The market resumed uptrend in mid-afternoon trade. Gains were capped due to weak cues from other Asian stock markets. The Nifty once again slipped below 11,700 mark. At 13:29 IST, the S&P BSE Sensex, was up 132.91 points or 0.33% at 39,868.44. The Nifty 50 index was up 30.90 points or 0.26% at 11,692.75.
In broader market, the S&P BSE Mid-Cap index rose 1.14% and the S&P BSE Small-Cap index was up 0.13%.
The market breadth was negative. On the BSE, 881 shares rose and 1443 shares fell. A total of 171 shares were unchanged. In Nifty 50 index, 28 stocks advanced while 20 stocks declined. 3 stocks were unchanged.
Buzzing Index:
The Nifty FMCG index rose 1.46% to 30,637.35, advancing the most among the sectoral indices on the NSE.
Nestle India (up 6.21%), Britannia Industries (up 5.77%), Hindustan Unilever (HUL) (up 5.10%), Dabur India (up 2.38%), Colgate-Palmolive (India) (up 2.37%), Marico (up 0.90%) and Godrej Consumer Products (up 0.83%) edged higher.
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In the Budget speech, FM Nirmala Sitharaman said, "Our government is committed to the goal of doubling farmers' incomes by 2022. We have provided energy sovereignty through KUSUM and input sovereignty through Paramparagat Krishi Vikas Yojana. We have provided resilience for 6.11 crores farmers insured under PM Fasal Bima Yojana. Focus on cultivation of pulses, expansion of micro-irrigation through Krishi Sinchai Yojana, have raised the self-reliance of the country. Provision of any annual supplement of the income to the farmer, directly is done through PM-KISAN. Connectivity through PMGSY, financial inclusion have helped raise farm incomes."
The special thrust on agriculture, irrigation and rural development should fuel growth in a struggling rural economy, where FMCG growth has slowed down.
For the sector comprising of agriculture and allied activities, irrigation and rural development an allocation of about Rs 2.83 lakh crore has been made for the year 2020-21. It is divided for agriculture, irrigation & allied activities (Rs 1.60 lakh crore) and for rural development & Panchayati Raj (Rs 1.23 lakh crore).
FM proposed to provide Rs 35,600 crore for nutrition-related programmes for the financial year 2020-21. Meanwhile, customs duty on peanut butter and skimmed milk & milk products has been withdrawn.
FM said that the government shall facilitate doubling of milk processing capacity from 53.5 million MT to 108 million MT by 2025.
FMCG stocks also rose on expectations that a reduction in income tax slabs (without exemptions/deductions) could spur consumption.
Stocks in Spotlight:
Info Edge (India) jumped 8.22% to Rs 2891.10 after the company's IE Venture Fund I entered into an agreement to invest about Rs 25.20 crore ($3.5 million) in Qyuki Digital Media. The fund will invest about Rs 180 million equivalent to $2.5 million for subscribing to compulsory convertible preference shares (CCPS) having a face value of Rs 10 and about Rs 7.2 crore ($1 million) for subscribing compulsory convertible cumulative participating debentures having face value of Rs 1,000 each. The said investment would help IE Venture Fund I to support and grow Qyuki's business in India.
TVS Motor Company rose 1.73% to Rs 470.90. The automaker posted sales of 2,34,920 units in January 2020 as against sales of 2,82,630 units in the month of January 2019, registering a drop of 17% year-on-year (YoY). Sequentially, total sales rose 1.45% in January 2020 as against 2,31,571 units reported in December 2019. Total two-wheelers registered sales fell 18.14% to 2,20,439 units in January 2020 as against 2,69,277 units reported in January 2019.
Godrej Properties surged 8.32% to Rs 1071.60. On a consolidated basis, the realtor's net profit rose 9.06% to Rs 45.4 crore and total income rose 4% to Rs 491 crore in Q3 December 2019 over Q3 December 2018. EBITDA jumped 60% to Rs 151 crore.
Numbers to Track:
The yield on 10-year benchmark federal paper fell to 6.515% at 14:19 IST compared with 6.599% in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was trading at 71.5550, compared with its previous closing low of 71.32.
In the commodities market, Brent crude for April 2020 settlement was down 14 cents at $56.48 a barrel. The contract fell 71 cents, or 1.24% to settle at $56.62 a barrel in the previous trading session.
MCX Gold futures for 5 February 2019 settlement fell 1.22% to Rs 40,744.
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