Indian benchmark equity indices fell on Thursday after the RBI monetary policy, pulled down by banking stocks, after the unexpected announcement of reducing liquidity in the financial system. Investors also remained cautious ahead of the US inflation data announcement.
The Reserve Bank of India (RBI) kept the key interest rates unchanged for third straight meeting but indicated tighter policy if food prices drive inflation higher.
The BSE Sensex declined 307.63 points or 0.47 per cent to close at 65,688.18. The NSE Nifty fell 89.45 points or 0.46 per cent to settle at 19,543.10.
“The MPC has delivered in line with market expectations on rates, stance and tone, with retention of rates and stance and the tone turning hawkish. The significant change is the upward revision in FY24 CPI inflation projection from 5.1% to 5.4%. This means the high policy rates will remain high for long and, therefore, a rate cut can be expected only in Q1 FY25. From the market perspective, there are no positive or negative surprises in the policy,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
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Top Stocks To Watch On 11 August:
Life Insurance Corporation of India (LIC)
Government-run Life Insurance Corporation of India (LIC) recorded a 14-times year-on-year growth in net profit at Rs 9,543.7 crore for the first quarter of FY24. According to a regulatory filing, the super-normal growth in net profit is primarily attributed to a base effect and a change in accounting entry, including a transfer of funds from non-participating policies to shareholders account as a part of accretion on the available solvency margin.
Hero MotoCorp
The country’s largest two wheeler manufacturer posted a profit of 32 per cent at Rs 825 crore in June quarter of FY24. The company’s revenue from operations for the quarter stood at Rs 8,767 crore. The total income increased 6 per cent to Rs 8,989 crore. The company said it sold 13.53 lakh units of motorcycles and scooters in Q1FY24.
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Zee Entertainment
The stock is expected to be in focus for the second consecutive session, after the NCLT’s Mumbai bench approved the Zee-Sony India merger on Thursday.
Cipla
Chairman Yusuf Khwaja Hamied called all reports of stake sales by the promoters as “speculative”. “I would like to inform you as the chairman of Cipla, that all the news that you are hearing is speculative and all the clarifications for this have been made to the stock exchange... And whatever information given to the stock exchange is in the public domain and is public knowledge," said the chairman during the 87th Annual General Meeting (AGM) on Thursday.
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