Sensex today: Index up 578 points as RBI maintains status quo; SBI, Tata Steel top gainers
Sensex today: Index up 578 points as RBI maintains status quo; SBI, Tata Steel top gainers
Sensex today: The benchmark indices ended higher on Thursday after the Reserve Bank of India (RBI) maintained status quo in its first bi-monthly monetary policy review of 2018-19 in line with the expectations. The Sensex ended at 33,596, up 577.73 points, while the broader Nifty50 closed at 10,325, up 196.75 points. Stocks from the rate sensitive sectors rallied. Nifty Bank, Nifty Auto and Nifty Realty indices gained up to 3 per cent. Nifty PSU Bank rallied 5 per cent, top sectoral gainer.
In the broader market, the BSE Midcap and the BSE Smallcap indices outperformed to rally nearly 2 per cent each. Market breadth, indicating the overall health of the market, remained positive. On the BSE, 2,071 stocks rallied, 631 stocks declined, while 133 stocks remained unchanged.
Currently, repo rate - the short term lending rate at which RBI lends to banks - stands at 6 per cent. Consequently, the reverse repo rate is 5.75 per cent and the marginal standing facility (MSF) rate and the bank rate stand at 6.25 per cent.
The Patel-headed MPC has two other representatives from RBI - Deputy Governor Viral Acharya and Executive Director Michael Debabrata Patra. The three external members are Chetan Ghate, Pami Dua and Ravindra Dholakia.
Overseas, world equities recovered from a selloff triggered by escalating Sino-US trade tensions, with investors hoping a full-blown trade war between the world’s two biggest economies can be averted. Sentiment was lifted as the United States expressed willingness to negotiate a resolution to the trade fight after the proposed US tariffs on $50 billion in Chinese goods prompted a quick response from Beijing that it would retaliate by targeting key American imports.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 per cent, a day after it hit its lowest level in almost two month. Japan's Nikkei gained 1.2 per cent. Markets in mainland China, and those in Hong Kong and Taiwan, are closed on Thursday.
Overnight On Wall Street, the S&P 500 gained 1.16 per cent and the Nasdaq Composite added 1.45 per cent, clawing back heavy losses of more than 1.5 per cent right from earlier in the US session.
On Wednesday, The Sensex ended at 33,019, down 351.56 points, while the broader Nifty50 closed at 10,120, down 124.80 points.
Latest Updates
Rate sensitive stocks rally up to 9% as RBI signals no rate hike in 2018
Stocks from the rate sensitive sectors such as banking, realty and auto had a strong rally on Thursday after the Reserve Bank of India maintained status quo for the fourth straight time in its first bi-monthly monetary policy review of 2018-19. Nifty Bank, Nifty Realty and Nifty Auto indices rallied up to nearly 3 per cent. Public sector banking stocks outperformed with Nifty PSU Bank (up 4 per cent) being the leading sectoral gainer among NSE indices. Canara Bank (up 9.2 per cent), Bank of India (up 7.7 per cent) and Syndicate Bank (up 6.6 per cent) contributed most to the index.
Nifty Bank advanced 2.6 per cent, led by gains in Bank of Baroda (up 6 per cent), SBI (up 5 per cent) and ICICI Bank (up 3 per cent). Nifty Bank slipped over 6 per cent since last RBI policy held on February 7, 2018.
Nifty PSU Bank top sectoral gainer
Source: NSE
Mustafa Nadeem, CEO, Epic Research
Amid the ongoing fears of Trade war, Softening inflation and kick off to government borrowing, that is being offloaded, RBI Kept the repo rates unchanged and keeping its stance very clear which is focused on Containing the inflation and improving the overall growth. The key Repo rate has been kept at 6 and other key parameters remaining the same has been widely expected while 5 out 6 members of MPC were neutral.
The stance was widely expected because there were numbers of things that were in favor. GDP inching to 7.2% and now is projected to 7.3 in the coming Financial Year. Secondly easing of Inflation from 5.21 high to below 5.9% and looks to be contained now with projection in 5.7 to 5.9%. On top of it, we have seen latest monsoon reports projecting the normal forecast paves the way for RBI to keep its stance NEUTRAL.
This is a comfortable scenario for RBI while the only itch is of the crude oil which was pegged at $55 is now pegged at $68 and there is a potential risk to the Inflation. So that is one concern along with Fiscal deficit. Government borrowing being reduced in a year which is followed by an election is also a straightforward stance set by the Govt and its policy on fiscal prudence.
Markets at Close
The Sensex ended at 33,596, up 577.73 points, while the broader Nifty50 closed at 10,325, up 196.75 points. Stocks from the rate sensitive sectors rallied. Nifty Bank, Nifty Auto and Nifty Realty indices gained up to 3 per cent. Nifty PSU Bank rallied 5 per cent, top sectoral gainer. In the broader market, the BSE Midcap and the BSE Smallcap indices outperformed to rally nearly 2 per cent each. Market breadth, indicating the overall health of the market, remained positive. On the BSE, 2,071 stocks rallied, 631 stocks declined, while 133 stocks remained unchanged.
Motilal Oswal, Chairman & MD, Motilal Oswal Financial Services
As expected RBI Guv left all key rates unchanged. It is imperative in the global scenario to hold the horses of reaction to rates. Two continents are going to tighten the economy, in that situation to keep status quo is the best way, and observe the changes. From the Indian context, we are at a reasonably good base rate and financial sector is now passing on the benefits of lower rates slowly, in the economy. Markets have corrected very well and now awaiting there bounces in the corporate earnings momentum. We think 10k on Nifty and 33k on Sensex are good levels to invest in the equity markets from the long-term perspective. We will witness some turbulence, thanks to global trade fight, but subject to that volatility, these are good levels for retail investors to commit some money.
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RBI monetary policy review 2018: RBI Governor Urjit Patel along with six-member Monetary Policy Committee (MPC) on Thursday, maintained status quo for the fourth time in a row during first bi-monthly monetary policy of FY19. Policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.0%. Consequently, the reverse repo rate under the LAF remains at 5.75%, and the marginal standing facility (MSF) rate and the Bank Rate at 6.25%. Further, the central bank has also remains firm on its neutral stance, which has been changed from earlier accomodative.
Market expert Ajay Bagga on RBI policy
It was a pragmatic policy. RBI has gone softer on monetary policy. Inflation numbers are positive, the expectations are low. So, we can infer rate hike will not be on cards in 2018.
Sensex extends gains
At 2:37 pm, the Sensex was trading at 33,511, up 492.76 points, while the broader Nifty50 was ruling at 10,290, up 162.55 points.
Nirmal Bank on RBI policy
We expect the Reserve Bank of India or RBI to maintain status quo on key policy rates at its April policy meeting. The recent easing of inflation led by vegetable prices will ensure that inflation in 4QFY18 will be below the RBI’s 5.1% forecast which provides some respite for the central bank, and room to support the ongoing recovery. Our earlier base case was a rate hike in June 2018, but the recent softening of inflation, in our view, gives the RBI head room to push back its rate hike.
Nevertheless, we expect the RBI to strike a cautiously hawkish stance with upside risks to inflation. Consumer Price Index or CPI inflation is likely to turn up from April 2018 onwards with the seasonal rise in vegetable prices. In addition, increase in minimum support price of agricultural produce, hike in allowances to employees by state governments, high government spending ahead of elections and pass-through of past in commodity prices are all likely to add to
inflationary pressure. High crude oil prices and the rising risk of trade wars will also weigh on the RBI’s decision. We expect inflation to peak in June 2018, but it is likely to average 5% in FY19, about 100bps higher than the central bank’s target. Consequently, we continue to expect a 25bps rate hike in 2HCY18.Market Update
At 1:20 pm, the Sensex was trading at 33,487, up 468.17 points, while the broader Nifty50 was ruling at 10,281, up 153.15 points.
Tata Motors share price rallies massive 12% in 4 days; should you buy?
Tata Motors share price continued trading higher for the fourth straight session, extending its 3.6 per cent surge of the previous session as Jaguar Land Rover (JLR) reported 83 per cent rise in FY18 sales and lined up 10 new products for the new fiscal. The stock rose as much as 3.2 per cent to Rs 367.20 on the BSE in today's trade.
Brokerage Systematix Institutional Equities has a buy rating on the Tata Motors stock with a target price of Rs 519, over 29 per cent upside from the current levels. "Tata Motors ended the fiscal year 2018 on a strong note, with impressive all-round growth in March. Its total volumes rose by 34 per cent yoy to 75,883 units. Domestic sales edged up 35 per cent yoy in March. CV segment volumes were up 37 per cent yoy, buoyed by a 77 per cent growth in LCV segment," it said.
Salman Khan convicted in black buck case: Mandhana Retail Ventures share price plunges 15%
Mandhana Retail Ventures share price slumped over 15 per cent from its day high on Thursday after actor Salman Khan was found guilty in the 1998 black buck poaching case while the other four accused stars, Sonali Bendre, Saif Ali Khan, Tabu and Neelam, were acquitted of all charges. Textile and apparel manufacturing company Mandhana Retail Ventures sells the Salman Khan owned Being Human brand of clothing, and has famed investor Rakesh Jhunjhunwala as its biggest shareholder. Jhunjhunwala owned 12.73 stake in the company as of December 31, 2017, latest data available with BSE showed.
Tata Motors in focus
Tata Motors share price continued trading higher, extending its 3.6 per cent surge of the previous session as JLR India reported 83 per cent rise in FY18 sales and lined up 10 new products for the new fiscal. The stock rose as much as 3.2 per cent to Rs 367.20 on the BSE in today's trade. Tata Motors-owned Jaguar Land Rover had on Tuesday said it plans to bring 10 new products in India in 2018-19, riding high on 83 per cent jump in sales during last fiscal.
Nifty Technical Outlook by Nirmal Bang
Nifty is expected to open with gap up and likely to take a clue from Monetary Policy. Technically, Nifty may face a resistance of 10240-10270 levels any move above the same may extend its pull back rally towards 10340/10400 mark. On the flip side support lies at 10120-10000 levels. Overall view is cautious to sideways, trade with the strict stop loss as today is a event day..
Stocks in News
- Natco Pharma: Introduces generic of Multiple Sclerosis tablets
- Vedanta : Top court allows Vedanta to sell Goa Iron Ore inventory
- Adani Enterprises: The company has won an award from National Highways Authority of India (NHAI) for an infrastructure project in Chhattisgarh
Nifty outlook by IIFL
Nifty finds support at 10,111, which was yesterday's panic bottom, while 10,279 acts as resistance. Bank Nifty finds support around 24,067, while 24,666 acts as resistance on the upside.
Sensex Heatmap at Open
Source: BSE
Market Breadth turns positive
Market breadth, indicating the overall health of the market, turned strong sharply. On BSE, 1,266 stocks rallied, 159 stocks declined, while 38 stocks remained unchanged.
Markets at Open
The Sensex was trading at 33,404, up 385.68 points, while the broader Nifty50 was ruling at 10,252, up 123.65 points.
Rupee at open
Rupee opens at 65.03/$ against Wednesday’s close of 65.15/$
Wall Street on Wednesday
Wall Street’s three major indexes staged a comeback to close around 1 percent higher on Wednesday as investors turned their focus to earnings and away from a trade conflict between the United States and China that wreaked havoc in earlier trading.
After investors fled equities in the morning due to proposed retaliatory tariffs from China, their concerns about a potential trade war eased by the afternoon after Trump’s top economic adviser Larry Kudlow said the administration was in a “negotiation” with China rather than a trade war.
Investors said they were comforted by the fact that any tariffs would not take effect immediately, if at all. Strategists also cited the S&P’s bounce above a key technical support level and said they expect equities to rise further around the first quarter earnings season, due to start in mid-April.
The Dow Jones Industrial Average rose 230.94 points, or 0.96 percent, to close at 24,264.30, the S&P 500 gained 30.24 points, or 1.16 percent, to 2,644.69 and the Nasdaq Composite added 100.83 points, or 1.45 percent, to 7,042.11.
Asian markets
Asian shares bounced from two-month lows on Thursday as world equities recovered from a selloff triggered by escalating Sino-U.S. trade tensions, with investors hoping a full-blown trade war between the world’s two biggest economies can be averted.
Sentiment was lifted as the United States expressed willingness to negotiate a resolution to the trade fight after the proposed U.S. tariffs on $50 billion in Chinese goods prompted a quick response from Beijing that it would retaliate by targeting key American imports.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 percent, a day after it hit its lowest level in almost two month. Japan's Nikkei gained 1.2 percent.
Markets in mainland China, and those in Hong Kong and Taiwan, are closed on Thursday.
On Wall Street on Wednesday, the S&P 500 gained 1.16 percent and the Nasdaq Composite added 1.45 percent, clawing back heavy losses of more than 1.5 percent right from earlier in the U.S. session.
RBI policy outcome later in the day
RBI monetary policy review 2018-19: The Reserve Bank of India (RBI) is just few hours away from presenting the first monetary policy of the fiscal year FY19, and many economists have already projected a status quo in this review for the third time in a row. RBI kept policy repo rate unchanged at 6% since past three monetary policy meetings along with accommodative stance due to fear of higher inflation and macro-economic data.
The six-member Monetary Policy Committee including the RBI governor Urjit Patel held a meeting on Wednesday for discussing the policy, and later today, the resolution of the meet will be announced for all.
Edelweiss Securities expects the RBI to leave the policy rate unchanged, while acknowledging the recent softness in inflation readings. "RBI is unlikely to express any urgency to raise rates soon. Yet, high crude oil prices, withdrawal of global liquidity and fiscal developments domestically will keep RBI cautious and vigilant on inflation front, thus maintaining neutral-to-hawkish policy tone," said broking firm.
Currently, repo rate - the short term lending rate at which RBI lends to banks - stands at 6 per cent. Consequently, the reverse repo rate is 5.75 per cent and the marginal standing facility (MSF) rate and the bank rate stand at 6.25 per cent.
The Patel-headed MPC has two other representatives from RBI - Deputy Governor Viral Acharya and Executive Director Michael Debabrata Patra. The three external members are Chetan Ghate, Pami Dua and Ravindra Dholakia.
Pre-open trade
The Sensex was trading at 33,293, up 273.99 points, while the broader Nifty50 was ruling at 10,228, up 100.05 points.
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The benchmark indices pared all intraday gains to end in red with the Nifty50 dipping below its crucial 10,150 mark as investors turned cautious ahead of the Reserve Bank of India (RBI)'s monetary policy outcome scheduled for Thursday. Globally, negative trend in overseas markets after US-China trade war fears re-ignited, also contributed to the losses. The Sensex ended at 33,019, down 351.56 points, while the broader Nifty50 closed at 10,120, down 124.80 points.
In the broader market, the BSE Midcap and the BSE Smallcap indices slipped 1 per cent each. Market breadth, indicating the overall health of the market turned negative. On the BSE, 1,191 stocks rallied, 1,442 stocks declined, while 151 stocks remained unchanged.
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