FRIDAY, 8 FEBRUARY2019 20 pages in 1 section www.business-standard.com MUMBAI (CITY) ~8.00 VOLUME XXIII NUMBER 127 THE MARKETS ON THURSDAY Chg# Sensex 36,971.1 4.1 Nifty 11,069.4 6.9 BRAND WORLD P19 COMPANIES P2 Nifty futures* 11,093.8 24.4 Dollar ~71.5 ~71.6** Euro ~81.0 ~81.5** BAJAJ PLAYS AGLOBALTUNE, LAMBORGHINI SEES Brentcrude ($/bbl)## 62.1## 62.1** Gold (10 gm)### ~33,000.0 ~210.0 HUNTS FOR LOCALGLORY INDIA IN FAST LANE *(Feb.) Premium on Nifty Spot; **Previous close; # Over previous close; ## At 9 pm IST; ### Market rate exclusive of VAT; Source: IBJA PUBLISHED SIMULTANEOUSLY FROM AHMEDABAD, BENGALURU, BHUBANESWAR, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI (ALSO PRINTED IN BHOPAL), NEW DELHI AND PUNE TATA MOTORS’ Q3 LOSS AT ~27,000 CR, A Rate cut season back after18 months RECORD FOR INDIA INC Repo rate lowered by 25 bps Das flags growth concerns, Dy Governor Viral Acharya, Bi-monthly review Page 4 > Tata Motors on Thursday reported a consolidated to 6.25%, more cuts likely changes policy stance to ‘neutral’ Chetan Ghate wanted pause ECBroutethrownopen net loss of ~26,961 crore for the quarter ended ANUP ROY forIBCbidders December 31, hit by asset Mumbai, 7 February impairment in its British arm, Jaguar The central bank permitted Land Rover Automotive. This is the he Reserve Bank of India (RBI) on bidders for insolvent companies to raise biggest-ever quarterly loss in India’s Thursday went against the consensus funds through external corporate history. The company had and cut the policy rate by 25 basis points commercial borrowings to posted a net profit of ~1,215 crore in the T to give a lift to the growth momentum of repay existing lenders. The year ago quarter. The company’s ADRs the economy, a key concern for the poll-bound access to relatively cheap foreign capital listed on the New York Stock Exchange government. would aid early resolutions and also were trading about 10 per cent lower. P The government initiated populist measures make the process cost-efficient, bankers B Balaji, chief financial officer at Tata in its interim Budget last week. Following the and legal experts said. ABHIJIT LELE reports Motors, said the impairment at JLR cut, the first in 18 months, would help the company reduce OPED PAGE 8 the policy repo rate stands depreciation and amortisation costs by at 6.25 per cent, and the Limitofcollateral-free almost £300 million in a year and BANKER’S TRUST: stance is now changed to NewRBI governor farmloansraised reduce the break-even point. This is a cheerleader “neutral” from “calibrated not the first time Tata Motors has taken forgrowth, tightening” earlier. To boost liquidity in the impairment on its assets. In 2000-01, writes Tamal The six-member mone- farming sector, particularly the company took an impairment Bandyopadhyay tary policy committee, head- among small and marginal of ~8,894.8 crore. 2 > ed by newly appointed RBI farmers, the RBI on Thursday EDIT PAGE 9 Governor Shaktikanta Das, announced increasing the Arealignment voted four against two in limit on collateral-free COMPANIES P2 PAGE 13 favour of a cut. agriculture loans to ~1.6 lakh from ~1 lakh. Jio backs govtin tracing RBI relaxes RBI Deputy Governor SANJEEB MUKHERJEE & SOMESH JHA report norms forFPI Viral Acharya advocated a origin of messages investment pause, but perennial hawk Backing the government effort to contain RBI Executive Director Riskweightseasedfor spread of fake news, Reliance Jio has said it Michael Patra voted for a cut. RBI Governor Shaktikanta Das (left), who chaired his first MPC meeting, and Deputy Governor Viral Acharya bankloansto NBFCs supports tracing the origin of messages, even External member Chetan Ghate was the other during a press conference in Mumbai on Thursday PHOTO: KAMLESH PEDNEKAR if it means breaking encryption. Responding member who proposed a pause. The stance change The RBI said banks could assign risk weights to to a consultation paper , it has told MeitY that decision, however, was unanimous. Most econo- “The RBI’s decision will give a the government must take all steps to prevent mists had expected a pause in rates, citing steep and RATE CUT FAILS TO LIFT MARKETS exposures they have to misuse of technologies and platforms to sticky core inflation, even as the headline numbers boostto the economy, lead to NBFCs depending on ratings spread fake news. NEHA ALAWADHI reports recorded a benign 2.2 per cent in December. Howsectoral indices Top gaining rate-sensitive given to them by accredited affordable credit for credit rating agencies. The RBI The RBI governor, however, said inflation would fared One-day change (%) One-day change (%) small businesses, stocks also decided to harmonise categories of still be contained at 4 per cent or below over the BSEAuto 1.77 NBFCs and bring asset finance COMPANIES P2 next one year, which has “opened up space for pol- homebuyers, etc, Bajaj Electricals 9.4 and furtherboost BSE Realty -0.02 companies, infrastructure finance firms Ashutosh Raghuvanshi icy action”. Srei Infra 8.1 and infrastructure debt funds under one The inflation outlook was revised slightly to 2.8 employment BSE Bankex 0.04 Manappuram Finance 7.4 category. SUBRATA PANDA reports to head Fortis Healthcare per cent for the fourth quarter of 2018-19, 3.2-3.4 per opportunities” BSE Consumer Durables 0.46 cent for the first half of 2019-20 and 3.9 per cent for Ashok Leyland 6.2 More on How govt uses dividend Ashutosh the December quarter of 2019-20. PIYUSH GOYAL, BSE Finance 0.14 ApolloTyres 4.3 Page 4 is its decision: Das Raghuvanshi, Turn to Page 19 > Unionfinanceminister SENSEX -0.01 former vice-chairman, managing director and group chief executive officer of Tata Trusts rejig likely, Devi Shetty-led Narayana Hrudayala, has been appointed CEO of Fortis Healthcare from March. Fortis said Venkat’sroleuncertain Raghuvanshi would also be designated as a key managerial functionary of the company. SHALLYSETH MOHILE Mumbai, 7 February ECONOMY&PUBLIC AFFAIRS P6 Most crorepati taxpayers Tata Trusts, a cluster of charitable organisations controlling 66 per cent salaried individuals: CBDT of Tata Sons, the holding company of Only 150,000 income-tax filers have declared the group, is facing a major rejig. This earnings of more than ~1 crore in the current follows the recent withdrawal of assessment year, a majority of them being income-tax exemption for Sir Dorabji salaried individuals and not companies, said Tata Trust, one of the oldest and Sushil Chandra, chairman of the Central biggest philanthropic organisations in Board of Direct Taxes (CBDT), on Thursday. the country, due to alleged violation of certain conditions. R Venkataramanan is managing The violation is linked to the com- trustee of the Sir Dorabji Tata Trust pensation paid to the Trust’s Managing > and is responsible for management RESULTS RECKONER Trustee R Venkataramanan, also known and oversight of all the Tata Trusts as Venkat, putting a question mark on Quarter ended Dec 31, 2018; common sample his future role in the organisation. Responsible for management and of 1,017 companies (results available of 1,195) Tata Trusts, chaired by Ratan Tata, is oversight of all the Tata Trusts, Venkat, SALES expected to take up the matter related to who started off as an executive assis- the income-tax department order in a tant to Ratan Tata, has risen through Dec 31, ’17 11.6% 11.43 trillion board meeting next week, it is learnt. the ranks. Dec 31, ’18 20.5% 13.77 trilloin Venkat may even have to step down as In recent months, Venkat, who was NET PROFIT managing trustee to settle the issue, under CBI investigation for a case sources in the know said. He could pos- linked to AirAsia, a joint venture air- Dec 31, ’17 13.1% 100,247 crore sibly be given another role in the group, line with the Tatas where he was a direc- Dec 31, ’18 -11.6% 88,668 crore one of the sources said. tor, is learnt to have faced stiff opposi- Companies which have reported zero sales are excluded Tata Trusts, when contacted, tion within the organisation. Data compiled by BS Research BureauSource: Capitaline declined to comment. Turn to Page 19 > Most unemployment surveys are skewed, PM tells House ARCHIS MOHAN In his reply to the motion of thanks to disbanded since it had achieved its goal of New Delhi, 7 February the President’s address, Modi contrasted attaining independence from the British. 55 years of “self-serving” Congress rule at Modi said his government had pro- In what is likely to be his last speech in the the Centre versus the achievements of vided a clean government and expressed Lok Sabha’s current term, Prime Minister his government’s 55 months in the “serv- confidence that the people of the Narendra Modi on Thursday responded to ice of the people”. Alluding to the grand country would again repose their faith in the recent criticism his government has alliance of the Opposition parties, his leadership. faced for its purported failure to create jobs. Modi said the people of the country did Earlier, Kharge cited reports of a not want a mahamilawat (greatly National Sample Survey Organisation adulterated) government. (NSSO) survey (which the government The PM, referring to Congress leader later termed a draft report) that said the Mallikarjun Kharge’s speech, said for unemployment rate was 6.1 per cent in many BC stood for ‘before Congress’ and 2017-18, the highest in 45 years, to attack AD for ‘after dynasty’. He said his efforts the government.