RBI Monetary Policy Committee to announce interest rate decision today. Check out the latest news, developments, and analysis!
Market update at 10 AM: Benchmark indices continues trading in the green with Sensex up 255.48 points or 0.44% at 58554.28, and the Nifty adding 69.50 points or 0.40% at 17451.50.
Zomato board rejects its EY valuation deriving from Blinkit deal:
Zomato’s board has decided to keep the fair value of its shares at Rs 70.76 apiece for the all-stock deal to acquire quick commerce company Blinkit despite a valuation report by EY that pegs the foodtech company’s shares at a lower price.
According to a BSE filing by Zomato, accounting major EY had first reached upon the price of Rs 70.76 in a report on June 24, the date on which the acquisition was announced.
However, after the BSE and NSE had asked for a fresh evaluation based on other methods, the accounting firm came up with a lower price for Zomato shares on July 20. The company has not disclosed what the lower price was.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities:
COMEX gold trades little changed near $1805/oz supported by weaker US dollar and lower bond yields. Gold has also benefitted from safe haven buying amid increased tensions between US and China over Taiwan and increasing growth concerns. However, weighing on price is hawkish comments from Fed officials, concerns about consumer demand in India and China and continuing ETF outflows. Gold has moved close to $1800/oz level after a brief correction indicating positive momentum however we may see further gains only if US jobs report disappoints and further pressurizes US dollar.
#OnCNBCTV18 | Fed speakers are telling us that rates will remain high for longer. Indian market has not fallen as much as other markets, says Samir Arora (@iamsamirarora) of Helios Capital pic.twitter.com/g1BDSIH8m8
— CNBC-TV18 (@CNBCTV18Live) August 5, 2022
Force Motors July auto sales: Total sales up 26.3% at 2,299 units YoY
Crompton Greaves Consumer large trade: 216.4 lakh shares (3.44% equity) worth Rs 808.6 crore change hands at Rs 373 per share
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
RBI rate action today is unlikely to impact markets. The most likely scenario of a 30 to 35 bp rate hike is already known and discounted by the market . Market will be looking forward to the RBI’s commentary on inflation, GDP growth for FY 23 and other macros like CAD.
The momentum in the market now is influenced by global cues and strong FII buying which has crossed Rs 5300 crore so far in August. The decline in Brent crude to $94 is positive for India’s macros and the dip in dollar index to below 106 again augur well for capital flows to India. FII buying happening in sectors like capital goods, FMCG, construction and power is likely to impart resilience to these segments.
Financial stocks have edged higher ahead of RBI MPC outcome led by ICICI Prudential, HDFC Life and SBI
Tapan Patel, Senior Analyst (Commodities), HDFC Securities:
Gold prices traded firm on Friday with spot gold prices at COMEX were trading near $1791 per ounce in the morning trade. Gold prices extended gains heading for positive week ending on economic slowdown worries and risk premium over China – Taiwan tension. The traders and investors are awaiting for US non-farm payroll data in the evening session.
We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1775 and resistance at $1810 per ounce. MCX Gold October support lies at Rs 51800 and resistance at Rs 52500 per 10 grams.
Market at open: Sensex is up 137.02 points or 0.24% at 58435.82, and the Nifty added 42.70 points or 0.25% at 17424.70.
Rupee opens: Rupee opens at 79.15 per US dollar against August 4 close of 79.47 per US dollar
