Markets add some gains after RBI keeps repo rate unchanged

Indian equity benchmarks added some gains in morning deals, after the Reserve Bank of India's (RBI) monetary policy committee unanimously decided to keep the repo rate unchanged at 6.5 per cent. Besides, RBI retains growth projection at 6.5 per cent for FY24, expects 8 per cent growth in Q1, 6.5 per cent in Q2, 6 per cent in Q3 and 5.7 per cent in Q4. It also lowers retail inflation projection to 5.1 per cent during FY'24 from earlier estimate of 5.2 per cent. Traders took support as provisional data from the National Stock Exchange showed that foreign institutional investors (FIIs) bought shares worth Rs 1,382.57 crore on June 7. However, there were some cautiousness too as the Organization for Economic Co-operation and Development (OECD) marginally raised its 2023-24 (FY24) growth forecast for India to 6 per cent, from 5.9 per cent estimated earlier, while maintaining that weak global demand and the effect of monetary policy tightening will constrain growth in the world’s fifth-largest economy in the current fiscal year. On the global front, Asian markets are trading mostly in red following the mostly negative cues from global markets overnight, as traders are nervous over the outlook for interest rates as the Bank of Canada once again raised interest rates after leaving rates unchanged for two straight meetings.

The BSE Sensex is currently trading at 63279.80, up by 136.84 points or 0.22% after trading in a range of 63111.63 and 63317.16. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.16%, while Small cap index was up by 0.38%.

The top gaining sectoral indices on the BSE were Utilities up by 2.21%, Power up by 1.87%, Metal up by 0.99%, PSU up by 0.87% and Telecom up by 0.77%, while Auto down by 0.37%, Realty down by 0.36%, IT down by 0.32%, TECK down by 0.22% and FMCG down by 0.19% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 3.49%, Power Grid Corporation up by 2.32%, HDFC up by 0.88%, Larsen & Toubro up by 0.85% and HDFC Bank up by 0.79%. On the flip side, Kotak Mahindra Bank down by 1.38%, Mahindra & Mahindra down by 1.10%, Sun Pharma down by 0.96%, Nestle down by 0.88% and TCS down by 0.84% were the top losers.

Meanwhile, Union minister Pralhad Joshi has said state revenues have improved and production of coal and other minerals increased significantly on the back of reforms taken by the government in the coal and mining sectors. He stated in the last 9 years of the Modi government, there have been various reforms in the whole coal and mining sector. Country is moving towards Atmanirbharta. 2014 onwards, the first-come-first-serve system was totally removed and a transparent auction regime was set in place and by that state got a huge revenue both as far coal and mining sectors are concerned. 

Citing examples, he said the revenue of Odisha from coal and other minerals increased multi-fold to Rs 50,000 crore in 2021-22, from Rs 5,000 crore in 2015-16. He mentioned the government made amendments to the Mines and Minerals (Regulation and Development) Amendment Act with an objective to simplify rules to increase the participation of players in the mining sector. The government has launched Mission Coking Coal for exploration, enhancing production, enhancing washing capacity, and auctioning of new coking coal mines.

Further, he said in the 7th round of coal auctions, a total of 106 coal mines were put on the block, 61 blocks are partially explored and 45 mines are fully explored. As many as 95 non-coking coal mines, 10 lignite mines and one coking coal mine are being offered in the latest round of auction.

The CNX Nifty is currently trading at 18771.45, up by 45.05 points or 0.24% after trading in a range of 18723.40 and 18775.60. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were NTPC up by 3.52%, JSW Steel up by 3.35%, Power Grid Corporation up by 2.34%, ONGC up by 1.72% and Hero MotoCorp up by 1.05%. On the flip side, BPCL down by 1.40%, Kotak Mahindra Bank down by 1.32%, Eicher Motors down by 1.23%, Apollo Hospital down by 1.17% and Mahindra & Mahindra down by 1.17% were the top losers.

Asian markets are trading mostly in red; Taiwan Weighted lost 209.23 points or 1.24% to 16,713.25, Hang Seng declined 74.48 points or 0.39% to 19,177.52, Shanghai Composite weakened 3.8 points or 0.12% to 3,193.96, KOSPI dropped 18.15 points or 0.69% to 2,597.45, Straits Times fell 5.49 points or 0.17% to 3,174.09 and Nikkei 225 slipped 382.03 points or 1.2% to 31,531.71.

On the flip side, Jakarta Composite gained 0.05 points to 6,619.81.