Sensex Today | Share Market Live Updates: Sensex up 300 pts, Nifty near 21K; IT stocks, banks rise, auto under pressure

No significant surprise in the RBI’s decision to persist with existing policy rates. Although the stance remains ‘withdrawal of accommodation’, the RBI governor also cautioned against the ‘risk of over-tightening’, which is implicitly a more balanced stance. The MPC remains focused on bringing headline CPI inflation towards 4% YoY, and particularly vigilant about the risk of a renewed spurt in vegetable inflation in Nov-Dec’23. We are more optimistic about growth (we were forecasting 7.2% growth for FY24 from the start of the fiscal year, revised it up to 7.6% in Oct’23, and recently revised that up to 7.9% this month after the release of the Q2FY24 real GDP growth numbers), so we welcome the upward revision of the RBI’s forecast for FY24 to 7%.

We believe that the central bank has done its job well in controlling the inflation and bring it below 5%, though more work needs to done to have inflation in the guided range of 2-4%. We believe that food inflation is still a concern to further lower the inflation trajectory and the RBI will remain watchful on the same. However, it was surprising that though the RBI increased the risk weights to keep control over unsecured loans but kept at bay any measures to lift the affordable housing market which is impacted due to high cost of funds. Going forward, we believe that the central bank would keep the key rate unchanged until the end of 1QFY25 as the earlier rate actions are still working through the economy.

Yields on government bonds were in a tight range on Friday, Reserve Bank of India’s monetary policy decision sprung no surprises.

The central bank’s rate setting panel kept key policy rates unchanged, with inflation control staying as the major focus amid expectations of a spike in food prices in coming months and better than expected economic growth.

The 10-year benchmark bond yield was at 7.2375%, after ending the previous session at 7.2382%. 

Housing finance company India Shelter Finance on Friday fixed a price band of ₹469-493 a share for its ₹1,200 crore initial public offering (IPO).

The issue will open for subscription from 13 December to 15 December.

The IPO comprises a fresh issue of equity shares worth ₹800 crore and an offer-for-sale of ₹400 crore by investor shareholders.

Adani Green Energy Ltd., part of billionaire Gautam Adani’s conglomerate, has announced its plan to repay a $750 million bond, due in September 2024.

In a filing to the Singapore stock exchange, the company said it will redeem the notes in full by the due date. The bond’s underwriters will provide a funding letter for $675 million. The company said it has $75.47 million in restricted reserves.

FY24 real GDP growth forecast at 7%, up from 6.5%

Jan-Mar real GDP growth seen at 6.0% versus 5.7% earlier

Oct-Dec real GDP growth seen at 6.5% versus 6.0% earlier

FY24 inflation projection unchanged at 5.4%

RBI keeps repo rate unchanged

RBI maintains “withdrawal of accommodation” stance

Monetary policy to remain disinflationary, says RBI governor Shaktikanta Das

Broad-based easing in core inflation; risks to food inflation remains, says RBI governor 

Economic activity exhibits buoyancy in second quarter, says RBI governor

Healthy twin balance of banks and corporate should propel private sector capex, says RBI governor 

Indian shares opened higher on Friday, ahead of the RBI’s monetary policy decision, where the central bank is expected to stand pat on key rates for the fifth consecutive time

At open, the Sensex was up 131.18 points at 69,652.87, and the Nifty rose 46.10 points to 20,947.30. 

On Thursday, Nifty50 made a lower top on daily charts and closed in an inside range of the previous day and expects an either side breakout from current levels.

The immediate support levels will be at 20,500 being the current week lows followed by at 20,250 levels being the previous all time high.

RSI has lowered below the average line on hourly charts and expects a minor pullback and retracement from the current range. Highest call OI has moved to 21,000 strike while on the downside

E-way bills, required for transporting goods within and across states, dropped 12.5% to 87.5 million in November from over 100 million permits raised in October, official data showed.

The moderation indicates the normalization of goods movement after a spike in October as companies pushed goods into supply chains to cash in on festival season sales. 

On an annual basis, e-way bill generation rose 8% in November, data showed.

Global private equity funds, including Bain Capital, KKR, and Advent International, are in talks for a controlling stake in Sai Life Sciences at a valuation of $600-700 million. 

Sai Life Sciences (SLS) is a Hyderabad-based pharmaceutical contract research and development, and manufacturing (CRDMO) firm.

PE firm TPG Capital, which had invested about $135 million ( ₹900 crore) in 2018, currently owns 43.4% stake in the company. Both TPG and its current promoter Krishna Kanumuri may sell stakes as part of the transaction.

The Reserve Bank of India’s monetary policy committee (MPC) is likely to maintain status quo on policy rates for the fifth consecutive time, 10 economists polled by Mint said, amid persistent inflation risks.

They also expect the committee to nudge up its GDP growth forecast for FY24, from 6.5% to 6.7-6.8%, following higher-than-expected growth in the September quarter (7.6% year-on-year).

Zomato, Maruti Suzuki, SpiceJet, IDFC First Bank, among others, will be in focus in today’s trade.

Balrampur Chini Mills, National Aluminium Company, Delta Corp, Indiabulls Housing Finance, India Cements, SAIL and Zee Entertainment Enterprises are in the F&O ban list for 8 December.

GIFT Nifty futures were largely flat, with a gain of 3 points at 21,084, indicating a flat start for Indian indices.

India’s benchmark indices ended lower on Thursday, snapping seven sessions of gains amid weak cues from global peers.

At close, Nifty was down 37 points at 20,901.15, the Sensex fell 132 points to 69,521.69.

Asian stocks fell early Friday, shrugging off a rally on Wall Street, as traders ratchet up bets the Bank of Japan is nearing the end of its negative interest rate policy.

Japanese shares slipped for a second day, while the yen rose more than 1% amid thin liquidity. Australian shares also fell while contracts for mainland China pointed to losses. Korean shares gained after the Nasdaq 100 index rallied amid renewed optimism on AI.

Overnight, Wall Street rose to snap its first three-day losing streak since Halloween.

The S&P 500 climbed 36.25 points, or 0.8%, to 4,585.59. The Dow Jones Industrial Average added 62.95, or 0.2%, to 36,117.38, and the Nasdaq composite jumped 193.28, or 1.4%, to 14,339.99.

Big Tech stocks helped power the market higher, led by a 5.3% leap for Google’s parent company, Alphabet. They’re Wall Street’s most influential stocks because of their massive size, and they have been on huge tears so far this year.