Bourses come off from day’s highs amid profit taking

01 Feb 2023 Evaluate

Indian equity markets came off from day’s highs in late afternoon session on account of profit booking by investors in some specific sectors such Financial Services, Banking, Metal and IT. However, markets continued to trade above neutral lines after Union Finance Minister, in her Budget speech in Parliament announced that the government proposes to increase capital expenditure outlay by 33 per cent to Rs 10 lakh crore in 2023-24, which would be 3.3 per cent of the GDP. Besides, Finance Minister Nirmala Sitharaman tweaked the slabs to provide some relief to the middle class by announcing that no tax would be levied on annual income of up to Rs 7 lakh under the new tax regime. On the global front, all Asian markets were trading higher as traders tracked a Wall Street surge fuelled by data pointing to slowing US inflation and hopes the Federal Reserve's rate hike drive is coming to an end. European markets were trading higher boosted by gains in Novo Nordisk and other healthcare stocks, with all eyes on the much-anticipated policy decision by the U.S. Federal Reserve later in the day.

The BSE Sensex is currently trading at 59706.35, up by 156.45 points or 0.26% after trading in a range of 59638.44 and 60773.44. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.45%, while Small cap index was down by 0.19%.

The top gaining sectoral indices on the BSE were Bankex up by 0.91%, Metal up by 0.86%, FMCG up by 0.47%, Realty up by 0.45% and IT was up by 0.39%, while Utilities down by 3.16%, Power down by 2.87%, PSU down by 1.83%, Energy down by 1.80% and Oil & Gas was down by 1.70% were the top losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 3.16%, Tata Steel up by 2.67%, HDFC Bank up by 1.98%, ITC up by 1.82% and HDFC up by 1.81%. On the flip side, Bajaj Finserv down by 4.54%, Sun Pharma down by 2.20%, SBI down by 2.14%, Titan Company down by 1.96% and Mahindra & Mahindra down by 1.65% were the top losers.

Meanwhile, India's manufacturing sector activity eased in the month of January, amid slower increases in total sales and output. New export orders also rose only slightly, however, and at the weakest pace in ten months.  According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) eased to 55.4 in January from 57.8 in December. Despite falling from December's recent high of 57.8, the headline figure remained above its long-run average.

The report further noted that the domestic market was the main source of new business growth as international sales rose only slightly in January. Moreover, the rate of increase was below its long-run trend and the weakest in the current ten-month period of expansion. In order to adjust for rising new orders, firms bought additional materials for use in production. Input purchasing grew at a softer pace than in December, albeit one that was marked.

On the price front, input prices ticked higher in January, amid reports of greater chemical, electronic component, energy, metal and packaging costs. The rate of inflation quickened to a three-month high, but was well below its long-run average. Manufacturers lifted their selling prices in January, owing to the passing of higher input, transportation and staff cost through to clients. The overall rate of charge inflation remained historically elevated, despite easing from December.

The CNX Nifty is currently trading at 17603.55, down by 58.60 points or 0.33% after trading in a range of 17577.15 and 17972.20. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were ICICI Bank up by 3.19%, Tata Steel up by 2.59%, JSW Steel up by 2.02%, ITC up by 1.90% and HDFC Bank up by 1.86%. On the flip side, Adani Enterprises down by 15.00%, HDFC Life Insurance down by 10.78%, Adani Ports down by 10.00%, SBI Life down by 8.58% and Bajaj Finserv down by 4.47% were the top losers.

All Asian markets were trading higher, Hang Seng advanced 229.85 points or 1.04% to 22,072.18, Taiwan Weighted added 154.93 points or 1% to 15,420.13, Shanghai Composite strengthened 29.25 points or 0.89% to 3,284.92, KOSPI increased 24.72 points or 1.01% to 2,449.80, Jakarta Composite gained 22.92 points or 0.33% to 6,862.26, Nikkei 225 surged 19.77 points or 0.07% to 27,346.88 and Straits Times was up by 8.7 points or 0.26% to 3,374.37.

European markets were trading higher, UK’s FTSE 100 increased 14.66 points or 0.19% to 7,786.36, France’s CAC rose 8.34 points or 0.12% to 7,090.76 and Germany’s DAX was up by 3.9 points or 0.03% to 15,132.17.

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