RBI Rate Cut Fails to Lift Market Sentiment

In a landmark policy shift, the Reserve Bank of India (RBI), under the leadership of its new governor Mr. Malhotra, reduced the policy repo rate by 25 basis points to 6.25%—its first rate cut in five years. However, the markets reacted negatively due to the lack of additional liquidity-enhancing measures and the RBI’s decision to maintain its policy stance.

The Nifty 50 extended its losing streak for a third straight session, experiencing high volatility during the RBI announcement. The index swung over 800 points intraday before closing 43 points lower (-0.18%) at 23,559.95. Despite this, the Nifty ended the week with a 0.33% gain, marking its second consecutive positive weekly close.

The Indian Rupee strengthened by 16 paise from its all-time low, closing at 87.42 per U.S. dollar.

Sector & Market Overview

• Broader Markets:

• Nifty Midcap 100: +0.2% – Outperformed the benchmark.

• Nifty Smallcap 100: -0.29% – Lagged in comparison.

• Market Breadth: Negative, with the advance-decline ratio at 0.63, indicating a cautious investor mood.

• Sectoral Performance:

• Gainers: Metals, Consumer Durables, and Auto stocks led the gains.

• Losers: PSU Banks, FMCG, and Oil & Gas stocks were the weakest performers.

Stock Movers

Top Gainers

• Godfrey Phillips: ₹5,470 (+18.94%) – Strong rally on improved earnings outlook.

• Bharti Hexacom: ₹1,465 (+11.86%) – Surged on increased investor interest.

Top Loser

• NCC: ₹207 (-12.73%) – Declined sharply amid profit booking.

Key Corporate Updates

🔹 GENSOL (+3.25%) – Won a ₹967.98 Cr EPC contract for a 245 MW solar project at Khavda, taking its total capacity to 520 MW.

🔹 NIBE (+4.10%) – Subsidiary secured a $19M satellite supply contract with Thales Alenia and a two-year O&M deal with BlackSky Global.

🔹 KPIGREEN (+2.15%) – Expanded its IPP portfolio to 45.7 MW, commissioning a new 25.8 MW wind project in Bharuch.

🔹 CUMMINSIND (-1.82%) – Announced plans to sell 100% stake in Cummins Sales & Service for ₹56.5 Cr, with the deal closing by April 1, 2025.

🔹 SHAKTIPUMP (+3.89%) – Invested ₹3 Cr in Shakti EV Mobility, raising its total EV investment to ₹35 Cr for motor & charger manufacturing.

Nifty 50 Performance

Among Nifty 50 stocks, the top gainers were:

• Tata Steel: +4.24%

• ITC Hotels: +3.73%

• Bharti Airtel: +3.60%

Meanwhile, the major laggards included:

• ITC: -2.49%

• SBI: -2.11%

• Britannia: -1.70%

Market breadth remained negative, with 1,012 advances and 1,756 declines, reinforcing a cautious market sentiment.

Global Economic Calendar

Key international events that could impact markets:

• U.S. Initial Jobless Claims Report – A key indicator of labor market strength.

• European Central Bank (ECB) Meeting Minutes – Provides insights into monetary policy direction.

• China’s Inflation Data – Critical for assessing global demand trends.

Looking Ahead

Markets are expected to remain volatile, with investors closely tracking global cues and corporate earnings. The RBI’s policy move will continue to influence sentiment in the coming sessions.

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Stay tuned for more updates.