Nifty hits 8,800 for the first time since October 5, 2016

In the broader market, Nifty Midcap and Smallcap indices were trading at their record highs

The benchmark indices were trading at their four-month highs  on expectations of a rate cut by Reserve Bank of India (RBI) in its policy meeting on Wednesday. On the global front, firm trade in Asian markets also contributed to the gains. 

At 12:16 am, the S&P BSE Sensex was trading at 28,450, up 208 points, while the broader Nifty50 was ruling at 8,800, up 60 points. 

In the broader market, Nifty Midcap and Smallcap indices were trading at their respective record highs.

Brokerage Angel Broking sees some consolidation in the market this week, but maintains optimistic stance expecting much higher levels quite soon. 

“The immediate level on the upside would now be seen at 8,807- 8,893; whereas, immediate support is placed at 8,672-8,650,” said the brokerage. 

Buzzing stocks

BSE Realty index (up 2.5%) 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. 

BSE Bankex rose over 1% ahead of RBI policy on Wednesday. ICICI Bank, Bank of Baroda, SBI and Axis Bank added anywhere between 1%-3%. 

Among loser, Dr Reddy’s declined 3% in intraday deals after the drug major reported a consolidated net profit of Rs 470 crore in the December quarter, registering a 19% decline from Rs 579 crore in the same period a year ago. 

Earnings today

Over 100 companies are expected to report their quarterly earnings today. The list includes Shemaroo Entertainment, Gujarat Gas, Gujarat State Petronet, Abbott India, Honeywell Automation, Shakti Pumps and Titagarh Wagons, among others.  

RBI policy on Wednesday

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. CLICK HERE FOR THE FULL REPORT

US jobs report 

US job growth surged more than expected in January as construction firms and retailers ramped up hiring, but wages barely rose, handing the Trump administration both a head start and a challenge as it seeks to boost the economy.

Nonfarm payrolls increased by 227,000 jobs, the largest gain in four months, the Labor Department said on Friday. The unemployment rate, however, rose one-tenth of a percentage point to 4.8% and wages increased by only three cents, suggesting that there was still some slack in the labor market.

Global markets
 

Asian shares crept ahead on Monday. MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.3%, with Australia ahead by 0.1%.

Japan's Nikkei rose 0.2%, while China’s Shanghai Composite and Hong Kong’s Hang Seng added 0.5% and 0.7%, respectively.

US stocks climbed on Friday, with the S&P 500 closing just short of a record high, while Dow Jones ended above its crucial 20,000 mark. 

(With inputs from Reuters)