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Tuesday, December 24, 2013
Flipkart India reports loss of Rs.281.7 crore
Flipkart India Pvt. Ltd, the wholesale business of India’s largest online retailer Flipkart, reported a loss of Rs.281.7 crore in the year ended March, much wider than its loss of Rs.109.9 crore in the previous year, as it significantly raised spending to increase revenues.
Revenue soared fivefold to more than Rs.1,180 crore from Rs.204.8 crore in the previous year, documents filed by the company with the Registrar of Companies show.
Flipkart India’s expenses jumped more than five times to Rs.1,366 crore from Rs.265.6 crore last year. Cash balance dropped to Rs.166.2 crore on 31 March from Rs.236 crore a year ago.
The deeper losses as well as soaring sales are in keeping with Flipkart’s winner-takes-all strategy, which involves pursuing revenue growth and market share at any cost, the same model followed by Amazon.com Inc. in the US.
More at here
Crude slips
Positive economic data restrict the fall
Crude Oil futures drifted lower on Monday, 23 December 2013 at Nymex but continued to hover just below a two-month high as traders weighed signs of an improving U.S. economy.
February crude oil fell 41 cents, or 0.4%, to close at $98.91 a barrel.
In overnight trading the featured news was spiking short-term interest rates in China, mainly due to end-of-quarter and end-of-year pressures on banks to square up their books. The markets are so far mostly ignoring the matter.
Today's economic data at Wall Street was limited to just two reports, neither of which saw a notable reaction in the market. Personal income increased 0.2% in November after declining 0.1% in October. The consensus expected personal income to increase 0.5%. Compensation levels were a little softer than the employment report implied, increasing 0.3% instead of 0.6%. That difference likely caused the weaker-than-expected income gain. Personal spending rose 0.5%, in-line with consensus expectations, after increasing an upwardly revised 0.4% (from 0.3%) in October.
Separately, the December University of Michigan Consumer Sentiment Index remained at 82.5 in the final reading while the consensus expected the index to be revised up to 83.3.
January natural gas climbed 4 cents to $4.46 per million British thermal units. January
Market may open flat to slightly higher
Trading of CNX Nifty futures on the Singapore stock exchange indicates a flat opening of the domestic bourses. Asian stocks gained on Tuesday after data showed the US economic recovery gaining momentum.
The market may remain volatile this week, which is a truncated trading week, as traders roll over positions in the futures & options (F&O) segment from the near month December 2013 series to January 2014 series. The near month December 2013 derivatives contract expire on Thursday, 26 December 2013. The stock market remains closed tomorrow, 25 December 2013, on account of Christmas.
UltraTech Cement on Monday, 23 December 2013 said that the Competition Commission of India (CCI) has by an order dated 20 December 2013 (received by the company on 23 December 2013), passed under section 31(1) of the Competition Act, 2002 approved the proposed acquisition of Jaypee Cement Corporation (JCCL)'s 4.8 MTPA Gujarat cement plant. Further, court convened meetings of the equity shareholders, secured and unsecured creditors of the company will be held on 20 January 2014 seeking their approval to the Scheme of Arrangement, UltraTech Cement said.
It may be recalled that UltraTech Cement had on 11 September 2013 said that Jaypee Cement Corporation (JCCL), a 100% owned subsidiary of Jaiprakash Associates had reached an agreement to sell its 4.8 MTPA Gujarat Cement Plant to UltraTech Cement for an enterprise value of Rs 3800 crore, besides the actual net working capital. Gujarat Cement Project consists of an integrated cement plant at Kutch and a 2.4 MTPA cement grinding unit at Wanakbori.
Housing Development Finance Corporation (HDFC) on Monday, 23 December 2013 announced the signing of a definitive agreement for HDFC Mutual Funds to acquire all the eight schemes of Morgan Stanley Mutual Fund in India. The agreement is subject to regulatory approvals as required, HDFC said. The average combined assets under management of the eight schemes for quarter ended 30 September 2013 was Rs 3290 crore, HDFC said.
NHPC after market hours on Monday, 23 December 2013 said that a Promoters' Agreement was signed on 21 December 2013 between NHPC, Government of Odisha and Odisha Hydro Power Corporation for the formation of a joint venture company for implementation of six hydroelectric projects with an aggregate installed capacity of 1,020 megawatts (MW).
Key benchmark indices eked out small gains after witnessing high volatility during the last one hour or so of the trading session on Monday, 23 December 2013. The S&P BSE Sensex garnered 21.31 points or 0.1% to settle at 21,101.03 on that day, its highest closing level since 11 December 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 135.42 crore on Monday, 23 December 2013, as per provisional data from the stock exchanges.
Asian stocks gained on Tuesday after data showed the US economic recovery gaining momentum. Key benchmark indices in China, Hong Kong, Japan, Taiwan, Singapore and South Korea rose 0.06% to 0.84%. In Indonesia, Jakarta Composite was off 0.18%.
US stocks on Monday jumped to new records after strong economic data gave new momentum to last week's rally.
US household purchases, which account for almost 70 percent of the economy, rose 0.5% after a 0.4% gain in October that was larger than previously estimated, the Commerce Department reported in Washington. A separate report showed consumer confidence increased in December. The Thomson Reuters/University of Michigan final index of consumer sentiment climbed to 82.5 from 75.1 a month earlier.
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