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)

11:07 AM

Expert take | One more rate hike likely before RBI takes a pause

One of the reasons why the RBI has decided to act a tad aggressive in hiking the rate of interest is to protect the Indian currency.

This came after the Bank of England hiked interest rate by 50 basis points Thursday. 

As we advance, at the maximum, the RBI may have one more rate hike and perhaps pause on announcing further rate hikes.

 

Views by Sunil Damania, Chief Investment Officer, MarketsMojo

11:07 AM

Telecom abuzz in trade: Bharti Airtel, Vi gain over 1%

11:02 AM

Expert view | RBI commentary corroborates zero probability of India slipping into recession

Today’s RBI MPC decision to hike the repo rate by 50 bps is in line with the market expectations, thus remaining a non-event.

Inflation is expected to remain above the central bank's 6% threshold in the second & third quarters of this fiscal year, whereas for the whole year CPI inflation is projected at 6.7%.

The recent commentary by the governor has corroborated the statement that India has zero probability of slipping into recession.

Nevertheless, the commentary was cautious about the global & geo-political issues that could severely impact the supply chains.

Views by Santosh Meena, Head of Research, Swastika Investmart

11:00 AM

Cement stocks build steam: JK Cement, Dalmia Bharat surge 3%

10:56 AM

Expert take on RBI Policy | MPC evidently frontloading rate hikes

The 50 bps repo rate hike came 15 bps higher than the major expectation of a 35 bps hike. It is evident that the MPC is frontloading the rate hikes since it feels that  CPI inflation is above comfort levels.

The MPC has been emboldened to go for this 50 bps hike since "the economic activity is resilient" and " withdrawal of accommodation stance is necessary to anchor inflation expectations".

The capacity utilization in industry at 75% is higher than the long-term average. This positive view on the economy has been well received by the stock market in spite of the higher at hand expected repo rate hike.

Views by V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

10:55 AM

Expert view: Ashwini Tiwari, MD, SBI to TV channel

The RBI by hiking rate by 50 bps has done some front-loading given the high inflation. So its seems a good decision. 

10:53 AM

Expert take on RBI policy | MPC delivers in-line, repo rate to reach 5.75% by December

The MPC decisions have been in line with our expectations. Given the increasing external sector imbalances and global uncertainties the need for frontloaded action was imperative. We continue to see 5.75% repo rate by Dec 2022.

Views by Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank.

10:52 AM

Market reacts: Nifty 50 holds marginal gains; 31 gainers v/s 19 losers

UltraTech Cement was the top gainer among the Nifty 50 stocks, up 2.5 per cent. ICICI Bank, Bharti Airtel, Grasim and Wipro prominent gainers. On the other hand, Hindalco, Reliance and Maruti were down around a per cent each.

10:49 AM

Energy stocks on a slippery slope; GAIL drops 4%

10:45 AM

Market reacts: Consumer Durables weaken post 50 bps rate hike

The NSE Nifty Consumer Durables index was down 0.3 per cent. Amber Enterprises, Crompton Greaves, Blue Star and Rajesh Exports were few of the major losers.

10:44 AM

RBI Monetary Policy LIVE | GDP estimates for FY23 retained at 7.2%

Quarterly projections remain unchanged at: 

Q1FY23: 16.2%

Q2FY23: 6.2%

Q3FY23: 4.1%

Q4FY23:  4%

10:43 AM

PSBs gain post RBI's 50bps rate action; SBI nears 52-week high

10:40 AM

Expert take on RBI action: Rohin Agarwal, Vice President at Avener Capital

"On its mission to curb domestic inflation, the RBI has increased the repo rate by 50 bps in the MPC meeting today to 5.4 per cent. The ultimate impact of this decision on the inflationary pressure might be equally dependent upon the supply-side performance of the economy, where the recent dropdowns in the GDP growth estimates by IMF of 80 bps to 7.4 per cent might be seen as a challenge. Hence, it will be interesting to see, how these consecutive rate hikes, keeping in mind the concerning global economic indicators, iron out the path to long term growth for India."

10:38 AM

Market Check:: S&P Sensex firms again, up 250pts as investors shrug-off 50 bps rate hike

10:36 AM

RBI Monetary Policy LIVE | CPI inflation to fall below 6% upper tolerance level by Q4FY23

CPI projections: 

FY23 forecast unchanged at 6.7%
 

Q2FY23 forecast cut to 7.1% from 7.4%
 

Q3FY23 forecast increased to 6.4% from 6.2%
 

Q4FY23 forecast unchanged at 5.8%

Q1FY24 forecast at 5%