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Of World Bank's Global Economic Growth Projections, Tata-Jet Airways Deal, and Top Cues in Focus Today
Mon, 14 Jan Pre-Open | Monish Vora, TM Team

On Friday, share markets in India opened on a positive note and ended the day in red after a volatile day of trading.

The BSE Sensex closed lower by 97 points to end the day at 36,010. While the broader NSE Nifty ended down by 27 points to end at 10,795.

Among BSE sectoral indices, realty stocks fell the most by 1.4%, followed by telecom stocks and capital goods stocks.

Top Stocks in Focus Today

Tata Motors share price will be in focus today as the company's wholly owned subsidiary - Jaguar Land Rover (JLR) has reported retail sales of totaled 592,708 vehicles in 2018, down 4.6% compared to 2017's record year.

Eicher Motors share price will also be in focus today as the company's two-wheeler division - Royal Enfield has launched Bullet 500 ABS in the Indian market priced around Rs 1.86 lakh ex-showroom, Delhi.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

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GST Exemption for MSMEs

Moving on to the news from the GST space... In a major relief to micro, small and medium enterprises (MSMEs), the GST Council on Thursday doubled the GST exemption limit for companies in the sector to those with an annual turnover of Rs 4 million from the current Rs 2 million.

The move to raise the threshold for GST registration is significant considering that small businesses have been hit by the government's move to demonetise high-value currency notes in November 2016, business disruption in the early days of GST implementation and a credit squeeze in recent months.

Bringing about major changes in the composition scheme, the current turnover limit was increased to Rs 15 billion from Rs 10 billion.

The Council also allowed Kerala to levy a calamity cess of 1% on intra-state sales for a maximum period of two years.

The government has taken several steps to benefit consumers and small businesses ahead of the 2019 Lok Sabha elections.

These include MSMEs loans in 59 minutes, tax relief to National Pension System (NPS) subscribers, GST rate cuts on 22 items, extension of due date for businesses to file various return forms, incentives for onion exporters and tightening of foreign direct investment norms for online marketplaces to protect small traders.

World Bank on Global Economic Growth

The World Bank has projected a gloomy outlook for the global economic growth in the coming years.

In its recently released Global Economic Prospects Report - January 2019, the World Bank reiterated the fears of global slowdown.

As per the report, worries over trade war, weak global growth and financial stress in the developing economies are likely to weigh on global growth outlook.

As per the report, in 2019, the global economic growth is projected to grow by 2.9% compared with earlier estimates of 3% amid softer international trade and manufacturing activities, elevated trade tensions and financial market pressures in some of the emerging market economies.

In 2020 and 2021, the global economic growth has been forecast at 2.8% each year. This is 0.1% point lower than earlier projections.

However, the World Bank expects India to remain the fastest growing emerging market economy.

As per the report, India is expected to remain the fastest growing emerging market economy and its growth forecast has been kept unchanged at 7.3% in FY19 while the economy is expected to grow at 7.5% in the next 3 years.

As per the World Bank's estimates, current account deficit is expected to widen to 2.6% of GDP while the inflation is projected to rise somewhat above the midpoint of the Reserve Bank of India's (RBI) target range of 2-6%, mainly owing to energy and food prices.

It states the domestic demand in India is improving owing to structural reforms undertaken by the country recently and a revival in credit growth.

While investment continued to strengthen amid GST harmonisation and a rebound of credit growth, consumption remained the major contributor to growth.

How these projections unfold remains to be seen. Meanwhile, we will keep you updated on all the developments from this space.

Tata-Jet Airways Deal

From the airlines sector, Jet Airways share price was witnessing buying interest on Friday on reports that Tata-Jet Airways deal is back on the table.

The cash-strapped airline which had its credit rating cut to default this month is weighing a resumption of stake sale talks with Tata Group as the carrier is poised to run out of cash.

Reportedly, the creditors are open to lending $500 million to Jet Airways if Goyal and Etihad inject a similar amount into the company. A decision will be made once a forensic examination being conducted into the airline's book is completed.

On Tuesday last week, the company met with lenders, lessors and vendors to discuss its financial situation and a debt-repayment plan.

Earlier, the airline delayed payments to a consortium of Indian banks, led by State bank of India.

According to reports, the payment of interest and principal instalment was delayed "due to temporary cash flow mismatch" and the company is in talks with the consortium. The deadline for the payment was December 31, 2018.

This led to downgrading of the airline's loan and debenture ratings by rating agency ICRA.

ICRA revised the long-term rating (assigned to long-term loans and non-convertible debentures) to D from C. The short-term rating has been revised to D from A4.

Last month, Jet was in talks with the SBI for raising Rs 15 billion short-term loan to meet its working capital requirement and some payment obligations.

Reportedly, Jet Airways' strategic partner and Middle-east carrier Etihad, which holds 24% stake in the Indian full-service carrier, is likely to provide guarantee for the loan.

The Naresh Goyal-controlled airline, which has posted three consecutive quarterly losses of over Rs 10 billion each since March, already has as much as Rs 80 billion of debt on its books as on September 30. Rating agency ICRA has already cut the rating on Jet Airways borrowing programmes.

To know more about the company, you can access to Jet Airways' latest result analysis and Jet Airways' 2017-18 Annual Report Analysis on our website.

From the Currencies Space...

The rupee was trading on a volatile note last week.

On Thursday last week, the rupee consolidated in a narrow range for the third successive day despite volatility in global oil prices and weakness in the dollar.

In the last couple of weeks, crude has rallied over 20%, which led to marginal weakness in the rupee despite a low-lying dollar.

The rupee has slid about 1% against the US$ this year after posting the best quarterly gains since March 2017.

The dollar continued to remain under pressure in the last few sessions but rebounded on Thursday last week after Fed Chairman stressed again that the US central bank can be patient in approving any further rate increases as officials' gauge whether the US economy will slow this year.

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Read the latest Market Commentary

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Stock Market Updates

Sensex Ends Marginally Higher; Automobile and Power Stocks Witness Buying (Today's Market)

Aug 16, 2019 Closing

The BSE Sensex ended the day up by 39 points, while the NSE Nifty closed up by 18 points.

PIDILITE INDUSTRIES at All Time High; BSE FMCG Index Up 0.4% (Today's Market)

Aug 16, 2019 03:34 PM

PIDILITE INDUSTRIES share price has hit an all time high at Rs 1,373 (up 1.7%). The BSE FMCG Index is up by 0.4%. Among the top gainers in the BSE FMCG Index today are PIDILITE INDUSTRIES (up 1.7%) and P&G HYGIENE (up 0.2%). The top losers include AVANTI FEEDS (down 0.1%) and COLGATE (down 0.1%).

APL APOLLO TUBES Surges by 6%; BSE CAPITAL GOODS Index Down 0.1% (Today's Market)

Aug 16, 2019 03:32 PM

APL APOLLO TUBES share price has surged by 6% and its current market price is Rs 1,350. The BSE CAPITAL GOODS is down by 0.1%. The top gainers in the BSE CAPITAL GOODS Index are APL APOLLO TUBES (up 6.4%) and SUZLON ENERGY (up 6.7%). The top losers are LAKSHMI MACHINE (down 0.2%) and HONEYWELL AUTOMATION (down 0.4%).

CANARA BANK Surges by 5%; BSE BANKEX Index Up 0.8% (Today's Market)

Aug 16, 2019 03:30 PM

CANARA BANK share price has surged by 5% and its current market price is Rs 237. The BSE BANKEX is up by 0.8%. The top gainers in the BSE BANKEX Index is CANARA BANK (up 5.2%). The top losers is HDFC BANK (down 0.2%).

ECLERX SERVICES Plunges by 5%; BSE IT Index Down 0.8% (Today's Market)

Aug 16, 2019 03:30 PM

ECLERX SERVICES share price has plunged by 5% and its current market price is Rs 519. The BSE IT is down by 0.8%. The top gainers in the BSE IT Index are FIRSTSOURCE SOL. (up 3.5%) and ORACLE FINANCIAL (up 3.2%). The top losers is ECLERX SERVICES (down 5.5%).

DR. LAL PATHLABS LTD Surges by 7%; BSE HEALTHCARE Index Down 0.3% (Today's Market)

Aug 16, 2019 03:22 PM

DR. LAL PATHLABS LTD share price has surged by 7% and its current market price is Rs 1,201. The BSE HEALTHCARE is down by 0.3%. The top gainers in the BSE HEALTHCARE Index are DR. LAL PATHLABS LTD (up 7.1%) and APOLLO HOSPITALS (up 8.1%). The top losers are STRIDES PHARMA SCIENCE (down 0.1%) and SANOFI INDIA (down 0.2%).

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