Some financials are in a virtuous cycle and some Like YES Bank are in a vicious cycle.
On the domestic front, market participants will be keeping an eye on RBI policy meeting.
Axis Bank joins a long list of banks that have reduced their lending rates after RBI cut the repo rate by 35 basis points earlier this month.
In FY20, BoP deficit may not be as wide if oil averages $65-70 a barrel, says HSBC chief India economist
On NSE, barring Nifty IT index all other major indices ended lower.
RBI Governor Urjit Patel-led monetary policy committee (MPC) on Wednesday maintained status quo on the short-term lending rate -- repo rate -- at 6.50 per cent in its fifth bi-monthly policy review of 2018-19. Reverse repo -- the rate at which the central bank borrows from banks -- was kept unchanged at 6.25 per cent. However, the central bank cut the SLR by 25 basis points. RBI maintained caliberated tightening stance and projected HIFY20 GDP growth at 7.5 per cent. As expected, no changes were made to the cash reserve ratio (CRR).RBI Policy: MPC keeps repo rate unchanged at 6.50%; cuts SLR by 25 bps
Benchmark NSE Nifty50 index was down 78.15 points at 10,791.35 while BSE Sensex was down 227.52 points at 35,906.79 around 12:11 pm.
Benchmark NSE Nifty50 index was down 78.25 points at 10,791.25 while BSE Sensex was down 234.57 points at 35,899.74 around 11:59 am.
A lowdown on top macro triggers that may move market on Wednesday.
Will RBI hike rates? Or will it hold rates? Do I need to change my debt mutual fund investment strategy?
Will RBI hike rates? Or will it hold rates? Do I need to change my debt mutual fund investment strategy?
The benchmark bond yield was little changed at 7.83 per cent amid lacklustre trading activity.
The policy review meeting of the six-member MPC, headed by RBI Governor Urjit Patel, is currently underway. The policy decision will be announced on Wednesday afternoon.RBI policy meet: Here is what to expect
Trading was largely confined to a tight range for most part of the day with no directional strength and market moving factors.
The Reserve Bank of India (RBI) is scheduled to release its second bi-monthly monetary policy statement for 2018-19 on Wednesday. ET Now's Ruchi Bhatia joins in with what to expect from the Monetary Policy Committee's (MPC) decision this time.RBI policy on Wednesday: Here's what to expect
It will be first time that meeting is going on for 3 days because of "administrative exigencies".
The Nifty Realty index was trading 0.20 per cent down at 272 around 10:10 am.
The domestic currency on Tuesday gained 13 paise to close at a fresh two-week high of 68.54.
It was fourth rate cut by the RBI in a row. The short-term lending rate now stands at 5.40%.
The reduction in rates will be effective from August 15, 2019.
The Reserve Bank of India maintained a status quo on policy rates in today's MPC meeting.
The Nifty Realty index was trading 2.63 per cent down at 209 around 01:27 pm.
The Nifty Auto was trading 2.66 per cent down at 8,962 around 01:15 pm.
September turned out to be the worst month for Dalal Street since February 2016.
Due to this rate cut, the one-year MCLR would come down to 8.15 percent a year from 8.25 percent. This is SBI's fifth consecutive cut in MCLR in FY 2019-20.
The Fed also dropped the word “accommodative” from the policy statement.
The BSE Sensex shed 109 points to close below the key 35,000-mark today as trading activity was on a low ebb ahead of RBI's policy announcement tomorrow. The 30-share Sensex stayed in the negative terrain for most of the session, touching a low of 34,784.68. It finally finished at 34,903.21, down 108.68 points or 0.31 per cent. The broader NSE Nifty too dropped by 35.35 points, or 0.33 per cent, to end at 10,593.15, after moving between 10,633.15 and 10,550.90.Sensex slips for third day ahead of RBI policy outcome
Overall, forex market sentiment turned little nervous and witnessed lethargic trade.
The central bank may be set to tighten policy next week to keep inflation in check.
It examined how RBI responds to global volatility-driven stress through its monetary policy tools in a market like India that are reasonably well-integrated into the global financial cycle.
If one look at growth performance of India, the only real driver has unfortunately been oil prices.
The Reserve Bank of India has once again kept its key rates unchanged in its policy review today.
Public sector banks outperformed other major indices on bourses.
The BSE bank index rose 1.75 per cent to a high of 27417.10 points.
The Nifty Realty index was trading 2.06 per cent up at 300 around 10:10 am (IST) with all components in the green.
The Nifty Auto index was trading 1.84 per cent up at 11,359 around 10:45 am (IST).
The Nifty Realty index finished Wednesday's session 0.18 per cent up at 273.
The RBI raised repo rate by 0.25 per cent in its policy review.
A look at top macro triggers that may move market on Wednesday.
A rally in domestic equities further supplemented the recovery momentum.
The Nifty PSU Bank index was 2.55 per cent down at 2,707 around 12:55 pm.
SBI Chairman Rajnish Kumar said the RBI's decision to maintain status quo was in consonance with market expectations.
The stock market in Singapore is also shut for the day for Hari Raya Puasa.
The banker proposed changes to PSBs, including reducing the number of state-run lenders to five.
Volatility to persist as the market is to be largely driven by ongoing quarterly earnings.
Find out how to select the right lender and optimise benefits under the new regime.
The proposed increase in a customs duty in Budget on a number of items may increase inflation.
The benchmark bond yield dipped eight basis points to 7.52% pushing prices up in afternoon trade.
The RBI's policy review is expected to dominate forex market sentiments during the week.
“Agricultural sector is showing signs of distress while the industry and service sectors have been peaking up.”
The BSE Auto index was trading 1.28 per cent up at 24,771 around 02:50 pm with all components in the green.
The Nifty Realty index was trading 1.51 per cent up at 283 around 10:25 am.
The Nifty Auto index was trading 0.57 per cent up at 11,050 around 10:15 am on Wednesday.
Shares of IDFC Bank surged 3 per cent after RBI gave green signal to the merger of Capital First with the bank.
The pressure could be felt both in the July-September quarter and October-December quarter, if not extended by another three-month period.
Time has come to take a look at some of the names on the investment side.
Gold prices were stable in international markets hovering below the 15-week high.
We are quite comfortable on the liquidity side as a bank and also as an industry.
The Nifty Bank index was trading almost flat at 27,756 around 09:45 am.
The RBI could have joined the government in helping the exporters by reducing the cost of borrowing, said EEPC India Chairman T S Bhasin.
Benchmark NSE Nifty50 index was down 32.95 points at 10,085.3.
The Indian currency soared to a fresh 3-month peak of 64.21 in early trade before retreating sharply.
The RBI's macro numbers like inflation forecasts as also the GDP look real and variables like Monsoon, crude oil prices in an election year would be the factors to watch for, he added.
“In a way, RBI’s earlier projections on the inflation was a little on the higher side.”
Get your shopping list ready and start buying slowly, says Quantum Securities'director.
After fresh highs, the index witnessed strong selloff hinting some more pressure in near term.
MPC felt a 50 basis points rate cut might have been excessive,” said Shaktikanta Das.
RBI had cut the policy rate by 75 basis points prior to this review.
FPIs, which were sitting on the sidelines, are likely to re-enter the bond market.
The benchmarks witnessed valuebuying in banking, metal, pharma and auto counters.
Sector-specific movement can be seen following the GST Council meeting on Saturday.
Jittery markets are facing a crisis of confidence with respect to the precariously perched NBFC.
Sobha was the only component of the Nifty Realty index that was trading in the red.
The market will remain closed on Monday, October 2, 2017, on account of Gandhi Jayanti.
Cuts of 0.50 per cent to narrow the real interest rate.
It is status-quo for your debt mutual fund investments, with Reserve Bank of India (RBI) keeping its policy rates unchanged in its policy review today.
RBI may also take note of the government’s revised fiscal targets and may turn hawkish.
The Indian currency hit a low of 64.40 intra-day before staging a recovery in line with local equities.
Over the next few policy conclaves, the MPC may change its stance to ‘hardening’ from ‘neutral’.
Speculations and reports suggest the central bank may tighten its stance in the policy review.
Rupee gained about 0.60 per cent or 38 paisa to close at 63.70, the level last seen on July 23 two years ago. RBI is believed to have intervened to curb the local unit’s sharp rise, dealers said.
In the Nifty50 pack, 20 stocks were trading in the green, while 31 stocks were in the red.
The lower breakeven below which losses start is 1.9 per cent from Monday's close.
The US Fed hike is as per the expected lines, which raised its benchmark interest rate for the second time in three months and there is forecast of two additional hikes this year, experts said.
Outperformance of the Bank Nifty over the benchmark Nifty may extend in the near to medium term.
India’s retail inflation accelerated more than estimated to a 17-month high.
"Despite, RBI holding rates, we might still see banks cutting deposit and lending rates as liquidity remains comfortable and credit growth is muted."
On the domestic front, the focus will shift to RBI policy meeting which is scheduled next week.
If RBI cuts rates in the future, long-term bond funds should regain the lost spark once again. Should you bet on them?
For loans above Rs 75 lakh, with LTV ratio of above 75%, risk weight is reduced by 25% to 50%. Standard asset provision for all individual home loans is kept at 0.25%.
Shares of Bharat Forge, Eicher Motors and Mahindra & Mahindra were among top gainers.
RBI has kept repo rate unchanged in its second bi-monthly monetary policy review. Against this backdrop, what should debt mutual fund investors do?
Of the six members, both external and internal, one external member Ravindra Dholakia was not in favour of a pause in policy rate.
Shares of Vedanta Ltd, ICICI Bank, ITC, DLF were among most traded securities on the National Stock Exchange on Wednesday.
Concerns over growing fiscal deficit and liquidity worries weighed on investor sentiment.
Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service