Post Session: Quick Review

Indian equity benchmarks witnessed a downward trend for the second straight session and ended in negative terrain on Thursday, as traders avoided to take risk ahead of Reserve bank of India’s (RBI’s) MPC policy meeting outcome. Sentiments also remained down as FII's continued to take money out of the markets. Weakness in Rupee too dampened sentiments. Rupee was trading with a negative bias over the global trade war as market participants mulled the impact of tariffs being imposed by the United States and China.

Some of the important factors in today’s trade:

Traders keep eye on RBI policy: Some cautiousness prevailed among traders ahead of the Reserve Bank of India's interest rate decision, scheduled to be announced on Friday. Traders were hopeful that RBI will announce a 25-basis-point rate cut on February 7 to stimulate growth following recent personal tax cuts.

Rupee hits fresh low: Sentiments were downbeat after Rupee plunged 15 paise to its record low level of 87.58 against US dollar. Rupee is trading with a negative bias over the global trade war as market participants mulled the impact of tariffs being imposed by the United States and China.

Indirect tax likely to rise by 8.3%: Market participants overlooked a private report that the government's indirect tax collection is expected to increase by 8.3% in the financial year 2025-26 (FY26). 

Global front: European markets were trading higher, as Germany's factory orders rebounded at a much stronger than expected pace in December largely driven by the manufacture of transport equipment. Most of the Asian markets ended in green following positive cues from the US markets overnight. Sentiments got boost as concerns over a global trade war eased amid amicable measures from both the US and China.

The BSE Sensex ended at 78058.16, down by 213.12 points or 0.27% after trading in a range of 77843.99 and 78551.66. There were 11 stocks advancing against 19 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.87%, while Small cap index down by 0.01%. (Provisional)

The few gaining sectoral indices on the BSE were IT up by 0.35%, Healthcare up by 0.17% and Bankex up by 0.02%, while Realty down by 2.15%, Consumer Durables down by 2.04%, Telecom down by 1.73%, Consumer Disc down by 1.34% and PSU down by 1.31% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Adani Ports and Special Economic Zone up by 1.99%, Infosys up by 0.94%, Tech Mahindra up by 0.86%, Axis Bank up by 0.82% and HCL Tech up by 0.60%. On the flip side, Bharti Airtel down by 2.33%, Titan Company down by 2.20%, NTPC down by 1.78%, SBI down by 1.58% and ITC down by 1.27% were the top losers. (Provisional)

Meanwhile, Federation of Automobile Dealers Associations (FADA) has stated that automobile retail sales in India rose 7 per cent year-on-year in January 2025 at 22,91,621 units, driven by robust demand across segments. Overall retail sales stood at 21,49,117 units in January 2024.

It said passenger vehicle retail sales jumped 16 per cent year-on-year to 4,65,920 units in January 2025. Two-wheeler retails stood at 15,25,862 units in January 2025, an increase of 4 per cent, as compared with 14,65,039 units in same month last year.

It further said commercial vehicle sales rose 8 per cent year-on-year in January 2025 to 99,425 units. Tractor sales rose 5 per cent year-on-year to 93,381 units in January 2025, while three-wheeler retail sales rose 7 per cent to 1,07,033 units in January 2025.

The CNX Nifty ended at 23603.35, down by 92.95 points or 0.39% after trading in a range of 23556.25 and 23773.55. There were 19 stocks advancing against 32 stocks declining on the index. (Provisional)

The few gainers on Nifty were Cipla up by 2.42%, Adani Ports and Special Economic Zone up by 1.72%, Infosys up by 0.98%, Tata Consumer Products up by 0.79% and Dr Reddy's Laboratories up by 0.74%. On the flip side, Trent down by 8.22%, Bharat Electronics down by 3.18%, Bharti Airtel down by 2.45%, Titan Company down by 2.30% and NTPC down by 2.13% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 101.89 points or 1.18% to 8,725.18, Germany’s DAX gained 199.86 points or 0.93% to 21,785.79 and France’s CAC rose 58.42 points or 0.74% to 7,950.10.

Asian markets settled mostly higher on Thursday tracking Wall Street gains overnight and US Treasury yields dipped on easing inflation concerns, while a larger-than-expected drop in US job openings for December renewed expectations for a favourable outlook on interest rates. Moreover, forecasts of high capital spending on artificial intelligence from Wall Street's biggest firms has also supported Asian market sentiments. Chinese ad Hong Kong shares gained on eased concerns over a potential global trade war after USPS has resumed accepting parcels from mainland China and Hong Kong following a brief suspension after US President Donald Trump changed the rules on import taxes. Japanese shares rose, even as the yen firmed on the back of bolstered expectations that the BoJ will continue to raise interest rates.