Sensex ends 174 pts higher, Nifty above 9,900 post RBI policy outcome

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3:49 PM

Market rundown by  Anand James, Chief Market Strategist of Geojit Financial Services 

 

Domestic indices edged higher buoyed by PSUs after RBI decided to maintain status quo on repo despite a cut in the growth forecast. The expectations of GST related headwinds subsiding in the second half shall underpin sentiments and market's focus will now shift to GST council meeting on Friday expecting rate reductions.

3:48 PM

Nifty Chart for the day

Source: NSE

3:46 PM

Sectoral Trend

Source: NSE

3:44 PM

CLICK HERE for fey takeaways from RBI 'status quo' policy statement

3:44 PM

RBI's very cogent view: Do not expect a repo rate cut before 2018

 

There was no expectation of any rate cut this time but what was of interest in the Monetary Policy Statement was the analysis provided by the RBI on the state of the economy and the outlook for the year. Click here to find the 3 things that stood out at the policy

3:41 PM

Nifty Bank ended flat post the policy outcome, up 0.04%. However, Nifty PSU Bank index ended 0.6% higher led mainly by gains in Indian Bank, Syndicate Bank, Andhra Bank and SBI.

3:38 PM

Top Sensex gainers and losers

Source: BSE

3:36 PM

Broader Markets

In broader markets, BSE Midcap index underperformed benchmark indices a bit, ending 0.4% higher while the BSE Smallcap index out-performed the frontline indices, settling 0.8% higher.

3:34 PM

Markets at close

Benchmark indices ended higher with Nifty50 index comfortably above 9,900 after the Reserve Bank of India’s (RBI’s) six-member Monetary Policy Committee (MPC), headed by Governor Urjit Patel, on kept the repo rate unchanged at 6%, in a decision that was broadly in line with expectations.

The S&P BSE Sensex ended at 31,671, up 174 points while the broader Nifty50 index settled at 9,914, up 55 points

3:26 PM

CLICK HERE FOR FULL TEXT OF RBI POLICY

RBI governor Urjit Patel

3:19 PM

Rate sensitive shares trade firm post RBI policy
 

Shares of rate sensitive sectors such as financials, automobiles and real estate were trading firm after the Reserve Bank of India (RBI) kept the repo rate and reverse repo rate unchanged at 6% and 5.75%, respectively, at Wednesday's monetary policy review, keeping in line with what analysts and experts had forecast. READ MORE

3:13 PM

Market Check

Benchmark indices pared some gains but were still trading nearly 0.5% higher post RBI policy outcome. At 3:11 pm, the S&P BSE Sensex was trading at 31,628, up 130 points while the broader Nifty50 was trading at 9,908, up 49 points

3:10 PM

Quote on RBI policy review

 

Mustafa Nadeem, CEO, Epic Research: The neutral stance is very much consistent with the core objective of RBI that is to keep medium term inflation in check at 4%. Policy has of course revised its Inflation projection at 4.2-4.6% in second half of FY17-18. Inflation has changed its trajectory to upwards and seems to have tapered off the base effect in August.

 

We believe that RBI needs to keep some room for future measures and look at structural changes in Indian Economy. The headwinds from International Markets will of course be seen critically for any major rate cut ahead.

3:06 PM

Credit Policy

RBI Deputy Governor: Corporate credit risk profile is showing gradual signs of improvement

3:04 PM

Credit Policy

RBI Governor: Household consumption demand may get upward boost from housing allowance