Sensex, Nifty remain higher after RBI hikes repo rate

Indian equity benchmarks remained higher in late morning session, with both Sensex and Nifty trading higher, after Reserve Bank of India (RBI) Monetary Policy Committee has raised Repo Rate by 50 basis points (bps) to 4.90 per cent in its June bi-monthly meeting. Real GDP growth for FY 2022-23 is retained at 7.2%. Adding more relief among traders, the Reserve Bank of India (RBI) in its latest data has showed that Bank credit grew by 11.04 per cent to Rs 120.27 lakh crore and deposits up by 9.27 per cent to Rs 165.74 lakh crore in the fortnight ended May 20, 2022.

On the global front, Asian markets were trading in green, after a measure of the public assessment of the Japanese economy advanced in May. The survey data from the Cabinet Office showed that the current conditions index of the Economy Watchers' Survey, which measures the present situation of the economy, rose to 54.0 in May from 50.4 in April.

Back home, on the sectoral front, coal sector remained in focus, after Moody's Investors Service has said that large coal-importing nations, including India, will look to ramp up the output of domestic coal to strengthen energy security and lessen dependence on the import of fossil fuels. The government has recently mandated Coal India (CIL) to import coal as an emergency measure to avoid a shortage of coal for the country's power utilities and build up buffer stock.

The BSE Sensex is currently trading at 55277.62, up by 170.28 points or 0.31% after trading in a range of 54683.30 and 55423.97. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.29%, while Small cap index was up by 0.22%.

The top gaining sectoral indices on the BSE were Realty up by 2.18%, Metal up by 0.90%, Bankex up by 0.87%, PSU up by 0.86% and Basic Materials up by 0.54%, while FMCG down by 0.54%, Telecom down by 0.17%, Energy down by 0.16%, Oil & Gas down by 0.08% and Auto down by 0.02% were the top losing indices on BSE.

The top gainers on the Sensex were SBI up by 1.93%, Bajaj Finance up by 1.45%, Tata Steel up by 1.25%, Bajaj Finserv up by 1.10% and HDFC Bank up by 1.07%. On the flip side, Bharti Airtel down by 1.22%, Reliance Industries down by 1.16%, Nestle down by 0.69%, ITC down by 0.69% and Hindustan Unilever down by 0.65% were the top losers.

Meanwhile, Moody's Investors Service has said that large coal-importing nations, including India, will look to ramp up the output of domestic coal to strengthen energy security and lessen dependence on the import of fossil fuels. The government has recently mandated Coal India (CIL) to import coal as an emergency measure to avoid a shortage of coal for the country's power utilities and build up buffer stock.

It said Coal India targets to increase production by around 12 per cent in the current year. The state-owned firm accounts for over 80 per cent of India's coal output. Further, it said that metallurgical and thermal coal prices will remain high, but below recent peaks. However, it added the supply constraints were easing.

Besides, it noted prices for copper, zinc, nickel and aluminium reflect low inventories and supply risk related to Russia. Supply, which was tight even before disruptions from the military conflict, will remain constrained. It added steel and raw material prices have begun to soften as panic buying recedes, supply-chain issues reduce global demand, COVID-related lockdowns reduce consumption in China, and inflationary cost pressures and higher interest rates weigh on sentiment and economic growth.

The CNX Nifty is currently trading at 16458.75, up by 42.40 points or 0.26% after trading in a range of 16293.35 and 16514.30. There were 36 stocks advancing against 13 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were SBI up by 2.11%, Bajaj Finance up by 1.72%, Grasim Industries up by 1.62%, Coal India up by 1.44% and Tata Steel up by 1.31%. On the flip side, UPL down by 1.51%, Reliance Industries down by 1.15%, Bharti Airtel down by 1.13%, Cipla down by 1.06% and Britannia down by 0.71% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 rose 290.34 points or 1.04% to 28,234.29, Hang Seng surged 335.59 points or 1.56% to 21,867.26, Taiwan Weighted jumped 144.69 points or 0.88% to 16,657.57, KOSPI added 2.68 points or 0.10% to 2,629.02 and Jakarta Composite was up by 33.33 points or 0.47% to 7,174.38. On the other hand, Straits Times fell 5.76 points or 0.18% to 3,225.78 and Shanghai Composite was down by 22.61 points or 0.70% to 3,219.15.