Barometers trade sideways, IT stocks advance.

The headline equity indices traded sideways in mid-afternoon trade. The Nifty traded below the 17,550 mark. FMCG, IT and consumer durables scrips edged higher. On the flip side, metal, oil & gas and PSU bank stocks slumped.

The barometer index, the S&P BSE Sensex, was up 146.01 points or 0.24% to 59,854.09. The Nifty 50 index lost 42.70 points or 0.24% to 17,573.60.

In the broader market, the S&P BSE Mid-Cap index shed 0.26% while the S&P BSE Small-Cap index gained 0.23%.

The market breadth was negative. On the BSE, 1,480 shares rose and 1,952 shares fell. A total of 138 shares were unchanged.

The US Federal Reserve hiked its key interest rate by 25 basis points on Wednesday, taking the rate to a target range of 4.50-4.75%. Further, the Fed signaled that even though inflation is easing, it remains high enough to require further rate hikes.

Domestic equity trade in the red, in stark contrast with their global peers, with losses largely centered around firms under the Adani Group along with industrials and bank stocks exposed to the conglomerate, after it abruptly withdrew a $2.5 billion share offering by its flagship firm, Adani Enterprises.

Indian equity markets were also factoring in the Union Government's 2023 budget, which was released on Wednesday. The budget outlined more income tax breaks, and also flagged increased government spending this year.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose to 7.290 from its close of 7.277 recorded in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.03, compared with its close of 81.80 during the previous trading session.

MCX Gold futures for 3 February 2023 settlement advanced 1.29% to Rs 58,700.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.17% to 101.05.

The United States 10-year bond yield rose 0.38% to 3.411.

In the commodities market, Brent crude for April 2023 settlement added 45 cents or 0.54% to $83.29 a barrel.

Buzzing Index:

The Nifty IT index rose 1.57% to 30,490. The index added 2.52% in two trading sessions.

LTI Mindtree (up 4.24%), Persistent Systems (up 2.4%), L&T Technology Services (up 2.12%), Infosys (up 1.7%), HCL Technologies (up 1.39%), Tata Consultancy Services (up 1.34%), Wipro (up 1.17%), Coforge (up 1.15%), Mphasis (up 0.95%) advanced.

Benchmarks trade with limited losses; Europe markets advance at open.

The domestic equity benchmarks traded with small losses in afternoon trade as buying in FMCG and IT stocks helped to make up for most losses incurred due to a sell-off in metals, oil & gas and financials. The Nifty traded below the 17,550 mark. Markets in Europe and Asia, however, edge higher today.

The barometer index, the S&P BSE Sensex, was down 32.88 points or 0.06% to 59,675.20. The Nifty 50 index lost 70.25 points or 0.4% to 17,546.05.

UPL (down 5.87%), Adani Ports (down 5.74%), HDFC Life (down 5.38%), Tata Steel (down 2.46%) and NTPC (down 2.26%) were the top Nifty losers.

ITC (up 5.33%), Hindustan Unilever (up 1.87%), IndusInd Bank (up 1.72%), Infosys (up 1.49%) and TCS (up 1.26%) were the top Nifty gainers.

In the broader market, the S&P BSE Mid-Cap index shed 0.23% while the S&P BSE Small-Cap index gained 0.39%.

The market breadth was positive. On the BSE, 1,646 shares rose and 1,747 shares fell. A total of 135 shares were unchanged.

raised interest rates as expected on Wednesday, and signaled that it will keep hiking rates to curb inflation. But this spurred expectations that the ensuing economic fallout will push the bank into potentially cutting interest rates by as soon as late-2023.

Domestic equity trade in the red, in stark contrast with their global peers, with losses largely centered around firms under the Adani Group along with industrials and bank stocks exposed to the conglomerate, after it abruptly withdrew a $2.5 billion share offering by its flagship firm, Adani Enterprises.

Indian equity markets were also factoring in the Union Government's 2023 budget, which was released on Wednesday. The budget outlined more income tax breaks, and also flagged increased government spending this year.

Stocks in Spotlight:

Adani Enterprises slumped 18.15%. The board of Adani Enterprises on Wednesday (1 February 2023) decided to call off the Rs 20,000 crore follow-on public offer (FPO).

A press release issued by the conglomerate late on Wednesday stated, Given the unprecedented situation and the current market volatility the company aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction.

Coal India shed 0.66%. The state-run coal major's total offtake stood at 64.5 million tonnes (MT) in January 2023, registering a growth of 6.1% as compared with 60.8 MT recorded in the same month previous year. The company's coal production jumped 11.5% to 71.9 million tonnes (MT) in January 2023 from 64.5 MT in January 2022.

Britannia Industries jumped 5.10%. The FMCG major's consolidated sales for the quarter ended 31st December 2022 grew 16% to Rs 4,101 crore and net profit grew 151% to Rs. 932 crores. The net profit includes an exceptional gain (net of tax) of Rs. 359 crore, pursuant to a joint venture agreement with Bel SA for the Cheese business and consequent sale of 49% equity stake in its subsidiary & fair valuation of the residual stake of 51%.

Eicher Motors fell 3.31%. The company said that its unlisted subsidiary, VE Commercial Vehicles (VECV) sold 7,181 units of commercial vehicles (CV) in January 2023, registering a growth of 32.1% compared with 5,434 units sold in January 2022.

Hero MotoCorp declined 2.67%. The two-wheeler major's total sales slipped 6.25% to 356,690 units in January 2023 as against 380,476 units sold in January 2022.

Global Markets:

European markets opened in the green while most of the Asian stocks edged higher on Thursday as investors digested the U.S. Federal Reserve's smaller rate hike of 25 basis points and Fed Chairman Jerome Powell acknowledged inflation is falling.

On Thursday, investors in Europe will be focused on the latest monetary policy decisions from the European Central Bank and Bank of England.

US stocks rose 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.

The US central bank announced a quarter-point hike to the benchmark lending rate at the end of its two-day policy meeting, taking the rate to a target range of 4.50-4.75%. Inflation has eased somewhat but remains elevated, said the Fed's policy-setting Federal Open Market Committee (FOMC) in a statement. The committee anticipates that ongoing increases in the target range will be appropriate to bring inflation back to policymakers' 2% target over time, the statement said.

Nifty below 17,550 mark, metal stocks lose shine.

The frontline indices traded with modest losses in morning trade. The Nifty traded below the 17,550 mark after hitting the day's high of 17,653.90 in morning trade. FMCG, IT and media scrips advanced while oil & gas, metal and financial services shares tumbled.

The barometer index, the S&P BSE Sensex, was down 178.11 points or 0.30% to 59,529.97. The Nifty 50 index lost 90.90 points or 0.52% to 17,525.40.

In the broader market, the S&P BSE Mid-Cap index fell 0.08% while the S&P BSE Small-Cap index gained 0.68%.

The market breadth was positive. On the BSE, 1,736 shares rose and 1,405 shares fell. A total of 129 shares were unchanged.

The US Federal Reserve hiked its key interest rate by 25 basis points on Wednesday, taking the rate to a target range of 4.50-4.75%. Further, the Fed signaled that even though inflation is easing, it remains high enough to require further rate hikes.

Earnings Today:

Housing Development Finance Corporation (HDFC) (down 1.99%), Tata Consumer Products (down 0.63%), Titan Company (up 0.36%), Aditya Birla Capital (up 1.55%), Dabur India (down 0.98%), Godrej Properties (down 0.52%), Apollo Tyres (up 1.05%), Bajaj Electricals (down 1.33%), Berger Paints India (down 0.19%), Birlasoft (down 8.09%), Cera Sanitaryware (up 1.60%), Coromandel International (up 0.85%), Aegis Logistics (up 0.21%), Crompton Greaves Consumer Electricals (up 1.77%), Deepak Fertilisers (up 2.13%), Karnataka Bank (up 1.95%), Max India (up 1.48%), SIS (up 0.54%), Ujjivan Small Finance Bank (up 0.52%), and Welspun Corp (up 3.31%) will announce their quarterly earnings later today.

Buzzing Index:

The Nifty Metal index slipped 2.69% to 6,011.05. The tumbled 7.07% in the two trading sessions.

Adani Enterprises (down 6.54%), Jindal Steel & Power (down 4.78%), Tata Steel (down 2.62%), Hindalco Industries (down 1.21%), Steel Authority of India (down 1.01%), JSW Steel (down 0.99%), National Aluminium Company (down 0.55%), Hindustan Copper (down 0.34%), MOIL (down 0.03%) slumped.

On the other hand, Hindustan Zinc (up 3.4%) ,Welspun Corp (up 2.34%) and APL Apollo Tubes Ltd (up 2.25%) edged higher.

Adani Enterprises dropped 6.54% after the company's board on Wednesday (1 February 2023) decided to call off the Rs 20,000 crore follow-on public offer (FPO).

A press release issued by the conglomerate late on Wednesday stated, Given the unprecedented situation and the current market volatility the company aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction.

Stocks in Spotlight:

Britannia Industries jumped 3.75% after the company's consolidated net profit surged 151.2% to Rs 932.39 crore on 16.2% increase in net sales to Rs 4,101.49 crore in Q3 FY23 over Q3 FY22.

Tata Chemicals shed 0.60%. The company reported 27% rise in consolidated net profit to Rs 432 crore on a 32% increase in revenue to Rs 4,148 crore in Q3 FY23 over Q3 FY22. The company said that the soda ash realisations robust across geographies. Cost environment is stabilizing and likely to stay at the current levels in the near term, it added.

IDFC rose 1.95 and IDFC First Bank advanced 2.74%. IDFC said on Wednesday that it is investing Rs 2,200 crore in IDFC First Bank to increase its stake in the bank to 40% from 36.38% currently. This will provide growth capital to IDFC First Bank, the company said in a statement.

Further, the IDFC board has declared a special interim dividend of Rs 11 per share, due to which the Government of India, the largest shareholder in IDFC, would receive a payout of Rs 287 crore.

Market drift lower in early trade, Adani Enterprises tumble.

The key equity indices were trading with minor cuts in early trade. The Nifty traded near the 17,550 mark. IT, media and consumer durables stocks were in demand while metal, oil & gas and financial services shares witnessed a bit of a selling pressure.

The barometer index, the S&P BSE Sensex, was down 96.34 points or 0.16% to 59,611.74. The Nifty 50 index lost 65.95 points or 0.37% to 17,550.35.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.42% while the S&P BSE Small-Cap index gained 1%.

The market breadth was strong. On the BSE, 1,782 shares rose and 944 shares fell. A total of 129 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,785.21 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 529.47 crore in the Indian equity market on 1 February, provisional data showed.

Adani Enterprises calls off Rs 20K crore FPO:

Adani Enterprises hit a lower circuit of 10% at Rs 1,915.85. The board of Adani Enterprises on Wednesday (1 February 2023) decided to call off the Rs 20,000 crore follow-on public offer (FPO).

A press release issued by the conglomerate late on Wednesday stated, Given the unprecedented situation and the current market volatility the company aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction.

Gautam Adani, chairman, Adani Enterprises said, The subscription for the FPO closed successfully yesterday. However, today the market has been unprecedented, and our stock price has fluctuated over the course of the day. Given these extraordinary circumstances, the Company's board felt that going ahead with the issue will not be morally correct. The interest of the investors is paramount and hence to insulate them from any potential financial losses, the Board has decided not to go ahead with the FPO. We are working with our Book Running Lead Managers (BRLMs) to refund the proceeds received by us in escrow and to also release the amounts blocked in your bank accounts for subscription to this issue.”

Stocks in Spotlight:

Coal India rose 0.05%. The state-run coal major's total offtake stood at 64.5 million tonnes (MT) in January 2023, registering a growth of 6.1% as compared with 60.8 MT recorded in the same month previous year. The company's coal production jumped 11.5% to 71.9 million tonnes (MT) in January 2023 from 64.5 MT in January 2022.

Britannia Industries gained 1.21%. Britannia's consolidated sales for the quarter ended 31st December 2022 grew 16% to Rs 4,101 crore and net profit grew 151% to Rs. 932 crores. The net profit includes an exceptional gain (net of tax) of Rs. 359 crore, pursuant to a joint venture agreement with Bel SA for the Cheese business and consequent sale of 49% equity stake in its subsidiary & fair valuation of the residual stake of 51%.

Eicher Motors shed 0.65%. Eicher Motors said that its unlisted subsidiary, VE Commercial Vehicles (VECV) sold 7,181 units of commercial vehicles (CV) in January 2023, registering a growth of 32.1% compared with 5,434 units sold in January 2022.

Tata Chemicals slipped 3.75%. Consolidated Profit After Tax from continuing operations (pre-MI) was Rs 432 crore as compared to Rs 340 crore for corresponding quarter of last year. Consolidated revenue from operations stood at Rs 4,148 crore, up 32%, as compared to Rs 3,141 crore for corresponding quarter of last year.

Ashok Leyland added 1.49%. The board of directors of the company approved transfer of Electric Vehicles (EV) business to M/s. Switch Mobility Automotive Limited, India, (SMAL), step-down subsidiary, on a slump sale basis effective 1 October 2021, for a consideration of Rs.240 crores, on such terms and conditions as per the Business Transfer Agreement (BTA) entered into between the Company and SMAL.

Global Markets:

Asian stocks were trading higher on Thursday as investors digested the U.S. Federal Reserve's smaller rate hike of 25 basis points and Fed Chairman Jerome Powell acknowledged inflation is falling.

US stocks rose 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.

The US central bank announced a quarter-point hike to the benchmark lending rate at the end of its two-day policy meeting, taking the rate to a target range of 4.50-4.75%. Inflation has eased somewhat but remains elevated, said the Fed's policy-setting Federal Open Market Committee (FOMC) in a statement. The committee anticipates that ongoing increases in the target range will be appropriate to bring inflation back to policymakers' 2% target over time, the statement said.

Sensex, Nifty end sideways; India to grow at 7% in FY23: Union Budget 2023-24.

The domestic equity benchmarks ended sideways after a volatile session on Wednesday. The Nifty ended tad above 17,600 mark, after hitting the day's high at 17,972.20 in afternoon trade.

The Budget for 2023-24 was laid down in the Parliament by the Union Finance Minister. Investors cheered after the Central Government announced a slew of measures to boost capital expenditure spending in country while simultaneously providing relief to highest taxpayers, all this coupled with reigning the fiscal deficit to below 4.5% of GDP by 2025-26.

As per provisional closing data, the barometer index, the S&P BSE Sensex, advanced 158.18 points or 0.27% to 59,708.08. The Nifty 50 index lost 45.85 points or 0.26% to 17,616.30.

In the broader market, the S&P BSE Mid-Cap index fell 0.96% while the S&P BSE Small-Cap index declined 1.10%.

The market breadth was weak. On the BSE, 1276 shares rose and 2266 shares fell. A total of 107 shares were unchanged.

Union Budget 2023-24:

Finance Minister Nirmala Sitharaman is currently presenting Budget 2023 in the Parliament. This is the final full-fledged budget of the Narendra Modi government before the general election next year.

FM Sitharaman said fiscal deficit for 2023-24 is estimated at 5.9%. FY23 fiscal deficit is revised at 6.4% of GDP.

I reiterate my intention to bring the fiscal deficit below 4.5% of GDP by 2025-26, FM Nirmala Sitharaman said.

FY24 gross borrowings is set at Rs 15.4 lakh crore. Net market borrowings budgeted at 11.8 lakh crore in FY24, says Finance Minister.

Sitharaman in her Budget speech today said that India's FY23 GDP growth is estimated at 7%.

The government is increasing capital investment outlay by 33% to Rs 10 lakh crore, which would be 3.3% of GDP. This is highest ever capital outlay by India.

The government has announced capital outlay of Rs 2.40 lakh crore for railways, an increase of 9x over FY14.

The outlay for PM Awaas Yojana is being enhanced by 66% to over Rs 79,000 crore.

50 additional airports, heliports, water aerodromes, advanced landing zones will be revitalised. Cities will be incentivised to improve creditworthiness for municipal bonds. About 100 critical transport infra projects for steel, ports, fertiliser, coal, foodgrain sectors have been identified with an investment of Rs 75,000 crore including Rs 15,000 crore from private sources.

The government will extend 50-year interest free loan to State governments for one more year, FM Sitharaman said.

The government has announced Rs 35,000 crore priority capital for the energy transition. Battery storage will get viability gap funding.

The government has allocated Rs 19,700 crore to the National Hydrogen Mission. The objective is to reach hydrogen production capacity of 5 metric million tonnes by 2030.

The government will launch Pradhan Mantri Kaushal Vikas Yojana 4.0.

A one-stop solution for reconciliation & updating of identity and address of individuals maintained by various govt agencies, regulators and regulated entities will be established using DigiLocker service and Aadhaar as foundational identity.

For business establishments required to have Permanent Account Number, the PAN will be used as a common identifier for all Digital Systems of specified government agencies.

FM said 50 tourist destinations will be selected through challenge mode to be developed as a whole package for domestic and international tourism. States will be encouraged to set a 'Unity Mall' in State capital or the most popular tourist destination in the state for the promotion and sale of 'One District, One product' and GI products and other handicraft.

The Finance Minister has announced new income slabs bringing down the overall tax outgo for middle income earner group in FY 2023-24.

Rebate limit on personal income tax increased from Rs 5 lakhs to Rs 7 lakhs. The rebate will be only for those in the new tax regime.

Number of slabs reduced to 5 and tax exemption limit raised to Rs 3 lakh in new tax regime. Tax rates reduced for each slab with the highest of 30% for Rs 15 lakhs and above.

Salaried persons with income of Rs 15.5 lakhs or more will benefit by Rs 52,500 due to standard deduction.

Leave encashment limit is increased to Rs.25 lakh for retirees, up from Rs.3 lakh.

Buzzing Index:

The Nifty FMCG index rose 1.13% to 44,958.30. The index has added 1.67% in two sessions.

ITC (up 2.57%), Varun Beverages (up 2.32%), Godrej Consumer Products (up 1.8%), Tata Consumer Products (up 1.55%) and Marico (up 1.46%) were the top gainers.

Among the other gainers were Britannia Industries (up 1.24%), Dabur India (up 0.75%), Nestle India (up 0.38%), United Spirits (up 0.24%).

On the other hand, Emami (down 3.29%), Procter & Gamble Hygiene and Health Care (down 2.48%) and United Breweries (down 1.03%) moved lower.

Stocks in Spotlight:

TVS Motor fell 1.87%. The 2-wheeler maker's total sales rose by 3% in January 2023 with sales of 275,115 units as against 266,788 units in January 2022.

Tata Motors slipped 1.22%. The company announced that its total domestic and international sales for January 2023 stood at 79,681 vehicles, up by 10% compared with 72,485 units sold during January 2022.Maruti Suzuki declined 1.46%. The car major said that its total sales jumped 11.76% to 1,72,535 units in January 2023 as compared with 154,379 units in January 2022.Mahindra & Mahindra (M&M) lost 1.91%. M&&M said that its overall auto sales for the month of January 2023 stood at 64,335 vehicles, registering a growth of 37.46% as against 46,804 vehicles sold in January 2022.

Escorts Kubota fell 2.97%. The company's Agri Machinery Segment sold 6,649 tractors in January 2023, registering a growth of 16.5% as compared with 5,707 tractors sold in January 2022.Bajaj Auto shed 0.28%. The two-wheeler maker's total sales declined 21% to 2,85,995 units in January 2023 compared with 3,63,443 units sold in January 2022.Jubilant FoodWorks slumped 6.26%. The QSR chain operator's standalone net profit tumbled 35.5% to Rs 88.58 crore as against Rs 137.33 crore posted in Q3 FY22.

Coal India declined 2.05%. The company posted a consolidated net profit of Rs 7,719.11 crore in Q3 FY23 from Rs 4,556.54 crore recorded in Q3 FY22. Net sales rose to Rs 32,429.46 crore in Q3 FY23 from Rs 25,990.97 crore recorded in Q3 FY22.

Indian Hotels Company (IHCL) jumped 8.67%. The company's consolidated net profit surged 403.5% to Rs 382.71 crore in Q3 FY23 compared with Rs 76.01 crore in Q3 FY22.

Cholamandalam Investment and Finance Company surged 5.97%. The company's net profit rose 30.6% to Rs 684.29 crore on 32.4% jump in total income to Rs 3,375.01 crore in Q3 FY23 over Q3 FY22.

Global Markets:

European markets and their Asian peer traded in the green on Wednesday with investors keeping a close eye on the U.S. Federal Reserve's next monetary policy decision later today.

China's factory activity in January signaled a further contraction from previous readings, albeit at a slower pace, marking the sixth monthly contraction in a row. The Caixin manufacturing Purchasing Managers' Index for January came in at 49.2 on Wednesday, a slightly higher reading than December's 49.

Japan's factory activity logs another contraction in January, marking a third straight month of contraction. The au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index held steady at 48.9, below the 50-point mark separating growth from contraction.

US stocks edged higher on Tuesday on the back of strong earnings and encouraging inflation data.

The Fed is expected to hike rates by one-quarter of a percentage point. Investors will be looking for clues about how much higher the central bank will take rates in the fight against inflation.

Nifty slides below 17,600 mark; PSU banks tumble.

The key equity benchmarks traded with minor gains in mid-afternoon trade as the bourses witnessed across the board profit booking. The Nifty traded below the 17,600 mark after the hitting the day's high at 17,972.20 in afternoon trade.

The Budget for 2023-24 was laid down in the Parliament by the Union Finance Minister. Investors cheered after the Central Government announced a slew of measures to boost capital expenditure spending in country while simultaneously providing relief to highest taxpayers, all this coupled with reigning the fiscal deficit to below 4.5% of GDP by 2025-26.

The barometer index, the S&P BSE Sensex, was down 70.25 points or 0.12% to 59,620.15. The Nifty 50 index lost 68.60points or 0.39% to 17,593.55.

In the broader market, the S&P BSE Mid-Cap index fell 1.11% while the S&P BSE Small-Cap index declined 0.75%.

The market breadth was strong. On the BSE, 1394 shares rose and 2085 shares fell. A total of 137 shares were unchanged.

Union Budget 2023-24:

Finance Minister Nirmala Sitharaman is currently presenting Budget 2023 in the Parliament. This is the final full-fledged budget of the Narendra Modi government before the general election next year.

FM Sitharaman said fiscal deficit for 2023-24 is estimated at 5.9%. FY23 fiscal deficit is revised at 6.4% of GDP.

I reiterate my intention to bring the fiscal deficit below 4.5% of GDP by 2025-26, FM Nirmala Sitharaman said.

FY24 gross borrowings is set at Rs 15.4 lakh crore. Net market borrowings budgeted at 11.8 lakh crore in FY24, says Finance Minister.

Sitharaman in her Budget speech today said that India's FY23 GDP growth is estimated at 7%.

The government is increasing capital investment outlay by 33% to Rs 10 lakh crore, which would be 3.3% of GDP. This is highest ever capital outlay by India.

The government has announced capital outlay of Rs 2.40 lakh crore for railways, an increase of 9x over FY14.

The outlay for PM Awaas Yojana is being enhanced by 66% to over Rs 79,000 crore.

50 additional airports, heliports, water aerodromes, advanced landing zones will be revitalised. Cities will be incentivised to improve creditworthiness for municipal bonds. About 100 critical transport infra projects for steel, ports, fertiliser, coal, foodgrain sectors have been identified with an investment of Rs 75,000 crore including Rs 15,000 crore from private sources.

The government will extend 50-year interest free loan to State governments for one more year, FM Sitharaman said.

The government has announced Rs 35,000 crore priority capital for the energy transition. Battery storage will get viability gap funding.

The government has allocated Rs 19,700 crore to the National Hydrogen Mission. The objective is to reach hydrogen production capacity of 5 metric million tonnes by 2030.

The government will launch Pradhan Mantri Kaushal Vikas Yojana 4.0.

A one-stop solution for reconciliation & updating of identity and address of individuals maintained by various govt agencies, regulators and regulated entities will be established using DigiLocker service and Aadhaar as foundational identity.

For business establishments required to have Permanent Account Number, the PAN will be used as a common identifier for all Digital Systems of specified government agencies.

FM said 50 tourist destinations will be selected through challenge mode to be developed as a whole package for domestic and international tourism. States will be encouraged to set a 'Unity Mall' in State capital or the most popular tourist destination in the state for the promotion and sale of 'One District, One product' and GI products and other handicraft.

The Finance Minister has announced new income slabs bringing down the overall tax outgo for middle income earner group in FY 2023-24.

Rebate limit on personal income tax increased from Rs 5 lakhs to Rs 7 lakhs. The rebate will be only for those in the new tax regime.

Number of slabs reduced to 5 and tax exemption limit raised to Rs 3 lakh in new tax regime. Tax rates reduced for each slab with the highest of 30% for Rs 15 lakhs and above.

Salaried persons with income of Rs 15.5 lakhs or more will benefit by Rs 52,500 due to standard deduction.

Leave encashment limit is increased to Rs.25 lakh for retirees, up from Rs.3 lakh.

Numbers to Track:

The yield on India's 10-year benchmark federal paper fell to 7.292 from its close of 7.343 recorded in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 81.7800, compared with its close of 81.8800 during the previous trading session.

MCX Gold futures for 3 February 2023 settlement rose 0.85% to Rs 57,730.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.14% to 101.95.

The United States 10-year bond yield declined 1.52% to 3.475.

In the commodities market, Brent crude for March 2023 settlement rose 64 cents or 0.75% to $86.10 a barrel.

Buzzing Index:

The Nifty PSU Bank index fell 4.33% to 3,833.25. The index had advanced 4.85% in the past two sessions.

Bank of Baroda (down 3.93%), Canara Bank (down 3.36%), Bank of Maharashtra (down 3.12%), Indian Bank (down 2.95%) and Punjab & Sind Bank (down 2.55%) were the top losers.

Among the other losers were Punjab National Bank (down 2.52%), Union Bank of India (down 2.23%), UCO Bank (down 1.85%), State Bank of India (down 1.8%) and Indian Overseas Bank (down 1.41%).

Shares trade in volatile manner; FM expects India to grow at 7% in FY23.

 

The key equity indices traded in a volatile manner in mid-morning trade as the Budget for 2023-24 is being currently presented in the Parliament by the Union Finance Minister. The Nifty traded below the 17,800 mark. Bank stocks advanced for third consecutive sessions.

The barometer index, the S&P BSE Sensex, was up 436.74 points or 0.73% to 59,986.64. The Nifty 50 index added 114.60 points or 0.65% to 17,776.75.

In the broader market, the S&P BSE Mid-Cap index gained 0.94% while the S&P BSE Small-Cap index advanced 1.06%.

The market breadth was strong. On the BSE, 2289 shares rose and 1011 shares fell. A total of 157 shares were unchanged.

Union Budget 2023-24:

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved Union Budget 2023-24.

Finance Minister Nirmala Sitharaman is currently presenting Budget 2023 in the Parliament. This is the final full-fledged budget of the Narendra Modi government before the general election next year.

Sitharaman in her Budget speech today said that India's FY23 GDP growth is estimated at 7%.

The seven priorities of the Union Budget are inclusive development, reaching the last mile, infra & investment, unleashing the potential, green growth, youth power and financial sector.

FM said that an Agriculture Accelerator Fund will be set up to encourage agri-startups by young entrepreneurs.

Continuing our commitment to food security, we're implementing from 1 January 2023, a scheme to supply free food grain to all Antyodaya and priority households for one year under PM Garib Kalyan Ann Yojana, FM said.

She added that the government will launch the Atmanirbhar Clean Plant Programme to improve availability of disease-free quality planting material for high-value horticultural crops at an outlay of Rs 2,200 crore.

Buzzing Index:

The Nifty Bank index rose 1.03% to 41,073.85. The index has added 1.81% in three sessions.

ICICI Bank (up 3.11%), HDFC Bank (up 1.63%), Kotak Mahindra Bank (up 1.53%), Axis Bank (up 1.13%) and AU Small Finance Bank (up 1.11%) were the top gainers.

Among the other gainers were IndusInd Bank (up 0.71%), State Bank of India (up 0.65%), IDFC First Bank (up 0.6%), Bandhan Bank (up 0.57%).

On the other hand, Bank of Baroda (down 0.92%), Punjab National Bank (down 0.84%) and Federal Bank (down 0.07%) turned lower.

Stocks in Spotlight:

Escorts Kubota rose 0.38%. The company's Agri Machinery Segment sold 6,649 tractors in January 2023, registering a growth of 16.5% as compared with 5,707 tractors sold in January 2022.

Bajaj Auto added 0.34%. The two-wheeler maker's total sales declined 21% to 2,85,995 units in January 2023 compared with 3,63,443 units sold in January 2022.

APAR Industries jumped 14.47%, rising for the second straight session after strong Q3 results. It had hit an upper circuit limit of 20% to settle at Rs 1,689.45 on Tuesday, 31 January 2023.

The company during trading hours on Tuesday announced that its consolidated net profit surged 210% to Rs 170 crore and revenue jumped 77% to Rs 3,942 crore in Q3 FY23 over Q3 FY22. EBIDTA stood at Rs 349 crore, up 174% YoY.