Shares of Infosys extended losing momentum on Tuesday and fell over 1 per cent, hitting fresh 52-week low, on the Bombay stock Exchange as some of rating agencies downgraded stock following chief executive officer Vishal Sikka’s shocking exit.
Extending previous session losses, shares of the company declined as much as 1.37 per cent to hit 52-week low of Rs 861.50 apiece on the Bombay Stock Exchange. The stocks were currently trading at Rs 871.55 against previous close price of Rs 873.50.
Paring early losses, shares of the company were trading 0.22 per cent higher at Rs 875.30 apiece on the National Stock Exchange.
Meanwhile, the broader benchmark BSE Sensex was trading at 31,359.04, up 100.19 points, or 0.32 per cent, at 12:05 hours.
“The GST rate of 28 per cent is high for the leasing industry when compared to the earlier five to 15 per cent tax burden. Higher GST rates lead to requirement of higher working capital at any point of time. This results in increasing the cost of leasing an equipment,” Finance Industry Development Council director general Mahesh Thakkar told PTI.
“The government should actively consider not bracketing the capital goods in the same GST bracket as luxury goods and sin goods. A lower GST rate will help increasing share of leasing in gross capital formation,” he said.
The share of leasing in gross domestic capital formation in India is less than two per cent whereas the global average is 10 per cent, he said.
The same could also create hurdles for the foreign companies in India since they believe that leasing is the most preferred method of owing assets for operation, an NBFC official said.
Apart from GST rates, there are other issues like input tax credit, penal interest/charges for delayed remittance of EMI and sale of repossessed assets which needs to be corrected.
“Till now there is no response from the government on our representation,” he said.
Both pointed out that the issue will have a severe impact on capital-starved SME players who will face major hardship due to this.
Construction equipment, wagons, heavy machinery, car leasing among others are expected to face hurdles in new regime.
Leasing in India is just three per cent of global volumes and if taxation issues are not addressed, this will effectively be a death blow to leasing even before it makes a comeback in India, a equipment company official said.
This order of 500 fully-built vehicles is driven by the success of the innovative Intelligent Exhaust Gas Recirculation (iEGR) technology which has been developed indigenously by Ashok Leyland, the company said in a filing to the Bombay Stock Exchange.
Developed to achieve the BS-IV emission norms, iEGR technology was launched in April 2017 for engines up to 400HP – a feat no other OEM has achieved globally.
Anuj Kathuria, President – Global Trucks, Ashok Leyland, says Ashok Leyland has been an integral part of Rivigo’s story since the beginning of their journey and this fresh order is a testimonial to the Indian, Intelligent and Innovative offerings of iEGR BS-IV technology, which translates to, ‘No Adblue’, ‘No Electronics’ and ‘Better Mileage’.
Meanwhile, shares of the company were trading at Rs 103.95 apiece, up 0.63 per cent from the previous close at 13:00 hours on BSE.
At the MCX, gold futures for October 2017 contract is trading at Rs 29079 per 10 grams, up by 0.81 per cent, after opening at Rs 28900, against a previous close of Rs 28844. It touched the intra-day high of Rs 29084 (at 17:32 hours).
The company has reported a 41.6 per cent growth in profit at Rs 3,200 crore in Q1 FY18, against Rs 2,260 crore in the same quarter last financial year, thanks to a one-time gain of Rs 3,609 crore.
Reacting to Q1, shares of the company declined as much as 8.23 per cent to hit intra-day low of Rs 382.45 apiece on the Bombay Stock Exchange. The stocks were currently trading at Rs 385.30 against previous close price of Rs 416.75.
In a similar fashion, shares of the company were trading 6.65 per cent lower at Rs 388.40 apiece on the National Stock Exchange.
Meanwhile, the broader benchmark BSE Sensex was trading at 31,638.61, down 159.23 points, or 0.50 per cent, at 13:30 hours.
At the MCX, gold futures for October 2017 contract opened at Rs 28462, against a previous close of Rs 28457. It touched the intra-day low of Rs 28432 (at 13:07 hours).
Analysts said that the gold prices are expected to trade range bound for the day, as downbeat US data weakened the prospect of the Federal Reserve pursuing an aggressive rate hike stance.
At the MCX, gold futures for August 2017 contract is trading at Rs 28430 per 10 grams, up by 0.09 per cent, after opening at Rs 28420, against a previous close of Rs 28404. It touched the intra-day high of Rs 28509 (at 13:38 hours).
Analysts said widening of positions by participants due to pick up in demand from consuming industries in the spot market mainly influenced aluminium prices at futures trade.
At the MCX, aluminium futures for July 2017 contract is trading at Rs 121.50 per kg, up by 0.29 per cent, after opening at Rs 121.35, against a previous close of Rs 121.15. It touched the intra-day high of Rs 122.05 (at 14:15 hours).
Zinc futures were trading higher during the afternoon trade in the domestic market on Wednesday as speculators created fresh positions on pick-up in demand from consuming industries at the spot markets. Market analysts attributed the rise in zinc futures to fresh bets created by participants on the back of rising demand at the domestic spot market.
At the MCX, zinc futures for July 2017 contract is trading at Rs 179.50 per kg, up by 0.17 per cent, after opening at Rs 178.65, against a previous close of Rs 179.20. It touched the intra-day high of Rs 179.65 (at 14:07 hours).
Analysts said pick-up in demand from consuming industries in the spot market mainly supported the upside in copper futures here but weak trend in overseas markets capped the gains.
At the MCX, copper futures for August 2017 contract is trading at Rs 380.40 per kg, up by 0.30 per cent, after opening at Rs 378.80, against a previous close of Rs 379.25. It touched the intra-day high of Rs 381.25 (at 14:15 hours).