RBI's liquidity shot lifts pharma, bank stocks; Sensex leaps 424 pts

The RBI's well guarded measures which, analysts believe, are tuned to the evolving situation may support the economy going forward

11:39 AM

MARKET VIEW ON RBI GUV'S ADDRESS

The three year facility, which the banks can advance, to the of Rs. 50,000 Crs, is a good measure to immediately help ramp up medical and healthcare facilities. The benefits of this will help enhance capacity for the longer term as it covers diagnostic, preventive as well as combative aspects of healthcare. The smaller entities like micro finance institutions also benefit from the current package, which will bring some relief to them too which is one of the worst affected sectors as of now.

- Dr. Joseph Thomas, Head of Research, Emkay Wealth Management

11:38 AM

Lupin soars 8%, hits over three-year high on heavy volumes

Shares of Lupin hit an over three-year high of Rs 1,147 as they advanced 8 per cent on the BSE in intra-day trade on Wednesday on the back of heavy volumes. The stock of the pharmaceutical company surpassed its previous high of Rs 1,121.85 touched on September 18, 2020. It was trading at its highest level since July 2017. READ MORE

11:30 AM

Hero MotoCorp Q4 preview: Analysts see up to 60% YoY rise in Ebitda

HeroMoto Corp, slated to report its March quarter results (Q4FY21) on May 6, is expected to post nearly 60 per cent year-on-year growth in earnings before interest, tax, depreciation, and amortization (Ebitda) aided by healthy sales volume and low base effect. However, price hikes taken due to BS-VI transition and to off-set increase in input costs may not be enough to cushion Ebitda margin hit, say analysts. READ MORE

11:22 AM

VIEW ON RBI GUV'S ADDRESS :: Deepthi Mathew, Economist at Geojit Financial Services

In its limited space, the RBI governor announced few measures to support the economy dealing with the second wave of the pandemic. Though a loan moratorium was not announced, restructuring of loans could bring some relief to the borrowers.  To incentivize lending, banks can park money equal to COVID  book with the RBI at 40 bps above the reverse repo rate. Similarly, lending to MFIs would be categorised as priority sector lending that could also support credit growth in the economy. 

11:02 AM

Aarti Industries rallies 7%, hits record high on bonus issue plan

Shares of Aarti Industries hit a new high of Rs 1,750 after rallying 7 per cent on the BSE in intra-day trade on Wednesday after the company announced a bonus issue plan. The stock surpassed its previous high of Rs 1,687.40 on Tuesday. The meeting of the board of directors of the Company is scheduled to be held on Tuesday, May 11, 2021 to consider, recommendation of issue of bonus shares. READ MORE

10:53 AM

MARKET COMMENT ON RBI GUV'S ANNOUNCEMENT

Governor Sakthikanda Das reassured the nation and markets that the RBI would be pro-active to ameliorate the pain and help businesses & boost the economy. Term liquidity of Rs 50000 cr as on-tap liquidity for access to the emergency health facility, 3-year TLTRO for small finance banks, another instalment of G-SAP of Rs 35000 cr, lending by SFBs to MSMEs to be classified as priority sector lending... are all timely steps in the right direction. The fact that there is no moratorium announcement will be seen by the markets as positive since the message is that the situation is not bad as to warrant another moratorium

- Views by Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services

10:43 AM

Sector Watch :: Nifty Pharma index up 2% as RBI approves Rs 50,000 cr-liquidity support for the sector

10:35 AM

MARKET CHECK :: Sensex near day's high

10:33 AM

NEWS ALERT :: Services PMI falls to 54 in April vs 54.6 in March

Falling from 54.6 in March to 54.0 in April, the seasonally adjusted India Services Business Activity Index pointed to the slowest increase in output for three months. That said, the latest reading was indicative of a solid rate of expansion that outpaced the long-run survey average.

10:31 AM

RBI governor LIVE :: Shaktikanta Das says

>> Counter cyclical provisioning buffer held by bank as of Dec 2020 can be used to make specific provision for NPAs up to Mar 2022. Use of such floating provisions for NPA provisioning to be done after board approvals

>> Will ramp up COVID-related healthcare infra, on-tap liquidity window of Rs 50,000 cr with up to 3-yr tenor at repo rate being opened until March 31, 2022

>> To conduct 3-yr long-term repo operations worth Rs 10,000 cr. Limit of Rs 10 lakh per borrower for SFB scheme. SFB on-lending to MFIs to be categorised as priority sector

10:29 AM

RBI governor LIVE :: Shaktikanta Das says

>> Maximum number of days for overdraft facility by states is being enhanced from 35 to 50 days, valid up to September 30, 2021

10:27 AM

RBI GOVERNOR ::To hold STLRO for Rs 10,000 cr for small finance banks

>> SLTRO facility to be available till Oct 31, 2021 

10:27 AM

RBI governor LIVE :: Shaktikanta Das says

Borrowers up to Rs 25 crore, not taken restructuring earlier, that were standard as of Mar 2021, will be considered for restructuring till 30th Sept 2021 

 

10:26 AM

RBI governor LIVE :: Shaktikanta Das says

>> Banks are allowed to extend the moratorium under Restructuring Frame 1.0 for a period of up to 2 years

10:25 AM

RBI GOVERNOR :: Banks will have Covid loan book; will earn 40 bps more under Reverse repo

>> Such loans books to be allowed in priority sector lending