Sensex ends 85 points lower at 37,522; RBI hikes repo rate by 25 bps

Among sectoral indices, the Nifty PSU Bank index ended 0.52% higher led by IDBI Bank and Punjab National Bank, while Nifty Auto index settled 0.76% lower due to fall in Exide and Motherson Sumi.

3:47 PM

Nifty PSU Bank index ends 0.52% higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
IDBI BANK	62.15	58.85	3.30	5.61
PUNJAB NATL.BANK	87.40	85.10	2.30	2.70
UNION BANK (I)	88.05	86.45	1.60	1.85
ORIENTAL BANK	81.95	80.70	1.25	1.55
BANK OF INDIA	95.35	94.40	0.95	1.01

3:41 PM

Nifty sectoral gainers and losers of the day

3:39 PM

BSE Sensex: ICICI Bank, Vedanta, Maruti among top losers of the day, Coal India top gainer

3:38 PM

EXPERT'S VIEW ON RBI POLICY Jayant Manglik, President, Religare Broking

The RBI hiked interest rates by 25bps along expected lines citing various risks to the inflation outlook, as it maintained the monetary policy stance at neutral. While acknowledging the recent cool-off in crude oil prices and the reduction in GST rates, which may have a disinflationary impact on inflation, the policy repo rate has been hiked in the backdrop of the uncertainty and volatility surrounding various inflation-impacting factors. These include global crude oil prices, global financial market volatility, input cost inflation, progress and distribution of monsoon, economy’s fiscal condition, the recently announced MSP hike and global trade protectionism, among others. However, by maintaining the monetary policy stance at neutral, we believe the RBI has retained some amount of flexibility as far as the rate decisions in the foreseeable future are concerned, which could be highly data dependent

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 37,522, down 85 points while the broader Nifty50 index settled at 11,346, down 10 points.

3:19 PM

WATCH VIDEO What are policy rates and how do they impact you?

Reserve Bank of India in its bi-monthly policy review takes decisions on key indicators of the economy. Know those key indicators and how do they impact you. CLICK HERE FOR MORE

3:16 PM

Nifty PSU Bank index up nearly 1%

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)	VOLUME
IDBI BANK	62.10	58.85	3.25	5.52	30342580
UNION BANK (I)	87.25	86.45	0.80	0.93	7261915
BANK OF INDIA	94.70	94.40	0.30	0.32	13400290
PUNJAB NATL.BANK	85.20	85.10	0.10	0.12	24034060

 

 

 

 

3:08 PM

RBI Monetary Policy
 

Viral Acharya: To alter CPI forecast once the MSP implementation is clear

3:07 PM

RBI Monetary Policy

 

Urjit Patel: Financial markets remain unsettled, capital flows to emerging markets have declined.

3:04 PM

7 key risks to inflation, according to RBI

1) Crude oil prices continue to be volatile and vulnerable to both upside and downside risks

2) Volatility in global financial markets continues to impart uncertainty to the inflation outlook

3) Households’ inflation expectations, as measured by the Reserve Bank’s survey, have risen significantly in the last two rounds, which could influence actual inflation outcomes in the months to come

4) Manufacturing firms polled in the Reserve Bank’s industrial outlook survey have reported hardening of input price pressures in Q2 of 2018-19

5) Though the monsoon has been normal temporally so far, its regional distribution needs to be carefully monitored in the context of key CPI components such as paddy

6) In case there is fiscal slippage at the centre and/or state levels, it could have adverse implications for market volatility, crowd out private investment and impact the outlook for inflation

7) The staggered impact of HRA revision by state governments may push headline inflation up

3:02 PM

Markets trim losses

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	37,608.73	+2.15	+0.01
S&P BSE SENSEX 50	11,888.37	+5.66	+0.05
S&P BSE SENSEX Next 50	33,732.03	+43.78	+0.13
S&P BSE 100	11,632.74	+6.89	+0.06
S&P BSE Bharat 22 Index	3,529.45	+21.97	+0.63

2:58 PM

RBI Monetary Policy

Urjit Patel: Elevated oil prices pose great risk to global growth

2:58 PM

RBI Monetary Policy

Viral Acharya: Part of MSP hike already built into inflation projections

2:56 PM

RBI Monetary Policy

Urjit Patel: Recent softening of commodity prices and GST rate cuts can moderate inflation

2:55 PM

GDP growth projection (Image source: RBI document)

2:55 PM

RBI Monetary Policy

Urjit Patel: Mounting trade tensions and tightening financial conditions impacted inflation

2:54 PM

RBI Monetary Policy

Urjit Patel: Need to monitor inflation uncertainty in the coming months

2:54 PM

Inflation projection (Image source: RBI document)

2:54 PM

RBI Monetary Policy

Urjit Patel: Monsoon progress and MSP hike and boost farm income

2:52 PM

RBI Monetary Policy

Urjit Patel: Kharif crop sowing is lower than last year

2:51 PM

RBI on GDP growth

The Reserve Bank’s IOS indicates that activity in the manufacturing sector is expected to remain robust in Q2, though there may be some moderation in pace. Rising trade tensions may, however, have an adverse impact on India’s exports. Based on an overall assessment, GDP growth projection for 2018-19 is retained, as in the June statement, at 7.4 per cent, ranging 7.5-7.6 per cent in H1 and 7.3-7.4 per cent in H2, with risks evenly balanced; GDP growth for Q1:2019-20 is projected at 7.5 per cent

2:51 PM

RBI Monetary Policy

Urjit Patel: Q1FY20 GDP growth seen at 7.5%

2:49 PM

RBI Monetary Policy

Urjit Patel: Input cost inflation has been firm in industrial sector

2:48 PM

RBI Monetary Policy

Urjit Patel: Capital flows to EMs have declined with firming US dollar

2:47 PM

RBI on inflation

Inflation is projected at 4.6 per cent in Q2, 4.8 per cent in H2 of 2018-19 and 5.0 per cent in Q1:2019-20, with risks evenly balanced (Chart 1). Excluding the HRA impact, CPI inflation is projected at 4.4 per cent in Q2, 4.7-4.8 per cent in H2 and 5.0 per cent in Q1:2019-20.

2:45 PM

RBI Monetary Policy

4 out of 5 votes were in favour of the rate hike decision. Only 1 vote i.e, Dr Ravindra H Dholakia voted against the decision. 

2:44 PM

RBI Monetary Policy

RBI sees a minor increase in CPI inflation in second half of this year

2:44 PM

Reserve Bank of India hikes key repo rate by 25 basis points to 6.50

The Reserve Bank of India increased its key repo rate by 25 basis points to 6.50 on Wednesday, in a move that is seen as an attempt to keep inflation under check. READ MORE

2:44 PM

RBI Monetary Policy

 

Risks to inflation, GDP projections seen "evenly balanced", says RBI

2:43 PM

Nifty Bank falls 0.5% post rate hike