Barometers trade with robust gains, financial services shares advance

The frontline equity indices traded strong major gains in mid-afternoon trade, supported by a sharp decline in oil prices following the ceasefire agreement between the US and Iran. Market sentiment was further lifted by a strengthening rupee, adding to the overall positive momentum, and was further supported by the RBI's Monetary Policy Committee (MPC) decision. The MPC kept the benchmark interest rate unchanged at 5.25% in its first policy meeting of the financial year 2026'27, under Governor Sanjay Malhotra. The Nifty traded near the 24,000 level. Financial serices shares extended gains for the fifth consecutive trading session.

At 14:30 ST, the barometer index, the S&P BSE Sensex surged 2899.15 points or 3.88% to 77,516.07. The Nifty 50 index soared 853.43 points or 3.69% to 23,977.05.

In the broader market, the BSE 150 MidCap Index surged 3.89% and the BSE 250 SmallCap Index jumped 3.89%.

The market breadth was strong. On the BSE, 3,831 shares rose and 494 shares fell. A total of 124 shares were unchanged.

RBI MPC outcome:

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) decided to keep the repo rate unchanged at 5.25% while announcing its first policy decision for FY27 on Wednesday, April 8.

The MPC, chaired by Governor Sanjay Malhotra, unanimously voted to maintain the repo rate under the liquidity adjustment facility (LAF) at 5.25%. Accordingly, the standing deposit facility (SDF) rate remains at 5.00%, while the marginal standing facility (MSF) rate and the Bank Rate continue at 5.50%. The committee also retained its 'neutral' policy stance.

The RBI warned that elevated energy and commodity prices, along with potential disruptions in the Strait of Hormuz, could weigh on growth going forward. Real GDP growth for FY27 is pegged at 6.9%, with quarterly projections at 6.8% in Q1, 6.7% in Q2, 7.0% in Q3 and 7.2% in Q4.

On the domestic front, India's economy remained resilient in FY26, with real GDP growth revised higher to 7.6% YoY as per the Second Advance Estimates, compared to 7.4% projected earlier in the First Advance Estimates.

Inflation risks have also firmed up. CPI inflation for FY27 is projected at 4.6%, up sharply from 2.1% earlier, with upside risks stemming from elevated energy prices and potential weather disruptions such as El Ni'o impacting the monsoon.

The MPC minutes will be released on 22 April 2026, while the next policy meeting is scheduled from 3 June 2026 to 5 June 2026.

Short-Term Ceasefire in Middle East:

The US and Iran have reportedly entered a temporary two-week ceasefire arrangement, with Pakistan acting as mediator and Islamabad set to host follow-up talks. The deal appears to be conditional, with the Strait of Hormuz at the center of the discussions; reporting suggests Iran would allow shipping access under military coordination, while the US would pause offensive action. The media outlets describe the broader framework as a proposal under discussion rather than a concluded peace deal, and Iran's 10-point demands ' including sanctions relief, nuclear recognition, and US troop withdrawal ' remain unverified as agreed terms.

Buzzing Index:

The Nifty Financial Services index jumped 5.41% to 26,021.35. The index surged 10.62% in five consecutive trading sessions.

Shriram Finance (up 10.52%), Cholamandalam Investment & Finance Company (up 9.46%), Muthoot Finance (up 7.64%), Max Financial Services (up 7.07%), Bajaj Finance (up 6.98%), BSE (up 6.92%), Bajaj Finserv (up 5.8%), Axis Bank (up 5.74%), HDFC Bank (up 5.14%) and ICICI Bank (up 4.88%) advanced.

Numbers to Track:

The yield on India's 10-year benchmark federal paper declined 1.70% to 6.922 compared with previous session close of 7.042.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 92.6025 compared with its close of 93.0600 during the previous trading session.

MCX Gold futures for 5 June 2026 settlement rose 2.20% to Rs 153,600.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 1.04% to 98.64.

The United States 10-year bond yield fell 2.67% to 4.229.

In the commodities market, Brent crude for June 2026 settlement fell $14.82 or 13.56% to $94.45 a barrel.

Stocks in Spotlight:

Zydus Lifesciences rose 1.86% after the company received final approval from the United States Food and Drug Administration (USFDA) for Dapagliflozin tablets, 5 mg and 10 mg.

OBSC Perfection soared 11.21% after the company received a nomination letter from an India-based auto components manufacturer for an order worth Rs 22.6 crore.

Max Healthcare (MHIL) added 0.93%. The company announced that it has entered into a share purchase agreement for acquiring a controlling stake in Kalinga Hospital (KHL) from Hospital Corporation of Orissa Inc.