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The benchmark Sensex and Nifty indices are likely to open on a negative note on February 6 as trends in the GIFT Nifty indicate a lower start for the broader index with a loss of 31.50 points.
The Indian equity benchmarks failed to hold on to the opening gains and ended lower in a volatile session on February 5, as investors awaited the RBI meet outcome for rate cute cues and inflation trajectory.
The Sensex ended 354.21 points or 0.49 percent down at 71,731.42, and the Nifty was down 82.10 points or 0.38 percent at 21,771.70.
The pivot point calculator indicates that the Nifty is likely to take immediate support at 21,730 followed by 21,674 and 21,584 levels, while on the higher side, it may see immediate resistance at 21,793, followed by 21,968 and 22,058 levels.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms, which could impact Indian as well as international markets.
GIFT Nifty
Trends in the GIFT Nifty indicate a negative start for the broader index in India, with a loss of 31.50 points or 0.14 percent. The Nifty futures were trading around the 21,619.50 level.
Trade setup for today: Top 15 things to know before the opening bell
US Markets
Wall Street’s main indexes closed lower on Monday after Federal Reserve Chair Jerome Powell pushed back firmly against speculation that rate cuts would be imminent, while investors assessed a mixed bag of U.S. earnings reports.
The Dow Jones Industrial Average fell 274.30 points, or 0.71 percent, to 38,380.12, the S&P 500 lost 15.80 points, or 0.32 percent, to 4,942.81 and the Nasdaq Composite lost 31.28 points, or 0.20 percent, to 15,597.68.
Asian Markets
Most Asian markets fell Tuesday, tracking declines in Wall Street overnight, while investors also awaited the interest rate decision from the Reserve Bank of Australia later in the day.
Bharti Airtel Q3 net profit jumps 54%, ARPU at Rs 208
Bharti Airtel on February 5 reported a consolidated net profit of Rs 2,442.2 crore for the October-December quarter, growing 54 percent from the same quarter a year ago.
Its revenue came in at Rs 38,339 crore, up 6.3 percent from Rs 36,062 crore in the year-ago period, Bharti Airtel said in an exchange filing.
The company said its mobile average revenue per user per month (ARPU) was at Rs 208 – better than estimates – and up nearly 8 percent against Rs 193 in the same quarter last year. The ARPU was driven by “consistent strategy of acquiring high value customers and improved realisations.
HDFC Bank AMC to buy up to 9.5% in IndusInd Bank
HDFC Bank on February 6 clarified that the RBI approval to acquire a stake in IndusInd Bank does not pertain to HDFC Bank itself. The term ‘Bank’ in the disclosure should be interpreted as HDFC Bank Group, it clarified to CNBC-Awaaz.
The RBI approval for acquiring a stake in IndusInd Bank is intended for investments by HDFC Bank’s Asset Management Company (AMC) and Life Insurance arms. It was emphasised that as a promoter, HDFC Bank had to seek approvals from RBI for these transactions.
IndusInd Bank late on Monday evening informed stock exchanges that the RBI has allowed HDFC Bank to acquire an “aggregate holding of up to 9.50 percent of the paid-up share capital or voting rights” in the lender.
IndusInd Bank said the RBI approval followed the application made by HDFC Bank to the regulator. The approval is valid for one year and if HDFC Bank fails to acquire the shareholding within that period, the approval stands cancelled.
Paytm denies violating forex norms, says company, banking arm not facing ED probe
One97 Communications, the parent entity of Paytm, on February 5 dismissed reports that claimed that the company is facing a regulatory probe to ascertain if it violated foreign exchange norms.
The company denied flouting rules that govern forex, while also clarifying that the Enforcement Directorate has not launched a probe against Paytm or its banking arm Paytm Payments Bank Limited (PPBL) for the alleged violations.
The clarification came shortly after news agency Reuters, citing two government sources, reported that the Enforcement Directorate is investigating if platforms run by Paytm were involved in violations of foreign exchange rules.
“One97 Communications Ltd (OCL) denies reports of investigation or violation of Foreign Exchange rules by the Company or its associate Paytm Payments Bank Limited,” the Vijay Shekhar Sharma-led company said in a regulatory filing.
Dollar
The dollar climbed to its highest in almost three months against nine other major currencies on Monday as traders slashed bets the Federal Reserve would aggressively cut interest rates this year after new economic data further diminished those odds.
The dollar rose against all members of the G10 grouping of currencies that are among the most liquid in the world.
The dollar index, which tracks the greenback against six other major c
Crude
Oil prices were little moved in early trading on Tuesday, as market participants assessed a visit to the Middle East by U.S. Secretary of State Antony Blinken to discuss a ceasefire offer in the region.
Blinken met Saudi Arabia’s de-facto ruler on Monday. Palestinians hope the visit will clinch a truce before a threatened Israeli assault on Rafah, a border city where about half the Gaza Strip population is sheltering.
The ceasefire offer, delivered to Hamas last week by Qatari and Egyptian mediators, awaits a reply from militants who say they want more guarantees it will bring an end to the four-month-old war.
Brent crude futures were down 2 cents at $77.97 a barrel, while U.S. West Texas Intermediate crude futures edged down 3 cents to $72.75. Both contracts gained nearly 1 percent on Monday, rising for the first time in four sessions.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 518.88 crore, while domestic institutional investors (DIIs) sold Rs 1,188.68 crore worth of stocks on February 5, provisional data from the NSE showed.
Stocks under F&O ban on NSE
The NSE has added National Aluminium Company and UPL to the F&O ban list for February 6, while retaining Hindustan Copper, India Cements, Indus Towers, and Zee Entertainment Enterprises to the said list. SAIL was removed from the said list.
With inputs from Reuters and other agencies
