Sensex slips 215pts amid volatility post repo rate hike; ITC, RIL weigh

The RBI today raised the repo rate to 4.9 per cent, up from 4.4 per cent. The Central Bank also raised consumer price (CPI) or retail inflation forecast for FY23 to 6.7 per cent from 5.7 per cent.

The markets exhibited a high amount of volatility as the RBI hiked repo rate hike by 50 basis points. 

The key benchmark indices, which were woobly in early trades, rebounded into the positive zone led by fresh gains in financials and select other rate sensitives as the rate hike was on expected lines.  However, a fresh round of selling, in select index heavyweights, in the latter half of the day forced the benchmark indices to erase gains and slip back into the negative zone. 

The BSE Sensex swung in a range of 741 points on Wednesday. The index touched a low of 54,683 and a high of 55,424 before finally settling 215 points lower at 54,892. The NSE Nifty shut shop at 16,356, down 60 points.

Among the Sensex 30 stocks, Tata Steel, SBI, Dr.Reddy's, Titan, Maruti, Bajaj Finance and Bajaj Finserv ended with notable gains, while Bharti Airtel plunged over 3 per cent. ITC, Reliance Industries and Asian Paints were the other major losers.

Among the broader market, the BSE Midcap and the Smallcap indices also ended with minor losses. The breadth too was marginally negative.

Sectorally, the BSE Telecom index shed 1.6 per cent. The Energy and FMCG indices were down a per cent each. On the positive front, the BSE Realty index surged nearly 2 per cent. 

Among other individual stocks - MRPL soared over 9 per cent. The stock traded at its highest level since October 2018 and has more-than-doubled in the last two months. READ MORE

Bata India slipped 2.5 per cent after the promoter company reportedly recently divested 3.6 million shares or 2.8 per cent stake of the footwear company for nearly Rs 613 crore through open market transactions. READ MORE

4:16 PM

Nifty tech view: Key resistance level at 16,500

Indian benchmark indices ended lower for the 4th consecutive day. Markets made a gap up opening but closed in red on the outcome of RBI MPC meeting.

Among sectors Selling was visible in Banks, Chemical, & cement sector whereas Nifty IT & Media sector closed in green. 
 

On the technical front, the key resistance levels for Nifty50 are 16500 and on the downside 16200 can act as strong support. 

Key resistance and support levels for Bank Nifty are 35500 and 34700 respectively.

Views by Mohit Nigam, Head - PMS, Hem Securities 

 

 

4:13 PM

Closing comments: RBI has realised need for front-loaded action

RBI turned realistic by withdrawing their accommodative stance, realising the need for front-loaded action and increased inflation forecast by 100bps to 6.7%.

On the bright side, there were some positive points like no increase in CRR, economic growth was maintained healthy at 7.2% and no additional measures were announced to reduce the liquidity of the banking system.

However, the focus shifted to the global market, which is anticipating a hawkish Fed policy, stated next week.

Views by  Vinod Nair, Head of Research at Geojit Financial Services.

 

4:11 PM

Expert view on RBI policy: Yields to have upward bias throughout FY23

The policy was on expected lines except for inflation forecast which is slightly on a higher side.

RBI hiked repo by 50 bps to 4.90% leaving CRR unchanged. Inflation for FY '23 has been forecast at 6.70% against earlier forecast of 5.70%, keeping in mind the risk emanating from the ongoing geopolitical conflict and subsequent impact on food and fuel.

RBI kept the GDP forecast flat at 7.20% for FY '23 sighting buoyancy in rural demand.

RBI further firmed its stance of withdrawal of accommodation till liquidity conditions normalise.

Probably, RBI refrained from any liquidity move in this policy as systemic liquidity has already reduced in light of its previous measures.

Yields cooled down a bit tracking the policy, which is more or less on expected lines. We expect rate hikes to continue in FY23 with yields in general having an upward bias.

Views by Prashant Pimple, Chief Investment Officer - Debt, JM Financial Asset Management. 

 

4:05 PM

Rupee closes at record low of Rs 77.73 per dollar

 

4:03 PM

Ujjivan Small Finance dips 2% after boards approves funds raise via NCDs

Ujjivan SFB's board has approved raising funds worth up to Rs 1,500 cr via NCDs

 

3:59 PM

Sugar stocks plunge despite ISMA raising sugar output for current year

Sugar output for Oct 1, 2021-Jun 6 2022 comes at 35.2 mt Vs 30.7 mt last year. 

 

3:55 PM

VIP Clothing soars 5% in weak market on first franchisee model store launch

 

3:53 PM

ICICI Lombard sheds 3% more as 37 lakh shares worth Rs 407.8 cr change hands

 

3:51 PM

Bank index pares day's gains as rate hikes to lead to rise in borrowing costs

 

3:48 PM

SBI Cards ends 2.7% up as RBI allows credit card linking to UPI

 

3:46 PM

Nifty Realty gains most as RBI raises housing loan limit for cooperative bks

Realty pack gained despite fears that rate hike will dampen demand for the sector and make loans costlier. 

FMCG pocket was the worst hit as the central bank said inflation to remain above the upper tolerance band of 6% for first three quarters of FY23. 

 

 

3:42 PM

Broader markets close in red in line with benchmarks

 

3:40 PM

Nifty50 top 5 losers: Select heavyweights tank benchmark; slip up to 3%

 

3:39 PM

Nifty50 top five gainers: Tata Steel, SBI shine in subdued session

 

3:37 PM

Closing Bell: 13 stocks end higher; Airtel, Reliance, ITC top drags