Stock Market Highlights: Sensex and Nifty rebounded in the afternoon trade on Tuesday, backed by a rally in bluechip stocks. The Sensex closed 34 points higher at 36,616.81, while the Nifty closed below the 10,950-mark. IndusInd Bank shares closed 2.5% higher at Rs 1,539.50 on BSE, while Heromotocorp shares closed 3.2% higher at Rs 2,870.25, to energe among the biggest Sensex gainers. Tata Motors, Coal India shed more than 2.6% each to end up as the biggest losers in the 30-share index.
Earlier, US Stocks after turning in a lackluster performance early in the session, moved mostly higher over the course of the trading day on Monday. With the upward move, the major averages reached their best closing levels in two months, Angel Broking said in a note. The Dow was up by 0.7 percent to 25,239 while the Nasdaq surged by 1.2 percent to 7,347. We bring to you LIVE updates.
Highlights
Sensex and Nifty rebounded in the afternoon trade on Tuesday, backed by a rally in bluechip stocks. The Sensex closed 34 points higher at 36,616.81, while the Nifty closed below the 10,950-mark. IndusInd Bank shares closed 2.5% higher at Rs 1,539.50 on BSE, while Heromotocorp shares closed 3.2% higher at Rs 2,870.25, to energe among the biggest Sensex gainers. A look at LIVE Sensex heatmap.
The revenue department will put in place within two years a mechanism to ensure that all returns are processed within 24 hours and refunds issued simultaneously, an official said. The government has already sanctioned Rs 4,200 crore last month for upgradation of information technology infrastructure of Central Board of Direct Taxes (CBDT) for processing returns, refunds, faceless scrutiny and verification. Revenue Secretary Ajay Bhushan Pandey said currently refunds are processed online in an automated manner.
Also read: Income Tax refunds in 24 hours; here’s how much you will have to wait before it becomes reality
OYO Hotels and Homes today announced a 3.5x growth in its operating revenue for India business to Rs 416 crore in FY18 from Rs 120 crore in the preceding fiscal year, the company said. OYO attributed the growth to “notable increase” in exclusive room supply, increase in stayed room nights by 2x and consistent margin expansion. Its revenue estimates for the current fiscal year is more than Rs 1,400 crore. The company said it helps improve the occupancy of hotels it partners with from 25% to 65% on an average. “Margin expansion and a high degree of operating leverage in the business model has resulted in more than 50% improvement in economics with the losses as a % of realised value coming down from 44.5% in FY 2016-17 to 20.3% in FY 2017-18,” the company added.
Read more: OYO India eyes Rs 1,400 cr revenue in FY19 after logging Rs 416 crore in last fiscal year
The Union Budget 2019, presented by FM Piyush Goyal on 01st Feb 2019, was a mix of some focused economics and some smart political moves. The budget has identified highly-focused stakeholders, including the vast urban and semi-urban middle class, the farmer, MSMEs and the real estate sector at large. Each of these stakeholders represent not only a vast market and a vast political voter base but also a very strong employment creation potential. Let us see what the budget means to the common man.
Also read: Budget 2019: Personal finance and tax implications of Interim Budget for common man
Suzlon Energy shares crashed on Tuesday, following which Suzlon Energy issued a clarification to exchanges saying that the company is regular in servicing its debt obligations towards banks for the month of January 2019 and any rumours about the company are baseless. Suzlon Energy shares crashed more than 40% to hit the day's low at Rs 2.70 in the afternoon trade. "The rumours about the Company are baseless and we appeal to all the investors and stakeholders to not to believe the same. We are currently under silent period for declaration of financial results for the quarter ended December 2018 and hence cannot comment further; however wish to submit that the Company is committed towards compliance of the Listing Regulations and would ensure necessary disclosures as and when applicable," Suzlon Energy said in a statement to the stock exchange.
Amid speculation over the future of Tata Motors' Nano, the company in January did not produce nor sell even a single unit of the small car, which was once dubbed as the 'people's car'. Recently, company officials had hinted that production and sales of the Nano would stop from April 2020 as Tata Motors has no plans to invest further on Ratan Tata's dream car to meet strict emission norm under BS-VI and other upcoming safety regulations. According to a regulatory filing, Tata Motors said zero unit of Nano was produced in January this year as against 83 units in the same month last year. Similarly, there were no sales of Nano in the domestic market last month as compared to 62 units in January 2018. (PTI reported)
The National Company Law Appellate Tribunal (NCLAT) has asked the government to provide a list of IL&FS group companies along with their categorisation based on their respective financial positions to pay their debt. The government had Monday submitted the debt resolution plan for crisis-hit IL&FS to the NCLAT and also suggested the name of retired Supreme Court judge Justice D K Jain to supervise the entire process. The entire resolution process would be based on the principles enunciated in the Insolvency and Bankruptcy Code. (PTI reported)
Customers of Alibaba-backed Paytm, looking to invest in SIPs through its mutual fund (MF) investments platform Paytm Money will now have an option to start to their SIPs and pay the investment amount later under its new service Register SIP Now, Pay Later. Paytm Money will send the SIP for registration to the asset management company (AMC) after the first successful payment for SIP in the MF scheme is made, the company said in a blog. “With this new feature investors who wanted to invest via SIPs, but didn’t have funds at the time of registering, can now choose to make the payment when they have the required funds,” said Paytm Money whole-time director Pravin Jadhav in a statement.
Read full story here: Now sign up for mutual fund SIPs on Paytm Money without paying upfront
Even as fugitive Indian tycoon Vijay Mallya’s extradition back to India nears, government has another good news in store. Switzerland is set to transfer details of the Indian account holders in HSBC (Suisse), The Indian Express reported. The account holders have received a communication from the Swiss Federal Tax Administration (FTA) to provide their written consent and a Swiss address to receive notices, the report added. Nearly six weeks back, FTA sent communication to the individual Indian account holders that the Indian request for banking details meets the requirements specified in the DTA (double taxation agreement) signed by the two countries.
Read full story here: Win for government in war on black money as Switzerland set to share HSBC account details
Shares of Anil Ambani-led Reliance Communications extended their crash on Tuesday, after the firm filed for insolvency on Friday. RCom share price plunged by more than 26% to Rs 7. in the morning trade. Notably, in a stock exchange filing, RCom said on Friday that its lenders had not received any proceeds from asset monetization plans, and that its overall debt resolution process had not made any progress. Shares of Reliance Communications ended nearly 35% lower. Few group shares too tumbled, with Reliance Power Ltd plunging 13.74% and Reliance Naval and Engineering Ltd falling 16.46% on the BSE. Heavy selling was also seen in other group shares Monday. "RCom board of directors decides upon implementation of debt resolution plans through NCLT framework," the company said in a statement Friday. It is estimated that RCom has been reeling under debt of over Rs 46,000 crore, according to a PTI report.
After turning choppy--Sensex and Nifty-- rebounded in the afternoon trade on Tuesday. The Sensex is up 73 points to 36,666.25, while the Nifty is nearing the 10,950-mark. IndusInd Bank shares zoomed by more than 3% to Rs 1,549.50 on NSE. M&M shares zoomed by more than 2.4% to Rs 690.50, to emerge among the biggest Sensex gainers. Tata Motors shares slumped more than 2.7% to Rs 175.25, while Tata Steel shares tanked more than 1.5% to Rs 468.50, to emerge among the biggest losers in the Sensex. A look at LIVE Sensex heatmap.
After opening mildly higher, the domestic stock markets --Sensex and Nifty-- turned choppy in the late morning trade. The Sensex is down 15 points to 36,568.05, while the Nifty is nearing the 10,900-mark. Tata Motors shares slumped more than 2.7% to Rs 175.25, while Tata Steel shares tanked more than 1.5% to Rs 468.50, to emerge among the biggest losers in the Sensex. A look at LIVE Sensex heatmap.
Shares of Jubbulant Foodworks, exlusive India frachisee of Domino's Pizza slumped in trade on Tuesday morning, after the firm was fined by National Anti-Profiteering Authority (NAA). Jubilant Foodworks shares lost more than 5% to Rs 1,322.60 in the morning trade. The firm was fined Rs 41.42 crore for not passing on the benefit of a reduction in the goods and services tax (GST) to consumers. The company has been asked to deposit the amount with the government. According to a CNBC Tv18 report, Jubilant Foodworks has replied to NAA order saying that it has passed on benefits and loss due to input credit withdrawal was higher than price hike taken & that is not taken into account by NAA. The firm will explore all possible options after studying the order.
The rupee appreciated by 13 paise to 71.67 against the US dollar in opening trade Tuesday, driven by positive opening in domestic equities and weakening of the greenback in overseas markets. Forex dealers said investors were cautious ahead RBI's Monetary Policy Committee outcome scheduled for February 7. However, selling of the American currency by exporters supported the rupee. The rupee opened strong at 71.72 at the interbank forex market then gained further ground to touch 71.67 per dollar amid positive opening in domestic equities, displaying gains of the 13 paise against the greenback. On Monday, the rupee had plunged by 55 paise to close at 71.80 against the US dollar. Forex traders said, sustained foreign fund outflows and surging crude oil prices restricted the rupee up move. (From PTI)
Shares of India's major telecom firm Bharti Airtel slumped on Tuesday, after global rating agency Moody's downgraded its senior unsecured notes to the speculative grade. Bharti AIrtel share price plunged by more than 4.4% to Rs 292.85. "The downgrade reflects uncertainty as to whether or not the company’s profitability, cash flow situation and debt levels can improve sustainably and materially, given the competitive dynamics in the Indian telecom market," Moody's Investors Service said in a note. Notably, Moody’s has downgraded the senior unsecured rating of Bharti Airtel to 'Ba1' from 'Baa3' earlier.
The domestic stock markets --Sensex and Nifty--opened higher tracking positive global cues. The Sensex is up about 60 points to 36,645.31, while the Nifty is trading above the 10,900-mark. Bharti Airtel shares tanked by more than 4.5% to Rs 292.85, while Vedanta shares plunged by more than 2.5% to Rs 157.25. A look at LIVE Sensex heatmap.
Wall Street gained on Monday, with all three major indexes closing near session highs as sustained optimism on the prospects for U.S.-China trade relations propelled technology shares. The S&P 500 index and the Nasdaq both closed above their 100-day moving averages for the first time since October.
Shares of Apple Inc and Microsoft Corp each rose 2.7 percent and were the top boosts to the benchmark S&P 500 index and the Nasdaq. Apple and Microsoft's gains helped S&P 500 technology stocks gain 1.6 percent, the greatest rise among the benchmark index's major sectors. High expectations for Alphabet Inc's quarterly results, announced after the bell, were likely a contributor to tech and internet stocks' advance during market hours, said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.
Asian stocks extended their gains on Tuesday as overnight strength on Wall Street and the Federal Reserve's dovish turn underpinned risk appetite, while the dollar held firm on last week's upbeat U.S. data. MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.4 percent and hovered near its four-month high marked on Friday. Japan's Nikkei average was flat on the day but at its highest level in seven weeks. Australian shares jumped 2.5 percent, with long-battered financials surging on short-covering after a special government-appointed inquiry excoriated Australia's financial sector for misconduct but left the structure of the country's powerful banks in place. (Reuters reported)
nvestors are losing appetite for highly leveraged companies, as share prices of companies with high promoter pledging continue to fall amid concerns over draining of funding options and increasing borrowing costs, according to brokerages. Recently, investors started selling companies with high-pledge shareholding after the promoter of the Essel Group had failed to bring in fresh shares as collateral to make up for the crash in stock prices.
Read more: Share prices of companies with high promoter pledging continue to fall
Indian fund houses have exposure of over Rs 8,500 crore to Dewan Housing Finance Corporation (DHFL) group companies. Of the total amount, around Rs 7,100 crore is invested in debt papers of DHFL by around 292 debt schemes, while the remaining is invested in Wadhawan Global Capital, Avanse Financial Services and Aadhar Housing Finance. UTI Mutual Fund has investments of around Rs 2,144 crore in various group companies of DHFL Group across 51 debt schemes. Reliance Mutual fund has an exposure of `1,488 crore in DHFL.
Also read: MFs’ exposure to DHFL group
Reliance Communications Ltd on Monday moved the National Company Law Appellate Tribunal (NCLAT) to withdraw its appeal in a dispute with Ericsson as it seeks to pursue a debt resolution plan through the country’s bankruptcy court. Mumbai-based RCom, controlled by Anil Ambani, said on Friday it will seek fast-track resolution of its debt through the National Company Law Tribunal (NCLT), the country’s court that deals with bankruptcy cases. The NCLAT on Monday asked Ericsson to file a response by Feb. 8 and scheduled a hearing for Feb. 12.
Read full story here: RCom moves appellate court to withdraw Ericsson appeal