Mark to Market

GDP Growth Moderates To 6.6%- At 6.6%, India still grew faster than China 's 6.4% GDP growth in Q3, thus retaining the tag of fastest-growing major economy. GDP growth forecast for 2018-19 has also been revised downwards to 7% from 7.2% projected earlier India set to see lower productivity, weak demand, inching inflation in the coming weeks - Industrial production is expected to remain subdued over moderate demand and uncertainty around the outcome of upcoming general election. Global trade tensions and subdued trade growth outlook is also expected to dampen the industrial production through trade and investment channels, D&B said in a statement.  Core sector growth slows down to 1.8% in January - due to fall in output of crude oil, refinery products and electricity, official data showed Thursday 

Wipro jumps to 19-year high on bonus issue approval- A day after Wipro said it had received approval for increase in authorised share capital and issue of bonus shares from the majority of its shareholders, the company's shares jumped nearly 2 per cent to Rs 385.15, its highest level in 19 years. Thomas Cook India buys 51% stake in Dubai -based Digiphoto - Thomas Cook India Ltd has acquired 51% stake in Dubai-based Digiphoto Entertainment having a valuation of $40.6 million ( ₹289 crore) Ericsson, Airtel to collaborate on intelligent, predictive network operations- Swedish gear maker Ericsson and Bharti Airtel Monday announced a partnership for building intelligent and predictive network operations that harness new-age technologies like artificial intelligence (AI) and automation. IndiGo plans services to China, Vietnam, Myanmar, other countries-   It will be looking at starting services to China, Vietnam, Myanmar and Sa

Q3 2019 :RESULT UPDATE-1 The India Inc sample of 2471 companies registered a net sale increase of 17.8% and a fall of 33% in net profit, after the setback by Tata Motors.Which when adjusted resulted in a fall of 7.4% after showing a double digit growth in previous two quaters. Main reasons for drag down being Automobile sector - reducing demand, currency fluctuation, high cost Cement- moderating growth and reducing prices Metal-falling prices globally Coupled with rising volumes of consumer goods, indicating demand in rural and urban areas. Company Name Industry Margin % Change (YOY) Sales % Change (YOY) Explanation for massive change Bajaj Auto Ltd. Automobile Two & Three Wheelers 15.70% 16.50% Volume growth of 27.5% in domestic and 23.5% in export. With Price cut. Tata Motors Ltd. Automobiles-Trucks/Lcv -20.00% 5.00% Loss was due to non cash write off of Rs 27,833 crore for JLR.( contribute 72% to total sales) Volume rose by 1% in domestic market and fell by

Marked For 14th Feburary 2019 The S&P BSE  Sensex  ended at 35,158, down 158 points or 0.44 per cent , while the broader  Nifty50 index settled at 10,746, down 48 points or 0.44 per cent . Nifty  IT index , the top loser of the day, settled 1.12 per cent lower driven by a fall in Oracle Financial Services Software and Infosys.  The  Nifty  Financial Services index , too, ended 0.57 per cent lower Gainers Yes Bank 30.57% CG Power and Indus, JIK Industries by 20% Dewan Housing, IIFL Holding by 15% Losers Shekhawati Poly by 20% Goenka Diamond, Ramsons Ind by 10% Rain Industries, by 8% Company Update Prabhudas Lilladher has a buy call on Ipca Laboratories with a target price of Rs 921.-The current market price of Ipca Laboratories is Rs 747.85 Jet Airways, on the verge of collapse , now close to a bailout-banks will become majority owners of the airline, pushing out founder-promoter Naresh Goyal Yes Bank Ltd gained 

Sensex closed 120 points, or 0.33 per cent, lower at 36,034.11, while Nifty lost 38 points, or 0.35 per cent , to close at 10,793.65. The BSE Midcap and Smallcap indices closed 0.52 per cent and 0.38 per cent lower , respectively. Gainers General Insurance Corporation of India , Adani Ports SEz by 4% Ibull HousingFin,  Motherson Sumi by 3% Losers Eicher Motors, Concor,  BEL by 4% HPCL,  Bosch by 3% Company Updates Analysts continue to prefer Tata Steel Ltd. over its larger peer JSW Steel Ltd. - The reasons for this is : lowering debt, no overhang on balance sheet, captive iron ore mining, retains full year guidance, discounted valuation. Institutional investors put in Rs 8,000-cr bids for SUUTI stake in Axis Bank - Institutional investors bid for over 11.69 crore shares, 2.56 times the 4.56 crore shares on offer for them, Reliance Power asks Sebi to ban Edelweiss Group -   alleging "illegal and market disruptive activities" to c

RBI cuts repo rate by 25 basis points, changes policy stance to neutral Inflation estimates for the first half of the next fiscal year cut to 3.2%-3.4% from the earlier target of 3.8-4.2% GDP growth projection at 7.4% for 2019-20 Monetary Penalty on Banks for Non- Compliance of Direction Corporation Bank  has been fined  Rs. 2 crore , while  BoB   , SBI and  Union Bank  of India were fined  Rs 1 crore  each. Penalties are based on  deficiencies in regulatory compliance  and "is not intended to pronounce" upon the validity of any transaction or agreement entered into by the banks with their customers, the central bank said. Removal of Return on Capital as a threshold has helped three banks exit RBI's prompt  corrective  action but for others, exit is still treacherous

NCLAT allows 22 IL&FS group firms to service debt obligations The National Company Law Appellate Tribunal Monday allowed 22 companies of crisis-hit IL&FS group to service their debt obligations. Besides, a two-member bench headed by Justice S J Mukhopadhaya approved appointment of former Supreme Court judge Justice D K Jain to supervise resolution process of IL&FS group. SC dismisses operating creditors' pleas in Essar steel case The Supreme Court on Monday dismissed petitions by Essar Steel Ltd’s operational creditors seeking a stay on its insolvency proceedings. Accordingly, the matter will continue to be heard by the Ahmedabad bench of the National Company Law Tribunal (NCLT).

After Market: Small caps bleed; 400 stocks hit 52-week lows Sensex settled 151 points, or 0.41 per cent, down at 36,395.03, with 14 stocks up and 17 stocks down. The NSE Nifty index closed the day 55 points, or 0.50 per cent, lower at 10,888.80, with 21 stocks in the green and 29 in the red. Gainers Tata Steel by 2.55% , Cipla IOC, Tata Motors, HCL Tech by 1.5% Losers Dr Reddy Labs by 5.57% , M&M, ONCG, Hindalco and Ultra Tech Cement by 3% Midcaps and smallcaps suffered more than the heavyweights as their sectoral indices on the BSE fell up to 1.51 per cent Rupee strengthens against US dollar   The Indian rupee on Monday strengthened against the US dollar ahead of consumer price inflation data due this week.  Rupee was trading at  71.21  a dollar, up 0.15% from its previous close of 71.31.  The currency opened at 71.26 a dollar, touching a high 71.14 and a low 71.29.

Rakesh Jhunjhunwala Show No Love To Startups India’s veteran market investor  Rakesh Jhunjhunwala is staying away from investing in startups ; “Many of them talk about innovation,[but] there is little uniqueness in them and many of them are like ‘me- too’ companies.” CBDT to clarify on angel tax in a week Startup companies say the best solution is to   exempt taxation of share premium that is beyond fair market value in the first ten years of the company’s existence .  They say this could be made applicable to those with paid up capital and share premium upto  ₹25 crores  after the share issue, up from ₹10 crores now. CBDT clarified that not all tax demands to startups are issued under section 56 (2) (viib) of the Income Tax Act, the controversial ‘angel tax’ provision

UK recession risk in next year climbs to 30% The probability of two consecutive quarters of negative growth has increased to 30%, the highest since the end of 2016, the survey of 10 economists found.  That’s up from 25% a month ago Jaguar Land Rover considers financing options after shock writedown JLR needs to raise $1 billion within 14 months to replace maturing bonds JLR likely to increase receivables facility or turn to further options, including leasing assets and tapping export credit

Currency The rupee was trading at 71.34 a dollar, up 0.16% from its previous close of 71.46.   In last six trading sessions,  foreign investors  have bought nearly $750 million in equity markets while so far this year they were net buyers of $221.70 million.   However in debt segment, FIIs remained sellers and sold nearly $672 million. Year to date, the rupee has declined 2.35%. Asian currencies were trading mixed . Philippines peso was up 0.21%, South Korean won 0.06%, Japanese yen 0.05%. However, Thai Baht was down 0.47%, China Offshore 0.08%, Indonesian rupiah 0.07%. Global Economy The US has not formally informed India  that it is ending preferential benefits for $5.6 billion worth of Indian export The US withdrew duty benefits worth $75 million from Indian exports The US has foregone $190 million in revenue due to the preferential tariffs under GSP on Indian exports ranging between 1% and 6%.

Tata Motors     Auto major Tata Motors on Thursday reported a massive  Rs 26,961 crore consolidated loss  for the December quarter. The company said it took one-time exceptional non-cash charge for  asset impairment of 3.1 billion pounds. Revenue rose 5 percent to Rs 77,000 crore. Operating profit fell 20 percent to Rs 6,381 crore. Margin narrowed 260 basis points to 8.3 percent. The surprise loss was due to a non-cash write off worth Rs 27,838 crore for JLR . Tata Motors attributed it to slowing sales in China, technology disruptions and rising cost of debt. Tata Steel   Quarterly profit rose as the steelmaker’s increased capacity from domestic acquisitions aided its earnings. Net profit rose 76.5 percent over last year to Rs 2,284.1 crore in the December quarter, according to its stock exchange filing. The growth was also inflated by a one-time charge that weighed on Tata Steel’s profit in the same quarter last year. Revenue rose 23.2 perc

Market Overview Indian markets ended flat today, reversing gains on profit-taking after RBI cut repo rate. The RBI today cut repo rate by 25 basis points and also switched to a neutral policy stance. The Sensex ended flat at 36,971.09 (-0.01%) while Nifty settled at 11,069 (0.06%). At day's high, Nifty had hit 11,118 before coming off on profit-taking. Gainers Zee Entertain  by  5.35% , Sun Pharma  by  4.39% ,   Eicher Motors, Bharti Infra, Bajaj Auto  by  3% Tata Motors, Hero Motocorp, Coal India  by  2% The  Nifty auto index  rose nearly  2% . Broader markets outperformed with  BSE midcap and small cap  indices rising nearly  0.75% each . Losers JSW Steel  by  2.2% , Reliance, Larsen, Power Grid Corp, Hindalco  by  1% HDFC, Indusind Bank, NTPC  by  0.5%