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Sensex and Nifty On A Roll, Asian Markets Get A Breather et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Aug 17, 2018 12:26 PM 2 min read
Editorial

End of Day Wrap-up (Friday / Aug 17, 2018) #JetAirways #RBI #Patanjali #Ramdev #Sensex #Nifty50 #HangSeng #Nikkei #Google #SundarPichai #China #Transfin

Editor's Comment: Jet Airways to announce its June quarter results on August 27th after initial delays. Announcement previously deferred when company's audit committee failed to recommend results to the board raising suspicions around rising financial troubles with the airline.

 

Government asks RBI to consider diluting the Prompt Corrective Action (PCA) framework. Central government asserts the current framework is responsible for additional burden on PSBs, already under pressure due to deleveraging of NPAs. Present PCA requirements include registering net NPA level of 6%, 2 consecutive years of negative ROA, or capital adequacy ratio falling below RBI requirements.

 

Patanjali's sales grew slower at 7% during 2H of FY17-18, at 22% in 1H of FY17-18 (vs. 52% and 49% in prior year). Growth pressure due to rivals i.e. HUL, Dabur, Himalaya, and Emami's entry into herbal products.

 

Sensex closes at 37,948 points, up 284 points with Nifty50 at new high of 11,471 points, up 86 points. Trade optimism and a fresh round of talks between US and China next week appear to be key drivers. 

 

Asian markets breathe easy with Hong Kong's Hang Seng rebounding by 0.5%, and Japan's Nikkei 225 advancing by similar amount on back of trade optimism and fresh round of talks between US and China scheduled for next week.

 

Google CEO Sundar Pichai defends the internet giant's push to do more business in China. Google is developing search engine services for Chinese citizens that could adhere to China's strict censors. Move seems to have the support of Co-founder and Alphabet president Sergey Brin, who was earlier instrumental in Google's decision to withdraw its search engine from China in 2010.