- India’s benchmark indices
Sensex andNifty50 rose after the 25 basis point rate hike announced by the Reserve Bank of India on Wednesday. - Amongst sectoral indices, metal and IT led the gains, while auto and realty stocks declined.
- The 30-stock Sensex gained 0.6% or 358 points to 60,643, while the 50-stock Nifty50 rose 0.7% or 124 points to 17,845 as of 12:15 p.m.
The 30-stock Sensex gained 0.6% or 358 points to 60,643, while the 50-stock Nifty50 rose 0.7% or 124 points to 17,845 as of 12:15 p.m.
Earlier on Tuesday, both Sensex and Nifty50 capped off a volatile trading session and closed in the red after a selloff in FMCG and steel stocks. While the 30-stock Sensex declined 0.37% or 221 points at 60,286, the 50-stock Nifty50 ended 0.24% or 43 points lower at 17,722.
Top gainers and losers on Nifty50
Source: NSE, as of 12:15 p.m., February 8, 2023
“The rate hike was in line with expectations. However markets were expecting an explicit statement suggesting a pause which has not happened. This suggests the tug of war between growth and inflation continues. While chances of pause still remain, the uncertainty may persist,” said Lakshmi Iyer, CEO-Investment Advisory, Kotak Investment Advisors.
Investors await the outcome from RBI’s monetary policy meeting today that will provide direction to the market. Markets expect a 25 basis points hike in repo rate to 6.5%. The last time RBI hiked repo rates was in December, with the hike standing at 35 basis points.
“RBI’s policy announcement on Wednesday will provide more colour on its future rate actions, which is expected to hike rate by 25bps,” said Vinod Nair, head of research at Geojit Financial Services.
Markets in the US rebounded on Tuesday as investors rejoiced on US Fed chair Jerome Powell’s comments that “disinflation is underway”.
The benchmark S&P 500 closed 1.29% higher, while the Dow Jones Industrial Average gained 0.78%. The tech-heavy Nasdaq, on the other hand, gained 1.9%.
Asian markets were mixed on Wednesday, with Taiwan Weighted being flat in the morning, while the Hang Seng index was marginally down. KOSPI gained 1.37%, while Nikkei 225 was down 0.52%. Shanghai Composite declined 0.09%.
Earnings today: Adani Power, Adani Wilmar, Shree Cement, Cummins India, Graphite India, Piramal Enterprises, Equitas Small Finance Bank, among others.
Ambuja Cements is under F&O ban today.
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