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).
“The public sector lender had posted standalone net loss of Rs 440.56 crore in the same period last year,” said UCO Bank in a filing to the Bombay Stock Exchange.
Interest income of the bank declined by 10.10 per cent at Rs 3766.58 crore for the quarter ended June 30, 2017 as against Rs 4189.64 crore in the corresponding period last year.
During the April-June quarter, total income dipped moderately by 10.38 per cent to Rs 4,237.04 crore from Rs 4,727.93 crore in the year ago period.
Meanwhile, operating expenses dropped by 7.40 per cent to Rs 3,627.96 crore from Rs 3,917.77 crore in the same period last year.
Operating profit slipped 24.82 per cent to Rs 609.08 crore from Rs. 810.16 crore.
Provisions and Contingencies surged by 1.73 per cent at Rs 1,272.10 crore from Rs 1,250.50 crore a year ago.
NII, the difference between interest earned on loans and interest paid on deposits, slipped by 14.61 per cent at Rs 841.47 crore versus Rs 985.45 crore in the year ago period. Non-interest income too dipped 12.60 per cent year-on-year to Rs 470.46 crore.
On the asset side, gross non- performing assets (NPAs) rose to 19.87 per cent of the gross advances as at the end of June 30, 2017 from a level of 17.19 per cent year earlier. Its net NPAs or bad loans too increased to 10.63 per cent of net advances on June 30, 2017 from 10.04 per cent a year ago.
Meanwhile, shares of the bank closed day’s trade at Rs 33.20 apiece, down 1.04 per cent, on the BSE.
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).
Analysts attributed the fall to offloading of positions by speculators at prevailing higher levels coupled with subdued spot demand.
At the MCX, copper futures for August 2017 contract is trading at Rs 407.35 per kg, down by 0.16 per cent, after opening at Rs 407.05, against a previous close of Rs 408.00. It touched the intra-day low of Rs 403.50 (at 16:40 hours).