RBI policy, selling in ITC drag Sensex 724 pts, Nifty near 21,700

Stock market highlights on February 8, 2024: The Nifty PSU bank index climbed 2 per cent, while the Nifty Private Bank index fell 2.5 per cent. Individually, Paytm, and ITC crashed up to 10 per cent

3:52 PM

Tech View :: Key levels to watch on Nifty, Bank Nifty after Thursday's selling

Nifty50
The Nifty opened on a positive note however as the day progressed the Nifty drifted lower and closed in the negative down ~212 points. On the daily charts we can observe that the Nifty has witnessed a sharp decline from the resistance zone 22000 – 22050. Despite multiple attempts the Nifty has been unable to surpass the resistance zone. On the downside the 20 day moving average (21694) has been providing support.  The hourly momentum indicator has triggered a negative crossover while the daily is still in buy mode and thus providing divergent signals. This could lead to consolidation from short term perspective. Overall, we expect the consolidation to continue with negative bias. On the downside, the Nifty can drift towards 21500 – 21435 zone where support parameters in the form of 40-day average is placed.

 

Bank Nifty

Bank Nifty witnessed a sharp decline and closed deep in the red. The consolidation of the last three trading sessions has been breached on the downside. We expect the weakness to persist and expect the Bank Nifty to drift towards 44430 – 44000 from short term perspective. On the upside 45500 – 45600 shall act as an immediate hurdle.

Views by: Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

3:51 PM

Comment :: 'Decisive close below 21,600 would again push bulls on back foot'

The fresh decline in the private banking majors and select heavyweights like ITC has again pushed the Nifty to its crucial support zone of short term moving average i.e. 20 DEMA. And, a decisive close below 21,600 would again push the bulls on the back foot. We thus suggest hedging the existing longs and waiting for clarity. 

Views by: Ajit Mishra, SVP - Technical Research, Religare Broking

3:50 PM

Comment :: Why did markets fall after RBI policy?

Though FY25 GDP growth forecast has improved, the RBI remains vigilant on inflation & banking liquidity. The incomplete transmission of the cumulative 250 bps and the inflation ruling above the target level adds uncertainty about the timing of the interest rate reduction. The ripple effect was seen in the government 10yr yield, which inched higher. A large pocket of the market slid into red like FMCG, banks, and auto. FMCG got higher impacted by weak Q3 result and downgrade in volume growth, in the near-term, due to weak rural demand.

Views by: Vinod Nair, Head of Research, Geojit Financial Services.

3:42 PM

Currency check :: Rupee ends 1 paise higher at 82.95/$

3:41 PM

Broader markets :: MidCap index ekes out tepid gains

3:40 PM

NIFTY HEATMAP :: SBI, Power Grid, BPCL hold gains in a weak session

3:38 PM

CLOSING BELL :: Nifty ends near 21,700

3:37 PM

CLOSING BELL :: Sensex drops over 700 pts amid 'conservative' RBI policy

3:28 PM

Q3 result :: NCC posts net profit of Rs 220.7 cr vs Rs 157.7 cr YoY

>> Revenue up 34.5% at Rs 5,260 crore

>> Ebitda up 34.3% at Rs 505.5 crore
 

>> Margin flat at 9.6% YoY
 

3:20 PM

ITC hits over 8-month low, slips 5% as BAT mulls partial stake sale

Tadeu Marroco, Chief Executive of BAT, while announcing December quarter results, said that the company continues to pursue all opportunities to enhance balance sheet flexibility and, as part of this, the company regularly reviews its stake in ITC. READ MORE

3:07 PM

Equity mutual fund inflows jump to nearly two-year high in Jan: Amfi

Inflows into India's equity mutual funds rose to a nearly two-year high in January, led by sustained interest in small-caps, data from the Association of Mutual Funds in India (AMFI) showed on Thursday. READ MORE

3:00 PM

Earnings ALERT:: Thermax Q3 net jumps 88%; stock down 2%

Thermax today posted a 87.5 per cent growth in Q3 consolidated net at Rs 237.06 crore for the quarter ended December 2023 when compared with Rs 126.40 crore in the year ago period. Total income grew by 13.4 per cent YoY to Rs 2,324.36 crore.

2:50 PM

ITC hits over 8-month low, slips 5% as BAT mulls partial stake sale

Shares of ITC hit an eight-month low at Rs 411.85 as they dipped 5 per cent on the BSE in Thursday's intraday trade. amid heavy volumes, after the company's largest shareholder, British American Tobacco (BAT) said it could sell some of its stake in the company. READ MORE

2:38 PM

Earnings ALERT:: Wonderla Holidays Q3 net slips 4%; stock falls 4%

Wonderla Holidays today reported a 4 per cent decline in Q3 net at Rs 37.36 crore for the quarter ended December 2023 as against Rs 38.94 crore in the year ago period. Total income, however, was up 10 per cent YoY at Rs 129.52 crore.

2:28 PM

Market check:: ITC, Nestle tumble up to 4%; Power Grid holds 5% gain

2:18 PM

IPO-bound travel distribution platform TBO Tek seeks to expand in West

TBO Tek, a travel distribution platform, has set its eyes on the Europe and North American markets for expanding its reach. The company, which filed its draft red herring prospectus (DRHP) to raise Rs 400 crore in fresh capital in November, derives about 15 per cent of its gross transaction value (GTV) from the two regions. About 60 per cent of its GTV comes from India, down from more 80 per cent in FY21. READ MORE

2:07 PM

RBI to introduce offline digital rupee transactions soon: Governor Das

RBI launched a pilot of the retail CBDC in December 2022 and achieved the target of having 1 million transactions a day in December 2023. READ MORE

1:57 PM

Shares Oil marketing companies extend rally; BPCL, IOC jump 4%

1:46 PM

HDFC Bank, Axis Bank: Why banks have taken a beating post the RBI policy?

A status quo on interest rate meant lenders may have to either hold or raise rates further in a bid to mobilise higher deposits. READ MORE

1:36 PM

COMMENT:: Contituation of the stance highlights RBI's vigilance in ensuring long-term financial stability

The Reserve Bank of India's decision to maintain the repo rate at 6.5 percent, as announced by Governor Shaktikanta Das, reflects a cautious yet steady approach towards India's economic management.

 

This sixth consecutive hold, following the Interim Budget announcement, underscores the MPC's commitment to carefully navigating the balance between fostering economic growth and containing inflationary pressures.

 

The continuation of the withdrawal from the accommodative stance highlights the RBI's vigilance in ensuring long-term financial stability.

 

- Suman Bannerjee, CIO, Hedonova, a Paris based Hedge fund, investing in alternative assets and P2P lending

1:24 PM

Paytm crisis: We give enough time to comply with rules, says RBI Governor

Das said, 'The RBI is and will continue to encourage and support innovation and technology in the financial sector'. READ MORE

1:14 PM

LIC surges 10%; storms into top-5 most-valued club as m-cap tops Rs 7 trn

LIC with a market cap of Rs 7.24 trillion overtook Infosys to break into the top-5 club; Stock has gained 38 per cent in the last one month. READ MORE

 

1:05 PM

COMMENT:: Fixed income markets would for now follow a buy on dip mind-set

The RBI-MPC kept the key policy rates unchanged. The MPC also retained the stance of withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth.

 

The RBI Governor continued to sound cautious with an intention to achieve CPI inflation at 4% on a sustainable basis.

 

The uncertainties on account of unanticipated shocks emerging from food and supply chain disruptions, geopolitical tensions, volatility in international financial markets and geo-economics fragmentation may pose risk to both growth as well as inflation projections

We feel fixed income markets would for now follow a buy on dip mind-set reacting to demand-supply dynamics, liquidity as well as flows while remaining watchful on global developments.

 

- Gurvinder Singh Wasan, CFA, Senior Fund Manager and Credit Analyst – Debt, JM Financial Asset Management Ltd.

 

1:01 PM

RBI Presser LIVE: Action on Payments Bank unit to not impact Paytm app

12:48 PM

RBI Presser LIVE: Issue of compliance with Paytm is on various parameters

Regulations are robust, its an issue of compliance on Paytm with various parameters, says Das when asked if the action has been taken due to KYC non-compliance.

12:40 PM

RBI Presser LIVE: Banks will carry due diligence if partnership with Paytm has to happen

12:27 PM

RBI Presser LIVE: To issue FAQ next week on questions around Paytm action

We continue to support innovation in fintech, says Das.  

12:26 PM

RBI Presser LIVE: Restrictive actions are proportionate to the gravity of situation: Das on Paytm action

Our emphasis is always on bilateral engagement with a focus on nudging an entity to comply. 

When constructive engagement does not work, or when they dont take required action, we go for imposing restrcitions, which are proportionate to the gravity of the siutaion, says Das on Paytm action. 

12:21 PM

RBI Presser LIVE: Not worried about the fintech sector in wake of a specific case with Paytm, says Das

12:19 PM

Paytm extends day's decline, now down 9%