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Nifty Futures Indicate Weak Start Ahead of Budget 2021
Market updates: Sensex rose over 450 points ahead of Union Budget 2021.
Budget 2021: The S&P BSE Sensex and NSE Nifty 50 indexes extended gains as Finance Minister Nirmala Sitharaman started presenting Budget 2021 led by gains in ICICI Bank, HDFC, HDFC Bank, Infosys, Reliance Industries and IndusInd Bank. The Sensex rose as much as 998 points and Nifty 50 index moved above its important psychological level of 13,900. In Friday’s trading session, the benchmarks fell for sixth session in a row as traders and investors lightened their positions ahead of the Budget 2021, analysts said. Markets are likely to remain volatile during the session as they would react to the announcements made by the Finance Minister. Buying was visible across sectors as eight of 11 sector gauges compiled by the National Stock Exchange were trading higher led by nearly 2 per cent gains in Nifty Private Bank and Bank indexes. On the flipside, IT, FMCG and pharma shares were witnessing a mild selling pressure. Mid- and small-cap shares were trading on a mixed note as Nifty Midcap 100 index fell 0.2 per cent while Nifty Smallcap 100 index 0.23 per cent.
Here are LIVE updates of today’s market session:
Government proposes to launch Life Insurance Corporation’s initial public offering (IPO) in financial year 2021-22.
Finance Minister Nirmala Sitharaman proposes sharp increase in capital expenditure for next fiscal at Rs 5.54 lakh crore, up from Rs 4.39 lakh crore last year.
Shares of insurance companies rose after Finance Minister approved raising foreign direct investment limit in insurance sector to 74 per cent from 49 per cent.
- HDFC Life rose 0.83%
- ICICI Prudential advanced 0.54%
Finance Minister Nirmala Sitharaman proposed to set up Development Financial Institution. Initially capital of Rs 20,000 crore will be provided to the institution and it will have a loan portfolio of Rs 5 lakh crore in three years.
Shares of auto companies surged after the government announced the scrappage policy for vehicles. Finance Minister Nirmala Sitharaman announced a voluntary vehicle scrapping policy to phase out old vehicles. Vehicles will undergo fitness tests after 20 years for passenger vehicles and 15 years for commercial vehicles, she said.
Top gainers in auto space:
- Mahindra & Mahindra up 2.2%
- Ashok Leyland up 1.9%
- MRF up 1.8%
- Tata Motors up 1.62%
- Bosch up 1.45%
- Maruti Suzuki up 1.45%
Finance Minister while presenting Budget 2021 announced earmarking Rs 64,000 crore For PM Aaatmanirbhar Swasthya scheme. The scheme will provide support to over 17,000 rural and 11,000 urban health centres.
Following the finance minister’s announcement healthcare stocks witnessed buying interest.
- Apollo Hospital up 2.5%
- Fortis Healthcare up 4%
- Metropolis up 2.73%
- Thyrocare up 2.15%
- Shalby Hospitals up 6%
The gauge of banking shares – Nifty Bank index – rose as much as 767 points to hit an intraday high of 31,332.90. All the 12 banking stocks in the nifty Bank index were trading higher.
Here are top gainers in banking index:
- IndusInd Bank up 9%
- ICICI Bank up 5.2%
- HDFC Bank up 2.2%
- Bank of Baroda up 1.9%
- State Bank of India 1.45%
Shares of Maruti Suzuki rose 1 per cent to Rs 7,286 after it reported January monthly sales numbers.
Maruti Suzuki January sales highlights:
- Total domestic sales and exports rise 4.3% to 160,752 units versus 154,123 units (Y-o-Y)
- Mini segment sales decline 2.8% to 25,153 units
- Compact segment sales decline 8.8% to 76,395 units
- Mid-size car sales rise 61.3% to 1,347 units
- Total domestic sales rise 0.2% to 142,604 units
The rupee appreciated by 8 paise to 72.88 against the US dollar in opening trade ahead of the Union Budget 2021-22 presentation in parliament. At the interbank forex market, the domestic unit opened at 72.89 against the US dollar, then inched higher to 72.88, registering a rise of 8 paise over its previous close.
Union Minister of State for Finance Anurag Thakur on Monday asserted that the budget 2021-22 will be in accordance with people’s expectations and added that the government is working towards a self-reliant India and making its economy grow.
“The Budget will be in accordance with people’s expectations. Sabka Saath, Sabka Vikas, Sabka Vishwas is the agenda of the PM Modi’s government. The government which functions on the mantra of ”Sabka Saath, Sabka Vikas, Sabka Vishwas” gave a new direction to India by announcing the Aatmanirbhar package, protecting it from the pandemic and bringing the economy back on track swiftly,” Mr Thakur told ANI.
The Sensex and Nifty 50 extended gains ahead of presentation of Union Budget 2021 by Finance Minister Nirmala Sitharaman. As of 10:30 am, the Sensex rose 430 points to 46,716 and Nifty 50 index rose 108 points to 13,742.
Top Nifty gainers:
- IndusInd Bank up 7.5%
- ICICI Bank up 5.2%
- HDFC up 3.2%
- Larsen & Toubro up 2.1%
- BPCL up 2%
Top Nifty losers:
- UPL down 8%
- Dr Reddy’s Labs down 3.51%
- Tech Mahindra down 2.86%
- Wipro down 1.8%
- Divi’s Labs down 1.5%
India’s annual budget on Monday will be Prime Minister Narendra Modi’s chance to spur demand and investments in an economy cratered by the world’s second-biggest coronavirus outbreak.
IndusInd Bank was the top Sensex performer, up 7.06 per cent, followed by ICICI Bank, Sun Pharma, Housing Development Corporation (HDFC), Titan Company and Infosys.
Finance Minister Nirmala Sitharaman will present the Union Budget 2021 at 11 am. She will read out the Budget 2021 at the Parliament through a tab, instead of the traditional ‘bahi khata’.
Shares of Tata Motors declined 0.2 per cent to Rs 262 after it announced December quarter earnings. Tata Motors net profit rose 67 per cent to Rs 2,906 crore compared with Rs 1,738 crore during the previous quarter.
Its revenue from operation rose 5.5 per cent to Rs 75,653.79 crore as against Rs 71,676.07 crore in the same quarter last year.
Shares of ICICI Bank rose as much as 5.83 per cent to hit record high of Rs 568.35 on the BSE after the Mumbai-based lender reported a 19 per cent growth in net profit to Rs 4,940 crore for the October-December quarter in the current financial year, as compared to Rs 4,146 crore in the year-ago period. The private sector lender reported growth in domestic and retail loans amid strong credit demand in the third quarter. ICICI Bank posted a net profit of Rs 4,251 crore in the second quarter of the current financial year.
The net non-performing asset (NPA) ratio was 0.63 per cent in the October-December quarter. The bank said that, not accounting for the Supreme Court’s order on recognition of bad loans, the net NPA ratio would have been at 1.26 per cent, instead of 1.12 per cent in the previous quarter of the financial year.
Six of 11 sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty Bank index’s 1.3 per cent gain. Financial Services, private banking indexes were also trading over 1 per cent higher. On the flipside, pharma, IT and select realty stock were witnessing selling pressure.
Tata Motors
Tata Motors’ net profit rose 67 per cent to Rs 2,906.5 crore in the December quarter from Rs 1,738.3 crore, while revenue rose 5.5 percent to Rs 75,653.79 crore from Rs 71,676.07 crore.
Tech Mahindra
Tech Mahindra’s consolidated net profit in the December quarter rose 23 per cent to Rs 1,309.8 crore from Rs 1,064.6 crore, while revenue increased 2.9 percent to Rs 9,647.1 crore from Rs 9,371.8 crore.
ICICI Bank
ICICI Bank’s net profit in Q3FY21 rose 19.1 percent to Rs 4,939.6 crore from Rs 4,146.5 crore, while net interest income rose 16 percent to Rs 9,912.5 crore from Rs 8,545.3 crore, YoY.
Cipla
Cipla reported sharply higher net profit at Rs 748.2 crore in Q3FY21 as against Rs 351 crore in Q3FY20, while revenue jumped 18.2 percent to Rs 5,168.7 crore from Rs 4,371 crore, YoY.
Vedanta
Vedanta reported higher profit at Rs 4,224 crore in Q3FY21 as against Rs 2,665 crore in Q3FY20, while revenue increased to Rs 22,498 crore from Rs 21,126 crore, YoY.
The foreign institutional investors sold shares worth Rs 5,930.66 crore on Friday ahead of the Budget 2021 while domestic institutional investors bought shares worth Rs 2,443 crore.
The FIIs bought shares worth Rs 1.70 lakh crore in calendar year 2020.
The Budget day could therefore turn out into a volatile session for the markets. The benchmark indices could swing wildly in either direction, depending on budgetary announcements.
HDFC Securities has therefore advised investors who are fully invested, to hedge their portfolio, either fully or partly, ahead of Budget Day by purchasing Nifty put options. Hedging is akin to an insurance policy and comes at a cost i.e. the premium that is paid for purchasing the put options. But the gains made in put options, in case of a market downside, would at least partly compensate for erosion in value of the stock portfolio.
January GST Revenue At Record High Of Rs 1.2 Lakh Crore
Goods and services tax or GST revenue collected in January stood at Rs 1.19 lakh crore, the finance ministry said on Sunday. The previous month’s collection was Rs 1.15 lakh crore.
India’s Foreign Exchange Reserves Rose By $1.091 Billion In Week Ended January 22
India’s foreign exchange reserves rose by $1.091 billion to $585.334 billion in the week ended January 22, RBI data showed
Asian shares tried to rally on Monday as Wall Street continued to struggle with doubts about vaccine rollouts and economic recovery, while silver surged as newly empowered retail investors turned speculative eyes to precious metals.
MSCI’s broadest index of Asia-Pacific shares outside Japan recouped early losses to rise 0.7 per cent, bouncing after four straight sessions of losses.
As of 7:40 am, the Nifty futures on the Singapore Exchange rose 0.17 per cent or 24 points to 13,744.
