite all odds: PM

The Prime Minister, Shri Narendra Modi and the President of the Islamic Republic of Afghanistan, Mr. Mohammad Ashraf Ghani, at Ghazi Amanullah Khan Hall for the joint Inauguration of Salma Dam, in Herat, Afghanistan on June 04, 2016

Herat, Jun 4 (PTI) Unfazed by terror attacks on its missions and barriers of politics and geography, India will continue to extend cooperation in war-torn Afghanistan, Prime Minister Narendra Modi asserted today after dedicating a Rs 1,700 crore dam in strategically vital Herat province.

Modi said other countries may have a "sunset clause" but India's ties with Afghanistan remain "timeless".

"Our resources may be modest, but our will is boundless.

For others, their commitments may have a sunset clause, but our relationship is timeless. We face barriers of geography and politics, but we define our path from the clarity of our purpose," he said in an address after inaugurating the Afghan- India Friendship Dam along with President Ashraf Ghani.

Modi hailed the people of Afghanistan for denouncing terrorism and said division among them will only help those seeking to "dominate" the nation from outside.

"It was a war not of Afghan making, but it was one that stole the future of an entire generation of Afghans," the Prime Minister said, adding that the brave Afghan people are today sending a message that the forces of "destruction and death, denial and domination" shall not prevail.

When Afghanistan succeeds in defeating terrorism, the world will be "safer and more beautiful", he said.

The dam, earlier known as Salma Dam, has been built by India at a cost of Rs 1,700 crore on river Harirud in Chist-e- Sharif in western Herat neighbouring Iran. It will irrigate 75,000 hectares of land and generate 42 MW of power.

"This dam has not been built by bricks and mortar, but by the faith of our friendship and the valour of Afghans and Indians. And, at this moment of pride, we also stand in grief and gratitude for lives sacrificed so that Afghan people will have a future they so richly deserve and so deeply desire," Modi said.

Resolving to stand by Afghanistan, the Prime Minister said India's cooperation will extend to "every part" of the war-torn country and that the partnership will benefit every section of Afghan society.

"In your clear eyes, I saw the deep well of affection for India. In your smiles, I saw the joy of this relationship. In the firmness of your embrace, I felt the trust in our friendship," Modi said.

In his around 25-minute-long speech, Modi touched upon the peace process in Afghanistan, the massive terrorist attack on Indian Consulate in Herat and reconstruction activities in that country.

"When our people are under attack, the brave Afghans guard us as their own. They put themselves in the line of fire so that their Indian friends are safe. This is the nobility of your heart and the strength of your friendship. I have seen this from the moment I assumed office as Prime Minister.

"For on that day, when terrorists launched a massive attack on our Consulate in this city of Herat, the heroic efforts of Afghan soldiers, and of our personnel, saved many lives and prevented a big tragedy," he said, referring to the 2014 attack on the Indian mission here. .