Nifty Rises To Record As Easing Inflation Spurs Rate Cut Hopes
Indian shares closed at fresh record highs, led by rate-sensitive sectors such as banks and real-estate on hopes of an interest rate cut by the central bank following a sharp decline in headline retail inflation.
Consumer price inflation fell to 2.99 percent in April compared to estimate of 3.30 percent. Headline retail inflation is now well below the Reserve Bank of India’s medium term target of 4 percent.
The data bolstered optimism that the Reserve Bank of India would ease interest rates in its upcoming monetary policy review on June 7.
The 10-year benchmark bond yield fell 9 bps to 6.82%, its lowest since April, from its 6.91% close on Friday
Meanwhile, the rupee rose to 64.09 per dollar, its strongest since April 27, on expectations of additional foreign portfolio inflows into Indian markets.
The S&P BSE Sensex rose 0.44 percent at 30,322 while the NSE Nifty advanced 0.47 percent to 9,445.
Among the sectoral indices, S&P BSE Bankex gained 0.82 percent while the S&P BSE Realty rose 0.9 percent.
The market breadth was skewed in the favour of gainers, with about 5 stocks advancing to every 4 stocks that declined.
Metals Outlook Improves
"Markets are on an upside trajectory and are making new highs so the momentum is positive. Metal stocks have a better outlook as global economy improves amid expectations of a rebound in the second-half of the year," said Rajesh Shanbhag, advisory head – alternate channel at Way2Wealth Brokers.
Vedanta Swings To Q4 Profit; Shares Rise
- Shares up as much as 2.6% to Rs 243, highest since April 28
- Q4 consol income Rs 1,410 crore vs loss Rs 13,931 crore last year
- Q4 consol revenue Rs 24,612 crore vs Rs 18,172 crore last year
- Analyst consensus price target is 25% above the current price
Colgate India Shares Fall After Q4 Net Misses Estimates
Shares of the toothpaste maker slid as much as 2.3 percent after its fourth quarter earnings miss street estimates.
- Q4 net income Rs 143 crore versus Rs 155 crore estimated
- Revenue Rs 1,180 crore versus Rs 1,130 crore
- Total costs Rs 967 crore
- Other income Rs 8.01 crore
Colgate India FY17 volumes drop by 3 percent due to ‘soft’ consumer demand, company said in its exchange filing.
BQSpotted: V2 Retail Jumps Most In Nine Months
- Stock has gained 11%, the most since Aug 26,2016
- Volumes at 25 times its previous 20-day average
- The retail group has a market capitalization of Rs 675 crore
- Stock has gained as much as 20% in the past one month
South Indian Bank Extend Gains As Bad Loans Fall
- Shares up as much as 5% to Rs 27.10, highest since January 2015
- Gross bad loans 2.45% end-March vs 3.98% end-December
- Q4 net income Rs 75.5 crore vs estimate Rs 100 crore
- RSI at 71, indicating that the stock may be overbought