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Key gauges remain in red; RBI cuts repo rate by 25 basis points
Feb-07-2025

Indian equity benchmarks remained in red in morning deals, due to losses in Oil & Gas, FMCG and PSU stocks. Traders remained cautious as exchange data showed Foreign institutional investors (FIIs) offloaded equities worth Rs 3,549.95 crore in the capital markets on a net basis on Thursday. However, losses remain capped as traders took support after the RBI’s Monetary Policy Committee (MPC) made key decisions on February 7, 2025. The MPC unanimously cut the repo rate by 25 basis points to 6.25%, marking the first change in two years, driven by easing inflation and slowing growth. The committee emphasized a neutral stance focused on aligning inflation and supporting economic growth. It has retained FY25 inflation forecast at 4.8% and projected inflation at 4.2% for FY26. It also raised India’s FY26 growth aim to 6.7% from 6.6%. It noted that the CAD for this year is expected to remain well within the sustainable level. On the global front, Asian markets are trading mostly in green as traders awaited US jobs data that will help illuminate the path ahead for interest rates.  

The BSE Sensex is currently trading at 77743.44, down by 314.72 points or 0.40% after trading in a range of 77737.20 and 78356.98. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.83%, while Small cap index was down by 1.25%.

The top gaining sectoral indices on the BSE were Telecom up by 2.15%, TECK up by 0.44%, Consumer Durables up by 0.18% and Metal up by 0.11%, while Oil & Gas down by 1.88%, FMCG down by 1.80%, PSU down by 1.51%, Energy down by 1.44% and Capital Goods down by 1.36% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 5.00%, Tata Steel up by 0.98%, Mahindra & Mahindra up by 0.88%, Zomato up by 0.79% and Ultratech Cement up by 0.71%. On the flip side, ITC down by 2.54%, SBI down by 2.09%, Power Grid Corporation down by 1.88%, Nestle down by 1.49% and Hindustan Unilever down by 1.41% were the top losers.

Meanwhile, the Joint Secretary in the Department of Commerce Vimal Anand has said that the focused product scheme for footwear and leather sectors under the Union Budget 2025, will help to boost domestic manufacturing, credit access, exports and job creation in India. He added the scheme will support areas like design capacity, component manufacturing, and machinery required for production of footwear and products. 

He noted that ‘The Union Budget 2025 has delivered a much-needed boost to the leather and footwear sectors by enhancing credit access, rationalising duties, and maintaining key policy frameworks. The industry is poised for significant growth with the newly introduced special package and export-oriented incentives.’ Further, the full exemption of BCD (basic customs duty) on Wet Blue leather will support domestic value addition and employment, besides the exemption of 20 per cent export duty on crust leather will ease exports by the tanners.

Council for Leather Exports (CLE) Chairman Rajendra Kumar Jalan has said the scheme will enhance production and productivity by attracting investments and will strengthen the component and machinery ecosystem of the sector. About exports he said CLE has also worked out a target of $47 billion by 2030. Of this, $13.7 billion is for the export sector. The total leather export of India in 2024 amounted about $4.6 billion.

The CNX Nifty is currently trading at 23536.60, down by 66.75 points or 0.28% after trading in a range of 23493.60 and 23683.90. There were 16 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 5.14%, Tata Steel up by 1.18%, JSW Steel up by 0.99%, Ultratech Cement up by 0.91% and Mahindra & Mahindra up by 0.78%. On the flip side, ONGC down by 2.97%, ITC down by 2.46%, Bharat Electronics down by 1.81%, Power Grid Corporation down by 1.78% and SBI down by 1.77% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted added 70.62 points or 0.3% to 23,387.22, Hang Seng advanced 319.24 points or 1.51% to 21,210.86, Straits Times rose 16.48 points or 0.43% to 3,846.90 and Shanghai Composite strengthened 43.63 points or 1.32% to 3,314.29.

On the flip side, Nikkei 225 slipped 216.92 points or 0.56% to 38,849.61, Jakarta Composite plunged 151.12 points or 2.2% to 6,724.42 and KOSPI dropped 12.70 points or 0.5% to 2,524.05.
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