Sensex ends 174 pts higher, Nifty above 9,900 post RBI policy outcome

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3:49 PM

Market rundown by  Anand James, Chief Market Strategist of Geojit Financial Services 

 

Domestic indices edged higher buoyed by PSUs after RBI decided to maintain status quo on repo despite a cut in the growth forecast. The expectations of GST related headwinds subsiding in the second half shall underpin sentiments and market's focus will now shift to GST council meeting on Friday expecting rate reductions.

3:48 PM

Nifty Chart for the day

Source: NSE

3:46 PM

Sectoral Trend

Source: NSE

3:44 PM

CLICK HERE for fey takeaways from RBI 'status quo' policy statement

3:44 PM

RBI's very cogent view: Do not expect a repo rate cut before 2018

 

There was no expectation of any rate cut this time but what was of interest in the Monetary Policy Statement was the analysis provided by the RBI on the state of the economy and the outlook for the year. Click here to find the 3 things that stood out at the policy

3:41 PM

Nifty Bank ended flat post the policy outcome, up 0.04%. However, Nifty PSU Bank index ended 0.6% higher led mainly by gains in Indian Bank, Syndicate Bank, Andhra Bank and SBI.

3:38 PM

Top Sensex gainers and losers

Source: BSE

3:36 PM

Broader Markets

In broader markets, BSE Midcap index underperformed benchmark indices a bit, ending 0.4% higher while the BSE Smallcap index out-performed the frontline indices, settling 0.8% higher.

3:34 PM

Markets at close

Benchmark indices ended higher with Nifty50 index comfortably above 9,900 after the Reserve Bank of India’s (RBI’s) six-member Monetary Policy Committee (MPC), headed by Governor Urjit Patel, on kept the repo rate unchanged at 6%, in a decision that was broadly in line with expectations.

The S&P BSE Sensex ended at 31,671, up 174 points while the broader Nifty50 index settled at 9,914, up 55 points

3:26 PM

CLICK HERE FOR FULL TEXT OF RBI POLICY

RBI governor Urjit Patel

3:19 PM

Rate sensitive shares trade firm post RBI policy
 

Shares of rate sensitive sectors such as financials, automobiles and real estate were trading firm after the Reserve Bank of India (RBI) kept the repo rate and reverse repo rate unchanged at 6% and 5.75%, respectively, at Wednesday's monetary policy review, keeping in line with what analysts and experts had forecast. READ MORE

3:13 PM

Market Check

Benchmark indices pared some gains but were still trading nearly 0.5% higher post RBI policy outcome. At 3:11 pm, the S&P BSE Sensex was trading at 31,628, up 130 points while the broader Nifty50 was trading at 9,908, up 49 points

3:10 PM

Quote on RBI policy review

 

Mustafa Nadeem, CEO, Epic Research: The neutral stance is very much consistent with the core objective of RBI that is to keep medium term inflation in check at 4%. Policy has of course revised its Inflation projection at 4.2-4.6% in second half of FY17-18. Inflation has changed its trajectory to upwards and seems to have tapered off the base effect in August.

 

We believe that RBI needs to keep some room for future measures and look at structural changes in Indian Economy. The headwinds from International Markets will of course be seen critically for any major rate cut ahead.

3:06 PM

Credit Policy

RBI Deputy Governor: Corporate credit risk profile is showing gradual signs of improvement

3:04 PM

Credit Policy

RBI Governor: Household consumption demand may get upward boost from housing allowance

3:01 PM

Credit Policy

RBI:  Recapitalising public sector banks adequately will ensure that credit flows to the productive sectors are not impeded and growth impulses not restrained.  

3:00 PM

Credit Policy

RBI: The MPC reiterated that it is imperative to reinvigorate  investment activity which, in turn, would revive the demand for bank credit by industry as existing capacities get utilised and the requirements of new capacity open up to be financed.

2:59 PM

Credit Policy

RBI: Real gross value added (GVA) growth slowed significantly in Q1 of 2017-18, cushioned partly by the extensive front-loading of expenditure by the central government. 

2:56 PM

Click here for full text of RBI Credit Policy

2:54 PM

Credit Policy

RBI: Surplus liquidity in the system persisted through Q2 even as the build-up in government cash balances since mid-September 2017 due to advance tax outflows reduced the size of the surplus liquidity significantly in the second half of the month. 

2:52 PM

Credit Policy

Urjit Patel: Panel moots switching to external benchmark for loan pricing; economic activity expected to recover led by services

2:50 PM

Credit Policy

Urjit Patel: Monetary Policy committee aims to maintain headline CPI inflation close to 4% on durable basis

2:48 PM

Credit Policy

Urjit Patel: GST-related teething problems may get resolved soon

2:48 PM

Credit Policy

RBI: State farm loan waivers may result in fiscal slippages; state farm loan waivers may undermine quality of public spend

2:47 PM

Credit Policy

 

MPC voted 5-1 in favour of status quo on repo rate; MPC Dholakia sought at least 25 bps cut in Repo rate

2:46 PM

RBI: Core CPI inflation so far somewhat higher than expected, expect growth to accelerate in Oct-March

2:43 PM

Nifty PSU bank index up 0.5% post RBI polisy outcome

Source: NSE

2:42 PM

Nifty Bank trades flat post RBI policy

Source: NSE

2:40 PM

RBI Policy Outcome

Recapitalising PSU banks to ensure credit flow not impeded

2:39 PM

RBI Policy Outcome

CPI inflation seen at 4.2% in Oct-Dec, 4.6% in Jan-March. RBI said that if fiscal gap widens 50 bps in FY18, CPI may rise 25 bps