Share Market News Today | Sensex, Nifty, Share Prices Highlights: Domestic benchmark indices saw a volatile trading session on Friday. S&P BSE Sensex danced between gains and losses for most of the day before closing 89 points or 0.15% higher at 58,387. NSE Nifty 50 index added 15.5 points or 0.09% to settle at 17,397. Indi VIX closed 1.77% lower at 18.92. Mahindra & Mahindra was the top laggard on Sensex, down 2%, followed by Reliance Industries, Maruti Suzuki India, and IndusInd Bank. Ultratech Cement added 2.31%, accompanied by ICICI Bank, Airtel.
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Sensex ended 89 points or 0.15% higher at 58,387 points while the NSE Nifty 50 index added 15 points or 0.09% to end at 17,937, just shy of the 17,400 mark. Bank Nifty ended at 37,920.
"Move of a hike of 50bps highlights the urgency to move closer to the neutral policy rate especially when the external environment remains uncertain. Recent depreciation in rupee coupled with elevated crude oil prices (though now on falling trend); might have weighed on members’ decision in favour of larger rate hike, addressing external sector imbalance and reducing the interest rate differential. Even though inflation seems to have reached its peak, it still warrants caution given the uncertain global environment. Inflation projection of 5% for Q1FY24 by RBI provides some comfort indicating modest pace of rate hikes going forward. Bond yields and equity markets may not get much impacted by the announcement and will get driven by changes in global risk appetite and direction of global flows," said Dhiraj Relli, MD & CEO, HDFC Securities.
M&M recorded mediocre performance in 1QFY23 as its EBIDTA margins stood at 11.9% vs our estimate of 12.2% while its Adj PAT exceeded our estimate by 2.7%, due to lower tax rate. Whilst M&M is expected to face some volume pressure owing to semiconductor issue over near term, we believe new products and stronger order book with record high bookings for new XUV700 and new Scorpio would drive its overall volume and profitability. Despite near term challenges due to component supply issue, we expect domestic PV industry to recover in FY23E with strong bounce back in 2HFY23E, which would support MM’s business. Moreover, we expect tractor industry to keep cushioning overall profitability and industry would recover in FY24E. At present we have a BUY rating on MM. We would revisit our estimates post management's call and come out with a detailed note.
~ Mitul Shah, Head of Research at Reliance Securities.
Sensex was trading flat with negative bias with an hour left before the closing bell. Nifty was shy fo 17400.
Sensex was trimmed gains on Friday afternoon but bulls refused to give up and emerged one again from the lows. Nifty turned red only to bounce back in minutes.
BSE Sensex and NSE Nifty 50 were trading flat to positive on Friday, after RBI MPC raised repo rate by 50 bps. Stocks of index heavyweights such as ICICI Bank, Infosys, State Bank of India, Bharti Airtel, and UltraTech Cement, among others helped the indices to stay in green. So far in the day, BSE Sensex rose to 58,649.19, and fell to a day’s low of 58,326.70. NSE Nifty touched a day’s high of 17,474.40, and a day’s low of 17,381.40 apiece. On S&P BSE Sensex, Mahindra & Mahindra (M&M) hit a fresh 52-week high of Rs 1,279 apiece, crossing the previous high of Rs 1,265 apiece. While no stock hit a new 52-week low on S&P BSE Sensex.
"The Central Bank raised the interest rate for the 3rd consecutive month since May’22 by cumulatively 140 bps in its effort to contain inflation. Despite this sharp hike, RBI expects inflation to remain above its comfort zone and has retained its CPI inflation forecast at 6.7% for FY23. RBI expects India’s GDP growth to remain strong at 7.2% in FY23. We believe, the commodity prices have cooled off including crude oil, the inflation may be peaking out. We expect RBI may not be very aggressive in its subsequent policy meets and being more data driven based on inflation numbers," said Motilal Oswal, MD & CEO, Motilal Oswal Financial Services Ltd.
The price of cooking gas piped to household kitchens in the national capital and adjoining cities was hiked by Rs 2.63 per unit on Friday, the second increase in rates in less than two weeks. Piped cooking gas in Delhi will now cost Rs 50.59 per standard cubic meter, as against Rs 47.96 previously, according to Indraprastha Gas Ltd – the firm that retails CNG to automobiles and piped cooking gas to households in the national capital and adjoining towns. The increase is to “partially offset the increase in input gas cost,” IGL said in a tweet. This is the second hike in prices in less than two weeks. Rates were last revised on July 26, by Rs 2.1 per scm.
Sensex and Nifty were seen trimming gains but were still in the green on Friday. Nifty 50 was above 17400 while Sensex was above 58,400.
"On the liquidity front, the continuation of gradual withdrawal indicated by RBI is a step in the right direction to bring about normalization and ease pressure on price rise. The assurance by the RBI governor to provide the requisite backing for ensuring stability in Indian Rupee is also a welcome announcement. On the whole, the 'whatever it takes approach by RBI augurs well for the growth and stability of the Indian economy, while putting an immediate check on inflation," said Jyoti Prakash Gadia, Managing Director, Resurgent India.
Led by Maruti Suzuki India (down 1.18%) only six Sensex stocks were in the red on Friday. Reliance Industries, Nestle India, Sun Pharma, HDFC, and Power Grid were the stocks trading with losses.
After posting a smart rally in the July series, Nifty started the August series on a positive note and it reclaimed the 17000 mark at the start of the series. The index kept its momentum intact and almost tested the 17500 mark on the first weekly expiry day of the month. We witnessed some volatility on the expiry day but the index recovered from its intraday lows to end a tad below 17400. The indices (Nifty and Bank Nifty) have rallied this week on the back of long formations at the start of the series. But the Bank Nifty index has seen some long prior to the RBI Policy on Friday. This indicates profit booking ahead of the event as the indices have already rallied significantly in the last few weeks and are now trading in an overbought zone.
Paytm (One 97 Communications) stock price has soared 15% so far this month to now trade at Rs 807 per share. Although the share price is still down massively from its IPO price of Rs 2,150 apiece, analysts at Axis Capital have now initiated the coverage with a ‘Buy’ rating and projected another 16% upside from Friday’s lows. “Paytm’s wide distribution network allows it to acquire customers and merchants efficiently with low incremental cost of acquisition, retain them via increasing payments and commerce use cases, and monetize via cross-selling and up-selling,” Axis said. The brokerage firm has pinned a target price of Rs 940 on Paytm.
"The 50 bp repo rate hike came 15 bp higher than the majority expectation of a 35bp hike. It is evident that the MPC is frontloading the rate hikes since it feels that CPI inflation is above comfort levels. The MPC has been emboldened to go for this 50 bp hike since 'the economic activity is resilient' and 'withdrawal of accommodation stance is necessary to anchor inflation expectations'. The RBI governor went so far as to say that 'the Indian economy is holding steady in an ocean of turbulence.' The capacity utilization in industry at 75% is higher than the long-term average. This positive view on the economy has been well received by the stock market in spite of the higher at hand expected repo rate hike," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
RBI Governor Das said that India's foreign exchange reserve still strong, and are the 4th highest globally.
RBI Governor Shatikanta Das said that liquidity has been trimmed in recent months from Rs 6.7 lakh crore in April-May to RS 3.8 lakh crore in June-July.
MPC rate hikes have contributed to the withdrawal of accommodation from the financial markets by 130 basis points, RBI Governor Das said.
RBI sees inflation to be at 6.7% this fiscal year with 7.1% in Q2; 6.4% in Q3; and 5.8% in the last quarter. CPI inflation is seen at 5% in the first quarter of next fiscal year. n
RBI Governor Shaktikanta Das said that the RBI has retained real GDP growth projections for FY23 at 7.2%. RBI sees Q1 growth at 16.2; Q2 at 6.2%; Q3 at 4.1%; and 4% in Q4 with risks broadly balanced.
Bank Nifty index breached 38,000 on Friday morning after the MPC decided to hike policy rate by 50 basis points.
RBI Governor Das said that with inflation is expected to remain above the tolerance band in Q2 and Q3 of this fiscal year. He added that MPC agreed that inflation could harm growth in the medium term and hence the MPC members decided that it is warranted to withdraw the accommodative stance.
MPC said that it is focused on the withdrawal of accommodation stance, sid RBI Governor Das.
RBI Governor Shaktikanta Das today announced that the MPC has decided unanimously to hike rates by 50 basis points to 5.4%.
Sensex extended gains to cross 58,500 on Friday, rising more than 200 points. Nifty 50 was inching closer to 17,500.
"RBI rate action today is unlikely to impact markets. The most likely scenario of a 30 to 35 bp rate hike is already known and discounted by the market. Market will be looking forward to the RBI's commentary on inflation, GDP growth for FY 23 and other macros like CAD. The momentum in the market now is influenced by global cues and strong FII buying which has crossed Rs 5300 cr so far in August. The decline in Brent crude to $94 is positive for India's macros and the dip in dollar index to below 106 again augur well for capital flows to India. FII buying happening in sectors like capital goods, FMCG, construction and power is likely to impart resilience to these segments," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Sensex opened 150 points or 0.23% higher, crossing 58,400 while the Nifty 50 index was above 17,400. India VIX dropped but was still above 19 levels.
Sensex rose 100 points in pre-open session while Nifty 50 regained 17400 levels.
Sensex was trading flat with marginal losses on Friday morning during the pre-open session. Nifty was holding 17300.
Nifty closed almost flat on Aug 04 after seeing wild moves on either side on the weekly F&O expiry day. At close, Nifty was down 0.04%% or 6.2 points at 17382. Nifty again showed hesitation in staying low as traders came in to do dip buying, although higher levels attracted some profit taking. 17491-17530 could be the resistance band for the Nifty in the near term while a breach of 17155 could result in acceleration of downtrend.
~ Deepak Jasani, Head of Retail Research, HDFC securities
"Friday’s price action post the RBI Policy will be of utmost importance as that will lead to the short term directional move for the market. Since the momentum readings on the daily chart are in an overbought zone, traders should look to lighten up long positions. A break of low of 17160 will then confirm the change of trend. Also in last couple of sessions, the up move has been concentrated to fewer stocks and sectors which is a sign of divergence. So traders should be very specific in stock picking at current levels and trade with proper risk management. The immediate supports for Nifty are placed around 17160 and 17000 while resistances are seen around 17500 and 17600," said Ruchit Jain, Lead Research, 5paisa.com.