Sensex gains 447 pts, ends at 45,080 as RBI revises FY21 GDP growth outlook

All that happened in the markets today

4:18 PM

MARKET COMMENT :: Ajit Mishra, VP - Research, Religare Broking

Markets managed to post decent gains on Friday amid volatility. All eyes were on the RBI policy meeting outcome and the dovish commentary from the RBI and improved growth outlook lifted sentiments. Consequently, the Nifty index ended higher by 1 per cent at 13,259 levels. The broader markets, too, ended with healthy gains of 0.4 per cent and 0.5 per cent, respectively. Amongst the sectors, all the indices ended with gains wherein Banking, Telecom, and Consumer Durables were top performers.

 

With all the major events behind us, we feel global cues would dictate the market trend ahead. Besides, news related to Covid vaccines will also be in focus. Mostly rate-sensitive stocks ended on strong footing and we may see follow-up buying next week. Having said that, traders should not get carried away with the prevailing buoyancy and stick to quality names as we can’t ignore the possibility of an intermediate corrective phase.

3:43 PM

All sectoral indices on the NSE end in the green

3:42 PM

MARKET AT CLOSE | Gainers and losers on the S&P BSE Sensex

3:36 PM

CLOSING BELL

The S&P BSE Sensex gained 447 points, or 1 per cent to 45,080 levels while the NSE's Nifty ended at 13,259, up 125 points, or 0.95 per cent.

3:27 PM

MARKET CHECK

3:19 PM

BUZZING STOCK | Indostar Capital Finance jumps 18%

3:07 PM

Nifty Bank index surpasses 30,000-mark in intra-day trade

3:04 PM

IPO ALERT :: Burger King India IPO subscribed nearly 86x till 2:45 pm on Day 3

2:59 PM

MARKET COMMENT :: Anagha Deodhar – Economist, ICICI Securities on RBI Policy

Today’s monetary policy review was largely a non-event. In line with our expectation, the MPC kept rates unchanged and vowed to keep the stance accommodative at least during the current financial year and into the next financial year. It noted that inflation is likely to remain elevated despite some possible softening during winter months. Accordingly, it upped its inflation forecast to 6.8% in Q3 and 5.8% in Q4FY21. Given the positive growth impulses, the committee also upped its growth forecast to -7.5% during FY21 from -9.5% in the Oct review. Given the expected inflation and growth trajectory, we believe the committee may stay put on rates through 2021

2:53 PM

BSE Healthcare index hits new high; Sun Pharma, Laurus Labs gain up to 5%

At 02:16 pm, the S&P BSE Healthcare index was up 0.82 per cent at 20,958 points, as compared to a 0.52-per cent rise in the S&P BSE Sensex. The healthcare index hit a fresh record high of 20,991 in the intra-day trade, surpassing its previous high of 20,689 touched on September 18, 2020. READ MORE

2:44 PM

BUZZING STOCK:: IRCTC surges 14%

2:36 PM

You cannot put lakhs in difficulty for hours: RBI governor on HDFC Bank

“You see, we cannot put hundreds of thousands of customers who are using digital banking into any kind of difficulty for hours together, and especially when we are ourselves giving so much of emphasis on our digital banking, it is important that the public confidence in digital banking as today are maintained," Das said, referring to the central bank's order Thursday. READ MORE

2:28 PM

RBI eases banking and document handling procedures for exporters

Explaining the move, exporters body FIEO director general and CEO Ajay Sahai said during Covid times, many exporters have directly shipped documents to the buyers. Status holder exporters are allowed to send documents directly to buyers but others are allowed only in the case of advance payments because RBI feels that small exporters are not equipped to handle documents and should route them through banks. READ MORE

2:21 PM

Sudarshan Chemicals extends gain as Fidelity Pacific Fund buys stake

Shares of Sudarshan Chemicals gained 5 per cent higher to Rs 512 on the National Stock Exchange (NSE) in intra-day trade on Friday, thereby rising 8 per cent in the past two trading days after Fidelity Pacific Fund bought nearly one per cent stake in the company via open market. On Thursday, December 3, Fidelity Pacific Fund has bought 568,924 equity shares, representing 0.82 per cent, at Rs 463 per share on the NSE, the bulk deal data shows. READ MORE

2:09 PM

MARKET COMMENT :: Dhiraj Relli, MD &CEO, HDFC Securities on RBI Policy

The outcome of the MPC meet on Dec 04 was largely on expected lines including the status quo on rates. The Committee's assurance to continue with the accommodative stance of monetary policy as long as necessary – for the current and next year - is welcome. The MPC feels that inflation is likely to remain elevated, with some relief in the winter months from prices of perishables and bumper kharif arrivals and has raised inflation projections for H2FY21 and H1FY22. The fact that as per the RBI, CPI may not fall materially even in H1FY22 is a bit worrying.

 

The Governor did not mention about asset quality issues or their trends. In the passing he mentioned that debt servicing capacities of corporates has risen in Q2FY21 meaning that the RBI does not perceive any deterioration in asset quality from the last policy review.

 

The real GDP growth projections have been upped. While the Q4 growth projection is below expectations, the H1FY22 projections bring in a sense of relief.

 

No measures have been announced to mop up the excess liquidity in the Banking system which has arisen because of high inflation and Forex sterilization. On the other hand, the RBI has assured provision of adequate liquidity to deserving segments. The real interest rate on the short end of the curve will remain severely in the negative for some time penalizing the savers. One hopes that this does not affect the savings rate materially.

 

All in all a welcome policy announcement with RBI maintaining the liquidity rope and hinting/hoping that asset quality stress seems under control.   It seems that rates may remain on hold atleast till Mid March 2021.

2:09 PM

Recovery from intra-day lows in today's session

COMPANY	DAY'S LOW(RS)	DAY'S HIGH(RS)	LATEST(RS)	RISE(%)
INDOSTAR CAPITAL	295.10	355.00	349.00	18.26
I R C T C	1383.85	1596.00	1555.10	12.37
ADANI POWER	56.20	64.00	61.30	9.07
JTEKT INDIA	80.10	87.85	86.55	8.05

2:01 PM

Top gainers on the BSE at this hour

1:52 PM

Stocks that hit 52-week high on BSE today

COMPANY	PRICE(rs)	52 WK HIGH	CHG(%)
ADANI PORTS	447.65	448.65	2.73
ADANI TRANSMISSI	433.55	444.60	1.36
APL APOLLO TUBES	3567.00	3580.00	0.36
ASIAN PAINTS	2409.75	2426.80	-0.05
BAJAJ ELECTRICAL	600.90	605.00	1.16

1:50 PM

BROKERAGE VIEW | ICICI Securities on Mindtree

RATING: BUY | TARGET PRICE: Rs 1,680 

Healthy order book, higher pipeline, strategy to drive large deals, hire tier 1 leaders to scale growth and expertise in digital technology bode well for long term growth. This, coupled with ability to sustain healthy margins, prompt us to remain positive on the stock. Hence, we maintain our BUY rating and target price of Rs 1,680/share (22x FY23E EPS).

1:42 PM

Indian aviation industry to report a net loss of Rs 21,000 cr in FY21: Icra

The Indian aviation industry is expected to report a net loss of Rs 21,000 crore in the current financial year (FY21) against a net loss of Rs 12,700 crore in FY20 due to lower revenues and high fixed costs, according to ICRA. The industry's debt level will increase to Rs 50,000 crore (excluding lease liabilities) over FY 2021-22 and the industry will require an additional funding of Rs 35,000 crore to 37,000 crore over FY21 to 23. READ MORE

1:39 PM

RBI strengthens grievance redress framework of banks for better service

The Reserve Bank of India (RBI) has decided to put in place a comprehensive framework to strengthen and improve the efficacy of the internal grievance redress mechanism of the banks and to provide better customer service. READ MORE

1:29 PM

FMCG stocks in focus

1:24 PM

Sensex can hit 51,000 levels in six months, technical charts suggest

Markets continued its record-breaking streak on Friday as the benchmark indices, S&P BSE Sensex and NSE's Nifty, scaled fresh lifetime highs during the day after the Reserve Bank of India (RBI) decided to keep the repo rate unchanged at 4 per cent and maintained an accommodative policy stance. READ MORE

1:17 PM

MARKET COMMENT :: Jyoti Roy - DVP- Equity Strategist, Angel Broking

The RBI, in its bi monthly MPC meeting, left the key repo and reverse repo rates unchanged at 4.0% and 3.35%, respectively. The RBI has also maintained its accommodative stance and has decided to look through higher inflation.

The RBI has also upgraded their GDP growth estimates for FY21 to -7.5% from earlier -9.5% given strong pick up in economic growth over the last few months.

Though inflation is expected to remain somewhat elevated over the next few months, the RBI has decided to look through it and rates are likely to remain at current levels for the foreseeable future. While further rate cuts may be ruled out, given elevated inflation levels, the RBI is unlikely to raise rates in the foreseeable future  which will provide comfort to the markets.

The spreads between the overnight rate and the 10 year rates remain high at ~180-200 bps as against a normal spread of ~75 bps due to concerns over fiscal deficit.

We believe, though there are unlikely to be any rate cuts in the near future, full transmission of 250bps rate cuts by the RBI so far are yet to happen which can lead to some further easing in lending rates as and when concerns over the fiscal deficit recedes. 

1:11 PM

Top losers on the BSE at this hour

12:59 PM

NEWS ALERT :: Govt has invited state govt comments on fixing Covid-19 vaccine prices, says PM Modi

12:58 PM

NEWS ALERT :: Planning to strengthen cold-chain infra for Covid vaccine, says PM Modi after all-party meeting

12:57 PM

NEWS ALERT :: Healthcare workers, senior-citizens to get vaccinated first, says PM Modi

12:57 PM

NEWS ALERT :: Govt working on drawing roadmap of vaccination programme, says PM Modi

12:51 PM

Deepak Jasani :: High inflation amid muted GDP forecast could be a party pooper for markets

Amid the expected policy outcome, the RBI has asked commercial banks to refrain from paying out dividends to shareholders for FY20. The decision makes sense as the outlook with respect to non-performing assets (NPAs) remains uncertain. In this situation, it is better to conserve banks’ capital.Therefore, shareholders won’t mind foregoing their dividends as long as the prices of the shares they hold remain largely intact. READ MORE