Sensex makes a late recovery, up 118 pts on rate cut odds

Mumbai, Dec 5 (PTI) Staging a late recovery, the Sensex today shook off its initial weakness and ended higher by 118 points at 26,349 as bets stacked up in anticipation of a rate cut at RBI's policy review on Wednesday.

The Nifty too regained the key 8,100 mark at the close.

The monetary policy committee (MPC) is meeting tomorrow to decide on the interest rate and the final announcement is due on Wednesday. On the global front, Europe took in its stride a 'no' vote to the constitutional referendum in Italy and opened positive, which provided the momentum here.

The 30-share Sensex after shuttling between 26,390.80 and 26,125.35 settled higher by 118.44 points, or 0.45 per cent, at 26,349.10. The gauge had lost 422 points in the previous two sessions on foreign fund outflows amid weak global cues.

The NSE Nifty ended up by 41.95 points, or 0.52 per cent, at 8,128.75 after moving in a range of 8,141.90 to 8,056.85.

The rate cut prospects brightened after the sharpest contraction in services PMI in three years opened up room for RBI to lower rates. A better trend in European shares lifted mood.

"With rate cut expectations running high ahead of RBI meet this week, risk appetite improved, especially in rate sensitive stocks forcing short covering. Sentiment was also helped by European markets swinging higher after Italian referendum," said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services.

"Expectations of populist measures aimed at softening demonetisation worries are also allowing markets to be forward looking now."

Caution prevailed due to muted regional indices after Italian Prime Minister Matteo Renzi's resignation in the wake of a heavy referendum defeat sparked worries about political instability in the euro zone and beyond.

The Nikkei India Services Purchasing Managers' Index (PMI), which tracks services sector companies on a monthly basis, stood at 46.7 in November, down from 54.5 in October.

Among bank stocks, SBI, HDFC Bank, ICICI Bank and Axis Bank ended 0.90 per cent higher as participants created fresh positions ahead of the RBI policy review.

Shares of IT exporters, however, traded with a negative bias as the rupee strengthened against the dollar after falling to an all-time low of 68.86 last month. TCS, Wipro and Infosys all fell by up to 1.68 per cent.

On the sectoral front, BSE auto index rose by 1.92 per cent, metal 1.52 per cent and FMCG 1.36 per cent.

Broader markets too showed a better trend, with the mid-cap index rising by 0.66 per cent and small-cap 0.26 per cent as investors made fresh purchases.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 190.52 crore last Friday, showed provisional data.

Overseas, key indices in Japan, Shanghai and Hong Kong dropped by up to 1.21 per cent. In Europe, Frankfurt's DAX surged 1.73 per cent and Paris CAC 1.34 per cent while London's FTSE was up 0.72 per cent in their late morning trade. .

Trump tweets against China's currency, military policies

Washington, Dec 5 (AFP) US President-elect Donald Trump railed against China in a series of tweets, accusing the Asian giant of currency manipulation and flexing its military might in the South China Sea.

"Did China ask us if it was OK to devalue their currency (making it hard for our companies to compete), heavily tax our products going into their country (the US doesn't tax them) or to build a massive military complex in the middle of the South China Sea? I don't think so!" 

It was not clear what prompted the last night's tweets, which came amid a controversy over a phone conversation Trump held with the leader of Taiwan, a self-ruled island Beijing considers part of its territory.

India-US defence ties closest ever: Carter

Washington, Dec 4 (PTI) Days ahead of his visit to India, US Defence Secretary Ashton Carter today said that the defence relationship between the world's two largest democracies has never been as close as it is now.

"The US-India defence relationship is the closest it's ever been. Through our strategic handshake with America reaching west in the rebalance, and India reaching east in what Prime Minister Narendra Modi calls his Act East policy our two nations are exercising together by air, land, and sea like never before," Carter said.

Carter, who would be in India next week, said this in his address to the Regan National Defence Forum in Simi Valley, California.

The outgoing US defence secretary's last overseas trip includes Japan, India, Israel, Bahrain, Italy and the UK.

"We also have a technological handshake as the US-India Defence Technology and Trade Initiative, or DTTI, grasps hands with Prime Minister Modi's Make in India campaign that's helping our countries move toward more diverse co-development and co-production of weapons systems," he said.

As he begins his last overseas tour from the Asia Pacific region, Carter reflected on the rebalance strategy of President Barack Obama.

"It will ensure DoD continues to help provide the security necessary for that consequential region which is home to nearly half the global population and nearly half the global economy to remain a place where everyone can rise and prosper for decades to come," he said.

"That's been American policy and practice since the end of World War II more than 70 years ago. Regardless of what else was going on at home or in other parts of the world during Democratic and Republican administrations, in times of surplus and deficit, war and peace the United States has remained economically, politically, and militarily engaged in the Asia-Pacific," he said.

The US, he said, has long taken a principled and inclusive approach, and collaborated with a network of regional allies and partners to enable security and uphold important principles like resolving disputes peacefully; ensuring countries can make choices free from external coercion and intimidation; and preserving the freedom of overflight and navigation guaranteed by international law.

"Because we did so, out of the rubble of World War II, economic miracle after miracle has occurred. Think about it...first Japan, then Taiwan, South Korea, and Southeast Asia rose and prospered, and today, China and India are doing the same," he said.

That progress has produced incredible changes in the region: populations are growing, education has improved, freedom and self-determination have spread, economies have grown more interconnected, and military spending and cooperation are growing, he added.

Ghani slams Pak on terror, tells it to end 'undeclared war'

The Prime Minister, Shri Narendra Modi and the President of Afghanistan, Dr. Mohammad Ashraf Ghani at the inaugural session of the Heart of Asia Ministerial Conference, in Amritsar, Punjab on December 04, 2016.

Amritsar, Dec 4 (PTI) In a hard hitting attack on Pakistan, Afghan President Ashraf Ghani today accused it of launching an "undeclared war" on his country by covertly supporting several terror networks including the Taliban, and noted that there were no hidden deals in India's growing engagement in the war-ravaged country.

In his address at the 6th annual conference of Heart of Asia, Ghani, who severely criticised Islamabad, said an Asian or international mechanism must be put in place, without "playing games", to find out who was benefiting from terror, extremism and other illicit activities.

He said time has come for concrete action against terror infrastructure and those support it, and quoted a top Taliban commander saying unless terror sanctuaries were allowed in Pakistan, the outfit will not last even a month.

He said despite Afghanistan's bilateral and multilateral ties with Pakistan, the "undeclared war" that started in winter of 2014, has intensified after the recent Brussels conference on Afghanistan's transition.

Slamming Pakistan's habit of denying cross border terror attacks, the Afghan President called for setting up of international mechanism to verify reality of such attacks which have increased in the last few months.

He also sought setting up of a global fund to contain terrorism.

"There should be an Asian or international regime, whatever is acceptable to Pakistan, should be put in place to verify frontier activities and terrorist operations.

"We do not want blame game, we want verification," he said, without mincing words.

"We need to set up a fund to combat extremism," Ghani said.

Pakistan Prime Minister's Foreign Affairs Adviser Sartaj Aziz was among representatives of 30 countries who attended the conference inaugurated jointly by Ghani and Prime Minister Narendra Modi.

Hailing India's role in Afghanistan's transition, he said "India's assistance is transparent and with no strings attached", adding "there are no hidden deals between India and Afghanistan." 

"We thank Pakistan for their pledges of USD 500 million for reconstruction of Afghanistan.

"This fund Mr Aziz could very well be used to contain extremists because without peace any amount of assistance will not meet the needs of our people," he said.

Asserting that no amount of money can assist Afghanistan if there is support to terrorists by Pakistan, he said military operations in Pakistan have brought about selective displacement of terrorists. .

Heart of Asia conference begins with focus on tackling terror in region

Amritsar, Dec 3 (PTI) As Afghanistan faces the resurgence of Taliban, a conference of major regional and global powers began today in this holy city to explore ways to effectively deal with threat of terrorism in the region, its complex security matrix and help the war-ravaged nation in its transition.

Being attended by nearly 40 countries and leading groupings like the European Union, the annual conference of the Heart of Asia -- Istanbul Process is deliberating on various challenges facing Afghanistan, including revival of a peace process in the conflict-ridden country.

Today, senior officials of all 14 countries, including India, China, Russia, Iran and Pakistan, and representatives of 17 supporting nations were deliberating on a vast range of issues facing the region including its complex security scenario and dealing with threat of terrorism, radicalisation and extremism.

Issues like enhancing Afghanistan's connectivity with South and Central Asian countries to boost trade were being discussed at the senior officials' meeting which was co-chaired by India's Foreign Secretary S Jaishankar and Deputy Foreign Minister of Afghanistan Hikmat Khaleel Karzai.

The meeting is finalising the text for tomorrow's Ministerial Conference and is also deliberating on its Declaration which will have substantial portion on terrorism.

Pakistani Prime Minister's Foreign Affairs Advisor Sartaj Aziz is representing Islamabad at the Ministerial conference on Sunday which will be jointly inaugurated by Prime Minister Narendra Modi and Afghan President Ashraf Ghani.

The annual conference is taking place amid heightened tension between India and Pakistan in the wake of the audacious terror attack on Nagrota army base and there was no clarity on an Indo-Pak bilateral meeting on the sidelines of the conclave.

India had already made it clear that it would never accept continuing cross-border terrorism as the "new normal" in bilateral ties with Pakistan while making it clear that talks cannot take place in an atmosphere of "continued terror".

At the senior officials' meeting, Afghanistan, which has also been facing increased attacks from terror groups operating from Pakistan, pushed for a regional counter-terror framework.

Ahead of the conference, both India and Afghanistan had called terror emanating from Pakistan as the "greatest threat" to regional peace and stability, and both the countries are set to press hard for adopting the counter-terror framework at tomorrow's deliberations. .

SC refuses to entertain plea to play national anthem in courts

New Delhi, Dec 2 (PTI) The Supreme Court today refused to entertain a plea of a BJP leader and lawyer seeking playing of national anthem in all courts before the start of proceedings.

A bench of justices Dipak Misra and Amitava Roy said it is not inclined to entertain the plea of BJP spokesperson Ashwani Kumar Upadhyay after Attorney General Mukul Rohatgi submitted that the petitioner should file a proper application.

"Whether right or wrong, our order should not be overstretched. Bar (referring to Upadhyay) should show some retrain," the bench said.

Earlier in the morning, Upadhyay mentioned the plea before the bench which had on November 30 made it mandatory for cinema halls to play national anthem before screening of a movie and the audience must stand and show respect.

The bench has then sought AG's assistance to learn his view on the plea of Upadhyay.

In its November 30 order, the apex court had said that "love and respect for the motherland is reflected when one shows respect to the national anthem as well as to the national flag. That apart, it would instill the feeling within one a sense committed patriotism and nationalism." 

It had said that when the anthem is played the national flag shall be shown on the screen and the order should be given effect in a week's time.

The bench had also said that prior to the anthem being played or sung in the cinema hall, the entry and exit doors shall remain closed so that no one can create any kind of disturbance which will amount to disrespect to the national anthem and the doors can be opened once it is over.

Army presence at toll WB plazas kicks up storm, Mamata spends night at secretariat

Army presence at toll plazas in WB kicks up storm, Mamata spends night at secretariat



Kolkata/New Delhi, Dec 2 (PTI) Presence of army personnel at toll plazas in West Bengal triggered a row with Chief Minister Mamata Banerjee remaining at the state secretariat overnight in protest, asking was it an "army coup", drawing a a stinging condemnation today from the Centre which said the remark showed her "political frustration".

The row also echoed in Parliament with Trinamool Congress seeing "sinister" designs behind the move and Defence Minister Manohar Parrikar vehemently denying the charge, saying it was a routine exercise. Parrikar also said it was very unfortunate that army has been dragged into an "unnecessary controversy".

The Army on its part strongly rebutted Banerjee's allegations that its personnel were deployed at toll plazas without informing the state government and were collecting money, saying the exercise was being carried out in coordination with Kolkata Police. The Army personnel, however, had left the toll plaza near the secretariat last night.

TMC MLAs and ministers also staged a dharna outside Raj Bhavan in Kolkata.

Banerjee left the state secretariat in the evening after she spent over 24 hours and fired a fresh salvo at the Modi government.

Accusing the Modi government of making a "wrong and concocted" statement in Parliament regarding the deployment of Army, Banerjee said her voice could not be stifled by "hatching conspiracy and showing force".

Banerjee also said the state government will take legal recourse if there is no withdrawal of army personnel from all toll plazas in the state.

Speaking to reporters late last night at 'Nabanna', the state secretariat in Kolkata, she said, "I will stay at the secretariat to guard our democracy".

"Is this a military coup?" she asked.

She said that army personnel were there in different districts like Murshidabad, Jalpaiguri, Darjeeling, North 24 Paragans, Burdwan, Howrah, Hooghly etc.

"The army is deployed without informing the state government. This is unprecedented and a very serious matter."

The issue was raised in both Houses of Parliament with main opposition Congress too seeking clarification on the army deployment at 19 toll plazas in West Bengal.

In Lok Sabha, Parrikar termed the deployment a "routine exercise not unique to West Bengal" and saying similar operations to collect information on heavy vehicle movement that can be used during national emergencies had last month being conducted in Uttar Pradesh, Bihar and Jharkhand.

No old notes for fuel from Saturday, toll collection to resume

New Delhi, Dec 1 (PTI) Amid reports of misuse, government today put an end to the use of old Rs 500 notes for buying fuel at petrol pumps and purchasing tickets at airports from Saturday, while exemption for payment of toll on highways will also end tomorrow.

Earlier, these facilities and the toll exemption were to continue till December 15.

All toll plazas on National Highways have been equipped with card swipe (PoS) machines through which people can make payments using their credit or debit cards, although people will be allowed to use old 500 notes for paying toll above Rs 200 or for purchasing FASTags from midnight of December 2.

The government had last week extended the time period of use of invalid currency notes for making payment of public utility bills, buying petrol, mobile recharge, rail tickets and air tickets at airport till December 15.

However, it has decided to withdraw the facility for use of old 500 notes at airports and petrol pumps from midnight of December 2.

The ministry said that processes of production, dispatch and distribution of currency notes have been continuing and more cash is flowing into the system steadily and digital transactions have also made an impressive progress and are expected to significantly improve during the coming days.

"Now, therefore, as digital transaction options have been increasing across different sections of the economy, it has been observed that the outlets of the oil and gas marketing companies are better equipped to accept payments through digital means," it said while removing petrol pumps from exempted list.

The ministry however clarified that supply of LPG continues to be in the exempted category for the purpose of payment through old Rs 500 bank notes.

While junking old 500 and 1,000 rupee notes on November 8, the government had allowed their use for utility bill payments for 72 hours.

This deadline was extended twice. When the last one was to expire on November 24, government amended it to state that only the old 500 rupee notes could be used for payment of utility bills like electricity and water, school fees, pre- paid mobile top-up, fuel purchase and airline ticket booking.

While old notes will continue to be accepted for other utility bill payments as well as at railway ticketing counters and counters of government or public sector undertaking buses for purchase of tickets till December 15, they will be discontinued for purchase of fuel and airline tickets at airport counters.

Continued terror cannot be "new normal" in ties: India to Pak

New Delhi, Dec 1 (PTI) Talking tough in the wake of attack on army camp in Nagrota, India today made it clear that talks with Pakistan cannot take place in an atmosphere of "continued terror", which it will never accept as "new normal" in the bilateral relationship.

External Affairs Ministry Spokesperson Vikas Swarup also said the government is awaiting detailed information on the specifics of the Nagrota attack before it decides on the next steps.

"But I do wish to emphasise that the government takes this incident very seriously and will do what it feels is required for our national security," he asserted.

Asked if there would be bilateral talks on the sidelines of the Heart of Asia (HoA) Conference in Amritsar on December 3 and 4, he said, "We have not received any request from Pakistan for a bilateral meeting.

"India has always been open to talks but obviously it cannot be that talks take place in an atmosphere of continued terrorism. India will never accept continued terrorism as the new normal in the bilateral relationship," Swarup said.

India's sharp remarks come two days ahead of the conference where Pakistan will be represented by Sartaj Aziz, Foreign Affairs Advisor to Prime Minister Nawaz Sharif.

Earlier, Pakistani media reports had quoted officials as having said there would not be a bilateral meeting on the sidelines of the HoA meet on Afghanistan.

Prime Minister Narendra Modi and Afghan President Ashraf Ghani will jointly inaugurate the ministerial deliberations on Sunday where the Indian delegation will be led by Finance Minister Arun Jaitley in the absence of External Affairs Minister Sushma Swaraj, who is ill.

Hitting out at Pakistan, Swarup said Pakistan is a country which has a long record of carrying out cross border terrorism which it regards as an instrument of state policy and which puts Islamabad at odds with the rest of the international community.

On the criticism that the attacks increased after the surgical strikes, he said, "It was our assessment at that point of time that there was an imminent threat based on hard intelligence about the location of armed terrorists who were ready to infiltrate from across the LoC and carry out terrorist activities on our side.

"This imminent threat was successfully neutralised through the surgical strikes. We should not look only at what happened but also at what did not happen, what was prevented through successful neutralisation of terrorists." 

On the appointment of Pakistan's new army chief, he said it is an internal matter of Pakistan. India will judge Pakistan by its behaviour and its track record and not by change of persons, he added.

Infra sector growth jumps to 6-month high of 6.6 pc in Oct

New Delhi, Nov 30 (PTI) Infrastructure sector recorded a growth rate of 6.6 per cent in October -- the highest in last six months -- on the back of impressive performance by steel and refinery products.

However, growth rate of power generation, fertiliser production and cement output fell considerably on year-on-year basis. Coal production continued to fall for the third straight month.

The growth rate of eight infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- was 3.8 per cent in October 2015. It was 5 per cent in September 2016.

The core sectors, which contribute 38 per cent to the total industrial production, expanded by 4.9 per cent in April-October compared to 2.8 per cent growth in the similar period of last financial year.

As per the official data released today, steel production jumped 16.9 per cent in October against contraction of 5.5 per cent in the year-ago period.

The output of refinery products soared by 15.1 per cent in October. The sector had declined by 4.4 per cent in October last year.

Growth in fertiliser and electricity generation was at 0.8 per cent and 2.8 per cent, respectively, in October 2016, against 16.8 percent and 13.8 per cent, respectively in October 2015.

Coal production declined by 1.6 per cent in October as against a growth of 6.6 per cent in the year-ago period.

Natural gas and crude oil output during October fell by 1.4 per cent and 3.2 per cent, respectively.