Sensex Surges 575 Points as RBI Keeps Key Rates Unchanged
Closing

After opening the day in green, share markets in India witnessed positive trading activity throughout the day and ended the day on a strong note. Gains were seen across most sectors with stocks in the metal sector and stocks in the bank sector, leading the losses.

At the closing bell, the BSE Sensex stood higher by 577 points (up 1.8%) and the NSE Nifty closed up by 197 points (up 1.9%). The BSE Mid Cap index ended the day up 1.8%, while the BSE Small Cap index ended the day up by 1.9 %.

Asian stock markets finished mixed. As of the most recent closing prices, the Hang Seng was down by 2.2% and the Shanghai Composite was down by 0.2%. The Nikkei 225 was up by 1.5%. Meanwhile, European markets, were trading on a positive note. The FTSE 100 was up by 1.3%, The DAX, was down by 1.8% while the CAC 40 was up by 1.7%.

The rupee was trading at Rs 65.01 against the US$ in the afternoon session. Oil prices were trading at US$ 63.21 at the time of writing.

In news about the economy, The Reserve Bank of India (RBI), through its monetary policy committee (MPC), kept its policy rates on hold for the fourth straight meeting on Thursday and retained its neutral stance even as inflationary pressures have eased more than expected.

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Research analyst Tanushree Banerjee, recently predicted that we are at the brink of a steep 30% market crash.

And while everyone else in the market is panicking...

She remains calm.

Why?

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The RBI kept its policy repo rate unchanged at 6%, its lowest since November 2010, the reverse repo rate also remained unchanged at 5.75%.

The MPC voted 5-1 at the meeting to keep the policy rate on hold at 6 per cent and to retain its neutral monetary policy stance Chart

India's Policy Rates Compared to Asian Economies

The RBI's monetary statement in February had projected quarterly average inflation in the range of 5.1-5.6% for April-September. Now it expects inflation to be about 4.7-5.1% for the same period.

The RBI also projected economic growth of 7.4% for the current fiscal year that began on April 1.

While inflation fears have eased in the short-term, the RBI sounded cautious and opted to wait for more data instead of giving a clear indication of its policy path.

Rate cut or not, we do not attempt to predict how and when macroeconomic developments will unfold. Instead, we focus on the fundamentals and the underlying business strength of companies. The ValuePro team is always on the lookout for all-weather stocks whose fortunes are not tied to economic cycles.

Moving on to news from . ended the day on an encouraging note as the auto major Suzuki grabbed 50% market share in the passenger vehicles segment for the first time in 2017-18.

Maruti, India's biggest car maker, also sold more than 1.5 million units for the first time in its over-three decade history. At 1.65 million, Maruti's sales were 14% more than the year before, and almost twice the pace of the passenger vehicles industry.

Maruti Suzuki chairman RC Bhargava said the company's investment in diesel technology when the fuel was much cheaper than petrol, as well as in new models and sales network helped it gain market share.

While Maruti Suzuki has been the leader in India's market for passenger cars and vans, it captured the top spot in utility vehicles (UVs) only in fiscal 2018. Despite a late surge by Mahindra &Mahindra helping the long-time leader inch ahead in the March quarter, Maruti Suzuki ended the year with a lead of 25,000 units and a 27% market share.

Maruti Suzuki share price ended the day up by 1.3%

And here's a note from Profit Hunter:

The banking stocks were in focus today as Reserve Bank of India (RBI) announced its monetary policy.

Until the policy was announced, the index was trading in a narrow range, between two trendlines. But as the RBI rolled out its policy, the index experienced sharp volatility and broke out of the upper trendline as see in the one-minute chart below.

All the stocks on the Bank Nifty Index traded on a strong note. Bank of Baroda (+6.40%), SBI (+5.50%), and ICICI Bank (3.60%) were the top gainers in the index.

It broke the upper trendline and rallied one-way to hit a high of 24,822. Finally, the index ended the session with a gains of 630 points at 24,760 (+2.60%).

Market participants were waiting for RBI policy to dictate the index's next trend. Since the index broke-out on the upside, will it continue to move up in the sessions to come? Let's keep track of it...

Bank Nifty Cheers RBI policy
Bank Nifty Cheers RBI policy

Sensex Up Over 450 Points; Metal Sector Up 3.7%
12:30 pm

After opening the day on a positive note, stock markets in India have continued their momentum. Sectoral indices are trading on a positive note with stocks in the metal sector and realty sector witnessing maximum buying interest.

The BSE Sensex is trading up 455 points (up 1.4%) and the NSE Nifty is trading up 147 points (up 1.5%). The BSE Mid Cap index is trading up by 1.5%, while the BSE Small Cap index trading up by 1.7%. The rupee is trading at 65.04 to the US$.

Stocks from the interest-rate sensitive sectors such as banking sector, auto sector, and realty sector are witnessing buying interest ahead of the Reserve Bank of India's (RBI) monetary policy decision today.

Market participants are closely tracking the outcome of first bi-monthly RBI monetary policy meet for the new fiscal 2018-19.

The Reserve Bank of India (RBI) will today make public the resolution of the Monetary Policy Committee (MPC) and also declare its decision on key interest rates.

There's little hope of a cut in the key policy rate because of the rising global crude oil prices. Note that the central bank has maintained a status-quo on the key short-term borrowing rate (repo) in its last three policy meets. The benchmark lending rate was reduced by 0.25 percentage points to 6% last August, bringing it to a 6-year low.

--- Advertisement ---
'We Are Looking at a 30% Market Crash'

Research analyst Tanushree Banerjee, recently predicted that we are at the brink of a steep 30% market crash.

And while everyone else in the market is panicking…

She remains calm.

Why?

Because she has used her 13 years of experience to identify 5 Super Safe Stocks that have the potential to not only survive, but thrive in these conditions.

And today is your chance to get access to these stocks.

Click here for full details…
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The outcome of the meeting is keenly awaited amidst pressure on RBI to cut interest rates in the wake of declining retail inflation and the need to fuel economic growth.

In the news from banking sector, as per a leading financial daily, the Reserve Bank of India has temporarily relaxed provisioning norms for lenders to defaulters undergoing bankruptcy resolution.

As per the development, provisions for accounts referred to the National Company Law Tribunal (NCLT) have been reduced to 40% of dues at the end of March for secured loans, down from 50% earlier. However, the RBI stated that provisions will go back up to 50% for secured loans at the end of the June quarter.

The major beneficiaries of the above move will be the banks with the highest number of willful defaulters, as stated in the chart below. It will help bolster their financial results for the year and quarter ended March 2018.

Banks with the Highest Number of Willful Defaulters

Speaking of bank loan defaults, note that the share of large corporates, in total advances of the banking sector, has almost remained unchanged over past three years (at an average of 55%).

However, their contribution to incremental slippages has been huge. At one point, the big corporate borrowers accounted for nearly 90% of total NPAs of the sector.

Banks, in principle, must be careful about not extending loans to borrowers with poor creditworthiness or payment track record. That too, irrespective of the size of the borrower.

While the bad loans struggle at PSBs has been going on since a decade, bureaucracy and a lack of autonomy have ensured the sub-optimal profitability and asset quality of these state-run banks.

That's the reason we've been wary of PSU banks since 2014. This was well before the market had caught a whiff of the NPA problem. We've recommended just two large PSU banks in StockSelect since then...and already successfully closed both of them.


Sensex Opens Strong ahead of RBI Policy; Metal & Realty Stocks Rally
09:30 am

Asian shares bounced from two-month lows today as world equities recovered from a selloff triggered by escalating Sino-US trade tensions. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2%. Japan's Nikkei 225 gained 1.2%. Markets in mainland China, and those in Hong Kong and Taiwan, are closed today. Overnight US stocks closed with gains.

Back home, India share markets opened the day on a strong note tracking strong lead from global stocks and ahead of RBI monetary policy outcome. The BSE Sensex is trading higher by 365 points while the NSE Nifty is trading higher by 124 points. The BSE Mid Cap index and BSE Small Cap index both opened the day up by 1.2%.

All sectoral indices have opened the day in green with metal stocks and realty stocks> witnessing buying interest. The rupee is trading at 65.02 to the US$.

Pharma stocks have opened the on a mixed note with & leading the gainers. As per an article in a leading financial daily, Natco Pharma has launched a generic version of Teriflunomide, under its brand Denopsy.

The drug is used for the treatment of relapsing and remitting forms of multiple sclerosis (RRMS).

Reportedly, this is the first oral medicine for RRMS being offered in India in 14 mg and 7 mg tablets. Teriflunomide is sold by Sanofi-Genzyme under the brand name Aubagio, in the US.

One shall note that, the number of patients suffering from multiple sclerosis in India is 5-20 per one lakh population.

Indian pharma companies catering to the US markets are breathing a sigh of relief. After being adversely affected by import bans and the suspension of new drug approvals from manufacturing facilities in the past, there was a sharp pick-up in new drug approvals in FY17.

Generic Drug Approvals Hit The Roof

With an aim to lower the overall healthcare costs in the country, USFDA approved a record 763 generic drugs for the financial year ending 30th September.

As per Mint Analysis, Indian pharma companies received 295 approvals accounting for 40% of the overall approvals during the year. Even the total filings of abbreviated new drug applications (ANDAs) for generic drugs rose to 1,292 in FY17 from 852 in the previous year.

In such an environment, it makes sense for investors to be selective while buying stocks. Focus on value and the underlying fundamentals of the business. Then, they need not worry about the market.

So, what is key to identifying potential multibagger stocks? How does one pick them at the right time and ride them to their full potential? How many multibaggers do you really need to achieve the big riches that you desire?

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'We Are Looking at a 30% Market Crash'

Research analyst Tanushree Banerjee, recently predicted that we are at the brink of a steep 30% market crash.

And while everyone else in the market is panicking...

She remains calm.

Why?

Because she has used her 13 years of experience to identify 5 Super Safe Stocks that have the potential to not only survive, but thrive in these conditions.

And today is your chance to get access to these stocks.

Click here for full details...
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Most importantly, are there any stocks right now that could turn out to be multibaggers? Click here to know everything that you need to know right now about mutlibagger stocks...

Natco Pharma share price opened the day up by 2.2%.

Moving on to the news from the engineering sector. As per an article in a leading financial daily, State-run power equipment maker BHEL has fully commissioned the 330 MW Kishanganga Hydro-Electric Project in Jammu and Kashmir with the synchronisation of its third unit.

The first two units of the project were commissioned last month.

Developed by state-run hydro power giant NHPC Ltd, the project is located on the tributary of the river Jhelum, in Bandipora district of J&K.

Reportedly, the 3x110 MW Kishanganga project will be able to generate 1,350 Million Units (MU) of clean electricity annually, facilitating reduction of greenhouse emissions.

The scope of the order on BHEL included the execution of the Electro-Mechanical (E&M) package for the project comprising design, manufacture, supply, installation and commissioning of Vertical Shaft Pelton Turbines and matching synchronous Generators, Controls & Monitoring (SCADA) System along with electrical and mechanical auxiliaries.

Further, the company has so far commissioned 33 hydro power sets with a cumulative capacity of 1,477 MW in J&K. BHEL is currently executing hydro projects of over 2,700 MW capacity in the country and 2,940 MW in Bhutan which are under various stages of implementation.

BHEL has so far bagged orders for 500 hydroelectric generating sets cumulatively of various ratings in India and abroad, with a capacity of more than 29,000 Mw. Of these, equipment for around 5,700 Mw capacity were commissioned in overseas projects.

BHEL share price opened the day up by 1.7%.


US-China Trade War, RBI Policy Meet, and Top Cues in Focus Today
Pre-Open

Share markets in India closed on a negative note yesterday. Losses were seen across most sectors with stocks in the consumer durables sector and stocks in the metal sector leading the losses.

At the closing bell yesterday, the BSE Sensex stood lower by 352 points (down 1%) and the NSE Nifty closed down by 117 points (down 1.1%). The BSE Mid Cap index ended the day down 0.9%, while the BSE Small Cap index ended the day down by 1.1%.

Top Stocks in Focus Today

Zensar Technologies share price will be in focus today. The share of the company witnessed buying interest yesterday after the company won a four-year, multi-million dollar contract from the city of San Diego for network services.

From the airlines sector, market participants will be tracking Jet Airways share price. The stock of the company witnessed buying interest yesterday on news that it has entered into an agreement with Boeing to buy 75 B-737 Max Aircraft.

ICICI Securities share price and Mishra Dhatu Nigam share price (MIDHANI) will also be in focus today as both the company made their market debut on the BSE and the NSE yesterday.

From the pharma space, Akzo Nobel share price will be in focus today as the company has informed bourses that its board will meet on April 6 to consider a proposal to buyback its equity shares.

Market participants will be tracking Tata Motors share price today. The stock of the company witnessed buying interest yesterday after it sold 187,321 units in the April 2017-March 2018 period, growing at a rate of 22%. Tata Motors has become the fourth-largest passenger vehicle (PV) maker by dethroning Honda Cars Indian in the FY18.

--- Advertisement ---
'We Are Looking at a 30% Market Crash'

Research analyst Tanushree Banerjee, recently predicted that we are at the brink of a steep 30% market crash.

And while everyone else in the market is panicking…

She remains calm.

Why?

Because she has used her 13 years of experience to identify 5 Super Safe Stocks that have the potential to not only survive, but thrive in these conditions.

And today is your chance to get access to these stocks.

Click here for full details…
------------------------------

US-China Trade War

The ongoing trade war between US and China is showing no signs of stopping, with China imposing fresh tariffs on US goods.

China hit back at the Trump administration's plans to slap tariffs on US$ 50 billion in Chinese goods, retaliating with a list of similar duties on key US imports including soybeans, planes, cars, whiskey and chemicals.

China said it would levy 25% tariffs on imports of 106 US products.

Chinese retaliation for the Trump administration's latest move had been widely expected. Chinese officials had promised a proportional response if the Trump administration went ahead this week with the next step toward broad tariffs on Chinese goods.

The tit-for-tat tariffs are part of a wider clash looming over trade between the world's two biggest economies. Stock markets around the world have taken a hit in recent weeks as Washington and Beijing have escalated their trade dispute.

RBI Policy Decision Out Today

Market participants will be tracking the first bi-monthly RBI monetary policy for the new fiscal 2018-19. The Reserve Bank of India (RBI) will today make public the resolution of the Monetary Policy Committee (MPC) and also declare its decision on key interest rates.

There's little hope of a cut in the key policy rate because of the rising global crude oil prices. Note that the central bank has maintained a status-quo on the key short-term borrowing rate (repo) in its last three policy meets. The benchmark lending rate was reduced by 0.25 percentage points to 6% last August, bringing it to a 6-year low.

The outcome of the meeting is keenly awaited amidst pressure on RBI to cut interest rates in the wake of declining retail inflation and the need to fuel economic growth.