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07
February 2019
I 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:The Total Investment & Insurance Solutions
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Major Indices (The Total
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