Sensex up over 150 points; Nifty tops 7,850

Benchmark share indices extended gains in noon trades after the surprise rate by the RBI with HDFC twins leading the gains.

At 1PM, the 30-share Sensex was up 233 points at 25,850 and the 50-share Nifty was up 66 points at 7,862.

Mortage lender HDFC was the top gainers on hopes of demand for home loans after the RBI reduced the repo rate by 50 basis points.

Other Sensex gainers include, HDFC Bank, Infosys, L&T and Reliance Industries among others.

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(Updated at 12:15PM)

Markets recovered from the negative terrain and have turned positive after the Reserve Bank of India, in order to boost the economy, surprised everyone when it announced a 50 bps repo rate cut to 6.75%. However, the central bank cut down the growth estimate to 7.4 percent for 2015-16 from 7.6 percent.

At 12:15 PM, the 30-share Sensex was up by 14 points at 25,633 and the 50-share Nifty was down 3 points at 7,792.

Top 3 losers on the Sensex include Vedanta, Dr Reddy, Tata Steel  down between 3-6%. The top 3 gainers on the Sensex are M&M, HDFC, and SBI , up between 1-1.5% each.

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(updated 11:50 AM)

After a knee jerk reaction to the surprise repo rate by 50 basis points to 6.75% in order to boost the economy, the central bank has has also educed its inflation projection to 5.8 percent for January 2016, from the earlier 6 percent and the growth estimate to 7.4 percent for 2015-16 from 7.6 percent.

At 11:50 AM, the 30-share Sensex was down 125 points at 25,493 and the 50-share Nifty was down 35 points at 7,760

Metal shares have taken a hit on the sharp plunge in the commodity prices amid growth concerns in China.

Top 5 losers on the Sensex include Vedanta,  Hindalco, Dr Reddy, Tata Steel and Bharti Airtel down between 3-6%.

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Markets staged a recovery led by financials after a suprising rate cut by 50 basis points by the RBI at its policy review today.

At 11:05AM, the 30-share Sensex was down 21 points at 25,596 and the 50-share Nifty was down 9 points at 7,786.

HDFC and HDFC Bank were the top gainers along with SBI and Axis Bank post the announcement by the RBI.

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(Updated at 10:45AM)

Markets slumped further mirroring losses in the global equities with US markets taking a hit on worries about the health of Chinese economy after China's industrial profits fell 8.8% in August amid slump in the commodity prices. Meanwhile, all eyes are set at the RBI fourth bi-monthly monetary policy review for the year 2015-16 slated today at 11 AM.

At 10:45 AM, the Sensex has lost 302 points to trade at 25,315 and the Nifty has slumped 96 points to quote at 7,700. 

Vedanta, ICICI Bank, Hindalco, Axis Bank and Tata Steel are the top 5 losers on the Sensex are have plunged between 3-4.5%.
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(updated at 10:45 AM)

Markets have witnessed a gap down opening mirroring losses in the global equities with US markets taking a hit on worries about the health of Chinese economy after China's industrial profits fell 8.8% in August amid slump in the commodity prices. Meanwhile, all eyes are set at the RBI fourth bi-monthly monetary policy review for the year 2015-16 slated today at 11 AM.

At 9:35 AM, the Sensex has lost 237 points to trade at 25,380 and the Nifty has slumped 71 points to quote at 7,725. The broader markets are in tandem with the larger peers with BSE Midcap and Smallcap indices trading lower between 0.7-1.2%. The market breadth is weak on the BSE with 347 advances versus 947 declines.

MARKET OUTLOOK

“Yesterday, Nifty gave the lowest close of last nine trading sessions as traders opted to liquidate their position before RBI policy decision. Now the index needs to hold above 7,777 levels to witness support based buying towards 7,850 and 7,900 levels, while if it fails to hold 7,750 levels then selling pressure may propel the index to drift towards 7,700 and 7,665 levels. Meanwhile, if Sensex manages to hold 25,600 levels then buying interest will take the index towards 25,850 and 26,000 levels but if it fails to hold on to 25,550 levels, then a fall might be seen taking it to 25,250 and 25,000 levels,” Anand Rathi said in a morning note.

GLOBAL MARKETS

Asian equities were trading lower with commodity stocks dropping the most amid sharp decline on Wall Street in overnight trades and sluggish economic data from China. Profit of Chinese industrial firms declined 8.8% in August compared to August 2014. China's Shanghai Composite was down 1.4% while Hang Seng dropped 3.3% and Japan's Nikkei was down 2.9%.

European equities declined on Monday weighed down by selling pressure in Volkswagen and after Glencore slumped 31% on concerns that it has been unable to reduce its huge debt burden. The FTSE-100, CAC-40 and DAX ended down 2.2-2.8% each.

Stocks on Wall Street ended sharply lower on Monday amid growth concerns in China and prospects of a rate hike by the US Federal Reserve. The Dow Jones ended down 312 points or 1.9%, the broader S&P 500 ended down 2.6% and the tech-laden Nasdaq ended down 3%.

KEY STOCKS

On the sectoral front, all sectoral indices are trading in red with BSE Bankex, Metal, Healthcare, Power and Realty indices are trading lower between 1-2%.

Rate sensitive stocks have declined across the bourses ahead of RBI's monetary policy due later today.In the banking space, ICICI Bank, Axis Bank, HDFC twins and SBI are down between 1-3%. In the auto pack, M&M, Bajaj Auto, Hero Motocorp, Maruti Suzuki and Tata Motors have shed between 1-1.5%.

Metal stocks have taken a beating in the early morning trades owing to a further slump in the commodity prices amid economic slowdown in China. In the metal space, Vedanta, Tata Steel and Hindalco have plunged between 2.5-5%.

Engineering conglomerate L&T  said its IT services unit, L&T Infotech, has filed draft papers with regulator Sebi to go public. L&T is down 0.5%.

ITC & Godfrey Phillips India have lost between 0.2-3% after the health Ministry stated that all tobacco products will carry warnings covering 85 per cent of the package area from April 1 next year, up from 40 per cent at present. 

ONGC and BPCL are down 1% and 1.6% on reports that its plans to set up a regasification liquefied natural gas (LNG) terminal at New Mangalore Port would be delayed.

 


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