Sensex, Nifty Gain For Third Straight Day Buoyed By RBI Rate Cut

Closing Bell

Indian shares continued to gain for a third straight day led by Oil and Gas stocks like ONGC and GAIL that were the top gainers on the Nifty.

The S&P BSE Sensex gained 0.3 percent to 28,334 while the NSE Nifty too advanced 0.4 percent to close above the 8,750 mark at 8,769.

Among sectoral indices, the telecom index gained 1.44 percent while the Industrial index was the top loser, ending lower by 0.79 percent. The PSU Bank index closed at the day’s high, gaining 1.81 percent buoyed by a 25 bps rate cut from the RBI's new Monetary Policy Committee.

Closing Bell

Indian shares continued to gain for a third straight day led by Oil and Gas stocks like ONGC and GAIL that were the top gainers on the Nifty.

The S&P BSE Sensex gained 0.3 percent to 28,334 while the NSE Nifty too advanced 0.4 percent to close above the 8,750 mark at 8,769.

Among sectoral indices, the telecom index gained 1.44 percent while the Industrial index was the top loser, ending lower by 0.79 percent. The PSU Bank index closed at the day’s high, gaining 1.81 percent buoyed by a 25 bps rate cut from the RBI's new Monetary Policy Committee.

RBI Governor: Will Help Banks Fight Bad Loan Menance

Speaking at his first policy as RBI Governor, Urjit Patel maintained the RBI view that fighting the NPA issue is of utmost importance and that the central bank is committed to help banks tackle the same.

RBI Governor: Will Help Banks Fight Bad Loan Menance

Speaking at his first policy as RBI Governor, Urjit Patel maintained the RBI view that fighting the NPA issue is of utmost importance and that the central bank is committed to help banks tackle the same.

RBI Cuts Repo Rate By 25 Bps

Indian shares climbed higher after the Reserve Bank of India reduced repo rates by 25 basis points, citing easing inflationary trends.

The decision is consistent with the accommodative stance of monetary policy with an objective of bringing down consumer price inflation to 5 percent by the fourth quarter of 2016-17, said the RBI. (Read the full report HERE)

#RBIPolicy | @RBI cuts repo rate by 25 basis points to 6.25%, reports @alexandermats. https://t.co/BxZXwh15vZ pic.twitter.com/OgXjgmHetX

— BloombergQuint (@BloombergQuint) October 4, 2016

RBI Cuts Repo Rate By 25 Bps

Indian shares climbed higher after the Reserve Bank of India reduced repo rates by 25 basis points, citing easing inflationary trends.

The decision is consistent with the accommodative stance of monetary policy with an objective of bringing down consumer price inflation to 5 percent by the fourth quarter of 2016-17, said the RBI. (Read the full report HERE)

#RBIPolicy | @RBI cuts repo rate by 25 basis points to 6.25%, reports @alexandermats. https://t.co/BxZXwh15vZ pic.twitter.com/OgXjgmHetX

— BloombergQuint (@BloombergQuint) October 4, 2016

Bond Yields Jump, Rupee Strengthens

RBI Cuts Repo Rate By 25 Bps

Indian shares climbed higher after the Reserve Bank of India reduced repo rates by 25 basis points, citing easing inflationary trends.

The decision is consistent with the accommodative stance of monetary policy with an objective of bringing down consumer price inflation to 5 percent by the fourth quarter of 2016-17, said the RBI. (Read the full report HERE)

#RBIPolicy | @RBI cuts repo rate by 25 basis points to 6.25%, reports @alexandermats. https://t.co/BxZXwh15vZ pic.twitter.com/OgXjgmHetX

— BloombergQuint (@BloombergQuint) October 4, 2016

RBI Cuts Repo Rate By 25 Bps

Indian shares climbed higher after the Reserve Bank of India reduced repo rates by 25 basis points, citing easing inflationary trends.

The decision is consistent with the accommodative stance of monetary policy with an objective of bringing down consumer price inflation to 5 percent by the fourth quarter of 2016-17, said the RBI. (Read the full report HERE)

#RBIPolicy | @RBI cuts repo rate by 25 basis points to 6.25%, reports @alexandermats. https://t.co/BxZXwh15vZ pic.twitter.com/OgXjgmHetX

— BloombergQuint (@BloombergQuint) October 4, 2016

Bond Yields Jump, Rupee Strengthens

Investors Hold Their Breath Ahead of RBI Announcement

Indian shares are little changed as investors hold their breath ahead of the RBI monetary policy to be announced in the next couple of minutes or so.

Investors Hold Their Breath Ahead of RBI Announcement

Indian shares are little changed as investors hold their breath ahead of the RBI monetary policy to be announced in the next couple of minutes or so.

“RBI Status Quo to Be a Dampener”

“The market is holding out for a 25-basis point cut and that is in the price,” C.A. Rudramurthy B.V., head of research at Vachana Investments Pvt., told Bloomberg News in a telephonic conversation. “The status quo will damp sentiment because inflation has cooled down substantially, and with a good monsoon it is likely to trend even lower."

Tune in to LIVE coverage of Urjit Patel's first #RBIPolicy review with @dugalira, @alexandermats and @menakadoshi from 2:15 pm. pic.twitter.com/ufBtkiCAps

— BloombergQuint (@BloombergQuint) October 4, 2016

MCX Snaps 6-Day Winning Streak

Shares of the commodity exchange dropped as much as 2.4 percent, halting a six-day winning streak. The stock has gained over 45 percent this month.

According to a Mint report, Sebi has asked the exchange to conduct an inquiry into allegations that its warehousing service provider (WSP) traded in mentha oil, a commodity that is warehoused in its premises, which can be termed as market manipulation.

Also Read: MCX Looks To Launch Options Trading In January-March Quarter

HPL Electric & Power Lists At 6% Discount To Issue Price

The electric equipment maker debuted at Rs 189 per share, a 6.4 percent discount to the issue price of Rs 202.

Its Rs 361 crore initial public offer was subscribed nearly eight times. The portion reserved for qualified institutional bidders was subscribed 5.77 times while the non-institutional portion saw demand for 22.2 times the shares on offer, according to data available on the National Stock Exchange.

The demand in the retail portion was subdued in comparison at 2.4 times. The company raised Rs 108 crore from anchor investors by selling shares at Rs 202 per share.

Movers & Shakers: Wockhardt, Piramal Enterprises, Hero MotoCorp And More

Opening Bell

Indian shares climbed for a third day led once again by automakers while lenders recouped their opening losses as investors awaited the Reserve Bank of India’s commentary on the economy.

The S&P BSE rose as much 0.5 percent to 28,380 while the NSE Nifty gained 0.4 percent to 8,775. The market breadth was encouraging at 1109 advances, 352 declines and 384 stocks remaining unchanged.

Opening Bell

Indian shares climbed for a third day led once again by automakers while lenders recouped their opening losses as investors awaited the Reserve Bank of India’s commentary on the economy.

The S&P BSE rose as much 0.5 percent to 28,380 while the NSE Nifty gained 0.4 percent to 8,775. The market breadth was encouraging at 1109 advances, 352 declines and 384 stocks remaining unchanged.

Also Read: Stocks Glitter More Than Gold in India as Mutual Fund Flows Soar

Stocks to Watch

• Hero Motocorp: Records highest-ever sales in a month by selling 6.74 lakh units in September
• Indian Oil Corp.: To stop naphtha exports as Paradip gasoline output starts
• Wockhardt: U.S. Food and Drug Administration (USFDA ) excluded the product Ceftriazone Sodium from import alert.
• Motilal Oswal: Starts India International Fund aimed at global investors
• Va Tech Wabag: Founder Amit Sengupta leaves company
• Apollo Hospitals to consider issue of NCDs on private placement
• Bombay Burmah Trading Corp. to consider raising of funds
• Axis Bank: Sells Essar Steels debt worth Rs 1,000 crore, at 50 percent discount to book value. (Financial Express)
• Sun Pharma: Plans to sell products online after tying up with Nykaa. (Business Standard)
• MCX: Looks to launch options trading in Q4FY17. (Financial Express)
• InterGlobe Aviation: Approaches buyout firms for a deal as InterGlobe Tech looks to sell major stake. (Economic Times)

Indian two-wheeler manufacturers saw mixed sales performance for the month of September. https://t.co/DVU392kvi2

— BloombergQuint (@BloombergQuint) October 3, 2016

New Listing

• HPL Electric & Power share listing on NSE/BSE after IPO got 8.06 times demand at Rs 202 each

Birla sees India raid bringing stock prices to attractive levels https://t.co/6XVBeC6yNh pic.twitter.com/eRpqD2zlnh

— BloombergQuint (@BloombergQuint) October 3, 2016

Also Read: Pimco Trims India Bond Holdings as Economists Split on RBI

Talking Points

• India revises foreign investment caps in federal, state bonds
• India releases sustainable urban development plan for 20 years
• India sets general PF interest rate at percent October-December.

Good money chasing bad assets, reports @alexandermatshttps://t.co/UcpSujJDdy

— BloombergQuint (@BloombergQuint) October 3, 2016

• India spectrum bids reach Rs 56,792 crore on second day of auction, official says

• Transocean sees $160 million for early termination of Reliance contract
• India ceasefire violation threatens regional peace: Pakistan leaders

Slower second dayhttps://t.co/5uQFXTax6V

— BloombergQuint (@BloombergQuint) October 3, 2016

• Global funds buy Rs 34.22 crore of local stocks; domestic funds buy Rs 198 crore yesterday: Provisional data
• India’s Karnataka state agrees to release water to neighboring Tamil Nadu (CNBC-TV18)

Ajay Piramal and 4 others to pay Rs 6 lakh in penalties reports @PayaswiniLLBhttps://t.co/8gVE8J6Aha

— the fineprint. (@BQthefineprint) October 3, 2016

All Eyes on the RBI

Urjit Patel, the 24th governor of the Reserve Bank of India, will present his first monetary policy review on Tuesday. The policy decision, to be released at 2.30pm, will also be the first to be taken by the Monetary Policy Committee.

Since the market is still trying to assess the leanings of both Patel and the MPC, economists are split between whether the RBI will cut rates now or later.

Four of 10 respondents in a poll conducted by BloombergQuint indicated that they expect the central bank to cut the repo rate by 25 basis points to 6.25 percent.

Insight: What Brokerage Houses Expect From The RBI Monetary Policy Review

Join @dugalira @alexandermats @menakadoshi tomorrow for #RBIPolicy LIVE coverage through the day on @BloombergQuint's FB page. pic.twitter.com/tt5zCt2RIg

— BloombergQuint (@BloombergQuint) October 3, 2016

Also Read: Three Charts That Make It A Less Than Perfect Start For Urjit Patel

.@BloombergQuint brings you the latest on @RBI Governor Urjit Patel's first monetary policy review ⚡️ https://t.co/eBXzhruO3a

— BloombergQuint (@BloombergQuint) October 3, 2016

Good Morning!

The Nifty Futures on the Singapore Exchange, an early indicator of Nifty performance in India, was little changed at 8,780.

U.S. shares retreated on Monday, as concerns over Deutsche Bank’s financial condition and the U.K.’s plan for exiting the European Union outweighed stronger-than-expected manufacturing data.

US manufacturing expansion raises Fed rate hike fears. US markets end lower, Asia opens mixed. https://t.co/5f2IYn0f1U pic.twitter.com/IiqMLWNhTX

— BloombergQuint (@BloombergQuint) October 4, 2016

American manufacturing expanded in September after unexpectedly shrinking in the previous month, fueling confidence in a recovery that is key to determining the Fed’s path toward higher interest rates. The probability of a U.S. rate hike by December rose to 61 percent, up 10 percentage points from a week earlier, futures show.

A jobs report due later this week is forecast to show a pickup in the pace of hiring and will help shape expectations for U.S. monetary policy.

Most Asian stocks rose this morning, with Japanese shares rallying as the yen weakened. Oil halted four days of gains, holding near the highest close in three months before data forecast to show U.S. crude stockpiles expanded.

Markets in mainland China are closed all week for holidays.

PM Theresa May leaves #Brexit questions unresolved after setting trigger https://t.co/yI0wvt5yLH @EddieBuckle pic.twitter.com/wnCcfbnPqQ

— BloombergQuint (@BloombergQuint) October 3, 2016