The benchmark indices traded near the day's high with strong gains in mid afternoon trade. All sectoral indices on the NSE traded in the green. The Nifty traded above the 17,400 mark.
The barometer index, the S&P BSE Sensex, surged 1,025 points or 1.79% at 58,225.11. The Nifty 50 index soared 305.05 points or 1.78% at 17,407.25.
The broader market traded with strong gains. The S&P BSE Mid-Cap index rose 1.83% while the S&P BSE Small-Cap index added 1.13%.
Buyers outnumbered sellers. On the BSE, 1,926 shares rose and 1,533 shares fell. A total of 162 shares were unchanged.
Economy:
Finance Minister Nirmala Sitharaman tabled the Economic Survey 2021-22 in the Lok Sabha. The Survey forecasts FY23 real GDP growth at 8-8.5%. FY22 GDP growth is seen at 9.2%.
Lok Sabha is adjourned for the day. Sitharaman will present the Union Budget for the year 2022-2023 tomorrow (1 February 2022) in the Lok Sabha and its copy will be laid on the Table of the Rajya Sabha soon thereafter. This year it will be a paperless budget and the Session will be held amidst Covid protocol.
With a view to ensure Covid safety protocol, both the Houses of Parliament will function in shifts from Wednesday (2 February 2022). The Rajya Sabha proceedings will be held from 10 AM to 3 PM and Lok Sabha from 4 PM to 9 PM. The first part of the Budget Session will continue till 11th of February and it will have 10 sittings. This time in the Rajya Sabha, the Zero Hour, which usually runs for one hour, has been reduced to 30 minutes. After a month-long recess, the second part of the session will begin from 14th of March and conclude on 8th of April this year in which there will be 19 sittings.
Growth will be supported by widespread vaccine coverage, gains from supply-side reforms and easing of regulations, robust export growth, and availability of fiscal space to ramp up capital spending, the Economic Survey said. The projection is based on the assumption that there will be no further debilitating pandemic related economic disruption.
As per the survey, agriculture sector is likely to grow by 3.9% in 2021-22 after growing 3.6% in the previous year. India's consumption story is intact despite third wave. Has grown 7% in 2021-22 with significant kitty coming from government spending. Fiscal support as well as the health response caused the fiscal deficit and government debt to rise in 2020-21. India has third largest startup ecosystem in the world after US and China.
India's capital markets, have done exceptionally well and have allowed record mobilization of risk capital for Indian companies. India's banks are well capitalized and the overhang of NPAs seems to have structurally declined even allowing for some lagged impact of the pandemic. In April-November 2021, IPOs of 75 companies have listed, garnering Rs 89,066 crore, as compared to 29 companies raising Rs 14,733 crore during April-November 2020, indicating a rise of 504.5% in fund mobilization.
Buzzing Index:
The Nifty Metal index added 0.59% to 5,498.35, rising for second trading session. The metal index added 1% in two days.
APL Apollo Tubes (up 4.88%), Jindal Steel & Power (up 1.39%), Steel Authority of India (up 1.03%), NMDC (up 0.76%) and Hindalco Industries (up 0.67%) were the top gainers. Among the other gainers were Tata Steel (up 0.59%), Hindustan Zinc (up 0.46%) and JSW Steel (up 0.39%) were top gainers in metal space.
Stocks in Spotlight:
UPL rose 1.28% to Rs 800.70 after the company's consolidated net profit soared 24.89% to Rs 1,179 crore on a 23.78% increase in revenue from operations to Rs 11,297 crore in Q3 FY22 over Q3 FY21. EBITDA grew 21% to Rs 2,666 crore in Q3 FY22 over Rs 2,209 crore in Q3 FY21. The rise in EBITDA was on the back of house manufacturing with backward integration linkages supported by effective raw material sourcing and overall cost management. EBITDA margin fell 61 bps to 23.6% in Q3 FY22 as against 24.2% in Q3 FY21.
Tata Coffee rose 1.25% to Rs 215.50 after the company's consolidated net profit jumped 38.4% to Rs 69.46 crore, driven by improved operating performance in the value-added businesses. Net sales grew by 17.5% to Rs 626.07 crore in Q3 FY22 over Q3 FY21. Consolidated profit before tax (PBT) surged 34.9% to Rs 91.72 crore in Q3 FY22 from Rs 67.98 crore in Q3 FY21.
Numbers to Track:
The yield on 10-year benchmark federal paper fell to 6.712% as compared with 6.768% at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 74.6850, compared with its close of 75.07 during the previous trading session.
MCX Gold futures for 4 February 2022 settlement fell 0.08% to Rs 47,573.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.24% to 97.037.
In the commodities market, Brent crude for March 2022 settlement rose 64 cents or 0.72% at $89.16 a barrel.
Global Markets:
Shares in Europe and Asia advanced on Monday. Markets in mainland China and South Korea were closed for the Lunar New Year eve. Regionally, markets in Hong Kong and Singapore also closed early on Monday ahead of the Lunar New Year holidays.
Official data released Sunday showed Chinese factory activity growth slowing in January. The country's official manufacturing Purchasing Managers' Index for January was at 50.1, just above the 50 level that separates growth from contraction. January's reading compared against December's figure of 50.3.
Meanwhile, a private survey released over the weekend showed Chinese manufacturing activity contracting in January. The Caixin/Markit manufacturing PMI came in at 49.1 for the month.
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