Sensex falls 215 pts post RBI policy; Nifty at 16,238; RIL sheds 2%

Stock market LIVE: The RBI pegged real GDP growth forecast for FY22 at 9.5 per cent and at 17.2 per cent for FY23.

4:26 PM

Any sharp weakness from here is ruled out: Nagaraj Shetti, Technical Research Analyst, HDFC Sec

After the formation of doji type candlestick pattern on the daily chart on Thursday, Nifty slipped into minor weakness amidst a range bound action on Friday and closed the day lower by 56 points. A small negative candle was formed on the daily chart on Friday, after a doji type candlestick pattern of Thursday. Technically, this action indicate a minor reversal pattern at the new highs. But, the overall trend of the market was more of a choppy than any trended decline. Hence, any sharp weakness from here is ruled out.

 

After the technical upside breakout of the important high low range, the underlying showing consolidation or minor weakness from the highs could be a part of the uptrend continuation pattern. After such weakness near to the upside breakout point (around 16100-16200 in Nifty), the underlying more often shows sharp upside bounces from near the support as per the concept of change in polarity. Hence, the present downward correction is likely to be a buying opportunity for the near term.

 

Nifty on the weekly chart has formed a long bull candle, after a narrow range movement of previous 4-5 weeks. This is positive indication and signal a decisive upside breakout of the range movement.

 

Conclusion: The Nifty seems to have started consolidation or minor downward correction from the highs, as anticipated and this consolidation movement is likely to extend towards early part of next week. The important lower supports to be watched for next week around 16200-16100 levels and that is going to be a buy on dips opportunity. We expect sharp upside bounce from the dips by mid to later part of next week. On a decisive move above 16350, Nifty may head towards 16500 levels.

4:24 PM

TECH VIEW :: Sachin Gupta, AVP- Research at Choice Broking

Technically, the benchmark index is trading in a bullish trend with higher highs & higher lows formation. In the recent candle, it has formed a Bearish Candlestick at the top of the trend, which indicates some correction in the index. Moreover, the nifty50 index also slipped below the key level of 16300 & Upper Bollinger Band formation. A momentum indicator RSI is hovering near the overbought zone. However, MACD & Stochastic is still showing further strength with positive crossover. At present, the nifty index has resistance at 16350 levels while support comes at 16100 levels.

4:23 PM

CLOSING COMMENTS :: Vinod Nair, Head Of Research at Geojit Financial Services

Following a flat opening, the domestic market fell into the red as profit booking was witnessed in key sectors like Banking after the announcement of RBI monetary policy. Negative cues from Asian markets also added pressure on the domestic market. The policy was in line with market expectations, RBI continued to advance its super-easy monetary policy keeping its focus on economic recovery. On the side-line, the CPI forecast was increased to 5.7% from 5.1% for FY22. High global inflation has  started to impact other emerging markets’ monetary policy & currencies, some have increased rates while others are planning to increase the rates  in the future.

4:23 PM

Windlas Biotech IPO subscribed 22 times

4:22 PM

Exxaro Tiles IPO subscribed 22 times on Day 3

4:21 PM

Krsnaa Diagnostics receives 64 times bids ahead of close

4:20 PM

Devyani International subscribed over 116 times on Day 3 so far

4:19 PM

Earnings Impact :: Strides Pharma tanks 7%

4:14 PM

Listing Day Action:: Glenmark Life Sciences ends tad below issue price

Glenmark Life Sciences had made a quiet debut on the bourses with the shares of the company getting listed at Rs 751.10, a 4 per cent premium against issue price of Rs 720 per share on the BSE. On the National Stock Exchange (NSE), the stock of pharmaceuticals company opened at Rs 750 per share.

4:12 PM

Earnings Impact :: M&M slips marginally

Mahindra & Mahindra on Friday reported a consolidated net loss after tax from continuing and discontinued operations at Rs 331.74 crore in the first quarter ended June 30. The company had posted a consolidated net profit after tax from continuing and discontinued operations at Rs 54.64 crore in the first quarter last fiscal, M&M said in a regulatory filing.

 

4:09 PM

Future Group stocks tank post SC order on deal with Reliance

COMPANY	% CHANGE	PRICE (Rs)
Future Retail	9.94	52.55
Future Consumer	8.69	7.25
Future Supply Chain Solutions	9.99	74.30
Future Lifestyle Fashions	9.94	60.70
Future Enterprises	9.98	9.20

4:03 PM

BUZZING :: Vodafone Idea stages smart rebound, jumps 20%

4:00 PM

Mid & smallcap indices eke out gain, beat benchmark

3:43 PM

Nifty IT index best sectoral performer

>> Here are the top gainers & losers from the pack

3:41 PM

Sector Watch :: Realty, Media indices top sectoral losers on NSE

3:37 PM

Sensex Heatmap | Top gainers & losers at close

>> Top gainers: IndusInd Bank, Tech Mahindra, Bharti Airtel, Maruti

>> Top losers: Reliance Industries, Ultratech Cement, Tata Steel, HCL Tech

3:33 PM

CLOSING BELL :: Sensex, Nifty end lower for the first time in five days

The domestic benchmark indices snapped their 4-session winning run as they ended lower on Friday, with Reliance Industries as the biggest drag. The 30-pack Sensex closed the day at 54,278, down 215 points or 0.39%. Meanwhile, NSE Nifty settled the day 56 points or 0.35% down at 16,238.  

3:28 PM

MARKET VOICE :: Policy normalisation process has already kicked off

India’s economic activity picked up pace in June-July as some states eased pandemic containment measures. High-frequency indicators – e-way bills; toll collections; electricity generation; air traffic; railway freight traffic; port cargo; steel consumption, cement production; import of capital goods; passenger vehicle sales; two-wheeler sales – posted decent growth in June/July, reflecting adaptations to COVID related protocols and easing of containment. RBI kept its real GDP projection unchanged at 9.5% for FY22 (18.5% in Q1; 7.9% in Q2; 7.2% in Q3; and 6.6% in Q4 of 2021-22; 17.2% in Q1 of 2022-23).READ MORE

Deepak Jasani - HDFC Securities

3:04 PM

June Quarter Results :: Berger Paints

>> PAT: Rs 140 crore

>> Revenue: Rs 1,758 crore

2:47 PM

Amazon vs Future Grp: Tech charts show 20% downside in Future Group stocks

Future Retail Limited (FRETAIL)

 

Likely target: Rs 48 to 46

 

Downside potential: 7.50% to 11.50%

 

Since mid-July, the stock has made several attempts to cross 200-DMA, placed around Rs 72 mark, but failed to do so amid lack of support from volumes and technical indicators like RSI and Moving Average Convergence Divergence (MACD). Today, the stock hit 10 per cent lower circuit limit, breaching 100-DMA, suggesting bearish sentiment for coming sessions. The stock may see a downside towards Rs 48 and 46 levels, as per the daily chart. READ MORE

2:34 PM

JUNE QUARTER RESULTS :: HINDALCO

>> PAT at Rs 2,787 crore vs loss of Rs 709 crore

>> Revenue at Rs 41,358 crore versus Rs 25,283 crore

>> EBITDA at Rs 6,790 crore

2:19 PM

June Quarter Results :: Muthoot Finance slides sharply after Q1 result

>> Standalone PAT: Rs 971.1 crore

>> Standalone revenue: Rs 2,713.7 crore

2:08 PM

Bond Market Alert :: CARE Ratings expect bond yields to edge higher

The agency's interpretation of RBI Policy:

>> V3R will continue with larger amounts – though this should not be interpreted as liquidity tightening.

>> MSF and TLTRO (on tap) to continue toll December.

>> We expect 10 year bond to inch upwards now. It is at 6.24% now compared with 6.20% yesterday. Clearly the bond market expects higher yields. We look at a range of 6.2-6.3% for next two months.
 

1:57 PM

Subdued revenue spend may hit economic recovery, say economists

The Centre’s capital expenditure saw a robust double-digit growth in the first quarter of financial year 2021-22 (Q1FY22) year-on-year, but the decline in revenue expenditure may drag economic recovery, economists warn. Revenue expenditure, which plays a key role in propelling demand in the economy, saw a 2.4 per cent decline in Q1, led by a sharp reduction in rural expenditure. READ MORE

1:47 PM

Barbeque Nation Hospitality zooms 37% in 4 days after strong Q1 results

Shares of Barbeque Nation Hospitality surged 18 per cent to Rs 1,215 on the BSE in the intra-day trade on Friday, gaining 37 per cent in the the past four trading days, after the company reported a strong recovery in sales at 86 per cent in July 2021 as compared to the same month of the previous year. The stock was trading at its highest level since its market debut on April 7, 2021. With the past four days' rally, it has zoomed 143 per cent from its issue price of Rs 500 per share. READ MORE

1:31 PM

RBI POLICY VIEW :: Naveen Kulkarni, Chief Investment Officer, Axis Securities

RBI remains supportive of getting the economic growth on track, continuing with a soft interest rate regime and maintaining liquidity conditions in the system. On expected lines, the RBI kept policy rates unchanged for the seventh consecutive time and maintained its accommodative stance. The higher inflation trends over the past few months led to upward revision in CPI inflation from 5.1% to 5.7%. However, GDP forecasts for FY22 were maintained at 9.5%, indicating that the focus is clearly on growth. While there were no big bang announcements today, extension given to the earlier measures announced is positive since some sectors are yet to fully recover from the second wave of Covid-19 impact. We believe Housing Finance Companies such as HDFC, CanFin Homes and Large banks such as SBI, ICICI Bank are comfortably placed as interest rates remain in a sweet spot.

1:23 PM

NEWS ALERT :: RITES wins orders from Indian railways for Rs 4,000 crore

RITES has received Letter of Acceptance for execution of three new railway line turnkey projects from Ministry of Railways

1:18 PM

RBI POLICY VIEW :: Jyoti Roy - DVP- Equity Strategist, Angel Broking

The MPC took cognizance of the fact that the last two inflation readings for May and June at 6.3% were well above higher end of the RBIs comfort zone 6.0% Moreover the RBI has observed that inflationary pressures are exogenous and largely temporary due to supply shocks. We expect the RBI will continue to maintain their accommodative monetary policy given that the high inflation levels are transitory in nature and should start coming off in the second half of the year.

Moreover the recovery from the second Covid wave is still nascent and needs to be nurtured and we expect the RBI will continue to use all tools available including OMOs, G-SAP, TLTRO, operation twist etc. to ensure that longer term interest rates are well anchored and there is adequate credit flows to the most stressed sectors.

1:17 PM

Mid-market view | Likhita Chepa, Senior Research Analyst, CapitalVia Global Research

The Indian benchmark is trading with a small negativity after 16,300. We have observed a lackluster movement after continuous positivity in the market. RBI policy has no major impact on the market as the policy came on expected lines of the investors that there will be no change in the repo rate. There is no change in the growth rate as well despite of the inflation concerns in the market which can give boost to the confidence of the investors in the recovery of the economy. Our research suggests 16200 will be an important support level in the market for the market to remain positive in the short term.

 

12:57 PM

Adani Enterprises jumps 7%, claims title of most valuable Adani Group firm

Shares of Adani Enterprises rallied 7 per cent to Rs 1,528.30 on the BSE in intra-day trade on Friday, bouncing back 8 per cent from its day's low of Rs 1,417 on the back of heavy volumes. The stock had hit a record high of Rs 1,718.45 on June 7, 2021. Trading volumes on the counter jumped 1.6 times, with a combined 9.74 million equity shares having changed hands on the NSE and BSE till 12:19 pm. In comparison, the S&P BSE Sensex was down 0.24 per cent at 54,363 points. READ MORE