The S&P BSE Sensex on Wednesday ended session at 54,892.49, down by 215 points – against its previous day’s close at 55,107.34 points. The broader Nifty 50 of the National Stock Exchange closed session at 16,340 – down by 75 points.
Unveiling the third monetary policy for 2022-23, RBI Governor Shaktikanta Das said the Indian economy remained resilient, and the central bank will continue to support growth. RBI on Wednesday maintained its growth projection at 7.2% for financial year 2022-23.
RBI on Wednesday raised the interest rate by 50 basis points to a two-year high of 4.9 per cent as it doubled down to tame inflation that has surged in the last couple of months. The rate hike comes on the back of a 40 basis points increase effected by RBI at an unscheduled meeting on May 4.
Indian Sugar Manufacturers Association (ISMA) increases 2021-22 sugar output estimate to 36 MT. The country had achieved a sugar output of 35.7 MT till June 6 as compared to 30.7 MT during the same period last year. ISMA has inked contracts to export around 9.5 MT sugar for 2021-22 out of which 8.5 MT of sugar was exported during the period of October to May.
“The repo rate hike by RBI will impact the home loan borrowers, both the existing as well as the new ones. The hike is positive for the banks and the NBFCs but it is a burden for the borrowers. RBI has raised its inflation forecast for FY23 by 100 basis points to 6.7%, citing supply shocks emanating from the Russia-Ukraine war and the consequent surge in commodity and oil prices. This is very worrisome,” Kunal Valia, Chief Investment Officer – Listed Investments at Waterfield Advisors said.
The rise in inflation will impact the purchasing power. Simultaneously, the borrowing cost has gone up too. This dual phenomenon will lead to a slowdown in the economy. Having said that, the repo rate is still lower than the pre-pandemic level of 5.15 percent. There is room for RBI to increase the repo rate up to 5.5%, he added.
Based on the open interest future percentage, Gujarat Gas, GNFC, Polycab India, Deepak Nitrite, Metropolis Healthcare, ICICI Lombard, SRF, LIC Housing Finance, Aditya Birla Fashion & Retail and Bata India saw highest short build-up.
An increase in open interest, along with a decrease in price, mostly indicates a build-up of short positions.
The pharma major said it has received tentative approval from the United States Food and Drug Administration (FDA) for its abbreviated new drug application (ANDA) Ivacaftor tablets which are available in 150 mg strength. This drug is a generic equivalent of Kalydeco tablets of Vertex Pharmaceuticals Incorporated.
This product will be manufactured at Lupin’s Nagpur facility in India. Ivacaftor tablets had estimated annual sales of $109 million in the US (as per IQVIA MAT March 2022).
