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Indian equity indices extend losses in late trade
Feb-07-2025

Indian equity markets extended their losses in last leg of trade as traders remained concerned about the economic growth and uncertainty over US tariff decision. Moderate cuts by Reserve Bank of India (RBI) in repo rate too failed to cheer markets. Monetary Policy Committee reduced the repo rate by 25 basis points to 6.25%, while retained inflation forecast of FY25 at 4.8% and projected inflation at 4.2% for FY26. This marked the first rate change in two years, driven by easing inflation and slowing economic growth. On global front, Asian and European market remained mixed as traders seemed cautious and reluctant to make significant moves ahead of the release of the closely watched monthly US jobs report later in the day for cues on the outlook for interest rates. They also await US President Donald Trump's next move on trade curbs ahead of China's tariff deadline next week.

The BSE Sensex is currently trading at 77,521.09, down by 537.07 points or 0.69% after trading in a range of 77475.74 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 down by 0.15%, while Small cap index was down by 0.94%.

The top gaining sectoral indices on the BSE were Telecom up by 2.08%, Metal up by 2.03%, Consumer Durables up by 1.02%, Basic Materials up by 0.57% and Auto up by 0.23%, while Oil & Gas down by 1.51%, FMCG down by 1.48%, Energy down by 1.27%, PSU down by 1.01%, Capital Goods down by 1.00% were the few losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 3.51%, Bharti Airtel up by 3.18%, Zomato up by 1.81%, Indusind Bank up by 1.19% and Ultratech Cement up by 1.15%. On the flip side, ITC down by 2.81%, SBI down by 2.34%, Adani Ports down by 2.09%, TCS down by 1.75% and ICICI Bank down by 1.56% were the top losers.

Meanwhile, realtors' apex body Confederation of Real Estate Developers' Associations of India (CREDAI) has said that the RBI's decision to cut benchmark lending rate by 25 basis points might have ‘limited direct impact’ and sought further reduction in the next monetary policy meet for ‘stronger impetus’ to housing demand. It said reduction in repo rate may lead to lowering of interest rates on home loans provided banks decide to pass on the benefits. 

Commenting on the monetary policy announcement, CREDAI National President Boman Irani said the RBI's decision to reduce repo rate by 25 basis points to 6.25 per cent supplements recent announcements in the Budget aimed at boosting spending and spur economic growth. This supportive monetary policy was ‘imperative’, especially after the recent 50 basis points reduction in Cash Reserve Ratio (CRR), which has already injected significant liquidity into the banking system.

Irani observed while the current cut may have a limited direct impact, he anticipates that a further rate cut in the next MPC meeting will provide stronger impetus to overall demand, accelerating housing sales, particularly in the mid-income and affordable segments. As inflations continues to remain a notch higher than the medium-term target, he said the central bank has its task cut out -- contain inflation, inject liquidity into the banking system and cut repo rate in the coming quarter too.  

The CNX Nifty is currently trading at 23458.05, down by 145.30 points or 0.62% after trading in a range of 23443.20 and 23694.50. There were 17 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Trent up by 3.49%, Tata Steel up by 3.49%, Bharti Airtel up by 3.09%, JSW Steel up by 2.81% and Hindalco up by 1.55%. On the flip side, ONGC down by 3.30%, ITC down by 2.80%, SBI down by 2.37%, Adani Ports down by 2.13% and Britannia Industries down by 2.04% were the top losers.

Asian markets are trading mixed; Hang Seng advanced 241.92 points or 1.14% to 21,133.54, Taiwan Weighted added 161.67 points or 0.69% to 23,478.27, Straits Times rose 30.72 points or 0.8% to 3,861.14, while Jakarta Composite plunged 132.96 points or 1.97% to 6,742.58, KOSPI dropped 14.83 points or 0.59% to 2,521.92, Nikkei 225 slipped 279.51 points or 0.72% to 38,787.02.

European markets were trading mostly in green; Germany’s DAX gained 26.50 points or 0.12% to 21,928.92, France’s CAC rose 6.60 points or 0.08% to 8,014, while UK’s FTSE 100 decreased 13.11 points or 0.15% to 8,714.17.
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