You are here: Home » Markets » News
Business Standard

Market Wrap, Dec 5: Indices end near day's low as RBI pegs FY20 GDP at 5%

The CPI inflation projection has been revised upwards to 5.1-4.7 per cent for the second half of the financial year 2019-20 and 4.0-3.8 per cent for the first half of 2020-21

Topics
MARKET WRAP | Markets

BS Web Team  |  New Delhi 

ended a volatile trading session in the negative territory on Thursday after the Reserve Bank of India (RBI) paused during the fifth bi-monthly monetary policy and kept the repo rate unchanged a 5.15 per cent. The benchmark S&P BSE Sensex closed at 40,780 level, down 71 points or 0.17 per cent, while the Nifty50 index settled at 12,018 level, down 25 points or 0.21 per cent.

In the broader market, the S&P BSE mid-cap index slipped 0.23 per cent to settle at 14,868.85. The S&P BSE small-cap index, however, ended 0.1 per cent higher at 13,468.89 level.

At the December monetary policy meeting, the RBI took a breather and kept the repo rate unchanged, even as it said the monetary policy committee sees scope for a rate cut in the February review meeting. Addressing the media, RBI governor Shaktikanta Das said it is important to deliver rate cut at the right time, where the effect could be optimised. He added, the RBI wanted to see what possible measures the government would take to address the slowdown, including under Union Budget for FY2020-21.

The MPC, however, sharply revised the FY20 gross domestic product (GDP) forecast to 5 per cent from previously projected growth rate of 6.1 per cent on weak domestic and global demand.

The RBI, in its policy statement, said it would maintain the 'accommodative' stance as long as it was necessary to revive growth while ensuring that inflation remains within the target band of 4 per cent, +/- 2 per cent. Remember, the retail inflation in November inched up 4.62 per cent on higher vegetable prices.

Consequently, the CPI inflation projection has been revised upwards to 5.1-4.7 per cent for the second half of the financial year 2019-20 and 4.0-3.8 per cent for the first half of 2020-21.

That apart, the governor said on Thursday that the aggregate exposure of a lender to all borrowers at any point of time, across all non-banking financial company peer-to-peer platforms, will be capped at Rs 50 lakh, against Rs 10 lakh at present. The cap on the exposure of a single borrower, however, remains at Rs 50,000 across all NBFC peer-to-peer platforms.

Stocks that saw major movements today:

Shares of rate-sensitive sectors, mainly banking and automobiles, slipped up to 3 per cent after the Reserve Bank of India (RBI) maintained the status quo on repo rate at 5.15 per cent. Punjab National Bank (PNB), YES Bank, RBL Bank, State Bank of India (SBI), IndusInd Bank, Canara Bank and Federal Bank from the banking space; and Ashok Leyland, Tata Motors, and Motherson Sumi Systems from the automobiles pack were the top drags on the NSE.

On the upside though, Shares of Polycab India continued their upward journey, and hit a new high of Rs 1,090.8, up nearly 10 per cent on the BSE today, on the expectation of strong earnings going forward. The stock of the fast-moving electric goods (FMEG) company zoomed 100 per cent from its recent low of Rs 525, touched on August 22, 2019. It settled 4 per cent higher on the BSE at Rs 1,037 per share.

Here is how global performed today:

Stock in Asia inched up on Thursday on the possibility that China and the United States may soon seal a “phase one” deal to end their 17-month trade war, but conflicting messages from US President Donald Trump kept a lid on the advance.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.5 per cent, Japan's Nikkei stock index rose 0.7 per cent, and Australian shares were up 1.2 per cent. European index STOXX 600, too, was ruling 0.27 per cent higher in the early trade today.

MONTHLY STAR

Business Standard Digital

Business Standard Digital Monthly Subscription
199.00  
subscribe
Complete access to the premium product
Convenient - Pay as you go
Pay using Amex/Master/VISA Credit Cards and VISA Debit Cards Only
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 ANNUAL

Business Standard Digital

Business Standard Digital - 12 Months
1799.00
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 -all Credit and Debit Cards, Net Banking, Payment Wallets, and UPI
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.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, December 05 2019. 16:37 IST
RECOMMENDED FOR YOU
.