Sensex jumps 1,017 pts on RBI's 50-bps hike; Nifty nears 17,100; banks lead

CLOSING BELL: The benchmark indices snapped their seven-day losing streak as the RBI delivered a 50-basis point repo rate hike, and underscored the resilience of the Indian economy in his statement

3:09 PM

Currency movements not guiding factors for monetary policy: Shaktikanta Das

Reserve Bank of India Governor Shaktikanta Das on Friday said that currency movements are not the guiding factors for monetary policy decisions. READ MORE

3:01 PM

Bharti Airtel hits record high ahead of 5G services launch; stock soars 6%

Shares of Bharti Airtel hit a record high of Rs 808.85, as they rallied 6 per cent in Friday’s intra-day trade, ahead of the launch of 5G services in India on Saturday, October 1. READ MORE

2:53 PM

Global Check:: US, UK stock futures gain up to 1%

Source: Investing.com

2:46 PM

Expert Take:: India in a sweet spot among major economies

RBI's decision to raise its repo rate unanimously by 50bps was in line with expectations and a function of US hiking rates. India has hiked repo rate by a cumulative 190bps since the pandemic lows but lower than US 300bps cumulative hike.

 

Also, pertinent to note that India's interest rate is still below its pre-pandemic levels at this juncture compared to the US, with India inflation also being lower than US.

 

Despite the recent rate hikes, bank credit growth continues to pick up, clocking 16.2 per cent YoY growth in September ‘22 which is a decadal high! With normal monsoons and strong festive season demand expectations, India is in a sweet spot among major economies.

 

Even as India's GDP expectations have been downgraded from 7.2 per cent to 7 per cent for FY23, it is far higher than GDP expectations of major economies like US (2.3 per cent for 2022) and UK (3.2 per cent for 2022). The requirement of banks moving to ECL methodology is a step in the right direction and should not impact the banking system as most banks have healthy PCR levels.

 

- Jaspreet Singh Arora, Chief Investment Officer (CIO), Research & Ranking

 

2:39 PM

Inflation seen staying above 4% target, averaging 5.2% in FY24: RBI report

The Reserve Bank of India’s structural models indicate average consumer price index (CPI) inflation at 5.2 per cent in the next financial year, lower than its forecast of 6.7 per cent for this financial year but above the target of 4 per cent. READ MORE

2:31 PM

Nifty Bank gains 3% post RBI's 50 bps hike; analysts see more headroom

The Reserve Bank of India's (RBI's) 50-bps repo rate hike triggered a sharp pullback rally in banking stocks on Friday. The Nifty PSU Bank index did even better with an intraday rise of 3.4 per cent. READ MORE

2:23 PM

Expert Take: Bigger challenge for RBI is controlling inflation

"The rate hike by the MPC was on expected lines. The rate hikes by the Fed and soaring food and energy prices pose a challenge to emerging economies including India. Withdrawal of the accommodative stance is an indication of the fact that the bigger challenge for the RBI is controlling inflation and keeping it within the tolerable range".

 

- Rahul Shresth, Vice President at Avener Capital. 

 

2:16 PM

Adani Green Energy soars 20% on heavy volumes

In September, Spitze Trade and Investment Limited, one of the promoters of AGEL acquired 4 million equity shares representing 0.25 per cent of total equity of the company via open market. READ MORE

2:09 PM

Expert Take: Until clarity on bond inclusion, global cues to dictate terms

Globally the markets have been facing headwinds over last couple of years in the form of pandemic, geo-political situation and recently storm in the global monetary actions. Acknowledging the same, the RBI hiked Repo rate for fourth consecutive time in last 5 months by 50 bps to 5.90 per cent mainly to address rising inflation and to curtail inflationary expectations.

 

RBI also decided to remain focused on its stance of withdrawal of accommodation to ensure inflation remains within target going forward, while supporting growth. In light of global uncertainties, RBI decided to lower its growth forecast from 7.20 per cent to 7 per cent and maintains its inflation forecast to 6.70 per cent for FY23. Further actions by RBI will depend on incoming data and evolving scenarios.

 

As the policy was on expected lines, markets remained relatively flat post policy. Considering H2 FY 23 calendar announcement we witnessed slight steepening in the yield curve with 5Y Gsecs yield moving down and 10Y Gsecs staying flat at ~ 7.35%. Till clarity on bond inclusion emerges, we expect bonds to take cues from global events.

 

- Gurvinder Singh, Senior Fund Manager and Credit Analyst - Fixed Income, JM Financial Asset Management Limited.
 

2:01 PM

Global Check:: Barring India, Hong Kong most Asian markets in red

Source: Yahoo Finance

1:54 PM

BSE 500:: Top losers so far

Indraprastha Gas down over 5 per cent was the major loser among the BSE 500 stocks so far. Gujarat Pipavav Port, Mahanagar Gas, SPARC and Gujarat Gas were the other prominent losers on Friday.

1:47 PM

RBI policy projections: Sept inflation to hit five-month high of 7.6%

Retail price inflation would hit a five-month high of 7.59 per cent in September, if projections given by the Reserve Bank of India's monetary policy committee (MPC) come out true. READ MORE

 

1:35 PM

Gold heads for biggest quarterly drop since early 2021 on Fed rate hikes

Gold prices were set on Friday for their biggest quarterly fall since early 2021, as aggressive interest rate hikes by the U.S. Federal Reserve and commitment to deliver more dented the zero-yielding metal's appeal. READ MORE

1:26 PM

BSE 500:: Top gainers so far

Adani Green has zoomed over 13 per cent and was the top gainer among the BSE 500 stocks so far on Friday. It was followed by India Cements, Phoenix Mills, Granules India and Tube Investments, up 6 - 8 per cent each.

1:19 PM

Market Check:: BSE Bankex vaults 2.5%, up nearly 1,100 points