Share market Highlights: Sensex and Nifty are trading ended Friday’s session with mild gains on Friday amid mixed macro cues like weakening rupee and easing crude prices. Sensex closed the day at 35,962.93, while the broader Nifty closed at 10,805.45. Bharti Airtel share price closed 5.2% higher at Rs 318.45, after Telecom Disputes Settlement and Appellate Tribunal (TDSAT) quashed provisions related to predatory pricing and discounted tariffs. Yes Bank shares closed 2.8% higher at Rs 179.70.
Earlier, benchmark equity indices opened on a cautious note amid negative signals from other Asian markets. Investors were also on edge ahead of RBI central board meeting under new Governor Shaktikanta Das, traders told PTI. The meeting will review the progress with respect of some of the decisions taken in the last meet on November 19. Among other things, the crucial board meeting is expected to take a stock of micro, small and medium enterprises (MSMEs), which is under stress due to demonetisation and implementation of the goods and services tax (GST). We bring to you live updates.
"The SC dismissing the Rafale PILs landmark judgement. It takes the wind out of the Oppositions main allegation against Mr Modi. The people of Rajasthan, Madhya Pradesh and Chhattisgarh will feel cheated that they were misled by false allegations and as a result are going to vote aggressively for the BJP in the coming Lok Sabha elections next year. This reduces uncertainty for the 2019 elections and the markets are likely to make a new high even before the elections,” VK Sharma Head PCG & Capital Markets Strategy, HDFC Securities said.
On his third day Shaktikanta Das, the new governor of Reserve Bank of India (RBI), chaired the central board meeting, in which no decision was taken on the contentious issue of the governance framework. The centre wants the RBI board, which includes two government nominees, to have more say in the decision-making process. Currently, the RBI board plays an advisory role and the decision-making power lies with the governor and the deputies. The board, meanwhile, also reviewed the current economic situation, liquidity issues and credit flow among others.
Also read: RBI board steers clear of taking decision on diluting governor’s power, for now
Sensex and Nifty are trading ended Friday's session with mild gains on Friday amid mixed macro cues like weakening rupee and easing crude prices. Sensex closed the day at 35,962.93, while the broader Nifty closed at 10,805.45. Bharti Airtel share price closed 5.2% higher at Rs 318.45, after Telecom Disputes Settlement and Appellate Tribunal (TDSAT) quashed provisions related to predatory pricing and discounted tariffs. Yes Bank shares closed 2.8% higher at Rs 179.70. A look at live heatmap.
Finance Minister Arun Jaitley on Friday said that the government is not examining the option of using powers of RBI board to override the governor of the Central Bank. The expert panel to recommend level of RBI reserves should include other connected matters too, Arun Jaitley also said in reply to lawmakers’ questions in the Parliament. Earlier last month, there were reports that the government may invoke Section 7 of RBI Act after the rift between the RBI and the government widened on several issues including sharing of surplus capital. The provision in the RBI Act empowers the government to issue directions to the RBI.
Also read: FinMin clears air! Arun Jaitley says government not examining option of using RBI board powers
Shares of Bharti Airtel and Vodafone Idea surged up to 10% on Freiday, a day after the telecom tribunal TDSAT struck down Trai's new rules on predatory pricing saying they lacked required transparency. Shares of Bharti Airtel increased 9.97 per cent to Rs 332.9, while Vodafone Idea gained 8.02 per cent to Rs 37.7 on the BSE, during intra-day trade. Similar movement was seen on the NSE, wherein Bharti Airtel climbed 9.99 per cent to Rs 333.4, and Vodafone Idea advanced 8.02 per cent to Rs 37.7.
After capital market regulator SEBI allowed side-pocketing in mutual funds, experts say that segregation of illiquid and troubled assets will benefit the investors, and ensure that the funds do not face undue redemption pressures due to the stressed asset. Notably, the latest regulation will allow the fund houses to isolate risky assets from the rest of their holdings and cap redemption.“This side pocketing ensures that there is a clear separation of liquid and illiquid assets. Accordingly, side pocketed assets are not allowed for subscription or redemption.” Basavaraj Tonagatti, a SEBI-registered Investment Adviser said in a note to FE Online. We take a closer look.
Read full story here: Side-pocketing in mutual funds: What it means, how it benefits investors; key things to know
Shares of healthcare major Fortis Healthcare Ltd plunged in trade on Friday morning, after Supreme Court put its sale on hold. Fortis Healthcare share price plunged by more than 14% to Rs 130.20. The development will come as a big negative for Fortis shareholders, as it had earlier been sold off to IHH, in what was seen as a good deal for them. "It is very unfortunate, as Singh brothers hold only a part of the firm, and if anything, they should be penalised. Thier share should be conficated and nothing should go from the sale proceeds to them. To stop the sale at this stage, when the open offer has just started, and IHH has nearly taken control in unfortunate, "Shriram Subramanian from Ingovern told the channel.
Also read: Fortis Healthcare share price plunges 14% after Supreme Court puts sale on hold
Shares of healthcare major Fortis Healthcare Ltd plunged in trade on Friday morning, after Supreme Court put its sale on hold. Fortis Healthcare share price plunged by more than 14% to Rs 130.20. Further, the apex court has issued notice to Singh Brothers. Daiichi had moved Supreme Court in a contempt plea against Singh Brothers, CNBC TV18 reported citing agencies.
EU leaders agreed Thursday to step up preparations for Britain crashing out of the bloc next March without a deal, with the European Commission to publish a plan next week. At a summit in Brussels, the leaders of the 27 EU member states called for work on “contingency preparedness” — Brussels jargon for no-deal planning — to be intensified. Commission President Jean-Claude Juncker said he would publish no-deal planning details on December 19, urging Britain to clarify what it wants from the EU.
Also read: No-deal Brexit: EU steps up planning for Britain crashing out of bloc
Shares of IT major Infosys rallied on Friday morning, after the firm announced the acquisition of Hitachi arm. Infosys share price gained by more than 1.3% on Friday morning to hit the day's high at Rs 707. Infosys has announced to form a joint venture with Japanese conglomerates Hitachi Ltd, Panasonic Corp and Pasona Inc. As per the terms of the deal, Infosys has agreed to buy 81% equity stake in Hitachi Procurement Service Co Ltd, which is a fully owned arm of Hitachi Ltd and is into the business of handling indirect materials purchasing functions for the Hitachi group. Pasona, Panasonic and Hitachi will own a minority stake in the JV. Financial details, however, have not been disclosed.
Also read: Infosys acquires Hitachi arm; to form JV with Japan’s Panasonic, Pasona for these business services
Launching a veiled attack on the Modi government, former Reserve Bank of India (RBI) Governor on Friday said that Indian economy is not creating enough jobs for its people and more needs to be done on macro stability and fiscal deficit front. There is no improvement in India’s fiscal situation in the last 5 years, Raghuram Rajan said at an event broadcast by CNBC TV18. India needs to enhance its GDP growth beyond 7 percent to boost economy, he said while presenting University of Chicago’s Economic Agenda for 5 years. Adding further, the professor of finance at Chicago Booth said that India’s exports are not growing despite higher quantities of cheap labour, and a fair amount of agri distress can be seen.
Read full story here: Raghuram Rajan’s veiled attack on Modi govt! India not creating enough jobs; no improvement in fisc
The rupee Friday depreciated by 14 paise to 71.82 in early trade on the forex market as the American currency strengthened, while the domestic equity market opened on a weak note. Forex traders told PTI that strengthening of the US dollar against some currencies overseas and caution ahead of RBI central board meeting under new Governor Shaktikanta Das, weighed on the local unit. At the Interbank Foreign Exchange, the rupee opened on a weak note at 71.80 against the US dollar, then lost further ground and fell to 71.82 showing a decline of 14 paise over it's previous closing. On Thursday the rupee appreciated by 33 paise to 71.68 per US dollar.
Shares of private sector lender gaine by more than 1% on Friday morning, after opening sharply lower. Yes Bank share price gained more than 1% to Rs 179.80 this morning. Independent Director, Brahm Dutt who heads the firm CEO Search & Selection Committee is likely to be appointed part-time Non-executive Chairman, CNBC TV18 reported citing sources as saying. Yesterday, the firm said that new chief executive officer (CEO) will be appointed within the Reserve Bank of India’s (RBI’s) stipulated deadline of February 1 next year. However, the private lender didn’t disclose any further details leading to its shares falling over 6% intra-day. “The ‘Search & Selection Committee’ (“SSC”) and the Board of Directors are on track to complete the said process within the stipulated timelines of the Reserve Bank of India”, Yes Bank said in an exchange filing.
Also read: Yes Bank board meet: Private lender says on track to find new CEO within RBI deadline; shares fall 6%
Despite the recent state election results going against PM Narendra Modi’s party, Rakesh Jhunjhunwala said that the outcome is actually good for the BJP, and he would still bet on a Modi win in 2019 Lok Sabha elections. Decoding the recent state election results, he said that despite 15 years of incumbency, BJP managed to have a real identical vote share in the states. Further, in case of Rajasthan there has been a history of change of government every 5 years, he observed. “The BJP has not lost as badly as Congress lost in 2013. I would not take this election result to be the final guide to 2019 election result. I will still bet my money on a BJP government led by Mr Modi,” Rakesh Jhunjhunwala said at an event. He noted that BJP had a stellar win in 2003, and in 2004 general election they lost badly.
Also read: Rakesh Jhunjhunwala is ready to bet on Modi’s win in 2019 elections; here’s what he said
The domestic stock markets- Sensex and Nifty- opened subdued, tracking weak global cues, after major Asian indices traded lower and global markets remained muted. The 30-share Sensex opened flat, and soon lost 100 points in the morning trade to 35,813.85. The Nifty was trading below 10,800-levels. Shares of Sunil Mittal-led Bharti Airtel gained as much as 2.8% to Rs 311.40. Yes Bank shares slumped more than 2% to Rs 171. A look at Sensex heat map.
The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on Thursday set aside a regulation brought by the Telecom Regulatory Authority of India in February which prohibited incumbent operators from providing segmented offers (discounts which are not part of tariff package) to their high-Arpu subscribers. The tribunal also struck down the definition of predatory pricing, which the regulator had brought through the same regulation which prevented operators having 30% or more subscriber and revenue market share from providing below-cost tariffs but newer operators were free to offer such tariffs till they reached the threshold mark.
Read full story here: Cheap calls: Predatory pricing by telcos junked by TDSAT
Asian shares were on the defensive on Friday as investors kept a wary eye on economic tensions between Washington and Beijing while the euro was steady after the European Central Bank halted new bond purchases as expected. MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.3 percent while Japan’s Nikkei dropped 0.4 percent. On Wall Street, the S&P 500 ticked down 0.02 percent to 2,650, not far from its 6-1/2-month closing low of 2,633 touched on Nov 23, while the Nasdaq Composite dropped 0.39 percent.
Also read: Asian shares wobbly, euro steady after ECB ends QE
The S&P 500 finished little changed after a volatile session on Thursday, as investors continued to be spooked by uncertainty on both domestic and international issues, driving up bids for defensive shares while financials and consumer discretionary stocks were the biggest drags. The Dow eked out a gain. The S&P oscillated between positive and negative territory after failing to sustain an opening rally spurred by hopes for progress in U.S.-China trade negotiations. A Chinese Commerce Ministry spokesman had said Washington and Beijing were in close contact over trade.
Also read: Wall Street ends flat as nervous investors flock to defensive shares
Oil prices eased on Friday after rising over 2 percent the day before, but were supported by hopes the market will tighten more quickly than some had expected in the wake of supply cuts from major producers. The output curbs by the Organisation of the Petroleum Exporting Countries and some non-OPEC producers including Russia could help create a supply deficit by the second quarter of next year, the International Energy Agency said on Thursday.
Also read: Crude oil prices dip, but expectations of tightening supply support
The dollar firmed against most major counterparts on Friday as investor focus shifted to an expected U.S. interest rate hike next week, although gains are likely to be capped on greater uncertainty about next year’s policy outlook. The greenback found broad support as the euro and pound came under pressure, after downbeat comments from the European Central Bank president about the outlook for the euro zone and renewed concerns about a hard Brexit.
Also read: US dollar firmer as investor focus shifts to Fed