Share Market Highlights: Sensex closes 89 pts higher at 58387, Nifty closes just shy of 17400

Share Market News Today | Sensex, Nifty, Share Prices Highlights: Domestic benchmark indices saw a volatile trading session on Friday. S&P BSE Sensex danced between gains and losses for most of the day before closing 89 points or 0.15% higher at 58,387. NSE Nifty 50 index added 15.5 points or 0.09% to settle at 17,397. Indi VIX closed 1.77% lower at 18.92. Mahindra & Mahindra was the top laggard on Sensex, down 2%, followed by Reliance Industries, Maruti Suzuki India, and IndusInd Bank. Ultratech Cement added 2.31%, accompanied by ICICI Bank, Airtel.

07:49 (IST) 5 Aug 2022 RBI Monetary policy: MPC to increase repo rate by 50bps, may tone down more hike fears to offset hawkish move

The RBI MPC in its upcoming August meeting could continue with frontloading of rate hikes to at least above its pre-covid level of 5.15% to keep a check on inflation. Elevated inflation prints have compelled central banks globally to speed-up monetary policy tightening to limit impact of high energy and food prices. The US Fed reserve in its July meeting raised rates by 75 bps to 2.25-2.5%, in line with its guidance and street expectations. The European Central Bank raised the key benchmark rate for the first time in 11 years by 50 bps. From its last policy meeting, the environment has changed – domestic inflation saw moderation, global market fear of recession has ebbed and the liquidity has tightened.

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07:48 (IST) 5 Aug 2022 Nifty offers limited upside

“After the sharp run up in the last few days, Nifty now trades at 20x FY23 PE, which is above its 10-year average, thus offering limited upside in the near term. RBI’s policy outcome on Friday would be the key event that the market would track. Going forward, it could be a tug of war between domestic and global factors which would determine the market direction,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.