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Post Session: Quick Review
Feb-03-2023

After ending flat for two successive sessions, Indian benchmarks successfully finished last trading day of week with gains over a percent. Indices traded volatile since morning but in afternoon session sentiments got more encouragement to add points. Recovery in Adani Group companies’ stocks helped the markets to end Friday’s session near day’s high points. Besides, Banking and Financial Services’ stocks also grabbed attention from markets participants in today’s session. Markets men were also hoping that the global rate hiking cycle would end soon. Traders were also looking ahead to the release of the Labor Department's closely watched monthly jobs report later in the day.

Mirroring sharp gains on Wall Street overnight, indices made positive start amid optimism over a pause in Federal Reserve interest rate hikes. But, markets further maintained volatility in positive trend. Traders digested the interest rate moves by the Bank of England and the European Central Bank. The BoE and the ECB, both raised their interest rates by 50 basis points and signaled more hikes in the coming months. In afternoon session, indices spiked up to trade at day’s high points, as investors went for beaten down but fundamentally strong stocks.

On the global front, European markets were trading mostly in red as investors poured over disappointing results from major tech sector players and looked ahead to key U.S. labor market data. Asian markets ended mostly in green despite U.S. tech giants reported disappointing earnings and investors awaited key U.S. jobs data later in the day for additional clues on the health of the world's economy and rate outlook. Back home, India’s services sector growth eased in the month of January but signalled an eighteenth successive monthly rise in output, amid favourable demand conditions and ongoing increases in new work. As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index eased to 57.2 in January from 58.5 in December.

The BSE Sensex ended at 60,841.88, up by 909.64 points or 1.52% after trading in a range of 60,013.06 and 60,905.34. There were 26 stocks advancing against 4 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 0.04%, while Small cap index was down by 0.47%. (Provisional)

The top gaining sectoral indices on the BSE were Consumer Durables up by 2.61%, Bankex up by 2.02%, Auto up by 1.24%, PSU up by 0.82% and Telecom was up by 0.75%, while Utilities down by 2.79%, Power down by 2.24%, Healthcare down by 0.93%, Oil & Gas down by 0.88% and Energy was down by 0.67% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Titan Company up by 6.94%, Bajaj Finance up by 5.09%, Bajaj Finserv up by 5.04%, HDFC Bank up by 3.54% and SBI up by 3.22%. On the flip side, NTPC down by 1.32%, Wipro down by 0.51%, HCL Tech down by 0.45% and Tech Mahindra down by 0.22% were the top losers. (Provisional)

Meanwhile, Central Board of Indirect Taxes and Customs (CBIC) chief Vivek Johri has said that monthly GST collection is expected to average around Rs 1.50 lakh crore and it will be the ‘new normal’ in FY24 in view of concerted efforts to check evasion and bring new businesses within the GST net. He said the GST and Customs revenue collection numbers as given in Budget 2023-24 are realistic based on nominal GDP growth and import trends, respectively and the indirect tax collection target set for next fiscal will be achieved.

CBIC chief said CBIC has drawn up a strategy to augment GST mop-up by way of stricter audit and scrutiny of tax returns, enforcement action against fake billing and input tax credit claims. He said ‘we will focus on increasing the taxpayer base. Even though the growth in taxpayer base has been quite good, we have more than doubled the number of taxpayers from the time we started GST, we feel there are some sectors which have much more potential to increase the taxpayer population. So I feel we have not reached the saturation level and there is scope for increasing the revenue'.

Johri noted that GST collection in current fiscal year (FY23) is likely to average around Rs 1.45 lakh crore. The mop-up in January came in as the second highest ever at around Rs 1.56 lakh crore, the highest being Rs 1.68 lakh crore in April 2022. The 2023-24 Budget has projected 12 per cent growth in GST revenue at Rs 9.56 lakh crore. The revised estimate for current fiscal pegs GST mop-up at Rs 8.54 lakh crore, up from Rs 7.80 lakh crore originally estimated in the Budget last year.

The CNX Nifty ended at 17,854.05, up by 243.65 points or 1.38% after trading in a range of 17,584.20 and 17,870.30. There were 38 stocks advancing against 12 stocks declining on the index. (Provisional)

The top gainers on Nifty were Adani Ports up by 7.87%, Titan Company up by 6.72%, Bajaj Finance up by 5.19%, Bajaj Finserv up by 5.15% and HDFC Bank up by 3.46%. On the flip side, Divi's Lab down by 11.71%, BPCL down by 1.66%, Tata Consumer down by 1.43%, Hindalco down by 1.24% and NTPC down by 0.81% were the top losers. (Provisional)

European markets were trading mostly in red, France’s CAC fell 28.01 points or 0.39% to 7,138.26 and Germany’s DAX was down by 106.91 points or 0.69% to 15,402.28. On the flip side, UK’s FTSE 100 was up by 17.11 points or 0.22% to 7,837.27.

Asian markets settled mostly higher on Friday ahead of key US jobs data later in the day, which could provide further clues on the health of American economy and interest rate outlook. Japanese shares gained after a survey showed Japan's services sector activity grew at its fastest pace in three months in January. Seoul shares rose on robust foreign investor buying. However, Chinese shares declined even as China's services activity expanded for the first time in five months in January.

Asian Indices

Last Trade            

Change in Points

Change in %  

Shanghai Composite

3,263.41-22.26-0.68

Hang Seng

21,660.47-297.89-1.38

Jakarta Composite

6,911.7321.160.31

KLSE Composite

1,490.47

0.670.04

Nikkei 225

27,509.46

107.410.39

Straits Times

3,384.2920.610.61

KOSPI Composite

2,480.40

11.520.46

Taiwan Weighted

15,602.667.500.05
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