RBI becomes first central bank in Asia to cut rates this year

STOCK MARKET - The Reserve Bank of India (RBI) cut its main policy rate on Wednesday by a quarter percentage point to a more than 6-1/2 year low, saying a slump in inflation opened room for monetary easing, while pinning further action on upcoming economic data.

The rate cut is the RBI's first easing move since one of the same size in October and the first by a central bank in Asia since December - a show of confidence in a country that has experienced a surge in foreign investments into debt and shares this year.

Cutting the repo rate by 25 basis points to 6.00 per cent - the lowest since November 2010 - had been widely anticipated as a slump in food prices sent June consumer inflation to a more than five-year low of 1.54 per cent.

The RBI said easing prices had provided "some space" for monetary policy accommodation: inflation is now well below the RBI's 4 per cent target and its projection of 2.0-3.5 per cent in April-September.

The rate cut will likely ease some of the pressure from the government and markets for action to lift the economy, which had annual growth in January-March of 6.1 percent - fast by global standards but India's lowest number in over two years.

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Rate sensitive stocks slip as RBI cuts repo rate by 25 bps to 6%

STOCK MARKET - Shares of rate sensitive sectors such as financials, automobiles and real estate were trading lower after the Reserve Bank of India (RBI) cut the repo rate and reverse repo rate by 25 bps at 6% and 5.75%, respectively, at Wednesday's third Bi-monthly monetary policy, keeping in line with what analysts and experts had forecast.

At 2:55 PM; Nifty PSU Bank and Nifty Private Bank index trading lower by 0.3% each, while Nifty Auto, Nifty and Nifty Realty indices fell 0.4% each on the National Stock Exchange (NSE), as compared to 0.4% decline in the Nifty 50 index.


Only Punjab Nation Bank and Axis Bank were trading in green while IDFC Bank, IndusInd Bank, Canara Bank, HDFC Bank, Federal Bank, State Bank of India (SBI), and Bank of Baroda were quoting in red on NSE.

Tata Motors, Ashok Leyland, Mahindra & Mahindra (M&M) and Bajaj Auto from automobiles and Unitech, Oberoi Realty, Godrej Properties and Sobha from real estate were down in the range of 1% to 4%.

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Hindustan Copper falls 8% on discounted floor price for OFS

STOCK MARKET - Hindustan Copper dipped 8% to Rs 65.25 on BSE in early morning trade after the government fixed floor price for its offer for sale at Rs 64.75. The floor price is at a discount of 8.35% over Tuesday’s closing price of Rs 70.65 on the BSE.

The government will sell 37 million equity shares in Hindustan Copper at a floor price of Rs 64.75 apiece through a two-day offer-for-sale (OFS) beginning today, with an option to issue a similar number of shares in case of over subscription.

“The President of India, acting through and represented by the Ministry of Mines, Government of India proposes to sell up to an aggregate of 37 million equity shares of face value of Rs. 5 each of Hindustan Copper, on August 02, 2017 (for non-Retail Investors) and August 03, 2017 (for Retail Investors and for non-Retail Investors who choose to carry forward their bids) with an additional option to sell up to 37 million equity shares of the company,” the company said in a regulatory filing.

The government currently holds 82.88% stake in Hindustan Copper and the stake sale with green shoe option would help the government meet the minimum public shareholding norm of market regulator Sebi.

At 09:21 am; the stock was trading 7% lower at Rs 65.70, as compared to 0.12% rise in the S&P BSE Sensex. A combined 715,335 shares changed hands on the counter on NSE and BSE so far.

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Intraday support on Nifty seen at 10,070, says Prabhudas Lilladher

STOCK MARKET

Nifty outlook:
Nifty is at the peak level and has been surging ahead day by day. However, market now awaits the RBI Policy announcement, which would trigger a good swing either ways. For Nifty, the support for the day is seen at 10,070 while resistance is seen at 10,160.


BUY PVR  
CMP: Rs 1375.10    
TARGET: Rs 1510    
STOP LOSS: Rs 1325

The stock has made a correction from the recent peak of Rs 1600 to fall till Rs 1320 and now has bottomed out at around the 200-DMA which is at Rs 1330. The stock has given a positive candle indicating positive bias and also the RSI has given a positive trend reversal signaling a buy with good decent volume participation. We recommend a buy in this stock for an upside target of Rs 1510 keeping a stop loss of Rs 1325.

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Buy Atul Auto, DCB Bank, says HDFC Securities

STOCK MARKET - Top trading ideas by technical analysts (PCG desk) at HDFC Securities:

Buy Atul Auto
CMP: Rs 440
STOP LOSS: Rs 420
TARGET: Rs 470

Stock has given breakout on the daily chart with higher volumes where it managed to close above the 200 day simple moving average, after three months. Oscillators and mometum indicators like MACD and RSI on the daily charts are showing strength in the stock. It reported 7% rise in its July month sales over July 2016. Considering the technical evidences discussed above we recommend buying the stock between 440 and 430, for the target of 470, keeping SL at 420.

Buy DCB Bank
CMP: Rs 200
STOP LOSS: Rs 192
TARGET: Rs 215

Stock has given breakout on the daily chart today with higher volumes, where it closes above last 10 day trading range. Short term moving averages are trading above long term moving averages indicating bullish momentum in the stock. Oscillators showing sign of strength on medium to long term chart. Private sector bank as a sector is doing well. Considering the technical evidences discussed above we recommend buying the stock between 200 and 196, for the target of 215, keeping SL at 192.

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