Sensex ends 308 pts lower post RBI policy, Nifty near 19,550; Zee zooms 20%

CLOSING BELL ON AUGUST 10, 2023: Private bank and select auto stocks ended with notable losses after the RBI on Thursday asked banks to maintain Incremental Cash Reserve Ratio (ICRR) at 10 per cent.

12:39 PM

RBI Press Conference: El-Nino not as dangerous as it is for South America, says Dty Guv Michael Patra

>> However, it is a big concern

 

>> Expect monsoon distribution to even out

 

>> Continue to assume normal monsoon while deciding policy action

12:38 PM

Mixed trend on charts in rate-sensitive stocks post RBI policy outcome

Meanwhile, rate sensitive stocks traded mixed, with indices displaying a deliberate volatility. Shares of Manappuram Finance reached a new 52-week high, while HDFC Bank, Union Bank, DLF traded sluggish. Mahindra & Mahindra shares gained over a per cent and were seen scaling fresh intraday highs. READ MORE

12:30 PM

RBI Press Conference: VRRR to continue; response could have been better, says RBI Guv

>> No proposal to revert to daily VRRR auctions

 

>> 1-day VRRR auctions were done under exceptional situations, not a norm

 

12:27 PM

MFSL up 12%; hits 52-wk high on Axis Bank buying balance stake in Max Life

Shares of Max Financial Services (MFSL), the holding company of life insurer Max Life Insurance, rallied 12.2 per cent to hit a 52-week high of Rs 886 on the BSE in Thursday’s trade.

 

The up move followed Axis Bank’s announcement on Wednesday that it will raise its 9.99 per cent stake in Max Life to 16.22 per cent by infusing Rs 1,612 crores in the entity.  READ MORE

12:22 PM

RBI Press Conference: India has twin balance sheet advantage right now, says RBI Guv

>> Private sector has capacity to invest

 

>> Final decision still rests with individual Boards

 

>> Iron, Steel, Auto, Metals, Chemicals seeing capex

 

>> Private capex should pick up ging ahead due to favourable ground condition

 

12:19 PM

RBI Press Conference: ICRR based liquidity withdrawal to be little over Rs 1 trillion, says Guv

>> ICRR is applicable to all scheduled banks

>> It's a dynamic number

>> Liquidity management is an on-going process
 

12:15 PM

DreamFolks tanks 28% in 2 days on disappointing Q1 performance

In Q1FY24, the company’s earnings before interest, taxes, depreciation, and amortization (ebitda) was down 3.6 per cent to Rs 18.69 crore, due to higher operational cost, including cost of services and employee cost. Ebitda margin contracted by 500 bp to 7.01 per cent from 12.1 per cent in Q1FY23 READ MORE

12:10 PM

RBI Press Conference: ICRR was necessary in the backdrop of liquidity overhang

>> Was to ensure price stability

 

>> Will have impact on inflation

 

>> Measure remains temporary, will review it on or before Sept 8

12:09 PM

RBI Press Conference: Recent reasons fo spike in inflation to be short-lived

>> Need to be watchful, avoid knee-jerk reaction

 

12:07 PM

RBI policy: Can higher inflation become the new normal for the markets?

The upward revision in the inflation projection, analysts suggest, implies that the central bank is likely to keep the rates elevated for a longer period of time than what the Street expected. This, in turn, can keep the market sentiment in check. READ MORE

12:03 PM

Market Check :: Sensex off lows as RBI begins post policy press conference

12:02 PM

Market Outlook :: What are the next key levels on the Nifty?

The short-term market structure seems to lean towards a sell-on-rise pattern. This is partly due to the global market's nervousness, exacerbated by the jump in crude oil and other commodity prices, posing notable challenges for the Indian market.

Looking ahead, the focal point of market attention is expected to shift toward the impending US inflation figures scheduled for release this evening. There's a discernible risk that the Nifty index might experience a decline toward levels around 19,191 and 18,888 unless it manages to surpass the 20-Day Moving Average (20-DMA) threshold of 19,650.

Views by: Santosh Meena, Head of Research at Swastika Investmart 

11:52 AM

RBI Policy :: You may soon be able to make UPI payments by talking or just tapping phone

It added that the feature would be available in both smartphone and feature phone-based UPI channels. It will initially be made available in Hindi and English and will be made available in more Indian languages. READ MORE

11:42 AM

RBI Policy reaction :: 'Remain cautious about affordable, MIG housing segment'

The central bank remains watchful on inflationary expectations and is focused on bringing the inflation level to its 4% target. Measures to reduce excess liquidity, with temporary tightening through incremental Cash Reserve Ratio at 10%, aligns with price stability goals of the central bank.

 

Maintaining policy rates will bolster consumer demand amid moderate inflation, further promoting economic growth. This stance will likely boost homebuyers’ confidence as affordability remains stable. Since the interest rate upcycle, the repo rate has been hiked by 250bps, resulting in 160bps rise in home loan rates. We remain cautious about the housing market, especially the affordable and the mid segment that is price sensitive and has seen some impact of the previous rate hikes.

Views by: Shishir Baijal, Chairman & Managing Director, Knight Frank

 

11:31 AM

RBI Policy reaction :: 'Do not see any lasting impact on markets from policy'

Policy rates are unchanged but the commentary is hawkish given the rising vegetable & food prices and global uncertainties. Hence, the RBI has taken temporary steps to withdraw some excess liquidity from the banking system. Also, RBI hinted that the high-interest rates could prevail for a longer period of time. As part of the initial reaction, the bond yield did firm up and banking stocks have seen some selling pressure.

However, we do not see any lasting or material impact on equity markets from the policy announcement today. We continue to retain a positive view on markets from medium to long term and any dips should be seen as an opportunity to accumulate quality stocks keeping in mind the multi-year economic upcycle in India.

Views by: Gaurav Dua, Head Capital Market Strategy, Sharekhan by BNP Paribas