The domestic equity barometers traded extended their downfall as they traded in the red in afternoon trade. The Nifty traded below the 18,700 level. Trading could be volatile due to expiry of weekly index options on the NSE.
At 13:29 IST, the barometer index, the S&P BSE Sensex, was down 97.46 points or 0.15% to 63,045.50. The Nifty 50 index lost 36.80 points or 0.2% to 18,689.60.
In the broader market, the S&P BSE Mid-Cap index declined 0.62% while the S&P BSE Small-Cap index shed 0.29%.
The market breadth was negative. On the BSE, 1,475 shares rose and 1,996 shares fell. A total of 118 shares were unchanged.
RBI Maintains Status Quo on Rates:
The Reserve Bank of India (RBI) monetary policy committee (MPC) has voted unanimously to keep the repo rate unchanged at 6.5%.
The standing deposit facility (SDF) rate remains unchanged at 6.25% and the marginal standing facility (MSF) rate and the Bank Rate at 6.75%.
The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth.
These decisions are in consonance with the objective of achieving the medium term target for consumer price index (CPI) inflation of 4% within a band of +/- 2 per cent, while supporting growth, RBI stated.
The central bank has cut inflation aim to 5.1% from 5.2% forecast in April policy.
Meanwhile, the RBI Governor Shaktikanta Das said real GDP growth is projected at 6.5% for FY24, ? Q1 at 8%, Q2 at 6.5%, Q3 at 6% and Q4 at 5.7%.
Stocks in Spotlight:
IndusInd Bank lost 0.28%. The bank said that it has been appointed as an authorized 'agency bank' by the Ministry of Finance, Madhya Pradesh State Government. This appointment will enable IndusInd Bank for online collection of state government revenue and receipts such as GST and VAT, collection of stamp duty and pension amounts on behalf of the Madhya Pradesh state government.
Mazagon Dock Shipbuilders shed 0.51%. The company announced the signing of an MoU with thyssenkrupp Marine Systems with an aim to build air independent propulsion conventional submarines for and in India.
Zen Technologies surged 4.02%. The company announced that it has bagged an order from the Ministry of Defence (MoD), Government of India valued at approximately Rs 202 crore. The company looks forward to securing additional sizeable contracts within the next quarter, the anti-drone solutions provier said.
Hatsun Agro Product jumped 5.46%. The company said that its board will meet on 5 July 2023 to consider the sale of its windmill division via transfer of all the assets and liabilities through a slump sale.
Titagarh Wagons rose 1.08%. The company announced that its board will meet on Saturday, 10 June 2023, to consider, evaluate and approve a proposal to raise funds. The funds would be raised via issue equity of shares or other securities including through preferential issue, qualified institutional placement, rights issue, or through any other permissible mode or a combination thereof.
Global Markets:
Euroean markets traded mostly flat while their Asian peers traded in a mixed fashion on Thursday as global markets appeared hesitant and lacking in direction.
The Bank of Canada (BoC) surprised markets on Wednesday by hiking its overnight rate to a 22-year high of 4.75%.
Japan's economy grew an annualized 2.7% in the first quarter of the year, expanding further than earlier estimates of 1.6% made last month, government data showed, as the economy continues to see robust spending.
Overnight in the US, the three main equity indices finished mixed as the Dow Jones gained, while S&P500 and Nasdaq closed in negative territory on Wednesday as investors took profits after a recent megacap stocks run and ahead of key economic and policy events next week.
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