INDICES TRADE WITH MODERATE GAINS; AUTO SHARES IN DEMAND

The headline equity indices traded with decent gains in mid-afternoon trade following the RBI`s decision to keep interest rates unchanged. The Nifty traded above the 25,050 mark. Auto shares extended gains for the second consecutive trading session.

At 14:30 IST, the barometer index, the S&P BSE Sensex was up 123.25 points or 0.15% to 81,756.87. The Nifty 50 index rose 57.80 points or 0.23% to 25,070.95.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index gained 1.17% and the S&P BSE Small-Cap index jumped 1.31%.

The market breadth was strong. On the BSE, 2,797 shares rose and 1,124 shares fell. A total of 94 shares were unchanged.

RBI Policy Outcome:

Reserve Bank of India (RBI) Governor Shaktikanta Das announced that the Monetary Policy Committee (MPC) has decided to keep interest rates unchanged, aligning with market expectations, while shifting its policy stance from "withdrawal of accommodation" to "neutral." The MPC voted by a 5:1 majority to maintain the policy repo rate at 6.5%. The RBI also retained its GDP growth target for FY25 at 7.2%. However, Consumer Price Index (CPI) inflation for September is expected to rise significantly due to unfavorable base effects and increasing food prices, according to the governor.

Buzzing Index:

The Nifty Auto index gained 1.20% to 26,551.20. The index rallied 2.88% in two consecutive trading sessions.

Exide Industries (up 4.90%), Tata Motors (up 2.85%), Bharat Forge (up 2.55%), Maruti Suzuki India (up 2.53%), Bosch (up 2.27%), TVS Motor Company (up 2.02%), Samvardhana Motherson International (up 1.67%), Balkrishna Industries (up 1.55%), Hero MotoCorp (up 0.75%) and MRF (up 0.61%) advanced.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper shed 0.66% to 6.873 as compared with previous close 6.919.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.9625, compared with its close of 83.9700 during the previous trading session.

MCX Gold futures for 4 December 2024 settlement fell 0.08% to Rs 75,098.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.14% to 102.70.

The United States 10-year bond yield declined 0.22% to 4.027.

In the commodities market, Brent crude for December 2024 settlement gained $45 cents or 0.58% to $77.63 a barrel.

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