Share Market highlights: Sensex, Nifty see biggest ever 2-day gain; Bajaj Finance, L&T soar

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Updated:Sep 23, 2019 3:43:21 pm

Share Market highlights: The Sensex and Nifty extended gains on Monday morning, recording their biggest 2-day gain ever after corporate tax booster and GST rate cuts lifted sentiments.

The Sensex ended 1,075 points up to 39,090  while the Nifty was trading above the 11,600-mark.

Share Market highlights: The Sensex and Nifty extended gains on Monday morning, recording their biggest 2-day gain ever after corporate tax booster and GST rate cuts lifted sentiments. The Sensex ended 1,075 points up to 39,090  while the Nifty was trading above the 11,600-mark at 3.30 pm. In two sessions, Sensex has jumped over 3,300 points, while the Nifty has gained more than 1,000 points. L&T, ITC, IndusInd Bank, M&M were the biggest gainers in Sensex, jumping up to 8%. Infosys, Tech Mahindra were among the only losers in the index. Asian shares started higher on Monday on hopes of an interim Sino-US tariff deal after the two countries described their talks as “productive” and “constructive”, while oil gained more than 1% as Middle East tensions remained elevated. Australian shares added 0.4% while New Zealand’s benchmark index was 0.2% higher. South Korea’s Kospi was a touch weaker after disappointing trade data, while Japan’s Nikkei was closed for a holiday, Reuters reported.  We bring to you live updates.

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Highlights

    15:43 (IST)23 Sep 2019
    BSE live: Sensex, Nifty see biggest ever 2-day gain; Bajaj Finance, L&T soar

    The Sensex and Nifty extended gains on Monday morning, recording their biggest 2-day gain ever after corporate tax booster and GST rate cuts lifted sentiments. The Sensex ended 1,075 points up to 39,090  while the Nifty was trading above the 11,600-mark at 3.30 pm. In two sessions, Sensex has jumped over 3,300 points, while the Nifty has gained more than 1,000 points. A look at LIVE Sensex heatmap.

    15:25 (IST)23 Sep 2019
    India on road to be engine of global trade, says report; these 2 factors boosted its trade potential

    The business reforms over the last few years along with large population and robust growth make India the upcoming future giant in the global trade, a report said. The potential for the individual markets to increase their trade growth is particularly high in Asia with nine of the Trade20 economies located in this region, Standard Chartered said in a report. The markets in the Asia-Pacific including India, China, Sri Lanka and ASEAN dominate the group. The reports adds that the decisions taken in recent years have improved India’s trade readiness potential along with the ease of doing business. These have brought India nearer to the global best practices and boosted its trade growth potential.

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    14:10 (IST)23 Sep 2019
    Zomato Gold brought new business, bigger orders for restaurants; hotels still not convinced

    While thousands of restaurants remain logged out of Zomato Gold as they claim unsustainability, the food aggregator’s paid subscription program has actually brought more business to hotels and cafes. “60% of the Gold partners agree that there has been an increase in new customers coming in because of Zomato Gold,” management consultancy firm RedSeer said in a recent statement. However, it is not just about new customers but also about bigger order quantities and bill volumes. According to the same report, “Gold partners have witnessed about 35% bill growth,” the report added.

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    13:48 (IST)23 Sep 2019
    Germany's engineering sector sees 2% output decline in 2019, 2020

    Production in Germany's engineering sector will decline by 2% both this year and in 2020, lobby group VDMA said on Monday, citing trade conflicts and uncertainties linked to Britian's planned exit from the European Union. "A quick and sustainable improvement is not in sight," VDMA said. The association added that German companies face a worsening outlook in the United States, whose economy is starting to feel the impact of the trade conflict with China.

    13:13 (IST)23 Sep 2019
    BSE live: Sensex, Nifty see biggest 2-day gain ever after tax booster; ITC, L&T soar

    The Sensex and Nifty extended gains on Monday morning, recording their biggest 2-day gain ever after corporate tax booster and GST rate cuts lifted sentiments. The Sensex was up 1,343 points to 39,357 while the Nifty was trading above the 11,550-mark at 1.10 pm. In two sessions, Sensex has jumped over 3,300 points, while the Nifty has gained more than 1,000 points. L&T, ITC, IndusInd Bank, M&M were the biggest gainers in Sensex, jumping up to 8%. A look at LIVE Sensex heatmap.

    12:56 (IST)23 Sep 2019
    Now MSMEs can get loans from SBI with interest rate linked to RBI’s repo rate

    Following the Reserve Bank of India’s (RBI) decision earlier this month asking banks to link new floating-rate loans to retail and MSMEs to an external benchmark from October 1 onwards in order to enhance transmission of policy rate cuts to borrowers, the largest lender State Bank of India (SBI) has announced adopting the Repo Rate as the external benchmark for all floating rate loans for MSME. The bank will benchmark the Repo Rate for floating-rate loans to housing and retail loans as well. The decision announced on Monday will be effective from October 1, 2019, as per the RBI’s circular dated September 4, 2019. 

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    12:23 (IST)23 Sep 2019
    Corporate tax rate cut may not help much to boost economy; Macquarie tells what govt could have done

    Even as the government cut the corporate tax rates to boost the economy, a global investment bank said that the reform may not help much to beat the ongoing slowdown. The government should have instead slashed the income taxes and goods and services tax (GST) to revive the slowing growth, Viktor Shvets, head of Asian strategy at Macquarie Commodities and Global Markets, told CNBC TV18. The regulatory clarity and corruption are more important variables compared and there is ample evidence to show the tax rate cuts don’t help much, he added. However, tax rate cuts would certainly help the Indian economy to prevent another cycle of earnings downgrades since it has recorded 8 to 9 years of the same, he also said. The rate cuts could also stabilise the PE multiples, he noted. Now, India would be able to defend its PE estimates and earnings growth, he noted.

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    11:43 (IST)23 Sep 2019
    Sensex headed for long bull run in next one year, may touch 45,000; Nifty may top 12,400 after tax cuts

    Even as the headline indices Sensex and Nifty extend gains following Narendra Modi-led government’s Corporate tax booster, global brokerages say that the barometers could touch new highs in the coming months. Sensex and Nifty registered their biggest one-day gain in over a decade after FM Nirmala Sitharaman announced a slew of big-bang reforms to revive the ailing economy on Friday. Taking stock of the development, global brokerage firm CLSA said that the lowering of corporate tax implies a 6-7% EPS upgrade for Nifty. The main winners would be capex plays like ICICI Bank, Axis Bank, SBI and L&T. According to Rusmik Oza of Kotak Securities,  any company paying 33% tax rate will see its earning go up by 12%.

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    11:31 (IST)23 Sep 2019
    BSE live: Sensex soars 1,200 points, Nifty above 11,500; ITC, HDFC Bank top gainers

    The headline indices Sensex and Nifty extended gains on Monday morning, after FM's corporate tax booster and GST rate cuts lifted sentiments. The Sensex was up 1,199 points to 39,209 while the Nifty was trading above the 11,500-mark at 11.30 am. L&T, ITC, IndusInd Bank, M&M were the biggest gainers in Sensex, jumping up to 8%. Infosys, Tech Mahindra were among the only losers in the index. A look at LIVE Sensex heatmap.

    11:20 (IST)23 Sep 2019
    SBI announces new benchmark for home loans, effective October 1

    Effective October 1, for those looking to take home loans from the country’s largest lender State Bank of India (SBI), there is a new home loan regime in place. SBI has decided to adopt Repo Rate as the external benchmark for all floating rate loans for MSME, housing and retail loans effective October 1, 2019. Earlier, SBI had withdrawn its repo linked home loan product which was launched on July 1, 2019.

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    10:22 (IST)23 Sep 2019
    BofAML says corporate tax cut to result in massive savings for BSE 500 firms

    "The reduction in corporate tax rates is an investment stimulus and not a consumption one. Consumption and higher demand will likely be a derived impact of corporates eventually spending this incremental profit. A small immediate impact through an improvement in sentiment is likely though. We think Indian consumer stocks are reasonably expensive still - it might be difficult to chase the sector despite the EPS lift. Our calculations suggest FY19 PAT savings of c.Rs580bn for BSE500 companies. The sector wise savings (for BSE 500 Index taking FY19 PAT) is the largest for Banks, Energy and Materials (Chart 1). Given the nature of these businesses, they are unlikely to step up capex in the near quarters. The higher cash flow will therefore most likely lead to increased corporate savings in the near term," BofAML noted.

    09:54 (IST)23 Sep 2019
    National centre for IT e-assessment to be set in Delhi; CBDT issues order

    To enact the faceless e-assessment scheme, the government has announced setting up of a national e-assessment centre (NeAC) in New Delhi. In an order, the Central Board of Direct Taxes (CBDT), said the centre will exclusively focus on e-assessment and will have 16 officials. The e-assessment centre will headed by a Principal Chief Commissioner of Income-tax (PCCIT) as its chief. The NeAC will be an independent office looking after the work of e-assessment, the recently notified scheme for faceless and nameless assessment for income taxpayers.

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    09:40 (IST)23 Sep 2019
    Why not a cut on GST, income tax when it can benefit more people

    Finance Minister Nirmala Sitharaman’s announcement to cut corporate tax rates on Friday morning was a welcome surprise for the Indian economy that has been struggling with growth deceleration. According to reports, the government has cut the corporate tax rate for domestic companies to 22 per cent (inclusive of all cesses and surcharges) for domestic companies from the existing 30 per cent. What’s more, new domestic manufacturing companies, incorporated after October 1, will be asked to pay only as little as 15 per cent rate provided they start manufacturing by 2023 – that is, a year before the next general elections.

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    09:24 (IST)23 Sep 2019
    BSE live: Sensex soars 1,000 points, Nifty above 11,500; ITC, HDFC Bank top gainers

    The headline indices Sensex and Nifty extended gains on Monday morning, after FM's corporate tax booster and GST rate cuts lifted sentiments. The Sensex was up 1,000 points to 39,144, while the Nifty was trading above the 11,500-mark at 9.20 am. L&T, ITC, IndusInd Bank, M&M were the biggest gainers in Sensex, jumping up to 8%. Infosys, Tech Mahindra were among the only losers in the index. A look at LIVE Sensex heatmap.

    09:08 (IST)23 Sep 2019
    Big Bank Theory: PSU banks merger must be followed by good governance

    The government has unveiled a mega plan to merge 10 public sector banks (PSBs) into four, thereby reducing the number of state-owned banks from 18 to 12. Under the consolidation process, the Oriental Bank of Commerce and the United Bank of India will be merged in the Punjab National Bank; the Syndicate Bank with the Canara bank; the Andhra Bank and the Corporation Bank with the Union Bank of India; and the Allahabad Bank with the Indian Bank. The aim is to create next-generation financial institutions with stronger balance sheets and bigger lending appetite.

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    09:05 (IST)23 Sep 2019
    Changing paradigm: Indian IT industry needs a reboot

    Good doctors are mindful of iatrogenic risks—the unintended consequence of the treatments they prescribe. The HR adage that culture eats strategy for breakfast is under re-evaluation because of the unintended consequences of strong, or monoclonal cultures in times of rapid change, lower cognitive diversity, resistance to change, Nuremberg excuse (we were following orders), group-think (the warmth at the centre of the herd) and much else. Culture will always be important for the basics, like integrity and teamwork, but the weaknesses of strong cultures in a rapidly changing world need thoughtful organisation structures.

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    09:00 (IST)23 Sep 2019
    Weak Rupee: Will it boost exports?

    The head of a large equity fund I met at a restaurant last weekend greeted me with “80?” A very smart analyst I know sent me a report a couple of months ago forecasting 80 by mid-2020; his analysis was quite convincing, except for the fact that this has been his view for at least two years. A friend of mine in the hospitality business said he needs 90 for sustained profitability—everybody’s going to Bangkok and Dubai was his complaint. Another friend, who I sometimes consult on the “right” value of the rupee for his business—which competes with imports from China and has some exports—very matter-of-factly talked about 75-80.

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    08:55 (IST)23 Sep 2019
    Global markets: Asian shares gain on better Sino-US trade tone, oil climbs

    Asian shares started higher on Monday on hopes of an interim Sino-U.S. tariff deal after the two countries described their talks as “productive” and “constructive”, while oil gained more than 1% as Middle East tensions remained elevated. Australian shares added 0.5% while New Zealand’s benchmark index was 0.1% higher. South Korea’s Kospi was a touch weaker after disappointing trade data, while Japan’s Nikkei was closed for a holiday. That left MSCI’s broadest index of Asia-Pacific shares outside Japan up 0.5% at 511.3 points. It is up 3.4% so far in September.

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    08:53 (IST)23 Sep 2019
    Explained: Why not a cut on GST, income tax when it can benefit more people

    Finance Minister Nirmala Sitharaman’s announcement to cut corporate tax rates on Friday morning was a welcome surprise for the Indian economy that has been struggling with growth deceleration. According to reports, the government has cut the corporate tax rate for domestic companies to 22 per cent (inclusive of all cesses and surcharges) for domestic companies from the existing 30 per cent. What’s more, new domestic manufacturing companies, incorporated after October 1, will be asked to pay only as little as 15 per cent rate provided they start manufacturing by 2023 – that is, a year before the next general elections.

    Full story

    08:53 (IST)23 Sep 2019
    Explained: How much benefit can companies fetch from corporate tax cut

    After Finance Minister Nirmala Sitharaman slashed the corporate tax rate on Friday to 22% from 30%, the key question is: will it kickstart the economy just as it did the equity markets? Even before one attempts to find an answer to this question, the magnitude of the cut cannot be underscored. This big (more than a fourth) cut in corporate tax rate comes after a gap of almost 15 years. In 2004-05, the tax rate was reduced to 30% from 35% (one-seventh), seven years after P Chidambaram’s Dream Budget which cut it to 35% from 40% (one-eighth). Drawing a cricketing analogy, Sitharaman Friday hit the ball out of the stadium. But the economy needs many more sixes, given the required run rate to reach the GDP target of $5 trillion by 2024. This requires a run rate of 14-15% every year.

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    08:52 (IST)23 Sep 2019
    Howdy Modi: US-India bonhomie marred by trade disputes

    As Prime Minister Modi touches the US soil in his journey to cement the already flourishing US-India relations, two news events make a proper background to the journey. A report compiled by the Department of Homeland Security, every fourth non-resident foreign nationals in the US in 2016 was an Indian. Another news mentioned about a bipartisan group of 44 lawmakers that urged the Trump administration to reinstate India’s designation as a beneficiary developing nation under the Generalized System of Preferences (GSP) trade program which was terminated in June this year.

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    08:51 (IST)23 Sep 2019
    GST Council meet: From coffee to hotel rooms, check what became costlier and what got cheaper

    The GST Council on Friday announced a host of measures ranging from increasing rates on caffeinated drinks to reducing tariff on hotel rooms with an aim to simplify and rationalise taxation. The rates on caffeinated drinks such as coffee were hiked to 28 per cent from 18 per cent, while the  rates on hotel rooms with tariff above Rs 7,500 have been cut to 18 percent, down from 28 percent. Finance Minister Nirmala Sitharaman said that the Council also approved nil GST rates on hotels with tariff up to Rs 1,000. The meeting which was held in Goa today also saw GST rate on diamonds getting cut to 1.5 per cent from the earlier 5 per cent.  In addition, the almond milk GST rate has been set at 18 per cent by the Council. A uniform GST rate of 12 percent was approved on polypropylene and polyethylene (woven and non-woven) whether or not laminated for packing.

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    08:50 (IST)23 Sep 2019
    Recap: Sensex, Nifty see biggest intra-day gain ever after FM’s tax boosters; key highlights

    The headline indices Sensex and Nifty registered their biggest one-day gain in over a decade after FM Nirmala Sitharaman announced a slew of big-bang reforms to revive the ailing economy. The Sensex saw its highest ever intra-day jump of 2,285 points to hit the day’s high at 38,378, but later ended the session at 38,014. Similarly, the broader Nifty zoomed 569.40 points or 5.32 per cent to close at 11,274.20. Hero MotoCorp, Maruti Suzuki, IndusInd Bank, Bajaj Finance, SBI, M&M, HDFC Bank, HUL and L&T were the biggest gainers in the index, closing up to 12.52% higher. PowerGrid, Infosys, TCS, NTPC and Tech Mahindra were the only losers, closing up to 2.39% down.

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