Markets Live: Sensex ends lower by 85 points; auto, bank stocks fall on repo rate hike

Closing bell

Benchmark indices shed their early gains and ended lower on Wednesday, on heavy selling in bank and auto stocks, as the RBI's Monetary Policy Committee (MPC) raised the repo rate by 25 basis points to 6.50 per cent.

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It is the first time since October 2013 that the rate has been increased at consecutive policy meetings. The reverse repo rate was also raised by 25 basis points to 6.25 per cent.

The benchmark BSE index snapped an eight-session winning streak to end lower by 84.96 points or 0.23 per cent at 37,521.62. The broader NSE index closed down 10.3 points or 0.09 per cent at 11,346.2.

 

The Sensex hit a fresh record high of 37,711.87 and the Nifty hit an all-time high of 11,390.55 earlier in the day

Bond markets took comfort from the less-hawkish statement with bond yields easing sharply from the day's high, while the rupee trimmed gains.

The 10-year benchmark bond yield dropped to 7.74 per cent, after briefly rising to 7.84 per cent soon after the RBI decision. In the previous session, it had ended at 7.77 percent.

The Indian rupee was at 68.51 to the dollar, firmer than Tuesday's close of 68.55, but off the day's high of 68.48.

Shares of Housing Development Finance Corp were the biggest drag on the NSE index, closing down 1.18 per cent, while Maruti Suzuki Ltd was the top loser among the auto companies, ending 2.03 per cent lower.

 

Retail inflation dips

 

The All-India Consumer Price Index for Industrial Workers for June 2018 came in at 3.93 per cent. This was marginally lower than the 3.96 per cent print for May 2018. Click here to read more

ICICI Bank responds to SEC probe

 

ICICI Bank has highlighted the risks to its business from enquiries into its MD and CEO Chanda Kochhar’s loan dealings as well as a second enquiry into NPA loan accounts in its annual Form 20 F filing to the Securities and Exchange Commission. Click here to read more

Auto, bank and financial services stocks took a severe beating as the Reserve Bank of India, in its third bi-monthly monetary policy statement, hiked the repo rate by 25 basis points to 6.5 per cent, as it remained concerned over rising inflation.

 

 

Benchmark indices wiped off their losses and were trading flat as the 25 bps repo rate hike by the RBI was already factored in by the markets.  The Sensex was trading up 5.25 points or 0.01 per cent at 37,611.83 and the Nifty up 10.3 points or 0.09 per cent at 11,366.80.

Top five Sensex gainers were Coal India, TCS, ITC, Sun Pharma and PowerGrid, while the major losers were Vedanta, Maruti, Bharti Airtel, ICICI Bank and Tata Steel.

 

Healthcare, oil & gas, PSU and FMCG indices remained investors' favourite, while auto, metal, banking and power succumbed to seling pressure.

 

 

Nifty auto stocks

 

Nifty bank stocks

 

BSE sectoral indices

 

NSE sectoral indices

 

The Sensex shed over 150 points on heavy selling in metal, auto, banking and power stocks after the Reserve Bank of India, in its third bi-monthly monetary policy statement, hiked the repo rate by 25 basis points to 6.5 per cent.

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Domestic sentiment was also hit as the country's manufacturing PMI dropped to 52.3 in July from 53.1 in June.

The BSE index was down 53.18 points or 0.14 per cent at 37,553.40 and the NSE index down 10.6 points or 0.09 per cent at 11,345.90.

RBI hikes repo rate by 0.25%

 

On the basis of an assessment of the current and evolving macroeconomic situation, the Reserve Bank of India's Monetary Policy Committee has decided to increase the policy repo rate under the liquidity adjustment facility by 25 basis points to 6.5 per cent.

Consequently, the reverse repo rate under the LAF stands adjusted to 6.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.75 per cent.

The decision of the MPC is consistent with the neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.

Gold, silver futures

 

Gold prices drifted lower by 0.16 per cent to Rs 29,830 per 10 grams at the futures trade as participants trimmed their positions owing to a weak global trend. Silver prices moved down by 0.28 per cent to Rs 38,215 per kg. Read more

7 Indian firms on Fortune 500 list

 

Seven Indian companies have made it to the latest Fortune 500 list of the world’s biggest corporations in terms of revenue, with IOC continuing to be the highest ranked Indian firm and Reliance Industries jumping 53 places. Click here to read more

The Sensex was trading lower by 96.06 points or 0.24 per cent at 37,517.88 and the Nifty down 19.5 points or 0.17 per cent at 11,337 as traders remained wary ahead of RBI monetary policy announcement.

The BSE index touched intraday high of 37,711.87 and the NSE index scaled new peak of 11,389.90 on foreign fund inflows.

Domestic sentiment was also hit as the country's manufacturing PMI dropped to 52.3 in July from 53.1 in June. However, it was the 12th consecutive month of expansion.

Top five Sensex gainers were Coal India, TCS, Sun Pharma, PowerGrid and ONGC, while the major losers were Vedanta, Axis Bank, Maruti, Tata Steel and YES Bank.

 

Among BSE sectoral indices, metal, banking, auto and power fell the most, while healthcare, oil & gas, PSU and IT found investors' support.

 

 

“Markets have already factored in the policy meet, probably since last quarter,” said Vinod Nair, head of research at Geojit Financial Services.

“Concern is that the trend of the market has been very narrow, driven only by blue chip stocks even though Q1 has been very positive,” Nair said.

Nifty 50 August Futures (11,377)

 

The market breadth of the Nifty index is biased towards declines. India VIX gained 1.5 per cent to 12.66 levels. Traders with a near term view can go short if the contract declines below the key immediate support level of 11,350 levels with a fixed stop-loss. Click here to read more

OMCs gain on lower crude prices

 

Shares of oil marketing companies such as Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd rose as much as 2.4-3.2 per cent on lower crude oil prices. Read more

Adding value: Hindalco - Buy

 

With uncertainties and the volatility in the aluminium market this year, the stock of aluminium and copper manufacturing company, Hindalco Industries, has corrected by nearly 20 per cent year-to-date. Performance of Hindalco was robust in FY 2018, driven by a favourable product mix, better realisations and supportive macros. Click here to read more

AU Small Finance Bank

 

Since its listing last year, the stock has gained a whopping 77 per cent. Trading at about six times its one-year forward book value, the stock is not cheap. Nonetheless, given the strong uptick in loans and healthy financial metrics, the premium on valuation is likely to stay. Click here to read more

Core sector growth up 6.7%

 

India’s infrastructure sector growth gathered pace in June posting an increase of 6.7 per cent year-on-year riding on increased production of refinery products, coal and cement.  Other core infrastructure sectors with higher production include steel, electricity and fertilisers. Click here to read more

Top Nifty gainers, losers

 

Sensex movers, shakers

 

Benchmark indices were trading flat after hitting new highs earlier in the day as the Nikkei India Manufacturing Purchasing Managers’ Index fell to 52.3 in July from 53.1 in June.

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At 12.35 pm local time, the Sensex was trading down 28.97 points or 0.08 per cent at 37,577.61 and the Nifty up 3.3 points or 0.03 per cent at 11,359.80.

Traders also adopted a wait-and-watch attitude ahead of RBI monetary policy announcement.  Easing inflation and the economic growth momentum suggest that the Reserve Bank of India will keep the repo rate unchanged at 6.25 per cent.

Global markets were keeping an eye on Fed outcome later today where the US Federal Reserve’s Federal Open Market Committee is expected to keep interest rates steady.

Bajaj Auto jumps 2.5%

 

Shares of Bajaj Auto jumped as much as 2.5 per cent on Wednesday as the company has reported 30 per cent increase in sales at 4,00,343 units in July against 3,07,727 units in the year-ago month. Read more

Spot gold falls to $1,222

 

Gold prices came under pressure as news that the Trump administration has plans to propose higher tariffs on Chinese goods stoked demand for the US dollar. Spot gold was down 0.1 per cent at $1,221.78 an ounce at 0353 GMT, after gaining slightly in the previous session.  Read more

Maruti shares fall 2%

 

Shares of the country's largest passenger car manufacturer, Maruti Suzuki India, fell as much as 2.1 per cent to Rs 9,308.55 against the previous close of Rs 9,506.40. Read more

Tata Motors hits 2-week low

 

Shares of Tata Motors today hit a 2-week low, as the company has posted biggest quarterly loss in nearly nine years. The stock plunged as much as 5.34 per cent to Rs 250, lowest since July 18. Read more

IndusInd Bank hits record high

 

Shares of Indusind Bank Ltd gained as much as 1.3 per cent to a record of Rs 2,021. At about 11.30 am, the stock was trading at Rs 2003.20, off its morning highs. Read more

July Manufacturing PMI

 

The country’s manufacturing sector activity moderated in July amid a softer increase in output, new orders and employment. The Nikkei India Manufacturing Purchasing Managers Index stood at 52.3 in July, down from 53.1 in June. Click here to read more

Bank Nifty

 

Among the call option chain, the In-The-money Bank Nifty Call 27,700 option was the actively traded contract on Tuesday. The option price closed at Rs 477.75, down by Rs 28.85 or 5.70 per cent. However, open interest in the contract jumped by 40.65 per cent. Read more

The Sensex fell from its intraday high of 37,711.87 and the Nifty too fell from record high of 11,389.90 as the country’s manufacturing sector activity moderated in July amid softer increase in output, new orders and employment.

 

The Nikkei India Manufacturing Purchasing Managers Index (PMI) stood at 52.3 in July, down from 53.1 in June. This is the 12th consecutive month that the manufacturing PMI remained above the 50-point mark.

The Sensex was trading down 46.68 points or 0.12 per cent at 37,557.25 and the Nifty up 2.5 points or 0.02 per cent at 11,359.

Top five Sensex gainers were TCS, Vedanta, Sun Pharma, Bajaj Auto and ONGC, while the major losers were Tata Motors, Maruti, Axis Bank, ICICI Bank and Infosys.

 

Among BSE sectoral indices, oil & gas, PSU, healthcare and TECk remained investors' favourite, while realty, auto, power and bank succumbed to selling pressure.

 

 

Did Ravi Narain meet key player of co-lo scam?

 

 

Ravi Narain, the former MD & CEO of NSE, feigned ignorance when SEBI asked him about his meeting with the representative of Delhi-based broker OPG Securities, which has now been established as a key player in the co-location scam who was given preferential treatment by the exchange. Click here to read more

Rupee weakens to 68.59

 

The rupee depreciated by 5 paise to 68.59 against the US dollar ahead of the Reserve Bank’s monetary policy announcement today. Read more

China stocks fall on tariff woes

 

China's main Shanghai stock market and Hong Kong's Hang Seng Index fell, as plans by the US to propose higher tariffs on $200 billion worth of Chinese imports brought trade war fears back into focus, and as new manufacturing data underscored a weak outlook for growth. Read more

Nikkei gains 0.5%

 

Japan's Nikkei share average rose on Wednesday, supported by a stronger Wall Street and a weaker yen, with blue chips such as Sony and Sharp gaining on strong earnings and lifting overall sentiment. The Nikkei was up 0.5 per cent at 22,672.63. Read more

The Sensex was trading higher by 81.21 points or 0.22 per cent at 37,687.79 and the Nifty up 30.2 points or 0.27 per cent at 11,386.70, led by oil & gas, PSU, healthcare and FMCG stocks amid firm global cues. However, power, realty and auto stocks succumbed to selling pressure.

 

 

Top five Sensex gainers were Bharti Airtel, TCS, ONGC, Reliance and IndusInd Bank, while the major losers were Tata Motors, Axis Bank, Infosys, Wipro and HDFC.

 

Breaking all previous records, the BSE Sensex advanced by over 105 points to hit a new peak of 37,711.87, while the Nifty scaled a fresh high of 11,389.90 ahead of the Reserve Bank’s bi-monthly policy meet outcome due later in the day.

 

As per provisional data, foreign portfolio investors had bought shares worth Rs 572.21 crore, while domestic institutional investors sold shares worth Rs 290.87 crore yesterday.

Anup Mahehwari joins IIFL Asset Management

 

IIFL Asset Management has appointed Anup Maheshwari as Joint Chief Executive Officer and Chief Investment Officer with effect from mid-August. Read more

How ICICI Bank, arms compare with peer HDFC group?

 

With most of the key subsidiaries listed now, comparison between ICICI Bank and HDFC group shares deserves attention or seems to be well-timed.  HDFC and HDFC Bank have been definitely and consistently superior than ICICI Bank in terms of important financial metrics. Click here to read more

Broker's call

Elara Capital

Heritage Foods (Buy)

CMP: ₹610.75

Target: ₹825

Click here to read more

Will auto firms sustain healthy sales figures?

 

Beginning today, auto majors would be disclosing their sales figures for July. While June saw healthy automobile sales figures, the question on the minds of marketmen will be whether the momentum will continue. Read more

RBI policy review

 

Analysts are expecting the Reserve Bank of India to increase the repo rate by 25 bps at the monetary policy meet due to high inflation and rupee concerns. Apart from the indices, shares from rate sensitive sectors such as banks, automobiles and FMCG will be in focus. Read more

 

 

BEML and Heavy Engineering Corporation have signed an MoU to meet the growing requirements of the mining industry. BEML shares were trading higher by 3.18 per cent at Rs 926 on the BSE. Read more

 

RPP Infra Projects has bagged orders from Maharashtra Public Works Department for ₹217.10 crore. The company shares were trading up 1.75 per cent at Rs 226.35 on the BSE. Read more

The 30-share BSE index Sensex opened marginally higher by 34.01 points at 37,640.59 against Tuesday's close of 37,606.58 and the 50-share NSE index up 18.3 points at 11,374.80 against 11,356.50.

Traders were in a wait-and-watch mode ahead of RBI's monetary policy announcement later today. Easing inflation and the economic growth momentum suggest that the Reserve Bank of India will keep the repo rate unchanged at 6.25 per cent.

The US Federal Reserve’s Federal Open Market Committee is expected to keep interest rates steady at the end of a two-day meeting which began yesterday.

Day Trading Guide

Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:

₹2181 • HDFC Bank

 

₹1365 • Infosys

 

₹297 • ITC

 

₹165 • ONGC

 

₹1185 • Reliance Ind.

 

₹293 • SBI

 

₹1941 • TCS

 

11371 • Nifty 50 Futures

 

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

Click here to view the full guide

Today's stock pick

Ganesh Housing Corporation (₹103): Buy

 

Investors with a short-term perspective can buy the stock of Ganesh Housing Corporation at current levels. On Tuesday, the stock gained 7.3 per cent accompanied by good volume, breaching a key immediate resistance at ₹100. Click here to read more