Key indices trade higher as RBI keeps repo rate steady

Indian equity benchmarks traded higher with gains of over half percent each in morning deals after Reserve Bank of India (RBI) kept the benchmark interest rate unchanged at 4 per cent and decided to continue with its accommodative stance as long as necessary to support growth and keep inflation within the target. Besides, RBI retained its growth projection at 9.2 per cent and inflation at 5.3 per cent for the current financial year. Traders also took some support with Minister of State for Commerce and Industry Anupriya Patel’s statement that India is in discussion with the 10-nation bloc ASEAN for initiating the review of the free-trade agreement in goods between the two regions to seek more market access for domestic products. Meanwhile, Revenue Secretary Tarun Bajaj said the government is open to some tinkering in the varied rates and holding period for computation of capital gains tax on shares, debt and immovable property, in a bid to make it simple. On the global front, Asian markets were trading mostly in green following a positive performance on Wall Street as traders prepared for the release of highly anticipated US inflation data, while sentiment was also buoyed by signs of easing Russia-Ukraine tensions.

The BSE Sensex is currently trading at 58789.86, up by 323.89 points or 0.55% after trading in a range of 58332.28 and 58810.53. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index rose 0.16%, while Small cap index was down by 0.03%.

The top gaining sectoral indices on the BSE were Metal up by 1.12%, Bankex up by 0.96%, Power up by 0.82%, PSU up by 0.75% and IT up by 0.75%, while Telecom down by 0.55%, FMCG down by 0.41%, Consumer Disc down by 0.21%, Auto down by 0.14% and Consumer Durables down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC up by 1.83%, Tata Steel up by 1.66%, Power Grid Corporation up by 1.58%, HDFC Bank up by 1.43% and Kotak Mahindra Bank up by 1.41%. On the flip side, Maruti Suzuki down by 1.25%, Bharti Airtel down by 0.89%, Asian Paints down by 0.75%, Hindustan Unilever down by 0.51% and ITC down by 0.48% were the top losers.

Meanwhile, Union Minister of State for Commerce and Industry Som Parkash said India has received Foreign Direct Investment (FDI) inflows worth $339.55 billion in the last five financial years. There has been a continuous increase in the inflow of FDI in recent years. It increased from $45.15 billion in 2014-15 to $81.97 billion in 2020-21. During the year 2019-20, the FDI inflows to India stood at $74.39 billion. In 2018-19, it stood at $62 billion. In 2017-18, it was $60.97 billion and in 2016-17, the FDI inflow to India stood at $60.22 billion.

He stated, to promote FDI, the Government has put in place an investor-friendly policy, wherein most sectors are open for 100 per cent FDI under the automatic route. Further, the policy on FDI is reviewed on an ongoing basis, to ensure that India remains attractive & investor friendly destination. Changes are made in the policy after having consultations with stakeholders including apex industry chambers, associations, representatives of industries/groups and other organizations.

The government has recently undertaken a number of reforms across sectors. In the last one year alone, reforms in the FDI policy have been undertaken in sectors such as insurance, defence, petroleum and natural gas, and telecom. He noted that Foreign Direct Investment inflows serve to augment domestic investments, promote industrial development and employment generation across sectors and ancillary industries.

The CNX Nifty is currently trading at 17571.55, up by 107.75 points or 0.62% after trading in a range of 17427.15 and 17575.40. There were 34 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were ONGC up by 3.29%, HDFC up by 1.98%, Power Grid Corporation up by 1.72%, HDFC Bank up by 1.70% and Tata Steel up by 1.60%. On the flip side, BPCL down by 1.30%, Maruti Suzuki down by 1.15%, Bharti Airtel down by 0.76%, Asian Paints down by 0.68% and Hero MotoCorp down by 0.56% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 85.90 points or 0.31% to 27,665.77, Taiwan Weighted strengthened 101.50 points or 0.56% to 18,253.26, Straits Times advanced 0.16 points or 0% to 3,420.20, Jakarta Composite soared 16.43 points or 0.24% to 6,851.04 and KOSPI rose 4.26 points or 0.15% to 2,773.11.

On the flip side, Shanghai Composite declined 3.49 points or 0.1% to 3,476.46 and Hang Seng decreased 119.97 points or 0.48% to 24,710.02.