Realty shares tumbled after advancing in the past trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, fell 348.27 points or 0.45% to 73,893.86. The Nifty 50 index lost 125.95 points or 0.56% to 22,409.90.

The broader market underperformed the frontline indices, the S&P BSE Mid-Cap index slipped 1.54% and the S&P BSE Small-Cap index declined 1.66%.

The market breadth was weak. On the BSE, 1,048 shares rose and 2,522 shares fell. A total of 179 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, advanced 2.15% to 20.88.

RBI Monetary Policy Meeting Outcome:

The Reserve Bank of India (RBI) monetary policy committee (MPC) has voted to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points with immediate effect.

The Monetary Policy Committee (MPC) held its 54th meeting from April 7 to 9, 2025 under the chairmanship of Sanjay Malhotra, Governor, Reserve Bank of India.

After assessing the current and evolving macroeconomic situation, the MPC unanimously voted to reduce the policy repo rate by 25 basis points to 6% with immediate effect.

Consequently, the standing deposit facility (SDF) rate under the liquidity adjustment facility (LAF) shall stand adjusted to 5.75% and the marginal standing facility (MSF) rate and the bank rate to 6.25%.

This decision is in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.

MPC also decided to change the stance from neutral to accommodative. However, it noted that uncertainties remain high in the wake of the recent spurt in global volatility. Hence, the rapidly evolving situation requires continuous monitoring and assessment of the economic outlook.

On the domestic front, the RBI slightly lowered its GDP growth forecast for FY26 to 6.5%, down from 6.7% in its previous outlook. In Q1 it is projected at 6.5%; Q2 at 6.7%; Q3 at 6.6%; and Q4 at 6.3%. The risks are evenly balanced.

On inflation, the RBI appears more optimistic. It now projects CPI inflation for FY26 at 4%, down from the earlier 4.2%. Here is the quarterly split: Q1 at 3.6%; Q2 at 3.9%; Q3 at 3.8%; and Q4 at 4.4%. The risks are evenly balanced.

The MPC noted that inflation is currently below the target, supported by a sharp fall in food inflation. Moreover, there is a decisive improvement in the inflation outlook. As per projections, there is now a greater confidence of a durable alignment of headline inflation with the target of 4% over a 12-month horizon.

The minutes of the MPC's meeting will be published on April 23, 2025. The next meeting of the MPC is scheduled from June 4 to 6, 2025.

Economy:

In India, growth is projected to accelerate to 6.7% in fiscal year (FY) 2025 and 6.8% in FY2026, according to the latest forecast by the Asian Development Bank (ADB). Growth in the sub-region is expected to rise from 5.8% in 2024 to 6.0% in 2025 and 6.2% in 2026.

Inflation in India is projected to moderate to 4.3% in FY2025 and 4.0% in FY2026, supported by easing food and global oil prices.

Buzzing Index:

The Nifty Realty index dropped 2.45% to 775.95. The index jumped 2.47% in the past trading sessions.

Phoenix Mills (down 5.44%), Anant Raj (down 5.11%), Oberoi Realty (down 3.61%), Godrej Properties (down 2.38%), Sobha (down 2.31%), DLF (down 2.19%), Macrotech Developers (down 2.14%), Brigade Enterprises (down 2.13%), Prestige Estates Projects (down 1.33%) and Raymond (down 1.26%) declined.

Stocks in Spotlight:

NTPC Green Energy slipped 1.04%. The company said that it has partnered with Mahatma Phule Renewable Energy and Infrastructure Technology to form NTPC-MAHAPREIT Green Energy.

Senco Gold hit an upper circuit of 5% after the company's standalone revenue jumped 19.1% to over Rs 1,300 crore in Q4 FY25, driven by robust wedding season.

Garden Reach Shipbuilders & Engineers declined 2.50%. The company said that it has received a letter of award (LoA) worth Rs 589.98 crore from the Govt of India for the construction and delivery of two coastal research vessels for the Geological Survey of India.

Global Markets:

Dow Jones futures are down 900 points, indicating a drop in US stocks today.

Most Asian stocks declined as U.S. President Donald Trump geared up to slap a jaw-dropping 104% tariff on Chinese goods. Oil prices took the hit too, tumbling to their lowest levels in four years as fears of a global recession tightened their grip on financial markets.

Late Tuesday, Washington confirmed that the tariff hike would take effect just after the stroke of midnight on Wednesday. The offshore yuan responded by hitting a record low of 7.4287 per U.S. dollar overnight.

Trump accused China of currency manipulation in a late-night press appearance but added that he still believed a deal would be struck eventually.

Analysts are now sounding the alarm bells, warning that this tariff escalation could tip the global economy into a full-blown recession.

Over in the U.S., the markets had a rough session. The Dow Jones Industrial Average fell 0.84%, weighed down by big names like Apple, which faces surging costs from the new China tariffs. The Nasdaq nosedived 2.15%, while the S&P 500 shed 1.57%, narrowly dodging official bear market territory but still ending below the symbolic 5,000 mark for the first time since April 2024.

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