Post Session: Quick Review

In a volatile trading session, Indian equity benchmarks ended flat on budget day. Markets failed to cheer a up with new tax regime. After making positive start, markets remained in green. However, in afternoon session indices entered into red and further continued their volatile trade till end. 

Some of the important factors for the markets:

No tax on up to Rs 12 lakh income: The budget announced that no income tax will be payable on annual income of up to Rs 12,00,000 in the new tax regime. For salaried individuals opting for the new tax regime, income of up to Rs 12,75,000 will be tax-free. Section 87A rebate has been increased to 60,000.

Traders shift their attention towards RBI MPC meeting:  The Reserve Bank of India (RBI) is likely to take a call on repo rate reduction at the Monetary Policy Committee (MPC) meeting on February 7.

India’s fiscal deficit widens to 56.7% of full-year target in April-December: The Controller General of Accounts (CGA) in its latest data report has showed that the India’s fiscal deficit touched 56.7 per cent of the Budget Estimate (BE) level of Rs 16.13 lakh crore at the end of December 2024 (April-December).

The BSE Sensex ended at 77505.96, up by 5.39 points or 0.01% after trading in a range of 77006.47 and 77899.05. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index declined 0.49%, while Small cap index was up by 0.28%. (Provisional)

The top gaining sectoral Indices on the BSE were Realty up by 3.69%, FMCG up by 2.91%, Consumer Disc up by 2.89%, Consumer Durables up by 2.47% and Auto was up by 1.75%, while Capital Goods down by 3.02%, PSU down by 2.69%, Industrials down by 2.68%, Power down by 2.63% and Utilities was down by 2.15% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Zomato up by 6.76%, Maruti Suzuki up by 4.71%, ITC up by 3.01%, Mahindra & Mahindra up by 2.90% and Titan Company up by 2.44%. On the flip side, Power Grid down by 3.71%, Larsen & Toubro down by 3.02%, NTPC down by 1.90%, HCL Tech down by 1.87% and Tech Mahindra down by 1.65% were the top losers. (Provisional)

Meanwhile, Chief Economic Adviser (CEA) V Anantha Nageswaran said that India has to be prepared to take advantage of the conducive global situations to grow at a faster pace to achieve the goal of becoming a developed nation by 2047. He attributed the slowdown in India’s economic growth to global factors. According to the Economic Survey, India needs to grow at 8 per cent for up to two decades to become a developed nation by 2047.

He said the current relative slowdown in the Indian economy should be seen in context and ‘India still remains the fastest growing large economy in the world’. He said whenever the global exports growth picks up, in those years, it contributes another 0.5 to 1 per cent additional growth, which will take it (India’s economic growth) to 7.5-8 per cent, and the agriculture sector itself can contribute one per cent of additional GDP growth.

According to him, Viksit Bharat’s growth rate with respect to the nominal GDP growth rate in dollar terms required is around 10 per cent. He noted that it is not something that is a mechanical number that is applied exactly year after year as the global conditions will influence it in some years positively and negatively in some. He said ‘We have to be prepared to take advantage of it in those conductive years while maintaining a certain minimum level of growth in those years when conditions are not favourable’.

The CNX Nifty ended at 23,482.15, down by 26.25 points or 0.11% after trading in a range of 23,318.30 and 23,632.45. There were 20 stocks advancing against 30 stocks declining on the index. (Provisional)

The top gainers on Nifty were Trent up by 7.58%, Maruti Suzuki up by 4.92%, Tata Consumer up by 4.41%, Eicher Motors up by 3.77% and Bajaj Auto up by 3.48%. On the flip side, Power Grid down by 3.91%, Bharat Electronics down by 3.71%, Larsen & Toubro down by 3.36%, Grasim Industries down by 2.71% and Cipla down by 2.70% were the top losers. (Provisional)