Post Session: Quick Review

Indian equity benchmarks ended Friday’s trade in green terrain with frontline gauges garnering three fourth of a percent as Reserve Bank of India (RBI) keeps rates unchanged. Markets made a cautious start as  the finance ministry said the current elevated level of international crude price, should it persist for a long time, may come in the way of India achieving a real economic growth rate of 8%-plus in FY23 and pose upside risks to inflation as well. Markets traded cautiously in first half of the trade as traders remained on sidelines ahead of outcome of RBI’s policy meet, however post outcome markets started moving northward. In line with street estimates, the RBI Governor Shaktikanta Das-led Monetary Policy Committee (MPC) has decided unanimously to keep the repo rate unchanged at 4%. This is the first monetary policy for FY23. The rate remained unchanged for the eleventh time in a row. The MPC also decided to continue with its 'accommodative' stance of policy. The reverse repo rate also remained unchanged at 3.35 per cent. The Marginal Standing Facility (MSF) and Bank rates stood at 4.25 per cent. Besides, RBI cuts the FY23's GDP growth forecast to 7.2% from 7.8%.

Markets extended gains as sentiments remain upbeat as former RBI Governor Bimal Jalan has said that the country’s economy is in good shape as India’s GDP growth rate and foreign exchange reserve are high. Traders took some support with a private report that with the e-way bills generated for inter-state trade in goods under the goods and services tax (GST) regime touching a record in March, the monthly GST collections will likely hit an all-time high of around Rs 1.5 trillion in April (March transactions).

Firm opening in European markets too aided sentiments with all the key gauges trading in green as investors assessed the pace of the Federal Reserve’s monetary tightening plans and news from Ukraine. Asian markets ended mostly in green even as Wall Street struggled for direction amid caution around the Fed's plan for aggressive policy tightening and the war in Ukraine. Back home, insurance industry stocks were in focus as the insurance regulator, IRDA, wants removal of the minimum entry capital requirement of Rs 100 crore for setting up an insurance business in a bid to facilitate the entry of multiple players such as standalone micro insurers and niche players.

The BSE Sensex ended at 59447.18, up by 412.23 points or 0.70% after trading in a range of 58876.36 and 59654.44. There were 23 stocks advancing against 7 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.93%, while Small cap index was up by 0.99%. (Provisional)

The top gaining sectoral indices on the BSE were Power up by 1.99%, Metal up by 1.96%, FMCG up by 1.93%, Basic Materials up by 1.91% and Utilities up by 1.81%, while IT down by 0.01% was the lone loser on BSE sectoral front. (Provisional)

The top gainers on the Sensex were ITC up by 4.36%, Dr. Reddy's Lab up by 2.67%, Mahindra & Mahindra up by 2.62%, Titan Company up by 2.26% and Reliance Industries up by 1.75%. On the flip side, Tech Mahindra down by 1.18%, Maruti Suzuki down by 1.04%, NTPC down by 0.98%, HCL Tech down by 0.65% and Sun Pharma down by 0.36% were the top losers. (Provisional)

Meanwhile, revenue Secretary Tarun Bajaj has said India's tax collections soared to a record high of Rs 27.07 lakh crore in the fiscal year ended March 31 (FY22) compares with budget estimate of Rs 22.17 lakh crore. The rise in tax collections was mainly on account of jump in mop-up from income and other direct taxes as well as indirect taxes.

Direct taxes, which comprise income tax paid by individuals and corporate tax, came in at Rs 14.10 lakh crore -- Rs 3.02 lakh crore higher than the budget estimate. He said indirect taxes like excise duty stood Rs 1.88 lakh crore higher than the budget estimate. Against the budget estimate of Rs 11.02 lakh crore, indirect tax mop-up was Rs 12.90 lakh crore.

He further said direct taxes showed a 49 per cent growth, indirect tax collections were up 30 per cent last fiscal. The tax-to-GDP ratio jumped to 11.7 per cent in FY22 from 10.3 per cent in FY21. This was the highest since 1999.

The CNX Nifty ended at 17784.35, up by 144.80 points or 0.82% after trading in a range of 17600.55 and 17842.75. There were 41 stocks advancing against 9 stocks declining on the index. (Provisional)

The top gainers on Nifty were Grasim Industries up by 5.31%, SBI Life Insurance up by 4.65%, ITC up by 4.34%, JSW Steel up by 3.92% and Mahindra & Mahindra up by 2.77%. On the flip side, Cipla down by 2.42%, Tech Mahindra down by 1.35%, Maruti Suzuki down by 1.08%, NTPC down by 0.94% and HCL Tech. down by 0.68% were the top losers. (Provisional)

European markets were trading in green; France’s CAC increased 93.27 points or 1.44% to 6,554.95, Germany’s DAX increased 196.10 points or 1.39% to 14,274.25 and UK’s FTSE 100 was up by 75.22 points or 1% to 7,627.03.

Asian markets settled mostly higher on Friday tracking positive lead from Wall Street overnight. Chinese shares ended higher in line with expectations of further policy easing measures to support a slowing economy hit by the country's worst Covid-19 outbreak in two years. Hong Kong shares gained, despite Chinese tech shares fell for a third day in view of the world's largest video games company, Tencent Holdings's decision to shut its game streaming service. Although, lingering worries about the war in Ukraine and the prospect of aggressive rate hikes by central bank around the world limited further gains.