At 12:30 IST, the barometer index, the S&P BSE Sensex, was up 188.09 points or 0.32% to 59,877.40. The Nifty 50 index added 57.85 points or 0.33% to 17,614.90.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.66% while the S&P BSE Small-Cap index gained 0.65%.

The market breadth was strong. On the BSE, 2,297 shares rose and 1,043 shares fell. A total of 120 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.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 2.98% to 12.04. The Nifty 27 April 2023 futures were trading at 17,668.35, at a premium of 53.45 points as compared with the spot at 17,614.90.

The Nifty option chain for the 27 April 2023 expiry showed maximum Call OI of 35.6 lakh contracts at the 18,000 strike price. Maximum Put OI of 64.9 lakh contracts were seen at 17,000 strike price.

Buzzing Index:

The Nifty Auto index rose 0.74% to 12,449.60. The index was down 0.55% in past trading session.

Ashok Leyland (up 1.6%), Tata Motors (up 1.54%), Mahindra & Mahindra (up 1.19%), Eicher Motors (up 0.89%), Sona BLW Precision Forgings (up 0.75%), Bajaj Auto (up 0.61%), Maruti Suzuki India (up 0.48%), TVS Motor Company (up 0.34%), MRF (up 0.32%) and Balkrishna Industries (up 0.24%) advanced.

On the other hand, Bosch (down 0.93%), Hero MotoCorp (down 0.34%) and Tube Investments of India (down 0.18%) edged lower.

Stocks in Spotlight:

Cholamandalam Investment and Finance Company jumped 6.80% after the company's disbursements surged 65% year on year (YoY) to approximately Rs 21,020 crore in Q4 FY23. The company had recorded disbursements of Rs 12,718 crore in Q4 FY22.

Equitas Small Finance Bank rallied 3.24% after its gross advances surged 36% to Rs 28,061 crore as on 31 March 2023 as against Rs 20,597 crore as on 31 March 2022.

Tatva Chintan Pharma Chem rose 0.66% after the company announced that it has successfully commenced its commercial production from the new facility at its Dahej manufacturing plant.