MARKET WRAP: Sensex tumbles almost 1,000 pts as Budget disappoints D-St

All that happened in the markets today

9:10 AM

JANUARY AUTO SALES | Escorts total sales up 1.2% at 6,063 units vs 5,991 units (YOY)

9:10 AM

F&O highlights of the previous session by ICICI Securities

Ahead of Union Budget 2020, market participants took a cautious stand and witnessed some de-leveraging of positions due to stocks continuing to remain under pressure. However, TCS, Reliance Industries, Tata Steel and ONGC witnessed selling, which dragged the index to end 73 points lower.

 

Long build-up/short covering: Century Textiles, DLF, Jubilant Foodworks, Tech Mahindra, Dabur India and Ujjivan

Short build-up/profit booking: BEL, ONGC, Coal India, Colgate, Tata Motors, RBL Bank, IOC, MGL and Marico

 

9:08 AM

JUST IN

9:06 AM

Budget Expectation and Market Outlook :: Motilal Oswal Financial Services

9:04 AM

Top gainers and losers on S&P BSE Sensex during Pre-open

9:03 AM

Market at Pre-open

9:03 AM

Market at Pre-open

8:58 AM

BUDGET EXPECTATION :: Motilal Oswal Securities

Two major expectations from the Budget include investment push by relaxing the fiscal deficit targets and personal consumption boost by cutting personal income taxes. The former can be attained with strict conditionality and only after the true economic and fiscal narrative is placed before the country, while the latter must be avoided despite the very strong urge because it discourages savings as the real problem lies in subdued personal income growth

8:58 AM

BUDGET EXPECTATION :: Rajiv Bajaj

The automobile industry is facing a protracted slowdown because of “overregulation”, and the upcoming Budget is unlikely to address its woes, Rajiv Bajaj, managing director of Bajaj Auto, said on Tuesday.

 

“In my view, the single most important reason responsible for the current state of affairs the industry finds itself in is overregulation. It’s overregulation that is killing the industry,” he said on the sidelines of an event in Mumbai, where the company revealed the prices of the e-Chetak. READ MORE HERE

Bajaj Auto Managing Director Rajiv Bajaj

8:58 AM

Budget 2020 :: SBI chairman Rajnish Kumar expects higher infra spending

"I am expecting that the budget will be on reviving economic growth. I think expenditure on infrastructure might go up and some measures to revive the demand in the rural areas may also happen," Kumar told ANI. READ MORE

SBI Chairman Rajnish Kumar

8:56 AM

Shares bought on January 31 cannot be sold on the Budget day. Here's why

According to the notice issued by the exchanges, trading will begin from 9:15 am, and will last till 3:30 pm. Pre-opening orders will be placed between 9:00 and 9:08 am, and will be matched from 9:08 am and 9:15 am. Earlier in 2015, markets were open for trade on Saturday, February 28, when then Finance Minister Arun Jaitley presented the Budget. READ MORE HERE

8:54 AM

BUDGET EXPECTATION :: BofA Securities

The market is likely to look for two key changes: a) to personal income taxes. There are expectations of some relief for tax payers with incomes below a certain cut-off; and b) to taxes for companies / investors. Some reports suggest the government may remove/reduce long term capital gains tax and that recently imposed on stock buybacks. These are modest measures, but broader tax cuts are unlikely given a lack of revenue (and due to the recent large corporate tax cuts)

8:53 AM

BUDGET EXPECTATION :: Jefferies

A cut in personal income taxes will achieve little, though, and the government was actually evaluating an increase in GST rates to plug revenue shortfalls. Indeed, the fiscal accounts are in disarray with the central government deficit set to miss the 3.34 per cent of GDP target by ~100bps with the adjusted deficit another around 100bps higher at 5.3 per cent.

 

Even so, a fiscal stimulus is possible. Expanding employment guarantees and direct transfers are easy announcements to make but the NDA has been keener to lift investments that it hopes will also lift employment. Infrastructure, in particular, may be an area of emphasis – at least in the Budget Speech.

8:53 AM

India markets see worst January in four years ahead of Union Budget

Growth in Asia’s third-largest economy is at its slowest pace in more than a decade. As the earnings season progresses, 14 out of 26 Nifty companies that have reported results for the quarter through December have missed analyst estimates. ITC, Hindustan Unilever, and Vedanta are posted their financial results on Friday. READ MORE

8:53 AM

BUDGET EXPECTATION :: Nomura

We expect the Union Budget to reveal fiscal deficit slipping around 0.4 per cent of GDP off-target to 3.7 per cent in FY20. Amid a challenging growth environment, the government will find itself having to choose between correcting this slip in FY21, or on the other hand, using fiscal activism to support growth, but at the cost of other macro risks.

 

Our baseline remains one where the government will reiterate its commitment to medium-term fiscal consolidation. We attach a 45 per cent probability to our baseline of ‘fast track’ consolidation (FY21 fiscal deficit target at 3.3-3.4 per cent of GDP); 40 per cent to a ‘slow track’ consolidation scenario (3.5-3.6 per cent of GDP); and a lower 15 per cent probability to fiscal activism (3.7-4 per cent of GDP)