Many things that RBI governor Raghuram Rajan did in his first full-fledged monetary policy review were unconventional.
Bankers remained ambivalent on the impact of today's policy announcement by Reserve Bank on the cost of funds.
At 11:35 hrs the 10-benchmark government securities were trading at 8.59%, down four basis points from early morning trades.
The S&P BSE Banking index was trading 1.03 per cent higher at 12,303, while the BSE Auto index was trading 0.9 per cent higher at 11,901.
At 10:35 hrs, the 10-year benchmark government securities were on Tuesday trading at 8.64%, little changed from yesterday’s closing price. Total volume was low at around Rs 3,030 crore.
Shares of Adani Group companies came under selling pressure on Monday.
“If US raises rates faster and oil prices keep going higher, another hike can be expected.”
As far as aviation is concerned, IndiGo would be the preferred one, says Mehta
Interest rate sensitive banking and realty stocks today attracted strong buying, surging up to 22.5 per cent ahead of the RBI's mid-quarter monetary policy.
HDFC duo together caused over a 100-point slide in Sensex.
Inflation and forex market conditions are expected to weigh on the Reserve Bank decision as it reviews monetary policy later this week.
The BSE Consumer Durables index was trading 0.51 per cent up at 21,008 around 01:20 pm.
Siemens is a 'Buy' call with a target price of Rs 1,055 and a stop loss of Rs 995.
Around 12:30 pm, the BSE Smallcap index was 0.38 per cent up at 16647, while the BSE Sensex was 0.08 per cent down at 37,578.
Around 12:25 pm, the BSE Midcap index was 0.57 per cent up at 16105, while the benchmark Sensex was 0.04 per cent down at 37,590.
The NSE Nifty index was trading 10 points down at 11,346, while the BSE Sensex was down 62 points at 37,545 around 11:30 am.
Auto companies will start releasing their sales numbers for the month of July from today.
The BSE Auto index was trading flat at 24,267 around 12:30 pm.
The Nifty FMCG index was trading 0.36 per cent up at 30,861 around 12:20 pm.
The Nifty Realty index was trading 0.04 per cent up at 268 around 12:10 pm.
The Nifty IT was trading 0.67 per cent down at 14,421 around that time with Tech Mahindra (up 0.67 per cent) as the solitary gainer.
The Nifty Pharma index was trading 0.76 per cent up at 9,107 around 11:15 am.
Around 10:55 am, the BSE Midcap index was 0.06 per cent down at 15902, while the BSE Sensex was 0.09 per cent down at 37,302.
Around 10:50 am, the smallcap index was 0.27 per cent up at 16,494, while the Sensex was 0.07 per cent down at 37,310.
Equity benchmarks erased early gains and turned flat ahead of RBI policy meet beginning today.
The Nifty PSU Bank index was trading 2.71 per cent up at 3,177 around 10:20 am.
The inflation forecast for the next fiscal year has been pegged at 5.1-5.6% in the first half and 4.5-4.6% in the second half, with risks tilted to the upside.
The S&P BSE Sensex slipped over 150 points after the RBI maintained a status quo in its policy meet today.
At 09:20 a.m.; the 30-share index was at 28534.62, down 25 points or 0.09 per cent. It touched a high of 28536.64 and a low of 28474.09 in trade today.
The S&P BSE Sensex snapped three-day rally and slipped as much as 155 points in trade, led by losses in power, oil & gas, metal and realty stocks.
Moody's downgraded Japan's sovereign debt rating by a notch to A1 from Aa3, citing heightening uncertainty over the country's ability to hit its debt-reduction goal.
Tensions between the government and the RBI governor came out in the open as PM called for “fresh thinking” on macroeconomic policy.
Today's monetary policy announcements will be the last major action by Reserve Bank Governor D Subbarao, unless he gets another extension.
RBI's comments raised questions about it's resolve in sustaining cash-draining measures that have sent bond yields surging.
The S&P BSE PSU index was trading 2% lower, followed by the BSE Realty index which was down 2.1%, while the BSE Banking index plunged 0.4%.
RBI continuous efforts to stem rupee fall seems to paying off as the Indian unit is not only is off its all-time low of 61.21 but has turned around to trade at more than a one-month high today.
Nifty futures on the Singapore Exchange were trading higher, indicating a positive start for the Nifty50.
Gitanjali Gems fell by its daily limit of 20% and was locked in lower circuit at Rs 400.90. PC Jeweller was down 10.36%, while TBZ fell 12.85%.
Corporate earnings are weak and therefore a rate cut will benefit, says Lokapriya.
Rate sensitive stocks cracked in after the RBI maintained status quo on policy rates. Here are technical recommendations on top ten such stocks.
The rupee strengthened 9 paise against the US dollar after the Reserve Bank of India's mid-quarter monetary policy announcement.
The market had surged 250 points after the policy meeting; led by gains in rate sensitive sectors such as capital goods, banks, auto and realty.
"The downside risk has perhaps receded a little when compared to what it was in the last policy; and I read that as mildly positive."
Seeking to address farm distress ahead of general elections, the Centre on July 4 hiked price paid to farmers for paddy by a record Rs 200 per quintal.
As we have pointed out in the past, the repercussions of banks blindly following the RBI's diktat go well beyond the banking sector.
Valuations of private banks and NBFCs are at elevated levels, says Vivek Mavani.
Any further movement in rate sensitive stocks will be more a function of their quarterly numbers and expected growth in future.
Ahead of the monetary policy announcement by the Reserve Bank of India, the 10-year bond yield went up.
“I would characterise (the policy) as neither conservative nor aggressive. It’s in some sense a Goldilocks policy — just right given the current situation,” he said.
Rupee is down 13% in 2018, even as it on Friday capped 1st consecutive weekly gain since Aug.
The BSE Banking index pared gains and plunged in deep red after the RBI in its policy meet on Tuesday kept the repo rate unchanged at 8%.
Raghuram Rajan assured investors that short-term risks are more balanced currently and the RBI has room to cut rates if disinflation continues.
100 per cent respondents to ET Now poll expect the key rates and cash reserve ratio to remain unchanged.
If the Bank Nifty does not have any kind of negative event, the market momentum should spill over and we might actually see a breakout above 7700.
The RBI is scheduled to announce the mid-quarterly review of its monetary policy on March 15, a day before the presentation of the Union Budget in Parliament.
India Inc today welcomed the 0.25 per cent interest rate cut by the Reserve Bank saying it would help revive confidence of industry.
BSE Auto Index was trading 0.7 per cent higher, led by gains in Ashok Leyland which was up 1.3 pc, and Bajaj Auto which rose 1.6 pc.
Following today's negative performance, markets are likely to trade slightly in negative zone ahead of the RBI meet.
Investors will remain cautious ahead of RBI’s mid-quarter monetary policy. The decision on key policy rates is likely to set the trend for the market this week.
Analysts said the turbulence overseas does not bode well for India.
"In all probability, looking at the kind of inflation numbers which came in yesterday, my sense is a 25 bps cut is definitely expected."
The policy has shown a practical approach, but it is not certain if can have any sizeable impact on the exchange rate front, says AV Rajwade.
'RBI is likely to cut key interest rates by 0.50%, to 7.5%, in the forthcoming monetary policy review.'
The benchmark yield closed at 7.71 per cent Wednesday versus 7.77 per cent a day earlier.
Muted response of the bears to the policy suggests there may not be a big correction ahead.
Nifty formed a 'Spinning Top', which indicates that the pace of buying was slowing down.
The BSE Oil & Gas index was trading 0.87 per cent up at 15,154 around 11:40 am.
A recovery in late trade and a shift in support towards higher levels hinted at more upside.
Equity markets were up ahead of the RBI policy outcome scheduled for later in the day.
The BSE Oil & Gas index was trading 0.10 per cent up at 14,365 around 01:50 pm.
The rupee fell as crude oil price surged as high as $85 per barrel.
Benchmark Sensex was 0.58 per cent up at 35,107, while Nifty50 was 0.63 per cent up at 35,108 around that time.
The Nifty Pharma index was trading 1.03 per cent up at 8,202 around 12:30 pm.
The Nifty Metal pack was trading 1.19 per cent up at 3,596 around 12:20 pm.
The Nifty IT index was trading 0.85 per cent up at 13,523 around 12:15 pm.
Bajaj Auto is a 'Buy' call with a target price of Rs 3,025 and a stop loss of Rs 2,884.
By 11:20 am, as many as 23 stocks had hit 52-week highs on BSE, while 289 stocks had touched 52-week lows.
The NSE Nifty index was trading 36 points up at 10,629, while the BSE Sensex was up 124 points at 35,027 around 11:05 am.
Equity markets were up ahead of the RBI policy outcome scheduled for later in the day.
Domestic equity markets opened in the green on Wednesday ahead of the RBI policy outcome scheduled for later in the day.
It was followed by Vakrangee (1.20 crore), Electrosteel Steels (0.93 crore) and PC Jeweller (0.76 crore).
Traders turned cautious in the run up to the outcome of RBI monetary policy committee meeting that began today.
RBI today left the short-term lending (repo) rate to banks, and the cash reserve ratio (CRR) -- the amount of deposits banks have to park with RBI-- unchanged.
Leading economists today said the RBI decision to keep the key policy rates unchanged was on expected lines.
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