You are here: Home » Markets » News
Business Standard

MARKET WRAP: Sensex ends 276 points higher; RBI hikes repo rate by 25 bps

Markets ended higher after the RBI maintained neutral stance in its second policy decision of FY19

SI Reporter  |  New Delhi 

Markets ended higher after the RBI maintained neutral stance in its second policy decision of FY19. The central bank hiked repo rate by 25 bps to 6.25%, in line with market expectations. This is the first rate hike in over four years, reverse repo rate adjusts to 6%. All six members on the rate panel voted for an increase. The S&P BSE Sensex ended the day at 35,179, up 276 points, while the broader Nifty50 index settled at 10,685, up 91 points RBI also revised its retail inflation estimate for 2018-19 to 4.8-4.9 per cent for the first half, and 4.7 per cent for ...

MONTHLY STAR

Business Standard Digital

Business Standard Digital Monthly Subscription
149.00  
subscribe
Complete access to the premium product
Convenient - Pay as you go
Pay using Master/Visa Credit Card & ICICI VISA Debit Card
Auto renewed (subject to your card issuer's permission)
Cancel any time in the future
Requires personal information

What you get?

ON BUSINESS STANDARD DIGITAL

  • Unlimited access to all the content on any device through browser or app.
  • Exclusive content, features, opinions and comment – hand-picked by our editors, just for you.
  • Pick 5 of your favourite companies. Get a daily email with all the news updates on them.
  • Track the industry of your choice with a daily newsletter specific to that industry.
  • Stay on top of your investments. Track stock prices in your portfolio.
  • 18 years of archival data.

NOTE :

  • The product is a monthly auto renewal product.
  • Cancellation Policy: You can cancel any time in the future without assigning any reasons, but 48 hours prior to your card being charged for renewal. We do not offer any refunds.
  • To cancel, communicate from your registered email id and send the email with the cancellation request to assist@bsmail.in. Include your contact number for speedy action. Requests mailed to any other ID will not be acknowledged or actioned upon.

SMART MONTHLY

Business Standard Digital

Business Standard Digital - 12 Months
1499.00
subscribe
Get 12 months of Business Standard digital access
Single Seamless Sign-up to Business Standard Digital
Convenient - Once a year payment
Pay using an instrument of your choice - Credit/Debit Cards, Net Banking, Payment Wallets accepted
Exclusive Invite to select Business Standard events

What you get

ON BUSINESS STANDARD DIGITAL

  • Unlimited access to all content on any device through browser or app.
  • Exclusive content, features, opinions and comment - hand-picked by our editors, just for you.
  • Pick 5 of your favourite companies. Get a daily email with all the news updates on them.
  • Track the industry of your choice with a daily newsletter specific to that industry.
  • Stay on top of your investments. Track stock prices in your portfolio.

NOTE :

  • This product is a monthly auto renewal product.
  • Cancellation Policy: You can cancel any time in the future without assigning any reasons, but 48 hours prior to your card being charged for renewal. We do not offer any refunds.
  • To cancel, communicate from your registered email id and send the mail with the request to assist@bsmail.in. Include your contact number for easy reference. Requests mailed to any other ID will not be acknowledged or actioned upon.
MARKET WRAP: Sensex ends 276 points higher; RBI hikes repo rate by 25 bps

RBI's repo rate hike: Two factors that took the market by surprise   The decision to raise the repo rate by 25 bps is surprising for two reasons. The first is that it is being done in expectation of inflation increasing in the coming months, though the targeted rate at 4.8-4.9% is still below the 6% upper band. This was not the stance taken earlier, even as inflation increased and expectations were in the upward direction. The second is that the decision was unanimous, which has rarely been the case in past policies where not more than 2 members spoke of rate hikes or assumed a hawkish tone. READ MORE

MARKET WRAP: Sensex ends 276 points higher; RBI hikes repo rate by 25 bps

MARKET COMMENT Dheeraj Singh – Head of Investments & Fund Manager – Fixed Income, Taurus Mutual Fund The decision on interest rate hike was generally expected ever since the release of the last monetary policy committee meeting minutes indicated that the committee members were leaning towards a hike in policy rates. The markets will probably take solace in the fact that the central bank continues to maintain a neutral stance and has not moved towards a removal of accommodation stance. This suggests that, unless further inflation prints are significantly higher, the August committee meeting may keep policy rates unchanged. Higher inflation in the immediate future could however increase the probability of a further increase in policy rates

MARKET WRAP: Sensex ends 276 points higher; RBI hikes repo rate by 25 bps

MARKET COMMENT Motilal Oswal, chairman & managing director, Motilal Oswal Financial Services RBI Governor changed the rate little higher, as at this juncture that was the best thing to do. India is in a situation where anything sharp can hurt economy. If we raise the Interest rates too fast & too sharp and try tightening the money supply, it can hurt the corporate earnings that are just about on cusp of expanding. Lowering of interest further was not the case at all, as global volatility due to crude oil prices and rate tightening never offered that option.   At the current levels, markets are looking little expensive but for a reason of expectation of earning momentum kicking in. We think even the correction in the mid-caps is overdone and they should start stabilising. It would be a good idea to commit some capital into well-managed mid-cap mutual funds, as the recovery in earnings will bring the quick buoyancy. Broad markets are currently holding well and we think have a case to move higher towards 11,000 Nifty mark in the short term

MARKET WRAP: Sensex ends 276 points higher; RBI hikes repo rate by 25 bps

MARKET COMMENT Shishir Baijal, Chairman & Managing Director, Knight Frank India The RBI’s stance of increasing the policy rate by 25bps is in line with our expectation considering that the crude oil flared inflation level and the interest rates in the broader economy have been marching higher for some time now. However, this increase in policy rate will delay the revival of the country’s housing market, which after suffering a prolonged period of slump has just begun to show early signs of improvement on account of uptick in affordable housing

MARKET WRAP: Sensex ends 276 points higher; RBI hikes repo rate by 25 bps

Nifty Realty index gained 1.5% COMPANY LATEST PREV CLOSE GAIN() GAIN(%) VOLUME INDBULL.REALEST. 177.95 172.15 5.80 3.37 8607447 GODREJ PROPERT. 726.20 706.35 19.85 2.81 111348 PHOENIX MILLS 664.90 649.15 15.75 2.43 73821 OBEROI REALTY 509.15 501.55 7.60 1.52 208971 UNITECH 4.15 4.10 0.05 1.22 9894359

MARKET WRAP: Sensex ends 276 points higher; RBI hikes repo rate by 25 bps

Nifty PSU Bank index gains 2.5% post RBI policy COMPANY LATEST PREV CLOSE GAIN() GAIN(%) VOLUME ALLAHABAD BANK 43.30 39.75 3.55 8.93 10478877 INDIAN BANK 347.95 330.20 17.75 5.38 1892339 UNION BANK (I) 90.60 87.00 3.60 4.14 7594762 ORIENTAL BANK 78.60 75.85 2.75 3.63 2654392 SYNDICATE BANK 48.65 47.15 1.50 3.18 2665106

MARKET WRAP: Sensex ends 276 points higher; RBI hikes repo rate by 25 bps

Nifty PSU Bank index gains 2.5% post RBI policy COMPANY LATEST PREV CLOSE GAIN() GAIN(%) VOLUME ALLAHABAD BANK 43.30 39.75 3.55 8.93 10478877 INDIAN BANK 347.95 330.20 17.75 5.38 1892339 UNION BANK (I) 90.60 87.00 3.60 4.14 7594762 ORIENTAL BANK 78.60 75.85 2.75 3.63 2654392 SYNDICATE BANK 48.65 47.15 1.50 3.18 2665106

MARKET WRAP: Sensex ends 276 points higher; RBI hikes repo rate by 25 bps

Sectoral Trend

MARKET WRAP: Sensex ends 276 points higher; RBI hikes repo rate by 25 bps

Top Sensex gainers and losers

MARKET WRAP: Sensex ends 276 points higher; RBI hikes repo rate by 25 bps

Markets at Close The S&P BSE Sensex ended the day at 35,179, up 276 points, while the broader Nifty50 index settled at 10,685, up 91 points

MARKET WRAP: Sensex ends 276 points higher; RBI hikes repo rate by 25 bps

MARKET COMMENT Ramesh Nair, CEO & Country Head, JLL India The hike may seem to dampen sentiments in the market but in terms of real estate may have little or no impact. As almost all home loans these days are on floating rates, the rise and fall in home loan rates does not impact the performance of residential real estate sector much and tends to balance each other out over long term.  As buying decisions are generally not taken based on fluctuations in home loan rates, there will be very little effect on the real estate market. Though for some home buyers looking towards making a very low ticket size purchase decision, there may be some tentativeness in the decision making, overall we will see minimal impact on the end-user in the housing sector

First Published: Wed, June 06 2018. 15:30 IST
RECOMMENDED FOR YOU

MARKET WRAP: Sensex ends 276 points higher; RBI hikes repo rate by 25 bps

Markets ended higher after the RBI maintained neutral stance in its second policy decision of FY19

Markets ended higher after the RBI maintained neutral stance in its second policy decision of FY19. The central bank hiked repo rate by 25 bps to 6.25%, in line with market expectations. This is the first rate hike in over four years, reverse repo rate adjusts to 6%. All six members on the rate panel voted for an increase. The S&P BSE Sensex ended the day at 35,179, up 276 points, while the broader Nifty50 index settled at 10,685, up 91 points RBI also revised its retail inflation estimate for 2018-19 to 4.8-4.9 per cent for the first half, and 4.7 per cent for ...

image
Business Standard
177 22