‘The Reserve Bank of India’s Monetary Policy Committee (MPC) made the strategic decision to maintain the repo rate at 6.5%. This resolution extends favourable conditions for potential homebuyers, contributing to resilience and vitality in the real estate sector. Consistent home loan rates enhance consumer confidence, underpinning investment decisions and fostering an environment conducive to sustained development,” said Dharmendra Raichura – VP & Head of Finance at Ashar Group.

Raichura also added, The government has mandated the RBI to keep inflation at 4% with a comfort band of 2% in both directions. Additionally, GDP growth in the January-March quarter is anticipated to be 8% or above. India’s GDP expanded by 8.2%, 8.1%, and 8.4% in the first three quarters of FY24.

Bharti Hexacom IPO got subscribed 2.45 times on the last day of its bidding. The retail portion got booked 1.83 times the offer size. While the NII segment got bidding 6 times. 

Bharti Hexacom IPO wants to raise Rs 4,275 by offering an entire offer sale of 75 million shares. It kept the IPO price band in a range of Rs 542 to Rs 570 per equity share. A retail bidder is required to subscribe for a minimum of 26 shares aggregating to Rs 14,820.

Also Read: Bharti Hexacom sees firm subscription on last day; Read all details here before investing

USDINR CMP- 83.32 (spot)

“Indian Rupee gained by 11 paise as the RBI’s monetary policy remained the focus. RBI left repo-rate unchanged with a majority vote of 5-1. The central bank kept CPI and GDP projections for FY25 unchanged at 4.5% and 7% respectively. However, a strong US Dollar and weak tone in domestic markets capped sharp gains. US Dollar gained on hawkish comments from Fed officials. While Fed’s Austen Goolsbee anticipated two rate cuts, Neel Kashkari questioned if the central bank would cut interest rates if inflation remains sticky. However, weekly unemployment claims and trade deficit trailed forecast, capping the upside,” said Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas.

Choudhary, also added that We expect Rupee to trade with a slight negative bias on risk aversion in global markets and a strong US Dollar. Surge in crude oil prices and FII outflows may also weigh on Rupee. Renewed geopolitical tensions in the Middle East may put downside pressure on risk assets. However, optimistic economic outlook by RBI Governor and any intervention by the central bank may support Rupee at lower levels. Investors may take cues from non-farm payrolls. USDINR spot price is expected to trade in a range of Rs 83.10 to Rs 83.60.

Shares of IREDA jumped 14.6% to an intraday high of Rs 181.55 compared to its previous close of Rs 158.35. The stock hit its 52-week high of Rs 214.80 on February 06. While it touched its 52-week low of Rs 50 on November 29, 2023.

“RBI’s decision to keep policy rates unchanged for the seventh consecutive time is a much-expected move. With the headline inflation easing to 5.1% for January and February 2024 as compared to December 2023, and the focus on FY25 CPI inflation forecast placed at 4.5%,” said Colin Shah, MD, Kama Jewelry on ‘RBI MPC Announcement.

Shah also added, We foresee a cautious but robust economic growth, that will enable higher disposable income in the hands of the domestic buyer class. Having said that, multiple cues from both international and national aspects like the geopolitical situation, US Fed trends, and trade risk will further shape the RBI decision, that can also influence gold exports.

Marico Ltd. announced its performance for Q4 FY24, showcasing volume growth in its domestic business propelled by Parachute Coconut Oil and Saffola Oils. This positive outcome led to a 2% increase in shares, reaching Rs 503.15 on the BSE.

In a recent analysis conducted by Motilal Oswal, it has been revealed that ICICI Bank Ltd. has consistently outperformed Axis Bank Ltd. in crucial financial metrics. According to the report, ICICI Bank has maintained an industry-leading return on assets (RoA) which stands approximately 50 basis points higher than that of Axis Bank over the past few years.

Despite Axis Bank’s challenge of an elevated credit-deposit ratio, potentially constraining credit growth, ICICI Bank exhibits a strong capitalization level with a tier-I ratio of 16%. This robust capitalization is expected to facilitate a healthy growth trajectory for ICICI Bank, further cementing its position in the banking sector.

Read More: ICICI Bank vs Axis Bank: Find out what’s Motilal Oswal’s top choice and why

L&T, ICICI Bank, Axis Bank, Bajaj Finance, and Bharti Airtel are the five stocks dragging Nifty 50 lower.

TVS Motor Company ventures into the premium motorcycle segment with the introduction of TVS RONIN in Colombia, featuring a 225cc engine. Shares experienced a decline of 0.94% to Rs 2067.85 on the BSE.

The latest Motilal Oswal report projects a robust volume growth of approximately 10% year-on-year (YoY) for the cement sector’s coverage universe in the fourth quarter of FY24, surpassing the three-year compound annual growth rate (CAGR) of around 8%.

In the same period, the report indicates an average capacity utilization of about 93%, signaling an improvement compared to previous quarters.

Motilal Oswal remains inclined towards Ultratech Cement in the large-cap category, while expressing a preference for Dalmia Bharat Industries and JK Cement in the mid-cap segment, foreseeing a potential upside of 25%.

Also Read: Motilal Oswal says UltraTech Cement, Dalmia Bharat top picks despite cement sector seeing earnings pressure

Bank Nifty rebounded from its low levels and was trading to an intraday high of 48,257.35 levels, a jump of 374 points from the intraday low of 47,894.50 levels.

Shares of Dr Reddy’s Laboratories rose around 3% to an intraday high of Rs 6,305.85 compared to its previous close of Rs 6,142.50. The stock of the company has hit its 52-week high of Rs 6,505.90 on February 28. While it touched its 52-week low of Rs 4,384.05 on May 19, 2023. The stock was the top gainer in the Nifty 50.

The sectoral index rose 1.63% to 939.55 after RBI left the repo rate unchanged at 6.50%.

Courtesy: NSE

“The RBI has decided to keep the repo rates unchanged at 6.5%. This move builds on the advantages of the earlier policy announcements by widening the advantageous conditions for homebuyers. As a result, those considering becoming homeowners can still benefit from low-interest rates on home loans. The housing market is expanding rapidly, and maintaining steady home loan rates is essential to keep the market in check and raise consumer confidence in general,” said Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra.

Yahnik also added, The RBI’s decision offers homeowners a significant benefit and much-needed relief in the face of rising housing costs. Buyers are satisfied with a steady repo rate since it gives them another opportunity to purchase real estate at a good price. This decision sets a base for the housing sector’s long-term stability and expansion and boosts the optimistic attitude currently permeating the market. With the understanding that the market is in a favourable position to support their investment decisions, purchasers can move confidently through it.

Courtesy: NSE

Courtesy: NSE

Dr Reddy’s Lab, Divis Labs, SBI Life Insurance, HDFC Bank, Shriram Finance are the top gainers on NSE Nifty 50 whereas the top laggards include BPCL, L&T, JSW Steel, Axis Bank, and Hindalco.

Courtesy: NSE

The Reserve Bank of India says real GDP growth view retained at 7% for FY25

Au Small Finance Bank, Bandhan Bank, HDFC Bank, Kotak Mahindra Bank, and Punjab National Bank are the top gainers on Nifty Bank Index whereas the to laggards include IndusInd Bank, ICICI Bank, Federal Bank, Bank of Baroda, and State Bank of India.

RBI keeps interest rates unchanged for the seventh time. It keeps the repo rate unchanged at 6.50%, core inflation has declined substantially, said RBI Das. RBI keeps SDF unchanged at 6.25% and MSF at 6.75%. RBI MPC decided the result by a majority of 5:1. It also maintained the stance of ‘withdrawal of accommodation’. Services inflation in developed countries remained sticky, said Das.

On April 05, RBI Governor Shaktikanta Das will announce the committee’s decision on interest rates at 10 am. Also, after the policy announcement, the RBI governor will address a press conference. Most economist believes that RBI will keep the interest rates steady for the seventh time at 6.50% and will continue its stance of ‘withdrawal of accommodation’.

Dr Reddy Labs, SBI Life Insurance, HDFC Bank, Bajaj Finserv, Shriram Finance are the top gainers on NSE Nifty 50 index whereas the top laggards include BPCL, JSW steel, Tata Steel, Tech Mahindra, and L&T.

The NSE Nifty 50 opened 0.33% lower at 22,439.65, while the BSE Sensex opened 0.30% lower at 74,002.84.

Weak sentiment is likely to prevail in early trades owing to correction in overnight US markets and its negative impact on most of the Asian indices. There could be sideways movement ahead of the RBI announcement on monetary policy and banking stocks are likely to be in the spotlight.  While interest rates are likely to remain unchanged in view of stubborn inflation, the street will be eyeing RBI Governor Shaktikanta Das’s commentary. Commanding attention will also be the US nonfarm payrolls report to be released in the overnight trades today, the Federal Reserve’s rate cut hopes primarily rest on this jobs report. Technically, Nifty’s immediate hurdles are at its all-high at 22619 mark and then all eyes will be on the 23000 mark, while the index has intraday support at 22339 mark, said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.