The domestic equity market ended on a positive note on Wednesday after the Reserve Bank of India (RBI) kept the repo rate unchanged at 6.25 per cent, mostly in line with expectations.
However, the central bank cut the statutory liquidity ratio or SLR by 50 basis points to 20 per cent starting June 24.
The S&P BSE Sensex rose 81 points to end the session at 31,271, with Reliance Industries BSE 1.96 %, ICICI Bank BSE 1.91 % and Maruti being the major contributors to the surge. The 30-share pack, which opened at 31,252 against the previous close of 31,190, witnessed a 174-point swing in intraday trade.
In the interaction with media, the RBI Governor did not sound overly worried about GST, saying the implementation of the tax reforms was not expected to have any material impact on inflation.
The RBI projected the headline inflation to be in the range of 2-3.5 per cent in the first half of the year and 3.5-4.5 per cent in the second half.
RBI also revised the projected real GVA growth for this financial year to 7.3 per cent, down 10 basis points from the earlier projection made in April 2017.
In the broader market, the S&P BSE Midcap index gained 68 points to close at 14,800, with Bharat Forge BSE 3.78 %, Colgate-Palmolive BSE 3.82 % (India) and Bajaj Holdings & Investment being the major contributors to the gains. On the other hand, the S&P BSE Smallcap index pipped the headline Sensex to rise 115 points and end the session at 15,425.
In the sectoral landscape, IT stocks bled the most amid a media report which quoted Infosys BSE -1.83 % spokesperson saying that the company’s clients were asking for 20-30 per cent cut in prices for projects. However, Infosys' COO clarified later in the day that the comments on price cut was misquoted.
The S&P BSE Information Technology index plunged nearly 2 per cent to settle at 10,315.26 with TCSBSE -2.97 %, Infosys and Wipro BSE -2.10 % being the major contributors to the fall.
"It's a liquidity driven rally but now the pace of rise of the index is showing sign of exhaustion. On the other hand, rotational buying in index majors is pushing the markets higher and also keeping the sentiment positive. In such scenario, it's advisable to limit your leveraged positions and give preference to index majors," said Jayant Manglik, President, Retail Distribution, Religare Securities Ltd.
Globally, Hong Kong stocks ended lower on Wednesday after hitting a fresh 23-month intraday high, as short-sellers targetted more listed companies.
The Hang Seng fell 0.1 per cent to 25,974, while the China Enterprises Index gained 0.1 per cent to 10,611 points, said a Reuters report.
Stocks closed higher in China. The blue-chip CSI300 index rose 1.2 per cent to 3,533, while the Shanghai Composite Index advanced 1.2 per cent to 3,140.
However, the central bank cut the statutory liquidity ratio or SLR by 50 basis points to 20 per cent starting June 24.
The S&P BSE Sensex rose 81 points to end the session at 31,271, with Reliance Industries BSE 1.96 %, ICICI Bank BSE 1.91 % and Maruti being the major contributors to the surge. The 30-share pack, which opened at 31,252 against the previous close of 31,190, witnessed a 174-point swing in intraday trade.
In the interaction with media, the RBI Governor did not sound overly worried about GST, saying the implementation of the tax reforms was not expected to have any material impact on inflation.
The RBI projected the headline inflation to be in the range of 2-3.5 per cent in the first half of the year and 3.5-4.5 per cent in the second half.
RBI also revised the projected real GVA growth for this financial year to 7.3 per cent, down 10 basis points from the earlier projection made in April 2017.
In the broader market, the S&P BSE Midcap index gained 68 points to close at 14,800, with Bharat Forge BSE 3.78 %, Colgate-Palmolive BSE 3.82 % (India) and Bajaj Holdings & Investment being the major contributors to the gains. On the other hand, the S&P BSE Smallcap index pipped the headline Sensex to rise 115 points and end the session at 15,425.
The S&P BSE Information Technology index plunged nearly 2 per cent to settle at 10,315.26 with TCSBSE -2.97 %, Infosys and Wipro BSE -2.10 % being the major contributors to the fall.
"It's a liquidity driven rally but now the pace of rise of the index is showing sign of exhaustion. On the other hand, rotational buying in index majors is pushing the markets higher and also keeping the sentiment positive. In such scenario, it's advisable to limit your leveraged positions and give preference to index majors," said Jayant Manglik, President, Retail Distribution, Religare Securities Ltd.
Globally, Hong Kong stocks ended lower on Wednesday after hitting a fresh 23-month intraday high, as short-sellers targetted more listed companies.
The Hang Seng fell 0.1 per cent to 25,974, while the China Enterprises Index gained 0.1 per cent to 10,611 points, said a Reuters report.
Stocks closed higher in China. The blue-chip CSI300 index rose 1.2 per cent to 3,533, while the Shanghai Composite Index advanced 1.2 per cent to 3,140.
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