RBI's hike is the third one since the beginning of the current financial year aimed at taming the inflationary pressure. Asian markets ended in green but the European markets started slight low as they keep an eye on the US jobs report to assess the health of its economy.
Sensex and Nifty gained marginally on the back of RBI's rate hike. Sensex added 90 points and Nifty 15.
Indian benchmark indices reacted in a meek manner to the RBI's rate hike of 50 basis points and ended the day with a slight jump. The Sensex added 89 points to close the week at 58,387. Nifty gained 15 points to finish at 17,397 on Friday.
Ultratech Cement and ICICI Bank were among the top gainers throughout the day and ended with a gain of more than 2%. Mahindra and Mahindra slipped by 2% following its quarterly report. Autos and Consumer Durables declined in today's session, whereas IT stocks gained the most.
RBI increased the interest rate by 50 basis points to 5.4% and has retained the FY23 GDP growth forecast at 7.2%.
Other Asian markets also ended in green on Friday. Tokyo shares closed higher following the Thursday tech gains on Wall Street. The benchmark Nikkei 225 index climbed 0.87%.
Chinese indices ended the week with a small gain as concerns over China's military drills around Taiwan eased. The Hang Seng Index added 0.14% and the Shanghai Composite Index climbed 1.19%.
European equities slipped slightly on Friday but were still set for a weekly gain.
The markets will be treading cautiously as they wait for U.S. jobs data due later in the session to give clues as to the health of the world's largest economy.
Views of InCred Financial & Ashika Group on RBI Monetary Policy
Amit Jain, co-founder of Ashika Global Family Office Service:
In line with expectation, the RBI has raised the repo rate by 50 bps which is an appropriate action keeping in mind the global inflationary environment. Yesterday for the first time after 1997 Bank of England raised 50bps in their policy rate. As of now, Indian 10-year Gsec is trading around 7.26% which we believe will peak out around 7.8% by the end of the CY2022.
Vivek Bansal, executive director & group CFO, InCred:
The hike is on expected lines and driven by strength of dollar, volatile macro situation and continued high inflation. It is expected that inflation will come down over next 3-6 months as commodity prices have already cooled down significantly from peak levels. Given strong growth momentum visible, it was prudent to focus on containing inflation to make growth more broad based.
No proposal for bilateral trade deal with Afghanistan: MoS Muraleedharan
Minister of State (MoS) for External Affairs V Muraleedharan on Friday rejected any claims that India is in talks with a bilateral trade agreement with Afghanistan for the import of Lithium.
"There is no proposal for such a bilateral trade agreement with Afghanistan," said Muraleedharan in response to an unstarred question in Lok Sabha.
Answering whether the Government is aware of the effect of extending China Pakistan Economic Corridor to Afghanistan, the Union Minister said, the government has seen reports regarding the proposed extension of the so-called CPEC.
Vedantu reportedly handed pink slips to more than 100 employees
The stress in the Indian startup sector especially in the ed-tech startup sector continues, with funding drying up and also schools opening up everywhere after remaining closed for two years due to the Covid-19 pandemic.
Edtech major Vedantu has reportedly handed over pink slips to more than 100 employees in the latest round after firing more than 600 employees in May in a bid to sustain itself in a tough external environment and fear of recession.
According to a report published in Inc42 quoting sources, more than 100 employees were told to put down their papers in the first week of July post the appraisal process got over. Employees from various teams like sales and training were laid off according to the report.
India 5-10 year bond yield spread shrinks on bets of
The spread between India’s five-year and liquid 10-year benchmark bond yields compresses, as market participants anticipate more rate hikes in the coming months after another 50 bps move from the Reserve Bank of India.
The five-year bond yield was trading at 7.06% at 0900 GMT, while the 10-year bond yield was at 7.30%, with the spread shrinking to 24 basis points against 30 basis points at the beginning of this week.
Gold marginally lower; silver falls ₹487
Gold in the national capital on Friday was marginally down by ₹9 to ₹52,592 per 10 grams, according to HDFC Securities.
The yellow metal had closed at ₹52,601 per 10 grams in the previous trade.
Silver also declined by ₹487 to ₹58,477 per kg from ₹58,964 per kg in the previous trade.
PM Narendra Modi to chair NITI Aayog governing council meeting on Sunday
Prime Minister Narendra Modi will chair the seventh governing council meeting of the NITI Aayog on Sunday and this, his office said, will pave the way for a new era of collaboration between the Centre and the states.
This will be the first physical meeting of the council after July 2019 and its members include all the chief ministers.
As the country commemorates 75 years of its independence, there is a reinforced need for the states to be agile, resilient and self-reliant and move towards "Aatmanirbhar Bharat" in a spirit of cooperative federalism, the Prime Minister's Office (PMO) said.
India to allow additional 1.2 million T of sugar exports
India will allow the export of an additional 1.2 million tonnes of sugar, a government official said on Friday.
The notification allowing exports would be issued by the end of the day, federal food secretary Sudhanshu Pandey told reporters on the sidelines of a news conference.
Reuters reported last week that the government would allow additional sugar exports after allowing companies' requests to let them ship out stocks that had piled up in ports and warehouses.
Consumer Durable index drag the market, almost all stocks in red.
European stocks slip, oil recovers, traders await U.S. jobs data
European equities slipped slightly on Friday but were still set for a weekly gain, while traders waited for U.S. jobs data due later in the session to give clues as to the health of the world's largest economy.
The MSCI world equity index, which tracks shares in 47 countries, was up 0.2% and on track for a weekly gain of 0.7% - marking its third consecutive week of gains.
At 0823 GMT, the STOXX 600 was down 0.1%, France's CAC 40 and Germany's DAX were flat. London's FTSE 100 was down 0.2%.
Britannia stock drags; loses 2% in today's session
Multibagger stock rises over 16% after Q1 results. Do you own?
After the announcement of Q1FY23 results on Thursday, BSE-listed Orissa Bengal Carrier shares have attracted strong buying interest among the market bulls on Friday. In the morning session, shares of the logistics company opened with an upside gap and went on to hit intraday high of ₹130.40 apiece levels on BSE, logging around 16 per cent from its Thursday close of ₹108.70 apiece levels. (Read More)
India's Pine Labs eyes $4-5 billion in monthly payments volume from new business
India's Pine Labs is targeting $4 billion to $5 billion in monthly transactions within two years for its new online payments business, its chief executive told Reuters.
At that point, online payments should contribute 20% of revenue, Pine Labs chief executive Amrish Rau said, disclosing the company's targets for the first time since it entered online payments.
Valued at $5 billion and with investors including Mastercard and Singapore's Temasek, Pine Labs has for years provided point-of-sale machines to offline merchants for card payments.
Prabhudas Lilladher on RBI Policy: RBI will go for a 15bps - 25bps hike in the next MPC meeting
Ritika Chhabra- Economic and Quant Analyst, Prabhudas Lilladher: “Markets were expecting a rate hike between 35-50 bps, so the RBI hike of 50 bps is on the higher side of the expectations. The RBI emphasized that it remains committed to the withdrawal of the liquidity to the contain the inflation. However, the governor did mention that the signs of moderation in inflation are emerging in form of ease in metals and food commodities and inflation is expected to be within the tolerance limit at 5.8% by Q4FY23. There was no forward guidance on the rate trajectory going forward, however, we believe that with much of the front loading behind us and oil prices also easing, RBI will go for a 15bps - 25bps hike in the next MPC meeting."
Paytm down for several users, company says 'trying to fix the issue'
Digital payment platform Paytm, on Friday, assured to fix the issues hours after several users reported glitches while making the transactions through the app on social media.
"Due to a network error across Paytm, a few of you might be facing an issue in logging into the Paytm Money App/website. We are already working on fixing the issue at the earliest. We will update you as soon as it is resolved," a tweet read on Paytm Money's handle.
Zomato rejects EY’s new valuation that lowers its share price for Blinkit deal
Online food aggregator and delivery platform Zomato on Friday said its board has rejected EY’s latest valuation report that lowered its share prices for acquiring quick commerce firm Blinkit. The board has decided to keep the preferential price at ₹70.76 as pegged by EY earlier. (Full report)
London shares open lower as energy stocks weigh
UK shares opened slightly lower on Friday, with energy stocks leading the declines, a day after the Bank of England raised interest rates by the most in 27 years.
The FTSE 100 index dipped 0.1%, while the midcaps index also shed 0.1%.
The FTSE 100 index ended flat on Thursday after the British central bank's Monetary Policy Committee raised its Bank Rate by half percentage point to 1.75% - the highest level since late-2008.
Tata Motors aim to grow in excess of 40% over Q2 FY22, says VP (Sales)
With an eye on the upcoming Onam season, Tata Motors, a home-grown automaker, plans to increase its sales in Kerala by 40% in the second quarter of the financial year 2022. Rajan Amba, the Vice-President, Sales, Marketing and Customer Care of Tata Motors Passenger Vehicles Ltd, said Kerala is a big market for the hatch and SUV segment of vehicles. Amba was in Kerala to announce the consumer offers for the automotive brand ahead of the Onam festival in Kerala.
M&M Q1 net profit, revenue rise 67% respectively; shares fall
Mahindra and Mahindra (M&M) reported Q1 FY23 results on Friday in which its standalone net profit rose more than 67% to ₹1,430 crore as compared to ₹855 crore year-on-year (YoY). Its revenue increased by 67% to ₹19,613 crore from ₹11,765 in the year-ago quarter. (Full Report)
MAHINDRA & MAHINDRA
Views on Nifty - Technicals and Derivates
Sameet Chavan, chief analyst-technical and derivatives, Angel One Ltd
"On the technical front, 17450-17500 still holds the sturdy wall for the bulls, and a decisive closure above the same could only trigger fresh longs in the system. Meanwhile, any dip towards the 17200 zone is likely to get bought into, while the sacrosanct support lies around the unfilled gap and psychological mark of the 17000.
Hence, looking at index placements and the recent price action that construes the undertone to favor the bulls, participants are advised to avoid aggressive bets and stay abreast with global and domestic developments. Also, we advocate continuing with a stock-centric approach for better trading opportunities."
Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking Ltd
“Past two consecutive days of similar pattern formation indicates that volatility is likely to rule in the coming sessions and inability to surpass the immediate resistance level of 17500 makes the viewpoint stronger. The pattern specifies of an upcoming reversal in the market but no signs of exhaustion can be seen yet through oscillators, though the indicator has flattened during the period. On the downside, the psychological level of 17000 which further coincides with the 200dma would be the immediate short-term trend deciding level for the market. On the upside, the elevated target level for Nifty is around 17500 (being 80% retracement of two-month decline (18100-15183). Hence, during the day Index is likely to witness gap up opening tracking global cues and is expected to head northward to challenge the 17500 levels, use intraday dip towards 17200-17250 to create long position for the target of 17575."
Yes Securities says RBI's Integrated Ombudsman Scheme for Credit Information Cos will foster more discipline
Credit Information Companies (CICs)
It has been decided to bring CICs under the RBI – Integrated Ombudsman Scheme.
As per the RBI, this has been done to provide cost-free alternate redress mechanism to customers for grievances against CICs.
Potential impact: This will foster more discipline on the part of CICs in terms of how they analyse borrower data before making hitherto unilateral numerical pronouncements about borrower creditworthiness.
RBI rate hike impact: What stock, bond market investors should know
The Reserve Bank of India (RBI) raised the key policy repo rate by 50 basis points while Governor Shaktikanta Das remained optimistic about domestic growth. He said that the domestic economic recovery is getting more broad-based despite a lot of uncertainties on the global front. (Full Report)
Shriram Housing Finance plans to issue 4-year bonds - traders
Shriram Housing Finance Ltd plans to raise ₹580 million through the sale of bonds maturing in four years, three merchant bankers said on Friday.
The non-banking finance company will pay an annual coupon of 8% on the issue and has invited commitment bids from bankers and investors on Monday, according to the merchant bankers.
The bonds are rated AA by CARE Ratings and the issue will close for subscription next week.
JB Pharma’s revenue surges 30% in Q1, PAT declines
JB Pharmaceuticals recorded a revenue of ₹785 crores in the quarter ended June, up 30% over the corresponding quarter of last year. Profit after tax, however, declined to ₹105 crore in Q1FY23 as compared to ₹119 crores on account of finance costs and acquisition of brands. (Full report)
Gail India stock among laggards, slides 4%
Noon Update: Indices in green post RBI 50 bps rate hike. Sensex gains 200 points and Nifty 50 points.
Ultratech Cement and ICICI lead the rally with a gain of 2%; Reliance and Maruti Suzuki are trading 1% down
Tokyo shares close higher ahead of US job data
Tokyo shares closed higher on Friday following tech gains on Wall Street while traders awaited the US job data due later in the day.
The benchmark Nikkei 225 index climbed 0.87%, or 243.67 points, to end at 28,175.87, while the broader Topix index rose 0.85%, or 16.44 points, to 1,947.17.
How loan EMIs, bank FDs could be impacted by RBI's interest rate hike
The Reserve Bank of India (RBI) today raised repo rate by 50 bps to 5.40 per cent, thus reaching to pre-Covid levels. Aiming to contain inflation by squeezing the liquidity in the market, RBI Governor Shaktikanta Das-led Monetary Policy Committee (MPC) hiked the policy repo rate for the third time in a row on Friday.
Home loan EMI of new borrowers is expected to shoot up by near ₹1,000 per month, if banks raise home loan interest rate by 50 bps, say experts. (Full Report)
India reports 70 Covid deaths, 20,551 new cases in a day
India has logged more than 20,551 covid cases and 70 deaths in the last 24 hours. There are around 1,35,364 active cases at present, the union health ministry data stated on Friday.
India has administered more than 205.58 crore vaccination doses under the nationwide vaccination drive.
The active cases stand at 0.31% while the recovery rate is currently at 98.50%. At least 21,595 people have recovered from the infection in the last 24 hours increases with total recoveries reaching to 43445624 so far.
The MPC decisions have been in line with our expectations: Kotak Mahindra Bank
Upasna Bhardwaj, chief economist, Kotak Mahindra Bank said, "The MPC decisions have been in line with our expectations. Given the increasing external sector imbalances and global uncertainties the need for frontloaded action was imperative. We continue to see 5.75% repo rate by Dec 2022."
PSU Bank index gains the most in today's session, up almost 1.5%
India's Tata Capital Housing Finance accepts bids on bonds - traders
ndia’s Tata Capital Housing Finance has accepted bids worth an aggregate 4.92 billion rupees ($62.20 million)on its two-part bond issuance, three merchant bankers said on Friday.
The housing finance company has accepted bids worth 2.92 billion rupees on three-year bonds and will pay an annual coupon of 7.55%.
It has accepted bids worth two billion rupees on five-year bonds and will pay an annual coupon of 7.80% to investors.
India’s reserves fourth largest globally: RBI Governor
Despite the drawdown of foreign exchange reserves to limit rupee volatility, India’s reserves remain the fourth largest globally: RBI Governor Shaktikanta Das
HDFC raises USD 1.1 bn 'social loan' for financing affordable housing segment
Mortgage lender HDFC Ltd on Friday said it has raised USD 1.1 billion (around ₹8,700 crore) from a clutch of investors under 'Syndicated Social Loan Facility' to cater to the affordable housing segment.
HDFC Ltd has raised the amount by way of external commercial borrowings (ECBs).
"This landmark financing further promotes HDFC's longstanding mission to be the leading provider of housing finance in India. Proceeds from the social loan would go towards financing affordable housing loans," the company said.
FDI figure remains robust: RBI
Foreign Direct Investment at 13.6 billion dollars in the first quarter of the current financial year was robust, as compared to 11.6 billion dollars in the first quarter of last year: RBI Governor Shaktikanta Das
Surplus liquidity in the banking system down: RBI Governor
Surplus liquidity in the banking system has come down to ₹3.8 lakh crore, from ₹6.7 lakh crore in April-May, said the RBI Governor, adding that a rise in term deposit rates should increase liquidity for the financial sector.
Prabhudas Lilladher recommendations on Britannia, DMart, KEC, and Gail India
Britannia Industries (BRIT IN): HOLD | CMP: Rs3,775 | TP: Rs3,880
Avenue Supermarts (DMART IN): BUY | CMP: Rs4,239 | TP: Rs4,636
KEC International (KECI IN): ACCUMULATE | CMP: Rs444 | TP: Rs473
GAIL (India) (GAIL IN): BUY | CMP: Rs140 | TP: Rs180
CPI forecast for FY23 kept unchanged at 6.7%: RBI
Consumer price index (CPI) inflation remains uncomfortably high and is expected to remain above 6%: RBI Governor.
RBI retains FY23 GDP growth forecast at 7.2%
The RBI has retained its FY23 gross domestic product (GDP) growth forecast at 7.2%
RBI's decision brings the interest rate to the pre-pandemic level
Successive shocks to global economy taking toll: RBI Governor
RBI Governor stated that successive shocks to the global economy are taking a toll, but India is expected to be amongst the fastest growing economy in the world
Marginal Standing Facility (MSF) and Bank rates have been adjusted to 5.65% from 5.15% : RBI
RBI hikes repo rate by 50 bps to 5.4%
The rate hike of 50 basis points will go into effect immediately
Bank and Financial Sector stocks zoom; Oil & Gas Index slides
Ultratech Cement gains 2% in morning trade
Edible oil price to reduce by ₹10-12 after makers decided to cut retail prices
In what may come as a relief for the common man, the price of edible oils may see a further reduction in the coming days. The development took place after the edible oil processors and manufacturers agreed to cut prices by ₹10-12 to pass on the benefits of a decline in global prices to consumers, according to a report.
“Cooking oil manufacturers have agreed to further slash edible oil prices by ₹10-12 in view of softening global prices. We had a good meeting with them where we made a detailed presentation with data," said one of the officials, asking not to be named as reported by Hindustan Times.
India's Power Finance Corp to issue multi-tenor bonds - traders
India’s Power Finance Corp plans to raise funds through sale of bonds maturing in three years as well as 10 years, four merchant bankers said on Friday.
The state-run company plans to raise at least five billion rupees ($63.20 million) through each issue, with the three-year bonds having a greenshoe option to retain an additional 20 billion rupees, and the 10-year notes to retaiin additional 10 billion rupees.
The company has invited coupon and commitment bids from bankers and investors for the same on Monday.
POWER FINANCE CORP
Reliance Securities Stock in Focus: SAIL
STOCK IN FOCUS
SAIL (CMP Rs.77)
We have a BUY rating on the company with a Target Price of Rs94.
EXIDEIND (PREVIOUS CLOSE: 157) SELL
For today’s trade, short position can be initiated in the range of ₹159- 161 for the target of Rs.154 with a strict stop loss of ₹162.
HINDPETRO (PREVIOUS CLOSE: 245) BUY
For today’s trade, long position can be initiated in the range of ₹240- 242 for the target of Rs.250 with a strict stop loss of ₹236.
LTTS (PREVIOUS CLOSE: 3526) BUY
For today’s trade, long position can be initiated in the range of ₹3450- 3500 for the target of Rs.3620 with a strict stop loss of ₹3400.
Sensex and Nifty opened flat on Friday with each up around 100 and 40 points, respectively.
Indian rupee strengthens ahead of RBI decision
The Indian rupee firmed ahead of a central bank monetary policy decision on Friday, supported by overnight weakness in oil prices and the dollar.
The partially convertible rupee was trading at 79.15 per dollar in the early morning, compared to its previous close of 79.4650.
Markets are keenly awaiting the Reserve Bank of India's policy decision at the end of a three-day meeting, where it's widely expected to increase its key interest rate from anywhere between 25 basis points and 50 basis points.
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