Sensex ends lower, Nifty below 10,500 as RBI keeps repo rate unchanged

All that happened in the markets today

3:43 PM

Motilal Oswal, Chairman & MD, MOFSL on RBI Monetary policy

 

RBI has two challenges to tackle with, one is the transmission of lower interest rates in the economy through banking system so that growth can be incubated at this juncture and second is to protect economy from global interest rates tightening started by USA.

 

The second challenge is more difficult than the first one as transmission of lower rates can happen with the improvement of asset quality of the banking system. The international challenge is more dynamic and needs monitoring.

 

Markets were expecting no change in the policy stance and will be considered non event, in the commentary RBI said, they wants to protect the early signs of recovery and keep economy conducive for the growth. This is a positive stance and goes well with broad market sentiments. We think these dips should be used to further build the position in the equity as the "earnings revival" is around the corner.

3:39 PM

Nifty Bank 0.5% post RBI policy

3:35 PM

Sectoral Trend

3:34 PM

Sensex losers and gainers

3:33 PM

Markets at Close

 

Benchmark indices were trading flat after Reserve Bank kept the key policy rate unchanged at 6% for the third consecutive time on Wednesday in view of firming inflation. Reverse Repo rate was also maintained at 5.75%

 

The S&P BSE Sensex ended at 34,082, down 113 points while the broader Nifty50 index settled at 10,476, down 21 points.

3:24 PM

Rate sensitive shares trade mixed as RBI keeps repo rate unchanged at 6%

 

Shares of rate sensitive sectors such as banks, automobiles and real estate were trading mixed after the Monetary Policy Committee (MPC), headed by Reserve Bank of India (RBI) Governor Urjit Patel, maintained status quo on interest rates.

 

The RBI keeps repo rate unchanged at 6% and reverse repo rate at 5.75%. Repo rate is the rate at which the RBI lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation. CLICK HERE FOR FULL STORY

3:11 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,171.42	-24.52	-0.07
S&P BSE SENSEX 50	10,945.80	-2.50	-0.02
S&P BSE SENSEX Next 50	34,112.98	+238.00	+0.70
S&P BSE 100	10,864.61	+9.86	+0.09
S&P BSE Bharat 22 Index	3,705.05	+21.55	+0.59

3:10 PM

COMMENT ON RBI POLICY: Vidya Bala, Head of Mutual Fund Research, Fundsindia.com

 

Global inflationary trends and rate hikes besides RBI's hawkish stand all point to a flat to higher yield environment. For debt fund investors, shift to income accrual opportunities based on their time frame would be the strategy going forward. While ultra-short-term and short-term debt would fit investors with less than a 2 year time frame, long-term income funds and limited exposure to credit opportunity funds may fetch superior returns for those with a 3 plus-year time frame. Categories such as dynamic bond funds will likely further reduce their duration, if they have not already, to reduce any impact from an yield up move and instead focus on accrual

3:07 PM

RBI Policy

 

RBI Deputy Governor NS Vishwanathan: Harmonising, not equalising marginal cost loan rate, base rate; synced MCLR, Base Rate for easier transmission

3:05 PM

RBI Policy

 

RBI Deputy Governor Viral Acharya: RBI's goal is not to manage the price of any long-term asset market

3:04 PM

RBI Policy

 

RBI Deputy Governor Viral Acharya: RBI Continues to see surplus liquidity in the system; RBI's liquidity ops driven by monetary policy objective & market conditions; not aimed at determining asset prices

3:02 PM

RBI on liquidity conditions

 

During the two weeks beginning December 16, 2017, the Reserve Bank injected average daily net liquidity of ₹ 388 billion into the system. For December as a whole, however, the Reserve Bank absorbed ₹ 316 billion (on a net daily average basis). As the system turned into deficit again in the fourth week of January, the Reserve Bank injected average net liquidity of ₹ 145 billion. For January, on the whole, the Reserve Bank absorbed ₹ 353 billion (on a net daily average basis).

 

(Source: RBI statement)

3:00 PM

RBI Policy

 

RBI Governor Urjit Patel: Oil prices can potentially soften from current levels; Union Budget 2018 plan on MSP, custom duty weak to hit inflation; PSB's recapitalisation to aid fresh investment

3:00 PM

RBI on inflation

 

The December bi-monthly resolution projected inflation in the range of 4.3-4.7 per cent in the second half of 2017-18, including the impact of increase in HRA. In terms of actual outcomes, headline inflation averaged 4.6 per cent in Q3, driven primarily by an unusual pick-up in food prices in November

 

(Source: RBI statement)

2:59 PM

RBI Policy

 

RBI Governor Urjit Patel: Nascent recovery needs to be carefully nurtured & growth put on a stable path

2:59 PM

RBI on inflation outlook

 

CPI inflation for 2018-19 is estimated in the range of 5.1-5.6 per cent in H1, including diminishing statistical HRA impact of central government employees, and 4.5-4.6 per cent in H2, with risks tilted to the upside. The projected moderation in inflation in the second half is on account of strong favourable base effects, including unwinding of the 7th CPC’s HRA impact, and a softer food inflation forecast, given the assumption of normal monsoon and effective supply management by the Government

 

(Source: RBI statement)

2:58 PM

RBI Policy

 

RBI Governor Urjit Patel: Global demand is improving, which should strengthen domestic activity

2:57 PM

RBI Policy

 

RBI Governor Urjit Patel: Cuts GVA forecast to 6.6% from 6.7% for FY18; see GVA growth at 7.2% from FY19

2:57 PM

RBI Governor

Global demand is improving, which should strengthen domestic activity

2:57 PM

RBI Policy

 

RBI Governor Urjit Patel: Export growth to improve further on global demand; elevated commodity prices to be a drag on aggregate demand

2:56 PM

RBI Policy

 

MPC notes that the economy is on a recovery path, including early signs of a revival of investment activity

2:55 PM

RBI Policy

 

RBI Governor Urjit Patel: MPC noted several upside risks to inflation trajectory; inflation likely to move to 5.1-5.6% in H1FY19. It may moderate to 4.5-4.6% in H2FY19 with risk tilted to upside

2:55 PM

IDFC Top Buys: Large caps: Maruti Suzuki, ICICI Bank, Motherson Sumi, HPCL, Hindalco Industries, Aurobindo Pharma, Bharat Electronics and Ashok Leyland; Small and mid caps: Kajaria Ceramics, SpiceJet , Ashoka Buildcon and Greenply Industries

2:54 PM

RBI Governor

Staggered impact of HRA increases & crude oil price rise, may push up inflation

2:54 PM

MARKET COMMENT

 

With the global economy exhibiting fundamental strength after a long downturn (as exhibited in employment data, GDP growth, inflation and bond yields in the US as well as the Eurozone), we expect fundamental growth to continue undeterred. Moreover, a part of the sell off could be the fear of drying liquidity (as Fed is expected to increase rates, US 10-year yields exhibited a sharp spike at 2.84%). We believe 2018 will continue to be marked by the global recovery theme, as manufacturing, investment and trade continue to strengthen after a prolonged downturn. Thus, we expect global economic recovery to continue with stronger business activity buoyed by robust demand, unless some unlikely event breaks out (like geopolitical stress worsening)

 

(Source: IDFC report)

2:54 PM

RBI Governor

 

Upside risks to inflation from several factors

2:54 PM

RBI Policy

 

RBI Governor Urjit Patel: Export growth expected to improve on account of improving global demand

2:53 PM

RBI Policy

 

RBI Governor Urjit Patel: Seeing improving capital goods production & imports

2:52 PM

Nifty Realty extends gains post policy

2:52 PM

RBI Policy