Barometers hit fresh intraday low

Key equity barometers reversed trend and hit fresh intraday low in mid-afternoon trade. Sentiment was affected after the Reserve Bank of India (RBI) revised its growth forecast for the year to 6.9% from 7% estimated earlier. At 14:26 IST, the barometer index, the S&P BSE Sensex, was down 96.94 points or 0.26% at 36,879.91. The Nifty 50 index was down 44.60 points or 0.41% at 10,903.65.

The S&P BSE Mid-Cap index was down 0.22%. The S&P BSE Small-Cap index rose 0.33%.

The market breadth was positive. On the BSE, 1181 shares rose and 1177 shares fell. A total of 149 shares were unchanged.

RBI after its monetary policy meeting today, 7 August 2019, cut the policy repo rate by 35 basis points to 5.75% with immediate effect.

On the basis of an assessment of the current and evolving macroeconomic situation, RBI's monetary policy committee (MPC) decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 35 basis points (bps) from 5.75% to 5.40% with immediate effect.

Consequently, the reverse repo rate under the LAF stands revised to 5.15%, and the marginal standing facility (MSF) rate and the bank rate to 5.65%. The MPC also decided to maintain the accommodative stance of monetary policy. These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.

The real GDP growth for 2019-20 is revised downwards from 7% in the June policy to 6.9% - in the range of 5.8-6.6% for H1:2019-20 and 7.3-5 to 7.5% for H2 - with risks somewhat tilted to the downside; GDP growth for Q1:2020-21 is projected at 7.4%.

Fortis Healthcare rose 1%. On a consolidated basis, the healthcare services company reported a net profit of Rs 58.31 crore in Q1 June 2019 over a net loss of Rs 71.85 crore in Q1 June 2018. Net sales rose 9.2% to Rs 1138.31 crore in Q1 June 2019 over Q1 June 2018. The result was announced after market hours yesterday, 6 August 2019.

Bajaj Electricals lost 0.99%. On a consolidated basis, the consumer electrical equipment manufacturing company's net profit fell 62.47% to Rs 15.23 crore on a 14.1% rise in the total income from operations to Rs 1300.69 crore in Q1 June 2019 over Q1 June 2018. The result was announced during market hours today, 7 August 2019.

Media stocks were in the spotlight. Zee Entertainment Enterprises (up 7.20%), TV Today Network (up 5.84%), Dish TV (down 1.50%), Zee Media Corporation (up 1.27%), Sun TV Network (up 1.20%), TV18 Broadcast (up 0.98%) and NDTV (up 0.92%) advanced.

Eros International Media (down 3.74%), Balaji Telefilms (down 3.55%), Prime Focus (down 1.17%), Siti Networks (down 1.10%) and Network 18 Media Investments (down 0.25%) declined.

Vodafone Idea lost 4.96% to Rs 5.37. The telecom major said that CRISIL had downgraded its rating from CRISIL A+ (Negative) to CRISIL A (Negative) on the company's non-convertible debentures worth Rs. 3500 crore. The announcement was made after market hours yesterday, 6 August 2019.

IT shares were mixed. MindTree (up 5.3%), HCL Technologies (up 1.23%), Wipro (up 1.18%), Infosys (up 0.88%), Tech Mahindra (up 0.7%) and TCS (up 0.66%) advanced.

Oracle Financial Services Software (down 0.48%), Persistent Systems (down 0.39%), Hexaware Technologies (down 0.33%) and MphasiS (down 0.31%) declined.

The yield on India's 10-year benchmark federal paper rose to 6.384% at 14:27 IST compared with 6.338% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 70.806, compared with its close of 71.030 during the previous trading session.

MCX Gold futures for 4 October 2019 settlement rose 0.54% at Rs 37,699.

In the commodities market, Brent crude for October 2019 settlement was down 8 cents at $58.86 a barrel. The contract fell 87 cents or 1.45% to settle at $58.94 a barrel in the previous trading session.

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