Breaking the six-day losing
streak, Indian equity benchmarks registered their biggest Budget day gains in
absolute terms on Monday, settling around 5 percent higher each, as investors
welcomed the big infrastructure and healthcare boost provided in the Union
Budget. In the budget speech, Finance Minister Nirmala Sitharaman has touched
almost all the big sectors and gives something good to all the sectors.
Meanwhile, the FM announced capital expenditure of Rs 5.54 trillion for FY22 as
against Rs 4.39 trillion for FY21. Further, she announced the FY22
disinvestment target at Rs 1.75 trillion while the FY21 fiscal deficit was
pegged at 9.5 per cent of GDP. The Budget 2021 is further expected to boost
India's economic recovery in view of the significantly higher spending on
growth-oriented sectors like infrastructure and local manufacturing. Markets
made positive start, as sentiments got a boost with the Finance Ministry's
statement that GST collections for January touched an all-time high of about Rs
1.20 lakh crore. Traders also some encouragement with report that retail
inflation for industrial workers eased to 3.67 percent in December 2020 against
9.63 percent in the same month of last year due to lower prices of certain food
items. Some support also came with Health Minister Harsh Vardhan's statement
that India was able to fight the COVID-19 pandemic much better than other
countries because of its 'whole of government' and whole of society approach.
Benchmarks indices continued their upward rally in late afternoon session, as
Indian manufacturing industry started 2021 with strong growth, as sustained
sales growth supported a further upturn in manufacturing sector output in
January. As per the survey report, the Nikkei India Manufacturing Purchasing
Managers' Index (PMI) - a composite single-figure indicator of manufacturing
performance - surged to 57.7 in January as against 56.4 in December. Traders overlooked data showing that the
output of eight core infrastructure sectors contracted for the third month in a
row by 1.3 percent in December, dragged down by poor show by crude oil, natural
gas, refinery products, fertiliser, steel and cement sectors. Finally, the BSE
Sensex rose 2314.84 points or 5.00% to 48,600.61, while the CNX Nifty was up by
646.60 points or 4.74% to 14,281.20.
The US markets ended higher on
Monday as traders looked to pick up stocks at somewhat reduced levels. Traders continued to keep an eye on
heavily-shorted stocks like GameStop and AMC Entertainment, which have seen
considerable volatility amid speculative trading by retail investors. The
markets largely shrugged off a report from the Institute for Supply Management
(ISM) showing the pace of growth in US manufacturing activity slowed more than
expected in January. The ISM said its manufacturing PMI declined to 58.7 in
January from a downwardly revised 60.5 in December. While a reading above 50
indicates continued growth in the manufacturing sector, Street had expected the
index to show a more modest drop to 60.0. Meanwhile, partly reflecting a spike
in spending on residential construction, the Commerce Department released a
report showing US construction spending increased by slightly more than
expected in the month of December. The Commerce Department said construction
spending jumped by 1.0 percent to an annual rate of $1.490 trillion in December
after surging up by 1.1 percent to a rate of $1.476 billion in November. Street
had expected construction spending to climb by 0.9 percent. Spending on private
construction increased by 1.2 percent to a rate of $1.138 trillion, as a 3.1
percent spike in spending on residential construction more than offset a 1.7
percent slump in spending on non-residential construction.
Crude oil futures ended higher on
Monday amid optimism about vaccination rollout picking up pace and as the
Organization of the Petroleum Exporting Countries and its allies' production
cut agreement became effective. Saudi Arabia's unilateral move to cut crude
output by 1 million barrels per day contributed as well to the jump in oil
prices. Crude oil futures for March rose $1.35 or 2.6 percent to settle at
$53.55 barrel on the New York Mercantile Exchange. March Brent crude gained
$1.43 or 2.6 percent to settle at $56.45 a barrel on London's Intercontinental
Exchange.
Indian rupee depreciated against
dollar on Monday, as government estimates fiscal deficit of 6.8 per cent of the
gross domestic product (GDP) in the next financial year beginning April 1. The
fiscal deficit in 2020-21 is estimated to soar up to 9.5 per cent due to rise
in expenditure on account of the outbreak of COVID-19 and moderation in revenue
during this fiscal year.. However, downfall remain capped as Indian
manufacturing industry started 2021 with strong growth, as sustained sales
growth supported a further upturn in manufacturing sector output in January. On
the global front, pound rose back towards its recent three-year high on Monday,
boosted by a combination of heightened global risk appetite and optimism about
the UK's vaccine rollout. Finally, the rupee ended at 73.02, 6 paise weaker
from its previous close of 72.96 on Friday.
The FIIs as per Monday's data
were net seller in both equity and debt segment. In equity segment, the gross
buying was of Rs 14605.17 crore against gross selling of Rs 18949.40 crore,
while in the debt segment, the gross purchase was of Rs 809.25 crore with gross
sales of Rs 997.17 crore. Besides, in the hybrid segment, the gross buying was
of Rs 6.93 crore against gross selling of Rs 9.89 crore.
The US markets ended higher on
Monday as a shift in the retail trading frenzy to silver drove up mining stocks
and investors monitored progress in talks over economic stimulus. Asian markets
are trading in green on Tuesday as global markets faced another chaotic week, with
retail investors expanding their duel with Wall Street into commodities and
driving up the price of silver. Indian markets ended higher with notable gains
on Monday as Dalal Street cheered Budget 2021 announcements made by Finance
Minister Nirmala Sitharaman in Parliament. Gains in the domestic indices were
mainly led by banking, financial and auto stocks. Today, the markets are likely
to continue their rally with positive start tracking firm global cues. Traders
will be taking encouragement with a private report stating that the increase in
healthcare outlay in the latest annual budget will lead India towards a
healthier country and the thrust on infrastructure will boost growth and
generate jobs. Some support will also come as foreign institutional investors
(FIIs) turned net buyers in Indian markets after a five-day hiatus. FIIs net
bought shares worth Rs 1,494.23 crore while domestic institutional investors
net sold shares worth Rs 90.46 crore. However, Moody's Investors Service, while
silent on the sovereign rating on the higher-than-expected fiscal deficit
numbers, expressed doubts over attaining the higher revenue targets and
divestment realisation as assumed in the Budget. It said the fiscal deficit
target of 6.8 per cent for 2021-22 tries to strike a balance between supporting
growth and a modest deficit reduction, but improvements in tax compliance and
monetisation targets may be difficult to achieve. Besides, Finance Minister
Nirmala Sitharaman announced a divestment target of Rs 1.75 lakh crore for
FY'22 in her Budget speech on Monday. The target includes divestment of two
state-owned banks and one insurance company, however, it is not clear whether
proceeds from this are included as part of 1.75 lakh crore. Meanwhile, the
government on Monday said capital market watchdog Securities and Exchange Board
of India (Sebi) will be the designated regulator for gold exchanges, which will
infuse transparency in gold transactions. Insurance sector stocks will be in
focus after the Government paved the wave for a higher inflow of capital in the
insurance sector. Finance Minister Nirmala Sitharaman, presenting the Union
Budget 2021, proposed increasing the Foreign Direct Investment (FDI) limit in
the insurance sector to 74 percent from the current 49 percent. Auto stocks
will be in limelight reacting to their monthly sales numbers.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
14,281.20
|
13,849.85
|
14,524.45
|
BSE
Sensex
|
48,600.61
|
47,101.38
|
49,432.13
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Motors
|
1,656.55
|
279.60
|
262.64
|
289.29
|
State
Bank of India
|
1,034.14
|
310.70
|
291.00
|
322.15
|
ICICI
Bank
|
693.54
|
603.80
|
566.71
|
625.16
|
ITC
|
577.44
|
215.95
|
205.85
|
222.00
|
Indian
Oil Corporation
|
531.78
|
95.80
|
94.00
|
97.00
|
Tata Motors has launched a limited edition trim of its entry level hatchback Tiago priced at Rs 5.79 lakh (ex-showroom Delhi).
IOC is planning to expand its Chennai refinery at a cost of Rs 31,500 crore through a JV with its subsidiary and strategic financial investors.
Dr. Reddy's Laboratories has expected Russia's COVID-19 vaccine Sputnik V to be launched in India through EUA by March this year.
Cipla has reported 2-fold jump in its consolidated net profit attributed to the shareholders at Rs 748.15 crore for Q3FY21 as compared to net profit at Rs 351.03 crore for Q3FY20.