Nifty, Sensex turned volatile after RBI decided to keep policy rates unchanged. The MPC’s GDP projection for FY22 was at 9.5%, while the CPI inflation forecast was at FY22 at 5.1%.
RailTel Corporation bags ₹120 cr order from Bharat Coking Coal
State-owned RailTel Corporation of India on Friday said it has bagged a ₹120 crore-order from Bharat Coking Coal Ltd.
“RailTel Corporation of India Ltd has received the work order of a total amount of ₹119.72 crore from Bharat Coking Coal Ltd (BCCL) for implementation of MPLS-VPN services along with miscellaneous services at 340 locations of BCCL for the period of 60 months,” it said in a filing to BSE.
A Mini Ratna PSU, RailTel is a leading neutral telecom infrastructure providers and has a pan-India optic fibre network on exclusive right of way along railway track. Shares of the company were trading 1.34% higher at ₹132.50 apiece on BSE.
Thomas Cook gains on RBI announcement of additional on tap liquidity
Thomas Cook was trading at ₹68.60, up 4.97% at 11:19. RBI governor Shaktikanta Das announced additional on tap liquidity for hotels, restaurants, tourism cos of ₹15,000 cr at 3 yr repo rate tenor.
SBI trades lower
SBI was trading at ₹437.30 apiece, up 0.53% at 10:44 am. The state-owned lender reported standalone net profit of ₹20,410 crore in the March quarter compared to ₹14,488 crore a year ago. The state-owned lender’s net interest income stood at ₹1,10,710 crore, up 12.87% from a year ago, SBI said in a regulatory filing.
Banks top drags
NACH to be operational on all 7 days; will facilitate 24×7 RTGS initiative: Das
RRBs may issue certificates of deposit, and buyback these CDs before expiry for liquidity management: Das
Lenders may issue margins on behalf of FPI clients in GSecs within credit risk framework
Max aggergate exposure threshold under resolution framework expanded from ₹25 cr to ₹50 cr for MSMEs: Das
Additional ₹16,000 cr SLF to Sidbi for on lending, refinancing: Das
Additional on tap liquidity for hotels, restaurants, tourism cos of ₹15,000 cr at 3 yr repo rate tenor: Das
Adequate provisioning, Corporate governance at banks, NBFCs of utmost importance: Das
Forward guidance: RBI to use all instruments at its command
Forex reserves within striking distance of $600 bn as of last Friday: Das
GSAP 2.0 in H2FY22 worth ₹1.20 tn: Das
Next operation under Gsec on 17 June: Das
Operation to involve ₹40,000 cr
Of these ₹10,000 cr will be SDLs
RBI to continue to maintain liquidity via GSAP, LAF: Das
Systemic liquidity to equitable distribution defines RBI’s strategy going forward: Das
CPI forecast for FY22 at 5.1%: Das
GDP projection for FY22 at 9.5%: Das
Need further policy push for exports: Das
Fiscal stimuli, vaccine pentration may lead global recovery: Das
Vaccinations may help normalise economic activity
Price pressures from cereals checked by grain buffers; crude oil prices continue to exert pressure
Inflation at 4.3% offers policy elbow room: Das
Monsoon, agri sector resilience, covid compatible ops offer tailwinds for growth
Reverse repo rate, MSF unchanged: Das
Shaktikanta Das: policy repo rate unchanged at 4%; MPC says maintain accomodative stance
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments on Nifty trajectory
The Nifty is trading above 15,700 this morning. It is all poised to achieve 15,900-16,000 as the it’s next target. The index has a good support at 1,5300 and as long as we can respect that, every dip can be utilized to buy into this market. Intra day profit booking or mild corrections cannot be ruled out. Hence traders should look at dips to accumulate long positions so that the risk reward ratio is favorable.
Covid update: With over 1.32 lakh new cases, total tally goes above 2.85 crore
A minimal dip in new Covid-19 cases was reported after two days in the country with 1,32,364 more people testing positive in the last 24 hours, according to the data released by the Union health ministry on Friday morning.
The count stood at 1,34,154 on Thursday. With the addition of fresh infections, the cumulative caseload in the country has reached 2,85,74,350, the highest across the world.
Glenmark receives USFDA nod for asthma med
Glenmark Pharmaceuticals Ltd has received final approval from the US Food & Drug Administration for Theophylline ExtendedRelease Tablets, 300 mg and 450 mg, bioequivalent and therapeutically equivalent to the reference listed drug, Theophylline Extended-Release Tablets, 300 mg and 450 mg, of Alembic Pharmaceuticals Ltd, the former said ina regulatory filing.
Glenmark has been granted a competitive generic therapy (CGT) designation for Theophylline
Extended-Release Tablets USP, 450 mg, Glenmark added.Theophylline is used to prevent and treat wheezing, shortness of breath, and chest tightness caused by asthma, chronic bronchitis, emphysema, and other lung diseases. It relaxes and opens air passages in the lungs, making it easier to breathe, according to the US National Library of Medicines’ MedlinePlus service.
Petrol, diesel prices hiked today, rates at new high
Fuel prices were hiked again on Friday after a two days pause, taking the rates to a fresh record high. Petrol price was increased by up to 27 paise per litre and diesel by 28 paise across metros, as per the Indian Oil Corporation (IOC) data. (Read here)
Ahead of RBI’s policy review announcement the Sensex opened at 52,367.52, up 135.09 points, or 0.26%, while the Nifty started at a record 15,712.50, up 22.15 points, or 0.14% on Friday.
SoftBank to back Flipkart
SoftBank Group Corp. is in talks with Flipkart to invest $700 million in the internet retailer, three years after it sold its entire stake in the company to Walmart Inc., two people aware of the development said.
The proposed investment in Flipkart from SoftBank’s Vision Fund 2 is part of a $1.2-1.5 billion funding round, the people said on condition of anonymity. The transaction is expected to value Flipkart at $28 billion, one of the people said, adding that the deal is expected to close in 3-4 months. (Read here)
India remains an important target market for investments: SoftBank Vision Fund CEO
“In India, we’ve already invested more than $2 billion in 8-9 companies in the first five months of this year…a few deals are yet to be announced. And we will continue to invest if we find the right opportunities. We anticipate investing a similar size in the remainder of this year,” SoftBank Vision Fund chief executive Rajeev Misra said in an interview from London. (Read more)
US revokes Defence Production Act; vaccine supply lines to ease says India’s US ambassador
Mcap of BSE-listed companies at fresh record high of over ₹226 tn
The market capitalisation of BSE-listed companies reached a fresh record high of over ₹226 trillion on Thursday after indices bounced back after two days of tepid trend. At the close of trade, the market capitalisation of BSE-listed companies was ₹2.26 trillion.
Investors’ wealth on Thursday gained ₹1.88 trillion helped by the market rally.
The 30-share BSE benchmark closed at 52,232.43, a gain of 382.95 points or 0.74%. (PTI)
IDBI Bank secures $239 mn debt judgment in UK High Court
IDBI Bank has secured a $239 million judgment in the commercial division of the High Court of London against a Cypriot subsidiary of Essar Shipping Group, believed to be one of the largest debt judgments obtained by an Indian bank in English courts. (Read here)
Musk’s tweet drags bitcoin down, again
Bitcoin slipped more than 3% on Friday after Tesla boss Elon Musk fired off a tweet hinting at a breakup with the cryptocurrency, though it remains on course for its best weekly gain in about a month as it tries to recover from May’s crash.
Bitcoin was last down about 3.6% at $37,809. Musk tweeted “#Bitcoin” and a heartbreak emoji above a meme appearing to show a couple discussing their breakup. Bitcoin is up 6.3% this week.
Asian markets track US peers, open lower
Asian stocks followed Wall Street lower on Friday as signs of a strengthening U.S. recovery boosted bets for higher inflation and an earlier tapering of Federal Reserve stimulus. Japan’s Nikkei fell 0.8% early in the Asian session, while MSCI’s broadest index of Asia-Pacific shares outside Japan was off 0.3%.
Tech stocks drag US indices lower; S&P 500 ends in red
Technology companies helped drag stocks lower on Wall Street, knocking the S&P 500 into the red for the week.
The benchmark S&P 500 index dropped 0.4% and is now on track for a 0.3% weekly loss. Technology companies, whose pricey valuations make them more sensitive to inflation fears, were the biggest weight on the market. Microsoft fell 0.6% and Apple lost 1.2%. The S&P 500 fell 15.27 points to 4,192.85. The Dow Jones Industrial Average dropped 23.34 points, or 0.1%, to 34,577.04. The tech-heavy Nasdaq lost 141.82 points, or 1%, to 13,614.51. The Russell 2000 index of smaller companies gave up 18.59 points, or 0.8%, to 2,279.25. AMC Entertainment slumped 17.9%, shedding gains from a brief rally, after the movie theater operator’s announcement that it would sell more shares following a huge run-up in its stock price on a surge of interest from individual investors. The stock is still up about 2,300% this year.
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