INDIA STOCKS-Indian shares rise ahead of RBI's rate decision; Adani stocks arrest slide

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Updates opening levels) BENGALURU, Feb 7 (Reuters) - Indian shares rose on Tuesday, a day ahead of the Reserve Bank of India's monetary policy decision, in which the central bank is expected to pause its tightening cycle after a rate hike that the market has already baked in.


The Nifty 50 index was up 0.14% to 17,788.95, while the S&P BSE Sensex rose 0.11% to 60,578.67, as of 09:29 a.m. IST. The RBI is expected to pause after Wednesday's expected 25 basis points rate hike as it tries to support economic growth and tame inflation. Thirty-four of Nifty 50 stocks advanced with Adani Enterprises and Adani Ports among the top gainers. Most of the Adani group stocks, including Adani Transmission , Adani Wilmar gained after the National Stock Exchange revised circuit limits of Adani Green and Adani Transmission to 5% from 10%, to prevent large movements in price of stocks in a very short time. Meanwhile JP Morgan said that the group remained eligible for inclusion in some of its key indices. The rebound comes after the recent selloff in Adani group stocks, which has caused a rout of over $100 billion in market capitalisation after the U.S. short seller Hindenburg's report on Jan. 24.


Metal stocks lost over 1% dragged by Tata Steel after the company reported a loss in third quarter on soft demand. Hindalco also fell after its U.S. subsidiary Novelis reported decline in consolidated profit in December quarter.


Wall Street equities extended their fall overnight after data on Friday showed resilient U.S. jobs markets that heightened concerns that the U.S. Federal Reserve will keep rates higher for longer. Asian markets rebounded on Tuesday after a sharp slide in the previous session, with the MSCI's broadest index of Asia-Pacific shares outside Japan adding 0.45%. ($1 = 82.7220 Indian rupees) (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Nivedita Bhattacharjee)

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