A bout of volatility was witnessed in mid-morning trade as the barometer index, the S&P BSE Sensex, slipped into the red from green after the Reserve Bank of India (RBI) kept its benchmark lending rate viz. the repo rate unchanged after a monetary policy review. At 11:23 IST, the Sensex was off 22.57 points or 0.09% at 26,123.10. The 50-unit Nifty 50 Nifty index was currently trading flat. The index was currently up 0.95 points or 0.01% at 7,936.20. The market breadth indicating the overall health of the market was strong. On BSE, 1,429 shares rose and 887 shares fell. A total of 115 shares were unchanged. The BSE Mid-Cap index was up 0.43%. The BSE Small-Cap index was up 0.4%. Both these indices outperformed the Sensex.
The Reserve Bank of India (RBI) kept the repo rate unchanged at 6.75% after a monetary policy review. The central bank also kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4% of net demand and time liability (NDTL). The decision was announced at 11:00 IST. Retaining the easing stance of monetary policy, the RBI said that it will use the space for further accommodation when available while keeping the economy anchored to the projected disinflation path that should take inflation down to 5 per cent by March 2017.
Realty stocks were mixed after the RBI kept the repo rate unchanged after a monetary policy review. Sobha (down 1.91%), Indiabulls Real Estate (down 1.17%) and Housing Development & Infrastructure (HDIL) (down 0.63%) declined. Unitech (up 2.54%), DLF (up 0.61%), Godrej Properties (up 0.86%) and Phoenix Mills (up 0.21%) edged higher. Purchases of both residential and commercial property are largely driven by finance.
Bank stocks gained after the RBI kept the repo rate unchanged after a monetary policy review. Among public sector banks, UCO Bank (up 0.52%), Syndicate Bank (up 0.37%), Punjab National Bank (up 0.01%), Corporation Bank (up 0.24%), Allahabad Bank (up 0.84%), State Bank of India (SBI) (up 0.3%), Union Bank of India (up 0.35%), Canara Bank (up 0.17%), Bank of India (up 0.23%) and United Bank of India (up 0.01%) edged higher. Bank of Baroda fell 0.36%.
Among private sector banks, HDFC Bank (up 0.24%), ICICI Bank (up 0.62%), Kotak Mahindra Bank (up 0.02%), Federal Bank (up 0.68%), and IndusInd Bank (up 0.7%) edged higher. Axis Bank lost 0.52%.
The Reserve Bank of India (RBI) will shortly finalise the methodology for determining the base rate based on the marginal cost of funds.
More From This Section
Yes Bank fell 0.14%. The bank said during market hours that it has signed loan agreements totalling $265 million with Overseas Private Investment Corporation (OPIC) and Wells Fargo to support small business growth in India. The bank said it has signed an agreement with the OPIC, the US government's development financial institution, for debt financing of $245 million to increase lending to micro, small and medium enterprises (MSMEs) in India. US based lender Wells Fargo will act as sponsor and co-lender to the project, providing a loan of $20 million, bringing the total facility amount to $265 million. Specifically half of the financing will be used to support either micro SMEs or SMEs in undeserved rural and urban markets.
Maruti Suzuki India gained 0.03% after the company announced during market hours that total sales rose 9.7% to 1.2 lakh vehicles in November 2015 over November 2014. Domestic sales rose 10.6% to 1.1 lakh vehicles in November 2015 over November 2014. Exports rose 1% to 10,225 vehicles in November 2015 over November 2014.
On macro front, India's gross domestic product (GDP) rose 7.4% in Q2 September 2015 over Q2 September 2014, with growth mainly driven by pick-up in the manufacturing sector, which has grown by 9.3% in Q2. The GDP growth has shown a pick up from 7% growth recorded in Q1 June 2015. Meanwhile, the GDP growth remained below 8.4% rise recorded in the corresponding quarter of the last year. The Q2 GDP data was announced after market hours yesterday, 30 November 2015. The finance ministry is expecting the economy to grow in the vicinity of 7.5% in the year ending 31 March 2016 (FY 2016).
The index of eight core industries comprising nearly 38% of the weight of items included in the index of industrial production (IIP) rose 3.2% in October 2015 over October 2014. The data was announced after market hours yesterday, 30 November 2015.
Data during market hours today, 1 December 2015, showed that seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to a 25-month low of 50.3 in November.
In overseas stock markets, Asian shares rose, shrugging off one Chinese factory survey that did little to ease persistent concerns about cooling growth in the economy, while a private survey showed a hint of stabilisation. US stocks fell yesterday, 30 November 2015, weighed down by declines in retail shares.
Powered by Capital Market - Live News