Indian share markets finished the trading day below the dotted line ahead of the central bank’s policy meeting and weak Asian markets.
Many expect the Reserve Bank of India to cut the repo rate by 25 basis points on Wednesday after December inflation hit a two-year low. It may be a close call however, since the central bank may even opt to maintain status quo until its next review in April.
At the closing bell, the BSE Sensex closed lower by 104 points, whereas the NSE Nifty finished lower by 33 points. The S&P BSE Midcap finished down by 0.2%, while the S&P BSE Small Cap finished down by 0.1. Losses were largely seen in auto and metal stocks.
ITC share price rallied over 5% during early trading amid market buzz that Specified Undertaking of Unit Trust of India sold 2% stake in the company via a block deal to LIC. ITC finally closed the trading day up by 0.3%.
Asian markets finished lower today with shares in Japan leading the region. The Nikkei 225 is down 0.35% while China’s Shanghai Composite is off 0.12% and Hong Kong’s Hang Seng is lower by 0.07%. European markets are mixed today. The FTSE 100 is up 0.48% while the DAX gains 0.32%. The CAC 40 is off 0.01%.
The rupee was trading at Rs 67.37 against the US$ in the afternoon session. Oil prices were trading at US$ 52.81 at the time of writing.
Tata Motors (TTM) share price plunged 3.5% in today’s trade after Deutsche Bank estimated that the proposed border tax adjustments in the United States could hit Tata Motors’ earnings per share (EPS) by 50%.
As per an article in The Economic Times, an analysis of border tax adjustments being proposed under House speaker Paul Ryan’s “Better Way” tax reform plan in the US indicates significant negative impact for auto makers that rely on imports of components or fully built cars for sales in the US.
Under the proposed border tax adjustments, cost of an average vehicle could increase cost of an average vehicle by US$2,300, while JLR could face an impact of US$9,000 per vehicle on its US volumes. In Tata Motors’ case, the US accounts for 20% of subsidiary Jaguar Land Rover Automotive Plc’s global volumes. This volume is exported from the UK and there is no assembly in the US.
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