Markets Live: Sensex ends in the red, RBI cuts repo by 25 bps

 

Closing bell

The benchmark indices, the NSE Nifty and the BSE Sensex, gave up their morning gains to end the day flat to weaker.

While the Sensex ended the day at 36,971, down 4 points or 0.01 per cent lower, the Nifty closed at 11,069, up 6 points or 0.06 per cent higher.

The top gainers on the Sensex were Sun Pharma, Bajaj Auto, Tata Motors, Hero MotoCorp and Coal India, while the laggards were Reliance Industries, PowerGrid, HDFC, L&T and IndusInd Bank.

The Reserve Bank of India cut the repo rate by 0.25 per cent to 6.25 per cent on expectation of inflation staying within its target range.

The central bank also changed its monetary policy stance to ‘neutral’ from the earlier ‘calibrated tightening’, signalling a further softening of rates if inflation remain benign.

Rate-sensitive banking, auto and realty indices jumped up to 1 per cent after the rate-cut announcement.

This rate cut means a lot for the market as it is announced post-Budget, said Mustafa Nadeem, CEO, Epic Research.

(with inputs from agency reports)

European shares ease as corporate earnings weigh

European shares eased from 12-week highs on Thursday as weak earnings from Publicis, GEA and TUI offset gains in banks following better-than-expected results from Italy's Unicredit.

Europe's STOXX 600 was down 0.2 per cent at 0935 GMT, with Germany's DAX 0.5 per cent lower after disappointing December industrial output numbers for Europe's largest economy reinforced worries about the cooling global outlook. Click here to read the European share markets report in full.

Despite RBI’s rate cut, deposit and lending rates unlikely to come down in a hurry

 

Despite concern over the fiscal deficit and sticky core inflation, the RBI chose to surprise markets and cut its key policy repo rate -- at which banks borrow short-term funds from the RBI -- by 25 basis points to 6.25 per cent.

The last rate cut by the RBI was in August 2017, when CPI inflation was 3.2 per cent, and within that, food inflation was at 1.96 per cent (inflation had moved up to 5.2 per cent by December that year).  Click here to read the report on RBI's rate cut in full.

Oil prices drop on rising US crude supply, but OPEC cuts support

Oil prices fell on Thursday after US crude inventories rose and the country's production held at record levels, but OPEC-led supply cuts and Washington's sanctions against Venezuela supported markets.

US West Texas Intermediate (WTI) crude futures were at $53.66 per barrel at 0744 GMT, down 35 cents, or 0.7 per cent, from their last settlement. International Brent crude oil futures fell 39 cents, or 0.6 per cent, to $62.30 per barrel. Click here to read the oil markets report in full.

IREDA to launch IPO by Sept

The initial public offer (IPO) of state-run Indian Renewable Energy Development Agency (IREDA) will be launched before September 2019, a top official said Thursday.

“We can raise up to 15 per cent of our equity. The approval was for 13.90 crore equity shares. This will be around (worth) Rs 750 crore. That is not much; but it will help,” IREDA Chairman and Managing Director, Kuljit Singh Popli, said. Click here to read the full report on IREDA IPO plans .

Sensex, Nifty off lows

The Sensex and Nifty recovered from lows hit soon after the announcement of the RBI policy review in the afternoon session on Thursday.

The Sensex was up 155 points or 0.42 per cent at 37,130, while the Nifty gained 45 points or 0.41 per cent to trade at 11,108.

The Reserve Bank of India cut the repo rate by 0.25 per cent to 6.25 per cent on expectation of inflation staying within its target range, a move that may make home and other loans cheaper.

The RBI, under its new Governor Shaktikanta Das, changed the monetary policy stance to ‘neutral’ from the earlier ‘calibrated tightening’, signalling further softening of rates if inflation remain benign.

According to a PTI report, rate-sensitive banking, auto and realty indices jumped up to 1 per cent after the rate-cut announcement.

This rate cut means a lot for the market as it is announced post-Budget, said Mustafa Nadeem, CEO, Epic Research.

“The market is likely to take it on a positive note; but with the recent run-up to 11,100, we believe it may be ripe for traders to take some profit,” he said.

“In a medium-term perspective, the market has always reacted positively to a rate cut. Since we are in an environment where RBI is now neutral, with a focus to keep growth in an economy and tabs on inflation, we may attract long-term money that can move the market.

“This is a positive event for the market, though on a cautious note, we have an election in the next three months. So that needs to be taken into account,” he added.

According to Harsh Gupta, CIO of Ashika Group: Equities, especially real estate, financials and infrastructure stocks should do well. “Even the rupee is likely to strengthen given that foreign institutional investors (FIIs) are more exposed to equities than Indian debt.”

On a net basis, FIIs bought shares worth a net of Rs 694.97 crore on Wednesday, and domestic institutional investors (DIIs) were net buyers to the tune of Rs 525.26 crore, provisional data available with BSE showed.

In the afternoon session, Sun Pharma, Bajaj Auto, Tata Motors, M&M, Yes Bank, Maruti and Hero MotoCorp were the top gainers, rising up to 5.20 per cent.

On the other hand, RIL, HDFC, Vedanta, PowerGrid and Bajaj Finance fell up to 1.48 per cent.

The rupee, meanwhile, appreciated 4 paise against the US dollar to 71.52.

The benchmark Brent crude futures slipped 0.69 per cent to $62.26 per barrel.

Nifty call: Stay out of the market until volatility eases

Nifty 50 February futures (11,091) After a muted start, the Nifty 50 futures contract has turned volatile following the outcome of the Reserve Bank of India's monetary policy meeting. The RBI has cut repo rates by 25 basis points to 6.25 per cent. The Nifty 50 futures contract spiked to a high of 11,142.85 and has come-off sharply breaking below the psychological support level of 11,000. Click here to read in full the Nifty call report .

Asian shares inch up to 4-month highs, NZ dollar takes a dive

Asian share markets edged up to four-month highs on Thursday, with Australian equities the star performer, while the New Zealand dollar sank after disappointing jobs data prompted investors to narrow the odds of a future rate cut. Trading was still light overall with China on holiday and no major economic data on the diary.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.2 per cent, rising to its highest since early October after ending almost unchanged on Wednesday. Click here to read in full the Asian share markets report .

Rupee recovers to trade at 71.44

 

The rupee was trading firmer at 71.44 at mid-session on Thursday, soon after the RBI announced a 25 bps cut in the repo rate and a shift in stance to neutral from calibrated tightening, to boost the economy.

The domestic unit depreciated 20 paise to 71.76 in early trade at the forex market ahead of the Reserve Bank of India’s interest rate decision.  Click here to read in full the rupee report .

Sensex, Nifty trim gains

The Sensex and Nifty trimmed their early gains soon after the RBI announced a lowering of the repo rate to 6.25 per cent.

The Sensex, which held gains of over 100 points through the morning session, had narrowed its gains to 24 points or 0.07 per cent at 37,000.

The Nifty, similarly, gave up most of its morning gains to trade at 11,070, up 8 points or 0.07 per cent.

The RBI unexpectedly lowered interest rates and shifted its stance to ”neutral” from “calibrated tightening” to boost a slowing economy after a sharp fall in the inflation rate.

The monetary policy committee (MPC) cut the repo rate by 25 basis points to 6.25 per cent, as predicted by only 21 of 65 analysts polled by Reuters. Most polled respondents had expected the central bank to only change the stance, to neutral.

Four of six members of the MPC voted to cut the rates, while all six members voted for a change in the stance.

The top gainers on the Sensex were Sun Pharma, YES Bank, Bajaj Auto, Tata Motors and Hero MotoCorp, while the laggards were Reliance, IndusInd Bank, HDFC, Power Grid and Asian Paints.

(With inputs from Reuters)

Sensex, Nifty trade firm

The Sensex and Nifty traded firm in ranges near mid-session on Thursday ahead of the annoucement of the central bank's monetary policy review.

The Sensex held gains of 195 points or 0.53 per cent at 37,170, while the Nifty was up 43 points or 0.40 per cent at 11,106.

Gold falls to 1-week low on stronger dollar

Gold fell to a more than one-week low on Thursday, pressured by a stronger dollar, but worries over slowing global economic growth and the spectre of another US government shutdown kept the safe-haven metal above the key $1,300 level. Click here to read the gold markets report in full.

Sensex, Nifty trade firm

The Sensex and the Nifty traded on a firm note in the morning session on Thursday. The Sensex gained 133 points or 0.36 per cent to trade at 37,109, while the Nifty was trading at 11,095, up 32 points or 0.30 per cent.

The top gainers on the Sensex were Sun Pharma, Bajaj Auto, YES Bank, Tata Motors, and HeroMotoCorp, while the laggards were HDFC, IndusInd Bank, HDFC Bank, Power Grid and Bajaj Finance.

On Wednesday, the Sensex soared 358.42 points, or 0.98 per cent, to close at 36,975.23; and the broader Nifty jumped 128.10 points, or 1.17 per cent, to 11,062.45.

According to an agency report, traders and domestic investors remained bullish, tracking sustained inflow from domestic and foreign funds, amid hopes that the RBI may change its policy stance to ‘neutral’ from ‘calibrated tightening’ on a low inflation footprint, even as a rate cut was ruled out by many experts.

The RBI’s Monetary Policy Committee (MPC) is scheduled to announce its policy decision later in the day.

Wall Street rally pauses after underwhelming revenue forecasts

 

US stocks edged lower on Wednesday as videogame makers gave disappointing revenue forecasts and investors awaited developments on US-China trade relations. Click here to read the US markets report in full.

Re falls 20 paise to 71.76 against dollar

 

The rupee on Thursday depreciated 20 paise to 71.76 in early trade at the forex market ahead of the Reserve Bank of India’s interest rate decision. The domestic currency has been trading in a narrow range in the last two trading sessions as investors were cautious ahead of the RBI’s Monetary Policy Committee outcome scheduled to be announced later in the day. Click here to read the rupee report in full.

Aussie under pressure after RBA's dovish shift, yen firmer

 

The Australian dollar remained near a two-week low on Thursday, as investors wagered that interest rates would most likely be cut this year due to mounting growth risks at home and abroad. Click here to read in full the dollar report .

‘Tariff order will benefit price-sensitive cable, DTH consumers’

 

The Telecom Regulatory Authority of India (TRAI) on Wednesday said that monthly cable TV bills of subscribers have come down 10-15 per cent for metro subscribers, and about 5-10 per cent down for subscribers in non-metro towns. This has come about after the new broadcast tariff order kicked in from February 1. Click here to read how TRAI's tariff order will benefit consumers .

Essar Oil UK acquires BP’s assets

 

Essar Oil UK has acquired a number of British assets of oil giant BP as part of its effort to strengthen its distribution and logistics network. The Essar Group company is seeking to grow its presence across a number of markets here. Click here to read the full report on Essar Oil UK's acquisition of BP's assets .

We have been most honest with our fiscal numbers, says Goyal

 

Hard-nosed economists may express concern over possible fiscal slippage, but the government is confident of reining in the numbers. Says stand-in Finance Minister Piyush Goyal: “I don’t think there is any concern. We have been the most honest government in many years…whatever you see is the real picture and we have stuck to it.” Click here to read in full Goyal's thoughts on the Budget and economy .

Oil dips on rising US supply, but OPEC cuts lend support

 

Oil prices fell on Thursday after U.S. crude inventories rose and as production levels in the country held at record levels, but OPEC-led supply cuts and a crisis in Venezuela supported markets. Click here to read in full the oil markets report .

Nifty rally leaves stock investors low

The benchmark equity gauge of India’s 50 biggest companies  reclaimed the 11,000 level after four months on Wednesday , but not all investors are celebrating. Click here to read the full report on Nifty's rally .

Sensex, Nifty move up in early session

The Sensex and the Nifty spurted 0.3 per cent each in early session on Thursday. The Sensex gained 128 points or 0.35 per cent to trade at 37,101, while the Nifty gained 26 points or 0.24 per cent at 11,088.

PTI adds: On Wednesday, the Sensex soared 358.42 points, or 0.98 per cent, to close at 36,975.23; and the broader Nifty jumped 128.10 points, or 1.17 per cent, to 11,062.45.

According to traders, domestic investors remained bullish tracking sustained inflow from domestic and foreign funds, amid hopes that the RBI may change its policy stance to ‘neutral’ from ‘calibrated tightening’ on a low inflation footprint, even as a rate cut was ruled out by many experts.

The RBI’s Monetary Policy Committee (MPC) is scheduled to announce its policy decision later in the day.

“Central banks in Asian markets from India to Indonesia are expected to halt interest rate hikes and possibly signal rate cuts as falling inflation and the US Fed’s decision to put the breaks on a tightening interest rate cycle has left enough room for interest rate cuts,” said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.

“Decline in rates will reduce the cost of capital and potentially fuel a rally in equity markets,” he stated.

On a net basis, foreign portfolio investors (FPIs) bought shares worth a net of Rs 694.97 crore on Wednesday, and domestic institutional investors (DIIs) were net buyers to the tune of Rs 525.26 crore, provisional data available with BSE showed.

In the morning session, Sun Pharma, Bajaj Auto, HCL Tech, Tata Motors, M&M, Yes Bank, Maruti and Hero MotoCorp were the top gainers, rising up to 2.64 per cent.

On the other hand, Tata Steel, HDFC, Bharti Airtel and Vedanta fell up to 0.51 per cent.

Elsewhere in Asia, Japan’s Nikkei fell 0.75 per cent, while Korea’s Kospi rose 0.35 per cent. Bourses in China were closed for Lunar New Year break.

On Wall Street, the Dow Jones Industrial Average ended 0.08 per cent lower on Wednesday.

The rupee, meanwhile, depreciated 10 paise against the US dollar to 71.66.

The benchmark Brent crude futures slipped 0.27 per cent to $62.52 per barrel.

Tech Mahindra shares gain over 8% after Q3 earnings

Shares of Tech Mahindra surged over 8 per cent on Wednesday after the  IT company reported a 27.5 per cent jump in December quarter profit.

Shares jumped 8.13 per cent to close at Rs 811 on the BSE. Intra-day, it advanced 8.53 per cent to Rs 814 -- its 52-week high.

At the National Stock Exchange (NSE), shares zoomed 8.12 per cent to close at Rs 812 apiece.

Click here to read the Tech Mahindra share price movement report in full.

 

Asian shares doze in data lull, NZ dollar takes a dive

Asian share markets were in a muted mood on Thursday and looked set for a sleepy session with China still on holiday and no major economic data on the diary. Click here to read in full the Asian share market report .

Will new proposals drive logistics stocks?

Logistics shares such as Future Supply Chain, Blue Dart, Mahindra Logistics, Gati and Patel Integrated may remain in focus, as the Commerce Ministry has proposed measures to integrate and optimise various elements of the logistics value chain.

The draft policy released on Wednesday proposes setting up of a separate fund, single-window e-marketplace and a law to define the role of various stakeholders. The Ministry has sought views by February 19.

RCom shares tank nearly 13%

Shares of Reliance Communications continued to reel under selling pressure on Wednesday, falling below its face value of Rs 5, plunging nearly 13 per cent.  RCom stock  plummeted 10.84 per cent to Rs 4.85 -- its all-time low -- on BSE. At NSE, shares crashed 12.61 per cent to Rs 4.85 apiece.

On Thursday, the share was trading at Rs 5.12, down Rs 0.36   (-6.57%) on the BSE. On the NSE, it was trading at Rs 5.05, down Rs 0.45 ().

Glenmark Pharma signs agreement with Grandpharma

Glenmark Pharmaceuticals  on Wednesday announced that its Swiss subsidiary, Glenmark Specialty SA, has entered into an exclusive licensing agreement with Grandpharma (China) Co Ltd for commercialising its novel nasal spray Ryaltris in China. The agreement with Grandpharma is Glenmark’s third regional licensing deal for Ryaltris after Australia, New Zealand and South Korea.

Under the agreement, Glenmark will manufacture and supply Ryaltris, while Grandpharma will do regulatory filing and commercialisation of the product in China.

Glenmark will receive an upfront payment, regulatory filing, regulatory approval and commercial milestone payments as well as royalties from Grandpharma. Shares of Glenmark gained 0.95 per cent at ₹641.50 on the NSE on Wednesday.

On Thursday the stock was trading at Rs 641.95, up Rs 0.45 () on the NSE.

Opening bell

The benchmark indices the BSE Sensex and the NSE Nifty opened Thursday's trading session in the green. The Sensex was up 24 points or 0.07 per cent at 36,999, while the NSE Nifty was up 8 points or 0.07 per cent at 11,070.

The 30-share Sensex closed Wednesday's session at 36,975.23 points, higher by 358.42 points or 0.98 per cent, while the Nifty reclaimed the 11,000 mark and ended at 11,062.45, higher by 128.10 points or 1.17 per cent.

RPP Infra Projects bags order worth Rs 72.20 cr

RPP Infra Projects  has announced its entry into Gujarat with the bagging of new orders worth ₹72.20 crore from the Gujarat Water Supply & Sewage Board, in a joint venture.

The company has 40 per cent share in the joint venture. RPP Infra has secured an order worth ₹40.50 crore for Package 6 of the Samarsingi cluster and has received a letter of intent for ₹31.70 crore for Package 7 of the Tanachhiya cluster.

The projects are expected to be completed in 24 months. The stock of RPP Infra jumped 8.83 per cent at ₹100.40 on the NSE on Wednesday.

On Thursday, the stock was trading at Rs 97.35, down Rs 3.05 () on the NSE.

Day Trading Guide for February 7, 2019

 

 

Today's Pick: GAIL (India) ₹339.15: BUY

 

The outlook for the stock of GAIL (India) is bullish. The stock surged over 2 per cent on Wednesday. Though the stock dippedinitially on the day, it reversed higher from the 21-day moving average support level of ₹331. The strong surge on Wednesday has also taken the stock decisively above the key resistance level of ₹336. This level will now act as a good support. Dips to this level is likely to find fresh buyers coming into the market and limit the downside. An upmove to ₹350 is likely in the coming days. A break above ₹350 will then pave way for the next targets of ₹360 and ₹365. Click here to read the Today's Pick on GAIL in full.