Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Indian Indices Witness Selling as RBI Lowers GDP Forecast to 6.9%; Sensex Ends 286 Points Lower
Wed, 7 Aug Closing | Monish Vora, TM Team

After opening the day on a flat note, share markets in India witnessed negative trading activity during closing hours and ended lower.

Barring IT sector and healthcare sector, all sectoral indices ended on a negative note with metal stocks, energy stocks and automobile stocks leading the losses.

At the closing bell, the BSE Sensex stood lower by 286 points (down 0.8%) and the NSE Nifty closed down by 93 points (down 0.9%). The BSE Mid Cap index ended the day down by 0.4%, while the BSE Small Cap index ended on a flat note.

Asian stock markets finished on a mixed note. As of the most recent closing prices, the Hang Seng was up by 0.1% and the Shanghai Composite was down by 0.3%.

--- Advertisement ---
You Missed This Yesterday

Our urgent mega summit 'Rebound Riches' went LIVE yesterday.

For those who missed the summit, we've made the replay available for a limited time.

Watch as we reveal the details of 3 high potential stocks to buy for exponential gains.

Potentially 200%, 400%, or even 900% in the coming years.

Click here to watch now...
------------------------------

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) today announced a 35 basis points cut in repo rate in its third bimonthly policy review of this financial year. After the cut, the repo rate now stands at 5.40%.

The reverse repo rate now stands at 5.15%. The RBI press statement said four out of the six members of the MPC voted in favour of a 35 basis points (bps) rate cut in this monetary policy meet.

RBI in its release said global economic activity has slowed down since June 2019 MPC meeting amid elevated trade tensions and geopolitical uncertainty. RBI also trimmed India's GDP growth forecast for this financial year to 6.9% from 7% earlier.

The release also stated that the transmission of policy repo rate cuts to the weighted average lending rates (WALRs) on fresh rupee loans of banks has improved marginally since the last MPC meeting. Overall, banks reduced their WALR on fresh rupee loans by 29 bps during the current phase.

--- Advertisement ---
Want to Make Big Money? Then Follow Actions of Oil Giants

Do you know what giant oil companies are doing these days?

They are chasing a new opportunity... a new technology... where they see exponential growth for years ahead.

Everyone is in the race... Royal Dutch Shell, France's Total, British Petroleum, America's ExxonMobil.

Here in India, one tech company is smartly tapping into this multi-billion dollar opportunity.

Today, very few people know about the potential of this company.

But once the broader market gets a whiff of it... there is no limit to how high the stock price of this company may rise.

Click here for the full details...
------------------------------

The apex bank projected CPI inflation at 3.1% for Q2FY20 and 3.5%-3.7% for the second half of FY20, with risk evenly balanced. The MPC noted that inflation is currently projected to remain within the target over a 12-month ahead horizon.

RBI also said high-frequency indicators of services sector activity for May-June present a mixed picture. Tractor and motorcycle sales, indicators of rural demand, continued to contract. Among three indicators of urban demand, passenger vehicle sales contracted for the eighth consecutive month in June.

However, domestic air passenger traffic growth turned positive in June after contracting for three consecutive months.

The central bank also said that liquidity in the system was in large surplus in June-July 2019 due to return of currency to the banking system, drawdown of excess cash reserve ratio (CRR) balances by banks, open market operation (OMO) purchase auctions, and RBI's foreign exchange market operations.

RBI governor Shaktikanta Das clarified that future policy actions will be dependent on upcoming data. He also said that NBFC loans to MSME sector up to Rs 20 lakh will get priority status. He also assured sufficient liquidity to all needy sectors.

It is well known that the impact of the monetary policy on the Indian economy is felt with a significant lag, but the situation at the current juncture has become further complicated due to the ongoing crisis in both the banking and the shadow banking sectors.

While banks are struggling with high NPAs, NBFCs are struggling with solvency issues leading to credit freeze.

It would be interesting to see how this all pans out. Meanwhile, we will keep you updated on all the developments from this space.

--- Advertisement ---
Buying this stock today is like buying HCL Tech in 2003

Do you know what was the price of HCL Tech in 2003?

Just Rs 20...

And today, it's trading at Rs 556.

A mind-blowing return of 2,680%.

Now we can't go back in time to get these massive returns. But markets keep throwing such mega opportunities from time to time.

All you need to do is identify them and act on them at the right time.

And one such rare opportunity exists today...

This company is tapping aggressively into a futuristic industry. And this is likely to propel its stock price to crazy heights.

If you'd like to make a potential fortune in the years ahead, you need to act now.

Go here for more details on this stock.
------------------------------

In news from the automobile sector, India's largest tractor manufacturer, Mahindra and Mahindra (M&M) reported a 26% decline in its consolidated net profit at Rs 9.2 billion for Q1FY20.

Reportedly, the fall in profit was attributed to sluggish domestic volume and increased cost pressure. The company had posted a profit of Rs 12.4 billion in the year-ago quarter.

Operational revenues for the quarter declined by 7% to Rs 260.4 billion against Rs 280.6 billion in the corresponding quarter of the previous fiscal. Operating profit margin contracted 180 bps to 14% in Q1FY20 from 15.8% in Q1FY19.

The company reported a one-time gain of Rs 13.7 billion for the quarter mainly on account of gain on sale of shares by M&M benefit trust and gain on buyback by an associate/transfer of certain long-term investments.

The company's domestic wholesale volumes declined across vehicle categories during Q1FY20. According to data released by Society of Indian Automobile Manufacturers (Siam), M&M dispatched 59,399 units of passenger vehicles in Q1, which marked a year-on-year decline of 2%.

In the commercial vehicle segment, it reported a drop of more than 9% YoY with volumes at 51,594 units during the three-month period. For three-wheelers (excluding electric vehicles), the company reported domestic wholesales of 12,697 units, down 2.4% YoY.

M&M share price ended the day down by 6%.

To know more about the company, you can read M&M's 2018-19 annual report analysis on our website.

Note that automobile sales have fallen every month for almost a year now, except for October when the numbers were flat. In June, nine out of India's 11 main passenger vehicle makers reported a double-digit decline in sales.

Reports state that many dealers who have recently entered the auto industry are finding it difficult to manage their repayment obligations. Banking industry experts estimate the total outstanding loans to automobile dealers to be in the range of Rs 700-800 billion.

However, it is interesting to note that despite the slowdown in the auto sector, the sales volume of electric vehicles (EVs) are growing at a robust pace.

Have a look at the chart below:

Electric Vehicle Sales on a High Growth Trajectory!

Electric Vehicle Sales on a High Growth Trajectory!

Electric-2 wheelers sales volume registered 130% YoY growth in FY19. 4-wheeler EVs grew by 200% YoY.

Similarly, electric three-wheelers reported the highest sales volume of 630,000 units. It is important to note that the electric three-wheeler industry has been growing without government support.

The base is quite low compared to the internal combustion engine (ICE) vehicle sales. However, you cannot ignore the growing momentum in EV sales.

The recently announced government incentives will give a further boost to EV sales. The coming one year will be a real test for India's auto companies.

It will also tell us if this slowdown is temporary or if there has been a structural change in the sector.

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

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary


What else is happening in the markets today? Dig in...

Equitymaster requests your view! Post a comment on "Indian Indices Witness Selling as RBI Lowers GDP Forecast to 6.9%; Sensex Ends 286 Points Lower". Click here!

  

Stock Market Updates

TUBE INVESTMENTS OF INDIA LTD Share Price Up by 5%; BSE CAPITAL GOODS Index Up 0.5% (Today's Market)

Aug 7, 2020 03:34 PM

TUBE INVESTMENTS OF INDIA LTD share price is trading up by 5% and its current market price is Rs 558. The BSE CAPITAL GOODS is up by 0.5%. The top gainers in the BSE CAPITAL GOODS Index are TUBE INVESTMENTS OF INDIA LTD (up 5.2%) and HONEYWELL AUTOMATION (up 14.2%). The top losers are V GUARD INDUSTRIES (down 0.2%) and SKF INDIA (down 0.3%).

BANK OF BARODA Share Price Up by 5%; BSE BANKEX Index Up 0.4% (Today's Market)

Aug 7, 2020 03:34 PM

BANK OF BARODA share price is trading up by 5% and its current market price is Rs 49. The BSE BANKEX is up by 0.4%. The top gainers in the BSE BANKEX Index are BANK OF BARODA (up 5.1%) and RBL BANK LTD (up 9.7%). The top losers are AXIS BANK and SBI (down 0.2%).

ADANI TRANSMISSION Share Price Up by 9%; BSE POWER Index Up 1.4% (Today's Market)

Aug 7, 2020 03:34 PM

ADANI TRANSMISSION share price is trading up by 9% and its current market price is Rs 254. The BSE POWER is up by 1.4%. The top gainers in the BSE POWER Index are ADANI TRANSMISSION (up 9.0%) and JSW ENERGY (up 5.3%). The top losers are NTPC (down 0.3%) and KALPATARU POWER (down 0.5%).

ESSEL PROPACK Share Price Down by 5%; BSE 500 Index Up 0.3% (Today's Market)

Aug 7, 2020 03:14 PM

ESSEL PROPACK share price is trading down by 5% and its current market price is Rs 275. The BSE 500 is up by 0.3%. The top gainers in the BSE 500 Index are HONEYWELL AUTOMATION (up 11.7%) and RBL BANK LTD (up 10.0%). The top losers are ESSEL PROPACK (down 5.0%) and LUPIN (down 6.0%).

EMAMI LTD Share Price Up by 6%; BSE FMCG Index Up 0.8% (Today's Market)

Aug 7, 2020 02:26 PM

EMAMI LTD share price is trading up by 6% and its current market price is Rs 254. The BSE FMCG is up by 0.8%. The top gainers in the BSE FMCG Index are EMAMI LTD (up 6.2%) and GSK CONSUMER (up 5.1%). The top losers [TOPLOSERS].

Sensex Trades Marginally Lower; HCL Technologies & Infosys Top Losers (Today's Market)

Aug 7, 2020 12:30 pm

The BSE Sensex is trading down by 83 points, while the NSE Nifty is trading down by 18 points.

View More Indian Share Market News

Most Popular

These 5 Smallcaps Deserve a Place in Your Coffee Can Portfolio(Profit Hunter)

Jul 28, 2020

When it comes to quality stocks, doing less is more.

Before You Buy Your First Electric Vehicle Consider Buying this Stock(Profit Hunter)

Jul 29, 2020

As competition intensifies in the electric vehicle space, only few will create huge wealth over the years.

How to Buy Gold and Silver(Fast Profits Daily)

Jul 27, 2020

In this video I'll show you how to buy bullion the right way.

Large Opportunities Are Coming Our Way

Aug 5, 2020

Kenneth Andrade tells us why stocks will bounce back strongly and what he's bullish on.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Aug 7, 2020 (Close)

MARKET STATS