Share market highlights: Sensex soars 646 points, Nifty above 11,300; banks, financials rally

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Updated:Oct 09, 2019 3:58:20 pm

Share market highlights: The headline indices Sensex and Nifty snapped a 6-day losing streak to soar higher, led by a rally in banking heavyweights amid bullish sentiments.

sensex, bse, nseThe Sensex ended 646 points higher at 38,178, while the Nifty closed above 11,300.

Share market highlights: The headline indices Sensex and Nifty snapped a 6-day losing streak to soar higher, led by a rally in banking heavyweights amid bullish sentiments. The Sensex ended 646 points higher at 38,178, while the Nifty closed above 11,300. IndusInd Bank, Bharti Airtel, ICICI Bank were the top gainers, surging up to 5%. The sentiments got a boost after the Modi government announced a hike in dearness allowance by 5% to 17%. Union Minister Prakash Javdekar announced on a hike in dearness allowance to 17 percent from 12 percent, which is likely to benefit 50 lakh government employees and 62 lakh pensioners. According to current estimates, the move will cost the government exchequer total of Rs 16,000 crore. Meanwhile, Yes Bank shares on Wednesday fell about 10 per cent after the lender denied the reports about strategic investment by Microsoft Corporation and two other tech firms for likely stake sale. The denial came a couple of days after a report said that Microsoft is among the three firms that are in talks with the private sector lender for stake sale. Check the day’s highlights.

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Highlights

    15:58 (IST)09 Oct 2019
    BSE live: Sensex ends 646 points up, Nifty above 11,300; banks top gainers

    The headline indices Sensex and Nifty snapped a 6-day losing streak to soar higher, led by a rally in banking heavyweights amid bullish sentiments. The Sensex ended 646 points higher at 38,178, while the Nifty closed above 11,300. IndusInd Bank, Bharti Airtel, ICICI Bank were the top gainers, surging up to 5%. The sentiments got a boost after the Modi government announced a hike in dearness allowance by 5% to 17%. A look at LIVE Sensex heatmap.

    15:23 (IST)09 Oct 2019
    Parle exec tones down after corporate cuts; says move will cushion against slow sales

    While biscuit maker Parle has been harping on slowing sales of its five-rupee biscuits for some time now, Finance Minister Nirmala Sitharaman’s corporate tax cuts have brought in relief to Parle-G maker. The sluggish sales situation has also improved as demand has revived owing to Diwali festivities, Mayank Shah, senior category head, Parle Products told CNBC TV18 in an interview. Parle’s current effective tax rate stands over 30%, which is higher than the new effective tax rate of 25.17%. The company stands to benefit from the new regime and the announcement will provide a cushion to Parle which is allegedly reeling under a slowdown, the news channel reported citing Mayank Shah.

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    15:01 (IST)09 Oct 2019
    Good news for borrowers! Home loans, car loans to get cheaper as SBI, HDFC Bank reduce lending rates

    Soon after the Reserve Bank of India recently slashed its repo rate for the fifth time in a row, the nation’s largest bank – the State Bank of India – on Wednesday announced reduction in its MCLR by 10 bps across all tenors. With this, the bank’s one-year MCLR (Marginal Cost of Funds based Lending Rate) has come down to 8.05% per annum from 8.15% p.a. with effect from October 10, 2019, while the three-year MCLR has come down to 8.25% from 8.35% earlier. It may be noted that this is the sixth consecutive rate cut by SBI in FY 2019-20.

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    14:59 (IST)09 Oct 2019
    DA hike to cost the government Rs 16,000 crore

    According to the statement, the combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs. 15909.35 crore per annum and Rs. 10606.20 crore in the financial year 2019-20 (for a period of 08 months from July, 2019 to February, 2020). Around 49.93 lakh Central Government employees and 65.26 lakh pensioners will benefit from DA hike announced today. The additional financial implication on account of this increase in Dearness Allowance is estimated at Rs 8590.20 Crore per year; and Rs 5726.80 Crore in the current Financial Year of 2019-20 (for 8 months from July 2019 to February 2020)

    14:53 (IST)09 Oct 2019
    YES Bank share price falls 10% after lender denies reports of investment by Microsoft

    Yes Bank shares on Wednesday fell about 10 per cent after the lender denied the reports about strategic investment by Microsoft Corporation and two other tech firms for likely stake sale. The denial came a couple of days after a report said that Microsoft is among the three firms that are in talks with the private sector lender for stake sale. The stock of the private lender tumbled 9.98 per cent intraday to Rs 41.05 as compared the previous closing price of 45.60. The stock was the top laggard on both Sensex and Nifty. 

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    14:50 (IST)09 Oct 2019
    Central Government Employees DA increase: Modi Cabinet hikes Dearness Allowance by 5 per cent

    Central Government Employee Dearness Allowance (DA) increase: The Union Cabinet has decided to increase dearness allowance (DA) of central government employee by 5 per cent. The decision will benefit around 50 lakh central government employee. “DA for government employees increased by 5 %. Around 50 lakh central government employees and 62 lakh pensioners to be benefited,” Union Minister Prakash Javadekar said today.

    14:46 (IST)09 Oct 2019
    SBI savings account interest rate changed: Balance up to Rs 1 lakh to fetch less now

    The State Bank of India (SBI) has also announced a revision in the interest rate on savings bank deposits. The interest rate on savings bank deposits effective September 1, 2019, with balances up to Rs 1 lakh is 3.5 per cent. Going forward, from November 1, 2019, the interest rate on savings bank deposits with balances up to Rs 1 lakh will be 3.25 per cent. This, according to SBI, is in view of the adequate liquidity in the system.

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    14:37 (IST)09 Oct 2019
    BSE live: DA hike lifts sentiments, Sensex soars 450 points led by bank stocks

    The Sensex was up about 450 points to 37,982, while the Nifty was trading near the 11,250-mark, led by gains in banking heavyweights. IndusInd Bank, Bharti Airtel, ICICI Bank were among the biggest gainers, jumping up to 5%. A look at LIVE Sensex heatmap.

    13:34 (IST)09 Oct 2019
    Yes Bank share price plunges 10%

    Yes Bank shares on Wednesday fell about 10 per cent after the lender denied the reports about strategic investment by Microsoft Corporation and two other tech firms for likely stake sale. The denial came a couple of days after a report said that Microsoft is among the three firms that are in talks with the private sector lender for stake sale. The stock of the private lender tumbled 9.98 per cent intraday to Rs 41.05 as compared the previous closing price of 45.60. The stock was the top laggard on both NSE and BSE. “Not aware of the source, which resulted in the news item and as a matter of policy, the bank would not like to comment on such article,” YES Bank said in an exchange filing. YES Bank shares were trading at Rs 44.10, down 1.55 points, or 3.40 per cent on NSE at the time of reporting.

    12:54 (IST)09 Oct 2019
    Aurobindo Pharma recovers 5 per cent after company’s clarification on USFDA observations

    Shares of Aurobindo Pharma recovered over 5 per cent on Wednesday after the company clarified that none of the seven observations from the US health regulator for its Telangana unit were linked to data integrity. In a regulatory filing post market hours on Monday, Aurobindo Pharma said that it is “confident of addressing these issues within the stipulated timeline”.

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    12:42 (IST)09 Oct 2019
    Raining jobs: Employment in rural India bounces back, thanks to monsoon

    In a boost to sentiment, employment in India surged last month, led by a substantial pick up in new jobs in rural areas due to improved monsoon rains. However, the good news may be short-lived, as the September spike was due to bunching of jobs, and there could be a cooling off in subsequent months, the surveyor cautioned. “The increase in employment in September is almost entirely in rural India. This increase is likely the result of improved rainfall and a consequent sharp increase in kharif sowing in September,” Mahesh Vyas, MD and CEO, CMIE, told Financial Express Online. The overall kharif sowing in 2019 was marginally lower than it was in 2018. But, it was bunched in September and therefore, rural employment shot up in September 2019, Mahesh Vyas said.

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    12:23 (IST)09 Oct 2019
    BSE live: Sensex surges 280 points, Nifty above 11,200; IndusInd Bank, M&M top gainers

    Notwithstanding the flurry of bad news Sensex and Nifty swung into green on Wednesday afternoon, with the BSE benchmark surging over 250 points, led by gains in banking stocks. Sensex is up more than 300 points, while the Nifty is trading above the 11,200-mark. 

    11:58 (IST)09 Oct 2019
    IndiGo, D-Mart 2 best companies in India in last decade: Rakesh Jhunjhunwala

    Rakesh Jhunjhunwala said that the two greatest companies created in the last 10 years are IndiGo and D-Mart. “Look at D-Mart, people can’t believe the price at which he sells goods. The enterprise set up by an SSC pass gentleman (Radhakishan Damani), my close friend,” he said in an interview to ET Now, adding that if the firms differentiate, great companies can be created. With respect to IndiGo, Rakesh Jhunjhunwala said that it got planes at a great discount. Taking his own example of investing, he said that patience, technology, frugality, people and governance are the five attributes that he assesses before putting in money.

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    11:55 (IST)09 Oct 2019
    SBI lowers rates on non-repo-linked loans by 10 bps

    State Bank of India (SBI) on Wednesday announced reduction in its marginal cost of fund based lending (MCLR) rate by 10 basis points across all tenors, effective October 10. This is the sixth time that the country’s largest lender has cut its MCLR or minimum lending rate in the current financial year. The rate reduction is not applicable to the repo-linked loans. State Bank of India (SBI) on Wednesday announced reduction in its marginal cost of fund based lending (MCLR) rate by 10 basis points across all tenors, effective October 10. This is the sixth time that the country’s largest lender has cut its MCLR or minimum lending rate in the current financial year. The rate reduction is not applicable to the repo-linked loans.

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    11:40 (IST)09 Oct 2019
    Bajaj’s 2nd innings with scooters likely on October 16 with Urbanite electric scooter

    Bajaj Auto has sent us a promising teaser invite. The invite doesn't say what it is for though we believe, looking at the guest list, that the long overdue electric scooter launch is happening. Nitin Gadkari, the union minister for transport as well as Amitabh Kant, Niti Aayog CEO are the ones who will be present at this launch. Many a time, the Bajaj scooter has been spotted testing. While Urbanite is the name of the scooter sub-brand that is being floated around, we will only know all the details on October 16. Express Drives will be there to bring you all the live updates. What's more, watch out for our live coverage, including a Facebook live from the event.

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    11:28 (IST)09 Oct 2019
    Tata Motors should make a U-turn on Jaguar Land Rover

    Tata Motors is stretched too thin. The Jaguar Land Rover business it bought for $2.3 billion in 2008 is burning cash at the same time the Indian market is hurting. The parent Tata conglomerate would be smarter to keep its focus at home without the distraction of the British marques. It has been a brutal run for Tata Motors, whose shares have nearly halved over the past year. Both it's domestic and JLR-led overseas businesses recorded losses in the three months to end June, an unwelcome break from the past when one would typically ease pain in the other.

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    11:13 (IST)09 Oct 2019
    Air India Assets Holding eyes Rs 7,000 crore via NCDs

    Air India Assets Holding (AIAHL), a special purpose vehicle formed by the government of India to acquire the non-core assets of Air India (AIL) and its subsidiaries among other things, is set to hit the non-convertible debentures (NCD) market on Thursday to raise upto Rs. 7,000 crore through 10-year paper, bond dealers said. The proceeds of the NCDs will be used by AIAHL to refinance the loans availed by AIL. The issue will be open for bids on Thursday.

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    11:09 (IST)09 Oct 2019
    Despite BPCL privatisation move, not much on table for investors, says CLSA; check target stock price

    After the Narendra Modi led government moved swiftly to remove legal hurdles in a bid to privatise state-owned BPCL (Bharat Petroleum), global brokerage firm CLSA said that the recent stock rally has not left much for investors. Notably, the global brokerage firm has a target stock price of Rs 300 on the shares. Ahead of a proposed move to fully privatise Bharat Petroleum Corp Ltd (BPCL), the government moved swiftly to repeal the legislation that had nationalised the company, doing away with the need to seek Parliament nod before selling it off to private and foreign firms, according to a PTI report.

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    10:58 (IST)09 Oct 2019
    Public Provident Fund (PPF) Trick: Got a job? Do this – You may retire with Rs 3 crore!

    The key to retirement planning is starting early. But, how early should one start? The answer to this question depends on various factors, including your present financial condition, preferences in life, employment status, ability to manage money efficiently etc. Some may prefer not to think about retirement in early years of their career. Some may start, right after getting the first job. One thing is certain that taking an early step to save and invest for retirement has multiple benefits, including the monetary one.

    Read trick here

    10:53 (IST)09 Oct 2019
    Fintech start-up Subh Loans gets NBFC licence from RBI

    Fintech start-up Shubh Loans on Tuesday said it has received a licence from the Reserve Bank of India to set up a non-banking financial company. The company said the licence has been received through the subsidiary — Ekagrata — of its parent company Datasigns Technologies. Shubh Loans said it has already raised series A2 funding of Rs 34 crore (USD 4.8 million) from Omidyar Network India. Shubh Loans, which is fast changing the way loans are disbursed and making credit accessibility easier, is set to implement NBFC compliant frameworks and governance processes, it said in a release.

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    10:48 (IST)09 Oct 2019
    Closing bell? Finance ministry wants BSNL, MTNL closed down

    After shooting down the proposal of the department of telecommunications (DoT) to pump in a massive Rs 74,000 crore to revive the ailing BSNL and MTNL, the finance ministry has suggested that both the sick PSUs be closed down. Sources said in the event of closure of the two PSUs, the cost won’t be as high as Rs 95,000 crore as argued by the DoT while making a case for a Rs 74,000-crore revival package. The Rs 95,000-crore cost was coming in the case of providing an attra-ctive voluntary retirement sche-me to all 1.65 lakh BSNL empl-oyees and its debt repayment.

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    10:44 (IST)09 Oct 2019
    Slowdown blues: More pronounced in India, says IMF chief

    As the global economy is witnessing "synchronized slowdown", the effect is "more pronounced" this year in some of the largest emerging market economies like India, said the new International Monetary Fund (IMF) Managing Director, Kristalina Georgieva. Ms Georgieva pointed out that the widespread deceleration means that growth in 2019-20 will fall to its "lowest rate" since the beginning of the decade. Almost 90 per cent of the world will face slower growth, she said on Tuesday. Two years ago, the global economy was in a synchronized upswing. Measured by GDP, nearly 75 per cent of the world was accelerating. The global economy is now in a synchronized slowdown. In 2019, we expect slower growth in nearly 90 per cent of the world," said Ms Georgieva in her first speech as managing director of the International Monetary Fund. 

    10:26 (IST)09 Oct 2019
    RCEP talks: India for safeguard tools to keep out damaging imports

    Facing stiff resistance from key industries — including steel and dairy — against the RCEP trade deal, India is planning to employ an “auto-trigger” safeguard mechanism for imports from not just China but also Australia and New Zealand to better protect domestic players from irrational inflows of heavily-subsidised products, a top source told FE.

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    10:24 (IST)09 Oct 2019
    RCEP talks: India for safeguard tools to keep out damaging imports

    Facing stiff resistance from key industries — including steel and dairy — against the RCEP trade deal, India is planning to employ an “auto-trigger” safeguard mechanism for imports from not just China but also Australia and New Zealand to better protect domestic players from irrational inflows of heavily-subsidised products, a top source told FE. This mechanism will typically come into play once imports of a particular sensitive product breach a stipulated limit. The concessional duty under RCEP will then be scrapped for that item and the normal (MFN) duty will apply. India is in negotiations to be able to invoke “auto-trigger” in case of 68 sensitive products for at least eight-ten years initially, the sources added.

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    10:21 (IST)09 Oct 2019
    Flipkart beats Amazon in first leg of online festive sales; e-tailers clock in total Rs 19,000 crore

    Despite the ongoing slowdown in the economy, e-tailers including Amazon and Flipkart have clocked in Rs 19,000 crore value sales in the six-day long festivities which started on 29 September. Homegrown Flipkart led the e-commerce platforms in terms of GMV (Gross Merchandise Value) with its standalone share at over 60%, consultancy firm RedSeer said. “Strong performance across categories including mobiles was the key reason for Flipkart leadership. This was in turn enabled by strong value prices, high EMIs adoption and diverse selection across categories, all marketed aggressively to reach customers widely,” RedSeer said. On the other hand, Jeff Bezos’ Amazon had over 28% share in the overall festive season sales. With Amazon and Flipkart getting over 90% of the market share in online shopping, the festive sales are largely becoming a two-player play. 

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    10:04 (IST)09 Oct 2019
    YES Bank’s Diwali bonanza: Big bonuses for employees, ramps up hirings

    As the nation gears up for Diwali, private-sector bank has rolled out big bonuses for existing employees which will be paid once every four months. To be given in 30:40:30, the bonus rollout is meant to retain existing talent, CNBC TV-18 cited unidentified sources as saying. Further, the private bank is also ramping up employment activities and is aggressively hiring for top positions. The bank is offering handsome hikes to prospective employees and the attractive packages are bringing very healthy response to the bank’s recruitment drive, the news channel reported. 

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    10:01 (IST)09 Oct 2019
    Rakesh Jhunjhunwala says these are two best companies in India; extremely bullish on PSU stocks

    Even as the stock market remains muted on amid concerns of a slowdown, ace investor Rakesh Jhunjhunwala said that PSU stocks offer a very good buying opportunity. “The biggest beneficiary of the tax cut will be the PSUs. If the government does its disinvestment programme in a measured manner, these will gain,” he said in an interview with ET Now. Taking stock of the volatile market, Jhunjhunwala said that this must be the darkest hour before dawn. “The market always gives you an opportunity to buy before going up. It is like the weather: you may not like it, but you will have to bear it,” he told the channel.

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    09:56 (IST)09 Oct 2019
    India puches above weight on innovation: WEF

    India is ranked also high at 15th place in terms of corporate governance, while it is ranked second globally for shareholder governance, the WEF study showed. In terms of the market size, India is ranked third, while it has got the same rank for renewable energy regulation. Besides, India also punches above its development status when it comes to innovation, which is well ahead of most emerging economies and on par with several advanced economies, the report said.

    09:44 (IST)09 Oct 2019
    India slips 10 places to 68th on global competitiveness index; Singapore on top

    Announcing its latest index, the WEF said on Wednesday India ranks high in terms of macroeconomic stability and market size, while its financial sector is relatively deep and stable despite the high delinquency rate, which contributes to weakening the soundness of its banking system. India is ranked also high at 15th place in terms of corporate governance, while it is ranked second globally for shareholder governance, the WEF study showed. In terms of the market size, India is ranked third, while it has got the same rank for renewable energy regulation.

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    09:26 (IST)09 Oct 2019
    BSE live: Competitiveness slump, IMF's slowdown concerns weigh on sentiment; Sensex, Nifty flat

    India's competitiveness ranking slump, IMF's fresh slowdown concerns weighed on investor's mood on Wednesday morning. Notably, India has moved down 10 places to rank 68th on an annual global competitiveness index, largely due to improvements witnessed by several other economies, while Singapore has replaced the US as the world’s most competitive economy. A look at live Sensex heatmap.

    09:05 (IST)09 Oct 2019
    Oil prices extend slide to 3rd straight day, US-China trade doubts grow

    Oil prices slipped for a third consecutive session on Wednesday as the prospect of the United States and China striking a trade deal in talks this week dimmed, raising uncertainties for global economic growth and oil demand. U.S. industry data showing a bigger-than-expected rise in stockpiles at the world’s top oil producer also depressed prices: Brent crude futures fell 27 cents, or 0.5%, to $57.97 a barrel by 0148 GMT, while U.S. West Texas Intermediate crude was at $52.38, down 25 cents or 0.5%.

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    09:03 (IST)09 Oct 2019
    Gold firms as US-China trade dispute worsens ahead of talks

    Gold prices firmed on Wednesday as tensions between the United States and China ratcheted up ahead of crucial trade talks later this week, sapping risk appetite, while concerns over Brexit added to bullion’s safe haven appeal.  Spot gold rose 0.1% to $1,505.95 per ounce as of 0027 GMT. U.S. gold futures gained 0.5% to $1,511.40. Asian stocks fell the most in a week, with MSCI’s broadest index of Asia-Pacific shares outside Japan down 0.3%.

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    09:02 (IST)09 Oct 2019
    Trade wars lose US its competitiveness top spot: WEF report

    The United States fell to second place behind Singapore in the World Economic Forum’s flagship Global Competitiveness Report, with the slippage linked in part to President Donald Trump’s trade wars. The Forum, organisers of the glitzy annual gathering of business and political elite in Davos, have released an annual competitiveness report since 1979 that assesses which economies are well placed to see productivity and long-term growth.

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    09:02 (IST)09 Oct 2019
    Asian stocks fall by the most in a week as US-China standoff escalates

    Asian stocks fell the most in a week on Wednesday as the United States and China’s ever-expanding dispute over trade and foreign policy showed little sign of coming to an end, weighing on global economic growth. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.3%. Japan’s Nikkei slid 0.81%. Australian shares were down 0.92%. U.S. two-year Treasury yields fell and the curve steepened in Asia after U.S. Federal Reserve Chair Jerome Powell signalled further interest rate cuts and the resumption of bond purchases to address a recent spike in money markets rates.

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