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Japanese automaker Nissan Motor Co reached lower-than-expected operating profits for the third quarter.

The company&#39;s domestic sales are suffering because of higher marketing and selling expenses. Currency effects also played a central role.

Nissan Motor Co is Japan&#39;s second-largest automaker and from October to December 2016 it posted an operating profit of 1.46 billion USD, 267 million USD lower than a year ago when it touched 1.7 billion USD.

The third quarter profit is also lower than a median forecast of 1.5 billion USD that none analysts polled by Thomson Reuters I/B/E/S.&nbsp;

Nissan left its full-year net profit forecast unchanged at 4.6 billion USD, while it maintained its expectations for operating profit at 6.3&nbsp;billion USD.

(WION with inputs from Reuters)

The company's operating profits were 1.46 billion USD, 267 million USD lower than a year ago

Japanese automaker Nissan Motor Co reached lower-than-expected operating profits for the third quarter. The company's domestic sales are suffering because of higher marketing and selling expenses. Currency effects also played a central role. Nissan Motor Co is Japan's second-largest automaker and from October to December 2016 it posted an operating profit of 1.46 billion USD, 267 million USD lower than a year ago when it touched 1.7 billion USD. The third quarter profit is also lower than a median forecast of 1.5 billion USD that none analysts polled by Thomson Reuters I/B/E/S. Nissan left its full-year net profit forecast unchanged at 4.6 billion USD, while it maintained its expectations for operating profit at 6.3 billion USD. (WION with inputs from Reuters)

Third quarter shows lower profits for Nissan Motor Co

The Finnish mobile phone and network equipment maker Nokia has all intentions to buy Comptel for nearly 370 million USD.

The move aims at expanding Nokia&#39;s software services business. Once one of the most prominent mobile phone producers, the company has recently struggled to meet the demand of faster 4G mobile broadband equipment.

Comptel is a company specialised in in building software-based mobile data communications solutions.&nbsp;

Last year Nokia bough Franco-American group Alcatel-Lucent in a nearly 16.7 billion USD all-share deal and is cutting thousands of jobs in order to reduce annual costs by 1.3 billion USD by 2018.

Nokia said its customers were now turning to software to make their networks more intelligent

&quot;The planned acquisition is part of Nokia&#39;s strategy to build a standalone software business at scale by expanding and strengthening its software portfolio and go-to-market capabilities with additional sales capacity and a strategic partner network,&quot; Nokia said in a statement.

The cash offer, 3.25 USD per share, represents a premium of 29 percent compared with Comptel&#39;s last closing price.

Comptel, which had sales of about 100 million euros in 2016, said its board of directors, and shareholders that hold about 48 percent of the shares backed the offer.

(WION with inputs from Reuters)

&nbsp;

The Finnish network equipment maker said the move aims at building "a standalone software business at scale"

The Finnish mobile phone and network equipment maker Nokia has all intentions to buy Comptel for nearly 370 million USD. The move aims at expanding Nokia's software services business. Once one of the most prominent mobile phone producers, the company has recently struggled to meet the demand of faster 4G mobile broadband equipment. Comptel is a company specialised in in building software-based mobile data communications solutions. Last year Nokia bough Franco-American group Alcatel-Lucent in a nearly 16.7 billion USD all-share deal and is cutting thousands of jobs in order to reduce annual costs by 1.3 billion USD by 2018. Nokia said its customers were now turning to software to make their networks more intelligent "The planned acquisition is part of Nokia's strategy to build a standalone software business at scale by expanding and strengthening its software portfolio and go-to-market capabilities with additional sales capacity and a strategic partner network," Nokia said in a statement. The cash offer, 3.25 USD per share, represents a premium of 29 percent compared with Comptel's last closing price. Comptel, which had sales of about 100 million euros in 2016, said its board of directors, and shareholders that hold about 48 percent of the shares backed the offer. (WION with inputs from Reuters)

Nokia plans to acquire software building company Comptel for 370 million USD

Catch stories that made the headlines in the world of Business and Economy with Sumit Chaturvedi only on WION.

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Asian share markets retreated on Wednesday and the Euro was pressured as doubts over the policies of US President Donald Trump and an election looming in France sapped investor confidence.

MSCI&#39;s broadest index of Asia-Pacific shares outside Japan ticked down 0.3 per cent, slipping further from Monday&#39;s four-month high, led by 0.9 per cent fall in South Korean shares. Japan&#39;s Nikkei slipped 0.2 per cent.

&quot;The markets are now paying attention to political risks in Europe and the United States, after a rally earlier this week following the strong US payrolls data,&quot; said Kenta Tadaide, senior economist at Mizuho Research Institute.

On Wall Street, the S&amp;P 500 ended barely higher while the Nasdaq edged to a record high as gains in big tech names countered energy declines. With more than half of the S&amp;P 500 having reported results, fourth-quarter earnings are on track to have climbed 8.2 per cent, which would be the best performance since the third quarter of 2014, according to Thomson Reuters.

A raft of strong global economic data and hopes that Trump&#39;s talk of economic stimulus measures had helped to support world share markets, and the dollar, since late last year. But the lack of detail on Trump&#39;s stimulus plans and some other policy stances taken after he was sworn in on January 20 have unsettled investors.

Trump&#39;s protectionist leanings on international trade and controversy over his move to temporarily ban the entry of immigrants from seven Muslim-majority countries have caused alarm. &quot;Corporate earnings have been pretty good so far. But without details of Trump&#39;s economic policies, it is hard to become bullish,&quot; said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.

Uncertainty on the new administration&#39;s currency policy is also keeping foreign exchange markets on edge. The dollar has been steadily declining against the yen since Trump signalled displeasure with Japan&#39;s currency stance on January 31.

The US&nbsp;currency traded at 112.35 Yen, having fallen to 111.59 Yen on Tuesday, its lowest since late November. The pair may see limited moves for now as traders look to a meeting between Trump and Japanese Prime Minister Shinzo Abe on Friday.

The Euro, on the other hand, shed 0.6 per cent on Tuesday and last stood at $1.0682, hit by rising concerns that the far right could win France&#39;s presidential vote and take the country out of the Euro. The gap between French and German 10-year borrowing costs widened to 78 basis points, the biggest level since late 2012.

Support for conservative challenger Francois Fillon, who was seen as a frontrunner a few weeks ago, has tumbled in the wake of a financial scandal, losing ground to independent centrist Emmanuel Macron and the anti-EU National Front leader Marine Le Pen.

&nbsp;

While most investors expect Le Pen to be defeated in the run-off by a more moderate candidate, markets are nervous after last year&#39;s experience of the Brexit referendum and Trump&#39;s victory.

In addition, wrangling over Greece&#39;s bailout are starting to haunt the market ahead of the euro group meeting on February 20, with two-year Greek debt yield soaring to near 10 percent on Tuesday, compared to around six percent just about two weeks ago.

Elsewhere, the Chinese Yuan dipped slightly following Tuesday&#39;s data that showed China&#39;s foreign exchange reserves unexpectedly fell below the closely watched $3 trillion level in January for the first time in nearly six years. Still, the market impact was limited as the fall in the reserves, of $12.3 billion to $2.998 trillion, was the smallest in seven months, indicating China&#39;s renewed crackdown on outflows appears to be working, at least for now.

The Yuan was little changed after dipping to a&nbsp;one-week low of 6.847 per dollar in offshore trade and three-week low of 6.8916 in the onshore trade. &quot;The fall was relatively small and had limited impact on the mainland markets. It is not like we have seen massive capital outflows,&quot; said Naoki Tashiro, head of TS China Research.

Oil prices extended falls, as a massive increase in US&nbsp;fuel inventories and a slump in Chinese demand implied that global crude markets remain oversupplied despite OPEC-led efforts to cut output. International Brent crude futures fell 0.9 per cent to $54.55 per barrel. They were down 4.0 per cent so far this week.

(Reuters)

MSCI's broadest index of Asia-Pacific shares outside Japan ticked down 0.3%, slipping further from Monday's four-month high

Asian share markets retreated on Wednesday and the Euro was pressured as doubts over the policies of US President Donald Trump and an election looming in France sapped investor confidence. MSCI's broadest index of Asia-Pacific shares outside Japan ticked down 0.3 per cent, slipping further from Monday's four-month high, led by 0.9 per cent fall in South Korean shares. Japan's Nikkei slipped 0.2 per cent. "The markets are now paying attention to political risks in Europe and the United States, after a rally earlier this week following the strong US payrolls data," said Kenta Tadaide, senior economist at Mizuho Research Institute. On Wall Street, the S&P 500 ended barely higher while the Nasdaq edged to a record high as gains in big tech names countered energy declines. With more than half of the S&P 500 having reported results, fourth-quarter earnings are on track to have climbed 8.2 per cent, which would be the best performance since the third quarter of 2014, according to Thomson Reuters. A raft of strong global economic data and hopes that Trump's talk of economic stimulus measures had helped to support world share markets, and the dollar, since late last year. But the lack of detail on Trump's stimulus plans and some other policy stances taken after he was sworn in on January 20 have unsettled investors. Trump's protectionist leanings on international trade and controversy over his move to temporarily ban the entry of immigrants from seven Muslim-majority countries have caused alarm. "Corporate earnings have been pretty good so far. But without details of Trump's economic policies, it is hard to become bullish," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management. Uncertainty on the new administration's currency policy is also keeping foreign exchange markets on edge. The dollar has been steadily declining against the yen since Trump signalled displeasure with Japan's currency stance on January 31. The US currency traded at 112.35 Yen, having fallen to 111.59 Yen on Tuesday, its lowest since late November. The pair may see limited moves for now as traders look to a meeting between Trump and Japanese Prime Minister Shinzo Abe on Friday. The Euro, on the other hand, shed 0.6 per cent on Tuesday and last stood at $1.0682, hit by rising concerns that the far right could win France's presidential vote and take the country out of the Euro. The gap between French and German 10-year borrowing costs widened to 78 basis points, the biggest level since late 2012. Support for conservative challenger Francois Fillon, who was seen as a frontrunner a few weeks ago, has tumbled in the wake of a financial scandal, losing ground to independent centrist Emmanuel Macron and the anti-EU National Front leader Marine Le Pen. While most investors expect Le Pen to be defeated in the run-off by a more moderate candidate, markets are nervous after last year's experience of the Brexit referendum and Trump's victory. In addition, wrangling over Greece's bailout are starting to haunt the market ahead of the euro group meeting on February 20, with two-year Greek debt yield soaring to near 10 percent on Tuesday, compared to around six percent just about two weeks ago. Elsewhere, the Chinese Yuan dipped slightly following Tuesday's data that showed China's foreign exchange reserves unexpectedly fell below the closely watched $3 trillion level in January for the first time in nearly six years. Still, the market impact was limited as the fall in the reserves, of $12.3 billion to $2.998 trillion, was the smallest in seven months, indicating China's renewed crackdown on outflows appears to be working, at least for now. The Yuan was little changed after dipping to a one-week low of 6.847 per dollar in offshore trade and three-week low of 6.8916 in the onshore trade. "The fall was relatively small and had limited impact on the mainland markets. It is not like we have seen massive capital outflows," said Naoki Tashiro, head of TS China Research. Oil prices extended falls, as a massive increase in US fuel inventories and a slump in Chinese demand implied that global crude markets remain oversupplied despite OPEC-led efforts to cut output. International Brent crude futures fell 0.9 per cent to $54.55 per barrel. They were down 4.0 per cent so far this week. (Reuters)

Asia shares down, Euro pressured by doubts over Trump's policies, French election

Electric car maker Tesla Incorporation may enter the Indian market this summer, Chief Executive Elon Musk tweeted on Tuesday.

Replying to a question on Twitter regarding whether Tesla plans to launch in India, Musk tweeted: &quot;Hoping for summer this year.&quot;&nbsp;

Twitter user who goes by the handle &rlm;@goel_ishan posted a tweet which asked, &ldquo;@elonmusk eagerly waiting for Tesla to launch in India. Any plans to do it? If so then WHEN?&rdquo; Musk replied by saying, &ldquo;@goel_ishan Hoping for summer this year.&rdquo;

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
<a href="https://twitter.com/goel_ishan">@goel_ishan</a> Hoping for summer this year
&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/829027848434257924">February 7, 2017</a></blockquote>
<script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">&times;</a></div>

Musk did not offer any details on the plans.

(WION with agency inputs) 
&nbsp;

&nbsp;

&nbsp;

Electric car maker Tesla Incorporation may enter the Indian market but Elon Musk did not offer any details.

Electric car maker Tesla Incorporation may enter the Indian market this summer, Chief Executive Elon Musk tweeted on Tuesday. Replying to a question on Twitter regarding whether Tesla plans to launch in India, Musk tweeted: "Hoping for summer this year." Twitter user who goes by the handle ‏@goel_ishan posted a tweet which asked, “@elonmusk eagerly waiting for Tesla to launch in India. Any plans to do it? If so then WHEN?” Musk replied by saying, “@goel_ishan Hoping for summer this year.” @goel_ishan Hoping for summer this year — Elon Musk (@elonmusk) February 7, 2017 × Musk did not offer any details on the plans. (WION with agency inputs)

Tesla may launch cars in India this summer

Indian shares retreated on Tuesday from four-month highs hit in the previous session as investors stayed on the sidelines ahead of the Reserve Bank of India&#39;s policy meeting.

Analysts expect the RBI to cut the repo rate by 25 basis points on Wednesday after December inflation hit a two-year low. But they warn it will be a close call since the central bank may even opt to maintain status quo until its next review in April.

RBI may keep rates unchanged as it continues to assess the impact of the crackdown on high-value notes on inflation, some analysts said.

Most Indian automakers were down, contributing to over three-fourths of Nifty&#39;s decline, with Tata Motors Ltd and Mahindra &amp; Mahindra Ltd falling as much as 2.4 per cent and 1.7 per cent respectively.

Banks have already slashed lending rates this year after deposits surged following the ban on high-denomination currency notes, reducing the need for further rate cuts.

&quot;I don&#39;t think that the RBI will cut interest rates this time,&quot; says Sangeeth V, an institutional sales trader with Paterson Securities.

&quot;Banks are already flush with funds post-demonetisation.&quot;

The broader Nifty was down 0.28 per cent at 8,777.30 as of 6:04 GMT while the benchmark 30-stock Sensex was trading 0.24 per cent lower at 28,371.40.

On Monday, both the indexes hit their highest since late September.

Among the gainers, ITC Ltd rose to a record high. Government-owned Specified Undertaking Of The Unit Trust Of India sold a two-percent stake in the country&#39;s biggest cigarette maker via block deals.

Railway coach maker Titagarh Wagons Ltd rose as much as 7 per cent after getting a contract worth one billion rupees from the Ministry of Earth Sciences. ($14.84 million).

(Reuters)

Analysts expect the RBI to cut the repo rate by 25 basis points on Wednesday after December inflation hit a two-year low

Indian shares retreated on Tuesday from four-month highs hit in the previous session as investors stayed on the sidelines ahead of the Reserve Bank of India's policy meeting. Analysts expect the RBI to cut the repo rate by 25 basis points on Wednesday after December inflation hit a two-year low. But they warn it will be a close call since the central bank may even opt to maintain status quo until its next review in April. RBI may keep rates unchanged as it continues to assess the impact of the crackdown on high-value notes on inflation, some analysts said. Most Indian automakers were down, contributing to over three-fourths of Nifty's decline, with Tata Motors Ltd and Mahindra & Mahindra Ltd falling as much as 2.4 per cent and 1.7 per cent respectively. Banks have already slashed lending rates this year after deposits surged following the ban on high-denomination currency notes, reducing the need for further rate cuts. "I don't think that the RBI will cut interest rates this time," says Sangeeth V, an institutional sales trader with Paterson Securities. "Banks are already flush with funds post-demonetisation." The broader Nifty was down 0.28 per cent at 8,777.30 as of 6:04 GMT while the benchmark 30-stock Sensex was trading 0.24 per cent lower at 28,371.40. On Monday, both the indexes hit their highest since late September. Among the gainers, ITC Ltd rose to a record high. Government-owned Specified Undertaking Of The Unit Trust Of India sold a two-percent stake in the country's biggest cigarette maker via block deals. Railway coach maker Titagarh Wagons Ltd rose as much as 7 per cent after getting a contract worth one billion rupees from the Ministry of Earth Sciences. ($14.84 million). (Reuters)

Sensex, Nifty trade lower ahead of RBI policy meet

The rate-setting Monetary Policy Committee (MPC) today began its third review meeting amid mixed expectations of possible rate cut by the Reserve Bank of India.

Expert opinions were divided if the RBI Governor-led panel will recommend cut in interest rate by 0.25 per cent to give fillip to growth or maintain status quo because of inflationary pressure from rising oil prices.

Banks are flush with low cost deposits on account of demonetisation of high value currency notes of Rs 500 and 1,000, as a result of which their lending rates fell by up to 1 per cent last month.

Although banks and industry have been pitching for cut in benchmark repo rate (short-term lending rate), the six-member Monetary Policy Committee (MPC) headed by RBI Governor Urjit Patel may adopt a cautious approach on February 8, especially in view of spike in crude oil prices and growing protectionist sentiment with Donald Trump taking charge as the US President.

Oil (Brent) prices have risen to USD 56.8 per barrel, while President Trump has announced a host of protectionist measures which will impact the global economy, including India.

According to PNB Managing Director Usha Ananthasubramanian there is an all-round expectation of 25 basis points cut in interest rate.

However, the transmission has already taken place and the further rate cut would depend on how long this low cost deposits stays with the bank.

&quot;Most of the banks have already front-loaded rate cut and if need be there would be further rate cut,&quot; she said.

In Patel&#39;s first policy review as RBI Governor in October, which was also the maiden review of the MPC, the repo rate was reduced by 0.25 per cent to 6.25 per cent.

In the following policy meet in December, the repo rate was retained at 6.25 per cent. However, RBI has cut repo by 1.75 per cent since January 2015.

&quot;We are expecting 25 basis points cut in repo rate because macroeconomic factors like inflation, fiscal deficit are conducive for reduction. Given the growth-oriented budget, there is a widespread speculation that RBI would respond in the same spirit,&quot; Bank of Maharashtra Executive Director R K Gupta said.

There are expectations of 25 basis point rate cut as there is excess liquidity in the system, UCO Bank MD CEO R K Takkar said.

Bandhan Bank Chairman and Managing Director Chandra Shekhar Ghosh said that the RBI is unlikely to cut rate as banks are flush with funds.

According to industry body Ficci, the RBI is likely to maintain status quo in the upcoming monetary policy meet and cut rates in the first half of fiscal year 2017-18.

Rising for the fifth straight month, retail inflation or CPI quickened to 5.61 per cent in December, mainly on costlier vegetables and cereals, limiting the headroom for the RBI to lower rates.

However, WPI or wholesale inflation fell in December but the rate of decline at 0.73 per cent was the slowest in last one year as food prices shot up, indicating return of inflationary pressures.&nbsp;

(PTI)

Banks are flush with low-cost deposits on account of demonetisation as a result of which their lending rates fell by up to 1% last month

The rate-setting Monetary Policy Committee (MPC) today began its third review meeting amid mixed expectations of possible rate cut by the Reserve Bank of India. Expert opinions were divided if the RBI Governor-led panel will recommend cut in interest rate by 0.25 per cent to give fillip to growth or maintain status quo because of inflationary pressure from rising oil prices. Banks are flush with low cost deposits on account of demonetisation of high value currency notes of Rs 500 and 1,000, as a result of which their lending rates fell by up to 1 per cent last month. Although banks and industry have been pitching for cut in benchmark repo rate (short-term lending rate), the six-member Monetary Policy Committee (MPC) headed by RBI Governor Urjit Patel may adopt a cautious approach on February 8, especially in view of spike in crude oil prices and growing protectionist sentiment with Donald Trump taking charge as the US President. Oil (Brent) prices have risen to USD 56.8 per barrel, while President Trump has announced a host of protectionist measures which will impact the global economy, including India. According to PNB Managing Director Usha Ananthasubramanian there is an all-round expectation of 25 basis points cut in interest rate. However, the transmission has already taken place and the further rate cut would depend on how long this low cost deposits stays with the bank. "Most of the banks have already front-loaded rate cut and if need be there would be further rate cut," she said. In Patel's first policy review as RBI Governor in October, which was also the maiden review of the MPC, the repo rate was reduced by 0.25 per cent to 6.25 per cent. In the following policy meet in December, the repo rate was retained at 6.25 per cent. However, RBI has cut repo by 1.75 per cent since January 2015. "We are expecting 25 basis points cut in repo rate because macroeconomic factors like inflation, fiscal deficit are conducive for reduction. Given the growth-oriented budget, there is a widespread speculation that RBI would respond in the same spirit," Bank of Maharashtra Executive Director R K Gupta said. There are expectations of 25 basis point rate cut as there is excess liquidity in the system, UCO Bank MD CEO R K Takkar said. Bandhan Bank Chairman and Managing Director Chandra Shekhar Ghosh said that the RBI is unlikely to cut rate as banks are flush with funds. According to industry body Ficci, the RBI is likely to maintain status quo in the upcoming monetary policy meet and cut rates in the first half of fiscal year 2017-18. Rising for the fifth straight month, retail inflation or CPI quickened to 5.61 per cent in December, mainly on costlier vegetables and cereals, limiting the headroom for the RBI to lower rates. However, WPI or wholesale inflation fell in December but the rate of decline at 0.73 per cent was the slowest in last one year as food prices shot up, indicating return of inflationary pressures. (PTI)

RBI monetary policy review: Rising oil prices could dampen rate cut hopes

One of the most popular and long-pending demands of middle-class India has been to raise the tax exemption limit on medical reimbursements. The limit of Rs 15,000 hasn't been changed for close to two decades

Raise medical reimbursement limit, middle-class India tells government

FM Arun Jaitley speaks on Budget mathematics, upcoming elections, politics behind Demonetization and much more from around the globe on this edition of WION Wallet with Sumit Chaturvedi

FM Arun Jaitley's first interview post budget on WION Wallet

In a&nbsp;meeting convened today, the shareholders of Tata Sons voted to remove Cyrus Mistry as director.

&quot;The shareholders of Tata Sons Ltd, at the extraordinary general meeting held today, passed, with the requisite majority, a resolution to remove Cyrus P Mistry as a Director of Tata Sons Ltd,&quot; the Tata Group&#39;s holding firm said in a statement.

Cyrus Mistry had legally challenged the holding of the EGM.

Last week, the National Company Law Appellate Tribunal (NCLAT) dismissed petitions by two investment firms of the Mistry family against the&nbsp;holding of the EGM.&nbsp;

Tata Sons had removed Cyrus Mistry as its chairman on October 24 last year. Subsequently, he resigned from the boards of six group companies.

(WION with inputs from PTI)

Tata Sons had removed Cyrus Mistry as its chairman on October 24 last year

In a meeting convened today, the shareholders of Tata Sons voted to remove Cyrus Mistry as director. "The shareholders of Tata Sons Ltd, at the extraordinary general meeting held today, passed, with the requisite majority, a resolution to remove Cyrus P Mistry as a Director of Tata Sons Ltd," the Tata Group's holding firm said in a statement. Cyrus Mistry had legally challenged the holding of the EGM. Last week, the National Company Law Appellate Tribunal (NCLAT) dismissed petitions by two investment firms of the Mistry family against the holding of the EGM. Tata Sons had removed Cyrus Mistry as its chairman on October 24 last year. Subsequently, he resigned from the boards of six group companies. (WION with inputs from PTI)

Cyrus Mistry removed as director of Tata Sons

US job creation surged in January while the unemployment rate drifted marginally higher as more people joined the job hunt, the Labour Department reported Friday.

With hiring up in retail, construction and the financial sector, the economy added 227,000 net new nonfarm jobs during the month, the biggest jump since September.

The jobless rate ticked up a tenth of a point to 4.8 per cent, reflecting a small increase in the labour force.

The result far surpassed a consensus forecast for 170,000 new positions, although economists have warned in recent days about a possible big upside surprise based on other recent labour indicators.

The new figures, which include the first 11 days of Donald Trump&#39;s presidency, largely confirm the health of the economy he inherited, which has seen a slow but steady recovery from the 2008 financial crisis.

Revisions to the November and December data, which subtracted 39,000 jobs from the originally reported figures, mean the economy created an average of 183,000 new jobs over the past three months.&nbsp;

Trump -- who on the campaign trail repeatedly impugned the trustworthiness of the unemployment data -- has pledged to create 25 million jobs over the next 10 years, a goal economists say is unrealistic because the economy is already near full employment and the ageing work force will probably grow very slowly.

The labour force participation rate rose 0.2 point to 62.9 per cent in January, indicating more people returned to the work force to search for a job.

Average hourly earnings were $26.00 an hour, up a very modest three cents from December. Wages are up 2.5 percent over the last 12 months.

&quot;We believe the trend in employment growth remains more than strong enough to keep the unemployment rate trending down and adding to upward pressure on wage gains,&quot; Jim O`Sullivan, chief economist at High Frequency Economics, said in a client note.

The US Federal Reserve this week decided to keep interest rates steady, but the central bank will feel more pressure to raise the benchmark federal funds rate to clamp down on inflation as the economy heats up and especially if wages continue to rise.Still, analysts say it&#39;s difficult to predict when a decision would be made.

January&#39;s results were a &quot;mixed bag&quot; for the Fed, making a rate hike next month less likely, says Ian Shepherdson, chief economist at Pantheon Macroeconomics.

&quot;The surge in payrolls will be a real problem for policymakers, if it is sustained, but the softness of [average hourly earnings] makes it harder for the hawks to make the case that the threat to core inflation via the labor market is immediate,&quot; he wrote in a note to clients.

Retailers -- including clothing, electronics and furniture stores -- added 46,000 positions for the month while construction added 36,000 new positions.

Financial activities accounted for 32,000 new positions, with gains recorded in real estate, insurance and credit intermediation.&nbsp; 
Restaurants and bars also continued their upward trend, adding 30,000 new positions.

Mining and manufacturing, which have both suffered losses in recent months, showed little or no change.

The general picture of unemployment remained largely unchanged, however. The so-called long-term unemployed -- those looking for work for 27 weeks or more -- numbered 1.9 million, around a quarter of the total jobless population of 7.6 million.

Discouraged workers, or those who believe no jobs are available for them, amounted to 532,000 people in January, little changed from a year ago.

Wall Street finished the day up significantly, buoyed higher both by the strong jobs numbers and new Trump executive actions to ease restrictions on the banking sector.

The Dow gained 0.9 percent while the S&amp;P finished 0.7 percent higher and the Nasdaq rose 0.5 per cent to hit a new record.

(AFP)

The economy added 227,000 net new nonfarm jobs during January, the biggest jump since September

US job creation surged in January while the unemployment rate drifted marginally higher as more people joined the job hunt, the Labour Department reported Friday. With hiring up in retail, construction and the financial sector, the economy added 227,000 net new nonfarm jobs during the month, the biggest jump since September. The jobless rate ticked up a tenth of a point to 4.8 per cent, reflecting a small increase in the labour force. The result far surpassed a consensus forecast for 170,000 new positions, although economists have warned in recent days about a possible big upside surprise based on other recent labour indicators. The new figures, which include the first 11 days of Donald Trump's presidency, largely confirm the health of the economy he inherited, which has seen a slow but steady recovery from the 2008 financial crisis. Revisions to the November and December data, which subtracted 39,000 jobs from the originally reported figures, mean the economy created an average of 183,000 new jobs over the past three months. Trump -- who on the campaign trail repeatedly impugned the trustworthiness of the unemployment data -- has pledged to create 25 million jobs over the next 10 years, a goal economists say is unrealistic because the economy is already near full employment and the ageing work force will probably grow very slowly. The labour force participation rate rose 0.2 point to 62.9 per cent in January, indicating more people returned to the work force to search for a job. Average hourly earnings were $26.00 an hour, up a very modest three cents from December. Wages are up 2.5 percent over the last 12 months. "We believe the trend in employment growth remains more than strong enough to keep the unemployment rate trending down and adding to upward pressure on wage gains," Jim O`Sullivan, chief economist at High Frequency Economics, said in a client note. The US Federal Reserve this week decided to keep interest rates steady, but the central bank will feel more pressure to raise the benchmark federal funds rate to clamp down on inflation as the economy heats up and especially if wages continue to rise.Still, analysts say it's difficult to predict when a decision would be made. January's results were a "mixed bag" for the Fed, making a rate hike next month less likely, says Ian Shepherdson, chief economist at Pantheon Macroeconomics. "The surge in payrolls will be a real problem for policymakers, if it is sustained, but the softness of [average hourly earnings] makes it harder for the hawks to make the case that the threat to core inflation via the labor market is immediate," he wrote in a note to clients. Retailers -- including clothing, electronics and furniture stores -- added 46,000 positions for the month while construction added 36,000 new positions. Financial activities accounted for 32,000 new positions, with gains recorded in real estate, insurance and credit intermediation. Restaurants and bars also continued their upward trend, adding 30,000 new positions. Mining and manufacturing, which have both suffered losses in recent months, showed little or no change. The general picture of unemployment remained largely unchanged, however. The so-called long-term unemployed -- those looking for work for 27 weeks or more -- numbered 1.9 million, around a quarter of the total jobless population of 7.6 million. Discouraged workers, or those who believe no jobs are available for them, amounted to 532,000 people in January, little changed from a year ago. Wall Street finished the day up significantly, buoyed higher both by the strong jobs numbers and new Trump executive actions to ease restrictions on the banking sector. The Dow gained 0.9 percent while the S&P finished 0.7 percent higher and the Nasdaq rose 0.5 per cent to hit a new record. (AFP)

US job creation rises in January, labour data shows

The National Company Law Appellate Tribunal (NCLAT) on Friday turned down Cyrus Mistry&#39;s appeal to defer the extraordinary general meeting (EGM) called 
by Tata Sons on February 6 to consider the removal of the ousted Tata Sons chairman from its board.

&quot;We are dismissing the appeal filed by Cyrus Mistry,&quot; said the two member-NCLAT bench headed by chairperson S J Mukhopadhya, ANI reported.

Mistry had challenged the decision of the NCLAT&#39;s Mumbai bench which permitted Tata Sons to hold the meeting.

Cyrus Investment Pvt Ltd and Sterling Investment Corp Ltd, which together hold 18.5 per cent of shares in Tata Sons, had filed a contempt of court petition at the 
NCLAT seeking a stay on Tata Sons holding the EGM.

The petition sought punishment, including simple imprisonment for a term which may extend upto six months, or a fine which may extend to Rs 2,000, or both.

Mistry was sacked as the chairman of Tata Sons last year in October after which he resigned from the board of the company.&nbsp;

He then complained against Tata Sons to the tribunal, alleging &quot;mismanagement&quot; of the firm and &quot;oppression&quot; of minority shareholders,&nbsp;

(WION with inputs from ANI)

Tata Sons has called an EGM on February 6 to consider the removal of Cyrus Mistry from its board

The National Company Law Appellate Tribunal (NCLAT) on Friday turned down Cyrus Mistry's appeal to defer the extraordinary general meeting (EGM) called by Tata Sons on February 6 to consider the removal of the ousted Tata Sons chairman from its board. "We are dismissing the appeal filed by Cyrus Mistry," said the two member-NCLAT bench headed by chairperson S J Mukhopadhya, ANI reported. Mistry had challenged the decision of the NCLAT's Mumbai bench which permitted Tata Sons to hold the meeting. Cyrus Investment Pvt Ltd and Sterling Investment Corp Ltd, which together hold 18.5 per cent of shares in Tata Sons, had filed a contempt of court petition at the NCLAT seeking a stay on Tata Sons holding the EGM. The petition sought punishment, including simple imprisonment for a term which may extend upto six months, or a fine which may extend to Rs 2,000, or both. Mistry was sacked as the chairman of Tata Sons last year in October after which he resigned from the board of the company. He then complained against Tata Sons to the tribunal, alleging "mismanagement" of the firm and "oppression" of minority shareholders, (WION with inputs from ANI)

Setback for Cyrus Mistry: Law tribunal rejects plea to defer Tata Sons EGM

Stock market turned cautious amid the budget announcements by finance minister Arun Jaitley with the key indices paring early gains as IT, pharma and power shares witnessed selling pressure.

The benchmark BSE Sensex opened higher at 27,669.08 and moved in a range of 27,725.16 and 27,590.10 points in morning trade.

At 11:45 hrs, the Sensex surrendered the gains to trade lower by 4.45 points, or 0.02 per cent, at 27,651.51 points dragged by losses in IT major TCS and Infosys.

At 12:12 pm BSE Sensex traded down 11.76 points at 27,644.&nbsp;

At 12:46 pm Sensex was down 25.65 points or 0.09 per cent at 27630.31.

At 1:03 pm Sensex was up 219.37 points or 0.79 per cent at 27,875.33 &nbsp;post the budget session.&nbsp;

The wider NSE Nifty had gained 21.90 points, or 0.26 per cent, at 8,583.20 in opening trade.

However, at 11:45 hrs, it fell by 6.65 points, or 0.08 per cent, at 8,554.65 points with 25 constituents led by TCS Tech Mahindra Infosys and Idea trading in the negative zone.

Investors were focusing on ongoing Budget announcements on the expectation of applying balm on frayed nerves.

Meanwhile, Nikkei Markit India Manufacturing Purchasing Managers&#39;Index (PMI) monthly survey rebounded from demonetisation downturn in January amid rising order books, production as well as buying levels and the expansion in the sector by increasing 50.4 in January from 49.6 in December.

Among the major gainers were, SBIN 2.73 per cent, ITC 1.76 per cent, HDFC 1.55 per cent, Adani Ports 1.35 per cent, Maruti 1.31 per cent and L&amp;T 1.28 per cent.

Notable losers were TCS 2.62 per cent, Dr Reddy 2.08 per cent, Lupin 2.07 per cent and Infosys 1.92 per cent.

Meanwhile, the foreign portfolio investors (FPIs) sold shares worth a net Rs 532.88 crore yesterday, as per provisional data released by the stock exchanges.

Overseas, most Asian markets were trading higher as markets continue to assess the latest policies from Trump, and his take on the US dollar. Markets in China, Taiwan, Malaysia and Vietnam remain closed for a holiday.

US stocks ended mostly lower yesterday, as declines in industrial, technology and financials shares outweighed gains in health-care and utilities sector.

(PTI)

The Sensex traded up 16.91 points at 27672.87 and the Nifty traded up 8.20 points at 8569.50 ahead of the Budget

Stock market turned cautious amid the budget announcements by finance minister Arun Jaitley with the key indices paring early gains as IT, pharma and power shares witnessed selling pressure. The benchmark BSE Sensex opened higher at 27,669.08 and moved in a range of 27,725.16 and 27,590.10 points in morning trade. At 11:45 hrs, the Sensex surrendered the gains to trade lower by 4.45 points, or 0.02 per cent, at 27,651.51 points dragged by losses in IT major TCS and Infosys. At 12:12 pm BSE Sensex traded down 11.76 points at 27,644. At 12:46 pm Sensex was down 25.65 points or 0.09 per cent at 27630.31. At 1:03 pm Sensex was up 219.37 points or 0.79 per cent at 27,875.33 post the budget session. The wider NSE Nifty had gained 21.90 points, or 0.26 per cent, at 8,583.20 in opening trade. However, at 11:45 hrs, it fell by 6.65 points, or 0.08 per cent, at 8,554.65 points with 25 constituents led by TCS Tech Mahindra Infosys and Idea trading in the negative zone. Investors were focusing on ongoing Budget announcements on the expectation of applying balm on frayed nerves. Meanwhile, Nikkei Markit India Manufacturing Purchasing Managers'Index (PMI) monthly survey rebounded from demonetisation downturn in January amid rising order books, production as well as buying levels and the expansion in the sector by increasing 50.4 in January from 49.6 in December. Among the major gainers were, SBIN 2.73 per cent, ITC 1.76 per cent, HDFC 1.55 per cent, Adani Ports 1.35 per cent, Maruti 1.31 per cent and L&T 1.28 per cent. Notable losers were TCS 2.62 per cent, Dr Reddy 2.08 per cent, Lupin 2.07 per cent and Infosys 1.92 per cent. Meanwhile, the foreign portfolio investors (FPIs) sold shares worth a net Rs 532.88 crore yesterday, as per provisional data released by the stock exchanges. Overseas, most Asian markets were trading higher as markets continue to assess the latest policies from Trump, and his take on the US dollar. Markets in China, Taiwan, Malaysia and Vietnam remain closed for a holiday. US stocks ended mostly lower yesterday, as declines in industrial, technology and financials shares outweighed gains in health-care and utilities sector. (PTI)

India Budget 2017: Sensex starts on a positive note

Tonight on WION's 8 PM special, we examine Arun Jaitley's fourth budget with Amarjeet Singh of KPMG, Vikrant Suri of Coinmen, Kamal Abrol of PWC, S D Majumdar & Piyush Goyal

Union Budget 2017-18: WION's Special Coverage

Sweeping aside objections raised by opposition parties, the government will present the Union Budget 2017-18 on February 1 but will refrain from making any announcements pertaining to poll-bound states.

The government has before the Election Commission vehemently defended its move to advance budget presentation by a month saying it had made clear its intention on this way back in September 2016 so as to help begin the investment cycle right from the first day of the new fiscal, April 1. &quot;Budget presentation on February 1 is a done deal, we will not make any specific announcement for poll-bound states,&quot; a top source said.

Opposition parties including Congress and TMC had approached the Election Commission against presentation of the budget just hours before the first of the five states goes to poll on February 4.

But the government stoutly defended the move. The source said that in view of the model code of conduct, the budget will not make any announces related to poll-bound states of Punjab, Uttar Pradesh, Uttarakhand, Goa and Manipur.

According to the scheme drawn, the first part of the budget session of Parliament will start on January 31 with President Pranab Mukherjee&#39;s address and tabling of the economic survey, which sets the scene for finance minister Arun Jaitley&#39;s fourth annual budget. The budget will be presented the next day. The cabinet had in September last year decided to scrap nearly century-long practice of having a separate railway budget and instead merged it with the general budget.

It had also decided to scrap a distinction between plan and non-plan expenditures.

(PTI)

Opposition parties had approached the Election Commission against presentation of the budget just hours before state elections on February 4

Sweeping aside objections raised by opposition parties, the government will present the Union Budget 2017-18 on February 1 but will refrain from making any announcements pertaining to poll-bound states. The government has before the Election Commission vehemently defended its move to advance budget presentation by a month saying it had made clear its intention on this way back in September 2016 so as to help begin the investment cycle right from the first day of the new fiscal, April 1. "Budget presentation on February 1 is a done deal, we will not make any specific announcement for poll-bound states," a top source said. Opposition parties including Congress and TMC had approached the Election Commission against presentation of the budget just hours before the first of the five states goes to poll on February 4. But the government stoutly defended the move. The source said that in view of the model code of conduct, the budget will not make any announces related to poll-bound states of Punjab, Uttar Pradesh, Uttarakhand, Goa and Manipur. According to the scheme drawn, the first part of the budget session of Parliament will start on January 31 with President Pranab Mukherjee's address and tabling of the economic survey, which sets the scene for finance minister Arun Jaitley's fourth annual budget. The budget will be presented the next day. The cabinet had in September last year decided to scrap nearly century-long practice of having a separate railway budget and instead merged it with the general budget. It had also decided to scrap a distinction between plan and non-plan expenditures. (PTI)

India: Government to present budget on February 1

With an aim to further strengthen the Digital India program, Union Minister for Finance and Corporate Affairs Arun Jaitley is expected to announce a slew of tech initiatives in the Union Budget 2017.

Union Budget 2017 (10 AM Exclusive)

Union Budget 2017: WION Exclusive

Union Budget 2017 (11 AM Exclusive)

Sitting Lok Sabha MP from Kerala, E Ahamed, died early on Wednesday leading to a confusion on whether the budget would take place today. Sources have just told WION that the obituary will take place before or after the presentation of the budget

Budget to be presented today

The Budget makes a push for Digital India. But what do startups have to say? Nischita Veerendra gets us the mood from Bengaluru. Here's more to this story.

Will Jaitley's Budget give a boost to startups?

On WION Wallet we take a look at how the Indian government is planning to leverage technology to bolster the Digital India program and much more

Union Budget 2017 special (WION Wallet)

There were signs of anxiety in the market as the Sensex today slumped 194 points ahead of the budget - to be presented on Wednesday - to a one-week low of 27,656 and the Nifty slipped below 8,600 after the Economic Survey projected a lower growth of 6.5 per cent for 2016-17.

The recently introduced immigration restrictions by US President Donald trump and the new legislation that aims to rework the H-1-B visa programme dealt a blow to IT stocks, which saw a big fall.

TCS, Wipro and Infosys dropped by upto 4.47 per cent, dragging down the BSE IT index by 2.96 per cent, followed by technology that tanked 2.49 per cent.

The Economic Survey for 2016-17, tabled in Parliament by Finance Minister Arun Jaitley today, underscored the need for more reforms. Its GDP growth forecast for this fiscal is lower than the 7.1 per cent put out by the Central Statistics Office earlier this month.

The Sensex closed down 193.60 points, or 0.70 per cent, at 27,655.96, it&#39;s lowest closing since January 24 when the figure was 27,375.58. It had lost 33 points in the previous session.

The broad-based NSE Nifty, which hit a low of 8,552.40 intra-day, managed to cut down losses and ended lower 71.45 points, or 0.83 per cent, at 8,561.30.

The risk-averse behaviour was on display as participants took cues from global stocks that remained on the backfoot following Trump&#39;s controversial crackdown on immigration.

&quot;The Economic Survey failed to impress investors who opted for keeping their commitments at a low ebb and wait for the the budget,&quot; said Manoj Choraria, a Delhi-based stock broker.

GAIL, Adani Ports, Sun Pharma, Tata Motors, Coal India, Lupin, Axis Bank and NTPC were among those that weighed.&nbsp;Sectoral indices such as oil and gas (1.64 per cent), PSU (1.39 per cent), healthcare (1.38 per cent), infrastructure (1.31) per cent and metal (1.01 per cent) all turned weak.

Selling activity also extended to the broader markets, with the BSE mid-cap falling 1.10 per cent and the small-cap 1.03 per cent.&nbsp;According to provisional figures, foreign investors bought shares worth Rs 607.36 crore yesterday.

There were a few that went up cushioning the fall, which include ITC, PowerGrid, Bajaj Auto, ONGC and HDFC Bank.&nbsp;In Asia, most markets were closed today for a public holiday. Japan&#39;s Nikkei ended lower by 1.69 per cent. 
European markets, however, were trading higher as major indices in France, Germany and the UK moved up.

(PTI)

TCS, Wipro and Infosys dropped by upto 4.47 per cent, dragging down the BSE IT index by 2.96 per cent

There were signs of anxiety in the market as the Sensex today slumped 194 points ahead of the budget - to be presented on Wednesday - to a one-week low of 27,656 and the Nifty slipped below 8,600 after the Economic Survey projected a lower growth of 6.5 per cent for 2016-17. The recently introduced immigration restrictions by US President Donald trump and the new legislation that aims to rework the H-1-B visa programme dealt a blow to IT stocks, which saw a big fall. TCS, Wipro and Infosys dropped by upto 4.47 per cent, dragging down the BSE IT index by 2.96 per cent, followed by technology that tanked 2.49 per cent. The Economic Survey for 2016-17, tabled in Parliament by Finance Minister Arun Jaitley today, underscored the need for more reforms. Its GDP growth forecast for this fiscal is lower than the 7.1 per cent put out by the Central Statistics Office earlier this month. The Sensex closed down 193.60 points, or 0.70 per cent, at 27,655.96, it's lowest closing since January 24 when the figure was 27,375.58. It had lost 33 points in the previous session. The broad-based NSE Nifty, which hit a low of 8,552.40 intra-day, managed to cut down losses and ended lower 71.45 points, or 0.83 per cent, at 8,561.30. The risk-averse behaviour was on display as participants took cues from global stocks that remained on the backfoot following Trump's controversial crackdown on immigration. "The Economic Survey failed to impress investors who opted for keeping their commitments at a low ebb and wait for the the budget," said Manoj Choraria, a Delhi-based stock broker. GAIL, Adani Ports, Sun Pharma, Tata Motors, Coal India, Lupin, Axis Bank and NTPC were among those that weighed. Sectoral indices such as oil and gas (1.64 per cent), PSU (1.39 per cent), healthcare (1.38 per cent), infrastructure (1.31) per cent and metal (1.01 per cent) all turned weak. Selling activity also extended to the broader markets, with the BSE mid-cap falling 1.10 per cent and the small-cap 1.03 per cent. According to provisional figures, foreign investors bought shares worth Rs 607.36 crore yesterday. There were a few that went up cushioning the fall, which include ITC, PowerGrid, Bajaj Auto, ONGC and HDFC Bank. In Asia, most markets were closed today for a public holiday. Japan's Nikkei ended lower by 1.69 per cent. European markets, however, were trading higher as major indices in France, Germany and the UK moved up. (PTI)

TCS, Infosys drag down Sensex at close

Air India, a government-owned carrier, recorded profits for the first time in nine years, according to India&#39;s Economic Survey announced Tuesday (January 31).

This is the first time since Air India merged with Indian Airlines has the stricken carrier found itself in the green.

This year&#39;s 319-page Economic Survey mentioned that the national airline registered a Rs 105 crore (roughly $15.5 million) operating profit in 2015-16.

Air India had suffered Rs 2,636 crore net loss the previous year. But this year, the total income has risen to Rs 20,526 (over $3 billion).

The profit will be a shot in the arm for the Indian government as it pumps in Rs 3,000 crore every year to lift the sagging fortunes of the airline.

It has also thumbed its nose at critics who want government-owned institutions to be divested.

Buoyed by the showing, the report said: &quot;Consider the civil aviation sector. Defying history, there is still the commitment to make the perennially unprofitable public sector airline &lsquo;world class&rsquo;.&quot;

It also said that privatisation was not the sole panacea to ailing firms owned by the government, saying that maximisation of profits cannot elcipse broader social good.

(WION)

This year's Economic Survey said the national carrier registered an operating profit of Rs 105 crore (roughly $15.5 million) in 2015-16

Air India, a government-owned carrier, recorded profits for the first time in nine years, according to India's Economic Survey announced Tuesday (January 31). This is the first time since Air India merged with Indian Airlines has the stricken carrier found itself in the green. This year's 319-page Economic Survey mentioned that the national airline registered a Rs 105 crore (roughly $15.5 million) operating profit in 2015-16. Air India had suffered Rs 2,636 crore net loss the previous year. But this year, the total income has risen to Rs 20,526 (over $3 billion). The profit will be a shot in the arm for the Indian government as it pumps in Rs 3,000 crore every year to lift the sagging fortunes of the airline. It has also thumbed its nose at critics who want government-owned institutions to be divested. Buoyed by the showing, the report said: "Consider the civil aviation sector. Defying history, there is still the commitment to make the perennially unprofitable public sector airline ‘world class’." It also said that privatisation was not the sole panacea to ailing firms owned by the government, saying that maximisation of profits cannot elcipse broader social good. (WION)

Air India records profit for first time in almost a decade

Shares of IT companies plunged as much as 9 per cent today amid concerns that the new bill in the US that aims to rework the H1-B visa programme will adversely impact the hiring plans of Indian technology firms.

Shares of TCS plunged by 5.46 per cent to touch an intra-day low of Rs 2,206.55 on BSE.&nbsp;Infosys lost 4.57 per cent to Rs 905 and Wipro went down by 4.11 per cent to Rs 445.55.

Tech Mahindra tumbled as much as 9.68 per cent to Rs 426 and HCL Technologies declined by 6.25 per cent to Rs 787.20.

The BSE IT index fell by 4.83 per cent to touch an intra-day low of 9401.85. It is currently trading at 9547.53.

According to market experts, US President Donald Trump plans to overhaul work-visa programmes that dampened investors&#39; sentiment.&nbsp;Trump is set to sign a new executive order aimed at overhauling work visa programmes like the H-1-B and L-1, a move that will adversely hit the lifeline of Indian tech firms and professionals in the US.

A legislation has been introduced in the US House of Representatives which among other things calls for more than doubling the minimum salary of H1-B visa holders to $130,000, making it difficult for firms to use the programme to replace American employees with foreign workers, including from India.

The H1B visa is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise in specialised fields. The technology companies depend on it to hire tens of thousands of employees each year.

(PTI)&nbsp;

Shares of TCS plunged by 5.46 per cent and Infosys lost 4.57 per cent amid Trump's plan to rework the H1-B visa programme

Shares of IT companies plunged as much as 9 per cent today amid concerns that the new bill in the US that aims to rework the H1-B visa programme will adversely impact the hiring plans of Indian technology firms. Shares of TCS plunged by 5.46 per cent to touch an intra-day low of Rs 2,206.55 on BSE. Infosys lost 4.57 per cent to Rs 905 and Wipro went down by 4.11 per cent to Rs 445.55. Tech Mahindra tumbled as much as 9.68 per cent to Rs 426 and HCL Technologies declined by 6.25 per cent to Rs 787.20. The BSE IT index fell by 4.83 per cent to touch an intra-day low of 9401.85. It is currently trading at 9547.53. According to market experts, US President Donald Trump plans to overhaul work-visa programmes that dampened investors' sentiment. Trump is set to sign a new executive order aimed at overhauling work visa programmes like the H-1-B and L-1, a move that will adversely hit the lifeline of Indian tech firms and professionals in the US. A legislation has been introduced in the US House of Representatives which among other things calls for more than doubling the minimum salary of H1-B visa holders to $130,000, making it difficult for firms to use the programme to replace American employees with foreign workers, including from India. The H1B visa is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise in specialised fields. The technology companies depend on it to hire tens of thousands of employees each year. (PTI)

IT stocks crash 9% over H1-B visa overhaul

India&#39;s economic growth has been pegged at 6.5 per cent for the current fiscal, down from 7.6 per cent recorded in the last financial year, but is expected to rebound in the range of 6.75-7.5 per cent in 2017-18.

The Economic Survey for 2016-17, tabled in the Parliament by finance minister Arun Jaitley underlined the need for more reforms.

Retail inflation is likely to be well below RBI&#39;s target of 5 per cent in the current fiscal as demonetisation would discourage any price headwind, the Economic Survey for 2016-17 said.&nbsp;The new inflation targeting approach by the Monetary Policy Committee (MPC) and gains from macro-economic stability will help India consolidate gains on price control, meaning prices will be less susceptible of individual whims and caprice of governments, the survey said.

The survey&#39;s GDP growth figure for the current fiscal is lower than 7.1 per cent the Central Statistics Office had forecast earlier this month.

The survey lists some of the challenges that might impede India&#39;s progress. These include ambivalence about property rights and the private sector, deficiencies in state capacity, especially in delivering essential services and inefficient redistribution.&nbsp;

The survey highlights difficulties in privatising public enterprises, even for firms where economists have made strong arguments that they should be in the private sector.

In this context, it pointed towards the need to further privatise civil aviation, banking and fertiliser sectors. The survey stated that the capacity of the state in delivering essential services such as health and education is weak due to low capacity, with high levels of corruption, clientelism, rules and red tape.

At the level of states, competitive populism is more in evidence than competitive service delivery, it added. Constraints to policy making due to strict adherence to rules and abundant caution in bureaucratic decision-making favours status quo, it cautioned.

According to the survey, redistribution by the government is far from efficient in targeting the poor. This is intrinsic to current programmes because spending is likely to be greatest in states with better institutions.

It noted that over the past two years, the government has made considerable progress towards reducing subsidies, especially related to petroleum products.&nbsp;Technology has been the main instrument for addressing the leakage problem and the pilots for direct benefit transfer in fertiliser represent a very important new direction in this regard, it said.

Noting that India has come a long way in terms of economic performance and reforms, the survey said there is still a journey ahead to achieve dynamism and social justice and completing this journey will require broader societal shifts in the underlying vision.

Highlights of the Economic Survey

* GDP growth for next fiscal pegged at 6.75-7.5 per cent

 
* Growth this fiscal to be 6.5 per cent.

 
* Prescribes cut in individual I-T rates, real estate stamp duties.

 
* Income Tax net could be widened gradually by encompassing all high income earners.

 
* Time table for cutting corporate tax should be accelerated.

 
* Tax administration could be improved to reduce discretion and improve accountability.

 
* Growth to return to normal as new currency comes in circulation.

 
* Demonetisation to affect growth rate by 0.25-0.5 per cent, but to have long-term benefits.

 
* GST, other structural reforms should take the trend growth rate to 8-10 per cent.

 
* Fiscal windfall likely from Pradhan Mantri Garib Kalyan Yojana, low oil price.

 
* Farm sector to grow at 4.1% this fiscal, up from 1.2% last year.

 
* Fiscal gains from GST will take time to realise.

 
* Demonetisation may affect supplies of certain agricultural products like sugar, milk, potatoes and onions.

 
* Growth rate of industrial sector to moderate at&nbsp;5.2% this fiscal, from 7.4% last fiscal.

 
* Efforts to collect taxes on disclosed and undisclosed wealth should not lead to tax harassment.

 
* Universal Basic Income Scheme is an alternative to plethora of state subsidies for poverty alleviation.

(PTI)

The Economic Survey for 2016-17, tabled in the Parliament by finance minister Arun Jaitley underlined the need for more reforms

India's economic growth has been pegged at 6.5 per cent for the current fiscal, down from 7.6 per cent recorded in the last financial year, but is expected to rebound in the range of 6.75-7.5 per cent in 2017-18. The Economic Survey for 2016-17, tabled in the Parliament by finance minister Arun Jaitley underlined the need for more reforms. Retail inflation is likely to be well below RBI's target of 5 per cent in the current fiscal as demonetisation would discourage any price headwind, the Economic Survey for 2016-17 said. The new inflation targeting approach by the Monetary Policy Committee (MPC) and gains from macro-economic stability will help India consolidate gains on price control, meaning prices will be less susceptible of individual whims and caprice of governments, the survey said. The survey's GDP growth figure for the current fiscal is lower than 7.1 per cent the Central Statistics Office had forecast earlier this month. The survey lists some of the challenges that might impede India's progress. These include ambivalence about property rights and the private sector, deficiencies in state capacity, especially in delivering essential services and inefficient redistribution. The survey highlights difficulties in privatising public enterprises, even for firms where economists have made strong arguments that they should be in the private sector. In this context, it pointed towards the need to further privatise civil aviation, banking and fertiliser sectors. The survey stated that the capacity of the state in delivering essential services such as health and education is weak due to low capacity, with high levels of corruption, clientelism, rules and red tape. At the level of states, competitive populism is more in evidence than competitive service delivery, it added. Constraints to policy making due to strict adherence to rules and abundant caution in bureaucratic decision-making favours status quo, it cautioned. According to the survey, redistribution by the government is far from efficient in targeting the poor. This is intrinsic to current programmes because spending is likely to be greatest in states with better institutions. It noted that over the past two years, the government has made considerable progress towards reducing subsidies, especially related to petroleum products. Technology has been the main instrument for addressing the leakage problem and the pilots for direct benefit transfer in fertiliser represent a very important new direction in this regard, it said. Noting that India has come a long way in terms of economic performance and reforms, the survey said there is still a journey ahead to achieve dynamism and social justice and completing this journey will require broader societal shifts in the underlying vision. Highlights of the Economic Survey * GDP growth for next fiscal pegged at 6.75-7.5 per cent * Growth this fiscal to be 6.5 per cent. * Prescribes cut in individual I-T rates, real estate stamp duties. * Income Tax net could be widened gradually by encompassing all high income earners. * Time table for cutting corporate tax should be accelerated. * Tax administration could be improved to reduce discretion and improve accountability. * Growth to return to normal as new currency comes in circulation. * Demonetisation to affect growth rate by 0.25-0.5 per cent, but to have long-term benefits. * GST, other structural reforms should take the trend growth rate to 8-10 per cent. * Fiscal windfall likely from Pradhan Mantri Garib Kalyan Yojana, low oil price. * Farm sector to grow at 4.1% this fiscal, up from 1.2% last year. * Fiscal gains from GST will take time to realise. * Demonetisation may affect supplies of certain agricultural products like sugar, milk, potatoes and onions. * Growth rate of industrial sector to moderate at 5.2% this fiscal, from 7.4% last fiscal. * Efforts to collect taxes on disclosed and undisclosed wealth should not lead to tax harassment. * Universal Basic Income Scheme is an alternative to plethora of state subsidies for poverty alleviation. (PTI)

India's GDP growth to be lower at 6.5% in FY17: Economic Survey

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