Sensex, Nifty trades with major volatility following RBI announcement

8 Apr 2022 , 01:34 PM

The benchmark indices extended major gains during afternoon trade, buoyed by positive global cues. Metal and FMCG scrips were in demand while pharma stocks witnessed a minor decline. The Nifty traded above 17,700 level.

At 13:30 IST, the barometer index, S&P BSE Sensex rose 222.70 points or 0.38% at 59,257.65. The Nifty 50 index gained 89.70 points or 0.51% at 17,729.25.

The S&P BSE Mid-Cap index added 0.89%. The S&P BSE Small-Cap index rose 0.90%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, shares 2,234 rose and 1,068 shares fell. A total of 135 shares were unchanged.

Economy:

The Reserve Bank of India (RBI) kept the policy repo rate unchanged while maintaining its accommodative stance after the conclusion of the Monetary Policy Committee (MPC) meeting today, 8 April 2022.

RBI kept repo rate unchanged at 4%. Reverse repo rate stands at 3.35%. The Marginal Standing Facility (MSF) rate is at 4.25% The MPC has voted unanimously to maintain accommodative stance. Meanwhile, for FY23, RBI has projected real GDP growth at 7.2% (down from 7.8% estimated in the previous policy) and CPI inflation is seen averaging at 5.7%.

Gainers & Losers:

Grasim Industries (up 3.96%), JSW Steel (up 3.43%), SBI Life Insurance Company (up 2.69%), Adani Ports & Special Economic Zones (APSEZ) (up 2.50%) and ITC (up 1.93%) were major Nifty gainers.

Cipla (down 2.33%), Maruti Suzuki India (down 1.19%), Tech Mahindra (down 1.14%), NTPC (down 1.04%) and Sun Pharmaceutical Industries (down 0.65%) were major Nifty losers.

Stocks in Spotlight:

Infosys rose 0.75%. The IT major and Rolls-Royce inaugurated their joint Aerospace Engineering and Digital Innovation Centre in Bengaluru, Karnataka. This centre has been established to provide research and development (R&D) services integrated with advanced digital capabilities to Rolls-Royces engineering and group business services from India. Infosys and RollsRoyces collaboration has been reinforced through strategic deals, aimed at yielding mutual benefits to both organisations over the next seven years.

As part of this collaboration, Infosys and Rolls-Royce will combine their aerospace, engineering and digital services capabilities to explore opportunities for driving digital and engineering innovation and associated cost optimisation strategies. By expanding the local talent pool in the country, the two companies will also deliver manufacturing engineering services for the global civil aerospace ecosystem.

Sobha gained 0.02%. Sobhas total sales volume in Q4 FY22 stood at 1.34 million square feet as compared with 1.33 million square feet recorded in the same period last year, up 0.4% on YoY basis. As compared with Q3 FY22, the companys sales volume has risen by 1.5%. Total sales value was Rs 1,109.6 crore in Q4 FY22, up 3.5% YoY and up 5.9% QoQ. Sobhas share in the sales value has increased by 7% to Rs 935.2 crore in Q4 FY22 from Rs 874.2 crore in Q4 FY21. It is higher by 3% as compared with 908.2 crore reported in Q3 FY22. Total average price realisation was Rs 8,265 per square feet as against Rs 8,014 per square feet in Q4 FY21 and Rs 7,920 per square feet in Q3 FY22.

Global Markets:

European markets advanced on Friday to end a volatile trading week as investors assess the pace of the Federal Reserves monetary tightening plans and news from Ukraine. The U.S. Congress has voted to revoke Russias trade status and ban oil and gas imports, along with banning all new investment in the country and sanctioning President Vladimir Putins daughters, after reports of rape and torture against civilians by Russian forces in Ukraine.

The atrocities drew condemnation from G-7 members, who voted to remove Russia from the U.N. Human Rights Council. Ukrainian Foreign Minister Dmytro Kuleba met with G-7 and NATO leaders in Brussels to discuss weapons supply to Ukraine. The European Union has also approved new sanctions against Russia, including a landmark embargo on Russian coal imports.

Most Asian markets were trading higher on Friday after a comeback on Wall Street as investors continued to digest the Feds plans to fight inflation. US stocks rebounded on Thursday, following back-to-back losing sessions, as investors reassessed the Federal Reserves latest plans to tighten monetary policy and combat rising inflation.

Investors on Thursday continued to monitor the Ukraine-Russia war, as Ukraine asks NATO for more weapons and the EU and U.S. weigh a ban on Russian coal. Meanwhile, the U.S. Senate passed a bill banning Russian oil and gas imports.

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