The Dow Jones Industrial Average rose 20.0 points, or 0.07%, at the open to 29989.56. The S&P 500 rose 4.2 points, or 0.12%, at the open to 3670.94, while the Nasdaq Composite rose 22.1 points, or 0.18%, to 12399.322 at the opening bell.
“The current momentum in the IPO market is being driven by ample liquidity from multiple sources. In addition to FII flows, domestic investors are flush with liquidity from gains in frontline stocks”, said Nalin Kumar, head investment banking, IDBI Capital.
MPC’s concern that price pressures are spreading, and the stated need for monitoring threats to price stability to anchor macroeconomic and financial stability, suggest that an extended pause is likely, despite its desire to nurture the nascent economic revival.
RBI believes rural demand, which is already a silver lining in times of crisis, is expected to strengthen further, while urban demand is also gaining momentum.
Here are the top gainers in the real estate sector
Price as on 04 Dec, 2020 01:44 PM, Click on company names for their live prices.
Airline stocks on a roll as Govt revises cap on capacity
Price as on 04 Dec, 2020 01:26 PM, Click on company names for their live prices.
Keeping demand stimulated to maintain the current momentum would be critical for continuous acceleration of the economic recovery. Recently reviving market performance indicators, despite all odds and supported by government and central bank interventions, have enthused a great sense of relief across real estate markets in the country. Home loan interest rates, which are at the lowest, have played a key role in rekindling the latent demand in housing market by nudging home buyers to make purchase decisions even during the pandemic. RBI’s decision to keep the rates unchanged will keep the momentum of demand intact to provide the much needed stability , as even while there is recovery in the economy, it is still fragile and highly volatile.
- Shishir Baijal, Chairman & Managing Director, Knight Frank India
Yields are down marginally post policy, as the bond markets welcomed the status quo rate action and unchanged liquidity conditions for now. However, lack of incremental monetary room, sticky inflation, higher borrowing needs and an economic rebound lowers the odds for outperformance at the long end. The short (1-3 years) and mid categories (3-5 years) remain the favoured segments for now.
- Kumaresh Ramakrishnan, CIO-Fixed Income, PGIM India Mutual Fund
Select realty names surge post RBI policy meet
Price as on 04 Dec, 2020 11:46 AM, Click on company names for their live prices.
The extension of the accommodative stance to the next financial year has cheered the market. However, the fear of a rising inflation rate is evident in the RBI governor's address. The supply-side issues, demand recovery, and inflow of foreign funds could fuel retail inflation.
- Deepthi Mathew, Geojit Financial Services
The critical thing to notice is that RBI has indicated that dividends would not be distributed by commercial banks, which would act as a substitute for recapitalisation and provide additional security to depositors. The communication from RBI that it would take necessary steps to easy liquidity as and when required is reassuring. The other important steps of increasing contactless card transaction to Rs 5,000 and of making RTGS 24 x 7 would increase the ease and relevance of digital transactions.
Financial stocks lead Sensex rally after RBI monetary policy. Here are top stocks leading the market rally
RBI’s projection of GDP growth in line with market’s optimism: VK Vijayakumar, Geojit Financial Services
Status quo in policy rates and policy stance are on expected lines. The revision of FY21 GDP growth rate to -7.5 percent is positive. RBI’s projection of GDP growth to be positive for H2 is in line with market’s optimism. Emphasizing the multi-speed upturn in economy, the central bank has announced the extension of on tap TLTRO to stressed sectors. There is no market moving announcement in the policy, but the overall tone is positive, says VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Accommodative stance to ensure that ongoing recovery continues: Ashish Shanker, Motilal Oswal Pvt Wealth Management
RBI policy was on expected lines. They have prioritized growth over inflation. An accommodative liquidity stance will ensure access to liquidity will not be a challenge and the ongoing recovery continues to gather steam. This will help push through govt borrowings in a year where the revenues are under pressure. Guidance is better than earlier on growth and flows. This will be positive for markets, says Ashish Shanker, Deputy MD and Head of Investment, Motilal Oswal Private Wealth Management.
We need to alleviate scars left by the pandemic and revive the economy: RBI Governor Shaktikanta Das
RBI to issue framework for bank customer grievance redressal
Fiscal stimulus move to support growth-generating investment: RBI
RBI to allow regional rural banks to access LAF window, MSF, call market. It has also hiked limit for contactless card transaction to Rs 5,000
RTGS to be made 24x7 in the next few days
Expect boost to corporate bonds and money markets on the back of new guidelines announced: RBI Guv
RBI Guv: Banks to retain FY20 profits, not pay out dividend; to put in place criteria for declaration of dividends by NBFCs
RBI to review guidelines on Credit Default Swaps
GDP growth seen 0.1% in Oct-Dec, 0.7% in Jan-March; FY21 GDP growth seen at -7.5% vs -9.5% earlier
- Shaktikanta Das, RBI Governor
RBI Governor at policy meet
Outlook for inflation has turned adverse in last 2 months
Mindful impact of RBI FX operations on liquidity
On-Tap TLTRO to be extended to cover other stressed sectors
RBI Guv: Real GDP growth for FY21 projected at -7.5%
RBI Governor: To use OMOs, operation twist and various other instruments at right time to ensure that ample liquidity available
Sensex up over 300 points after RBI keeps key rates unchanged. This is how the 30-pack Sensex stocks are faring
RBI Guv: Inflation to remain elevated with some relief in winter months. Nascent signs of recovery has been visible in second half of FY21
RBI continue with accommodative stance at least into next financial year, says the RBI Governor
Government borrowings have been smooth so far; seek to quickly recoup employment, output losses: RBI Guv
Banks and NBFCs should give highest priority to governance: RBI
RBI Guv: Remain committed to preserve financial stability; MPC voted unanimously to hold rates steady
Inflation a constraint for monetary policy at this point, but near-term financial stability risk has been contained: RBI Guv
Shaktikanta Das: MPC to monitor all threats to price stability; signs of recovery far from being broad-based
RBI keeps reverse repo rate unchanged at 3.35%
RBI to continue with accommodative stance as long as necessary, says Governor Shaktikanta Das
Keeping a close eye on inflationary pressures and reliable surveys of inflation expectations together with the pace of economic recovery are going to be really important as we go into 2021, says Jim O'Neill, Chairman, Chatham House.
Here are the top gainers in tourism and hospitality sector
Price as on 04 Dec, 2020 09:48 AM, Click on company names for their live prices.