1. US Stocks Sink Most Since 2011 as Rout Deepens: Markets Wrap
US stocks plunged the most in six-and-half years, with the Dow Jones Industrial Average sinking more than 1,100 points, as the equity selloff reached a fever pitch amid rising concern that inflation will force interest rates higher. Treasuries rallied and gold rose on haven demand.
Volatility roared back into American equity markets, as the S&P 500 Index sank 4.1 percent to wipe out its January gain and turn lower on the year. The index capped its worst day since the US lost its pristine credit rating, topping the rout that followed China’s shock devaluation of the yuan, the Brexit selloff, and jitters heading into the presidential election. Trading volume was almost double the 30-day average. All but two stocks in the broad gauge declined.
“This is classic risk off that may not end anytime soon,” says Win Thin, head of emerging-market currency strategy at Brown Brothers Harriman.
Selling accelerated shortly after 3 pm in New York, with the Dow sinking more than 800 points in a matter of 15 minutes only to snap back.
(Source: Bloomberg Quint)
2. Tata Motors Turns Profitable at Standalone Level After Five Quarters
Tata Motors, the country’s biggest truck-maker, is back in black at a standalone level in the third quarter, helped by sharp growth in revenues (led by volumes) and cost reduction. The company had incurred losses at a standalone level in the five preceding quarters. The performance is in line with analysts’ expectations.
It reported a standalone profit of Rs 1.83 billion in October-December of FY18 against losses of Rs 10.46 billion in the corresponding quarter of the previous year. Standalone revenues (from its domestic business) for the quarter increased 59 percent to Rs 161 billion. The Ebitda (earnings before interest, depreciation, taxation, and amortisation) of the standalone business margin improved 750 basis points to nine percent in the quarter.
Commercial vehicles account for three-fourths of its standalone revenues while the rest comes from passenger vehicles. The share price gained over three percent to close at Rs 396 at the BSE in anticipation of improved performance.
(Source: Business Standard )
3. Corporate Tax to Come Down to 25% Once Exemptions End, Says Jaitley
Finance Minister Arun Jaitley said on Tuesday that corporate tax rate can be brought down to the promised 25 percent only after all the exemptions given to the industry have ended.
Speaking at a post-Budget meeting, organised by industry body Ficci, he said he had in 2015 promised to cut corporate tax rate to 25 percent, from 30 percent, in four years. Jaitley added, however, that he had also set a condition – all exemptions would have to go.
It would not be proper to end exemptions midway as some industries may have been set up based on them, he said. And therefore, the opportunity to reduce the corporate tax rate to 25 percent will arise when all the exemptions end in the due course, he said.
In the Union Budget 2018-19, presented last week, Jaitley provided for lower tax rate for corporates with a turnover of up to Rs 250 crore. For the remaining 7,000-odd companies, the average effective tax rate after considering the exemptions comes to about 22 percent, he said.
(Source: Bloomberg Quint)
4. Missing Fiscal Target Statistical: Arun Jaitley
Finance minister Arun Jaitley said missing the fiscal deficit target of 3.2 percent of GDP in 2017-18 was largely statistical as the government got only 11 months of goods and services tax (GST) revenues. He exuded hope that improved buoyancy in the next financial year would make it easier to meet the target. The government has set a target of 3.3 percent for FY19.
The FM also made it clear that the states were not in the mood to bring petroleum products immediately under GST. He added that there was no prejudice against large corporates for whom the tax rate was not cut to 25 percent.
Next year onwards, the 12-month cycle would be complete, he said, adding that the buoyancy in GST collections as well as indirect taxes gave him confidence that it would be easier to meet the fiscal deficit target of 3.3% of GDP set for 2018-19
(Source: Economic Times)
5. Niti Aayog CEO Amitabh Kant Gets Extension Till June 2019
Niti Aayog CEO Amitabh Kant was on tuesday given an extension till 30 June 2019, according to an official order.
He was appointed the Chief Executive Officer of the government think tank on 17 February 2016 for a two-year term.
The Appointments Committee of the Cabinet has approved extension of Kant's tenure till 30 June 2019, the order issued by the personnel ministry said. Kant is a 1980 batch IAS officer of Kerala cadre.
(Source: Economic Times )
6. Govt to Bar Cryptocurrencies From its Payments System
India is planning steps to ensure cryptocurrencies are illegal within its payments system, while at the same time appointing a regulator to oversee unregulated exchanges that trade in "crypto assets," a finance ministry official said on Monday.
A panel set by the government to look into issues relating to cryptocurrencies is expected to submit its report in the current fiscal year, ending on 31 March, SC Garg, Economic Affairs Secretary, told CNBC TV18 news.
"The government will take steps to make it illegal as a payment system," he said at a post-budget event telecast by the news channel, adding the trading of "crypto assets" at the unregulated exchanges would be regulated.
(Source: Economic Times )
7. Singapore Telecom to Invest Rs 2,649 crore in Bharti Telecom
Singapore Telecommunications Ltd (Singtel) will indirectly raise its stake in Bharti Airtel Ltd by investing Rs 2,649 crore in Bharti Telecom Ltd, the promoter company of Airtel, through a preferential allotment of shares.
The investment comes within two years of Singtel’s participation in Bharti Telecom’s rights issue of Rs2,500 crore, which was completed in February 2016, Bharti Airtel said in a statement on Monday.
With the latest round of investment, Singtel’s total stake (along with its affiliates) in Bharti Telecom will increase to 48.9 percent from 47.17 percent currently, the statement said. The Mittal family owned Bharti Enterprises continues to hold over 50 percent stake in Bharti Telecom.
The transaction is subject to approval by shareholders of Bharti Telecom and the funds raised will be used towards debt reduction, the company said.
(Source: Livemint )
8. Real Estate, Natural Gas May Soon be Brought Under GST, Says Arun Jaitley
Finance minister Arun Jaitley on Monday hinted at the possibility that the government may soon bring cooking gas and real estate under the ambit of the goods and services tax (GST), to be followed by a similar move with regard to petrol, diesel and potable alcohol.
“So far the mood of most states is not to include petrol and diesel in GST. I’m sure as the GST experience moves on, I think natural gas, real estate which includes land... these are areas which are to be brought in and then probably at some stage we will try for petrol and diesel and then of course potable alcohol,” Jaitley said, addressing a post-budget event organised by industry lobby Federation of Indian Chambers of Commerce and Industry (Ficci).
Any such decision will need to be cleared by the GST Council which includes finance ministers of all states and the central government.
(Source: Livemint )
9. Jerome Powell Sworn in as 16th Chairman of Federal Reserve
Jerome Powell was sworn in on Tuesday as the 16th chairman of the Federal Reserve in a brief ceremony in the Fed's board room.
In a video message, Powell pledged to support continued economic growth and a healthy job market while remaining "vigilant" to any emerging economic risks. Powell did not mention the current turbulence in financial markets, which sent stocks plunging on Friday.
Powell succeeds Janet Yellen, the first woman to lead the nation's central bank in its 100-year history. President Donald Trump picked Powell after deciding to break with recent tradition and not offer Yellen a second four-year term. Powell, who has been on the Fed board since 2012, was tapped by Trump on 2 November after a highly public search for a new Fed chair.
(Source: Economic Times )