Sensex ends 111 points lower, Nifty holds 11050; Nifty PSU Bank index drags

All that happened in the market's today

3:40 PM

Nifty PSU Bank Index down 5% on bank recapitalisation

3:37 PM

Sectoral Trend

3:35 PM

Sensex top gainers and losers

3:32 PM

Markets at Close

 

Benchmrk indices fell on Thursday, snapping a six-day record-setting rally, as profit-taking hit IT stocks while large state-run lenders slid as they stood to receive less money than expected from a government recapitalisation plan.

 

The S&P BSE Sensex ended at 36,050, up 111 points while the broader Nifty50 index settled at 11,069, up 16 points

3:22 PM

Real estate transaction cost needs to be brought down: Abhishek Lodha

 

Mumbai based Lodha Developers, with estimated sales of Rs 85 billion in 2017-18, over 20 per cent higher than in the previous financial year, is one of the largest real estate players in the country. At a time when India’s residential real estate market is seeing its biggest demand slump since 2010, the company, promoted by lawyer-turned-businessman Mangal Prabahat Lodha, now a sitting Bharatiya Janata Party (BJP) member of legislative Assembly (MLA) from the affluent Malabar Hills constituency in South Mumbai, has become a consolidator. CLICK HERE FOR FULL STORY

3:10 PM

Budget 2018: Betting on stock market boom? Capital gains tax may end party

 

The taxman may end up being a speed bump for the Indian stock market, which like its counterparts across the world has marched to multiple records in the past year.

 

Brokerages including Kotak Securities say Prime Minister Narendra Modi's administration may make it harder for investors to claim exemptions on capital gains from equity investments when the federal Budget is announced on February 1. Modi's move in 2016 to scrap high-value currency bills and the implementation of the new sales tax last July have hurt demand and revenue, forcing the government to borrow more. READ MORE

2:59 PM

Recap to mitigate PSB risks but NPAs to impact near-term performance: Fitch

 

The government's Rs 881.39 billion capital infusion in struggling public sector banks should help in part to mitigate risks but resolution of bad assets and continued high credit costs hinder the sector's near-term performance, Fitch Ratings said on Thursday.

 

While the capital infusion plan was less than half of its estimate of $65 billion needed for the sector, Fitch said yesterday's announcement will encourage banks to resolve their non-performing loan (NPL) stock faster as improved capital buffers bolster their ability to absorb potential large haircuts. CLICK HERE FOR FULL STORY

2:46 PM

Investing in TCS? Street may be ignoring these three near-term headwinds

 

The market capitalisation of Tata Consultancy Services is close to the Rs 6-trillion mark, with the company’s stock gaining 46% over its 52-week low of February last year. Half of the gains have come over the past month, and a large part of those after the December quarter results. Given the sharp price rise, the stock is trading at an expensive valuation of 20 times its FY20 estimates. The near-peak valuations are at a 10-14% premium to the target prices of brokerages.

 

Analysts at Kotak Institutional Equities say that the stock is trading at full valuations even after the recognition of potential cyclical uptick in business. The stock has already reached the peak-cycle multiple, implying about 12% growth for the next 7-8 years. READ MORE

2:28 PM

Corporate Affairs Ministry asks ICAI to submit report on bitcoin auditing

 

The Institute of Chartered Accountants of India (ICAI) has been asked by the ministry of corporate affairs to submit a report on auditing of Bitcoins. ICAI will submit its report by 31st March 2018.

 

"The study will look into how Bitcoin disclosures can be made in the financial statement," said Debashis Mitra, council member, ICAI, at a seminar on corporate governance, analysing Uday Kotak Committee recommendations and recent changes in Companies (Amendment) Bill, 2017, organised by the CII. The disclosure format will not only be meant for all Bitcoin transactions made this financial year but also set standard for future such transactions. Also, one of the motives behind the study was to insulate auditors of any legal discrepancies arising out of such transactions. CLICK HERE FOR FULL STORY

2:13 PM

Jindal Saw extends fall post Q3 results

 

Jindal Saw dipped 8% to Rs 154, extending Wednesday’s 4% decline on BSE after the company reported 19% growth in net profit at Rs 963 million for the quarter ended December 2017 (Q3FY18). It had profit of Rs 807 million in the same quarter last fiscal.

 

Total income increased 49% to Rs 21,807 million from Rs 14,666 million in the corresponding quarter of previous year. READ MORE

1:59 PM

Sectoral Trend

1:45 PM

Oil producing countries must ensure price balance: Pradhan at Davos

 

Union minister Dharmendra Pradhan on Wednesday said responsible pricing is key for the growth of the global oil industry as consumers in countries like India are price sensitive.

 

He also asserted that producing countries must ensure there remains a price balance, the oil minister told world leaders in Davos.

 

"Responsible pricing is key for the balance and growth of global oil industry as consumers in countries like India are price sensitive," Pradhan said. READ MORE

1:30 PM

Do not rush to buy PSU banks post recap plan

 

Despite the capital infusion of Rs 881 billion announced by the government across public sector banks (PSB), investors should not rush to buy these PSBs but evaluate on a case-to-case basis and invest selectively, analysts say.

 

As a part of the Rs 2.1-trillion bank recap plan spread over FY18 and FY19 announced on October 25, 2017, the government on Wednesday announced Rs 881.39 billion capital infusion in 20 public sector banks (PSBs) during the current fiscal, with IDBI Bank cornering a lion's share of Rs 106.1 billion. READ MORE

1:15 PM

Dr Reddy's Q3 profit tumbles 38% as sales decline on US pricing pressure

 

Indian generic drugmaker Dr Reddy's Laboratories Ltd posted a 38.5 per cent slump in quarterly net profit as sales declined due to pricing pressure in the United States, its biggest market.
 

Net profit was Rs 3.03 billion ($47.7 million) in the third quarter ended December 31, compared with Rs 4.92 billion a year earlier, the company said.

1:00 PM

Market Check

S&P BSE Sensex	36,040.30		-0.34%
Nifty 50	11,050.30		-0.32%
S&P BSE 200	4,861.70		-0.27%
Nifty 500	9,824.80		-0.30%
S&P BSE Mid-Cap	17,934.88		-0.23%
S&P BSE Small-Cap	19,429.47		-0.23%