Mumbai: The BSE Sensex opened higher on Tuesday against the previous session’s closing. The broader NSE’s Nifty, too, rose in the morning hours. The Indian rupee opened marginally higher against the US dollar. The 10-year bond yield was near 7% to hit a 14-month high after retail inflation quickened more than estimated, reducing expectation of rate cut any time soon by the Reserve Bank of India (RBI).
“The likelihood of inflation testing the 4% target by late 2017 and staying above it for rest of FY18 reinforces our expectations that the Reserve Bank of India will remain on hold in December and the rest of FY18. Other pipeline risks—oil prices, GST tweaks raising risks of a miss in fiscal targets, and policy normalisation by global central banks—are likely to nudge the policy committee to keep a neutral rather than an accommodative policy stance,” said Radhika Rao, economist, DBS Group Research.
Here are the latest updates from the markets:
■ 10.12am: BSE Sensex fell 59.60 points, or 0.18%, to 32,973.96, while the Nifty 50 was down 21.05 points, or 0.21%, to 10,203.90.
■ 10.07am: Jet Airways shares rose 0.22% to Rs709.90. Jet Airways (India) Ltd is in discussions about ordering 75 more Boeing 737 Max aircraft, reports Reuters. According to the report, the airline last month had agreed to buy 75 of the aircraft and that it could acquire another 75 to help it expand in a booming Indian market.
■ 10.05am: Shares of Khadim India debuted on the stock exchanges at Rs727,a 3.07% discount from its issue price of Rs750 per share. The initial public offer (IPO) which was subscribed 1.90 times during share sale in 2-6 November, aims to raise Rs 543 crore. It had fixed price band at Rs 745-750 apiece.
■ 10.00am: The government will launch the ‘Bharat 22’ exchange traded fund (ETF) managed by ICICI Prudential Mutual Fund, on Tuesday, targeting an initial amount of about Rs8,000 crore. The new fund offer will be open for subscription till 17 November and a discount of 3% is being offered to all categories of investors.
■ 9.30am: BSE Sensex opened higher by 77.87 points, or 0.24%, to 33,111.43, while the Nifty 50 rose 21.30 points, or 0.21%, to 10,246.25.
■ 9.27am: Jaiprakash Associates Ltd fell 7.3% to Rs19.75 after the Supreme Court directed its directors to personally appear in court and disclose personal assets. Jaiprakash Power Ventures Ltd fell 3.2%, while Jaypee Infratech Ltd was down 2.6%.
■ 9.25am: Bharti Infratel Ltd fell 3% to Rs402.10 after a huge block deal. Around 83.20 million shares or 4.5% stake of the company changed hands in four block deals, Bloomberg reported. However, details of buyers and sellers were not known.
■ 9.23am: Future Enterprises Ltd rose 3% to Rs49.20 after the company reported narrowed loss for its September quarter earnings to Rs1.94 crore from Rs23.24 crore a year ago.
■ 9.20am: Adani Entertainment Ltd rose 3% to Rs157.05 after the company reported 9.5% increase in its net profit to Rs844 crore. Revenue was up 39% to Rs2,421 crore.
■ 9.17am: The 10-year bond yield was near 7% to hit a 14-month high after retail inflation quickened more than estimated which reduced expectations of rate cut any time soon by the Reserve Bank of India. The 10-year bond yield was at 6.991%, a level last seen on 8 September 2016, compared to its previous close of 6.972%. Bond yields and prices move in opposite directions.
■ 9.15am: Rupee opens marginally higher against the US dollar. The rupee opened at 65.36 a dollar. At 9.15am, the home currency was trading at 65.30 against the dollar, up 0.20% from its Monday’s close of 65.43.