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Sensex ends 174 pts higher, Nifty above 9,900 post RBI policy outcome

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SI Reporter  |  New Delhi 

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Benchmark indices ended higher with Nifty50 index comfortably above 9,900 after the Reserve Bank of India’s (RBI’s) six-member Monetary Policy Committee (MPC), headed by Governor Urjit Patel, on kept the repo rate unchanged at 6%, in a decision that was broadly in line with expectations.

The RBI, however, reduced the gross value added (GVA) growth target for the current financial year to 6.7% from 7.3% earlier. 

In its fourth bimonthly review of the monetary policy, the RBI, however, lowered the statutory liquidity ratio – the reserve requirement that commercial banks need to maintain in the form of gold or government-approved securities before providing credit to customers – by 50 basis points to 19.5%, with effect from October 14 fortnight.

The MPC voted 5-1 in favour of the status quo on both repo rate and reverse repo rate -- the latter was kept unchanged at 5.75%.


3:49 PM

Market rundown by  Anand James, Chief Market Strategist of Geojit Financial Services 
 
Domestic indices edged higher buoyed by PSUs after RBI decided to maintain status quo on repo despite a cut in the growth forecast. The expectations of GST related headwinds subsiding in the second half shall underpin sentiments and market's focus will now shift to GST council meeting on Friday expecting rate reductions.

3:48 PM Nifty Chart for the day

Source: NSE

3:46 PM Sectoral Trend

Nifty
Source: NSE

3:44 PM CLICK HERE for fey takeaways from RBI 'status quo' policy statement

3:44 PM

RBI's very cogent view: Do not expect a repo rate cut before 2018
 
There was no expectation of any rate cut this time but what was of interest in the Monetary Policy Statement was the analysis provided by the RBI on the state of the economy and the outlook for the year. Click here to find the 3 things that stood out at the policy

3:41 PM Nifty Bank ended flat post the policy outcome, up 0.04%. However, Nifty PSU Bank index ended 0.6% higher led mainly by gains in Indian Bank, Syndicate Bank, Andhra Bank and SBI.

3:38 PM Top Sensex gainers and losers

Source: BSE

3:36 PM Broader Markets

In broader markets, BSE Midcap index underperformed benchmark indices a bit, ending 0.4% higher while the BSE Smallcap index out-performed the frontline indices, settling 0.8% higher.

3:34 PM Markets at close

Benchmark indices ended higher with Nifty50 index comfortably above 9,900 after the Reserve Bank of India’s (RBI’s) six-member Monetary Policy Committee (MPC), headed by Governor Urjit Patel, on kept the repo rate unchanged at 6%, in a decision that was broadly in line with expectations.

The S&P BSE Sensex ended at 31,671, up 174 points while the broader Nifty50 index settled at 9,914, up 55 points

3:26 PM CLICK HERE FOR FULL TEXT OF RBI POLICY

RBI governor Urjit Patel
RBI governor Urjit Patel

3:19 PM

Rate sensitive shares trade firm post RBI policy
 
Shares of rate sensitive sectors such as financials, automobiles and real estate were trading firm after the Reserve Bank of India (RBI) kept the repo rate and reverse repo rate unchanged at 6% and 5.75%, respectively, at Wednesday's monetary policy review, keeping in line with what analysts and experts had forecast. READ MORE

3:13 PM Market Check

Benchmark indices pared some gains but were still trading nearly 0.5% higher post RBI policy outcome. At 3:11 pm, the S&P BSE Sensex was trading at 31,628, up 130 points while the broader Nifty50 was trading at 9,908, up 49 points

3:10 PM

Quote on RBI policy review
 
Mustafa Nadeem, CEO, Epic Research: The neutral stance is very much consistent with the core objective of RBI that is to keep medium term inflation in check at 4%. Policy has of course revised its Inflation projection at 4.2-4.6% in second half of FY17-18. Inflation has changed its trajectory to upwards and seems to have tapered off the base effect in August.
 
We believe that RBI needs to keep some room for future measures and look at structural changes in Indian Economy. The headwinds from International Markets will of course be seen critically for any major rate cut ahead.

3:06 PM Credit Policy

RBI Deputy Governor: Corporate credit risk profile is showing gradual signs of improvement

3:04 PM Credit Policy

RBI Governor: Household consumption demand may get upward boost from housing allowance

3:01 PM Credit Policy

RBI:
 Recapitalising public sector banks adequately will ensure that credit flows to the productive sectors are not impeded and growth impulses not restrained.  

3:00 PM Credit Policy

RBI: 
The MPC reiterated that it is imperative to reinvigorate  investment activity which, in turn, would revive the demand for bank credit by industry as existing capacities get utilised and the requirements of new capacity open up to be financed.

2:59 PM Credit Policy

RBI:
Real gross value added (GVA) growth slowed significantly in Q1 of 2017-18, cushioned partly by the extensive front-loading of expenditure by the central government. 

2:56 PM Click here for full text of RBI Credit Policy

Monetary policy review: All eyes on RBI today

2:54 PM Credit Policy

RBI: 
Surplus liquidity in the system persisted through Q2 even as the build-up in government cash balances since mid-September 2017 due to advance tax outflows reduced the size of the surplus liquidity significantly in the second half of the month. 

2:52 PM Credit Policy

Urjit Patel:
Panel moots switching to external benchmark for loan pricing; economic activity expected to recover led by services

2:50 PM Credit Policy

Urjit Patel:
Monetary Policy committee aims to maintain headline CPI inflation close to 4% on durable basis

2:48 PM Credit Policy

Urjit Patel: 
GST-related teething problems may get resolved soon

2:48 PM Credit Policy

RBI: State farm loan waivers may result in fiscal slippages; state farm loan waivers may undermine quality of public spend

2:47 PM

Credit Policy
 
MPC voted 5-1 in favour of status quo on repo rate; MPC Dholakia sought at least 25 bps cut in Repo rate

2:46 PM RBI: Core CPI inflation so far somewhat higher than expected, expect growth to accelerate in Oct-March

2:43 PM Nifty PSU bank index up 0.5% post RBI polisy outcome

Nifty
Source: NSE

2:42 PM Nifty Bank trades flat post RBI policy

Nifty
Source: NSE

2:40 PM RBI Policy Outcome

Recapitalising PSU banks to ensure credit flow not impeded

2:39 PM RBI Policy Outcome

CPI inflation seen at 4.2% in Oct-Dec, 4.6% in Jan-March. RBI said that if fiscal gap widens 50 bps in FY18, CPI may rise 25 bps 

2:36 PM Market Check

The markets held on to morning gains after RBI maintained status quo. At 2:35 pm, the S&P BSE Sensex was trading at 31,643, up 146 points while the broader Nifty50 index was ruling at 9,902, up 43 points

2:35 PM RBI policy outcome

MPC maintains neutral stance; FY18 Real GVA growth aim cut to 6.7% vs 7.3% earlier

2:34 PM RBI policy outcome

SLR cut 50 bps to 19.5% from October 14 fortnight; HTM limit to be cut to 19.5% in phases

2:33 PM RBI policy outcome

RBI keeps reverse repo rate unchanegd at 5.75%

2:33 PM RBI policy outcome

Bank rate and MSF rate held at 6.25%

2:32 PM RBI Policy outcome

RBI keeps repo rate unchanged at 6%. 

2:21 PM

Monetary policy review: RBI might not cut rates today
 
The six-member Monetary Policy Committee (MPC), headed by Reserve Bank of India Governor Urjit Patel, will announce its interest rate decision today. 
 
Analysts largely expect the central bank to maintain the status quo, but add there could be a rate cut later in the financial year. There are also some who see the rate-cut cycle, which started on January 15, 2015, by bringing down the repo rate to 7.75 per cent from 8 per cent, to have reached its end. 

2:02 PM

Hatsun Agro soars 18% on SBI Mutual Fund stake buy
 
Hatsun Agro Products soared 18% to Rs 827, also its record high on the National Stock Exchange (NSE) in intra-day trade after the SBI Mutual Fund bought nearly one percentage point stake in the company through open market.
 
On Tuesday, October 3, 2017, SBI Mutual Fund had acquired 1.05 million equity shares representing 0.69% of total equity of Hatsun Agro Products at price of Rs 700 per share via bulk deal, the NSE data shows.
 
The name of the sellers could not get ascertained immediately. READ MORE

1:45 PM Nifty Bank trading flat ahead of RBI polict outcome

Source: NSE

1:33 PM

US resumes premium processing of H-1B visa categories
 
The US has resumed premium processing of H-1B work visas in all categories, months after it was suspended temporarily to handle the huge rush of applications for the work visas popular among Indian IT professionals.
 
Premium processing of H-1B visa was suspended in April to handle huge rush of new petitions. In September, the country opened up some categories of the H-1B visas for the fast processing.
 
"Premium processing is now available for all types of H- 1B petitions," US Citizenship and Immigration Services (USCIS) said yesterday. READ MORE

1:17 PM

Govt plans new schemes to add shine to gold savings
 
In line with the thinking that gold should be looked upon more as a currency than a commodity, the government and the Reserve Bank of India (RBI) are considering gold-based savings products, for which returns would be with reference to gold, but with no need to purchase the yellow metal. 
 
Decisions on gold would be in accordance with this, said people familiar with policymaking. This is being done to retain the attractiveness of gold as an investment vehicle. The move follows the finance ministry’s decision to relax the sovereign gold bond scheme. READ MORE

Gold

1:01 PM Market Check

The benchmark indices continued trading higher, holding on to their morning gains ahead ob RBI rate outcome. The Reserve Bank of India is widely expected to hold its policy repo rate at 6.00 percent, despite a sharp slowdown in economic growth, after inflation surged to a five-month high, threatening its target.

At 1:00 pm, the S&P BSE Sensex was trading at 31,683, up 186 points while the broader Nifty50 index was ruling at 9,915, up 55 points

12:43 PM

PE firms make record exits of $9.4 billion in 2017
 
Private equity (PE) investors have sold a record $9.4 billion worth of shares in the first nine months of the year, against the previous high of $6.6 billion in 2016.  
 
According to the analysis of consultancy firm EY, it comes on the back of $4.8 billion being sold on the stock markets through secondary ($3.4 billion) and primary ($1.4 billion) deals. Prem Watsa-led Fairfax Financial sold a $558 million stake in private-sector general insurance player ICICI Lombard through an initial public offering (IPO) last month. READ MORE

12:27 PM SBI slips below IPO price intra-day


12:15 PM

No relief for telcos in September quarter
 
The revenues of top telecom operators are expected to decline four-eight per cent sequentially in the September quarter (Q2), belying hopes of a recovery. Following a six-seven per cent sequential fall in two quarters (December and March), revenues had stabilised in June quarter (Q1), growing 0.5-0.7 per cent. But, factors such as higher taxes (goods and services tax or GST), seasonal weakness and increased competitive intensity are expected to put more pressure on revenues and operating profits in Q2. READ FULL ANALYSIS

11:54 AM

Buzzing stocks

Shares of fertilizers companies rallied by up to 11% on BSE in intra-day trade on the back of heavy volumes.
 
Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), Gujarat State Fertilizers & Chemicals (GSFC), Nagarjuna Fertilizers and Chemicals, Zuari Agro Chemicals, Rashtriya Chemicals & Fertilizers (RCF) and Southern Petrochemicals (SPIC) were up more than 2% on BSE. READ MORE

11:46 AM Markets check

At 11:45 am, the S&P BSE Sensex was trading at 31,665, up 168 points, while the broader Nifty50 was ruling at 9,914, up 55 points. 

11:30 AM

Kotak Institutional Equities on OMCs
 
The reduction in excise duty on diesel and gasoline by Rs 2 per liter, although passed on to end-consumers, will allay recent apprehensions on marketing margins for OMCs. However, any structural expansion in margins is certainly ruled out under the current environment; diesel margins have contracted by nearly Rs 1 per liter over the past fortnight, which needs to reverse in the near term for restoration of normalcy. We reiterate our negative stance on OMCs with relative preference for IOCL.

11:17 AM Nifty Bank trades in green ahead of RBI policy outcome 

Nifty Bank added over 300 points in the last four sessions.

nifty-bank
Source: NSE

10:58 AM

Buffett may trade stocks on result of tax plan

Warren Buffett said he’s following tax proposals in Congress and may be compelled to buy or sell shares in his investment portfolio based on the outcome of the legislation.
 
"We’ve got actions on both sides that we would take,” he said on CNBC Tuesday. Buffett added that he thinks Congress and President Donald Trump will succeed in cutting taxes. READ FULL REPORT

Warren Buffett


10:46 AM

Buzzing stock

Shares of all three state-owned oil marketing companies (OMCs) were trading higher by up to 4% on BSE in early morning trade after the government cut the excise duty on both branded and unbranded petrol and diesel by Rs 2 a litre from Wednesday.
 
Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Limited (BPCL) and Indian Oil Corporation (IOCL) have gained between 3% and 4%, extending their gains for the past 2 days on the BSE. (READ MORE)
 

10:31 AM

Mutual funds lap up perpetual bonds for higher yields
 
Mutual funds (MFs) are lapping up perpetual bonds issued by public sector banks (PSBs), with the amount invested in such bonds rising nearly eight times in the past year. The assets of debt schemes in these bonds, also known as additional tier-1 bonds, have risen to about Rs 16,000 crore from Rs 2,000 crore a year ago, estimates from Value Research suggest. READ FULL ANALYSIS HERE

10:16 AM

Broader markets outperform
 
The BSE Midcap and the BSE Smallcap indices outperformed to add 0.8% and 0.7%, respectively. 

10:15 AM Markets check

At 10:12 am, the S&P BSE Sensex was trading at 31,608, up 110 points, while the broader Nifty50 was ruling at 9,894, up 35 points. 

10:01 AM

Why RBI might not cut rates today
 
The six-member Monetary Policy Committee (MPC), headed by Reserve Bank of India Governor Urjit Patel, will announce its interest rate decision today. 
 
Analysts largely expect the central bank to maintain the status quo, but add there could be a rate cut later in the financial year. There are also some who see the rate-cut cycle, which started on January 15, 2015, by bringing down the repo rate to 7.75 per cent from 8 per cent, to have reached its end. READ FULL STORY

9:54 AM Buzzing stock 

Natco Pharma is locked in maximum upper limit of day, up 20% to Rs 954 on BSE after the company said its marketing partner Mylan has received final approval of generic Glatiramer Acetate, for both 20 mg/mL and 40 mg/mL versions. READ FULL REPORT

natco pharma

9:37 AM

Ajay Bodke, CEO & Chief Portfolio Manager PMS, Prabhudas Lilladher on fuel excise cut
 
Having exhausted nearly 98% of fiscal deficit in the first five months of FY18, around 50% cut in RBI dividend on a YoY basis, large shortfall expected in budgeted divestment proceeds & spectrum revenues and uncertainty surrounding the mop-up of indirect tax receipts in the wake of disruptions in supply chains after GST roll out, I wonder what will happen to fiscal deficit number for FY18. I think the RBI would be well advised to take note of this development and refrain from cutting rates especially with inflation expected to remain close to its targeted level till year-end. Higher than budgeted fiscal deficit would lead to additional budgeted borrowing in the second half of FY18 and exert pressure on interest rates and inflation, further pushing back any hopes of revival of private sector capex and add to the earning woes of India Inc. Negative from equity market perspective

9:32 AM

BPCL, HPCL, IOC gain after fuel excise cut
 
Shares of oil marketing companies such as BPCL, HPCL and IOC rallied up to nearly 3% after the government on Tuesday cut the excise duty on both branded and unbranded petrol and diesel by Rs 2 a litre from Wednesday. CLICK HERE FOR DETAILS

Essar-Rosneft acquisition

9:25 AM

Nifty outlook by Angel Broking 
 
Our recent cautious stance on the market remains intact and we see strong hurdle in the vicinity of 9,890-9,920. On the flipside, we would see index retesting 9,775-9,685 levels in days to come. But, if we increase the time window a bit, the possibility testing lower levels is on cards now. Traders are advised to stay light and avoid taking undue risks.
 

9:22 AM Sensex heatmap at open

heatmap
Source: BSE

9:20 AM Broader markets

Broader markets outperformed with the BSE Midcap and the BSE Smallcap indices gaining 0.3% and 0.2%, respectively. 

9:19 AM Markets at open 

At 9:18 am, the S&P BSE Sensex was trading at 31,477, down 19 points, while the broader Nifty50 was ruling at 9,855, down 3 points. 

9:14 AM

Oil prices
 
Oil prices eased on Wednesday over caution that a price rally that lasted for most of the third quarter would not extend through the last three months of the year.
 
US West Texas Intermediate (WTI) crude oil futures CLc1 were trading at $50.05 per barrel, down 37 cents, or 0.7% from their last close.
 
Brent crude futures, the international benchmark for oil prices, were down 35 cents, or 0.6 percent, at $55.65 a barrel.

9:07 AM

Pre-open trade
 
Nifty opens above 9,850 in pre-open trade. At 9:05 am, the S&P BSE Sensex was rulinh at 31,560, up 63 points, while the broader Nifty50 was trading at 9,884, up 24.85 points.

9:04 AM

Nifty outlook by HDFC Securitirs
 
We see Strong resistance in the zone of 9,921-9,950 for Nifty. Aggressive longs should only be taken above 9,950 in Nifty. Any level below 9,685 would resume downtrend in Nifty and in that case Nifty could plunge towards next support of 9,450. READ MORE

9:01 AM

Technical calls by Vishali Parekh
 
BUY VOLTAS    
 
CMP: Rs 522.95       
TARGET: Rs 563    
STOP LOSS: Rs 494
 

8:58 AM

Wall Street on Tuesday
 
The three major US stock indexes and the Russell 2000 posted record high closes for the second straight day on Tuesday, helped by gains in airlines and as carmakers rose after strong September vehicle sales. 
 
The Dow Jones Industrial Average rose 84.07 points, or 0.37 percent, to close at 22,641.67, the S&P 500 gained 5.46 points, or 0.22 per cent, to 2,534.58 and the Nasdaq Composite added 15.00 points, or 0.23 percent, to 6,531.71.
 
All three hit record closing highs, along with the Russell 2000 small-cap index , which has been lifted recently by optimism about tax law overhaul prospects.

8:47 AM

Asian markets
 
Across Asia this week, trade has been generally subdued and volumes thin with China and South Korea closed for week-long holidays and analysts cautioning against reading too much into index moves.
 
Japan's Nikkei climbed to the highest since August 2015 to 20,669.86 points, aided by strong gains in Toyota Motor and Mazda Motor Corp.
 
MSCI’s broadest index of Asia-Pacific shares outside Japan was steady following three consecutive days of gains.
 
Australian shares skidded as a drop in oil prices dented energy-related stocks. The S&P/ASX 200 index was down 33.242 points, or 0.6% to 5,668.2.

8:45 AM

Singapore Nifty
 
At 8:45 am, the SGX Nifty was trading at 9,881, up 7 points or 0.07%.

8:44 AM Good Morning!

Welcome to Business Standard's market liveblog. 

First Published: Wed, October 04 2017. 15:32 IST
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Sensex ends 174 pts higher, Nifty above 9,900 post RBI policy outcome

Catch all live market action here

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Sensex ends 174 pts higher, Nifty above 9,900 post RBI policy outcome

Catch all live market action here


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Business Standard
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