Sensex, Nifty end in the red; RBI keeps repo rate unchanged

RBI Governor Urjit Patel says that a shift from accommodative to neutral is adequate at this juncture as the apex bank kept repo rate unchanged in the first bi-monthly Monetary Policy meet of this fiscal.

He also added that the farm loan waivers affect credit culture and discipline.

The governor added that India is sufficiently prepared for any forthcoming Federal Reserve rate hikes.

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3.39 PM:

The S&P BSE Sensex ended the day at 29,927.34, down 46.90 points (0.16%) while the Nifty50 ended the day at 9,261.95, down 3.20 points (0.03%).

Shares of ITC recorded most losses, losing 1.70 per cent on the BSE while Tata Steel logged nearly 2 per cent gains followed by Bajaj Auto, up 1.71 per cent.

On the NSE Nifty Index, Hindalco was the top loser while Tata Steel and Zee Ltd clocked gains.

Banking stocks did not react much to the RBI decision to keep repo rate unchanged. Nifty Bank Index ended the day flat (up 0.01%).

IndusInd Bank, PNB and Axis Bank added to the index while Federal Bank and ICICI Bank were losers post the policy outcome.

3.08 PM:

BSE Sensex was trading lower by 63 points at 29,911.37 in late afternoon trade after the RBI kept its key policy rate unchanged.

The broader Nifty Index dropped 21.55 points or 0.23 per cent to 9,243.60.

Brokers said RBI's decision to keep key interest rate unchanged was largely in line with investor expectations.

ALSO READ: RBI monetary policy: Why apex bank kept repo rate unchanged

Highlights of the RBI policy meet:

RBI projects inflation at 4.5 per cent for first half of 2017-18 and 5 per cent for second half.

RBI projects GDP growth at 7.4 per cent for the current fiscal, up from 6.7 per cent in 2016-17.

RBI increases reverse repo rate by 25 bps to 6 per cent.

RBI narrows policy rate corridor due to liquidity flush; increases marginal standing facility rate and bank rate to 6.50 per cent.

2.06 PM:

Drug firm Cipla today said its US arm has signed a licensing pact with MEDRx Company to develop and market a Tizanidine1 patch that targets management of spasticity.

The company's wholly owned subsidiary, "Cipla USA Inc has signed a worldwide licensing agreement (except for East Asia) with MEDRx Company Ltd to further develop and commercialise MRX-4TZT, a Tizanidine1 patch for the management of spasticity", Cipla said in a filing to BSE.

Under the terms of the pact, MEDRx is eligible to receive up to USD 30 million cumulatively through upfront and developmental, regulatory, and commercial milestones payments, it added.

"MEDRx will also receive tiered royalties on the net sales of commercialised licensed products," Cipla said.

Cipla MD and Global CEO Umang Vohra said: "We believe that the Tizanidine transdermal patch will address significant unmet needs and benefit patients globally suffering from chronic spasticity."

MRX-4TZT is a medicated patch that uses an exclusive MEDRx technology to deliver Tizanidine, a centrally acting muscle relaxant, it added.

Annual sales of muscle relaxants in the United States were estimated at USD 807 million in 2016, Cipla said quoting IMS 2016 data.

The company plans to initiate phase III clinical trials after completion of additional phase I studies, it added.

Spasticity is a condition in which certain muscles are continuously contracted. This contraction causes stiffness or tightness of the muscles and can interfere with normal movement, speech, and gait.

Cipla shares were trading at Rs 589, down 0.62 per cent, on BSE .

1.13 PM:

"Market is awaiting what RBI does on the liquidity front and that has the potential to impact banks negatively, if there is an increase in CRR (cash reserve ratio)," said Dipen Shah, senior vice president and head of private client group research, Kotak Securities reported by Reuters.

Banking stocks dragged the Nifty down, with the Nifty Bank index falling as much as 0.55 per cent.

Jindal Steel and Power gained as much as 5.22 per cent after posting a 12.3-percent sequential rise in quarterly consolidated steel production.

Phoenix Mills Ltd gained as much as 7.3 per cent to its highest in seven months after Canada Pension Plan Investment Board said it would invest in the company's unit.

12.47 PM:

The stock of Reliance Industries Ltd continued to trade at a 9-year high adding over 1 per cent to the BSE on Thursday's trade.

12.02 PM:

Jubilant Life Sciences today said it has received final approval from the US health regulator for Celecoxib capsules used for the treatment of osteoarthritis and rheumatoid arthritis.

The company "has received Abbreviated New Drug Application (ANDA) final approval for Celecoxib Capsules, 50 mg, 100 mg, 200 mg, and 400 mg," Jubilant Life Sciences said in a BSE filing.

The company's product is the generic version of Celebrex of GD Searle, which is used for the treatment of osteoarthritis and rheumatoid arthritis, it added.

This is the first approval received by the company from the USFDA during the current financial year.

As on December 31, 2016, Jubilant Life Sciences had a total of 73 ANDAs for oral solids filed in the US, of which 49 have been approved, the filing said.

Shares of the company were trading at Rs 831.10, down 0.41 per cent on BSE.

11.30 AM:

The Indian benchmark indices were trading in the red as investors may have booked profits from the previous rally and remain cautious ahead of the Reserve Bank of India Monetary Policy meet.

The Sensex was trading at 29,841.21, 133.03 points lower while the Nifty50 was trading at 9,225.00, down 40.15 points.

Bajaj Auto, Axis Bank and Infosys were top gainers, while Adani Ports, ITC and Hindustan Unilever lost the most on the BSE.

Shares of Reliance Defence and Engineering added 3.4 percent intraday Thursday as the company is going to consider rights issue up to Rs 1,200 crore.

The company's board meeting will be held on April 11, to consider and approve the standalone and consolidated audited financial results for the quarter and financial year ended March 31, 2017.

9.45 AM:

LAGGARDS IN TRADE

Bharti Airtel topped the list of laggards, shedding 1.60 per cent on the BSE followed by Hindustan Unilever (down 1.42 per cent), Adani Ports (down 1.25 per cent) and ITC (down 1.08 per cent).

On the NSE Nifty Index, Hindalco and Bharit Infratel led the losses.

9.39 AM

EXPERT TAKE

Fed minutes set a cat amongst the market pigeons - HDFC Securities

Wall Street closed on Wednesday with meagre losses, but V K Sharma, Head - Private Client Group, HDFC securities, says that they hide the impact they could have on international markets.

"Sending the indices tumbling form their intraday gains were the minutes of the March FOMC meeting that showed that the Fed plans to begin unwinding its $4.5 trillion balance sheet later this year," said Sharma.

This in turn means that the apex bank will suck back the stimulus it provided to markets in the past years, he said.

This would eventually entail the selling of bonds the Federal Reserve has purchased which would mean a fall in bond prices and rise in yields.

Secondly, the US dollar would also strengthen, as the Fed reduces the currency's circulation.

"Both the events are negative for the global markets, leave alone emerging markets," says Sharma.

9.31 AM:

IT stocks trade below median level due to the United States Citizenship and Immigration Services (USCIS) issued a guidance memo that is likely lead to higher rejections of H1B visa applications by Indian information technology companies.

9.19 AM:

The Indian benchmark indices opened on a negative note on Thursday's trade, indicating a lower start in the trading day.

The S&P BSE Sensex was trading at 29,866.25, down 107.99 points while the Nifty50 was trading at 9,231.05, down 34.10 points.

"The market has been continuing it strong run and has been hitting new highs every day. But due to yesterday's price action, we can now observe a 'Dragonfly Doji' pattern on daily chart; indicating uncertainty among market participants," said an Angel Broking report.

Bank Nifty lost nearly 0.50 per cent at the strike of the opening bell.

The Midcap space opened flat.

Bajaj Auto was the top gainer on NSE and BSE, adding over 1 per cent to the bourses.

The laggards on both the indices were led by Bharti Airtel, ICICI Bank and Adani Ports.

"Despite this we still want to remain with larger degree up trend as 9200 seems to be a strong support on a closing basis. In case of an intraday dip towards 9230 - 9200, traders are advised to use it as a buying opportunity as we expect the index to extend this ongoing optimism towards 9400 - 9600 over the next few weeks," added the Angel Broking report.