As many as eight Nifty 50 stocks scaled a fresh 52-week high on February 8, although the key benchmark indices traded within a range, as the Reserve Bank of India Monetary Policy Committee kept the repo rate unchanged at 6.5 percent.
Shares of SBI, HeroMotoCorp, TCS, Sun Pharma, BPCL, HCL Technology, SBI Life and Dr Reddy's made fresh 52 week peaks showcasing their relative strength. Aggressive long build-up is seen in PowerGrid shares with OI increasing by more than 13 percent. Top Sensex gainer PowerGrid rallied more than 5 percent followed by SBI, TCS and HCL Tech which were up by more than 1 percent each.
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Aggressive long build-up is also seen in Trent shares with OI rising by more than 11 percent. Long build-up is seen in Lupin and Hindalco while short-covering is seen in Cummins and Bank of Baroda.
Private Banks are seen trading with weakness as Axis Bank and ICICI Bank shed more than 1 percent each. PSU banks outperformed the markets with Bank of Baroda and SBI participating in the rally.
"The MPC outcome is on expected lines only. RBI will continue to focus on aligning inflation towards its target of 4 percent which is expected to be attained by the June-August quarter. Inflation expectations for Q4 and Q1 have also been reduced. So the market may discount a rate cut possibility during the end of the 2nd quarter or 3rd quarter. The tight liquidity in the banking system may continue for some more time as the focus is on bringing down inflation towards 4 percent. Increased public debt globally has been cited as a concern and which is very important,” Mukesh Kochar, national head of wealth at AUM Capital, said.
Broader markets are seen outperforming with BSE SmallCap index trading in the green. BSE Oil & Gas index, BSE Power index, BSE MidCap index, BSE Telecom index and BSE CPSE index are seen trading with gains up to 1.26 percent. BSE Sensex is down by 174 points trading below 72,000 at 10.47am.
GIC, NIACL, Justdial, Jindal Saw, Elgi Equipments, CRISIL and KEC are some of the BSE 500 constituents trading with a price volume breakout. UPL and Vinati organics traded at fresh 52 week low.
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