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Market firm; Nifty above 16950 mark
Sep 30 2022 12:23PM
The key equity barometers continued to trade with modest gains in the morning trade. The Nifty traded a tad above the 16,950 mark after hitting the day's low of 16,747.70 in the early trade. Bank, financial services and metal stocks were in demand while IT, FMCG and pharma shares declined. The Reserve Bank of India (RBI) increased the repo rate by 50 basis points to 5.9% with immediate effect. 

At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 421.37 points or 0.75% at 56,831.33. The Nifty 50 index gained 134.20 points or 0.80% at 16,952.30. 

In the broader market, the S&P BSE Mid-Cap index rose 0.27% while the S&P BSE Small-Cap index added 0.54%. 

The market breadth was positive. On the BSE, 1,879 shares rose and 1,272 shares fell. A total of 136 shares were unchanged. 

The meeting of the RBI Monetary Policy Committee (MPC) started on Wednesday (28 September), and RBI Governor Shaktikanta Das on Friday (30 September) announced that the MPC voted with 5-1 majority to increase repo rate by 50 bps to 5.9% with immediate effect. 

Consequently, the standing deposit facility (SDF) rate stands adjusted to 5.65% and the marginal standing facility (MSF) rate and the Bank Rate to 6.15%. 

The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth. 

Das said that the inflation continues to be at alarming high levels across jurisdictions. Economic activity in India "remains stable." It gives us confidence to deal with aggressive policies of other central banks, he added. 

FY23 CPI inflation is retained at 6.7%. FY23 real GDP growth is seen at 7% from 7.2% earlier, he said. 

The Nifty Financial Services index rose 1.65% to 17,405.75. The index witnessed bargain hunting after declined 8.68% in seven trading sessions. 

Kotak Mahindra Bank up 2.02%, HDFC Bank up 1.73%, Housing Development Finance Corporation up 1.38%, State Bank of India up 1.24%, ICICI Bank up 1.2%, Axis Bank up 1.06%, Muthoot Finance up 0.96%, SBI Life Insurance Company up 0.74% and Bajaj Finserv up 0.69% jumped. 

On the other hand, ICICI Prudential Life Insurance Company down 1.89%,ICICI Lombard General Insurance Company down 1.27% and REC down 1.06% declined. 

Bajaj Electricals rose 1.08% after the company received an order under the transmission line tower package TW04 from Power Grid Corporation of India. The order entails supply of goods/services under transmission line tower package TW04 for 765 kilovolt D/C Navasari (New) (South Gujarat) - Padghe line (Maharashtra portion), associated with transmission network expansion in Gujarat to increase its air traffic control (ATC) from inter state transmission system (ISTS). The value of the order aggregated to Rs 332.65 crore and is expected to be completed within 15 months from the date of issue of NOA/LOA. 

Ircon International (IRCON) added 0.38%. IRCON has completed commissioning of doubling work of Hajipur- Bachhwara of 72 Route Km including electrification. IRCON was appointed by East Central Railways for this work.