Sensex ends 199 points higher, Nifty retains 8,800 ahead of RBI policy

Benchmark indices settled the day at 4-month high as investors bet RBI will cut interest rates in their policy review meet later this week.
 
Most of the 17 economists polled by Business Standard were hesitant to give a clear call on the possible policy outcome. While six economists expected RBI to pause on Wednesday, 11 said the chances of RBI cutting rates by 25 basis points (bps) were a bit on the higher side.
 
Nifty50 ended above it's crucial 8,800 level for the first time since September 19, 2016 led by gain in realty, pharma, FMCG, and banking stocks.

 

The S&P BSE Sensex settled the day at 28,439, up 199 points, while the broader Nifty50 ended at 8,801, up 60 points.
 
The positive sentiment lifted Nifty Midcap and Smallcap indices higher by 1.1%and 0.9% respectively, to their record highs.

"Markets look bit stretched now so it's prudent to book some profits and lighten up before the RBI's monetary policy review. Also, we're now closer to 8,900 hurdle in Nifty so consolidation is more likely in near future. Simply put, we're in uptrend but need to spend some time around current levels before further surge," said Jayant Manglik, President, Retail Distribution, Religare Securities in a note.

 
Sectors and Stocks
 
Sun Pharma, ICICI Bank, Adani Ports and HUL were the top movers on Sensex today while Dr Reddy’s, Cipla and ONGC were the biggest laggards.
 
BSE Realty index (up 1.9%) was the top sectoral gainer, extending gains for the fourth consecutive sessions after finance minister Arun Jaitley accorded infrastructure status to affordable housing in Budget 2017 to encourage investment in the segment and offered tax sops for developers sitting on completed unsold inventories.
 
Banking stocks also rose over 1% with ICICI Bank and Axis Bank rising as much as 3.14% and 1.65%, respectively on rate cut hopes.

 
Lupin gained over 4% during the day after it received final approval from USFDA for its generic drug Triamcinolone Acetonide Cream which provides relief to the inflammatory and pruritic manifestations of corticosteroid responsive dermatoses. The stock ended 0.5% higher.
 
Among the losers, Dr. Reddy's Laboratories Ltd fell as much as 3.14% during intra-day to end 1.4% lower after the company reported a 16% drop in its consolidated net profit for the December quarter.
 
Global Stocks
 
European Markets started the week lower as investors carefully weighed President Donald Trump's policies and focused on corporate earnings. The pan-European Stoxx 600 was 0.32% lower with most sectors trading negative.

 
Asian shares were mostly higher on Monday as Wall Street gathered momentum into a busy week of earnings with more than 100 major companies due to report, while the dollar was again hobbled by a lack of progress on US fiscal stimulus.
 
MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.4%, with Taiwan leading the pack by adding 0.9%.
 
Japan's Nikkei rose 0.2% in the wake of a firmer finish on Wall Street. Japanese Prime Minister Shinzo Abe meets US President Donald Trump on February 10 and 11, with trade and currencies likely to be on the agenda.