Business Standard Podcast

Sales and job losses have hit companies in Pimpri-Chinchwad, an automobile hub bordering Pune. Sales of medium- and heavy-duty commercial vehicles (M&HCVs), excluding buses, considered a barometer of economic activity, more than halved in August. The overall volume at India’s top four M&HCV makers — Tata Motors, Ashok Leyland, Volvo Eicher, and Mahindra & Mahindra — fell 59.5 per cent to 31,067 units during the month, compared with the year-ago period.  Companies are now hinging their hopes on the festive season and a pre-buying ahead of the implementation of BSVI emission norms, which take effect on April 1, 2020. Listen to this podcast to know more

Fears of domestic as well as global economic slowdown may continue to weigh on investors' sentiment today. The US manufacturing data, released yesterday, showed contraction in August for the first time since 2016 stoking fears of a global recession amid rising trade tensions between China and the United States. Back home, investors would track Services PMI for the month of August, scheduled to be released later in the day. Manufacturing PMI, which was released on Monday, hit a 15-month low mirroring slowdown in the economy.  That apart, movement of rupee against the dollar, that hit a fresh 2019 low of 72.4 per dollar, will be tracked. Besides, Brent crude oil price movement and investments by foreign portfolio investors and domestic institutional investors will be watched.  >> Now let's see how the global markets have performed, and what it means for Sensex and Nifty.  Asian stocks dipped early Wednesday after poor US economic soured investor sentiment already hurt by heightened trade war concerns. MSCI’s broadest index of Asia-Pacific shares outside Japan was a shade lower after losing 0.85% on Tuesday. Australian stocks lost 0.8% and Japan's Nikkei fell 0.3%. On Wall Street, the Dow Jones Index and Nasdaq closed over a per cent lower during the overnight trade on Tuesday, while the S&P500 ended 0.69 per cent lower. Domestically, the S&P BSE Sensex tumbled 770 points or 2.06% to settle at 36,563 level on the back of weaker-than-expected GDP numbers. On NSE, the benchmark Nifty50 index ended at 10,798-mark, down 225 points or 2.04%. Trends on SGX Nifty, however, suggest a flat to positive start for the indices.  Now, let's take a look at the top headlines for the day and the stocks that will remain in focus-- >> Sales of medium- and heavy-duty commercial vehicles crashed 60% in August >> The value of new investment projects announced by Indian companies fell to Rs 11.30 trillion in FY19 compared to Rs 21.04 trillion in FY15. >> Copper prices hit a two-year low as signs of global slowdown stack up Before we close, here is a stock recommendation by HDFC Securities-- The brokerage recommends Selling Axis Bank at current market price, for the target of Rs 620, and keeping a stop loss at Rs 660 on a closing basis

A weaker-than-expected GDP growth for the first quarter of the financial year 2020 (Q1FY20) weighed on investor sentiment on Tuesday as the domestic equities ended with over 2 per cent losses. That apart, weak global cues also added to the woes. The S&P BSE Sensex tumbled 770 points or 2.06 per cent to settle at 36,563. Out of 30 constituents, 28 scrips ended in the red while only two closed in the green.  On NSE, the benchmark Nifty50 index slipped below the crucial 10,800 level to end at 10,798, down 225 points or 2.04 per cent. Bank Nifty lost 604 points or 2 per cent to end at 26,824.15. Markets plummet on weak GDP nos; Sensex nosedives 770 pts, Nifty settles below 10,800 Rupee hits fresh 2019 low Government approves over Rs 9,000 crore capital infusion in IDBI Bank, stock jumps 6%.  Market breadth remained in favour of declines as out of 2,608 scrips traded on BSE, 814 advanced, 1,615 declined while 179 remained unchanged.  Volatility index, India VIX, jumped 11 per cent to settle at 18.14.  In the broader market, the S&P BSE MidCap index ended at 13,246, down 222 points or 1.65 per cent while the S&P BSE SmallCap index ended at 12,370, down 165 points or 1.32 per cent.  On the sectoral front, all the indices ended in the negative territory with PSU Bank index taking the hardest knock (down 5 per cent), followed by metal and realty indices.  Among individual stocks, Tata Steel slipped 4 per cent to quote at Rs 331.40 after the company proposed to close two non-core business units in the United Kingdom. Auto stocks, too, fell in the trade after data showed that sales of four- and two-wheelers almost halved in August, compared to the equivalent month last year.

Markets are likely to remain volatile as investors could react to June quarter GDP numbers, that came in at 6 year low of 5 per cent, government data revealed on Friday. Analysts expect the volatility to continue unless there are visible signs of economic revival. Moreover, stocks of Public Sector Banks will be in focus today after Finance Minister Nirmala Sitharaman, unveiled a mega-merger plan on Friday, after market hours. Under this, 10 public sector banks will be merged to form four large PSBs. Punjab National Bank, Canara Bank, Union Bank of India, and Indian Bank will be the four anchor banks.  That apart, investors could react to global developments. New tariffs imposed by the US and China, that came into effect over the weekend, could keep investors jittery. The United States began imposing 15% tariffs on a variety of Chinese goods on Sunday after China put new duties on the US crude.  China has also lodged a complaint against the United States at the World Trade Organization over US import duties, the Chinese Commerce Ministry said on Monday. Additionally, Market participants will continue to track stock-specific action, oil price movement, and the Rupee's trajectory. Now let's see, how global markets have fared and what they mean for Sensex and Nifty --- Asian shares were trading flat during the early moring trade today. Japan's Nikkei was up 0.05 per cent, while South Korea's Kospi was trading 0.3 per cent higher. At around 7 am, SGX Nifty, the Singaporean Exchange for Nifty Futures, was trading lower indicating a flat to negative start for domestic indices. Back home, markets were shut on Monday on account of Ganesh Chaturthi. On Friday, the S&P BSE Sensex settled 264 points higher at 37,333 level while the broader NIfty50 closed at 11,023-mark, up 75 points. Now, lets look at the top headlines and are likely to move markets-- >> Jet Airways fails to find new suitor; further deadline extension for EoI unlikely >> Maruti Suzuki cuts production for 7th straight month in Aug >> Growth in manufacturing activity declined to a 15-month low of 51.4 in August owing to weak sales >> Road ministry seeks GST rate cut for hybrid cars and CNG vehicles to prop-up sales; totaal GST collection below Rs 1 trillion mark in Aug And before we wrap, here is a stock recommendation by Prabhudas Lilladher-- The brokerage recommends buying Tata Chemicals at current market price with a target price of Rs 640. The stop loss could be placed at Rs 545.

The automobile sector has been facing a severe slowdown for the past several months now to the point that a continuous decline in sales has ceased to surprise. In a clear sign that the slowdown in the economy is persisting, automobile sales in India crashed again by nearly a third in August 2019 over last year, marking the tenth straight month of decline. Numbers also indicate the upcoming festive season may not be enough to revive customer sentiment. Besides, contrary to automakers’ expectations that car sales have bottomed out, the worst may not be over yet. So, how bad was the auto sales crash in August? Maruti Suzuki's sales fell by a third, the worst show by the company ever. It sold a little more than 106,000 units this August, compared to about 158,000 units a year ago. Sales of mini cars, including the Alto and Wagon-R, stood at about 10,000 units, compared to almost 36,000 units in August 2018, down 72 per cent. Tata Motors’ sales in the domestic market declined 58 per cent over the corresponding period last year. The company sold a little more than 7,000 units this August, against over 17,000 last year. Hyundai Motor India's sales fell almost 17 per cent last month. Mahindra and Mahindra posted a near 32 per cent dip in sales.

Amalgamating 10 govt banks into 4 entities in mega consolidation move: FM India is merging its state-run banks to form fewer and stronger lenders, as Prime Minister Narendra Modi looks to boost credit and revive economic growth from a five-year low. India's economic growth dips to 7-year low of 5% in April-June India's economic growth dropped to a seven-year low of 5 per cent in the April-June quarter of 2019-20 due to a sharp deceleration in the manufacturing sector and sluggish agriculture output, according to official data released on Friday. Slowdown cyclical, but deep reforms needed, says RBI The slowdown in the Indian economy could be cyclical, with deep structural problems requiring urgent reforms, according to the Annual Report of the Reserve Bank of India (RBI), released on Thursday. FDI norms have been eased for single brand retail, digital media, manufacturing The Union Cabinet on Wednesday relaxed the rules for single-brand retail, more than seven years after the foreign investment cap was removed for the segment to attract marquee foreign brands such as Gucci, Louis Vuitton, Ikea and others into the country. The latest government move is in line with the recent Budget announcements on FDI changes. RBI's approval of a record Rs 1.76 trillion surplus transfer to government The Reserve Bank of India on Monday decided to transfer a record Rs 1,23,414 crore of its surplus to the central government for the fiscal year 2018-19 or FY19 (July to June), and an additional Rs 52,637 crore of excess provisions as recommended by the Bimal Jalan committee on Economic Capital Framework. IT industry is on a hiring spree, adding a record number of employees in Q1 The Indian information technology industry added a record number of employees in the April-June quarter of the ongoing financial year, with around 85,000 new hires. This is the highest-ever net employee addition by the industry in a single quarter in six years, according to a recent report by equity research firm CLSA.

Domestic indices remained volatile on Friday, but rallied in the fag-end of the session, ahead of the June quarter GDP numbers, due later in the day. Further, likely announcement by the Finance Ministry on merger of public sector banks (PSBs) increased buying interest at the counters. That apart, hopes of face-to-face trade talks between the United States and China helped ease market sentiment. The benchmark S&P BSE Sensex settled 264 points, or 0.71 per cent, higher at 37,333 level. HDFC twins, ITC, ICICI Bank, and Hindustan Unilever emerged as the top contributors to the index's gain, which were up in the range of 1-3 per cent. YES Bank, Sun Pharma, IndusInd Bank, and Tata Steel ended the day as top gainers, while Power Grid, ONGC, HCL Tech, and Larsen and Toubro were the top losers. Meanwhile, the broader Nifty50 ended at 11,023-mark, up 75 points or 0.68 per cent. Sectorally, all the indices on the NSE ended in the green. Nifty Pharma index ended the day as top gainer, up 2.4 per cent, followed by Nifty Metal index, up 1.8 per cent.  In the broader market, the S&P BSE MidCap index closed at 13,468 level, up 134 points, or 1.01 per cent. The S&P BSE SmallCap index closed at 12,535 level, up 104 points, or 0.84 per cent.  PUBLIC SECTOR BANK MERGER ON THE CARDS? Union Finance Minister Nirmala Sitharaman is scheduled to address media later in the day, where she is likely to announce mega plan for merging multiple set of public sector banks (PSB).  The department of financial services in the finance ministry called a meeting, on Friday, with chief executives of ten public sector banks which are seen as top contenders for merger. The banks invited for consultations on Friday are: Union Bank of India, Canara Bank, Punjab National Bank, United Bank, Oriental Bank of Commerce, United Bank, Allahabad Bank, Corporation Bank, Syndicate Bank and Andhra Bank.    Shares of PSBs ended mixed on the National Stock Exchange (NSE) on Friday. Oriental Bank of Commerce, Central Bank of India, Syndicate Bank and Allahabad Bank gained up to 6 per cent. On the other hand, State Bank of India (SBI), Union Bank of India, Bank of India, Indian Bank and Bank of Baroda were down between 1 and 2 per cent. 

The clock is ticking for over four million people in Assam. On Saturday, the government will release the final National Register of Citizens (NRC) list, over a year after the first list was declared. This list will determine whether a person residing in Assam is an Indian or a foreigner. The announcement of the final NRC list is likely to be the biggest development in Prime Minister Narendra Modi's second term, after the Centre's move to scrap special status from Jammu and Kashmir. What will happen to those whose names do not appear in the list? Those excluded from the final NRC will get a window of 10 months to prove their citizenship. Each person excluded will have a maximum of 120 days or four months from the date of publication of the final NRC to present his or her case at a Foreigners’ Tribunal, which has to dispose of the case within six months. If they fail to prove their identity, they will be sent to detention camps.

Investors may remain cautious today as they await the June quarter GDP numbers to be released later in the day. Data on forex reserves, infrastructure output, and bank loan growth will also be released today.  According to an internal assessment by the Reserve Bank of India, the economy is expected to have grown at 5.5 per cent in the recently concluded quarter. The Reserve Bank of India (RBI), in its Annual Report released yesterday, has identified the slowdown in the Indian economy as 'cyclical', "with deep structural problems requiring urgent reforms".  That apart, Market participants will continue to track global cues, stock-specific action, oil price movement, and the Rupee's trajectory. Concerns over an impending global recession could also influence investor sentiments.  >> Now let's see how the global markets have performed, and what it meant for Sensex and Nifty.  Overnight, Wall Street settled higher on Thursday after China’s commerce ministry said Beijing and Washington were discussing the next round of face-to-face talks scheduled for September. The Dow Jones, the S&P 500, and the Nasdaq Composite all added over 1 per cent each.  Asian shares also ticked higher on Friday. MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.4 per cent, Japan's Nikkei jumped 1 per cent while South Korea's KOSPI index gained 1.3 per cent. Back home, the benchmark indices ended lower on Thursday.  The Sensex closed at 37,069 level, down 1.02 per cent, and the Nifty50 closed at 10,948-mark, down 0.89 per cent.  Trends on SGX Nifty, however, suggest a flat start to the indices.  Now, let's take a look at the top headlines for the day and the stocks that will remain in focus-- >> Bank stocks could be under pressure after the RBI's annual report revealed that bank frauds in FY19 increased by 15% YoY. The amount involved is likely to have jumped 74% >> Union Finance Minister Nirmala Sitharaman Thursday said the Centre will announce two more big steps in the coming days to give momentum to industry. >> Rating agency ICRA on Thursday terminated its Managing Director (MD) and Group Chief Executive Officer (CEO) Naresh Takkar’s employment, pending an inquiry by the Sebi.

Indices ended August series of Futures and Options (F&O) above 37,000 level at the S&P BSE Sensex, but below the psychological mark of 11,000 at the Nifty50. Markets remained choppy as fears of an impending global recession and worsening US-China trade relations marred investor sentiment. The benchmark Sensex closed at 37,069 level, down 383 points or 1.02 per cent, dragged by public sector banks. Sun Pharma, Vedanta, NTPC, and ONGC were among the nine stocks that settled in the green, while State Bank of India (SBI), YES Bank, HDFC, and Axis Bank ended the day as top drags. The broader Nifty50, on the other hand, closed at 10,948-mark, down 98 points or 0.89 per cent. Domestic investors also remained cautious ahead of GDP data for the April-June quarter (Q1FY20) due on Friday. According to a Reuters poll, Indian economy is set for weakest quarter of growth in five years. The poll median showed the economy was expected to have grown at a year-on-year pace of 5.7 per cent in the June quarter, a touch slower than 5.8 per cent in the preceding three months. Sectorally, Nifty PSU Bank index ended 2.5 per cent lower, followed by Nifty Financial Services index (down 1.7 per cent), and Nifty Bank index (down 1.6 per cent). Among the gainers, Nifty Pharma index closed 2.24 per cent higher, followed by Nifty Metal, up 1.4 per cent.  In the broader market, the S&P BSE MidCap index slipped 22 points or 0.17 per cent to settle at 13,333 level. Meanwhile, the S&P BSE SmallCap index closed 78 points, or 0.62 per cent, lower at 12,430. BUZZING STOCKS Shares of Indiabulls Housing Finance cracked  as much as 8 per cent on the National Stock Exchange (NSE) in the intra-day trade after the exchange announced that the company will be excluded from the benchmark index Nifty50, with effect from September 27. The stock eventually closed 0.35 per cent lower at Rs 455 apiece.  On the flip side, Berger Paints hit a new high of Rs 372, up one per cent on the BSE on hopes of strong volume growth in decorative segment. It settled 1.04 per cent higher at Rs 370 per share.

After rallying for three straight days, equity market once again slipped into the negative territory on Wednesday as fears of global recession kept investors away from making fresh bets. On the domestic front, a host of measures announced by the Finance Minister Nirmala Sitharaman last week to revive economy did cheer market participants; however, will it bring about a material change in the stock market is something to be watched.  To discuss this and more, we have with us Mr Naveen Kulkarni, head of research at Reliance Securities.

Investors may be set for volatile session today as the August series futures & options contracts expire and participants roll over positions to the September series. Weak global cues and the Rupee's trajectory will be other major factors affecting investor sentiment today. Trends on SGX Nifty, too, suggest a negative start for the domestic indices.  On Wednesday, The benchmark S&P BSE Sensex closed Wednesday's session at 37,452 level, down 0.5 per cent, and The broader Nifty50 settled 0.53 per cent lower at 11,046 level. In the forex market, the rupee declined by 29 paise to close at 71.77 against the US dollar. Globally, Asian stocks struggled to recover on Thursday as economic turbulence from intensifying US-China frictions and the spectre of a no-deal Brexit drove investors to safer harbours. MSCI's broadest index of Asia-Pacific shares outside Japan was flat in early trade while Japan's Nikkei rose 0.14 per cent. On Wall Street, the Dow rose 1 per cent and the S&P 500 gained 0.65 per cent, due in part to gains in energy sector following a rebound in oil prices. In a major news today, the Union Cabinet on Wednesday relaxed the rules for single-brand retail, more than seven years after the foreign investment cap was removed for the segment to attract marquee foreign brands such as Gucci, Louis Vuitton, Ikea and others into the country.  Now, here are the stocks that should be on investors' radar--  -- Sugar stocks will be in focus today after the Union Cabinet yesterday approved an export subsidy of Rs 10.44 per kg which would enable mills to ship around six million tonnes (mt) of the sweetener in the coming season that starts from October. -- South America’s Synergy Group Corp is planning to pick up 49 per cent stake in Jet Airways. It will discuss co-investment options with its lenders and infrastructure companies, the group’s advisor told Business Standard. -- A preliminary enquiry by the SEBI has found no merit in allegation of violation of securities laws, levelled by a whistleblower, against pharmaceutical major Sun Pharmaceutical Industries.

Markets witnessed another volatile trading session on Wednesday as investors rolled-over their positions ahead of the August Futures & Options (F&O) series expiry due on Thursday. Besides, weak global cues and uncertainty over resumption of trade talks between the United States and China kept investors on the sidelines.  The benchmark S&P BSE Sensex closed at 37,452 level, down 189 points or 0.50 per cent, dragged by heavyweight stocks like Reliance Industries, ICICI Bank, Maruti Suzuki, and HDFC Bank. 23 of the 30 shares listed at the index ended in the red. HCL Tech, Infosys, Tech Mahindra, and HDFC were the top gainers, while YES Bank, Tata Steel, Vedanta, and ONGC ended as the top laggards. In the intra-day trade, the Sensex cracked 392 points to hit a low of 37,249 level.  The broader Nifty50, too, settled 59 points, or 0.53 per cent, lower at 11,046 level. The index hit an intra-day low of 10,988-mark, down 118 points. Sectorally, realty stocks gained the most, with the Nifty Realty index settling 2.4 per cent higher. This was followed by Nifty IT index which closed 1.3 per cent higher. On the downside, Nifty Metals index shed 3.4 per cent, followed by Nifty Auto index, down 2 per cent. In the broader market, S&P BSE Mid-cap index closed at 13,356 level, down 124 points or 0.92 per cent. The S&P BSE Small-cap index, too, dipped 80 points, or 0.64 per cent, to settle at 12,508 level.  BUZZING STOCKS Shares of Hindustan Unilever (HUL) slipped as much as 2 per cent to Rs 1,824.15 apiece on the BSE in the early morning trade on Wednesday after the company said it has cut prices of its Lux, Lifebuoy and Dove soaps in the past month following muted growth in the category.  Shares of Vadilal Industries were trading higher for the fourth straight day, up 4 per cent at Rs 682 on the BSE on Wednesday after the company reported a good set of numbers for the April-June quarter (Q1FY20). The stock was trading at its 52-week high levels. In the past four trading days, it has rallied 22 per cent, as compared to a 3 per cent rise in the S&P BSE Sensex.

Investors may see a volatile trade today as traders look to rollover positions ahead of the August F&O series expiry due on Thursday. That apart, global cues, rupee trajectory, stock-specific action, and oil price movement are expected to steer markets today.  Trends on SGX Nifty, too, suggest a flat to positive start for the domestic indices.  On Tuesday, the benchmark S&P BSE Sensex settled 0.39 per cent higher at 37,641. The broader Nifty50 closed at 11,105 mark, up 0.43 per cent. The rupee also gained 54 paise to see its biggest single-day gain in more than five months. It closed at 71.48 against the US dollar. Globally, Wall Street slipped during the overnight trade on Tuesday after China’s foreign ministry reiterated that it had not received any recent US telephone call on trade.  The Dow Jones fell 0.48 per cent, the S&P 500 lost 0.33 per cent, and the Nasdaq Composite dropped 0.34 per cent.  Shares in Asia, too, we're trading with marginal gains. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.03 per cent, Japan's Nikkei rose 0.04 per cent and Australia's shares rose 0.07 per cent. Now, here are the stocks that should be on investors' radar--  >> Realty stocks are likely to see some major movements today as Centre is readying a package to perk up the real estate sector. Quoting senior government officials, a Business Standard report said steps in real estate could include a task force to identify and revive stalled projects, easing of interest subvention norms, a new rental housing policy, among other steps. >> Telecom stocks, too, may remain in focus as Reliance Jio, Bharti Airtel and Vodafone Idea are unlikely to bid for 5G spectrum due to high costs. Before we wrap, here is a stock recommendation by Religare Broking-- The brokerage recommends buying Bajaj Finance at between Rs 3,325 and Rs 3,335. The target price is at Rs 3,520 with a stop loss placed at Rs 3,240.  That is all we have for you today in the pre-market podcast. For more business and markets related news and updates, stay logged on to Business-Standard.com

Markets remained volatile but traded higher on Tuesday as the Reserve Bank of India's (RBI) decision to transfer Rs 1.76 lakh crore to the government's coffer lifted banking, NBFCs and automobile stocks. That apart, possible resumption in trade talks between the United States and China also boosted investors' sentiment. The gains were, however, capped by losses in the information technology stocks which dipped on a weaker rupee.  The benchmark S&P BSE Sensex settled with gains of 147 points, or 0.39 per cent, at 37,641 level with Tata Motors, Tata Steel, YES Bank, and NTPC being the top gainers at the 30-share index. Bharti Airtel, Tech Mahindra, Infosys, and TCS, however, were the top laggards. On the other hand, the broader Nifty50 closed at 11,105 mark, up 48 points or 0.43 per cent. Sectorally, public sector banks, NBFCs, automobile, and metal stocks gained the most. Nifty PSU Bank index ended 2.51 per cent higher, followed by Nifty Metal index, up 2 per cent. Nifty IT index was the top loser, closing 1.35 per cent lower.  In the broader market, S&P BSE small-cap fared better than S&P BSE mid-cap index. The former closed 202 points, or 1.63 per cent, higher at 12,589 level, while the latter settled at 13,480 levels, up 77 points or 0.53 per cent.  BUZZING STOCKS Shares of HDFC Asset Management Company (AMC) surged 7 per cent to hit a new lifetime high of Rs 2,396 on the BSE in Tuesday's early morning trade on strong growth outlook and overseas investors buying. The stock surpassed its previous high of Rs 2,370, recorded on July 19, in intra-day trade. The stock closed 7.55 per cent higher at Rs 2,412 apiece.  Shares of Infosys slipped 3 per cent to Rs 781 in the intra-day trade on the BSE on Tuesday after the information technology (IT) firm closed the buyback offer as it utilised almost full size of the issue approved. The stock settled 2.23 pe cent lower at Rs 785 per share.