Sensex slips 215pts amid volatility post repo rate hike; ITC, RIL weigh

The RBI today raised the repo rate to 4.9 per cent, up from 4.4 per cent. The Central Bank also raised consumer price (CPI) or retail inflation forecast for FY23 to 6.7 per cent from 5.7 per cent.

4:16 PM

Nifty tech view: Key resistance level at 16,500

Indian benchmark indices ended lower for the 4th consecutive day. Markets made a gap up opening but closed in red on the outcome of RBI MPC meeting.

Among sectors Selling was visible in Banks, Chemical, & cement sector whereas Nifty IT & Media sector closed in green. 
 

On the technical front, the key resistance levels for Nifty50 are 16500 and on the downside 16200 can act as strong support. 

Key resistance and support levels for Bank Nifty are 35500 and 34700 respectively.

Views by Mohit Nigam, Head - PMS, Hem Securities 

 

 

4:13 PM

Closing comments: RBI has realised need for front-loaded action

RBI turned realistic by withdrawing their accommodative stance, realising the need for front-loaded action and increased inflation forecast by 100bps to 6.7%.

On the bright side, there were some positive points like no increase in CRR, economic growth was maintained healthy at 7.2% and no additional measures were announced to reduce the liquidity of the banking system.

However, the focus shifted to the global market, which is anticipating a hawkish Fed policy, stated next week.

Views by  Vinod Nair, Head of Research at Geojit Financial Services.

 

4:11 PM

Expert view on RBI policy: Yields to have upward bias throughout FY23

The policy was on expected lines except for inflation forecast which is slightly on a higher side.

RBI hiked repo by 50 bps to 4.90% leaving CRR unchanged. Inflation for FY '23 has been forecast at 6.70% against earlier forecast of 5.70%, keeping in mind the risk emanating from the ongoing geopolitical conflict and subsequent impact on food and fuel.

RBI kept the GDP forecast flat at 7.20% for FY '23 sighting buoyancy in rural demand.

RBI further firmed its stance of withdrawal of accommodation till liquidity conditions normalise.

Probably, RBI refrained from any liquidity move in this policy as systemic liquidity has already reduced in light of its previous measures.

Yields cooled down a bit tracking the policy, which is more or less on expected lines. We expect rate hikes to continue in FY23 with yields in general having an upward bias.

Views by Prashant Pimple, Chief Investment Officer - Debt, JM Financial Asset Management. 

 

4:05 PM

Rupee closes at record low of Rs 77.73 per dollar

 

4:03 PM

Ujjivan Small Finance dips 2% after boards approves funds raise via NCDs

Ujjivan SFB's board has approved raising funds worth up to Rs 1,500 cr via NCDs

 

3:59 PM

Sugar stocks plunge despite ISMA raising sugar output for current year

Sugar output for Oct 1, 2021-Jun 6 2022 comes at 35.2 mt Vs 30.7 mt last year. 

 

3:55 PM

VIP Clothing soars 5% in weak market on first franchisee model store launch

 

3:53 PM

ICICI Lombard sheds 3% more as 37 lakh shares worth Rs 407.8 cr change hands

 

3:51 PM

Bank index pares day's gains as rate hikes to lead to rise in borrowing costs

 

3:48 PM

SBI Cards ends 2.7% up as RBI allows credit card linking to UPI

 

3:46 PM

Nifty Realty gains most as RBI raises housing loan limit for cooperative bks

Realty pack gained despite fears that rate hike will dampen demand for the sector and make loans costlier. 

FMCG pocket was the worst hit as the central bank said inflation to remain above the upper tolerance band of 6% for first three quarters of FY23. 

 

 

3:42 PM

Broader markets close in red in line with benchmarks

 

3:40 PM

Nifty50 top 5 losers: Select heavyweights tank benchmark; slip up to 3%

 

3:39 PM

Nifty50 top five gainers: Tata Steel, SBI shine in subdued session

 

3:37 PM

Closing Bell: 13 stocks end higher; Airtel, Reliance, ITC top drags

 

3:35 PM

Closing Bell: Markets slip for 4th day as RBI hikes repo rate by 50 bps; Nifty holds 16,350

 

3:33 PM

Closing Bell: Sensex drops 531 pts from day's high; ends 215 pts lower

 

3:23 PM

JUST IN: Goldman Sachs raises oil forecast to $135/ barrel for H2 of 2022-H1 of 2023

3:16 PM

Inflation a reality, with which, we have to live now: SBI Chairman to CNBC TV-18

50 bps rate hike was factored in by market. Inflation is a reality, with which, we have to live now, SBI Chairman Dinesh Kumar Khara told the news channel. 

State Bank of India (SBI) Chairman Dinesh Khara

3:08 PM

RBI policy: Further repo rate hikes clearly on the cards, says ICRA's Aditi Nayar

The Governor's reminder that the repo rate is still below the pre-pandemic level served as a clear signal that more rate hikes lie ahead. Read more

2:59 PM

Realty stocks gain steam despite RBI's hawkish stance

2:54 PM

YES Bank to form alternate Board after exiting restructuring scheme

The bank's largest shareholder, SBI, has proposed Prashant Kumar's name for MD & CEO's position for a three-year term. READ HERE

2:46 PM

Expert take on RBI policy: Higher interest rate cycle likely to prevail over next few quarters

The RBI monetary policy has largely been in line with expectations, a 50-basis point hike was expected. The initial reaction had been bullish, this does not seem justified, higher interest rates are bound to hurt corporate margins and earnings. We expect this higher interest rate cycle to continue for the next few quarters and see a slowing ecosystem where money supply will be significantly tighter.

Views expressed by Nikhil Kamath, Co-founder, True Beacon and Zerodha

2:42 PM

Bata India dives after 2.8% promoter stake sale; stock down 8% in a week

On June 1, 2022, BATA (BN) B V, the promoter of Bata India, divested 3.6 million shares or 2.8 per cent stake of the footwear company for nearly Rs 613 crore through open market transactions. READ HERE

2:37 PM

Reliance Capital CoC to further extend resolution plan submission date

As of now, only three bidders are actively engaged with the lenders for Reliance Capital RCAP resolution including Piramal, Yes Bank and IndusInd. Read here

2:26 PM

Investors' lap up media stocks; TV18 surges over 7%

2:20 PM

RBI monetary policy: Ladder your FDs and benefit from higher rates later

Home loan borrowers must pre-pay to prevent their loan tenures from rising rate regime. READ MORE

2:14 PM

Expert take on RBI policy: India in a better place to handle macro-economic shocks vs 2008

The RBI rate was widely expected. The priority (rightly so) for the central bank is taming inflation. Given that oil has stayed above $100 consistently and supply shocks from Ukraine and China remain big unknowns, it has had to increase its forecast for inflation from 5.7% to 6.7% for FY23. Inflation may actually end up even higher. What the market does not like is surprises. To that end, the RBI has done a great job in communicating clearly its priorities, setting expectations, acting decisively and swiftly. The silver lining for us is India is in a far better position than 2008 to deal with macro-economic shocks as we navigate choppy waters. Further signaling seems to suggest some more rate hikes are on the way. Any slowdown in inflation or skipping a rate hike would be positive surprises for the market.

Views expressed by Kanika Agarrwal, Co-founder, Upside AI

2:13 PM

Expert take on RBI policy: Expect 10-year G-sec yield to cross 8% before 2022-end

 MPC’s focus has now turned to taming inflation as reflected by its hawkish stance and aggressive rate hike.

We believe RBI is front-loading rate hikes (90bps in 2 months!). We expect another 50bps repo rate hike by the end of FY23 leading to an overall 140bps rate hike in FY23.

Such a steep rise in borrowing costs will affect discretionary spending and dampen the nascent recovery of investments. We think that 10yr G-sec would cross 8% sooner than our earlier projection of - by end of CY22.

Views by Sumit Shekhar, Economist, Ambit Capital.

2:06 PM

SJS Enterprises rallies 31% in last nine days on strong Q4 results

Shares of SJS Enterprises hit an over six-month high of Rs 492 and rallied 9 per cent on the BSE in Thursday’s intra-day trade on healthy demand outlook. The stock has surged 31 per cent in the last nine sessions, after the company delivered a strong and robust performance, outpacing the industry during March 2022 quarter. READ MORE