Nifty above 17,550 mark, RBI keeps repo rate unchanged at 6.50%.

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.

Market jumps for 4th day, Nifty settles above 17,550, HDFC twins rally

The domestic equity benchmarks ended with major gains on Wednesday, rising for the fourth trading session. After opening at 17,422.30, the Nifty 50 index marched higher as the session progressed to settle above the 17,550 mark. FMCG, IT and financial services stocks were in demand. On the other hand, PSU bank and auto scrips declined.

As per provisional closing data, the barometer index, the S&P BSE Sensex jumped 582.87 points or 0.99% to 59,689.31. The Nifty 50 index rose 159 points or 0.91% to 17,557.05. Both the indices climbed 3.6% in four sessions.

In the broader market, the S&P BSE Mid-Cap index added 0.11% while the S&P BSE Small-Cap index gained 0.95%.

The market breadth was strong. On the BSE, 2,583 shares rose and 953 shares fell. A total of 118 shares were unchanged.

The Reserve Bank of India (RBI) kicked off its monetary policy meeting on 3 April 2023. The outcome of the meeting will be announced on Thursday, 6 April 2023. The RBI's monetary policy committee (MPC) is expected to hike the repo rate by 25 basis points (bps) in order to combat rising inflation.

Economy:

India's gross domestic product (GDP) growth will likely soften to 6.3% in FY2024, as against earlier estimate of 6.6%, the World Bank stated in its India Development Update.

The bank stated that growth is set to be constrained by slower consumption growth and challenging external conditions. Rising borrowing costs and slower income growth will weigh on private consumption growth and government consumption is projected to grow at a slower pace due to the withdrawal of pandemic-related fiscal support measures.

IPO Update:

The initial public offer (IPO) of Avalon Technologies received bids for 8.76 lakh shares as against 1.14 crore shares on offer, according to stock exchange data at 15:24 IST on Wednesday (5 April 2023). The issue was subscribed 0.08 times.

The issue opened for bidding on Monday (3 April 2023) and it will close on Thursday (6 April 2023). The price band of the IPO is fixed at Rs 415-436 per share. An investor can bid for a minimum of 34 equity shares and in multiples thereof.

Buzzing Index:

The Nifty FMCG index rose 1.36% to 46,361.25. The index declined 0.36% in the past trading session.

Varun Beverages (up 2.86%), ITC (up 2.05%), Hindustan Unilever (up 1.89%), Tata Consumer Products (up 1.51%), Colgate-Palmolive (India) (up 1.12%), United Spirits (up 0.77%), Procter & Gamble Hygiene and Health Care (up 0.67%), Nestle India (up 0.63%), Marico (up 0.59%) and Godrej Consumer Products (up 0.55%) advanced.

On the other hand, Radico Khaitan (down 1.18%), Emami (down 0.98%) and United Breweries (down 0.86%) edged lower.

Britannia Industries added 0.11%. The FMCG major announced that its board has declared an interim dividend of Rs 72 per equity share for the financial year 2022‐23. The record date for determining the eligibility of shareholders for payment of interim dividend is Thursday, 13th April, 2023.

Marico gained 0.59%. The FMCG major said that its India business witnessed some improvement in year on year volume growth as against the preceding quarters and stayed in the mid-single digit zone.

Godrej Consumer Products rose 0.55%. The FMCG company on Wednesday announced that in India, it expects to deliver double-digit volume and value growth in Q4 FY23. The company stated that its domestic branded business growth was very strong registering volume and value growth in teens. This is in line with its strategy of volume driven category development. Overall, the growth was broad based and led by double-digit volume and value growth in both Home Care and Personal Care.

Stocks in Spotlight:

Housing Development Finance Corporation (HDFC) advanced 2.97% after the corporation announced that it had assigned individual loans amounting to Rs 9,340 crore during the quarter ended 31 March 2023, thereby recording a growth of 12% on YoY basis.

HDFC Bank gained 2.71%. The private lender said that its advances aggregated to approximately Rs 16,00,500 crore as of 31 March 2023, a growth of around 16.9 % over Rs 13,68,800 crore as of 31 March 2022. The bank's advances are higher by 6.2 % over Rs 15,06,800 crore as of 31 December 2022.

Bajaj Finance rose 0.87%. On a consolidated basis, customer franchise stood at 69.1 million as of 31 March 2023 as compared to 57.6 million as of 31 March 2022. In Q4 FY23, the customer franchise increased by 3.1 million. The company recorded highest ever increase in its customer franchise of 11.5 million in FY23.

Tata Motors added 0.58%. The auto major announced its partnership with Inchcape plc, a leading global automotive distributor, as their distributor for their commercial vehicles in Thailand. Through this partnership, Tata Motors will commence the sales and service of its commercial vehicles (CVs) across Thailand.

Vedanta rose 1.45%. The miner announced that its total aluminum production rose 0.35% to 5,74,000 tonnes in Q4 FY23 compared with 5,72,000 tonnes in Q4 FY22.

IndusInd Bank fell 1.27%. The private lender's net advances improved to Rs 2,89,965 crore as of 31 March 2023, registering a growth of 21% as compared to Rs 2,39,052 crore as of 31 March 2022.

Grasim Industries gained 1.89%. The cement major announced that it has entered into three term loan agreements to avail the rupee term loan facility aggregating to Rs 5,000 crore from Axis Bank in terms of the approval by the finance committee of the company.

Hindustan Zinc advanced 2.60%. The company announced that its mined metal production grew by 2% to 301,000 tonnes in Q4 FY23 as against 295,000 tonnes registered in Q4 FY22.

Adani Ports and Special Economic Zone (APSEZ) rose 1.30% after the company said it handled about 32 MMT of total cargo in March 2023, implying a year-on-year growth of about 9.5%. For the first time since July 2022, the company's volumes crossed the 30-MMT mark.

Bajaj Auto added 0.57%. The two wheeler maker's total sales declined 2% to 2,91,567 units in March 2023 compared with 2,97,188 units sold in March 2022. The domestic sales surged 47% to 1,86,522 units, while exports slumped 38% to 1,05,045 units in March 2023 over March 2022.

Indian Energy Exchange (IEX)rallied 2.05%. IEX announced that it has recorded 9,212 MU overall volume in March 2023, registering a 4% decline on year on year basis. On a sequential basis, the company's total volume grew 12% month on month (MoM) in March 2023.

Mahindra & Mahindra Financial Services rose 0.84%. The company said that overall disbursements in March 2023 were approximately Rs 5,600 crore, recording a growth of 42% on Y-o-Y basis.

Poonawalla Fincorp gained 0.33%. The company's total disbursements on standalone basis zoomed 151% to approximately Rs 6,370 crore in Q4 FY23 as against Rs 2,539 crore recorded in Q4 FY22. Assets under management (AUM) stood at Rs 16,120 crore as of 31 March 2023, recording a growth of 37% YoY and 16% QoQ.

Yes Bank shed 0.46%. The private lender's loans & advances improved to Rs 201,523 crore as on 31 March 2023, registering a growth of 11.3% as compared to Rs 181,052 crore as on 31 March 2022. Sequentially, loans & advances grew by 5.2% as against Rs 191,542 crore posted on 31 December 2022. The bank's deposits increased by 10.6% year on year (YoY) and 2.1% quarter on quarter (QoQ) to Rs 218,018 crore as on 31 March 2023.

Federal Bank slipped 3.38%. The private lender said that its total deposits aggregated to Rs 2,13,384 crore as of 31 March 2023, registering a growth of 17.4% as compared with Rs 1,81,701 crore as of 31 March 2022.

Global Markets:

Most of the European markets declined on Wednesday after data released today showed that German industrial orders soared 4.8% in February.

Additionally, French industrial production rose 1.2% on the month in February, ahead of the 0.5% growth expected, and a significant improvement from the revised drop of 1.4% the prior month.

Risk sentiments, however, continued to remain fragile with investors wary about the possibility of recessions on both sides of the Atlantic.

Meanwhile, markets in Asia ended mixed on Wednesday as Wall Street digested a key U.S. labor report that showed job openings dropped to their lowest level in nearly two years in February.

New Zealand's central bank raised its benchmark cash rate by 50 basis points to 5.25%. New Zealand's central bank said its latest rate hike decision was supported by the fact that inflation is still “too high and persistent.”

US stocks snapped four day winning streak in the last trading session as investors look towards OPEC+ production cuts and inflation impact of the same with uncertainty still looming for the global economy.

Market opens on firm note, breadth strong.

The headline equity indices were trading with modest gains in the early trade on buying demand in index pivotals. The Nifty traded above the 17,450 mark. Financial services, consumer durables and realty stocks were in demand while PSU bank, metal and auto stocks declined.

The barometer index, the S&P BSE Sensex, was up 249.41 points or 0.42% to 59,355.85. The Nifty 50 index gained 61.70 points or 0.35% to 17,459.75.

In the broader market, the S&P BSE Mid-Cap index shed 0.15% while the S&P BSE Small-Cap index gained 0.36%.

The market breadth was strong. On the BSE, 1,902 shares rose and 866 shares fell. A total of 123 shares were unchanged.

The Reserve Bank of India (RBI) kicked off its monetary policy meeting on 3 April 2023. The outcome of the meeting will be announced on Thursday, 6 April 2023. The RBI's monetary policy committee (MPC) is expected to hike the repo rate by 25 basis points (bps) in order to combat rising inflation.

Foreign portfolio investors (FPIs) bought shares worth Rs 321.93 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 328.24 crore in the Indian equity market on 3 April, provisional data showed.

Economy:

India's gross domestic product (GDP) growth will likely soften to 6.3% in FY2024, as against earlier estimate of 6.6%, the World Bank stated in its India Development Update. The bank stated that growth is set to be constrained by slower consumption growth and challenging external conditions. Rising borrowing costs and slower income growth will weigh on private consumption growth and government consumption is projected to grow at a slower pace due to the withdrawal of pandemic-related fiscal support measures.

Stocks in Spotlight:

HDFC Bank rose 1.94%. The private lender said that its advances aggregated to approximately Rs 16,00,500 crore as of 31 March 2023, a growth of around 16.9 % over Rs 13,68,800 crore as of 31 March 2022. The bank's advances are higher by 6.2 % over Rs 15,06,800 crore as of 31 December 2022.

Bajaj Finance rallied 3.47%. On a consolidated basis, customer franchise stood at 69.1 million as of 31 March 2023 as compared to 57.6 million as of 31 March 2022. In Q4 FY23, the customer franchise increased by 3.1 million. The company recorded highest ever increase in its customer franchise of 11.5 million in FY23.

Vedanta added 0.02%. The miner announced that its total aluminum production rose 0.35% to 5,74,000 tonnes in Q4 FY23 compared with 5,72,000 tonnes in Q4 FY22.

IndusInd Bank shed 0.77%. The private lender's net advances improved to Rs 2,89,965 crore as of 31 March 2023, registering a growth of 21% as compared to Rs 2,39,052 crore as of 31 March 2022.

Grasim Industries fell 0.58%. The cement major announced that it has entered into three term loan agreements to avail the rupee term loan facility aggregating to Rs 5,000 crore from Axis Bank in terms of the approval by the finance committee of the company.

Hindustan Zinc rose 0.60%. The company announced that its mined metal production grew by 2% to 301,000 tonnes in Q4 FY23 as against 295,000 tonnes registered in Q4 FY22.

Numbers to Track:

The yield on India's 10-year benchmark federal paper declined to 7.291 from 7.315 in previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.0875, compared with its close of 82.32 during the previous trading session.

MCX Gold futures for 5 April 2023 settlement added 0.06% to Rs 60,990.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.03% to 101.56.

The United States 10-year bond yield advanced 0.49% to 3.353.

In the commodities market, Brent crude for June 2023 settlement gained 44 cents or 0.52% to $85.38 a barrel.

Global Markets:

Asian stocks were trading mixed on Wednesday as Wall Street digested a key U.S. labor report that showed job openings dropped to their lowest level in nearly two years in February.

New Zealand's central bank raised its benchmark cash rate by 50 basis points to 5.25%. New Zealand's central bank said its latest rate hike decision was supported by the fact that inflation is still “too high and persistent.”

US stocks snapped four day winning streak in the last trading session as investors look towards OPEC+ production cuts and inflation impact of the same with uncertainty still looming for the global economy.