Sensex snaps 3-day losing run on RBI policy, rises 412pts up; yields up 2%

CLOSING BELL: The RBI also announced revised inflation and GDP growth forecasts in-line with market expectations

2:10 PM

Senesex 30 Heatmap:: ITC, Tata Steel top gainers

2:03 PM

EXPERT VIEW:: RBI monetary policy signals change in stance for June 2022

Next RBI monetary policy stance likely to be followed by shallow rate hike cycle, with the repo rate being increased by 25 bps each in August and September 2022, Aditi Nayar is Chief Economist at ICRA Ltd. READ MORE

1:54 PM

BSE S&P Sensex near day's high, up 400 points

1:49 PM

FMCG shares trade firm post RBI policy; Godrej Consumer zooms 6%

Among the other top gainers, Hindustan Unilever, Nestle India, Dabur, Britannia and Marico were up over a per cent each.

1:38 PM

EXPERT VIEW:: Reverse repo rate hike ahead of our expectations

"The 40 bps hike in reverse repo rate was ahead of consensus expectations. The downward revision of GDP growth rate and upward revision of retail inflation were expected. The RBI is now anticipating much faster rise in inflation than earlier. The monetary policy stance, however, remains accommodative by normal standard. The RBI is also trying to flatten the yield curve by pushing the short-term rates higher and taking measures to ensure that the yield on long dated securities do not rise much. With today's measures RBI has moved to the path of gradual increase of policy interest rate and phased withdrawal of liquidity. From a medium term perspective, the measures are supportive of growth, price stability and orderly development in the financial markets."

 

Sujan Hajra, Chief Economist and Executive Director, Anand Rathi Shares & Stock Brokers.

1:29 PM

Bharat Dynamics zooms 29% in two days on heavy volumes; stock hits new high

The market price of BDL has surged 35 per cent in six trading days after exchanging MoU with UAE firm to explore new business opportunities. READ MORE

1:21 PM

Asian Markets Update:: Mixed outing for major markets

Source: Yahoo Finance

1:12 PM

Gold subdued as dollar climbs higher on counters of Ukraine risks

Spot gold was flat at $1,929.52 per ounce by 0520 GMT. US gold futures were down 0.3% at $1,931.90. READ MORE

 

1:04 PM

EXPERT VIEW :: No negative from the policy will be taken as a positive

We find RBI’s objective of sustained growth & financial stability as the right approach going ahead. RBI being realistic is the most important message & a run rate of growth >7% is still superior compared to global growth. RBI caliberated steps will help it not shy away from taking steps to safeguard the interest of the economy. RBI’s stance on liquidity absorption will happen in a phased manner, limiting the adverse impact on the economy.   

 

We believe RBI‘s transparency in terms of announcements & measures to tackle the current difficult times period & absorption of liquidity has been superior to the rest of the central banks globally. 

 

We expect this to be market neutral as it’s per market expectations. No negative from the policy will be indeed taken as a positive.

Views by: Aishvarya Dadheech, Fund Manager, Ambit Asset Management

1:02 PM

BSE 500:: Stocks pairing gains from the highs of the day

RBL Bank and IOL Chemcials have shed 5.5 per cent each from the highs of the day so far. TTML, Sobha and Poonawalla Fincorp were some of the other notable losers.

12:54 PM

BSE 500:: Stocks recovered from intra-day lows

Bharat Dynamics has recovered nearly 13 per cent from the lows of the day. Varroc Engineering, Bandhan Bank, Zydus Life and Sterling & Wilson were some of the prominent stocks to recover significant ground from the lows of the day.

12:47 PM

Bajaj Auto, DLF, SBI: Strategies for rate sensitive stocks post RBI policy

AU Small Finance Bank and Bajaj Auto seem well placed on the technical charts and should be able to witness decent gains in the weeks ahead. READ MORE

12:40 PM

EXPERT VIEW :: The policy was hawkish to support FY23 government borrowing program

The policy was hawkish with intent to support FY’23 government borrowing program and economic growth. The RBI maintained status quo on key policy rates and maintained an accommodative stance. RBI stands committed towards managing liquidity in a calibrated manner. The RBI revised GDP estimates for FY 23 to 7.2% from 7.8% and CPI from 4.5% to 5.7% for FY’23 on account of geopolitical disturbances. Hold to maturity (HTM) limit for banks stands enhanced by 1% up to March 31, 2023 with an intention to support government borrowings for this financial year. The policy corridor has been normalised through SDF and MSF. No clarity on the absolute quantum of open market operation acted against Gsecs with the benchmark 10 year moving above 7% ,post policy.

Views by: Prashant Pimple, Managing Director & Chief Investment Officer – Debt, JM Financial Asset Management 

12:39 PM

Adani Green surges 9%, hits new high ahead of board meet for fund raising

Shares of Adani Green Energy hit a new all-time high at Rs 2,350, on rallying 9 per cent on the BSE in Friday’s intra-day trade in an otherwise subdued market ahead of the board meeting today for considering fund raising proposal. Read more

12:26 PM

EXPERT VIEW :: Policy has clearly laid out the path to liquidity unwinding

Today's policy has clearly laid out the path to policy unwinding. The focus from now on will be to withdraw the accommodative policy stance to keep inflation in check. Today's announcement clearly indicates the end of easy monetary policy by RBI, the same reflected well on the 10-Year benchmark yield which hit a multi-year high.

 

The unwinding of liquidity will create some turbulence, and the likely reason for RBI to lower the growth rate projection for FY23 to 7.2%, inflation aim hiked to 5.7% from 4.5% earlier. The clear aim of the central banks worldwide is to control inflation, unwind easy liquidity and focus on slow and steady growth.

Views by: Nish Bhatt, Founder & CEO, Millwood Kane International