Daily Market Commentary - April 6, 2023 - Bonanza Portfolio

By Mr. Rajesh Sinha, Sr. Research Analyst, BONANZA PORTFOLIO LTD

Indian indices opened lower today with Nifty around 17500. At the time of closing, Sensex was up 143.66 points or 0.24% at 59,832.97, and the Nifty was up 42.20 points or 0.24% at 17,599.20.

During the day, the Reserve Bank of India leaves the repo rate & Standing deposit facility rate unchanged at 6.5% & 6.25% and also decided to remain focussed on the withdrawal of accommodation. MPC will not hesitate to take further action as and when required in future meetings. The surprise move taken by the RBI spark the band rally followed by an unexpected pause in the rate hiking cycle led to stocks erasing their earlier losses and the rupee gaining strength. Specifically, the 5-vear yield decreased by 9 bps to 7.05%. For FY23-24 GDP is forecasted at 6.5% from 6.4%, in which GDP for O1 retained at 7.8% for 02 at 6.2%, for 03 at 6.1% and for 04 at 5.9%. On a similar ground, CPI inflation is forecasted at 5.2% which was 5.39 earlier. The government may not allow additional sugar exports.

Gold prices fell on Thursday as the dollar firmed ahead of a much-awaited U.S. non-farm payrolls report, as investors sought clarity on whether the Federal Reserve might take a breather on its monetary tightening path. The US dollar mostly traded flat against a basket of currencies as easing worries on the ongoing banking crisis appear to wane amid the recent OPEC+ surprise cuts and its impact on inflation. On the sectoral front, the realty index added 3%, the auto index gained 1%, while pharma, capital goods, oil & gas, power up 0.5%each. However, FMCG, IT, and metal are down 0.5% each.

Nifty 50 top gainers are Adani Enterprises, Bajaj Finance, Tata Motors, Baja Finserv, and Sun Pharma while HCL Technologies, ONGC, Axis Bank, Tech Mahindra, and ICICI Bank were among the top losers.

Source : Equity Bulls

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