Sensex up 144pts, Nifty nears 17,600 as RBI pauses hike; realty stocks jump

CLOSING BELL: Shaktikanta Das said the move was only "a pause and not a pivot"

12:13 PM

RBI Press Conference LIVE: US rate action does not influence MPC's decision, says Guv

>> Monetary policy primarily determined by domestic factors
>> US rate action does not determine RBI MPC's rate action

12:10 PM

RBI Press Conference LIVE: Average inflation projected 5.2% in FY24, however target 4%, says Guv

12:05 PM

RBI Press Conference LIVE: MPC watchful & won't hesitate on further rate hikes, says Guv

>> Effective rate increase 290 basis points in the last one year
>> Overnight call rates were up 320 basis points in the last one year
>> MPC remains watchful and will not hesitate to take further rate hike actions
>> Focus continues on price stability

11:55 AM

EXPERT COMMENT: Pause in repo rate hike a big cheer for realty industry

Today’s pause in the rate hike cycle is a very positive and welcoming move by the RBI. The consumer inflation in the economy has sustained above the RBI’s upper threshold of 6 per cent and is more likely to remain sticky in the next few months, following the recent crude oil production cut by the OPEC countries and Russia. Consumer inflation arising from such events is beyond the central banks’ control. Any further hike in the repo rate and lending rates along with sustained inflation could potentially reduce the spending capacity of the consumers, which in turn can dampen India’s economic growth. Therefore, the RBI’s decision to pause its rate hike cycle is supportive of economic growth.

 

From a real estate market perspective, the sector has weathered multiple home loan interest rate increases from a low of 6.5 per cent to 8.75 per cent, supported by favourable house purchase affordability and the strong desire towards home ownership. Therefore, a pause in any further rise in the lending rates should support the existing growth momentum in the housing sector.

Views expressed by Shishir Baijal, Chairman & Managing Director, Knight Frank India 

11:48 AM

EXPERT COMMENT: A drop in FY24 inflation projection drove RBI to 'pause' rate hike cycle

The decision to keep the repo rate unchanged at 6.5 per cent is a pleasant surprise as we were expecting a 25 bps hike. With a decrease in inflation projection for FY24 from 5.3 per cent earlier to 5.2 per cent, the real rate now stands at 130 bps, thus, allowing RBI to not go for another rate hike.

Views expressed by Ritika Chhabra- Quant Macro Strategist – Prabhudas Lilladher PMS

11:40 AM

STOCK CHECK | Royal Orchid Hotels secure lease extension for hotel in Mysore

11:34 AM

STOCK CHECK | KEC International bags new orders worth Rs 1,213 crore

11:28 AM

EXPERT COMMENT: Charts reveal Street hopes dovish rate hike action hereon

Finally, the RBI took a break after a year of non-stop rate hikes. Corporates could now heave a sigh of relief that chances of further rate hikes from these levels are slim. However, RBI has still kept the window for further hikes open if inflation rises again or US Fed goes aggressive on rate hikes from here. India 10-year bond yields have also witnessed a sharp cut of almost a percent after the announcement. Yields have been consolidating in a range of 7.5 per cent and 7.2 per cent for more than six months. This is now showing signs of a breakdown on the charts indicating that markets expectation of interest trajectory from here is down.

Views expressed by Rohan Patil, Technical Analyst, SAMCO Securities

11:24 AM

EXPERT COMMENT: Economy & markets will align if RBI's inflation, growth forecast is true

The MPC’s unanimous pause has come as a bit of a surprise. But the RBI Governor has hastened to add that they will hike again if need be. This pause can be seen as a wait and watch response to see how the previous six rate hikes will impact inflation and growth. If the RBI’s projection of 5.2 per cent CPI inflation and 6.5 per cent GDP growth turns out to be true, that would be a benign scenario for the economy and markets. The 6.5 per cent GDP growth rate appears to be on the optimistic side when seen in the context of a slowing global economy.

Views expressed by Dr. V K Vijayakumar, Chief Investment Strategist at Gojit Financial Services

11:17 AM

EXPERT COMMENT: Economy's core strength intact after RBI retains FY24 GDP forecast

In a very surprising move, the RBI kept the repo rate unchanged in today's meeting, against a market expectation of a 25bps hike. However, according to the RBI governor the pause is only for this meeting and MPC remains open to act depending on the data. We believe this is a big positive for the market, where the governor has shown unprecedented flexibility and is willing to act according to the situation rather than be rigid and simply data-driven. Another positive was that RBI continued to maintain the FY24 GDP projection at 6.5 per cent, essentially signalling that the core strength of the economy remains intact. Inflation projection too has been retained at 5.2 per cent.

Views expressed by Sushant Bhansali, CEO, Ambit Asset Management

11:09 AM

EXPERT COMMENT: Unchanged repo rate bodes well for rate-sensitive sectors

Contrary to expectations of 25 bps hike in policy rate, RBI has decided to take a pause in interest rate hikes this time around. However, it has kept the window open for any further action on interest rates depending upon the incoming economic data and any changes in the global macro scenario. Interestingly, the decision to not go for a rate hike is an unanimous decision by members of the Monetary Policy Committee (MPC). Also, for fiscal 2023-24 (FY2024), the projections for real GDP growth rate increased to 6.5% (up from 6.4% earlier and higher than the projections by World Bank and IMF) while the forecast for retail inflation is reduced to 5.2% as against 5.3% earlier. The overall commentary is also quite positive with expectations of a broad-based growth in the economy with financial stability reflected in the rising forex reserves and current account deficit under control. Markets are reacting positively to the policy with easing of bond yield and upsurge in the interest rate sensitive stocks. We remain positive on equity markets and expect interest rate sensitive sectors like real estate, auto, banks, financials along with engineering/capital goods to lead the rally in the near-to-medium term.

Views expressed by Jaideep Arora, CEO, Sharekhan by BNP Paribas

10:58 AM

Rate sensitive shares gain up to 3% as RBI keeps repo rate unchanged

At 10:15 AM; Nifty Bank, Nifty Financial Services, Nifty PSU Bank, Nifty Private Bank and Nifty Realty indices were quoting higher by up to 1.3 per cent. READ MORE

10:53 AM

Rupee falls below 82 against US dollar after RBI hits pause on rate hikes

The rupee declined to an intraday low of at 82.06 per U.S. dollar versus 81.88 before the RBI policy announcement. READ MORE

10:44 AM

Market Reacts:: Sensex up 140 pts, holds steady gains post surprise status quo RBI policy

10:42 AM

EXPERT COMMENT: Unchanged repo rates a boon for housing market

Much against general expectations, the RBI decided to keep the repo rates unchanged at 6.5% today. This is indeed good for the residential real estate market, which faces a tough road ahead amid massive layoffs by large corporates the world over. India is not decoupled from global economic dynamics and their invariable impact on the housing uptake here. The RBI’s decision to keep the repo rates unchanged comes as a welcome respite to homebuyers.

Views expressed by Anuj Puri, Chairman – ANAROCK Group