Markets give big thumbs up to Budget 2021-22

Bulls has taken charge on Dalal Street, as investors given big thumbs up to Budget 2021-22. Key gauges witnessed sharp rise, 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.

Global cues too remained positive with most of the Asian markets are trading in green at this point of time after coronavirus vaccine maker AstraZeneca agreed to increase supplies to Europe amid rising worries about the disease. Back home, PSU Bank stocks remained in limelight, as FM announces FY22 PSU Bank Recap plan at Rs 20000 crore. Agriculture stocks remained on buyers’ radar after FM announces FY22 Agri Credit target at Rs 16.5 lakh crore and Aviation stocks were flying high on providing Rs 1.15 lakh crore for railways, privatizing airports.

The BSE Sensex is currently trading at 47540.13, up by 1254.36 points or 2.71% after trading in a range of 46433.65 and 47558.45. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged 1.20%, while Small cap index was up by 0.85%.

The top gaining sectoral indices on the BSE were Bankex up by 4.42%, Realty up by 2.93%, PSU up by 2.67%, Metal up by 2.65% and Auto was up by 2.31%, while Healthcare down by 0.28% was the lone losing index on BSE.

The top gainers on the Sensex were Indusind Bank up by 11.24%, ICICI Bank up by 7.64%, SBI up by 5.64%, HDFC up by 5.02% and Bajaj Finserv was up by 4.91%. On the flip side, Dr. Reddys Lab down by 3.69%, Tech Mahindra down by 2.45%, TCS down by 0.97%, HCL Tech down by 0.61% and Sun Pharma was down by 0.03% were the top losers.

Meanwhile, the growth of eight core infrastructure industries contracted for the tenth month in a row by 1.3 percent in December 2020 as compared to same period of last year, dragged down by poor show by crude oil, natural gas, refinery products, fertiliser, steel and cement sectors. The production of eight core sectors had recorded a growth of 3.1 percent in December 2019. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).  

Among eight core sectors, Crude Oil production having 8.98 percent weight dropped by 3.6 percent in December, 2020 over December, 2019 and its cumulative index declined by 5.7 percent during April to December, 2020-21 over the corresponding period of previous year.  Natural Gas production having 6.88 percent weight declined by 7.2 percent in December, 2020 over December, 2019 and its cumulative index declined by 11.6 percent during April to December, 2020-21 over the corresponding period of previous year.

Petroleum Refinery production having 28.04 percent weight declined by 2.8 percent in December, 2020 over December,2019 and its cumulative index declined by 13.5 percent during April to December, 2020-21 over the corresponding period of previous year. Steel production having 17.92 percent weight declined by 2.7 percent in December, 2020 over December, 2019 and its cumulative index declined by 16.7 percent during April to December, 2020-21 over the corresponding period of previous year. Cement production having 5.37 percent weight declined by 9.7 percent in December, 2020 over December, 2019 and its cumulative index declined by 18.3 percent during April to December, 2020-21 over the corresponding period of previous year.

On the other hand, Coal production having 10.33 percent weight increased by 2.2 percent in December, 2020 over December, 2019, while its cumulative index fell by 1.9 percent during April to December, 2020-21 over corresponding period of the previous year. Fertilizers production having 2.63 percent weight fell by 2.9 percent in December, 2020 over December, 2019 and its cumulative index increased by 3.0 percent during April to December, 2020-21 over the corresponding period of previous year. Electricity generation having 19.85 percent weight increased by 4.2 percent in December, 2020 over December, 2019, while its cumulative index declined by 3.7percent during April to December, 2020-21 over the corresponding period of previous year.

The CNX Nifty is currently trading at 13986.00, up by 351.40 points or 2.58% after trading in a range of 13661.75 and 13986.50. There were 44 stocks advancing against 6 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 11.40%, ICICI Bank up by 7.42%, SBI up by 5.90%, Mahindra & Mahindra up by 5.22% and HDFC was up by 5.08%. On the flip side, UPL down by 6.63%, Dr. Reddys Lab down by 3.87%, Tech Mahindra down by 2.37%, Wipro down by 1.84% and TCS down was by 0.96% were the top losers.

Asian markets were trading mostly in green, Nikkei 225 surged 427.66 points or 1.55% to 28,091.05, Hang Seng increased 579.46 points or 2.05% to 28,863.17, Taiwan Weighted strengthened 271.78 points or 1.8% to 15,410.09, KOSPI rose 80.32 points or 2.7% to 3,056.53, Shanghai Composite gained 22.21 points or 0.64% to 3,505.28 and Jakarta Composite was up by 184.27 points or 3.14% to 6,046.62. On the other side, Straits Times was down by 16.47 points or 0.57% to 2,886.05.