Sensex, Nifty at day's high; VIX drops over 5%

The key equity benchmarks were currently at the day's high in early afternoon trade. The Nifty traded above 17,700 mark. FMCG shares snapped two-day losing streak. Trading remained volatile after the RBI kept key policy rates unchanged in its latest monetary policy decision.

At 12:24 IST, the S&P BSE Sensex was up 294.2 points or 0.50% to 59,329.15. The Nifty 50 index added 97 points or 0.55% to 17,736.55.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.94% while the S&P BSE Small-Cap index gained 0.97%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 2,255 shares rose and 1,000 shares fell. A total of 129 shares were unchanged.

RBI MPC meet outcome:

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%.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, slumped 5.06% to 18.04. The Nifty 28 April 2022 futures were trading at 17,840.10, at a premium of 103.55 points as compared with the spot at 17,736.55.

The Nifty option chain for 28 April 2022 expiry showed maximum Call OI of 79.1 lakh contracts at the 18,500 strike price. Maximum Put OI of 43.1 lakh contracts was seen at 17,500 strike price.

Buzzing Index:

The Nifty FMCG index advanced 0.99% to 37,934.40. The index had declined 0.25% in the past two sessions.

Godrej Consumer (up 4.71%), United Breweries (up 1.45%), ITC (up 1.29%), Radico Khaitan (up 1.17%), Britannia Industries (up 1%), United Spirits (up 0.93%), Dabur India (up 0.91%), Tata Consumer Products (up 0.89%), Hindustan Unilever (up 0.79%), Marico (up 0.65%) and Nestle India (up 0.58%) advanced while Colgate-Palmolive India declined 1.08%.

Stocks in Spotlight:

Tejas Networks advanced 2.80% to Rs 556.55. ICRA has upgraded the long-term rating of the company to "[ICRA]A+" from "[ICRA] A-%". It has also upgraded the short-term rating to "[ICRA]A1+" from "[ICRA]A2+". The outlook on the long-term rating is 'stable' and the ratings have been removed from 'rating watch with positive implications', the credit rating agency said.

Rail Vikas Nigam (RVNL) advanced 1.03% to Rs 34.45. RVNL has 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 2.96% to Rs 38.20. 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.

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