Sensex ends 304 pts up, Nifty tests 21,000 as RBI leaves rates untouched

Closing Bell on December 8, 2023: The BSE Sensex touched a high of 69,894, whil the Nifty hit a peak at 21,006. Infosys, HDFC Bank and ICICI Bank were the major movers on Friday.

4:08 PM

COMMENT:: FMCG stocks slipped amid concern over likely rise in foodgrain prices

"The RBI took a balanced approach by raising the economic growth forecast and also expressing concern on food inflation, which may have an elevated trajectory in the short-term. A drop in rabi sowing and dipping reservoir levels provides a perception that foodgrain prices can rise. The impact was visible on FMCG stocks, which underperformed today."

 

- Vinod Nair, Head of Research at Geojit Financial Services

3:57 PM

BSE Smallcap Heatmap:: Spencer, Purva soar up to 17%; Praj slumps 10%

3:54 PM

BSE Midcap Heatmap:: GMR Infra zooms 12%; BHEL, Torrent Power dip 4%

3:51 PM

Broader Market Check:: MidCaps, SmallCaps buck trend, declined up to 1%

3:49 PM

Sensex 30 Heatmap:: 19 Gainers v/s 11 Losers

3:48 PM

CLOSING BELL:: NSE Nifty50 settles with a gain of 68 pts at 20,969

3:44 PM

CLOSING BELL:: S&P BSE Sensex ends 304 pts higher at 69,825

3:25 PM

GMR Airports hits 12-year high; GQG Partners likely buyer in block deal

Shares of GMR Airports Infrastructure zoomed 14 per cent on Friday to hit the highest level in over 12 years. The stock touched Rs 70.22 on the BSE after over 10 per cent equity of the company changed hands on the exchange. READ MORE

3:17 PM

Global Check:: UK stock futures rise up to 0.8%; US flat

Source: Investing.com

3:07 PM

India needs to increase R&D spending to 3% of GDP: Kris Gopalakrishnan

India must triple spending on research and development (R&D) to 3 per cent of its gross domestic product (GDP) from 0.7 per cent now, said Kris Gopalakrishnan, co-founder of Infosys, on Friday. READ MORE

2:55 PM

Maruti's first EV with a range of 550 km set to be launched by March 2025

While Maruti Suzuki retains a dominant market share in the petrol-powered affordable cars segment, given the size and range of the vehicle, the eVX is unlikely to be as affordable as Tata's Tiago EV. READ MORE

2:42 PM

COMMENT:: Unlikely to see any reversal in policy rates anytime soon

The successive messaging by the MPC over its last 3-4 policies reaffirms our view that the rate hike cycle is over, and RBI will rather use its liquidity management tools to keep inflation under check.

 

At the same time, given the continued concerns and focus around inflation, we are unlikely to see any reversal in policy rates anytime soon, at least till mid-2024.

 

The evolving global growth and rate situation will also be a key determinant of RBI's policy actions, going forward”.

 

- Unmesh Kulkarni, Managing Director Senior Advisor, Julius Baer India

 

2:37 PM

View: RBI MPC outcome to continue supporting residential real estate demand

Steady policy interest rates and maintained policy stance was widely expected and aligns with the trajectory of key global central banks.

The undertone however remains precautionary over inflation risks in the upcoming months due to seasonal volatility in food prices.

The decision will continue to support the existing momentum of residential real estate demand in India.

Despite the escalations in the borrowing costs, the overall housing market has continued to remain upbeat; however, the momentum in the affordable segment has lagged.

Thus, a pause is supportive of catering to the housing needs of the vulnerable segment.

Views by Shishir Baijal, Chairman and Managing Director, Knight Frank India.

2:30 PM

COMMENT:: 20,800 is a critical support for Nifty

The Nifty reached a new all-time high as the RBI Governor announced the monetary policy, surpassing the 21,000 mark. 

 

In the short term, the Nifty might see volatility; only a clear breakout above 21,000 could drive the index towards the range of 21,550-21,700. 

 

A critical support level is situated at 20,800.

 

- Rupak De, Senior Technical analyst at LKP Securities

 

2:18 PM

Sugar shares extend fall; Balrampur, Dhampur, Praj tank up to 15% in 2 days

The central government has directed all sugar mills not to use sugarcane juice or syrup for making ethanol in 2023-24 season, as the sugar production expected to be down in this year. READ MORE

2:05 PM

RBI MPC: Repo rate kept unchanged at 6.5%, FY24 GDP estimate hiked to 7%

Reserve Bank's Monetary Policy Committee decides to keep the repo rate unchanged at 6.5% and also keeps the FY24 inflation forecast unchanged at 5.4%. READ MORE

1:52 PM

ALERT:: LIC pares stake in HDFC AMC; stock down 1.5%

LIC in an exchange filing said it reduced its holding in HDFC AMC from 9.046 per cent to 6.953 per cent in the last one year, at an average price of Rs 2,863.45 per share.

1:37 PM

COMMENT:: Not expecting a rate cut anytime soon

The MPC's decision to keep the key policy rates steady while staying the course on monetary tightening is the best policy prescription that the central bank could deliver at this point of time.

 

The tightening cycle, in my view, will continue till the headline inflation returns to the below 4% mark.  For this to happen, we may have to wait for a few quarters more as food price inflation is listed as a major downward risk in the near term.

 

The point, however, to note here is that the past policy actions have started showing results as mirrored in the moderating core inflation print. As economic expansion gathers momentum with the apex bank projecting the real GDP growth at 7% for the current fiscal, a full 50 bps up from its earlier forecast, it is only prudential for the central bank to continue its disinflationary stance.

 

I don’t expect a rate cut on the RBI’s table any time soon.

 

- V. P. Nandakumar - Managing Director & CEO at Manappuram Finance
 

1:26 PM

Foreign investors turn bullish on Indian stock futures after PM Modi's wins

Overseas funds held 31,549 more long index futures contracts than short contracts as of Thursday, turning to a net bullish position a day earlier for the first time since September. READ MORE

1:13 PM

COMMENT:: Plan to introduce a unified regulatory framework on connected lending is noteworthy

Overall, the MPC's decisions are on expected lines. The central bank left policy rates unchanged at 6.5 per cent. Retail inflation projection is also unchanged at 5.4 per cent for FY24.

 

The positive outlook of the economy remains intact and it is reflected in its upward revision of FY24 GDP growth forecast to 7 per cent.

 

Further, RBI's thrust on digital public infrastructure is continuing. The relaxation given to UPI transactions up to Rs 5 lakh for payment to hospitals and education institutions from Rs 1 lakh is another step in the right direction. 

 

The stability in the lending rates will give more impetus to the economic activity in the country, especially in rate-sensitive sectors like affordable housing and MSMEs.

 

The decision to introduce a unified regulatory framework on connected lending for all regulated entities of RBI is noteworthy. This will further strengthen the pricing and management of credit by the REs.

 

- Aditya Damani, Founder and CEO, Credit Fair

 

1:02 PM

COMMENT:: We expect RBI to remain on pause for long

Overall, the RBI's policy reflects a cautious approach to managing the trade-off between growth and inflation. While the economy is performing well, inflationary pressures remain a concern for now. 

 

The RBI's focus on maintaining stability and anchoring inflation expectations will be crucial in guiding the Indian economy through the challenging global environment. 

 

We believe that the RBI's future actions will depend on evolving data, and we continue to expect a long pause.

 

- Sampath Reddy, Chief Investment Officer, Bajaj Allianz Life Insurance

12:54 PM

CHECK: Market off day's high; Sensex trims gains to 150 points

12:46 PM

RBI Presser LIVE:: Rural demand seen strong going ahead, says Das

>> 2/3rd of rabi sowings is already complete

 

>> 2-wheeler sales has witnessed a significant turnaround

 

>> FMCG volumes in rural segment also show significant progress

 

>> Demand for MGNRERGA has declined for the first time in November
 

12:38 PM

RBI Presser LIVE:: Unemployment rate has fallen to 6.6%, says Patra

>> We have credible statistics on employment data right from July 2017

 

>> We also have the unemployment rate at rural and urban areas
 

12:36 PM

RBI Presser LIVE:: We don't want to give any guidance on rate trajectory, says Das

>> Lot of uncertainity, hence not possible to give forward guidance on rates

12:34 PM

RBI Presser LIVE:: There is a growing confidence on Indian economy, says Das

>> Growth in confidence translates into make investments and quality of Indian goods and services

12:32 PM

RBI Presser LIVE:: Small ticket loans is less than 0.5% of total credit book

>> Some recalibaration of books may be needed

 

>> We would like to focus on qualitative parameters

12:27 PM

RBI Presser LIVE:: OMO operation not off the table, says Das

>> Market interventions will be based on market liquidity

 

>> OMO still remains on the table; will be used if an when required 

 

12:27 PM

RBI Presser LIVE: OMO sales not off the table, clarifies RBI Guv

OMO ops depend on how the liquidity situation evolves, says Das. 

12:21 PM

RBI Presser LIVE: Policy easing not on the table yet, says Guv Das

Risk of overtightening should be read with where we are in terms of reaching our inflation targets. There is still distance to cover, hence easing of policy is not around the corner or on the table, says Das.