Market LIVE: Indices gain after RBI keeps key rates unchanged, Nifty Bank up 1%

Share Market LIVE Updates: Benchmark indices opened higher on Thursday. Sensex soared over 300 points to open at 58,810; Nifty 90 points to start at 17,554.10. PowerGrid, Tata Steel were the top gainers.

Indian indices witnessed a positive start on Thursday. The Sensex jumped over 300 points at open, while Nifty gained close to 100 points. Investors, on Thursday, reacted positively to Reserve Bank of India's decision to keep the key rates unchanged. The central bank forecast FY23 GDP growth at 7.8%, and CPI inflation for FY22 at 5.3% and for FY23 at 4.5%. The release of US inflation data and the beginning of the UP Assembly elections will be in focus on Thursday. In Asia, the markets were mixed as shares in Japan and Australia rose, but wavered in Hong Kong, South Korea and Shanghai.

RBI maintains status quo; leaves benchmark lending rate unchanged at 4%

Reserve Bank of India (RBI) on Thursday kept the benchmark interest rate unchanged at 4 per cent and decided to continue with its accommodative stance in the backdrop of elevated level of inflation.

This is the tenth time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained the status quo. RBI had last revised its policy repo rate or the short-term lending rate on May 22, 2020 in an off-policy cycle to perk up demand by cutting the interest rate to a historic low.

This is the first MPC meeting after presentation of Budget 2022-23 in Parliament on February 1.

MPC has decided to keep benchmark repurchase (repo) rate at 4 per cent, Das said while announcing the bi-monthly monetary policy review.

Consequently, the reverse repo rate will continue to earn 3.35 per cent interest for banks for their deposits kept with RBI.

RBI Monetary Policy: Accommodative stance

MPC keeps the Repo rate unchanged at 4%; Reverse repo rate also unchanged at 3.35%; will also continue with its accommodative stance.

Quess Corp shares tumble on report of likely CEO exit

Shares of Indian staffing service provider Quess Corp tumbled 13.7% to an eight-month low after a report said Chief Executive and board member Suraj Moraje will likely step down due to differences with a promoter.

Adani Wilmar share price crosses ?350. Should you sell, hold or buy now?

Adani Wilmar share price continues to rally on third straight session post-listing as the FMCG stock shot up over 15 per cent in early morning deals. Adani Wilmar share price today opened with an upside gap of around ?34 apiece and went on to climb to its new high of ?381 per share on NSE.?

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

17550-17600 is a resistance block for the Nifty. In order to turn bullish, the market needs to keep above these levels. If the index has to turn bearish, it would do so from around these levels. A drop could take the Nifty to 17000."

Vedant Fashions IPO: GMP (grey market premium), how to check allotment status

Vedant Fashions IPO: After closure of subscription, bidders of Vedant Fashions initial public offering (IPO) are anxiously waiting for announcement of share allocation. Vedant Fashions IPO allotment date is most likely on 11th February 2021 and shares of Vedant Fashions have gone steady in the grey market. According to stock market observers, Vedant Fashions shares are available at a premium of ?6 in the grey market today.

These 2 PSU stocks are part of NSE's F&O ban list for today

A total of two stocks have been put under the ban for trade on Thursday, February 10, 2022 under the futures and options (F&O) segment by the National Stock Exchange (NSE). These securities havbeen put on ban under the F&O segment as it has crossed 95% of the market-wide position limit (MWPL), as per the NSE.

Nykaa's profit after tax dips 57% to ?29 cr in Dec quarter

FSN E-commerce Ventures, which operates under the Nykaa brand, reported about a 57 per cent decline in consolidated profit after tax (PAT) to ?29 crore in the third quarter ended December 31, 2021.

The company had registered a PAT of ?68.9 crore.

However, its consolidated revenue from operations during October-December 2021 increased about 36 per cent to ?1,098.36 crore, from ?807.96 crore in the year-ago period.

Rakesh Jhunjhunwala portfolio: ?100 stock gives breakout. Experts give buy tag

Rakesh Jhunjhunwala portfolio stock Federal Bank has given fresh breakout at ?102 levels yesterday. This breakout was on the closing basis and hence stock market experts have gone highly bullish on Federal Bank shares as the south Indian bank has recently beaten the market estimates while announcing its Q3FY22 earning. Market experts said that Federal Bank shares are positive short to medium term and advised investors to add this stock in one's portfolio for up to ?144 per share medium term target.

Stocks lose steam in Asia before US inflation test

A tech-fuelled global stocks rally cooled in Asian trade on Thursday as investors took a more cautious posture amid uncertainties around the outlook for inflation and interest rates.

World bond yields, however, continued to ease from multi-year highs and the dollar trod water ahead of the closely watched U.S. inflation report due later in the day that should offer new clues on the pace of U.S. interest rate hikes.

Crude oil resumed its uptrend as a big drawdown in U.S. inventories underscored the ongoing tightness in the market.

Japan's blue-chip Nikkei started the day almost 1% higher before beginning a steady slide that took it close to negative territory. It later rebounded to be 0.33% higher.

Meanwhile, Chinese blue chips sank 0.52% and Hong Kong's Hang Seng retreated 0.31%.

MSCI's broadest index of Asia-Pacific shares eked a 0.10% gain.

RBI must focus more on inflation to combat spiking yields, traders say

Indian debt traders have dismissed government officials' concerns about bonds being mispriced, saying they reflected fundamentals but the central bank was behind the curve, and urged steps to fight inflation at Thursday's policy meeting.

While high global crude prices, tightening in other markets and potential rate increases by the U.S. Fed weigh on sentiment, investors turned more bearish on Indian bonds after the government unveiled a record market borrowing plan last week.

The benchmark 10-year bond yield spiked to a 2-1/2-year high after the government announced a borrowing target of 14.95 trillion rupees ($199.84 billion) for the next fiscal year.

That was nearly 2 trillion rupees more than markets had expected would be needed to fund the government's 'growth budget' at a time when the economy looks set for sustained recovery.

Gold stuck in tight range as traders brace for US inflation data

Gold prices were stuck in a tight range on Thursday as investors awaited U.S. inflation data that could offer fresh clues about the pace of the Federal Reserve's monetary policy tightening.?

Fundamentals

Spot gold was steady at $1,833.26 per ounce by 0113 GMT, hovering close to Wednesday's high of $1,835.60. U.S. gold futures fell 0.1% to $1,834.30.?

Benchmark 10-year U.S. Treasury yields were off their November 2019 highs, while the dollar edged higher.?

The inflation data is expected to show a 0.5% month-over-month increase in January, and 7.3% for the year, according to economists polled by Reuters.?

Fed fund futures traders are pricing in more than five 25 basis point interest rate increases by December, and a 27% chance that the first hike in March is by 50 basis points.?

A robust inflation reading is expected to burnish gold's mettle as an inflation hedge, but any interest rate hike to contain pricing pressure would raise the opportunity cost of holding non-yielding bullion.

Oil prices steady as investors eye US-Iran nuclear talks

Oil prices were mixed on Thursday, after rallying on an unexpected drop in U.S. crude inventories in the previous session, as investors await the outcome of U.S.-Iran nuclear talks that could add crude supplies quickly to global markets.

Brent crude futures slid 10 cents, or 0.1%, to $91.45 a barrel at 0130 GMT, while U.S. West Texas Intermediate crude was at $89.74 a barrel, up 8 cents.

Robust demand recovery from the coronavirus pandemic has kept global oil supplies snug, with inventories at key fuel hubs globally hovering at multi-year lows.

Uber posts 4Q profit as ride-hailing service bounces back

Uber’s ride-hailing service edged closer to returning to its pre-pandemic levels during the final three months of last year, but its prospects remain clouded by the future direction of the novel coronavirus that has plagued its business.

The San Francisco-based company's fourth-quarter results Wednesday came in above analysts’ projections. But Uber's forecast for the current January-March period was slightly below what Wall Street had been hoping, suggesting that the omicron variant may have dented the ride-hailing service at the outset of the new year.

Asia stocks steady, US futures dip as CPI looms

Asian stocks were steady Thursday, while U.S. equity futures dipped, as traders awaited inflation data that may shape views on how aggressively the Federal Reserve will tighten monetary policy.

Shares rose in Japan but wavered in Hong Kong and China. The region failed to harness all of the tailwind from Wall Street, where the S&P 500 extended a broad rally Wednesday and the Nasdaq 100 jumped over 2%. Uber Technologies Inc. and Walt Disney Co. gained in late trading on robust earnings.

The 10-year U.S. Treasury yield edged lower in the wake of a strong auction. The gap between two-year and 10-year yields was around the narrowest since October 2020. The dollar ticked higher.

Global stocks rise on strong earnings, tech sector strength

World stocks rallied on Wednesday, with Wall Street rising again on a Big Tech boost and European shares gaining on strong earnings as investors put aside worries about rising interest rates for now.

The benchmark 10-year U.S. Treasury yield slipped from multi-year highs hit in the previous session, helping steady sentiment across global markets and boosting demand for growth stocks. The S&P 500 and the Nasdaq Composite jumped more than 1% as tech stocks extended their rally.

The Dow Jones Industrial Average rose 0.86% to end at 35,768.06 points, while the S&P 500 gained 1.45% to 4,587.18.

The Nasdaq Composite climbed 2.08% to 14,490.37.

The pan-European STOXX 600 rose 1.7% with automakers leading gains with a 4.0% jump. Volkswagen was among the top boosts to the index, up 6.1%, while its biggest investor, holding company Porsche jumped 8.2%.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.8% to a more than two-week high and the blue-chip Nikkei closed just over 1% higher.

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