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

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 

Sock Market LIVE: The Nifty 50 index recovered more than 70 points, but remained in the negative territory. As of 10:27 AM, the index was down 99 points or 0.44 per cent at 22,677. 

 

RBI MPC LIVE: RBI Governor Sanjay Malhotra said that FPI recorded a net outflow of $10.3 billion during the period from this year till Oct 5

 

RBI MPC LIVE: RBI Governor Sanjay Malhotra said that the central bank will constitute a consultative committee for financial markets; it will be a forum of structured engagement with mkt participants and operational matters related to financial markets