Sensex, Nifty edge higher ahead of Budget; Godrej Consumer jumps 9%; Paytm crashes 20%

Nifty and Others: Bombay Stock Exchange (BSE) 500 stocks such as Godrej Consumer Products, Infibeam, Data Patterns and Dixon jumped up to 9.18 per cent. In contrast, Paytm, Gravita, KIOCL and CE Info Systems cracked up to 20 per cent.

SUMMARY

• On the stock-specific front, Eicher Motors was the top gainer in the Nifty pack as the stock soared 2.76 per cent.
• M&M, Maruti, BPCL and Cipla rose up to 2.26 per cent.
• In contrast, Grasim Industries, L&T, JSW Steel, LTIMindtree and ICICI Bank were among the top losers on Nifty50.

Indian equity benchmarks traded slightly higher in Thursday’s early deals ahead of the Budget 2024 presentation. The domestic indices were up today led by gains in automobile and FMCG stocks. The 30-share Bombay Stock Exchange (BSE) Sensex rose 86 points or 0.12 per cent to trade at 71,838, while the NSE Nifty was up 28 points or 0.13 per cent to trade at 21,753. Broader markets (mid- and small-cap shares) were mixed as Nifty Midcap 100 fell 0.23 per cent and small-cap climbed 0.21 per cent.

Bombay Stock Exchange (BSE) 500 stocks such as Godrej Consumer Products, Infibeam Avenues, Data Patterns and Dixon jumped up to 9.18 per cent. In contrast, Paytm, Gravita, KIOCL and CE Info Systems cracked up to 20 per cent.

On the global front, Asian markets were subdued after the US Federal Reserve kept rates unchanged but signalled that rate cuts would not be appropriate until inflation cools off further.

Back home, foreign institutional investors (FIIs) bought Rs 1,660.72 crore worth of shares on a net basis during the previous session and domestic institutional investors (DIIs) purchased Rs 2,542.93 crore worth of shares, exchange data showed.

Six out of the 15 sector gauges — compiled by the NSE — were trading in the green. Sub-indexes Nifty Auto and Nifty FMCG were outperforming the NSE platform by rising as much as 0.82 per cent and 0.48 per cent, respectively. Nifty Consumer Durables slipped 0.53 per cent.

On the stock-specific front, Eicher Motors was the top gainer in the Nifty pack as the stock soared 2.76 per cent to trade at Rs 3,945.55. M&M, Maruti, BPCL and Cipla rose up to 2.26 per cent.

In contrast, Grasim Industries, L&T, JSW Steel, LTIMindtree and ICICI Bank were among the top losers on Nifty50.

The overall market breadth was strong as 1,746 shares were advancing while 1,283 were declining on Bombay Stock Exchange (BSE).

On the 30-share Bombay Stock Exchange (BSE) index, TCS, Maruti, M&M, ITC, Infosys, PowerGrid, NTPC and HUL were among the top gainers.

Nifty and Others:

GIFT Nifty

Trends in the GIFT Nifty indicate a firm start for the broader index in India, with a gain of 35 points. The Nifty futures were trading around the 21,822 level.

US Markets

US stocks tumbled on the last trading day in January after the Federal Reserve held interest rates steady while dashing hopes for interest rate cut as soon as March.

The three major US stock indices were already weighed down by weakness in tech and tech-adjacent megacap stocks the day after disappointing Alphabet results.

All three extended losses after the Fed’s announcement and Chair Jerome Powell’s subsequent press conference. The S&P 500 closed with its steepest daily loss since September 21. All three indices still notched gains for the month.

As expected, the Federal Open Markets Committee (FOMC) left its key policy rate unchanged at 5.25-5.50 percent against a backdrop of gradually cooling inflation and a resilient economy.

The Dow Jones Industrial Average fell 317.01 points, or 0.82 percent, to 38,150.30, the S&P 500 lost 79.32 points, or 1.61 percent, to 4,845.65 and the Nasdaq Composite lost 345.88 points, or 2.23 percent, to 15,164.01.

Asian Markets

Asian markets were trading mixed in the early trade on Thursday with Nikkei index down 0.7 percent and Kospi index up 0.8 percent.

US Fed keeps rates steady

Treading on expected lines, the Federal Open Market Committee (FOMC) of the US Federal Reserve Committee decided to maintain the target range for the federal funds rate at 5.25 to 5.5 percent. This is the fourth straight meeting when the Fed has kept rates unchanged.

“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are moving into better balance. The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks,” the Fed said in its statement.

The Fed believes that the inflation has come down from its highs but “remains elevated”. It added that unless there are clear indication that inflation is moving sustainably toward 2 percent, it will not be “appropriate to reduce the target range.”

GST collections in January at Rs 1.72 lakh crore, second-highest ever

The government’s Goods and Services Tax (GST) collections rose to Rs 1.72 lakh crore in January, according to provisional data released by the Ministry of Finance on January 31.

At Rs 1.72 lakh crore, the January GST collections is the second-highest ever and is 4.4 percent higher than the Rs 1.65 lakh crore collected in December 2023. It also takes the average monthly collection in 2023-24 to Rs 1.67 lakh crore.

Compared to the GST collected till 5pm on January 31, 2023 – or Rs 1.56 lakh crore – the provisional number for the current month is 10.4 percent higher. However, when compared to the final figure of Rs 1.58 lakh crore for January 2023, the GST collected as of 5pm on January 31 is up 9.3 percent.

India’s core sector growth slumps to 14-month low of 3.8% in December

India’s eight core sectors posted a growth of 3.8 percent in December, according to data released by the Ministry of Commerce and Industry on January 31.

At 3.8 percent, the growth in India’s eight key infrastructure industries – coal, crude oil, steel, cement, electricity, fertilisers, refinery products and natural gas – in the last month of 2023 is the lowest in 14 months.

In November 2023, core sector growth had printed in at 7.8 percent. The commerce ministry, on January 31, revised this figure slightly up to 7.9 percent. The output of the eight core sectors had grown by 8.3 percent in December 2022.

In April-December, the output of India’s eight core industries was 8.1 percent higher year-on-year, the same as in the first nine months of 2022-23.

RBI asks Paytm Payments Bank to stop onboarding new customers

The Reserve Bank of India (RBI) on January 31 barred Paytm Payments Bank from onboarding new customers with immediate effect.

The central bank said a Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action.

No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime, RBI said.

The RBI, however, clarified that the withdrawal or utilisation of balances by the lender’s customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, upto their available balance.

India’s April-December fiscal deficit at Rs 9.82 lakh crore, 55% of FY24 target

The Central government’s fiscal deficit widened to Rs 9.82 lakh crore in April-December from Rs 9.07 lakh crore in April-November, data released by the Controller General of Accounts on January 31 showed.

At Rs 9.82 lakh crore, fiscal deficit for the first nine months of the current financial year accounts for 55.0 percent of the full-year target of Rs 17.87 lakh crore.

The fiscal deficit in April-December 2022 was 59.8 percent of the target for 2022-23.

Dollar

The dollar index pared losses Wednesday after the Federal Reserve left interest rates unchanged and dropped a longstanding reference to possible further hikes in borrowing costs.

The dollar index was last flat on the day at 103.39. The euro was last down 0.16% on the day at $1.08275. The greenback pared losses against the yen and was last down 0.66% on the day at 146.72 yen.

Gold Prices

Gold prices reversed course and edged lower on Wednesday after the Federal Reserve Chair Jerome Powell pushed back strongly against expectations of a U.S. rate cut by March.

Spot gold eased 0.1% at $2,034.37 per ounce by 03:10 p.m. ET (2010 GMT) after rising as much as 1% earlier in the session. Bullion was down 1.3 percent this month but have held above the $2,000 per ounce psychological level so far this year.

US gold futures settled 0.8 percent higher at $2067.4.

Crude

Oil prices settled lower on Wednesday, pressured by low economic activity in leading crude importer China and a surprise build in U.S. crude inventories as producers ramped up output following frigid weather this month.

Brent crude futures for March, which expire on Wednesday, settled down $1.16, or about 1.4 percent, to $81.71 a barrel while the more actively traded April contract settled down $1.89, or about 2.3 percent, at $80.55.

US West Texas Intermediate crude futures settled down $1.97, or roughly 2.5 percent, to $75.85. Both benchmarks fell by more than $2 a barrel earlier in the session.

FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 1,660.72 crore, while domestic institutional investors (DIIs) purchased Rs 2,542.93 crore worth of stocks on January 31, provisional data from the NSE showed.

Stocks under F&O ban on NSE

The NSE has added SAIL to the F&O ban list for February 1, while retaining Zee Entertainment Enterprises to the said list.

With Thanks Reference to: https://www.businesstoday.in/markets/market-commentary/story/sensex-nifty-edge-higher-ahead-of-budget-godrej-consumer-jumps-9-paytm-crashes-20-415681-2024-02-01 and https://www.moneycontrol.com/news/business/markets/stock-market-today-top-10-things-to-know-before-the-market-opens-222-12164251.html