Benchmarks trade marginally lower; FM begins Budget speech

Indian equity benchmarks were trading marginally lower in late morning deals, due to losses in Metal down, Consumer Durables and Oil & Gas. Traders remained cautious with the Global Trade Research Initiative (GTRI) stating that increasing foreign direct investment (FDI) from China in the domestic market may benefit in the short-term but it risks undermining India's long-term economic security and strategic autonomy. It said dependence on Chinese firms for key manufacturing capabilities could also expose India to supply chain vulnerabilities and geopolitical risks. However, losses remain capped as Finance Minister Nirmala Sitharaman is presenting the Union Budget 2024 in Parliament, laying out economic priorities of the government under Prime Minister Narendra Modi. Some support also came with a private report stating that private equity funds and venture capital funds investments have risen 8 per cent year-on-year to $31.5 billion in the first half of 2024. As per the report, the amount of funds invested is 30 per cent higher than the July-December 2023 period. On the global front, Asian markets are trading mostly in green building on a tech-led surge in Wall Street equities as investors returned to the sector after last week's losses, while attention turned to the upcoming release of key US inflation data.

The BSE Sensex is currently trading at 80407.93, down by 94.15 points or 0.12% after trading in a range of 80289.27 and 80766.41. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.21%, while Small cap index was up by 0.16%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.76%, Power up by 0.62%, Industrials up by 0.54%, Utilities up by 0.54% and Realty up by 0.44%, while Metal down by 1.01%, Consumer Durables down by 0.78%, Oil & Gas down by 0.67%, Energy down by 0.65% and PSU down by 0.33% were the top losing indices on BSE.

The top gainers on the Sensex were Adani Ports &SEZ up by 1.31%, Larsen & Toubro up by 1.30%, Ultratech Cement up by 1.04%, ITC up by 0.95% and NTPC up by 0.40%. On the flip side, Bajaj Finserv down by 1.13%, Power Grid Corporation down by 1.12%, Reliance Industries down by 0.90%, Bajaj Finance down by 0.81% and HCL Technologies down by 0.53% were the top losers.

Meanwhile, Industry body ASSOCHAM has welcomed the Economic Survey terming it a morale-booster for the country’s growth story. The industry body said, ‘The Economic Survey tabled in Parliament is a morale-booster for India’s growth story, projecting 6.5-7 per cent economic expansion for fiscal 2024-25 supported by the robust services sector, promising manufacturing and investor enthusiasm as reflected in encouraging rise in gross fixed capital formation.’

As per the Economic Survey 2023-24 tabled by Finance Minister Nirmala Sitharaman, the Indian economy is on a strong wicket and stable footing, demonstrating resilience in the face of geopolitical challenges. The Indian economy has consolidated its post-Covid recovery with policymakers - fiscal and monetary -ensuring economic and financial stability. It asserted that the economy continues to expand.

ASSOCHAM’s Secretary-General Deepak Sood said ‘Noteworthy is the fact that Survey’s promising GDP projections for the current financial year come in the backdrop of 8.2 per cent economic growth in 2023-24. Growth is well spread across different sectors like manufacturing, real estate, and construction, as pointed out by the important document presented in Parliament.’

The CNX Nifty is currently trading at 24464.50, down by 44.75 points or 0.18% after trading in a range of 24423.75 and 24582.55. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Larsen & Toubro up by 1.31%, Adani Ports &SEZ up by 1.12%, Ultratech Cement up by 1.06%, ITC up by 0.86% and Eicher Motors up by 0.84%. On the flip side, ONGC down by 2.14%, Shriram Finance down by 2.14%, SBI Life Insurance down by 1.46%, BPCL down by 1.43% and Bajaj Finserv down by 1.17% were the top losers.

Asian markets are trading mostly in green; Straits Times rose 18.38 points or 0.53% to 3,455.64, KOSPI increased 19.60 points or 0.71% to 2,783.11, Nikkei 225 surged 36.86 points or 0.09% to 39,635.86 and Taiwan Weighted added 510.37 points or 2.29% to 22,767.36.

On the flip side, Hang Seng declined 32.13 points or 0.18% to 17,603.75, Jakarta Composite plunged 1.51 points or 0.02% to 7,320.47 and Shanghai Composite weakened 19.17 points or 0.65% to 2,945.05.