Sensex drops 156 points, Nifty barely holds above 8100 as RBI leaves repo rates unchanged.

Sensex and Nifty erased gains as RBI Monetary Policy Committee left the repo rate unchanged at 6.25%. Industry was expecting at least 25 basis point cut.

Although Nifty dropped below 8100 points, Nifty was gaining back some confidence. Sensex also gained back after a dip.

On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee (MPC) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.25%.

MPC stated all the key rates remain unchanged. This includes Bank Rate which remains at 6.75%, Repo Rate remains 6.25%, Reverse Repo Rate remains 5.75%, CRR remains 4.00% and SLR remains 20.75%. 

The announcement of the RBI Monetary Policy wherein the committee decided to keep the repo rate unchanged, has impacted price sensitive sectors including Auto and Realty.

RBI Withdraws the Incremental CRR
On November 26, 2016 the Reserve Bank had announced an incremental cash reserve ratio (CRR) of 100 per cent of the increase in net demand and time liabilities (NDTL) of scheduled banks between September 16, 2016 and November 11, 2016, effective the fortnight beginning November 26, 2016. It was intended to absorb a part of the large increase in liquidity in the system following the withdrawal of the legal tender status of Rs 500 and Rs 1,000 denomination bank notes. It was also indicated that the incremental CRR was purely a temporary measure and that it would be reviewed on December 9, 2016 or even earlier.

With the enhancement in the ceiling for issue of securities under the Market Stabilisation Scheme (MSS) to Rs 6,000 billion, it has been decided to withdraw the incremental CRR effective the fortnight beginning December 10, 2016. The liquidity released by the discontinuation of the incremental CRR would be absorbed by a mix of MSS issuances and liquidity adjustment facility (LAF) operations.

Nifty Bank index witnessed a downtrend primarily due to the RBI announcement of withdrawal of incremental Cash Reserve Ratio imposed on bank's deposits in late November to be withdrawn from December 10. Kotak Bank, Federal Bank, IndusInd bank, HDFC Bank, ICICI Bank, SBI, Canara Bank were all trading in red, while Yes Bank was the only bank trading in green on Nifty bank index.

The BSE Sensex ended with a loss of 156 points at 26237. The benchmark indices opened at 26456.21, touched an intra-day high of 26540.83 and low of 26164.82.

The NSE Nifty dropped 41 points and closed at 8,102. It opened at 8,168.40 points, hitting a high of 8,190.45 and low of 8,077.50.

The India VIX (Volatility) index was down 1.52% at 16.8450. The BSE Midcap closed at 12324.54 and Smallcap indices closed at 12101.77, both indices ending marginally down.

Out of 1884 stocks traded on the NSE, 961 declined and 636 advanced today.

A total of 17 stocks registered a fresh 52-week high in trade today, whereas 9 stocks touched a new 52-week low on the NSE.

At the close of day, Eicher Motors, BPCL, Adani Ports, Idea, HDFC were the top gainers while Sun pharma, Bank of Baroda, Axis bank, Bosch, Bajaj Auto, Lupin were among the losers on NSE.

The rupee was trading at 67.86 per US dollar. Gold was trading at Rs 27,934 per 10 gms and silver was trading at Rs 41,163 per kg.

On the global front, most Asian indices closed in green and marginally up. In Europe, the FTSE 100 was up 1.25%. CAC 40 and DAX was up 0.90% and 1.33% respectively while, the US Nasdaq was also up 0.45%.

European indices open on a positive note ahead of the ECB policy primarily as traders expected the central bank to extend the duration of its bond-buying programme. The ECB will commence its two-day policy meeting on Thursday, with the policy statement to be detailed on Friday. As expected, banks led the rally in European shares, as investors expected them to benefit from any extension of the ECB's bond-buying plan.

Nifty trading above 8150, Idea, Eicher up

Domestic markets opened on a positive note ahead of the RBI's Monetary Policy Committee's policy statement. The MPC will reveal the details today at 2:30 pm. The market is hopeful that there will be an interest cut of 25 basis points. 

At 12:20 PM, the S&P BSE Sensex is trading at 26432.42 up 40 points, while NSE Nifty is trading at 8,162.85 up 19 points. A total of 15 stocks registered a fresh 52-week high in trade today, while 7 stocks touched a new 52-week low on the NSE.

Out of 1,880 stocks traded on the NSE, 576 declined, 952 advanced and 352 remained unchanged today.

The BSE Mid-cap Index is trading up 0.33% at 12384.53, whereas BSE Small-cap Index is trading up 0.29% at 12199.62.

Some buying activity is seen in Auto, Oil & Gas, Bank while Healthcare, Information Technology, Capital Goods, FMCG, Telecommunications are showing weakness on BSE.

Eicher Motors, BPCL, Adani Ports, HDFC, Yes Bank, Idea, Ultra Cement are among the gainers, whereas SSun Pharma, Zee Entertainment, TCS, Lupin, Tata Steel are losing sheen on NSE.

The INDIA VIX is down 2.30% at 16.7100.

Eicher Motors stocks up 2.52% based on expectations of rate cut by 50 bps

VST Tillers up 5% after company reported a 34.2% month-on-month increase in sales of power tillers to 1,495 units in November.

Pennar Engineered shares rose 3% after it announced the formation of its subsidiary PEBS Pennar in the US.

Sun Pharma down 4% as Halol unit gets US FDA notice.

Sensex, Nifty open positive note

The S&P BSE Sensex is trading at 26446.78, up 54.02 points, while NSE Nifty is trading at 8,165.45 up 26 points.

The Indian rupee gained in the early trade. It has opened higher by 11 paisa at 67.83 per dollar versus previous close 68.22.

Asian markets traded in the green after the Dow Jones hit another high. Weakness in oil & gold saw money chase financials as most European indices hit fresh 2 month highs. The ECB meet on Thursday could further add fuel to the fire with expectations of further bond buying on the cards.

All eyes and ears will be on the RBI as the Monetary Policy Committee is set to announce the fifth bi-monthly policy today. The cruising Indian economy seems to have hit a series of speed-breakers after the shock therapy of demonetization of high-value currency last month. The flood of money flowing into bank deposits has indeed paved the way for a lower interest rate regime. If the RBI announces a 25bps rate cut today it would be on expected lines. A 50 bps would be a positive surprise while a status quo can unnerve the market. Close attention would be paid to the commentary of the RBI governor, who is known to talk very less, and his take on the market stabilisation scheme (MSS) and recent CRR measures. The outlook is a positive start. Global markets are mostly in the green. Interest-rate sensitives will swing to the RBI beat. The rupee, which staged a smart recovery on Tuesday will also be in focus.

Precious metals witnessed a relatively quiet session ahead of ECB policy meeting today. Market consensus clearly calls for an extension to ECB’s asset purchase programme by (which is due to expire by March 2017) at least six months, given the political uncertainty in Italy and forthcoming elections in Germany and France.

While, American Depository Receipts (ADRs) of most Indian companies ended on a positive note on Tuesday. HDFC Bank, ICICI Bank, Infosys, Wipro, and Sify were the top gainers, while Dr Reddy's Laboratories ended down 0.2%. 

Sensex ends flat, Nifty dips slightly below 8150

At the end of trading hours, the only positive is that the indices have closed in green. Sensex opened on a high note and more or less was stagnant in terms of variations throughout the day. Similarly, Nifty too stayed flat throughout the day.

The BSE Sensex ended with a gain of 44 points at 26392.76. The benchmark indices opened at 26403.62, touched an intra-day high of 26502.43 and low of 26356.02.

The NSE Nifty gained 14 points and closed at 8,143.15. It opened at 8,153.15 points, hitting a high of 8,178.70 and low of 8,130.85.

The India VIX (Volatility) index was down 1.05% at 17.1050. The BSE Midcap closed at 12344.34 and Smallcap indices closed at 12164.11, both indices ending marginally up.

Out of 1882 stocks traded on the NSE, 698 declined and 904 advanced today.

A total of 23 stocks registered a fresh 52-week high in trade today, whereas 10 stocks touched a new 52-week low on the NSE.

At the close of day, Tata Power, HDFC, Idea, BPCL, Adani Ports, ONGC, Tata Steel were the top gainers while Infratel, Bosch, HCL Tech, Maruti, PowerGrid, Axis Bank were among the losers on NSE.

The rupee was trading at 67.92 per US dollar. Gold was trading at Rs 27,935 per 10 gms and silver was trading at Rs 41,240 per kg.

On the global front, most Asian indices closed in green and marginally up. In Europe, the FTSE 100 was down 0.08%. CAC 40 and DAX was up 0.29% and 0.06% respectively while, the US Nasdaq was also up 1%.

Nifty starts above 8150, Sensex rallies 100 points

At 9:24 AM, the S&P BSE Sensex is trading at 26403.62, up by 116.23 points, while NSE Nifty is trading at 8,165.65 up by 39 points.

Asian markets opened in the green as markets discounted the Italian referendum in less than 15 minutes of opening with European indices closing with sharp gains. With the US leading from the front growth expectations on the back of huge infra spending are being touted as catalysts for equity market outperformance in 2017. Money is chasing higher bond yields & equities with Gold being the biggest loser as the US $ gets stronger.

The outlook is a positive start. The concerns and fears regarding the Italian referendum have taken a backseat for now. Wall Street rose on Monday with the Dow hitting record highs. Data showed further strength in the US economy suggesting a rate hike by the Fed next week. Back home the RBI monetary policy meet gets underway today and with a Rs 6 lakh crore Market Stabilisation Scheme expected, a 25 basis points reduction in the key policy rate seems to be well on its way.  The central bank will announce its bi-monthly monetary policy on Wednesday

US dollar lost ground against the basket of currencies, with Sterling looking the most resilient among the pack. For Euro, the focus will be accentuated on ECB policy meeting tomorrow, where expectations call for an a six-month extension to their asset purchase program in order to boost inflation and keep borrowing conditions conducive for growth.

Nifty found strong support @ 8050-8060 while 8200-8230 will act as resistance on the upside. Bank Nifty also has seen 18143 being held despite the volatility & that remains a strong support while 18650 will act as resistance on the upside.

Sensex gains 100 points, Nifty ends above 8100

While the day began with both the Indices trading in red, there was some momentum gained towards the end. The Auto and Bank sectors activities ensured that the Sensex and Nifty ended in green. When the market closed, Sensex gained more than 100 points while Nifty gained 42 points and closed above 8100.

The performance of India’s service sector weakened in November as a result of cash shortages. New business declined for the first time since June 2015, leading to a solid reduction in activity. Correspondingly, backlogs of work rose, while employment increased only marginally. In spite of the falls in output and new orders, optimism regarding future activity improved. Input costs were broadly unchanged, whereas prices charged decreased slightly.

Dropping from 54.5 to 46.7 in November, the seasonally adjusted headline Nikkei India Services Business Activity Index moved into contraction territory for the first time since June 2015 and pointed to the sharpest reduction in output for almost three years. Anecdotal evidence highlighted a lack of cash in the economy. Activity decreased in three of the six monitored sub-sectors, namely Financial Intermediation, Hotels & Restaurants and Renting & Business Activities.

Factory production rose further during the month, but the rate of growth eased. Concurrently, the seasonally adjusted Nikkei India Composite PMI Output Index dipped from October’s 45-month high of 55.4 to 49.1 in November, thereby pointing to a slight contraction in private sector activity overall.

As was the case for activity, new business inflows at services firms declined during November. The fall in new work was the first in 17 months and the steepest in over three years.

The BSE Sensex ended with a gain of 118 points at 26349.10. The benchmark indices opened at 26253.48, touched an intra-day high of 26390.80 and low of 26125.35.

The NSE Nifty gained 42 points and closed at 8,128.75. It opened at 8,088.75 points, hitting a high of 8,141.90 and low of 8,056.85.

The India VIX (Volatility) index was down 3.59% at 17.2875. The BSE Midcap closed at 12280.06 and Smallcap indices closed at 12114.72, both indices ending marginally up.

Out of 1436 stocks traded on the NSE, 594 declined and 788 advanced today.

A total of 13 stocks registered a fresh 52-week high in trade today, whereas 14 stocks touched a new 52-week low on the NSE.

At the close of day, Asian Paints, Hindalco, M & M, Lupin, Yes Bank, IndusInd Bank, Ambuja Cement, Maruti were the top gainers while Tech Mahindra, TCS, HDFC, Idea, Gail, Sun Pharma, Wipro, BPCL were among the losers on NSE.

The rupee was trading at 68.26 per US dollar. Gold was trading at Rs 27,925 per 10 gms and silver was trading at Rs 40,950 per kg.

On the global front, most Asian indices closed in red and marginally down. In Europe, the FTSE 100 was up 0.52%. CAC 40 and DAX was up 1.39% and 1.65% respectively, where all indices were trading in green while, the US Nasdaq was also up marginally.

Sensex, Nifty in green

At 1:43 PM, the S&P BSE Sensex was trading at 26283.49 up 52.83 points, while NSE Nifty was trading at 8102.45 up 16.65 points. Out of 1,889 stocks traded on the NSE, 675 declined, 891 advanced and 323 remained unchanged today.

A total of 11 stocks registered a fresh 52-week high in trade today, while 14 stocks touched a new 52-week low on the NSE.

The BSE Mid-cap Index is trading up 54.02% at 12253.20, whereas BSE Small-cap Index is trading up 8.96% at 12092.16.

Lupin, Asian Paints, Bosch, Bharti Airtel, HUL, M&M are among the gainers, whereas Tech Mahindra, Zee Entertainment, HDFC, TCS, Idea, PowerGrid are losing sheen on NSE.

Some buying is observed in Auto, Pharma, Bank, FMCG, Metal sectors, while Information Technology, Finance, Capital Goods, Consumer Durables, Oil & Gas, Telecommunications are showing weakness on BSE.

The INDIA VIX is down 0.19% at 17.8975.

Sensex, Nifty will have a cautious start, Euro sinks to 20-month lows

The failure of Italy’s referendum on constitutional reform has taken its toll on the euro. Fear is that the verdict of the Italian population will give a boost to anti-Europe and nationalist forces. The outlook is a cautious start. The RBI meet later this week will keep interest-rate sensitives in focus. Healthy monsoons and the ensuing softening in food prices have created space for further policy action. Moreover, growing bank deposits and billions of unaccounted cash finding its way into the mainstream economy (due to demonetization) have paved the path for a lower interest rate regime. The consensus calls for a 25bps rate cut in the coming policy. The developments on GST, the impact of demonetization and the ongoing winter session of Parliament will keep investors nervous in the days ahead.

Asian markets opened flat to mildly negative as results from the Italian referendum indicated a loss for the present Italian Prime Minister and sent the Euro plunging to a fresh 20 month low. Italian Prime Minister Matteo Renzi resigned following a heavy defeat in Sunday’s constitutional referendum. This will see Italian and European banks under pressure initially, however a large part of this move seemed already discounted by market participants. The US$ and bonds continue to hog the limelight as money chases US assets in the form of stocks, ETF's and fixed income.

Tokyo's benchmark Nikkei 225 index opened down 0.41%, or 76.16 points, at 18,349.92. Other Asian indices, overall mixed trading was observed, including Hong Kong’s Hang Seng (up 0.18%), South Korea’s Kospi (flat) and Taiwan’s TWSE (down 0.14%).

Investors may react to November US non-farm payroll data released on Friday by the US Labour Department. Data showed US unemployment rate fell to a 9-year low of 4.6% in November. US non-farm payrolls rose by 178,000 jobs in November against a rise by 142,000 in October, department said. It seems that the December Fed rate hike is going to happen.

Nifty ended the week with sharp losses as disequilibrium caused by the recent demonetisation move kept seeing market react to monthly sales of fast moving consumer stocks and auto's. The recent rally till 8250 has seen a fast reversal with rupee weakness, slowdown in GDP and global uncertainty make sentiment brittle. For today we expect Nifty to pullback from these oversold levels as strong value buying emerges locally and from foreign investors.

Sensex, Nifty recover slightly, MSS limit increased

At 01:46 PM, the S&P BSE Sensex is trading at 26450.96 down 109 points, while NSE Nifty is trading at 8150.85 down 42 points. Out of 1,878 stocks traded on the NSE, 1057 declined, 503 advanced and 318 remained unchanged today.

A total of 15 stocks registered a fresh 52-week high in trade today, while 12 stocks touched a new 52-week low on the NSE.

The BSE Mid-cap Index is trading down 0.50% at 12293.04, whereas BSE Small-cap Index is trading down 0.54% at 12183.80.

Eicher Motors, SBI, ICICI, Tata Power, Bank of Baroda are among the gainers, whereas BPCL, Tata Motors, Kotak Bank, Asian Paints, ITC are losing sheen on NSE.

Some buying is witnessed in Banking, Utilities, Power, sectors, while Oil & Gas, Auto, Capital Goods, FMCG, Consumer Durables are showing weakness on BSE.

The INDIA VIX is up 1.76 % at 16.9825.

Sensex slips over 100 points; Realty, Banking stocks drag.

At 9:15 AM, the S&P BSE Sensex is trading at 26,642, down 138 points, while NSE Nifty is trading at 8,146 down 47 points.

The Indian rupee opened higher by 7 paise at 68.28/$ against the previous close of 68.34/$.

Asian markets were trading in the red on opening bell as despite overnight gains in the Dow Jones the sharp volatility in the US $ combined with crude trading over $50 weakened sentiment.

US indices closed mixed with Dow hitting a new high and Nasdaq falling due to deep cuts in semiconductor and biotechnology shares. Uncertainty in EMs is likely to continue in the near term given the possible Fed rate hike anticipated this month. The Indian market's focus will be on the RBI move next week where a rate cut is on the anvil given the slowdown in the economy. The Italian referendum on Sunday will keep global markets anxious.

The Indian equity market was one of the worst performing ones among the emerging markets in November shedding 4.6pc in a month, which saw a sudden demonetisation move of high value currency.

The first impact numbers were reflected in Nikkei India Manufacturing Purchasing Managers' Index (PMI), which dropped to 52.3 in Nov from a 22-month high of 54.4 in Oct. Shortages of currency notes hampered growth of new work, buying activity and production. Auto numbers were a mixed bag with Maruti Suzuki and Toyota clocking double digit growth, while Mahindra’s sales saw a drop.

Gold prices also hit near 6 month lows as asset class rotation after the Trump victory has seen the highest volatiltiy in the last decade.