Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and Nifty 50 ended 0.4 per cent down each on Wednesday, after RBI’s repo rate hike. BSE Sensex fell 215 points or 0.4 per cent to settle at 54892, while Nifty 50 index shut shop at 16356, down 60 points or 0.4 per cent. Tata Steel, State Bank of India (SBI), Dr Reddy’s Laboratories, TCS, Titan Company, Bajaj Finance, Maruti Suzuki were top index gainers. On the contrary, Bharti Airtel was the top drag, followed by ITC, Reliance Industries Ltd (RIL), Asian Paints, Axis Bank, ICICI Bank among others. Nifty Bank fell 0.14 per cent to settle at 34,946.15
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Indices remained under pressure after repo rate hike, Sensex trading lower by around 200 points, Nifty below 16,400 The Sensex was trading lower by 209.38 points or 0.38% at 54,897.26 and the Nifty was down 57.35 points or 0.35% at 16,359.3.
In a second round of policy rate hike in two months, the RBI's monetary policy committee (MPC) has unanimously voted to raise repo rates by 50 basis points, taking it to 4.9 per cent. From hiking repo rates to raising inflation projections, here are key takeaways from RBI's monetary policy announcement. Read here
As consumer confidence is growing towards adoption of digital payments, their preference towards convenience is increasing as ever. Today’s announcement to enhance the limit of e-Mandates on Cards for Recurring Payments from Rs. 5000 to Rs 15000 is a welcome move as it will not only benefit consumers to set mandates for multiple categories of payments but also include more players from insurance, education and loan sectors. Ramesh Narasimhan, CEO, Worldline India
MPC’s focus has now turned to taming inflation as reflected by its hawkish stance and aggressive rate hike. We believe RBI is front-loading rate hikes (90bps in 2 months!). We expect another 50bps repo rate hike by the end of FY23 leading to an overall 140bps rate hike in FY23. Such a steep rise in borrowing costs will affect discretionary spending and dampen the nascent recovery of investments. We think that 10yr G-sec would cross 8% sooner than our earlier projection of – by end of CY22. Sumit Shekhar, Economist, Ambit Capital
Though rate hikes might not help much in the supply side inflation, they could cool down the demand. Going forward, we might see the Rupee spot weakening towards new all-time lows amid weak fundamentals. Elevated crude oil prices, bounce back in the dollar index and persistent FII outflows ahead of FOMC meeting might prompt gradual depreciation in Rupee towards 78.2 levels. Jigar Trivedi – Research Analyst- Commodities & Currencies, Fundamental, Anand Rathi Shares & Stock Brokers
LIC (Life Insurance Corporation of India) share price fell for the 8th consecutive session on Wednesday, hitting a fresh all-time low of Rs 738.10 apiece on BSE. With today’s nearly 2 per cent fall, the market cap of the insurance company stood at Rs 4.68 lakh crore. However, at the offer price of Rs 949, LIC’s market capitalisation was at Rs 6.02 trillion. LIC stock price is down 22 per cent from its IPO price of Rs 949 during its public offer. Read full story
Over the next three meetings (August, October, and December), we expect the RBI to make inflation management its key priority, which could include steps to curb aggregate demand. In terms of sequencing, we now expect the RBI to deliver a 35bp rate hike in August, and then raise the policy rate by 25bp to 5.50% in October, while also switching to a neutral stance. Beyond that, we expect RBI to deliver one more rate hike in December to 5.75%, which we now believe will mark the end of this cycle. This will allow the RBI to lean its policy stance towards tightening, while maintaining a neutral stance by the end of the calendar year. Rahul Bajoria, MD & Chief India Economist, Barclays
The bond markets and equity markets reacted well to the MPC outcome being relieved that the MPC did not sound more hawkish than most expectations. Absence of a CRR hike also was a relief. Stock prices of rate sensitive sectors including Auto, Banks, Finance, Durables, Realty have reacted well to the MPC outcome due to the above. However, this upmove may need more triggers to continue. Dhiraj Relli, MD & CEO, HDFC Securities
Dalal Street remained range-bound and marred by volatility as headline indices and broader markets remain engaged in a tug of war between bulls and bears. S&P BSE Sensex opened lower today before turning positive, NSE Nifty 50 index is holding above the 16,400 zone — which chartists see as a support for the index. Some analysts believe it might be wise to go stock specific at this juncture as stock markets witness multiple headwinds. Buying dividend stocks too might be a strategy investors might look at. Marquee names such as Hindustan Unilever Ltd (HUL), Tata Steel, and HDFC AMC are some stocks that will go ex-dividend soon.
“The repo rate hike of 50 bps by the RBI’s Monetary Policy Committee is pretty much on expected lines. RBI has raised its inflation forecast for FY23 to 6.7% which is probably a more realistic number now. The MPC has dropped the words “remain accommodative” and indicated that it is focused on withdrawal of accommodation; this is possibly suggesting a “neutral to calibrated-tightening” stance. The bond markets have heaved a sigh of relief as the rate hike came in as per expectations, and RBI did not increase the CRR any further. RBI’s ongoing measures around withdrawal of liquidity have been broadly successful in bringing down systemic liquidity. Although the bond markets have reacted positively to the policy, yields will continue to be under pressure over the next few weeks, and drift upwards. Key factors to watch out for going ahead, are how the food inflation pans out and the government’s borrowing programme and the ongoing auction supply.”
~Unmesh Kulkarni, Managing Director Senior Advisor, Julius Baer India
At the peak, we expect the Reserve Bank of India to take the repo rate to the 6-6.5% range during the ongoing rate hike cycle. While the major part of rate hike by the Reserve Bank of India are already factored in by most parts of the financial market, in the near term, the higher than expected rate hike can have some negative influence in the equity and bond market. Sujan Hajra – Chief Economist and Executive Director, Anand Rathi Shares & Stock Brokers
As expected, the repo rate hiked by 50 bps to 4.90%. After the commentary of the RBI governor last month, the market has already expected a rate hike of 50bps in the June meeting. So now the RBI has taken a decision on the rate hike of 50bps. We believe that this rate hike is already priced in the market. Along with this bank rates have also increased by 50bps to 5.15% and withdrawal of accommodative stance for the indian economy. A good take away for the market is that RBI has retained the GDP forecast of 7.2% for FY2023 and CPI inflation expected to be at 6.7% for FY2023. Overall the policy is in the expectation of the market, 50bps rate hike is already priced in the market now the market focus will be on the Fed rate hike. Yash Gupta- Equity Research Analyst, Angel One
From a real estate perspective, home loans are set to get costlier. Banks have already raised the interest rate on home loan by 30-40bps since the earlier repo rate hike by the RBI in May and now with the repo rate cumulatively higher by 90 basis point there will be further increase in interest rate for homebuyers. Rising interest rate along with elevated property construction cost and product price pressures could adversely impact on the real estate buyer’s sentiment. We hope that economic recovery and household income growth will serve as a cushion for sustaining consumer demand in the face of this rate hike. Further, monetary policy tightening by central banks globally and any resolution on the prolonged Russia – Ukraine war will bring price stability. Shishir Baijal, Chairman & Managing Director, Knight Frank India
Rate sensitive stocks such as banks, realty and autos gained on Wednesday, after the Reserve Bank of India’s (RBI) MPC hiked repo rate by 50 bps. Nifty Bank, Nifty PSU Bank, Nifty Private Bank, and Nifty Realty indices were trading in positive territory, gaining up to 2.3 per cent. A few auto stocks too were seen trading in green. Domestic equity market benchmarks BSE Sensex and Nifty 50 turned positive soon after RBI Governor Shaktikanta Das concluded the MPC meet. The top contributor to the indices’ gain was State Bank of India (SBI), which jumped over 2 per cent to day’s high of 475.50 apiece. Read full story
Adani Wilmar is one of the few stocks which is holding fort despite a strong rally in crude oil prices due to strong pricing power of the company. Technically, 630 remains strong support for the stock for long term investors. Strong rally till 980 can be expected only if daily close is above 770. Pavitraa Shetty, Co-founder & Trainer, Tips2Trades
RBI's projections of GDP growth rate of 7.2% and inflation of 6.7% for FY23 reflect a realistic monetary policy. The higher inflation projection indicates that the central bank recognises the seriousness of inflation and the 50 bp repo rate hike is a message that they are determined to anchor inflation expectations. The Governor's remark that “the economy remains resilient and recovery has gathered momentum” is bullish from the market perspective. The bond market's positive response with bond yields rising stems from the absence of CRR hike.
~Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
No CRR hike by the RBI is a relief for Nifty Bank as it gained more than 1 per cent.
Rate sensitive stocks gained on Wednesday after the Reserve Bank of India (RBI) hiked repo rate by 50 basis points to 4.90 per cent in order to tackle elevated inflation. Most bank stocks, which are among the most sensitive stocks with respect to policy rate change, traded with gains, albeit marginal. Nifty Bank advanced 0.14 per cent after the RBI’s action. SBI was the biggest gainer, rising about 1 per cent. It was followed by up to 1 per cent gains in Bank of Baroda, PNB, IDFC First Bank, IndusInd Bank, Axis Bank and The Federal Bank.
“As expected, the repo rate was hiked by 50 bps to 4.90%. After the commentary of the RBI governor last month, the market has already expected a rate hike of 50bps in the June meeting. So now the RBI has taken a decision on the rate hike of 50bps. We believe that this rate hike is already priced in the market. Along with this bank, rates have also increased by 50bps to 5.15%, and withdrawal of the accommodative stance for the Indian economy. A good takeaway for the market is that RBI has retained the GDP forecast of 7.2% for FY2023 and CPI inflation is expected to be at 6.7% for FY2023. Overall the policy is in the expectation of the market, a 50bps rate hike is already priced in the market now the market focus will be on the Fed rate hike.”
~Yash Gupta- Equity Research Analyst, Angel One
Nifty Realty gains 1.11 per cent as RBI permits rural cooperative banks to extend finance for residential housing project to further augment credit flows to housing sector.
Following the repo rate hike announcement by RBI Governor Shaktikanta Das, S&P BSE Sensex rebounded into positive zone and was up 174 points.
Shares of Hindustan Unilever (HUL) have jumped 3 per cent in one month, outperforming benchmark NSE Nifty 50, which has advanced half a per cent. HUL share price is expected to rally 22 per cent going forward given that company is the best prepared among peers on the technology as well as the e-commerce strategy front to deal with potentially significant disruptions ahead, according to analysts at Motilal Oswal Financial Services. The brokerage maintains ‘buy’ rating on the stock with a target price of Rs 2,700 per share, implying 22 per cent upside. HUL shares were quoting at Rs 2,198 apiece, down 0.5 per cent on the National Stock Exchange intraday.
The 50bps repo rate hike comes on the back of persistence of elevated inflation and the continued upside risks. Given that inflation is expected to remain above 6% through 3QFY23 , RBI has to frontload actions. We continue to see another 60-85bps hike in rest of FY23 to manage inflationary expectations. Upasna Bhardwaj Chief Economist at Kotak Mahindra Bank
Real GDP for the current financial year is seen at 7.2%. Q1 at 16.2%, Q2 at 6.2%, Q3 at 4.1%, and Q4 at 4%
RBI MPC announced to hike repo rates by 50 bps to 4.9%, i.e. below pre-pandemic level
BSE Sensex and Nifty 50 fell 0.5 per cent as RBI starts MPC meet
Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold and silver prices fell in India on Wednesday on the back of weak global cues. On Multi Commodity Exchange, gold August futures were ruling Rs 88 or 0.2 per cent down at Rs 50,880 per 10 grams, as against the previous close of Rs Rs 50,968. Silver July futures were trading at Rs 62,005 per kg, down Rs 238 or 0.4 per cent on MCX. Read full story
Nifty Bank index was up 0.1 per cent ahead of RBI MPC meet decision
On the flip side, Nestle India, Hindustan Unilever (HUL), Sun Pharma, Maruti Suzuki, Infosys, Reliance Industries Ltd (RIL) were among top index draggers.
Tata Steel, NTPC, Dr Reddy's, State Bank of India (SBI), Axis Bank, HDFC Bank, Wipro were among top index gainers
BSE Sensex was trading flat, down 28 points while NSE Nifty 50 gave up 16450 levels ahead of RBI policy outcome
BSE Sensex trades flat, up 72 points while NSE Nifty 50 fell in the pre-opening session to trade just above 16400
Rupee to open flat at 77.68 as RBI keeps it well protected from any sharp depreciation move. Today is the RBI monetary policy and a rate expectation of 25-50 bps is there. Let's see what RBI delivers. Eur and GBP slightly down from their highs, Asian currencies generally stable from down from their recent highs. FPIs and oil continue to buy dollars on all dips. Exporters and importers to wait for RBI policy at 10 and take a call accordingly. Importers need to keep buying near to 77.50 for near term hedges as oil remains above $ 120.50 per barrel. Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors
Domestic equities are likely to see a gap up opening on the back of a strong upsurge in overnight US markets and early optimism in SGX Nifty. However, if the RBI's rate hike decision meets street expectations, markets may price in the hike. The street suspects RBI will go for another 40-basis points rate hike. That said, RBI would also prefer to go slow on rate hikes in the backdrop of the government too responding to the inflation risks. The recent announcement on fuel tax cuts and reduction of import duties on edible oils will provide some comfort to the RBI. Besides the Reserve Bank of India, the European Central Bank is also set to meet next week with the outcome expected on June 9. Prashanth Tapse, Vice President (Research), Mehta Equities
We are of the view that the market structure is weak but mildly oversold. For the traders, as long as the indices are trading below 16500/55400 the short-term texture remains weak, below which the correction wave is likely to continue till 16300/54800 further downside may also continue which could drag the indices up to 16225/54500. On the other side, above 16500/55400 chance of hitting 16600-16650/54700-54850 would turn bright. Read full story
Sensex and Nifty continued to slide down on Tuesday as bears remained in control on Dalal Street. S&P BSE Sensex tanked 567 points or 1.02% to settle at 55,107 while the NSE Nifty 50 index fell 153 points or 0.92% to end the day at 16,416. Volatility was on the rise as benchmarks fell, gaining 1% and remaining above 20 levels. Ahead of Wednesday’s trade, SGX Nifty was up with gains, suggesting a positive start for Dalal Street. Global cues were positive after Wall Street equity indices closed with gains. Investors will keep an eye on RBI’s MPC decision today and the central bank’s projections for inflation. Read full story
Indian rupee may depreciate further on Wednesday amid strong dollar, continuous FII outflows, risk aversion in markets and elevated crude oil prices. Rupee may trade in the range of 77.20-78.50 in next couple of sessions, according to forex analysts. In the previous session, the rupee slipped to close at a new low against the US dollar as a massive sell-off in domestic equities and stronger greenback overseas on investor sentiment. Persistent foreign capital outflows and elevated global crude oil prices also impacted the domestic unit. At the interbank foreign exchange market, the local unit opened at 77.72 and traded between 77.69 – 77.73 range before settling at 77.73, down 7 paise over its previous close.
Stocks in Asia rose Wednesday after gains in US equities and as a pullback in bond yields provided some respite for investors fretting that higher rates will slow down growth. Read more
US stocks ended higher on Tuesday along with Apple and other technology shares, while Target Corp’s disappointing margin forecast weighed on retail stocks for much of the day. Energy shares also climbed with higher oil prices. Also read
HDFC Bank: HDFC Bank on Tuesday announced a 0.35% increase in lending rate. The hike, which came a day ahead of the RBI’s scheduled policy review, is the second such move from the lender in as many months, taking the cumulative hike to up to 0.60%.
SBI: State Bank of India (SBI) has appointed Alok Kumar Choudhary as its new Managing Director (MD) with effect from June 7, 2022. He has replaced former MD Ashwani Bhatia, who took charge as the whole-time member of the Securities and Exchange Board of India (SEBI).
Shares of Life Insurance Corporation (LIC) of India continued their downtrend for the sixth consecutive session on Tuesday. The stock declined over 3% on Tuesday to hit its all-time low of Rs 751.00 apiece. The stock is down 20.6% from its issue price of Rs 949 during its public offer. Investors who bought the insurer’s shares at the offer price have lost about Rs 1.2 trillion to date, showed Bloomberg data. Read full story
Yields on the benchmark bond rose on Tuesday hitting another three-year high of 7.5180%, a day ahead of the Reserve Bank of India’s monetary policy announcement, with the bond markets anticipating steep hikes in the repo rate over the next few months. Experts observed that since the out-of-cycle hike in the repo rate in early May, the market’s expectations on rate hikes have become somewhat unanchored. They said the overnight interest rate swaps are indicating a terminal rate of somewhere close to 7% for the repo by April next year. Read full story
Stocks dipped, the 10-year bond yields touched a new three-year high and the rupee fell to a record low in intra-day trades on Tuesday, as markets stayed nervous ahead of the Reserve Bank of India’s monetary policy announcement on Wednesday. The benchmark bond yield closed at 7.5180%, up 2 basis points over Monday’s close. Meanwhile, the US treasury was ruling at 2.98% late Tuesday evening, having earlier overshot the 3% mark. Read full story
The World Bank on Tuesday scaled down its FY23 growth forecast for India to 7.5% from 8% predicted in April, citing the damaging impact of rising inflation, supply-chain disruptions and the Russia-Ukraine conflict. These headwinds would offset “buoyancy in the recovery of services consumption from the pandemic”, it said. Read full story
Reserve Bank of India (RBI) is likely to raise the benchmark lending rate by 25-50 basis points on Wednesday as inflation continues to remain above its comfort level, say experts. Last month, RBI raised the repo rate or short term lending rate by 40 basis points in an off-cycle monetary policy review to check spiralling inflation.
The decision of the RBI Governor Shaktikanta Das-headed Monetary Policy Committee (MPC), which started its deliberations on Monday, is scheduled to be announced at 10 am on Wednesday. Read full story