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Market Live: Sensex up 100 pts, Nifty above 12K post RBI's Accommodative stance, VIX spikes 9% –,

Market Live: Sensex up 100 pts, Nifty above 12K post RBI's Accommodative stance, VIX spikes 9% –,

Dec 05, 2019 03 : 00 PM IST |

Reserve Bank of India (RBI) maintained repo rate at 5. 15 percent and keep policy stance at accommodative

  • December 05, 2019 03: (PM IST)

    Most Active shares on BSE and NSE:

      Most Active shares on BSE and NSE:

  • December 05, 2019 (******************************************************************************************************************************: 55 IST PM

    Market Update: Benchmark indices are trading near day’s low level with Nifty around 12, 000 level.

    The Sensex is down 99. (points or 0.) % at 40750. 54, and the Nifty down 33. 60 points or 0. 28% at 12009. 60

  • December 05, 2019 02: (PM IST)

    Suvodeep Rakshit, Vice President & Sr. Economist, Kotak Institutional Equities:

    policy backdrop for the December MPC meeting will be the steady decline in the GDP growth trajectory and the increase in headline CPI inflation led by food prices. Compared to its October estimates, the MPC will need to revise lower its FY 2020 GDP estimate even as it possibly revises up the near term inflation outlook. We note that GDP growth print is around 80 bps lower and 2HFY 20 GDP growth could be around 150 – 200 bps lower than RBI’s current estimates.

    On the other hand, CPI inflation could be around 100 – 150 bps higher than RBI’s estimate for 3QFY 20. The December policy will, in some sense, test the “flexible” portion of the flexible inflation targeting framework. We believe that given the transient nature of food prices, and the sustained decline in core inflation, the MPC will likely continue to focus on the output gap and growth outlook.

  • December 05, 2019 02: 42 PM IST

    Anagha Deodhar, Economist – ICICI Securities:

    The MPC’s decision to pause is indeed surprising. This review marks a break from past trends as inflation concerns seem to have taken front-seat again.

    Although they have stated that there is space for future action, I do not see rates going down by much in FY 20 as inflation is expected to inch up sharply from here. The effectiveness of monetary policy in stimulating growth is limited in the current context.

    The recent GDP data showed that government spending is the only strong leg of the economy currently. I think the government will let go of the deficit target this year and try to boost growth through increased spending. We could see more sector-specific relief and / or stimulus packages in the coming months.

    Fiscal slippage is generally perceived negatively by MPC. However, in the current context, I think MPC will be more tolerant of fiscal slippage and continue with accommodative cycle.

  • December 05, 2019 02: 34 PM IST

    Long and Short Data:

      Long and Short Data:

  • (December) , 2019 (******************************************************************************************************************************: 31 PM IST

    Pennar Industries bags orders: Pennar Industries share price added 5 percent on December 5 after company bagged orders worth Rs 302 crore across its business verticals during the month of November 2019

  • December 05, 2019 02: 02 PM IST

    Brickwork Ratings has downgraded its rating on non-convertible debentures of Vodafone Idea from BWR A- to BWR BBB -.

  • December 05, 2019 01: 56 PM IST

    Rajesh Cheruvu, Chief Investment Officer, Validus Wealth:The RBI MPC unanimously and shockingly left rates unchanged but maintained Accommodative stance against consensus market expectations of 25 bps cut. Real GDP growth rate has been further downgraded by a whole 1 percent to 5 percent for FY 20. MPC has mentioned that there is space for monetary policy action in future but felt it appropriate to pause now given the risks to inflation.

    RBI would want banks to ensure maximum transmission of 135 bps repo rate cuts done so far in CY 19 as credit growth has now slumped to below deposit growth. Given the widening fiscal deficit concerns, G-Sec supply pressure and wider than average spreads we prefer good-quality Corporate Bonds over G-Secs. Any truce on the trade war and growth positives will benefit short vs long duration, which is our preferred strategy.

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