Nifty, Sensex May Turn Weak – Thursday closing report

We had mentioned in Wednesday’s closing report that Nifty, Sensex continued to look strong. The major indices of the Indian stock markets were range-bound on Thursday and ended flat. On the NSE, there were 1,001 advances, 730 declines and 329 unchanged. The trends of the major indices in the course of Thursday’s trading are given in the table below:

 

 
The Indian equity market bounced back into the green, after falling more than 140 points during the late-afternoon trade session on Thursday. The abrupt downfall in the market's trajectory came after both the indices -- S&P BSE Sensex and NSE Nifty50 -- rose on the back of a surprise move by the Reserve Bank of India (RBI) to go for a rate cut. At around 2 p.m., the BSE Sensex traded at 37,100.88 points, higher by 125.65 points or 0.34% from the previous close of 36,975.23 points. It touched an intra-day high of 37,172.18 and a low of 36,915.13. The NSE Nifty50 on the National Stock Exchange traded higher by 36.95 points or 0.33% at 11,101.55, from the previous close of 11,062.45 points. Interest sensitive auto and realty stocks gained around 1%, while the key banking stocks gained 0.50% as a policy rate cut would lead to lower interest rates for loan seekers. 
 
In the final monetary policy review of the current fiscal, the Reserve Bank of India (RBI) on Thursday lowered its key lending rate for commercial banks to 6.25%.The decision was guided on the basis of an assessment of the evolving macroeconomic situation wherein headline inflation is projected to soften further and the economy's growth impulses had moderated, the RBI said. The central bank was more accommodating, changing its monetary policy stance from "calibrated tightening" to "neutral".  
 
Along with the lower repo rate, or the RBI's short term lending rate for commercial banks, the central bank's reverse repo rate has been adjusted to 6%, and the marginal standing facility (MSF) rate and the Bank Rate to 6.5%. "Headline inflation is projected to remain soft in the near term reflecting the current low level of inflation and the benign food inflation outlook.  "Beyond the near term, some uncertainties warrant careful monitoring," RBI Governor Shaktikanta Das, who presided over his first monetary policy committee (MPC) meeting said while making the policy review announcement.  "The MPC noted that the output gap has opened up modestly as actual output has inched lower than potential. Investment activity is recovering...but the need is to strengthen private investment activity and buttress private consumption," he said following the meeting that started on Tuesday.  It is vital for the RBI to "act in a timely manner" to support growth, given that inflation continues to remain benign, and in view of the fact that investment demand has decelerated, Das added.  The RBI also revised downwards its consumer price index (CPI), or retail inflation, projection to 2.8% for the ongoing quarter, to 3.2%-3.4% in the first half of the next fiscal and 3.9% in the third quarter of 2019-20, "with risks broadly balanced around the central trajectory". The central bank projected GDP growth to be in the range of 7.2%-7.4% in the first half of the next fiscal beginning April, and at 7.5% in the third quarter "with risks evenly balanced."
 
Two Reliance Jio's group companies shall soon shift their registered headquarters from Maharashtra to Gujarat pursuant to the outcome of an Extraordinary General Meeting (EGM) held here on Tuesday. Reliance Jio Digital Services Ltd. and the Reliance Jio Messaging Services Ltd. - currently based at Maker Chamber IV, Nariman Point in Mumbai, will go to a new location in Gujarat, the sources explained. An EGM on February 5 passed a Special Resolution to the effect for the two companies, by which they will now apply to the Central government under Section 13 of the Companies Act, 2013.  Reliance Industries shares closed at Rs1,288.00, down 1.70% on the NSE.
 
Telecom major Vodafone Idea on Wednesday reported a consolidated net loss of Rs5,004.6 crore for the quarter ended December 31, 2018. This was the first full quarter results for Vodafone Idea after the merger of Vodafone India and Idea Cellular completed in August. The company had reported a net loss of Rs4,973.8 crore during the July-September quarter. 
 
Private airline Jet Airways on Wednesday introduced a staggered framework to reward its domestic guests with substantially lower penalties in exchange for advanced intimation for changes in their bookings including cancellations, changes. The new policy would be implemented from February 7. "As part of the new policy, charges for various changes including those for flight, date, sector, booking class, cabin and others and refund penalties for ticket cancellations at least seven days prior to the date of travel would attract lower penalties compared to those who undertake booking changes within seven days," Jet Airways, said in a statement. "The dynamic penalties will reward guests who plan in advance with substantial savings," it added. Jet Airways India shares closed at Rs237.00, up 0.06% on the NSE.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 
 

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Nifty, Sensex Continues to Look Strong – Wednesday closing report
We had mentioned in Tuesday’s closing report that Nifty, Sensex were range-bound and had closed with minor gains over Monday’s close. Today, the major indices of the Indian stock markets opened over Tuesday’s closing price and closed with higher gains. On the NSE, there were 737 advances, 977 declines and 345 unchanged. The trends of the major indices in the course of Wednesday’s trading are given in the table below:
 
 
Amid mixed global markets and healthy quarterly results of index heavyweights, key equity indices by over 1 per cent, during the late afternoon session of the trade on Wednesday. In addition, the equity indices also gained as both the foreign institutional investors (FIIs) and domestic institutional investors (DIIs) were net buyers on Tuesday. FIIs bought stocks worth Rs 420.65 crore while the DIIs bought stocks to the tune of Rs 194.31 crore.
 
Investors will also be keeping an eye on the Reserve Bank of India's (RBI) bi-monthly monetary policy outcome scheduled on Thursday. Expectations of rate cut along with some healthy quarterly results, lifted the key equity indices on Wednesday. Tata Steel spurted by 4.08% while Bajaj Finance gained 3.54%. 
 
Sector-wise, auto, IT and metal stocks led the gains on Sensex, while the consumer durables and utilities declined. Additionally, drop in bond yield and marginal strength in rupee added strength to the expectation of lowering of rates. The BSE Sensex closed 358.42 points or 0.98% higher at 36,975.23, while the Nifty finished the trade 128 points or 1.17% higher at 11,062.45. Except for Axis Bank and IndusInd Bank, all other Sensex stocks gained. ONGC, Bajaj Auto and Tata Motors (DVR) gained in the range of 2-3%.
 
State-run Allahabad Bank on Wednesday announced a net loss of Rs732.81 crore for the quarter ended December 31, 2018, narrowing the net loss of Rs1,263.79 crore reported for year ago period. Global technology and services provider Bosch Group on Wednesday inaugurated the Robert Bosch Center for Data Science and Artificial Intelligence (RBC-DSAI) at the Indian Institute of Technology-Madras (IIT-M) with a planned investment of 2.5 million Euros (over Rs 20 crore) over five years.
 
Credit rating company Fitch Ratings has placed India's Tata Motors credit rating on negative watch. The rating agency pointed at increasing risks for Tata Motors’ British luxury car unit - Jaguar Land Rover (JLR) - over a potentially chaotic Brexit. “Trade barriers and logistic issues from a disorderly Brexit could have an impact on JLR’s competitive positioning and ‍lead to significantly lower sales and profitability,” the credit rating agency said.
 
As a part of their asset monetisation plan to repay debt, promoters of Zee Entertainment Enterprises Ltd (ZEEL) are open to sell over 50% of their holdings in the firm and are in talks with more than two investors for the same, a senior company official said. 
 
Executives from top Indian steel producer JSW Steel and other steel companies attended the meeting with government officials today and sought an increase in duties on imports of steel to check surging shipments from overseas, a news source said. 
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 
 
 

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Nifty, Sensex Struggling to Head Higher – Tuesday closing report

We had mentioned in Monday’s closing report that Nifty, Sensex might continue to head higher. The major indices of the Indian stock markets were range-bound on Tuesday and closed with minor gains over Monday’s close. On the NSE, there were 548 advances, 1,213 declines and 297 unchanged. The trends of the major indices in the course of Tuesday’s trading are given in the table below:

 

 
Ahead of a three-day RBI monetary policy review meet, set to start later in the day, Sensex and Nifty logged mild gains on Tuesday. Capital goods, FMCG and metal stocks declined while energy, IT (information technology) and banking stocks surged. At 2.54 p.m., the S&P BSE Sensex traded 78.22 points or 0.21% up from its previous close of 36,582.74 after touching a high of 36,727.83 and a low of 36,495.83. The broader Nifty traded at 10,935.35, up 23.10 points or 0.21%. Stock-wise, IndusInd Bank, Bajaj-Auto, HeroMoto Corp, Mahindra and Mahindra and Maruti Suzuki gained in the range of 1% to 3%. In contrast, Tata Motors, Tata Motors (DVR), Tata Steel, Coal India and ONGC declined in the range of 1% to 3%.
 
Shares of telecom major Bharti Airtel Ltd slipped over 4% on Tuesday after ratings agency Moody's downgraded some notes of the company by the subscribers. After falling up to 4.33% in early trade, the company's stock recovered to trade at Rs306.20 per share, down 0.13% during the afternoon session on the BSE.
 
Moody's downgraded the senior unsecured rating for Airtel and backed senior unsecured notes issued by subsidiary Bharti Airtel Int'l (the Netherlands) to 'Ba1', or junk rating, from 'Baa3'. The American rating agency also withdrew the company's 'Baa3' issuer rating and said the outlook was negative. 
"The downgrade reflects uncertainty as to whether or not the company's profitability, cash flow situation and debt levels can improve sustainably and materially, given the competitive dynamics in the Indian telecom market," Moody's Vice-President Annalisa DiChiara said in a note. "A significant recovery in cash flow from the core Indian mobile segment is needed to strengthen the company's credit quality and support greater financial flexibility," DiChiara said. Moody's, at the same time, assigned a Ba1 corporate family rating (CFR) to Airtel, saying it reflects the company's solid market position in the high growth Indian mobile market. "We recognise the company has raised $1.45 billion from the pre-IPO of its African operations, with around $1 billion used to repay debt on consolidated basis," the ratings agency said. "The rating outlook could be stabilised if Bharti strengthens its credit profile, with stabilisation of its core Indian mobile and non-mobile services," it added.  Moody's estimated that the profitability of Bharti's Indian mobile segment will remain low over the next several quarters in the absence of a fundamental change in the pricing of mobile services, together with proportional shift in the composition of Bharti's subscriber base to high-end 4G customers. Bharti Airtel last week said its net income for the October-December quarter declined nearly 72% to Rs86 crore due to continuing pricing pressure. The company has, however, taken steps to improve revenues and profitability including its minimum recharge plans, the Moody's report added. Bharti Airtel shares closed at Rs307.00, up 0.15% on the NSE.
 
Budget airlines SpiceJet on Monday said it will launch a daily non-stop flight service between Hyderabad and Saudi Arabia's Jeddah from March 25. According to the airline, Jeddah will be its ninth international destination and third destination in the Middle East. The airline said that it will service the route using its new 189 seater Boeing 737 MAX aircraft. "The new service will enable SpiceJet to provide over 2500 seats per week on the sector," the airline said in a statement. "To mark this important launch, SpiceJet has announced a special fare of Rs13,499 (all-inclusive) for Hyderabad-Jeddah and Rs10,799 (all inclusive) for Jeddah-Hyderabad." SpiceJet shares closed at Rs77.10, down 1.47% on the NSE.
State-owned lender IDBI Bank's net loss widened during the quarter ended December 31, 2018 due to higher provisioning for non-performing assets (NPAs). According to the state-run lender, its net loss in the three months ended December 31, 2018 widened to Rs4,185.48 crore from a net loss of Rs1,524.31 crore reported for the same period of the last financial year. "Net loss stands at Rs4,185 crore for QE Dec 2018 on account of higher provisioning," the bank said in a statement. The lender's total provisions for NPA during the quarter under review increased by 39.51% to Rs5,074.80 crore, compared to Rs3,637.49 crore in Q3FY18. As per the lender's statement, gross NPA and net NPA ratio improved to 29.67% and 14.01%, respectively, as on December 31, 2018 as against 31.78% and 17.30%, respectively, as on September 30, 2018. "Slippages during the quarter were Rs2,211 crore which were lowest during the last 7 quarters," the statement said. IDBI shares closed at Rs46.70, down 7.52% on the NSE.
 
Exide Industries on Monday posted a net profit of Rs155.04 crore in the third quarter of the current fiscal, up marginally as against Rs154.27 crore in the same period last year. Its net turnover for the quarter under review was at Rs2,496.84 crore, up by 9.59% from Rs2,278.29 crore in the corresponding quarter of the previous fiscal. The battery maker's Managing Director and CEO G. Chatterjee said that volumes in automotive, motorcycles, UPS and solar batteries in the third quarter have grown quite well. The company is focusing on cost control and technology upgradation as strategies to improve the bottom-line. Exide Industries shares closed at Rs220.25, down 1.81% on the NSE.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 
 

 

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