Mr. Vishal Wagh, Research Head, BONANZA PORTFOLIO LTD
The market opens marginally higher. At the time of closing, Indices ended in losses on the fourth consecutive day, Sensex ended lower by 214.85 points or 0.39% at 54,892.49, Nifty down by 60 points or 0.37% at 16,356.25. During the day, the Central bank raised key rates by 50 bps to 4.90%. SDF rate is now 4.65%, and the MSF rate is now 5.15%. GDP growth forecast for FY23 remained at 7.2%, CPI inflation forecast for FY23 raised to 6.7% from 5.7%. Limits on individual home loans given by urban and rural co-operative banks are being revised upwards by more than 100% taking into account the rise in housing prices over the last decade. The limit on recurring e-payments is now raised to Rs 15,000 from Rs 5,000. Credit cards, starting with RuPay credit cards, can now be linked to UPI. 10 year yield slipped roughly 8 bps to 7.45% after RBI Governor's statement. Absence of CRR hike, and RBI's willingness to keep the door open for measures to support government borrowing comforted investors. Oil prices edged up on Wednesday ahead of data on U.S. oil inventories, with crude futures supported by tight supplies and recovering fuel demand as China's top cities relax COVID-19 curbs. China's tech stocks are rallying after the government's latest batch of approvals for new games raised hope that the industry is reviving. On the sectoral front, FMCG, energy & Infrastructure ends in red while the rest of the sectoral indices end in green.
Nifty 50 top gainers are TataSteel, SBIN, Titan, Dr.Reddy & BPCL while BhartiArtl, ITC, Reliance, UPL & AsianPaints were among the top losers.