In a surprise move, in the first bi-monthly monetary policy of FY24, RBI kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50%.
How can RBI be so far behind achieving its inflation target of 4% and yet be so comfortable as to pause rate hikes when there’s no clear evidence that inflation is no longer a concern?
As per NSDL data, FPIs bought ₹3,747 crore in the equities so far in April, while they were net sellers in other market-related instruments..FPIs sold ₹1,667 crore in debt, meanwhile, outflows of ₹400 crore and ₹8 crore was recorded in debt-VRR and hybrid instruments.
Broadly, the tone of the market was bullish with midcaps and small-caps outperforming on Thursday after RBI paused repo rate hike in an unexpected move. Sensex and Nifty 50 rallied for the fifth day in a row.