Stock Market LIVE: Sensex off 400 pts from day’s low; Nifty reclaims 22,700; Nifty PSU Bank rises 1% | Markets News

Stock Market LIVE: Experts believed that the future rate hiks by the Reserve Bank of India (RBI) and liquidity management will dictate the course of bond yields after Wednesday’s hawkish stance. Read more. 

Stock Market LIVE: In the broader markets, the Nifty MidCap 100 fell 0.27 per cent and the Nifty SmallCap 100 rose 0.53 per cent.

Stock Market LIVE: The Reserve Bank of India (RBI) hiked policy rates by 25 basis points and adopted a cautious tone, while the change in stance to another new nomenclature “calibrated tightening” felt more like a forward guidance than a policy stance per se, but has prepared markets for a higher-for-longer interest rate environment. 

 

With US rates and growth higher and inflation proving stickier, India may need to offer a meaningly higher risk premium, particularly amid elevated global volatility, high oil prices and lacklustre natural dollar inflows. Global financial conditions could thus increasingly dictate the RBI’s reaction function, alongside growth and inflation dynamics. 

 

Stock Market LIVE: After the Reserve Bank of India (RBI) hiked repo rate by 25 basis points to 5.5 per cent, marking the first such move since February 2023 amid rising price pressure, experts priced in more such move in the near-term. Read more. 

Stock Market LIVE: Tube Investments of India, Bajaj Auto, and Ashok Leyland were the top losers in the Nifty Auto index. 

Nifty Auto Heatmap 

Stock Market LIVE: The RBI delivered the hike the market had priced and attached a message it had not: inflation at 6.0 percent in the December quarter, 5.7 and 5.6 in the two quarters after, and no return to the 4 percent target inside the forecast horizon. With the repo at 5.50 percent against 5.2 percent projected inflation, the real policy rate is close to zero, well short of neutral, so calibrated tightening means what it says and December is live. The committee’s vote tells you the pace: unanimous on the step, four to two on the stance, so the direction is settled and the speed is contested.

The near-term map is simple. Bonds have priced the next move, with the 10-year at 7.2 percent going in, so a yield that eases from here opens the duration window early. Banks with repo-linked books gain margin for two quarters and face the liquidity drain as the risk. Long-duration equities carry the valuation adjustment. The October CPI print is the first reading inside the 6 percent quarter and is the next number that moves the path; crude back toward $85 is what shortens the cycle to two hikes, crude above $100 is what lengthens it.

View by: Harshal Dasani, business head, INVAsset PMS

Stock Market LIVE: Continuing commodity prices pressures are likely to put upside pressure on inflation as growth remains resilient allowing quick pass-through of input prices to retail prices. The rising interest rate backdrop globally has also reduced RBI’s degrees of freedom. We see a likelihood of another 50 bps hike this cycle.

View by: Garima Kapoor, deputy head, research and economist at Elara Capital

Stock Market LIVE: Bank shares reacted positively to expected rate-hike by the Reserve Bank of India in Wednesday’s session. Union Bank of India and The Federal Bank were the top gainers in the Nifty Bank index. 

Nifty Bank Heatmap