The Board of Directors of the Company has approved the reappointment of VT Ravindra as Managing Director of the Company, for a period of 3 years effective from April 01, 2024. The Board has also approved the formulation of a Share-based Long Term Incentive Plan viz., VST Tillers Tractors – Restricted Stock Unit Plan 2024’ (“RSU Plan” / “Plan”) in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, the company said in a regulatory form. The stock trades at Rs 4,068.10 up 0.64%.

(Source: NSE)

Indian government bond yields remained range-bound, trading sideways as Reserve Bank of India Governor Shaktikanta Das-headed Monetary Policy Committee (MPC) announced its decision on the monetary policy on Friday and kept the repo rate unchanged at 6.50%. The benchmark 10-year bond yield fluctuated within a tight range of three basis points and stood at 7.2375%, slightly lower than the previous session’s closing rate of 7.2382%.

BSE FMCG index shed 0.5 percent dragged by Bajaj Hindusthan, Shree Renuka Sugars, Ugar Sugar Work, Dhampur Sugar Avad Sugar

(Source: NSE)

“The RBI MPC voted unanimously to keep policy repo rate unchanged at 6.5% on Dec 08, its fifth consecutive pause, as the near-term outlook is masked by risks to food inflation which might lead to an inflation uptick in November and December. The MPC continued with the ‘withdrawal of accommodation’ stance (with 5:1 majority). The GDP forecast for FY24 was raised to 7.0% from 6.5% while inflation forecast was maintained. The RBI will remain highly alert and prepared to undertake appropriate policy actions, as warranted as per the evolving outlook to address potential risks. This was witnessed in the recent pre-emptive measure to curtail the growth of unsecured loans. The RBI continues to target 4.0% CPI. Consequently, a rate cut soon remains unlikely. We expect rate cut perhaps in Q1FY25 but that would be data dependent. Equity and bond markets remained largely stable post the announcement as it was on expected lines,” said Dhiraj Relli, MD & CEO, HDFC Securities.

“On the interest rate trajectory, we see RBI closely following the trails of global central banks. If the probability of an early interest rate cut by the Fed materializes, we think that the RBI will follow suit. Interest rate futures are pricing a 60% probability of a Fed rate cut as early as March 2024 and an 80% probability of a rate cut in May 2024. Optically, RBI may attribute domestic inflation as the major determinant of the policy rate, but we infer that the central bank is also largely influenced by the interest rate dynamics in the US and Europe given its wider impact on the currency, trade, and foreign capital flows. Given that there is a clear consensus of a reversal of the monetary policy action by the Fed and if it cuts interest rates in March, we fancy a rate cut by RBI in April, when compared with the consensus of a cut in Q2 FY25,” said Hitesh Jain, Strategist- Institutional Equities Research YES Securities.

“The rate pause by RBI is on expected lines. Rate increases over last 1.5 years have been absorbed well without any impact on buyer interest, which remains very robust. And this pause will further help sustain the momentum. The GDP growth at 7.6% for Q3 was a positive surprise, but it was largely led by government consumption and capex. This pause may also help with private consumption and capex, which will be helpful for the economy especially as we will likely see a deceleration in government capex next year due to elections,” said Ashish Khandelia – Founder at Certus Capital and Earnnest.me.

“As expected, the Reserve Bank of India’s Monetary Policy Committee has kept the repo rate unchanged. This is the fifth consecutive time that the central bank has kept the rate unchanged as GDP growth continues to gain momentum and all economic indicators point towards a robust growth in the economy. Inflation too has been reined in and with signs of recovery in rural demand, manufacturing and infrastructure sectors too are showing healthy signs of recovery during the financial year. The central bank has also taken timely measures to control the unbridled growth of non-secured lending,” said Jitendra Gohil, Chief Investment Strategist, Kotak Alternative Asset Managers.

“The policy status quo was in line with expectations. The upward revision in GDP growth estimates would mean continued momentum in equities as well as interest rate sensitives. RBI has not sounded as hawkish as markets expected, hence bond yields may ease a tad. However, given India’s CPI data and impending US FOMC decision, upside in prices may be limited. Rates seem to have peaked out and hence rise in yields could be an opportune time to add duration to one’s portfolio,” said Lakshmi Iyer, CEO-Investments & Strategy, Kotak Alternate Asset Managers.

“The Nifty reached a new all-time high as the RBI Governor announced the monetary policy, surpassing the 21,000 mark. The RBI Governor maintained the key lending rates at 6.50%, a decision that had already been expected and factored in by the market participants. The upward revision of the real GDP growth projection for 2023-24 is anticipated to have a positive impact on the market. In the short term, the Nifty might see volatility; only a clear breakout above 21,000 could drive the index towards the range of 21,550-21,700. A critical support level is situated at 20,800,” said Rupak De, Senior Technical analyst at LKP Securities.

“As expected, the RBI has maintained the status quo on policy rates, with no change in its stance. The regulator has revised its growth forecast to 7% vs 6.5% earlier. While inflation estimates have been retained, near-term inflationary pressures primarily due to food inflation are expected to be visible. This development could make RBI maintain the status quo on rates in the upcoming meetings before considering rate cuts in the latter part of H1FY25. With the recent move by the RBI to increase risk weights on personal and credit card loans, we expect credit growth to slow down in these segments. The Retail and SME segment would lead to credit growth hereon. Pressures on margins for banks will continue. Currently, we prefer the larger banks vs the smaller/mid-sized peers,” said Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS.

“The Nifty 50 benchmark surpassed the 21,000 mark for the first time following the Reserve Bank of India’s decision to maintain the repo rate at 6.5 percent for the fifth consecutive time. Concurrently, the Sensex experienced further gains, surging by 300 points to reach a new peak of 69,831. In the short term, the market is likely to exhibit a range-bound behavior, with the Nifty expected to fluctuate within the 20,850-21,000 range. Key support levels for the Nifty are between 20,675-20,725, while resistance is anticipated in the 20,940-21,000 range. Similarly, the Bank Nifty is likely to find support in the 46,500-46,650 range, with resistance levels in the 46,925-47,000 range. A period of consolidation around current levels is likely before the initiation of the next phase of the market rally,” said Shrey Jain, Founder and CEO SAS Online.

“In line with market expectations, the MPC’s decision to maintain interest rates as well as its policy stance is unchanged. Inflation projections were maintained, although the near-term concerns over food inflation have not gone away. In terms of inflation, crude is providing a little comfort for the Reserve Bank. Core inflation remains stuck, but it is at a comfortable level. There is also a cooling off of inflation around the world. We’re convinced the rates are picking up and should continue to be heard for some time. The US Federal Reserve is expected to cut its interest rate around the middle of next year, and flows in JP Morgan’s bond index funds are scheduled to start before that. The yield on GSec should decrease by about 50-75 basis points as a result of both factors. We remain positive on long-term debt funds from 1-2 year perspective,” said Mukesh kochar National Head of wealth at AUM Capital

“With regard to the Indian economy, the RBI holds the view that the Indian economy has presented a picture of resilience and momentum. India’s Real GDP growth for FY24 is projected at 7 percent from 6.5 percent while Real GDP for Q1FY25 is projected at 6.7%, for Q2FY25 at 6.5%, and for Q3FY25 at 6.4%. On the other hand, the inflation projection for FY2024 stands at 5.4%. With regards to global arena, RBI holds the view that the global economy remains fragile due to elevated debt levels, lingering geopolitical tensions and extreme weather conditions,” said Aamar Deo Singh, Head Advisory, Angel One.

“It is definitely a big moment as Nifty 50 hit 21,000 for the first time today, more so when we started the year on a subdued note and now well poised to end the year in high spirits. Post this the Nifty 50 is trading with gains of more than 15% on ytd basis which is again a reflection of the thumping confidence investors have shown in resilience of Indian economy. In today’s policy announcement RBI has also raised the GDP growth rate forecast to 7% for the current financial year which also helped in boosting sentiments,” said Narendra Solanki, Head – Fundamental Research, Anand Rathi Shares and Stock Brokers.

“In line with market expectations, the MPC’s decision to maintain interest rates as well as its policy stance is unchanged. Inflation projections were maintained, although the near-term concerns over food inflation have not gone away. In terms of inflation, crude is providing a little comfort for the Reserve Bank. Core inflation remains stuck, but it is at a comfortable level. There is also a cooling off of inflation around the world. We’re convinced the rates are picking up and should continue to be heard for some time. The US Federal Reserve is expected to cut its interest rate around the middle of next year, and flows in JP Morgan’s bond index funds are scheduled to start before that. The yield on GSec should decrease by about 50-75 basis points as a result of both factors. We remain positive on long-term debt funds from 1-2 year perspective,” said Mukesh Kochar National Head of wealth at AUM Capital.

“Monetary policy was on expected lines. Monetary policy committee (MPC) kept its stance same as withdrawal from accommodation to ensure taming inflation under target. However, at the same time, RBI highlighted the risk of over tightening in the backdrop of global slowdown. This is despite the increase in GDP forecast to 7% for FY2024 as compared to 6.5% earlier. Hence, it is more of a balanced view or neutral stance as compared to inflation-focused commentary earlier. We remain positive on equity markets in the near-to-medium term with real estate, banks, consumer and engineering/capital goods as preferred sectors,” said Gaurav Dua, Head – Capital Market Strategy, Sharekhan by BNP Paribas.

“The RBI policy has maintained the expected line with no change in policy rates or stance. Governor Das expressed confidence in economic growth, anticipating inflation to reach 4.2% by Q3 2024. Our market continues its bullish momentum, with the Nifty reaching a significant milestone of 21,000. We believe this momentum will persist, potentially experiencing some consolidation along the way. Banking and financial stocks are particularly well-positioned to outperform, given their current valuations and fundamental strengths. Nifty can head towards 21,275/21,500 and Bank Nifty can test 48,800/50,000 in the medium term,” said Santosh Meena, Head of Research, Swastika Investmart.

“The RBI maintained the exact status quo with regard to policy rates and liquidity stance, as anticipated. The RBI has increased its GDP forecast for FY24 by 50 basis points, to 7%, while leaving the inflation forecast unchanged. Although the magnitude of the GDP forecast upgrade exceeded our initial projections, all other declarations and positions remained largely consistent with our expectations. As of now, the RBI anticipates that liquidity conditions will remain stable. The policy was, on the whole, less hawkish than had been anticipated. Simultaneously, the governor issues specific warnings regarding premature adjustments to monetary policy rates and liquidity stance, which indicate that the rate pause and liquidity withdrawal stance may persist for a longer duration than initially expected. We maintain our assessment that no rate reductions would occur until the latter part of fiscal year FY25. An upward adjustment to the GDP forecast would have a favourable effect on market sentiment,” said Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Shares and Stock Brokers.

The Company has received an order for availing input tax credit in FY 2017-18 from a supplier whose GSTIN has been cancelled by department on August 29, 2020 retrospectively w.e.f. July 1, 2017 despite the fact that the supplier had paid tax in relevant FY 2017-18. In the said order, the authority has demanded input tax credit of Rs 57,510/- along with interest and penalty, Dalmia Bharat said in a regulatory filing on the NSE. Stock trades at Rs 2,343.60 down 0.61%.

“As repeatedly stressed by us both in the print and electronic media, e.g., on October 10, October 11, December 5, December 6 and 7, 2023, the RBI kept the benchmark Policy rates unchanged and also retained the stance of the Policy as “the withdrawal of accommodation” on the basis of a comprehensive assessment of the global and domestic environment. This Policy is entirely in conformity with our pre-policy expectations. In view of the evolving growth-inflation trade-off, the MPC took the right call in holding the rates steady,” said Manoranjan Sharma, Chief Economist at Infomerics Ratings.

(Source: NSE)

RBI Governor Shaktikanta Das said that FY24 real GDP growth is projected at 7%. Real GDP growth for the next year is projected at 6.7% in Q1, 6.5 in Q2 and 6.4 in Q3.

The Nifty Realty stocks advanced 1.16% after the RBI announced to keep the interest rates unchanged. Prestige Estates and Swan Energy led the gains, soaring 3.71% and 3.36%, respectively.

The Nifty Media index advanced 1.57% to 2,431.80, with gains led by Nazara Tech at 3.69% and Zee Entertainment at 2.76%.

Auto index slips from day high, trades lower by 40 points at 17,827, the drag in auto index is led by Tube Investment, Bharat Forge, Balakrishna Industries, MRF, and Tata motors.

The Bank Nifty index added as much as 257.30 points, reaching 47,098.70, after the RBI MPC announced to keep the key interest rates unchanged. Bank of Baroda, HDFC Bank, PNB and IndisInd Bank are leading the gains.

Bank of Baroda, HDFC Bank, IndusInd Bank, Punjab National Bank, and IDFC Bank are the top gainers on Nifty Bank index