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Sensex ends 205 pts lower, Nifty below 10050 post RBI policy outcome

Here's all that happened in the market today

SI Reporter  |  New Delhi 

US Sensex

The benchmark indices ended lower on Wednesday as the Reserve Bank of India kept repo rate unchanged at 6%.

The reverse repo rate under the LAF remained at 5.75%, and the marginal standing facility (MSF) rate and the bank rate at 6.25%.

RBI maintained a neutral stance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2 per cent, while supporting growth.

The Central Bank retained economic growth projection for 2017-18 at 6.7% saying that the risks are evenly balanced.

In its Fifth Bi-monthly Monetary Policy Statement, 2017- 18, RBI said that the second quarter growth was lower than the one that was projected in the October review, and the recent increase in oil prices may have a negative impact on margins of firms and Gross Value Added (GVA) growth.

In August, the RBI made its only cut in 2017, of 25 basis points, and in October, it held.

Globally, Asian stocks slipped across the board on Wednesday as various factors including weaker metals prices and monetary policy concerns in China soured investor risk sentiment. The fall in the index deepened as Asia's equity suffered losses, with Shanghai stocks falling to three-month lows and Hong Kong's Hang Seng dropping to a one-month trough amid fears over central banks tightening liquidity.

4:18 PM Nomura on RBI policy

The policy outcome was largely in line with expectations. Although there could be some downside risk to the RBI’s FY18 GVA growth projection, we believe that growth is headed higher, supported by ongoing remonetisation, resolution of GST-related issues and large bank recapitalisation. Meanwhile, risks to near-term inflation have risen on higher oil prices and rising vegetable prices, while the cobweb cycle (adverse supply response to low food prices in H1 2017) and higher growth are medium-term risks. Overall, we believe that both growth and inflation are headed higher, but we expect rates to be on hold through 2018 as the RBI has a sufficient real rate cushion to absorb higher inflation

4:05 PM

Market rundown by Anand James, Chief Market Strategist, Geojit Financial Services 
 
"RBI's decision to maintain status quo was widely expected in the market but weakness in global indices meant that there was little impetus to push ahead. With MPC raising inflation expectations while retaining growth estimates for FY 17-18, markets would now keep an eye on budget cues for further direction."
 

3:46 PM Nifty Fin services index also slipped over 1%

Source: NSE

3:44 PM Nifty Bank index down pver 1% post RBI policy outcome

Source: NSE

3:42 PM Sectoral trend

Source: NSE

3:40 PM Top Sensex gainers and losers

Source: BSE

3:38 PM Broader Markets

The BSE Midcap index underperformed the benchmark indices down 0.9% for the day while the BSE smallcap index ended 0.7% lower.

3:37 PM Markets at Close

The S&P BSE Sensex ended the day at 32,597, down 205 points while the broader Nifty50 index settled at 10,044, down 74 points

3:16 PM

Upasna Bhardwaj, senior economist, Kotak Mahindra Bank on RBI policy
 
RBI’s policy was in line with expectations, maintaining a word of caution on the upside risks emanating from high commodity prices, global financial instability, HRA related increases, rising input costs and fiscal slippages. 
 
RBI’s 2H inflation has been revised marginally higher by 10bps to 4.3-4.7% even as they retained the GVA forecast of 6.7% as against our expectation of 6.5%. Given that MPC members are fixated with anchoring 4% inflation target and the upside risks emanating from higher oil prices, higher rural real wages, sticky core inflation and mean reversion of food prices, we find limited room for any further monetary accommodation this year

3:15 PM

RBI Policy
 
Expect GVA growth of 7-7.8% for Q3 and Q4 respectively

3:13 PM Nifty Realty also falls post RBI Policy outcome

Source: NSE

3:03 PM

Reliance Securities on the RBI Policy
 
On expected lines, the Reserve Bank of India (RBI) kept the benchmark repo rate unchanged at 6% and hiked the inflation trajectory to 4.3%-4.7% for H2FY18. With the Union Budget on the anvil and while awaiting more data on the inflation trajectory, we expect RBI to maintain its current stance at least till the current fiscal year end.
 
Apart from the local factor development at international front also indicates that further monetary policy easing will be difficult in current fiscal year.  International curd oil price has surged shapely over the last few months led by the production cuts by OPEC along with increasing political uncertainty in Saudi Arabia and other oil producing nations. 
 
We expect higher fuel price will eventually get transmitted into inflation rates as well negatively impact fiscal deficit estimates of GOI. Theses all factors will weight against monetary policy easing going forward

3:03 PM RBI Policy

Viral Acharya:
Will consider OMOs if liquidity is to be absorbed or injected on durable basis

3:01 PM RBI Policy

Viral Acharya: Banking system moving towards neutrality; expect liquidity neutrality by first half of next FY

2:59 PM RBI Governor

MPC considered upside pressure on food, living costs; also reiterated commitment to meet inflation target of 4%

2:59 PM SBI extends losses post RBI policy outcome


2:56 PM

RBI Policy
 
Governance reforms for all PSBs will also feature for all banks
 
PSU Bank recap bonds to be front-loaded for banks with better balance sheets

2:56 PM

RBI Policy
 
RBI has been working closely with Govt on PSB Bank Recap plan. The plan will be differentiated across banks

2:54 PM RBI Policy

Survey shows improvement in overall eco situation in January-March

2:51 PM Nifty Chart for the day

Source: NSE

2:50 PM

Shishir Baijal, CMD, Knight Frank India on the RBI Monetary Policy
 
The move to keep the repo rate unchanged by the Reserve Bank of India’s monetary policy committee comes as no surprise. The industry was not expecting a rate cut amid the current macro-economic scenario with inflation touching a six-month high in October and more importantly the uncertainty staring the economy in the near future. However, the want of a growth-inducing monetary policy would continue to have its imprints on the slowdown-hit real estate sector. A cut in the policy rate could have helped stimulate growth and demand particularly in the wake of the recent Moody’s India upgrade

2:47 PM RBI's decision is consistent with a neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth. The main considerations underlying the decision are set out in the statement below. -- Policy statement

2:47 PM RBI Policy

Rise in food, fuel prices may further harden expectations

2:46 PM RBI Policy

The RBI said the projection of real GVA growth for 2017-18 of the October resolution at 6.7% has been retained, with risks evenly balanced.

2:45 PM Forex check

The 10-year bond yield spiked 0.14% to 7.07 % and the rupee declined 7 paise to 64.45 a dollar 

2:44 PM

RBI Policy
 
MPC feels some recent developments are favourable to growth
 
See capital market funds get deployed for new projects

2:43 PM

BofA on Indian economy
 
‎We expect India to continue to see a shallow recovery in 2018. Growth will likely inch up to 7.2% in FY19 (and 7.6% in FY20) from 6‎.5% in FY18.

2:43 PM Nifty Auto extends losses post RBI policy outcome

Source: NSE

2:42 PM Market check

Index Current Pt. Change % Change
 
S&P BSE SENSEX 32,624.68 -177.76 -0.54
 
S&P BSE SENSEX 50 10,497.11 -62.05 -0.59
 
S&P BSE SENSEX Next 50 34,813.23 -303.40 -0.86
 
S&P BSE 100 10,524.04 -67.06 -0.63
 
S&P BSE Bharat 22 Index 3,629.97 -30.63 -0.84


(Source: BSE)

2:42 PM

RBI Policy

MPC member R Dholakia favoured 25 bps cut in Repo Rate

2:41 PM RBI Policy

MSF, Bank Rate also remains unchanged at 6.25%

2:40 PM Nifty PSU Bank down 1% as repo rate unchanged

Source: NSE

2:39 PM Top Sensex gainers and losers

Source: BSE

2:37 PM RBI Policy

FY18 Real GVA growth aim stays at 6.7% with risks evenly balanced
 
CPI seen 4.3-4.7% Oct-Mar including rent allowance hike

2:36 PM Market Check

The S&P BSE Sensex was trading at 32,696, down 105 points while the broader Nifty50 index was ruling at 10,054, down 63 points

2:35 PM RBI Policy

Monetary Policy Committee votes 5:1 to maintain status quo on Repo rate

2:33 PM Repo rate unchanged 

Benchmark indices remained under pressure as the Reserve Bank of India maintained repo rate unchanged at 6%.
 
It also retained its “neutral” stance, while cautioning about inflation, which accelerated to a seven-month high in October.

2:27 PM

Shilpa Medicare slips after USFDA issues 10 observations
 
Shilpa Medicare slipped 6% to Rs 599 on the BSE in intra-day trade after the company announced that it has received ten 483 observations from the US drug regulator in relation to SEZ formulation facilities located at Telangana.
 
“The company has received 483 Observations from the United States Food & Drug Administration (USFDA) in relation to SEZ Formulation Facilities situated at Jadcherla, Telangana (near Hyderabad),” Shilpa Medicare said in a statement. READ MORE

2:16 PM

Monetary policy meet: RBI expected to maintain status quo today
 
There is a consensus in the market that the six-member monetary policy committee won’t change the policy repo rate in their two-day meet that concludes on Wednesday. 
 
Not only rising inflation, but hardening bond yields, and tightening liquidity also reduce the scope for the central bank to go lenient on rates for now. As such, the policy repo rate is expected to stay at 6 per cent, said a 10-member BS poll of economists and bond dealers. 
 
While the policy stance would likely remain at ‘neutral’, many economists say it could be the end of rates easing cycle. READ MORE

2:00 PM Market Check at 2 pm

Index Current Pt. Change % Change
 
S&P BSE SENSEX 32,692.00 -110.44 -0.34
 
S&P BSE SENSEX 50 10,518.25 -40.91 -0.39
 
S&P BSE SENSEX Next 50 34,880.75 -235.88 -0.67
 
S&P BSE 100 10,545.09 -46.01 -0.43
 
S&P BSE Bharat 22 Index 3,637.06 -23.54 -0.64

1:45 PM Nifty PSU Bank index slips over 1% ahead of RBI policy outcome

Source: NSE

1:31 PM

Asia stocks hit 2-month low
 
Asian stocks slipped across the board on Wednesday as various factors including weaker metals prices and monetary policy concerns in China soured investor risk sentiment.
 
MSCI’s broadest index of Asia-Pacific shares outside Japan dropped to a two-month low and was last down 1.5%.
 
The fall in the index deepened as Asia's equity markets suffered losses, with Shanghai stocks falling to three-month lows and Hong Kong's Hang Seng dropping to a one-month trough amid fears over central banks tightening liquidity.
 
Japan's Nikkei was last down 2% with non-ferrous metals producers suffering large losses after copper's slide overnight to a two-month low.

1:20 PM Sectoral Trend

Source: NSE

1:03 PM

Nifty Metal index hits two-month low
 
Shares of metal companies were trading under pressure with the Nifty Metal index hitting its two-month low on the National Stock Exchange (NSE) on weak base metal prices.
 
Hindalco Industries, Hindustan Zinc and Vedanta dipped 3%, Hindustan Copper, Jindal Steel and Power, Tata Steel and National Aluminium Company (Nalco) down 2% on the NSE. READ MORE

12:44 PM

Buzzing stock

5paisa Capital was locked in upper circuit for the second straight day, up 5% at Rs 206 on the National Stock Exchange (NSE) after Nirmal Jain, the promoter of the company, bought an additional one percentage point stake in the company through an open market transaction.
 
Till 10:09 am; around 5,306 shares changed hands on the counter and there were pending buy orders for 806,680 shares on the NSE. READ FULL REPORT

12:31 PM

With 6700% return so far in 2017, this altcoin has trumped Bitcoin 
 
Bitcoin (BTC) touched another milestone on Wednesday, crossing the $12,000 mark for the first time ever. At 10:50 am Indian time (IST), BTC was ruling at $12,444 levels, acocording to data from industry website Coinmarketcap. The Cryptocurrency has rallied as much as 1193% to $12,452 so far in calendar year 2017 (CY17).
 
While Bitcoins got most attention, 2017 has been a remarkable year for other cryptocurrencies as well. Many alternative coins, aka altcoins, have outperformed Bitcoin. For instance, Dash has risen up to 6,700% so far this year, data show. READ MORE

12:15 PM

Buzzing stock 
 
Punjab Chemicals and Crop Protection surged 12% to Rs 478, also its record high on the BSE in intra-day trade, after the company announced  that its board will meet on Friday, December 8, 2017 to consider fund raising plans.
 
On November 16, the company said the board will consider the un-audited financial results for the second quarter and half year ended September 30, 2017 (Q2FY18). READ MORE

12:06 PM Markets extend decline 

The benchmark indices extended declines in late morning deals with the Sensex dipping over 150 points, while Nifty50 continued trading below 10,100. 

Index Current Pt. Change % Change
 
S&P BSE SENSEX 32,677.47 -124.97 -0.38
 
S&P BSE SENSEX 50 10,512.85 -46.31 -0.44
 
S&P BSE SENSEX Next 50 34,911.54 -205.09 -0.58
 
S&P BSE 100 10,542.07 -49.03 -0.46
 
S&P BSE Bharat 22 Index 3,635.88 -24.72 -0.68

Source: BSE

11:43 AM

RBI expected to maintain status quo today
 
There is a consensus in the market that the six-member monetary policy committee won’t change the policy repo rate in their two-day meet that concludes on Wednesday. 
 
Not only rising inflation, but hardening bond yields, and tightening liquidity also reduce the scope for the central bank to go lenient on rates for now. As such, the policy repo rate is expected to stay at 6 per cent, said a 10-member BS poll of economists and bond dealers. READ FULL REPORT

11:37 AM

Bitcoin: Too high, too fast
 
As bitcoin gets more expensive and hits new highs, it is attracting more and more users. It took three years for the bitcoin trading platform Unocoin to garner its first 100,000 customers. But in the past three months, since the cryptocurrency started rising steeply, it has added 400,000 new investors or 50 per cent of the total user base it currently has. Other platforms are experiencing similar growth. Such investors need to exercise caution when investing in this asset new and volatile asset class. CLICK HERE FOR MORE

11:14 AM Markets check

At 11:10 am, the S&P BSE Sensex was trading at 32,738, down 63 points, while the broader Nifty50 was ruling at 10,088, down 30 points. 

Index Current Pt. Change % Change
 
S&P BSE SENSEX 32,730.85 -71.59 -0.22
 
S&P BSE SENSEX 50 10,536.72 -22.44 -0.21
 
S&P BSE SENSEX Next 50 35,066.20 -50.43 -0.14
 
S&P BSE 100 10,569.79 -21.31 -0.20
 
S&P BSE Bharat 22 Index 3,643.54 -17.06 -0.47

Source: BSE

10:57 AM

Buzzing stock 
 
Lumax Auto Technologies hit a new high of Rs 662, up 8% on the BSE in early morning trade, after the company reported 13% growth in net profit at Rs 13.33 crore in September quarter. The auto ancillary company had profit of Rs 11.75 crore in year ago quarter. READ FULL REPORT

lumax

10:35 AM Future Supply Chain IPO opens today

The Rs 650-crore initial public offer (IPO) of Future Supply Chain Solutions opens for subscription today with a price band of Rs 660-664 per share. Promoters and PE investor, Griffin, will together sell 24.43% stake through the IPO, which closes on December 8. Of this, Future Enterprises will dilute up to 4.43% of equity, while Griffin Partners that held 40% in the company, will offload 20% of this stake.
 

10:18 AM Sectoral trend 

sectors
Source: NSE

9:59 AM

LIC to take it slow in equity investments
 
State-owned Life Insurance Corp of India (LIC) will likely slow stock purchases for the rest of the fiscal year after nearly doubling its equity market investments in the first half from a year earlier.
 
LIC, with assets of Rs 2,726,000 crore ($423.3 billion) as of end-September, had a target of investing Rs 50,000 crore in stocks through the year which ends in March. READ FULL REPORT

9:31 AM

Rising market boosts penny stocks
 
A rising tide is said to lift all boats and the surge in the share market has done this with lesser known stocks. The value of many penny stocks doubled over the past year. Data compiled by the BS Research Bureau show 145 of these scrips gave a return in excess of 100 per cent; a dozen gained more than 300 per cent. READ FULL REPORT

9:22 AM

Broader markets 
 
The BSE Midcap index was down 0.3%, while the BSE Smallcap index remained unchanged. 

9:21 AM Sensex heatmap at open 

heatmap
Source: BSE

9:19 AM Markets at open

At 9:18 am, the S7P BSE Sensex was trading at 32,718, down 84 points, while the broader Nifty50 was ruling at 10,079, down 38 points. 

Index Current Pt. Change % Change
 
S&P BSE SENSEX 32,733.87 -68.57 -0.21
 
S&P BSE SENSEX 50 10,530.86 -28.30 -0.27
 
S&P BSE SENSEX Next 50 34,938.27 -178.36 -0.51
 
S&P BSE 100 10,558.78 -32.32 -0.31
 
S&P BSE Bharat 22 Index 3,647.01 -13.59 -0.37

Source: BSE

9:10 AM

Technical calls by Prabhudas Lilladher
 
MADHUCON PROJECTS - BUY
 
CMP: Rs 33.50   
STOP LOSS: Rs 25  
TARGET: Rs 50 - 60 
 

9:04 AM

Technical picks by HDFC Securities
 
Buy HSIL
 
CMP: Rs 504
Stoploss: Rs 480
Target: Rs 545
 

9:03 AM

Today's picks
 
Devangshu Datta on Nifty, Bank Nifty, HDFC, Hero MotoCorp, BPCL
 

9:01 AM Wall Street on Tuesday

Wall Street fell on Tuesday as a technology rebound lost steam and Walt Disney Co (DIS.N) shares dipped, while investors assessed how a Republican U.S. tax overhaul would impact corporate earnings.
 
All three major indexes moved sharply lower late in the session. The Dow Jones Industrial Average lost 0.45% to end at 24,180.64 points, while the S&P 500 ended down 0.37% at 2,629.57. The Nasdaq Composite dropped 0.19% to 6,762.21.

8:59 AM Asian markets

Asian stocks slipped, follwoing lower closing on Wall Street. MSCI’s broadest index of Asia-Pacific shares outside Japan inched down 0.2%.
 
Australian stocks and South Korea's KOSPI were down 0.2% and 0.5%, respectively. Japan's Nikkei lost 1.5%. Hong Kong's Hang Seng and China's Shanghai Composite slipped 1% and 0.6%, respectively.

8:42 AM

Singapore Nifty
 
At 8:40 am, the SGX Nifty was trading at 10,100, down 43 points or 0.43%, indicating lower opening for the Nifty50.

8:41 AM Good Morning!

Welcome to Business Standard's market liveblog. 

First Published: Wed, December 06 2017. 15:30 IST
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Sensex ends 205 pts lower, Nifty below 10050 post RBI policy outcome

Here's all that happened in the market today

Here's all that happened in the market today
The benchmark indices ended lower on Wednesday as the Reserve Bank of India kept repo rate unchanged at 6%.

The reverse repo rate under the LAF remained at 5.75%, and the marginal standing facility (MSF) rate and the bank rate at 6.25%.

RBI maintained a neutral stance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2 per cent, while supporting growth.

The Central Bank retained economic growth projection for 2017-18 at 6.7% saying that the risks are evenly balanced.

In its Fifth Bi-monthly Monetary Policy Statement, 2017- 18, RBI said that the second quarter growth was lower than the one that was projected in the October review, and the recent increase in oil prices may have a negative impact on margins of firms and Gross Value Added (GVA) growth.

In August, the RBI made its only cut in 2017, of 25 basis points, and in October, it held.

Globally, Asian stocks slipped across the board on Wednesday as various factors including weaker metals prices and monetary policy concerns in China soured investor risk sentiment. The fall in the index deepened as Asia's equity suffered losses, with Shanghai stocks falling to three-month lows and Hong Kong's Hang Seng dropping to a one-month trough amid fears over central banks tightening liquidity.
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Business Standard
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Sensex ends 205 pts lower, Nifty below 10050 post RBI policy outcome

Here's all that happened in the market today

The benchmark indices ended lower on Wednesday as the Reserve Bank of India kept repo rate unchanged at 6%.

The reverse repo rate under the LAF remained at 5.75%, and the marginal standing facility (MSF) rate and the bank rate at 6.25%.

RBI maintained a neutral stance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2 per cent, while supporting growth.

The Central Bank retained economic growth projection for 2017-18 at 6.7% saying that the risks are evenly balanced.

In its Fifth Bi-monthly Monetary Policy Statement, 2017- 18, RBI said that the second quarter growth was lower than the one that was projected in the October review, and the recent increase in oil prices may have a negative impact on margins of firms and Gross Value Added (GVA) growth.

In August, the RBI made its only cut in 2017, of 25 basis points, and in October, it held.

Globally, Asian stocks slipped across the board on Wednesday as various factors including weaker metals prices and monetary policy concerns in China soured investor risk sentiment. The fall in the index deepened as Asia's equity suffered losses, with Shanghai stocks falling to three-month lows and Hong Kong's Hang Seng dropping to a one-month trough amid fears over central banks tightening liquidity.

image
Business Standard
177 22