SENSEX RISES 195 PTS, REALTY STOCKS ADVANCE

The frontline indices traded with decent gains in mid-morning trade. The Nifty scaled above the 17,600 level. Realty stocks extended gains for the fifth consecutive trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 195.13 points or 0.33% to 59,884.44. The Nifty 50 index added 56.50 points or 0.32% to 17,613.55.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.44% while the S&P BSE Small-Cap index gained 0.47%.

The market breadth was strong. On the BSE, 2,234 shares rose and 1,025 shares fell. A total of 121 shares were unchanged.

RBI Monetary Policy:

The Reserve Bank of India (RBI) monetary policy committee (MPC) has voted unanimously to keep the repo rate unchanged at 6.5%.

The MPC also decided by a majority of five out of six members to remain focused on `withdrawal of accommodation` to ensure that inflation progressively aligns with the target while supporting growth.

He also clarified that the decision to pause on rate is for this meeting only. "Monetary Policy Committee will not hesitate to take any action in future," said the RBI governor.

RBI Governor Shaktikanta Das raised 2023-24 GDP growth forecast to 6.5% from 6.4% previously.

Meanwhile, 2023-24 CPI inflation forecast was lowered to 5.2% from 5.3% previously.

"While we have kept the policy rate unchanged, this decision was taken based on our assessment of the macroeconomic and financial conditions with reference to information available upto today. Our job is not yet finished and war against inflation has to continue until durable decline in inflation closer to target is seen," said Das.

Das added that the present policy rate can still be regarded as accommodative. He said RBI will continue to adopt a nuanced and agile approach to liquidity management, said Governor Shaktikanta Das. The central bank will remain flexible in meeting productive requirements of the economy, as well as use two-way operations as may be necessary.

IPO Update:

The initial public offer (IPO) of Avalon Technologies received bids for 13.23 lakh shares as against 1.14 crore shares on offer, according to stock exchange data at 11:30 IST on Thursday (6 April 2023). The issue was subscribed 0.12 times.

The issue opened for bidding on Monday (3 April 2023) and it will close on Thursday (6 April 2023). The price band of the IPO is fixed at Rs 415-436 per share. An investor can bid for a minimum of 34 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Realty index rose 2.06% to 400.95, extending gains for the fifth day in a row. The index jumped 7.78% in five trading sessions.

Godrej Properties (up 4.28%), Mahindra Lifespace Developers (up 2.96%), Oberoi Realty (up 2.94%), DLF (up 2.59%) and Indiabulls Real Estate (up 2.22%), Sobha (up 2.06%), Prestige Estates Projects (up 1.28%), Brigade Enterprises (up 1%), Phoenix Mills (up 0.79%) and Macrotech Developers (up 0.48%) advanced.

Macrotech Developers added 0.48%. The realty major said that the it had achieved pre-sales of Rs 3,025 crore in Q4 FY23, recording a decline of 12% on a YoY basis. The real estate developer`s pre-sales in the same period last year were Rs 3,456 crore. Collections stood at Rs 2,933 crore, up 3% on a YoY basis in Q4 FY23 and Rs 10,606 crore for FY23 up 23% on a YoY basis.

Stocks in Spotlight:

Dabur slipped 3.30%. The FMCG major announced that its India business is expected to report mid-single digit revenue growth however, the International business is expected to deliver high single-digit growth in constant currency in Q4 FY23. Overall, Dabur`s consolidated revenue is expected to post mid-single digit growth during the quater.

Kalyan Jewellers India shed 0.47%. The company said that it continued to see strong operating momentum in its business in the recently concluded quarter despite the sharp rise in gold prices during the second half of the quarter. The company recorded consolidated revenue growth of approximately 17% in Q4 FY23.

Global Markets:

Asian stocks were trading lower on Thursday as Wall Street digested the latest ADP private payrolls report, which showed slowing job growth in March.

US stocks ended mixed on Wednesday as investors look towards OPEC+ production cuts and inflation impact of the same with uncertainty still looming for the global economy.

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