Slowness started from noon, As the third quarter results in the US were satisfactory, it did not affect our market. Similarly, the news that foreign corporate investors bought our shares to the tune of Rs 92.52 crore on February 6 also gave hope.
It is good news when Finance Minister Nirmala Sitharaman said that through the measures taken by the central government to prevent the price of essential commodities from rising, our retail sector has come within the range of bearing inflation. But our markets tumbled over the afternoon due to a succession of news.
In particular, many people doubt the central government’s prediction that our fiscal deficit will be 5.10 percent of GDP in the next financial year. In particular, research firm ‘Pitch Ratings’ has reported that this rate will increase by 0.30 percent.
It is a matter of concern that various industry bodies, which had predicted in October last year that our inflation would be 4.04 per cent in the next one year, have raised it to 4.58 per cent in December 2023.
The results of the Monetary Policy Committee are going to be released today. Traders and investors are confident that interest rates will not rise. But the tone and words in Shaktikanta Das speech are important. In particular, traders are trying to get a hint of when he will start cutting interest rates. So, many people went into profit making with the mentality that it is enough to earn.
At the end of market hours, IT stocks declined, while public sector banks, metals, power, pharmaceuticals and real estate stocks gained.