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Sanjeev Prasad, senior executive director and co-head of institutional equities at Kotak Securities on RBI’s 25 basis points rate hike.
Addressing the media after monetary policy meet, RBI governor Urjit Patel said inflation pressures have risen in key advanced and emerging economies.
Key highlights from the media briefing:
Reserve Bank of India's monetary policy committee raised repo rate by 25 basis points to 6.25 percent from 6.00 percent while maintaining the neutral stance.
RBI in the policy document said:
Infosys does not have a plan for large expansion in China, Infosys CEO Salil Parekh said on the sidelines of Morgan Stanley conference in Mumbai.
Key highlights from Morgan Stanley conference:
Shares of the Mumbai-based electrical power equipment maker rose as much as 4.5 percent to Rs 58.15 after it won an order worth Rs 319 crore from Indian Railways.
CG Power and Industrial Solutions bagged an order to supply Under Slung Electrics for Diesel Electric Tower Car.
Shares of the Mumbai-based construction company rose as much as 6.7 percent, the most in a week, to Rs 15.10.
Hindustan Construction Company in a joint venture with MAX Group has been awarded Rs 737 crore contract by Russia's State Nuclear Company, JSC Atomstroyexport, for civil works of Turbine Island for Unit 1 of Rooppur Nuclear Power Plant in Bangladesh.
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Expect mid- and small-cap shares to underperform frontline indices, Gautam Chhaochharia, head of India research at UBS, told BloombergQuint in an interview.
Key highlights of the conversation:
Shares of the Hyderabad-based chemical maker rose as much as 5 percent to Rs 211 on the back of heavy volumes.
As many as 7.44 lakh shares changed hands on the BSE compared with an average of 3.61 lakh shares traded daily in the past two weeks.
The company was part of a list of shares that was placed under the additional surveillance mechanism by the Bombay Stock Exchange.
Shares of the debt-ridden steel producer rose as much as 4.42 percent to Rs 1.18.
Electrosteel Steels spelled out steps to be taken for completion of its takeover by Vedanta Star and subsequent delisting from stock exchanges.
Since the liquidation value of the company as determined by the Resolution Professional is not sufficient to cover the debt of financial creditors in full, hence the liquidation value of the company in the hands of equity shareholder is nil, the company said in an exchange filing.
"On completion of Transaction Steps, Vedanta Star will make the delisting offer to the then shareholders of the company. The equivalent per share exit price post completion of Transaction Steps is Rs 9.54 per equity share (Post-capital Reduction Price)," Electrosteel Steels added.
Buyers and sellers were not immediately known
Source: Bloomberg
Shares of the Delhi-based real estate developer rose as much as 5.11 percent to Rs 180.95 after the company purchased its own shares in yesterday's session.
Indiabulls Real Estate bought 27 lakh shares or 0.6 percent equity at Rs 175.58 per share.
Shares of the Kota-based educational service provider fell as much as 2.71 percent to Rs 96.95 after KIFS Enterprises sold 1 lakh shares or 0.6 percent equity at Rs 102.64 each.
Shares of the Kolkata-based tea cultivator rose as much as 1.94 percent to Rs 136.75 after it decided to dispose of certain tea estates in Assam.
The company decided to dispose of Beesakopie Tea Estate, Raidang Tea Estate, Daimukhia Tea Estate, Samdang Tea Estate, Baghjan Tea Estate, Bordubi Tea Estate, Koomsong Tea Estate and Phillobari Tea Estate in Assam to M K Shah Exports for Rs 331 crore.
Shares of the Bengaluru-based liquor maker fell 1.23 percent to Rs 3,210 after shareholders' of the company approved a proposal to split shares of the company.
The shareholders of the company approved a proposal to split the stock in ratio of five stocks for every one share held by sub dividing the face value from Rs 10 to Rs 5.
Additional surveillance measure (ASM) is a move in the right direction and market participants are nervous about stocks in the ASM framework, Deven Choksey of KR Choksey Securities told BloombergQuint in an interview.
Key highlights of the conversation:
All eyes will be on the interest rates decision at 2:30 p.m. today with the rate call too close to call.
While 29 of the 43 economists polled in Bloomberg Survey expect no change, markets are expecting a 25-basis point rate hike.
The focus will be on RBI Governor Urjit Patel, who heads the six-member monetary policy committee. Viral Acharya, the deputy governor in charge of monetary policy, is set to vote for a ‘withdrawal of accommodation’ as he joins uber hawk Michael Patra, who heads the RBI’s research department, in preparing markets for a rate hike.
According to ICICI Securities Primary Dealership, the repo rate should be gradually raised to keep inflation expectations in check and maintain financial stability. The firm expects a 25-basis point hike in August and a total of 50-basis points raise in FY 2019.
The 10-year benchmark bond yield fell 4 basis points on Tuesday to end at 7.83 percent, declining for the first day in six.
Meanwhile, implied forwards suggest that the rupee will open at 67.09 per dollar, having lost some ground on Tuesday to end at 67.15. If the RBI does hike rates, the rupee could post gains later in the day, traders said.
The monetary policy committee concludes its three-day meeting today. While a majority of economists are still forecasting a status quo in the policy rate, some are expecting the rate hiking cycle to begin in June. Here’s the policy-day guide.
Here are more talking points:
(As reported on June 5)
HCL Technologies
India Energy Exchange
Lakshmi Vilas Bank
Career Point
Indiabulls Real Estate
Fuel price cut for eighth straight day. ⛽️ pic.twitter.com/InwrBcCioC
— BloombergQuint (@BloombergQuint) June 6, 2018
Is the bull market over? Not yet, says Morgan Stanley's Ridham Desai (@rndx1)https://t.co/LL9qgb71Cn pic.twitter.com/4PQljBuDbz
— BloombergQuint (@BloombergQuint) June 5, 2018
Donald Trump and Kim Jong Un to meet on Singapore’s Sentosa Island resort.https://t.co/D1Eh18WKhE pic.twitter.com/wF4Rj1VR34
— BloombergQuint (@BloombergQuint) June 5, 2018
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