APRIL 8, 2023 || BY TEAM FINDESH
The equity market indices Sensex and Nifty closed higher for the fifth straight session after the RBI unexpectedly kept policy rates unchanged at 6.50%. Interest-sensitive sectors like auto, real estate, select banks and NBFC stocks led the rally. The central bank has already increased the repo rate by a total of 250 basis points since May in a bid to control inflation, though it has continued to remain above the RBI’s comfort zone of 6 percent most of the time. Sentiments were boosted after the RBI raises the GDP growth forecast in FY24 from 6.40% to 6.50% and lowered inflation from 5.3% to 5.2% in FY24.
Moreover, better than expected business growth by corporates, FIIs turning into strong inflow in equities and strong micro data boosted market sentiment.
Beaten downwards realty stocks witnessed fresh buying after the RBI kept the interest rate unchanged. Nifty Realty Index surged 3%. India’s top seven property markets have witnessed the highest number of launches in over a decade and touched the number in the March quarter to its previous high recorded in 2012. Real estate developers are looking to take advantage of robust sales momentum along with the resilience exhibited by the Indian economy. DLF gained 3% to close at Rs383 and Godrej Properties soared over 6% to Rs1125. Mahindra Life and Prestige Estate gained between 1-3%.
Among the banking stocks, HDFC Bank gained 1% to close at Rs1666 after announcing an impressive quarterly earning update. Indusind Bank, Kotak Bank and AU Bank gained 1-2%. NBFC stocks gained after reporting impressive quarterly earnings and RBI kept interest rates unchanged. M&M Finance gained 4% to close at Rs252 and climbed up 10% this week after reporting strong earnings growth. Bajaj Finance, Chola Finance, and Shriram Finance posted handsome gains.
Auto stocks witnessed fresh buying and the Nifty auto Index gained 1% after announcing impressive March sales data. Tata Motor gained 2% to close at Rs437 while gained 4% this week. Maruti, Eicher Motor, Bajaj Auto, and TVS Motor gained between 1-2%.
Global Market
Among the global markets, Asian markets declined while European markets advanced before the Easter holiday as traders awaited US jobs data to assess their impact on Federal Reserve monetary policy. Overnight, the US market slipped 1% after a growing wave of weak US economic data deepened worries that the Federal Reserve’s rapid interest rate hikes might tip the US economy into a recession.
Commodity
Oil prices decreased on Thursday after weak economic data in the US sparked recession fears. International benchmark Brent crude traded at $84.61 per barrel, a decline of 1% against the previous day’s close.
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