At 14:27 IST, the S&P BSE Sensex, was down 34.28 points or 0.04% to 74,251.16. The Nifty 50 index lost 5.15 points or 0.02% to 22,509.50.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.41% and the S&P BSE Small-Cap index gained 0.46%.
The market breadth was strong. On the BSE, 2,312 shares rose and 1,463 shares fell. A total of 125 shares were unchanged.
RBI Monetary Policy Outcome:
The Reserve Bank of India (RBI) monetary policy committee (MPC) has voted to keep the repo rate unchanged at 6.5%. This is the seventh time that the 6 member Monetary Policy Committee has decided to keep the key rates unchanged.
RBI's MPC at its meeting today, 5 April 2024, decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50%. Consequently, the standing deposit facility (SDF) rate remains unchanged at 6.25% and the marginal standing facility (MSF) rate and the Bank Rate at 6.75%.
The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth.
These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.
The real GDP growth for 2024-25 is projected at 7% with Q1 at 7.1%; Q2 at 6.9%; Q3 at 7%; and Q4 also at 7%. The CPI inflation for 2024-25 is projected at 4.5% with Q1 at 4.9%; Q2 at 3.8%; Q3 at 4.6%; and Q4 at 4.5%.
RBI Governor Shaktikanta Das elaborated on the decision, stating that inflation has decreased from its peak of 5.7%. He noted favorable growth-inflation dynamics and a steady decline in core inflation, reaching its lowest point in nine months. Despite volatile food inflation in February, core inflation, excluding food and fuel, has shown a downward trend. Concerns remain regarding the impact of weather variations on inflation and economic stability.
The minutes of the MPC’s meeting will be published on 19 April 2024. The next meeting of the MPC is scheduled during June 5 to 7, 2024.
Buzzing Index:
The Nifty FMCG Index rose 0.78% to 54,053.15. The index shed 0.85% in the past two trading session.
Marico (up 3.08%), Godrej Consumer Products (up 2.46%), ITC (up 1.8%), Balrampur Chini Mills (up 1.71%), United Breweries (up 1.1%), Radico Khaitan (up 1.03%), Colgate-Palmolive (India) (up 0.8%), United Spirits (up 0.36%), Dabur India (up 0.24%) and Hindustan Unilever (up 0.17%) advanced.
On the other hand, Varun Beverages (down 1.16%), Tata Consumer Products (down 0.28%) and Nestle India (down 0.25%) edged lower.
Marico advanced 3.08% after the company said that the domestic business, in Q4, has posted a slight uptick in volume growth on a sequential basis owing to steadying trends in majority of the portfolios.
Numbers to Track:
The yield on India's 10-year benchmark federal paper was up 0.25% to 7.112 as compared with previous close 7.111.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.3025, compared with its close of 83.3900 during the previous trading session.
MCX Gold futures for 5 April 2024 settlement shed 0.11% to Rs 69,631.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.09% to 104.22.
The United States 10-year bond yield gained 0.61% to 4.334.
In the commodities market, Brent crude for June 2024 settlement rose 4 cents or 0.04% to $90.69 a barrel.
Stocks in spotlight:
Cipla shed 0.77%. The drug major said that the US drug regulator has issued Form 483, with six observations after inspecting its Patalganga manufacturing facility in Maharashtra.
Trident rose 0.22%. The company said that the credit rating agency CARE Ratings has reaffirmed the company’s long-term bank facilities at 'CARE AA” with 'stable’ outlook.