Reliance & banking heavyweights push markets lower; RBI trims FY22 GDP forecast to 9.5 per cent from 10.5 per cent
Market Update at 11:25 AM:Indian markets were seen trading near the lowest point of the day. Nifty and Sensex were down by a quarter of a per cent but the real culprit for the day is perhaps Bank Nifty, which plunged more than 450 points from the day’s high soon after the RBI Monetary Policy was announced today.
RBI has said that going forward, the inflation trajectory is likely to be shaped by uncertainties impinging on the upside as well as the downside. The rising trajectory of international commodity prices, especially of crude, together with logistics costs, pose upside risks to the inflation outlook. Excise duties, cess, and taxes imposed by the centre and states need to be adjusted in a coordinated manner to contain input cost pressures emanating from petrol & diesel prices.
Market update at 9:50 AM: In the early morning trade, Nifty and Sensex are trading with modest gains. Nifty is trading above the 15,700 mark while Sensex is close to the 52,300 mark.
Around 34 out of 50 stocks of Nifty 50 are trading in green with L&T, ICICI Bank and HDFC being the top contributors while on the other hand, HDFC Bank & Reliance Industries are the top draggers.
Talking about the sectoral indices, Nifty Realty & Nifty IT emerged as the top gainers while on the flip side, Nifty FMCG and Nifty Metal are the top losers.
Among stock-specific action, Metropolis Healthcare jumped nearly 9 per cent during Friday's morning session and marked a fresh all-time high. Furthermore, volumes recorded in the initial hour of the trade were greater than the last three trading sessions.
Pre-market update: After opening higher on Thursday, Nifty came off marginally during the first half of the trading session; however, bulls regained their momentum midway after partially filling up the opening gap. Nifty touched yet another landmark of 15,700 mark but it ended the day marginally below this landmark and rather, posted a stellar gain of 0.71 per cent.
The price action of the day formed a bullish candle with a lower shadow, which indicates that declines are being bought. Nifty traded in just 94-point range on a weekly expiry day. It ended above Tuesday's high and closed at a new lifetime high.
Going ahead, the level of 15,700-15,770 is likely to act as a stiff resistance in the near term. While on the downside, the level of 15,600, followed by 15,450 is likely to act as strong support in the near term.
Today, RBI Monetary Policy (MPC) will be the talk of the town. As India’s early-stage recovery has been upset by the second wave of Coronavirus, the MPC will continue to focus on growth. It is also likely to maintain the status quo on policy rates and liquidity stance. However, commentary holds significance as their commentary on growth and inflation would be closely watched by the market participants.