Sensex tanks 2.5%, down 839 pts, Nifty ends below 10,800 on Budget woes

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Benchmark indices tumbled on Friday as the long-term capital gains tax on equities investments dampened sentiment, while bonds slid for a second consecutive session on worries the central bank would become more hawkish on inflation.

The weak sentiment came a day after the government unveiled its budget for the year starting in April that raised spending for rural sectors and healthcare, widening the fiscal deficit target to 3.3% of gross domestic product from the previous 3.0%. The government also unveiled a 10 percent tax on long-term capital gains in equity markets.

Investors worried that higher spending and the government’s move to raise minimum support prices for crops could lead to higher retail prices at a time when consumer price inflation has already hit a 17-month high of 5.21%, well above the Reserve Bank of India’s target of 4%.

That is leading to fears the RBI could adopt a more hawkish tone at its policy review on Feb. 6-7, although it is widely expected to keep rates on hold.

3:46 PM

Market rundown by Vinod Nair, Head of Research, Geojit Financial Services 

 

Market skid as deviation in fiscal path and higher rural spending dampened investor’s sentiment. Additionally, rising inflation & yield may push RBI to be more hawkish on interest rate in the upcoming monetary policy. However, earnings season is picking up pace which is giving a sense to the participants to accumulate as long term prospects remain intact.

3:38 PM

Nifty realty cracks over 6%

3:35 PM

Sectoral Trend

3:33 PM

Sensex top gainers and losers

3:32 PM

Markets at Close

 

Benchmark indices tumbled on Friday as the long-term capital gains tax on equities investments dampened sentiment, while bonds slid for a second consecutive session on worries the central bank would become more hawkish on inflation.

 

The S&P BSE Sensex ended at 35,066, down 839 points while the broader Nifty50 index settled at 10,760, down 256 points.

3:23 PM

Earnings: Two-and three-wheeler major Bajaj Auto reported lower than expected net profit for the December quarter at Rs 9.52 billion against Rs 9.24 billion year on year.

 

The company’s revenue rose 26% at Rs 63.69 billion against Rs 50.67 billion year on year.

 

At the operating level, the earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to Rs 12.31 billion against Rs 10.43 billion.

3:12 PM

Budget 2018 Market Impact: Most newly listed stocks escape unhurt

 

Finance Minister Arun Jaitley on Thursday presented Union Budget 2018-19 in Parliament. This was his fifth and the Narendra Modi government’s last full Budget before heading into the 2019 general elections. Some of the market-related measured announced by Jaitley in his Budget impacted the Indian equity markets. While the stocks in the NSE’s Nifty50 and Nifty Midcap50 indices took more hit, the newly listed ones seemed relatively cushioned.

 

This EY analysis looks at the announcements in Finance Minister Arun Jaitley’s Union Budget 2018-19 that might have impacted each of the newly listed stocks. CLICK HERE TO KNOW THE FULL LIST OF STOCKS

3:00 PM

How Bitcoin's popularity draws hackers into red-hot cryptocurrency space

 

Bitcoin's popularity and the emergence of about 1,500 other digital coins or tokens have drawn more hackers into the red-hot cryptocurrency space, expanding opportunities for crime and fraud, cybersecurity firm Digital Shadows warned in a report on Thursday.

 

"Cybercriminals follow the money and right now they see in the unregulated and largely unsecure world of digital currencies a huge opportunity to target people, businesses and exchanges and make money quickly and easily," said Rick Holland, vice president of strategy at Digital Shadows. READ MORE

Photo: Reuters

2:46 PM

111 BSE500 stocks down over 25% from one year high

 

One out of every five stocks from the S&P BSE500 index is down more than 25% from their respective one-year highs following a sharp decline in their market values in past one week.

 

PC Jeweller, Vakrangee, Just Dial, Wochardt, Unitech, Aban Offshore, Rain Industries, Jindal Saw, Praj Industries, Jai Corp, Bombay Burmah Trading, Philips Carbon Black and Bombay Dyeing & Manufacturing, among notable stocks, were down more than 25% each. CLICK HERE FOR FULL STORY

2:31 PM

Market Check

S&P BSE Sensex	35,250.17		-1.83%
Nifty 50	10,818.75		-1.80%
S&P BSE 200	4,705.57		-2.09%
Nifty 500	9,468.55		-2.26%
S&P BSE Mid-Cap	16,732.23		-3.12%
S&P BSE Small-Cap	17,981.52		-3.93%

2:15 PM

Apple reports 30% increase in user base, but analysts probe for more detail

 

In its quarterly earnings report on Thursday, Apple Inc gave the first update in two years on what it calls its active installed base, the number of major products such as iPhones, iPads and Macs in use in the world. Apple said the base expanded 30 per cent from two years ago to 1.3 billion.

 

That increase should have been seen as positive because Apple aims to become less dependent on selling iPhones and shift to selling its existing customers services like Apple Music or add-on devices like the Apple Watch or AirPods. READ MORE

2:05 PM

Union Budget 2018: Well crafted, but fiscal stress shows

 

The Finance Minister, Arun Jaitley, has presented a Budget that looks good from all sides, but one that deserves closer scrutiny to better understand the fiscal maths, and the implications for economic growth. Attention must be paid in particular to the response of the bond market to the government’s borrowing programme.

 

A higher interest rate regime, if it materialises, carries with it the risk of a slower economic recovery than might otherwise have been the case. Click here for full story

1:45 PM

The grandfathering clause for LTCG was a masterstroke: UR Bhat

 

In the run-up to Budget 2018, the market was worried about imposition of long term capital gains tax (LTCG) amid other things. However, the grandfathering provision that the finance minister introduced will make the overall impact on the market sentiment quite negligible. This is despite the fact that we are trading near all-time highs. If all the existing capital gains (till January 31, 2018) are grandfathered, then there is nothing much to worry about. That’s because when investors will buy stocks now, they will build in a 10% payout as LTCG in their return expectation.

Therefore, I do not think LTCG is a big issue for the markets. The grandfathering clause for LTCG was a masterstroke and a deft move by the government. The market would have collapsed if this clause was missing. READ MORE

1:31 PM

Sensex top gainers and losers

1:15 PM

Budget 2018: Have skin in Bitcoin game? Don't worry, cryptos not 'illegal'

 

If you have money riding on Bitcoins and are confused, or worse, despondent, after Finance Minister Arun Jaitley's remarks on cryptocurrencies in his Budget 2018 speech on Thursday, take a breath before exiting crypto trading. While some have interpreted Jaitley's remarks to mean that cryptocurrencies are henceforth illegal in India, that might not be the case going by the finance minister's exact phrasing.

 

Click here for full story