Sensex ends 588 pts lower at 46,285, down 5% in a week ahead of Budget 2021

Stock market updates:  Investors lightened their portfolios and decided to sit on cash on Friday as they await Finance Minister Nirmala Sitharaman's third Union Budget presentation due on Monday, February 1. In a sea-saw trade today, stock specific moves swayed markets even as overall mood remained subdued.  

At the index level, the benchmark S&P BSE Sensex swung 1,260 points in the intra-day trade and hit an intra-day high and low of 47,424 and 46,160. The index eventually settled 588 points, or 1.26 per cent, lower at 46,286 levels. Dr Reddy's Labs (down 5.5 per cent) was the top loser on the index after the pharmaceutical major's consolidated net profit came in at Rs 19.8 crore for the quarter ended December, sharply lower than analysts' estimate of Rs 726.5 crore.

That apart, Maruti Suzuki, Bajaj Auto, Infosys, Bharti Airtel, and Bajaj Finserv, down between 5 per cent and 2.5 per cent, were the top drags. On the flipside, IndusInd Bank (up nearly 6 per cent), Sun Pharma, HDFC Bank, and ICICI Bank were the only gainers on the Sensex.

On the NSE, the Nifty50 index closed at 13,635 levels, down 183 points or 1.32 per cent. The index hit an intra-day low of 13,597.

Both the benchmarks have erased around 5 per cent during the week.

The broader market, however, remained relatively stable with the S&P BSE MidCap and S&P BSE SmallCap index down 0.69 per cent and 0.25 per cent, respectively at close.

On the sectoral front, financial and realty stocks held their ground with the Nifty PSU Bank and Realty indices settling 1.7 per cent and 0.7 per cent higher, respectively. On the downside, Nifty Auto index tumbled around 3 per cent, while Nifty Pharma and Metal indices declined around 2 per cent each. 

Economic Survey 2021

India’s economy, as per the Economic Survey, could contract 7.7 per cent in fiscal 2020-21, pulled down mainly by the coronavirus pandemic and the ensuing nationwide lockdown to contain the spread of the disease. Real GDP growth, as per Economic Survey, could come in at 11 per cent in the next financial year 2021-22 (FY22). This is a tad lower than what experts had hoped for.

On the fiscal deficit front, the Survey said that it is expected that the fiscal deficit of the Central Government may overshoot its Budget Estimate for the current fiscal year. READ MORE

Global markets

European stocks and US stock futures fell on Friday and the safe-haven dollar looked set for a weekly gain as a Wall Street battle between hedge funds and retail investors and a row in Europe over COVID-19 vaccine supply cooled risk appetite.

S&P 500 futures fell 1.5 per cent and Nasdaq 100 futures fell 1.8 per cent, more than reversing gains made on Thursday as the earnings season got off to a strong start. Meanwhile, Britain's FTSE 100 index fell 1.7 per cent and was set to record its worst week since October. European stocks fell 1.5 per cent.

In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.1% and is on course for a weekly loss of 4.4%. Japan’s Nikkei fell 1.9%, recording its first weekly loss of the year.

(With inputs from Reuters)

4:23 PM

MARKET CLOSING COMMENT :: Sumeet Bagadia, Executive Director, Choice Broking.

Fundamental

 

The Indian equity markets opened higher today on the back of buoyant global markets. However, volatility was seen in the afternoon session and Profit booking in the late session brought the markets down. The Nifty index ends the day around 1.3% down. Auto, IT and Metal sectors were the worst performers, while Banks and Realty stocks fared well. Broader markets were down as well but outperformed relative to the benchmarks, the Midcap and Smallcap indices ended today around 0.4% and 0.6% down. For stock specific performance, IndusInd Bank, Sun Pharma and ICICI Bank were the top gainers in the index today, while Dr Reddy’s, Maruti and Hero Motocorp were the top losers. Going ahead investors will keenly watch the Union Budget which is to be presented on 1st Feb, 2021.

Technical

 

In a highly volatile trading session after witnessing an intraday gap opening on the back of Global markets, corrective moves were seen throughout the trading sessions. However, later in the second half, huge volatility was there as the benchmark index fell over 250 points from its recent top which was at 13935 levels.  On a daily chart, the benchmark index has given a close below its 50 Days Moving Average which shows a weakness in the index during an upcoming trading session. Moreover, the Nifty has already given a breakout of its Lower Band of Upward Rising Channel Formation which as well indicates a southward move in the counter. Counter specific, Reliance, HDFC, INFY, TCS and MARUTI led the index towards the lower levels. At present level, the Nifty has strong support at 13640 while upside resistance comes at 14000.

4:06 PM

MARKET CLOSING COMMENT :: Rusmik Oza, Executive Vice President, Head of Fundamental Research, Kotak Securities

The Nifty-50 and BSE-30 Index declined 4.5% & 4.3%, respectively this week. The market mood has turned fragile as investors have become wary of risks from the upcoming union budget, and also selling by FIIs for three days in this week. International markets are also in correction mode due to new lockdowns being enforced in some countries and concerns over new strains of the Covid-19 virus.

As per the Economic Survey India’s real GDP is expected to expand by 11% in FY22 after seeing contraction of 7.7% in FY21. This could lead to a very healthy Nominal GDP number for FY22 budget estimates. As per provisional figures FIIs have been net sellers to the extent of ~Rs.4000 cr in the first three days of this week, which means they could be taking some profits off the table before the Union Budget event.

The weak closing of Nifty-50 below 14,000 mark on expiry day portrays there could be more weakness in the market if the budget disappoints. The 50 DMA of Nifty-50 placed at 13,743 is very crucial for Nifty-50. If it sustains below 13,743 after budget then probability of it going to 13,000 level is very high. We need to wait and see how Nifty-50 closes on Monday post the budget event to get the next directional move. On the upside the recent peak of ~14,645 could be the major resistance for Nifty-50 going forward.

3:56 PM

SECTOR OF THE DAY :: Auto stocks put brake on rally; index ends 3% lower

3:54 PM

NEW STOCK ON THE BLOCK :: IRFC ends 4.6% lower against issue price on debut day

3:52 PM

STOCK OF THE DAY :: Shriram Transport Finance surges 16% on improved asset quality in Q3, fund raising plan

3:50 PM

STOCK OF THE DAY :: Maruti Suzuki tanks nearly 9% in 2 days post Q3 results on margin concerns

3:48 PM

STOCK OF THE DAY :: Dr Reddy's Labs plunges over 5% as Q3 nos miss estimates

3:46 PM

Sectoral trends on NSE at Close

3:45 PM

Sensex Heatmap at Close

3:35 PM

CLOSING BELL

At the index level, the benchmark S&P BSE Sensex swung 1,260 points in the intra-day trade and hit an intra-day high and low of 47,424 and 46,160. The index eventually settled 588 points, or 1.26 per cent, lower at 46,286 levels. 

 

On the NSE, the Nifty50 index closed at 13,635 levels, down 183 points or 1.32 per cent. The index hit an intra-day low of 13,597.

 

3:27 PM

GDP growth, fiscal deficit: Economic Survey nos in line with expectations

Finance Minister Nirmala Sitharaman tabled the Economic Survey for 2020-21 in Parliament on Friday in the backdrop of coronavirus pandemic that brought all economic activity to a standstill for a few months in 2020, and saw the Indian economy sink into recession.

 

The key numbers were mostly in line with what most analysts / economists had forecast. Here’s a quick comparison of what they had expected versus the Economic Survey’s projections. READ MORE

3:19 PM

Bank stocks support markets

3:17 PM

Nifty Auto worst sectoral performer; Maruti tanks 5%

3:14 PM

India VIX jumps 5% to 25.47

-- VIX is a measure of volatility

3:10 PM

Top Sensex drags at this hour