Share Market Highlights: Sensex closes 425 points down, Nifty below 11,000; Tata Motors, Vedanta shares plunge

Finance Minister Piyush Goyal Friday said the government may provide more funds for the world’s biggest health care scheme — Ayushman Bharat — next year. In the last four months of its launch, the scheme has already benefited over 10 lakh people, he said while speaking at the sixth Global Fund Replenishment organised by Ministry of Health here. “The government has already provided half a billion dollar funding for the programme. We expect to provide much more funds in the next year,” he said.

Finance Minister Piyush Goyal Friday said the government may provide more funds for the world’s biggest health care scheme — Ayushman Bharat — next year. In the last four months of its launch, the scheme has already benefited over 10 lakh people, he said while speaking at the sixth Global Fund Replenishment organised by Ministry of Health here. “The government has already provided half a billion dollar funding for the programme. We expect to provide much more funds in the next year,” he said.

Also read: More money for Ayushman Bharat: Govt may increase funding for Modi’s scheme next year, says Piyush Goyal

"A few NBFCs, substantially L&T Finance and certain entities of Edelweiss Group, have invoked pledge of listed shares of Reliance Group and made open market sales of the value of approx. Rs. 400 crore from 4.2.2019 to 7.2.2019. The illegal, motivated and wholly unjustified action by the above 2 groups has precipitated a fall of Rs. 13,000 crore, an unprecedented nearly 55%, in market capitalisation of Reliance Group overjust these 4 short days, causing substantial losses to 72 lakh institutional and retail shareholders, and harming the interests of all stakeholders," ADAG Group said in a media release. 

Asian stocks lost ground on Friday as investors worried about a broadening global economic slowdown, with sentiment not helped by the absence of any positive signs for a resolution in the U.S.-China trade row. Safe-haven government bonds benefited in the face of growing anxiety over the global outlook, with German and Japanese debt yields falling to their lowest in over two years. Spreadbetters expected European stocks to open mixed, with Britain’s FTSE inching up 0.1 percent, Germany’s DAX retreating 0.05 percent and France’s CAC starting flat.

Also read: Global stocks: Asia stocks fall as global economic slowdown, US-China trade war haut markets

The Tamil Nadu government Friday presented the state budget for financial year 2019-20 with no new taxes and said the revenue deficit will reduce in the coming year. In the budget presented by Deputy Chief Minister O Panneerselvam, who holds the finance portfolio, the government proposed no new taxes but said the revenue deficit was estimated to be around Rs 14,300 crore.

Shares of Anil Dhirubhai Ambani Group rebounded Friday after crashing since the last few days on report of Reliance Communications saying it will move the insolvency tribunal for bankruptcy protection. In the early trade, Reliance Power jumped 13 per cent followed by Reliance Communications and Reliance Infra surging 4 to 5 percent. Reliance Naval also gained more than 5 percent. 

The domestic stock markets --Sensex and Nifty--extended losses in the late morning trade on Friday morning, tracking weak global cues. The Sensex is down about 219 points to 36,746.92, while the Nifty is trading above the 11,000-level. Tata Motors shares are down more than 18.4% to Rs 149.20, after the firm reported record Q3 loss in the latest quarter. A look at LIVE Sensex heatmap.

With an eye on elections, the Modi government in budget 2019 — its last for this term — announced several fiscal sops such as income support scheme for farmers, raised income tax ceiling, exemptions for real estate sector and others. However, the promises and grand announcements beg an answer to the obvious question: where would the money come from? Amartya Lahiri, Professor of Economics, Royal Bank research professor and Johal Chair, University of British Columbia, Canada, in his article published in The Indian Express, pointed out towards the ambitious revenue targets of the government in the budget 2019.

Also read: Modi’s war on inflation may hurt his own ability to fulfil budget promises

Taking stock of the reported results, CLSA said that JLR's EBITDA margin at 7.8% is 200 basis points below estimate. The margin has declined on quarter, despite higher volume. The demand outlook has worsened in both China as well as India, noted the firm. According to CLSA, the stock will remain weak, given insufficient near-term product triggers. CLSA has a target stock price of Rs 150 with a sell rating on the shares. Axis Capital noted that it would be difficult to bottom fish in a company where the P&L see,s to be near trough. The firm has a hold rating on the stock, with a target of Rs 187. Axis Capital noted that a constructive view on Tata Motors will emerge once the China volumes stabilise and Brexit concerns are behind us.

The rupee Friday appreciated by 13 paise to 71.32 against the US dollar in early trade after the Reserve Bank of India cut the repo rate and changed its policy stance to 'neutral'. Force traders said the surprise rate cut by the RBI, weakening of the US dollar as against other currencies overseas and easing crude prices supported the local unit. At the Interbank Foreign Exchange, the rupee opened higher at 71.37 then gained further ground to touch 71.32 against the US dollar, showing a gain of 13 paise over its previous closing. (PTI reported)

Shares of India's auto major Tata Motors slumped in trade on Friday morning, after the firm reported record loss in the October-December period. Tata Motors share price plunged by nearly 30% to Rs 129 in the morning trade on NSE.  The company’s consolidated net sales during the period increased 4% year-on-year at Rs 77,000 crore, but was a tad below Bloomberg estimates. Ebitda declined 24% at Rs 6,522 crore, again below estimates, while margins stood at 8.5% against 11% in the same period last year.

The domestic stock markets --Sensex and Nifty--opened lower on Friday morning, tracking weak global cues. The Sensex is down about 150 points to 36,820.47, while the Nifty is trading above the 11,000-level. Tata Motors shares crashed by more than 29% to hit the day's low at Rs 129 in the morning trade, after the firm reported record quarterly loss of Rs 27,000 crore. A look at LIVE Sensex heatmap.

The company’s consolidated net sales during the period increased 4% year-on-year at Rs 77,000 crore, but was a tad below Bloomberg estimates. Ebitda declined 24% at Rs 6,522 crore, again below estimates, while margins stood at 8.5% against 11% in the same period last year. Ralf Speth, JLR chief executive, said “Jaguar Land Rover reported strong third quarter sales in the UK and North America, but our overall performance continued to be impacted by challenging market conditions in China. 

Also read:  Tata Motors posts record Rs 27,000 crore loss on JLR woes

President Donald Trump blasted Democrats on Thursday as they prepared to launch a barrage of investigations into his Russia ties, real estate business and long-hidden taxes. Empowered by their election takeover of the House of Representatives, Democrats were to hold two hearings Thursday focused on Trump’s tax returns and his controversial policy to separate immigrant children from their parents at the US-Mexico border. Trump’s acting attorney general Matthew Whitaker is scheduled to appear before the House Judiciary Committee on Friday.

Also read: Donald Trump lashes out as Democrats open probes into his taxes, Russia ties

Asian stocks slipped on Friday as investors fretted about a broadening global economic slowdown, with sentiment not helped by the absence of any positive signs for a resolution in the U.S.-China trade row. Safe-haven government bonds benefited in the face of growing anxiety over the global outlook, with German long-term debt yields falling to their lowest in over two years. MSCI’s broadest index of Asia-Pacific shares outside Japan shed 0.3 percent, easing back from a four-month peak touched the previous day. The index stood little changed on the week. Japan’s Nikkei fell 1.2 percent.

Also read: Global markets: Asia stocks slip on renewed anxiety over trade, growth outlook

US stocks sank over 1 percent to session lows on Thursday on fears that the United States and China would not be able to reach a trade deal with less than a month left in their fragile truce, adding to worries about a slowdown in global growth. A meeting between US President Donald Trump and Chinese President Xi Jinping was unlikely to take place by March 2, the deadline set by the two countries for reaching a trade deal, two US administration officials and a source said.

Also read: Wall Street tumbles on growth worries, trade fears