Sensex back in red, tumbles 257 pts ahead of IIP data

 Mumbai, Jun 9 (PTI) Indian market benchmark Sensex snapped its two-session rally on Thursday after falling 257 points to end below the 27,000-mark and in the process retreated from a 7-month high as investors booked profits in recent outperformers on caution ahead of key macroeconomic data.

Participants also preferred to cut down on their positions ahead of the US Federal Reserve meet next week, brokers said.

Moreover, weak global cues with Tokyo stocks falling after fresh data aggravated worries about Japan's economy and a lower opening in European markets, also triggering selling.

The BSE Sensex crashed below the crucial 27,000-mark to hit a low of 26,692.35 before settling 257.20 points or 0.95 per cent lower at 26,763.46. The gauge had risen by 243.21 points in the past two days.

The NSE Nifty after cracking 8,200-mark, touched the session's low of 8,184.60. However, value-buying in some counters helped the gauge recover part of the lost ground to settle 69.45 points or 0.84 per cent lower at 8,203.60.

"Markets opened the day with losses over Wednesday's closing and remained in negative terrain throughout the day as investors locked-in profits after recent gains," said Manoj Choraria, a Delhi-based NSE stock broker.

IT, teck, FMCG, capital goods, auto, healthcare and banking were the hit hardest.

The broader markets too felt the heat with the BSE mid-cap index falling 0.47 per cent while small-cap edged up by 0.04 per cent.

Back home, of the 30-share Sensex pack, 18 scrips ended lower, led by Infosys which fell 4.27 per cent, followed by Hero MotoCorp (2.75 pc) and ITC (2.29 pc).

Other major losers were HUL (2.28 pc), Dr Reddy's (1.95 pc), Asian Paints (1.94 pc), HDFC (1.74 pc), Bajaj Auto (1.39 pc), TCS (1.29 pc), L&T (1.21 pc), ICICI Bank (1.18 pc) and Adani Ports (0.81 pc).

However, Coal India rose by 2.13 per cent followed by ONGC 1.99 per cent, RIL (1.81 pc), NTPC (1.66 pc), Cipla (1.51 pc) and Axis Bank (0.57 pc).

Meanwhile, foreign investors bought shares worth a net Rs 529.16 crore Wednesday, as per provisional data.

In Asia, Japan's Nikkei fell 0.97 per cent while markets in Hong Kong and China were closed for a public holiday.

European shares too were trading lower with indices in France and the UK falling by 0.43 per cent to 0.87 per cent.

Modi wants deeper, US-India security relationship

PM Narendra Modi says fight against terrorism has to be fought at many levels

Prime Minister Narendra Modi shakes hands with US President Barack Obama during a meeting in the Oval Office of the White House. Photo: PTI

Indian Prime Minister Narendra Modi called for a closer security relationship between his country and the United States on Wednesday, in an address to the US Congressstressing the importance of the warm relationship between the two countries.

"The fight against terrorism has to be fought at many levels. And the traditional tools of military, intelligence or diplomacy alone would not be able to win this fight," Modi told a rare joint meeting of the Senate and House of Representatives.

"We have both lost civilians and soldiers in combating it. The need of the hour is for us to deepen our security cooperation," Modi said.

In a speech interrupted by repeated applause, Modi did not mention India's neighbors Pakistan or China specifically, but said the deeper US-Indian security cooperation should isolate anyone who harbors, supports or sponsors terrorists, and separate religion from terrorism.

With navigation in Asian waters, such as disputes over the South China Sea, a major regional concern, Modi said a stronger US-India partnership could boost peace and prosperity.

"It can also help ensure security of the sea lanes and commerce and freedom of navigation on seas," Modi added.

He also stressed that India is committed to helping rebuild a peaceful and stable Afghanistan, even as he said he considers terrorism the biggest threat in Afghanistan as well as elsewhere in South Asia.

Clinton creates history, becomes first woman US prez nominee

President Barack Obama congratulated Clinton for securing 2,383 delegates, a must to get presidential nomination. PTI

  Los Angeles: Hillary Clinton today made history as she became the first woman to clinch the presidential nomination of a major American political party by winning crucial California and three other state primaries but her Democratic rival Bernie Sanders remained defiant. "Thanks to you, we've reached a milestone, the first time in our nation's history that a woman will be a major party's nominee," Clinton, 68, told her supporters at her campaign headquarters in Brooklyn, New York.

President to visit 3 African countries from June 12

New Delhi, Jun 7 (PTI) With India trying to boost its relations with African countries, President Pranab Mukherjee will embark on a six-day visit to Ghana, Cote d'Ivoire and Namibia from June 12.

This will be first ever visit of the President to Cote d'Ivoire after both countries established diplomatic relations while it will be the first at the highest level in over two decades to Namibia.

During his trip, Mukherjee will be accompanied by a Minister of State, four Members of the Parliament, senior officials and a business delegation.

The President will have meetings with the respective Heads of three nations and a number of bilateral agreements are also likely to be signed during the visit.

Mukherjee will arrive in Ghana's capital Accra on June 12 on a two-day visit during which he will have meeting with President John Dramani Mahama. The two countries may sign agreements on a joint Commission and renewal of Cultural Exchange Programme.

The President will address a Joint Business Forum and the students and faculty of University of Ghana besides having an interaction with the Indian community at a reception organised at the Indian High Commission.

He will also unveil a statue of Mahatma Gandhi gifted by the Indian Council of Cultural Relations.

The bilateral trade between the two countries has crossed bilateral trade crossed three billion USD in 2015-16, the Ministry said. He will also visit India-Ghana Kofi Annan Centre of ICT Excellence in Accra, set up with modest Indian assistance of USD 2.86 million.

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. .