Sensex up 460 pts on RBI's bond yield mgt step, steady FY22 GDP growth rate

Banking and financial stocks outperformed on Wednesday with the Nifty Bank, Private Bank, and PSU Bank indices settling higher in the range of 1.5 per cent to 2 per cent.

4:41 PM

MARKET CLOSING COMMENT :: Deepak Jasani, Head of Retail Research at HDFC Securities

Indian benchmark equity indices ended higher for the second day in a row as benchmark indices saw buying interest in banking, auto and technology names post the MPC meet outcome. At close the NSE Nifty 50 gained 0.92% or 135.5 points to end at 14,819. Indian markets rose the most in the Asian region boosted by the outcome of MPC meet.

 

Nifty took resistance exactly from the anticipated level of 14880 on April 07 despite multiple attempts to breach it post 1100 Hrs and closed about 60 points lower. 14883 continues to be resistance for the Nifty while a breach of 14629-14776 could result in some more weakness. A move above 14883 could take the Nifty to 15050 soon. 

4:29 PM

TECH VIEW :: Ashis Biswas, Head of Technical Research at CapitalVia Global Research

The market witnessed a breakout above the Nifty 50 Index level of 14800. As of now, the short-term technical condition of the market shows an upward shift of the prevailing market range and it is likely to range between 14600 and 15100. the market breadth to improve further along with other momentum indicators like RSI, MACD, indicating the presence of an uptrend. The market is expected to gain momentum, which could lead to an upside projection till the 15100 level.

4:19 PM

TECH VIEW :: Rohit Singre, Senior Technical Analyst at LKP Securities

Index closed a day at 14819 with gains of nearly one percent and formed a bullish candle on the daily chart. Again 14900 acted as the strong hurdle in today’s session so until we don’t see a decisive breakout above 14900 upsides will be capped and once we see a breakout above 14900 then we may see a good short-covering move which can push the index towards the 15000-15100 zone quickly, immediate support is still placed at 14700-14600 zone

 

4:09 PM

MARKET CLOSING COMMENT :: Vinod Nair, Head of Research at Geojit Financial Services

Indian market is invigorated by RBI’s long-term dovish stance to maintain an easy money policy till the economy reverts to normalcy. A big cheer is the GSec buying program of Rs.1 lakh crore to ensure liquidity and flatten the long-term yields curve. RBI’s decision to maintain its high GDP growth forecast also helped the market to calm down its fears which had increased post the second wave infection and stringent lockdowns

3:58 PM

MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities

On a day when several states go into polling, the dovish stance of RBI cheered the street as rate sensitives looked up even as several midcap names across sectors saw keen investor interest. IPO investors too saw gains on listing despite muted expectations

3:51 PM

IPO Alert :: Macrotech Developers subscribed 25% till 3:40 PM on Day 1 of the issue

3:49 PM

Rupee Closing

Rupee ends weaker at 74.55 per US Dollar vs Tuesday's close of 73.45/$

3:47 PM

Sector of the day :: PSBs rally; UBI, Bank of India gain up to 5%

3:44 PM

Broader market :: S&P BSE SmallCap ends near record high

3:42 PM

Stocks that supported the Sensex today

3:40 PM

Sectoral trends on the NSE :: Benchmarks end nearly 1% higher on broad-based buying

3:38 PM

Sensex Heatmap at Close

3:34 PM

CLOSING BELL

The Sensex index gained 460 points, or 0.9 per cent, to end at 49,662 levels while the Nifty index closed at 14,819 levels, up 135 points. 

3:29 PM

Oil prices decline despite prospects for stronger global economic outlook

Oil prices eased on Wednesday despite prospects for stronger global economic growth as talks to revive a nuclear deal with Iran opens the possibility of an easing of sanctions on its oil exports. READ MORE

3:25 PM

BSE Smallcap index nears record high; HEG, KPIT zoom 20% each

Shares of smallcap companies were in focus on Wednesday with the S&P BSE SmallCap index up more than 1 per cent, was close to its record high level after a strong rally in chemicals, graphite electrode makers and rating agencies' shares. Shares of HEG and KPIT Technologies, for instance, soared 20 per cent each on the BSE in the intra-day trade on Wednesday. READ MORE

3:17 PM

Cabinet Briefing

> Cabinet approves production linked incentives for AC, LED lights

> Cabinet approves output-linked incentives for some solar panels

3:17 PM

IDFC First Bank in focus :: CASA deposits increase 13% QoQ

IDFC First Bank releases business update for Q4. Customer deposits rise 7% QoQ & 43% YoY. Avg CASA ratio up 557 bps QoQ & 2,251 bps YoY

3:06 PM

Top gainers on the BSE at this hour

Company	PRICE(rs)	CHG(%)
HEG	2189.70	20.00
KPIT Technologi.	207.30	20.00
Graphite India	673.30	14.63
CARE Ratings	466.70	12.66
Vinati Organics	1587.00	10.82

3:00 PM

KPIT Technologies soars 19%, hits new high on heavy volumes

Shares of KPIT Technologies, on Wednesday, zoomed 19 per cent to hit a new high of Rs 206.05 on the BSE in intra-day trade on the back of heavy volumes. The trading volumes on the counter more-than-doubled with a combined 4.94 million equity shares, representing 1.8 per cent of the company's total equity, having changed hands on the NSE and BSE, till 02:13 pm. READ MORE

2:49 PM

Mudra loan sanctions in FY21 drop 21% YoY to 2.7 trn as Covid-19 weighs

Loans sanctioned to small businesses and entrepreneurs under the Pradhan Mantri Mudra Yojana (PMMY) dropped to Rs 2.7 trillion in financial year 2020-21 as the Covid-19 pandemic weighed on business activity. Loans sanctioned under PMMY were Rs 3.4 trillion in FY20 and Rs 3.2 trillion in FY19.

 

About 42 million loans worth Rs 2.7 trillion were sanctioned under the PMMY scheme in the last financial year as on March 19, 2021, said a statement from Ministry of Finance. READ MORE

2:38 PM

Demand recovery, new launches help Sobha deliver record performance

Led by strong demand and launches, Bengaluru-based real estate developer Sobha reported its highest-ever sales in the March 2021 quarter. The company, which launched 3-million sqft projects in the quarter, reported bookings worth Rs 1,072 crore, up 54 per cent YoY. Volumes in the quarter were 48 per cent higher YoY to 1.33 million sqft.

 

The increase in realisations was on account of a higher proportion of sales in Gurugram and Kochi. READ MORE

2:27 PM

The pivot of monetary policy has shifted squarely to growth

In the midst of a rapidly changing COVID-19 backdrop in India, the monetary policy committee (MPC) kept policy rates unchanged and maintained an accommodative stance. MPC members reiterated their resolve to continue with an accommodative stance as long as necessary, to sustain growth on a durable basis and mitigate the impact of COVID-19 on the economy. With this, MPC members removed time based guidance given in the earlier policies. READ MORE

 

2:11 PM

MARKET UPDATE:: RIL, Infy, and ICICI Bank among top contributors to Sensex's rally today

2:10 PM

RBI Policy Reaction | Jimeet Modi, Founder & CEO, Samco Group

The RBI continues to maintain their accommodative stance along with a dovish outlook, which hasn’t been much of a surprise to the Street. The repo rate along with the GDP forecast of 10.5% for FY22 was inline with expectations and infact the bond market cheered with a dip in yields post the announcement. The GSec Acquisition Programme of Rs. 1 Lakh Cr for this quarter was the clincher in the entire speech, however, there was only little the MPC could do given the uncertainty on the rising number of cases and vaccination drive. While their attempts to flatten the yield curve and enable sufficient liquidity through bond purchases in the system have worked in the economy’s favour so far, it will have to be seen how prompt the RBI remains if the condition worsens given the renewed lockdowns in a few states in India. The policy lagged aggressiveness and was more balanced this time, nevertheless the efforts do seem positive for the time being.

2:00 PM

European markets check

(Source: Reuters)

1:53 PM

RBI Policy Reaction | Shubhada Rao

The second wave of COVID will increase uncertainty over India’s near-term growth prospects. This is happening at a time when global financial conditions, led by US rates, have begun to tighten, with few inflation targeting central banks in emerging markets (EMs) such as Turkey, Brazil, and Russia resorting to interest rate hikes in 2021 so far. In addition, Norway has emerged as the first developed country to explicitly signal its plan for monetary policy normalisation by the end of 2021. READ MORE

Shubhada Rao, founder, QuantEco

1:43 PM

RBI Policy Reaction | Amar Ambani of YES Sec lists stocks that may benefit from today's announcements

RBI governor expressed the need for orderly evolution of yields and will initiate 1 trillion of OMOs during Q1 FY22 to combat extreme volatility. RBI’s liquidity support will certainly help in assuaging market apprehensions given that supply of G-Sec paper will remain elevated on the back of frontloading of market borrowing. For FY22 as a whole, OMO operations are expected to be above INR 3 trillion, similar to FY21 level.

Possibility of inclusion of Indian G-secs in the global bond indices will also absorb the supply. Nevertheless, we expect 10year yields to inch higher, possibly trade in the range of 6.2-6.25% in the near term, as there are concerns over stubborn core inflation, resurgent COVID infections, renewed localized lockdowns and relatively higher sovereign yields in US.

 

Additional measures announced that are positive for smaller HFCs, NBFCs and MFIs were on-tap TLTRO scheme extended by 6 months and additional liquidity support of 500 billion to AIFIs. Key beneficiaries of these measures could be Can Fin, Repco, Home First, Shriram City and MFIs like CREDAG and Spandana

Note: Views by Amar Ambani, Senior President and Head of Research – Institutional Equities, YES Securities

1:35 PM

EXPERT TAKE | Market impact of positives from the MPC meet may be seen with a lag

Unlike the previous policy in February 2021, where the central bank gave a time-based guidance to remain accommodative till the end of fiscal 2021-22 (FY22), this time it shifted to a state-based guidance ensuring support till the economy revives on a durable basis. Perhaps the resurgence of COVID cases has something to do with this shift in guidance. READ MORE

Deepak Jasani - HDFC Securities

1:28 PM

MARKET UPDATE:: Sensex off day's high, but still up 450 pts

1:20 PM

RBI Policy Reaction | Unmesh Kulkarni, Managing Director Senior Advisor, Julius Baer India

The Monetary Policy statement of the RBI was quite in line with our expectations. RBI kept policy rates unchanged and continued its accommodative policy stance (as long as necessary) to sustain growth on a durable basis and to mitigate any adverse impact of Covid-19, while continuing with its inflation-targeting approach.

Overall, there wasn’t much surprise or novelty in the Monetary Policy statement. RBI has chosen the “wait- and-watch” approach as the economy stabilizes amidst a heightened pandemic situation. RBI continues to be accommodative and supportive (of liquidity), while remaining watchful of evolving inflationary trends and the surplus liquidity.

We continue to believe that rate cuts are behind us, unless the Covid situation really goes out of control, forcing much harsher lockdowns and loss of economic activity, which isn’t the base case currently. A strong vaccination drive, coupled with temporary region-specific lockdown measures might be the order of the day.

We expect the 10 year g-sec to trade in a range of 5.9% - 6.3% in the near-term. Yields could see some short-term relief (owing to pandemic risks to growth), but could see a fresh pickup in the second half of FY21-22 once the pandemic situation eases again and the focus is back on economic recovery.