The key equity indices traded with minor gains in mid-afternoon trade. The Nifty traded above the 17,550 mark after hitting the day's low of 17,502.85 in morning trade. Pharma stocks extended gains for fifth consecutive trading session.

At 14:25 IST, the barometer index, the S&P BSE Sensex, was up 67.8 points or 0.11% to 59,757.11. The Nifty 50 index added 26.85 points or 0.15% to 17,583.90.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index gained 0.65% while the S&P BSE Small-Cap index rose 0.56%.

The market breadth was strong. On the BSE, 2,276 shares rose and 1,170 shares fell. A total of 123 shares were unchanged.

RBI monetary policy:

RBI's Monetary Policy Committee (MPC) at its meeting today (April 6, 2023) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50%.

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%.

All members of the MPC unanimously voted to keep the policy repo rate unchanged. 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.

Assuming an annual average crude oil price (Indian basket) of $85 per barrel and a normal monsoon, CPI inflation is projected at 5.2% for 2023-24 (vs. 5.3% projected in the previous meeting), with Q1 at 5.1%, Q2 at 5.4%, Q3 at 5.4% and Q4 at 5.2%, and risks evenly balanced.

Real GDP growth for 2023-24 is projected at 6.5% (vs. 6.4% projected in the previous meeting) with Q1:2023-24 at 7.8%; Q2 at 6.2%; Q3 at 6.1%; and Q4 at 5.9%, with risks evenly balanced.

Numbers to track:

The yield on India's 10-year benchmark federal paper declined to 7.211 from 7.273 previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 81.94, compared with its close of 81.9050 during the previous trading session.

MCX Gold futures for 5 June 2023 settlement fell 0.18% to Rs 60,744.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.10% to 101.96.

The United States 10-year bond yield declined 0.24% to 3.279

In the commodities market, Brent crude for June 2023 settlement shed 55 cents or 0.65% to $84.44 a barrel.

Buzzing Index:

The Nifty Pharma index rose 0.66% to 12,262.45, rallied for the fifth session . The index gained 3.28% in five trading sessions.

Aurobindo Pharma (up 1.87%), Ipca Laboratories (up 1.75%), Biocon (up 1.29%), Sun Pharmaceuticals Industries (up 1.27%) and Sanofi India (up 1.1%) were the top gainers. Among the other gainers were Pfizer (up 0.85%), Divis Laboratories (up 0.79%), Granules India (up 0.66%), Zydus Lifesciences (up 0.64%) and Lupin (up 0.54%) advanced.

On the other hand, Cipla (down 0.63%), Gland Pharma (down 0.58%) and Glaxosmithkline Pharmaceuticals (down 0.39%) declined.

Stocks in Spotlight:

Muthoot Finance rose 1.16% after the company's board approved an interim dividend of Rs 22 per share per equity share for FY23.

Punjab & Sind Bank gained 1.46% after the bank's gross advances increased by 15.85% to Rs 81,544 crore as on 31 March 2023 as against Rs 70,387 crore as on 31 March 2022. The bank's total business stood at Rs 1,91,212 crore as on 31 March 2023, registering a growth of 10.83% from Rs 1,72,524 crore recorded in the same period last year.