Share Market highlights: Sensex ends 147 points up, Nifty above 11,100; Tata Motors, Tata Steel top gainers

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Updated:Aug 27, 2019 3:41:29 pm

Share Market highlights: The headline indices Sensex and Nifty extended gains on Tuesday, after FM Nirmala Sitharaman announced a slew of measures to spur up the economy. The Sensex closed 148 points down to 37,641.

The Sensex closed 148 points down to 37,641 while the Nifty ended above the 11,100-mark.

Share Market highlights: The headline indices Sensex and Nifty extended gains on Tuesday, after FM Nirmala Sitharaman announced a slew of measures to spur up the economy. The Sensex closed 148 points down to 37,641 while the Nifty ended above the 11,100-mark. Tata Motors, Tata Steel, SBI were among the biggest gainers, jumping up to 8.6%. Infosys, HCL Tech were among the losers, shedding more than 1% each. Asian stocks tracked global peers higher on Tuesday while safe-haven bonds sold off as signs Sino-US trade hostilities might be easing helped restore investor confidence after the previous session’s rout. Supporting the market mood, US President Donald Trump on Monday flagged the possibility of a trade deal with China and said he believe Beijing was sincere in its desire to reach an agreement. Global markets had been roiled at the start of the week by new tariffs from the world’s two largest economies, Reuters reported. We bring to you live updates.

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Highlights

    15:40 (IST)27 Aug 2019
    Sensex ends 140 points up, Nifty above 11,100; Tata Motors, Tata Steel top gainers

    The headline indices Sensex and Nifty extended gains on Tuesday, after FM Nirmala Sitharaman announced a slew of measures to spur up the economy. The Sensex closed 148 points down to 37,641 while the Nifty ended above the 11,100-mark. Tata Motors, Tata Steel, SBI were among the biggest gainers, jumping up to 8.6%. Infosys, HCL Tech were among the losers, shedding more than 1% each. A look at LIVE Sensex heatmap.

    15:34 (IST)27 Aug 2019
    Auto, FMCG stocks extend gains after FM's boost; Tata Motors, Britannia surge 10%

    Auto, FMCG stocks extended rally on Tuesday afternoon, after the Narendra Modi-led government's reform push came as a shot in the arm for the ailing sectors. The Nifty auto index surged more than 2% to hit the day's high at 7,185. Tata Motors (10.4%), Ashok Leyland (5.4%), Apollo Tyres (3.4%), Eicher Motors (3.2%), Exide (2.3%), Bosch (1.9%) were the biggest gainers in the index. Notably, Tata Motors emerged as the biggest Sensex gainer too, gaining more than 10% to Rs 121.40 on BSE. In the Nifty FMCG index, Britannia (6.3%), Marico (2.6%), Emami (2.3%) and Jubilant Foodworks (1.9%) were the biggest gainers. The Nifty FMCG index gained more than 0.6% to 29,080.

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    14:05 (IST)27 Aug 2019
    How MSMEs may create more jobs: FICCI suggests govt ways to grow small businesses

    In order to boost job creation in India’s micro, small and medium enterprise (MSME) sector — the second largest employer in India after agriculture, there is a need to adopt a cluster development approach by the government, according to economists. “Smaller enterprises working in a cluster will develop economies of scale and become cost-efficient, thereby improving their productivity and competitiveness,” industry body FICCI said in its latest economic outlook survey among economists, since “a majority of employment opportunities are created by SME.”

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    14:04 (IST)27 Aug 2019
    India GDP growth revised downwards; economists suggest ways to revive economy

    India’s economic growth rate, which was at about 8 per cent until a few years back, has been revised downwards. GDP growth rate for the first quarter of the current financial year is estimated at 6 per cent, while for the full year 2019-20, it is projected at 6.9 per cent in the August economic outlook survey by FICCI. The country’s GDP growth has been moderating on account of both global and domestic factors and the prospects over immediate term don’t seem too bright. Where industry and services are expected to grow at 6.9 percent and 8 per cent respectively, optimism in the growth of agriculture and allied activities is still moderate. The agriculture sector is expected to grow by a mere 2.2 per cent in 2019-20.

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    12:59 (IST)27 Aug 2019
    Slow biscuit sales: Brands at fault? GST, economic slowdown not the only culprits

    While food FMCG companies have been harping on how hefty GST tax slabs and ongoing economic slowdown have taken a toll on the biscuit sales, their own brand positioning and brand building could also be one of the reasons behind slower than usual sales. It has been two years since the GST was implemented and the brands that were vulnerable because of the change “have had enough time to reinvest in brand building and earn consumer pricing,” UBS said in a recent note. Exemplifying Britannia, which has since moved its Tiger-brand biscuits to more value-added segment, UBS said that the brands which are not offering customer value proposition i.e, benefits given to the customers for the amount paid by them, are witnessing a loss in market share and volume momentum. 

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    12:51 (IST)27 Aug 2019
    Economy set for weakest quarter of growth in 5 years, says Reuters poll

    The Indian economy likely expanded at its slowest pace in more than five years in the April-June quarter, driven by weak investment growth and sluggish demand, according to economists polled by Reuters. That would reinforce concerns seen in the minutes from the central bank’s August meeting, which showed policymakers were worried about weak growth and indicated further rate cuts in the next few months to boost the slowing economy.

    12:47 (IST)27 Aug 2019
    Warren Buffett’s been quiet, but his philosophy still speaks volumes

    “This time is different,” the rally cry of investors who spot an irrevocably changed market every few years, is in ample supply these days. Interest rates have reached a permanent low. U.S. stocks have reached a permanent high. FAANG stocks will rule markets for all time. Value investing is dead. During previous bouts, Warren Buffett, America’s patron saint of investing offered his sage — and inevitably unpopular — perspective. When the dot-com mania raged in the late 1990s, he famously warned against chasing internet stocks. And during the depths of the 2008 financial crisis, he implored investors not to give up on U.S. stocks. Of course, neither episode turned out to be different from the innumerable ones that preceded it, at least when it comes to investing.

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    12:41 (IST)27 Aug 2019
    RBI paints gloomy picture for Indian economy; industrial outlook sentiment falls amid slowdown fears

    Business sentiment in India, despite getting better in the fiscal first quarter, has again taken a beating with the industrialists expecting their businesses to perform weaker in the second quarter amid fears of an economic slowdown, RBI said in a survey report. In a response received from 1,231 companies, growth in production, order and capacity utilisation is expected to substantially decrease in Q2 FY20, according to RBI industrial outlook survey of the manufacturing sector. Though the demand is expected to increase in the second quarter, sentiments on the availability of finance from banks and internal accruals remained weak.

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    12:25 (IST)27 Aug 2019
    Will Sensex, Nifty rally sustain after FM’s economy boost? Key factors that could lift stock market

    Even as the headline indices Sensex and Nifty continue to extend gains for the second consecutive day, the confluence of bountiful monsoons, benign global crude oil prices and further monetary easing could help to sustain recovery in stock market, according to Prabhudas Lilladher. “The ‘Triveni Sangam’ of bountiful monsoons, benign global crude oil prices & further monetary easing will act as ‘Sanjeevani’ & resuscitate India’s comatose Indian equity markets,” Ajay Bodke CEO & Chief Portfolio Manager, PMS Prabhudas Lilladher said. 

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    11:03 (IST)27 Aug 2019
    Rough ride: Woes in auto industry far from over

    Top players of the automobile industry feel that recent measures announced by finance minister Nirmala Sitharaman would certainly help in boosting the consumer sentiment, but the GST rate cut from 28% to 18%, which they were demanding, would have been the real demand stimulant. However, that was missing from the announcements made on Friday. On Friday, Sitharaman announced a slew of measures to tackle slowdown faced by the automobile industry. Measures included, BS-IV vehicles bought up to March 2020 to remain operational for its entire period of registration, additional 15% depreciation on all vehicles acquired from now on till March 31, 2020, deferring the proposed hiked registration fee till June 2020 and lifting the ban on purchase of new government vehicles.

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    10:51 (IST)27 Aug 2019
    DHFL debentures trustee considers giving NCD holders time to sign inter-creditor agreement

    Catalyst Trusteeship (CTL), the debenture trustee for retail and institutional bond investors, including some gratuity and pension funds, of Dewan Housing Finance Corporation (DHFL), is considering giving debenture holders further time to send in their consent on acceding to the inter-creditor agreement. Catalyst is a trustee for between 86,000 and 87,000 bond holders of DHFL. Debenture holders had been given time till August 26 to send in their consent forms.

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    10:46 (IST)27 Aug 2019
    GMR Infrastructure rating: Buy; Performance in quarter was a mixed bag

    GMR Infrastructure’s (GMR’s) Q1FY20 adjusted loss of Rs 3.4 bn came in line with our estimate. Delhi Airport’s (DIAL) traffic continued to moderate due to the Jet Airways issue; Hyderabad Airport’s (HIAL) traffic grew 8% y-o-y. In the power segment, PLF improved y-o-y in Warora, but fell in Kamalanga due to major maintenance undertaken during the quarter. Receivables from SEBs have started to dip. Timely completion of the stake sale in the airports arm will reduce leverage and be a key monitorable. Maintain Buy with SOTP based target price of Rs 24 as we roll over the valuation to December 2020e.

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    10:28 (IST)27 Aug 2019
    Reliance Jio grows at the expense of Vodafone Idea, Bharti Airtel

    RJio added 10.2 million subscribers in June, increasing its active subscriber market share by 120 bps m-o-m to 28.3%, while Vodafone Idea lost another 11.2 mn subscribers dragging its share down 94 bps m-o-m to 32.8%. Bharti lost 4.4 mn active subscribers with market share down 26 bps m-o-m to 32.1%. Industry’s active subscriber base [considering Visitor Location Register (VLR)] in June was down 5.8 mn m-o-m to 984 mn, as subscriber additions by RJio were more than offset by exit at incumbents after they implemented minimum recharge plans.

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    10:21 (IST)27 Aug 2019
    Jaypee Infratech homebuyers to move Supreme Court against NCLAT order

    Homebuyers of embattled Jaypee Infratech (JIL) on Monday moved the Supreme Court, challenging the July order of the NCLAT that allowed fresh bidding for the debt-laden real estate firm and also barred promoters from participating in the fresh auction. A bench led by Justice AM Khanwilkar tagged the matter along with similar other appeals pending before it. The batch of cases is likely to come up for hearing on August 29.

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    10:19 (IST)27 Aug 2019
    Nearly 50 sugar mills in Maharashtra may not crush sugarcane this season

    With cane growing districts in Maharashtra reporting losses due to floods, as many as 50 sugar mills in the state are unlikely to crush cane for the 2019-20 season due to lack of cane availability. For the sugar crushing season of 2018-19, which commenced on October 20 last, about 952.11 lakh tonne of sugarcane was crushed and 107 lakh tonne of sugar was produced by 195 factories. Of these, 102 factories were from the cooperative sector and 96 from the private sector. From the three districts, about 7.93 lakh acre of sugarcane was planted, which led to 301 lakh tonne of the crop being crushed and 36 lakh tonne production of the sweetener.

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    09:51 (IST)27 Aug 2019
    Reliance Communications committee of creditors to meet today

    The committee of creditors (CoC) of Reliance Communications (RCom) will hold their sixth meeting on August 27, according to a BSE notice. Ericsson had dragged RCom to insolvency and bankruptcy proceedings in September 2017 over non-payment of dues of over Rs 1,500 crore. The petition was admitted in the National Company Law Tribunal (NCLT), however, the National Company Law Appellate Tribunal (NCLAT) stayed the insolvency order, after an appeal from RCom and a settlement with Ericsson was chalked out.

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    09:50 (IST)27 Aug 2019
    Economic Capital Framework review: Government to get Rs 1.48 lakh crore from RBI in 2019-20

    The Reserve Bank of India (RBI) on Monday decided to transfer Rs 1.76 lakh crore to the Centre in 2018-19 (July–June), the entire net disposable income of Rs 1.23 lakh crore and an additional Rs 52,637 crore of ‘excess provisions’ identified as per the Bimal Jalan committee, which reviewed the central bank’s economic capital framework (ECF). As this would mean the resource-hungry Centre would get Rs 1.48 lakh crore immediately for FY20 — the transfers approved by the central bank’s board includes Rs 28,000 crore paid in February — 64% higher than Rs 90,000 crore it had budgeted to receive from the RBI this fiscal.

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    09:29 (IST)27 Aug 2019
    BSE live: Sensex up 180 points, Nifty above 11,100; Tata Motors, Tata Steel top gainers

    The headline indices Sensex and Nifty extended gains on Tuesday, after FM Nirmala Sitharaman announced a slew of measures to spur up the economy. The Sensex is up 180 points to 37,678 while the Nifty is trading above the 11,100-mark. Tata Motors, Tata Steel, SBI were among the biggest gainers, jumping up to 2.5%. Infosys, HCL Tech were among the losers, shedding more than 1% each.  A look at LIVE Sensex heatmap.

    09:14 (IST)27 Aug 2019
    Fiscal constraints preclude any meaningful stimulus, says Jeffries

    With growth sluggish, India’s FM made another attempt to boost the economy with measures straddling taxation, infrastructure, markets, banking/NBFCs, MSMEs and autos. They may help little in the near-term but it is still encouraging to see the government engage on issues with more steps likely too, especially in housing. Even so, fiscal constraints preclude any meaningful stimulus prompting us to stay cautious amid soft earnings and extended valuations.With GDP growth slowing to a 5-year low of 5.8% in 4QFY19 and likely even further in early FY20, the clamour for government intervention to boost the economy has risen.

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    09:13 (IST)27 Aug 2019
    Credit risk funds may find favour as worst seems over

    In the last one year, debt funds, especially credit risk funds, have been in the spotlight due to downgrades and defaults in the debt papers, which impacted their returns. But with the worst seems to be over now, fund managers believe that this could be a good time to invest in credit risk funds for the next one-three years. Market participants say one of the reasons for credit risk funds turning attractive is because the spreads between AAA-rated bond and AA-rated bond is over 200 basis points (100 basis points = 1%), giving better opportunity at this point of time. Credit risk funds are mandated to invest at least 65% of total assets in below AA-rated instruments.

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    09:11 (IST)27 Aug 2019
    Crackdown: Government retires 22 tax officials on charges of corruption

    The Central Board of Indirect Taxes and Customs (CBIC) has given marching orders to 22 more officials facing probe on corruption charges, in keeping with the Narendra Modigovernment’s policy to weed out dead wood and the corrupt from the bureaucracy. These officials were serving as superintendents/assessing officials in the indirect tax department and were facing investigations from various enforcement agencies.

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    09:10 (IST)27 Aug 2019
    Trade jitters: Gold prices hit six-year high

    Gold jumped more than 1% to surpass the $1,550 per ounce mark for the first time in more than six years on Monday driven by the heightened trade row. Meanwhile, in the domestic market, gold ended at Rs 39,670 per 10 gram, the new all-time high.

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    08:48 (IST)27 Aug 2019
    Exclusive: Modi govt may receive RBI’s Rs 1.76 lakh crore booster shot today itself

    In a big relief to the Modi government, Reserve Bank of India has not only accepted the recommendations of Bimal Jalan Panel to transfer a huge sum of Rs 1.76 lakh crore to the Union government but the RBI is also implementing the decision forthwith. According to a senior RBI official, this huge sum will be credited to the Union government’s books of accounts today, just a day after the approval of the Bimal Jalan panel’s recommendations by the Bank’s Central Board.

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    08:47 (IST)27 Aug 2019
    Reliance Jio grows at the expense of Vodafone Idea, Bharti Airtel

    RJio added 10.2 million subscribers in June, increasing its active subscriber market share by 120 bps m-o-m to 28.3%, while Vodafone Idea lost another 11.2 mn subscribers dragging its share down 94 bps m-o-m to 32.8%. Bharti lost 4.4 mn active subscribers with market share down 26 bps m-o-m to 32.1%. Industry’s active subscriber base [considering Visitor Location Register (VLR)] in June was down 5.8 mn m-o-m to 984 mn, as subscriber additions by RJio were more than offset by exit at incumbents after they implemented minimum recharge plans.

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    08:46 (IST)27 Aug 2019
    Car sales slump: Tata Motors opts for second block closure this month

    Tata Motors is going for a second block closure in this month at its Pune plant from where it rolls out passenger cars and commercial vehicles. The company will have a four-day block closure from August 28 to 31. The company had a three-day block closure on August 3.Tata Motors had earlier indicated that the external environment remains challenging, leading to demand contraction and they have aligned production to actual demand and adjusted the number of shifts and contractual manpower.

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