Anuj Gupta- DVP- Commodity and Currency Research, Angel Broking: Spot gold prices increased by 0.27 on December 3 and MCX gold rose by 1.6 percent due to the weakness of the dollar index and increasing cases of coronavirus around the world. Traders can buy gold at Rs 49,100 levels with a stop loss of Rs 48,800 levels for the target of Rs 49,600 levels. Buy silver at Rs 63,300 levels, with a stop loss of Rs 62,700 levels and for the target of Rs 64,500 levels.
RBI Policy: Inflation Likely High, Says Governor Das; expect some relief in the CPI
On Friday, the Reserve Bank of India’s Monetary Policy Committee (MPC) kept the repurchase rate unchanged at 4 percent and maintained a “accommodative” stance. The MPC is of the opinion that inflation is likely to remain high with some relief from the Kharif crop.
RBI Governor Shaktikanta Das said: “Project CPI inflation at 6.8 percent in Q3FY21, 5.8 percent for Q4FY21, 5.2-4.6% in H1FY22 with risks broadly balanced. However, expect some relief in CPI inflation in the winter months. “
He also said that the signs of recovery are far from being broad-based and that this will require political support. More efforts will also be needed to mitigate inflationary pressures.
According to MPC, proactive supply management can lower food prices.
Market update: Indian indices rose after the head of RBI Governor Shaktikanta Das’s Monetary Policy Committee announced the buyback rate unchanged at 4 percent. It maintained the status quo in benchmark lending rates in view of persistently high inflation and a slower-than-expected contraction of the economy. The Sensex traded 280 points higher at 44,912.24 while the Nifty50 held close to its record highs of 13,217.45.
The top Nifty50 winners were Hindalco, UltraTech Cement, L&T, Grasim, and Adani Ports, while Asian Paints, Dr Reddt’s Laboratories, Cipla, Divi’s Labs, and Reliance Industries remained the top losers.
Except for the pharmaceutical index, all industry indices are listed in green. Nifty Metal continued to be the best performing index, trading up 2 percent.
Will the central bank forecast a GDP figure for fiscal year 21? Will you keep the buyback rate at 4% or will you change it? All this and much more, while the street awaits the direction of the Governor reviewing the RBI Policy at 10 am
Will the central bank forecast a GDP figure for fiscal year 21? Will you keep the buyback rate at 4% or will you change it? All this and much more, while the street awaits the governor @DasShaktikantaaddress checking the #RBIPolitical @ 10
STAY TUNED for the latest updates and in-depth coverage from CNBC-TV18 pic.twitter.com/j6G0QHZ5FY
– CNBC-TV18 (@ CNBCTV18Live) December 4, 2020
UltraTech Cement Shares Peek 52 Weeks Upon Announcing Major Capacity Expansion Plan
UltraTech Cement’s share price rose more than 4 percent to hit a 52-week high on Friday after the company announced an investment of Rs 5,477 crore towards capacity expansion of 12.8 million tons per year (MTPA ).
As of 9:34 am, the stock was trading 4.26 percent higher at Rs 5,102 a share on the NSE.
Ultratech Cement’s board approved increasing capacity by 12.8 million tons per year (MTPA) with a combination of brownfield and greenfield expansion. The additional capacity will be created in the fast growing markets of the eastern, central and northern regions of the country.
This expansion includes the existing approval for the cement plant at Pali in Rajasthan, in addition to its 6.7 MTPA capacity expansion currently underway in Uttar Pradesh, Odisha, Bihar and West Bengal, which has been accelerated and is expected to enter in service for fiscal year 22, on a staggered basis.
The company’s press release stated: “Commercial production of the new capacities is expected to come online gradually, by the fourth quarter of fiscal year 23. This capacity addition will not affect the ongoing deleveraging program that is on track to make Ultratech Cement debt-free once the expansion program is complete. Upon completion of the last round of expansion, the company’s capacity will grow to 136.25 MTPA, reinforcing its position as the third largest largest cement company in the world, outside of China .. “
Siddhartha Khemka, Director of Retail Research, Motilal Oswal Financial Services: Looking ahead, consistent FII inflows, positive developments on the vaccine front, and impressive quarterly results are some of the key drivers of support for the market. However, the intermittent earnings reserve cannot be ruled out given the strong rally in recent weeks.
Globally, investors would follow the progress of vaccines and US stimulus, while keeping a close eye on developments surrounding US tensions.On the domestic side, the RBI MPC result would be watched on Friday.
Technically, Nifty has to stay above 13,000 to witness a move higher towards the 13250-13,400 levels, while to the downside there is significant support at 12900. India VIX is down 4.6% to 19 levels. Lower levels of volatility suggest that the bulls are in control and any decline could be bought in the market.
Opening bell: Benchmark indices of Indian stocks opened higher on Friday led by gains in metals and financial stocks ahead of the Reserve Bank of India’s (RBI) bimonthly monetary policy today amid mixed global signals.
At 9:15 a.m., the Sensex opened 0.07 percent, or 33.26 points, higher at 44,665.91, while the Nifty50 index opened at 13,177.40, an increase of 43.50 points, or 0.33 percent.
The broader markets supported the gains with the Nifty Smallcap100 and Nifty Midcap100 indices trading 0.6 percent higher each.
Except for Nifty IT, all industry indices were in green led by Nifty PSU Bank, Nifty Metal, Nifty Auto, Nifty Media and Nifty FMCG.
UltraTech Cement, ONGC, GAIL India, Bharti Airtel and Tata Motors were the top winners from Nifty50, while Asian Paints, Tech Mahindra, Infosys, Reliance Industries and Dr Reddy’s Laboratories were the top losers from the index.
The Reserve Bank’s (MPC) is expected to maintain interest rates as persistent high inflation and a slower-than-expected contraction of the economy leave no room for a rate cut.
Click here to read the 10 things you need to know before the opening bell.
Tata Sons, under his umbrella, is exploring several new businesses and one of them is smartphone manufacturing.
Tata Sons, under his umbrella, is exploring several new businesses and one of them is smartphone manufacturing, sources say. @PoddarNisha with more details pic.twitter.com/ek2lBrlNWF
– CNBC-TV18 (@ CNBCTV18Live) December 4, 2020
Government raises domestic flight limit from 70% to 80% of pre-COVID levels
The limit on the number of domestic flights that Indian airlines can operate was increased from 70% to 80% of its pre-COVID levels on Thursday, Civil Aviation Minister Hardeep Singh Puri said. The minister had said on November 11 that Indian airlines can operate up to 70 percent of their domestic passenger flights prior to COVID due to prevailing demand amid the coronavirus situation. Puri tweeted on Thursday: “Domestic operations resumed with 30,000 passengers on May 25 and have now hit a high of Rs 2.52 lakhs on November 30, 2020.” “The Civil Aviation Ministry now allows national carriers to increase their operations from the current 70% to 80% of the capacity approved before COVID,” he said.
RBI Monetary Policy Decision Today: Here’s What To Expect
The Reserve Bank’s Monetary Policy Committee (MPC) is expected to hold firm, as persistent high inflation and a lower-than-expected contraction of the economy leave no room for a rate cut . A CNBC-TV18 poll of 20 economists showed that none of the respondents expected a cut in RBI’s buyback rate on December policy. The buyback rate, currently at a record low of 4 percent, is expected to remain unchanged. Most economists polled by CNBC-TV18 are not targeting any cuts in this entire financial year and expect rates to be lowered only after March. Half of those surveyed expect a reduction of up to 25 basis points in the buyback rate over a 12-month period, and 45 percent expect a status quo, which means there will be no cuts or increases over the next year. More here
First, here is a quick update on what happened in the markets on Thursday.
Indian indices trimmed gains to end unchanged Thursday after hitting all-time highs at the open. Markets gave up on gains dragged down by TI stocks and HDFC Bank heavyweight after the RBI advised the lender to temporarily halt Digital 2.0 program launches, seeking new credit card customers. The Sensex finished 14 points higher at 44,632 while the Nifty rose 20 points to 13,134. The broader markets, however, outperformed the benchmark indices with the Nifty Midcap and Nifty Smallcap indices rising more than half a percent each. In the Nifty50 index, Maruti, NTPC, ONGC, Hindalco and SBI were the main winners, while SBI Life, HDFC Bank, TCS, Infosys and Bajaj Auto led the losses. In intraday transactions, The Sensex rose as much as 335 points to hit a new high of 44,953, while the Nifty added 101 points to its record of 13,215.
Welcome to the CNBC-TV18 Market Live blog
Good morning readers! This is Pranati Deva from the market desk of CNBC-TV18. Welcome to our market blog, where we provide live news coverage of the latest events in the stock market, business and the economy. We’ll also get instant reactions and guests from our stellar lineup of TV guests and editors, researchers, and internal reporters. If you are an investor, we wish you a great trading day. Good luck!
