Share market Highlights: Sensex ends flat, Nifty above 11,050; Sun Pharma, Bajaj Auto shares surge

The Reserve Bank of India (RBI) Thursday decided to raise the criteria for ‘bulk deposits’ for banks to Rs 2 crore from the current Rs 1 crore, to provide more operational freedom to lenders to raise funds. Banks have been given discretion to offer differential rate of interest on the bulk deposits as per their requirements and asset-liability management (ALM) projections.

Also read: Bulk deposit criteria raised; now, single deposits more than this amount will qualify as bulk deposit

"RBI’s decision to reduce the repo rate by 25 basis point from 6.5% to 6.25% and change of stance to ‘Neutral’ will give a boost to the economy, lead to affordable credit for small businesses, homebuyers etc. and further boost employment opportunities," FM Piyush Goyal tweeted.

Shares of telecom firm Vodafone Idea surged in trade on Thursday afternoon, after the firm said that it has received a favourable order from TDSAT for refund on Rs 2,113 crore. Voadfone Idea shares gained nearly 10% to Rs 32.95 in the afternoon trade on NSE. "On 21st January, 2019, the company has received a favorable order from TDSAT directing DoT to release the BG t 21,135 million within two months,” Vodafone Idea said in its earnings statement issued Wednesday. Vodafone Idea on Wednesday posted a consolidated loss of Rs 5,005.7 crore for the quarter ending December. The teleco had posted a loss of Rs 4,973.80 crore in the sequential quarter ended September 30. Since the merger, it’s the first quarterly earnings reported by the combined entity.

As part of its commitment for the conservation of cattle, the Uttar Pradesh government said Thursday it was seeking support from the other departments in this regard. “A special cess has been imposed on liquor sales in the state. Out of the cess, an estimated revenue of Rs 165 crore will be utilised for maintenance of stray cattle of the state. “Rs 247.60 crore has been proposed for maintenance and construction of ‘gaushalas’ (cow shelters) in the rural areas,” state Finance Minister Rajesh Agarwal said while presenting the state budget.

Also read: UP Budget 2019: Yogi Adityanath govt allocates Rs 450 crore for cow welfare

Asia’s richest man Mukesh Ambani today said that Jio and Reliance Retail will shortly launch a unique “new commerce” platform that will empower as many as 3 crore small shopkeepers in India. Textiles-to-telecom giant Reliance Industries chairman and managing director Ambani was speaking at the Bengal Global Business Summit today. The platform, “will bring win-win benefits to consumers, retailers and producers,” Ambani said. Ambani, last month during an event in Gujarat had announced that, “Jio and Reliance Retail will launch a unique new commerce platform to empower and enrich our 12 lakh small retailers and shopkeepers in Gujarat.”

Also read: Reliance new e-commerce venture to boost 3 crore small retailers: Mukesh Ambani

The Reserve Bank of India (RBI) today in its last Monetary Policy Committee (MPC) meeting for this financial year cut the repo rate by 25 basis points to 6.25 percent. For the existing home loan takers who were expecting a rate cut, there’s a reason to rejoice. However, going by what a few banks have done in the recent past, the joy could be short-lived as their loan EMIs may not go down in a hurry. Even before the MPC meet, on February 5th, Bank of Baroda (BOB) had declared that it is going to increase its MCLR from February 7th. The 1-year MCLR for BOB is up by 10 basis points and stands at 8.75 percent. 

Read full story here: RBI cuts repo rate by 25 bps, but why it may not reflect in your EMIs anytime soon

"This rate cut means a lot for the market as it is announced post budget. With clear words from RBI, the rate cut has accounted for every phenomenon. The recent changes in the tax rates, the relaxations, GST and the expense and the revenue of the budget. Though it primarily aims to keep inflation in a tab and boost growth, this is a much-needed breather for market and specifically interest rate sensitive sectors like Housing, Automobile, and also it will to an extent try to settle the dust of recent liquidity crunch that happened post the ILFS fiasco," Mustafa Nadeem, CEO, Epic Research said in a note.

After opening higher --Sensex and Nifty--reversed gains to turn choppy in the afternoon trade after RBI cut rates by 25 basis points. The Sensex down 36 points to 36,939.12 while the Nifty is trading above the 11,050-mark. Sun Pharma shares extended rally in the afternoon trade to Rs 438 after its subsidiary Taro Pharma reported strong Q3 results. Bajaj Auto shares gained by more than 2.8% to Rs 2,849 in the afternoon trade on Thursday. A look at LIVE Sensex heatmap.

"Over the past two and a half days, that is during February 5, February 6 and February 7, the Monetary Policy committee reviewed the macroeconomic and financial conditions and prospects and voted by a 4:2 majority to reduce the policy repo rate by 25 basis points (bps). The MPC also voted unanimously to shift the policy stance from calibrated tightening to neutral,” RBI governor Shaktikanta Das told reporters after the policy.

investment activity is supported mainly by public spending. Private investment has to be supported. Macros indicate need to act now to address the objective of growth’. ‘Seeing some moderation in the pace of activity in the services sector, investment demand declined in Q3'. ‘MPC noted global growth slowing down. World trade losing momentum. In Domestic market credit flow remains muted, investment demand declines’

4 measures announced for banks and NBFCs- revising threshold of bulk deposit for banks, harmonisation of 3 different kinds of NBFCs, alignment of risk weights. Governor Das ‘will dey up a task force on offshore rupee market to look at causes for growth of this market and suggest ways to encourage non residents to participate in domestic market’

"Governor Das says  ‘have tried to understand the issues facing NBFCs, some action has been taken, other suggestions under consideration. Will ensure there is no liquidity scarcity," he said during a press meet.

After opening higher --Sensex and Nifty--pared gains in the afternoon trade after RBI cut rates by 25 basis points. The Sensex is up 65 points to 37,059, while the Nifty is trading above the 11,050-mark. Sun Pharma shares extended rally in the afternoon trade to Rs 438 after its subsidiary Taro Pharma reported strong Q3 results. Bajaj Auto shares gained by more than 2.8% to Rs 2,849 in the afternoon trade on Thursday. A look at LIVE Sensex heatmap.

RBI Monetary Policy:  The Reserve Bank of India (RBI) on Thursday cut repo rate by 25 bps to 6.25 per cent in its sixth bi-monthly monetary policy statement for 2018-19. The Monetary Policy COmmittee (MPC) has also unanimously voted to change the policy stance to ‘neutral’.  “On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee (MPC) decided to: • reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 6.5 per cent to 6.25 per cent with immediate effect,” RBI said in a statement.

Shares of pharma major Sun Pharma jumped by more than 6.4% to Rs 442 in the morning trade on Thursday, after the firm's subsidiary Taro Pharma reported strong Q3 results. Taro Pharma reported a 422% on-year jump in its net profit for the third quarter, whereas net sales for rose by 13% on-year. Sun Pharma is expected to release its December quarter numbers on Tuesday, 12 February 2019.

Shares of Chalet Hotels which made their debut on the exchanges today are off opening highs. Chalet Hotel shares are trading at Rs 285, down 2.7% from the day's high at Rs 293.50. Chalet Hotel had set the price band between Rs 275-280 in its IPO (initial public offering) earlier this month. Chalet Hotels has come out with a public offer for Rs 1,641 crore. The issue will open on Tuesday, 29 January 2019 and will close on Thursday, 31 January 2019. The company looks to raise up to Rs 950 crore by fresh equity issuance while the existing shareholders will offload another about 2.47 crore shares for approximately Rs 700 crore worth of shares via OFS (offer for sale).

The rupee Thursday depreciated 20 paise to 71.76 in early trade at the forex market ahead of the Reserve Bank of India's interest rate decision. The domestic currency has been trading in a narrow range in the last two trading sessions as investors were cautious ahead RBI's Monetary Policy Committee outcome scheduled to be announced later in the day. Forex traders said positive opening in domestic equities, fresh foreign fund inflows and easing crude prices, however, capped the losses for the domestic unit. At the Interbank Foreign Exchange, the rupee opened on a weak note at 71.73 then fell further to 71.76 against the US dollar, showing a decline of 20 paise over its previous closing.  On Wednesday, the rupee had settled 1 paise higher at 71.56 against the US dollar. Foreign funds purchased shares worth Rs 694.97 crore on a net basis, and domestic institutional investors bought shares worth Rs 525.26 crore Wednesday, provisional data showed. (PTI reported)

SoftBank Group Corp. shares jumped the most in a decade on plans to repurchase as much as 600 billion yen ($5.5 billion) of stock, a shift in strategy for founder Masayoshi Son who has long favored spending his capital on tech investments. Son unveiled SoftBank’s biggest-ever buyback as he tries to close the gap between what he thinks the company is worth and its market value. It will be funded with proceeds from the 2.4 trillion yen initial public offering of the company’s telecommunications unit in December. The stock jumped 17 percent to 9,897 yen, the most since November of 2008.

Also read: SoftBank surge: Masayoshi Son’s biggest-ever buyback sends stock soaring

The domestic stock markets --Sensex and Nifty--opened mildly higher ahead of the RBI Monetary Policy meeting and tracking weak global cues. The Sensex is up 117 points to 37,092.18, while the Nifty is trading above the 11,050-mark. The street will be looking forward to a cut in key policy rates in today's RBI MPC meet. Sun Pharma shares zoomed by more than 2.7% to Rs 426.90 on BSE, while Tata Motors shares price jumped nearly 2% ahead of its Q3 results scheduled to be reported today. A look at LIVE Sensex heatmap.

Asian share markets were in a muted mood on Thursday and looked set for a sleepy session with China still on holiday and no major economic data on the diary. MSCI’s broadest index of Asia-Pacific shares outside Japan was little moved in early trade after ending almost unchanged on Wednesday. Japan’s Nikkei dipped 0.2 percent, while E-Mini futures for the S&P 500 were off 0.06 percent in very thin trade. Wall Street had already snoozed through a subdued session, though disappointing revenue forecasts hammered shares of the major videogame makers. Electronic Arts Inc tumbled 13.3 percent and Activision Blizzard Inc sank 10.1 percent. The Dow fell 0.08 percent, while the S&P 500 lost 0.22 percent and the Nasdaq 0.36 percent.

Also read: Global markets: Asian shares doze in data lull

The six-member MPC headed by RBI Governor Shaktikanta Das on Thursday will present the sixth bi-monthly monetary policy statement for 2018-19. The policy has created interest since it’s the last of the fiscal and also the first under Das, who took charge in December 2018 following the sudden exit of Urjit Patel. The Central Bank may change its stance to neutral from calibrated tightening, CARE Ratings. “The RBI is likely to alter its monetary policy stance from “calibrated tightening” to “neutral” with inflation being lower than its target for 5 consecutive months but will maintain status quo in the repo rate given the core inflation being sticky at 5% and likelihood of build-up in inflation in the coming months…,” it added.

Also read: RBI Monetary Policy: Under Shaktikanta Das, will central bank change rates? Here’s what CARE says

Mutual fund houses with an estimated Rs 8,000-crore exposure to Essel Group have asked regulator Sebi to permit them to modify the framework of Subhash Chandra-led Group’s debenture trust deeds to give promoters time to rope in strategic investors, officials said. The Essel Group, on Sunday, sealed a formal agreement with its lender including mutual funds and non-banking finance companies (NBFCs), to get time till September to de-leverage or pare its debt. The agreement is with those lenders who have taken pledged shares of the group flagship and listed entities, Zee Entertainment Enterprises and Dish TV India.

Also read: Mutual fund houses ask SEBI to give time to Essel Group promoters to rope in strategic investors

n a departure from the norm held for over two years, RBI Monetary Policy Committee (MPC) will release its sixth bi-monthly policy statement on February 7 at 11:45 am instead of 2:30 pm. However, the central bank didn’t give a reason for the same. “The Monetary Policy Committee (MPC) will meet during February 5 to 7, 2019 for the Sixth Bi-monthly Monetary Policy Statement for 2018-19. The resolution of the MPC will be placed on the website at 11.45 AM on February 7, 2019,” RBI said in a statement.

Also read: RBI changes release time of monetary policy statement

Narendra Modi should be back as Prime Minister in 2019 and Bharatiya Janata Party (BJP) will surprise with an upside in its election tally, ace investor Rakesh Jhunjhunwala said at an event on Wednesday while sharing his views on the upcoming elections. India has raised its growth level in each decade since independence and democracy, entrepreneurship and natural resources fuel it, he also said. Speaking at TiEcon, the veteran market investor said that the world is faced with two big dangers – unstable currency and China’s rising debt. The ‘Big Bull’ as he is famously called in the world of stock market also said that global economic slowdown doesn’t necessarily mean that it will impact financial markets. The growth and prosperity come only when there is chaos, like in India and America, he added.

Also read: Modi should be PM again, BJP will surprise with an upside, says Big Bull Rakesh Jhunjhunwala

Vodafone Idea on Wednesday posted a consolidated loss of Rs 5,005.7 crore for the quarter ending December. The teleco had posted a loss of Rs 4,973.80 crore in the sequential quarter ended September 30. Since the merger, it’s the first quarterly earnings reported by the combined entity. The total income was reported at Rs 11,982.8 core during the same quarter. The income increased by 52 per cent compared to Rs 7,878.6 crore in the previous July-September quarter.

Read more: Vodafone-Idea posts Rs 5,005 crore loss in Q3; key figures in nutshell