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MARKETS ON THURSDAY: Sensex up 578 pts; RBI holds rates; inflation outlook cut

All that happened in the markets today

SI Reporter  |  New Delhi 

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. The MPC had started its 2-day meeting on Wednesday amid little hope of a rate cut, given a hardening in global crude oil prices. The RBI has maintained the status-quo on the key short-term borrowing rate (repo) in its last three policy meets. The benchmark lending rate was reduced by 0.25 ...

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MARKETS ON THURSDAY: Sensex up 578 pts; RBI holds rates; inflation outlook cut

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

MARKETS ON THURSDAY: Sensex up 578 pts; RBI holds rates; inflation outlook cut

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

MARKETS ON THURSDAY: Sensex up 578 pts; RBI holds rates; inflation outlook cut

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

MARKETS ON THURSDAY: Sensex up 578 pts; RBI holds rates; inflation outlook cut

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

MARKETS ON THURSDAY: Sensex up 578 pts; RBI holds rates; inflation outlook cut

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

MARKETS ON THURSDAY: Sensex up 578 pts; RBI holds rates; inflation outlook cut

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 ON THURSDAY: Sensex up 578 pts; RBI holds rates; inflation outlook cut

Sectoral performers

MARKETS ON THURSDAY: Sensex up 578 pts; RBI holds rates; inflation outlook cut

BSE Sensex: Top gainers and losers of the day

MARKETS ON THURSDAY: Sensex up 578 pts; RBI holds rates; inflation outlook cut

Market at close   The S&P BSE Sensex ended at 33,597, up 578 points while the broader Nifty50 index settled at 10,325, up 197 points.

MARKETS ON THURSDAY: Sensex up 578 pts; RBI holds rates; inflation outlook cut

MARKET COMMENT Garima Kapoor, Economist, Elara Capital on RBI Policy In line with our expectation, MPC maintained status quo in today’s monetary policy. The recent softening in retail inflation that had firmed up during early months of winter, supported RBI’s decision to maintain status-quo. The recent moderation also supported a downward revision to RBI’s forecasts for FY19 CPI inflation. However, we expect headline CPI inflation to overshoot RBI’s forecast. We expect retail inflation to remain in the range of 4.7%-5.6% in H1 FY19 (vs. RBI’s forecast of 4.7%-5.1%) and 3.7%-5.0% in H2 FY19 (vs. RBI’s forecast of 4.4%). We believe factors such as the expected trajectory of food prices (following new formula for MSP revision), trend in crude oil and other commodity prices and outlook for South West Monsoon will remain key in determining policy trajectory. We expect one rate hike of 25 bps towards second half of FY19

MARKETS ON THURSDAY: Sensex up 578 pts; RBI holds rates; inflation outlook cut

RBI monetary policy review: Repo rate kept unchanged at 6%; highlights In its first bi-monthly monetary policy review of 2018-19, the Reserve Bank of India’s (RBI’s) six-member monetary policy committee (MPC), headed by Governor Urjit Patel, on Thursday kept unchanged the key repo rate at 6 per cent and cash reserve ratio at 4 per cent. Also, the reverse repo rate was kept unchanged at 5.75 per cent. READ MORE

First Published: Thu, April 05 2018. 15:30 IST
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MARKETS ON THURSDAY: Sensex up 578 pts; RBI holds rates; inflation outlook cut

All that happened in the markets today

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. The MPC had started its 2-day meeting on Wednesday amid little hope of a rate cut, given a hardening in global crude oil prices. The RBI has maintained the status-quo on the key short-term borrowing rate (repo) in its last three policy meets. The benchmark lending rate was reduced by 0.25 ...

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