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CAPITALSTARS PRESENT FRIDAY CURRENT MARKET NEWS : 05 FEBRUARY 2021

5 feb (4)

Barometers trade sideways; metal stocks shine.

Barometers traded sideways with modest gains in early afternoon trade. The Nifty hovered near 14,950 level. Shares turned volatile after the Reserve Bank of India (RBI) kept the repo rate unchanged at 4% while the stance remained ‘accomodative’.

The barometer index, the S&P BSE Sensex, was up 212.1 points or 0.46% at 50,826.04. The Nifty 50 index gained 0.34% at 14,946.20.

The Sensex scaled record high of 51,073.27 while the Nifty hit record high of 15,014.65 level in early trade.

In broader market, the S&P BSE Mid-Cap index was down 0.22% while the S&P BSE Small-Cap index was up 0.15%.

The market breadth was negative. On the BSE, 1322 shares rose and 1418 shares fell. A total of 154 shares were unchanged.

Derivatives:

The NSE’s India VIX, a gauge of market’s expectation of volatility over the near term, rose 1.96% to 23.5775. The Nifty 25 February 2021 futures were trading at 14,980.05, at a discount of 1.30 points as compared with the spot at 14,981.35.

The Nifty option chain for 25 February 2021 expiry showed maximum Call OI of 16.2 lakh contracts at the 15,000 strike price. Maximum Put OI of 37 lakh contracts was seen at 14,000 strike price.

RBI MPC Outcome:

The meeting of the six-member Monetary Policy Committee headed by RBI Governor Shaktikanta Das concluded this morning. The committee has kept the interest rates unchanged, maintaining repo rate at 4% and the reverse repo rate at 3.35%.

The MPC decided to continue with an accommodative stance of monetary policy as long as necessary, at least through the current financial year and into next year to revive growth on a durable basis and mitigate the impact of Covid-19, Das said.

Inflation has been better than what was expected in December meeting and eased below tolerance level of 6%. The RBI projected GDP growth of 10.5% in FY22 for India while projection for CPI-based inflation was revised to 5.2% for Q4FY21.

The RBI had last revised its policy rate on 22 May 2020 to perk up demand by cutting interest rate to a historic low. The latest Economic Survey said that there are expectations of a rebound of the economy with a 11% growth in the next fiscal.

New Listing:

Shares of Stove Kraft were trading at Rs 456 at 12:24 IST on the BSE, at a premium of 18.44% over the initial public offer price of Rs 385. The stock was listed at Rs 467, at a premium of 21.30% to the initial public offer (IPO) price. So far, the stock hit a high of Rs 495.55 and low of Rs 435.05. On the BSE, 7.7 lakh shares were traded on the counter so far. The IPO of Stove Kraft was subscribed 18.03 times. The issue opened for subscription on Monday (25 January 2021) and closed on Thursday (28 January 2021).

Buzzing Index:

The Nifty Metal index rose 1.54% to 3462.20, rising for fifth consecutive trading session. The index rallied 12.5% in five trading days.

Tata Steel (up 3.31%), Jindal Steel & Power (up 2.67%), Steel Authority of India (up 1.09%), JSW Steel (up 1.07%), Hindalco Industries (up 0.88%), NMDC (up 0.73%) were top gainers in metal space.



Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.

CapitalStars Investment Adviser: SEBI Registration Number: INA000001647.

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