The headline equity indices reversed losses in morning trade after the Reserve Bank of India (RBI) kept the repo rate unchanged after its monetary policy decision. The Nifty traded above the 17,550 mark. PSU bank, realty and media stocks were in demand while consumer durables, FMCG and IT scrips declined.
The barometer index, the S&P BSE Sensex, was up 92.86 points or 0.16% to 59,782.17. The Nifty 50 index added 26.05 points or 0.15% to 17,583.1
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.41% while the S&P BSE Small-Cap index gained 0.52%.
The market breadth was strong. On the BSE, 2,173 shares rose and 925 shares fell. A total of 126 shares were unchanged.
RBI Monetary Policy:
The Reserve Bank of India (RBI) monetary policy committee (MPC) has voted unanimously to keep the repo rate unchanged at 6.5%.
The MPC also decided by a majority of five out of six members to remain focused on 'withdrawal of accommodation' to ensure that inflation progressively aligns with the target while supporting growth.
He also clarified that the decision to pause on rate is for this meeting only. Monetary Policy Committee will not hesitate to take any action in future, said the RBI governor.
RBI Governor Shaktikanta Das raised 2023-24 GDP growth forecast to 6.5% from 6.4% previously.
Meanwhile, 2023-24 CPI inflation forecast was lowered to 5.2% from 5.3% previously.
While we have kept the policy rate unchanged, this decision was taken based on our assessment of the macroeconomic and financial conditions with reference to information available upto today. Our job is not yet finished and war against inflation has to continue until durable decline in inflation closer to target is seen, said Das.
Das added that the present policy rate can still be regarded as accommodative. He said RBI will continue to adopt a nuanced and agile approach to liquidity management, said Governor Shaktikanta Das. The central bank will remain flexible in meeting productive requirements of the economy, as well as use two-way operations as may be necessary.
Buzzing Index:
The Nifty PSU Bank index gained 1.05% to 3,764.80. The index declined 0.79% in the past trading session.
Bank of Maharashtra (up 2.92%), Punjab & Sind Bank (up 2.5%), Indian Overseas Bank (up 2.19%), UCO Bank (up 1.97%), Indian Bank (up 1.71%), State Bank of India (up 1.54%), Canara Bank (up 1.39%), Punjab National Bank (up 1.28%), Central Bank of India (up 1.21%) and Union Bank of India (up 1.19%) advanced.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose to 7.280from 7.273 in previous trading session.
In the foreign exchange market, the rupee edged slightly lower against the dollar. The partially convertible rupee was hovering at 82.91, compared with its close of 81.9050 during the previous trading session.
MCX Gold futures for 5 June 2023 settlement declined 0.43% to Rs 60,592.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.15 to 102.01.
The United States 10-year bond yield advanced 0.27% to 3.296.
In the commodities market, Brent crude for June 2023 settlement fell 82 cents or 0.96% to $84.17 a barrel.
Stocks in Spotlight:
Tata Steel added 0.14%. The steel major's India business reported 5.1% rise in crude steel production to 5.15 million tons in Q4 FY23 as compared with 4.90 million tons posted in Q4 FY22. On quarter on quarter basis, crude steel production increased 3% from 5 million tons in Q3 FY23.
Ujjivan Small Finance Bank rallied 4.33% after the bank announced that its total deposits aggregated to Rs 25,481 crore as of 31 March 2023, a growth of around 39% over Rs 18,292 crore as of 31 March 2022. On a sequential basis, the bank's deposits have increased by 10%. Total depoits amounted to Rs 23,203 crore as of 31 December 2022.
KEC International gained 1.26% after the company announced that it has secured new orders of Rs 1,213 crore across its various businesses. In the transmission & distribution (T&D) business, the company has secured orders for T&D projects in India, SAARC, Middle East, East Asia Pacific and Americas. The Civil business of KEC has bagged an order in the urban infra segment in India. The company's Cables business has secured orders for various types of cables in India and overseas.
Global Markets:
Asian stocks were trading lower on Thursday as Wall Street digested the latest ADP private payrolls report, which showed slowing job growth in March.
US stocks ended mixed on Wednesday as investors look towards OPEC+ production cuts and inflation impact of the same with uncertainty still looming for the global economy.
No comments:
Post a Comment