RBI keeps repo rate unchanged, Tata Steel's profits up 700%, & more - Groww Digest

Friday, 6 February 2026

Groww Digest

Feb 06, 2026

Markets opened below yesterday’s closing point.

FMCG stocks and consumer durables stocks rose the most today. IT stocks and pharma stocks fell the most.

Global markets: US markets and most Asian markets fell. Most European markets rose (as of 6 pm IST).

News

The RBI has kept the repo rate unchanged at 5.25%.
India’s forex reserves rose by $14.36 billion to $723.77 billion in the week that ended on 30 Jan.
India has signed MoUs and agreements with 23 countries for cooperation on its Digital Public Infrastructure to expand the global adoption of India’s digital governance and payment systems.
The RBI announced measures to strengthen customer protection (including compensation for small-value frauds), ease norms for certain NBFCs, and boost credit access for MSMEs by raising collateral-free loan limits.
SEBI has proposed easing rules for InvITs and REITs to give them more operational flexibility, including letting them retain holdings in SPVs after concessions agreements end and broadening the types of liquid mutual funds they can invest in.

Stocks Updates

Tata Steel: net profit rose over 700% year-on-year to Rs 2,689 crore in the Oct-Dec quarter.
Power Finance Corp: board approved an in-principle merger with REC following the Union Budget 2026 proposal to restructure public sector NBFCs.
Samvardhana Motherson: a company subsidiary will launch a tender offer on 9 Feb to acquire a controlling stake in Japan’s Yutaka Giken as part of its overseas acquisition plan. Yutaka Giken is an automotive components manufacturer.
Bharat Electronics: received orders worth Rs 581 crore to supply communication equipment, radar warning receivers, tank sub systems, etc.
Titan: completed the acquisition of a 67% stake in the Damas Jewellery business in GCC countries through its UAE subsidiary.
Marico: completed the acquisition of a 60% stake in Cosmix Wellness, making it a subsidiary.
Siemens: net profit fell 55% year-on-year to Rs 277 crore in the Oct-Dec quarter.
Shree Cement: net profit rose 38% year-on-year to Rs 267 crore in the Oct-Dec quarter.

Word of the Day

REIT

It is a company that owns, manages, or finances income-generating real estate like offices, malls or apartments

It stands for Real Estate Investment Trust.

Investors can invest in a REIT and earn a share of the rental income or capital gains instead of buying property directly.

At least 90% of their taxable income is distributed to shareholders as dividend.

Most REITs are traded on stock exchanges, so you can buy or sell them like shares.

6 Day Course

Theme: common ways to cook books
Day 5: Friday

There are many other industry specific ways to cook the books.

While the art of finding these flaws is a long chapter in itself, there are simpler ways to determine if a company is cooking its books.

Though not fully dependable, investors can observe the past record of the management.

A CFO and CEO with a history of correct and clean behaviour are unlikely to let anyone in their company cook the books.

Executives with a history of playing with numbers or words often are more unreliable and require more scrutiny of their books.

Popular stocks of big companies are often scrutinised more by independent investors who understand the businesses and are able to ask the right questions.

This becomes a greater challenge in case of smaller companies which attract less attention from investors.

Cooking books and manipulating is a cat-and-mouse game with regulators catching up with the newest ways of manipulation.

So, the stock markets are always becoming more transparent.

Still, ill-intended companies manage to find newer loopholes.

Featured Question

Q. “Why Index funds not beat bench mark?”

Index funds try to match the returns of an index.

For example, a Nifty 50 index fund aims to invest in the same 50 stocks as the Nifty 50. Investors expect similar returns as the Nifty 50’s performance.

However, mutual funds charge you money to manage your funds.

They also have to maintain a part of their investment as cash to handle withdrawals, so they are not fully invested.

This is the reason why their returns usually differ slightly from the index.