Sensex ends lower, Nifty below 10,500 as RBI keeps repo rate unchanged
All that happened in the markets today
 "Markets, Buy, Sell, Stocks")
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Benchmark indices ended lower on Wednesday after Reserve Bank of India kept the key policy rate unchanged at 6 per cent for the third consecutive time in view of firming inflation. Reverse Repo rate was also maintained at 5.75%.
The Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel had last reduced the benchmark lending rate by 0.25 percentage points to 6 per cent last August, bringing it to a 6-year low.
In its December review, the MPC had kept the benchmark interest rate unchanged on concerns of a possible price rise but had left the door ajar for a rate cut in future.
The Central bank revised FY18 GVA Growth forecast to 6.6% from 6.7%. It sees FY19 GVA Growth at 7.2%.
Asian markets were mixed on Wednesday. Stocks in Tokyo ended about where they’d begun, while Hong Kong’s were down modestly late in the day and South Korean shares finished lower.
10:13 AM
Motilal Oswal, Chairman & MD, MOFSL on RBI Monetary policy
RBI has two challenges to tackle with, one is the transmission of lower interest rates in the economy through banking system so that growth can be incubated at this juncture and second is to protect economy from global interest rates tightening started by USA.
The second challenge is more difficult than the first one as transmission of lower rates can happen with the improvement of asset quality of the banking system. The international challenge is more dynamic and needs monitoring.
Markets were expecting no change in the policy stance and will be considered non event, in the commentary RBI said, they wants to protect the early signs of recovery and keep economy conducive for the growth. This is a positive stance and goes well with broad market sentiments. We think these dips should be used to further build the position in the equity as the "earnings revival" is around the corner.
10:09 AM
Nifty Bank 0.5% post RBI policy
10:05 AM
Sectoral Trend
10:04 AM
Sensex losers and gainers
10:03 AM
Markets at Close
Benchmark indices were trading flat after Reserve Bank kept the key policy rate unchanged at 6% for the third consecutive time on Wednesday in view of firming inflation. Reverse Repo rate was also maintained at 5.75%
The S&P BSE Sensex ended at 34,082, down 113 points while the broader Nifty50 index settled at 10,476, down 21 points.
9:54 AM
Rate sensitive shares trade mixed as RBI keeps repo rate unchanged at 6%
Shares of rate sensitive sectors such as banks, automobiles and real estate were trading mixed after the Monetary Policy Committee (MPC), headed by Reserve Bank of India (RBI) Governor Urjit Patel, maintained status quo on interest rates.
The RBI keeps repo rate unchanged at 6% and reverse repo rate at 5.75%. Repo rate is the rate at which the RBI lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation. CLICK HERE FOR FULL STORY
9:41 AM
Market Check
| Index | Current | Pt. Change | % Change |
| S&P BSE SENSEX | 34,171.42 | -24.52 | -0.07 |
| S&P BSE SENSEX 50 | 10,945.80 | -2.50 | -0.02 |
| S&P BSE SENSEX Next 50 | 34,112.98 | +238.00 | +0.70 |
| S&P BSE 100 | 10,864.61 | +9.86 | +0.09 |
| S&P BSE Bharat 22 Index | 3,705.05 | +21.55 | +0.59 |
9:40 AM
COMMENT ON RBI POLICY: Vidya Bala, Head of Mutual Fund Research, Fundsindia.com
Global inflationary trends and rate hikes besides RBI's hawkish stand all point to a flat to higher yield environment. For debt fund investors, shift to income accrual opportunities based on their time frame would be the strategy going forward. While ultra-short-term and short-term debt would fit investors with less than a 2 year time frame, long-term income funds and limited exposure to credit opportunity funds may fetch superior returns for those with a 3 plus-year time frame. Categories such as dynamic bond funds will likely further reduce their duration, if they have not already, to reduce any impact from an yield up move and instead focus on accrual
9:37 AM
RBI Policy
RBI Deputy Governor NS Vishwanathan: Harmonising, not equalising marginal cost loan rate, base rate; synced MCLR, Base Rate for easier transmission
9:35 AM
RBI Policy
RBI Deputy Governor Viral Acharya: RBI's goal is not to manage the price of any long-term asset market
9:34 AM
RBI Policy
RBI Deputy Governor Viral Acharya: RBI Continues to see surplus liquidity in the system; RBI's liquidity ops driven by monetary policy objective & market conditions; not aimed at determining asset prices
9:32 AM
RBI on liquidity conditions
During the two weeks beginning December 16, 2017, the Reserve Bank injected average daily net liquidity of ₹ 388 billion into the system. For December as a whole, however, the Reserve Bank absorbed ₹ 316 billion (on a net daily average basis). As the system turned into deficit again in the fourth week of January, the Reserve Bank injected average net liquidity of ₹ 145 billion. For January, on the whole, the Reserve Bank absorbed ₹ 353 billion (on a net daily average basis).
(Source: RBI statement)
9:30 AM
RBI Policy
RBI Governor Urjit Patel: Oil prices can potentially soften from current levels; Union Budget 2018 plan on MSP, custom duty weak to hit inflation; PSB's recapitalisation to aid fresh investment
9:30 AM
RBI on inflation
The December bi-monthly resolution projected inflation in the range of 4.3-4.7 per cent in the second half of 2017-18, including the impact of increase in HRA. In terms of actual outcomes, headline inflation averaged 4.6 per cent in Q3, driven primarily by an unusual pick-up in food prices in November
(Source: RBI statement)
9:29 AM
RBI Policy
RBI Governor Urjit Patel: Nascent recovery needs to be carefully nurtured & growth put on a stable path
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First Published: Feb 07 2018 | 3:30 PM IST
