Sensex gains 89 pts, Nifty holds 17,350 as RBI hikes repo rate by 50 bps

CLOSING BELL: While an in-line repo rate hike of 50 basis points gave ammunition to the bulls, bears tried to drag the indices as inflation projections were maintained for fiscal 2022-23 (FY23)

2:03 PM

Sensex 30 Heatmap:: UltraTech Cement, ICICI bank gain up to 3%; RIL down 1%

1:57 PM

Rupee gains 26 paise in afternoon trade to 79.20 against US dollar

The Indian rupee appreciated 26 paise during the afternoon trade at 79.20 against the US dollar by 12.37 pm on Friday, as against 79.46 close on the previous trading session. READ MORE

1:50 PM

Asian Markets Update:: Gains seen across; Taiwan soars over 2%

Source: Yahoo Finance

1:43 PM

Bhagiradha Chemicals hits record high; stock zooms 70% from June low

The stock rallied 12 per cent to hit a record high of Rs 1,254.60 on Friday's intra-day trade. That apart, the stock bounced back 70 per cent from its June 21, 2022, low of Rs 736.30. READ MORE

1:36 PM

BSE 500:: Top losers so far

Balkrishna Industries has slumped nearly 8 per cent and was the top loser among the BSE 500 stocks on Friday. It was followed by Welspun Corp, Gail India, Graphite India and Brightcom Group.

1:25 PM

MPC rate hikes likely to continue till CPI inflation recedes below 6%

The Monetary Policy Committee (MPC) voted for a back-to-back repo rate hike of 50 basis points (bps) in its August 2022 policy review, with the anchoring of inflationary expectations taking centre stage. The CPI inflation and GDP growth projections for FY2023 were retained at 6.7 per cent and 7.2 per cent, respectively, with risks evenly/broadly balanced, while the stance was kept unchanged in a non-unanimous vote. READ MORE

1:17 PM

SBI, DLF, Bajaj Auto, Manappuram look good on charts post RBI policy

Manappuram Finance has so far on Friday logged its biggest intra-day gain this year, the stock along with DLF, SBI and Bajaj Auto can rally up to 14 per cent in the near term. Read here

1:15 PM

BSE 500:: Top gainers so far

Lemon Tree Hotel and SpiceJet zoomed around 8 per cent each and were the top gainers among the BSE 500 stocks so far on Friday. Manappuram Finance, Tube Investments and Sapphire Foods were some of the other major gainers.

 

 

1:10 PM

Expert take | Banks with higher share of floating rates well placed currently

With core inflation continuing to hover well above the upper tolerance limit, the RBI increased the repo rate by 50 bps, broadly in line with market expectations.

Repo rates have been reverted to pre-pandemic levels, the highest since August 2019. The MPC maintained its stance on calibrated withdrawal of accommodation while supporting growth.

We have seen system liquidity tighten since RBI started withdrawing excess liquidity, and system credit growth improved to 14%.

With credit growth looking up, we believe the banks with a higher share of floating rates and a robust CASA-led deposit franchise should be placed well in this increasing interest rate environment.

While the domestic inflationary pressures seem to be easing out gradually, the geopolitical tensions, volatility in global financial markets, and emerging risk of the global recession continue to remain key risks.

Thus, the RBI has retained its inflation estimates for FY23, mildly tweaking Q2 and Q3 estimates, expecting relief only from Q4 onwards. It has also retained its growth estimates at 7.2% for FY23.

Views by Naveen Kulkarni, Chief Investment Officer, Axis Securities.

1:03 PM

Expert Take | Expect the RBI to use rate hikes more sparingly

With inflation expected to go below 6% in Q4FY23 and further in Q1 FY 24, we expect RBI to not to use rate hikes as a tool anymore in those quarters and move to liquidity management measures to ensure that the growth is not stifled.

Rural demand still shows a mixed trend despite a broadening economic activity and hence we expect the RBI to use rate hikes more sparingly

Views by: Vivek iyer- Partner and leader, Financial services risk, Grant Thornton Bharat

12:55 PM

Expert take | Rate hike to shrink home buyer's budget; developers may take mitigating measures

The RBI’s decision to raise the repo rate by 50 basis point is in line with our expectations. Today’s rate hike will further harden the rates. 

For the real estate sector specifically, the third subsequent rate rise will mean a deterioration of affordability and may impact the sentiments of home buyers.

With the cumulative rate hike until today, assuming complete transmission, a prospective home buyers’ affordability shrinks by around 11%. from an ability of purchasing a house of Rs.1 crore value shrinking to Rs. 89 lacs now.

Developers are expected to undertake mitigating measures to soften the blow on homebuyer affordability.

The increase of interest rates and the subsequent transmission of these into the home loan rates, while has the capability of impacting demand, we hope that the latent demand for housing will soften the impact of the latest change in the rates. 

Views by Shishir Baijal, Chairman & Managing Director, Knight Frank India.

12:50 PM

RBI Press Conference LIVE | Will have to wait till Oct-Dec to assess full impact of rate hikes

Rate hikes usually take 6-8 months for full impact. 

12:48 PM

Expert on RBI policy outcome: Don't see banks to raise lending rates further

In line with the global trend of monetary policy tightening to cool off inflation, RBI hikes repo rate by 0.5 bps, while retaining GDP growth forecast at 7.2%. The Central Bank has so far raised the repo rate by 140 basis points since embarking on a tightening cycle at an unscheduled policy meeting in May this year. The MPC's rate hike is intended at curbing demand, and, thereby, controlling high inflation. Although, much of the risks to inflation are emerging from external factors.  We do not expect banks to pass on the current hike in interest rates, as they have already raised the lending rates, further hike in lending rates could impact the gradual recovery seen in the economy in the post-pandemic period.

Views expressed by Kedar Kadam, Director – Listed Investments, Waterfield Advisors

12:46 PM

Paint stocks firm in trade; Indigo Paints surge 3%

12:44 PM

RBI Press Conference LIVE | Liquidity normalisation to spill over to next year

Liquidity is still high at around Rs 5-6 lakh crore.

Normalisation of liquidity is a multi-year cycle.

The process will spillover to next years also.