Post Session: Quick Review

The first trading session of 2024 turned out to be a lacklustre day for Indian equity benchmarks, with both Sensex and Nifty ending flat. After a negative start, indices remained weak for the most part of the session, as cautiousness came after the output of eight key infrastructure industries - known as the core sector - slowed to a six-month low of 7.8 per cent in November on the back of a high base and festival holidays. Besides, data released by the Controller General of Accounts showed that the central government's fiscal deficit widened to Rs 9.07 lakh crore in April-November from Rs 8.04 lakh crore in April-October. 

In the second half of the trading session, markets erased losses and turned positive. Investors took support with Finance Ministry’s statement that Indian economy's GDP growth rate in 2023-24 to ‘comfortably’ exceed its forecast of 6.5 percent despite the risks to growth and stability outlook that mainly emanate from outside the country. Sentiments were optimistic as Union Minister for Commerce & Industry, Piyush Goyal said that India’s focus on infrastructure is empowering the economy and giving it a fillip. The Minister also said that massive investments both from the government and from the private sector, directed towards infrastructure is boosting the infrastructural capabilities of the country. However, recovery was short lived and the session ended on a muted note. 

On the global front, European and Asian stock markets remained closed today on New Year’s Day. Back home, auto stocks ended lower, amid weak sales data for December month. Mahindra & Mahindra’s (M&M) Farm Equipment Sector (FES) has reported 17.66% fall in total tractor sales (Domestic + Exports) during December 2023 at 19,138 units, as against 23,243 units for the same period last year, while Maruti Suzuki India has reported a 1.28 per cent decline in total sales at 1,37,551 units in December 2023. The company had posted total sales of 1,39,347 units in the same month a year ago. 

The BSE Sensex ended at 72271.94, up by 31.68 points or 0.04% after trading in a range of 72031.23 and 72561.91. There were 13 stocks advancing against 16 stocks declining, while 1 stock remained unchanged on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 0.54%, while Small cap index was up by 0.73%. (Provisional)

The top gaining sectoral indices on the BSE were PSU up by 0.84%, Energy up by 0.82%, Telecom up by 0.76%, Oil & Gas up by 0.64% and Basic Materials up by 0.59%, while Auto down by 0.19%, Bankex down by 0.05% and Consumer Durables down by 0.02% were the few losing indices on BSE.  (Provisional)

The top gainers on the Sensex were Nestle up by 2.94%, Tech Mahindra up by 1.66%, HCL Tech. up by 1.29%, Tata Motors up by 1.25% and Wipro up by 1.19%. On the flip side, Bharti Airtel down by 1.92%, Mahindra & Mahindra down by 1.43%, Bajaj Finserv down by 0.66%, NTPC down by 0.53% and HDFC Bank down by 0.53% were the top losers. (Provisional)

Meanwhile, the Controller General of Accounts (CGA) in its latest data has said that the government’s fiscal deficit at the end of November stood at Rs 9.06 lakh crore or 50.7 per cent of the full-year budget estimate. In absolute terms, the fiscal deficit - the difference between expenditure and revenue - was at Rs 9,06,584 crore during the April-October period of 2023-24. In the corresponding period last year, the deficit was at 58.9 per cent of the budget estimates of 2022-23. For 2023-24, the fiscal deficit of the government is estimated to be at Rs 17.86 lakh crore or 5.9 per cent of the GDP.

It stated the Government of India received Rs 17.4 lakh crore (64.3 per cent of corresponding BE 2023-24 of total receipts) up to November 2023 comprising Rs 14.35 lakh crore tax revenue (net), Rs 2.84 lakh crore of non-tax revenue and Rs 25,463 crore of non-debt capital receipts. Non-debt capital receipts consist of recovery of loans and miscellaneous capital receipts.

As per the CGA data, total expenditure incurred by the central government was at Rs 26.52 lakh crore (58.9 per cent of corresponding BE 2023-24) during April-November 2023. Out of the total expenditure, Rs 20.66 lakh crore was on revenue account and Rs 5.85 lakh crore was on capital account. Continuing the path of fiscal consolidation, the government intends to bring the fiscal deficit below 4.5 per cent of GDP by 2025-26.

The CNX Nifty ended at 21741.90, up by 10.50 points or 0.05% after trading in a range of 21680.85 and 21834.35. There were 26 stocks advancing against 24 stocks declining on the index. (Provisional)

The top gainers on Nifty were Nestle up by 2.98%, Adani Enterprises up by 2.40%, Adani Ports & SEZ up by 2.29%, Tech Mahindra up by 1.93% and Coal India up by 1.54%. On the flip side, Eicher Motors down by 2.54%, Bharti Airtel down by 1.86%, Mahindra & Mahindra down by 1.51%, Bajaj Auto down by 1.41% and Hindalco down by 0.72% were the top losers. (Provisional)