MARKET WRAP: Sensex ends 250 pts lower as RBI maintains status quo on rates

The Nifty Metal index settled 3.7 per cent lower weighed by Jindal Steel and Power Hindalco and Tata Steel. Nifty Auto index, too, slipped 2.3 per cent due to a fall in Bharat Forge and Tata Motors

3:37 PM

Sectoral trend on NSE

3:36 PM

S&P BSE Sensex top gainers and losers

3:34 PM

Market at close

 

The S&P BSE Sensex fell 250 points or 0.69 per cent to settle at 35,884 while NSE's Nifty50 index dropped 87 points to close at 10,783.

3:22 PM

Financials trade weak post RBI policy; DHFL, Reliance Capital down over 5%

Shares of financial stocks led by non-banking finance companies (NBFC), housing finance companies (HFCs) and micro-finance institutions (MFIs) have fallen by up to 7% after the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Wednesday kept the repo rate unchanged at 6.50%. The committee maintained the calibrated tightening stance.
 

Reliance Capital, Dewan Housing Finance Corporation (DHFL), IDFC, Equitas Holdings, Can Fin Home Finance, Mahindra & Mahindra (M&M) Financial Services and Ujjivan Financial Services were down in the range of 5% to 7% on the BSE. In comparison, the S&P BSE Sensex was down 0.94% or 341 points at 35,793 at 02:53 pm. READ MORE

3:07 PM

RBI Deputy Governor NS Vishwanathan: Benchmarking retail loans with external benchmark will bring more transparency

3:07 PM

RBI Deputy Governor NS Vishwanathan: Retail and MSME loans will be linked to internal benchmark rate

3:06 PM

RBI Deputy Governor Viral Acharya: Measures undertaken by RBI have eased stress in NBFC sector

3:04 PM

RBI Deputy Governor Viral Acharya says have relaxed concentration limits on banks from 15% to 10%

3:02 PM

RBI Guv: Fiscal slippage at state and central level will impact inflation outlook

2:59 PM

RBI Guv: Need more data to assess full impact of MSP hike on CPI

2:56 PM

RBI Guv: Crude oil prices impart downwards bias to inflation trajectory

2:54 PM

RBI Guv: Fall in crudes prices may boost private consumption

2:53 PM

RBI POLICY STATEMENT

The MPC also noted that even as escalating trade tensions, tightening of global financial conditions and slowing down of global demand pose some downside risks to the domestic economy, the decline in oil prices in recent weeks, if sustained, will provide tailwinds. The acceleration in investment activity also bodes well for the medium-term growth potential of the economy. The time is apposite to further strengthen domestic macroeconomic fundamentals. In this context, fiscal discipline is critical to create space for and crowd in private investment activity.

2:53 PM

RBI Guv: Retail Loans to be pegged to external benchmarks like repo rate w.e.f Apr1

2:53 PM

RBI POLICY STATEMENT

While the decision on keeping the policy rate unchanged was unanimous, Dr. Ravindra H. Dholakia voted to change the stance to neutral. The MPC reiterates its commitment to achieving the medium-term target for headline inflation of 4 per cent on a durable basis. The minutes of the MPC’s meeting will be published by December 19, 2018.

2:52 PM

RBI POLICY STATEMENT :: 7 factors that will impact inflation

 

First, inflation projections incorporate benign food prices based on the realised outcomes of food inflation in recent months. The prices of several food items are at unusually low levels and there is a risk of sudden reversal, especially of volatile perishable items. 

 

Second, available data suggest that the effect of revision in minimum support prices (MSPs) announced in July on prices has been subdued so far. However, uncertainty continues about the exact impact of MSP on inflation, going forward. 

 

Third, the medium-term outlook for crude oil prices is still uncertain due to global demand conditions, geo-political tensions and decision of OPEC which could impinge on supplies. 

 

Fourth, global financial markets continue to be volatile. 

 

Fifth, though households’ near-term inflation expectations have moderated in the latest round of the Reserve Bank’s survey, one-year ahead expectations remain elevated and unchanged. 

 

Sixth, fiscal slippages, if any, at the centre/state levels, will influence the inflation outlook, heighten market volatility and crowd out private investment. 

 

Seventh, the staggered impact of HRA revision by State Governments may push up headline inflation. While the MPC will look through the statistical impact of HRA revisions, it will be watchful of any second-round effects on inflation.

2:51 PM

RBI Guv: PMI for manufacturing and Services has remained in expansion mode in November

2:49 PM

RBI Guv: Flow bank credit has become broad-based

2:48 PM

RBI Guv: Recent retreat in energy prices has led to decline in inflation

2:45 PM

RBI POLICY IMPACT Bank, auto stocks slip (Source: NSE)

2:43 PM

NEWS ALERT The next meeting of the MPC is scheduled from February 5 to 7, 2019

2:43 PM

GDP growth projection (Source: RBI policy document)

2:42 PM

Inflation projection (Source: RBI policy document)

2:41 PM

RBI POLICY STATEMENT

Based on an overall assessment, GDP growth for 2018-19 has been projected at 7.4 per cent (7.2-7.3 per cent in H2) as in the October policy, and for H1:2019-20 at 7.5 per cent, with risks somewhat to the downside

2:40 PM

RBI POLICY STATEMENT

In the fourth bi-monthly resolution of October 2018, CPI inflation was projected at 4.0 per cent in Q2:2018-19, 3.9-4.5 per cent in H2 and 4.8 per cent in Q1:2019-20, with risks somewhat to the upside.

Excluding the HRA impact, CPI inflation was projected at 3.7 per cent in Q2:2018-19, 3.8-4.5 per cent in H2 and 4.8 per cent in Q1:2019-20. The actual inflation outcome in Q2 at 3.9 per cent was marginally lower than the projection of 4.0 per cent. However, the October inflation print at 3.3 per cent turned out to be unexpectedly low.

2:39 PM

NEWS ALERT SLR to go down by 25bps every quarter from January to March

2:37 PM

Reverse Repo rate unchanged at 6.25%

2:37 PM

MPC votes 5:1 to retain stance to 'Calibrated Tightening'

2:36 PM

Oct-March CPI inflation target projected at 2.7%-3.2%

2:35 PM

NEWS ALERT SLR cut by 25 bps; currently stands at 19.5%