This chart would place in what I call a classy perspective, says expert Kunal Bothra. Price patterns do reoccur and the chart here is based on a similar view.
The difference between onshore forwards and offshore non-deliverable markets is about six to 12 paise across contracts ranging from one to three months in maturity.
The reverse repo rate, at which it accepts banks' excess liquidity, will be 5.75 per cent, while the cash reserve ratio is kept unchanged at 4 per cent.
Hit by month-end dollar demand from importers, the domestic currency had fallen by 18 paise against the greenback to settle at 66.16 on Thursday.
Rate-sensitive stocks from realty, banking and auto sectors closed mixed after the Reserve Bank of India (RBI) decided to keep its policy rate unchanged at 6.25 per cent.
RBI has played very conservative but do not expect any knee-jerk reaction in either debt or equity market. The trajectory of inflation is on the elevated side, says Shah.
MCLR or the lending rates are very much dependent upon banks' ability to cut deposit rates after taking care of depositors, senior citizens.
As much as 89 per cent of the respondents said RBI may cut rates by 25 bps while 11 per cent see it holding steady.
"Probably for the next couple of months, we will see the 7 per cent growth."
Mutual fund experts believe that a lower fiscal deficit and a likely rate cut by the Reserve Bank of India this week are likely to push up the Net Asset Values (NAVs) of debt mutual funds.
For resistance, Nifty should not go past 7,930-7,950 and, hence that should be your stop loss, says Gujral.
There have been 244 issuances with maturities between one and three years, aggregating to Rs 38,294 crore between November 1, Rs 2014, and January 23.
MPC was set up by amending the Reserve Bank of India Act, 1934, through the Finance Bill 2016. Under this new system, the RBI Governor is ex-officio Chairperson.
Diron further said two sets of policies and decisions by the Reserve Bank would be relevant to India's sovereign credit profile.
Sinha said that deposit growth has been a little slower than the past, but there is plenty of deposit in the system to finance projects.
In its first bi-monthly monetary policy review for 2016-17, RBI has projected consumer price-based inflation to be around 5 per cent during the fiscal.
Nifty could move between the 8,900 and 9,100 range. RBI policy meet and assembly elections are unknowns that could sway the market in either direction.
Most of the problems of the banks are with regard to bad loan resolutions
"We expect more IPOs and other follow-on offerings in the coming months as companies raise both growth and balance sheet repair capital," the report said.
The 25 basis points rate cut on Wednesday could not enthuse traders, as the Nifty50 dropped in late trade.
In an exclusive chat with ET Now, SBI's SK Ghosh said that 25 bps rate cut was as per the market expectation.
Analysts noted that supports for the index are moving higher.
Market however remained rangebound throughout the day ahead of RBI policy meet.
Bank stocks made merry on Monday pushing the Nifty Bank to a new closing high of 25,103.
The first bi-monthly policy for FY17 will coincide with the final rounds of the 'Reserve Bank of India Policy Challenge'.
Sentiment was upbeat from the beginning with rotational buying in rate sensitive stocks.
SKS Microfinance Ltd continued its rally for second straight day and gained as much as 2.15 per cent in intraday trade on Wednesday.
Taking a 2-3 months view, the downtrend in India in interest rates is intact
In this interview, Mythili Bhusnurmath talks about RBI's policy-meet and that governor will cut interest rates.
Analysts noted that Nifty OI has been lowest since the start of calendar 2017.
Analysts noted that Nifty open interest (OI) at present is lowest since the start of calendar 2017.
"It is very unfortunate that after moving towards deregulation and market forces, the RBI seems to be going back to the policies of the 60s and 70s."
The company will be able to offer professionals insights into key capital markets trends, the emerging investor trends and the future of the financial markets.
A lower opening at the domestic equity mkt and the dlr's rise against other major currencies overseas also put pressure on the rupee, dealers said.
The rupee fell marginally by two paise to 63.12 against the dollar in early trade today at the Interbank Foreign Exchange market on increased demand.
This is a risky move by RBI since the market was positioned for a rate hike: Abheek Barua.
I am not very sure whether the data dependency is the right way to go. So I do hope he has taken the right call.
The Nikkei Services Business Activity index fell to a 3-month low of 51.4 in February, from 54.3 in January, as increase in prices led to muted demand.
For next two-three days, two levels — 8,560 and 8,490 — will be keenly watched, says Thacker in a chat with ET Now.
2017 is going to be fairly a volatile period. The dynamic bond funds are suited to try and capture any shift in yields.
A look at top macro triggers that may move market on Wednesday.
Improving macroeconomic situation and strong buying by foreign portfolio investors (FPI) helped the market gain in the second and third quarters.
"Nifty to be between 6100 on downside and 6230-6250 on upside."
US Federal Reserve raised interest rate yesterday, only the second time in a decade.
Praveen Gupta, MD (Compliance & Risk), SBI talks about the PPF, KVP rate cut, RBI's policy meeting and other things in this interview.
“But I would have liked a little bit more clarity on why has the RBI kept its GVA estimates the way it has.”
Sensex cracked over 1,274 points to hit a low of 33,482, before making a smart rebound.
According to UBS, India's macro backdrop is very different now as against 2008, the last time India adopted CPC and expanded fiscally.
The domestic currency had closed 6 paise lower at 67.84 against the greenback in the previous session.
"Investors should look at the long-term market trend to reassure themselves that such ups and downs are common in the market."
CBRE South Asia Chairman & MD Anshuman Magazine said: "The RBI's move of keeping base rates unchanged was expected by the industry".
Foreign funds pulled money from stocks at the fastest pace since 2008 in Nov on Trump’s surprise win and PM Modi’s cancellation of high-denomination notes.
RBI disappointed the market and rate-sensitive stocks took a plunge. Among the 12 components of the Nifty Bank index, 11 ended in the red.
Though gold price is down by 10.3% since November 8, a cash shortage in the market is keeping rural India that accounts for 60% of the country’s gold consumption, away from the yellow metal.
We are also trying to be very careful in the financial sector where over ownership was pretty high and the demonetisation move is likely to be a disruptor for a lot of companies focussing on LAP.
December may offer negative surprises, causing market to create a panic bottom. If that happens, investors should use the opportunity to aggressively invest.
To prevent any further damage on the charts, the bulls should push the indices above 8,250 level. Unless this happens, one should not carry forward long positions.
The index has taken a halt from the selling spree as investors are in a wait-and-watch mode ahead of the RBI and the US Federal Reserve’s rate-setting meetings.
Rajan was also asked about the criticism he has been subjected to, most prominently from BJP MP Swamy who alleged that Rajan is mentally not fully Indian.
Rajan felt that poor demand from corporates could have refrained banks to lower lending rates, which means that retail borrowers will have to wait a little longer for rate cut too.
25 is the consensus but there is every possibility that the rate cut could actually be 50 in terms of overall impact.
"Inflation trajectory seems in line with RBI prognosis, though we are hopeful of inflation possibly undershooting the 5% target," the SBI chief said.
Trading in the domestic currency was also influenced ahead of the outcome of the Reserve Bank of India (RBI) policy review scheduled for the day.
Rather than asking for meetings with the MPC, the FinMin should be hammering on the doors of other ministries asking why the pace of reform is so slow.
The strategy comprises selling an 8000 December series Nifty call and put around Wednesday's closing prices for a combined Rs 332.
Sustained capital outflows also kept the rupee under pressure while some weakness in dollar overseas was not able to stem the rupee fall.
The BJP's victory margin, however, fell substantially from 2,41,301 in the 2014 general elections in Shahdol.
Stocks like Axis, ICICI and Yes Bank are something that I like the most, says Joshi. I will prefer to buy these stocks on declines, he adds.
“Indian economy benefiting from continued flows from foreign investors into emerging markets.”
An IRF is a contract between a buyer and a seller agreeing to the future delivery of any interest-bearing asset such as government bonds.
I think it is better to wait for some more time for the market to settle down little lesser from here, then look at buying, says Daljeet Singh Kohli.
Tune in: News, views and cues you need before starting your day on D-St.
The expectations from the earning season were quite low, which certainly helped in reining in the prices, says Mehta.
RBI said the risk of fiscal slippages, which can entail inflationary spillovers, has risen.
Investment flow of foreign investors, movement of the rupee against the dollar and progress of the monsoon will also dictate the trend.
Maneesh Dangi explains the underperformance of Birla Sun Life Dynamic Bond Fund after RBI changed its monetary policy stance.
Nifty50 futures on the Singapore Stock Exchange were trading 2.5 points higher at 9,678, indicating a flat opening for the domestic market.
Nifty50 futures on the Singapore Stock Exchange were trading 7 points lower at 9,687, indicating a flat opening for the domestic market.
However, it does not take a governor with "Rajan's high profile to run a central bank that prioritises inflation and delivers economic stability," it said.
This year will certainly test the mettle and patience of the long-term investors.
Forex market sentiment turned bit shaky after growth declined to 6.1% in the January-March.
Domestic interest rates explain what's behind these high-but-not-expensive PE ratios.
I would talk of 19,000 levels being tested in the Bank Nifty. Maybe in the second half, there can be some choppiness.
"The RBI will have to take some steps regarding liquidity — either by way OMOs or cancellation of some of the auctions. It's the only thing that can give some comfort to the markets."
Earlier, an ET poll among 15 market participants showed, nobody expected a cut in the benchmark rate, now at 6.75%.
Relative out-performance from banks was overshadowed by price destruction in pharma, IT and capital goods space after earnings disappointed.
India’s November PMI print is scheduled for release on Tuesday, but RBI policy will hog the limelight.
The rupee fell by 7 paise to 66.85 against the US dollar in early trade on Monday, tracking weakness across other Asian currency markets.
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The market will sulk further until it settles down and probably find new reasons to cheer, says Sekhar in an interview to ET Now.
Among others, Unitech jumped 8 per cent, Indiabulls Real Estate surged 7.25 per cent and Anant Raj Ltd climbed 6.24 per cent.
Rupee today lost 18 paise to 59.22 against the dollar in early trade due to month-end demand of the US currency from banks and importers.
Gujral believes that the market may fall and then remain sideways, before seeing any upside. Market will also seek support from positive domestic events, he adds.
The benchmark indices reacted negatively to the 25 bps rate cut. That’s the stock market for you! But talk to experts, and the tone is markedly different.
The central bank has acknowledged liquidity management in two ways: short term, and permanent durable liquidity, in line with broad market thinking.
The index came within kissing distance of the 8,750 mark, but managed to close above its 50-day EMA placed at 8,653, which is a bullish sign.
A selloff in midcaps spoils sentiment much more than a fall in that of largecaps; this is a space where the trading crowd is, points out Ashwani Gujral.
Valuations have reached levels where you desperately need a recovery in earnings to justify fresh buying, said Gubbi in an interview to ET Now.
A change in overall market trend and upcoming volatile events like RBI policy and US Presidential elections which might give a sudden spike to the market.
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