The benchmark stock indices opened the day on a negative note after yesterday's rally from early losses.
Join us as we follow the top business news through the day.
Maruti Suzuki pre-owned car unit True Value crosses 40 lakh unit sales
New trends in the car market.
PTI reports: "The country's largest carmaker Maruti Suzuki India (MSI) on Thursday said its pre-owned car unit True Value has crossed 40 lakh sales milestone.
True Value celebrates the sales of 4 million pre-owned cars from a network of independent outlets across the country, MSI said in a statement In line with market trends, the automaker had upgraded its True Value outlets in 2017, offering a seamless amalgamation of online to offline car buying experience.
"The pre-owned car market in India is highly unorganised and there are very few players providing safe, reliable and transparent buying and selling experience to buyers.
"True Value was set up to overcome these issues and ensure that buyers of the pre-owned car get the same experience as new car buyers," MSI Executive Director (Marketing & Sales) Shashank Srivastava said.
The outlets are digitally integrated through website and app so that customers can access details of all the cars available at True Value outlets from the comfort of their home, he added.
"The record of over 4 million True Value pre-owned car sales stands testament to our customers' persistent support and love for the brand," Srivastava noted.
Since foraying into the country's pre-owned car market in 2001, True Value has expanded its pan-India reach with a wide network of over 550 outlets spread across 268 cities."
SEBI ban on Kishore Biyani, others won’t impact deal with Reliance: Future Retail
Future Retail Ltd. has said that SEBI’s one-year ban on its Chairperson Kishore Biyani and some other promoters from the securities market will have “no impact” on the ₹24,713 crore-deal with Reliance.
Further, Mr. Kishore Biyani, some other promoters and Future Corporate Resources Pvt. Ltd. (FCRPL) plan to appeal against the order passed by Securities and Exchange Board of India (SEBI) on February 4.
“The... Order will have no impact on the ongoing Scheme of Arrangement of the company. We understand that the relevant parties propose to challenge this Order in exercise of their statutory right to appeal,” Future Retail Ltd. (FRL) said in a late-night regulatory filing on February 3.
In a separate statement, Future Corporate Resources Pvt. Ltd. (FCRPL) said the SEBI order “has taken care to exclude dealings in securities under any impending Scheme of Arrangement”.
“Therefore, the SEBI would not pose a hurdle to the ongoing Scheme of Arrangement with the Reliance Group,” it said.
Airbus signs MoU with GMR Group to collaborate on aviation services in India
Airbus signed a Memorandum of Understanding (MoU) with GMR Group to explore collaboration opportunities across aviation services, technologies and innovation.
The MoU was signed at Aero India 2021 in Bengaluru.
Airbus and GMR Group will team up to explore potential synergies in several strategic areas of aviation services, including maintenance, components, training, digital and airport services, an Airbus statement said.
Ropeways, innovative mobility solutions brought under Highways Ministry ambit, says Gadkari
Ropeways, cable cars and innovative mobility solutions like funicular railways have been brought under the ambit of Ministry of Road Transport and Highways, Union Minister Nitin Gadkari said on Thursday.
The move will give a big fillip to infrastructure building in remote, inaccessible areas and hilly terrains of the country, the Road Transport, Highways and MSMEs Minister Gakdari told PTI.
"Ropeway, cable car, funicular railway, public transport on electricity etc have come under the Ministry of Road Transport and Highways. This will give a big impetus to infrastructure building in inaccessible terrains," the Minister said.
Apart from last mile connectivity for remote locations, it will reduce congestions on mainstream roads, the Minister said.
The move will result in setting up of world-class ropeways in the country with emphasis on quality and safety.
Crown Group signs MoU with TIDCO to develop aerospace cluster near Salem airport in TN
The Crown Group on Thursday announced it has signed a memorandum of understanding (MoU) with Tamil Nadu Industrial Development Corporation (TIDCO) to develop an integrated aerospace cluster adjoining the Salem airport.
"The cluster, which is part of the Tamil Nadu Defence Corridor, will house India's first-ever indigenous MRO (maintenance, repair and overhaul) facility for military aircraft and equipment," the group said in a press release.
The group said it will also establish a drone testing facility in the cluster.
Apollo Tyres shares zoom over 12% after encouraging Q3 earnings
Today's big mover in stocks.
PTI reports: "Shares of Apollo Tyres on Thursday jumped over 12 per cent after the company posted over two-fold increase in its consolidated net profit for the third quarter ended December.
The company's stock zoomed 12.42 per cent to its one-year high of Rs 255.55 on the BSE.
At the NSE, it gained 12.42 per cent to 255.70 -- its one-year high.
Apollo Tyres on Wednesday posted over two-fold increase in its consolidated net profit at Rs 444 crore for the third quarter ended December on the back of robust sales across domestic and international markets.
The company had reported a net profit of Rs 174 crore in the October-December period of the last financial year.
Sales during the period under review grew by 14 per cent to Rs 4,965 crore, as against 4,347 crore in the year-ago period, Apollo Tyres said in a statement.
"Our performance across geographies have been robust in the past quarter, and we continue to be extremely positive on the demand environment," Apollo Tyres Chairman Onkar Kanwar said."
11:30 AM
Indian shares set to snap post-budget rally as banks weigh
An update on stocks.
Reuters reports: "Indian shares fell on Thursday as financial stocks took a breather after a three-day post-budget rally, with the focus pinned on the central bank's monetary policy decision due on Friday where rates are expected to be held at record lows.
The NSE Nifty 50 index fell 0.25% to 14,753.10 by 0455 GMT, while the benchmark S&P BSE Sensex was down 0.34% at 50,084.71. Both the indexes hit record highs this week on euphoria surrounding a high-spending federal budget aimed at reviving a pandemic-hit economy.
"The recent rise was far too quick and we are seeing a consolidation at the moment," said Anand James, chief market strategist at Geojit Financial Services in Kochi.
"With the budget behind us... and even though rates are expected to be held, there is an eye on some announcements coming up in the monetary policy committee meeting and that is partly why markets are cautious," James said.
Cues from broader Asian shares were weak too, as tight liquidity conditions in China curbed buying.
Among individual shares and sectors, oil-to-telecoms conglomerate Reliance Industries declined as much as 0.9% after it said its unit will sell some Marcellus shale assets in the United States for $250 million.
Bank stocks were among the top drags on the Nifty 50, with top private-sector lender HDFC Bank falling 2%. The lender also weighed on the Nifty Bank index, which shed 1.5%. The index has risen 12.3% so far this week.
India's largest lender SBI fell 1.1%, while Hero MotoCorp jumped nearly 4%. Both the companies will report their quarterly earnings later in the day.
The Nifty Auto index gained 2.2%, driven by a near 6% jump in Mahindra and Mahindra, followed by a 2.2% rise in Maruti Suzuki India. The carmakers were also the top boosts to the Nifty 50."
India does not agree with USTR's report on ecommerce tax: Commerce Secretary
India does not agree with the United States Trade Representative (USTR) report that the country's 2% equalisation levy on foreign e-commerce firms discriminates against American companies, Commerce Secretary Anup Wadhawan said on Wednesday.
Last month, an USTR investigation has concluded that India's 2% digital services tax on e-commerce supply discriminates against U.S. companies and is inconsistent with international tax principles.
"We do not agree with that conclusion," Mr. Wadhawan told reporters when asked whether India has responded to the USTR report.
"Basically, if there is an economic benefit from a certain jurisdiction then there has to be some taxation in that jurisdiction...OECD (Organisation for Economic Co-operation and Development) is also moving in that direction that if you have an economic presence and economic gain, then you must have taxation in that jurisdiction. You have billions of dollars of revenue in a certain jurisdiction, you have to pay taxes," he said.
Rupee rises 6 paise to 72.90 against US dollar in early trade
The rupee continues its appreciation against the rupee.
PTI reports: "The rupee appreciated by 6 paise to 72.90 against the US dollar in opening trade on Thursday amid muted domestic equities.
At the interbank forex market, the local unit opened at 72.92 against the US dollar and inched higher to 72.90 in early deals, registering a rise of 6 paise over its previous close.
On Wednesday, the rupee had settled at 72.96 against the American currency.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.07 per cent to 91.23.
"The pullback in Asian equities and possibility of the Reserve Bank of India's intervention, however, would likely cap the rupee's upside," Reliance Securities said in a research note.
Markets will now look ahead to Reserve Bank of India's monetary policy decision Friday, the note added.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 188.75 points lower at 50,067.00, and the broader NSE Nifty declined 44.25 points to 14,745.70.
Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 2,520.92 crore on Wednesday, according to exchange data.
Brent crude futures, the global oil benchmark, rose 0.56 per cent to USD 58.79 per barrel."
‘Interest on PF contributions of over ₹2.5 lakh must in I-T filing’
Employees making contributions of more than ₹2.5 lakh a year into their Provident Fund (PF) accounts, will have to include the interest attributable to the investments exceeding ₹2.5 lakh in their annual income starting 2021-22 and file tax returns accordingly, Central Board of Direct Taxes (CBDT) chief PC Mody told The Hindu.
The Union Budget has proposed tax on interest income on PF contributions exceeding ₹2.5 lakh a year. Finance Minister Nirmala Sitharaman said on Monday that some people were investing as much as ₹1 crore each month into PF and suggested it was unfair that they get tax concessions as well as an assured return.
When asked how the taxation proposal would be implemented — at the time of retirement or withdrawal from the PF account, or by deducting tax at the time of crediting interest — Mr. Mody said that though PF account holders may have the option to withdraw or not, the determination of the tax was very clear.
Sensex drops over 140 points in early trade
A lukewarm start to the day for stocks.
PTI reports: "Equity benchmark Sensex declined over 140 points in early trade on Thursday as index-heavyweights Reliance Industries, Infosys and HDFC twins witnessed intense selling pressure.
The 30-share BSE index was trading 140.79 points or 0.28 per cent lower at 50,114.96.
Similarly, the broader NSE Nifty slipped 31.30 points or 0.21 per cent to 14,758.65.
IndusInd Bank the top loser in the Sensex pack, fell around 2.50 per cent, followed by Axis Bank, ICICI Bank, HDFC Bank, Asian Paints, Tech Mahindra, L&T and HCL Tech.
On the other hand, ONGC, M&M, Bajaj Auto, NTPC, Maruti, ITC and Bajaj Finance were among the gainers.
In the previous session, the 30-share BSE benchmark ended at 50,255.75, up 458.03 points or 0.92 per cent and the broader NSE Nifty had surged 142.10 points or 0.97 per cent to its fresh closing record of 14,789.95.
Foreign portfolio investors (FPIs) were net buyers in the capital market as they purchased shares worth Rs 2,520.92 crore on a net basis on Wednesday, as per exchange data.
Elsewhere in Asia, bourses in Tokyo, Hong Kong, Seoul and Shanghai were trading with losses.
Meanwhile, the global oil benchmark Brent crude was trading 0.89 per cent higher at USD 58.98 per barrel."
Amazon CEO Jeff Bezos may step down without stepping away
Even after stepping aside as CEO, Amazon founder Jeff Bezos will likely keep identifying new frontiers for the world’s dominant e-commerce company. His successor, meanwhile, gets to deal with escalating efforts to curtail Amazon’s power.
Tuesday’s announcement that Mr. Bezos will hand off the CEO job this summer came as a surprise. But it doesn’t mean Amazon is losing the visionary who turned an online bookstore founded in 1995 into a behemoth worth $1.7 trillion that sometimes seems to do a little bit of everything.
Mr. Bezos, 57, has never let Amazon rest on its laurels. In the last year alone, it bought a company developing self-driving taxis; launched an online pharmacy selling inhalers and insulin; and won government approval to put more than 3,200 satellites into space to beam internet service to Earth.
