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Stock Market Highlights: Nifty50 hits record closing high of 17,895, Sensex jumps 381 points after RBI announcements

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Stock Market Highlights: Dalal Street extended gains to a second straight day with the Nifty50 index hitting a record closing high after the RBI kept the key rates unchanged and remained 'accommodative' following a scheduled review. The market cheered the announcements with the easing of concerns about an earlier-than-expected tightening of monetary policy. Gains in IT, oil & gas and PSU banking shares lifted the market. Broader markets also rose, with the smallcap index outperforming the headline gauges by rising 1.2 percent. TCS shares ended one percent higher and remained in focus during the session, ahead of the Q2 earnings announcement by the IT major. 

Stock Market Highlights: Nifty50 hits record closing high of 17,895, Sensex jumps 381 points after RBI announcements
  • Thank you, readers! That's all from CNBC-TV18.com's live market coverage on October 8. Stay tuned for other updates on our website: CNBCTV18.com.

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  • JUST IN | Tata group wins final bid for Air India

  • Market At Close | Godrej Properties, Sobha, Phenix Mills fall up to 4%

  • Market At Close | Reliance leads market higher, contributes 70% to Nifty gain

    The Nifty index reached a record closing high of 17,895.2. Here are some other highlights of the Oct 8 session: 

    Reliance leads market higher, contributes 70 percent to Nifty gain; RIL becomes 1st Indian co to hit Rs 18 lakh crore market cap

    --Financial stocks drag market with Nifty Bank closing near flatline

    --Nifty Bank gains 22 points to 37,775, midcap index 133 ooints to 31,438

    --IT stocks rise ahead of TCS earnings; Nifty IT top gaining index, up 2 percent

    --Tata Motors rises on reports of TPG looking to invest in EV business

    --SBI Life slips despite reporting healthy growth in September

    --Metal stocks fail to hold initial gains; Tata Steel, JSW off highs

    --IEX rises 10 percent on Power Ministry framework for implementation of MBED 

    --Dixon Tech, IndiaMART, MCX, BoB, MRF, Bandhan Bank top midcap gainers

    --Realty stocks see profit booking; Godrej Properties slips 4 percent, DLF 1 percent

    --Piramal Enterprises falls after announcement of pharma business demerger

    --Market breath favours the bulls; advance-decline ratio at 5:4

  • Market At Close | RIL, Wipro, Infosys, Tata Motors top gainers; Coal India, SBI Life, NTPC, Maruti top laggards

    Stock Market Highlights: Nifty50 hits record closing high of 17,895, Sensex jumps 381 points after RBI announcements
  • Closing Bell | Sensex rises 381 points to 60,059, Nifty at 17,895 

    The Sensex index ended 381.2 points or 0.6 percent higher at 60,059.1, and the broader Nifty50 benchmark climbed 104.9 points to settle at 17,895.2. Gains in IT, oil & gas and PSU banking shares pushed the market higher, but losses in pharmaceutical and FMCG counters limited the upside. 

    During the session, both indices came within reach of their all-time highs registered late last month. (Read more on the closing bell here)

  • We are looking at a steeper curve at this point in time, says Narayan of SPJIMR

    Ananth Narayan Professor at SPJIMR said, “This heralds a steeper curve as far as liquidity, as far as overnight rates are concerned because RBI is still going slower than what the market expects”.

    “Some of us were expecting the reverse repo rate to go up today, that has not happened and even on liquidity while the quantum of excess liquidity going into reverse repo is coming down, it still will be a surplus of Rs 2-3 lakh even in December. So the overnight rates will remain on the softer side. So we are looking at a steeper curve at this point in time” Narayan added.

    However, he thinks the RBI is doing the right thing. He believes it is the longer end of the curve which determines 5 year, 7 year savings in fixed income and if that starts to go up hopefully less money will go into riskier assets like Bitcoin and equity.

    “Short end is a problem for inflation only when you see credit growth going sharply up and that is not the case even now, we are still seeing 6 percent credit growth. So waiting for credit growth to happen before you squeeze the short end up in terms of rates is the right approach to use and this is what is happening globally as well, it is first QE reduction followed by interest rate normalisation,” said Narayan.

  • Market Watch | Prakash Diwan, Market Expert on:

    Bank of Baroda

    I would stick with some of the larger names in the private sector and only State Bank of India on the PSU side.

    On IEX

    IEX has been waiting in the wings for this broad-basing of trading platforms but this is something which is already priced in. this is what IEX fetched that huge platform premium for and now this will have to play out. There is a lot of competition that could emerge, the government would also want that. It may not to depend only on one-two platforms to enable this broad-basing. So you have MCS that has already started looking at it. You have PTC that could very actively get into tolling to support this kind of a thing because they have an advantage on the production side, they could get this outsource in the tolling form and the trading part. So would believe while IEX has rewarded shareholders, it could start getting slightly difficult from hereon from a risk reward perspective. My money is on PTC and as a disclosure I have an exposure to this name for the long time.

  • There is a message in the VRRR cut off that RBI is comfortable with rates going up, says Sivakumar of Axis AMC

    R Sivakumar Head Fixed Income at Axis AMC said, “I think there is a message in the VRRR cut off that the RBI is comfortable with rates going up”.

    “The comfort that RBI is showing on allowing the VRRR rates to rise is in a way signalling to the short term money markets that we should at some stage expect the reverse repo rate to go up,” Sivakumar added.

    “I think they can raise the reverse repo rate not in the next meeting but in the meeting after that,” he pointed out.

    Sivakumar also agrees that they can raise these rates without touching the accommodative stance because the accommodative stance applies to the repo rate which is at 4 percent. So the MPC doesn’t really have to change anything in their thought process while the corridor is being narrowed.

  • Not sure about this liquidity normalisation path but the only good thing is that the pace of VRRR will go up, says Ghosh of SBI

    Currently the situation in liquidity is extremely delicately poised, said SK Ghosh Group CEA at SBI.

    “One autonomous factor which is playing and which is not in the control of Reserve Bank of India is capital inflows. You will see that a large section in the monetary policy report emphasises the capital inflows parts and the fact that the follow on interventions are being unwinded,” said Ghosh.

    If the RBI wants to rollover over that, it is going to push up the forward premium and that could lead into an avalanche of debt inflows at some point of time, pointed out Ghosh.

    “The RBI’s liquidity management data very shortly shows that problem that the drivers of liquidity in the first half have been lower currency leakage and significant amount of capital inflows into the country. So taking these factors into account I am not sure about this liquidity normalisation path but the only good thing is that the pace of VRRR will go up. However if this conundrum continues it will be a very difficult climb on the part of RBI for liquidity normalisation,” added Ghosh.

  • Explained: IndiGo promoters' dispute and why Rakesh Gangwal’s plea was not allowed by Delhi High Court
    The Delhi Court on Friday refused to allow the plea filed by IndiGo promoter Rakesh Gangwal against co-promoter Rahul Bhatia to enforce the arbitration award given by the London Court of International…
    Stock Market Highlights: Nifty50 hits record closing high of 17,895, Sensex jumps 381 points after RBI announcements
  • A rise in oil prices and US 10-year treasury yield remain near-term challenges, says Shrikant Chouhan of Kotak Securities


    This week, domestic markets drew comfort from strong economic data points and corporate updates of strong demand in certain segments, said Shrikant Chouhan, Head - Equity Research(Retail) at Kotak Securities.

    Meanwhile, the monetary policy committee kept the repo rate unchanged at 4 percent and retained the monetary stance as ‘accommodative’, and in the US, the Senate approved to raise debt limit temporarily, thereby averting default and providing relief to the markets. However, an increase in oil prices and a rise in the US 10 year treasury yield remain near-term challenges, added Chouhan.

    “Over the next month, there would be stock-specific action based on Q2FY22 results and management commentary,” said Chouhan.

  • Credit policy is neutral to positive for the market, says Meena of Swastika Investmart

    “The credit policy is neutral to positive for the market as the market was already expecting that interest will remain unchanged but the market is cheering on fact that there is no change in stance, said Santosh Meena, Head of Research, Swastika Investmart Ltd.

    The governor is confident about growth and did not show much worry about inflation, and therefore the market is witnessing a bullish momentum post policy, said Meena.

    “I believe this event will have a few hours effect on the market however market will focus on global cues. We are outperforming despite a rise in US bond yields, the dollar index, and Crude oil prices,” Meena said.

    Further, Nifty Bank is showing bullish momentum post the policy but it has a critical supply zone in the 38000-38300 area and if it manages to take out this zone then we can expect a short-covering rally towards the 39000 level otherwise it may see selling pressure where 20-DMA of 37500 will be immediate support, Meena pointed out.

  • Reliance Industries becomes first Indian company to hit Rs 18 lakh crore market cap as shares hit record high

    Reliance Industries shares traded 3.5 percent higher at Rs 2,662 apiece in late afternoon deals on BSE, soon after clocking a record high of 2,664.9. The conglomerate's market capitalisation touched the Rs 18 lakh crore mark, cementing its position as the country's most valuable company. 

    Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

  • After rallying over 10 percent on Thursday, Tata Motors’ stock was trading nearly 3 percent higher in trade today. Shares of the auto major even hit a 52-week high at Rs 398 today.

  • RBI keeps repo rate unchanged; Should home buyers cheer?
    It’s a moment to cheer for homebuyers as the Reserve Bank of India (RBI) maintained the repo rate unchanged at 4 percent in today’s monetary policy.
    Stock Market Highlights: Nifty50 hits record closing high of 17,895, Sensex jumps 381 points after RBI announcements
  • Motherson Sumi Systems’ board approves acquisition of 55% stake in CIM Tools

    The company’s board of directors has approved the acquisition of 55 percent stake in CIM Tools Private Ltd, one of the leading suppliers in the aerospace supply chain, based in Bengaluru, India.

    This acquisition will mark Motherson Sumi Systems’ entry into the aerospace industry.

    “MSSL’s entry into the aerospace segment is aligned with its growth strategy to venture into the non-automotive sectors as outlined in its five-year plan, Vision 2025,” Motherson Sumi Systems said in an exchange filing.

    Shares of the company traded 1 percent higher at Rs 238.40 on the BSE.

  • RBI Policy | Central bank signalling reverse repo rate to go up in future, says Axis AMC's R Sivakumar

    R Sivakumar of Axis AMC said the RBI is signalling that the reverse repo rate will go up in futures, and the central bank has the ability to set the cut-off wherever it wants to. The RBI can increase the reverse repo rate in the Febuary policy meet, he said. 

    Kaushik Das of Deutsche Bank expects the RBI to raise the reverse repo rate by 20 bps in December. Das sees the RBI announcing a 28-day VRRR before the December policy. 

    The RBI will have to come up with another Operation Twist, he said.

    Mallikarujna Rao of PNB said the RBI's move to increase the IMPS transaction limit to Rs 5 lakh from Rs 2 lakh is a positive step. The continuation of the on-tap facility is required, he said. (Check out highlights CNBCTV18.com's coverage of RBI policy)

  • Indian Energy Exchange shares hit 52-week high

    IEX shares traded seven percent higher at Rs 685.3 apiece on BSE, minutes after jumping 8.1 percent to clock a 52-week high of Rs 692 on the bourse. 

  • Earnings growth to be reasonably strong across many segments: Alfaccurate Advisors' Rajesh Kothari

    Rajesh Kothari, Managing Director of Alfaccurate Advisors, belives the earnings growth is going to be reasonably strong across many segment. The economy is opening up, and small players losing market share and getting out of the industry, he said.

  • TCS shares rise 1.5% ahead of Q2 earnings

    TCS shares traded 1.5 percent higher at Rs 3,951.3 apiece on BSE in afternoon deals, having risen as much as 2.5 percent to Rs 3,990 apiece earlier in the day. The country's largest IT company will report its financial results for the July-September period after market hours today. (Here's what to expect from TCS Q2 results)

  • RBI policy most balanced, growth-oriented: HDFC Bank's Bhaskar Panda 

    Bhaskar Panda, Executive VP and Head-Overseas Treasury at HDFC Bank, said the RBI's latest policy was "most balanced and growth-oriented". "I don't see any hint for the reverse repo... We were expecting some change in probably reverse repo rate, but the Governor has not changed it. The most important point is inflation expectations, which they are much lower... I personally believe it would be a little higher because of global oil prices remaining so firm. So that is a good, positive thing from the RBI's perspective, but I don’t know, and will keep my fingers crossed," he said. Catch LIVE RBI policy updates here

  • RBI Policy | Shaktikanta Das says global bond index inclusion should hopefully happen in next few months

    "We don't want to rock the boat when we have reached the shores," RBI Governor Shaktikanta Das said. Catch LIVE updates of RBI monetary policy here

  • RBI sounded a bit dovish, market relieved temporarily: HDFC Securities' Deepak Jasani

    Deepak Jasani, Head of Retail Research at HDFC Securities, said the RBI policy was largely on expected lines though the central bank sounded a bit dovish. The equity market is relieved temporarily by the dovish tone but will be aware of the rate hike possibilities going ahead, he added.

    "The RBI seems to be following other central banks by first trying to reduce liquidity (by abandoning GSAPs and announcing a VRRR calendar). It also cut the inflation projection for FY22 by more than Street expectations of 5.3 percent.  Though it has not hinted at a rate hikes, the reverse repo rate could be hiked in the December meet, signaling the start of policy normalisation," Jasani added.

  • Buy Tech Mahindra, MCX: Jay Thakkar 

    Here are two trading calls from Jay Thakkar of Marwadi Shares & Finance:

    --Buy Tech Mahindra for a target price of Rs 1,500 with a stop loss at Rs 1,415 
    --Buy MCX for a target of Rs 2,000-2,070 with a stop loss at Rs 1,790 

  • "What we are clearly seeing is classic tapering," says Axis Bank's Rajiv Anand 

    Rajiv Anand, Executive Director of Axis Bank, said in an interview to CNBC-TV18 that although inflation has come down, the pause on interest rates is probably because the RBI is a bit circumspect about growth. "What we are clearly seeing is the classic tapering: first look at liquidity, and then look at rates and that's what is playing out at this point in time. So you are going to see short-end rates going up, because the governor has clearly articulated that VRRR is going to push the short end rates up, so may not do a reverse repo high, but it is going to happen through the VRRR process," he said. 

    Anand also said the first lot of CP issuances in the next few days will probably show you how much of impact that is going to have going forward. "I think rates have bottomed out. The first step is normalisation of liquidity. The second is to reprice that liquidity through a hike in reverse repo rate i.e narrow the corridor and let us see how the world looks as we get into the next fiscal year. We could see one maybe two rate hikes on the repo side in in 2020-23," he added.

  • Bonds don't seem to agree with RBI's benign inflation assessment: market expert Sandip Sabharwal

  • Zydus gets tentative approval of US drug regulator for acne treatment gel; shares edge higher

    Cadila Healthcare shares traded 0.3 percent higher at Rs 551.3 apiece on BSE. 

  • RBI policy doesn't throw any curveballs, well received by market: Jimeet Modi

    Jimeet Modi, Founder and CEO of Samco Group, said the RBI has been "a juggler of many balls in the past year and till now, never have they once faltered on any front". In fact, the central bank has managed to hold fort despite the pandemic, he said.

    The MPC has derived comfort from the declining inflationary tendencies and lowered the inflation forecast. It seems their strategy going forward is a classic textbook one with liquidity management, the first check on their agenda, followed by a hike in reverse repo. The liquidity VRRR auction calendar till December is a welcome move which definitely gives further clarity on the liquidity tapering front. If the Fed’s stance in Nov goes as expected, December could be the time when the RBI finally begins to reduce the gap between the repo and reverse repo rates. In sum and substance, this time's policy didn’t throw any curveballs, hence was well received by the market," he said.

  • IndiGo shares rise over 1%, recover initial losses

    InterGlobe Aviation shares traded 1.3 percent higher at Rs 1,974 apiece on BSE. 

Stock Market Highlights: Dalal Street extended gains to a second straight day with the Nifty50 index hitting a record closing high after the RBI kept the key rates unchanged
and remained 'accommodative' following a scheduled review. The market cheered the announcements with the easing of concerns about an earlier-than-expected tightening of monetary policy. Gains in IT, oil & gas and PSU banking shares lifted the market. Broader markets also rose, with the smallcap index outperforming the headline gauges by rising 1.2 percent. TCS shares ended one percent higher and remained in focus during the session, ahead of the Q2 earnings announcement by the IT major.
Here are highlights of the Oct 8 session: