What RBI"s neutral repo rate hike means for you https://t.co/mMeH4kEedc— Livemint (@livemint) June 7, 2018
Market Wrap: Sensex jumps 284 points led by Reliance, ICICI Bank, Nifty settles at 10,768
BSE Sensex closed 284.20 points higher at 35,463.08, while the Nifty 50 ended 83.70 points up at 10,768.35. Here are the highlights from the markets
Last Modified: Thu, Jun 07 2018. 05 02 PM IST
- 3.37 pm ISTClosing bell
- 2.40 pm ISTMarket update: Sensex, Nifty hold gains
- 2.37 pm ISTBrokerages expect more RBI rate hikes this year
- 2.32 pm ISTGold prices rise on global cues, silver tops Rs41,000-mark
- 2.20 pm ISTRupee, bond prices fall a day after RBI rate hike
- 2.09 pm ISTOnward Technologies signs up with Quark Software
- 1.02 pm ISTSensex, Nifty extend gains led by banking stocks
- 12.50 pm ISTInfosys shares up 2%
- 12.18 pm ISTRBI eases bad loan classification norms for MSMEs
- 12.05 pm ISTNifty hits three-week high
- 10.53 am ISTMarket update: Sensex, Nifty extend gains
- 10.50 am ISTHindustan Unilever shares rise nearly 2%
- 10.47 am ISTWhat RBI’s neutral repo rate hike means for you
- 10.05 am IST10-year bond prices fall further after RBI hikes rates
- 9.30 am ISTBanking stocks trade higher
- 9.27 am ISTVideocon shares fall 5% as NCLT admits insolvency plea
- 9.25 am ISTMarket update: Sensex, Nifty open higher
- 9.20 am ISTAsian markets trade higher
- Mumbai: BSE Sensex and NSE’s Nifty 50 rose for a second straight day on Thursday led by gains in financial stocks a day after the Reserve Bank of India hiked key interest rates. RBI’s monetary policy committee voted unanimously to raise policy rates by 25 basis points to 6.25%, the first such hike in more than four years, as inflation concerns mounted. The Indian rupee and government bond prices extended losses. Meanwhile, domestic investors had net bought shares worth Rs712.31 crore, while foreign funds sold shares to the tune of Rs81.40 crore on Wednesday, showed provisional data. Here are the highlights from the markets:
- 3.37 pm IST Closing bellBSE Sensex closed higher by 284.20 points, or 0.81%, to 35,463.08, while the Nifty 50 rose 83.70 points, or 0.78%, to close at 10,768.35. Outperforming the benchmark, MidCap and SmallCap gained 1.40% and 1.96%, respectively.All the sectoral indices on BSE, except consumer durables, closed higher led by realty (2.77%), basic materials (1.61%), industrials (1.51%) and metal (1.44%). Tata Steel, Tata Motors, ICICI Bank and Axis Bank were top gainers, whereas Coal India, IndusInd Bank, Kotak Bank and SBI were among the major losers.
- 2.37 pm IST Brokerages expect more RBI rate hikes this yearBrokerages expect the Reserve Bank of India (RBI) to raise policy rates by another 50 basis points by March-end, after it hiked rates on Wednesday.Nomura analysts expect RBI to push rates up by another 25 basis points at the next policy meet in August and then maintain status-quo. “Expect recent tightening of financial conditions and higher oil prices to slow growth in H2 FY19,” added Nomura.Citi India economists are betting on further increase in rates in October, while Morgan Stanley expects the rise in rates to be “front-loaded” with hikes in both August and October. “Total quantum of rate hikes will remain at 75bps for this cycle,” notes Morgan Stanley.Analysts at JP Morgan opine that the recent tightening of global financial conditions has made “the timing between today and the August review a toss-up.”UBS Securities India analysts believe MPC retaining neutral policy stance despite the rate hike suggests that “this is a shallow rate hike cycle and will likely be data dependent.” (Reuters)
- 2.32 pm IST Gold prices rise on global cues, silver tops Rs41,000-markRising for the second straight day, gold prices advanced by Rs10 to Rs31,870 per 10 grams at the bullion market on persistent buying by local jewellers amid a firm trend overseas.Silver prices, too, reclaimed theRs 41,000-mark by surging Rs250 per kg backed by increased offtake by industrial units and coin makers. (PTI)
- 2.20 pm IST Rupee, bond prices fall a day after RBI rate hikeThe 10-year government bond prices on Thursday declined further following the Reserve Bank of India’s (RBI) move to raise key interest rates and change liquidity coverage norms.At 2.10pm, the 10-year bond yield stood at 7.982%—a level last seen on 8 May 2015, from its Wednesday’s close of 7.913%. Bond yields and prices move in opposite directions.Meanwhile, the Indian rupee weakened against US dollar. The currency was trading at 67.05, down 0.18% from previous close of 66.93.
- 1.02 pm IST Sensex, Nifty extend gains led by banking stocksBSE Sensex traded higher by 378.32 points, or 1.08%, to 35,557.20, while the Nifty 50 rose 110.95 points, or 1.04%, to 10,795.60. BSE MidCap and SmallCap gained 1.26% and 1.88%, respectively.All the sectoral indices on BSE traded higher led by realty (2.49%), metal (1.98%), bankex (1.51%) and energy (1.43%). In the 30-share basket, Axis Bank, Tata Steel, ICICI Bank and Reliance were leading the gainers, whereas Coal India, Power Grid and Sun Pharma were traded marginally lower.Banking stocks extended gains. NSE’s Nifty Bank Index rose 1.46% to 26,753.40 led by Axis Bank and ICICI Bank.
- 12.18 pm IST RBI eases bad loan classification norms for MSMEsIn a move aimed at formalizing the economy further and creating more jobs, the Reserve Bank of India (RBI) has eased bad loan classification norms for micro, small and medium enterprises (MSMEs).Bank loans to all MSMEs having credit facility of up to Rs25 crore will now be classified as non-performing assets (NPAs) as per the 180-days due criterion.In February, banks and non-banking financial companies (NBFCs) were allowed to temporarily classify their exposure to MSMEs registered under the goods and services tax (GST) as per the 180-days due criterion rather than the 90-days due criterion. It was done to ease the transition of MSMEs to the formalized sector under GST. Read more
- 12.05 pm IST Nifty hits three-week highThe Nifty 50 rose to a three-week high with private-sector lenders such as Axis Bank and ICICI Bank leading gains, a day after RBI raised its policy rate for the first time in over four years.The Nifty was up 0.92% at 10,782.45 as of 11.12am, having earlier risen as much as 0.95% to its highest level since 16 May.The benchmark BSE Sensex was 0.96% higher at 35,517.02, rising 0.99% to clock its biggest intraday percentage gain since 31 May.The rate hike is a negative but markets are recovering due to short-covering, since people sold off their positions at higher levels prior to the RBI meet and are now covering their positions at lower prices, said Sumit Pokharna, vice president, Kotak Securities. “Investors were anticipating a rate hike due to depreciation of the rupee, major selling in the debt markets and rising inflation on concerns over crude prices,” he added. (Reuters)
- 10.50 am IST Hindustan Unilever shares rise nearly 2%Shares of Hindustan Unilever Ltd rose as much as 1.7% at Rs1,597.10, their biggest intraday gain since 31 May. Credit Suisse raises price target to Rs1,750 from Rs1,675, maintaining “outperform” rating.“At its annual analyst meet on Wednesday, HLL showcased cutting edge work within the FMCG industry on digital and data analytics, and how it is reshaping new age marketing ... this could be an advantage for HLL against existing competitors,” said Credit Suisse in a note.26 of the 40 analysts covering the stock have a “buy” or higher rating, 8 have “hold” while 6 rate it at “sell” or lower; median PT is 1,639.50 rupees, showed Thomson Reuters data. Hindustan Unniliver shares had risen 43.9% in 12 months up to Wednesday’s close, while the Nifty FMCG index gained 9.8%. (Reuters)
- 10.47 am IST What RBI’s neutral repo rate hike means for youA neutral rate hike by the Reserve Bank of India means that bank loans will attract higher interest rates but fixed deposits will fetch better returns
- 10.05 am IST 10-year bond prices fall further after RBI hikes ratesThe 10-year government bond prices declined further on Thursday following the Reserve Bank of India’s (RBI) move to raise key interest rates and change liquidity coverage norms.The 10-year bond yield stood at 7.945%—a level last seen on 15 May 2015, from its Wednesday’s close of 7.913%. Bond yields and prices move in opposite directions.Meanwhile, the Indian rupee weakened against US dollar. The currency was trading at 67.07, down 0.22% from previous close of 66.93.
- 9.27 am IST Videocon shares fall 5% as NCLT admits insolvency pleaShares of Videocon Industries Ltd fell 5% to Rs 8.62 after National Company Law Tribunal (NCLT) on Wednesday admitted the insolvency plea filed by the State Bank of India (SBI) against Videocon Industries Ltd, controlled by Venugopal Dhoot.
- 9.20 am IST Asian markets trade higherAsian markets built on their latest rally Thursday as investors tracked another strong lead from Wall Street, with fresh upbeat US data reinforcing optimism in the global outlook, overshadowing simmering trade concerns.In equity markets, Tokyo ended the morning session one percent higher, while Hong Kong rose 0.6%— putting it on course for a sixth successive gain. Shanghai added 0.3%, Sydney was 0.8% higher and Seoul put on 0.7%. Singapore, Taipei, Wellington, Manila and Jakarta were also sharply higher. (AFP)
First Published: Thu, Jun 07 2018. 09 27 AM IST
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