Benchmarks remain in green; RBI retains repo rate at 6.5%

Indian equity benchmarks held early gains in morning deals, after the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) kept the key repo rate unchanged at 6.5 per cent, while maintaining the 'withdrawal of accommodation' stance. The central bank further kept the CPI inflation projection for FY24 unchanged at 5.4 per cent, while also keeping FY24 GDP forecast steady at 6.5 per cent. Traders got support as India and the UAE have signed a Memorandum of Understanding (MoU) on increasing cooperation in the field of industries and advanced technologies. The MoU aims at strengthening and developing industries in both nations through investments, technology transfer and deployment of key technologies in industries, by benefitting from joint funds and mutual efforts. On the global front, Asian markets are trading mostly higher as traders looked ahead to the release of September U.S. employment report later in the day for clues on the economic and rate outlook. 

The BSE Sensex is currently trading at 65863.35, up by 231.78 points or 0.35% after trading in a range of 65762.33 and 65889.45. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.53%, while Small cap index was up by 0.50%.

The top gaining sectoral indices on the BSE were Realty up by 0.83%, Consumer Durables up by 0.66%, FMCG up by 0.60%, Metal up by 0.58% and Consumer Discretionary up by 0.56%, while Telecom down by 0.27% was the lone losing index on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 2.35%, ITC up by 1.56%, Bajaj Finance up by 1.40%, Titan Company up by 1.30% and JSW Steel up by 1.13%. On the flip side, Hindustan Unilever down by 0.76%, Larsen & Toubro down by 0.31%, Power Grid Corp down by 0.25%, TCS down by 0.23% and Bharti Airtel down by 0.22% were the top losers.

Meanwhile, Icra in its report has said that the footwear industry is likely to register a moderate growth of 7-8 per cent in the current fiscal (FY24) against 28 per cent in FY23. The industry witnessed a muted revenue growth in the first half of FY24, mainly on account of factors like sluggish volume growth and no significant increase in average selling price. 

It stated the mass segment faces headwinds, and demand is unlikely to improve significantly in the near term, though sales recovery during the festive and wedding season in H2 FY2024 could partially offset muted revenue growth in H1.

Further, it said, on the input side, softening raw material (RM) prices are estimated to support the operating margin (OPM) in H1 FY2024. However, increasing RM prices since August 2023 are likely to impact the margins in H2 FY2024. It added ‘Consequently, the OPM is likely to remain flat at 18.5 per cent in FY2024.’

The CNX Nifty is currently trading at 19614.35, up by 68.60 points or 0.35% after trading in a range of 19589.40 and 19624.00. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were Bajaj Finserv up by 2.30%, Tata Consumer Product up by 1.70%, ITC up by 1.54%, Bajaj Finance up by 1.36% and Titan Company up by 1.27%. On the flip side, Hindustan Unilever down by 0.74%, ONGC down by 0.66%, Larsen & Toubro down by 0.33%, Power Grid Corporation down by 0.33% and Bharti Airtel down by 0.26% were the top losers.

Asian markets are trading mostly higher; Hang Seng advanced 312.21 points or 1.78% to 17,526.08, Taiwan Weighted added 54.41 points or 0.33% to 16,507.93, Jakarta Composite gained 22.84 points or 0.33% to 6,897.67, Straits Times rose 17.66 points or 0.56% to 3,172.76 and KOSPI increased 5.75 points or 0.24% to 2,409.35. On the flip side, Nikkei 225 slipped 27.25 points or 0.09% to 31,048.11.