At Rs 2 lakh crore, it is the highest liquidity in the system ex demonetisation impact.
Earnings could be heading into a new cycle and domestic flows should return with strength.
“Today, USDINR pair is expected to quote in the range of 69.20 and 69.80,” brokerage firm MOSL said.
The central bank raises reverse repo rate by 25 basis points to 6%, a measure to reward banks for parking excess fund with it.
Minutes from RBI’s February 7-8 policy review suggested that the central bank was worried about a slowdown in bank credit to industry.
"Since Fed rate hike is not expected to create much volatility in the Indian markets, this should have minimal influence on RBI's policy stance," the chamber said in a statement.
The Federal Reserve's decision to leave rates unchanged helped, but the outlook for Indian rates also turned benign as the August inflation reading opened up the possibility of rate cuts.
To be fair to Urjit Patel, one would argue that it is extremely difficult for anybody coming after someone like Rajan because of the IMF economist’s stature.
According to Nomura expectations for a rate cut had built up after the government had stuck to its path of fiscal consolidation in a prudent (rather than a populist) budget.
Most money market participants were hoping for a 25-basis-points cut as the system was awash with liquidity after the demonetisation drive.
The BSE Realty and Auto indices were trading higher by 0.86 per cent and 0.54 per cent, respectively, around 9.40 am (IST). However, the BSE Bankex was almost flat around the same time.
The Nifty50 was trading mixed supported by gains in realty, power, oil & gas, consumer durable, and capital goods stocks.
FII inflows into equity segment provided a cushion to the weakness in April.
The number of open interest contracts surged to 2,19,890 on February 6 from 1,53,299 six days earlier, an increase of 43%.
DIIs were net buyers to the tune of Rs 2,289 crore, data suggests.
I would like to avoid pharma till I see some good numbers coming in for pharma companies.
In 2019, the RBI cut repo rate by 25 basis points each in its February and April monetary policy reviews.
RBI retained the economic growth forecast for 2017-18 at June 2017 projection of 7.3% and said trajectory of inflation in the baseline projection is expected to rise from current lows.
Nifty Bank index hit a fresh all-time high of 25,199 today.
The advance-decline ratio on BSE stood at 2:3, meaning for every two stocks that gained, three declined.
Friday’s session may see 11,660 and 11,710 levels act as immediate resistance points.
The RBI has kept key policy rates unchanged in it's policy review. Debt mutual fund managers interpret the policy for you.
You should always pick up an investment option depending on your goal, investment horizon and risk profile. Experts typically ask investors to opt for debt mutual funds for their short-term goals.
Hardening expectations for an interest rate cut by the apex bank in its Wednesday's policy meet to rejuvenate the sagging economy against the back drop of softening inflations supported the currency upmove.
A few illustrative words from RBI governor Raghuram Rajan could well trigger wild swings in the rupee-dollar exchange rate and bond yields.
The youngest deputy governor of the Indian central bank will return to New York University Stern School of Business in August.
Benchmark NSE Nifty50 index was up 28.95 points at 9,666.Among the 51 stocks in Nifty index, 32 were trading in green, while 19 were in red.
Experts believe MPC may sound dovish and open doors for rate cuts in coming reviews.
Among the 51 stocks in Nifty index, 32 were trading in green, while 18 were in red.
The local currency on Tuesday snapped its four-day gaining streak and settled 7 paise down at 64.43 against dollar.
The rupee had gained 30 paise over the last four sessions against the American currency.
ITC, Tata Motors and Reliance Industries contributed most to the fall in the index.
The benchmark 6.97% 2026 bond yield rose to 6.65% on June 5 from 6.63% in the previous session.
The rupee's previous best was seen on May 17, when it had closed at 64.15.
The average trading price on the day stood at Rs 30,663.24 per 10 gm. The price of spot gold stood at Rs 30,940 per 10 gm, according to MCX data.
“Once this cycle turns, we can look for a lot of upside in coming months and quarters.”
“Markets could react negatively if there is no rate cut on Tuesday,” said Dharmesh Kant, head-retail research at Motilal Oswal Financial Services.
Bankers say they will decide on reducing interest rate on deposits and advances after the RBI monetary policy early next month.
Raghuram Rajan in his last monetary policy left interest rates unchanged citing upward risks to inflation but said the central bank will remain "accommodative".
Post RBI move, short-term deb and dynamic funds are relatively attractive vis-à-vis rates on FDs and would attract lower taxation if held for 3 years.
Bond yields and prices move in the opposite direction. The benchmark was yielding at 7.13%, three basis points less than the level seen in early trades before policy announcement.
RBI is expected to maintain status quo on the policy rate, but is seen announcing a slew of announcements to squeeze excess liquidity in the system.
The local currency gained strength after the RBI announced second dollar-rupee swap
ICICI Bank has cut its marginal cost of funds-based lending rate (MCLR) by five basis points across tenors from its previous benchmark rates.
One can consider farm and consumption sectors from short-term perspective, says Mehta.
The RBI press statement said all the six members voted in favour of a 25 bps rate cut.
Industrial production is expected to remain subdued over moderate demand and uncertainty around the outcome of upcoming general election.
Tata Motors’ domestic PV volumes declined 38%, domestic volumes of Honda fell 28% in May.
Realty stocks were on the buyers' radar, with Indiabulls Real Estate gaining 4.14%, Godrej Properties rising 2.14%, DLF 2%, Oberoi Realty 1.66% Unitech 1.30%.
Several investment advisors believe that investors should consider the characteristic of debt funds they are going to invest before allocating money.
We may sell dollar in extreme volatility but dollar selling cannot be taken for granted, Rajan told reporters after announcing the bi-monthly credit policy.
"RBI policy statement broadly endorses government expectations on GDP growth and inflation," Economic Affairs Secretary Shaktikanta Das said.
Most active stocks in terms of value help investors to identify the stocks with highest trading turnover during the day.
The macro picture looks favourable for equities, said Sunil Sharma, CIO at Sanctum Wealth.
Congress member said the banks were quick to raise interest rates as soon as the RBI increased the key policy rate or repo rate (short term lending rate).
Monsoon outcome and its impact on inflation will be among major factors guiding RBI policy.
Jayant Sinha said the Budget has taken various fiscal and reform initiative, thus creating space for monetary easing.
Experts are expecting lower borrowing costs as the inflation trajectory is down and the govt has pledged to stay on the fiscal consolidation path.
According to SBI chairman Arundhati Bhattacharya, the RBI may look at addressing the market participants' concern about the potential dollar shortages in Sept/Oct 2016.
Indicating his desire for the Reserve Bank to cut interest rates at its monetary policy review next week, FM Arun Jaitley has said he wants “what everybody wants”.
Finance and other ministries are said to have already lined up measures for new government.
Bank Nifty to Nifty Index ratio is currently trading at 2.05 times, which is lower than the average 2.16, the level which market participants follow.
The RBI Guv said the headline inflation will be contained near the mandated 4 per cent target.
Volatility for the USDINR pair could be confined to a narrow range until the release of the policy statement.
Benchmark BSE Sensex was trading 47.90 points, or 0.18 per cent, up at 26,440.66 in early trade, while NSE Nifty was up 18.85 points, or 0.23 per cent, at 8,162.
Apart from rate cut and inflation and growth commentary, the market will look for clarity on market stabilisation scheme and CRR measures announced of late.
Overall forex market sentiment remained cautious ahead of the central bank's policy review on Wednesday and a steep crash in the euro.
Traders are advised not to create any long positions on declines and remain cautious ahead of Reserve Bank of India’s money policy review on December 7.
Bank, auto and realty stocks were down by as much as 5 per cent today post RBI policy where the central bank left the key interest rate unchanged.
RBI Governor Raghuram Rajan also said if the Budget makes enough structural reforms to boost growth, the central bank could chip in with cheaper money to boost growth.
Shares of ICICI Bank plunged 5.63 per cent to Rs 217.15, the most among the 30 bluechips of the Sensex.
The announcement of Purchasing Managers' Index (PMI) data for services and manufacturing sector due this week would influence trading.
The rupee was the worst performing Asian currency last year but gained over 2 percent in March.
With yet another 25-basis-points cut in policy rates today, the RBI offered two consecutive rate cuts as debt market pundits had predicted.
The benchmark bond yield fell 3 basis points to 7.61 per cent on Thursday.
The Nifty50 reclaims its crucial level of 8,650 supported by gains in realty, power, oil & gas, metal, consumer durable, banks, auto and healthcare stocks.
The finance ministry is pushing state-run banks to bridge the gap between proposals that receive preliminary approval and final sanction.
In its fifth bi-monthly policy statement for 2015-16, RBI has held policy rates and stuck to its GDP growth forecast of 7.4% for the current fiscal.
Governor Raghuram Rajan said that an uptick in retail inflation in the last two months, especially in non-food items, warrants vigilance.
EEPC India chairman T S Bhasin said that some out of the box solutions are needed to help the exports, particularly in the engineering goods.
"There are absolutely no surprises at all. Even on the position on inflation, there was a very similar comment in the previous policy statement too."
I think it is safe to keep your stop losses a little below 7,900, say, at around 7,880-7,890 on the Nifty50, says Wagle.
Besides, investors would monitor the monthly sales data announcement from auto companies starting Tuesday.
Nifty50 is likely to move towards 8,000 level this week as the bias is still on the upside. Traders should trade with strict stop losses.
Sandeep Sabharwal lauded RBI’s decision to cut the repo rate by 25 basis points to 6.25%.
In the current MPC, there seem to be an additional emphasis on growth., says
The market saw a muted response post the RBI policy statement but the possibility of a rate cut still remains relevant in next one year, feel experts.
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