Sensex tumbles 628 pts; PSU bank rally for 2nd day

The equity benchmark indices traded with substantial losses in mid-morning trade. The Nifty traded below 21,800 level after hitting day�s high of 22,011.05 in early trade. PSU Bank shares extended gains for second consecutive trading session.

At 11:26 IST, the barometer index, the S&P BSE Sensex, dropped 627.49 points or 0.87% to 71,524.51. The Nifty 50 index declined 173.95 points or 0.79% to 21,756.55.

In the broader market, the S&P BSE Mid-Cap index rose 0.28% and the S&P BSE Small-Cap index gained 0.46%.

The market breadth was negative. On the BSE, 1,626 shares rose and 2,072 shares fell. A total of 128 shares were unchanged.

RBI MPC Outcome:

The Reserve Bank of India�s (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 impart 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.

IPO Update:

The initial public offer (IPO) of Capital Small Finance Bank received bids for 54,34,464 shares as against 81,47,373 shares on offer, according to stock exchange data at 11:30 IST on Thursday (8 February 2024). The issue was subscribed 0.67 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 1,20,07,188 shares as against 1,01,16,284 shares on offer, according to stock exchange data at 11:30 IST on Thursday (8 February 2024). The issue was subscribed 1.19 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 2,27,00,064 shares as against 1,42,37,289 shares on offer, according to stock exchange data at 11:30 IST on Thursday (8 February 2024). The issue was subscribed 1.59 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.

Buzzing Index:

The Nifty PSU Bank index advanced 2.27% to 6,896.75. The index gained 5.19% in the two trading sessions.

State Bank of India (up 3.52%), Bank of India (up 3.28%), Indian Bank (up 3.22%), Union Bank of India (up 2.15%) and Canara Bank (up 2.09%) were the top gainers. Among the other gainers were Bank of Baroda (up 2.08%), Punjab National Bank (up 0.32%) advanced.

Stocks in Spotlight:

Parag Milk Foods (PMFL) rallied 3.11% 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.

Apollo Tyres declined 1.96%. The company�s consolidated net profit jumped 78.14% to Rs 496.63 crore in Q3 FY24 as compared with Rs 278.79 crore in Q3 FY23. Revenue from operations rose 2.69% year on year (YoY) to Rs 6,595.37 crore in the quarter ended 31 December 2023.

Global Markets:

Asian stocks traded mixed 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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