Market closes higher, RBI keeps repo rates at 4%, hikes reverse repo rate to 3.75%

Trendlyne Analysis

Nifty 50 closed in the green after gyrating between gains and losses. Most Asian stocks closed in the red as investors continue to monitor both Federal Reserve’s plan to tighten its monetary policy and the latest Covid-19 outbreak in China. US stocks closed higher on Thursday as buying pressure picked up towards the end of the trading session. Reserve Bank of India (RBI) keeps the repo rate unchanged at 4% to maintain an ‘accommodative stance’ for economic growth. However, RBI increases reverse repo rate by 40 bps to 3.75% to maintain liquidity in the market.

Nifty Smallcap 100 and Nifty Midcap 100 close in the green, following the benchmark index. Nifty Metal and Nifty Media close higher than Thursday’s level. Nifty IT closes flat, taking cues from the tech-heavy NASDAQ 100 futures, which is also trading flat.

Nifty 50 closed at 17,784.35 (144.8, 0.8%), BSE Sensex closed at 59,447.18 (412.2, 0.7%) while the broader Nifty 500 closed at 15,342.40 (141.2, 0.9%)

Market breadth is overwhelmingly positive. Of the 1,886 stocks traded today, 1,273 were on the uptick, and 576 were down.

Cholamandalam Financial Holdings, AIA Engineering, Phoenix Mills, and Shriram Transport Finance Company are trading with higher volumes as compared to Thursday.
If the proposed merger goes through, PVR and INOX could look into film production and enlarge its distribution and food & beverage business to diversify its revenue streams says management of both companies, according to reports.
Sterling and Wilson Renewable Energy's Q4FY22 loss narrows 63.2% YoY to Rs 126.61 crore and revenue falls 21.5% YoY to Rs 1,071 crore. In FY22, revenue rises 2.33% YoY to 5,198.94 crore and loss widens to Rs 909.46 crore from Rs 285.38 crore in FY21.
Varroc Engineering is trading with more than ten times its weekly average trading volume. TCNS Clothing Co., Bharat Dynamics, Syngene International, and Cholamandalam Investment & Finance Company are trading at more than six times their weekly average trading volumes.
Sobha reports flat sales volumes of 1.342 million square feet with sales booking value rising 3.5% YoY Rs 1,109.6 crore. Bengaluru market’s contribution was the highest with sales volumes increasing to 0.932 million square feet up by 4.4% YoY. The sales volumes for the Gurgaon market jump 44% YoY to 0.234 msf.
JSW Steel’s total steel crude production in Q4FY22 grows 37% YoY to 5.98 million tonnes (MT). In FY22, the total steel crude production grows 38% YoY to 21.47 MT.
RBI keeps repo rate constant at 4% for the 11th consecutive time to maintain an ‘accommodative stance’ for economy growth. However, reverse repo rate increases 40 bps to 3.75% to maintain liquidity in the market. Marginal Standing Facility (MSF) and bank rate stay the same at 4.25%.
Lupin launches Merzee capsules in the US market, under an exclusive license, marketing, and distribution agreement with Slayback Pharma. Merzee is a generic contraceptive drug, equivalent to Allergan Pharmaceuticals' Taytulla capsules.
Jindal Stainless’ sales volumes rise 6% YoY to 2.7 lakh tonnes in Q4FY22 because of its agile supply chain and a favourable product mix. The company’s exports increase 32% in Q4FY22 despite global disruptions in raw material supply and logistics.

Riding High:

Largecap and midcap gainers today include Ruchi Soya Industries Ltd. (923.45, 12.93%), Cholamandalam Investment & Finance Company Ltd. (741.75, 8.01%) and Adani Green Energy Ltd. (2,321.85, 7.20%).

Downers:

Largecap and midcap losers today include Adani Power Ltd. (220.95, -4.99%), Trent Ltd. (1,269.65, -2.91%) and Cipla Ltd. (1,011.60, -2.42%).

Movers and Shakers

22 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Bharat Dynamics Ltd. (716.15, 15.35%), Ruchi Soya Industries Ltd. (923.45, 12.93%) and Ceat Ltd. (1,124.45, 12.89%).

Top high volume losers on BSE were RBL Bank Ltd. (128.10, -6.63%), Escorts Ltd. (1,610.20, -6.12%) and TCNS Clothing Co. Ltd. (791.80, -0.49%).

Mishra Dhatu Nigam Ltd. (201.75, 8.97%) was trading at 12.0 times of weekly average. Varroc Engineering Ltd. (398.90, 8.99%) and JK Tyre & Industries Ltd. (135.95, 12.17%) were trading with volumes 11.5 and 7.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

17 stocks overperformed with 52-week highs,

Stocks touching their year highs included - Bharat Electronics Ltd. (239.60, 2.24%), Cholamandalam Investment & Finance Company Ltd. (741.75, 8.01%) and Indian Hotels Company Ltd. (253.85, 1.42%).

19 stocks climbed above their 200 day SMA including Mishra Dhatu Nigam Ltd. (201.75, 8.97%) and Sterling and Wilson Renewable Energy Ltd. (367.35, 6.56%). 2 stocks slipped below their 200 SMA including V Mart Retail Ltd. (3,560.10, -1.32%) and Cera Sanitaryware Ltd. (4,708.50, 0.60%).