Shares trade with limited losses; realty shares fall for 2nd day

The key equity barometers continued to trade with limited losses in mid-afternoon trade. The Nifty traded below the 18,600 level after hitting the day's low of 18,668.30 morning trade. Realty shares extended losses for second consecutive session.

At 14:26 IST, the barometer index, the S&P BSE Sensex, was down 132.32 points or 0.21% to 62,494.04. The Nifty 50 index lost 54.50 points or 0.29% to 18,588.25.

In the broader market, the S&P BSE Mid-Cap index shed 0.42% while the S&P BSE Small-Cap index declined 0.45%.

The market breadth was negative. On the BSE, 1,507 shares rose and 1,941 shares fell. A total of 144 shares were unchanged.

On the political front, various exit polls on Monday predicted a big majority for the BJP in Gujarat and a dead heat in Himachal Pradesh where most pollsters gave an edge to the ruling party over the Congress. The counting of votes in both states will take place on 8 December. Elections for the Himachal Pradesh assembly took place on 12 November, while polling in Gujarat happened in two phases on 1 and 5 December.

RBI MPC Meet Outcome:

The Reserve Bank of India (RBI) raised the policy repo rate by 35 bps to 6.25% after the conclusion of the Monetary Policy Committee (MPC) meeting today, 7 December 2022.

RBI governor Shaktikanta Das announced that the central bank has hiked lending rate by 35 basis points as inflation has started showing signs of easing and economic growth tapering.

Standing Deposit Facility rate and Marginal Standing Facility Rate were also increased by 35 basis points each to 6% and 6.5%.

Das said the MPC voted 4-2 to remain focused on withdrawal of accommodation so that inflation remains within the target going forward while supporting growth.

On balance, MPC was of the view that further calibrated action was warranted to keep inflation expectation anchored, break core inflation persistence and contain second round effects.

RBI expects inflation to be above 4% in the next 12 months. The GDP growth forecast for October-December 2022 is lowered to 4.4%. It is lowered to 4.2% for January-March 2023 period.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose to 7.280 as compared with 7.249 at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.4900, compared with its close of 82.5000 during the previous trading session.

MCX Gold futures for 3 February 2023 settlement added 0.13% to Rs 53,830.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.13% to 105.72.

The United States 10-year bond yield rose 0.11% to 3.517.

In the commodities market, Brent crude for February 2023 settlement rose 49 cents or 0.62% to $78.86 a barrel.

Buzzing Index:

The Nifty Realty index fell 1.26% to 457.55. The index has lost 1.93% in two sessions.

Oberoi Realty (down 3.6%), Brigade Enterprises (down 3.05%), Godrej Properties (down 2.88%), DLF (down 1.51%) and Sobha (down 1.19%) were the top losers.

On the other hand, Indiabulls Real Estate (up 2.64%) ,Prestige Estates Projects (up 0.88%) and Phoenix Mills (up 0.36%) moved up.

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