12:40pm Gold Update
Gold held
steady above a nine-month low as Asian equities remained unsettled by political
unrest in Hong Kong, but was poised to post its sharpest monthly loss since
June 2013 as a rapid climb in the dollar dimmed its appeal.
The
precious metal is down about 5.5 percent for the month after hitting a
nine-month low of USD 1,206.85 last week. Gold is also on track to post its
first quarterly loss of the year, though it is still up about 1 percent for the
year.
Spot gold edged up USD 1 to USD 1,216.71 an
ounce by 0627 GMT, after dipping in the last two sessions, reports Reuters.
12:30pm Market Check
Equity
benchmarks extended rally in afternoon trade with the 50-share NSE Nifty
hitting 8000 level supported by banking and financials, auto, capital goods and
pharma stocks.
The index
climbed 59.60 points to 8018.50 and the 30-share BSE Sensex rose 214.69 points
to 26811.80. The broader markets gained 0.9 percent. About 1549 shares have
advanced, 983 shares declined, and 100 shares are unchanged.
12:15pm Expert on RBI policy
The Reserve Bank of India left policy rates
unchanged. "The main reason behind this is that RBI is holding the job of
maintaining the credibility of the processes like anti-inflation process while
keeping in the consideration quite a lot of currency pressure," said Rohit
Gadia, founder and CEO, CapitalVia Global Research.
"RBI has set a glide path for CPI
inflation at 8 percent by January 15 and 6 percent by January 2016. So RBI can
raise interest rate even in the next review if they see that CPI numbers are
going out of ease," he added.
12:00pm Market check
Equity
benchmarks gained strength in noon trade with the Sensex rising 92.19 points to
26689.30 and the Nifty advancing 22.85 points to 7981.75 after the Reserve Bank
of India kept policy rates unchanged. Auto, healthcare, capital goods and HDFC
twins supported the market while technology and FMCG stocks remained under
pressure.
The broader markets extended gains with the
BSE Midcap and Smallcap indices rising 0.8 percent each. Advancing shares
outnumbered declining ones by a ratio of 1473 to 975 on the Bombay Stock
Exchange.
The Reserve Bank of India maintained status
quo on all rates (be it repo rate, cash reserve ratio or statutury liquidity
ratio) in today's policy meeting. The apex bank expects inflation to dip to 6
percent by November but that may climb back to 8 percent by January-March 2015.
Auto
stocks like Maruti Suzuki, Bajaj Auto and Hero Motocorp gained 1-1.8 percent
followed by Tata Motors with 0.4 percent upside while HDFC and HDFC Bank were
up 2.6 percent and 0.4 percent, respectively.
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