MARKET WRAP: Sensex ends 434 pts lower as RBI cuts GDP forecast; banks slip

All that happened in markets today.

3:47 PM

MARKET COMMENT :: Motilal Oswal, MD, Motilal Oswal Financial Services

RBI cut policy repo rates by 25 bps to 5.15%. The issue is, however, the transmission of these rates in the system. It is a dichotomy that the one who needs money does not get it, and the one who is offered does not need it!

 

Equity markets are  cautious about the earnings season, which at this juncture looks less enthusiastic. There is a possibility that equity markets will trade cautiously and range-bound. In medium-to-long term. That said, there are good investment opportunities available.

3:42 PM

MARKET COMMENT :: Vinod Nair, head of research at Geojit Financial Services

Despite RBIs and Govt’s synchronized effort to offset a slowdown in the economy, investors have taken a pessimistic view due to continued downward revision in GDP estimate and new stress in the banking system. The Govt’s measures do have the potential to enhance consumption and spur investment but lag in transmission of cumulative rate cuts is adding a layer of complexity in the recovery

3:41 PM

Here's how Nifty Bank did today

3:40 PM

Nifty snapshot

3:39 PM

HDFC Bank, ICICI Bank contribute most to Sensex's fall today

(Image source: BSE)

3:38 PM

Sensex slides as financials drag

Banks pull index down; IT stocks stem fall

3:35 PM

CLOSING BELL

The S&P BSE Sensex slipped 434 points or 1.14 per cent to end at 37,673.31, while NSE's Nifty50 breached the crucial 11,200 level to close at 11,174.75, down 139 points or 1.23 per cent.

3:13 PM

NEWS ALERT | Fitch affirms Canara Bank's viability rating at BB- & PNB's At B

3:12 PM

BUZZING STOCK | Titan Co slumps around 4%

3:11 PM

Market check

2:57 PM

Q2 earnings: Top IT services companies likely to report steady growth

Top IT services companies are likely to report steady growth in earnings during the second quarter of the financial year though revenue increase on year-on-year is likely to take a hit owing to uncertainties in the macro environment. Though deal closures are likely to be affected compared to previous quarters, Infosys and HCL Technologies are expected to lead in revenue growth following the ramping up of some of their major outsourcing contracts. READ MORE

2:45 PM

RUPEE CHECK

(Source: Bloomberg)

2:42 PM

NEWS ALERT | Govt has also taken note of the higher inflation projection, which is within the RBI's median band of 3-4 per cent: Fin Min

2:41 PM

NEWS ALERT | Govt has taken note of the RBI's revised growth projection for GDP: Fin Min

Alert: RBI revised the FY20 GDP to 6.1% from 6.9% earlier

2:40 PM

NEWS ALERT | The RBI's measure to cut repo rate from 5.4% to 5.15% will complement govt's recent measures to accelerate growth: Fin Min

Union Finance Minister Nirmala Sitharaman

2:32 PM

COMMENT ON RBI POLICY :: Sujan Hajra, Chief Economist and Executive Director, Anand Rathi Shares & Stock Brokers

Despite the 25 bps rate cut today being at the lower bound of expectations, RBI remains concerned on growth and guided for continued accommodative monetary policy stance. While RBI continues to expect growth revival in the second half of FY20, growth rates have been reduced for both FY20 and Q1FY21. In line with these, RBI maintains an expansionary stance on the liquidity side also. We now expect that rather than 5%, the repo rate in this cycle would bottom out at 4.5%. RBI?s stance coupled with recent government measures bode well for the equity market. We also feel that the likely deeper policy rate cut coupled with focus of the RBI on transmission of policy rate cut in the credit market would result in bond yields softening more than earlier expected.

2:28 PM

NEWS ALERT | Sources say lenders to meet on October 11 to discuss resolution of Altico Capital: sources to CNBC TV18

2:27 PM

NEWS ALERT | Altico Cap seeks standstill period after signing ICA: sources to CNBC TV18

-- Altico has Rs 1,100-1,200 cr liabilities due in a month

 

-- 4-5 players have shown interest in buying stake or portfolios of Altico

 

-- PE players Cerberus Cap, Apollo Global, Edelweiss Spl Opportunities Fund, SSG Capital, Kotak Realty Fund in talks with lenders for potential deal

 

-- YES Bank, HDFC Bank, SBI, IFC, Bank of Baroda among key lenders to Altico Cap

 

--UTI MF, Reliance MF, Hero Fincorp key MFs with exposure to Altico

 

Alert: Altico Cap has liabilities of over Rs 4,300 cr including term loans & NCD dues

2:16 PM

Aavas Financiers hits new high after RBI hikes lending limit for NBFC-MFIs

In the past two weeks, the stock has rallied 13 per cent, as compared to a 0.38 per cent decline in the benchmark S&P BSE Sensex. On September 16, 2019, Aavas had received an investment of Rs 345 crore from IFC, a member of the World Bank Group, through issuance of non-convertible debentures (NCDs). The company said it will use the proceeds to grow its affordable housing finance program in the rural and semi-urban areas of Rajasthan, and neighboring areas. READ MORE  

2:11 PM

NEWS ALERT | Cabinet approves new process for strategic divestment: sources to CNBC TV18

-- Dipam to be nodal agency for divestments

-- Tweaks in process to enable faster approvals, roadshows

-- Shareholder consumltation on stake sale possible in pre-EoI stage 

Alert: Dipam is Department of Investment and Public Asset Management

2:09 PM

ALERT | Nifty Bank slips over 600 pts, Nifty Private bank index falls over 300 pts after RBI policy review

1:59 PM

MARKET CHECK | Bank stocks slide

1:48 PM

Market check | Nifty breaches 11,200

1:45 PM

Market check | Sensex declines nearly 400 pts

1:39 PM

NEWS ALERT | Effective date for co's merger with Bandhan Bank fixed as October 17, 2019: Gruh Finance via BSE filing

-- It is also fixed as record date for NCD holders of the Co

1:33 PM

Market check

1:25 PM

From GDP growth revision to NEFT availability: Key highlights of RBI Policy

Here are the key highlights from the October MPC meeting

 

GDP outlook revised: Highlighting the slowdown in the economy, the MPC cut fiscal year 2019-20 (FY20) GDP forecast to 6.1 per cent from 6.9 per cent. This came in as a surprise for most economists.

 

The RBI revised the real GDP to 5.3 per cent in Q2FY20 and in the range of 6.6-7.2 per cent for H2FY20. The central bank, also, negatively revised the GDP growth for Q1FY21 to 7.2 per cent. READ MORE

1:15 PM

Top 5 gainers on the BSE at present

1:14 PM

Top 5 losers on the BSE at present

1:12 PM

MARKET CHECK | Sensex slips nearly 200 pts