Indices snap three day losing streak

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Equity indices snapped their three day losing streak and closed with strong gains on Friday. Barring IT index, all sectoral indices on the NSE ended in the green. Domestic sentiment got a boost after RBI left key policy rates unchanged. The Nifty scaled 17,800 mark but ended below that level.

As per the provisional closing data, the barometer index, S&P BSE Sensex added 412.23 points or 0.7% at 59,447.65. The Nifty 50 index gained 144.8 points or 0.82% at 17,784.25.

In broader market, the S&P BSE Mid-Cap index added 0.93% while the S&P BSE Small-Cap index rose 0.99%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, shares 2,288 rose and 1,095 shares fell. A total of 126 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. For FY23, real GDP growth for is projected at 7.2% (down from 7.8% estimated in the previous policy) and CPI inflation is seen averaging 5.7% (up from 4.5% estimated in the previous policy).

Stocks in Spotlight:

Shares of three Adani Group stocks rallied after companies announced that IHC Capital will invest Rs 15,400 Cr in group's green portfolio. Shares of Adani Green surged 7.97% to Rs 2,337, Adani Enterprises was up 3.36% at Rs 2,169.20 while Adani Transmission traded 3.76% higher at Rs 2,550.70.

International Holding Company PJSC (IHC), the Abu Dhabi based conglomerate, will invest $2 billion (approximately Rs 15,400 crore) as primary capital in Adani Green Energy, Adani Transmission and Adani Enterprises. Shares will be allotted on a preferential basis, the group said in an exchange filing. IHC will invest Rs 3,850 crore in Adani Green Energy for a 1.26% stake in the company at an issue price of Rs 1,923.25 per share. The Abu Dhabi based conglomerate will invest Rs 3,850 crore in Adani Transmission for a 1.41% stakle at an issue price of Rs 2454.95 per share. Further, IHC will purchase a 3.53% stake in Adani Enterprises for Rs 7,700 crore at an issue price of Rs 1,915.85 per share. The transaction is expected to be completed in a month, after all necessary approvals are obtained.

Infosys rose 0.46%. The IT major and Rolls-Royce extended strategic collaboration with launch of joint Aerospace Engineering and Digital Innovation Centre in India. The centre has been established to provide high-end research and development (R&D) services integrated with advanced digital capabilities to Rolls-Royce's engineering and group business services from India.

JSW Steel rallied nearly 4%. The steel maker's total combined volumes of crude steel production jumped 37% to 5.98 million tones (MT) in Q4 FY22 as against 4.36 MT in Q4 FY21 and 12% growth to 5.35 MT from Q3 FY22. The capacity utilisation of existing operations at standalone level improved to 98% in Q4 FY22 from 94% in Q3 FY22. The crude steel production of Indian operations (including joint control) soared 36% to 5.88 MT in Q4 FY22 as compared to 4.34 MT in Q4 FY21 and 13% jump to 5.19 MT from Q3 FY22. On a standalone basis, JSW Steel's crude steel production jumped 20% to 5.01 MT in Q4 FY22 over 4.19 MT in Q4 FY21 and 13% rise to 4.41 MT from Q3 FY22.

Cholamandalam Investment and Finance Company surged 7.89%. The NBFC said disbursements for Q4 FY22 stood approximately at Rs 12,718 crore as against Rs 8071 crore in Q4 FY21, rising 58% year on year. Collection efficiency on billing improved across all product segments and stood at 138% in Q4 FY22 as against 120% in Q4 FY21. The vehicle financer said that it will result in strengthening the asset quality position of the company. The company continues to hold a strong liquidity position with Rs 5575 crore as cash balance as at end of March 2022, with a total liquidity position of Rs 7,400 crore.

Sobha fell 0.69%. Sobha's 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 company's 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.

Rail Vikas Nigam (RVNL) rallied 1.47%. RVNL announced the signing of an MoU with Integral Coach Factory (ICF) for acquiring metro coaches for Kolkata Metro Railway project.

JSW Ispat Special Products advanced 2.16%. The company's crude steel production improved by 17% to 0.17 million tonnes in Q4 FY22 from 0.14 million tonnes in Q3 FY22.

Global Markets:

Shares in Europe and Asia advanced on Friday to end a volatile trading week as investors assess the pace of the Federal Reserve's monetary tightening plans and news from Ukraine. The U.S. Congress has voted to revoke Russia's trade status and ban oil and gas imports, along with banning all new investment in the country.

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