Key benchmarks were trading near the flat line in the afternoon trade. At 13:35 IST, the barometer index, the S&P BSE Sensex, rose 5.01 points or 0.01% at 36,981.86. Meanwhile, the Nifty 50 index declined 7.45 points or 0.07% at 10,940.80.
The S&P BSE Mid-Cap index was up 0.18%. The S&P BSE Small-Cap index also rose 0.64%.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,262 shares rose and 1,032 shares fell. A total of 141 shares were unchanged.
RBI after its monetary policy meeting today, 7 August 2019, cut the policy repo rate by 35 basis points to 5.75% with immediate effect.
On the basis of an assessment of the current and evolving macroeconomic situation, RBI's monetary policy committee (MPC) decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 35 basis points (bps) from 5.75% to 5.40% with immediate effect.
Consequently, the reverse repo rate under the LAF stands revised to 5.15%, and the marginal standing facility (MSF) rate and the bank rate to 5.65%. The MPC also decided to maintain the accommodative stance of monetary policy. These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.
The real GDP growth for 2019-20 is revised downwards from 7% in the June policy to 6.9% - in the range of 5.8-6.6% for H1:2019-20 and 7.3-5 to 7.5% for H2 - with risks somewhat tilted to the downside; GDP growth for Q1:2020-21 is projected at 7.4%.
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Zee Entertainment Enterprises (up 7.30%), Yes Bank (up 5.16%), Cipla (up 3.09%), IndusInd Bank (up 2.68%) and Hindustan Unilever (up 2.18%) advanced.
BPCL (down 3.32%), Tata Motors (down 2.65%), Grasim Industries (down 2.49%), Eicher Motors (down 2.20%) and JSW Steel (down 1.56%) declined.
Mahindra & Mahindra (M&M) was down 2.60%. M&M said combined profit from ordinary activities after tax (after EI) rose 80% to Rs 2260 crore in Q1 June 2019 over Q1 June 2018. Combined revenues and other income fell 4% to Rs 12997 crore. Combined operating profit margin (OPM) was reported at 14% in Q1 June 2019, lower than 15.8% in Q1 June 2018.
The results for M&M include the combined results of Mahindra and Mahindra (M&M) and Mahindra Vehicle Manufacturers (MVML), which is a manufacturing unit of M&M.
Tractor demand in Q1 June 2019 remained sluggish and was adversely impacted due to a weak sentiment in the agri economy resulting from the delay in SW monsoon, poor spatial distribution in June and weak agricultural incomes impacted by poor price realization. In Q1 June 2019, the domestic tractor industry declined by 14.6% with sales of 1,91,305 tractors, against 2,23,937 tractors sold during Q1 June 2018. In this period, in the domestic market, the company sold 82,013 units with a market share of 42.9%.
Reliance Industries (RIL) fell 0.89%. RIL and BP announced that they have agreed to form a new joint venture that will include a retail service station network and aviation fuels business across India. Building on Reliance's existing Indian fuel retailing network and an aviation fuel business, the partners expect the venture to expand rapidly to help meet the country's fast-growing demand for energy and mobility. The announcement was made after market hours yesterday, 6 August 2019.
L&T fell 0.96%. L&T said that L&T Construction has secured a mega contract for design and construction of a major airport. The project involves baggage handling systems, passenger boarding bridges, airport security systems, visual docking guidance systems, vertical horizontal transportation, airfield ground lighting, mechanical, electrical and plumbing works. This will increase the existing capacity to 40 Million Passenger Per Annum (40MPPA). The announcement was made after market hours yesterday, 6 August 2019.
Tata Steel was down 3.64%. The steel major announced termination of equity stake in Tata Steel (Thailand) Public Company and NatSteel Holdings as HBIS Group have not been able to procure the requisite approvals from the Hebei Government, one of the key conditions precedent for the proposed stake sales. The company has begun engagement with other investors in continuation of its strategy to find a partner for the South-East Asian business. The announcement was made after market hours yesterday, 6 August 2019.
Indiabulls Housing Finance lost 10.14%. Its consolidated net profit dropped 24.01% to Rs 801.53 crore on 4.55% fall in total income to Rs 3886.12 crore in Q1 June 2019 over Q1 June 2018. The announcement was made after market hours yesterday, 6 August 2019.
JSW Energy advanced 3.40%. Its consolidated net profit rose 6.64% to Rs 244.38 crore on 2.02% rise in total income to Rs 2,489.55 crore in Q1 June 2019 over Q1 June 2018. The announcement was made after market hours yesterday, 6 August 2019.
NLC India declined 0.99%. On a consolidated basis, the power generation company's net profit fell 18.6% to Rs 288.94 crore on a 14.6% fall in the net sales to Rs 2082.21 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 6 August 2019.
In a separate announcement, NLC India said that its board has decided not to pursue the setting up of pilot plant for coldry matmor integrated project on R&D collaborative mode as agreed to between NLCIL, NMDC & ECT Australia vide MoU signed on 30 May 2018, in view of ECT's withdrawal of Mou and subsequent NMDC's decision not to go ahead with the proposal. The announcement was made after market hours yesterday, 6 August 2019.
Avenue Supermarts lost 1.44%. The company announced that its promoter, Radhakishan Damani, intends to sell 62.30 lakh equity shares, or 1% stake, to comply with the requirements of minimum public shareholding. Damani will sell his shares between 8 to 14 September 2019. The announcement was made after market hours yesterday, 6 August 2019.
Central Bank of India gained 4.94%. The bank reported a net profit of Rs 118.33 crore in Q1 June 2019 as compared to a loss of Rs 1522.24 crore in Q1 June 2018. The result was announced after market hours yesterday, 6 August 2019.
The bank's total income rose 10% to Rs 6493.55 crore in Q1 June 2019 over Q1 June 2018. The bank's gross non-performing assets (NPAs) stood at Rs 32900.44 crore as on 30 June 2019 as against Rs 32356.04 crore as on 31 March 2019 and Rs 38777.66 crore as on 30 June 2018.
The ratio of gross NPAs to gross advances stood at 19.93% as on 30 June 2019 as against 19.29% as on 31 March 2019 and 22.17% as on 30 June 2018. The ratio of net NPAs to net advances stood at 7.98% as on 30 June 2019 as against 7.73% as on 31 March 2019 and 10.58% as on 30 June 2018.
The bank's provisions and contingencies declined 62.61% to Rs 1034.78 crore in Q1 June 2019 over Q1 June 2018. The provision coverage ratio of the bank increased to 76.85% in Q1 June 2019 from 66.42% in Q1 June 2018.
HPCL (down 3.25%) and Lupin (up 1.22%) will announce their Q1 June 2019 results today.
Overseas, European stocks were trading higher. DAX (up 1.29%), CAC 40 (up 0.89%) and FTSE 100 (up 0.40%). Asian stocks were mixed on Wednesday as investors digested the Chinese central bank's daily midpoint fix for its currency's exchange rate against the dollar. The People's Bank of China (PBOC) set the the official midpoint reference for the yuan at 6.9996 per dollar. China's central bank allows the exchange rate to rise or fall 2% from that number.
US stocks rallied Tuesday after six days of declines as China stepped in to stabilize the yuan, easing concerns that currencies would be the next weapon in the US-China trade war.
Investors took fright Monday as China allowed the yuan to slump to its lowest level in a decade after President Donald Trump's threat last Thursday to impose 10% tariffs against an additional $300 billion of imported Chinese goods, effective 1 September.
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