RIL, Nestle India, TCS, Power Grid Corporation of India, Sun Pharma were among other losers on the Sensex.Share Market News Today | Sensex, Nifty, Share Prices LIVE: Domestic equity market indices BSE Sensex and Nifty 50 were trading higher in Friday’s session as RBI MPC decided to keep the repo rate unchanged at 4 per cent. BSE Sensex was hovering around 40,200, while the broader Nifty 50 index was trading around 11,850. Tata Steel was the top Sensex gainer, followed by Bharti Airtel, M&M, L&T, Bajaj Finance, Bajaj Finsv and HDFC twins. Vedanta shares gained 1.79 per cent to trade at Rs 119.70 apiece after 74 crore shares of the company were tendered in the buyback offer made by promoters to delist the company. While Lakshmi Vilas Bank share price zoomed 15 per cent to Rs 20.65 apiece on BSE a day after it received an indicative non-binding offer from Clix Group, moving a step closer to an amalgamation of the group’s entities with itself. On the flip side, Hindustan Unilever was the top Sensex laggard. Reliance Industries (RIL), Nestle India, TCS, Power Grid Corporation of India, Sun Pharma were among other losers on the Sensex.
The Reserve Bank of India on Friday said the economy is likely to contract by 9.5 per cent in the current fiscal. GDP contracted 23.9 per cent in the first quarter of the fiscal, as per the estimates of the Central Statistics Office (CSO). In a statement after the meeting of the Monetary Policy Committee, RBI Governor Shaktikanta Das said Indian economy is entering into a decisive phase in the fight against coronavirus.
Highlights
The status quo by the MPC on the repo rate front was on expected lines, and the unchanged 'Accommodative' policy stance indicates further easing. The linking of the risk weight of home loans to LTV for all new housing loans is a step in the right direction; this will benefit the real estate sector. The real estate sector needs further ease in policy rates, a cut in interest rates is a direct stimulus for homebuyers as it reduces the overall cost of buying a real estate unit; the same is evident in the September sales data which saw a spike post the Maharashtra government reduced the stamp duty rates: Krish Raveshia, CEO, Azlo Realty
The move by the central bank to keep rates unchanged is on expected lines as inflation has stayed above the mandated level of 6% for quite a few months now. Going forward the Accommodative policy stance indicates their willingness to act on rates but that may not happen soon enough as the supply side inflation may take some time to ease. Announcement on liquidity measures will help businesses looking at raising funds at a lower cost, allowing banks to lend more retail and home loans by easing norms is a step in the right direction, this allows banks to lend more and help home loan borrowers. Going forward, the expectation of RBI of GDP growth from current contraction is positive, help boost sentiment. Good monsoon, favorable high-frequency indicators, pent-up demand, and the upcoming festive season set the stage for an economic recovery: Nish Bhatt, Founder & CEO, Millwood Kane International
We will continue to maintain positive stance on Banking and NBFC sector and prefer HDFC Bank (best placed on growth as well as overhang of management change will be behind us), ICICI Bank & Indusind Bank (valuation pick along with better operating income growth), SBI (management change overhang will be behind us), DCB Bank ( almost all clients will get benefits of Govt relaxation), IDFC First Bank (positive earning movement due to restructuring of balance sheet), and Equitas (growth is returning back and all clients will get benefits of Govt relaxation: Asutosh Mishra, Head of Research, Ashika Institutional Equity
Further measures like rationalisation of risk weights to all new housing loans until March 2022 would give a fillip to housing loan growth. The RBI has also extended the scheme for co-lending to all NBFCs and HFCs which will ease credit availability for the real estate sector. Broadly these are positive and welcome steps by the RBI: Shishir Baijal, Chairman & Managing Director, Knight Frank India
Today’s announcement by the Reserve Bank of India (RBI) to maintain status quo was on expected lines, especially as inflation rates have remained higher than RBI’s target levels. There is optimism in the governor’s statement who is expecting a revival of the Indian economy earlier than expected by most. We echo the RBI sentiments of an early and measured recovery of the economy. The growth in the economy has also been reflected in the real estate activities of the last quarter where both residential as well as commercial markets have seen a sharp increase in activities: Shishir Baijal, Chairman & Managing Director, Knight Frank India
For the first time since COVID, the Governor’s statement has a sense of tides turning. While the real impact is yet to be seen, the “on tap” TLTRO and easing of contraction in certain sectors seem to indicate “winds of change”. RBI has been proactive in meeting the demands of the economy. While the interest moratorium saga continues to play out in the courts, the continuing reliefs by RBI will certainly ease short term liquidity pressures: Veena Sivaramakrishnan, Partner, Shardul Amarchand Mangaldas & Co
The reports which had come up last June that the rate cut cycle is coming to an end may gain more prominence now. In our view, it is not the rate cuts but the liquidity provision that matters today, when the market rates on short term bank and corporate papers have touched low single digits. The positioning of portfolios should continue on the same lines with an accent on the short and mid sector. The expected GDP contraction for FY 21 is placed at 9.50%, which is also quite close to most of the market estimates, with the Q4 number must likely turning positive number: Joseph Thomas, Head of Research - Emkay Wealth Management
The RBI policy is on expected lines, as it keeps the base rate unchanged and the policy stance accommodative. The probability of RBI cutting rates in the near future remains quite low in view of the higher inflationary pressures. RBI views the current spike in prices a "transient hump", as price level may moderate in Q4. But, with a huge government borrowing program ahead, the RBI will continue with the liquidity support. It is actually the liquidity that has been helping both the debt and the equity markets. There is always a constituency of market participants who want rate cuts. They will be certainly disappointed: Joseph Thomas, Head of Research - Emkay Wealth Management
RBI’s status quo on rates was along expected lines, given the elevated inflation. But the MPC clearly delivered accommodative moves through non-interest rate tools. As an endeavour to lower the yields in bond markets, the central bank announced to expand weekly OMO purchases, include State Development Loans as part of its purchases and TLTRO of Rs1 trillion. We believe, over time, Gsec 10-year yield will drop closer to 5%. Rationalization of risk weights on Individual housing loans, now linked only to LTVs, for all new HL sanctioned till March 2022, is a positive for banks. But HFC not mentioned may be a near-term dampener for housing finance stocks. We see possibility of further scope of 25-50 basis points cut in Repo policy rates: Amar Ambani, Senior President & Institutional Research Head, YES Securities
Lakshmi Vilas Bank share price zoomed 16 per cent to Rs 20.30 apiece on BSE, a day after the bank informed that it has received an indicative non-binding offer from Clix Group. With today’s gain in stock price, Lakshmi Vilas Bank has rallied nearly 100 per cent from March lows. As per the offer, the private equity firm comprising Clix Capital Services Private Limited, Clix Finance India Private Limited and Clix Housing Finance Private Limited would be amalgamated with Lakshmi Vilas Bank.
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Any further rate cut at this point of time would have definitely added to the positive sentiment, however, at the same time, it is imperative for banks to reduce lending rates as this is the need of the hour to further see a boost in the real estate sector. As the Covid 19 situation has altered our way of living, this festive season is opportune for investors to look at Goa seriously for a second-home investment and destination for luxury homes. As a premium real estate developer and catering to the elite segment, we remain optimistic for this season too. We have already witnessed an increase in the number of enquiries for our luxury villas and properties in Goa that offer safety, privacy and luxury, all in one space: Lincoln Bennet Rodrigues, Founder and Chairman, Bennet & Bernard Group
RBI enhanced special OMO auction limit to Rs 20,000 crore. The special OMO auctions will take place next week
Nifty 50 was again hovering around the 11,850 mark on Friday’s opening bell after having surged past the 11,900 levels during yesterday’s trade. The benchmark index is sitting at these levels for the first time since February 24 after a six day rally that has taken it up from 11,222 levels. However, the recent rally does bring in the fear of a correction in the short-term. Analysts believe that the index is exhibiting bullish signals that could take it past the 12,000 mark but are also keeping an eye out for profit booking at the highs.
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RBI keeps benchmark lending rate unchanged at 4 per cent. RBI to maintain an accommodative monetary policy stance to support growth. RBI Governor Shaktikanta Das said that Indian economy is entering into a decisive phase in the fight against coronavirus
MPC voted unanimously to leave repo rate unchanged at 4%
The markets have taken a bit of a breather this morning where it's movements seem tepid. This is acceptable considering the rally we have had in the last couple of sessions. It can also be attributed to the approaching weekend. The direction still remains on the bullish side and we can utilise these drops to accumulate long positions. The target for the Nifty should be 12200-12300 with strong support at the 11400 level: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
A "lower for longer" or "whatever it takes" kind of an approach would be positive for bond markets, equities and Rupee. We do not see the RBI policy causing the Rupee to break it's 72.90-73.90 trading range. 11600 would be a strong support for the Nifty now. 10y benchmark bond yield has been in the 5.90-6.10% band and we expect the range to hold: Abhishek Goenka, Founder and CEO, IFA Global
The RBI monetary policy is due today. It is the first policy for the three newly nominated independent members. The RBI is expected to keep rates on hold. Focus will be on its inflation projections i.e. how long it sees the current elevated levels persisting and what level it sees inflation moderating to over the next couple of quarters: Abhishek Goenka, Founder and CEO, IFA Global
COMEX gold trades 1% higher near $1916/oz after a 0.2% gain yesterday supported by weakness in US Dollar and disappointing US labor data. Gold may continue to witness choppy trade as market players continue to assess the possibility of additional stimulus in US which may impact both US dollar as well as general risk sentiment. We, however, expect buying interest to emerge at lower levels as concerns about US economy may keep the pressure on US dollar: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Vedanta Ltd shares gained 1.79 per cent to trade at Rs 119.70 apiece after 74 crore shares of the company were tendered in the buyback offer made by promoters to delist the company.
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Lakshmi Vilas Bank share price zoomed 15 per cent to Rs 20.65 apiece on BSE a day after it received an indicative non-binding offer from Clix Group, moving a step closer to the amalgamation of the group’s entities with itself.
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BSE Sensex was trading over 92 points or 0.23 per cent up at 40,274, while the broader Nifty 50 index managed to gain 33 points or 0.28 per cent to trade at 11,867.
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Tiding over. Sobha reported another resilient quarter with gross sales values increasing 1% yoy to Rs 690 crore along with sales volume of 0.9 mn sq. ft(-14% yoy) in 2QFY21. We highlight this is the second quarter of resilient sales performance amid Covid-19 for Sobha, taking total sales in 1HFY21 to 1.54 mn sq. ft (-26.5% yoy) even as the sector continues to reel under weaker demand: Kotak Institutional Equities
A committee has been set up to suggest changes to the prevailing price formula under which gas price fell to US$2/mmbtu in H2FY21. As per press reports, it may propose US$1/mmbtu discount to JKM spot LNG as the floor price. We are optimistic that a floor price would soon be introduced, at which ONGC would make money (its average production cost is US$3.7/mmbtu): ICICI Securities
BSE Sensex was trading over 150 points up at 40,348, while the broader Nifty 50 index managed to gain 42 points to trade at 11,876 in pre-opening on Friday
The short term trend of Nifty continues to be positive. The formation of doji pattern, development of negative divergence and deteriorating market breadth at highs are all indicating a possibility of profit booking from the highs. A confirmation by the way of reasonable weakness is likely to change the trend. The next overhead resistance to be watched at 12000 levels and immediate support is placed at 11740: HDFC Securities
Markets reacted from the highs after the Nifty made the 4th upgap in the past two weeks. This euphoric rise in the Nifty without the backing of any large macro positives suggest a continuation of sector rotation. The negative advance-decline ratio hints at profit-taking across the broader market while the traders seem to be concentrating on stocks/sectors that are announcing news/developments/results: HDFC Securities
Indian markets could open flat to mildly higher despite muted Asian markets today and positive US markets on Thursday. The market is assigning a lower probability of an uncertain outcome. In other words, the market appears to be most concerned about an ambiguous scenario and, at least in the short term, would prefer a clean outcome even if that were a Biden win Latin American markets rose on Oct 08: HDFC Securities
The rate-sensitive stocks such as from bank, financial real estate, and auto sector will react to the monetary policy decision. Analysts expect RBI MPC will maintain status quo on the benchmark lending rates and accommodative stance in today monetary policy.
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Ascent India Fund III sold 3.41 lakh shares of Solara Active Pharma yesterday. Authum Investment & Infrastructure Limited sold 2.5 lakh shares of LKP Finance while a similar quantity was picked up Nishil Surendrabhai Marfatia.
Foreign Institutional Investors (FII) were net buyers of domestic securities for the fifth day straight, and were this time accompanied by Domestic Institutional Investors (DII). FIIs bought stocks with Rs 978 crore on Thursday while DIIs bought equities worth Rs 19.85 crore. FIIs also bought Index Futures worth Rs 1,398 crore and Index options worth Rs 1,711 crore.
Domestic benchmark indices, now at their pre-pandemic highs, could now be sitting on shaky grounds. S&P BSE Sensex gained for the sixth consecutive session on Thursday along with the 50-stock Nifty. However, technical analysts say that a small negative candle was formed with minor upper and lower shadow on the charts during yesterday’s session. “Technically, this market action could indicate a formation of a doji type pattern at the swing high of 11905. This could be crucial for bulls to sustain the highs,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. He added that any weakness in the stock market is expected to open profit booking in the market from the highs.
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International oil prices have started flat this Friday morning in Asian trade. Technically, NYMEX WTI Crude Oil continues its bullish trend where also it has given a breakout above 50-Daily Moving Average indicating for positive breath in the counter. Resistance is at $42.15-$44.37 levels. Support is at $40.60-$39.40 levels. Domestic crude ended with solid gains on Thursday, tracking firm overseas prices. Domestic crude could start flat to firm this Friday morning, tracking overseas prices. Technically, MCX Crude Oil October has given a positive close above 3000 levels after a very long time with increase in volume activity indicating a positive trend to continue up to 3088-3109 levels. Support is at 2960-2920 levels: Sriram Iyer, Senior Research Analyst at Reliance Securities
After appointing three new external members, the Monetary Policy Committee (MPC) meet is underway and the committee would announce its observations on 9th October 2020. The August-2020 MPC decided not to change the benchmark Repo Rates and continued with the ‘Accommodative’ stance. While expressing concern on inflation, the MPC decided to ‘maintain the stance for as long as it is necessary to revive growth’.
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It will be interesting to watch how newly constituted MPC will take the rate trajectory from here onward. Especially when we look from an international perspective there is scope for many more rate cuts at the same time our domestic audience is getting uncomfortable with very low saving rates. In our view, we have entered into an uncharted trajectory on the policy rate front, with far-reaching implications on many fronts. We see an interesting time ahead and expect many old patterns/ standards to be broken in the coming 12-18 months period: Ashika Institutional Equity
In overnight trade on Wall Street, US stocks ended higher as comments by US President Donald Trump fueled hopes of fresh fiscal support. The Dow Jones Industrial Average rose 0.43 per cent, the S&P 500 gained 0.80 per cent, and the Nasdaq Composite added 0.5 per cent.
Asian stock markets were trading mixed in the early trade on Friday. The Shanghai Composite jumped 1.34 per cent, while Hong Kong’s Hang Seng index dipped 0.15 per cent. In Japan’s Nikkei was trading flat while the Topix index was 0.49 per cent down.