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• Indian market performance remained subdued in March while global markets saw continued recovery despite banking industry related issues in US and EU and Fed repo rate hike of 25 bps
• S&P BSE Sensex & NSE Nifty indices were flat for the month while broader markets BSE Midcap / BSE Small cap indices were down 0.4 per cent / 1.4 per cent, respectively
• In a reversal of last month’s performance Power was the best performing sector

Equity Market Review March 2023

• The month of March saw significant developments in the global financial sector with the collapse of the Silicon Valley Bank in the United States followed by the Swiss regulator facilitating a takeover of Credit Suisse by UBS, as the former continued to face financial stress
• CPI inflation remained above the higher end of the target band at 6.44 per cent in Feb (vs 6.52 per cent in Jan), with cereal prices remaining elevated
• The G-Sec borrowing calendar for H1 FY2024 was released with a gross borrowing number of INR 8.88 Lakh Crs

Debt Market Review - March 2023

• The MPC unanimously decided to keep the policy Repo Rate unchanged at 6.50 per cent
• Consequently, the Standing Deposit Facility (SDF) rate remains unchanged at 6.25 per cent and the Marginal Standing Facility (MSF) rate and Bank Rate at 6.75 per cent
• The MPC also decided by a majority of 5 out of 6 members to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth. Professor Jayanth Varma voted against this part of the resolution

RBI Policy - April 2023

In a surprise move last week, Lok Sabha passed key amendments to the Finance Bill 2023. One of the amendments proposed was to remove the Long Term Capital Gains (LTCG) along with indexation benefit for non-equity mutual funds including debt mutual funds.

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