RBI Sours Stock Market Party After Modi Hurrah In Haryana
Bombay Stock Exchange (Image credit @BSE)
Stock Market Loses Steam After RBI MPC Commentary
By S Jha
New Delhi, October 9: Reserve Bank of India (RBI) commentary watered down the euphoria in the stock market on Wednesday. The positive cue from the RBI came from withdrawal of an accommodative stance.
The RBI announced that it is changing stance to neutral. Yet, the central bank struck hawkish stance on inflation.
Analysts interpreted that the hope of a first rate cut may not happen in December this year. India is the only big country which has not yet cut the benchmark rate.
European Union, the UK, the US, China, and others have cut their respective benchmark rates. Analysts believe that the first rate cut in several years may now take place early next year.
Nifty gave up gains of almost 250 points in the early sessions. Sensex and bank Nifty shed all the gains of the day.
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The Asian markets had a mix day on Wednesday. While Japan closed higher, China sold heavily. The global cues were muted.
While indices closed in the red, the buyers’ interests are back in the small and the mid cap stocks. Portfolios of investors in small and mid-caps were mostly in green on Wednesday.
Chartists are hoping Nifty to resume forward march soon. The 50-share index may target 25450 levels in the near future per chartists.
The showstopper of the day was Divi’s Laboratory. The Raisina Hills has alerted readers on a number of occasion that Divi’s Laboratory is in midst of a massive rally.
The pharmaceutical intermediary manufacturer gained over seven per cent on Wednesday. In one year, Divi’s Laboratory has multiplied almost one and a half times.
The real estate sector led the gains on the street. It may be noted that the realty sector has been ducking the selloff trends in the recent weeks.
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Lodha Group, Phoenix Mills, and Oberoi Realty gained the most on Wednesday. The FMCG, Oil and Gas, and Energy sectors reports losses on Wednesday.
Investors showed clear preferences to the pharma stocks on Wednesday. Azko Nobel India gained 11 per cent on Wednesday.
Marksans Pharma also gained six per cent. Vakrangee, a small cap, is gaining on the street for the past few days. It was locked in a five per cent upper circuit on Wednesday.
Among the contract electronics manufacturers, Kaynes Technology and Avalon Technology rose on Wednesday. Both the scrips are showing signs of strength on the street.
Disclaimer: This article makes no recommendation for buy or sell of shares of any company.
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