The market firmed up once again in mid-afternoon trade. At 14:23 IST, the barometer index, the S&P BSE Sensex, was up 125.45 points or 0.34% at 37,100.68. The Nifty 50 index was up 37.30 points or 0.34% at 11,099.75. The Sensex was currently trading above the 37,000 mark after opening above that level.
The market opened higher and extended gains in morning trade. Indices trimmed gains in mid-morning trade. Benchmarks turned volatile and pared gains in early afternoon trade soon after hitting intraday high after the Reserve Bank of India's Monetary Policy Committee voted to pare the repo rate by 25 basis points to 6.25%.
Broader market outperformed main stock indices. Among secondary barometers, the BSE Mid-Cap index was up 1.05%. The BSE Small-Cap index was up 0.85%.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1361 shares rose and 1062 shares fell. A total of 167 shares were unchanged.
FMCG shares were in demand. Bajaj Corp (up 2.24%), Tata Global Beverages (up 1.67%), Dabur India (up 1.57%), GlaxoSmithKline Consumer Healthcare (up 0.82%), Nestle India (up 0.7%), Hindustan Unilever (up 0.62%), Britannia Industries (up 0.54%), Marico (up 0.38%), Colgate Palmolive (India) (up 0.34%), Procter & Gamble Hygiene & Health Care (up 0.21%) and Jyothy Laboratories (up 0.17%), edged higher. Godrej Consumer Products was down 0.47%.
Metal shares were mixed. JSW Steel (down 2.02%), Hindalco Industries (down 1.14%), Vedanta (down 0.37%), National Aluminium Company (down 0.34%) and Hindustan Zinc (down 0.1%), edged lower. Hindustan Copper (up 0.11%), Jindal Steel & Power (up 0.18%), Tata Steel (up 0.21%), NMDC (up 0.26%) and Steel Authority of India (up 0.95%), edged higher.
On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee (MPC) decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 6.5% to 6.25% with immediate effect. Consequently, the reverse repo rate under the LAF stands adjusted to 6.0%, and the marginal standing facility (MSF) rate and the Bank Rate to 6.5%.
The MPC also decided to change the monetary policy stance from calibrated tightening to neutral. These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.
On the economic front, the Union Cabinet chaired by the Prime Minister Narendra Modi has approved establishment of a unified authority for regulating all financial services in International Financial Services Centres (IFSCs) in India through International Financial Services Centres Authority Bill, 2019. The first IFSC in India has been set up at GIFT City, Gandhinagar, Gujarat.
Overseas, most European stocks were trading lower Thursday, as market participants monitored the latest flurry of corporate results. Market focus is largely attuned to global trade developments, with officials from the world's two largest economies reportedly poised to meet for a fresh round of talks next week.
Stocks in Asia traded mixed on Thursday, while US-China trade hopes are up as negotiations are set to continue.
US stocks closed lower Wednesday, with the S&P 500 snapping a five-day winning streak, after President Donald Trump's State of the Union address offered few details on his economic agenda. The president, however, insisted China commit to real, structural economic reforms before a trade deal can be reached.
On the data front, US manufacturing productivity rose 1.3% in the fourth quarter, up from 1.1% growth in the third quarter, the Labor Department reported. The US trade deficit in November fell to $49.3 billion, below the October level of $55.5 billion in October.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
