Get App
Benchmark equity indices ended lower during a volatile session after RBI raised repo rate by 50 bps to fight rising inflation. Select index heavyweights fell in the second half of the day to push the indices in the red. The Sensex fell 0.39% and the Nifty was down 0.37%.
In broader markets, Midcap 100 fell 0.48% and BSE Smallcap was down 0.33%.
Top Nifty sectoral gainers were Realty [1.89%], Media [1.49%], PSU Bank [0.71%], IT [0.41%] and Pharma [0.31%]. Top losers were FMCG [-1.05%], Energy [-0.48%] and Private Bank [-0.43%].
Indian rupee inched down to 77.73 against the dollar on Wednesday.
The Monetary Policy Committee of the RBI voted unanimously to remain focused on withdrawal of accommodation and raised the repo rate by 50 basis points. After this increase, the repo rate stood at 4.9%.
The RBI has retained real GDP growth forecast for FY23 at 7.2%. Further, the forecast for the four quarters of FY23 are as follows: Q1 at 16.2%, Q2 at 6.2%, Q3 at 4.1%, Q4 at 4%.
Meanwhile, inflation is now projected at 6.7% in FY23. Inflation is seen at 7.5% in Q1FY23, 7.4% in Q2, 6.2% in Q3, and 5.8% in Q4.
Stock in News Today
YES Bank: The lender has initiated a process to set up alternate board after the bank has achieved significant progress in implementation of reconstruction scheme. The alternate board will operate under applicable laws and regulations as opposed to current board which operates under the ambit of the reconstruction scheme. It will conduct an Annual General Meeting on July 15 to consider relevant resolutions.
Ujjivan Small Finance Bank: The lender has approved the proposal to raise funds up to Rs 1,500 crore by way is issuance of non-convertible debt securities on a private placement basis, within one year from the date of seeking shareholders’ approval.The company will seek shareholders’ approval through a postal ballot in the coming weeks.
Real Estate Companies: Shares of real estate companies gained after RBI increased the threshold of cooperative banks which can lend to individuals for buying homes. RBI governor Shaktikanta Das said that the limit for individual housing loans being extended by urban cooperative banks and district cooperative banks are being revised by over 100%. The move is done to ensure better flow of credit to the housing sector.
Rural cooperative banks have been permitted to extend finance to commercial real estate-residential housing, with in the existing housing finance limit of 5% of total assets.
Lupin: The company received tentative approval from the US FDA to market Ivacaftor Tablets, 150 mg that is used to treat specific types of cystic fibrosis, a hereditary disease that causes problems with breathing, digestion and reproduction in adults. The drug is a generic equivalent of Kalydeco tablets, 150 mg of Vertex Pharmaceuticals and will be manufactured at Lupin’s Nagpur facility.
Ramkrishna Forgings: The company received an export order worth Rs 115 crore over the period of four years from a European Tier 1 supplier. The order pertains to new differential housing case business.
Bata India: Shares of the company continued its fall and closed 2.72% lower after the promoter divested nearly 3% stake in the company through open market last week. The company’ shares have fallen 5.6% this week.
ITD Cementation India: The company received Letter of Intent and notice to proceed for execution of civil and associated works on EPC basis to construct six lane Greenfield Expressway in Uttar Pradesh. The project is valued at Rs 4,850 crore.