Sensex ends 304 pts up, Nifty tests 21,000 as RBI leaves rates untouched

Closing Bell on December 8, 2023: The BSE Sensex touched a high of 69,894, whil the Nifty hit a peak at 21,006. Infosys, HDFC Bank and ICICI Bank were the major movers on Friday.

12:19 PM

RBI Presser LIVE: Few months of good data should not push us into complacency, cautions Guv Das

12:17 PM

RBI Presser:: MPC members on connected lending; over-tightening of liquidity

>> Our efforts is to act pro-actively

 

>> Draft guidelines to give clarity on connected lending

 

>> Since May we have prioritized inflation over growth

12:16 PM

RBI Presser LIVE: RBI coming out with guidelines on connected lending, says Rajeshwar Rao

12:13 PM

RBI Presser:: Shaktikanta Das on risks related to financial stability

>> Our endeavour is to be ready at all-times

 

>> Balance sheet of financial sector continues to be robust

 

12:13 PM

RBI Presser LIVE: Have deepened supervisory of financial entities, says Das

Deepened supervisory methods. Stress tests are being kept an eye on. Banks and NBFCs have healthy balance sheets, says Das. 

12:09 PM

RBI Presser:: MPC to be highly alert to reach 4% inflation target

>> India's GDP growth remains resilient and robust as projected to be 7.4% for FY24

 

>> Steady decline in core inflation, indicates monetary policy is working

 

>> Moving forward, inflation management cannot be on auto pilot; uncertain food prices a concern

 

>> MPC to be highly alert to reach 4 per cent inflation target
 

12:09 PM

RBI Presser LIVE: Steady decline in core inflation indicates that policy is working, says Guv Das

>> Inflation management cannot be on auto-pilot as future outlook is uncertain due to volatile food prices. 

>> CPI data for November is expected to be high. 

12:06 PM

COMMENT:: Retail and SME segment would lead to credit growth hereon

As expected, the RBI has maintained the status quo on policy rates, with no change in its stance. The regulator has revised its growth forecast to 7% vs 6.5% earlier. 

 

While inflation estimates have been retained, near-term inflationary pressures primarily due to food inflation are expected to be visible. This development could make RBI maintain the status quo on rates in the upcoming meetings before considering rate cuts in the latter part of H1FY25. 

 

With the recent move by the RBI to increase risk weights on personal and credit card loans, we expect credit growth to slow down in these segments. 

 

The Retail and SME segment would lead to credit growth hereon. Pressures on margins for banks will continue. 

 

Currently, we prefer the larger banks vs the smaller/mid-sized peers.

 

- Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS

 

11:59 AM

COMMENT:: RBI expects growth in the Indian economy

In the fifth monetary policy of the financial year 2023-24, the RBI has decided to keep the repo rates unchanged at 6.5 percent while maintaining a stance of 'withdrawal of accommodation'.  

 

With regard to the Indian economy, the RBI holds the view that the Indian economy has presented a picture of resilience and momentum. India’s Real GDP growth for FY24 is projected at 7 percent from 6.5 percent while Real GDP for Q1FY25 is projected at 6.7%, for Q2FY25 at 6.5%, and for Q3FY25 at 6.4%. 

 

On the other hand, the inflation projection for FY2024 stands  at 5.4 percent.

 

With regards to global arena, RBI holds the view that the global economy remains fragile due to elevated debt levels, lingering geopolitical tensions and extreme weather conditions.

 

- Aamar Deo Singh, Head Advisory, Angel One Ltd. 

 

11:49 AM

COMMENT:: RBI may still consider deploying different tools in sucking out liquidity

With a focus on inflation, liquidity & currency management, the repo rate is expected to remain 6.50% for next 6-9 months. The market has realised that the current repo rate is the new normal

 

With no change in the repo rate, there will be no changes in floating-rate home loans and other advances which are linked to an external rate such as the repo rate. The affordable housing market has already taken some beating due to the prolonged higher repo rate.

 

RBI may still consider deploying different tools in sucking out liquidity from market incase the inflation further shoots up.

 

- Himanshu Panchmatiya, Cofounder, Switch My Loan

11:35 AM

Rate sensitive shares mostly higher as RBI holds repo rate; Auto pack lags

Barring auto stocks, shares of rate sensitive sectors including banks, non banking financial companies (NBFCs), housing finance companies and realty companies were uniformly higher on Friday after the Reserve Bank of India kept the benchmark repo rate unchanged for the fifth time. Read

11:25 AM

IREDA soars 14% on heavy volumes; stock zooms 129% against issue price

The stock made its debut on November 29. During the past three decades, IREDA has been supporting all forms of RE -- solar, wind, hydro -- and even newer technologies. READ MORE

11:10 AM

View: Market rally to continue with intermittent consolidation

The RBI policy has maintained the expected line with no change in policy rates or stance. Governor Das expressed confidence in economic growth, anticipating inflation to reach 4.2% by Q3 2024.

Our market continues its bullish momentum with the Nifty reaching a significant milestone of 21,000. We believe this momentum will persist, potentially experiencing some consolidation along the way.

Banking and financial stocks are particularly well-positioned to outperform, given their current valuations and fundamental strengths.
 

Nifty can head towards 21,275/21,500 and Bank Nifty can test 48,800/50,000 in the medium term

Views by Santosh Meena, Head of Research, Swastika Investmart. 

11:03 AM

Consumer durables see single-digit growth as penetration remains low

According to GfK, a market research firm tracking the consumer durables sector, the industry grew 6 per cent from January to September this year. READ MORE

10:50 AM

RBI policy impact: Nifty Realty top sectoral winner