[ad_1]
Shares of rate sensitive sectors like financials including banks, non-banking finance companies (NBFCs), housing finance companies (HFCs) and insurance companies, along with automobiles and real estate traded firm after the Reserve Bank of India (RBI) hiked repo rate by 50 basis points to 5.4 per cent, while retained real gross domestic product (GDP) growth rate at 7.2 per cent for the current financial year 2022-23 (FY23).
At 10:38 am, Nifty Bank, Nifty Financial Services, Nifty PSU Bank, Nifty Private Bank, and Nifty Realty indices were up in the range of 0.45 per cent to 1 per cent. In comparison, the benchmark Nifty 50 index was up 0.33 per cent on the National Stock Exchange (NSE).
Nifty Auto index, however, was down 0.20 per cent, due to sharp decline in market price of Balkrishna Industries (down 6.5 per cent) on account of weak margin performance in June quarter. TVS Motor, Escorts, Bosch, Tata Motors, Mahindra & Mahindra and Tube Investments of India from the index traded in the green on the NSE.
Among individual stocks, ICICI Prudential Life Insurance Company, Cholamandalam Investment and Finance Company, Muthoot Finance, ICICI Bank, HDFC Life Insurance, Axis Bank, State Bank of India, Bank of India and Union Bank of India traded up to 3 per cent higher.
Meanwhile, Sobha, Macrotech Developers, DLF, Indiabulls Real Estate and Prestige Estate Projects from the real estate pack were up in the range of 1 per cent to 2 per cent on the NSE.
On Friday, the six-member Monetary Policy Committee of the RBI decided to hike the repo rate by 50 basis points to 5.4 per cent, crossing the pre-pandemic level of 5.15 per cent. “MPC decided to focus on withdrawal of accommodation to keep inflation within target while supporting growth,” RBI Governor said in his statement. CLICK HERE FOR DETAILS
As regards growth, the governor said that rural consumption is expected to benefit from the brightening agricultural prospects. “The demand for contact-intensive services and the improvement in business and consumer sentiment should bolster discretionary spending and urban consumption. Investment activity is expected to get support from the government’s capex push, improving bank credit and rising capacity utilization,” the RBI said.
Firms polled in the Reserve Bank’s industrial outlook survey expect sequential expansion in production volumes and new orders in second quarter of FY23 (Q2FY23), which is likely to sustain through Q4, the RBI said.
“The MPC decisions have been in line with our expectations. Given the increasing external sector imbalances and global uncertainties the need for frontloaded action was imperative. We continue to see 5.75 per cent repo rate by Dec 2022,” said Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
[ad_2]
Source link
