KEY HIGHLIGHTS
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India’s Manufacturing Growth Moderates In July
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Reliance Group Shares Fall After Crisil Downgrades Reliance Infra's Bonds
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Maruti Suzuki Falls After Monthly Sales Decline For First Time In 19 Months
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Inox Leisure Surges After HDFC Mutual Fund Buys Stake
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Opening Bell: Sensex, Nifty Flat; Tata Motors Slumps
Closing Bell: Sensex Snaps Eight Day Winning Streak
Indian equity benchmarks halted their record closing spree after Reserve Bank of India raised interest rate for second time in current financial year to a two-year high.
The S&P BSE Sensex snapped its best winning streak in over two months to close 0.2 percent or 85 points lower at 37,522 and the NSE Nifty 50 index declined 0.1 percent or 10 points to 11,346.
The Monetary Policy Committee voted 5-1 to hike the repo rate from 6.25 percent to 6.5 percent to rein in inflation and stabilize the declining rupee. The decision was in line with expectations. Of the 53 economists polled by Bloomberg, 40 had forecast a rate hike at the August policy meeting.
Rate sensitive stocks were worst hit as the Nifty Auto index fell 0.8 percent and the Nifty Private Bank index declined 0.8 percent. On the other hand, Nifty Pharma index was top sectoral gainer, up 1.3 percent.
Government Collects Rs 96,483-Crore GST For June
Goods and services tax collections for June stood at Rs 96,483 crore. That compares with Rs 95,610 crore revenue collected in May, Rs 94,016 crore received in April, and Rs 1.03 lakh crore in March.
Yields Drop As RBI Maintains Neutral Stance
Bond yields dropped after RBI maintained its neutral stance while raising repo rate by 25 basis points. The yield on 10 year government bond which rose 8 basis points after RBI policy decision fell 5 basis points to 7.72 percent.
RBI Hikes Repo Rate To A Two-Year High
Reserve Bank of India's Monetary Policy Committee (MPC) raised repo rate by 25 basis points to a two-year high of 6.5 percent.
Key highlights from Reserve Bank of India Monetary Policy Decision:
- Repo rate hiked 25 basis points to a two-year high of 6.5 percent
- Reverse repo rate stands at 6.25 percent
- Marginal standing facility at 6.75 percent
- RBI's Monetary Policy Committee maintains neutral stance
- MPC targets achieving medium-term target for consumer price index (CPI) inflation of 4 percent within a band of +/- 2 percent
- MPC remains sanguine on growth and maintained its projection of 7.4 percent GDP
- MPC voted 5-1 in favor of a rate hike
- CPI inflation seen at 4.6 percent in Q2, 4.8 percent in H2 FY19, 5 percent in Q1 FY20
- Banks, NBFCs allowed to co-originate loans for priority sector
- Inflation is projected at 4.6 percent in Q2, 4.8 percent in H2 of 2018-19 and 5.0 percent in Q1
- RBI to continue to actively monitor liquidity, says deuty governor Viral Acharya
Market Check: Sensex Struggles, Bond Yield Spikes After RBI Raises Repo Rate
Reserve Bank of India's Monetary Policy Committee raised repo rate by 25 basis points to a two-year high of 6.5 percent.
The equity markets continued to trade lower while the bond yield spiked after the RBI decision.
The S&P BSE Sensex fell 0.27 percent 118 points to 37,480 and the NSE Nifty 50 index declined 0.3 percent or 29 points to 11,325. Yields on the 10-year government bond rose 8 basis points to 7.85 percent.
Market Check: Sensex, Nifty Struggle As Street Awaits RBI Decision
- Indian equity benchmarks extended decline ahead of Reserve Bank of India's monetary policy decision.
- The S&P BSE Sensex fell 0.26 percent or 100 points to 35,505 and the NSE Nifty 50 index declined 0.2 percent or 21 points to 11,336.
- Rate sensitive banking and auto indices on NSE were trading 0.6 percent lower. While realty index rose 0.2 percent.
Solar Industries, NMDC Among Stocks Moving On Heavy Volumes
- Solar Industries: The Nagpur-based explosives maker rose as much as 1,239. Trading volume was 23.6 times its 20-day average.
- NMDC: The Hyderabad-based mining company rose as much as 3.75 percent to Rs 109.15. Trading volume was 13 times its 20-day average.
- Network 18: The Noida-based news broadcasting company rose as much as 0.2 percent to Rs 43.60. Trading volume was 13 times its 20-day average.
- TV Today: The Delhi-based news broadcasting company rose as much as 3.99 percent to Rs 441. Trading volume was 13.5 times its 20-day average.
Stocks Drift Amid Earnings, Trade Noise
European stocks drifted and the dollar strengthened as investors sifted through the latest news on the U.S.-China trade front and positive corporate earnings from the likes of Apple. Japanese bonds led sovereign debt lower.
Tata Global Beverages Falls After Profit Misses Estimates In Q1
Shares of the Kolkata-based tea and coffee producer fell as much as 3.3 percent to Rs 238.65 after its profit missed Bloomberg consensus estimates in June quarter.
Key earnings highlights:
- Revenues up 5.8 percent at Rs 1,802.6 crore versus Rs 1,704.4 crore (YoY); estimate of Rs 1,769 crore
- Net profit down 6.6 percent at Rs 116.2 crore versus Rs 124.4 crore (YoY); estimate of Rs 163 croe
- Ebitda up 1.8 percent at Rs 248.8 crore versus Rs 244.2 crore (YoY)
- Margin at 13.8 percent versus 14.3 percent (YoY)
Oil Retailers Hold Gains After Indian Oil Raises Jet Fuel Price
Shares of oil marketing companies held on to gains after Indian Oil increased jet fuel prices by 1.5-2.2 percent in four metro cities.
- Indian Oil up 2.1 percent at Rs 167.80
- Bharat Petroleum advances 1.8 percent to Rs 396.60
- Hindustan Petroleum rises 2.1 percent to Rs 291
Mahindra & Mahindra Fluctuates After July Sales Rise 13%
Shares of the Mumbai-based auto maker swung between gains and losses after it reported July sales numbers.
Key sales highlights:
- Total sales up 13 percent at 47,199 units versus 41,819 units (YoY)
- Total domestic sales up 12 percent at 44,605 units versus 39,834 units (YoY)
- Total exports up 31 percent at 2,594 units versus 1,985 units (YoY)
- Utility vehicle sales decline 7 percent to 17,879 units versus 19,152 units (YoY)
- Cars and van sales up 1 percent at 1,902 units versus 1,882 units (YoY)
- Commercial vehicle sales rose 28 percent to 19,824 units versus 15,023 units (YoY)
- Farm equipment sales up 20 percent at 18,957 units versus 22,679 units (YoY)
ITC Swings After Block Deal
- ITC has 10 lakh shares change hands in a block. Stock up 0.1 percent at Rs 297.
Buyers and sellers were not immediately known
Source: Bloomberg
Emami Falls After Profit Misses Estimates In June Quarter
Shares of the Kolkata-based FMCG company fell as much as 7.4 percent to Rs 547.60 after its profit missed Bloomberg consensus estimates in June quarter.
Key earnings highlights:
- Revenue up 16.2 percent at Rs 614.4 crore versus Rs 528.8 crore (YoY)
- Net profit at Rs 26.7 crore versus Rs 1 crore (YoY); estimate of Rs 73.69 crore
- Ebitda up 29.9 percent at Rs 211.7 crore versus Rs 163 crore (YoY)
- Margins at 34.5 percent versus 30.8 percent (YoY)
Market Check: Rate Sensitives Fall Ahead Of RBI Policy
- Indian equity benchmarks erased gains as rate sensitive — realty, auto and banking shares fell ahead of Reserve Bank of India's monetary policy decision.
- The S&P BSE Sensex fell 0.12 percent or 45 points to 37,561 and the NSE Nifty 50 index declined marginally to 11,354.
- Reserve Bank of India is likely to hike interest rates later today as it tries to rein in inflation and shore up Asia’s weakest major currency.
- The central bank will probably increase the repurchase rate by 25 basis points to a two-year high of 6.5 percent on Wednesday, according to 40 of the 53 economists in a Bloomberg survey, with the rest expecting no change.
- Six out of 11 sector gauges compiled by National stock Exchange were trading lower led by the Nifty Auto index's 0.6 percent drop. All banking indexes compiled by the NSE were also trading lower with Nifty Bank index declining 0.4 percent.
- The overall market breadth was marginally positive as 1,254 shares were declining while 1,039 were advancing on the BSE.
Ashok Leyland Rises After July Sales Jump 27%
Shares of the Chennai-based commercial vehicle maker rose as much as 3.9 percent to Rs 117.20 after its sales rose 27 percent in July.
Key sales highlights:
- Medium and heavy commercial sales 22 percent to 10,996 units versus 9,026 units (YoY)
- Light commercial vehicle sales rose 42 percent to 4,203 units versus 2,955 units (YoY)
- Total sales rose 27 percent to 15,199 units versus 11,981 units (YoY)
India’s Manufacturing Growth Moderates In July
India’s manufacturing activity improved at a slower pace in July on the back of moderate growth in output, new orders and employment. The activity had improved at the fastest pace in the year so far in June.
Reliance Group Shares Fall After Crisil Downgrades Reliance Infra's Bonds
Shares of most of Anil Ambani promoted companies were trading lower after Crisil lowered rating on Reliance Infrastructure's non-convertible debentures of Rs 585 crore and bonds of Rs 125 crore from ‘BB+’, the ratings agency said in a statement, Bloomberg reported.
- Reliance Infrastructure down 4.2 percent
- Reliance Capital falls 3.8 percent
- Reliance Home Finance declines 3.75 percent
- Reliance Power slips 3 percent
Jagran Prakashan Surges After June Quarter Earnings
Shares of the Kanpur-based publisher of Hindi daily Dainik Jagran rose as much as 11.66 percent to Rs 129.80 after it reported June quarter earnings.
Key earnings highlights:
- Revenue up 2 percent at Rs 603 crore.
- Net profit down 2 percent at Rs 85 crore.
- Ebitda up 2 percent at Rs 164 crore.
- Margin unchanged at 27.2 percent.
Maruti Suzuki Falls After Monthly Sales Decline For First Time In 19 Months
Shares of the country's largest car maker fell as much as 2 percent to Rs 9,328 after it reported first monthly sales decline in July since December 2016.
Key sales highlights:
- Total sales declined 0.6 percent to 1,64,369 units versus 1,65,346 units (YoY)
- Domestic sales rose 0.1 percent to 1,54,150 units versus 1,54,001 units (YoY)
- Export sales fell 10 percent to 10,219 units versus 11,345 units (YoY)
- Mini category (Alto and WagonR) sales fell 11 percent to 37,710 units versus 42,310 units (YoY)
- Compact category (Swift, Celerio, Ignis, Baleno, Dezire and Tour S) sales rose 17.8 percent to 74,373 units versus 63,116 units (YoY)
- Mid-size category (Ciaz) sales fell 99.2 percent to 48 units versus 6,377 units (YoY)
Reliance Infrastructure Plunges After Crisil Cuts Bond Rating
Shares of the Anil Ambani-led company fell as much as 7 percent, the most in over five months, to Rs 371 after credit rating agency Crisil cut rating on some of its bonds.
Crisil lowered rating on Reliance Infrastructure’s non-convertible debentures of Rs 585 crore and bonds of Rs 125 crore from ‘BB+’, the ratings agency said in a statement.
Crisil also withdrew rating on Rs 124 crore bond.
The downgrade reflects non-payment of interest, principal obligations that were due on July 27, Crisil said.
Inox Leisure Surges After HDFC Mutual Fund Buys Stake
Shares of the Vadodara-based multiplex operator rose as much as 5.3 percent to Rs 204 after HDFC Mutual Fund bought stake in the company.
HDFC Mutual Fund bought 45 lakh shares or 4.7 percent equity at Rs 195 each. While,
Goldman Sachs Variable Insurance Trust International Equity Fund sold 24.8 lakh shares and DSP Blackrock Mutual Fund sold 21.13 lakh shares or 2.2 percent equity at Rs 195 each.
Bajaj Auto Rises On Reporting Best July Sales in Eight Years
Shares of the Pune-based two- and three-wheeler maker rose as much as 2.5 percent to Rs 2,768 after it reported best July sales in eight years, data compiled by Bloomberg showed.
Bajaj Auto sold total of 4,00,343 units in July, up 30 percent from 3,07,727 units sold during the same month last year.
Key sales highlights:
- Domestic motorcycle sales rose 22 percent to 2,01,433 units
- Motorcycle exports rose 31 percent to 1,31,247 units
- Total motorcycle sales rose 25 percent to 3,32,680 units
- Domestic commercial vehicle sales rose 67 percent to 36,078 units
- Commercial vehicle exports rose 51 percent to 67,663 units
Tata Motors Slumps On Reporting Surprise Loss In June Quarter
Shares of the Mumbai-based auto maker fell as much as 5.34 percent, the most in nearly a month, to Rs 250 after it reported worst quarterly loss in nine years.
Tata Motors reported a loss of Rs 1,902 crore compared with a net profit of Rs 3,199 crore during the same quarter a year ago. Analysts tracked by Bloomberg had estimated a profit of Rs 920 crore.
The quarterly loss came amid a decline in deliveries of its sports utility vehicles F-Pace and Discovery Sport. “JLR faced multiple challenges including temporary issues like China duty impacts as well as market issues like diesel (engine) concerns in the U.K. and Europe,” N Chandrasekaran, chairman of Tata Motors and parent Tata Sons Ltd., said in a statement accompanying the earnings filing.
Opening Bell: Sensex, Nifty Flat; Tata Motors Slumps
Indian equity benchmarks were little changed as gains in oil marketing companies and State Bank of India was offset by losses in Tata Motors, HDFC Bank and Bharti Airtel.
The S&P BSE Sensex rose 0.08 percent to 37,639 and the NSE Nifty 50 index rose 0.1 percent to 11,366.
Eight out of 11 sector gauges compiled by National Stock Exchange were trading higher led by the Nifty Metal index's 0.9 percent gain. On the other hand, Nifty Financial Services index was top loser, down 0.2 percent, ahead of Reserve Bank of India’s monetary policy review.
The mid- and small-cap shares were outperforming their larger peers as the Nifty Midcap 100 index rose 0.5 percent and the Nifty Smallcap 100 index advanced 0.4 percent.
Rupee Opens Flat Ahead Of RBI Policy
Rupee was unchanged at 68.57 per dollar investors focus on whether the Reserve Bank of India will raise rates or not at the end of a three-day meeting of the monetary policy committee.
According to a Bloomberg survey, a majority of economists forecast the RBI to raise the repo rate by 25 basis points to 6.5 percent, its highest level in 2 years.
All eyes will also be on whether the RBI tweaks its neutral policy stance that has been in place since February 2017. Any change in stance would indicate that more rate hikes are in the offing and that could unnerve bond investors and cause a sell-off.
Brokerage Radar: How To Play Tata Motors, Vedanta, Power Grid, UPL Post Earnings?
Citi on Mahanagar Gas
- Maintained ‘Buy’ with a target price of Rs 1,000.
- Strong quarter with operating income and net profits ahead of estimates.
- Sharp sequential recovery after disappointing March quarter.
- Await management outlook on volumes and margins.
- Given the overhang of further stake sale by promoter, prefer IGL and Petronet LNG.
Credit Suisse on Bank of India
- Maintained ‘Underperform’; target price cut to Rs 85 from Rs 103.
- Slippages remained elevated at 2 percent of loans.
- Loan book continued to contract led by decline in overseas book.
- Cut EPS by 18-53 percent on higher slippage and treasury losses.
Citi on Oberoi Realty
- Maintained ‘Sell’ with a target price of Rs 530.
- Subvention schemes drive sales in June quarter.
- Investments properties broadly did well.
- Commerz 2 Phase1 occupancy improved.
- Valuations demanding, especially in view of slow demand environment.
Brokerages On Tata Motors
BofAML
- Maintained ‘Buy’; target price cut to Rs 400 from Rs 425.
- JLR missed margins on destocking impact costs.
- India strong on commercial vehicle uptick and lower losses from passenger vehicle business.
- Full year EBIT margin guidance of 4-7 percent maintained.
- EPS for the current and the next financial year lowered by 15 percent and 12 percent respectively; Risk reward favourable.
CLSA
- Maintained ‘Sell’; target price cut to Rs 250 from Rs 295.
- Weak JLR performance drags down to a consolidated June quarter loss.
- Regaining share in Indian trucks but demand a concern.
- JLR outlook remains weak.
- Cut FY19-20 EPS 9-28 percent factoring in lower volumes and margins at JLR.
Brokerages On Vedanta
Morgan Stanley
- Maintained ‘Equal-weight’ with a target price of Rs 265.
- June quarter was broadly in-line with estimates.
- Key positive surprise was better-than-expected performance in aluminum, oil and iron ore.
- Potential ramp-up delay and higher cost in Zinc is near-term risk.
- Risk to be partly offset through higher captive alumina and coal linkage supply.
JPMorgan
- Maintained ‘Overweight’ with a target price of Rs 400.
- Earnings broadly in line.
- Net Debt increase driven by acquisition.
- Expect performance to improve from here on volume growth.
Brokerages On Power Grid Corp
CLSA
- Maintained ‘Outperform’; target price cut to Rs 213 from Rs 237.
- Net profit slightly below on weak capitalisation and higher CSR.
- Expect slowdown ahead; Capitalisation peaked in the previous financial year.
- Generation capex pick-up – key items to monitor.
Deutsche Bank
- Maintained ‘Hold’ with target price of Rs 216.
- Lower capitalisation, higher O&M expenses and consultancy segment led to miss.
- Growth trajectory declining earlier than expected.
- Stock valuation not expensive but earnings cut and higher ROE cut not factored in.
Brokerages On UPL
Citi
- Maintained ‘Buy’; price target cut to Rs 840 from Rs 850
- June quarter was operationally robust as all key markets clocked good growth
- June quarter results address currency related concerns to great extent
- Marginally cut EPS estimates for the current and the next financial year to factor in higher interest cost
CLSA
- Maintained ‘Buy’ with target price of Rs 940.
- Operationally in-line numbers; Net profit beat on lower tax.
- LatAm surprises positively while India is a miss.
- UPL confident of meeting 2018-19 guidance.
- Monsoon progress and MSP hikes likely to be positive.
Brokerages On Bharat Electronics
Citi
- Maintained ‘Buy’ with target price of Rs 140.
- June quarter’s revenue ahead of expectations on account of solid execution.
- Expect order inflows to be in a band of Rs 16,000-20,000 crore.
- Expect net profit CAGR of 12 percent over FY18-21 on the back of orders.
Credit Suisse
- Maintained ‘Outperform’; target price cut to Rs 155 from Rs 175.
- Reported strong results with strong execution and margins.
- Base business order inflows very strong.
- Cut EPS estimates by 16 percent and 14 percent for the current and the next financial year respectively on likely lower margins.
- Positives: strong backlog and execution, strong incremental order visibility and reasonable valuation.
Brokerages On Dabur
CLSA
- Maintained ‘Buy’; target price raised to Rs 500 from Rs 440.
- Growth all around supported by investments.
- To focus on growth over margins in outlook.
- No immediate concerns on margins despite input prices.
- Remains preferred pick in the space.
Morgan Stanley
- Maintained ‘Overweight’; target price raised to Rs 500 from Rs 450.
- June quarter was results in line; Strong volume growth.
- Key positive: 33 percent rise in ad spending, showing commitment to accelerate volume growth.
- Expect Dabur to become the most expensive staples stock.
- Investors likely to pay a premium for its strong product portfolio.
BQ Heads Up! Insider Trades And Fund Flows
Insider Trades
- Bajaj Holdings & Investment promoter acquired 84,339 shares from July 26 – 27.
- Singer India promoter sold 28,312 shares on July 30.
- GTPL Hathway promoter acquired 57,000 shares on July 30.
Fund Flows
F&O Cues And Bulk Deals To Watch
F&O Cues
- Nifty August futures ended at 11,371.6, with a premium of 15 points versus 19 points.
- August series: Nifty open interest up 5 percent; Bank Nifty open interest down 11 percent.
- India VIX ended at 12.48, down 1 percent.
- Max open interest for August series call at 11,500 strike price call option (open interest at 27.8 lakh shares, down 1 percent)
- Max open interest for August series put at 11,000 strike price put option (open interest at 47.2 lakh shares, up 14 percent)
Bulk Deals
- Sirca Paints India: Elara India Opportunities Fund Limited sold 1 lakh shares at Rs 172.6 each.
- MMP Industries: Massachusetts Institute of Technology bought 1.27 lakh shares at Rs 205 each.
Inox Leisure
- HDFC MF bought 45 lakh shares or 4.7 percent equity at Rs 195 each.
- Goldman Sachs Variable Insurance Trust International Equity Fund sold 24.8 lakh shares or 2.6 percent equity at Rs 195 each.
- DSP Blackrock Mutual Fund sold 21.13 lakh shares or 2.2 percent equity at Rs 195 each.
Talwalkars Lifestyles
- Aequitas Investment Consultancy Pvt. Ltd bought 6.74 lakh shares or 2.2 percent equity at Rs 135.35 each.
- Small Cap World Fund sold 13.33 lakh shares or 4.3 percent equity at Rs 135.52 each.
Earnings/Earnings Reaction To Watch: Tata Motors, Vedanta, Reliance Infra And More!
Earnings To Watch
- Aditya Birla Fashion
- Apollo Tyres
- Emami
- Exide Industries
- FDC India
- Gateway Distriparks Group
- HEG
- Himachal Futuristic Communications
- Jindal Saw
- Navneet Education
- Orient Cement
- Pidilite Industries
- Reliance Infrastructure
- Tata Global Beverages
- Torrent Power
Earnings Reaction To Watch
Tata Motors (Q1, YoY)
- Revenue up 15 percent at Rs 67,081 crore.
- Net loss of Rs 1,902 crore versus net profit of Rs 3,182 crore.
- Ebitda up 9 percent at Rs 5,430 crore.
- Margin at 8.1 percent versus 8.5 percent.
Vedanta (Q1, YoY)
- Net sales up 21.4 percent to Rs 22,206 crore.
- Ebitda up 28.4 percent to Rs 6284 crore.
- Ebitda margin at 28 percent versus 27 percent.
- Profit up 2.13 percent to Rs 1,533 crore.
Castrol India (Q1, YoY)
- Revenue up 17 percent at Rs 1017 crore.
- Net profit up 19 percent at Rs 164 crore.
- Ebitda up 19.5 percent at Rs 251 crore.
- Margin at 24.7 percent versus 24.1 percent.
GSFC (Q1, YoY)
- Revenue up 56 percent at Rs 1770 crore.
- Net profit up 75 percent at Rs 71 crore.
- Ebitda up 40 percent at Rs 113.5 crore.
- Margin at 6.4 percent versus 7.1 percent.
IIFL Holdings (Q1, YoY)
- Revenue up 25 percent at Rs 1,768 crore.
- Net profit up 35 percent at Rs 266 crore.
JK Paper (Q1, YoY)
- Revenue up 26 percent at Rs 795 crore.
- Net profit up 58 percent at Rs 95 crore.
- Ebitda up 30 percent at Rs 199 crore.
- Margin at 25 percent versus 24.3 percent.
Huhtamaki PPL (Q2, YoY)
- Revenue up 16.6 percent at Rs 595.5 crore.
- Net profit up 98.6 percent at Rs 14.3 crore.
- Ebitda up 24.9 percent at Rs 51.7 crore.
- Margin at 8.7 percent versus 8.1 percent.
Power Grid (Q1, YoY)
- Revenue up 13 percent at Rs 8,127 crore.
- Net profit up 9 percent at Rs 2,240.5 crore.
- Ebitda up 12 percent at Rs 6,928 crore.
- Margin at 85.2 percent versus 86.3 percent.
Astral Poly (Q1, YoY)
- Revenue up 18 percent at Rs 477 crore.
- Net profit up 48 percent at Rs 37 crore.
- Ebitda down 4 percent at Rs 78 crore.
- Margin at 16.4 percent versus 20.0 percent.
Mahanagar Gas (Q1, YoY)
- Revenue up 17 percent at Rs 619 crore.
- Net profit up 3 percent at Rs 128 crore.
- Ebitda up 4 percent at Rs 210.5 crore.
- Margin at 34 percent versus 38.2 percent.
Jagran Prakashan (Q1, YoY)
- Revenue up 2 percent at Rs 603 crore.
- Net profit down 2 percent at Rs 85 crore.
- Ebitda up 2 percent at Rs 164 crore.
- Margin unchanged at 27.2 percent.
Car Sales, Nikkei PMI Data To Watch
- Automobile manufacturers to report sales data for July.
- Nikkei Manufacturing PMI data for July to be announced by 10:30 a.m.
Stocks To Watch: JSPL, Tata Motors, Jet Airways And More!
- Jindal Steel and Power wins tender for rails floated by Indian Railways.
- Tata Motors unit to stop manufacturing operations in Thailand; to use a distribution model.
- Bank of Baroda closed three foreign branches in Oman and Bahrain.
- Orient Refractories approved amalgamation RHI India and RHI Clasil with self.
- NBCC is said to be the highest bidder for HSCC, EPI. (The Economic Times)
- IFCI: To avail one-month extension to submit June quarter results.
- Jet Airways is said to have asked staff to take up 25 percent starting this month. (The Economic Times)
RBI Decision Day Guide: Expect 25 Bps Rate Hike, Says Bloomberg Poll
- Core Inflation may sway RBI to hike
- In charts: Will the MPC raise rates for a second time?
- A rate hike now, to avoid more later
- A delayed rate hike won’t be worth the wait
Talking Points: Trade Tariffs, Deepak Parekh, OnePlus And More!
- U.S. considers higher tariffs on $200 billion in Chinese imports
- IBC ordinance not to favour any corporate house, says Piyush Goyal
- India’s fiscal deficit reaches 68.7% of FY19 target
- U.K. court asks India to submit video of Mumbai jail
- Who doesn’t want Deepak Parekh
- The end of the global housing boom
- Government’s $1.7-billion claim against Reliance Industries fails
- India gets its third unicorn in two months
- OnePlus tests offline strategy to drive growth in India
SGX Nifty Indicates Record Run To Continue
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India rose 0.19 percent to 11,399 as of 8:10 a.m.
Asian equities climbed at the open as investors sifted through the latest news on the U.S.-China trade front and positive results from Apple Inc. Japanese bond yields rose after the central bank said it would allow more flexibility in yield movements.
Stocks rose in Japan and South Korea, and Hang Seng Index futures in Hong Kong climbed. In a move seen as pressuring China back to the negotiating table, the Trump administration will propose raising to 25 percent its planned 10 percent tariffs on $200 billion in Chinese imports, three people familiar with the internal deliberations said.
Currencies
- The yen was little changed at 111.84 per dollar.
- The offshore yuan slipped 0.3 percent to 6.8226 per dollar.
- The euro held at $1.1690.
- The Bloomberg Dollar Spot Index was flat.
Commodities
- West Texas Intermediate crude decreased 0.6 percent to $68.32 a barrel.
- Gold was flat at $1,224.21 an ounce.
- Copper rose 0.3 percent to $6,281 a ton Tuesday.
Here are some key events coming up this week:
- Central banks in the U.S., U.K., Brazil and India are still to meet this week. The Bank of England is expected to hike even amid Brexit gloom. The Fed is seen standing pat, as is Brazil’s central bank. The RBI will probably raise its benchmark at its meeting Wednesday.
- The U.S. Treasury is set to release its funding program for the next three months on Aug. 1.
- Earnings season continues with Berkshire Hathaway, Barclays, Tesla, Toyota, BMW, and Rio Tinto among companies reporting results.
- The U.S. jobs report is on Friday, and is predicted to show a healthy labor market, with 193,000 new jobs, and an unemployment rate slipping back to 3.9 percent.
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