Indices edge higher in early trade, breadth strong

The key equity indices traded with moderate gains in early trade, ahead of the RBI`s monetary policy outcome due later today. The Nifty traded near 22,000 level. PSU bank, media and oil & gas stocks advanced while realty, FMCG and auto shares declined. Trading could be volatile due to expiry of weekly index options on the NSE.

At 09:27 IST, the barometer index, the S&P BSE Sensex, was up 219.95 points or 0.33% to 72,371.55. The Nifty 50 index added 70.50 points or 0.32% to 22,001.

In the broader market, the S&P BSE Mid-Cap index rose 0.96% and the S&P BSE Small-Cap index gained 0.89%.

The market breadth was strong. On the BSE, 1,884 shares rose and 1,039 shares fell. A total of 110 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,691.02 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 327.73 crore in the Indian equity market on 7 February, provisional data showed.

The Reserve Bank Governor-headed six-member Monetary Policy Committee (MPC) meeting began on 6 February 2024. Interest rate decision will be announced today, 8 February 2024. The RBI will hold its key interest rate steady at 6.50%, as per reports.

Stocks in Spotlight:

Power Grid Corporation of India jumped 5.21% 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 Consumer Products shed 1.54% 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.

Piramal Pharma declined 1.22% after the USFDA conducted inspection from 29 January to 6 February 2024 at its Riverview, USA facility. On conclusion of the inspection, a Form-483 was issued with 3 observations. The observations were classified under VAI (Voluntary Action Indicated) and does not relate to data integrity.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper shed 0.28% to 7.054 as compared with previous close 7.074.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.9425, compared with its close of 82.9295 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement fell 0.18% to Rs 62,412.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.06% to 104.

The United States 10-year bond yield declined 0.72% to 4.139.

In the commodities market, Brent crude for March 2024 settlement added 33 cents or 0.42% to $79.54 a barrel.

Global Markets:

Asian stocks were trading higher on Thursday as investors assess China�s January inflation data and await the Reserve Bank of India�s rate decision.

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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