Live Markets Commentary
Sify Editors @ 3:50 PM
Sensex, Nifty reverse gains; bonds weaken after RBI leaves rates unchanged
Indian shares and bonds reversed gains and turned sharply negative on Wednesday after the monetary policy committee unexpectedly kept the key policy repo rate unchanged at 6.25 percent.
A majority of the 56 analysts polled by Reuters had expected a rate cut of at least 25 bps, though 18 had forecast policy would remain unchanged.
The benchmark 10-year bond yield rose 18 basis points to 6.35 percent after the RBI kept rates unchanged.
The Nifty was trading down 0.44 percent at 0954 GMT. It had been up 0.5 percent earlier.
Sify Editors @ 3:15 PM
RBI holds rate, lowers GVA forecast; Market trades lower
In the end, it turned out to be a big disappointment for all those who expected that the Reserve Bank of India's Monetary Policy Committee will announce a reduction in the repo rate. Expectations varied with investors and analysts looking for a 25 - 50 basis points cut or 50 - 75 basis points cut in policy rates.
The central bank has held the repo rate at 6.25%. However, it has withdrawn the decision to ask banks to deposit all excess cash deposited in banks with it. Post demonetisation, the apex bank directed banks to maintain an incremental cash reserve ratio of 100%, effective the fortnight ended November 26.
Now, the bank has stated that following enhancement in the ceiling for issue of securities under the Market Stabilistion Scheme to Rs 6000 billion, it has decided to withdraw the incremental CRR effective the fortnight beginning December 10, 2016.
The central bank expects the economy (gross value added or GVA) to grow 7.1% in financial year 2017, lowering its forecast from earlier projection for a 7.6% growth. The bank says it does not expect inflation to completely collapse in the wake of demonetisation.
RBI said that the decision of the MPC is consistent with an accommodative stance of monetary policy in consonance with the objective of achieving consumer price index inflation at 5% by the fourth quartr of this fiscal and the medium-term target of 4%, while supporting growth.
Sify Editors @ 2:45 PM
RBI holds repo rate at 6.25%; Sensex, Nifty regain some lost ground after sharp plunge
Contrary to widespread expectations, the Reserve Bank of India has left the repo rate unchanged at 6.25% this afternoon.
Giving vent to their disappointment, investors induged in some heavy selling soon after the announcement by the central bank to this effect.
Bank stocks are feeling the heat and some realty stocks are tumbling even as automobile stocks manage to find some support at lower levels.
ICICI Bank, Bank of Baroda, Canara Bank, Punjab National Bank, Bank of India, State Bank of India, Federal Bank, Axis Bank and IndusInd Bank are down 1.5% - 2.3%. HDFC Bank is down 1.3%, while Yes Bank and Kotak Bank are modestly lower.
The Sensex, which plunged to 26,164.82, falling more than 375 points from the day's high, and recorded a loss of around 228 points, is currently down 88 points or 0.33% at 26,304.71. The Nifty50 is down 16.25 points or 0.2% at 8126.90, after declining to a low of 8077.50.
Sify Editors @ 2:15 PM
Rate sensitive sectors see some buying ahead of RBI policy
With a few minutes to go for RBI's monetary policy review, shares from rate sensitive banking, automobile and realty stocks are finding some support this afternoon. With a few stocks from other sectors too firming up a bit, the market has rallied smartly after staying rangebound for close to four hours.
The Sensex is now up by around 132 points or 0.5% at 26,524.70. The Nifty50 is up 43.10 points or 0.52% at 8186.25.
Among bank stocks, Federal Bank is up 2% and Yes Bank is gaining 1.5%. Punjab National Bank, State Bank of India, ICICI Bank, Canara Bank, HDFC Bank, Bank of Baroda and Bank of India are up 0.75% - 1.2%. Kotak Bank and IndusInd Bank are up marginally, while Axis Bank is hovering around its previous closing price.
Syndicate Bank, Allahabad Bank, Oriental Bank of Commerce and Andhra Bank are gaining 1% - 2%. Union Bank of India is up nearly 1%.
Sify Editors @ 1:35 PM
Hold Federal Bank if looking for medium term gains. Fresh buying can be considered at declines.
Sify Editors @ 1:05 PM
Sensex, Nifty remain in positive territory amid cautious trades
The market, which opened on a firm note this morning, remains in positive territory around early afternoon, with investors treading cautiously ahead of the central bank's monetary policy statement, due around 2.30 p.m.
Automobile and bank stocks are finding some support ahead of RBI's policy review, even as realty stocks remain a bit sluggish. Capital goods stocks are mostly flat and select consumer discretionary stocks are trading higher.
Oil stocks are faring well. Information technology, metal, FMCG and power stocks are turing in a mixed performance.
The Sensex is up 50.55 points or 0.2% at 26,443.31. The Nifty50 of the National Stock Exchange is up 21.05 points or 0.26% at 8164.20.
Sun Pharmaceuticals Industries is down 4% on reports that the Form 483 issued by U.S. drug regulator is currently undergoing review. FDA did not detail nature of observations.
Sify Editors @ 12:35 PM
Indian shares edged up on Wednesday on hopes the central bank would cut interest rates later in the day as Prime Minister Narendra Modi's currency gamble threatens to hit nearly every aspect of the economy, from consumers to supply chains.
A majority of the nearly 60 analysts polled by Reuters predict the Reserve Bank of India will cut the repo rate by 25 basis points to 6.00 percent, the lowest since November 2010, while six expect a deeper 50 bps cut.
The announcement is due at 1430 India time (0900 GMT).
Globally, Asian shares edged up as investors covered short positions and waited for clues about the future of the European Central Bank's asset-purchase programme from a policy meeting on Thursday.
Sify Editors @ 12:05 PM
Buy Larsen & Toubro. The company's strong order book is a big positive for the stock. Keep adding at declines.
Sify Editors @ 11:45 AM
Suven Life Sciences has announced that it has secured one product patent corresponding to the new chemical entities (NCEs) for the treatment of disorders associated with neurodegenerative diseases.
With this, Suven Life Sciences has a total of twenty granted patents from India. These are exclusive intellectual property of Suven and are achieved through the internal discovery research efforts.
Suven Life Sciences is currently trading at Rs 187, up 1% from previous closing price.
Sify Editors @ 11:15 AM
Buy Crompton Greaves at declines for medium term.
Sify Editors @ 10:50 AM
Bank stocks are likely to stay a listless ahead of RBI's monetary policy. Stay tuned to the sector, and other rate sensitives such as automobile and realty as well.
A 25-basis points cut looks somewhat certain. A bigger reduction might lift these stocks up sharply and there could be immense volatility as well. Trade with stop loss triggers if looking at intra-day.
Sify Editors @ 10:25 AM
RBI's rate decision, views on the economy post demonetisation hold the key
The quantum of reduction, rather than a reduction that looks imminent, will set the trend for the market. A higher than expected cut in policy rates might well trigger some hectic buying, not just in rate sensitive stocks, but almost across the board, as the market right now is of the view that the recemt demonetisation move by the government will significantly slowdown the economy.
Realty stocks have taken a severe beating post demonetisation as the realty industry is one where tremendous amount of cash transactions is believed, and rightly so, to be taking place.
Besides any decision on interest rates, the central bank's views on demonetisation, its impact on economic growth, inflation trajectory and the way forward for the economy are eagerly awaited.
So, unlike in usual monetary policy meets, the one that is scheduled to take place this afternoon is of utmost significance not for just investors in the capital market, but for the country as a whole.
In its last meeting, the RBI's Monetary Policy Committee decided to cut the repo rate by 25 basis points to 6.25%. Even a 25-basis points cut today would result in the repo rate falling to a six-year low. But there are analysts and market watchers who expect the bank to cut rate by 50 or even 75 basis points.
Sify Editors @ 9:45 AM
Sensex is expected to rise next year but it may not scale record highs predicted a few months back, a Reuters Poll showed, mainly because Prime Minister Narendra Modi's shock currency ban is seen knocking economic growth in the next few quarters.
Indian shares fell over 6 percent a day after the Nov. 8 announcement by Modi outlawing high-value bank notes, coinciding with a shakeout in global financial markets after Donald Trump's victory in the U.S. presidential election.
"What demonetization did from an equities perspective is it added to an already lengthy list of risks, such as a impending Fed rate hike, Trump's win, corporate earnings slowdown and investor flight to higher-yielding assets," said CA Rudramurthy, managing director at Vachana Investments.
Sify Editors @ 9:15 AM
Sensex modestly higher; Rate sensitive stocks in focus ahead of RBI policy
The Indian stock market has opened on a cautious note with a positive bias, ahead of the Reserve Bank of India's monetary policy statement, due this afternoon.
A fairly steady trend in Asian markets on the back of a positive lead from Wall Street is also aiding sentiment a bit in early trades.
Interest rate sensitive bank, realty and automobile stocks are in focus. It is widely expected that the central bank will cut the repo rate by at least 25 basis points this afternoon, while unveiling its monetary policy. A few stocks from capital goods sector have edged higher.
Oil and some consumer discretionary stocks are trading higher, while information technology and metal stocks are mixed. Pharmaceuticals stocks are weak.
The BSE benchmark Sensex, which rose to 26,469.93 earlier, is now up 43.75 points or 0.16% at 26,436.51. The Nifty50 of the National Stock Exchange is up 17.25 points or 0.21% at 8160.40, after having advanced to 8170.70 earlier.
In the forex market, the rupee is trading at 67.85 against the U.S. dollar, up 5 paise from its previous close of 67.90.
|Cities||Gold (10g)||Silver (1Kg)|
|Chennai||Rs. 29358.29||Rs. 40650.00|
|Mumbai||Rs. 29796.79||Rs. 40650.00|
|Delhi||Rs. 29839.57||Rs. 40650.00|
|Kolkata||Rs. 29401.07||Rs. 40650.00|
|Kerala||Rs. 28556.15||Rs. 40650.00|