POST-MARKET SUMMARY 8th February 2024

On February 8, the Indian equity benchmarks closed significantly lower after the Reserve Bank of India (RBI) decided to maintain key interest rates unchanged. Over the past few weeks, the market has experienced fluctuations within a certain range, leading investors to exercise caution. While broader markets also ended lower, they managed to outperform the benchmarks. The sectoral matrix displayed a mixed performance. The Nifty Private Bank suffered the most, dropping by 2.59%, while the Nifty FMCG declined slightly over 2% due to selling pressure in ITC. Both the Nifty Financial Services and Nifty Auto sectors were notable losers. On the positive side, the Nifty PSU Bank emerged as the top gainer, rising by 2%, followed by Nifty Media with gains of approximately 2%. Additionally, Nifty Oil & Gas registered an increase of about 1%. 

ALSO READ: Steady RBI Rates, Unsteady Markets | Explore the disconnect  

NIFTY:  The index opened 79 points higher at 22,009 and made a high of 22,011 before closing at 21,717. Nifty has formed a bearish candlestick on the daily chart. Its immediate resistance level is now placed at 21,830 while immediate support is at 21,650. 

BANK NIFTY: The index opened 155 points higher at 45,973 and closed at 45,012. Bank Nifty has formed a long bearish candlestick on the daily chart. Its immediate resistance level is now placed at 45,500 while support is at 44,900.

Stocks in Spotlight

▪  ITC:  Stock fell 4% after its largest shareholder, British American Tobacco (BAT), said it was working towards completing the regulatory process to pare its stake in the diversified conglomerate.

▪  Cummins India: Stock surged 8% after the company reported impressive earnings for the quarter ended December 2023.

▪  Kalyan Jewelers: Stock surged 4.5% after a 4.63% stake in the company changed hands in eight block deals on February 8.

Global News 

▪  Gold prices steadied on Thursday as a pushback from U.S. Federal Reserve officials on market hopes for early interest rate cuts offset safe-haven demand after Israel rejected a ceasefire offer from Hamas amid continuous talks to end the Gaza conflict.

▪  U.S. Treasury yields were little changed as investors considered remarks from Federal Reserve officials about the path ahead for interest rate cuts.

▪  Japan’s Nikkei led gains in Asia-Pacific markets on Thursday, hitting fresh 34-year highs, after a report suggested the country’s central bank would not aggressively tighten its monetary policy.

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