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.
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.