Benchmarks remain in green after RBI hikes interest rate

Indian equity benchmarks continued to trade higher in morning deals, after the Reserve Bank of India’s Monetary Policy Committee (MPC) decided to increase the repo rate by 25 basis points to 6.5%. The central bank pegged the GDP growth for FY24 at 6.4 per cent, and lowered the inflation forecast to 5.3 per cent. For FY23, the inflation estimate has been lowered to 6.5 per cent versus 6.7 per cent earlier. Traders overlooked provisional data available on the NSE showing that foreign institutional investors (FII) sold shares worth Rs 2,559.96 crore on February 7.   Sectorally, stocks related to electric vehicle (EV) remained in watch as automobiles body FADA stated that electric passenger vehicles retail sales declined by 10.51 per cent sequentially to 3,346 units in January 2023 over 3,739 vehicles sold in December last year. On the global front, Asian markets are trading mostly in green as underlying sentiment was helped by Fed Chair Jerome Powell's comments that he expects 2023 to be a year of ‘significant declines in inflation’.

The BSE Sensex is currently trading at 60685.42, up by 399.38 points or 0.66% after trading in a range of 60324.92 and 60792.10. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.17%, while Small cap index was up by 0.20%.

The top gaining sectoral indices on the BSE were IT up by 1.47%, TECK up by 1.15%, Metal up by 0.38%, FMCG up by 0.29% and Bankex up by 0.28%, while Realty down by 0.75%, Telecom down by 0.49%, Oil & Gas down by 0.48%, Energy down by 0.24% and PSU down by 0.24% were the top losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 2.59%, TCS up by 1.85%, Infosys up by 1.71%, Bajaj Finance up by 1.52% and Reliance Industries up by 1.48%. On the flip side, Power Grid Corp down by 1.91%, Bharti Airtel down by 1.31%, Tata Steel down by 0.63%, Larsen & Toubro down by 0.21% and Kotak Mahindra Bank down by 0.20% were the top losers.

Meanwhile, the Federation of Automobile Dealers Associations (FADA) in its latest data has showed that electric passenger vehicles retail sales declined by 10.51 per cent sequentially to 3,346 units in January 2023 over 3,739 vehicles sold in December last year. According to it, Tata Motors's electric PV sales were down 17 per cent at 2,426 vehicles in January as against 2,926 units delivered in December 2022. MG Motor sales volume also dropped 12.55 per cent to 425 units against 486 units sold in the month earlier.

BYD India reported 164 per cent growth in ePV volumes at 132 vehicles in January 2023 as compared to 50 vehicles retailed in December last year while BMW India sales stood 123 cars against 29 units in December 2022. Hyundai Motor India ePV sales were recorded at 111 units in the previous month over 91 units retailed in December 2022.

It mentioned the electric CV sales was recorded 23 per cent lower at 131 units over 170 units in December last year. The e-three wheelers sale also dropped 3 per cent sequentially at 32911 vehicles in comparison in January this year from 33949 vehicles in the last month of 2022. However, the e-two-wheeler volumes stood flat at 64,363 vehicles as against 64,348 units retailed in December 2022.

The CNX Nifty is currently trading at 17853.35, up by 131.85 points or 0.74% after trading in a range of 17744.15 and 17878.95. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 9.10%, Adani Ports &SEZ up by 5.71%, HDFC Life Insurance up by 3.32%, SBI Life Insurance up by 2.85% and Ultratech Cement up by 2.59%. On the flip side, Coal India down by 1.98%, Power Grid Corporation down by 1.94%, Hero MotoCorp down by 1.55%, Bharti Airtel down by 1.35% and Eicher Motors down by 1.01% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted added 213.94 points or 1.39% to 15,614.85, Hang Seng advanced 57.94 points or 0.27% to 21,356.64, KOSPI increased 32.91 points or 1.34% to 2,484.62 and Straits Times rose 8.48 points or 0.25% to 3,389.32.

On the flip side, Nikkei 225 slipped 118.03 points or 0.43% to 27,567.44, Shanghai Composite weakened 1.56 points or 0.05% to 3,246.53 and Jakarta Composite plunged 4.93 points or 0.07% to 6,930.37.