Asian shares fell on Monday led by a fall in Japanese shares after trading holidays. The Japanese Nikkei fell 3 per cent while the MSCI Asia Pacific index shed 1.5 per cent value. A stronger yen and weak US jobs data weighed on Japanese shares. The MSCI Asia Pacific index is headed for the lowest close in three months. There are growing concerns over Europe's debt crisis. Markets in Thailand are closed for holiday today.
Finance bill in Parliament
Starting on Monday, India's parliament will begin considering the finance bill that includes the tax proposals but final details may be a month or more away, government sources have said. This is likely to prolong the uncertainty and aggravate a balance of payments shortfall. India's move to target tax evaders through a general anti-avoidance rule (GAAR), along with a plan to retroactively tax the indirect transfer of assets, has spooked investors and added to an exodus of funds, battering the rupee.
FII turn net buyers
Overseas investors infused Rs 876 crore into India's equity markets in the first week of May on hopes that the government may review the General Anti Avoidance Rule (GAAR) provisions in coming days to address most of the concerns of FIIs, say experts. FIIs made gross purchase of equities worth Rs 6,716.50 crore and sold shares valued Rs 5,840.40 crore translating into a net inflow of Rs 876.10 crore during May 2-4, according to the data available with the market regulator Sebi.
India could have lost $ 10bn over GAAR
Indian markets could have lost an estimated $10 billion worth investments from the overseas funds and ultra-rich foreign individuals over a period of little more than one month on taxation worries. These investors, who mostly invest through P-Notes (participatory notes) in the Indian markets have either pared their exposure to the Indian securities or have deferred their investments ever since India proposed a new tax policy, the General Anti-Avoidance Rule (GAAR) late in March 2012, industry sources said.
Other income saves India Inc's profits
The so-called 'other income' that seems to have saved the day for the top corporates of the country during the last fiscal. Out of the 30 companies constituting the stock market barometer Sensex, a total of 12 firms have so far announced their financial results for 2011-12 and their collective net profit grew by 9.2 per cent to over Rs 72,000 crore. However, if we exclude the 'other income' from their financials, the total net profit actually fell by about 8 per cent to about Rs 43,000 crore during the year 2011-12.
Black money: Real estate sector has the most
Economic intelligence agencies have informed the Finance Ministry that a major chunk of illegal funds and black money is being generated and routed in the real estate sector of the country. The concealed incomes were detected by the investigation units of the I-T department and the total undisclosed income in the real estate and construction sector was more than Rs 1,400 crore, while the manufacturing sector reported more than Rs 1,100 crore of stashed funds during the calendar year.
JP Associates faces penalty over Himachal plant
The Himachal Pradesh High Court has imposed a penalty on JP Associates for setting up Bagheri cement plant. The penalty of Rs 100 crore to be paid in four instalments by March 2015. The company has been directed to dismantle the 62 MW captive power plant attached to the cement plan in three months.
Bank of Baroda hopes to better profit margin in 2012-13: chairman
Public sector lender Bank of Baroda (BoB) is hopeful of reporting a net interest margin (NIM) in the range of 3.41-3.61 per cent in the current financial year, M D Mallya, chairman of the bank said. The bank had an NIM of 3.51 per cent in the last financial year. Mallya said that possible reduction in the cost of funds, along with increasing CASA base would support the NIM this fiscal.
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