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Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
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RBI rate cut boosts sentiment 
(Tue, 17 Apr Closing) 
Indices in the Indian stock market were helped by a strong late buying surge and this enabled them to close the day on a very positive note. Thus, while BSE-Sensex edged higher by around 210 points (up 1.2%), gains on the NSE-Nifty came in at around 60 points. BSE Mid Cap and BSE Small Cap indices lagged slightly and edged higher by around 0.6% each. Only three stocks amongst the Sensex heavyweights ended the day on the losing side.

While Asian indices closed mixed today, Europe has opened on a positive note. The rupee was trading at Rs 51.5 to the dollar at the time of writing.

The Indian markets that were struggling to find a reason to break away from its lacklustre showing, finally got a big one in the form of RBI's rate cut announcement. However, investors assume this to be the panacea for all the ills affecting Indian economy at their own peril. A lot of structural issues need to be sorted out first in order for the lower interest rates to show their effect. Failing to do so would exacerbate the problem and all that the lower interest rate would end up doing is stoke fresh fires of inflation. Thus, buying solely on the basis of lower interest rate environment would be a big mistake we believe.

Looks like the IPO market is trying to get back on its feet. Latest to evince interest in getting itself listed is a well-known Mumbai based jewellery retailer, Tribhovandas Bhimji Zaveri. The firm is hoping to garner around Rs 2 bn from the capital market, part of which would be used to open new showrooms and the rest towards meeting working capital requirements. The company has decided to utilise the entire net proceeds during the fiscal year FY13. Presently, the company operates through 14 showrooms and eventually hopes to take this number to 44 by FY14.

Barely has the ink on the rate cut decision dried and State Bank of India (SBI), India's largest lender, has got down to business. As per reports, the state owned banking behemoth is planning to cut lending rates on loans that have high interest rates post the Reserve Bank of India (RBI) decision. This decision comes close on the heels of the bank revising its interest rates on retail term deposits by as much as 75 basis points to 100 basis points. The stock closed higher by more than 1% on the bourses today.

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Sep 26, 2017 02:29 PM