Share Market Highlights: Sensex ends 286 points down, Nifty above 10,850; M&M, Tata Steel plunge

The RBI has decided to cover all repetitive bill payments under the Bharat Bill Payment System (BBPS) and a detailed guideline in this regard will be issued by September-end. Currently, repetitive bill payments cover five segments — direct-to-home, electricity, gas, telecom and water bills under the BBPS — which is an inter-operable platform. “In order to leverage the advantages of the BBPS and harness its full potential, it has been decided to permit all categories of billers (except prepaid recharges) who provide for recurring bill payments to participate in BBPS on a voluntary basis,” the RBI said in ‘Statement on Developmental and Regulatory Policies’ post the monetary policy review.

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Prices of certain daily commodities have increased in the last three months, with the food inflation accelerating to 2.4% in June 2019 from 2% in May. Not only this, consumers have more to worry as food items would continue to get costlier due to uneven rainfall, the RBIsaid in its Monetary and Credit Policy statement. “Uneven spatial and temporal distribution of monsoon could exert some upward pressure on food items,” RBI said. However, with recent catch up in rainfall, the risk is expected to be mitigated, India’s central bank said.

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Governor Shaktikanta Das Wednesday said the Reserve Bank will not allow any large and systemically important entity from the troubled shadow banking space to collapse. The comments come at a time when a large number of non-banking financiers and a few housing finance companies are facing severe liquidity issues which have been attributed to their mismanagement of the asset liability mixes.

Following are the highlights of RBI’s third monetary policy review for the current fiscal unveiled on Wednesday: RBI cuts key interest rate (repo) by an unusual 35 basis points (0.35 percentage points) to 5.40 per cent. Reverse repo rate has been revised to 5.15 per cent. The marginal standing facility (MSF) rate and bank rate stands at 5.65 per cent. Maintains the accommodative policy stance. Cuts GDP forecast to 6.9 per cent for the current fiscal from 7 per cent in June policy.

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India’s economic growth is slowing, and the Reserve Bank of India has data to show for it. The primary indicators show a contraction in both urban and rural demand, leading the RBI to cut its annual GDP growth forecast to 6.9% for the current financial year 2019-20, from 7% earlier. Tractor and motorcycle sales are an indicator of rural demand, while passenger vehicle sales are one of the three major components of measuring urban demand. Sales in both sectors have contracted, leaving the indicator for both urban and rural demand in red.

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Shares of Tata Group jewellery maker Titian slumped in trade on Wednesday after the firm reported Q1 results below street estimates. Titan share price slumped by more than 3.80% to hit the day’s low at Rs 998.70. In the Apr-Jun period, Titan’s standalone profit came in 6.17 per cent higher on year at Rs 370.73 crore, as against an ET Now poll of Rs 398 crore profit for the quarter. Notably, ace investor Rakesh Jhunjhunwala, who has said that Titan is his favourite scrip has increased his stake to 7.05% as at the end of June quarter. 

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Reliance Industries Ltd has signed a new pact with its long-time partner BP Plc to sell retail fuel such as petrol and diesel across the country, building on the Mukesh Ambani firm’s existing 1,400 retail fuel outlets. The new joint venture between RIL and BP aims to grow rapidly to a total of 5,500 sites over the next five years, RIL said in a statement. As per the terms of the agreement, Reliance Industries will hold a 51% stake in the new joint venture, while BP will hold the remaining 49%. Notably, the latest joint venture will also include RIL’s aviation fuel business, which currently operates at over 30 airports across India, providing participation in this rapidly-growing market.

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“The RBI continued with the rate cut cycle but in a surprise change to the quantum, reduced repo rate by 35 bps. While this induces some uncertainty in market expectations of the quantum of rate changes, it provides the RBI MPC with a greater degree of flexibility in signalling their intent. The 35 bps rate cut should be seen as a signal that the RBI MPC is quite concerned with the growth outlook beyond the usual 25 bps rate cut in a business-as-usual scenario (even though it does not reflect in the revised FY2020 GDP growth estimate). The RBI MPC did not necessarily want to deliver a 50 bps rate cut and hence retains the scope to reduce rates further. With inflation expected to remain benign, and further downside to growth outlook, we see scope for 25-50 bps of further rate cuts through FY2020," Kotak said in a statement.

"Market fell as Das comment of "50bps being excessive" seen as an end to cut more," Amit Kumar Gupta, Fund manager, Adroit PMS said on Twitter.

“The Reserve Bank of India’s decision to cut rates by 35 basis point is a positive decision. The move to allow banks to lend to priority sectors, including to housing sector of up to Rs 20 lakh loans, through NBFC arms will kickstart credit flow especially to affordable housing sector. For the consumers to feel the benefit of lower rates, the RBI will now need to step in for accelerating transmission of the rate cut,” Ravindra Sudhalkar, ED & CEO, Reliance Home Finance said.

The headline indices Sensex and Nifty reversed gains after RBI cut repo rate by 35 bps while at the same time retaining accommodative stance. The Sensex is down 130 points to 36,847.09 while the Nifty is trading near the 10,900-mark. A look at LIVE Sensex heatmap.

"On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today decided to:
reduce the policy repo rate under the liquidity adjustment facility (LAF) by 35 basis points (bps) from 5.75 per cent to 5.40 per cent with immediate effect.
Consequently, the reverse repo rate under the LAF stands revised to 5.15 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 5.65 per cent," RBI said in its statement. 

The headline indices Sensex and Nifty are trading higher ahead after central bank RBI cut repo rate by 35 bps while at the same time retaining accommodative stance. The Sensex is up 70 points to 37,041.37 while the Nifty is trading above the 10,950-mark. Yes Bank, Powergrid, IndusInd Bank, Heromotocorp are among the biggest gainers jumping up to 6%. A look at LIVE Sensex heatmap.

The Bharti Airtel stock has been surging in the past three trading sessions and has emerged as the best performer on Nifty50. The firm’s consolidated revenues in the June quarter rose 2.6% sequentially, led by a 3.3% increase in Arpu (average revenue per user). The divergence in the performance of Vodafone-Idea and Airtel is what has given confidence to inves-tors, giving the stock a big boost. The growing appetite for the stock helped Bharti Airtel become the 13th most-valued firm by market capitalisation (m-cap) on Tuesday from its rank of 21 at the beginning of the year. The market valuation of the stock climbed to Rs 1.89 lakh crore after surpassing that of Axis Bank, Maruti Suzuki, ONGC and many others.

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A spokesperson for UN Secretary-General Antonio Guterres has declined to comment on claims that scrapping of Jammu and Kashmir’s special status by India is in violation of the Security Council resolutions, reiterating only that the UN chief is following the developments in the region with concern. The Indian government on Monday revoked Article 370 of the Constitution that gave special status to Jammu and Kashmir and bifurcated the state into two Union Territories — Jammu and Kashmir, and Ladakh.

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Investing for short-term financial goals requires different investment strategies than those required for attaining long-term financial goals. Short-term investments of up to 3 years need greater emphasis on capital protection than generating higher returns, given that shorter investment horizons have lesser time to recover losses from market corrections (if any). Let’s look at 5 short-term investment options with higher capital protection, liquidity and income certainty features.

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UN General Assembly President Maria Fernanda Espinosa has expressed condolences at the demise of India’s former External Affairs Minister Sushma Swaraj, describing her as an “extraordinary” woman and leader who devoted her life to public service. Swaraj passed away at the All India Institute of Medical Sciences (AIIMS) in New Delhi on Tuesday night after suffering a cardiac arrest. The senior BJP leader was 67. “Saddened by the news of the passing of @SushmaSwaraj, an extraordinary woman & leader who devoted her life to public service.

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The Congress party on Tuesday night deplored the ‘unilateral, brazen and totally undemocratic’ manner in which Article 370 of the Constitution was revoked from Jammu and Kashmir and the state was bifurcated by the Modi government into two Union Territories. At a meeting of the Congress Working Committee, the highest decision-making body of the party, the grand old party accused the BJP of violating constitutional law, the states’ rights, parliamentary procedure and democratic governance.

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The headline indices Sensex and Nifty are trading higher ahead of the RBI Monetary Policy decision today. The Sensex is up 60 points to 37,031.37 while the Nifty is trading above the 10,950-mark, even as the street gears up for a 25 bps rate cut. Yes Bank, Powergrid, IndusInd Bank, Heromotocorp are among the biggest gainers jumping up to 6%. A look at LIVE Sensex heatmap.

The BJP government’s decision to scrap Article 370 will bring more jobs to Kashmir as the move will drive investment in all sectors and industries, a hoteliers’ body said. While an overall fillip to the state’s economy is expected, the removal of Article 370 will also uplift an otherwise bogged down state due to lack of concrete steps in the past, Gurbaxish Singh Kohli, President, Hotel and Restaurant Association of Western India (HRAWI) & Vice President, Federation of Hotel & Restaurant Associations of India (FHRAI), said in a statement. The bill to abolish Article 370, which conferred special status to Jammu and Kashmir, was passed in Rajya Sabha on Monday. 

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Gold prices edged up on Wednesday as the ongoing trade tensions between the United States and China continued to boost the appeal of safe-haven assets. Spot gold rose 0.2% to $1,476.91 per ounce as of 0114 GMT. On Monday, gold surged 2% to its highest level in more than six years. U.S. gold futures rose 0.2% to $1,487.60 an ounce. Goldman Sachs said it no longer expects a trade deal to be struck before the 2020 U.S. presidential election, while Morgan Stanley warned that more tit-for-tat tariffs could tip the world economy into recession by the middle of next year.

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Asian shares steadied slightly on Wednesday as investors caught their breath from a searing week-long selloff, with steps taken by Chinese authorities to contain a sliding yuan helping calm fears of a full-blown Sino-U.S. trade and currency war. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.05% in early trade after tumbling 8.26% in the previous eight sessions. Japan’s Nikkei bucked the trend to slip 0.26%. On Wall Street on Tuesday, the S&P 500 gained 1.30% and MSCI’s broad gauge of stocks across the world rose 0.50%, its first gain in seven sessions.

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The Monetary Policy Committee of the Reserve Bank of India (RBI) will announce its resolution under the third bi-monthly Monetary Policy Statement for 2019-20 on Wednesday 2019. The decision will be made public by 11.45 am. The RBI has slashed rates three times so far in this calendar year. The analysts are of the view that the RBI would reduce key lending rates between 25-50 bps. The RBI is also expected to retain its accommodative stance in the August policy, and economists and treasurers believe its commentary will turn more dovish. 

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After opening higher, the headline indices Sensex and Nifty turned negative tracking global cues, and ahead of the RBI MPC decision today. The Sensex is down 60 points to 36,917.43 while the Nifty is trading above the 10,900-mark. Yes Bank, Powergrid, IndusInd Bank, Heromotocorp are among the biggest gainers. Tata Steel, VEDL, HDFC are among the biggest losers, shedding up to 2.5%. A look at LIVE heatmap.

The headline indices Sensex and Nifty opened marginally higher tracking global cues and ahead of the RBI monetary policy decision. The Sensex is up 50 points to 37,022 while the Nifty is trading above the 10,900-mark. Yes Bank, Powergrid, IndusInd Bank, Heromotocorp are among the biggest gainers. Tata Steel, VEDL, HDFC are among the biggest losers, shedding up to 2.5%. A look at LIVE Sensex heatmap.

Asian shares steadied slightly on Wednesday as investors caught their breath from a searing week-long selloff, with steps taken by Chinese authorities to contain a sliding yuan helping calm fears of a full-blown Sino-U.S. trade and currency war. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.05% in early trade after tumbling 8.26% in the previous eight sessions. Japan’s Nikkei bucked the trend to slip 0.26%. On Wall Street on Tuesday, the S&P 500 gained 1.30% and MSCI’s broad gauge of stocks across the world rose 0.50%, its first gain in seven sessions.

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Oil prices steadied on Wednesday after falling at the start of the session, with the potential for damage to the global economy and fuel demand from the intensifying Sino-U.S. trade dispute continuing to cast a shadow over the market. International benchmark Brent crude futures were at $58.97 a barrel by 0221 GMT, up 3 cents, or 0.05%, from their previous settlement and trading near seven-month lows.

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The government scrutiny on e-commerce marketplaces across sectors is set to get tighter as it aims to enhance the transparency between the marketplaces and sellers and strengthen consumer rights in online shopping with the Consumer Protection Bill, 2019. The bill passed in the Rajya Sabha on Tuesday will replace the Consumer Protection Act, 1986. The e-commerce ‘consumer protection; guidelines issued recently by the department of consumer affairs will soon “be a part of the Consumer Protection Bill. Once the rules are finalised and even if the e-commerce policy is not final, these rules can be enforced and fine-tuned later when the final e-commerce policy is released,” Sachin Taparia, Founder, LocalCircles — the social community platform told Financial Express Online.

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Over the last few days, the sentiments have changed dramatically, both domestically and globally. The renewed US-China trade tensions have prompted a sharp fall in Yuan to record low levels, with the US administration retaliating with terming China as a currency manipulator. The global economic slowdown has become more pronounced, with trade war bringing back the risk of a currency war. India too has been bracing with weak economic conditions. Yesterday’s political developments have further led to significant volatility in the financial markets.

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Rising costs and falling realisations hit the Indian information technology industry hard in the last quarter, with almost all IT firms missing Q1 earnings expectations, barring Infosys, which barely met the street estimates, according to a report. While TCS and Infosys had robust revenue growth during the period, Wipro and Tech Mahindra saw a deceleration in growth. Increase in cost of visa applications pulled down earnings across the board, Kotak Institutional Equities said in the research report.

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Reliance Industries Ltd has signed a new pact with its long-time partner BP Plc to sell retail fuel such as petrol and diesel across the country, building on the Mukesh Ambani firm’s existing 1,400 retail fuel outlets. The new joint venture between RIL and BP aims to grow rapidly to a total of 5,500 sites over the next five years, RIL said in a statement. As per the terms of the agreement, Reliance Industries will hold a 51% stake in the new joint venture, while BP will hold the remaining 49%. Notably, the latest joint venture will also include RIL’s aviation fuel business, which currently operates at over 30 airports across India, providing participation in this rapidly-growing market.

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