As per provisional closing data, the S&P BSE Sensex tumbled 723.57 points or 1% to 71,428.43. The Nifty 50 index declined 212.55 points or 0.97% to 21,717.95.
In the broader market, the S&P BSE Mid-Cap index rose 0.08% and the S&P BSE Small-Cap index shed 0.44%.
The market breadth was negative. On the BSE, 1,666 shares rose and 2,176 shares fell. A total of 103 shares were unchanged.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 2.07% to 15.83.
RBI MPC Outcome :
The Reserve Bank of Indias (RBI) Monetary Policy Committee (MPC) on Thursday decided to keep its key policy rates unchanged.
It has decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50%. Consequently, the standing deposit facility (SDF) rate remains unchanged at 6.25% and the marginal standing facility (MSF) rate and the Bank Rate at 6.75%.
In its last bi-monthly monetary policy of FY24, the RBI Governor Shaktikanta Das-headed six-member MPC maintained the repo rate at 6.5% for the fifth consecutive time.
Global economy presenting a mixed picture, odds of a soft landing has increased globally. Emergence of new flash points imparts uncertainty to global macro landscape, the RBI Governor said.
MPC will carefully monitor generalisation of food price pressures which can fritter away the gains in easing of core inflation. Monetary policy must continue to be actively disinflationary to align inflation to 4 percent target on a durable basis. MPC will remain resolute in this commitment. Amidst current headwinds, elevated level of public debt is raising issues of macroeconomic stability in countries, including advanced ones, Governor Shaktikanta Das said.
These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.
The real GDP growth for 2023-24 is projected at 7.3%, higher than previous forecast of 7%.
The CPI inflation for 2023-24 is projected at 5.4%, in line with the previous forecast.
Five out of six members of the MPC voted to keep the policy repo rate unchanged. One member, Prof. Jayanth R. Varma, voted to reduce the policy repo rate by 25 basis points.
The minutes of the MPCs meeting will be published on 22 February 2024. The next meeting of the MPC is scheduled during 3 to 5 April 2024.
IPO Update:
The IPO of Capital Small Finance Bank received bids for 89,76,288 shares as against 81,47,373 shares on offer, according to stock exchange data at 15:30 IST on Thursday (8 February 2024). The issue was subscribed 1.10 times.
The issue opened for bidding on Wednesday (7 February 2024) and it will close on Friday (9 February 2024). The price band of the IPO is fixed at Rs 445-468 per share. An investor can bid for a minimum of 32 equity shares and in multiples thereof.
The IPO of Jana Small Finance Bank received bids for 1,50,90,660 shares as against 1,01,16,284 shares on offer, according to stock exchange data at 15:30 IST on Thursday (8 February 2024). The issue was subscribed 1.49 times.
The issue opened for bidding on Wednesday (7 February 2024) and it will close on Friday (9 February 2024). The price band of the IPO is fixed at Rs 393-414 per share. An investor can bid for a minimum of 36 equity shares and in multiples thereof.
The IPO of Rashi Peripherals received bids for 3,90,97,584 shares as against 1,42,37,289 shares on offer, according to stock exchange data at 15:30 IST on Thursday (8 February 2024). The issue was subscribed 2.75 times.
The issue opened for bidding on Wednesday (7 February 2024) and it will close on Friday (9 February 2024). The price band of the IPO is fixed at Rs 295-311 per share. An investor can bid for a minimum of 48 equity shares and in multiples thereof.
Stocks in Spotlight:
Power Grid Corporation of India rallied 3.08% after the company's consolidated net profit rose 10.50% to Rs 4,028.25 crore in Q3 FY24 as compared with Rs 3,645.29 crore posted in corresponding quarter last year. Revenue from operations rose 2.56% YoY to Rs 11,549.79 crore in the quarter ended 31 December 2023.
Tata Consultancy Services (TCS) added 1.29% after the company said that it has entered into a strategic partnership with Enento Group for transforming the latters IT applications, cloud, digital workplace, and IT security for resilient business operations.
Tata Consumer Products declined 2.39% after the company reported 20.72% declined in consolidated net profit to Rs 278.87 crore in Q3 FY24 as against Rs 351.76 crore recorded in Q3 FY23. Revenue from operations rose 9.48% to Rs 3,803.92 crore in Q3 FY24 from Rs 3,474.55 crore recorded in the corresponding quarter previous year.
Lupin added 1.10% after the company's consolidated net profit jumped 292.6% to Rs 618.7 crore in Q3 FY24 as compared with Rs 157.6 crore posted in corresponding quarter last year. Revenue from operations rose 20.2% YoY to Rs 5197.4 crore in the quarter ended 31 December 2023 from Rs 4322.2 crore in the quarter ended 31 December 2023.
Parag Milk Foods (PMFL) jumped 6.15% after the company reported a consolidated net profit of Rs 34.16 crore in Q3 FY24, which is nearly four times as compared with the PAT of Rs 9.26 crore recorded in Q3 FY23. Revenue during the quarter rose by 8.8% YoY to Rs 800.84 crore.
Cummins India soared 7.79% after the companys standalone net profit grew 26.32% to Rs 454.92 crore during Q3 FY24 as compared with Rs 360.14 crore posted in same period a year ago Revenue from operations increased 16.68% YoY to Rs 2,501.81 crore in the December 2023 quarter.
Sobha declined 2.88% after the real estate developers consolidated net profit dropped 52.58% to Rs 15.08 crore in Q3 FY24 as against Rs 31.80 crore posted in Q3 FY23. Revenue from operations fell 21.10% to Rs 684.93 crore in Q3 FY24 from Rs 868.16 crore recorded in the corresponding quarter previous year.
Page Industries added 1.28% after the company reported 23.13% increase in net profit to Rs 152.35 crore on 2.4% rise in revenue from operations to Rs 1,228.77 crore in Q3 FY24 over Q3 FY23.
Global Markets:
European stocks were advanced while Asian stocks ended mixed on Thursday.
China's consumer prices fell for a fourth consecutive month in January while factory-gate prices declined at a slower pace, the National Bureau of Statistics data showed on Thursday. The country's consumer price index, a main gauge of inflation, dropped by 0.8% year-on-year in January, the NBS said, after a 0.3% decline in December. China's producer price index, which gauges factory-gate prices, dropped by 2.5% from a year ago in January, following a 2.7% fall in December, the NBS said.
US stocks advanced on Wednesday as strong earnings offset jitters related to US regional banks and China's markets.
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