India&#39;s benchmark Sensex shot up 348 points to end at 32,182 on the back surge in oil &amp; gas, healthcare, FMCG and auto stocks

The broader National Stock Exchange(NSE Nifty) regained the 10k mark ending up 1.12 per cent to close at 10,096.40 - &nbsp;recording its biggest single-day gain since May 25. &nbsp;

Intra-day, the NSE had scaled a high 10,104.45.

The Sensex surge was its best single-session gain since July 10 when it jumped 355.01 points.

The Sensex was buoyed over the announcement of quarterly results by several big players including Tata Consultancy Services(TCS) and Reliance Industries(TCS).

TCS stocks gained about 2 per cent while Reliance Industries stocks climbed 4 per cent ahead of its quarterly results tomorrow.

The Sensex surge was its best single-session gain since July 10 when it jumped 355.01 points.

India's benchmark Sensex shot up 348 points to end at 32,182 on the back surge in oil & gas, healthcare, FMCG and auto stocks The broader National Stock Exchange(NSE Nifty) regained the 10k mark ending up 1.12 per cent to close at 10,096.40 - recording its biggest single-day gain since May 25. Intra-day, the NSE had scaled a high 10,104.45. The Sensex surge was its best single-session gain since July 10 when it jumped 355.01 points. The Sensex was buoyed over the announcement of quarterly results by several big players including Tata Consultancy Services(TCS) and Reliance Industries(TCS). TCS stocks gained about 2 per cent while Reliance Industries stocks climbed 4 per cent ahead of its quarterly results tomorrow.

Sensex, Nifty zoom ahead of results by TCS, Reliance Industries

Tata Consultancy Services denied Thursday that there will be layoffs after the shut down of its Lucknow operations.

&quot;There have been false rumours and reports being circulated in the media about the company&#39;s operations in Lucknow.TCS would like to clarify that it is only consolidating its UP operations in Noida and there will be no job loss as a consequence,&quot;&nbsp;a TCS spokesperson said in a statement.

&quot;TCS is working to ensure that employees get opportunities in Noida and other centres across India,&quot; the statement added.

According to reports, the employees at the Lucknow office of TCS claimed that their team leaders informed them the company is wrapping up its operations.

The reports added that around 2,000 people employed with the company in Lucknow were&nbsp;likely to be affected by the move.

State labour and employment minister Swami Prasad Maurya also assured&nbsp;employees that their interests would be protected.

Maurya said if necessary negotiations would be held to protect the interest of at least 2,000 employees.

Uttar Pradesh Mohsin Raza said if needed he was ready to speak to the TCS management and the employees to find a way out.

The TCS office in Lucknow has been in operation for the last 33 years.&nbsp;

The company is likely to shift most of its operations to Noida, reports had suggested.

According to ANI, employees of the company have urged the chief minister of Uttar Pradesh Yogi Adityanath for his intervention in the matter. They have also written to Prime Minister Narendra Modi and information and technology minister Ravi Shankar Prasad.

Industry body Nasscom had in May dismissed reports of mass layoffs in the Indian information technology sector. It also said that the sector needs to reinvent itself. &nbsp; &nbsp;

Employees at the TCS Lucknow office claimed they were informed that the company was shutting down operations and that 2000 people were likely to be affected by the move

Tata Consultancy Services denied Thursday that there will be layoffs after the shut down of its Lucknow operations. "There have been false rumours and reports being circulated in the media about the company's operations in Lucknow.TCS would like to clarify that it is only consolidating its UP operations in Noida and there will be no job loss as a consequence," a TCS spokesperson said in a statement. "TCS is working to ensure that employees get opportunities in Noida and other centres across India," the statement added. According to reports, the employees at the Lucknow office of TCS claimed that their team leaders informed them the company is wrapping up its operations. The reports added that around 2,000 people employed with the company in Lucknow were likely to be affected by the move. State labour and employment minister Swami Prasad Maurya also assured employees that their interests would be protected. Maurya said if necessary negotiations would be held to protect the interest of at least 2,000 employees. Uttar Pradesh Mohsin Raza said if needed he was ready to speak to the TCS management and the employees to find a way out. The TCS office in Lucknow has been in operation for the last 33 years. The company is likely to shift most of its operations to Noida, reports had suggested. According to ANI, employees of the company have urged the chief minister of Uttar Pradesh Yogi Adityanath for his intervention in the matter. They have also written to Prime Minister Narendra Modi and information and technology minister Ravi Shankar Prasad. Industry body Nasscom had in May dismissed reports of mass layoffs in the Indian information technology sector. It also said that the sector needs to reinvent itself.

Tata Consultancy Services denies reports of job losses due to layoffs

The US has accused top Indian IT firms TCS and Infosys of unfairly cornering the lion&#39;s share of H-1B visas by putting extra tickets in the lottery system, which the Trump administration wants to replace with a more merit-based immigration policy.

At a White House briefing last week, an official in the Trump administration said a small number of giant outsourcing firms flood the system with applications which naturally ups their chances of success in the lottery draw.

&quot;You may know their names well, but like the top recipients of the H-1B visa are companies like Tata, Infosys, Cognizant -- they will apply for a very large number of visas, more than they get, by putting extra tickets in the lottery raffle, if you will, and then they&#39;ll get the lion&#39;s share of visas,&quot; the senior official said, according to transcript of the briefing posted on White House website.

Responding to a follow-up on why Indian companies were singled out for a mention, the White House response said Tata Consultancy Services, Infosys and Cognizant were the top three recipients of H-1B visas.

&quot;And those three companies are companies that have an average wage for H-1B visas between USD 60,000 and USD 65,000 (a year). By contrast, the median Silicon Valley software engineer&#39;s wage is probably around USD 150,000,&quot; the official said.

He said contracting firms that are not skills employers, who oftentimes use workers for entry-level positions, capture the lion&#39;s share of H-1B visas. &quot;And that&#39;s all public record.&quot;

All the three Indian firms refused to comment on the US administration comment.

The official said H-1B visas presently were awarded through random lottery with about 80 per cent of H-1B workers being paid less than the median wage in their fields.

&quot;Only about 5 to 6 per cent, depending on the year, of H-1B workers command the highest wage tier recognised by the Department of Labour, there being four wage tiers. And the highest wage tier, for instance, in 2015, was only 5 per cent of H1B workers,&quot; he said.

He said workers are often brought in well below market rates to replace American workers, again, sort of violating the principle of the programme, which is supposed to be a means for bringing in skilled labour.

&quot;Instead you&#39;re bringing in a lot of times workers who are actually less skilled and lower paid than the workers that they&#39;re replacing,&quot; he said.

So if the current system that awards visas randomly without regard for skill or wage is changed to a skills-based awarding, it would make it extremely difficult to use the visa to replace or undercut American workers, he said.

&quot;Because you&#39;re not bringing in workers at beneath the market wage. And so it&#39;s a very elegant way of solving very systemic problems in the H-1B guest worker visa,&quot; he said.&nbsp;

(PTI)

An official in the Trump administration said they unfairly corner the lion's share of visas by putting extra tickets in the lottery system

The US has accused top Indian IT firms TCS and Infosys of unfairly cornering the lion's share of H-1B visas by putting extra tickets in the lottery system, which the Trump administration wants to replace with a more merit-based immigration policy. At a White House briefing last week, an official in the Trump administration said a small number of giant outsourcing firms flood the system with applications which naturally ups their chances of success in the lottery draw. "You may know their names well, but like the top recipients of the H-1B visa are companies like Tata, Infosys, Cognizant -- they will apply for a very large number of visas, more than they get, by putting extra tickets in the lottery raffle, if you will, and then they'll get the lion's share of visas," the senior official said, according to transcript of the briefing posted on White House website. Responding to a follow-up on why Indian companies were singled out for a mention, the White House response said Tata Consultancy Services, Infosys and Cognizant were the top three recipients of H-1B visas. "And those three companies are companies that have an average wage for H-1B visas between USD 60,000 and USD 65,000 (a year). By contrast, the median Silicon Valley software engineer's wage is probably around USD 150,000," the official said. He said contracting firms that are not skills employers, who oftentimes use workers for entry-level positions, capture the lion's share of H-1B visas. "And that's all public record." All the three Indian firms refused to comment on the US administration comment. The official said H-1B visas presently were awarded through random lottery with about 80 per cent of H-1B workers being paid less than the median wage in their fields. "Only about 5 to 6 per cent, depending on the year, of H-1B workers command the highest wage tier recognised by the Department of Labour, there being four wage tiers. And the highest wage tier, for instance, in 2015, was only 5 per cent of H1B workers," he said. He said workers are often brought in well below market rates to replace American workers, again, sort of violating the principle of the programme, which is supposed to be a means for bringing in skilled labour. "Instead you're bringing in a lot of times workers who are actually less skilled and lower paid than the workers that they're replacing," he said. So if the current system that awards visas randomly without regard for skill or wage is changed to a skills-based awarding, it would make it extremely difficult to use the visa to replace or undercut American workers, he said. "Because you're not bringing in workers at beneath the market wage. And so it's a very elegant way of solving very systemic problems in the H-1B guest worker visa," he said. (PTI)

US accuses top Indian IT firms TCS, Infosys of violating H-1B visa norms

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

Tata Consultancy Services Ltd (TCS) shareholders voted to remove Cyrus Mistry, the ousted chairman of Tata Sons[TATAS.UL], as a director, according to the results of an extraordinary general meeting on Tuesday.

About 93 percent of TCS shareholder who cast their vote were in favour of removing Mistry, TCS said in a regulatory filing.&nbsp;

His ouster comes as no surprise given Tata Sons majority stake in the company, about 73 percent as of September end, according to Thomson Reuters data. TCS, India`s biggest technology services firm by sales, contributes the bulk of the group`s revenue and profit.

About 43 percent of TCS`s institutional holders who voted were against the removal of Mistry, according to the filing.

Interestingly, 78 percent of voting shareholders who were not promoters or institutional holders were against Mistry`s ouster.

In a bitter boardroom coup in October, Mistry was ousted as the chairman of Tata Sons, the holding firm for the $100 billion steel-to-software conglomerate, and group patriarch Ratan Tata returned to the helm temporarily. A public power struggle has since ensued between the two sides.

Mistry, however, still sits on the boards of several group companies. Tata Sons has called shareholder meetings at these companies over the next few days to vote on his removal.

Indian Hotels Co Ltd , Tata Steel and Tata Motors will hold their shareholder meetings next week.

&quot;The fight is a matter of principle rather than facing the foregone outcome (of this meeting),&quot; Mistry said ahead of the TCS shareholder meet in an indication that he had expected to be ousted given Tata Sons` majority shareholding in TCS.

&quot;The very future of TCS hinges on good governance and ethical practices. In the past several weeks, we have seen good governance being thrown to the wind in every sense of the term, replaced by whims, fancies and personal agenda,&quot; he said.

Since his ouster from Tata Sons, Mistry has attacked the group`s corporate governance standards several times, saying that his efforts to establish stronger guidelines contributed to his removal. 
 
&quot;Whatever be the decibel level of the voice that would drown your vote, I call on you to vote with your conscience and send a signal that catalyses a larger discussion on governance reforms,&quot; Mistry said. 
 
(Reuters)

About 93 percent of TCS shareholder who cast their vote were in favour of removing Mistry, TCS said

Tata Consultancy Services Ltd (TCS) shareholders voted to remove Cyrus Mistry, the ousted chairman of Tata Sons[TATAS.UL], as a director, according to the results of an extraordinary general meeting on Tuesday. About 93 percent of TCS shareholder who cast their vote were in favour of removing Mistry, TCS said in a regulatory filing. His ouster comes as no surprise given Tata Sons majority stake in the company, about 73 percent as of September end, according to Thomson Reuters data. TCS, India`s biggest technology services firm by sales, contributes the bulk of the group`s revenue and profit. About 43 percent of TCS`s institutional holders who voted were against the removal of Mistry, according to the filing. Interestingly, 78 percent of voting shareholders who were not promoters or institutional holders were against Mistry`s ouster. In a bitter boardroom coup in October, Mistry was ousted as the chairman of Tata Sons, the holding firm for the $100 billion steel-to-software conglomerate, and group patriarch Ratan Tata returned to the helm temporarily. A public power struggle has since ensued between the two sides. Mistry, however, still sits on the boards of several group companies. Tata Sons has called shareholder meetings at these companies over the next few days to vote on his removal. Indian Hotels Co Ltd , Tata Steel and Tata Motors will hold their shareholder meetings next week. "The fight is a matter of principle rather than facing the foregone outcome (of this meeting)," Mistry said ahead of the TCS shareholder meet in an indication that he had expected to be ousted given Tata Sons` majority shareholding in TCS. "The very future of TCS hinges on good governance and ethical practices. In the past several weeks, we have seen good governance being thrown to the wind in every sense of the term, replaced by whims, fancies and personal agenda," he said. Since his ouster from Tata Sons, Mistry has attacked the group`s corporate governance standards several times, saying that his efforts to establish stronger guidelines contributed to his removal. "Whatever be the decibel level of the voice that would drown your vote, I call on you to vote with your conscience and send a signal that catalyses a larger discussion on governance reforms," Mistry said. (Reuters)

Cyrus Mistry ousted as TCS director after shareholders meeting

Tata Group&#39;s hospitality arm Indian Hotels has called an extraordinary general meeting of shareholders to seek removal of ousted chairman Cyrus Mistry as director of the company.

&quot;A requisition is received from Tata Sons, a shareholder of Indian Hotels Company Ltd, holding 28.01 per cent of the paid-up equity share capital of the company to convene an extra-ordinary general meeting of the shareholders of the company... To pass the resolution for removal of C P Mistry as director of the company,&quot; the hospitality major said in a BSE filing.

Earlier in the day, Tata Sons appointed Ishaat Hussain as the Chairman of the group&#39;s hugely successful IT firm TCS in place of Cyrus Mistry.

Last week, independent directors of Indian Hotels Co Ltd (IHCL) unanimously supported his leadership and continuance as chairman of the company.

Just as independent directors of the firm, including banker Deepak Parekh and Nadir Godrej, met ahead of a scheduled board meeting, Tata security personnel roughed up journalists and lensmen gathered outside Bombay House to report the meetings.

After ousting Mistry from Tata Sons, the holding company of 100-odd firms with India&#39;s largest conglomerate, the promoter Tata Trust is looking at removing him from the operating companies as well.

The other independent directors of IHCL include Gautam Banerjee (of Blackstone Group), Keki Dadiseth (ex-HUL MD), Vibha Rishi Paul (former executive director, brand and human capital, Max India) and Ireena Vittal (former partner with McKinsey &amp; Co).

Besides Mistry, his elder brother Shapoor Mistry is a director on the board of IHCL, as also his confidant and CEO Rakesh K Sarna.

Ratan Tata-led interim management of Tata Sons is seeking to oust Mistry from his positions in the operating group firms, including IHCL and Tata Motors.

(PTI)

Earlier in the day, Tata Sons appointed Ishaat Hussain as the Chairman of the group's hugely successful IT firm TCS in place of Cyrus Mistry

Tata Group's hospitality arm Indian Hotels has called an extraordinary general meeting of shareholders to seek removal of ousted chairman Cyrus Mistry as director of the company. "A requisition is received from Tata Sons, a shareholder of Indian Hotels Company Ltd, holding 28.01 per cent of the paid-up equity share capital of the company to convene an extra-ordinary general meeting of the shareholders of the company... To pass the resolution for removal of C P Mistry as director of the company," the hospitality major said in a BSE filing. Earlier in the day, Tata Sons appointed Ishaat Hussain as the Chairman of the group's hugely successful IT firm TCS in place of Cyrus Mistry. Last week, independent directors of Indian Hotels Co Ltd (IHCL) unanimously supported his leadership and continuance as chairman of the company. Just as independent directors of the firm, including banker Deepak Parekh and Nadir Godrej, met ahead of a scheduled board meeting, Tata security personnel roughed up journalists and lensmen gathered outside Bombay House to report the meetings. After ousting Mistry from Tata Sons, the holding company of 100-odd firms with India's largest conglomerate, the promoter Tata Trust is looking at removing him from the operating companies as well. The other independent directors of IHCL include Gautam Banerjee (of Blackstone Group), Keki Dadiseth (ex-HUL MD), Vibha Rishi Paul (former executive director, brand and human capital, Max India) and Ireena Vittal (former partner with McKinsey & Co). Besides Mistry, his elder brother Shapoor Mistry is a director on the board of IHCL, as also his confidant and CEO Rakesh K Sarna. Ratan Tata-led interim management of Tata Sons is seeking to oust Mistry from his positions in the operating group firms, including IHCL and Tata Motors. (PTI)

Tata Group's Indian Hotels seeks Mistry's removal as director

India&#39;s Number 1 software services firm, Tata Consultancy Services (TCS), a majority-owned unit of Tata Sons, said on Thursday it received a letter from Tata Sons nominating Ishaat Hussain as interim chair of TCS in place of Cyrus Mistry.

Last month, Mistry was ousted as chairman of Tata Sons in a surprise move&nbsp;and was replaced by Ratan Tata as interim chair. A similar move to unseat Mistry from TCS, the crown jewel in the Tata conglomerate portfolio, was anticipated given the bitter war of words that has erupted between the two sides following Mistry&#39;s ouster.

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<h5>Hussain, a director of several Tata companies, including Tata Steel and air conditioning and engineering arm Voltas Ltd, currently serves as chairman of Voltas and satellite television provider Tata Sky</h5>
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With Tata Sons controlling an over 70 per cent stake in TCS, lawyers had noted that removing Mistry as chair of the software and services company, would be a much easier task than removing his as chair of many other ventures that Tata Sons do not own a majority stake within.

&quot;Mistry has ceased to be the Chairman of the Board of directors of the company, and Hussain is the new Chairman of the company,&quot; TCS said in a securities filing, adding Hussain will remain TCS chairman until a permanent new replacement is named.

Meanwhile, Tata Sons has called for an extraordinary general meeting of shareholders to consider a resolution for the&nbsp;removal of Mistry as TCS director.

Hussain, a director of several Tata companies, including Tata Steel and air conditioning and engineering arm Voltas Ltd, currently serves as chairman of Voltas and satellite television provider Tata Sky.

Mistry&#39;s ouster has triggered a public spat between him and Tata Sons, which has also pushed some of Mistry&#39;s closest aides out of the group.

Mistry, whose family controls an 18.41 per cent stake in Tata Sons, continues to be the chair of some of the key listed group companies such as Indian Hotels, Tata Motors and Tata Steel.

Tata Sons owned a 73.26 per cent stake in TCS, as of September 30, according to exchange data. Shares of Tata Consultancy Services are down some 11 per cent this year up to Wednesday&#39;s close.

(Reuters)

TCS said it received a letter from Tata Sons Thursday nominating Ishaat Hussain as interim chair

India's Number 1 software services firm, Tata Consultancy Services (TCS), a majority-owned unit of Tata Sons, said on Thursday it received a letter from Tata Sons nominating Ishaat Hussain as interim chair of TCS in place of Cyrus Mistry. Last month, Mistry was ousted as chairman of Tata Sons in a surprise move and was replaced by Ratan Tata as interim chair. A similar move to unseat Mistry from TCS, the crown jewel in the Tata conglomerate portfolio, was anticipated given the bitter war of words that has erupted between the two sides following Mistry's ouster. Hussain, a director of several Tata companies, including Tata Steel and air conditioning and engineering arm Voltas Ltd, currently serves as chairman of Voltas and satellite television provider Tata Sky × With Tata Sons controlling an over 70 per cent stake in TCS, lawyers had noted that removing Mistry as chair of the software and services company, would be a much easier task than removing his as chair of many other ventures that Tata Sons do not own a majority stake within. "Mistry has ceased to be the Chairman of the Board of directors of the company, and Hussain is the new Chairman of the company," TCS said in a securities filing, adding Hussain will remain TCS chairman until a permanent new replacement is named. Meanwhile, Tata Sons has called for an extraordinary general meeting of shareholders to consider a resolution for the removal of Mistry as TCS director. Hussain, a director of several Tata companies, including Tata Steel and air conditioning and engineering arm Voltas Ltd, currently serves as chairman of Voltas and satellite television provider Tata Sky. Mistry's ouster has triggered a public spat between him and Tata Sons, which has also pushed some of Mistry's closest aides out of the group. Mistry, whose family controls an 18.41 per cent stake in Tata Sons, continues to be the chair of some of the key listed group companies such as Indian Hotels, Tata Motors and Tata Steel. Tata Sons owned a 73.26 per cent stake in TCS, as of September 30, according to exchange data. Shares of Tata Consultancy Services are down some 11 per cent this year up to Wednesday's close. (Reuters)

Tata removes Mistry as TCS chair, Hussain interim chairman

One of the largest Indian information technology companies, Tata Consultancy Services (TCS), has become the third conglomerate to invest large cash holdings in government bonds, a trend that could boost the young debt market but also stir volatility. 
 
TCS ploughed $3 billion into the market from January to March, its annual balance sheet showed last month, shifting funds that totalled 80 per cent of its surplus cash position. Previously the company had largely invested in mutual funds. 
 
TCS is the third company to have meaningful investment in government securities after Reliance Industries and construction firm Larsen &amp; Toubro, which traders say, is diversifying a $665-billion market dominated by banks and could portend a new investment trend for the country&#39;s conglomerates. 
 
&quot;I expect more cash-rich companies to invest in government bonds as these are more liquid and carry a much better credit risk,&quot; said Anindya Das Gupta, head of local markets trading at Barclays in India. 
 
However, this trend could create new risks, namely the volatility that a conglomerate selling a large amount of government bonds at once could create. 
 
When contacted by Reuters, TCS declined comment. 
 
While many banks have larger holdings, the Reserve Bank of India (RBI) regulates both banks and the bond market and thus can ensure that banks sell their holdings in a way that does not disrupt the market. The central bank has no sway over conglomerates as it does not regulate them. 
 
The RBI is happy for the investor base in government bonds to diversify, a senior policymaker said, and will monitor the market for any instances of manipulation or volatility tied to these investments. 
 
&quot;There is nothing as of now which raises any alarm from such large purchases but we will monitor these entities closely as they are not 
the regular investors in this market,&quot; said the policymaker, who declined to be identified as he is not authorised to speak to the media. 
 
Indian companies could become bigger players in the government securities market as they confront the problem of what to do with growing cash stockpiles. 
 
The country&#39;s top six cash-rich companies have amassed around 1.7 trillion rupees ($25.5 billion) worth of cash holdings, according to Reuters calculations, at a time when private capital spending is weak and bad loans are on the rise. 
 
As with TCS, most companies put their money in mutual funds, corporate bonds and bank deposits, which are losing their appeal versus government bonds in terms of both returns and safety. 
 
Investing via mutual funds entails an average fee of about 100 basis points of assets under management, according to debt fund 
managers and bankers. 
 
One-year bank deposits, at the country&#39;s largest lender State Bank of India which holds the largest amount of corporate deposits, yields 7.25-7.50 percent compared with nearly 7.5 percent for benchmark 10-year governments bonds. 
 
Das Gupta of Barclays said the narrower spread between bank deposits and 10-year bonds could be one reason companies buy &quot;liquid and safe&quot; government bonds. 
 
&quot;On a risk-adjusted basis, the total return from a sovereign security has been much better than any other asset class like fixed deposits, mutual funds,&quot; said Ashish Vaidya, executive director and head of trading at DBS Bank in Mumbai. 
 
Government bonds have rallied in the past year as the RBI has cut interest rates by 150 basis points to a five-year low of 6.50 per cent. 
 
Further gains, however, may now be capped given that the RBI is expected to cut the repo rate only once more this year and inflationary risks have risen. 
 
Reliance Industries, India&#39;s biggest energy firm, has outstanding government bond investments worth 79.21 billion rupees ($1.19 billion) as of March 2015, according to its 2014/15 annual report. 
 
Larsen &amp; Toubro held 14.7 billion rupees ($220 million) of government bonds as of March 2015. It has yet to publish its annual report for 2015/16. 
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Buying of the bonds by companies -- which was earlier dominated by banks -- will diversify $665 bn govt debt market

One of the largest Indian information technology companies, Tata Consultancy Services (TCS), has become the third conglomerate to invest large cash holdings in government bonds, a trend that could boost the young debt market but also stir volatility. TCS ploughed $3 billion into the market from January to March, its annual balance sheet showed last month, shifting funds that totalled 80 per cent of its surplus cash position. Previously the company had largely invested in mutual funds. TCS is the third company to have meaningful investment in government securities after Reliance Industries and construction firm Larsen & Toubro, which traders say, is diversifying a $665-billion market dominated by banks and could portend a new investment trend for the country's conglomerates. "I expect more cash-rich companies to invest in government bonds as these are more liquid and carry a much better credit risk," said Anindya Das Gupta, head of local markets trading at Barclays in India. However, this trend could create new risks, namely the volatility that a conglomerate selling a large amount of government bonds at once could create. When contacted by Reuters, TCS declined comment. While many banks have larger holdings, the Reserve Bank of India (RBI) regulates both banks and the bond market and thus can ensure that banks sell their holdings in a way that does not disrupt the market. The central bank has no sway over conglomerates as it does not regulate them. The RBI is happy for the investor base in government bonds to diversify, a senior policymaker said, and will monitor the market for any instances of manipulation or volatility tied to these investments. "There is nothing as of now which raises any alarm from such large purchases but we will monitor these entities closely as they are not the regular investors in this market," said the policymaker, who declined to be identified as he is not authorised to speak to the media. Indian companies could become bigger players in the government securities market as they confront the problem of what to do with growing cash stockpiles. The country's top six cash-rich companies have amassed around 1.7 trillion rupees ($25.5 billion) worth of cash holdings, according to Reuters calculations, at a time when private capital spending is weak and bad loans are on the rise. As with TCS, most companies put their money in mutual funds, corporate bonds and bank deposits, which are losing their appeal versus government bonds in terms of both returns and safety. Investing via mutual funds entails an average fee of about 100 basis points of assets under management, according to debt fund managers and bankers. One-year bank deposits, at the country's largest lender State Bank of India which holds the largest amount of corporate deposits, yields 7.25-7.50 percent compared with nearly 7.5 percent for benchmark 10-year governments bonds. Das Gupta of Barclays said the narrower spread between bank deposits and 10-year bonds could be one reason companies buy "liquid and safe" government bonds. "On a risk-adjusted basis, the total return from a sovereign security has been much better than any other asset class like fixed deposits, mutual funds," said Ashish Vaidya, executive director and head of trading at DBS Bank in Mumbai. Government bonds have rallied in the past year as the RBI has cut interest rates by 150 basis points to a five-year low of 6.50 per cent. Further gains, however, may now be capped given that the RBI is expected to cut the repo rate only once more this year and inflationary risks have risen. Reliance Industries, India's biggest energy firm, has outstanding government bond investments worth 79.21 billion rupees ($1.19 billion) as of March 2015, according to its 2014/15 annual report. Larsen & Toubro held 14.7 billion rupees ($220 million) of government bonds as of March 2015. It has yet to publish its annual report for 2015/16.

India's cash-rich firms may deepen govt bond market but spur volatility

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