"Despite a roller-coaster session, markets ended with solid gains, as investors cheered the government's focus on higher growth and capital expenditure boost in the Budget. The north-bound trend was also aided by overnight gains in the US market and a strong European markets trend in early trades", Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. and added that "on daily charts, the market maintained an uptrend continuation formation and after a long time, it succeeded to close above the 50 day SMA which is broadly positive. For the day short-term traders, 17,400 and 17,250 would be key support levels to watch out for. Above the same, the Nifty would touch the level of 17,750-17,850. However, if the index slips below 17,500, a quick intraday correction could drag down the index up to 17,400-17,350 levels".
Shares of Cigarette makers ITC and Godfrey Phillips India rose after India's budget did not propose any change in taxation of tobacco products, in a relief for the sector.
ITC is expected to see its EPS growing at 11%, with the stock attractively placed at 16.5 x price-to-earnings with a dividend yield of 5.5%.
Analysts expect ITC to report 6% YoY volume growth in FY23 with profits from tobacco sale rising 12% YoY.
Source: Bloomberg
Shares of Larsen & Toubro advanced nearly 5% to Rs 1,999.9 apiece after the company stepped up the outlay for capital expenditure by 35.4% from Rs 5.54 lakh crore to Rs 7.50 lakh crore in 2022.23.
The increase in capital expenditure is expected to aid Larsen & Toubro, Cummins, SKF India, Bharat Forge and Honeywell Automation.
Besides the government's announcement to earmark 65% of capital for local procurement of defence systems and equipment.
Budget 2022 Stock Impact: Winners And Losers
Dr. Reddy's raised to 'buy' from 'accumulate' at KR Choksey; price target set at Rs 5,261.
Source: Bloomberg
The other chemical companies in focus are Thirumalai and IGPL, which stand to benefit from custom duty cut from 10% to 0% for orthoxylene; Supreme Petro and Ineos Styrolution, which rose after the custom duty reduction from 10% to 2% on Styrene.
Finolex also rose due to the import duty cut on EDC and import duty reduction on VCM. Both these chemicals are raw materials used the manufacture of PVC Resin.
Duty is being raised on sodium cyanide for which adequate domestic capacity exists. The changes are aided at enhancing domestic value addition.
Supreme Court Agrees To Hear Future Retail Petition Against NPA Deadline
December : 2,50,933 units
January : 2,66,788 units
Rise: 6.3% units
Source: Company statement
December : 1,53,149
January : 1,54,379
Rise : 0.80%
Source: Company statement
India will remove anti-dumping duties on some steel products including stainless steel, in a bid to curb high prices of the metal, according to the country's annual budget presented by finance minister Nirmala Sitharaman on Tuesday.
It also said it won't tax steel scrap imports for another year to aid smaller manufacturers.
Source: Bloomberg
Budget is on 'A I M': Agriculture, Infrastructure, Mobilisation of Funds
Rs 7.5 lakh crore allocated for capex program
Rs 2.7 lakh crore for MSP payments
PPP for funding capex program
Budget is simply direction provider to India at 100 years, This will have the power to attract lots of foreign capital in the country.
Deven Choksey, Managing Director, KRChoksey Holdings
Shares of metals, cement, road builders, piped water and logistics rose on the back of government's proposals focussing on these sectors.
Allocation of Rs 48,000 crore for housing projects aided cement makers while proposal to start new trains aided the surge in steel and stainless steel makers.
Fabrication firm Schaeffler India, Timken India, pipe-maker APL Apollo Tubes rises as much as 2.6% and VA Tech Wabag also advanced.
Source: Bloomberg
The broader indices underperformed their larger peers with S&P BSE MidCap shedding 0.6% and S&P BSE SmallCap slipping 0.72%. Barring S&P BSE Auto and S&P BSE Oil & Gas indices, all the other 17 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Metal index gaining nearly 2.5%.
The market breadth was skewed in the favour of bulls. About 1,710 stocks advanced, 1,533 declined and 105 remained unchanged.
India plans to launch a central bank digital currency in the financial year starting in April, Finance Minister Nirmala Sitharaman said in her budget speech.
The digital rupee will help to usher in cheaper, more efficient currency management, Sitharaman said Tuesday. The Reserve Bank of India has been working on a phased implementation strategy for its digital currency, which could reduce dependency on cash.
India’s move comes after China already began CBDC trials in several cities, while the U.S. Federal Reserve and Bank of England are looking into possibilities for their economies.
Source: Bloomberg
Indian government bonds slide after Finance Minister Nirmala Sitharaman announced a higher-than-expected fiscal deficit for the financial year ending March 2023.
Benchmark 10-year yields rise 7bps to 6.75%.
The rupee trims gains; up 0.1% to 74.57/USD.
India is estimating a fiscal deficit at 6.4% of GDP in the next fiscal year, higher than 6.1% estimated in a Bloomberg survey
Source: Bloomberg
India plans solar spending amid climate change threat.
India plans additional allocation of Rs 19,500 crore in PLI for solar modules.
Nirmala Sitharaman, Finance Minister
Shares of battery makers gain as the federal budget proposes introducing battery swapping policy.
Finance Minister announces plans to promote clean technology in public transport.
Source: Bloomberg
Shares of IRCTC Ltd. rose nearly 4% after Finance Minister Nirmala Sitharaman proposed to start 400 new 'Vande Bharat' trains in three years.
Rail, post to work together on logistics.
Source: Bloomberg
ECLGS Scheme to be extended to March 2023.
ECLGS Scheme to have Rs 5 lakh crore total cover.
Nirmala Sitharaman, Finance Minister
Finance Minister Nirmala Sitharaman announced a project named Parvat Mala.
The projects aims to build roads and highways in India's mountainous region stretching from north to north eastern India, that also borders China.
Goals For ‘India at 100’: Complementing macro-growth with micro-all-inclusive welfare, digital economy and fintech, tech-enabled development, energy transition and climate action
Transferring of ownership of Air India has been completed
LIC IPO listing process is expected to be completed shortly
PLI Schemes in 14 sectors have received with potential to create 60 lakh new jobs, and additional new production of Rs 30 lakh crore
Public issue of LIC shortly, others too are in the process for FY23
FY22 real GDP growth estimated at 9.2%
Sharp rebound and recovery in our economy reflects India’s strong resilience
India in strong position to withstand challenges, will continue journey with strong growth
Confident that with ‘sab ka prayas’ we will continue our journey towards economic recovery
Nirmala Sitharaman, Finance Minister
Budget 2022 Updates: Finance Minister Nirmala Sitharaman To Present Union Budget Today
Most yields along the India sovereign yield curve fell, with 10-year bonds moving the most in Tuesday session.
The 5-year yield fell 0.8bps to 5.881%
The 10-year yield fell 3.1bps to 6.652%
The 18-year yield remained unchanged at 7.133%
The 5-year-10-year yield spread was 77.1bps vs previous close 79.4bps.
Source: Bloomberg
Shares of Alembic Pharmaceuticals Ltd. rose over 1.3% after the company announced it has received final approval for the U.S. FDA for its Abbreviated New Drug Application for Clarithromycin tablets USP, 250 mg and 500 mg.
Clarithromycin tablets is used to treat infections caused due to acute bacterial exacerbation of chronic bronchitis in adults; acute maxillary sinusitis, community-acquried pneumonia and duodenal ulcer disease in adults among others.
The tablets have an estimated market size of $11 million for twelve months ending September 2021, according to IQVIA.
Of the 18 analysts tracking the company, seven maintained 'buy', seven maintained 'hold' and four maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 11.6%
Source: Exchange Filing, Bloomberg
NTPC has 1.01 million shares change hands in a large trade.
Details of buyers, sellers are not known immediately.
Source: Bloomberg
Manufacturing PMI falls to 54 in January 2022 from 55.5 in December 2021.
Source: IHS Markit
Shares of Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. fell after the Q3 results lagged estimates due to rising costs.
The state-run refiners are among the worst performers on NSE Nifty 100 index.
This is the steepest intraday decline for Indian Oil and HPCL since Jan. 21.
This is the steepest intraday decline for BPCL since Dec. 20
Source: Bloomberg
Tata Motors Shares Fall On Q3 Loss And Raw Material, Supply-Side Woes
December : 3,62,470
January : 3,63,443
Rise : 0.3%
Source : Exchange filing
Auto Sales January 2022 Live: Escorts Sales Up 21.5%, Bajaj Auto Rises Marginally
Third Quarter Results (Consolidated)Net income up 17% YoY to Rs 68.79 crore vs Bloomberg consensus estimate of Rs 60.28 crore
Revenue up 22% YoY to Rs 378.95 crore vs estimate of Rs 320 crore
Total costs up 22% YoY at Rs 292.87 crore
Other income at Rs 7.48 crore vs Rs 11.20 crore YoY
Ebitda up 25% YoY to Rs 99 crore
Margin remains flat at 26%
Net income up 17% YoY to Rs 68.79 crore vs Bloomberg consensus estimate of Rs 60.28 crore
Revenue up 22% YoY to Rs 378.95 crore vs estimate of Rs 320 crore
Total costs up 22% YoY at Rs 292.87 crore
Other income at Rs 7.48 crore vs Rs 11.20 crore YoY
Ebitda up 25% YoY to Rs 99 crore
Margin remains flat at 26%
Of the 23 analysts tracking the company, 12 maintained 'buy', six maintained 'hold' and five maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 6.6%. Trading volume on the stock was nearly nine times the 30-day average volume at this time of the day.
Source: Exchange Filing, Bloomberg
The S&P BSE MidCap underperformed its larger peers with gains of 0.4% while the S&P BSE SmallCap almost mirrored the Sensex and Nifty. Barring S&P BSE Oil & Gas, all the other 18 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Information Technology adding 1.2%.
The market breadth was skewed in the favour of bulls. About 1,779 stocks advanced, 656 declined and 87 remained unchanged.
GST Collection Above Rs 1 Lakh Crore For Seventh Consecutive Month
Budget 2022: Fiscal Deficit Seen At 6-6.3% For FY23
Budget 2022: Housing To Power, How Modi Government Has Fared On Key Promises
Budget 2022: Income Tax Slabs And Other Personal Tax Expectations
DLF Ltd. has 1.95 million shares change hands in a block trade.
Details of buyers, sellers are not known immediately.
Source: Bloomberg
Zomato has completed the acquisition of 11,214 compulsorily convertible preference shares and 10 equity shares collectively aggregating to 19.48% of the share capital of Adonmo Pvt Ltd. for Rs 112.21 crore approximately.
The company also acquired 1,259 compulsorily convertible preference shares and one equity shares collectively aggregating to 5% of the share capital of UrbanPiper Technology Pvt Ltd, for Rs 37.39 crore, on Monday.
The company had intimated these proposed acquisitions in an exchange filing on Thursday.
Source: Exchange Filing
The Economic Survey FY22, tabled in the Parliament by Finance Minister has projected India's growth for FY23 at 8-8.5%. The FY22 GDP growth is seen at 9.2%. The markets are likely to see gap up opening today, and likely to follow huge volatility thought out the day based on Budget announcements.Mitul Shah, Head of Research, Reliance Securities
Shares of hotel, movie theatre and mall operators will be in focus after Maharashtra after Mumbai further eased covid-19 restrictions.
Maharashtra allowed reopening of tourism-related activities as well as permitted amusement parks, swimming pools to operate with 50% capacity.
In focus: Amusement park operator Imagicaaworld Entertainment, hotel stocks like Indian Hotels, EIH, Lemon Tree Hotels, Chalet Hotels, Mahindra Holidays, tour operators like Thomas Cook, Easy Trip besides PVR, Inox Leisure, Phoenix Mills.
Source: Bloomberg
Indian bond traders are waiting on the federal budget for the next fiscal deficit and borrowing numbers. They are also awaiting to see if capital gains tax on bonds is scrapped to facilitate transactions on offshore platforms.
Government is expected to announce bond sales of Rs 13 lakh crore ($174 billion) in the fiscal year starting April, about 8% more than the current period, according to a survey of 18 traders and economists.
Net borrowing in the next fiscal year is estimated at Rs 9.4 lakh crore, according to the survey.
USD/INR fell 0.6% to 74.6225 on Monday.
10-year yields fell 7bps to 6.68% on Monday after the government switched Rs 1.19 lakh crore of bonds with RBI, raising hopes of lower gross borrowings.
Overseas investors sold Rs 3,620 crore of stocks on Monday.
They sold Rs 13 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 201 crore of corporate debt.
State-run banks sold Rs 1,090 crore of sovereign bonds on Jan. 31: CCIL data. Foreign banks sold Rs 838 crore of bonds.
Source: Bloomberg
Economic Survey 2022 Live Updates: Growth Projection In Survey Conservative, Says CEA
Budget 2022 Expectations For Key Sectors From Top Brokerages
Sun Pharmaceuticals raised to 'neutral' from 'underperform' at Credit Suisse; price target set at Rs 810.
Century Plyboards raised to 'buy' from 'hold' at BOB Capital Markets; price target set at Rs 735.
Equitas Holdings: Nirmal Bang initiated coverage of the stock with a recommendation of 'buy'; price target set at Rs 73.
Source: Bloomberg
Adani Ports And Special Economic Zone
Tech Mahindra
Procter & Gamble Hygiene & Health Care
Cholamandalam Investment and Finance Company
Poonawalla Fincorp
Sona BLW Precision Forgings
Kansai Nerolac Paints
Laxmi Organic Industries
Elecon Engineering Co
Gujarat Ambuja Exports
Prism Johnson
Cantabil Retail India
Goodyear India
IFB Industries
Indian Hotels Co
Indoco Remedies
Jubilant Ingrevia
Mangalore Chemicals & Fertilizers
TTK Prestige
VIP Industries
Neuland Laboratories
Oriental Carbon & Chemicals
Sutlej Textiles & Industries
Triveni Turbine
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