Sensex gains 89 pts, Nifty holds 17,350 as RBI hikes repo rate by 50 bps

CLOSING BELL: While an in-line repo rate hike of 50 basis points gave ammunition to the bulls, bears tried to drag the indices as inflation projections were maintained for fiscal 2022-23 (FY23)

3:59 PM

Expert view: Vinod Nair, Head of Research at Geojit Financial Services.

"Despite the rate hike being on the higher side of the expectations, the market welcomed the RBI's move of 50 basis hike with rising bond yields. Even though metals prices are softening, RBI decided to keep FY23 inflation targets unchanged at 6.7 per cent, which is above the tolerance level. However, given that Q3 and Q4 inflation is anticipated to be between 4.0 percent and 4.1 percent, the market is hopeful for the future."

3:58 PM

Tata Elxsi hits life-time high, gains 3.5%

Tata Elxsi gained 3.5 per cent and hit a record high at Rs 9,425 on the back of strong growth outlook. READ MORE

3:52 PM

Bhagiradha Chemicals hits record high, soars over 11%

Bhagiradha Chemicals ended 11.5 per cent higher and also hit record high in trades on Friday, on healthy outlook. The stock has surged over 70 per cent from its low of Rs 736.30 touched on June 21, 2022. 

3:51 PM

Balkrishna Industries falls nearly 7% on earnings dis-appointment

Balkrishna Industries skid 6.8 per cent on disappointing margin performance in Q1. The management commentary suggests Q2FY23 to be weak (QoQ decline) due to sluggish demand prospects in Europe and US. READ MORE

3:49 PM

Karur Vysya Bank extends rally

Karur Vysya Bank extended its rally and hit an over two-year high as investors cheerd the lender strong earnings with improved asset quality for the quarter ended June 2022 (Q1FY23).

3:48 PM

M&M slips 2% on profit-taking post Q1 results

Mahindra & Mahindra slipped 2 per cent on profit-taking after the auto major reported over 7-fold jump in Q1 consolidated net at Rs 2,360.72 crore; Total income grew 48 per cent to Rs 28,412 crore.

3:46 PM

View on Bank Nifty:: Kunal Shah, sr. Technical & Derivative Analyst at LKP Securities

"The Bank Nifty index witnessed sideways consolidation throughout the week and is stuck in a broad range between 37,200-38,200 levels. The index needs to break on either side on a closing basis for trending action in the coming week. The index on the intraday chart is trading in an oversold category and the profit booking scenario cannot be ruled out from the current levels."

3:45 PM

Sectoral Indices: Nifty Bank holds fort; Auto, Metals and PSU Bank slip

3:42 PM

Chart Check:: Rupak De, Senior Technical Analyst at LKP Securities

"Nifty remained range bound before closing flat for the day. On the daily chart, it formed a Doji pattern which suggests indecisiveness. The momentum indicator RSI is in bullish crossover. The trend is likely to remain sideways to negative as long as it remains below 17,500. On the lower end, support exists at 17,200/ 17,000."

3:41 PM

Nifty 50:: Movers & Shakers

3:39 PM

Broader markets also end flat; India VIX declines 1.8%

3:37 PM

Expert take on RBI Policy: 50 bps hike – Global new normal for rate hikes

"The tone of the policy was more hawkish than expected. RBI once again hiked repo rate by 50 bps to 5.4 per cent leaving CRR unchanged. Inflation for FY23 forecasted remains unchanged at 6.7 per cent considering some softening in global food & commodity prices versus the hanging sword of geopolitical risks, transmission of input cost pressures to selling price, etc. RBI retained its GDP forecast at 7.20 per cent for FY23 citing buoyancy in domestic demand cramped by global risks. RBI further firmed its stance of withdrawal of accommodation till liquidity conditions normalise. RBI stated that when warranted it will conduct two way fine tuning operations (VRR/ VRRR) depending on evolving liquidity conditions. Yields shot up by 12-15 bps across the curve as market participants were divided equally between 35/ 50 bps. We expect rate hikes to continue in FY23 with yields in general having further upward bias."

 

- Gurvinder Singh Wasan, Sr. Fund Manager and Credit Analyst - Fixed Income, JM Financial Asset Management Ltd.

3:37 PM

S&P BSE Sensex 30 Heatmap:: UltraTech, ICICI shine; RIL, auto stocks whine

3:34 PM

NSE Nifty 50 ends nearly flat, up 15 points

3:32 PM

Closing Bell: S&P BSE Sensex ends 89 points higher at 58,388

3:26 PM

BSE 500:: Top weekly losers so far

Brightcom Group has tanked nearly 18 per cent so far this week and was the top weekly loser among the BSE 500 stocks. It was followed by Balrampur Chini, Indus Towers, Gail India and Gorej Properties, down 9-12 per cent each.

3:19 PM

BSE 500:: Top weekly gainers so far

SpiceJet has zoomed over 30 per cent and was the top weekly gainer among the BSE 500 stocks so far. Similarly, Kansai Nerolac, PB Fintech, JSW Energy and HLE Glascoat have rallied 19-25 per cent each.

3:12 PM

Mahindra & Mahindra Q1 consolidated profit jumps to Rs 2,360.70 cr

Mahindra & Mahindra on Friday reported a consolidated profit after tax of Rs 2,360.70 crore in the first quarter ended June 30, driven by strong performance of its automotive and farm sector segments. READ MORE

3:05 PM

Tata Elxsi rallies 5%; stock hits record high on strong growth outlook

Shares of Tata Elxsi hit a record high of Rs 9,425 on rallying 5 per cent on the National Stock Exchange (NSE) in Friday’s trade due to a strong growth outlook. READ MORE

2:56 PM

Global Check:: US, UK stock futures show marginal movement

Source: Investing.com

2:50 PM

Expert Take | Expect Monetary Policy stance to remain conservative for a while

With inflation expected to stay above the upper end of the corridor and an uncertain external backdrop, one should expect that Monetary Policy stance in India would remain conservative for a while.

Recent price correction in commodities though positive needs to be considered alongside currency market dynamics and would be a key variable to watch with respect to a turn in the rate cycle.

Views by: Rajeev Radhakrishnan, CIO-Fixed Income, SBI Mutual Fund

2:43 PM

Markets are now pricing in 50bps US Fed rate cut in 2023: Chris Wood

The US Fed raised the target range for the federal funds rate by another 75 bps to 2.25-2.50 per cent in its July meeting. The FOMC statement has downgraded its assessment of the economic situation. READ MORE

2:43 PM

ALERT :: China imposes sanctions on Nancy Pelosi

2:37 PM

S&P BSE Sensex wipe out entire gains, up 40 points

2:31 PM

BSE 500:: Volume Shockers

Crompton Greaves Consumer has witnessed unusually high volume of around 28.78 lakh shares so far on the BSE as against its five-day average volume of around 43,700-odd shares. Similarly, Bayer Crop, Gujarat State Petronet, Carborundum Universal and Kalyan Jewellers have witnessed a significant spike in volume in trades on Friday.

2:22 PM

COMMENT ON RBI POLICY: Ritika Chhabra, Prabhudas Lilladher

Markets were expecting a rate hike between 35-50 bps, so the RBI hike of 50 bps is on the higher side of the expectations. The RBI emphasized that it remains committed to the withdrawal of the liquidity to the contain the inflation. However, the governor did mention that the signs of moderation in inflation are emerging in form of ease in metals and food commodities and inflation is expected to be within the tolerance limit at 5.8% by Q4FY23. There was no forward guidance on the rate trajectory going forward, however, we believe that with much of the front loading behind us and oil prices also easing, RBI will go for a 15bps - 25bps hike in the next MPC meeting.

Views expressed by Ritika Chhabra- Economic and Quant Analyst, Prabhudas Lilladher

2:16 PM

Expert View on RBI Policy: Madhavi Arora, Lead Economist, Emkay Global

Yet another front-loaded hike

 

The MPC raised repo rate by another 50bps to 5.40% with the supposed stance unchanged at “focus on withdrawal of accommodation”.  The tone was balanced and similar to June, aiming to tame inflation and external risks. 

 

The broad narrative on inflation and growth remains unchanged while liquidity vigilance would imply two-way fine-tuning operations as and when warranted.

 

Bonds have sold off massively, as they were positioned for a softer policy led by media speculations. Banking stocks are up ~1% on an average. INR has remained largely agnostic.

 

We think we are near-peak RBI-hawkishness, led by falling risk premia of the entire commodity price complex and incremental rate hikes will be lower. 

 

However, we understand the situation globally is still fluid, and macro assessments might require frequent adjustments ahead from the policy perspective.
 

2:10 PM

Tata Motors aim to grow in excess of 40% over Q2 FY22, says VP

With an eye on the upcoming Onam season, Tata Motors, a home-grown automaker, plans to increase its sales in Kerala by 40 per cent in the second quarter of the financial year 2022. READ MORE

2:10 PM

Expert on RBI policy: Expect realty to be affected, while financials will benefit

50bps repo rate hike to 5.4% by the RBI makes the policy rate is the highest since Aug’19. On the positive note, maintaining the real GDP growth forecast of 7.2% for FY23 is liked by street. It seems to be more worried about external global factors this time, which has weakened INR recently. The 3rd consecutive rate hike by RBI since May’22 cumulatively 140 bps in its effort to contain inflation would certainly increase cost of borrowing and would impact few consumer sectors. We expect real estate sector to remain most affected, while financial sector would be benefitted with the likely NIM expansion with higher spread.

Views expressed by Mr. Mitul Shah, Head of Research at Reliance Securities

2:04 PM

Expert Take | RBI Policy is neutral for debt and equity markets but positive for rupee

We expect the inflation to remain elevated for the next three months and come down gradually thereafter. We do not expect retail inflation to come within RBI's comfort zone of 2-6% before the closing months of the current financial year. This is likely to nudge the RBI to  maintain the current tightening stance.

At the same time, given the current subdued global growth outlook, the RBI is likely to slow down the policy rate normalization from this point onwards. Our assessment suggests that the market is currently factoring in the peak repo rate at 6% in this cycle and the medium term inflation in the range of 5 to 5.2%.

We have similar view on the rate front but we feel that the softening of inflation in the early part of the next financial year can be substantially more than what is being currently factored in. The measures are neutral for debt and equity markets but positive for rupee

Views by: Sujan Hajra - Chief Economist and Executive Director, Anand Rathi Shares & Stock Brokers