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Bulls take control over Dalal Street; Nifty surpasses 17,850 mark
Feb-03-2023

Bulls roared over the Dalal Street on Friday as Indian equity benchmarks ended with strong gains led by Consumer Durables, Financial Services and Banking stocks. Markets made a positive start as traders took support with Central Board of Indirect Taxes and Customs (CBIC) chief Vivek Johri’s statement 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. Some support also came with Jeremy Zook, Director and Primary Sovereign analyst for India, Fitch Ratings, stating that the government's continued emphasis on ramping up capex spending should provide a fillip to both near- and medium-term growth. He believed India is well-placed to sustain higher rates of growth in the medium-term than many of its peers, with the capex drive helping to underpin this view.

However, markets turned volatile in late morning deals, as traders got anxious with provisional data available on the NSE showing that foreign institutional investors (FII) net-sold shares worth Rs 3,065.35 crore.  But, markets gained traction in second half of the session to settle near day's high points, as traders found solace with the US India Strategic and Partnership Forum (USISPF) stating that the innovative, bold and stellar budget presented by Union Finance Minister Nirmala Sitharaman will take India to a stronger growth trajectory. Some optimism also came with the economic think tank, the Global Trade Research Initiative’s (GTRI) statement that customs duty changes for several products such as precious metals, small cars, bicycles, toys and telecommunication components in the Budget will help promote the Make in India initiative of the government.

On the global front, European markets were trading mostly in red as investors digested key tech earnings released after the U.S. market close on Thursday and awaited the all-important U.S. jobs data due later in the day. Investors also awaited final January PMI (purchasing managers' index) readings from the region and December producer price figures for directional cues. Asian markets ended mostly in green following the mostly positive cues from global markets, as the markets continue to benefit from a positive reaction to the US Fed's interest rate announcement, with traders expressing optimism the Fed is nearing the end of its rate hiking cycle.

Back home, sugar industry stocks were in watch as industry body ISMA said the country's sugar production rose 3.42 per cent to 193.5 lakh tonnes in the first four months of the ongoing marketing year ending September, on rise in output in key producing states. Aviation industry stocks were in focus as the Union Ministry of Civil Aviation stated that India's aviation industry suffered a loss of over Rs 24,000 crore in the last two financial years during 2020-22. As per the Union Ministry of Civil Aviation, the industry in FY 2020-21 suffered a loss of Rs 12,479 crore and in FY 2021-22 it was Rs 11,658 crore. There was some reaction in railways stocks with report that the railways' revenue earnings are up by 73 per cent in the passenger segment during April-January 2023 as compared to the same period last year.

Finally, the BSE Sensex rose 909.64 points or 1.52% to 60,841.88 and the CNX Nifty was up by 243.65 points or 1.38% to 17,854.05.

The BSE Sensex touched high and low of 60,905.34 and 60,013.06, respectively. There were 27 stocks advancing against 3 stocks declining on the index.

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

The top gaining sectoral indices on the BSE were Consumer Durables up by 2.61%, Financial Services up by 2.15%, Bankex up by 2.02%, Auto up by 1.24% and Telecom 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 down by 0.67% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 6.87%, Bajaj Finserv up by 5.15%, Bajaj Finance up by 5.13%, HDFC Bank up by 3.46% and HDFC up by 3.15%. On the flip side, NTPC down by 0.69%, Wipro down by 0.32%, Tech Mahindra down by 0.22% and HCL Technologies down by 0.16% were the top losers.

Meanwhile, the US India Strategic and Partnership Forum (USISPF) President Mukesh Aghi has said that the innovative, bold and stellar budget presented by Union Finance Minister Nirmala Sitharaman will take India to a stronger growth trajectory over the next few years. Applauding the finance minister, the USISPF said the budget is a blueprint for the year, outlining the vision for the next 25 years leading to the centenary of India's independence (2047).

He said ‘India’s rise from the tenth to the fifth largest economy is a hallmark of the bright economic spot in a period when other economies are suffering from global economic headwinds’. He added ‘Fiscal consolidation continues, which means there will be more capital available for private investment that will bring interest rates down’. He said ‘The Budget will give more benefits to the youth, and senior citizens, and focuses on women’s empowerment. This Budget is job-focused and will have a tremendous impact on India’s GDP. I applaud the government on a growth-focused Budget’.

The USISPF said the term ‘Amrit Kaal’ was first used by the Prime Minister in 2021, to describe an ‘auspicious time’ or a ‘time of nectar’, alluding to Prime Minister Modi’s vision for India’s next quarter-century. ‘Amrit Kaal’ is described by the government as the 25 years culminating in the centenary of India's independence. The proposal of a lower tax rate of 15 per cent for new cooperatives that start manufacturing activity in March 2024, rationalisation of TDS provisions, and extended tax benefits for start-ups will help in bringing in business growth and certainty. USISPF said several changes in the customs duty rates are done with a clear focus on bringing in supply chain efficiencies and enhancement of domestic manufacturing which will further promote exports.

The CNX Nifty traded in a range of 17,870.30 and 17,584.20. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Titan Company up by 6.51%, Adani Ports & SEZ up by 5.61%, Bajaj Finserv up by 4.96%, Bajaj Finance up by 4.94% and HDFC Bank up by 3.42%.On the flip side, Divi's Lab down by 12.00%, Adani Enterprises down by 2.19%, BPCL down by 1.67%, Tata Consumer Products down by 1.65% and Hindalco down by 1.48% were the top losers.

European markets were trading mostly in red; France’s CAC fell 23.58 points or 0.33% to 7,142.69 and Germany’s DAX lost 98 points or 0.63% to 15,411.19, while UK’s FTSE 100 increased 14.69 points or 0.19% to 7,834.85.

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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