Indian Union Budget 2021-22: With just a week left for Union Budget 2021, Indian share markets are witnessing extreme volatility. In the week gone by, BSE Sensex went past the crucial 50,000 and Nifty 50 crossed the psychological level of 14,750. Benchmark indices ended the week on a flat note with a negative bias. Analysts expect this high volatility to continue for next couple weeks. Ahead of Budget, market watchers advise a few sectors and stocks which may remain in focus during this week. Earlier on Saturday, Finance Minister Nirmala Sitharaman, Minister of State for Finance Anurag Thakur and senior officials of the finance ministry participated in the Halwa Ceremony, marking the beginning of compilation of budget documents. On the back of COVID-19, this year budget documents will be distributed electronically to the Members of Parliament (MPs). Here are a few top sectors and stock picks for ahead of Budget 2021
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Minutes ahead of the closing bell on Monday, S&P BSE Sensex was down more than 500 points sitting at 48,364. Nifty 50 gave up 14,300.
Sensex is down 300 points minutes ahead of the closing bell on Monday. Nifty too was trading with losses, giving up 14,300 levels.
Asian Paints share price fell 2.7% on Monday morning to trade at Rs 2,525 per share. With this, the stock is down 9% since January 21 or three trading sessions. The fall comes despite a stellar quarterly earnings performance posted by the firm where its net profit soared 62% on-year basis to Rs 1,238 crore, beating street expectations. However, the fall in stock price has not bettered brokerage firms from upgrading the target price for Asian Paints. Global brokerages such as Morgan Stanley and Credit Suisse believe the stock will outperform and hence have increased the target price of the same.
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Kotak Mahindra Bank’s net profit in the fiscal third quarter came in at Rs 1,853 crore against Rs 1,595 crore in the previous quarter. Net interest income was at Rs 4,007 crore. Gross NPAs stood at 2.26%, down from 2.55% in the previous quarter.
Sensex was down more than 200 points with a little over an hour before the closing bell. Nifty 50 was nearing 14,300.
Sensex was still trading flat, dancing between gains and losses. Nifty 50 too was trading with flat but with a positive bias.
With the virus having negatively impacted economies worldwide it led to a contraction of 23.9% in GDP for India (Q12020-21). GDP growth numbers for nations such as the United States of America, United Kingdom etc. have also been in the range of (-9.1%) and (-20.4%) resp for Q1, 2020. However, with the Indian economy showing signs of recovery in Q2 FY21, GDP growth estimates saw a revision. As per the first advanced estimates released by the National Statistical Office (NSO), the agriculture sector showed positive growth and services sector was the worst hit. India’s real GDP is estimated to contract by (-7.7%) in 2020-21, compared to a growth rate of 4.2% in 2019-20.
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“Last week gold prices increased 0.90% and closed at 49140 levels and silver prices also increased sharply by 2.90% and closed at 66642 levels. The expectation of Stimulus package for US economy by new elected President Joe Biden. Weakness in Dollar is supportive for the Gold and Silver. As of today Traders can go for buy in Gold at 49000 levels with the stop loss of 48700 levels for the target of 49700 levels. They can also for buy in Silver at 66500 levels with the stop loss of 65900 levels for the target of 68500 levels. We are expecting that gold may test $1900 levels and Silver may test $27 levels again soon,” said Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking
Reliance Industries Ltd (RIL) share price fell as much as 4.7 per cent to Rs 1,953.40 apiece on BSE today, despite posting a 12.55 per cent rise in the consolidated net profit to Rs 13,101 crore in October-December quarter. While the total income of the oil-to-telecom conglomerate fell 20 per cent on-year to Rs 1.28 lakh crore in the fiscal’s third quarter.
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The newly sworn-in Joe Biden Administration seems to be good for the five biggest technology stocks on Wall Street. Shares of Facebook, Apple, Amazon, Netflix, and Google — collectively known as the FAANG stocks, recorded healthy gains during the previous week of trade. Although the 46th US President has so far not done anything particularly for the tech companies but the stock market rally has supported the most notable trade on Wall Street and helped investors make profits.
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“Our ADD rating on RIL with a price target of Rs 2,330 /sh is premised on (1) induction of Facebook, Google, Intel and Qualcomm as partners in Jio Platforms, which should help the company accelerate the growth of digital connectivity and create value in the digital ecosystem through technology offerings, (2) recovery in refining and petchem businesses in FY22E, (3) the emergence of a clear path to a stronger balance sheet, and (4) stake sale in the retail business,” said Harshad Katkar, Institutional Research Analyst, HDFC Securities in a recent note.
After the initial two days of subscription, Home First Finance IPO has so far been subscribed 2.22 times. Today will be the last day for investors to subscribe to the technology drive non-banking finance company’s issue. The third IPO of 2021, Home First Finance is just behind IRFC and Indigo Paints. While today will be the last day for Home First’s IPO, the day will also mark the opening of Stove Kraft Ltd’s issue. The kitchen appliance manufacturer and home solutions firm is looking to raise Rs 412 crore from investors.
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Sensex was trading flat after nearly an hour of trade amid high volatility. Nifty was above 14,350.
While the benchmarks were down in red, Bank Nifty was outperforming them and sitting in the green. Bank Nifty was up 0.33% at 31,270 while Nifty 50 was trading in red, below 14,350.
We expect USD/INR to trade a 72.80-73.50 range for the week. The key downside risk would be the RBI stepping aside on account of broad USD weakness. The yield on the 10y benchmark is likely to hover around 5.90% heading into the budget. After the devolvement in the Gsec auction on Friday, we may see the RBI announce more frequent OMOs and step up the quantum of OMOs as well in order to manage market sentiment. Equities may continue to see some further profit-taking ahead of the key risk event. USD/INR is likely to open around 73.00 and trade a 72.90-73.20 range intraday. Month-end Exporter selling is likely to cap upside. However, nationalized banks most likely will keep accumulating Dollars. 72.90 is an extremely crucial level, break of which could trigger stops. Asian currencies are trading flat against the US Dollar.: Abhishek Goenka, Founder and CEO, IFA Global
“Today the trend in Nifty is likely to be dictated by the leading banking stocks and FII action. FIIs have poured in Rs 24469 crores net in equity so far in 2021supporting the market. So this space has to be watched closely. Budget expectations will influence the market significantly in the coming days,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Reliance Industries was down more than 4% in less than an hour of trade on Monday morning. However, now the stock was inching up, trimming its losses.
India VIX or the fear gauge of domestic equity markets was up 5%, sitting at 23.67 levels as volatility seemed high on Monday morning. Nifty was moving between 14,250-14,400 range.
Nifty moved below 14,300 mark on Monday morning while the S&P BSE Sensex was down more than 250 points.
‘Even though the markets have opened in the green, a stiff resistance awaits the index at 14550-14600. We will resume the uptrend only if we can manage to get past that trading zone on the back of healthy volumes. Until then the Nifty seems nervous in the short-term time frame with a downward bias. We can go down to 14000-14100 levels,” said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
Sensex and Nifty gave up nearly all gains and began trading flat after the initial few minutes of trading. Sensex was below 49,000 while Nifty was below 14,400.
Small and Midcap indices gained on Monday morning, following the benchmark Indices.
Sensex opens 200 points higher, regains 49,000. Nifty 50 was just below 14,500. Nifty Midcap 50 was up 1%.
Sensex breached 49,000 mark in pre-open session while Nifty was just below 14,500.
Indian share markets will witness extreme volatility in this week just ahead of Union Budget 2021, with the January F&O contracts expiring on January 28, 2021, says Sanjiv Bhasin, Director, IIFL Securities Ltd. Besides Budget, Sanjiv Bhasin says that factors such as global liquidity, rise in bonds or US Dollar, and stimulus announcement from US President Joe Biden, are among few factors which may impact Indian share markets in the coming days.
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Sensex was still above 49,000 mark after having zoomed more than 400 points. Nifty was comfortably above 14,500.
Sensex and Nifty surged massively in the pre-open session on Monday morning. Sensex breached 49,000 mark, gaining more than 500 points while Nifty 50 zoomed past the 14,500 levels.
Vinit Bolinjkar, Head of Research, Ventura Securities, sees a limited upside in Indian share market from the current levels. Further, the execution of budget announcements will sway the market sentiment. He also said that only quality businesses are expected to sustain their valuation and do well in future. One has to look at the promoters/board of directors/stakeholders, quality of the business, business outlook and valuation before investing in any IPO.
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We are of the view that the structure of the index is volatile and likely to continue for the next couple of weeks. In the short run, Reliance Quarterly result’s outcome and the trend of global markets would be trend deciders. Technically, post strong uptrend rally, the Nifty has formed the Bar Reversal candlestick pattern which clearly indicates indecisiveness between bulls and bears. Bears are becoming stronger.
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Indian share markets benchmarks, BSE Sensex and Nifty 50 are staring at a strong opening on Monday, as indicated by the trends on SGX Nifty. Nifty futures were trading 132.50 points or 0.92 per cent higher at14,489.50 on SIngaprean Exchange. Investors will closely eye developments related to Union Budget 2021, COVID-19 vaccine, stock-specific action induced by corporate earnings, oil prices, rupee movement and other global cues.
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The Covid virus drew a greater divide between the rich and the poor. Statistically, an unskilled worker would take a whopping 10,000 years to make as much money as Reliance Industries’ Mukesh Ambani made in an hour during the pandemic. Further, it would take the same person three years to make what one of Asia’s richest men Mukesh Ambani made in a second, according to Oxfam’s latest report ‘The Inequality Virus’. Moreover, Mukesh Ambani’s pandemic earnings would keep the 40 crore informal workers, who are at risk of falling into poverty due to Covid, above the poverty line for at least five months.
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A total of 41 BSE-listed companies including Larsen & Toubro, Kotak Mahindra Bank, ICICI Securities, UCO Bank, Can Fin Homes, Mahindra Holidays, Sharda Corpchem, APL Apollo Tubes, Navin Fluorine, among others are slated to announce their third-quarter earnings today.
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Foreign portfolio investors (FPI) remained net buyers to the tune of Rs 18,456 crore so far in January as global liquidity led to continued investment in emerging markets. According to depositories data, overseas investors pumped in Rs 24,469 crore into equities but pulled out Rs 6,013 crore from the bonds market between January 1-22. The total net investment during the period under review stood at Rs 18,456 crore.
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Mihir Vora, director and chief investment officer of Max Life Insurance in an interview with FE’s Urvashi Valecha talks about the expectations from the upcoming Budget and also discusses why he expects smaller companies to outperform.
SGX Nifty was up more than 100 points during the early hours of trade on Monday. This surge in SGX Nifty hints at a gap up start for Nifty and Sensex.
