Weakness in global markets coupled with domestic rate hike fears are expected to keep investors to the sidelines this week.
Rise in OI at the 10000 put coincided with the fear gauge — India Vix — rising 9% to 14.79.
The RBI had factored in the cut in benchmark interest rate by the US Federal Reserve, in the quarterly monetary policy, finance minister P Chidambaram said.
"These are likely to prod the MPC to consider a 25 bps rate cut on Wednesday, followed by another cut in 1Q17," DBS said in the research note.
The bond rally picked up steam on Tuesday, with the yield on the benchmark 10-year bond rallying to a one and a half month low of 6.18%.
Stocks of banking firms, including SBI and ICICI, on Tuesday dipped as much as four per cent in the morning trade on the Bombay Stock Exchange ahead of the RBI's annual monetary policy to be unveiled later in the day.
India's consumer price inflation inched up to 3.65% in February from 3.17% in January as food prices started rising.
Stating the Reserve Bank's credit policy to be "on expected lines", bankers said the RBI could cut key policy rates and ratios in the months to come with demand for credit picking up and inflation remaining subdued.
When policy rates were reduced, the mean lending rate went down by 200 bps, a research by RBI showed.
The index formed a bullish candle on the daily chart and managed to recover by forming a piercing pattern, as it recovered half the losses that it had suffered in the last session.
Considering the change in RBI's policy stance and lower FD rates, investors should moderate their expectations and consider investing in these debt funds.
On BSE, 1,119 stocks were advancing whereas 1,411 stocks were lagging.
MCX Gold was up 0.21 per cent, or Rs 59, at Rs 28463 per 10 gram.
The domestic currency settled the day with a modest 4 paise loss against the US dollar.
BSE Sensex settled 60 points up at 32,575, while Nifty closed at 10,114.65, up 38 points against its previous close.
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Traders are slowly getting confident about the sustainability of the ongoing rally above 10K.
The RBI retained GDP growth for 2018-19 at 7.4 per cent as in the April policy.
Let’s check out what all might matter to Dalal Street on Tuesday.
Let’s check out what all might matter to Dalal Street through Monday.
The Met department has projected a third successive normal monsoon this year.
Oil prices which crossed $80 per barrel recently helped hasten outflows from India during the month.
Amidst the uncertainty, a handful of stocks such as ACC, Sintex Industries, Mphasis, Hikal have seen consistent increase in stock prices and delivery volumes.
For now, technicals suggest that Nifty would make an up-move rather than go the other way.
After a series of cut in CRR the amount banks need to keep with the central bank RBI is scheduled to announce fresh measures in its review on October 24.
Forex dealers said a higher opening in domestic equity markets supported the rupee, but strength in dollar against other currencies capped the gains.
Goldman Sachs says the probability of a rate cut at RBI’s Oct 24 policy meeting has increased, with India’s Industrial Production Index growth for August falling to a low of 1.3% and WPI inflation easing to 11.8 per cent.
The funds raised can be used for direct investment overseas in joint ventures and wholly-owned subsidiaries, or even in group companies.
The RBI chose not to revise the policy rates. Still small and mid-sized banks may feel the pressure on their margins as they strive to boost their deposit base.
On the options front, maximum Put open interest stood at 9,800 followed by 9,700.
The overall general liquidity scenario has to be more coordinated with the general liquidity aspect.
The overall general liquidity scenario has to be more coordinated with the general liquidity aspect.
Expect a modestly positive start on Thursday, but 9,915-9,945 will continue to pose resistance.
Forex trading sentiment turned little shaky ahead of the RBI policy meet outcome on Wednesday.
Nifty has to continue to hold above 9,820 to extend the bounceback towards 9,900 and 9,928
On the NSE, 1152 stocks were advancing, compared with 419 stocks declining and 420 stocks remaining unchanged.
The market is likely to remain rangebound for most of Wednesday ahead of RBI's policy outcome.
If oil falls to $70-75, then it would be a big positive for the market: S Krishna Kumar.
Most analysts believe RBI may cut policy rate by 25 basis points when it concludes its two-day policy review on Wednesday.
The Union Cabinet on June 28 approved recommendations of Seventh Pay Commission with 34 modifications which will impose an additional annual burden of Rs 30,748 crore on the exchequer.
Both countries are part of the so-called ‘Fragile Five’ club.
The RBI committee changed the stance to hawkish, to focus on ‘calibrated tightening’.
The government’s gross direct tax collection rose 16.7% to Rs 5.47 lakh crore.
The rupee has underpreformed other Asian currencies and is down by over 12% for this year.
Here are factors that both new and existing borrowers should base their borrowing decisions on, regardless of the stance the RBI takes in its policy decisions.
D&B expects the CPI inflation to be in the range of 1.3- 1.5 per cent and WPI inflation to be in the range of 1.3-1.5 per cent during June 2017, respectively.
Just stay out, wait for the policy and then possibly take a decision.
Indian Bond yields continued its bearish run much to the dismay of the government and the RBI.
The Reserve Bank, which is in an unenvious position, thanks to high inflation, is bound to take a tough stand in its monetary policy which will be unveiled on April 29, experts said.
Bankers on Thursday said they would assess the liquidity situation and wait till RBI's monetary policy before taking any decision on interest rates.
Private sector lender, ICICI Bank, would wait for signals from the Reserve Bank's monetary policy statement before taking a call on its interest rates, a top bank official said.
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ET takes a look at domestic and global triggers for the Indian market in the coming year.
The nervousness ahead of the crucial Reserve Bank of India's policy outcome was quite evident. Traders preferred to stay on sidelines on Tuesday.
Indian industry today welcomed Reserve Bank's annual credit policy that contained measures to increase liquidity in the system, saying cash availability was a key concern.
Hailing RBI's monetary and credit policy, Finance Minister P Chidambaram on Tuesday said it will not hamper growth and the investment momentum will continue despite pressure on price level.
An IRF contract is an agreement to buy or sell a debt instrument at a specified future date at a pre-determined price.
Companies cancel issues worth more than Rs 5,000 crore as bidders increasingly look for higher yields from investment.
Bond market is having a dry spell as the demand remains muted amid uncertainties over rate actions.
The IRF contract is based on 6.84 per cent central government security maturing on December 19, 2022, and will be available for trading from December 30.
The domestic market is slowly factoring in the muted outcome, if any, from the Gujarat elections.
The IRF contract is based on 6.84 per cent central government security maturing on December 19, 2022, will be made available for trading from December 30, this year, NSE said in a circular.
The Reserve Bank of India has left key policy rates unchanged in its policy review today.
MSCI's broadest index of Asia-Pacific shares outside Japan inched down 0.2 per cent.
Decline in services PMI and lower GDP growth forecast by Fitch impacted market sentiment.
Let’s check out what all might influence Dalal Street all through Monday.
"In our portfolio, in terms of corporate banks, we have shifted from underweight to neutral"
Benchmark indices posted their single biggest fall in a day since September 27. The Sensex fell 453.41 points, or 1.35%, to close at 33,149.35.
According to official figures, retail inflation jumped to a five-month high of 3.81 per cent in March, while inflation at the wholesale level eased to 5.7 per cent in March.
The RBI's Monetary Policy Committee (MPC) today decided to reduce the repo rate -- at which it lends to banks -- by 0.25 per cent to 6 per cent.
Nifty has been respecting its rising support trend line by connecting the recent swing lows.
Two large corporate houses are seen buying the local unit, dealers said.
Nifty has to continue to hold above 10,050 to witness a upward move towards 10,200 & 10,250.
Let’s check out what all might influence Dalal Street through the day.
Shares of ITC, Idea Cellular, BEL, ICICI Bank, Hindalco Inds, SBI and BHEL were among the most traded securities in the afternoon trade.
The local currency on Wednesday hit a fresh 17-month high of 64.87 by gaining 16 paise against the US dollar on heavy selling of the American currency by banks and exporters.
ET.com Mutual Funds spoke to Abhiroop Mukherjee, Associate Vice President, Fixed Income at Motilal Oswal AMC, about his expectations from the monetary policy review and its impact on debt MFs.
“The USDINR spot is likely to trade in a rangebound manner," said Angel Broking.
Accumulate cement stocks on dips in the coming week, says Swapneel V Mantri, Sushil Finance.
The ET Wealth Edition – 13 Mar 2017 Delhi, 12 March 2017 The ET Wealth edition of March 13, 2017 will focus on last minute tax planning. Taxpayers often comm...
Call money rates ruled at around 7.75-8% last week. Demand remained modest despite a scheduled auction of Rs 5,000 crore and was adequately matched by available supplies. Consequently, call rates were steady.
The rupee's rapid appreciation, an attractive real-interest rate regime and tight inflation management have led to large inflows into Indian bonds since January 1 this year.
India's 10-year yields may rise to as high as 6.90 percent by December.
In the 22 months from May 2015 to December 2016, corporate debt has experienced outflows in 17 months,” said Nomura report.
Now, it has to continue to hold above 9,650 to extend the up move towards 9,700 and 9,750.
9,600 would now be critical to watch, as traders geared up for the outcome of RBI’s meet.
Some fund managers believe mid cap stocks as a whole may not un derperform large caps.
The five-member panel also proposed in the report that the banks adjust the key criteria used to set their lending rates once a quarter, rather than the current once a year.
G-sec yields have firmed up ~40 bp post the RBI policy meet and 10-year G-sec, now at 6.8%, is at a higher level as compared to 31 Dec 2016.
A lowdown on top macro triggers that may move market on Friday.
RBI is expected to stay put on the repo rate in its upcoming monetary policy next month because of rise in inflation -- both wholesale and retail.
The two-day rate-setting meeting of RBI’s Monetary Policy Committee (MPC) is scheduled to conclude later on Wednesday.
Let's check out what all might matter to Dalal Street through the day.
The brokerage has a base case (50% probability) target for BSE Sensex at 30,000, a bull case (30% probability) of 39,000 and a bear case (20% probability) of 24,000.
“On average outstanding receivables basis, sequential revenues have increased.”
Here is a list of top stocks that will be in focus in today's trading session.
Bond prices rose ahead of RBI’s annual policy statement scheduled on Tuesday. Yields on the benchmark 10-year government bond fell to one and a half month lows on Monday.
The gap between benchmark bond yield and policy rate has widened to 70 bps from 52 bps.
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