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Sensex gains 381 points, Nifty sees record close after RBI policy announcements

Stock market Today: Sensex, Nifty gain over 0.5%. (MINT_PRINT)Premium
Stock market Today: Sensex, Nifty gain over 0.5%. (MINT_PRINT)

  • Sensex was at 60,059.06, up 381.23 points, 0.64%, at close on Friday; Nifty was at 17,895.20, up 104.85 points, or 0.59%; The RBI announced its monetary policy committee decisions on the day. It kept key rates unchanged and maintained status quo on accommodative stance. The announcements did not dampen trading momentum and markets soared on support from IT and PSU banks; realty, FMCG remained top drags, though. 

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Benchmark indices opened firm on Friday and maintained a steady growth trajectory through the day to close in green. IT, bank and metals sectors were among the top engines of the rise. RBI governor Shaktikanta Das announced the decisions of the MPC at 10 am, retaining repo rate at 4% and policy stance as accommodative. The markets continued its positive run through the day with the Sensex holding above 60,000 mark for most part and Nifty hovering in the 17,700-17,900 range. Investors will await a key American jobs report later in the day that could determine the direction of global markets. Two key domestic developments expected post market hours are quarterly results of TCS and a possible announcement of the winning bidder for Air India.

08 Oct 2021, 04:11:04 PM IST

On market closing: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

"The index reached very close to the 17,950 level but failed to sustain there. This is the upper end of the current range. The lower end is 17,400 and unless we do not get past either ends, we will not see a meaningful rally up or down. If we get past 17,950, the next achievable target will be 18200 and if we break 17,400, we should slide down to 17,200."

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08 Oct 2021, 04:04:54 PM IST

Market closing

Sensex and Nifty closed Friday keeping to the positive territory throughout the day. Sensex ended trade with 14 advances and 16 declines, while Nifty saw 23 advances and 27 declines. While Market biggie Reliance, Wipro and Infosys were among top gainers on Nifty, Reliance, Infosys and Tech Mahindra led gainers on Sensex. IT stocks performed well on Friday. Bloomberg reported that S&P BSE Information Technology Index has gained more than 48% this year, trouncing the Nasdaq 100’s performance by about 31 percentage points and is heading for the biggest annual beat since 2009. Higher adoption of information technology resources across industries bodes well for the sector and it could continue the good show in future as well. One announcement that may have supported the rise on Friday is the increase in limits of IMPS to improve digital payments in rural reaches. It offers the potential for tech firms to offer solutions and for growth, among other things.

Sensex heatmap.
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Sensex heatmap.
08 Oct 2021, 03:23:06 PM IST

Global ripples from the commodities boom

You’d think a world tiptoeing its way out of the pandemic might only be good news for governments and economies. Yet, the consequent surge in the price of energy, metals and crops is highlighting the strengths of some countries and the vulnerabilities of others. Oil has climbed 75% since the start of November as major economies vaccinate their populations and reopen after the pandemic shut down factories and grounded planes. Copper—used in everything from cars to washing machines and wind turbines—is trading at levels last seen a decade ago. Food prices have jumped every month since May. That’s been a boon for exporters. The flood of cash is a welcome relief for energy behemoths such as Saudi Arabia and Russia, whose leaderships have domestic challenges to contend with. But there are always two sides to a trade. (Read here)

08 Oct 2021, 03:21:40 PM IST

Sensex heatmap

Sensex heatmap at 3:15 pm.
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Sensex heatmap at 3:15 pm.
08 Oct 2021, 03:13:38 PM IST

S&P BSE realty index

BSE realty index at 3:13 pm
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BSE realty index at 3:13 pm
08 Oct 2021, 03:08:35 PM IST

Stocks slip but heading for weekly gain ahead of U.S. jobs data

European shares slipped on Friday but held most of the previous session's gains as investors welcomed the US Senate's temporary lifting of the debt ceiling and awaited crucial jobs data due later in the session. The rally on Thursday has lifted global stock indexes into positive territory for the week, despite widespread selling initially as investors fretted about soaring energy prices and the prospects of faster than expected interest rate rises to combat inflation. Still, the mood remains nervous—oil prices rallied again back towards multi-year highs and government bond yields climbed in early Friday trading. By 0820 GMT (1:50 pm IST), the Euro STOXX 50 was 0.23% weaker, while the German DAX dropped by a similar amount. Britain's FTSE 100 rose 0.1%. The MSCI world equity index, which tracks shares in 50 countries, was unchanged on the day and is now up 0.8% for the week. The index is 4.4% off its record high reached in early September. Wall Street futures pointed to a small fall at the open.

08 Oct 2021, 02:58:03 PM IST

'World's first fully integrated NFT design lab’ launched

Global animation major Toonz Media Group and GuardianLink are reported to be jointly launching the “world’s first integrated NFT design lab specializing in state-of-the-art non-fungible tokens for custom-made digital assets". The Hindu Businessline has reported that  Toonz studio is venturing into the NFT space with a first-of-its-kind NFT design lab. The Toonz NFTLabs will provide integrated services for artists, creators, collectors, athletes and brands to create curated digital assets and NFTs representing them, the report added.

08 Oct 2021, 02:35:23 PM IST

10-year bond yield climb to highest since 18 months on RBI taper

The 10-year bond yield rose 5 basis points to hit an eighteen-month high after the Reserve Bank of India suspended its government securities acquisition programme, which analysts believe a hawkish step. Government 10-year bond yield was trading at 6.307%—a level last seen on 17 April 2020, from its previous close of 6.267%. Bond yield and prices move in opposite directions. (Livemint)

08 Oct 2021, 02:30:39 PM IST

Carborundum Universal completes acquisition of PLUSS Advanced Tech

Carborundum Universal completed the acquisition / investment in the equity share capital of PLUSS Advanced Technologies Private Limited (PLUSS) aggregating to 71.99% of the paid-up equity capital, Moneycontrol has reported.

08 Oct 2021, 02:26:38 PM IST

RBI policy takeaways: Heena Naik, research analyst, currency, Angel One Ltd

Key policy rates

# The MPC has decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4%.

# Reverse repo rate and marginal standing facility also remains unchanged at 3.35 percent and 4.25 percent respectively.

# The MPC also decided to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of covid-19 on the economy.

Global factors

# Even as the domestic economy is showing signs of mending, the external environment is turning more uncertain and challenging.

Inflation

# Inflation is likely to come lower drawing comfort from the recent catch-up in kharif sowing and likely record production along with adequate buffer stock of foodgrains combined with favourable base effects.

# On the other hand, domestic pump prices remain at very high levels. Rising metals and energy prices, acute shortage of key industrial components and high logistics costs are adding to input cost pressures.

# Taking into consideration all these factors, CPI inflation is projected at 5.3% for 2021-22. CPI inflation for Q1:2022-23 is projected at 5.2%.

Economic activity

# Domestic economic activity is gaining traction with the ebbing of the second wave.

# Rural demand is likely to maintain its buoyancy due robust kharif sowing while acceleration in the pace of vaccination along with the upcoming festival season should bolster urban demand.

# On the other hand, global semiconductor shortages, elevated commodity prices and input costs, and potential global financial market volatility are key downside risks to domestic growth prospects.

# Taking all these factors into consideration, projection for real GDP growth is retained at 9.5% in 2021-22. Real GDP growth for Q1:2022-23 is projected at 17.2%.

Liquidity management

# RBI has indicated its willingness to make a 'gradual' adjustment to the excess liquidity in the monetary system which currently stands at over 9 trillion.

The minutes of the MPC  meeting will be published on 22 October.

The next meeting of the MPC is scheduled for 6 to 8 December.

 

08 Oct 2021, 02:21:09 PM IST

TPG likely to invest $1 billion into Tata Motors' EV unit: report

Tata Group's electric vehicles venture is likely to get funding from private equity firm TPG. The firm is reportedly in talks to invest at least $1 billion in the venture. The investment could also be increased to $1.5 billion and can take valuation of Tata Motors' EV division to $8 billion-$9 billion, reports said.  

08 Oct 2021, 02:15:24 PM IST

On RBI policy: Naveen Kulkarni, chief investment officer, Axis Securities

“RBI continues to be supportive of driving growth in the economy through benign interest rates, keeping liquidity conditions comfortable for all stakeholders. Unchanged policy rates and an accommodative stance keep up the optimism of market participants. Lower inflation projections from 5.7% to 5.3% for FY22 would be a positive factor, signaling to harden interest rates unlikely in the near term. GDP growth remained at 9.5%, with upward revisions in Q2/Q3 FY22 hint at gradual recovery, as the aggregate demand is yet to pick up meaningfully. The halting of GSAP operations is an early sign of normalization, but readiness towards OMOs will keep liquidity conditions sanguine. We believe the backdrop of low-interest rates amidst the festive season will push consumption in housing and its ancillary sectors. We remain positive on stocks such as HDFC Ltd, CanFin Homes, and large banks such as SBI, ICICI Bank."

08 Oct 2021, 02:06:34 PM IST

Nifty FMCG snapshot

Nifty FMCG has been among the top drags on the market today.

Nifty FMCG
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Nifty FMCG
08 Oct 2021, 02:03:05 PM IST

HDFC sells more invoked shares of Ansal

Leading housing finance company HDFC Ltd has informed exchanges that it has sold 1,384,664 shares of Ansal Housing Limited (AHL), representing 2.33% of the paid-up share capital of the firm. 1,165,400 of these shares, representing 1.96% of the paid-up share capital of AHL, were sold on Thursday, HDFC said in a regulatory filing. On 4 August HDFC had informed the invocation on 4,620,000 shares of AHL, aggregating 7.78% of its paid-up share capital, for· recovery of part outstanding dues against loans availed by pledgers/borrowers. On 25 September, HDFC had sold 1,267,504 shares representing 2.13% of the paid-up share capital of AHL.

08 Oct 2021, 01:43:59 PM IST

Mahindra completes booking of 50,000 XUV700 SUVs in under 3 hours

Mahindra has completed the booking process of the first 50,000 units of XUV700 SUV. On the second day of the booking, the company claims to have received booking of 25,000 units in a period of just 2 hours. On the first day of the booking, the company received 25,000 bookings in a matter of just 57 minutes. Mahindra has received cumulative bookings of 50,000 units in total of 3 hours. (Read here)

08 Oct 2021, 01:40:38 PM IST

What the hike in IMPS per transaction limit to ₹5 lakh will lead to

# The decision will lead to increase in digital payments and will provide an additional facility to customers for making digital payments beyond 2 lakh, RBI in its Statement on Development and Regulatory Policies issued on 8 October.

# With RTGS now operational round the clock, there has been a corresponding increase in settlement cycles of IMPS, reducing the credit and settlement risks, RBI has said

# An increase in the amount that can be transferred via IMPS will provide customers with an additional facility to make digital payments beyond 2 lakh.

# The move has implications for transfer of money outside India, too. It is significant as the idea of digital currencies is taking hold globally, and the regulator is making sure digital transfer of rupees is increasingly safer, accessible, compliant, and traceable. 

# The move will help users transfer large amounts of money around the clock, safely, instantly, whether domestically or abroad

# IMPS has been consistently gaining traction as a payment service due to the ease with which it allows transactions. According to RBI's annual report the number of IMPS transactions crossed 32,000 lakh in 2021 to overtake NEFT transactions and were worth over 29 trillion. (Navneet Dubey/Livemint)

 

08 Oct 2021, 01:28:33 PM IST

Secys of DIPAM and civil aviation to meet press: tweets

Twitter is abuzz with posts stating that the secretaries of Department of Investment and Public Asset Management and civil aviation will meet the press at 4 pm today. It is being speculated that the winning bidder for Air India will be announced at the presser. 

08 Oct 2021, 01:14:30 PM IST

Nasdaq Is getting trounced by an Indian tech gauge this year

India’s technology stock gauge is poised to outperform its US peer by the most in 12 years as demand for automation and easy money at home boosts shares. The S&P BSE Information Technology Index has gained more than 48% this year, trouncing the Nasdaq 100’s performance by about 31 percentage points and heading for the biggest annual beat since 2009. The Indian measure—where Asia’s biggest software exporter Tata Consultancy Services Ltd. and outsourcing giant Infosys Ltd. make up more than half of the weighting—has benefited from global demand for automation and digital services. The Reserve Bank of India’s benign monetary policy stance and a selloff in China’s tech shares are also aiding flows into the nation’s $3.5 trillion stock market. (Bloomberg)

08 Oct 2021, 01:08:48 PM IST

Motherson Sumi arm acquires 60% stake in Nanchang JMCG

Samvardhana Motherson Automotive Systems Group B.V., Netherlands, (SMRP BV), a material subsidiary  of Motherson Sumi Systems Ltd, informed exchanges on Friday that its China JV partner Ningbo SMR Huaxiang Automotive Mirrors Ltd has acquired 60% stake in Nanchang JMCG Mekra Lang Vehicle Mirror Co., Ltd. Ningbo SMR Huaxing is a 50:50 joint venture of SMRP BV in China.

08 Oct 2021, 01:00:27 PM IST

NIFTY IT at 1 pm

Nifty IT index at 1 pm.
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Nifty IT index at 1 pm.
08 Oct 2021, 12:44:20 PM IST

Affle India shares hit upper circuit for second day post stock split

Shares of the Affle India were split on October 7, 2021 (ex-date) pursuant to the board and shareholder approval granted for sub-division of shares in its meeting on September 23. The stock price has been adjusted to one-fifth as today is the ex-date for the stock split. The company's scrip was locked in the 5% upper circuit on the BSE for the second consecutive day on Friday after the stock split process. (Read here)

08 Oct 2021, 12:42:01 PM IST

On RBI policy: Indranil Pan, chief economist, YES Bank

'The RBI was clear about the fact that it would be careful of not rocking the boat in any way. RBI Governor went to the extent of pointing out that we are close to the shore but there is a life beyond the shore too. RBI walked the talk with its actions by not changing the policy rates—both the repo as also the reverse repo rates. Even the stance of the policy remained accommodative with no change in the language. This means that RBI vows to stay accommodative for as long as necessary to revive and sustain growth on a durable basis. The comfort to the RBI is possibly derived from the evolution of the inflation trajectory, that appears to be much better than its own anticipation. This also led RBI to bring down the year’s Headline CPI average estimate down by 40bps from 5.7% previously. With growth conditions expected to be getting relatively better, RBI is trying to formulate a path to come out of the extraordinary accommodation during covid-19. In my opinion, the glide path has been initiated with the G-sec bond buying programme dialled back to NIL, and the Variable Reverse Rate Repo (VRRR) auction size enhanced to 6 trillion by early December. The RBI also has opened itself up to increasing the VRRR duration to 28 days if need be. The actions on liquidity is expected to bring up the overnight money market rates to above the current reverse repo rate of 3.35% and we think that RBI will then be open to adjusting the reverse repo rate to reduce the size of the corridor. Overall, we think that RBI has kept the room open for a reverse rate repo increase in the upcoming December policy. No changes are envisaged to the repo rate in the current fiscal and can only be addressed in FY 2022-23 after a thorough understanding of the evolving growth-inflation mix."

08 Oct 2021, 12:36:42 PM IST

Crypto exchanges overtake Zerodha in user base

India’s largest stockbroker Zerodha has been overtaken by some of the country’s popular crypto exchanges in the number of users. Zerodha has a little above 7 million users, of whom almost 5 million are active users. Active users are defined as those who have conducted at least 1 trade in a year. Coinswitch Kuber has a user base of 11 million, said Ashish Singhal, its founder and chief executive officer. A spokesperson for WazirX, another large cryptocurrency exchange said it has a user base of 8.5 million. (Read here)

08 Oct 2021, 12:29:43 PM IST

Mobikwik gets Sebi’s approval to float IPO

Digital financial services firm One Mobikwik Systems (Mobikwik) has received approval from markets regulator the Securities and Exchange Board of India to float an initial public offering (IPO) of up to 1,900 crore, according to a report. The 1,900 crore IPO is likely to hit the market in the first week of November. (More)

08 Oct 2021, 12:23:36 PM IST

On RBI policy: Jyoti Roy, DVP- equity strategist, Angel One Ltd

"The RBI as expected kept the key policy rates unchanged in its fourth bi-monthly MPC meeting today and has maintained their accommodative stance.All in all the MPC meeting was in line with our and the street’s expectations as the RBI has given a clear roadmap for normalization of liquidity conditions. While we expect the RBI to remain on hold in the next MPC meeting as well, sustained increase in energy prices due to the ongoing energy crisis is the key risk to the RBI's inflation forecast and may force the RBI to raise interest rates in H1CY2022. However, energy prices normalizing over the next few months will give the RBI more elbow room to keep rates at current levels for a longer period of time."

08 Oct 2021, 12:13:03 PM IST

Sectoral indices

Realty, FMCG, Pharma and PSU bank sectoral indices were in the red. Realty was the top drag.

Nifty sectoral indices.
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Nifty sectoral indices.
08 Oct 2021, 12:10:26 PM IST

Sensex: Index contribution

Sensex Index contribution
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Sensex Index contribution
08 Oct 2021, 12:08:20 PM IST

Sensex at noon

Sensex and Nifty have responded positively to the RBI's policy statement. Sensex  remained above the 60,000 mark, while Nifty stayed over the 17,900 mark at noon. Infosys and TCS were among the top gainers on Sensex, while NTPC and Hindustan Unilever dragged. Titan, which had seen a near 10% gain on Thursday, was in the red.

Sensex heatmap at noon.
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Sensex heatmap at noon.
08 Oct 2021, 11:59:36 AM IST

On RBI policy: Yash Gupta, Equity Research Analyst, Angel One Ltd

“Today RBI has announced its policy and keep its accommodative stance and maintain repo rate at 4% and reverse repo rate at 3.35%. This policy will help banks to keep home loan interest rates at the current rate or even some dip in it in the coming months. Several banks are offering a home loan at an interest rate of 6.7% during the festival season, this will going to increase the demand for Residential property and eventually will help real-estate players. We continue our buy call on Sobha Limited with a target price of 950."

08 Oct 2021, 11:56:29 AM IST

Full text of additional measures mentioned in the RBI Governor's statement

Additional Measures

On Tap Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)

A special three-year long-term repo operation (SLTRO) of 10,000 crore at the repo rate was introduced for Small Finance Banks (SFBs) in May 2021. This facility is currently available till October 31, 2021. Recognising the need for continued support to small business units, micro and small industries, and other unorganised sector entities, it has been decided to extend this facility till December 31, 2021 and make it available On Tap.

Introduction of Retail Digital Payment Solutions in Offline Mode

A scheme to test technologies that enable digital payments even in remote places where internet connectivity is either absent or barely available was announced in August 2020. Given the encouraging experience gained from the pilot tests, it is proposed to introduce a framework for retail digital payments in offline mode across the country. This will further expand the reach of digital payments and open up new opportunities for individuals and businesses.

Enhancing Transaction Limit in IMPS to 5 lakh

25. Immediate Payment Service (IMPS) offers instant domestic funds transfer facility 24x7 through various channels. In view of the importance of the IMPS system and for enhanced consumer convenience, it is proposed to increase the per-transaction limit from 2 lakh to 5 lakh.

Geo-Tagging of Payment System Touch Points

26. Ensuring wider availability of payments acceptance (PA) infrastructure throughout the country has been one of the priority areas for financial inclusion. To target areas with deficient PA infrastructure, it is proposed to introduce a framework for leveraging geo-tagging technology for capturing exact location information on all existing and new PA infrastructure viz., Point of Sale (PoS) terminals, Quick Response (QR) Codes, etc. This would complement the Payment Infrastructure Development Fund (PIDF) framework of the Reserve Bank in ensuring wider geographical deployment of PA infrastructure.

Regulatory Sandbox – Announcement of the Theme for a New Cohort and On Tap Application for Earlier Themes

The Reserve Bank’s Regulatory Sandbox (RS) has so far introduced three cohorts on ‘Retail Payments’; ‘Cross Border Payments’; and ‘MSME Lending’. With a view to provide further impetus to the fintech eco-system, a fourth cohort on ‘Prevention and Mitigation of financial frauds’ is being announced. In addition, based on the experience gained and the feedback received from stakeholders, it is proposed to facilitate ‘On Tap’ application for earlier themes for participating in the Regulatory Sandbox. This measure is expected to ensure continuous innovation in the fintech ecosystem of our country.

Review of Ways and Means Advances (WMA) Limits and Relaxation in Overdraft (OD) Facility for the State Governments / UTs

To help States/UTs to manage their cash flows amidst continued uncertainties on account of the pandemic, it has been decided to continue with the interim enhanced WMA limits of 51,560 crore for States/UTs for a further period of six months up to March 31, 2022. It has also been decided to continue with the liberalised measures, viz, enhancement of maximum number of days of overdraft (OD) in a quarter from 36 to 50 days and the number of consecutive days of OD from 14 to 21 days, up to March 31, 2022.

Priority Sector Lending - Permitting Banks to On-lend through NBFCs - Continuation of Facility

Considering the increased traction observed in delivery of credit by NBFCs to the underserved/unserved segments of the economy, bank lending to registered NBFCs (other than MFIs) for on-lending to Agriculture, MSME and Housing was permitted to be classified as Priority Sector lending (PSL). This facility, which was available from August 13, 2019 till September 30, 2021 is being further extended for another six months up to March 31, 2022.

Internal Ombudsman for NBFCs

The increased strength and reach of NBFCs across the country has necessitated various measures by the Reserve Bank for protection of customers of NBFCs. With a view to further strengthening the internal grievance redress mechanism of NBFCs, it has been decided to introduce the Internal Ombudsman Scheme (IOS) for certain categories of NBFCs having higher customer interface.

08 Oct 2021, 11:47:07 AM IST

Delhi high court disallows Rakesh Gangwal's plea: report

The Delhi high court has disallowed IndiGo promoter Rakesh Gangwal's plea against co-promoter Rahul Bhatia and InterGlobe Aviation, according to a report.  Gangwal had moved court on Thursday to enforce an arbitration order of the London Court of International Arbitration and the matter was posted for hearing on Friday. According to the report, Gangwal had moved the Delhi high court soon after an arbitration tribunal in London passed an award in late September.

08 Oct 2021, 11:39:36 AM IST

S&P BSE Information Technology at 11:35 am

Nazara Tech and Datamatics are the leading index gainers. Nelco, Infibeam lag

S&P BSE Information Technology heatmap at 11:35 am.
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S&P BSE Information Technology heatmap at 11:35 am.
08 Oct 2021, 11:34:44 AM IST

India's covid-19 deaths rise by 271

India's daily covid-19 deaths have risen by 271, according to the health ministry. Total death toll has crossed 450,000, the ministry said.

08 Oct 2021, 11:15:20 AM IST

Top stock picks | Angel One

Source: Angel One.
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Source: Angel One.
08 Oct 2021, 11:04:26 AM IST

TVS Motor announces advanced range of TVS Apache RTR 160 4V series

TVS Motor Company announced an advanced range of TVS Apache RTR 160 4V series of motorcycles on Friday. According to the company's statement to exchanges, the new series of motorcycles is equipped with a new headlamp assembly and signature Daytime Running Lamp (DRL), and three ride modes. The company also introduced TVS Apache RTR 160 4V Special Edition, equipped with first-in-segment features including adjustable clutch and brake levers, an exclusive Matte Black trim with red alloy wheels, and a new seat pattern besides the new headlamp.

08 Oct 2021, 10:43:26 AM IST

Other points from RBI policy announcement

# Readiness to undertake G-SAP when warranted. Market appetite for 14-day variable rate reverse repo is enthusiastic. Will complement 14-day VRRR with 28-day VRRR. 

# Variable rate reverse repos must not be read as a reversal of accommodative policy stance.

# High frequency indicators suggest economic activity has gained momentum. Core inflation remains sticky. July-September Consumer price Index (CPI) inflation was lower than anticipated

# Special 3-year LTRO of 10,000 crore for SFBs made available on-tap

# Priority sector lending facility to agriculture, MSME and housing has been extended till 31 March 2022

 

08 Oct 2021, 10:35:43 AM IST

Sensex and Nifty at 10: 30 am

Sensex: 60,188.92 +511.09 +0.86%

Nifty: 17,929.85 +139.50 +0.78%

08 Oct 2021, 10:34:28 AM IST

RBI policy: Internal ombudsman to be introduced for certain categories of NBFCs

08 Oct 2021, 10:32:50 AM IST

RBI policy: To help states and UTs, interim ways and means allowance to continue for further six months

08 Oct 2021, 10:31:43 AM IST

RBI policy: New cohort for regulatory sandbox, prevention and mitigation of financial frauds, added

08 Oct 2021, 10:30:38 AM IST

RBI policy: Framework to leverage geotagging to capture exact location on all payment infrastructure

08 Oct 2021, 10:29:59 AM IST

RBI policy: IMPS raised from ₹2 lakh to ₹5 lakh per transaction

08 Oct 2021, 10:29:25 AM IST

RBI policy: Retail digital payments framework to be formed

08 Oct 2021, 10:28:41 AM IST

RBI policy: SLTRO extended till 31 Dec

08 Oct 2021, 10:26:23 AM IST

RBI policy: “It will be a policy of gradualism”

08 Oct 2021, 10:26:04 AM IST

RBI policy: ‘When the shore is close we do not want to rock the boat’ 

08 Oct 2021, 10:24:06 AM IST

RBI policy: Fortnightly VRRRs may be complemented with 28 day ops

08 Oct 2021, 10:22:54 AM IST

RBI policy: VRRR in fortnightly manner beginning today ending 3 December 

08 Oct 2021, 10:22:13 AM IST

RBI policy: Retail inflation in Q2 pegged at 5.1%, inflation in third quarter estimated at 4.5% and inflation in fourth quarter expected at 5.8%

08 Oct 2021, 10:21:15 AM IST

RBI policy: Total liquidity injected in H1 was ₹2.37 trillion

08 Oct 2021, 10:16:25 AM IST

RBI policy: CPI inflation projected at 5.3% for full year

08 Oct 2021, 10:15:16 AM IST

RBI policy: Supply side measures helping temper vegetable oil prices

08 Oct 2021, 10:14:51 AM IST

RBI policy: Recovery in services sector is gaining traction

08 Oct 2021, 10:14:00 AM IST

RBI policy: Growth for fiscal seen at 9.5%

08 Oct 2021, 10:13:07 AM IST

RBI policy:  Recovery uneven and dependent on policy support

08 Oct 2021, 10:12:41 AM IST

RBI policy:  Aggregate demand is improving but slack remains 

08 Oct 2021, 10:07:34 AM IST

RBI policy announcement: Reverse Repo rate remains unchanged at 3.35%

08 Oct 2021, 10:06:35 AM IST

RBI policy announcement: Accommodative stance to be maintained 

08 Oct 2021, 10:04:58 AM IST

RBI policy announcement:RBI's Monetary Policy Committee keeps repo rate unchanged at 4%

08 Oct 2021, 09:56:24 AM IST

Sebi asks local exchange not to launch new rapeseed contract

India's market regulator on Friday directed the local National Commodity And Derivatives Exchange (NCDEX) not to launch a new rapeseed contract until further orders. For running contracts, the Securities and Exchange Board of India (Sebi) said no new position would be allowed in rapeseed, popularly known as mustard, in India, according to a Sebi order. (Reuters)

08 Oct 2021, 09:48:37 AM IST

Market report: ICICI Securities

Stocks in F&O Ban

 

National Aluminium, Canara Bank, Indiabulls Housing Finance, PNB, SAIL

 

Recommendations

 

Intraday – Tata Motors, Indus Towers

 

Positional – Amara Raja, Exide Industries

08 Oct 2021, 09:44:04 AM IST

Piramal shares on rise 

08 Oct 2021, 09:37:26 AM IST

Sasken completes closure of China arm

Sasken Technologies Ltd has informed the exchanges that activities related to the closure of Sasken Communication Technologies (Shanghai) Co. Ltd, a wholly owned subsidiary of the company, have been “completed and concluded".

08 Oct 2021, 09:27:16 AM IST

Markets open

Sensex opened at 59,965.25, up 287.42 points, or 0.48%, on Friday; Nifty opened at 17,878.05, up 87.70 points, or 0.49%. Early after opening the 26 stocks on Sensex were in green while four were in red. On Nifty, there were 44 advances and 6 declines. Both Sensex and Nifty had closed 0.82% higher on Thursday. Asian markets opened with gains on Friday on the back of positive global cues.

Sensex heatmap at 9:20 am
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Sensex heatmap at 9:20 am
08 Oct 2021, 09:06:19 AM IST

Market pre-opening

The Sensex was at 59,948.23, up 270.4 points,  0.45%, at pre-opening on Friday. Nifty was at 17,790.35, up 144.35 points, or 0.82%, at 09:00 am.  SGX Nifty was at 17,847.80, up 236.75, or 1.34% at the time. The RBI monetary policy announcements expected at 10 am will be keenly watched today.

Sensex heatmap at 9:00 am on Friday.
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Sensex heatmap at 9:00 am on Friday.
08 Oct 2021, 08:59:38 AM IST

PLI Scheme: Dixon Tech to make Acer laptops in India

Dixon Technologies, the country’s largest electronic manufacturing services (EMS) player, has tied up with Taiwanese personal computer (PC) maker Acer for the contract manufacturing of laptops, according to a report. The production will initially cater to the domestic market and then could be extended for exports, according to the report. The move is seen as one to take advantage of the government’s Production Linked Incentive (PLI) scheme.

08 Oct 2021, 08:51:24 AM IST

Nesle India fixes 27 Oct for payment of second interim dividend

Nestle India Ltd has informed the BSE that the company has fixed 27 October as the record date for the purpose of the payment of second interim dividend, if any.

08 Oct 2021, 08:49:25 AM IST

Japan becomes first G-7 nation to factor ESG into investments

Japan will introduce environmental, social and governance considerations for foreign reserves held by the finance ministry, reflecting a need to seriously tackle climate change in order to achieve the country’s 2050 carbon neutral goal. The decision to include ESG as a factor for foreign asset holdings is a first for a Group of Seven nation, Finance Minister Shunichi Suzuki said Friday. The ministry didn’t disclose the amount of funds that will be affected. “Globally there are various climate measures being introduced ahead of the United Nations climate change conference," said Suzuki, speaking to reporters in Tokyo. “There’s increasing interest in ESG from institutional investors." Instead of shifting the existing portfolio, ESG will become a new factor to be considered for all new foreign asset investments, the Finance Ministry said in a statement. It said investment into ESG bonds will likely increase as the ESG bond market expands. (Bloomberg)

08 Oct 2021, 08:32:14 AM IST

RBI monetary policy to steer markets; rate sensitive stocks, TCS, Zee in focus

Reserve Bank of India's monetary policy review is likely to steer markets on Friday. Trends in SGX Nifty indicate a positive opening of Indian benchmark indices. The BSE Sensex ended at 59,677.83, up 488.10 points or 0.82%. The Nifty was at 17,790.35, up 144.35 points or 0.82%. The central bank is likely to signal a gradual unwinding of emergency liquidity measures introduced after the covid-19 outbreak but keep key interest rates unchanged in its bi-monthly monetary policy review this week, a Mint survey of economists showed. Rate sensitive stocks like auto, banks and realty will be in focus. (Read here)

08 Oct 2021, 08:16:54 AM IST

Indian gold ETF holdings hit highest level since September 2013: WGC

Holdings in Indian gold exchange-traded funds (ETFs) hit their highest level since September 2013 driven by heightened stock market volatility and a correction in the domestic gold prices, says a report by the World Gold Council (WGC). Indian gold ETFs witnessed net inflows of $68.3 million during September, taking year-to-date flows to $433 million. The report added that global gold-backed ETFs saw net outflows of 15.2 tonnes or $830 million in worth during September as prices fell on the back of rising yields, a stronger dollar, and a reduction in COMEX managed money net long positions. Year-to-date, gold ETFs have seen global outflows of $8.3 billion (-156 tonnes). (Livemint)

08 Oct 2021, 08:14:24 AM IST

Four things to watch out for from RBI policy today

Liquidity normalisation

The market is expecting Reserve Bank of India to provide a roadmap on unwinding excess liquidity of 12 trillion through long-term variable rate reverse repo (VRRR) auctions. With RBI resuming 14-day VRRR auctions from August, and announcing several such auctions of 3-7 day tenor in recent weeks, a majority of economists expects an increase in VRRR auction size, and also longer tenor VRRRs of 28 days or 56 days. The recent cut-off at the latest seven-day VRRR auction at 3.99%, closer to the repo rate is also another reason why the bond market is interpreting it as a normalization signal. 

Rate Stance

Majority of economists are expecting RBI to keep policy rates unchanged, while maintaining an accommodative stance. However, economists say that RBI could hint at gradual policy normalization, setting the stage for a reverse repo rate hike in December.

Inflation

On the inflation front, RBI had made upward revisions in the previous policies to 5.7%. Headline CPI has been trending lower at around 5%. That said, economists are divided over whether RBI may revise its forecast lower, given the recent spike in crude oil prices. Some economists are expecting RBI to lower inflation forecast by 30-40 basis points and will state caution on upside risks via imported inflation and its pass-through.

Growth

RBI is expected to sound optimistic on growth recovery. Rating agency Moody’s had hiked the sovereign credit rating outlook to stable from negative, citing improvement in the financial sector and faster than expected economic recovery. Economists are expecting RBI’s FY22 real GDP growth forecast to be maintained at 9.5% year on year. (Read here)

08 Oct 2021, 08:12:07 AM IST

TCS to announce Q2 earnings today

India’s largest IT services company Tata Consultancy Services Ltd (TCS) will be the first to announce its second quarter earnings on Friday. Analysts believe tier-1 IT companies will report healthy growth momentum in the second quarter ended September. While TCS does not provide a formal revenue growth guidance, management commentary on business outlook will be closely monitored. (Read more)

08 Oct 2021, 08:00:50 AM IST

Tesla moving headquarters to Texas from California

Tesla Inc Chief Executive Elon Musk said on Thursday the electric carmaker plans to move its headquarters from Silicon Valley's Palo Alto, California to Austin, Texas, where it is building a massive car and battery manufacturing complex. Tesla joins Oracle, HP and Toyota Motor in moving U.S. headquarters to Texas from California, which has relatively high taxes and living costs. While Silicon Valley also is a hive of development of new ideas and companies, Texas is known for cheaper labor and less stringent regulation. (Bloomberg)

08 Oct 2021, 07:53:34 AM IST

Cryptocurrency prices today: Bitcoin, dogecoin slip while ether, cardano gain

In cryptocurrencies, Bitcoin prices today were trading marginally lower after rallying above the $55,000 mark on Thursday. The most popular and world's largest cryptocurrency by market capitalization slipped over 1% to $54,364. Though, Bitcoin has advanced 24% in a week. (Read here)

08 Oct 2021, 07:51:13 AM IST

Factors that may influence MPC's decisions

# The consumer price based-inflation (CPI) for August 2021 came in at 5.3% compared with 5.59% in July, as food prices cooled. Barclays India on Monday said it expects CPI inflation to moderate to 4.62% on a year-on-year basis in September

# Core liquidity surplus is persisting close to 12 trillion

# Moody's hiked India's sovereign credit rating outlook to stable from negative. It cited faster-than-expected economic recovery across sectors as reason behind the move.

# Fitch Ratings has cut India's economic growth forecast to 8.7% for the current fiscal but raised GDP growth projection for FY23 to 10%, saying the second covid-19 wave delayed rather than derail the economic recovery

# Trade losses due to higher global commodity and oil prices

# The possibility of a third wave of the covid pandemic

 

08 Oct 2021, 07:26:19 AM IST

RBI policy review announcements today

The Reserve Bank of India's bi-monthly policy review announcements are scheduled to be made by governor Shaktikanta Das at 10 am today. It is widely expected that the bank will keep its benchmark rates unchanged. The bank is also expected to retain its GDP forecast at 9.5%, besides revising down inflation forecast will fall in food prices.

The MPC will have to factor in inflation risks arising out of the ongoing global energy crisis and rising fuel prices, which could impede growth.

Jayant Varma, the sole dissenting voice at the last policy review in August, had voted against 'accommodative stance' adopted the banking regulator. The market will be watching the policy review for indications on whether the central bank will take action to narrow the gap between main repo and reverse repo rates, in a signal for gradual normalization.

08 Oct 2021, 06:53:57 AM IST

Stocks to watch

M&M, NTPC and Tata Motors are among stocks to watch. The possible announcement of winning bidder for Air India today may have an impact on stocks. (Read here)

08 Oct 2021, 06:53:57 AM IST

Stocks, bond yields rise; traders await China open

Asian stocks Friday tracked a Wall Street climb as concerns eased about the US debt ceiling and an energy crunch. Investors are awaiting a key American jobs report and the start of trading in China after a holiday.

Japanese shares outperformed, while South Korea and Australia posted more muted performance. US futures edged up after the S&P 500 and Nasdaq 100 pushed higher for a third day. Lawmakers in the Senate voted to temporarily increase the debt ceiling, aiding sentiment by breaking a prolonged stalemate.

The 10-year US Treasury yield reached the highest since mid-June. While some fears about energy costs receded, investors continue to fret over inflation. The US payrolls report Friday could also cement expectations that the Federal Reserve will soon start tapering bond purchases. Yields climbed in Australia and New Zealand. The dollar was steady.

In China, financial markets are set to open for the first time in a week, turning the focus back on the debt woes in its property sector and Beijing’s wider regulatory broadsides. Central bank Governor Yi Gang said the nation will continue taking steps to curb monopolistic behavior among internet platforms and strengthen consumer and data protection.

Stocks

S&P 500 futures rose 0.2% as of 9:43 a.m. in Tokyo. The S&P 500 rose 0.8%.

Nasdaq 100 contracts added 0.2%. The Nasdaq 100 rose 0.9%

Japan’s Topix index increased 1.7%

Australia’s S&P/ASX 200 index was 0.5% higher

South Korea’s Kospi added 0.2%

Hang Seng futures advanced 0.8% earlier

08 Oct 2021, 06:53:57 AM IST

Stocks rally as stagflation fears, energy prices ease

World equity markets rebounded on Thursday after US Senate leaders moved to avert a US debt default, while a global easing in energy prices tempered deepening fears of "stagflation". European bourses rallied off 2-1/2-month lows and Wall Street jumped as steady crude oil and natural gas prices offered relief after a shock 4% drop in German industrial production highlighted supply chain disruptions. German output of cars and auto parts slid 17.5% in August due to supply shortages of intermediate products, providing a telling sign of the constraints posed by the combination of rising inflation and moribund growth, or stagflation. But the number of Americans filing new claims for jobless benefits fell the most in three months last week, suggesting the US labor market recovery was regaining momentum after a recent slowdown as covid-19 infections subside.

08 Oct 2021, 06:53:57 AM IST

China's energy crisis is hitting everything from iPhones to milk

The hit from China’s energy crunch is starting to ripple throughout the globe, hurting everyone from Toyota Motor Corp. to Australian sheep farmers and makers of cardboard boxes. Not only is the extreme electricity shortage in the world’s largest exporter set to hurt its own growth, the knock-on impact to supply chains could crimp a global economy struggling to emerge from the pandemic. The timing couldn’t be worse, with the shipping industry already facing congested supply lines that are delaying deliveries of clothes and toys for the year-end holidays. It also comes just as China starts its harvest season, raising concerns over sharply higher grocery bills. (Bloomberg)

08 Oct 2021, 06:53:57 AM IST

NCLAT: Give Zee  reasonable time to reply to Invesco’s plea

The National Company Law Appellate Tribunal (NCLAT) on Thursday said Zee Entertainment Enterprises Ltd should be given reasonable and sufficient time to file a response to Invesco’s plea for convening a special shareholders’ meeting. (Read here)

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