COMMENT ON RBI POLICY As expected, the RBI in its first bi-monthly monetary policy statement for 2018-19 kept the policy rate unchanged at 6.0%. Also, the tone of the policy commentary suggest that despite several uncertainties surrounding the inflation trajectory, RBI is not in a hurry to change its neutral stance of monetary policy. Although RBI has listed a number of issues such as - (i) revised MSP announced in the FY19 Union Budget, (ii) staggered impact of HRA revisions by various state governments, (iii) another round of fiscal slippage both at the central and select state governments and (iv) industrial outlook survey of RBI indicating rise in input and output prices and (v) volatility in crude oil prices - to put pressure on inflation during the coming months, it is still hopeful of CPI remaining in the range of 4.7%-5.1% during 1HFY19 and 4.4% in 2HFY19. India Ratings and Research therefore believes that RBI may remain in a pause mode in the near term so far as policy rate is concerned MARKET COMMENT Devang Mehta, Head – Equity Advisory, Centrum Wealth There has been consistent improvement in certain macros & important data points like better than expected 3rd quarter GDP, pick up in the manufacturing sector & industrial production, excellent auto sales numbers & pick up in credIt growth. With revised lower Inflation trajectory by RBI, Equity markets were clearly enthused. We have been constantly advising clients to accumulate good quality stocks in a market which has corrected both in terms of valuations & price points. We continue to be bullish on domestic themes where there is good predictability of earnings growth MARKET COMMENT Motilal Oswal, CMD, Motilal Oswal Financial Services As expected, the RBI has left all key rates unchanged. Markets have corrected very well and now awaiting a bouce in the corporate earnings momentum. We think 10,000 level on Nifty 50 and 33,000 level on S&P BSE Sensex are good levels to invest in the equity markets from a long-term perspective. We will witness some turbulence, thanks to global trade fight, but subject to that volatility, these are good levels for retail investors to commit some money Motilal Oswal MARKET COMMENT Prateek Agrawal, Business Head & CIO, ASK Investment Managers Keeping interest rates unchanged has been as per expectations. This along with the leeway given to banks to absorb loan losses (done over last few day) has provided fuel to the stock market. RBI has been conscious of lower inflation risk and uncertain global trade environment Nifty Metal index ends 4.06% higher. Top gainers: COMPANY LATEST PREV CLOSE GAIN() GAIN(%) JINDAL STEEL 235.55 219.60 15.95 7.26 HINDALCO INDS. 214.05 200.80 13.25 6.60 VEDANTA 289.10 274.30 14.80 5.40 JINDAL STAIN .HI 177.40 170.00 7.40 4.35 S A I L 75.25 72.30 2.95 4.08 Nifty PSU Bank index surges 4.92%. Top gainers: COMPANY LATEST PREV CLOSE GAIN() GAIN(%) CANARA BANK 288.15 262.50 25.65 9.77 BANK OF INDIA 112.05 103.45 8.60 8.31 BANK OF BARODA 148.70 139.90 8.80 6.29 SYNDICATE BANK 60.15 56.65 3.50 6.18 ALLAHABAD BANK 52.05 49.20 2.85 5.79
Markets ended over 1.5% higher on Thursday after the Reserve Bank of India kept the repo rate unchanged at 6% in the first Monetary Policy Committee (MPC) meet of FY19.
The S&P BSE Sensex ended at 33,597, up 578 points while the broader Nifty50 index settled at 10,325, up 197 points.
In global markets, Asian shares bounced from two-month lows on Thursday as world equities recovered from a selloff triggered by escalating Sino-US trade tensions, with investors hoping a full-blown trade war between the world’s two biggest economies can be averted.
Sentiment was lifted as the United States expressed willingness to negotiate a resolution to the trade fight after the proposed US tariffs on $50 billion in Chinese goods prompted a quick response from Beijing that it would retaliate by targeting key American imports.
(with inputs from Reuters)