Indices trade with minor cuts; RBI keeps repo rate unchanged at 6.5%

The key equity barometers traded with minor cuts in morning trade after the Reserve Bank of India (RBI) kept the repo rate unchanged after its monetary policy decision. The Nifty traded at the 22,500 level. PSU bank shares gained after declining in the past trading session.

At 10:27 IST, the barometer index, the S&P BSE Sensex, was down 48.43 points or 0.07% to 74,177.60. The Nifty 50 index shed 15.75 points or 0.07% to 22,500.80.

In the broader market, the S&P BSE Mid-Cap index rose 0.24% and the S&P BSE Small-Cap index gained 0.29%.

The market breadth was positive. On the BSE, 2,064 shares rose and 1,412 shares fell. A total of 143 shares were unchanged.

RBI Monetary Policy Outcome:

The Reserve Bank of India in its Monetary Policy Committee (MPC) led by Governor Shaktikanta Das has decided to keep the repo rates unchanged at 6.50%.

This is the seventh time that the 6 member Monetary Policy Committee has decided to keep the key rates unchanged.

Consequently, the Marginal Standing Facility (MSF) rate and the bank rate were at 6.75% and the Standing Deposit Facility (SDF) rate remained at 6.25%.

RBI Governor Shaktikanta Das elaborated on the decision, stating that inflation has decreased from its peak of 5.7%. He noted favorable growth-inflation dynamics and a steady decline in core inflation, reaching its lowest point in nine months. Despite volatile food inflation in February, core inflation, excluding food and fuel, has shown a downward trend. Concerns remain regarding the impact of weather variations on inflation and economic stability.

Buzzing Index:

The Nifty PSU Bank index rose 0.69% to 7,303.30. The index shed 0.70% in the past trading session.

Punjab & Sind Bank (up 2.93%), Union Bank of India (up 1.7%), Canara Bank (up 1.24%), UCO Bank (up 1.16%) , Central Bank of India (up 1.08%), Indian Overseas Bank (up 0.99%), Punjab National Bank (up 0.59%), Indian Bank (up 0.39%), State Bank of India (up 0.32%) and Bank of India (up 0.24%) advanced.

Stocks in Spotlight:

Prestige Estates Projects rose 0.99%. The company announced its latest acquisition of approximately 21 acres of prime land in Whitefield, Bengaluru. The acquired land will be planned for Residential Development spanning approximately 4 Mn Sft of developable area, comprising around 1800 apartments. The cost of acquisition is Rs 450 crore.

Cello World added 1.41% after the company announced the commissioning of the manufacturing facility in phased manner through its subsidiary company Cello Consumerware in Falna, District Pali, Rajasthan on 16 March 2024.

Niyogin Fintech gained 2.36% after the company reported 90% increase in gross transaction value to Rs 11,034 crore in Q4 FY24 from Rs 5,817.8 crore recorded in Q4 FY23.

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