Sustained rally

Nifty50: 17,599 ▲ 42 (+0.2%)
Sensex: 59,832 ▲ 143 (+0.2%)

Hello dear reader,

As we prepare to bid adieu to another week, it's time to gear up for a long weekend with Good Friday just around the corner. While some of us may be busy planning Easter egg hunts, others may simply be looking forward to a break from work. Whatever your plans are, we hope you have an enjoyable holiday.

Let's take a moment to reflect on the significance of Good Friday and what it represents, as we recharge our batteries and get ready for the week ahead. Happy Easter weekend!

• The market continues in green 
• Out of the Nifty50 stocks, 30 stocks closed in green
• RBI keeps the key rate unchanged at 6.50%

Among the Nifty sectoral indices, Realty (+2.8%) and Auto (+0.9%) were the top gainers, while IT (-0.7%) and FMCG (-0.5%) were the top losers.

What’s trending

⭐ Reliance launches Tira store

Reliance Retail has launched Tira, an omni-channel platform for beauty products, taking on the likes of Nykaa. The company launched its flagship store in Mumbai along with an app and a website. As per reports, India ranks fourth in terms of revenue generation from the beauty and personal care segment. 

  ⭐ Ashoka Buildcon bags multiple projects

Shares of the construction firm (+9.0%) rose intraday. This comes after the company won a new development project worth ₹2,285 crore. The project involves setting up distribution infrastructure for the Maharashtra State Electricity Board.    

⭐ Dalmia Sugar announces capacity expansion

The sugar company (-0.3%) plans to set up a grain-based distillery at its Nigohi unit with a capacity of 250 kilo litres per day (KLPD). The company will do a capex of  ₹400 crore for this, which will take the total distillery capacity to 1100 KLPD. The project is expected to be commissioned by September 2024.

⭐ Crude oil on a high

Oil prices are set for a third consecutive weekly gain due to OPEC production cuts and a fall in US oil inventories. Oil prices have rose over 6% so far this week after OPEC and its allies announced unexpected production cuts. However, weak US economic data has led to concerns over economic growth, causing crude to dip slightly.

In Focus

RBI keeps rate unchanged!

The Reserve Bank of India (RBI) unexpectedly kept its key policy rate unchanged at 6.5% at today’s meeting. The surprise pause came after delivering six consecutive hikes since May 2022. What led to the change in the central bank’s stance? Here is the complete takedown:

Reason for rate pause

The RBI said the repo rate was kept unchanged on the basis of current macroeconomic and financial conditions. The decision also comes amid easing inflation. Retail inflation slowed to 6.44% in February 2023 from 6.52% in January 2023. The RBI’s rate decision was below Street expectations. The Street had anticipated a 0.25% (25 basis points) rate hike.

RBI’s take on inflation 

The central bank pegs retail inflation at 5.2% for FY24, down from 6.5% in FY23. This estimate is based on the assumption of normal monsoon and average crude oil price (Indian basket) of $85 per barrel. However, the RBI has maintained that crude oil prices outlook is subject to a high degree of uncertainty.

Outlook on growth 

On the growth front, RBI expects the Indian economy to grow at 6.5% in FY24, supported by strengthening of rural and urban demand, moderation in commodity prices and a steady rise in manufacturing and investment activities.

How did the markets react?

Markets reacted positively to the policy announcement with Nifty50 closing in green for the fifth consecutive day. Rate-sensitive sectors like Realty (+2.8%) and Auto (+0.9%) were among the top gainers.

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Phrase of the day

Going Long

When you buy a stock, futures or an option contract with the hope that its price will rise, it is called going ‘long’.  When should you go long, find out from this chapter What does going Long mean? 

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