Stock Market HIGHLIGHTS: Sensex ends 49 pts higher, Nifty50 at 17,662 ahead of Budget 2023; Adani FPO fully subscribed
Stock Market HIGHLIGHTS: Indian equity benchmarks Sensex and Nifty50 inched higher on Tuesday, extending gains to a second straight day, a day before the presentation of Union Budget 2023 in Parliament by Finance Minister Nirmala Sitharaman. On Tuesday, the Economic Survey — tabled by the finance minister in Parliament on January 31 — projected the country's GDP to expand 6.5 per cent in the year ending March 2024, helping India retain its position as the fastest-growing major economy despite the extraordinary set of challenges across the globe. (Catch latest updates on Economic Survey here)
Here are key things to know about the January 31 session:
1) Both headline indices finished the day 0.1 per cent higher. The Sensex gained 49.5 points to end at 59,549.9 after gyrating within a 683-point range around the flatline during the session. The Nifty50 settled at 17,662.2, up 13.2 points, having moved broadly in the 17,500-17,750 band in intraday trade.
2) Gains in auto, FMCG and financial shares pushed the headline indices higher, but losses in IT stocks limited the upside.
3) As many as 25 stocks closed higher in the Nifty50 basket, with SBI, Mahindra & Mahindra, PowerGrid, UltraTech, Adani Ports, Eicher, Bharat Petroleum, JSW Steel, Hero MotoCorp and ITC being the top gainers, rising around 2-3 per cent for the day.
4) Bajaj Finance, TCS, Tech Mahindra, Britannia, HDFC Life, Sun Pharma, Cipla, Asian Paints, Divi's and SBI Life — declining around 1-2 per cent — were the top blue-chip laggards.
5) Among heavyweights, ITC, ICICI Bank, SBI and Mahindra & Mahindra were the biggest boosts for both main gauges, whereas TCS, the HDFC twins and Bajaj Finance were the largest drags.
6) The Nifty Bank — whose 12 constituents include SBI, HDFC Bank, Kotak Mahindra Bank, ICICI Bank and Axis Bank — finished 0.7 per cent higher at 40,655.1, having moved in a range of nearly 650 points during the session.
7) Overall market breadth favoured the bulls, with an advance-decline ratio of 2:1 as 2,433 stocks rose and 1,066 fell at the end of the day on BSE.
8) The rupee depreciated by 42 paise or 0.5 per cent to end at 81.92 against the US dollar. The dollar index — which gauges the greenback against six peers other than the rupee — was up 0.2 per cent at the last count.
9) European markets began the day in the red, following mixed moves across Asia, as investors feared another round of steep hikes in benchmark interest rates by the Fed, the BoE and the ECB this week. The pan-European Stoxx 600 index was down 0.6 per cent. Analysts widely expect the Fed to announce a 25-basis-point hike on Wednesday.
10) S&P 500 futures were down half a per cent, suggesting a weak opening ahead on Wall Street.
Catch highlights of the session, market commentary and analysis, the Economic Survey, financial results, expert views, investment and trading ideas, Budget 2023 expectations and much more on Zeebiz.com's blog:
Stock Market HIGHLIGHTS: Indian equity benchmarks Sensex and Nifty50 inched higher on Tuesday, extending gains to a second straight day, a day before the presentation of Union Budget 2023 in Parliament by Finance Minister Nirmala Sitharaman. On Tuesday, the Economic Survey — tabled by the finance minister in Parliament on January 31 — projected the country's GDP to expand 6.5 per cent in the year ending March 2024, helping India retain its position as the fastest-growing major economy despite the extraordinary set of challenges across the globe. (Catch latest updates on Economic Survey here)
Here are key things to know about the January 31 session:
1) Both headline indices finished the day 0.1 per cent higher. The Sensex gained 49.5 points to end at 59,549.9 after gyrating within a 683-point range around the flatline during the session. The Nifty50 settled at 17,662.2, up 13.2 points, having moved broadly in the 17,500-17,750 band in intraday trade.
2) Gains in auto, FMCG and financial shares pushed the headline indices higher, but losses in IT stocks limited the upside.
3) As many as 25 stocks closed higher in the Nifty50 basket, with SBI, Mahindra & Mahindra, PowerGrid, UltraTech, Adani Ports, Eicher, Bharat Petroleum, JSW Steel, Hero MotoCorp and ITC being the top gainers, rising around 2-3 per cent for the day.
4) Bajaj Finance, TCS, Tech Mahindra, Britannia, HDFC Life, Sun Pharma, Cipla, Asian Paints, Divi's and SBI Life — declining around 1-2 per cent — were the top blue-chip laggards.
5) Among heavyweights, ITC, ICICI Bank, SBI and Mahindra & Mahindra were the biggest boosts for both main gauges, whereas TCS, the HDFC twins and Bajaj Finance were the largest drags.
6) The Nifty Bank — whose 12 constituents include SBI, HDFC Bank, Kotak Mahindra Bank, ICICI Bank and Axis Bank — finished 0.7 per cent higher at 40,655.1, having moved in a range of nearly 650 points during the session.
7) Overall market breadth favoured the bulls, with an advance-decline ratio of 2:1 as 2,433 stocks rose and 1,066 fell at the end of the day on BSE.
8) The rupee depreciated by 42 paise or 0.5 per cent to end at 81.92 against the US dollar. The dollar index — which gauges the greenback against six peers other than the rupee — was up 0.2 per cent at the last count.
Catch highlights of the session, market commentary and analysis, the Economic Survey, financial results, expert views, investment and trading ideas, Budget 2023 expectations and much more on Zeebiz.com's blog:
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Catch latest updates on Economic Survey 2022-23 and Union Budget 2023-24 here.
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Adani Enterprises FPO fully subscribed
The follow-on public offer (FPO) is fully subscribed, with bids for 4,63,42,780 shares as against the 4,55,06,791 shares on offer, as of provisional exchange data at 3:15 pm.
| Category | Subscription |
| Qualified institutional buyers | 97% |
| Non-institutional investors | 3.3 times |
| Retail investors | 11% |
| Employees | 52% |
| Total | 102% |
Economic Survey optimistic about healthy growth rate in medium-term led by consumption, capex: Geojit's Vinod Nair
Vinod Nair, Head of Research at Geojit Financial Services, believes economic growth can rise to as high as 7-8 percent in the future.
"The fundamentals of the Indian economy are solid, however, in the short-to-medium-term, the widening of current account deficit for an extended period is a concern that could have an implication on growth and depreciation of the rupee. For the Budget, it is going to be a challenge in 2023-24 to plan out the expenditures due to a short-term slowdown in the economy, high core inflation and fiscal deficit," he says.
Catch latest updates on Economic Survey 2022-23 and Union Budget 2023-24 here
Closing Bell | Sensex up 49 points, Nifty50 at 17,662 ahead of Budget 2023
Here's how the 30-scrip index moved in today's session:
Nifty50
Sun Pharma Q3 Results: Drug major beats analysts' estimates with 5% rise in profit, announces dividend
The stock slips deeper into the red zone after the earnings announcement, declining by as much as Rs 24.4 or 2.3 per cent to Rs 1,026.5 apiece on BSE.
Godrej Consumer Products Q3 Results | Net profit up 3.6% at Rs 546.3 crore
The FMCG giant's revenue comes in at Rs 3,598.9 crore for the October-December period, as against Rs 3,302.6 crore for the corresponding period a year ago, according to a regulatory filing.
"We delivered an all-round performance in 3Q FY 2023. Overall sales grew by 9 per cent and we witnessed a sharp sequential uplift in underlying volume growth," says GCPL Managing Director and CEO Sudhir Sitapati.
The stock holds on to the green after the earnings announcement.
Indian Oil Q3 Results | Net profit at Rs 450 crore vs loss of Rs 272 crore in previous quarter
The IOC stock trims its intraday gains after the earnings announcement.
Economic Survey | Current account deficit can worsen, needs to be monitored
Here are some other key highlights of the Economic Survey 2022-23:
- Commodity prices can stay at elevated levels globally
- Rupee weakness and Fed rate hikes key challenges
- Controlling inflation a challenge for India
Catch latest updates on Economic Survey 2022-23 and Union Budget 2023-24 here
Economic Survey | Real GDP growth estimated at 6.5% in 2023-24
For the April 2023-March 2024 year, the Economic Survey pegs real GDP growth at 6.5 per cent, and nominal GDP growth at 11 per cent.
For the current financial year, ending in March 2023, the Economic Survey estimates GDP growth at seven per cent.
Catch latest updates on Economic Survey 2022-23 and Union Budget 2023-24 here
Budget 2023 | Finance Minister Nirmala Sitharaman tables Economic Survey 2022-23 in Parliament
According to the Economic Survey, India's GDP growth is pegged at 6-6.8 per cent in the year ending March 2024.
Catch latest updates on Economic Survey 2022-23 and Union Budget 2023-24 here
How brokerages are reading Tech Mahindra Q3 results
Brokerages have lined up target prices to the tune of Rs 975-1,260 for the Tech Mahindra stock after the IT major's earnings announcement:
- CLSA maintains a 'reduce' call and raised its target price by Rs 30 to Rs 1,100
- JPMorgan continues with a 'neutral' rating with a target price of Rs 1,100
- Morgan Stanley retains an 'overweight' with a target price of Rs 1,120
- Jefferies maintains a 'hold' and raised its target for the stock by Rs 20 to Rs 1,030
- Citi retains a 'neutral' and reduces its target by Rs 15 to Rs 1,025
- HSBC maintains a 'hold' on TechM with a target of Rs 975
- Nomura maintains a 'buy' with a target of Rs 1,260
- Macquarie keeps a 'neutral' on Tech Mahindra with a target of Rs 1,110
Tech Mahindra shares under pressure after Q3 results
Tech Mahindra shares decline by as much as Rs 39.8 or 3.8 per cent to Rs 996.4 apiece on BSE, a day after the IT major reported its financial results for the quarter ended December 2022.
On Monday, India's fifth largest IT services company by sales reported a 0.9 per cent sequential increase in net profit to Rs 1,296.6 crore for the October-Decemeber period, and growth of 4.6 per cent in revenue to Rs 13,734.6 crore. The company's margin improved by 80 basis points to 12 per cent on a quarter-on-quarter basis.
According to Zee Business research, Tech Mahindra's quarterly net profit was estimated at Rs 1,300 crore, revenue at Rs 13,500 crore and margin at 11.7 per cent.
Read more on Tech Mahindra Q3 results
Buy Bharat Dynamics for long-term: Vikas Sethi
In an interaction with Zee Business Managing Editor Anil Singhvi, Vikas Sethi of Sethi Finmart suggests Bharat Dynamics as his long-term pick for a target of Rs 1,200-1,300.
BDL is a leading defence sector company and the Union Budget 2023 is likely to be positive for the entire defence space. The stock is at an attractive valuation from a fundamental perspective, he adds.
The man who rattled Asia's richest man and Indian stock market
Nathan (Nate) Anderson
On January 25, Hindenburg Research released a report that alleged the Adani Group had "engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades". The Adani group rubbished the report as a "malicious combination of selective misinformation and stale, baseless and discredited allegations".
Indian retains 'bright spot' title in IMF's global outlook
The Indian economy is expected to grow 6.1 per cent in 2023, according to the International Monetary Fund (IMF), as against its projection of 6.8 per cent for 2022.
