MARKET WRAP: Sensex dips 286 pts, Nifty ends at 10,856 despite RBI rate cut

All that happened in markets today

3:45 PM

Sectoral losers and gainers on the NSE

3:44 PM

Top losers and gainers on the S&P BSE Sensex

3:34 PM

CLOSING BELL

The S&P BSE Sensex lost 286 points or 0.77 per cent to end at 36,691 levels while the NSE's Nifty50 index dropped 93 points or 0.85 per cent to settle at 10,856. 

3:19 PM

MARKET CHECK | Top gainers on the BSE at this hour

CENTRALBK	19.80	+2.40	+13.79
J&KBANK	44.40	+6.90	+18.40
NILKAMAL	1,005.00	+70.70	+7.57
ASTRAZEN	1,978.00	+121.30	+6.53
GESHIP*	236.85	+11.30	+5.01

3:01 PM

Earnings Alert | Cipla Q1 consolidated net profit at Rs 478.2 cr, up 6% YoY

- Revenue comes in at 3,989.02 cr, up 1.27% YoY

2:54 PM

S&P BSE Sensex stocks that hit fresh 52-week lows

COMPANY	LATEST	52 WK LOW	PREV LOW	PREV DATE	VOLUME
ITC	255.25	254.95	257.60	05-AUG-2019	410074
M & M	524.20	522.40	538.95	01-AUG-2019	329280
TATA MOTORS	118.60	117.55	121.85	06-AUG-2019	2789597
TATA MOTORS-DVR	56.10	55.50	57.25	06-AUG-2019	791436
TATA STEEL	385.00	382.40	389.75	05-AUG-2019	735382

2:49 PM

Nifty sectoral indices at this hour

2:46 PM

Indiabulls Housing Finance extends fall to over 11%

2:43 PM

DHFL tumbles 10%

2:32 PM

CRUDE CHECK | Oil hits new seven-month low on Sino-US trade tensions

Brent crude futures were down 11 cents, or nearly 2%, at 1:53 pm to set a fresh seven-month low. Prices have lost more than 20% since hitting their 2019 peak in April. US West Texas Intermediate (WTI) crude futures were flat at $53.63.

2:24 PM

ICICI Securities on Titan Company

Rating: BUY

 

CMP: Rs 1,009 

 

Target: Rs 1,190 (18%) 

 

Target Period: 12 months

 

Given the recent headwinds, we revise our revenue and earnings estimates downwards for FY20, FY21E. A sustained increase in gold prices and weak consumer sentiments can lead to postponement of purchase, which may defer the revenue growth recovery in the near term. We model revenue and earnings CAGR of 17% and 24%, respectively, in FY19-21E. We maintain our BUY rating on the stock with a target price of Rs 1,190 at 49.0x FY21E EPS (earlier target price of Rs 1,250).

2:22 PM

MARKET CHECK | Top losers on the BSE at this hour

IBREALEST	70.45	-13.40	-15.98
SUZLON	3.99	-0.26	-6.12
JAMNAAUTO	39.05	-2.15	-5.22
WELSPUNIND	47.60	-2.85	-5.65
DHFL	50.55	-4.85	-8.75

2:13 PM

Tyre makers to go through rough patch due to slowdown in auto sector

The replacement segment, which represent over 55 per cent of industry volumes, is likely to grow by 5-6 per cent in FY2020 (PY: 5.7%) while demand growth in original equipment (OE) segment is pegged at lower levels of 2-3 per cent (PY: 7.8%) affected by subdued vehicle production in fiscal 2020. READ MORE

Photo: Shutterstock

2:04 PM

Sudden fall in Sensex

1:54 PM

Lupin Q1 results

-- Consolidated EBITDA at Rs 860.1 crore
 

-- EBITDA margin at 19.5%

-- Consolidated net profit at Rs 303 crore

-- Consolidated revenue at Rs 4418.4 crore

1:51 PM

Rate sensitive stocks trade mixed after RBI cuts repo rate by 35 bps

Shares of rate sensitive stocks like financial, auto and real estate were trading mixed in afternoon trade despite the Reserve Bank of India's (RBI's) monetary policy committee (MPC) reducing the repo rate by 35 basis points (bps) to 5.40 per cent to help revive the economy. Repo rate is the rate at which the central bank lends money to the commercial banks, in case of any shortfall of funds.  READ MORE

1:37 PM

NEWS ALERT |SBI to reduce lending rate by 15 bps w.e.f August 10: CNBC TV18

-- 1-year MCLR to be at 8.25%; Home loans cheaper by 35 bps since April 10

1:28 PM

Finance Secretary on RBI rate cut

-- RBI's repo rate cut is a very positive step

-- Banks have to now pass on the RBI rate cut to customers

1:26 PM

Mahindra & Mahindra at day's low after Q1 results

1:22 PM

Why RBI slashed rate by 35 bps instead of 25 or 50 bps: Top highlights

Adopting a middle path, the six-member monetary policy committee (MPC) of the Reserve Bank of India (RBI) on Wednesday decided to slash the repo rate by 35 basis points (bps) to 5.4 per cent. Most analysts' expectations who were rooting for 25 bps rate cut. Global brokerage firm Bank of America Merrill Lynch (BofA-ML), however, had projected the central bank to slash rates by 35 bps. READ MORE

1:19 PM

Rupee slips further to 71 level against dollar post RBI rates cut

The rupee witnessed high volatility and slipped towards 71 level after the Reserve Bank of India on Wednesday cut key interest rate by 35 basis points to boost the slowing economy. The rupee had opened on a weak note at 70.92 at the interbank forex market, then fell further to 70.99 against the dollar. The domestic currency was trading at 70.91 at 1215 hrs, down 10 paise over its last close. READ MORE

1:12 PM

Pharma stocks gain

COMPANY	LATEST(rs)	CHG(rs)	CHG(%)	VOLUME
CADILA HEALTH.	225.50	-1.00	-0.44	147359
SUN PHARMA.INDS.	422.55	4.25	1.02	118327
BIOCON	227.05	1.65	0.73	83134
CIPLA	513.50	13.30	2.66	69333
STRIDES PHARMA	411.15	0.20	0.05	62693

1:00 PM

Mahindra & Mahindra partially pares losses after Q1 results

12:59 PM

Mahindra & Mahindra + MVML Q1 results

-- One-time gain of Rs 1,367 crore
 

-- Net profit zooms 80% YoY to Rs 2,259.7 crore

-- Ebitda Rs 1,816 crore
 

-- Ebitda margin at 14%

-- Revenue at Rs 12,997 crore

12:51 PM

COMMENT :: V K Vijayakumar, chief investment strategist at Geojit Financial Services

The downward revision of the FY 20 GDP growth rate to 6.9 percent with downward risk is a dovish signal. The unequivocal statement from the central bank that “boosting aggregate demand through private investment assumes the highest priority at this juncture” reflects the correct diagnosis of the ills plaguing the economy presently. The policy initiatives for better credit availability to NBFCs and the tweaking of priority sector lending are steps in the right direction. The rate cut by the MPC is in sync with  current global context of synchronised rate cuts by the global central banks. One more rate cut of 25 bp can be expected in 2019."

12:50 PM

COMMENT :: Suvodeep Rakshit, senior economist at Kotak Institutional Equities

The RBI continued with the rate cut cycle but in a surprise change to the quantum, reduced repo rate by 35 bps. While this induces some uncertainty in market expectations of the quantum of rate changes, it provides the RBI MPC with a greater degree of flexibility in signalling their intent. The 35 bps rate cut should be seen as a signal that the RBI MPC is quite concerned with the growth outlook beyond the usual 25 bps rate cut in a business-as-usual scenario (even though it does not reflect in the revised FY2020 GDP growth estimate).

With inflation expected to remain benign, and further downside to growth outlook, we see scope for 25-50 bps of further rate cuts through FY2020. Transmission to lending rates will likely remain weak unless there is a clear visibility of adequate liquidity sustaining over the medium term

12:48 PM

COMMENT ON RBI RATE CUT :: Anuj Puri, chairman, ANAROCK Property Consultants

For real estate, a rate cut of 35 bps is however insufficient to significantly improve buyer sentiment in the mid-income segment, which still has a staggering unsold inventory of 2.17 lakh units in the top seven cities. On the other hand, demand for affordable housing, which accounted for 2.40 lakh unsold units in these cities, may see improvement as this highly budget-sensitive segment already has the benefit of other incentives.

 

Even minor downward revisions in interest rates can and do make a difference in affordable housing. If banks transmit this reduction in the prime lending rate to consumers, budget housing demand may improve. Likewise, housing demand in tier 2 and tier 3 cities, where property prices are less prohibitive, may see an uptick.

 

However, this rate cut, even if adequately transmitted by banks, will not do much for mid-income housing in tier 1 cities where the main concern is unaffordable property prices and not interest rates.

 

12:48 PM

Titan Company slips 4%, hits 6-month low on subdued Q1 earnings

Shares of Titan Company hit a six-month low of Rs 999, down 4 per cent intra-day on the BSE on Wednesday after it reported 6 per cent year-on-year (YoY) growth in standalone net profit at Rs 371 crore in the June quarter (Q1FY20), due to lower-than-expected revenue. The firm had posted a profit of Rs 349 crore in the year-ago quarter. READ MORE

12:47 PM

COMMENT :: Dr. K. Joseph Thomas, Head Research, Emkay Wealth Management

The RBI policy , especially the repo rate cut of 35 bps, takes cognizance of the need to bring down interest cost on liquidity and  credit, to support the sluggish economic growth and to stimulate aggregate demand. The success of this accommodative policy would depend entirely on the next level of its application, that is, the transmission of the lower rates to the ultimate borrowers.  The banks seem to be seized of this need and effective cascading of the benefits of lower base rate may happen over the next few months

12:36 PM

COMMENT ON RBI POLICY :: Rajiv Singh, CEO, Karvy Stock Broking

While we were hoping 50 bps rate cut, the RBI has chosen unconventional cut of 35bps which is mildly positive for the market. However, RBI cutting its estimation of GDP growth rate below 7%, while widely expected, may not go down well with the market in short term. Overall this is an accommodative policy and in tune with other developed and emerging market trends. Certain other macro prudential measures like enhancement of credit limit to individual NBFC to 20% from 15% of a Bank's Tier I capital is good.

The RBI has pointed out that while transmission of rates has occurred through money market, banks are yet to pass on the rate cuts to real economy. Overall, this is a good policy and should help improve liquidity, consumption and demand scenario in the economy albeit with a lag. We continue to expect further cuts from the RBI, as based on the current inflation projections, there is further room for RBI to cut rates and boost the economy