Markets Today: RBI MPC outcome; FIIs; M&M, ITC Q3; Chamunda IPO allotment

Stock Markets Today, February 7, 2025: The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) outcome, foreign institutional investors (FIIs) and global cues are likely to influence benchmark indices on Friday, February 7, 2025. 

 

The Reserve Bank of India may cut the benchmark repo rate by 25 basis points to 6.25 per cent later in the day.  RBI Monetary Policy Meeting LIVE

 

Meanwhile, at 6:33 AM, GIFT Nifty Futures were trading merely 6 points higher at 23,689, signaling a flat to positive start for Indian bourses.

 

In the previous session, Sensex shed 213.12 points or 0.27 per cent to settle at 78,058.16. Nifty50 ended 92.95 points or 0.39 per cent lower at 23,603.35.

 

 

Also Read: Hedging, cost cut: India Inc takes cover as rupee plunges against dollar

 

Domestic cues

 

Q3 results

 

M&M, NHPC, Mazagon Dock, Fortis Healthcare and Wockhardt among several others, will announce their Q3 results today. Investors will also react to earnings from Airtel, Hero MotoCorp, ITC, Britannia etc. 

Also Read: Q3 results review: Low core income, slippages hit banks' profitability

 

FII, DII

 

FIIs sold shares worth Rs 3,549.95 crore, while DIIs bought shares worth Rs 2,721.66 crore, on February 6.

 

IPO market

 

Eleganz Interiors IPO (SME) will open for subscription, while Solarium Green IPO (SME) and Readymix Construction IPO (SME) will enter Day 2.

 

Also Read: Companies trim IPO sizes to ride market roller coaster, say experts

 

Amwill Healthcare IPO (SME) and Ken Enterprises IPO (SME) will enter Day 3, while Chamunda Electricals IPO (SME) will see its allotment.

 

Other triggers

 

Indian government bond yields ended slightly lower on Thursday, with the benchmark 10-year yield at 6.6562 per cent, compared to 6.6616 per cent on Wednesday, ahead of the central bank’s widely expected interest rate cut.

 

Major state-owned entities, including Sidbi, REC Ltd, Hudco, and IIFCL, are aiming to raise up to Rs 14,000 crore through domestic bonds.

 

Apart from that, the Union Cabinet is likely to approve the new income-tax bill on Friday, which may be tabled in Parliament next week. Finance Secretary Tuhin Kanta Pandey stated that the law will be free from long sentences, provisos, or explanations.

 

India's financial sector saw the highest foreign equity outflows in January, accounting for nearly a third of total sales, according to NSDL data.

 

Additionally, the Employees' Provident Fund Organisation (EPFO) processed over 50.8 million claims worth Rs 2.1 trillion, surpassing FY24's 44.5 million claims worth Rs 1.9 trillion. 

 

Commodity market

 

Gold prices declined on Thursday amid a strengthening US dollar. As of the latest update, Spot Gold was down 0.35 per cent at $2,860.03, while US gold futures were priced at $2,883.92.

 

Oil prices ended lower on Thursday following US President Donald Trump’s repeated commitment to increase US oil production, which unsettled traders after the country reported a larger-than-expected increase in crude stockpiles. Brent crude futures dropped 0.4 per cent to $74.29 a barrel, while US WTI crude fell 0.6 per cent to $70.61. Trump reaffirmed his pledge to boost US oil production to help reduce commodity prices, claiming that the country would produce more oil than ever before.

 

Global cues

 

Asia-Pacific markets opened lower on Friday as investors awaited India’s interest rate decision and evaluated Japan’s household spending data. ASX 200 was trading flat with a positive bias, Nikkei dropped 0.29 per cent, and the Topix traded 0.28 per cent lower. The Kospi was down 0.14 per cent.

 

Japan's household spending in December saw a 2.7 per cent increase Y-o-Y in real terms, surpassing Reuters' expectations of a 0.2 per cent rise. 

 

In the US, the S&P 500 rose for the third consecutive session on Thursday, adding 0.36 per cent. The Nasdaq rose 0.51 per cent, while the Dow Jones lost 0.28 per cent.

 

Wall Street is now awaiting the release of the January unemployment rate and Non-farm payrolls data, which is expected later in the day.

 

Here's how analysts are assessing today's (February 7) trading session:

 

Shrikant Chouhan, head of equity research at Kotak Securities

 

We are of the view that if the market manages to trade above 23,500/77800, it could bounce back to 23,750-23,800/78500-78600. On the flip side, trading below 23,500/77800 would make the uptrend vulnerable. Below this level, traders may prefer to exit from their long positions.

 

Rupak De, senior technical analyst at LKP Securities

 

23,500 may continue to act as a significant support level, but a decisive fall below it could shake the confidence of the bulls. On the higher end, resistance is placed at 23,800 and 24,050.