The S&P BSE Sensex snapped its five-day winning streak while the NSE Nifty 50 Index was little changed despite the Reserve Bank of India surprising the street with a rate cut and changing policy stance to "neutral" under Governor Shaktikanta Das's first monetary policy review. In today's session gains in Reliance Industries, HDFC and HDFC Bank were offset by losses in ITC, Sun Pharma and Axis Bank. The mid- and small-cap shares outperformed their larger peers as both the BSE mid and small-cap indices rose over 0.7 per cent each.
This Article is From Feb 07, 2019
Sensex Snaps 5-Day Winning Streak Dragged By Reliance Industries
The Sensex fell 4 points or 0.01 per cent to settle at 36,971 and the NSE Nifty 50 Index rose 7 points or 0.06 per cent to close at 11,069. Zee Entertainment was the top Nifty gainer, the stock rose 4.56 per cent to Rs 405.70. Sun Pharma, Eicher Motors, Grasim Industries, Bharti Infratel and Tata Motors were also among the gainers. On the other hand, JSW Steel, Reliance Industries, Larsen & Toubro, Power Grid and HDFC were among the losers.
Thirteen of 19 sector gauges compiled by BSE ended higher led by the S&P BSE Telecom Index's 2.5 per cent gain. On the flipside, S&P BSE Utilities Index was top loser down 0.9 per cent.
Shares of MRF were trading flat around Rs 60,000 and also fell below Rs Rs 60,000 mark briefly after its profit fell 18 per cent to Rs 279 crore in October-December quarter versus Rs 340 crore during the same period last year.
Its revenue from operations rose 6.2 per cent to Rs 4,033.76 crore from Rs 3,799 crore in December quarter of last year.
Gold fell to a more than one-week low on Thursday, pressured by a stronger dollar, but worries over slowing global economic growth and the spectre of another U.S. government shutdown kept the safe-haven metal above the key $1,300 level. Spot gold fell 0.1 percent to $1,304.25 per ounce by 0730 GMT, after touching its lowest since Jan. 29 at $1,302.11. Prices fell 0.7 percent in the previous session in their biggest one-day drop since Jan. 18.
After slipping into the red for a brief period Sensex and Nifty rebounded and moved higher led by gains in Sun Pharma, Axis Bank, Infosys and Bajaj Auto. The Sensex rose 0.22 per cent or 80 points to 37,055 and Nifty 50 Index advanced 0.17 per cent or 19 points to 11,081.
Shares of Reliance Anil Dhirubhai Ambani group companies extended decline with Reliance Infrastructure declining 27 per cent, Reliance Power falling 24 per cent, Reliance Capital plunging 22 per cent and Reliance Communication dropping 6 per cent. Shares of these companies have been facing selling pressure ever since Reliance Communications file for bankruptcy at NCLT in Mumbai.
Indain equity benchmarks erased gains dragged by weakness in Reliance Industries, HDFC, Larsen & Toubro and IndusInd Bank. The Sensex fell 23 points to 36,952 and Nifty50 Index 14 points to 11,048.
Mid- and small-cap shares were outperforming their larger peers as the S&P BSE MidCap Index rose 0.7 per cent and the S&P BSE SmallCap Index climbed 0.68 per cent. IDFC First Bank was the top gainer from the mid-cap space, up 4.68 per cent at Rs 43.60. Muthoot Finance, Gruh Finance, Bajaj Holdings and Wockhardt Pharma also rose 3.8-4.5 per cent each.
Sensex and Nifty came off intraday high levels despite the Reserve Bank of India cutting repo rate by 0.25 per cent and change in policy stance to "Neutral". As of 12:19 pm the S&P BSE Sensex rose 0.25 per cent or 94 points to 37,069 and Nifty 50 index advanced 0.16 per cent or 17 points to 11,080.
GDP growth projected at 7.5 per cent in third quarter of 2019-20, says RBI Governor Shaktikanta Das.
Monetary Policy Committee decision to change policy stance unanimous, says RBI Governor Shaktikanta Das.
Rate sensitive auto, banking and real estate shares held on to gains after the Reserve Bank of India unexpectedly cut repo rate by 25 basis points to 6.25 per cent and changed its stance from "Calibrated Tightening" to "Neutral". Nifty Bank index rose 0.2 per cent, Nifty Realty index climbed 0.2 per cent and Nifty Auto index rose 1.7 per cent on hopes that the loan EMIs will come down as cost of credit will come down.
Sensex and Nifty extended gains after the Monetary Policy Committee cut repo rate by 25 basis points or 0.25 per cent to 6.25 per cent and changed policy stance to "Neutral'' from ''Calibrated Tightening'' under Governor Shaktikanta Das's first policy review.
Sensex held on ot its over 100-point lead while the Nifty 50 index was firm above 11,050 ahead of Reserve Bank of India's monetary policy statement. Rate sensitive banking, real estate and auto shares were witnessing buying interest as the respective indices rose between 0.4-1.5 per cent.
Vodafone Idea rose as much as 9.89 per cent to Rs. 32.75 after it reported second quarterly loss since Vodafone Plc merged its Indian operations with Idea Cellular in August last year, though the figure was smaller than expected.
The loss after tax was Rs. 5,005 crore in the quarter ended December 31, the company said in a statement, narrower than analysts' forecast for a loss of Rs. 5,256 crore indicated by Refinitiv Eikon data.
Sun Pharmaceutical Industries Ltd was among the top gainers on the NSE index, rising as much as 3 per cent after its U.S. unit Taro Pharmaceutical Industries posted strong December-quarter results.
Nifty Bank 27,600 call option contract was among the most active Nifty Bank option contracts on the National Stock Exchange. Premium on the contract rose 6.7 per cent to Rs 43.15 ahead of its weekly expiry. Over 3.95 lakh shares were added to the open interest which stood at over 11.89 lakh shares, according to information on NSE's website.
All sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty Auto Index's 1.6 percent gain. Nifty Media, Nifty Pharma and Nifty PSU Bank indices were also trading over 1 percent higher.
Sun Pharma, Bajaj Auto, Yes Bank, Tata Motors, Hero MotoCorp and HCL Tech were the top gainers on the Sensex, trading between 1.30 per cent and 4.57 per cent higher.
The Nifty Bank and Nifty Financial Services - the NSE's sectoral indices for financial stocks - rose about 0.3 per cent each. Prominent gainers included Punjab National Bank, Yes Bank, Bajaj Holdings & Investment, ICICI Prudential Life Insurance and Max Financial Services, trading between 1 per cent and 6 per cent higher.
Today's statement from the central bank will mark the first under Governor Shaktikanta Das, who took office nearly a week after the last policy meet on December 5 by his predecessor Urjit Patel.
The December data also indicates that the rate of increase in consumer prices has remained within the RBI's medium-term goal of 4 per cent for five months in a row. (Also read: What economists expect from today's RBI policy statement)
Consumer inflation - which the central bank monitors primarily to formulate its policy - stood at 2.19% in December. That marked the slowest pace of inflation based on CPI or Consumer Price Index recorded since June 2017.
The MPC is expected to be cautious on the inflationary impact of the budget even as fiscal slippage seems manageable, said Kotak in a note on February 5. "The MPC might raise concern on the quality of expenditure, especially when the borrowings (government and public enterprises) have increased significantly. However, the MPC decision will hinge solely on the expected benign inflation trajectory," Kotak noted.
Market breadth favoured the gains, with 959 stocks on the NSE trading higher agaisnt 604 laggards. On the BSE, 994 scrips advanced versus 585 that declined.
The Nifty Auto - comprising automobile stocks - rose as much as 1.4 per cent. Other prominent gainers from the sector included TVS Motor, Mahindra & Mahindra and Tata Motors DVR.
Top advancers on the 50-scrip index at the time were Bajaj Auto, Sun Pharma, Tata Motors, Yes Bank and Eicher Motors, trading between 1.5 per cent and 2.5 per cent higher.
The Sensex jumped as much as 170 to touch 37,145 in early trade while the Nifty peeked above the 11,100 mark. At 9:43 am, the Sensex traded 127 - or about 0.4 per cent - higher at 37,103 and the Nifty was at 11,092, up 30 points from the previous close.
However, the brokerage also acknowledged the possibility of the MPC deciding to tread cautiously and pushing a rate cut to the April policy review. "The RBI's commentary on core inflation and interim budget should be closely watched," it noted.
Brokerage Edelweiss said in a note on Wednesday that it expects a softer stance from the MPC "with a good chance of a rate cut as well with soft headline inflation, slowing growth momentum and peaking of global rates".
Domestic stock markets have extended their rally to five days in a row. On Wednesday, the Sensex surged 358 points to close at 36,975 and the Nifty logged its highest closing level in over four months. (Read more: Markets extend rally to fifth straight day)