At 11.45 am on Thursday, the core equity indices i.e., Sensex and Nifty 50 were trading higher by 1.30 per cent each after reaching their day’s high of 1.57 per cent. This surge in their levels comes after Federal Reserve Chairman finally hiked the funds' rates by 50 basis points on Wednesday.   

Fed Chairman also made clear that it is not planning to hike the rates by 75 basis points in the upcoming meeting in June.   

The RBI surprised the market yesterday by raising key policy rates by 40 basis points. What effect would this have on debt fund investors? Let us investigate.

After Reserve Bank of India (RBI) lifted the repo rate by 40 basis points (bps) to 4.40 per cent at an off-cycle meeting on Wednesday, the Indian markets opened on a positive note on Thursday. The domestic equities saw widespread buying with the bank, auto, and IT sectors leading the market. The sole laggard in the early session was the consumer durables sector.

In FY22, the company has achieved a consolidated turnover of Rs 284.4 crore with a profit before tax of Rs 28 crore, exhibiting growth of 97 per cent on a YoY basis.

The company’s reliance on NBFC funding is a mere 5 per cent of the total borrowings and has significantly reduced its reliance on the higher cost of funding. Around 63 per cent of its borrowings are from banks. 

In a surprise move on Wednesday, RBI Governor announced a 40 bps hike in the repo rate to 4.4 per cent, which sent shockwaves across the stock and bond markets.

Activity in the F&O market for the weekly expiry tomorrow shows 16500 to act as support now.

ONGC Ltd, Gujarat Ambuja Ltd and Rain Industries Limited are today’s market movers.

On Wednesday, the domestic equity barometers fell and ended near the day's low. Nifty fell below 16,700 points. The stocks have dropped across the board. Following Reserve Bank of India's surprise rate hike announcement, the bourses witnessed a significant sell-off today (RBI). Monetary Policy Committee (MPC) agreed unanimously to raise the policy repo rate by 40 basis points to 4.40 per cent. The cash reserve ratio (CRR) was also hiked by 50 basis points to 4.50 per cent by the central bank. "CRR hike might suck liquidity out of the banking industry to the tune of Rs 83,711.55 crore," the Governor stated. 

BSE Smallcap index plunged 2.11 per cent to close the session at 27,762.59.