MARKET WRAP: Sensex ends 250 pts lower as RBI maintains status quo on rates

The benchmark indices settled over 0.5 per cent lower on Wednesday even as the Reserve Bank of India (RBI) kept the repo rate and reverse repo rate unchanged at 6.50 per cent and 6.25 per cent respectively, in its bi-monthly monetary policy.

The S&P BSE Sensex ended at 35,884, down 250 points or 0.7 per cent, while the broader Nifty50 index settled at 10,783, down 87 points or 0.8 per cent.

Among sectors, the Nifty Metal index settled 3.7 per cent lower weighed by Jindal Steel and Power Hindalco and Tata Steel. Nifty Auto index, too, slipped 2.3 per cent due to a fall in Bharat Forge and Tata Motors. The Nifty Bank fell 0.6 per cent dragged down by IndusInd Bank, YES Bank and ICICI Bank.

In the broader market, both the S&P BSE MidCap index and the S&P BSE SmallCap index fell 1.2 per cent each to settle at 14,914 and 14,338 respectively.

RBI Monetary Policy

As was widely expected, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Wednesday kept the key repo rate unchanged at 6.50 per cent. The reverse repo rate also stands unchanged, at 6.25 per cent. The statutory liquidity ratio (SLR), meanwhile, was cut by 25 basis points to 19.25 per cent from January 1, 2019. The central bank also said that SLR would be reduced by 25 basis points every quarter until it reaches the 18 per cent level. It was RBI's fifth bi-monthly monetary policy meet of the financial year 2018-19. READ MORE

Global Markets

Asian stocks slid on Wednesday, dragged down by Wall Street’s tumble as sharp declines in long-term U.S. Treasury yields and resurgent trade concerns stoked investor worries about global economic growth.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.35 per cent. Hong Kong’s Hang Seng retreated 1.55 per cent and the Shanghai Composite Index dipped 0.2 per cent. Japan’s Nikkei dropped 0.8 per cent and South Korea’s KOSPI shed 0.5 per cent. Australian stocks lost 1 per cent, pressured by global losses.

(with Reuters input)

3:37 PM

Sectoral trend on NSE

3:36 PM

S&P BSE Sensex top gainers and losers

3:34 PM

Market at close

 

The S&P BSE Sensex fell 250 points or 0.69 per cent to settle at 35,884 while NSE's Nifty50 index dropped 87 points to close at 10,783.

3:22 PM

Financials trade weak post RBI policy; DHFL, Reliance Capital down over 5%

Shares of financial stocks led by non-banking finance companies (NBFC), housing finance companies (HFCs) and micro-finance institutions (MFIs) have fallen by up to 7% after the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Wednesday kept the repo rate unchanged at 6.50%. The committee maintained the calibrated tightening stance.
 

Reliance Capital, Dewan Housing Finance Corporation (DHFL), IDFC, Equitas Holdings, Can Fin Home Finance, Mahindra & Mahindra (M&M) Financial Services and Ujjivan Financial Services were down in the range of 5% to 7% on the BSE. In comparison, the S&P BSE Sensex was down 0.94% or 341 points at 35,793 at 02:53 pm. READ MORE

3:07 PM

RBI Deputy Governor NS Vishwanathan: Benchmarking retail loans with external benchmark will bring more transparency

3:07 PM

RBI Deputy Governor NS Vishwanathan: Retail and MSME loans will be linked to internal benchmark rate

3:06 PM

RBI Deputy Governor Viral Acharya: Measures undertaken by RBI have eased stress in NBFC sector

3:04 PM

RBI Deputy Governor Viral Acharya says have relaxed concentration limits on banks from 15% to 10%

3:02 PM

RBI Guv: Fiscal slippage at state and central level will impact inflation outlook

2:59 PM

RBI Guv: Need more data to assess full impact of MSP hike on CPI

2:56 PM

RBI Guv: Crude oil prices impart downwards bias to inflation trajectory

2:54 PM

RBI Guv: Fall in crudes prices may boost private consumption

2:53 PM

RBI POLICY STATEMENT

The MPC also noted that even as escalating trade tensions, tightening of global financial conditions and slowing down of global demand pose some downside risks to the domestic economy, the decline in oil prices in recent weeks, if sustained, will provide tailwinds. The acceleration in investment activity also bodes well for the medium-term growth potential of the economy. The time is apposite to further strengthen domestic macroeconomic fundamentals. In this context, fiscal discipline is critical to create space for and crowd in private investment activity.

2:53 PM

RBI Guv: Retail Loans to be pegged to external benchmarks like repo rate w.e.f Apr1

2:53 PM

RBI POLICY STATEMENT

While the decision on keeping the policy rate unchanged was unanimous, Dr. Ravindra H. Dholakia voted to change the stance to neutral. The MPC reiterates its commitment to achieving the medium-term target for headline inflation of 4 per cent on a durable basis. The minutes of the MPC’s meeting will be published by December 19, 2018.