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

Closing Bell on February 8: Benchmark indices took a sharp knock on the bourses on Thursday after the Reserve Bank of India's decision to keep repo rate steady with no guidance on rate cut, put pressure on private bank stocks. 

That apart, weakness in FMCG stocks, including ITC, and Nestle India, along with the weekly F&O expiry added further pressure on the indices. 

The S&P BSE Sensex index tumbled 724 points, or 1 per cent, to end at 71,428 levels. The Nifty50, meanwhile, tested the 21,700 level as it settled at 21,718, down 213 points or 0.97 per cent.

The indices hit intraday lows of 71,230.62 and 21,665.30, respectively.

In the broader markets, the BSE MidCap index eked out gains of 0.08 per cent, while the BSE SmallCap index fell 0.44 per cent.

Among sectors, the Nifty PSU Bank, and Media indices ended 2 per cent higher, followed by 0.22 per cent gain in the Nifty IT index. The Nifty Private Bank index cracked 2.5 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