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Stock Market Live Updates: Sensex jumps 480 pts; Nifty tops 17,700; ITC, Kotak Bank advance

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Budget Review: Likelihood of lower than projected fiscal deficit, says ICICIDirect

  • Union Budget 2022-23 can be aptly termed as adoption of a new growth template led by vital capex allocation to drive the economy. Outlay of capital expenditure of ~| 7.5 lakh crore, up ~35% YoY (at 2.9% of GDP), coupled with expanding the scope of private capex through PLI for new age segments, is expected to deliver inclusive growth, job creation and welfare for all.

  • Among infrastructure segment, major emphasis has been placed towards highways (capex allocation up ~55% YoY) and water (allocation at Rs 60000 crore, up ~33% YoY in the “Har Ghar Jal se Nal” scheme). With the dual objective of growth and welfare, the Budget has hit the right chords in the current macroeconomic setup.

  • Interestingly, the Budget, presented in the backdrop of a likely pandemic aftereffect, has seen relatively conservative estimation of growth (merely ~11% nominal GDP in FY23) and tax receipt growth of ~14% YoY (excluding excise cut). Thus, there is a likelihood of lower than projected fiscal deficit, in our view.

The bold capex-led growth oriented Budget augurs well for the market. The 8 to 8.5% GDP growth for FY23 is credible and the consequent growth in corporate earnings can be impressive. Capital goods, cement and steel stand to benefit from the big push in capex. A new growth cycle on the back of the massive capex has the potential to crowd-in private investment leading to acceleration in the nascent credit growth. Banks and NBFCs stand to gain from this. Now that the budget is behind us the market is likely to react more to global cues. The correction and the recent rally were, in fact, reaction to global market cues. FIIs sharply trimming their selling to just Rs 22 cr helped the Budget rally. But FIIs are likely to sell the rallies again since they consider Indian valuations excessive.

– Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

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Price as on 02 Feb, 2022 09:21 AM, Click on company names for their live prices.

Sector Watch | All indices trade firm in opening trade

Sector Watch | All indices trade firm in opening trade

Nifty perched above 17,700 level

Nifty perched above 17,700 level

OPENING BELL: Sensex jumps 480 pts; Nifty tops 17,700; ITC, Kotak Bank advance 2% each

OPENING BELL: Sensex jumps 480 pts; Nifty tops 17,700; ITC, Kotak Bank advance 2% each

Pre-open session: Sensex gains nearly 300 pts; Nifty above 17,650

Q3 results today

Q3 results today

SGX Nifty signals a positive start

Nifty futures on the Singapore Exchange traded 119 points, or 0.68 per cent, higher at 17,716.50, signaling that Dalal Street was headed for a positive start on Wednesday.

Tech View: Nifty50 faces next hurdle at 17,750

The Nifty50 on Tuesday saw a wild intraday swing but eventually closed above its 50-day moving average. The index formed a small bullish candle with a long lower wick, reflecting sharp buying at low. Analysts said the index faces next resistance around 17,750-17,800 while they see 17,400 as the immediate support level.

Australia shares extend gains on miners, energy boost

Australian shares extended gains on Wednesday, as strong commodity prices lifted mining and energy stocks, a day after the country’s central bank pushed back hard on market wagers for an early interest rate hike. The S&P/ASX 200 index was up 1.2%, or 83.4 points, at 7,089. The benchmark closed 0.5% higher on Tuesday

Tokyo stocks open higher tracking US rallies

Tokyo stocks opened higher on Wednesday tracking gains on Wall Street, with investors focused on earnings reports by major companies including Sony due later in the day. The benchmark Nikkei 225 index was up 0.84 percent or 226.75 points at 27,305.23 in early trade, while the broader Topix index was up 0.75 percent or 14.14 points at 1,910.20.

Wall St posts gains after choppy session

All three Wall Street benchmarks advanced on Tuesday and the energy index closed at a multi-year high, although seesaw trading reflected investor uncertainty about how to play the current market. The Dow Jones Industrial Average rose 273.38 points, or 0.78%, to 35,405.24, the S&P 500 gained 30.99 points, or 0.69%, to 4,546.54 and the Nasdaq Composite added 106.12 points, or 0.75%, to 14,346.00.

Rupee slips 17 paise to close at 74.82 against dollar

The rupee pared its initial gains and settled 17 paise lower at 74.82 against US dollar on Tuesday as caution set in among forex market participants after the government in the budget revised fiscal deficit target upwards for FY’22. The country’s fiscal deficit is projected to be higher at 6.9 per cent this fiscal as against 6.8 per cent estimated earlier, weighing on sentiment.

Sensex, Nifty on Tuesday

The Sensex soared 848 points while the Nifty reclaimed the 17,500-mark on Tuesday after Finance Minister Nirmala Sitharaman unveiled a bigger Rs 39.45 lakh crore Budget, with higher spending on infrastructure to spur economic recovery and create jobs. The BSE Sensex ended 848.40 points or 1.46 per cent higher at 58,862.57, marking its second straight session of gains. On similar lines, the broader NSE Nifty surged 237 points or 1.37 per cent to end at 17,576.85.

Good morning, dear reader! Here’s something to kickstart your trading day

Good morning, dear reader! Here's something to kickstart your trading day

Read More: Stock Market Live Updates: Sensex jumps 480 pts; Nifty tops 17,700; ITC, Kotak Bank advance

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