RBI decision on interest rate will be announced today: Daily Market Update - 8 Feb 2024 | Globe Capital Market LTD.
RBI decision on interest rate will be announced today: Daily Market Update – 8 Feb 2024

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) held a three-day meeting after the interim budget for the first policy decision of the calendar year 2024 and the last one of the financial year 2024. It is widely anticipated that the committee will maintain the repo rate at the current level of 6.5 percent. The decision will aim to support the objective of achieving a consumer price-based inflation (CPI) target of 4 percent.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled higher in range 0.5% to 1%.
  • European equity markets ended lower in range 0.36% to 0.69%.
  • Majority of Asian markets are trading in green.
  • GIFT Nifty is up by 50 points, Nifty futures are likely to open around 22075 levels (as on 8:30AM).


News highlights from across the globe

  • Most of the Asian markets are trading higher in early trading on Thursday, tracking overnight gains on Wall Street.
  • Investors await inflation data from China, and will monitor outcome of the Reserve Bank of India’s policy meeting, due later today.
  • A rally in tech mega caps drove stocks higher, with the S&P 500 approaching its 5,000 milestone. U.S. bonds drifted before a record $42 billion sale of 10-year Treasury bonds.


Important news updates from the domestic front

  • Lupin Q3 FY24 (Consolidated, YoY) – Revenue up 20.24% at Rs 5,197.41 crore vs Rs 4,322 crore. Ebitda up 94.85% at Rs 1,037.94 crore vs Rs 532.67 crore. Margin expands 764 bps to 19.97% vs 12.32%. Net profit up 299.5% at Rs 613.12 crore vs Rs 153.47 crore.
  • Power Grid Corp Q3 FY24 (Consolidated, YoY) – Revenue up 2.55% at Rs 11,549.8 crore vs Rs 11,261.8 crore. Ebitda up 3.22% at Rs 10,212.9 crore vs Rs 9,893.5 crore. Margin expands 57 bps to 88.42% vs 87.85%. Net profit up 10.5% at Rs 4,028.3 crore vs Rs 3,645.3 crore.
  • Manappuram Finance Q3 FY24 (Consolidated, YoY) – Total income up 34.1% at Rs 2,326.7 crore vs Rs 1,734.5 crore. Net profit up 46.2% at Rs 575.3 crore vs Rs 393.5 crore.
  • Rate-sensitive stocks: The RBI will announce the decision of its Monetary Policy Committee meeting on Thursday. Banking and finance, auto, housing and real estate stocks will be in focus.
  • Bharat Petroleum Corps joint venture, Petronet LNG, executed a long-term LNG sale and purchase agreement with Qatar Energy for the purchase of approximately 7.5 MMTPA of liquified natural gas on a long-term basis.
  • Zomato intimated the liquidation of two step-down subsidiaries in Vietnam and the Czech Republic.
  • Piramal Pharma: The U.S. FDA conducted a pre-approval inspection of the company’s U.S.-based facility from Jan. 29 to Feb. 6 and found three observations.
  • Mangalore Chemicals & Fertilizers Ltd: The company’s board has approved merger with the Paradeep Phosphate Ltd.
  • Bajaj Alliance reported a total new business premium of Rs 951 crore in January and a gross direct premium of Rs 1,975 crore.


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on the higher side but failed to hold at higher levels and settled on a flat note at 21930 levels after lackluster trading session ahead of RBI monetary policy outcome on interest rates.

Broader markets outperformed the benchmark as Midcap & Small cap were up 0.49% & 0.71% respectively against flat closing of the frontline index.

All the sectoral indices, barring Nifty IT, tracked at NSE settled in green. Among them, Nifty PSU bank was at the top of the tally, gained nearly 3% followed by Nifty Realty and Media index that settled higher, up 1.85% and 1.20% respectively.

Technically, Nifty index is well placed on multiple time frames. Going ahead, we suggest traders to maintain buy on dips trading strategy till it is trading above 21700 levels on closing basis.


Derivatives Overview & Outlook

Yesterday, no major changes was in all three major index futures on price front, whereas on open interest front Nifty and Banknifty futures open interest increased by 0.7 and 6% respectively while Finnifty future open interest decreased by 4.3%.

On the sectoral front, long buildup was observed in Realty, Banking, FMCG and Textile stocks, whereas short covering was seen in Cement stocks.

On the options front, call writing was seen at multiple strikes and maximum positions are at 21900 PE  and 22300 CE closely followed by 22000 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1691 Cr in the cash segment, sold stocks futures and index futures worth Rs 4145 Cr and Rs 1253 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 328 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22150-22240; Supports 21900-21770

Banknifty – Resistances 46400-46750; Supports 45700-45370

Finnifty – Resistances 20670-20780; Supports 20400-20250






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