Markets Live: Sensex spurts 276 points as RBI retains GDP growth forecast at 7.4%

Closing bell

The Sensex ended above the key 35,000-mark as the Reserve Bank of India has retained the GDP growth forecast for 2018-19 at 7.4 per cent on hopes of further boost to investments and higher consumption.

However, the central bank hiked the repo rate by 25 basis points to 6.25 per cent for the first time in four-and-half-years against the backdrop of rising inflation as well as improving growth numbers in the recent past.

The Sensex, which opened strong at 34,932.49, fell after RBI’s policy announcement but soon recovered to touch the day’s high of 35,230.54.

 

It finally ended at 35,178.88, up 275.67 points, or 0.79 per cent. The gauge had lost 419.17 points in the previous three sessions.

Similarly, the Nifty, after shuttling between 10,698.35 and 10,587.50, ended the session up by 91.50 points, or 0.86 per cent, at 10,684.65.

Top five Sensex gainers were Bharti Airtel, Tata Motors, Sun Pharma, State Bank of India and Coal India, while the major losers were ONGC, Asian Paints, HDFC Bank, ICICI Bank and Axis Bank.

All BSE sectoral indices ended in the positive zone.

 

 

As per provisional data, domestic institutional investors had bought shares worth a net Rs 474.33 crore, while foreign portfolio investors sold shares worth Rs 157.51 crore yesterday.

Bullion prices

 

Gold prices rebounded by Rs 260 to Rs 31,860 per 10 grams at the bullion market today on firm cues from global markets and fresh buying by local jewellers. More on this

NRIs dilemma

 

Mr and Mrs Das were eagerly eyeing the Skype screen on their desktop. Sharp at 8:30 pm on Sunday night, their son called from the US. After the pleasantries about health and weather, the NRI son jumped to more pressing matters. Click here to read the full text

Financial game plan to start own business

 

It is not an easy decision to give up a job that offers steady income every month to pursue something that is close to one’s heart. It requires a balance between what one wants and what one needs. Click here to read more

Benchmark indices were trading higher by nearly one per cent on heavy buying in consumer durables, realty, metal and capital goods stocks despite weak global cues.

The Sensex was trading higher by 326.52 points or 0.94 per cent at 35,229.73 and the Nifty up 98.6 points or 0.93 per cent at 10,691.75.

Top five Sensex gainers were Bharti Airtel, Tata Motors, Sun Pharma, Coal India and State Bank of India, while the major losers were Asian Paints, ONGC, Axis Bank, ICICI Bank and Dr Reddy's.

Consumer durables, realty, metal and capital goods stocks witnessed heavy buying.

 

 

Bank stocks fall

 

Bank stocks fell soon after the RBI’s Monetary Policy Committee decided to hike its key policy rate, the repo rate, by 25 basis points to 6.25 per cent, in its second bi-monthly meeting for the fiscal. Read more

 

RBI hikes repo rate by 25 bps

 

On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee has decided to increase the policy repo rate under the liquidity adjustment facility by 25 basis points to 6.25 per cent.

Consequently, the reverse repo rate under the LAF stands adjusted to 6.0 per cent, and the marginal standing facility rate and the Bank Rate to 6.50 per cent.

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

Sugar stocks gain on bailout package

 

Shares of sugar producers climbed in the afternoon trade as the Union Cabinet has approved a Rs 8,500-crore bailout package for the sugar industry. Read more

 

Electrosteel allots shares to lenders

 

Electrosteel Steels, which is undergoing insolvency resolution process, has allotted equity shares to its lenders pursuant to conversion of loans worth about Rs 7,400 crore. Read more

Accept financial anxiety in moderate doses

 

We would all like to avoid financial anxiety if we could. In this article, we discuss why it is not possible to completely avoid such distress relating to our personal finance. That said, we do discuss how we can moderate it. Click here to read more

Bolster your health insurance with top-ups

 

You may have taken a health cover early on in your career. But is the insurance, which you took a while ago, enough to cover healthcare inflation?  Click here to read more

Rs 8,500 crore package for sugar industry

 

The Cabinet today approved a Rs 8,500 crore bailout package for the sugar industry which includes Rs 4,500 crore soft loan for building ethanol production capacity and creating a 3 million tonne stockpile to soak up excess supply. Click here to read more

Your Fund Portfolio

 

Click here to read the full text

 

Aditya Birla bond fund

 

Aditya Birla Sun Life Corporate Bond Fund has delivered healthy returns across rate cycles. The fund has mostly invested in high-rated bonds in the past. Hence, the latest re-jig in category post SEBI’s directive on categorisation and rationalisation, will not lead to any substantial changes in the fund’s portfolio. Click here to read more

SBI Equity Hybrid Fund

 

Investors wanting to play it safe in the current volatile markets can choose SBI Equity Hybrid Fund. It will invest at least 65 per cent in equities, and the remaining in fixed-income securities. The fund has a good track record across bull, bear and volatile markets. Click here to read more

 

Gold edges up as dollar eases

 

Spot gold was up 0.2 per cent at $1,297.64 per ounce by 0106 GMT. US gold futures for August delivery were steady at $1,301.80 per ounce. More on this

Nifty 50 June Futures (10,650)

 

The Nifty 50 futures contract is trading strong ahead of the Reserve Bank of India's monetary policy decision which is due today. Short-term traders with high risk appetite can go long. Click here to read more

The Sensex was trading higher by 190.47 points or 0.55 per cent at 35,093.68 and the Nifty up 64.15 points or 0.61 per cent at 10,657.30 on value-buying by investors ahead of RBI monetary policy announcement later in the day.

The Reserve Bank of India is likely to keep its policy repo rate on hold, awaiting more clarity on the out-turn of monsoon, the impact of revisions in the minimum support prices for kharif crops, volatility in oil prices on inflation, and the possibility of fiscal slippage.

Click here to read more

“There is expectation of some relief move from the RBI meeting, while the early onset of the monsoon is also giving some kind of support,” said Anand James, chief market strategist at Geojit Financial Services.

“Three days of selling have found some fresh buyers, because of which there is value buying happening at lower levels...”

Top five Sensex gainers were Tata Motors, Bharti Airtel, Bajaj Auto, State Bank of India and Sun Pharma, while the major losers were Asian Paints, HDFC Bank, IndusInd Bank, HDFC and ICICI Bank.

The Nifty PSU bank index jumped as much as 1.7 per cent, after posting three straight sessions of losses. State Bank of India, the country's largest lender, rose 1.4 per cent.

 

Brent crude rises to $76/barrel

 

Brent crude rose 27 cents to $75.65 a barrel by 0412 GMT after dropping to its lowest since May 8 on Tuesday. US West Texas Intermediate crude futures were up 29 cents at $65.81 a barrel, having touched a near two-month low on Tuesday. Click here to read more

 

Forex market

 

The euro held firm as investors started to focus on the European Central Bank's policy meeting next week, while concerns that the United States could pull out of its trade agreement with Canada and Mexico hit their currencies. Click here to read more

Sun Pharma climbs 2.5%

 

Sun Pharmaceutical Industries Ltd climbed as much as 2.5 per cent to Rs 485.35, and was among the top percentage gainers on the NSE index. More on this

Benchmark indices were trading higher by over 0.4 per cent as participants raised their ahead of RBI monetary policy announcement later in the day.

The Reserve Bank of India is likely to keep its policy repo rate on hold, awaiting more clarity on the out-turn of monsoon, the impact of revisions in the minimum support prices for kharif crops, volatility in oil prices on inflation, and the possibility of fiscal slippage.

Click here to read more

The Sensex was trading higher by 152.46 points or 0.44 per cent at 35,055.67 and the Nifty up 45.35 points or 0.43 per cent at 10,638.50.

All BSE sectoral indices were trading in the positive zone.

 

Top five Sensex gainers were Bharti Airtel, Bajaj Auto, Sun Pharma, Tata Motors and Coal India, while the major losers were Asian Paints, PowerGrid, HDFC Bank, HDFC and HUL.

 

IDFC Bank jumps over 5%

 

The stock jumped as much as 5.1 per cent to Rs 40.30, in its biggest intraday percentage gain since January 11 as RBI has cleared the merger with Capital First. Read more

McLeod Russel India has entered into an MoU with MK Shah Exports for disposal of Beesakopie Tea Estate, Raidang Tea Estate, Daimukhia Tea Estate, Samdang Tea Estate, Baghjan Tea Estate, Bordubi Tea Estate, Koomsong Tea Estate and Phillobari Tea Estate, subject to necessary approvals and due diligence by the proposed buyer. The company shares were trading up by 1.9 per cent at Rs 136.95 on the BSE.

 

What to watch

Videocon, Lancer, Castex are among over a dozen companies that will declare their Q4 and full year results for the period ended March 2018 today. Read more

Unichem Laboratories’ formulations manufacturing facility at Ghaziabad has received an Establishment Inspection Report from the US Food and Drug Administration, indicating closure of inspection. The company shares were trading up by 0.13 per cent at Rs 233.40 on the BSE. In terms of equity volume, 5,655 shares were traded on the BSE.

 

The board of directors of  Hindoostan Mills  has decided to discontinue the operations of the composite division.

 

The company shares were down 0.5 per cent at Rs 249.95 on the BSE. Read more

The board of Zen Technologies has approved a proposal to invest up to $2 million in Zen Technologies US Inc, a wholly-owned subsidiary. The company shares were trading up by 2.11 per cent at Rs 87.10 on the BSE.

 

In terms of equity volume, 0.12 lakh shares exchanged hands in the morning trade. Read more

Benchmark indices were trading higher by nearly 0.5 per cent on heavy buying in realty, power, capital goods and consumer durables stocks ahead of RBI monetary policy announcement later in the day.

 

 

The Sensex was up 164.67 points or 0.47 per cent at 35,067.88 and the Nifty up 44.35 points or 0.42 per cent at 10,637.50.

Top five Sensex gainers were Bajaj Auto, Bharti Airtel, Sun Pharma, Coal India and Wipro, while the major losers were Asian Paints, IndusInd Bank, HDFC Bank, HDFC and YES Bank.

As per provisional data, domestic institutional investors had bought shares worth Rs 474.33 crore, while foreign portfolio investors sold shares worth Rs 157.51 crore yesterday.

SEBI issues framework for InvITs pref issue

 

The Securities and Exchange Board of India has put in place a detailed framework for listed Infrastructure Investment Trusts to make preferential issue of units to institutional investors. The units in a preferential issue should be offered and allotted to a minimum of two investors and maximum of 1,000 in a financial year. Click here to read more

Rupee rises to 67.04

 

The rupee strengthened by 11 paise to 67.04 ahead of RBI monetary policy announcement amid fresh dollar selling by banks and exporters. More on this

Asian markets

 

Asian stocks edged up after tech sector strength lifted Wall Street shares, while concerns about Italy's debt prompted investors to move into lower-risk government debt elsewhere, pushing US Treasury yields down from recent highs. Click here to read more

US stocks

 

The Nasdaq closed at a record high for the second day in a row with help from the technology and consumer discretionary sectors, while the S&P 500 edged higher as investors eyed solid US economic data. Read more

SC to hear NSE's plea on July 19

 

The Supreme Court will start its final hearing on July 19 in the matter involving a fine imposed on the NSE by the Competition Commission of India for monopolistic practices.  Click here to read more

 

Day Trading Guide

₹2060 • HDFC Bank

 

₹1221 • Infosys

 

₹267 • ITC

 

₹171 • ONGC

 

Click here to view the full guide

 

Were ASM stocks leaked to operators?

 

Was a list of stocks that were to be included in Additional Surveillance Measure, the new category formed by SEBI to check market manipulation, leaked to operators ahead of its official release? A section of stock market brokers and top traders suspect that operators in Mumbai and Gujarat may have had access to the list on May 31 before it was officially put up on stock exchange websites. Click here to read more

Opening bell

The BSE index was up 33.87 points or 0.1 per cent at 34,937.08 and the NSE index up 1.1 points or 0.01 per cent at 10,594.25.

Pre-open trade

The 30-share BSE index Sensex was up 29.28 points or 0.08 per cent at 34,932.49 and the 50-share NSE index up 10.3 points or 0.1 per cent at 10,603.45.

Today's stock pick

Adani Transmission (₹131.2): Sell

 

Investors with a short-term perspective can consider selling the stock Adani Transmission at current levels. The stock has been in a medium-term downtrend since recording a new high at ₹252 in late January. Click here to read more