Firm trade persists over Dalal Street

A positive trade persisted over the Dalal Street in early afternoon deals with both Sensex and Nifty trading notably higher, aided by heavy buying at Oil & Gas and Energy counters, despite mixed cues from other Asian markets. Sentiments remained optimistic, as Revenue Secretary Sanjay Malhotra said that the government sees the average monthly Goods and Services Tax (GST) collections rising to Rs 1.8 lakh crore-1.85 lakh crore in 2024-25. Besides, applauding the efforts of all the PLI beneficiaries for driving the vision of the Prime Minister, Narendra Modi, to make India a global hub for manufacturing, Union Minister of Commerce and Industry Piyush Goyal has urged the industry champions to intensify their focus on enhancing competitiveness within their respective sectors, fostering a business environment that stimulates innovation, efficiency, and adaptability. 

On the global front, Asian markets were trading mixed, after the private sector in Hong Kong slipped into contraction in January, with a PMI score of 49.9. That's down from 51.3 in December and it moves beneath the boom-or-bust line of 50 that separates expansion from contraction. Hong Kong SAR private sector firms saw lower new business at the start of the year.

The BSE Sensex is currently trading at 72231.78, up by 146.15 points or 0.20% after trading in a range of 71972.77 and 72385.93. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.84%, while Small cap index was up by 0.57%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 3.52%, Energy up by 3.17%, PSU up by 2.53%, Utilities up by 2.40% and Metal up by 2.10%, while Telecom down by 0.88%, Consumer Durables down by 0.50%, TECK down by 0.25%, FMCG down by 0.19% and Bankex down by 0.16% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 6.72%, Power Grid up by 4.21%, Sun Pharma up by 2.84%, Tata Steel up by 2.74% and NTPC up by 2.08%. On the flip side, Bharti Airtel down by 2.85%, Bajaj Finserv down by 1.91%, Bajaj Finance down by 1.56%, Maruti Suzuki down by 1.11% and Kotak Mahindra Bank down by 1.05% were the top losers.

Meanwhile, Fitch Ratings in its latest report has said that the slightly faster pace of fiscal deficit reduction does not significantly change India's sovereign credit profile but the government's emphasis on deficit reduction will help to stabilise the debt-to-GDP ratio over the medium term. In the interim Budget 2024-25, the government revised lower its current year fiscal deficit to 5.8 per cent from 5.9 per cent budgeted earlier. The deficit, which is the gap between the government's revenue and expenditure, will come down to 5.1 per cent in 2024-25 and further to 4.5 per cent by 2025-26. Fitch said this demonstrates a firm desire to adhere to a path of gradual fiscal consolidation even amid an election year. 

Fitch Ratings Director, Sovereign Ratings, Jeremy Zook said over the next five years, India's government debt-to-GDP ratio would be broadly stable at just above 80 per cent of GDP. This is based on a continued path of gradual deficit reduction, as well as robust nominal growth of around 10.5 per cent of GDP. He said ‘the budget was broadly in line with our expectations, though with a slightly faster pace of deficit reduction, from when we affirmed India's 'BBB-' rating with a Stable Outlook in January.

He said as such, it does not significantly change the sovereign credit profile. India's fiscal deficit and government debt ratio are high relative to peer medians, but the government's emphasis on deficit reduction helps to stabilise the debt ratio over the medium term. He added that this Budget was important in signalling the current government's clear commitment to fiscal consolidation and its capex agenda, should it return to office.

The CNX Nifty is currently trading at 21924.15, up by 70.35 points or 0.32% after trading in a range of 21833.40 and 21964.30. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 6.70%, Coal India up by 5.85%, BPCL up by 4.76%, Power Grid up by 4.01% and ONGC up by 3.63%. On the flip side, UPL down by 8.54%, Bharti Airtel down by 2.85%, Bajaj Finserv down by 1.88%, Grasim Industries down by 1.45% and Bajaj Finance down by 1.44% were the top losers.

Asian markets were trading mixed; Jakarta Composite plunged 20.32 points or 0.28% to 7,218.47,  Straits Times fell 45.94 points or 1.47% to 3,133.83, Shanghai Composite weakened 22.34 points or 0.83% to 2,707.81 and KOSPI dropped 24.00 points or 0.93% to 2,591.31, while Hang Seng advanced 14.46 points or 0.09% to 15,548.02, Taiwan Weighted added 36.14 points or 0.2% to 18,096.07 and Nikkei 225 surged 196.14 points or 0.54% to 36,354.16.