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August 07, 2019 / 03:39 PM IST

Closing Bell: Nifty ends below 10,900, Sensex falls 286 pts post rate cut; auto, banks underperform

The Sensex was down 286.35 points at 36,690.50, while Nifty was down 92.80 points at 10,855.50.

  • IndexPricesChangeChange%
    Sensex62,821.43316.63 +0.51%
    Nifty 5018,655.2592.50 +0.50%
    Nifty Bank43,165.85145.40 +0.34%
    Nifty 50 18,655.25 92.50 (0.50%)
    Tue, Nov 29, 2022
    Biggest GainerPricesChangeChange%
    HUL2,614.0088.80 +3.52%
    Biggest LoserPricesChangeChange%
    Bajaj Finserv1,634.65-18.20 -1.10%
    Best SectorPricesChangeChange%
    Nifty FMCG45074.00822.90 +1.86%
    Worst SectorPricesChangeChange%
    Nifty Midcap 10031709.30-109.60 -0.34%


  • August 07, 2019 / 04:07 PM IST

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  • August 07, 2019 / 06:23 PM IST

  • August 07, 2019 / 05:38 PM IST

    Expert's Take on RBI Policy

    “RBI today announced an unconventional cut in repo rate by 35 basis points. We expected a 25 basis point cut in Repo with inflation risks benign, pick up in monsoon in recent weeks and growth slowing down. We didn’t think a 50 basis point cut would cut through as RBI would take cognizance of currency depreciation, global trade war escalation and the need to maintain rate differentials with US bond yields. In hindsight, this unconventional 35 basis points cut should have been seen coming, after RBI’s statement in its last policy meet to do away with 25bps norm. Equities, however hasn’t risen post the policy announcement, as a 50 basis points cut was priced in the market," Amar Ambani, President & Research Head, Institutional Equities, YES Securities said.

    Going forward, he believes that scope for another 25 basis points cut is available to the MPC in 2019 itself.

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  • August 07, 2019 / 04:43 PM IST

    Suzlon Energy clarified on bondholders plans to take legal action over default:

    The company is neither aware of any action being contemplated by the bondholders nor can comment upon the intentions of the bondholders. The Company has also not received any communication in this regard

    The company continues to work on holistic solution for its debt and is in discussions with various stakeholders in relation to its outstanding debt including the Bonds.

  • August 07, 2019 / 04:38 PM IST

    HCL Technologies Q1 profit falls 13%:

    Software services company HCL Technologies has reported a 13 percent sequential decline in June quarter (Q1) profit at Rs 2,220 crore, dented by operating income, but maintained full year revenue growth guidance.

    The profit in previous quarter was Rs 2,568 crore. The year-on-year profit degrowth was 7.6 percent.

    Revenue was ahead of estimates at Rs 16,425 crore in quarter ended June 2019, growing 2.7 percent sequentially and 18.7 percent year-on-year, the company said in its BSE filing.

    Revenue in dollar terms increased 3.8 percent quarter-on-quarter (15 percent YoY) to $2,364 million and the same in constant currency grew by 4.2 percent QoQ (up 17 percent YoY).

    "We have started FY20 on a very strong note with quarterly revenue growth of 4.2 percent QoQ and 17 percent YoY in constant currency. With our current momentum, we aspire to register an industry leading organic growth in FY20," C Vijayakumar, President & CEO said.

  • August 07, 2019 / 04:31 PM IST

    Murthy Nagarajan, Head-Fixed Income, Tata Mutual Fund

    RBI took the unusual step of reducing the repo rate by 35 basis points. The repo rate now is 5.4 %. They have also reduced the GDP growth forecast to 6.9 % from 7 % levels. The reason for cutting repo rates is increase the output in the economy, as per RBI, the economy is running significant slack due to consumption and investment slowdown.

    As per RBI , the one year forward  CPI inflation is forecast at 3.6 %. Given the current repo rates of 5.4 %, the real rates is around 1.8 % (5.4- 3.6)  levels which is on the higher side. As per our view, GDP growth will face significant headwinds due to global uncertainty and high debt of corporates. We feel deeper cuts in policy rates are required to tackle GDP slowdown. 

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  • August 07, 2019 / 03:51 PM IST

    Sahaj Agarwal, Head of Derivatives, Kotak Securities on Nifty:
     
    Nifty has broken strong support levels of 11,000 and continues to remain under pressure. With the dollar weakening and global markets being under pressure expect volatility to remain high. On the downside support is seen at 10,600/10,830.

    Expect consolidation in the near term before market decides its further course of action. IT and select consumption stocks trade with a positive bias while Metal and PSU Banking remain under significant pressure.

  • August 07, 2019 / 03:45 PM IST

    Dhiraj Relli, MD & CEO, HDFC Securities:

    The RBI monetary policy committee's decision of an unconventional 35 bps rate cut speaks about its intent of cutting rates more than the usual 25bps but less than the 50 bps which it termed as excessive. This however induces some uncertainty in market expectations on the quantum of rate changes expected henceforth.

    The overall tone of the monetary policy was dovish with slowing growth - both on the global and domestic front - being a major concern. ‘Cyclical slowdown in growth’ as RBI governor mentioned - has been the primary driving factor for rate cuts as seen in the past few MPC decision.