Post Session: Quick Review

Indian equity benchmarks ended flat on Friday. After a cautious start, markets traded in green for the most part of the session, taking support with Moody's Investors Service in its latest report stated that India's economic recovery reduces the risk of a sharp deterioration in public sector banks' (PSBs) asset quality. But, it said the capital would remain insufficient to support credit growth and absorb unexpected shocks. Some support also came as leading trade bodies are expecting that the outbound shipments will rise in the coming months as the uncertainty in global markets began to subside.

Domestic sentiments remained positive, amid reports that exporters urged the government to provide support measures in the next foreign trade policy (FTP), being formulated by the commerce ministry, to boost the country's outbound shipments. Different suggestions were made by representatives of different export promotion councils during their meeting with the commerce ministry. Some support came after the government approved applications from several medical devices manufacturers under the Production Linked Incentive (PLI) scheme for the promotion of domestic manufacturing.

In the second half of the trading session, key indices turned negative but staged recovery to end the trading day on a flat note, after Union Minister of State for Finance Anurag Thakur has said that the budget shows hope to build a new India and will lead the nation on the path of becoming an economic and manufacturing powerhouse.  Traders took note of Commerce and Industry Minister Piyush Goyal’s statement that the government has constituted a committee comprising members from public and private sectors to look into issues like promoting localisation and boosting manufacturing.

On the global front, European markets were trading lower after the bell as new data published by the Office for National Statistics (ONS) showed UK GDP declined by 9.9% last year, which was the largest contraction on record. Asian markets ended in red, after South Korea's unemployment rate rose to a 21-year high in January. The data from Statistics Korea showed that the jobless rate rose to a seasonally adjusted 5.4 percent in January from 4.5 percent in December. This was the highest rate since 1999. In the same month last year, the unemployment rate was 3.9 percent. On an unadjusted basis, the unemployment rate increased to 5.7 percent in January from 4.1 percent in the previous month.

The BSE Sensex ended at 51544.30, up by 12.78 points or 0.02% after trading in a range of 51260.62 and 51804.58. There were 10 stocks advancing against 20 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was up by 0.06%, while Small cap index was down by 0.02%. (Provisional)

The top gaining sectoral indices on the BSE were Bankex up by 0.99%, IT up by 0.43%, Power up by 0.23%, Industrials up by 0.22% and Realty up by 0.11%, while Telecom down by 1.95%, Metal down by 1.90%, FMCG down by 1.58%, Consumer Durables down by 1.43% and Oil & Gas down by 1.38% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were ICICI Bank up by 2.67%, Axis Bank up by 1.37%, Infosys up by 1.36%, HDFC up by 1.15% and SBI up by 0.78%. On the flip side, ITC down by 3.97%, Sun Pharma down by 2.53%, ONGC down by 2.46%, Bharti Airtel down by 1.98% and Titan Co down by 1.96% were the top losers. (Provisional)

Meanwhile, few days after the announcement of the Union Budget 2021-22, Union Minister of State for Finance Anurag Thakur has said that the budget shows hope to build a new India and will lead the nation on the path of becoming an economic and manufacturing powerhouse.

Anurag Thakur further underlined that the allocation for the benefit for the person with physical disabilities has been increased by 3 percent in the current budget, whereas allocation for the 'Mission Sakti' has increased by 16 percent.

The Minister also said that the fiscal deficit has been brought down to less than 3.5 percent and added that India has become the second-largest mobile manufacture in the world now. He said 'We are committed to taking India forward.'

The CNX Nifty ended at 15163.30, down by 10.00 points or 0.07% after trading in a range of 15081.00 and 15243.50. There were 14 stocks advancing against 36 stocks declining on the index. (Provisional)

The top gainers on Nifty were Adani Ports & SEZ up by 4.18%, ICICI Bank up by 2.69%, Axis Bank up by 1.39%, Infosys up by 1.33% and Wipro up by 1.14%. On the flip side, ITC down by 3.97%, GAIL India down by 2.60%, Sun Pharma down by 2.56%, ONGC down by 2.46% and Coal India down by 2.41% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 15.98 points or 0.24% to 6,512.74, France’s CAC decreased 19.15 points or 0.34% to 5,650.67 and Germany’s DAX was down by 80.51 points or 0.57% to 13,960.40.

The only major Asian market trading today ‘Japanese stock exchange’ ended lower on Friday due to profit taking after recent rally on upbeat earnings from domestic firms with hopes of large US fiscal stimulus package. Many markets in the region, including Hong Kong, China, Indonesia, Malaysia, Singapore, South Korea and Taiwan were closed for holidays.

Nikkei 225 ended down by 42.86 points or 0.14% to 29,520.07.