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EQUITY
Post Session: Quick Review
Feb-07-2025

Indian equity benchmarks ended Friday’s trading session in a negative terrain as the Reserve Bank of India's (RBI’s) rate cut failed to cheer markets. Market made a cautious start and altered between red and green, amid mixed cues from other Asian markets. In afternoon session, market managed to trim some of their losses and ended tad lower.

Some of the important factors in today’s trade:

RBI cuts intertest rate after 5 years: Sentiments were downbeat despite Reserve Bank of India (RBI) has cut interest rate for the first time in nearly five years. Its Monetary Policy Committee has reduced the repo rate by 25 bps to 6.25 per cent, after having kept it unchanged at 6.50 per cent for eleven straight meetings, and not having lowered it since May 2020.

Foreign fund outflows: Traders were 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.

PSBs net profit up 31.3% in April-December: Traders took note of Ministry of Finance in its latest data report has showed that public sector banks (PSBs) recorded net profit growth of 31.3% year on year to achieve highest ever aggregate net profit of Rs 1,29,426 crore and aggregate operating profit of Rs 2,20,243 crore, in first nine months of the financial year 2024-25. 

Global front: European markets were trading mostly in red, ahead to the release of the monthly U.S. jobs report later in the day, which might offer additional clues regarding the Federal Reserve's next interest rate decision this year. Asian markets ended mixed, even as Japan's leading index increased more-than-expected at the end of the year. The preliminary data from the Cabinet Office showed that the leading index, which measures future economic activity, rose to 108.9 in December from a 3-month low of 107.8 in November.   

The BSE Sensex ended at 77860.19, down by 197.97 points or 0.25% after trading in a range of 77475.74 and 78356.98. There were 13 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was up by 0.13%, while Small cap index down by 0.68%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 2.64%, Metal up by 2.40%, Consumer Durables up by 1.23%, Basic Materials up by 0.87% and Auto up by 0.64%, while Oil & Gas down by 1.31%, FMCG down by 1.25%, Energy down by 1.07%, PSU down by 0.77% and Industrials down by 0.73% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Steel up by 4.26%, Bharti Airtel up by 3.56%, Kotak Mahindra Bank up by 2.22%, Zomato up by 1.90% and Mahindra & Mahindra up by 1.77%. On the flip side, ITC down by 2.57%, SBI down by 2.11%, Adani Ports and Special Economic Zone down by 1.44%, TCS down by 1.29% and ICICI Bank down by 1.19% were the top losers. (Provisional)

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 ended at 23559.95, down by 43.40 points or 0.18% after trading in a range of 23443.20 and 23694.50. There were 28 stocks advancing against 23 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tata Steel up by 4.35%, Bharti Airtel up by 3.52%, JSW Steel up by 3.41%, Trent up by 3.36% and Hindalco up by 2.01%. On the flip side, ONGC down by 2.83%, ITC down by 2.32%, SBI down by 2.00%, Britannia Industries down by 1.73% and Adani Ports and Special Economic Zone down by 1.54% were the top losers. (Provisional)

European markets were trading mostly in red; UK’s FTSE 100 decreased 11.98 points or 0.14% to 8,715.30, and France’s CAC fell 4.56 points or 0.06% to 8,003.06, while Germany’s DAX gained 15.5 points or 0.07% to 21,917.92.

Asian markets settled mostly higher on Friday following the mixed closing from Wall Street overnight, as US Treasury Secretary Scott Bessent reiterated his view on a lower path for 10-year yields under the Trump administration. Meanwhile, investors were awaiting the release of the monthly US jobs report as well as preliminary readings on consumer sentiment and inflation expectations in February later in the day for cues on the US Federal Reserve's interest rate decision. Chinese and Hong Kong shares gained sharply as DeepSeek AI optimism lifted technology shares. However,  Japanese shares declined as the yen hit a nine-week high against the U.S. dollar after Bank of Japan board member Tamura advocated for raising interest rates to at least 1% by the end of 2025 fiscal year.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,303.67

33.01

1.00

Hang Seng

21,133.54

241.92

1.14

Jakarta Composite

6,742.58

-132.96

-1.97

KLSE Composite

1,590.91

5.74

0.36

Nikkei 225

38,787.02

-279.51

-0.72

Straits Times

3,861.42

31.00

0.80

KOSPI Composite

2,521.92

-14.83

-0.59

Taiwan Weighted

23,478.27

161.67

0.69
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