X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Markets will remain closed on 19th & 20th October 2017.
We wish all our readers a very Happy Diwali!

Markets cautious after rate hike
Thu, 17 Mar 01:30 pm

After trading in a flat territory during the previous two hours of trade Indian stock markets have been cautious after the rate hike announced by RBI. Stocks from the consumer goods and consumer durables are trading strong, while those from the auto and IT space are trading weak.

Currently, the BSE-Sensex is down by 145 points while NSE-Nifty is trading 45 points below the dotted line. BSE Midcap and BSE Small cap indices are both down by 0.33% and 0.16% respectively.

In the mid-quarter policy review announced recently RBI has hiked key policy rates by 25 basis points (bps). Following the hike repo rate now stands at 6.75% while the reverse repo rate stands at 5.75%. However, CRR has been left unchanged at 6%. It may be noted that amidst rising inflation, RBI has hiked the interest rates for the eighth time since last March. Even in the last policy review, key rates were raised by 25 bps. While annual inflation for the month of February stood at 8.31%, food inflation continues to remain a worrisome factor as it has remained close to double digits. Considering the substantial rise in inflation the RBI has also raised March-end inflation forecast to 8% (from 7% earlier). However, the GDP growth forecast remains unchanged at 8.6%.

Indian pharmaceutical companies are trading mixed with Wockhardt and Biocon trading strong, whereas Dr. Reddy's and Cadila Healthcare are trading weak.  National Pharmaceutical Pricing Authority, the drug price regulator has allowed local pharmaceutical companies Wockhardt and Biocon to increase prices of their insulin brands due to rising input costs. These are the only 2 local pharmaceutical companies that make and sell insulin in India and their products are said to be a third cheaper than imported brands or those made from raw materials sourced from abroad. The drug price regulator increased the price cap of locally manufactured insulin by up to 18.55%. This follows the regulator's decision to raise the price cap on bulk drugs or ingredients used for making insulin by 16%. A marginally higher increase in insulin price is approved because of the rising conversion cost, packing charges, process loss and packing material. Wockhardt and Biocon's insulin brands will continue to be 18% cheaper than competing products despite the price increase. Both the Indian players account for a small market share of just 10% of the estimated Rs 2.5 bn insulin market.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "Markets cautious after rate hike". Click here!

  

Become A Smarter Investor In
Just 5 Minutes

Multibagger Stocks Guide 2017
Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Oct 19, 2017 (Close)

MARKET STATS