Rate sensitive stocks were in focus on February 8 ahead of RBI meeting outcome. All eyes will be on RBI Governor Shaktikanta Das when he unveils the outcome of the crucial monetary policy review, the last one for this fiscal. Several experts feel that the MPC will hike key policy rate by 25 basis points while economists at SBI say that the central bank can hit the pause button while maintaining the current 'withdrawal of accommodation' stance.
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The biggest challenge before the RBI in the today's MPC meeting is the anticipated slowdown in economic growth, according to experts.
A poll conducted by Reuters found that there will be an expected slowdown of 6 percent in India's economic growth during 2023-24 from an expected 6.7 percent.
Among the sectors, the auto and realty indices shed 0.5 percent each while the financial index was up half a percent at 09:39 AM.
Among the auto stocks, Eicher Motors, Hero MotoCorp and Bajaj Auto shed over a percent each while Maruti SUzuki and ashok Leyland were the other losers. On the other hand, some buying was seen in Tata Motors and TVS Motor Company.
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Realty stocks were under pressure with selling seen in Phoenix Mills, Sunteck Realty Brigade Enterprises and Indiabulls Real Estate while buying was seen in DLF, Sobha and Godrej Properties.
The financial index added half a percent led by Bajaj Finance, State Bank of India, SBI Life Insurance, Bajaj Finserv, Axis Bank, HDFC Bank and ICICI Bank.
Economists at SBI on February 6 said they expect the Reserve Bank of India (RBI) to hit the pause button on interest rate hike at its upcoming monetary policy review this week. The central bank's Monetary Policy Committee (MPC), the six-member rate setting panel, is likely to continue with the current 'withdrawal of accommodation' stance, the SBI economists said.
"All eyes will be on RBI Governor Shaktikanta Das when he unveils the outcome of the crucial monetary policy review today, the last one for this fiscal, and the first one in this calendar year. Most experts feel that the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) will hike the key policy rate by 25 basis points," said Deepak Jasani, Head of Retail Research of HDFC Securities.
Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities is of the view that the street anticipates a smaller 25 basis point rate increase in repo rate to 6.50 percent or a pause in the rate hike spree that began in May last year to combat inflation.
The technical landscape is now suggesting a major intraday support for Nifty at 17673 and then interweek support at 17491. The index could face immediate upside hurdles at 17971, while any confirmation of strength could be seen only above the 18057 mark, he added.
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