Market Live: Sensex jumps 140 points, Nifty rises; Dr Reddy, Bajaj Auto, Asian Paints top gainers

BSE Sensex and NSE Nifty trade higher on Friday. Photo: Mint

Mumbai: Indian bonds rallied on Friday, sending the benchmark 10-year yield down as much as 6 basis points, after much weaker than expected economic growth data raised hopes the central bank would cut rates at its next meeting in October. On Friday morning, Indian shares also climbed on rate-cut hopes. The Sensex was up nearly 0.5%. Data late on Thursday showed India’s economic growth unexpectedly slid to a three-year low of 5.7% in the June quarter, as business activity remained disrupted over the country’s shock cash squeeze and caution before the launch of a new GST.

The weak growth is raising hope the Reserve Bank of India (RBI) will cut its main policy repo rate at its next policy meeting in early October, after cutting it by 25 bps last month. However, much will depend on August consumer price data due on 12 September. The latest report showed annual retail inflation had risen 2.36% in July from a year earlier, the first pick-up in four months.

But that still is well below the RBI’s consumer inflation target of 4%. “I think the case for a rate cut has become even more compelling now,” said Mahendra Kumar Jajoo, head of fixed income at Mirae Asset Global Investments in India. The RBI “had to revise down their inflation forecast and they have to possibly now revise down their GDP forecast,” Jajoo added.

The 10-year bond yield was down 4 bps at 6.49% after earlier falling to 6.47%. On Thursday, the yield had ended at 6.53%. Still, whether the RBI will be willing to cut rates remains unclear. The RBI has cut its inflation projections for the year, and cut the repo rate by 25 bps last month, but has reiterated it wants to continue to monitor inflation and other economic data to justify further rate cuts. Subsequent minutes from the 2 August meeting reinforced the caution by most of the six-member monetary policy committee, with some warning that consumer prices could start accelerating later this year. Here are the latest updates.

2.15pm: BSE Sensex trades higher by 139 points, or 0.44%, to 31,870, while the Nifty 50 rises 48 points, or 0.48%, to 9,966.

1.20pm: Dr Reddy’s Labs, Bajaj Auto, Asian Paints and Kotak Mahindra Bank are major gainers with gains to the tune of 8.17%, 3.47%, 2.73%, and 2.05%, respectively.

12.50pm: BSE Sensex trades higher by 133 points, or 0.42%, to 31,864, while the Nifty 50 rises 41 points, or 0.42%, to 9,959.

11.40am: Shares of Aditya Birla Capital Ltd (ABCL) were listed at Rs250 on the NSE. The scrip traded at Rs237.50, 5% lower than the listing price.

10.45am: BSE Sensex trades higher by 147 points, or 0.46%, to 31,878, while the Nifty 50 rises 43 points, or 0.43%, to 9,961.

■ 10.10am: IRB Infrastructure Developers Ltd rose 2.1% to Rs218.70 after the company said its board approves sale of special purpose vehicle IPATRL to IRB InvIT Fund for Rs 1,569 crore.

■ 10.00am: Sun TV Network Ltd rose 10% to Rs767. The company will hold its annual general meeting on 22 September.

■ 9.45am: Pharma stocks gains. Dr Reddy’s Lab rose 7.8%, Strides Shasun 3%, Marksans Pharma 2.9%, Divi’s Lab 2.8%, Hikal 2.4%, Wokhardt Ltd 2.3%, Lupin Ltd 2.3%, Netctar Life 2.1%, Sun Pharma 2%, Aurobindo Pharma 2%, Gleanmark Pharma 2%, Torrent Pharma 1.9%.

■ 9.33am: BSE Sensex trades higher by 54 points, or 0.17%, to 31,785, while the Nifty 50 rises 18 points, or 0.18%, to 9,936.

■ 9.30am: Dr Reddy’s Laboratories Ltd rose 7% to Rs2,158.50 after Nasdaq-listed Vivus Inc entered into a settlement agreement with the company to resolve a long-pending patent litigation related to weight management capsules Qsymia. According to a statement issued by the US-based drug maker, the litigation, pending since 2015, resulted from the submission of an abbreviated new drug application (Anda) by Dr Reddy’s seeking approval to market generic versions of Qsymia.

■ 9.25am: Bajaj Auto Ltd rose 2% to Rs2,862.90 after the company reported a 3% increase in its August sales to 3.35 lakh units from 3.25 lakh units a month ago.

■ 9.20am: Welspun Enterprises Ltd rose 4.4% to Rs142.10 after the company said it got Rs1,161 crore order from National Highways Authority of India (NHAI).

■ 9.18am: Strides Shasun Ltd rose 2% to Rs925.55 after the company said its Bangalore unit got establishment inspection report from US drug regulator.

■ 9.15am: The rupee opened at 63.95 a dollar. At 9.15am, the rupee was trading at 63.93 a dollar, down 0.04% from its Thursday’s close of 63.91.

■ 9.10am: The 10-year bond yield was at 6.5% compared to its previous close of 6.525%. Bond yields and prices move in opposite directions.

■ 9.00am: Asian currencies were trading higher. South Korean won was up 0.46%, China offshore 0.25%, Taiwan dollar 0.22%, China renminbi 0.17% and Philippines peso 0.11%. However, Malaysian ringgit was down 0.1%.

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