Nifty down nearly 1% but holds 10,600; Sensex ends over 300 pts lower

All that happened in the markets today

4:09 PM

Tata Motors Q3 rises about 13-fold on higher JLR sales at Rs 12 bn

 

Tata Motors Ltd reported about a 13-fold rise in quarterly profit on Monday, driven by higher sales from its Jaguar Land Rover business after a particularly weak quarter a year earlier. READ MORE

3:36 PM

Sectoral Trends

3:35 PM

Sensex top gainers and losers

3:33 PM

Markets at close

Benchmark indices fell for a fifth straight session on Monday, with the broader NSE index hitting its lowest in a month, as Asian shares slumped, while worries remained that the Reserve Bank of India would turn more hawkish at its policy meeting later this week.

 

The S&P BSE Sensex ended at 34,757, down 309 points while the broader Nifty50 index settled at 10,666, down 94 points.

3:20 PM

Boost non-tax revenue: Further fiscal slippage to dent Budget's credibility

 

In the run-up to the Union Budget, the primary concern for most observers was the state of the fiscal health. Union Finance Minister Arun Jaitley did little to allay the apprehensions as he announced a slippage of 30 basis points (bps) in the fiscal deficit for FY18.

 

Worse, the fiscal deficit for the next year has been targeted at 3.3%, which is quite a distance from Mr Jaitley’s initial promise in 2014 to achieve the 3 per cent mark in three years. He has now postponed getting to 3% to 2020-21. CLICK HERE FOR FULL STORY

3:10 PM

Indirect Tax: Budget on customs could have been more positive

 

The indirect tax Budget of 2018-19 was not expected to devote any time to GST. So the officers had all the time to achieve a meaningful improvement in the customs tariff. Only the sufferers know that the customs tariff has got 19 rates of duty. Then there are hundreds of exemptions and conditions and lists which make customs duty classifications quite complicated. CLICK HERE FOR FULL STORY

3:00 PM

India 'might' achieve 3% fiscal deficit target by 2019-20: Finance ministry official

 

India 'might actually' be able to reduce the fiscal deficit to 3% of the GDP by 2019-20, a finance ministry official said on Monday, a year ahead of a stated goal of the government announced last week in the Union Budget. READ MORE

2:45 PM

Corporate governance issues: No respite for Vakrangee; stock down by half

 

The Vakrangee stock has shed 53% over the past 10 days, including 10% in trade on Monday on corporate governance issues. The company was reportedly being investigated by the Securities and Exchange Board of India (Sebi) for price and volume manipulation in the first half of 2017. The company has, however, indicated that the news is baseless and factually incorrect and they had not received any official communications from the regulator or the exchanges.

 

PC Jeweller also has slipped in a similar way before recovering and is now down 26% over the past week on the back of its links with Vakrangee. Vakrangee had invested Rs 1.12 billion out of its total treasury fund of about Rs 15 billion in PC Jeweller on January 25. CLICK HERE FOR FULL STORY

2:33 PM

NEWS IMPACT: Sugar stocks rise 3-6% as food ministry proposes hike in import duty

Sugar stocks, such as KCP Sugar, Dhampur Sugar, Simbhaoli Sugar, are trading 3-6% higher on the BSE on reports that the food ministry has proposed doubling of the import duty on sugar to 100% to curb cheaper imports, check falling wholesale prices of sweetener and ensure timely payment to cane farmers

 

2:27 PM

Food ministry proposes hike in sugar import duty to 100% 

 

The food ministry has proposed doubling of the import duty on sugar to 100% to curb cheaper imports, check falling wholesale prices of sweetener and ensure timely payment to cane farmers, sources said.

 

Wholesale prices have fallen below the cost of production in view of estimated 6 million tonnes more production in the 2017-18 season (October-September). In retail market, sugar is being sold at Rs 40-42/kg.

 

According to the sources, a recommendation has been made to the finance ministry that import duty on sugar be raised from the current 50% to 100% to protect domestic sugarcane farmers.

(Source:PTI)

2:24 PM

Strong India sales help Suzuki Motor post 68% rise in Q3 profit

 

Japan's Suzuki Motor Corp on Monday announced a 68% jump in operating profit in the third quarter due to ongoing growth in automobile and motorcycle sales in India, its biggest market, as well as in Europe and at home.

 

Operating profit at Japan's No 4 automaker came in at 86.9 billion yen ($790.36 million) in October-December, jumping from 51.85 billion yen a year earlier and exceeding a median forecast of 77.49 billion yen from nine analysts polled by Thomson Reuters. READ MORE

2:15 PM

Market Check

S&P BSE Sensex	34,627.15		-1.25%
Nifty 50	10,641.55		-1.11%
S&P BSE 200	4,624.40		-1.11%
Nifty 500	9,303.65		-1.13%
S&P BSE Mid-Cap	16,419.44		-0.94%
S&P BSE Small-Cap	17,642.83		-1.15%

2:00 PM

Budget 2018: No material impact of slippage in fiscal deficit, says Moody's

 

The Budget for 2018-19 strikes a balance between fiscal prudence and growth, and a "slight" slippage in fiscal deficit has no material impact on overall economic strength. READ MORE
 

1:46 PM

United Breweries hits record high post Q3 results

 

United Breweries (UBL) hit a record high of Rs 1,243, up 9.5% on BSE in intra-day trade, after the company said on a year to date basis, volume grew 6% compared with industry growth of 3%.

 

The company gained market share in its important markets including Rajasthan, Karnataka, Orissa and West Bengal. READ MORE
 

1:31 PM

Smooth road ahead for Ashok Leyland; strong growth to drive earnings faster

 

The steps taken by Ashok Leyland (ALL) over the past few years, along with an improving industrial climate, are helping the company gain ground in its business and improve its financials. The quarter ended December 2017 (Q3) is evidence of that.

 

And the company’s management and analysts say the situation will be better. CLICK HERE FOR FULL STORY

1:15 PM

Sectoral Trend

1:10 PM

BofAML on economy

 

RBI MPC will persist with slightly hawkish pause, from Feb, on Wed. We see 25bp RBI rate cut in Aug if rains are normal. Onion prices are falling after tomatoes. This supports our inflation-is-peaking call. We track Jan inflation at 5%

 

(Source: BofAML report)

1:09 PM

Goldman Sachs on Budget 2018

 

The central government has outlined a fiscal deficit target of 3.3% of GDP in FY19 versus a revised estimate of 3.5% in FY18 (previously 3.2%). This represents some fiscal consolidation, albeit at a slower pace compared to the FRBM recommended medium-term path. Although the budgeted deficit is in line with our expectations, we think the revenue targets are on the optimistic side and we see risks of fiscal slippage unless economic activities formalize at a rapid pace. 

Spending priorities in the budget are tilted towards the rural economy. We remain bearish INR longer-dated rates. Our equity analysts see the budget as positive for infrastructure, industrials, autos, financials, and healthcare, but negative for oil & gas.

 

(Source: Goldman Sachs report)

1:05 PM

Budget 2018 strikes a balance between growth and fiscal prudence: Moody's

 

Global rating agency Moody’s on Monday said Budget 2018 had struck a balance between fiscal prudence and growth. A slight slippage in the Budget deficit targets was in line with expectations and would have no material impact on the country's overall fiscal strength, Moody's added.

 

In the Budget, the central government revised its 2018-19 projections for the fiscal deficit to 3.3 per cent of gross domestic product (GDP) from the original target of 3 per cent. It also revised its estimate for 2017-18 to 3.5 per cent of GDP, compared with the original target of 3.2 per cent. READ MORE

 

12:54 PM

Multiple factors to keep markets on tenterhooks after Friday's fall

 

Market players are worried about the direction the stock markets will take this week, following Friday’s bloodbath in US equities and the correction in bond prices. The yield on the benchmark 10-year treasury note touched a four-year high as fears of inflation and aggressive rate hikes by the US Federal Reserve spooked investors. READ MORE

12:41 PM

EXPERT'S TAKE ON MARKETS

Markets will consolidate over next 6 months, says Jyotivardhan Jaipuria of Veda Investment Managers in this exclusive interview READ MORE

Jyotivardhan Jaipuria, founder and managing director, Veda Investment Managers

12:40 PM

US FED WATCH

 

Jerome Powell becomes Fed Reserve Chief as US economy begins to show strain CLICK HERE FOR THE FULL STORY

12:39 PM

Five takeaways from Arun Jaitley's fifth Budget

 

The fifth Budget of Finance Minister Arun Jaitley has already drawn huge attention for its ambitious health insurance scheme, a special minimum support price package for farmers, the imposition of the long-term capital gains tax on equity, an increase in the customs duty and surcharge on a host of imported goods and a substantially relaxed road map for fiscal consolidation READ MORE

12:38 PM

LTCG shadow looms large over Tata group's plan to reduce cross-holdings

 

The long-term capital gains (LTCG) tax, proposed in the Union Budget 2018-19, will make it costly for the Tata group to consolidate promoter holdings in various listed companies owned by Tata Sons, the group’s holding company, from the next financial year, 2018-19 READ MORE

Tata Group

12:30 PM

Nifty PSU Bank index recovers 3% from intra-day low

 

Shares of public sector banks were in focus with the Nifty PSU Bank index recovering more than 3% from its early morning low on the National Stock Exchange (NSE).

 

Nifty PSU Bank was trading 0.41% higher at 3,507, bouncing back 3.1% from 3,401 levels recorded in intra-day trade today. The index hit high of 3,510 so far. READ MORE
 

12:17 PM

Shakti Pumps extends gain after institutional buying

 

Shakti Pumps (India) has rallied 4% to Rs 551, extending its Friday’s 1% gain on BSE in otherwise weak market, on institutional buying.

 

On February 1, 2018 Portfolio Management Schemes of Old Bridge Capital Management bought 81,434 shares representing 0.43% stake in Shakti Pumps through open market. READ MORE

12:02 PM

Market Check

S&P BSE Sensex	34,749.39		-0.91%
Nifty 50	10,666.60		-0.87%
S&P BSE 200	4,636.07		-0.86%
Nifty 500	9,325.25		-0.90%
S&P BSE Mid-Cap	16,439.49		-0.82%
S&P BSE Small-Cap	17,644.83		-1.14%

11:45 AM

CBDT says no inflation adjustment available for LTCG tax: Things to know

 

Amid adverse reactions coming from stock markets to the proposed long-term capital gains tax on securities, the income-tax department on Sunday clarified that price indexation (adjustment to inflation) will not be available for this tax. The tax comes into effect from April 1, 2018, the clarifications said.

 

Click here for FAQs regarding taxation of long-term capital gains proposed in Finance Bill

11:34 AM

Indian bond yields rise further on US cues

 

A strong US payrolls report on Friday raised concerns the Federal Reserve might hasten to increase interest rates to stem inflation, that pushed the yield to a four-year high CLICK HERE FOR MORE

11:31 AM

Sensex slips over 1,000 points in 2 sessions: What investors should do now

 

Last Friday, the combined market cap of all BSE-listed companies fell by Rs 4.6 trillion to Rs 148.54 trillion from Rs 153.1 trillion on Thursday. In a matter of just eight trading days, the market cap of BSE stocks fell by over Rs 8 trillion from the peak value of Rs 156.56 trillion. This massive fall was mainly due to a very fast and large buildup in the base of the overall market cap in the last one year. READ MORE