Weekly market update, Feb 09, 2024

The India’s Benchmark stock indices declined this week after opening in positive territory following the RBI monetary policy committee’s meeting outcome which kept the policy repo rate unchanged at 6.5% for the sixth consecutive time. The key benchmark indices were dragged down by rate sensitive stocks as uncertainty over rate cut was increased due to the central bank’s incomplete transmission of the cumulative 250 bps rate hike since 2022 and the fact that inflation is ruling above the target level. The NSE Nifty 50 declined 0.33% while the S&P BSE Sensex ended with 0.68% weekly loss. The broader market indices; The BSE mid-caps added 1.65% while BSE Smallcaps declined 0.43% for the week. On sectoral front, NSE’s nine sectors out of 12 gained, while three declined. The Nifty PSU Bank rose 5.3% to become the top performer among sectoral indices, while the Nifty FMCG index fell 2.3%.

Analysts expect that consolidation phase in markets to continue in the near-term, and investors will eye several stock market triggers in the coming week including the ongoing October-December quarter results for fiscal 2023-24 (Q3FY24), domestic macroeconomic data, crude oil prices, foreign capital inflow, along with global cues.

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