OPINION, P8 ECONOMY, P2 ADAM MINTER Facebook is not just a social network it is also a marketplace INTERNATIONAL, P14 EDITORIAL FUEL PRICE SURGE WHISTLEBLOWING INQUIRY India doesn’t have a water-shortage problem, it has a huge water-waste one Petro products need to be brought under GST, says Pradhan British bank regulators fine Barclays chief executive Staley NEW DELHI, SATURDAY, APRIL 21, 2018 WWW.FINANCIALEXPRESS.COM FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE READ TO LEAD VOL.XLIV NO. 43, 20 PAGES, `10.00 (PATNA `9.00, RAIPUR `10.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 34,415.58 ▼ 11.71 NIFTY: 10,564.05 ▼ 1.25 NIKKEI 225: 22,162.24 ▼ 28.94 HANG SENG: 30,418.33 ▼ 290.11 `/$: 66.11 ▼ 0.31 `/€: 81.38 ▲ 0.04 BRENT: $73.10 ▼ $0.68 GOLD: `31,298.00 ▼ `7.00 Continued on Page 2 TCS Market-cap ($ bn) 110 98.92 95 80 71.53 65 50 Oct 3, ‘17 Source: Bloomberg Apr 20, ‘17 FE BUREAU Mumbai, April 20 DEBT AND FOREX market traders reacted strongly with surprise as the seemingly dovish tone of the central bank at the time of announcing the April monetary policy turned out to be distinctly hawkish after minutes of the Reserve Bank of India’s monetary policy committee (MPC) meeting werereleasedlateonThursday. Itwas no surprise,then,that bonds sold off on Friday when tradingopened.Thebenchmark yieldclosedatoveraone-month high of 7.72% (up from 7.63% on Thursday) after having surged to as high as 7.795% on an intra-day basis. Trading hourswere extended byoveran houronFridayasauctionresults werelate,abonddealersaid.The cut-off yield on the benchmark bonds during the auction was 34,440 Prev. close: 34,427.29 34,434.14 India MPC minutes and the April policy document are somewhat divergent.“Despite the flagging of many upside risks to inflation in the April monetary policy, the market took the signal as dovish,given that RBI brought down their forecastforCPI(ConsumerPrice Index) overFY19. SEVEN OPPOSITION PARTIES, led by the Congress, launched an unprecedented move to impeach Chief Justice of India (CJI) Deepak Misra, accusing him of corruption, misusing his authority and failing to protect the independence of the judiciary. Partyleadersmetvice-president M Venkaiah Naidu, who is also the chairman of the Rajya Sabha, and handed over the notice of impeachment bearing signatures of 64 MPs and seven former MPs, who recently retired. This comes a day after a Supreme Court bench headed by CJI Misra rejected a bunch of petitions seeking an independent investigation into the death of judge BH Loya, who was hearing the Sohrabuddin Sheikh encounter case. “We wish this day had never come,” said senior Congress leader Kapil Sibal, adding that the step has been taken “with a heavy heart” to protect the independence of the judiciary. Continued on Page 2 Continued on Page 2 34,370 34,300 34,415.58 34,230 34,160 Open `/$ Close Intra-day, April 20 Inverted scale 65.92 Prev. close: 65.80 65.96 66.00 10-year bond yield (%) Intra-day, April 20 7.86 7.80 7.761 7.718 7.74 66.04 7.68 66.08 7.62 66.12 66.08 Open 66.11 Close 7.77% — near the high of the day. The rupee too closed at a one-year low of 66.10 against the dollar,on the seeming shift inmonetarypolicystancealong with factors like a stronger dollar (against a basket of currencies) and firm crude prices. Suyash Choudhary, head, fixed income, at IDFC AMC agrees that the effective signalling in the Reserve Bank of 7.56 Prev. close: 7.630 Open Close State PSUs^ (` crore) COMPANIES OWNED BYstate governments persisted with theirrelentless draining of the exchequerin FY17,an analysis of some 400 of them — nearly half of the total — by FE showed. On the face of it, the aggregate net losses of the companies reviewed declined 30%to`19,720croreinFY17, the latest year for which data is available, but that was almost entirely because elec- Net losses Accumulated losses FY15 2,13,855 34,510 EXPRESS NEWS SERVICE New Delhi, April 20 PRASANTA SAHU New Delhi, April 20 FY16 19,720 Intra-day, April 20 S&P BSE Sensex Despite UDAY, state PSUs eat into budget funds 1,90,729 THE TATA CONSULTANCY Services (TCS) share clocked its biggest single-day gain in six yearsof7%onFriday,takingits market capitalisation up by `42,497 crore ($6.4 billion) to `6.53 lakh crore, tantalisingly closeto$100billion.AtFriday’s close, the software major’s market cap is just $1.4 billion shy of the milestone. In fact, if the rupee was a little stronger the company might have hit the mark on Fridayitself. The stock witnessed a strong rally to close at `3,406.40 on the BSE. Tone differs from April statement; rupee at over oneyear low, yield at a one-month high on rate hike fears Opposition parties move to impeach CJI DRAIN ON EXCHEQUER 28,154 YOOSEF KP Mumbai, April 20 Bond yields spike, rupee collapses ● FIRST TIME 1,62,301 TCS nears $100 billion in market capitalisation HAWKISH RBI MINUTES 26,478 ● SHARE JUMP FY17 ^400 firms in 10 states Call drops tricity distribution companies in the states could save a lot on their interest outgo under the UDAY scheme. The interest savings of discoms of all 16 states that signed up for the UDAYschemewere to the tune of `13,000 crore (thanks to the respective state governments taking over the discom debts); absent these savings, the state PSUs studied by FE would have only increased their losses in FY17. Continued on Page 2 RISHI RANJAN KALA SPECIAL FEATURE Relief as telcos boost infra After rising during April-November 2017, call drops have reached their lowest at 0.54% in the last one year as operators spruced up their infrastructure 0.9 Call drop rate trends (%) Digesting plastic 0.8 0.7 0.6 0.5 0.66 0.68 0.66 All India 0.61 Bharti Airtel Vodafone India Idea Cellular 0.4 Feb 2017 Source: Trai 0.62 0.58 0.54 0.47 Feb 2018 A new bacterial enzyme that can digest PET could lower the probability of the planet choking on its plastic waste ■ Science & Tech, P13
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