Sensex gallops 1,016pts on status-quo RBI policy; Nifty ends above 17,450

Rate sensitives' like auto, financials and real-estate shares logged smart gains in trade on Wednesday

Closing Bell

The bulls contiued to roar on the Dalal Street, as the key benchmark indices logged back-to-back strong gains today helped by a status-quo RBI policy by the Reserve Bank of India (RBI).

Shares of interest rate sensitive sectors such as financials including banks, housing finance companies (HFCs), real estate and automobiles were in demand, after the RBI kept interest rates unchanged for the ninth consecutive time on Wednesday. READ MORE

The BSE benchmark index, the Sensex, opened with a positive gap of more than 500 points on the back of encouraging overseas cues. The benchmark extended gains after the RBI policy outcome, and touched a high of 56,703 towards the end of the trading day. The Sensex finally ended with a solid gain of 1,016 points at 58,650. In the process, the BSE index has gained 3.4 per cent (1,903 points) in just two trading sessions.

The NSE Nifty surged to a high of 17,485, and ended 293 points stronger at 17,470.

Bajaj twins were the major gaines, Bajaj Finance surged 3.6 per cent, and Bajaj Finserv rallied 3 per cent. Maruti too jumped over 3 per cent towards the close. SBI, ICICI Bank, Sun Pharma, Asian Paints, Bharti Airtel, Tata Steel, Infosys and HCL Technologies were the other major gainers.

Reliance Industries also advanced 1.6 per cent to Rs 2,420, as the company announed its plan to set-up its first chemical plant JV in West Asia with TAZIZ for an investment of $2 billion.

Market Dashboard: Snapshot of key movers and shakers in trade today

The broader markets also finished with considerable gains. The BSE Midcap and Smallcap indices were up 1.4 per cent and 1.5 per cent, respectively. The overall breadth too was extremely bullish, with more than two advancing shares for every declining stock on the BSE.

Among sectoral indices, the BSE Auto index rallied 2.3 per cent and was the major per centage gainer. Rest of the prominent indices such as Energy, FMCG, Healthcare, IT, Bankex, Metal, Oil & Gas and Realty were up 1-2 per cent each.

In the broader markets, Reliance Industrial Infrastructure zoomed over 19 to hit a fresh 2-year high. The stock has gained 62 per cent in the last two trading weeks. READ MORE

Nykaa's market cap dipped below the Rs 1 trillion mark in intra-day trades, as the stock slipped 5 per cent on the BSE. The stock eventually recouped losses and ended nearly a per cent higher at Rs 2,172. READ MORE

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In the primary market, RateGain Travel Technologies IPO was subscribed up to 62 per cent as of 03:30 PM on Day 2 of the offer period. The retail quota had received bids of 3.32 times.

Shriram Properties IPO that opened for subscription today, was subscribed up to 74 per cent, with bids from retail investors up to 4.1 times.
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Markets at 02:30 PM

Live market updates: The key benchmark indices continue to hover near the highs of the day on unabated buying support. The BSE Sensex touched a high of 58,660, and was up XX points at 58,XX. The NSE Nifty had gained 276 points at 17,453.

Among the Sensex 30 shares, ICICI Bank, Infosys, HDFC Bank and Reliance Industries have contributed almost 50 per cent of the day's gains so far.

The broader markets have also logged smart gains, the BSE Midcap and Smallcap indices were up 1.2 per cent and 1.4 per cent, respectively. The overall market breadth too was extremely positive with gainers outpacing losers in the 2.6:1 ratio.

Among sectoral indices, the BSE Energy, IT, Telecom, Bankex, Auto, Metal and Realty indices were all up in the range of 1.5 per cent to 2 per cent.

The neighbouring Asian markets also ended on a bouyant note. Shanghai Composite and Nikkei had rallied 1.2 per cent and 1.4 per cent, respectively. Kospi gained 0.3 per cent, and Taiwan added 0.2 per cent. Hang Seng ended on a flat note, while Straits Times was down 0.2 per cent.

Meanwhile, markets in Europe have started trade on a mixed note. The FTSE 100 and CAC 40 were up 0.2 per cent and 0.1 per cent, respectively, while DAX 30 was down 0.2 per cent. Elsewhere in US, Dow futures were up 0.2 per cent, and Nasdaq up 0.5 per cent.
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Markets at Lunch (01:30 PM)

Live market updates: The key benchmark indices have extended gains on the back of continued buying support. The BSE Sensex was up 957 points at 58,591, and the NSE Nifty had gained 276 points at 17,453.

Bajaj Finance, Bajaj Finserv and ICICI Bank have rallied around 3 per cent each. SBI has jumped 2.5 per cent. HCL Technologies, Infosys, Asian Paints and Larsen & Toubro were the other major gainers.

PowerGrid Corporation and Kotak Bank were the only losers among the Sensex 30 stocks.

In the broader markets, Devyani International has touched a fresh all-time high on the back of a 13-per cent surge and heavy volumes. Brokerage firm Motilal Oswal has initiated coverage on the stock with a 'Buy' rating. READ MORE

Ramky Infrastructure has surged to a fresh 52-week high of Rs 241.60 on surging 15 per cent on the BSE on back of three-fold jump in trading volumes. The stock was up for the sixth day in a row. READ MORE

In the primary market, RateGain Travel Technologies IPO was was subscribed up to 57 per cent as of now on Day 2 of the offer. The retail quota had received bids of 3 times.

Shriram Properties IPO that opened for subscription today, was subscribed up to 61 per cent, with bids from retail investors up to 3.3 times.

Meanwhile, Star Health has cut the size of its initial public offering (IPO) to Rs 6,400 crore ($848.02 million) from Rs 7,249 crore earlier after a subdued response to the pulic offer. READ MORE
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Markets at 11 AM

LIVE market updates: The BSE Sensex and the Nifty50 indices were holding their across-the-board gains post the Reserve Bank of India's monetary policy outcome where the central bank maintained key interest rates to support economic growth. Governor Shaktikanta Das, however, said monetary policy is reaching an "inflection point".

The 30-pack Sensex was at 58,464 levels, up 830 points, and the Nifty50 was at 17,417, up 245 points.

In the broader markets, the BSE MidCap and SmallCap indices were up over 1 per cent each.

"The underlying message still remains one of growth gaining traction, but in need of policy support. While the RBI is likely to continue remaining behind the curve for now, the upside risks on inflation make an inflection in monetary policy trajectory inevitable. We see 100bp policy rate hike in 2022," said Dr. Aurodeep Nandi, India Economist & Vice President at Nomura.

Key highlights of RBI Monetary Policy

Rates: The Monetary Policy Committee held the repo rate steady at 4.00 per cent and the reverse repo rate at 3.35 per cent.

GDP Growth: The MPC maintained its GDP growth projection of 9.5 per cent for the current financial year.

Inflation: CPI inflation was projected at 5.3 per cent for 2021-22, 5.1 per cent in Oct-Dec 5.7 per cent in Jan-Mar of 2021-22, with risks broadly balanced.

Liquidity: Governor Shaktikanta Das said that the central bank will continue rebalancing liquidity conditions and the size of variable rate reverse repo operations would be increased to Rs 6.5 lakh crore on December 17 and subsequently to Rs 7.5 lakh crore on December 31.

Digital payments: RBI will release discussion paper on charges on digital payments in India, will launch UPI-based payment products for feature phone users.

UPI: The RBI will increase UPI cap on gilts and IPOs to Rs 5 lakh.

Banks: Will allow banks to make one-time pre-payment w.r.t Targeted Long Term Repo Operations announced.

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Markets at 10:00 AM

LIVE market updates: Headline indices zoomed to the day's high level after the Reserve Bank of India kept interest rates unchanged for the ninth consecutive time on Wednesday. The policy repo rate remains unchanged at 4 per cent and the stance remains accommodative. The reverse repo rate also remains unchanged at 3.35 per cent.

In a policy address, governor Shaktikanta Das said the MPC was of the view that sharp reduction in new Covid-19 cases and increase in the pace of vaccination are resulting in sustained economic recovery, including contact-intensive sectors. 

Against this backdrop, the BSE Sensex was at 58,472, up 838 points, while the Nifty50 was at 17,413.

Bajaj Finance, Bajaj Finserv, HCL Tech, ICICI Bank, RIL, and SBI were the top gainers on the Sensex index.

Rate sensitive stocks such as banks were ruling higher. The Nifty Bank index was up 1.5 per cent, and was comfortably trading above the 37,000-mark.  Auto and Realty indices, meanwhile, were up 1 per cent.

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Opening Bell

LIVE market updates: The benchmark indices started firm on Wednesday, ahead of the Reserve Bank of India's monetary policy outcome. The six-member monetary policy committee (MPC), headed by Governor Shaktikanta Das, is likely to maintain key interest rates for a ninth straight meeting, retaining an accommodative stance amid the threat surrounding Omicron coronavirus variant.

The S&P BSE Sensex was up 642 points, or 1.11 per cent, at 58,276 levels in early deals while the Nifty50 index was back above the 17,350-mark. The 50-apck index gained 192 points or 1.12 per cent.

49 of the 50 Nifty constituents were trading in the green, led by ONGC (up 2.5 per cent), Infosys, Wipro, ICICI Bank, Reliance Industries, Indian Oil Corporation, and Bharti Airtel. The only loser was Divis Labs, down 0.15 per cent. 

The broader MidCap and SmallCap indices, meanwhile, rallied up to 1 per cent. 

Individually, shares of Hindustan Zinc added 1.5 per cent after the Vedanta group company's board has approved an interim dividend of Rs 18 per equity share for FY22, and the record date for the same is December 15.

Besides, JSPL also advanced 1.5 per cent after the company said that steel production in November 2021 increased by 10 per cent YoY to 6.74 lakh tones

Among sectors, all the key indices were trading with a positive momentum. The Nifty IT index was up 2 per cent while all others gained between 0.5 per cent and 1.4 per cent.

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Pre-open session

LIVE market updates: Frontline indices extended Tuesday's rally on Wednesday with modest gains in the pre-open session.

The BSE Sensex advanced over 400 points in the pre-market session, at 58,058 level. The Nifty50 was at 17,274, up 97 points.

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LIVE market updates: Benchmark indices look set to open higher ahead of the Reserve Bank of India's monetary policy decision. At 8:15 AM, the SGX Nifty was at 17,326 compared with Nifty's spot close of 17,177 on Tuesday.

That apart, positive news flow around market heavyweight Reliance Industries, along with firm global set-up may support the sentiment.

Primary market
Shriram Properties' IPO will open for subscription today. The company plans to raise up to Rs 600 crore by way of public issue of equity shares in the price band of Rs 113 to Rs 118.

RateGainTravel Technologies IPO, meanwhile, got off to a slow start as the issue was subscribed only 41 per cent at the end of Day 1 of the issue on Tuesday. The retail portion was subscribed 2.23 times.

Global cues

The US stocks rallied for the second straight day on Tuesday as fears of Omicron continued to recede and investors bet on a Santa (December end) rally. Nasdaq zoomed 3 per cent led by frenzied buying in tech shares. The S&P 500 also surged 2 per cent and Dow Jones gained 1.4 per cent.

Meanwhile, Asian markets this morning were also supportive. The Nikkei and Kospi had jumped over a per cent each. Taiwan had added 0.8 per cent. Shanghai and Hang Seng were up 0.1 per cent each. Straits Times, however, was down 0.3 per cent.