Sensex dips 132 pts as RBI cuts FY22 GDP growth; Nifty ends below 15,700

That said, market participants continued to buy stocks in the broader markets after the RBI announced a special, Rs 15,000 crore-liquidity window

5:12 PM

Investment strategy :: Gaurav Dua of Sharekhan lists out trading bets from medium-term perspective

The central bank reaffirmed its commitment to support economic growth as long as necessary while ensuring inflation remain within the 2-6% target range. The moderation in real GDP estimate to 9.5% from 10.5% to factor in the impact of wave-2 of pandemic is also in line with expectations. No wonder, the bond yields have not reacted materially. The liquidity support to MSME and contact intensive sectors is a welcome step.

With quarterly results and RBI policy behind us, the focus would shift to pace of unlocking and vaccination domestically and global cues. We remain constructive on equities over the medium term and believe that cyclicals offer interesting investment opportunities from here on

Gaurav Dua is SVP, Head - Capital Market Strategy at Sharekhan by BNP Paribas

4:59 PM

TECH VIEW :: Nifty forms bullish candle for the third straight week

The Nifty50 index closed the week at 15,670 with gains of 1.5% and has formed a bullish candle on the weekly chart for the third consecutive week. Going forward, 15,600-15,500 will act as a good support and any dip near these level will be a buying opportunity. Meanwhile,15,800 zone will be an immediate hurdle zone on the higher side. Any decisive close above 15,800 zone can quickly push index towards 16,000-mark where short term traders can think of profit booking

Views by: Rohit Singre, Senior Technical Analyst at LKP Securities. 

4:44 PM

Trade set-up for next week :: PSUs in focus, global cues to guide trajectory

Nity50 index has crossed the major rising channel support and is now trading around it. Market breadth also remained positive for most of the week but BankNifty is still a point of concern given that it is still trading below its previous resistance. The index might take its own time to catch up but it can also turn out to be a classic Dow Theory divergence where one index is making a new high but the other is making a lower high. Until we don't see any significant bearish evidence, we suggest traders maintain a mildly bullish outlook. The immediate support is now placed at 15350.

The coming weeks could see a number of PSU heavyweights including SAIL, NTPC, Coal India etc. in focus as they come out with their numbers. Further, key developments on the disinvestment story could also keep the PSU stocks on radar. Investors should therefore place trades cautiously on PSUs to buffer from any unforeseen shocks owing to such announcements. Meanwhile, Indian markets could continue to mimic the movement across global commodities and equities. Nifty50 closed the week at 15,670.25, up by 1.52%.

Views by: Nirali Shah, Head of Equity Research, Samco Securities.

4:32 PM

With RBI policy behind us, what will drive the markets next week?

Markets traded volatile in a range and ended flat as participants preferred to book some profit at higher levels. The MPC’s monetary policy outcome came in line with street expectations thus failed to trigger any major reaction. Amongst the sectoral indices, a mixed trend was witnessed as Banking, Consumer Durables and FMCG ended with losses whereas Oil &Gas, Capital Goods and Auto ended with decent gains. At the same time, the action continued on the broader front and both the indices ended with decent gains. On the benchmark front, Nifty settled marginally lower to close at 15,650 levels.

 

With no major domestic event, the focus would shift to global indices for cues. Besides, as new COVID cases have seen a considerable decline, all eyes would be on state governments for further easing of the restrictions. We may see some profit-taking or consolidation in the benchmark early next week however the trend would remain positive. Traders should maintain their focus on identifying the right stocks and utilize the dips to accumulate.  

Views by: Ajit Mishra, VP - Research, Religare Broking

 

4:20 PM

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

The market had opened with mild positivity but pared the gains post announcement of RBI monetary policy. Factoring the impact of second-wave, RBI reduced the FY22 GDP forecast from 10.5% to 9.5% and trimmed the inflation forecast from 5.2% to 5.1%. As expected, RBI kept its policy rates unchanged and reiterated its accommodative stance. G-Sec buying and liquidity support to MSMEs and affected sectors will help to overcome the pandemic hit economy

4:06 PM

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

As Markets warmed up to Biden’s Tax proposal amidst encouraging payroll data, all eyes were set on the RBI Policy today morning which, as expected, held status quo and maintained its accommodative stance.

The Sensex, however, flirted around the 52K-mark even as the broader market witnessed selective buying interest in Unlock Themes with several states beginning to ease restrictions. Housing & Micro Finance entities were seen buzzing around amidst hectic activity in today's trade

4:03 PM

BSE Snapshot :: Overall market breadth supports advances

3:59 PM

Aviation stocks end mixed; SpiceJet up 2%, IndiGo down 0.4%

3:58 PM

Weekend cheer for liquor stocks!

>> Investors lap up liquor stocks on hopes of liquidity support to restaurants and hotels

3:55 PM

BUZZING :: Investors checked-into hotel stocks as RBI announces liquidity support

3:52 PM

Broader market :: BSE SmallCap index hits record high of 24,280 intra-day

3:50 PM

Broader market :: BSE MidCap index ends 0.6% higher

Index hit record high of 22,540 levels earlier today

3:47 PM

NSE Snapshot :: Top gainers on the Nifty50 index today

3:46 PM

Stocks that dragged the Sensex lower today

3:44 PM

Sectoral trends on the NSE :: Banks decline post RBI policy outcome; metals shine

3:42 PM

Sensex Heatmap

Top gainers: Bajaj Finserv, ONGC, L&T

Top losers: Nestle India, SBI, HDFC Bank

3:35 PM

CLOSING BELL

The benchmark S&P BSE Sensex tumbled 436 points from the day's high and hit a low of 51,953. It, however, trimmed losses marrginally to settle the day at 52,100 levels, down 132 points or 0.25 per cent.

 

On the NSE, the Nifty50 index dropped 64 points from the record high level of 15,734, touched earlier in the day, to close at 15,670 levels. 

 

3:27 PM

India's forex reserves may have exceeded $600 billion: RBI governor

Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said India's forex reserves may have crossed record level of USD 600 billion on the back of robust capital flows.

 

As per the RBI's data issued on May 28, the country's foreign exchange reserves rose by USD 2.865 billion to a record high of USD 592.894 billion for the week ended May 21, boosted by gold and currency assets. READ MORE

3:20 PM

50 listed companies 'missing' after raising money, exchange chases them

A number of listed companies are not to be found on their registered address. The stock exchange has also been unable to contact them through other means. These 50 companies had been suspended for violations for more than six months. The BSE had reached out to them with show cause notices in December 2020. READ MORE

3:19 PM

Stocks that hit 52-week high on BSE today in an otherwise volatile market

Company	PRICE(rs)	52 WK HIGH	CHG(%)
Adani Enterp.	1693.35	1713.55	6.93
Adani Total Gas	1642.40	1680.00	1.21
Ambuja Cements	332.30	337.20	-0.34
Bajaj Finance	5995.95	6009.00	1.60
Bajaj Finserv	12141.30	12170.00	2.71

3:14 PM

AMC rides stock roller-coaster after $587-mn share sale to cut debt load

It’s been quite a week for AMC, a company that’s become the king of meme stocks. The stock’s surge has enabled the movie-theater chain to sell equity on more than one occasion to shore up a depleted balance sheet that left AMC staring at potential bankruptcy only a few months ago in the face of the pandemic and brutal competition from streaming services. READ MORE

3:04 PM

BUZZING STOCK:: Indiabulls Housing Finance surges 10%

2:55 PM

HDFC Bank, ICICI Bank, and RIL contribute the most to Sensex's 200-point fall today

2:50 PM

MARKET UPDATE:: S&P BSE MidCap index extends gain

2:50 PM

RBI Policy Reaction :: Subodh Rai, Chief Ratings Officer & Senior Director, CRISIL Ratings

The on-tap liquidity window of Rs 15,000 crore for contact-intensive sectors is a material liquidity boost to companies operating in the hospitality, travel and tourism, and aviation ancillary services sectors, which have been hit hard by the second wave of the Covid-19 pandemic. It is timely because companies in these sectors have been reeling under a demand shock – the current quarter could see a contraction of 30-50% sequentially. They also have high leverage of more than 2.5 times, which reduces their ability to withstand such jolts to demand. This move, and the expanded ECLGS will go a long way in supporting liquidity for contact-intensive sectors.

2:40 PM

Continuing to lend a calming hand, RBI has its job cut out from here on

The RBI’s monetary policy was on expected lines – not merely with respect to the headline policy rates, but also the enablers that the Reserve Bank of India (RBI) has consistently tried to build as a response to the pandemic – that of providing adequate liquidity, managing the government security yields and push credit to segments that are starved of funds. The RBI finds itself in a bit of a challenging situation now whereby the second COVID-19 wave has worsened the growth prospects and once again truncated the recovery process that was evolving during Q3 and Q4 of FY21. READ MORE

2:39 PM

MARKET STRATEGY :: Indices volatile post policy announcement; how to trade ahead?

The June Policy had no surprises in terms of focus, which continues to be revival of sustainable growth conditions. Inflation will play second fiddle for now, till it remains within tolerance levels.

 

Any extreme views on market direction need to be avoided. Our overall portfolio allocation would reflect a neutral bias on rates. The core portfolios of most open-ended debt schemes will operate slightly below the mid points of their duration mandates. The huge steepness in the yield curve along with some select exposures to structured high grade assets will sustain and cushion overall returns in this uncertain environment.

 

We would recommend continued discipline in investor allocations, driven primarily by their holding period considerations. This will ensure that investors capture the curve steepness without getting negatively impacted by interim market volatility. Moderate duration allocations can form the core for now. Rolldown strategies across the yield curve can be considered, but with a clear understanding on required holding periods.

Views by: Amit Triphati,CIO- Fixed Income, Nippon India Mutual Fund

2:31 PM

What does RBI policy announcement mean for the bond market?

There is no doubt in our mind that the RBI wishes to see bond yields trending down. The RBI Governor’s comments during the speech that “We do expect the market to respond appropriately to this announcement of G-SAP 2.0” highlights that point, in our opinion.
 

We believe that the RBI will continue in its efforts of some sort of yield curve control until there are clear signs of revival of economic growth while seeing through recent increase in supply-side inflationary pressures. This could result in some reduction in term premiums on the long end of the sovereign yield curve and potential price appreciation in the medium-term.
 

The RBI has also noted tightening of credit spreads across the high-quality corporate bond yield curve in FYTD22. This can be attributed to sharp increase in demand for quality bonds and decline in supply due to reduction in economic activities and distribution of credit flows. We expect credit spreads to remain tight until H2FY22 when we expect economic activities to normalize.

-- Edelweiss AMC

2:28 PM

RBI policy: No explicit time frame for continuation of accommodative stance

The Committee has kept the repo rate unchanged at 4 per cent in its second policy review for FY22, in line with the primary mandate of ensuring that the CPI inflation remains within a band of 2-6 per cent, while supporting growth. It has also decided to maintain the accommodative stance, for as long as necessary to durably revive and sustain growth and mitigate the economic impact of the pandemic, while ensuring the CPI inflation remains within the target. READ MORE

Aditi Nayar, Principal economist ICRA

2:18 PM

BoI posts Q4 profit of Rs 250 cr versus Rs 3,571 cr loss a year ago

Public sector lender Bank of India (BOI) posted a net profit of Rs 250 crore in the fourth quarter ended March 2021 (Q4FY21) on a rise in other income and dip in provisions for bad loans.

 

It had posted a loss of Rs 3,571 crore in the quarter ended March 2020 (Q4FY20). For the full financial year FY21, it posted a net profit of Rs 2,160 crore, as against loss of Rs 2,957 crore in FY20. READ MORE