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Union Budget 2023 turned out to be excellent from the market perspective. Fiscal prudence, the clear glide path for fiscal consolidation, massive capex of Rs 10 lakh crores, relief to income tax payers, credible growth and tax projections for FY24 and above all the growth orientation of the Budget makes it market-friendly. The excessive volatility triggered by the crash in Adani stocks will die down after sometime. FIIs will have to invest in India if they are to benefit from the India Growth Story. Meanwhile, the situation in the mother market of the US is slowly improving. The expected reduction in rate hike to 25bp and the slightly less hawkish commentary are positive for global equity markets. Investors may do calibrated buying in high quality large-caps. IT and capital goods stocks are on strong wicket.
– Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Most Adani group companies continue to trade in the red
Price as on 02 Feb, 2023 09:23 AM, Click on company names for their live prices.
BROKERAGE RADAR | JEFFERIES ON UNION BUDGET
- Focus on Capex; No Populism
- Budget managed to strike a good balance between fiscal priorities, the need for a capex push
- 33% jump in capex spend is much better than expectations
- Much awaited rural push didn’t come through with only a 2% growth in non- capex expenditure
- Disinvestment target FY24 at would require a couple of large disinvestments –
Opening Bell: Sensex falls 300 pts, Nifty below 17,500; Adani Enterprises zooms 10%, Max Financial slips 4%
BROKERAGE RADAR | CREDIT SUISSE ON UNION BUDGET
- FY24 Budget: Ticks all the important boxes
- Reasonable assumptions add to credibility of intent
- Deficit easier to fund, but medium-term challenges remain
- Debt-to-GDP to remain flat at 83% in FY24, but a tough path ahead
- Higher financing cost remains a key concern
- Government borrowing no longer a shock to the economy
- Defence budget up only 7%; other schemes see massive increase no
- Personal income tax changes affect many but impact low
- Sector implications: strong capex (states may add to it); insurance takes a hit
Pre-open session: Sensex slips over 250 points; Nifty below 17,470
JUST IN: Citigroup stops accepting securities of Gautam Adani’s group of companies as collateral for margin loans as banks ramp up scrutiny of his finances following Hindenburg Research’s allegations of fraud. (Source: Bloomberg)
Asian shares jump, dollar eases after Powell comments
Asian stocks jumped on Thursday while the dollar eased after Federal Reserve Chair Jerome Powell said a “disinflationary” process was underway, boosting risk appetite and hope that the U.S. central bank will soon end its monetary tightening streak.MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.84% higher, while Japan’s Nikkei rose 0.37%. Australia’s S&P/ASX 200 index added 0.37%.
Quarterly earnings today
HDFC, Titan, Dabur India, IDBI Bank, Tata Consumer Products are among a host of companies that will announce their third quarter earnings.
SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 71 points, or 0.40 per cent, lower at 17,629, signaling that Dalal Street was headed for a negative start on Thursday.
Tech View: Nifty forms long-legged Doji candle on Budget day
Following wild swings on the Budget day, headline index Nifty today formed a long-legged Doji candlestick on the daily chart, which is indicating an indecisive trend.
Tokyo markets open higher
Tokyo stocks opened higher Thursday, tracking US rallies after Federal Reserve chief Jerome Powell acknowledged in a dovish press conference that inflation was starting to ease.The benchmark Nikkei 225 index was up 0.45 percent, or 122.19 points, at 27,469.07 in early trade, while the broader Topix index added 0.15 percent, or 2.94 points, to 1,975.17.
Wall Street rallies as Fed’s Powell nods to easing inflation after rate hike
The S&P 500 and the Nasdaq closed sharply higher on Wednesday after Federal Reserve chair Jerome Powell acknowledged that inflation was starting to ease, in remarks he made following a quarter-point rate hike by the U.S. central bank.
Oil prices rise after U.S. Fed hikes rates, weakening the dollar
Oil prices rose in early Asian trade on Thursday after the U.S. Federal Reserve raised interest rates by 25 basis points, sending the dollar lower.Brent crude futures rose 56 cents, or 0.7%, at $83.40 a barrel while West Texas Intermediate (WTI) U.S. crude futures rose 65 cents, or 0.8%, to $77.05 a barrel.
Rupee gains 8 paise against US dollar on Budget day
The rupee appreciated 8 paise to close at 81.80 against the US dollar on Wednesday after Finance Minister Nirmala Sitharaman presented the Union Budget for 2023-24. Fresh foreign capital inflows supported the domestic unit, forex traders said.
Sensex, Nifty on Wednesday
The BSE Sensex index ended 158 points or 0.27% higher at 59,708, while Nifty50 fell 46 points or 0.26% to settle at 17,616.