The frontline indices continued to trade with limited losses in mid-morning trade. The Nifty hovered below the 22,500 level. Realty shares gained after declining in the past two trading sessions.

At 11:27 IST, the S&P BSE Sensex, was down 63.17 points or 0.09% to 74,156.91. The Nifty 50 index shed 27.10 points or 0.12% to 22,487.55.

The broader market outperformed the key indices. The S&P BSE Mid-Cap index rose 0.47% and the S&P BSE Small-Cap index gained 0.48%.

The market breadth was strong. On the BSE, 2,195 shares rose and 1,416 shares fell. A total of 140 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.

IPO Update:

The initial public offer (IPO) of Bharti Hexacom received 6,25,61,876 bids for shares as against 4,12,50,000 shares on offer, according to stock exchange data at 11.20 IST on Friday (5 April 2024). The issue was subscribed 1.52 times.

The issue opened for bidding on Wednesday (3 April 2024) and it will close on Friday (5 April 2024). The price band of the IPO is fixed at Rs 542 to 570 per share. An investor can bid for a minimum of 26 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Realty index gained 1.56% 938.95. The index declined 2.61% in the past two trading sessions.

Mahindra Lifespace Developers (up 5.4%), Godrej Properties (up 2.69%), Oberoi Realty (up 2.6%), DLF (up 1.52%), Macrotech Developers (up 1.21%), Phoenix Mills (up 1.04%), Prestige Estates Projects (up 0.42%), Brigade Enterprises (up 0.27%), Sunteck Realty (up 0.11%) advanced.

Stocks in Spotlight:

Bandhan Bank rose 0.18%. The Bank’s total deposits rose by 25.1% to Rs 1,35,198 crore in the quarter ended 31 March 2024 from Rs 1,08,069 crore recorded in the quarter ended 31 March 2023.

Bajaj Finance declined 1.54%. The NBFC announced that its new loans booked increased by 4% to 7.87 million in Q4 FY24 as compared to 7.56 million recorded in Q4 FY23.

Global Markets:

Asian stocks were trading lower on Friday, tracking overnight losses on Wall Street amid rate cut uncertainty, and sharp rise in crude oil prices. Financial markets in Mainland China, and Taiwan are closed for Qingming Festival on Friday.

US stock indexes fell more than 1% on Thursday as Federal Reserve officials took a cautious approach in comments on the outlook for interest rate cuts, and investors braced for Friday's US monthly jobs report.

On Thursday, Minneapolis Fed President Neel Kashkari cast doubts on Thursday over the central bank cutting rates at all if inflation remained sticky.