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


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

Sensex Remains Flat; RBI Hikes CRR
Mon, 28 Nov 11:30 am

After opening the day on a flat note, the Indian share markets have continued to trade near the dotted line. Sectoral indices are trading on a mixed note with stocks in the telecom sector and oil & gas sector witnessing maximum buying interest. Stocks from the banking sector and consumer durables sector are trading in the red.

The BSE Sensex is trading up 39 points (up 0.2%) and the NSE Nifty is trading up 11 points (up 0.1%). The BSE Mid Cap index is trading up by 0.8%, while the BSE Small Cap index is trading up by 0.9%. The rupee is trading at 68.67 to the US$.

Indian stock markets will watch out for macroeconomic data releases during this week. The list includes gross domestic product (GDP) for third quarter, manufacturing PMI, and September quarter earnings from blue-chip companies. Apart from this, announcements in the global financial markets regarding the US Fed rate hike and OPEC meet will also influence Indian share markets.

However, we believe that it would be unwise to hit the panic button in case of increased volatility fuelled by the above developments. Rather, the question should be: What can one do to sail safely through this volatility and uncertainty?

Asad Dossani has developed a trading strategy that - looking at the back-test results - could be highly profitable during volatile times. Asad believes trading is possibly the best secondary source of income on the planet. You can learn more about his strategy here.

Stocks from the banking sector are trading on a negative note. Most of this selling pressure is seen on the back of announcement of additional cash reserve ratio (CRR) by the RBI. As per a leading financial daily, the Reserve Bank of India (RBI) has asked banks to keep all incremental deposits gathered between September 16 and November 11 with the central bank. With this, banks will be parking about Rs 3,240 billion with the central bank.

Also, with this announcement, banks will pay a savings account rate of at least 4% on these deposits but get nothing in return from the central bank for the same. The move will impact the income levels of banks and that would be the key things to watch out for in the coming days.

Apart from the above, markets will keep an eye on movements in Foreign Currency Non-Repatriable (FCNR) account deposits. This is because as much as 64% of the total three-year FCNRs are going to mature this month.

The above maturities will likely trigger dollar outflows and weigh on rupee.

The rupee is now down close to 3% against the dollar since Donald Trump's surprise victory in the US presidential elections. It is believed that capital outflows as well as dollar's strength in view of an expected US Fed rate hike are the key factors that are dragging the rupee down.

The news will of course be music to the ears for Indian exporters as lower rupee makes them more competitive and also boosts their revenues.

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 "Sensex Remains Flat; RBI Hikes CRR". Click here!


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Feb 21, 2018 (Close)