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.

12:29 PM

RBI Das: Repo window remains available in case of any liquidity deficit

12:28 PM

RBI Das: With SDF, we possess greater leverage for operating twists

With SDF, we possess greater leverage for operating twists to manage liquidity, said Das.

12:26 PM

Expert view on RBI policy: Untouched CRR rates were the silver lining

The RBI's actions today were in line with the market expectations as the overall inflation numbers were far away from the central bank’s comfort levels.

However, the silver lining was the untouched CRR rates and the market is rejoiced by the same.

Nevertheless, the current inflationary pressures could increase further due to geopolitical factors and rising commodity prices.

Views of Mr. Sunil Nyati, Managing Director, Swastika Investmart Ltd. 
 

12:25 PM

RBI Das on liquidity: Do not want to convey that abrupt action being taken

Das says the RBI does not want to convey that abrupt action is being taken on liquiduty to deter credit offtake.

12:20 PM

RBI Governor to Media:: On withdrawing accomodative stance

The governor said we started excess liquidity withdrawal last year, and may be completed in a two-three year cycle. 

12:13 PM

RBI Governor to Media:: On future rate hikes

The future rate hikes would depend on how inflation shapes.

12:12 PM

Biocon hits over two-year low; slips 18% in six weeks post weak Q4 results

The share price of Biocon hit an over two-year low of Rs 312, down 1.5 per cent on the BSE in Wednesday’s intra-day trade. In the past six weeks, shares of the pharmaceutical company has declined 18 per cent after it reported a 4 per cent year-on-year (YoY) fall in consolidated net profit to Rs 283.9 crore in Q4FY22. READ MORE

12:10 PM

RBI Das in presser: Liquidity withdrawal ahead will be measured and calibrated

CRR has not been hiked but liquidity withdrawal will be calibrated going ahead, said Das.

12:08 PM

RBI Das in presser: 75% of hike in inflation projection attributed to spike in food prices

RBI remains committed to bring down inflation, said Das.

12:04 PM

Expert view on RBI policy: No surprise in this policy

There is no surprise by RBI in this policy after a shock in the last unplanned policy for the market. The market welcomed the policy with a positive reaction as there was some fear of an outside 75 basis points hike in repo rate and hike in CRR.

Banking stocks are showing strength after policy as a 50 basis hike was already priced in and there is no hike in CRR.

The overall policy looks good from the market's perspective and now the market will look for US CPI numbers and the FOMC meeting next week.

 

Views of Mr. Parth Nyati, Founder, Tradingo

11:58 AM

BSE 500:: Top losers so far

Gujarat Gas has slipped over 6 per cent in trades so far and was the top loser among the BSE 500 stocks. Polycab India, Deepak Nitrate, ICICI Lombard and GMM Pfaudler were the other notable losers, down over 3 per cent each.

11:50 AM

BSE 500:: Top gainers so far

MRPL has zoomed over 11 per cent so far and was the top gainer among the BSE 500 stocks. Spandana Sphoorthy, Engineers India, PNB Housing and TV18 Broadcast were some of the other major gainers in trade on Wednesday.

11:43 AM

Expert take on RBI policy: Auto, Real estate, Banking, Infra stocks to be worst hit

In line with the expectation, RBI has increased the repo rate by 50 basis points, which is already discounted by the market.

The Ukraine Russia war has led to an increase in inflation globally beyond tolerance level and is affecting the economic growth.

However, most of the industries are already facing headwinds due to steep increase in raw materials cost and fuel prices, and a hike in the rates will further increase the burden.

The Fed is also increasing rates so there is a major possibility that barring equities, others like debt market and bond market could see some outflow anytime soon.
 

Auto, Real estate, Banking and Infrastructure stocks would be worst hit by the rate hike as loan financing is a major part of these sectors.

FMCG, Insurance, Energy, Power and Utility sectors provides a cushion against rising interest rates

Views by Ravi Singh, Vice President and head of Research, Share India

11:38 AM

Expert view on RBI policy: Retail loans to see direct impact of rate hike

RBI has raised the repo rate by 50 bps to 4.9%. The inflation projection for this fiscal is 6.7% and will remain above the tolerance band of 2-6%  for three quarters in this fiscal. RBI still expects the economy to grow at a rate of 7.2% .
 

The SDF and MSF have been increased to 4.65% and 5.15%, respectively. The RBI is expected to reduce liquidity, reinforcing its fight against inflation and extending its effort to return monetary conditions.

The cost of lending for banks is set to go up due to an increase in repo rate, retail loans will face direct impact due to this.

Views by Manoj Dalmia, founder and director Proficient Equities.

11:32 AM

Rising rates to impact post-pandemic recovery in real estate sector

The rising rates will depress demand and slow down sales. READ HERE