Sensex Today Live: After a weak opening, benchmark indices rose as buying emerged following 50 basis points rate hike by RBI. The move is expected to tackle inflation that has gone beyond the tolerance level. Rate sensitive stocks were trading with gains, except auto names that fell. Bjaja Fin-Twins were the biggest gainers among bluechips, while Reliance Industries was the biggest loser.
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5 stocks that defied market mood, fall up to 6%
Price as on 08 Jun, 2022 12:23 PM, Click on company names for their live prices.
Housing sales may dip on likely rise in home loan interest rate: Realty consultants
- The RBI’s decision to hike the benchmark interest rate will make home loans costlier and affect housing sales, especially in affordable and mid-income segments, according to property consultants. The RBI on Wednesday hiked the key benchmark rate by 50 basis points.
- Property consultancy firms Anarock, Knight Frank India, JLL India, Colliers India, India Sotheby’s International Realty and Investors Clinic said that the RBI’s move was on the expected line to control inflation and this would result in an increase in interest rates on home loans.
Decadal low mortgage rates coupled with other govt driven incentives and increased value of homeownership during the pandemic provided much needed stability and momentum to the real estate sector. The robust uptake in the demand has continued despite recent inflationary pressures on commodity prices and adverse supply chain constraints. RBI in its last two MPC meetings has hiked interest rates in order to keep the rising inflation under check. Now with mortgage loan rates set to go up, we may notice a slight demand blip in the short term but overall outlook on the sector remains strongly bullish in the long term. In an interesting move, RBI has now allowed rural co-operative banks to lend towards residential housing projects. This will help improve much-needed liquidity in the sector.
– Sharad Mittal, Director and CEO, Motilal Oswal Real Estate Funds
RBI MPC: Here’s why Mythili Bhushnurmath says we are in a tough spot and it’s not changing soon
Here are the top losers & gainers from the auto pack
Price as on 08 Jun, 2022 11:30 AM, Click on company names for their live prices.
Since the RBI continues to forecast strong growth, it is very likely that it delivers another 25bps hike on 4th of August before it takes a pause. Our fear is that growth could see a serious deceleration in H2FY23 and FY24 on the back of such steep tightening and structural constraints.
– Nikhil Gupta, Chief Economist, MOFSL group
Market View: Yash Gupta- Equity Research Analyst, Angel One
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. It is positive for sectors like BFSI and negative for sectors like real estate.
RBI hiked repo rate by 50 bps – which was in line with our expectation. Status quo on CRR was maintained which is also good news for short end of the yield curve and in line with graded normalisation of liquidity. Upward revision in CPI (by 100 bps) to 6.7% suggests more rate hikes in are in the offing. For fixed income Investors Continue to Stay at mid end of the yield curve on risk reward basis.
– Lakshmi Iyer, Chief Investment Officer
The 50 bps 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 had to frontload its actions. We continue to see another 60-85 bps hike in rest of FY23 to manage inflationary expectations.
– Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank
Sensex today LIVE: Index off day’s low, jumps 200 points
Realty stocks gain on RBI decision; check out top 5 gainers from the pack
Price as on 08 Jun, 2022 10:31 AM, Click on company names for their live prices.
India exports have performed exceptionally well: RBI Governor
- On June 3, FX reserves were at 601.1 billion USD
- Headline FX reserves supplemented by healthy net forward assets
- Propose to permit rural co-op banks to extend finance to commercial real estate
- To permit urban co-op banks to extend doorstep banking services
RBI Policy Impact: Most bank stocks trade in the green
Monitoring the G-Sec market very closely: RBI Govenore
- Will take necessary steps in g-sec market when necessary
- Rupee has moved in an orderly fashion; depreciated 2.5% vs dollar so far in FY23
- Rupee has performed much better than many EME peer currencies
Market LIVE Updates: Nifty recovers as RBI retains FY23 GDP estimates
With inflationary pressures becoming broad-based, it was likely that the CPI inflation would remain above the RBI’s 2-6 per cent band for the first three quarters of the current financial year.
– Shaktikanta Das, RBI Governor
FY23 CPI inflation seen at 6.7% now vs 5.7% earlier
Policy Impact | 10-year bond yield highest since March 15, 2019
RBI MPC Outcome | FY23 real GDP growth estimate retained at 7.2%
RBI Policy Impact: Sensex falls nearly 400 points
Focused on bringing inflation back to target, says RBI Governor
- SDF rate now at 4.65%
- MSF rate,Bank rate at 5.15%
- MPC focused on withdrawal of accommodation
MPC hikes repo rate by 50 bps to 4.90%; focused on withdrawing accommodation
RBI Das says Ukraine war has led to globalization of inflation
- Food, energy, commodity prices remain elevated
- Emerging market economies facing bigger challenges
- Indian economy has remained resilient
Up to 50 bp rate hike by the RBI is already discounted by the market and, therefore , the central bank’s guidance on inflation and rates will be more important. Inflation for FY23 is likely to be around 6.8% forcing the RBI to sound hawkish. For the market, more important than today’s policy announcement would be the US inflation data to be released on Friday. If the US inflation print comes higher than expected, markets will start discounting a more aggressive Fed and this can cause sharp market correction. On the other hand, if the data indicate inflation peaking and potentially drifting down, the US market will bounce back providing a lift up for global markets. One predictable trend in India is that FPIs will continue to sell on every rally.
– Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Sensex Today LIVE: Index slips below 55,000 level
Future Retail, Voda Idea, MRPL among most active stocks on NSE
Price as on 08 Jun, 2022 09:27 AM, Click on company names for their live prices.
Sensex Heatmap: Most index stocks in the green
OPENING BELL: Sensex rises 85 points, Nifty above 16,400 ahead of RBI MPC outcome; Gujarat Gas falls 3%, Tata Steel up 1%
Asian shares rally in early trade
Asian stocks opened higher on Wednesday with big gains following a strong lead from Wall Street, with tech firms again seeing huge buying interest on hopes a long-running crackdown on the sector by China is coming to an end. MSCI’s index of Asia-Pacific shares outside Japan was up by 1.10 per cent.
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 58 points, or 0.35 per cent, higher at 16,482.50, signaling that Dalal Street was headed for a positive start on Wednesday.
Q4 results today
Unitech, Kushal and Supreme Engineering are among companies which will announce their quarterly earnings today.
Tech View: Nifty defends 16,400 support
NSE Nifty50 index formed a small negative candle on the daily chart with minor lower shadow as the market saw selling thanks to cautiousness ahead of the RBI policy meeting scheduled on Wednesday. The index managed to defend 16,400 level on a closing basis.
Oil prices up ahead of US inventories data
Oil prices edged up on Wednesday ahead of data on U.S. oil inventories, with crude futures supported by tight supplies and recovering fuel demand as China’s top cities relax COVID-19 curbs. Brent crude futures for August rose 22 cents, or 0.2%, to $120.79 a barrel by 0012 GMT after closing at the highest since May 31 on Tuesday.
Tokyo stocks open higher, extending US gains
Tokyo stocks opened higher on Wednesday, tracking Wall Street rallies, with a cheap yen giving some support to exporters. The benchmark Nikkei 225 index was up 0.61 percent, or 169.99 points, at 28,113.94, while the broader Topix index was up 0.45 percent, or 8.71 points, at 1,955.74.
US stocks jump as tech, energy shares gain
US stocks rallied late on Tuesday to end higher for a second straight day as technology and energy shares gained, while Target Corp’s warning about excess inventory weighed on retail stocks for much of the session. The Dow Jones Industrial Average rose 264.36 points, or 0.8%, to 33,180.14, the S&P 500 gained 39.25 points, or 0.95%, to 4,160.68 and the Nasdaq Composite added 113.86 points, or 0.94%, to 12,175.23.
Rupee declines 12 paise to record low of 77.78 against USD
The rupee tumbled 12 paise to close at a fresh lifetime low of 77.78 against the US dollar on Tuesday as a sell-off in domestic equities and stronger greenback overseas dented investor sentiment.
Sensex, Nifty on Tuesday
Dragged by banks and IT majors, the 30-share pack Sensex declined 567.98 points or 1.02 per cent to close at 55,107.34. Its broader peer NSE Nifty tanked 153.20 points or 0.92 per cent to 16,416.35. The market also seemed cautious amid the ongoing RBI policy meeting.
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