MARKET WRAP: Sensex down 192 pts, Nifty ends at 11,598 after RBI rate cut

Benchmark indices settled in the negative territory on Thursday while the rupee also dropped 60 points against the US dollar after the Reserve Bank of India (RBI) cut the repo rate by 25 basis points to 6 per cent in the first bi-monthly monetary policy meet of the financial year (FY) 2019-20.

The S&P BSE Sensex shed 192 points or 0.49 per cent to settle at 38,685. Reliance Industries, TCS, Infosys, ICICI Bank and IndusInd Bank contributed the most to the index's decline. Out of 30 components, 17 scrips ended in the red. 

The Nifty50 index of the National Stock Exchange (NSE) ended below 11,600 level at 11,598, down 46 points or 0.39 per cent. Except the Nifty Auto, Nifty FMCG, Nifty Media and Nifty Pharma, all other indices ended in the red, with Nifty IT index and Nifty Private Bank index dropping 1.37 per cent and 0.82 per cent, respectively.

In the broader market, the S&P BSE MidCap index ended 21 points or 0.14 per cent lower at 15,413, while the S&P BSE SmallCap index closed the day at 14,938, down 47 points or 0.32 per cent.

Market breadth remained in favour of declines as out of 2,699 companies traded on BSE, 1,449 declined and 1,076 advanced while 174 scrips remained unchanged.  

BUZZING STOCKS

Shares of interest rate sensitive sectors like the bank, real estate, and automobiles ended mixed on the bourses after the Reserve Bank of India (RBI) on Thursday cut the repo rate by 25 basis points. The Nifty Bank index and Nifty Realty index slipped 0.63 per cent and 0.07 per cent, respectively, while Nifty Auto index gained 0.66 per cent.

Jet Airways (India) pared initial losses to end the day 3.52 per cent higher at Rs 259.95.

Pidilite Industries shares traded higher for the fifth straight day, and ended almost 1 per cent higher, at Rs 1,288 on the BSE.

SRF shares gained 4.47 per cent to end at Rs 2,487.10 but also hit the 52-week high of Rs 2,500 in intra-day trade after the company informed about the resumption of operations at its Gujarat plant at the earliest.

GLOBAL CUES

European and Asian shares stepped back from eight-month highs on Thursday, as investors took money off the table amid fresh concerns about U.S.-China trade talks and as dire data from Germany signalled trouble for Europe.

MSCI’s broadest index of Asia shares also lost 0.4 per cent overnight after five straight days of gains had taken it to the highest level since late August. Chinese shares were firmer with the blue-chip index up 0.6 per cent while Japan’s Nikkei paused near a recent one-month top.

(With inputs from Reuters)


3:38 PM IST

3:37 PM IST

3:36 PM IST The S&P BSE Sensex shed 192 points or 0.49 per cent to settle at 38,685, while the NSE's Nifty50 index slipped to end at 11,598, down 46 points or 0.39 per cent.

3:12 PM IST "We are delighted with the second consecutive rate cut announced today which ushers an era of falling interest rate regime. We hope that the reduction in rate are passed on by the banks to the home buyers. Lower interest rates, along with the recent reduction in GST rates for under construction properties, should provide the fillip to end user demand. The real estate sector has been looking forward to such stimuli to boost sales velocity.” -- Shishir Baijal, Chairman & Managing Director, Knight Frank India

2:56 PM IST COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME WIPRO 257.50 -4.00 -1.53 44671623 REL. COMM. 3.42 -0.17 -4.74 19318053 VODAFONE IDEA 15.10 -0.85 -5.33 5857509 SUZLON ENERGY 6.52 0.00 0.00 5449639 REDINGTON INDIA 97.50 -0.30 -0.31 4588221 » More on Most Active Volume

2:50 PM IST COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME ORIENT CEMENT 90.65 5.10 5.96 35818 SWAN ENERGY 116.80 5.85 5.27 134330 FORCE MOTORS 1765.75 86.00 5.12 68460 LAK. VILAS BANK 88.35 4.20 4.99 1925406 INTERGLOBE AVIAT 1422.90 57.75 4.23 93359 » More on Top Gainers

2:43 PM IST

2:36 PM IST Housing Development Finance Corporation Limited (HDFC) shares hit an all-time high of Rs 2,057, up 2.3 per cent, in intra-day trade on the BSE on Thursday after the Reserve Bank of India (RBI) cut the repo rate by 25 basis points to 6 per cent in the first bi-monthly monetary policy meet of the financial year (FY) 2019-20. READ MORE

2:28 PM IST “The RBI’s 25BPS repo rate cut, as well as, the RBI’s decision to maintain the neutral monetary policy stance was largely in line with market expectations. However, the downward revision on GDP growth and CPI inflation forecast indicates some caution from the regulator. The Governor’s clarification that RBI continues to be dedicated to upholding credit discipline, and that it will be coming out with steps (in accordance with the process desired by the apex court) for NPA resolutions may be viewed as a relief for banks. By allowing banks to reckon an additional 2% of G-Secs within the mandatory SLR requirement, for the purpose of computing LCR, in a phased manner would help provide further liquidity in the system, and in our view, is positive for banks.” -- Lalitabh Shrivastawa, AVP Research, Sharekhan by BNP Paribas

2:16 PM IST

2:06 PM IST

1:52 PM IST Shares of Force Motors moved higher by 11 per cent to Rs 1,869 on the BSE on Thursday on the back of heavy volumes after the company reported total sales of 4,117 units in March. The stock hit an intra-day low of Rs 1,661 today. READ MORE

LIVE UPDATES

Sectoral gainers and losers of the day


Top gainers and losers on S&P BSE Sensex at close


MARKET AT CLOSE

The S&P BSE Sensex shed 192 points or 0.49 per cent to settle at 38,685, while the NSE's Nifty50 index slipped to end at 11,598, down 46 points or 0.39 per cent.

Knight Frank India on RBI rate cut

"We are delighted with the second consecutive rate cut announced today which ushers an era of falling interest rate regime. We hope that the reduction in rate are passed on by the banks to the home buyers. Lower interest rates, along with the recent reduction in GST rates for under construction properties, should provide the fillip to end user demand. The real estate sector has been looking forward to such stimuli to boost sales velocity.”

-- Shishir Baijal, Chairman & Managing Director, Knight Frank India

Most active stocks by volume (BSE500)

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
WIPRO 257.50 -4.00 -1.53 44671623
REL. COMM. 3.42 -0.17 -4.74 19318053
VODAFONE IDEA 15.10 -0.85 -5.33 5857509
SUZLON ENERGY 6.52 0.00 0.00 5449639
REDINGTON INDIA 97.50 -0.30 -0.31 4588221
» More on Most Active Volume

Top gainers on BSE500

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
ORIENT CEMENT 90.65 5.10 5.96 35818
SWAN ENERGY 116.80 5.85 5.27 134330
FORCE MOTORS 1765.75 86.00 5.12 68460
LAK. VILAS BANK 88.35 4.20 4.99 1925406
INTERGLOBE AVIAT 1422.90 57.75 4.23 93359
» More on Top Gainers

IndusInd Bank falls 2.6%


HDFC hits all-time high of Rs 2,057; gains 11% in one month

Housing Development Finance Corporation Limited (HDFC) shares hit an all-time high of Rs 2,057, up 2.3 per cent, in intra-day trade on the BSE on Thursday after the Reserve Bank of India (RBI) cut the repo rate by 25 basis points to 6 per cent in the first bi-monthly monetary policy meet of the financial year (FY) 2019-20. READ MORE

BNP Paribas on RBI rate cute

“The RBI’s 25BPS repo rate cut, as well as, the RBI’s decision to maintain the neutral monetary policy stance was largely in line with market expectations. However, the downward revision on GDP growth and CPI inflation forecast indicates some caution from the regulator. The Governor’s clarification that RBI continues to be dedicated to upholding credit discipline, and that it will be coming out with steps (in accordance with the process desired by the apex court) for NPA resolutions may be viewed as a relief for banks. By allowing banks to reckon an additional 2% of G-Secs within the mandatory SLR requirement, for the purpose of computing LCR, in a phased manner would help provide further liquidity in the system, and in our view, is positive for banks.”

-- Lalitabh Shrivastawa, AVP Research, Sharekhan by BNP Paribas

TCS slips 2.8%


Repco Home Finance gains 5.33%


Force Motors surges 11% post March sales numbers

Shares of Force Motors moved higher by 11 per cent to Rs 1,869 on the BSE on Thursday on the back of heavy volumes after the company reported total sales of 4,117 units in March. The stock hit an intra-day low of Rs 1,661 today. READ MORE

Sectoral trends on NSE


IndiGo rises 4.7%


5 factors that shaped RBI's inflation forecast and 6 key risks

The Reserve Bank of India (RBI) slashed repo rate by 25 basis points (bps) to 6 per cent in its First bi-monthly Monetary Policy Statement for financial year 2019-20 (FY20). The central bank, however, has assumed the monsoon to be normal this year. READ MORE



Market check


Explained: Reasons why RBI cut its retail inflation forecast for 2019

The Reserve Bank of India (RBI) on Thursday cut the retail inflation forecast to 2.9-3 per cent for the first half of current fiscal, mainly due to lower food and fuel prices as well as expectation of a normal rainy season. However, the central bank voiced uncertainty over inflation outlook. READ MORE

Rate sensitive shares trade mixed after RBI cuts repo rate by 25 bps

Shares of interest rate sensitive sectors like the bank, real estate, and automobiles were trading mixed on the bourses after the Reserve Bank of India (RBI) on Thursday cut the repo rate by 25 basis points to 6 per cent in the first bi-monthly monetary policy meet of the financial year (FY) 2019-20. READ MORE



Nifty PSU Bank index gains 0.63%


Repco Home Finance slides 2.60%


RBI monetary policy: Reserve Bank cuts repo rate by 25 bps to 6%

The Reserve Bank of India (RBI) on Thursday cut the repo rate by 25 basis points to 6 per cent in the first bi-monthly monetary policy meet of the financial year (FY) 2019-20. It was the first back-to-back rate cut by the central bank since the Monetary Policy Committee (MPC) was formed in late 2016. READ MORE



Full text: RBI cuts repo rate to 6%, cuts GDP forecast for FY20 to 7.2%

The Reserve Bank of India cut the key policy rate by 25 basis points to 6 per cent in order to boost private investments and support domestic growth. Four out of six MPC members voted for a 25 basis points cut, while two called for it to remain unchanged. Five of them called for the policy stance to remain “neutral” while one MPC member voted for it to be changed to “accommodative”. READ MORE





RBI policy outcome: Nifty Private Bank index is trading 0.30 per cent lower


RBI policy outcome: Nifty PSU Bank index slips 0.34 per cent


5 factors that will impact inflation according to the RBI

1) Low food inflation during January-February will have a bearing on the near-term inflation outlook.

2) The fall in the fuel group inflation witnessed at the time of the February policy has become accentuated.

3) CPI inflation excluding food and fuel in February was lower than expected, which has imparted some downward bias to headline inflation.

4) international crude oil prices have increased by around 10 per cent since the last policy.

5) inflation expectations of households as well as input and output price expectations of producers polled in the Reserve Bank’s surveys have further moderated.

Taking into consideration these five factors and assuming a normal monsoon in 2019, the RBI revised the CPI inflation path downwards to 2.4 per cent in Q4:2018-19, 2.9-3.0 per cent in H1:2019-20 and 3.5-3.8 per cent in H2:2019-20, with risks broadly balanced.

RBI policy outcome: Nifty Bank index slips 0.24 per cent lower


Inflation projection

(Source: RBI)



RBI policy outcome: Nifty Bank index is trading 0.07 per cent lower


RBI on GDP growth

GDP growth for 2019-20 is projected at 7.2 per cent – in the range of 6.8-7.1 per cent in H1:2019-20 and 7.3-7.4 per cent in H2 – with risks evenly balanced



Will there be another rate cut at RBI's Monetary Policy Committee meeting?

The six-member monetary policy committee (MPC) of the Reserve Bank of India (RBI) will likely announce a 25 basis points cut on Thursday, even as some in the market expect a deeper, 50 basis points cut. Clearly, in a rule-based policy, the key consideration for the central bank has shifted from inflation (which is lower than the RBI’s target of 4 per cent), to growth. READ MORE

Ahead of RBI policy outcome: Nifty Realty index is trading 0.61 per cent higher


Ahead of RBI policy outcome: Nifty Bank index is trading 0.11 per cent higher


Ahead of RBI policy: Nifty Auto index is trading 0.44 per cent higher


SRF nears all-time high, gains 3% after Gujarat plant resumes operation

SRF shares were trading 3 per cent higher at Rs 2,450 in intra-day trade on the BSE on Thursday in an otherwise subdued market after the company resumed operations at its Dahej industrial plant in Gujarat. READ MORE

ALERT :: Nikkei India Services PMI

At 52.0 in March, the seasonally adjusted Nikkei India Services Business Activity Index indicated expansion for the tenth straight month. Falling from 52.5 in February, however, the latest reading showed the slowest upturn since last September. Reports from panellists linked higher output levels to new business wins from domestic and external sources. Growth was curtailed by subdued bookings and competitive pressures.

A softer increase in manufacturing production was likewise registered, the weakest since September 2018. Subsequently, the seasonally adjusted Nikkei India Composite PMI Output Index dipped from 53.8 in February to a six-month low of 52.7 in March. The latest figure pointed to a slower upturn in private sector output and rounded off a weaker quarterly performance than registered in Q3 FY18.

(Source: Nikkei release)

Photo: Reuters

Stocks that hit 52-week low on BSE500

COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%)
NAVKAR CORPORAT. 36.70 36.50 -1.00 -2.65
REL. COMM. 3.44 3.42 -0.15 -4.18
T.V. TODAY NETW. 305.00 302.80 -7.80 -2.49
VODAFONE IDEA 15.35 15.25 -0.60 -3.76
» More on 52 Week Low

Pidilite Industries gains for fifth straight day; hits new high

Pidilite Industries shares were trading higher for the fifth straight day, up 1.4 per cent, at Rs 1,294 on the BSE on Thursday in an otherwise subdued market. The stock was trading at its new high and hsa rallied 6 per cent in the past one week. In comparison, the benchmark S&P BSE Sensex was up 1 per cent during the week. READ MORE

Reliance Industries slips 1%


Here's why you should diversify your investments

Most investors tend to focus on keeping their savings in a particular investment or asset class. For some investors it is gold, for some, it is fixed deposits and for others it is stocks. However, concentrating your savings in one asset is a risky proposition. If the investor’s favorite asset gives poor returns, then his efforts at wealth creation would face a setback. READ MORE

Jet Airways falls 9 per cent in two days as crises deepens

Shares of Jet Airways (India) slipped 4 per cent to Rs 242 in early morning trade on the BSE on Thursday, falling 9 per cent in past two trading days as the financial crises deepen in the cash-starved airline. Jet Airways has grounded 15 additional aircraft due to non-payment of amounts outstanding to lessors under their respective lease agreements, the airline said in a regulatory filing on Monday. READ MORE



Dish TV up 5%


Market check


Suven Life Sciences climbs over 3% after securing product patents in 4 nations


Bombay Dyeing jumps 6%


Siyaram Silk Mills up 6%


Asian Oilfield Services gains over 7%


Q4 results review by Motilal Oswal Financial Services on Tier-1 IT firms

With aggregate Tier-I CC revenue growth of 10.3 per cent YoY in 4QFY19, we expect the trend of unanimous acceleration to soften after five quarters. While growth rate at Infosys and HCL Tech will continue accelerating, for TCS and TECH Mahindra, YoY growth should be comparable to the previous quarter, and acceleration at Wipro should be marginal. For TECH Mahindra, Enterprise will be a drag and weaker-than-anticipated 4Q seasonality should play out for Communications.

Bharti Airtel rises 2%


Most active stocks by volume (BSE500)

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
WIPRO 256.50 -5.00 -1.91 44534292
REL. COMM. 3.59 0.00 0.00 4620587
VODAFONE IDEA 15.45 -0.50 -3.13 798354
YES BANK 268.60 -5.15 -1.88 626792
SUZLON ENERGY 6.48 -0.04 -0.61 488013
» More on Most Active Volume

Momentum Picks by ICICI Direct


Opening losers on BSE Sensex

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
UJJIVAN FIN.SER. 320.60 -9.65 -2.92 11260
VODAFONE IDEA 15.50 -0.45 -2.82 340289
JET AIRWAYS 244.15 -6.95 -2.77 119240
CAN FIN HOMES 343.55 -9.15 -2.59 14579
INDOSTAR CAPITAL 390.85 -10.15 -2.53 397
» More on Top Losers

Nifty Realty index is trading over 0.8% higher


Amara Raja Batteries gain over 3%


Rupee opens 12 paise lower at 68.53 against the US dollar

The rupee opened 12 paise lower at 68.53 against the US dollar on Thursday. The domestic currency surged by 33 paise to close at 68.41 amid the greenback's weakness against key rivals overseas, even as oil prices firmed up on supply concerns. READ MORE



Jet Airways slips over 2.5%


Indiabulls Housing up over 3.5%


Sectoral gainers and losers on NSE


Top gainers and losers on S&P BSE Sensex


FIRST TRADE

At 09:18 am, the S&P BSE Sensex was trading 45 points or 0.12 per cent higher at 38,922 while the NSE's Nifty50 index was trading 11.50 points higher at 11,655. 

Market at pre-open


Rupee opening

Rupee opens weaker at 68.53/$ vs Wednesday's close of 68.42 against the US dollar

Stocks in focus

Rate-sensitive stocks: Bank, auto and realty stocks may remain in focus today as the RBI will announce monetary policy decision on Thursday.
 
Jet Airways: The airline has deferred the March salary payment to its employees, citing "complexities" involved in the finalisation of the debt-recast plan, under which the SBI-led consortium of lenders has taken over the management control of the airline. READ MORE

Stock calls by Tradebulls Securities

Stock: Tata Steel
Reco: SELL
CMP: Rs 534.25
 
The occurrence of “Gravestone Doji” at higher levels post “Inverted Hammer” in previous trading session suggests exhaustion for the ongoing up-move that commenced from January lows around Rs 440 levels. Prevailing bearish divergence for RSI oscillator in 240 minutes scale relative to price indicates prices are losing momentum at higher levels. READ MORE

SGX Nifty

At 8:25 AM (IST), Nifty futures on Singapore Exchange (SGX) were trading at 11,741.50, up 29 points, or 0.25 per cent, indicating a positive start for the domestic market

FII/FPI & DII trading activity on NSE, BSE and MSEI


YES Securities' Amar Ambani on upcoming RBI policy

“RBI’s strong intent on supporting economic growth under Guv Shaktikanta Das, with inflation under control, is evident. It will therefore come as no surprise if the Central Bank choses to cut Repo once again by 25 basis points. In fact, some market participants are anticipating 50 basis points cut as well. But I believe that the RBI should focus only on addressing the liquidity situation in the economy, wherein the real problem lies. It has already announced measures like Dollar Swap to ease liquidity somewhat. More steps like another Dollar Swap, better transmission of previous rate cut, OMOs, possibly reducing SLR or even cutting on CRR (on all holdings or perhaps incremental flow) is the need of the hour. Another headline cut in rates can always wait for later in 2019. There’s ample time and the trajectory is relatively clear. Pausing on rates now also gives them the opportunity to closely monitor El Nino weather shocks, vegetable and cereal inflation, effects of consumption stimulus offered in the Union Budget, recent acceleration in wages and geo-politics.”

Bulk deals on NSE as on Wednesday

03-Apr-2019 ARTEDZ Artedz Fabs Limited CNM FINVEST PRIVATE LIMITED . BUY 1,44,000 42.01 -
03-Apr-2019 ARTEDZ Artedz Fabs Limited NIRAJ LAHERCHAND MODI SELL 51,000 41.95 -
03-Apr-2019 ARTEDZ Artedz Fabs Limited SALVATION DEVELOPERS LIMITED SELL 84,000 42.09 -
03-Apr-2019 ARTEDZ Artedz Fabs Limited VIPUL MOHAN PATEL BUY 48,000 41.98 -
03-Apr-2019 ASTRAZEN AstraZeneca Pharma India ICICI PRUDENTIAL MUTUAL FUND A/C VOLATILITY ADVANTAGE PLAN SELL 1,25,000 2000.00 -
03-Apr-2019 DHFL Dewan Housing Fin Corp TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED BUY 18,92,151 149.30 -
03-Apr-2019 DHFL Dewan Housing Fin Corp TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED SELL 18,92,151 149.41 -
03-Apr-2019 IEX Indian Energy Exc Ltd SIGULER GUFF NJDM INVESTMENT HOLDINGS LTD SELL 30,00,000 161.50 -
03-Apr-2019 JAKHARIA JAKHARIA FABRIC LIMITED NOPEA CAPITAL SERVICE PRIVATE LIMITED BUY 36,000 182.00 -
03-Apr-2019 JAKHARIA JAKHARIA FABRIC LIMITED OVERSKUD MULTI ASSET MANAGEMENT PRIVATE LIMITED SELL 21,600 182.00 -

Click here for the full list

Oil check

Oil prices edged down on Wednesday after US government data showed a surprise build in crude inventories, but futures held near their highest in almost five months as OPEC-led output cuts and sanctions on Iran tightened the supply outlook.
 
Brent futures settled at $69.31 a barrel, losing 6 cents. Their session high was $69.96, the strongest since November 12, when they traded above $70. US West Texas Intermediate crude settled at $62.46 a barrel, falling 12 cents after briefly hitting $62.99, the highest since November 7.

Asian Markets check

Asian shares paused near an eight-month peak on Thursday as investors awaited developments on trade talks between the United States and China, who appear closer to signing a deal, nudging bond yields higher globally and softening the safe-haven yen.
 
MSCI’s broadest index of Asia-Pacific shares outside Japan took a breather after five straight days of gains took it to its highest since late August. Japan’s Nikkei was also flat to stay near a recent one-month top.

Wall Street check

US stocks edged higher on Wednesday, extending a strong start to the quarter as a rally among chipmaker shares provided a boost to the broader market on growing hopes of a trade deal between Washington and Beijing.

The Dow Jones Industrial Average rose 39 points, or 0.15 per cent, to 26,218.13, the S&P 500 gained 6.16 points, or 0.21 per cent, to 2,873.4 and the Nasdaq Composite added 46.86 points, or 0.6 per cent, to 7,895.55.
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