Equity benchmarks were trading on a cautious note awaiting RBI policy meet outcome.
Equity market benchmarks opened in the green on Wednesday, but pared gains ahead of the outcome of the two-day RBI policy meet.
At 10:55 hours, the BSE Midcap index was 0.99 per cent up at 16,443, while the BSE Sensex was 0.08 per cent up at 34,224.
Shares of Punjab National Bank, HDFC Bank and Bank of Baroda were trading down in the index.
The 30-share Sensex was trading 161 points up at 34,356, while the 50-share Nifty index was 66 points up at 10,565 around 10:15 am (IST).
Most active stocks in terms of value helps investors to identify the stocks with highest trading turnover during the day.
At 10:10 am (IST), the BSE Sensex was up 128 points, or 0.37 per cent, at 34,324. The NSE Nifty50 was 47 points, or 0.44 per cent, up at 10,545.
We need to reverse the sentiment that is making people postpone investments due to high interest rates.
Growth has largely bottomed out, it said. But India has yet to benefit from the synchronised pick-up in global demand.
Nifty futures on the Singapore Exchange were trading 32.50 points, or 0.30 per cent.
Recently, Citigroup Global Markets had cut its December 2018 target on Sensex to 35,700.
Interest rates may remain soft even if the central bank were to withdraw its accommodative stance and tighten monetary policy, which will be reviewed on Friday.
The probability of a rate cut in March is now increasing, especially after the weak IIP numbers and GDP, says Phani Shankar.
Dharmesh Pancholi, Investment Advisor, in an interview with ET Now says that RBI policy and Budget are the two events that will influence markets.
Oil prices opened firmly on Monday, with Brent hovering close its highest in nearly four years.
This week, ECB economic bulletin and preliminary inflation number will be important to watch.
Nifty wiped out the gains of previous two sessions and formed a bearish engulfing candle.
PNB today said there is an upward pressure on interest rates and it would take a call revising them after RBI's annual policy review next month.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,567.51 crore on net basis yesterday.
The RBI withdrew a special facility making available funds from banks to MFs and finance companies. Blog: RBI plays defensive or should that read chicken?
In an interview with ET Now, D Sarkar, CMD, Union Bank of India, talks about the asset quality concern and their restructuring plans.
Real estate developers and consultants on Tuesday said RBI's decision to hike policy rates by 25 basis points will affect the sentiment of the property market.
Oriental Bank of Commerce Executive Director S C Sinha, said that banks may have to increase the rates in case credit offtake goes up.
The benchmark bond yield surged to as much as 8.03 per cent on Friday pulling prices down.
"The rate cycle does help that sentiment. So indirectly it does benefit the investment cycle, but directly it is not that significant," says Gautam Chhaocharia.
The trader sells one 10,950 call and simultaneously purchases a 10,800 call.
"The markets will have to watch what the RBI does on the 30th October. Clearly, if there is a rate cut, it will give a boost to the market", Nilesh Shah said.
The maximum gain happens if Bank Nifty expires at 26,300 or at 26,200.
If the central bank springs any ugly surprise, it is expected to push up yields.
Gilt yields rose in late trade on Monday, after the central bank said inflationary pressures in the economy remain, making traders less hopeful about any policy easing on Tuesday.
ET.com Mutual Funds spoke to Mahendra Jajoo, Head - Fixed income - Mirae Asset Global Investments, to find out what were the key points of yesterday's RBI policy.
ET Now caught up with Taimur Baig, Director, Asia Economics, Deutsche Bank, for his views on the RBI policy review.
A large majority of India Inc thinks the Reserve Bank will leave the key policy rates and the mandatory cash balance requirements of banks unchanged at its mid-quarter review on Thursday.
It appears that we are currently in a midst of a structurally rising interest rate regime.
A top government economic advisor said industry is expected post a recovery in October, else the RBI will have to change its tight money policy stance.
It does look like so that liquidity picture once it tightens we will see the overnight rate taking up a little bit more from here: Neeraj Gambhir, Nomura Capital India
RBI's second-quarter review of its monetary policy endorses the continuing growth momentum, despite uncertainties in the global economy, says ICICI Bank chief Chanda Kochhar.
Industry on Tuesday said the RBI measures towards lower interest rates will reduce the credit cost, but the central bank should have gone in for deeper cuts in policy rates.
Incrementally we may see a couple of more cuts in this financial year. However, to see a rate action in the next policy meet on 17th September seems unlikely.
The Planning Commission on Thursday said there was no co-relation between key policy rates that the apex bank has raised and inflation.
Bond yields and overnight indexed swap (OIS) rates on Tuesday eased mirroring US yields, on renewed worries about European banks' capital reform and the sector's recent stress test.
Rupee strengthened nearly 25 paise to 63.82 against dollar to its highest level since August 2015.
Choice Broking said, “Based on the current technical set up and indicators, we continue to remain bearish in MCX Gold.”
The measures what RBI has taken now are welcome measures. However, everybody has to take some call and not RBI alone.
The consumption story remains very high for rural India and can be bet on next 3-7 years, says Mehta.
Inflation projected to be in the range of 5.1-5.6 per cent in the first half of 2018-19. The central bank kept the repo rate unchanged at 6 per cent.
Benchmark indices opened on a higher not, as investors felt that recent selloff was excessive.
The RBI's policy stance is currently "neutral".
The index made a smart rebound, as the bulls tried hard against the roaring bears.
Poll verdict probably means no further steps like note ban will come now, says Shenoy
As far as interest rates are concerned, I do not expect any change.
“Govt must take extreme care in how it proceeds further in relationship with RBI.”
Despite global turmoil, RBI continued to tighten monetary policy until July, Moody's said. Gainers: BSE ( A, B ) | NSE | Losers: BSE ( A, B ) | NSE | 52 Week: High, Low
The Gujarat election outcome is very important for the market and country as a whole, says Choksey
Let’s check out what might influence Dalal Street all through the day.
Nifty50 closed marginally higher on Monday to end its four-day losing streak.
BA Prabhakar, CMD, Andhra Bank says the RBI may cut policy rates in April, but lending rates will decline after six months as liquidity is likely to remain tight.
SMTB had purchased the stake in Reliance Capital (RCAP) when it had applied for banking license.
"There is very little urgency for RBI to do anything and a pause is likely in Dec and even February."
The Planning Commission on Tuesday said the Reserve Bank's decision to tighten the money supply will not have any impact on growth and the economy would do better than 8 per cent expansion rate projected by the bank.
Market gains remained lacklustre as a surge in oil prices and rupee’s fall spoiled the mood.
Forex experts advise exporters to hedge future receivables at the best possible rates. Gainers, losers & recommendations | Top 5 picks | Mid-term picks
Here’s a lowdown on top macro triggers that may move market on Monday
Overseas investors sold Rs 7,729 crore worth of debt papers and equities in April. In the past few days, they have been selling bonds in particular.
Bank of Baroda and Union Bank of India today said they would take a call on slashing interest rates in specific segments once the RBI has announced the mid-term policy review.
A lot more needs to be done in terms of creating manufacturing facilities or skill development.
"The rupee impact is not just linked only to the rate hike. There are too many variables "
Maintaining growth rate is not very challenging for us, says Iyer
One key trend that we are seeing is the shift away from the unorganised to the organised segment and this is playing through in sectors where the unorganised component is fairly large, says the Kotak MF V-P
Consumer prices rose 5 per cent in June after a 4.87 per cent increase in May
One has to be extremely selective within the IT space and buy into a basket of IT stocks, says Mehta.
India’s consumer prices rose 5 per cent in June from a year earlier.
"We are focusing on protection products, both in the group and individual segments. These accounts for 22% of our total premiums," says Murlidhar.
Bond yields eased on Wednesday but were off the day’s low as uncertainty on policy moves and profit booking surfaced in late trade.
Bank loans continue to grow at a slow pace. Though in absolute terms, loans, in the first quarter of (Q1) 2008-09, have done better than the previous two comparable quarters, the Q1 growth (Y-o-Y) has slowed down.
"20% earnings growth for top companies put together on a consolidated basis this year looks nice."
India’s 10-year bonds fell the most in a week on speculation the Reserve Bank of India will act to curb money supply at its policy meeting
Gilt funds are returning negative returns in one-, three- and six-month periods.
Lending rates might move upward in the months ahead as credit growth picks up, but banks may take a cue from the RBI policy before effecting any change in their rate-structure, a top banker on Monday said.
The BSE Bankex has returned 4.59% over the past two weeks, outpacing the broader index, show data.
Real estate sector is looking for some encouragement to boost funding and demand in the sluggish housing segment.
All 30 stocks in the index were trading in the green with Tata Motors being the top performer.
From the high point of the day, the BSE benchmark Sensex plunged over 500 points.
Tune in for market news, views and cues.
Jhingan says the asset side of bank balance sheets cannot be looked at in isolation.
After five years of the NDA-1, we see that Nifty has simply mapped global markets, says Jayakumar.
Despite some recovery, the Nifty index failed to surpass a big negative candle of 9,921-9,714.
Following the RBI move the rate-sensitive stocks, mainly banking, saw massive selling pressure. HDFC Bank plummeted by 7.25%.
In an interview with ET Now, Dr. Surjit Bhalla, Chairman, Oxus Investments, gives his views on inflation and the expected rate hike. Excerpts:
Kotak said RBI might consider easing in policy stance if inflation surprises below 4%.
The RBI is still grappling with more than $60 billion in excess liquidity after the government’s crackdown on high-denomination notes last year.
A marginal cool off in terms of narrow consolidation can give pullback for acceleration.
NTPC fell 1.31 per cent to Rs 177.45 on BSE. Power Grid declined 1.03 per cent to Rs 200.80.
Commitment to managing borrowing prog in a non-disruptive manner to mkts should give confidence, says ICICI. Gainers: BSE ( A, B ), NSE | Losers: BSE ( A, B ), NSE
Rise in OI at the 10000 put coincided with the fear gauge — India Vix — rising 9% to 14.79.
Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service