Get App
WEEKLY MARKET REVIEW
The Indian equity market extended the gains in the second consecutive week ended February 7 amid volatility led by uncertain tariff policies by US President Trump, mixed corporate earnings, and an expected 25 bps rate cut by the RBI.
This week, BSE Sensex added 354.23 points or 0.45 percent to finish at 77,860.19, while the Nifty50 index rose 77.8 points or 0.33 percent to close at 23,559.95.
On the sectoral front, the BSE FMCG index shed more than 5 percent, the BSE Realty Index fell 3.5 percent, the BSE Capital Goods index declined 2.4 percent, BSE Power index fell nearly 2 percent. However, BSE Healthcare added 3 percent, the BSE Metal index gained nearly 3 percent, and BSE Information Technology rose nearly 2 percent.
Considering the Broader market indices, the BSE Large-cap Index rose 0.3 percent while the BSE Mid-cap Index added 0.4 percent and the the BSE Small-cap index ended flat.
HDFC Bank added most of its market value, followed by Bharti Airtel, Bajaj Finance, and Infosys. On the other hand, ITC, Hindustan Unilever, and State Bank of India lost most of their market cap.
During the week, Foreign Institutional Investors (FIIs)sold equities worth Rs 8852.31 crore, while Domestic Institutional Investors (DII) bought equities worth Rs 6449.67 crore.
The Indian rupee tested a fresh record low of 87.59 during the week. The domestic unit ended 81 paise lower at 87.42 per dollar on February 7 against the January 31 closing of 86.61.
ECONOMY
RBI rate cut, coupled with income tax relief to boost consumption and investment, say economists
The rate cut effected by RBI’s MPC, along with the Centre’s income tax relief measures announced in the Union Budget will boost consumption in the coming fiscal, according to economists.
Analysis by the Department of Financial Services points out that tax cuts are likely to help Rs 40,000-45,000 crore flow into the banking system through savings, which should boost credit growth. The rate cut announced by the RBI MPC is expected to provide further impetus.
Supply of 906 million tonnes of coal to the power sector will be done in FY26: Coal Ministry
The Ministry of Coal will supply at least 906 million tonnes (MT) of coal to energize India’s thermal power plants for the country to meet its peak demand in FY26, Vismita Tej, Additional Secretary, Ministry of Coal told reporters on February 7.
The requirement for FY26 is 3.66 percent higher compared to the power sector’s demand of 874 million tonnes (MnT) in FY25.
When asked about the ministry’s preparedness for this summer, Tej said meetings are happening at the inter-ministerial level twice a week and at the secretary level once a month for planning coal supply in the approaching summer season.
STOCKS IN NEWS
PG Electroplast: PG Electroplast shares gained 6% following a strong earnings report for Q3FY25, with notable growth in both revenue and profitability. For the quarter ended December of FY25, the company reported a growth of 109 percent on a year-on-year (YoY) basis in its net profit to Rs 40.1 crore.
Gulf Oil: Gulf Oil saw a 7% jump in its stock price after reporting a 22% year-on-year surge in its net profit for the quarter ending December 31, 2024. The firm also announced a dividend of Rs 20 equity per share for its shareholders.
Indus Towers: shares were trading close to 3 percent during early market hours on Friday, February 7, following yesterday’s announcement of acquiring mobile sites of Bharti Airtel and Bharti Hexacom assets. Indus Towers aims to acquire approximately 16,100 telecom towers as a part of the aforementioned deal. The acquisition of Bharti Airtel and sister entity, Bharti Hexacom is valued at Rs 3,308.7 crore and will be conducted by way of slump sale.
Tejas Networks: Networking gear manufacturer Tejas Networks has signed technology collaboration agreements worth Rs 525 crore with leading Japanese telecom major NEC Corp, to develop advanced wireless technologies for global telecom players, the company said in an exchange filing on February 7. The collaboration is for advanced Radio Access Network (RAN) and core products. Tejas Networks said it will also get an opportunity to participate in NEC’s go-to-market (GTM) efforts.
Nifty Realty Index: The Nifty Realty Index climbed 1.62% after the RBI’s 25 basis point repo rate cut, which is expected to enhance affordability for real estate developers. The sector saw positive movement as market sentiment improved in response to the monetary policy easing.
Bank Nifty: The Bank Nifty index dropped by 0.5%, despite the RBI’s 25 basis point rate cut. The neutral stance maintained by the RBI’s Monetary Policy Committee dampened the early optimism, and stocks like HDFC Bank retreated from their intraday highs, leading to a modest decline in the index