Indian share markets ended lower on Wednesday after Reserve Bank of India kept the key policy rate unchanged at 6% for the third consecutive time in view of firming inflation. Reverse Repo rate was also maintained at 5.75%.

The Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel, had last reduced the benchmark lending rate by 0.25 percentage points to 6% last August, bringing it to a 6-year low.

In its December review, the MPC had kept the benchmark interest rate unchanged on concerns of a possible price rise but had left the door open for a rate cut in future.

At the closing bell, BSE Sensex closed 113 points down and NSE Nifty settled 21 points down. Meanwhile, Midcap and Smallcap indices outperformed the Sensex by rising 0.43% and 1.95%, respectively.

Among the sectoral indices on BSE, oil and gas, realty, energy and healthcare led the gains, while telecom and IT declined.

Top Stocks in Focus

ICICI Bank share price will be focus as it has received an approval for domestic fund raising by way of issuance of senior unsecured long term bonds/ Basel III compliant unsecured subordinated perpetual Additional Tier 1 bonds in single/multiple tranches on private placement basis.

Eicher Motors' reported a consolidated net profit growth of 24.5% year-on-year at Rs 5.2 billion. Revenue from operations grew by 23.7% to Rs 22.7 billion in Q3 compared to Rs 18.4 billion in year-ago.

Idea Cellular share price will hog limelight after the telecom major suspended its interconnect services with Aircel, due to non-payment of dues.

Oil Minister Dharmendra Pradhan on the issue of splitting gas utility GAIL said a decade-old policy provides for a natural gas transporter not having any interest in marketing of the fuel. Pradhan stated that splitting gas utility GAIL India Ltd by separating its gas marketing business from its primary role as a transporter of gas.

Cipla share price will be in focus as it posted an about 7% rise in third-quarter net profit on Wednesday. Net profit rose to Rs 4 billion (US$62.5 million) in the quarter ended 31 December, from Rs 3.8 billion a year earlier.

ESAB India has received an approval for the acquisition of the welding business of Sandvik Asia, Pune. The acquisition is by way of business transfer agreement of speciality alloys business only.

Global Stock Market Drivers

Markets in Asia were flat or down late Wednesday as they failed to sustain a dramatic stock market recovery in the United States. Though they started strongly out of the gate, investors grew more cautious as the trading day went on.

Stocks in Tokyo ended about where they'd begun, while Hong Kong's were down modestly late in the day and South Korean shares finished lower.

The performance set the stage for an uncertain beginning to Wall Street trading on Wednesday. Futures contracts that predict how the United States stock market will move were trading modestly lower late in the Asian trading day, while European shares opened a bit higher, though not enough to recoup the previous day's losses.

Market participants will watch global trading closely after what has already been a topsy-turvy week.

Market participants had grown skittish in recent days over the potential for inflation in the United States. Inflation could spur the Federal Reserve to raise interest rates faster than many had expected, essentially making it more expensive for people around the world to borrow and pay back loans in American dollars.

From the Cryptocurrencies Space

Cryptocurrencies are trading in the green today after a tumultuous seven days.

The total market capitalization of all cryptocurrencies has increased 25% to US$352 billion in the past one day, as per data provider CoinMarketCap. The total value had dropped to US$276 billion Tuesday - the lowest level since 26 November.

Though a welcome development, that figure is still down at least 30% from last Wednesday's high above US$500 billion. Further, it's still 57% down compared to the record high of US$830 billion seen in January.

Bitcoin, the world's largest cryptocurrency by market cap, has appreciated by 22% in the past one day, according to CoinMarketCap. Yesterday, CoinDesk's Bitcoin Price Index (BPI) was showing the average price across global exchanges at US$7,845.

Bitcoin and cryptocurrencies are a curious bunch. They have no central bank backing and have not yet been regulated. Yet they seem to have found favour among a large number of people, with demand for them growing every day. There are over 1000 cryptocurrencies in existence today, with new ones being added to the list every day.

IPO Buzz

Capricorn Food Products India Ltd on Tuesday filed the draft red herring prospectus (DRHP) for its initial public offering (IPO).

The share sale will comprise a fresh issue worth Rs 1.71 billion, while the promoters and private equity fund Quadria Capital will sell 7.64 million shares in an offer for sale. The share sale is expected to be for around Rs 5 billion.

Meanwhile, ICICI Securities, a subsidiary of ICICI Bank, has received markets regulator's go-ahead to raise an estimated Rs 30-Rs 40 billion through an initial public offering.

Speaking of IPOs, the demand for IPOs had reached sky-high levels last year.

One shall note that more than 70% of the IPOs listed in 2007 and 2008 are in the red, even today when the Sensex is at an all-time high.

Results Corner

ACC, Andhra Bank, Balrampur Chini Mills, Bharat Forge, BHEL, Bombay Dyeing, Cadila Healthcare, Glenmark Pharma, Page Industries, Tata Communications among others will announce their quarterly results today.

Oil Prices

Oil prices rose on Wednesday, lifted by a report that US crude inventories fell last week.

Brent crude futures were at US$67.44 per barrel, up 58 cents, or 0.9%, from the previous close. US West Texas Intermediate (WTI) crude futures were at US$63.88 a barrel. That was up 49 cents, or 0.8%, from their last settlement.

The market was supported by a report by the American Petroleum Institute (API) on Tuesday saying that US crude inventories fell by 1.1 million barrels in the week to 2 February to 418.4 million barrels.

Indian Share Market Update: Top Gainers and Losers