sensex today: Stock Market LIVE Updates: Sensex jumps 250 points as RBI hikes rates in line with expectations; rupee trades above 79 per dollar

Sensex Today Live: Indian shares advanced, the rupee strengthened and bond yields rose after the country’s central bank hiked a key policy rate for the third time to tackle persistently high inflation in Asia’s third-largest economy.

The Reserve Bank of India (RBI) raised the key policy repo rate by 50 basis points.

“With inflation expected to remain above the upper tolerance threshold in Q2 and Q3 of the current financial year, the MPC stressed that sustained high inflation could de-stabilise inflation expectations and harm growth in the medium term,” RBI Governor Shaktikanta Das said.

India’s annual consumer inflation remained above the 7% mark in June and beyond the RBI’s upper tolerance limit of 6% for the sixth month in a row.

The NSE Nifty 50 index rose 0.32% to 17,436.95 by 0454 GMT, and the S&P BSE Sensex advanced 0.36% to 58,509.13, after the policy decision.

India’s 10-year benchmark bond yield rose to 7.2317% after the policy decision, while the rupee was trading at 79.03 per dollar.

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RBI policy was hawkish and the MPC delivered a frontloaded 50 bps rate hike compared to market expectations of 35-40 bps hike, thereby taking the policy rate above pre-Covid levels. The central bank has retained the inflation target for FY23 at 6.7%, despite the softening of base metal and food prices from their earlier highs. The RBI mentioned that the domestic economic activity is showing signs of broadening with improving credit growth, pick-up in investment activity and rising capacity utilization. However, risks like geo political concerns and global financial market volatility and tightening financial conditions will weigh heavily on the outlook. With that, RBI retained the GDP growth forecast for FY23 at 7.2%.

– Sampath Reddy, CIO, Bajaj Allianz Life Insurance

Ahead of earnings…

Price as on 05 Aug, 2022 12:12 PM, Click on company names for their live prices.

With inflation expected to be above 6% for Q2 and Q3, we expect regular RBI interventions in the next 2 quarters – Q2 and Q3 of FY 23 – to ensure rupee stability. With inflation expected to go below 6% in Q4 of FY 23 and then to go down further in Q1 of FY 24, we expect RBI to not to use rate hikes as a tool anymore in those quarters and move to liquidity management measures to ensure that the growth is not stifled. Rural demand still shows a mixed trend despite a broadening economic activity and hence we expect the RBI to use rate hikes more sparingly.

– Vivek iyer- Partner and leader , Financial services risk, Grant Thornton Bharat

RBI MPC voted unanimously hike repo rate by 50 bps to 5.4% – taking to pre pandemic levels. RBI MPC is line with our expectations. Inflation seems to be at the forefront of the move as they maintained CPI forecasts intact at 6.7% for FY 23. To us, this means we are not done with rate hiking cycle yet and we could brace for continued northward journey in rates. Withdrawal of accommodative stance has been maintained. We see this as a “no dovish” undertone policy contrary to markets expecting a dovish stance. Bond markets would now focus on incremental gsec supply and take cues from global bond yields going forward. Staggered investment approach in fixed income stays.

– Lakshmi Iyer, Chief Investment Officer (Debt) & Head Products, Kotak Mahindra Asset Management Company

RBI’s action and statement today was not as dovish as we expected. Therefore, it is very likely that the terminal rate in this rate hike episode will be higher than our expectations. We, thus, revise it to 5.75-6% from 5.5% expected earlier.

– Nikhil Gupta, Chief Economist at MOFSL Group

The CJI has directed SEBI to furnish the document sought by RIL

ET NOW SOURCES

  • DIPAM likely to invite financial bids for BEML in Oct
  • Demerger scheme of non-core land parcels approved

We had expected the RBI to hike the interest rate by 25-35 basis points. However, it has hiked by 50 basis points. One of the reasons why the RBI has decided to act a tad aggressive in hiking the rate of interest is to protect the Indian currency.

– Sunil Damania, Chief Investment Officer, MarketsMojo

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.

– Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

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With inflation expected to remain above the upper tolerance threshold in Q2 and Q3 of the current financial year, the MPC stressed that sustained high inflation could de-stabilise inflation expectations and harm growth in the medium term.

– RBI Governor Shaktikanta Das said while announcing the policy decision.

Rise in term deposit rates should increase liquidity for financial sector

– Shaktikanta Das, RBI Governor

Market LIVE Updates: Nifty Auto trades in the red post RBI outcome

RBI POLICY | SHAKTIKANTA DAS ON RUPEE

  • RBI will remain vigilant on the liquidity front
  • Rupee depreciation has happened in an orderly fashion
  • Rupee has lost 4.7% vs the US dollar
  • Rupee depreciation on account of strengthening of dollar
  • We remain watchful and focused on maintaing the stability of rupee

Consumer price inflation remains uncomfortably high; inflation expected to remain above 6%

– Shaktikanta Das, RBI Governor

Shaktikanta Das on inflation projection for FY23

FY23 Inflation seen at 6.7%Q2: 7.1%Q3: 6.4%Q4: 5.8%

FY23 GDP growth seen at 7.2%, says RBI Governor Shaktikanta Das

RBI POLICY | SHAKTIKANTA DAS SAYS

  • Financial sector remains well capitalised
  • India’s forex reserves provide insurance against global spillovers

Bond yields rise after RBI decision

RBI Governor on economy

Inflation expected to remain above tolerance levels

– Shaktikanta Das, RBI Governor

POLICY OUTCOME | RBI GOVERNOR SAYS

  • Financial markets have remained uneasy despite heavy intervention
  • Core inflation remains at elevated levels
  • MPC noted domestic economy resilient

Sensex reaction to RBI policy move

Sensex reaction to RBI policy move

MPC focussed on withdrawal of liquidity: RBI Governor

RBI MPC hikes repo rate by 50 bps to 5.40%

RBI MPC hikes repo rate by 50 bps to 5.40%

Witnessed large portfolio outflows of $13.3 billion so far

– Shaktikanta Das, RBI Governor

RBI POLICY | SHAKTIKANTA DAS SAYS

  • Successive shocks to global economies taking its toll
  • EMs face rapid tightening of external financing
  • Global, domestic risks for EM economies have magnified

Rupee volatility hits over 4-mth high ahead of RBI

The Indian rupee’s volatility, measured in terms of the daily close-to-close, reached its highest level since late-March ahead of the Reserve Bank of India’s policy decision. The RBI is widely expected to raise the repo rate as it continues its battle to control inflation. Economists, however, differ on the size of the rate hike that the RBI will deliver as the central bank aims to strike the right balance between inflation and growth.

India bond yields fall ahead of RBI policy decision (Source: Reuters)

Indian government bond yields dropped on Friday, with the 10-year yield trading at a three-month low, after global oil prices fell overnight, while market participants awaited a Reserve Bank of India policy decision for further cues.

The 10-year bond yield was trading at 7.1141%, as of 0340 GMT, after ending at 7.1566% on Thursday.

The benchmark Brent crude oil contract ended 3.7% lower at $94.12 per barrel on Thursday amid worries over fuel demand.

The private lender will wind up its UK subsidiary following termination of an agreement to sell 100 per cent of the stake to OpenPayd Holdings. In March 2021, Axis Bank had informed the exchanges about entering into a share purchase agreement with OpenPayd Holdings for sale of 100 per cent stake in Axis Bank UK.

Price as on 05 Aug, 2022 09:55 AM, Click on company names for their live prices.

Rupee moves above 79 per dollar

Chris Wood in his latest Greed & Fear note

Market View: Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

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.

Most active stocks on NSE in early morning session

Price as on 05 Aug, 2022 09:22 AM, Click on company names for their live prices.

Sensex Heatmap: Top gainers & losers in trade at opening tick

Sensex Heatmap: Top gainers & losers in trade at opening tick

OPENING BELL: Sensex gains 150 points, Nifty above 17,400; Thomas Cook rallies 8%

Oil prices extend losses on demand worries

Oil prices extended losses on Friday, after hitting their lowest since before Russia’s February invasion of Ukraine in the previous session, as the market fretted over the impact of inflation on global economic growth and demand.

SGX Nifty signals a positive start

Nifty futures on the Singapore Exchange traded 53 points, or 0.30 per cent, higher at 17,450, signaling that Dalal Street was headed for a positive start on Friday.

Quarterly earnings today

Titan Company, Mahindra & Mahindra, FSN E-Commerce Ventures, One97 Communications, Alkem Laboratories, Petronet LNG, NMDC, Aditya Birla Fashion and Retail, Motherson Sumi Wiring India, UCO Bank, Fortis Healthcare, Graphite India and Raymond are among companies that will announce their quarterly earnings today.

Tech View: Nifty50 turns sideways, faces 17,500 hurdle

Analysts said the index turned sideways after the recent rally and expect it to find support around 17,200 level. They see resistance for the index at 17,500. This is the same level around which the Nifty50 attracted selling pressure during Thursday’s session.

Tokyo stocks rise after US tech gains

Tokyo stocks traded higher Friday following tech gains on Wall Street while more businesses reported that higher raw material prices were weighing on profits. The benchmark Nikkei 225 index opened flat then rose 0.23 percent, or 65.06 points, to 27,997.26, while the broader Topix index was up 0.30 percent, or 5.77 points, at 1,936.50.

Wall Street ends mixed as investors eye payrolls data

Wall Street’s main indexes ended mixed on Thursday as gains in high-growth stocks offset losses in energy shares, with investors looking ahead to monthly jobs report for clues on the pace of interest rate hikes by the Federal Reserve.

Rupee skids 25 paise to 79.40 against US dollar

The rupee depreciated by 25 paise to close at 79.40 against the US dollar on Thursday, posting its second day of losses amid disappointing macroeconomic data and US-China tensions.

Sensex, Nifty on Thursday

BSE Sensex ended 51.73 points or 0.09 per cent lower at 58,298.80. Its NSE counterpart, Nifty50, ended 6 points or 0.04 per cent down to close at Rs 17,382.

Good morning, dear reader! Here’s something to kickstart your trading day

Good morning, dear reader! Here's something to kickstart your trading day

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