The domestic stock barometers took a breather on Thursday, ending a four-day winning streak. Traders took profits as the Reserve Bank of India (RBI)'s policy outcome today was on expected lines. Trading was volatile due to the expiry of weekly index options on the National Stock Exchange (NSE). The Nifty 50 index closed below the 18,650 mark after hitting a high of 18,777.90 in mid-morning trade. Realty, media and healthcare stocks tumbled. On the other hand, metals shares sailed through the tide.

The barometer index, the S&P BSE Sensex declined 294.32 points or 0.47% to 62,848.64 The Nifty 50 index lost 91.85 points or 0.49% to 18,634.55. In the past four sessions, the Sensex had advanced 1.14% while the Nifty climbed 1.29%.

Kotak Mahindra Bank (down 2.68%), TCS (down 1.17%) and Bajaj Finance (down 1.03%) were major drags.

In the broader market, the S&P BSE Mid-Cap index slipped 0.87% while the S&P BSE Small-Cap index shed 0.47%.

The market breadth was negative. On the BSE, 1,491 shares rose and 2,058 shares fell. A total of 119 shares were unchanged.

RBI Maintains Status Quo on Rates:

The Reserve Bank of India (RBI) monetary policy committee (MPC) has voted unanimously to keep the repo rate unchanged at 6.5%.

The standing deposit facility (SDF) rate remains unchanged at 6.25% and the marginal standing facility (MSF) rate and the Bank Rate at 6.75%.

The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth.

These decisions are in consonance with the objective of achieving the medium term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth, RBI stated.

CPI inflation is projected at 5.1% for 2023-24, with Q1 at 4.6%, Q2 at 5.2%, Q3 at 5.4% and Q4 at 5.2%.

Meanwhile, the RBI Governor Shaktikanta Das said real GDP growth is projected at 6.5% for FY24, ? Q1 at 8%, Q2 at 6.5%, Q3 at 6% and Q4 at 5.7%.

Monsoon Update:

India received 57% lower rainfall than average in the first week of June, weather office data showed on Wednesday, after the monsoon's onset over its southern coast was delayed by the formation of a cyclone.

Numbers to track:

The yield on India's 10-year benchmark federal paper advanced 0.59% to 7.023 from previous close of 6.982.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.5350, compared with its close of 82.52 during the previous trading session.

MCX Gold futures for 4 August 2023 settlement rose 0.02% to Rs 59,513.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.24% to 103.85.

The United States 10-year bond yield gained 0.77% to 3.814.

In the commodities market, Brent crude for August 2023 settlement added 50 cents or 0.65% to $77.45 a barrel.

Global Markets:

Markets in Europe and Asia were mixed on Thursday as global markets appeared hesitant and lacking in direction.

The Bank of Canada (BoC) surprised markets on Wednesday by hiking its overnight rate to a 22-year high of 4.75%.

Japan's economy grew an annualized 2.7% in the first quarter of the year, expanding further than earlier estimates of 1.6% made last month, government data showed, as the economy continues to see robust spending.

Overnight in the US, the three main equity indices finished mixed as investors took profits after a recent megacap stocks run.

Stocks in Spotlight:

PTC Industries rose 6.82% after the company said it received listing and trading approval from the National Stock Exchange (NSE). The company's equity shares will be listed on NSE's main board with effect from 9 June 2023 under symbol PTCIL.

IndusInd Bank fell 0.59%. The bank said that it has been appointed as an authorized 'agency bank' by the Ministry of Finance, Madhya Pradesh State Government. This appointment will enable IndusInd Bank for online collection of state government revenue and receipts such as GST and VAT, collection of stamp duty and pension amounts on behalf of the Madhya Pradesh state government.

Spicejet jumped 4.41% after the company said that it has partnered with FTAI Aviation, a leading aftermarket provider of engine services, to improve the performance of its fleet. Under the partnership, FTAI will provide SpiceJet with up to 20 engines for lease, including maintenance services. This will allow SpiceJet to access a pipeline of available engines, which will eliminate the need for frequent shop visits. The revitalization program will reduce maintenance expense and minimize aircraft downtime, enhancing the airline's overall performance.

Delhivery declined 0.99%. The company announced that it has partnered with Mystore, an ONDC-powered marketplace for Indian sellers, to provide express parcel shipping for rural entrepreneurs nationwide.

Jindal Poly Films rallied 5.64% after the company announced that it has entered into an agreement to acquire the 100% shareholding of JPF Netherlands Investment B.V.

Mazagon Dock Shipbuilders lost 2.23%. The company announced the signing of an MoU with thyssenkrupp Marine Systems with an aim to build air independent propulsion conventional submarines for and in India.

Hatsun Agro Product surged 4.67%. The company said that its board will meet on 5 July 2023 to consider the sale of its windmill division via transfer of all the assets and liabilities through a slump sale.

Titagarh Wagons gained 1.13%. The company announced that its board will meet on Saturday, 10 June 2023, to consider, evaluate and approve a proposal to raise funds. The funds would be raised via issue equity of shares or other securities including through preferential issue, qualified institutional placement, rights issue, or through any other permissible mode or a combination thereof.

Gati advanced 4.93% after the company's total volume, including surface and air express, stood at 98 kiloton (kt) in May 2023, up 1% from 97 kt in May 2022.

Zen Technologies rallied 4.57% after the company announced that it has bagged an order from the Ministry of Defence (MoD), Government of India valued at approximately Rs 202 crore. The company looks forward to securing additional sizeable contracts within the next quarter, the anti-drone solutions provier said.

KPI Green Energy added 0.55% after the company received commissioning certificates from Gujarat Energy Development Agency (GEDA) for 26.10 MW wind-solar hybrid power project under independent power producer (IPP) segment. The company received certificates from GEDA for 26.10 MW wind-solar hybrid power project comprising 16.10 MW wind and 10 MW solar capacity at Bhungar site in Bhavnagar, Gujarat.

IPO Update:

The initial public offer (IPO) of IKIO Lighting received bids for 100.92 crore shares as against 1.52 crore shares on offer, according to stock exchange data at 17:00 IST on Thursday (8 June 2023). The issue was subscribed 66.29 times.

The issue opened for bidding on Tuesday (6 June 2023) and it will close on Thursday (8 June 2023). The price band of the IPO is fixed at Rs 270-285 per share. An investor can bid for a minimum of 52 equity shares and in multiples thereof.

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