Markets Live: Equities close marginally higher as RBI policy rates unchanged; Sensex ends up 80 points, Nifty closes above 9650

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Updated: June 7, 2017 5:22:03 PM

Stock markets cheer RBI policy decision to keep the repo rate unchanged at 6.25%, as was widely expected. Benchmark indices end in green after trading flat for most of the day ahead of the monetary and credit policy statement. BSE Sensex provisionally ends up 0.26% at 31,271.28 points, while NSE Nifty ends up 0.28% at 9,663.9 points.

The 30-share barometer gained 62.15 points or 0.19% at 31,252.71 points while the broader Nifty 50 rose 26.8 points or 0.28% to 9,663.95 points.

Indian benchmark indices opened marginally higher as the Asian stocks inched higher ahead of several major political and economic events later this week. The major economic event due today is the bi-monthly monetary policy of the Reserve Bank of India which is expected to come around 02:30 pm.

The 30-share barometer gained 62.15 points or 0.19% at 31,252.71 points while the broader Nifty 50 rose 26.8 points or 0.28% to 9,663.95 points.

Elsewhere in the West, with UK elections, a European Central Bank policy meeting where policymakers may take a less dovish stance, and former FBI Director James Comey’s Senate testimony all set for Thursday, market participants will be wary of making big bets.

Here are the live updates:

04:20 pm: The Monetary Policy Committee (MPC) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.25%. Consequently, the reverse repo rate under the LAF remains at 6.0%, and the marginal standing facility (MSF) rate and the Bank Rate at 6.50%. The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth. Here is the RBI monetary and credit policy June 2017: full-text.

04:05 pm: Reserve Bank Of India has sounded a word of caution on the farm loan waiver issue in its second bi-monthly review of the Monetary Policy for the current fiscal year. RBI Governor, Urjit Patel, said in the post-policy press conference that farm loan waiver is a path that needs to be tread carefully, while the policy statement said that farm loan waivers have raised the risk of fiscal slippages. Earlier, Arundhati Bhattacharya, Chairman, State Bank of India, had also expressed her reservations on the proposed farmland waivers saying that such sops may disrupt credit discipline among borrowers.

03:45 pm: Reserve Bank of India (RBI) has kept its stance ‘neutral’ in the second bi-monthly monetary policy review for the current fiscal announced today. The decision of the Monetary Policy Committee (MPC) is consistent with a neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2% while supporting growth. Here’s why RBI kept the policy rate unchanged with a ‘neutral’ stance on its monetary policy.

03:30 pm:  Stock markets cheer RBI policy decision to keep the repo rate unchanged at 6.25%, as was widely expected. Benchmark indices end in green after trading flat for most of the day ahead of the monetary and credit policy statement. BSE Sensex ends up 0.26% at 31,271.28 points, while NSE Nifty ends up 0.28% at 9,663.9 points.

03:15 pm: Indian Stock markets turn marginally positive as RBI keeps repo rate steady. BSE Sensex is trading up 0.27% at 31,274.68 points, while NSE Nifty is up 0.27% at 9,663.6 points. RBI Deputy Governor B P Kanungo says it is not fair to say that there is cash shortage on longer term basis. Kanungo says 82.6% of the economy has been remonetised as per latest data.

03:01 pm: Domestic markets fall marginally below the previous close with BSE Sensex slipping 15.25 points to 31,175.21 points while NSE Nifty reacts in an opposite manner, slightly inches up 21 points at 9,658.7 points.

03:00 pm: RBI said that there is need to revive private investment, restore banking sector health, remove infrastructure bottleneck. The Central Bank added that it would also work with the government to address stress in bank balance sheet. The Five out of six MPC (Monetary Policy Committee) members vote in favour of status quo on monetary policy, one had different views. The next and third bi-monthly policy meeting for the financial year 2017-2018 of MPC is scheduled on August 1 and 2.

02:45 pm: Reserve Bank of India states that GST roll out not to have a material impact on inflation. Adding to it, the farm loan waivers risk fiscal slippages and inflationary spillovers. The 7th Pay Commission allowances, geo political, financial risk pose upside risk to inflation.

02:35 pm: RBI keeps Policy rates unchanged with Repo rate at 6.25% and Reverse Repo at 6%. However, the Central Bank slashes the Statutory Liquidity Ratio (SLR) by 0.5% to 20% from the previous rate of 20.5%.

02:25 pm: Indian markets stay muted as RBI’s policy decision is a couple of minutes away from the announcement. BSE Sensex up 8 points at 31,198.76 points while NSE Nifty up 4 points at 9,641.65 points.

02:05 pm: Private sector lender Yes Bank today said it has received shareholder nod to raise Rs 20,000 crore in debt instruments through various routes. “The shareholders approved through special resolution the proposal to borrow/raise funds in Indian/foreign currency by issue of debt securities including but not limited to non-convertible debentures, medium term notes and bonds up to a total amount of Rs 20,000 crore,” it said. The statement comes a day after the bank’s annual general meeting which also approved to raise the total borrowing limit of the bank to Rs 70,000 crore through a
special resolution. The bank said all the eight resolutions which were put up at the meeting passed with “overwhelming majority” at the AGM.

01:55 pm: India is among the top five consumer markets in Asia offering retailers consumer spending growth of an average of 6.1 per cent over the next five years, says a report. According to BMI Research, a Fitch group company, China, Sri Lanka, Vietnam, India and Indonesia represent five favourite consumer markets in Asia, offering retailers the strongest consumer spending growth over its forecast period to 2021.

01:40 pm: The mutual fund (MF) industry’s asset base declined marginally by 1.15 per cent to Rs 19.03 lakh crore at the end of May, mainly due to outflow from money market segments. In comparison, the assets under management (AUM) of the MF industry, comprising 42 players, were at an all-time high of Rs 19.26 lakh crore at the end of April, as per the data of Association of Mutual Funds in India (Amfi). The industry’s AUM had crossed Rs 10 lakh crore in May 2014, and it is expected to reach Rs 20 lakh crore this year.

01:25 pm: Shares of Reliance Communications today fell over 4 per cent after Fitch and Moody’s InvestorsService further downgraded the company’s credit ratings, citing a fragile liquidity position and limited ability to repay debt. The stock after making a weak opening tumbled further by 4.22 per cent to Rs 19.25 on BSE.

01:00 pm:  The Reserve Bank of India will announce its second bi-monthly monetary policy review for the current fiscal today. Most experts believe that there would be no change in interest rates, adding that the central bank could adopt a wait and watch policy to see how inflation plays out as GST, the nation’s biggest tax reform, is implemented from 1 July. “Given the inflation trajectory and as the liquidity in enough in the market, it is unlikely that there would be any rate cut this time. I think commentary on the policy will be benign,” State Bank of India DMD and Chief Financial Officer, Anshula Kant, told PTI.

12:39 pm: Domestic markets trade flat as RBI policy hour inches closer. BSE Sensex slips below yesterday’s close, down 3.49 points at 31,187.07 points while Nifty 50 edges down 4.6 points to 9,633.55 points. The shares of FMCG Major Hindustan Unilever hits the record high of Rs 1,114.25 on NSE.

12:16 pm: The shares of blue-chip companies, ICICI Bank (+ 29.25 points), ITC (+ 24.57 points), Reliance Industries (+ 17.8 points), M&M (+ 15.36 points), Hindustan Unilever (+ 14.7 points), Maruti Suzuki (+ 10.17 points) contributes the most to the 100 points gain in Sensex.

This image shows the point-wise contribution of 10 stocks of Sensex which are contributing the most in the index gains.

11:55 am: Indian shares rose on Wednesday in line with broader Asian markets as investors awaited key political and economic events including the monetary policy meeting in India. The Reserve Bank of India is likely to strike a less hawkish tone while leaving interest rates unchanged at its policy meeting later in the day, according to analysts, as inflation is running well below forecasts and the economy has slowed more than expected. The broader NSE index was up 0.3% at 9,666.6 points, a day after breaching the 9,700 level for the first time. The benchmark BSE index was 0.37% higher at 31,306.71 points, driven by gains in consumer stocks.

11:40 am: Shares and bonds in embattled Indian mobile carrier Reliance Communications fell on Wednesday after Moody’s and Fitch further downgraded their ratings to default levels and warned about its ability to deal with long-term debt. Shares in RCom, as the company is known, fell as much as 4.5 percent in early trading, taking their losses in the past month to more than 37 percent. Bonds due 2020 were down 3 points to 67.5/71 cents on the dollar, losing about a third of their value since mid-May.

11:20 am: Amid a weakening global trend and profit-booking by speculators, gold prices fell by 0.28 per cent to Rs 29,485 per 10 grams in futures trade today. At the Multi Commodity Exchange, gold for delivery in August declined by Rs 82, or 0.28 per cent, to Rs 29,485 per 10 grams, in a business turnover of 600 lots. Similarly, the yellow metal for delivery in October moved down by Rs 54, or 0.18 per cent, to Rs 29,639 per 10 grams in two lots.

11:00 am: The rupee pared its initial losses to some extent but was still trading down by 2 paise at 64.45 against the US currency in late morning deals following a sustained bout of dollar demand from banks and importers. Earlier, the rupee resumed lower by 6 paise to 64.49 as against yesterday’s closing level of 64.43 per dollar at the Interbank Foreign Exchange (Forex) Market.

10:45 am: Share prices of Cadila Healthcare soared about 10.3% to Rs 540 on the NSE on the back of reports that the drug maker has received the final approval from the United States Food and Drug Administration (USFDA) to market its Mesalamine Delayed-Release Tablets in the US market, as per ET Now. Cadila Healthcare was the first to file an Abbreviated New Drug Application (ANDA) for a generic version of Lialda and hence will be eligible for an 180 days exclusivity.

10:25 am: Indian markets hold the gains with Sensex up 0.44% at 31,329.65 points while Nifty 50 up 0.38% at 9,673.95 points. The Shares of heavyweights M&M, Hindustan Unilever, Sun Pharma, ICICI Bank, Gail lead the gains on Sensex with up to 2% rise.  

10:05 am: Indian benchmark indices opened on a strong note ahead of the Reserve Bank of India’s monetary policy to be announced later today. The Reserve Bank of India (RBI) will announce its monetary policy later today. A poll by CNBC-TV18 showed that 100 percent of the respondents that include top brokers and economists do not expect any action from the RBI on the repo rate front in the policy.

09:50 am: The rupee was trading lower by 8 paise at 64.51 against the US dollar in early trade today at the forex market amid caution ahead of the RBI’s bi-monthly policy meet outcome due later in the day. The increased demand for the US currency from importers as also the greenback’s gains against rivals overseas put pressure on the rupee.

09:35 am: Earlier yesterday, the Met Department revised upward its initial monsoon forecast and said it is likely to be better than earlier expected. The Shares of GAIL, Bharti Airtel, ICICI Bank, SBI, Hero MotoCorp, M&M, Bajaj Auto and Tata Steel were trading in positive zone with gains of up to 0.93%.

09:15 am: Indian markets opened slightly higher today with BSE Sensex up 0.19% at 31,252.71 points while NSE Nifty up 0.28% to 9,663.95 points. The shares of Bharti Airtel, Yes Bank, Vedanta are in focus today. The main event to watch is the RBI’s monetary policy statement which is driving the sentiments of investors.

With inputs from Reuters and PTI.

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