The benchmark indices were off day's high but still trading in the positive territory in the afternoon session on Thursday. Earlier, the Reserve Bank of India (RBI) kept the repo rate unchanged at 4 per cent in its second bi-monthly monetary policy meeting for FY21. It maintained the stance as 'accommodative'. Further, It kept the reverse repo rate unchanged at 3.35 per cent.
The RBI sees real GDP growth for FY21 as negative, governor Shaktikanta Das said.
The S&P BSE Sensex was trading over 200 points higher at 37,892 levels while NSE's Nifty was ruling at 11,175, up 73 points.
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03:44 PM
Stocks that supported Sensex's 360 pts-rally
03:43 PM
Sectoral trends on NSE at Close
03:39 PM
Sensex Heatmap at Close
03:37 PM
Closing Bell
>> Benchmark S&P BSE Sensex index settled the day at 38,025 level, rallying 362 points or 0.96 per cent. The index hit an intra-day high of 38,221.
>> The broader Nifty50, meanwhile, ended at the psychological level of 11,200, up 99 points or 0.89 per cent. The index hit an intra-day high of 11,257.
03:33 PM
COMMENT ON RBI POLICY :: Niranjan Hiranandani, President, Assocham
A Positive step by Reserve Bank of India to pay heed to India Inc’s long pending demand of Onetime restructuring of loans without classifying them as NPAs, by setting up an expert committee steered by KV Kamath. Opening up the window for restructuring of loans to companies, individuals and MSME under mandated safeguards grants breather to the liquidity strapped industry. A flexible repayment scheme under the new resolution framework shall bring in the much-needed relief to resume operations smoothly.
03:28 PM
Valuation drop, legal complications likely to hit HDIL's sale prospects
Real estate major HDIL may find good offers hard to come by, given the slump in the real estate sector, litigation woes, and arrest of its promoters. The Mumbai-based firm had earlier attracted attention from top players like Adani Properties, SunTeck Realty, and Suraksha Asset Reconstruction Company (owned by the Dilip Shanghvi family). READ MORE
03:25 PM
INDEX GAINER:: Infosys surges 3%
03:18 PM
MARKET CHECK:: BSE Healthcare index up 1%
03:09 PM
Steel Strips Wheels bags manufacturing orders worth $2,09,000 for US market
Steel Strips Wheels Ltd (SSWL) said the orders are worth $2,09,000. It said similar orders are expected in times to come from other regular customers as the market remains normalcy.
"This will support further ramping up of production at Chennai steel wheels plant," it added. READ MORE
02:59 PM
COMMENT ON RBI POLICY :: Dhiraj Relli, MD & CEO, HDFC Securities
The outcome of MPC of RBI’s meeting was on expected lines. Additional special liquidity facility to NHB and NABARD to help the housing sector and agriculture/rural activities is welcome. However, raising of LTV on gold loans to 90% from 75% may have some delayed impact as lenders may be wary of lending upto 90% after Gold prices have already run up too much over the past few months.
Key provision of restructuring of loans to borrowers who were not in default on March 01 through recommendation of KV Kamath committee cannot have come sooner. The committee’s recommendations will enable ensuring prudent entry norms, clearly defined boundary conditions, specific binding 10 covenants, independent validation and strict post-implementation performance monitoring. Mention of outer limit of 2 years for the resolution and raising the provision limits to 20% for lenders not signing inter-creditor agreement will help speeden the resolution process and maintain the soundness of the banking system.
Overall the outcome of MPC meet this time around is prudent, to the point and meets the current requirements of the lending community though the borrowers may want something more. What will be crucial to watch is the challenges faced by the committee in making its recommendations considering the viewpoints of the parties involved and ensuring the success of the plan.
02:52 PM
India must look beyond what rating agencies think, says Raghuram Rajan
Former Reserve Bank of India governor Raghuram Rajan said on Thursday that overly focusing on what sovereign rating agencies think can take one's eyes off what needs to be done for the economy. "It is also important to convince both domestic and international investors that after the crisis associated with the pandemic is over, we will return to fiscal responsibility over the medium term, and the government should do more to convince them of that," Rajan told the Global Markets Forum.
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