India : Nifty ends below 8550, Sensex falls 106 pts; Infosys, TCS drag
The Finance Ministry is likely to soon clear the first round of capital infusion in public sector banks that has been slated for the current financial year.The proposal for capital infusion is expected to get approval from Finance Minister Arun Jaitley shortly, sources said, adding that the first tranche is likely to be less than Rs 20,000 crore.
After the fourth quarter results, each bank made a detailed request for fresh fund infusion taking into account issues pertaining to non-performing assets (NPAs) or bad loans and growth projections. Based on the suggestions, the Department of Financial Services finalised the first tranche of fund infusion, sources said.
IT industry body Nasscom today dispelled fears about the possible damaging prospects of the new US immigration Bill which proposes to restrict issuance of H1B visas to Indian companies.
“Such visas will not be any showstopper in this era of technology,” Chairman of Nasscom CP Gurnani told.
He said in this age of technology, companies would use the tool to get products and services delivered.
“The companies and the US Senate can be at odds with each other. The US corporations realise that 70 percent of their work were being outsourced from outside,” he said on the sidelines of Nasscom Product Conclave.
WPI inflation is expected to rise and average around 0.6 percent this year, while the pace of increase will remain slow amid weak demand conditions, says a Nomura report.
According to the Japanese financial services major, the year-on-year WPI inflation is expected to rise on waning base effects and average 0.6 percent in 2016 from (-)2.7 percent in 2015.
Wholesale Price Index-based (WPI-based) inflation accelerated for the third straight month in June hitting 1.62 percent on costlier food and manufactured items.
Infosys has relaunched its employee stock option plan (ESOP) for junior to middle level management staff as it looks to rein in rising attrition that stood at 21 per cent in the April-June 2016 quarter.
However, the company is not “unduly concerned” about the jump in attrition, which read 17.3 per cent in the March quarter and 19.2 per cent in the year-ago period.
“Today, we relaunched our ESOP programme after a gap of 10-years plus, after about 13 years. We are rewarding about 7,500 of our employees from junior to middle level management with restricted stock options and we will extend it to middle management to senior leaders and title holders subsequently,” Infosys Chief Operating Officer U B Pravin Rao said.
He added that the company continues to focus on reskilling employees and has also revamped its leadership development programmes.
ESOPs allow employees to own equity in the company, which is seen as a morale booster for them.