Share Market Update: Sensex ends 433 points lower, Nifty at 11,174; BPCL declines over 3%

Equity benchmark BSE Sensex jumped over 250 points in early trade on Friday, driven by gains in banking and financial stocks ahead of the Reserve Bank's bi-monthly policy review. Meanwhile, domestic bourses opened on a positive note on Friday with benchmark indices Sensex trading 202.19 points higher at 38,309.06 and Nifty up 41.75 points at 11,355.75. The Reserve Bank of India (RBI) is scheduled to announce the fourth bi-monthly monetary policy for 2019-20 on Friday, after a three-day meeting. It is likely to go for yet another rate cut, the fifth in a row, as inflation is within the comfort zone and the need to boost the economy is pressing.  

Top Sensex gainers in early session include Yes Bank, IndusInd Bank, SBI, Vedanta, HDFC, Hero MotoCorp, Tata Steel, and HDFC Bank, rising up to 5.52 per cent. Losers in the pack were Tata Motors, M&M, Bharti Airtel, HCL Tech, PowerGrid, L&T, and ICICI Bank, falling up to 1.18 per cent.  

On Thursday, benchmark indices Sensex and Nifty closed on a negative note amid weak global equities. While Sensex ended 198 points lower at 38,106, Nifty50 closed 42 points lower at 11,313 mark. Share Market Update: Sensex ends 198 points lower, Nifty at 11,313; Indigo falls nearly 5%

Mid cap and small cap indices were trading 25 points and 20 points higher in early trade.  

Market breadth was positive with 922 stocks trading higher compared to 561 falling on the BSE.  

IT and banking stocks led the gains with their indices rising 127 points and 177 points, respectively.

On a net basis, foreign portfolio investors (FPIs) sold shares worth a net of Rs 810 crore on Thursday, and domestic institutional investors (DIIs) were net buyers to the tune of Rs 862.54 crore, provisional data available with BSE showed.

The Indian rupee appreciated by 9 paise to 70.78 against the US dollar in early trade on Friday ahead of the Reserve Bank of India's monetary policy decision. At the interbank foreign exchange the rupee opened at 70.82, then gained further ground and touched a high of 70.78, registering a rise of 9 paise over its previous close. The domestic unit however could not hold on to the gains and was trading at 70.83 against the dollar at 0953 hrs. On Thursday, the rupee had settled for the day at 70.87 against the US dollar. Forex traders said, the domestic unit was trading higher as investors believe the RBI will go for yet another rate cut to boost slowing economic growth. Rupee vs Dollar: Rupee rises 9 paise to 70.78 per USD ahead of RBI policy decision  

Brent crude futures, the global oil benchmark, rose 0.36 per cent to trade at USD 57.92 per barrel.  

The Reserve Bank’s Monetary Policy Committee (MPC) is expected to announce the rate cut since February on October 4. In the August policy, MPC had cut repo rates by 35 bps to 5.4 percent.

The bi-monthly monetary policy review tomorrow (October 4) will be keenly watched as few new developments have taken place post the last review in August. Even RBI Governor Shaktikanta Das was surprised when GDP growth fell to 5 per cent in the first quarter of the current fiscal. Another surprise was when the government cut corporate tax, leaving a big hole of Rs 1.45 lakh crore in tax revenues. The debacle of the PMC Bank has also created uncertainty in the financial system. Four things to watch out for in RBI's monetary policy review

NTPC on Thursday said with operationalisation of two units of 1320-mw, it's installed capacity has touched 57016 mw. "we wish to inform that Unit 1 of 660MW of  Stage-II of Tanda Super Thermal Power Station (2x660 MW) and Unit 1 of 660MW of Khargone Super Thermal power Station have been added to the Installed Capacity of NTPC. With this, the total installed capacity of NTPC and NTPC group has become 48645 MW and 57106 MW respectively," the official statement read. NTPC stock has risen 1.7% to the intraday high of Rs 118.80 against the last closingprice of Rs 116.75. NTPC shares had a trend reversal and gained today after 2 days of consecutive fall. NTPC stock trades higher than 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages

Except FMCG and media, all the other indices are trading in the bullish territory. Highest gains are seen in PSU Bank, gaining at 1.25 %, followed by 0.80% gain in CPSE, 0.70% in Auto, and IT and 0.55% gain in metal and financial indices. India Vix, the volatility index today holds at 17, lower by 3.21% compares to yesterday, indicating price are relatively stable against yesterday's more volatile market.  

Crisis-hit YES Bank on Thursday said that its group president and former has resigned. The announcement was made by the CEO of the YES Bank Group, Ravneet Gill, during a conference call with investors and analysts following a heavy fall in the bank's share price over the past few sessions.

"Rajat has decided to move on. For the past two years he has been carrying a lot of load and needed some time off... so has decided to leave," Gill reportedly said.

YES Bank group president and former chief financial officer Rajat Monga quits

Elsewhere in Asia, bourses in Hong Kong, Korea and Japan were trading on a weak note, as investors await US jobs data scheduled to be released later in the day, after a series of weak figures this week, which triggered concerns over the global economy. Chinese markets are closed for the holiday week. However, US markets on Thursday ended higher on rate cut expectations. 

The offer for sale of Indian Railway Catering and Tourism Corporation (IRCTC) has received overwhelming response from investors. The Rs 645cr public issue has been oversubscribed more than 111 times. The initial public offering has received bids for 225, 29, 43,280 equity shares against the IPO size of 2.01crore shares. The reserved portion of qualified institutional investors subscribed 108.8 times and non-institutional investors (HNI) 354.5 times while that of retail investo 

The Prime Minister's Office on yesterday held a meeting of secretaries to discuss the draft national logistics policy, which aims at promoting seamless movement of goods across the country and reducing high transaction cost of traders, an official said. Secretaries from different departments, including commerce, steel, revenue, chemicals, and corporate affairs attended the meeting, the official added.

RBI cuts repo rate by 25 basis points, from 5.40% to 5.15%. Reverse repo rate adjusted to 4.90% and bank rate at 5.40 %, accordingly.

In CPSE, that traded 80% up, Power Finance Corporation Limited gained the most, at 2.9% rise, followed by NTPC rising at 2%, ONGC at 2% gain, OIL at 1.35% gain, 1.3% gain in NBCC and 1.20% gain in BEL. Nifty IT was gaining 0.70%, with Wipro registering 1.55 % advance, followed by 1.24% gain in TCS and 1.13% in Infosys. With 1.20% gain in PSU Banks, Syndicate Bank was trading at a 4% rise, followed by 2.11% gain in SBI Bank, 1.57% gain in J&K Bank, 1.52% gain in Canara Bank and 1% gain in Canara Bank. Nifty Auto, similarly, gained 0.70%, with 3.84% gain in Ashok Leyland, 2.16% gain in Apollo Tyres, 1.30% hike in Hero Moto Corp, 1% rise in Maruti and 0.90% rise in Bajaj Auto.

Share Market Live:  Benchmark indices Sensex and Nifty turned negative after a positive start of the day as RBI in its monetary policy outcome passed a 25 bps repo rate cut. Both Sensex and Nifty fell flat to zero post the cut. As per expectations, the Reserve Bank of India has cut its benchmark repo rate by 25 basis points to 5.15 percent, in the fifth straight interest rate cut. A rate cut of 25 basis points was expected. Real GDP growth for 2019-20 has been revised downwards from 6.9 percent in the August policy to 6.1 percent. The reverse repo rate has been reduced to 4.9 percent, and the bank rate stands at 5.40 percent. "The MPC also decided to continue with an accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target," said the MPC report. RBI Monetary Policy: Repo rate cut by 25 basis points; loans to get cheaper

 Share Market Live: Sectorally, auto, IT, metal and pharma stocks helped in recovering gain while losses in bank, financial services, FMCG, media and realty dragged the broader indices. PSU Bank was the only sector that was trading flat.