Benchmarks trade marginally higher; RBI keeps rate unchanged at 6.5%

Indian equity benchmarks turned volatile and were trading marginally in green in morning deals, after the Reserve Bank of India's monetary policy decision, where the central bank kept its key interest rate unchanged for a sixth consecutive meeting. Traders took some support with Commerce and Industry Minister Piyush Goyal’s statement that the government has set up a task force under the Department of Commerce to identify, categorise and develop tailored strategies for the resolution of non-tariff barriers. However, gains remain capped as provisional data from the NSE showed Foreign institutional investors (FIIs) net sold shares worth Rs 1,691.02 crore on February 7, 2024. On the global front, Asian markets are trading mostly in green following another record on Wall Street, with strong earnings, a resilient US economy and Chinese moves to boost the country's markets playing up against fading hopes for an early Federal Reserve interest rate cut.

The BSE Sensex is currently trading at 72213.76, up by 61.76 points or 0.09% after trading in a range of 71983.60 and 72473.42. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.99%, while Small cap index was up by 0.30%.

The top gaining sectoral indices on the BSE were PSU up by 2.03%, Utilities up by 1.30%, Power up by 1.17%, Telecom up by 1.11% and Oil & Gas up by 0.93%, while FMCG down by 0.78%, Realty down by 0.21% and Auto down by 0.07% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid Corporation up by 5.64%, SBI up by 3.24%, HCL Technologies up by 1.59%, TCS up by 1.49% and Wipro up by 0.68%. On the flip side, Nestle down by 1.88%, ITC down by 1.68%, Maruti Suzuki down by 1.26%, Bajaj Finance down by 0.92% and Ultratech Cement down by 0.88% were the top losers.

Meanwhile, the International Energy Agency (IEA) in its latest report ‘Indian Oil Market Outlook to 2030’ has said that India will emerge as the largest source of global oil demand growth between now and 2030, signaling a significant shift in the dynamics of the global oil market.

According to the report, India’s pivotal role in driving global oil demand growth is underpinned by various factors, including urbanization, industrialization, and the burgeoning prosperity of the middle class. The country’s robust economic growth, coupled with demographic trends and rising aspirations for mobility and tourism, are expected to fuel the expansion of oil demand in India over the next decade.

The report projects that India’s oil demand is set to increase by almost 1.2 million barrels per day (mb/d), accounting for more than one-third of the projected 3.2 mb/d global gains by 2030. This surge in demand will propel India’s total oil consumption to 6.6 mb/d by 2030, solidifying its position as a key player in the global oil market.

It stated diesel/gasoil is identified as the primary driver of India’s oil demand growth, accounting for nearly half of the nation’s demand increase and more than one-sixth of total global oil demand growth through 2030. Additionally, jet-kerosene demand is poised for strong growth, albeit from a relatively low base, while gasoline demand will witness moderate growth due to the electrification of India’s vehicle fleet.

The CNX Nifty is currently trading at 21957.85, up by 27.35 points or 0.12% after trading in a range of 21882.15 and 22011.05. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Power Grid Corporation up by 5.54%, BPCL up by 3.35%, SBI up by 3.29%, Hindalco up by 2.43% and TCS up by 1.68%. On the flip side, Tata Consumer Product down by 2.04%, Britannia Industries down by 2.01%, Nestle down by 1.82%, UPL down by 1.63% and ITC down by 1.62% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 799.49 points or 2.21% to 36,919.41, KOSPI increased 5.25 points or 0.2% to 2,614.83 and Shanghai Composite strengthened 32.61 points or 1.14% to 2,862.31.

On the flip side, Hang Seng declined 140.23 points or 0.88% to 15,941.66 and Straits Times fell 10.4 points or 0.33% to 3,145.75.