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Nifty firm above 16,250; Future Group stocks tumble

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Capital Market
Last Updated : Aug 06 2021 | 2:50 PM IST
Key indices traded in a narrow range with tiny losses in mid afternoon trade. The Nifty index held firm above 16,250 mark. The Reserve Bank of India kept repo rate unchanged at 4%.

At 14:24 IST, the barometer index, the S&P BSE Sensex, dropped 154.46 points or 0.28% at 54,338.24. The Nifty 50 index fell 29.8 points or 0.18% at 16,264.75.

Broader markets outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.35% while the S&P BSE Small-Cap index gained 0.34%.

Buyers outnumbered the sellers. On the BSE, 1,802 shares rose and 1,349 shares fell. A total of 118 shares were unchanged.

Economy:

The Reserve Bank of India (RBI) kept the policy repo rate unchanged at 4% while maintaining its accommodative stance after the conclusion of the Monetary Policy Committee (MPC) meeting today, 6 August 2021.

RBI's MPC began its bi-monthly monetary policy deliberations on Wednesday, 4 August 2021. Following the meet, RBI on Friday (6 August 2021) kept the benchmark interest rate unchanged amid COVID-19 uncertainty. Repo rate (lending rate) will continue at 4% and reverse repo rate (RBI's borrowing rate) at 3.35%.

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MPC sees CPI inflation at 5.7% in 2021-22 as against 5.1% projected earlier. The CPI inflation is expected to be 5.9% in Q2 FY22, 5.3% in Q3 FY22, 5.8% in Q4 FY22. The CPI inflation is projected to be at 5.1% in Q1 FY23. GDP growth is projected at 9.5% in Financial Year 2021-22.

Buzzing Index:

The Nifty Metal index gained 0.59% to 5,868.9, rising for second trading session. The metal index added nearly 2% in two days.

Tata Steel (down 0.6%), Jindal Steel & Power (down 0.48%), Steel Authority of India (down 0.45%), Hindustan Zinc (down 0.33%) and JSW Steel (down 0.29%) were top gainers in metal space.

Supreme Court rules in favour of Amazon:

Shares of RIL and Future Group companies tumbled on Friday after the Supreme Court reportedly upheld the Singapore-based emergency arbitrator's award which stalled the proposed deal between Future Retail and Reliance Group.

Future Enterprises (down 10%), Future Lifestyle Fashions (down 10%), Future Retail (down 10%), Future Supply Chain Solutions (down 10%), Future Consumer (down 8.82%) and Future Market Networks (down 5%) declined.

Meanwhile, shares of Reliance Industries slipped 1.92% to Rs 2092.25 on BSE.

According to media reports, the Supreme Court of India on Friday allowed the appeal filed by the firm against a Delhi High Court order staying attachment of properties of Future Group companies and Kishore Biyani in relation to the Rs 24,713-crore Future-Reliance deal. The Bench of Justices Rohinton Fali Nariman and BR Gavai reportedly held that the order of an emergency arbitrator is enforceable in India, under Section 17(2) of the Arbitration Act.

As per media reports, a division bench of the Delhi High Court had stayed an order passed by the single judge. They had reportedly directed the attachment of properties of Future Group companies and Kishore Biyani in relation to the Future-Reliance deal. The single judge order of the high court had upheld the award of an emergency arbitrator, directed attachment of the properties and restrained Future Retail Limited from going ahead with the Rs 24,713 crore merger with Reliance Retail, media reports said.

Numbers to Track:

In the foreign exchange market, the partially convertible rupee was unchanged at 74.17.

MCX Gold futures for 5 August 2021 settlement fell 0.18% to Rs 47,515.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.1% to 92.343.

The yield on 10-year benchmark federal paper rose to 6.241% from its previous close of 6.207%.

In the commodities market, Brent crude for October 2021 settlement rose 31 cents or 0.43% to $71.60 a barrel.

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First Published: Aug 06 2021 | 2:25 PM IST

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