The BSE Sensex rebounded quite nicely in the last couple of hours of trade following stability in global markets. The benchmark fell as much as 140 points intraday after the Reserve Bank of India raised inflation forecast to 7% from 6.5% and revised gross domestic product growth lower to 6.5% from 7.3% for the financial year 2012-13. However, the stability in European markets ahead of European Central Bank's (ECB) meet (that scheduled for Thursday) helped Indian markets bounce back.
The 30-share BSE benchmark rose 92.50 points to close at 17,236.18 and the 50-share NSE benchmark gained 29.20 points at 5,229. The BSE Midcap Index too ended with 0.6% gains.
The market seemed to have priced in the RBI policy that was majorly on expected lines. The central bank kept repo rate and cash reserve ratio unchanged while cut statutory liquidity ratio (SLR) by 1% to 23%. Experts feel the change in SLR won't make much difference to the market as banks already maintained SLR more than 25%.
Chaitanya Pande, head of fixed income at ICICI Prudential AMC said, "As expected, Reserve Bank of India (RBI) has left policy rates unchanged focusing on the stickiness of inflation while highlighting the growth slowdown. Given the uncertainty on the monsoons and the lack of any pass-through on petro products, RBI's hands were more or less tied in pushing out the rate cutting cycle by a quarter."
Bankers said they would not change deposit and lending rates in near term. Even the higher inflation indicated that the RBI may not go for a rate cut in next policy meet that scheduled for September 17.
Country's largest lenders State Bank of India and ICICI Bank were down 1.3% and 0.37%, respectively while housing finance company HDFC rallied 2%.
Oil & gas producers Reliance Industries and ONGC surged 1.86% and 3.37%, respectively.
Technology majors TCS, Infosys and Wipro went up 0.7%-1.7%. Top commercial vehicle maker Tata Motors rebounded quite nicely, rising 2% while top car maker Maruti Suzuki gained 1%.
Two-wheeler major Hero Motocorp was down 1.24% and utility vehicle manufacturer M&M went down 0.56%.
Healthcare stocks like Cipla (ahead of numbers for Q1) and Sun Pharma were up 1-1.7% whereas Dr Reddy's Labs fell 0.7%.
Among metals stocks, Sterlite Industries shot up 2.6%; Tata Steel and Hindalco gained around 1% whereas Jindal Steel slipped 1%.
Country's largest telecom operator Bharti Airtel topped the selling list, losing 2.77%.
In the second line shares, Titan Industries dropped more than 4% after lower than expected numbers in the quarter ended June 2012. Hexaware Tech declined 2.44%, even after better than expected numbers in June quarter.
Sun TV Network rose 2% as the company signed agreement with Tamil Nadu Arasu Cable TV Corporation Ltd, an undertaking owned by the Government of Tamil Nadu engaged in the business of providing signals to cable operators in the state of Tamil Nadu
Deccan Chronicle tanked 7.5% as IFCI filed winding up petition against DCHL at Andhra HC. Manappuram Finance surged more than 9%.
On the National Stock Exchange, advancers outnumbered decliners by 741 to 657.
Indian shares bounced back in afternoon trade led by oil & gas, technology, FMCG and HDFC group stocks. However, the selling in Bharti, SBI and ICICI Bank has limited the upside.
The BSE benchmark rose 38 points to 17,181.44 and the NSE benchmark went up 13 points to 5,212.75 amid choppy trade.
Country's largest software services exporters TCS and Infosys moved up 0.7% while their rival Wipro rallied 1.8%.
Top commercial vehicle maker Tata Motors rebounded with 2% gains and top car maker Maruti Suzuki gained 1%.
Oil & gas producers Reliance Industries and ONGC moved up 0.7% and 1.3%, respectively. Cigarette major ITC and engineering and construction major Larsen & Toubro were up 0.4% each.
Housing finance company HDFC surged 1.7% whereas private sector lender ICICI Bank was down 1.3%.
Country's largest lender State Bank of India, top telecom operator Bharti Airtel and steel & power producer JSPL tanked 2% each.
Shares of Mahindra & Mahindra, Hero Motocorp, BHEL, Dr Reddy's Labs and Hindalco Industries were down 1% each.
European markets ended a three-day rally as investors feared a recent rally built on anticipation of new stimulus measures from central banks in the United States and Europe may have been overdone. France's CAC and Britain's FTSE were marginally down while Germanys' DAX gained more than 0.5%.
Indian shares recouped losses led by buying interest in ICICI Bank and technology stocks. Other index heavyweights like Reliance Industries and L&T trimmed their losses. European markets were flat in early trade.
The market seemed to have priced in the unlikely rate cut in the next policy meet (that scheduled for September 17) after the RBI raised inflation forecast to 7% from 6.5% for financial year 2012-13. Today, the RBI left policy rates and cash reserve ratio unchanged.
The BSE benchmark was up 14 points to 17,157.24 and the NSE benchmark gained 3 points to 5,202.5. The broader markets too were flat.
Country's largest private sector lender ICICI Bank turned flat while its rival State Bank of India cut losses to 1.4% from 2.7%.
Drug maker Cipla and software services exporter Wipro topped the buying list, rising 2% each. Cipla's first quarter profit after tax is expected to grow by 21% YoY to Rs 306 crore.
Top software services exporter TCS gained 0.9% while its rival Infosys was up just 0.5%.
State-owned oil & gas producer ONGC went up 1.5% whereas Reliance Industries trimmed losses to 0.1% from 0.7%.
Top telecom operator Bharti Airtel was down more than 2%. State-owned power equipment manufacturer BHEL declined 0.9% while engineering and construction major Larsen & Toubro recovered.
The BSE Sensex and NSE Nifty extended fall amid volatility as bankers feel the cut in lending and deposit rates won't be possible in near term. Even the raising of inflation forecast to 7% for FY13 from 6.5% by the Reserve Bank of India indicated that the central bank may not go for a rate cut in the next policy as well that scheduled for September 17.
Today the central bank kept policy rates and cash reserve ratio unchanged. It has cut statutory liquidity ratio by 1% to 23% from 24%, but experts feel that won't make much difference to the market. The RBI also revised GDP growth lower to 6.5% from 7.3% for FY13.
The BSE benchmark went down 72 points to 17,071.79 and the NSE benchmark declined 26.35 points to 5,173.45.
India's largest lender State Bank of India tanked 2.5% while its rivals ICICI Bank and HDFC Bank were down over 0.5%.
State-owned power equipment manufacturer BHEL and engineering and construction major Larsen & Toubro lost 1.7% and 1.4%, respectively.
Among auto stocks, Tata Motors, Hero Motocorp and M&M went down 1% each whereas top car maker Maruti Suzuki gained 1%.
Metals stocks like Sterlite Industries, Tata Steel, Hindalco Industries and Jindal Steel fell over 1%.
Telecom operator Bharti Airtel plummeted 2.5% and index heavyweight Reliance Industries was down 0.7%.
However, housing finance company HDFC rose 0.8%. Shares of Cipla, ONGC and Wipro were up around 1%-2%.
The BSE Sensex and NSE Nifty remained flat as the Reserve Bank of India kept policy rates and cash reserve ratio unchanged in the first quarter monetary policy review. The central bank cut statutory liquidity ratio to 23% from 24% w.e.f. August 11. However, the bank raised inflation forecast to 7% from 6.5% for the financial year 2012-13.
The BSE benchmark declined 28 points to 17,115.83 and the NSE benchmark went down 8.55 points to 5,191.25.
Country's largest lenders State Bank of India and ICICI Bank were down 1.3% and 0.44%, respectively. Private sector lender HDFC Bank slipped 0.75%.
Rate sensitives too were under pressure due to no rate cut. Auto stocks like Tata Motors, M&M and Hero Motocorp plummeted 0.7%-1.5%.
Capital goods majors Larsen & Toubro and BHEL lost 0.3% and 0.9%, respectively.
Top telecom operator Bharti Airtel extended fall, losing more than 3%. Index heavyweight Reliance Industries slipped 0.3%.
Metals stocks like Tata Steel, Hindalco Industries and Jindal Steel were down 0.7-1.2%.
However, cigarette major ITC, housing finance company HDFC and state-owned oil & gas producer gained 0.8% each.
Drug producer Cipla shot up 2.4% and software services exporter Wipro surged 1.5%.
On the National Stock Exchange, decliners outnumbered advancers by 718 to 565 shares.
Indian equity benchmarks were consolidating at around previous closing values as they need a trigger to take two-day rally further from here on. Trigger may be from the Reserve Bank of India; from which majority of experts don't expect cut in policy rates and cash reserve ratio, but few analysts still feel the RBI may cut repo rate by 25 basis points.
Ajay Srivastava, CEO, Dimensions Consulting, says that the market is not expecting any policy action today from the RBI.
Globally every market is waiting for decision from the Federal Reserve's meet (which will begin today) and European Central Bank's meet (which will be on Thursday). Experts expect some strong policy measures from both to give a boost to sluggish economies.
Back home, the BSE benchmark fell just 0.92 points to 17,142.76 and the NSE benchmark declined 4 points to 5,195.70.
Cigarette major ITC and state-owned oil & gas producer ONGC gained 1% each. Drug producer Cipla rallied 2.5% ahead of first quarter numbers today.
Housing finance company HDFC and utility vehicle maker M&M were up 0.5% each.
Software services exporters TCS and Wipro went up 0.55% and 1.75%, respectively while their rival Infosys was down 0.4%.
Telecom operator Bharti Airtel topped the selling list, losing more than 2%. Two-wheeler majors Hero Motocorp and Bajaj Auto lost 1%-1.5% while commercial vehicle make Tata Motors declined 0.9%.
Country's largest lender State Bank of India went down 1% while its rival ICICI Bank was down just 0.2%.
State-owned power equipment manufacturer BHEL and engineering and construction major Larsen & Toubro were down 0.8% and 0.2%, respectively.
The BSE Sensex and NSE Nifty opened with marginal gains on Tuesday following positive Asian cues. The market was consolidating at current levels after 500 points rally on the Sensex in previous two sessions.
The BSE benchmark rose 37 points to 17,180.92 and the NSE benchmark gained 7 points at 5,207.05.
Overall the market is waiting for the RBI's quarterly monetary policy review today at 11 hours IST. Majority of experts don't expect any rate cut.
Asian markets were trading higher ahead of policy announcements by European Central Bank and Federal Reserve this week. Hang Seng, Nikkei, Kospi and Taiwan Weighted gained 0.5%-1.4% while Shanghai and Straits Times were flat.
Among frontliners, Wipro, TCS, Sterlite, Cairn, Sesa Goa, Hindalco, JP Associates, Cipla (ahead of Q1 numbers), DLF, ONGC, ICICI Bank, ITC, Axis Bank, Reliance Industries and GAIL were trading higher in early trade.
However, Bank of Baroda, SBI, BPCL, BHEL, Infosys, IDFC and HUL were under pressure.
The CNX Midcap Index was up 9 points at 7,149. About two shares advanced for every share declining on the National Stock Exchange.
In the second line shares, Firstsource Solutions shot up 8% and Hexaware Tech gained 2% after good numbers in the June quarter.
Prestige Estates rose 3%, PTC India went up 1.5% and JK Tyre rallied 6% after better than expected numbers in the first quarter of FY13.
United Spirits added another 2% today. Kingfisher gained 1.5%.
IRB Infra, GVK Power and IVRCL saw follow-on buying today.
Ahead of Q1 results, Titan Industries moved up 0.7% while Petronet LNG was down 0.4%.
SKS Microfinance and Indiabulls Real went down 1-1.5%. Deccan Chronicle tanked 5% as promoters pledged 14.5% stake of company to Religare Finvest.