The domestic barometers further extended gains and hit intraday high in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, jumped 558.70 points or 1.14% at 49,760.09. The Nifty 50 index gained 162.25 points or 1.10% at 14,845.75.
Buying emerged after the RBI maintained status quo on interest rates while announcing its latest monetary policy outcome. All the sectoral indices on the NSE were in the green.
In the broader market, the S&P BSE Mid-Cap index added 0.55% while the S&P BSE Small-Cap index rose 1.10%.
The market breadth was strong. On the BSE, 1,773 shares rose and 957 shares fell. A total of 200 shares were unchanged.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 1.65% to 20.4950. The Nifty 29 April 2021 futures were trading at 14,927.10, at a premium of 81.35 points as compared with the spot at 14,845.75.
The Nifty option chain for 29 April 2021 expiry showed maximum Call OI of 21.8 lakh contracts at the 15,000 strike price. Maximum Put OI of 39.8 lakh contracts was seen at 14,000 strike price.
RBI Policy Outcome:
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), announcing its first bi-monthly monetary policy of the 2021-22 fiscal today, voted to leave policy repo rate unchanged at 4%. MPC maintained accommodative stance in unanimous vote.
RBI Governor Shaktikanta Das said that the CPI inflation trajectory likely to be subject to both upside and downside pressures. The central banker further said that the projection for CPI inflation has been revised to 5% in Q4 of financial year 2020-21, 5% in Q1 FY22, 5.2% in Q2, 4.4% in Q3 and 5.1% in Q4 with risks broadly balanced.
While the RBI maintained its FY22 real GDP growth projection at 10.5%, the RBI Governor said that the recent surge in COVID-19 infections has given greater uncertainty on growth outlook.
In an endeavour to sustain congenial financing conditions, the RBI has decided to put in place a secondary market G-sec acquisition programme (G-SAP). The central bank has decided to announce a G-SAP of Rs 1 lakh crore in Q1FY22.
The RBI also extended the deadline for TLTRO on-tap liquidity scheme to 30 September 2021 from 31 March 2021. It has also decided to conduct such auctions of longer tenors, following the success of variable reverse repo rate auctions. The amount and the tenor of these auction will be announced later by the RBI.
The central bank will provide liquidity support of Rs 50,000 crore to all-India financial institutions and it has also proposed to constitute a committee to comprehensively review the functioning of asset reconstruction companies.
The RBI has decided to accept the recommendations of an advisory committee that reviewed ways and means advance limits to states and union territories. The aggregate ways and means advance limit of all states and UTs will be enhanced to Rs 47,010 crore, an increase of 46%.
Coronavirus Update:
Total COVID-19 confirmed cases worldwide stood at 13,24,23,013 with 28,72,575 deaths. India reported 8,43,473 active cases of COVID-19 infection and 1,66,177 deaths while 1,17,92,135 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India detected 115,736 new cases of the novel coronavirus on Tuesday, the highest daily increase so far. Nearly 55,000 cases were detected in Maharashtra, while Chhattisgarh scaled a new peak of 9,921 cases. Karnataka, Uttar Pradesh and Delhi reported more than 5,000 cases each.
Buzzing Index:
The Nifty Auto index rose 1.37% to 9,915.20. The index added 1.50% in two sessions.
Ashok Leyland (up 3.51%), Motherson Sumi Systems (up 3.29%), Bosch (up 2.83%), HeroMoto Corp (up 1.71%) and Bajaj Auto (up 1.63%) were the top gainers in Auto segment.
Stocks in Spotlight:
Inox Leisure fell 0.96%. The board of Inox Leisure has approved to raise funds up to Rs 300 crore through issue of securities either by way of a public issue or by way of rights issue or by way of a private placement.
Wonderla Bangalore slipped 0.65%. Wonderla Bangalore announced the closure of water rides effective from 7 April 2021 till further notice, following the government directive. "All land rides will be functional as normal," the company said in a statement. The land rides at Wonderla Bangalore will be open to the public at Rs 799 on weekdays and Rs 999 on weekends. Wonderla Bangalore has secured COV-Safe certification by Bureau Veritas India.
Titan Company rose 0.73%. The company said it recorded very strong revenues in Q4 March 2021. Titan on Wednesday said it continued to witness strong business momentum as the COVID-19 impact on the consumer sentiments seemed to fade in the early part of the quarter. After recording the best ever revenue in Q3, which was a festive season, the company again recorded very strong revenues in Q4.
Titan said its jewellery division emerged very strongly from the crisis and witnessed strong growth in the quarter, the Watches & Wearables and the Eyewear divisions also made very good progress on recovery. However, Titan said that the second half of March 2020 was impacted by the emerging COVID-19 situation.
The company recorded strong revenue growth of 60% for the overall Q4 due to low base of March 2020, with revenue growth of over 36% in the comparable January & February months. Q4 reported revenue growth was further aided by a large B2B gold coin order that contributed about 8% of the growth.
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