Sensex ends 158 pts up on Budget day after 2000 pts-swing, Nifty near 17600

CLOSING BELL: Broader markets were unable to recover from the intra-day lows with BSE Midcap and Smallcap indices dropping up to 1 per cent

Image SI Reporter New Delhi
Budget & Market: Sensex off highs, up 200 pts; Adani Ent slumps 15%, LIC 5%

CLOSING BELL: It was an eventful day for equity markets, which witnessed wild swings between losses and gains, to eventually end the Budget day session with nominal gains. The BSE Sensex moved 1,956 points between the highest and lowest points of the day. It leapt 1,223 points to the day's high tracking the populist announcements made in the Budget but tanked 733 points later. Finally, the index recovered to close 158 points higher at 59,708. The NSE Nifty oscillated 263 points in the session to end 46 points lower at 17,616.  

Adani Enterprises and Adani Ports were the top culprits behind the erasure of benchmark gains. The two sank 27 per cent and 18 per cent, respectively on the Nifty, after Credit Suisse's private bank stopped accepting bonds of the group companies as collateral for margin loans, Bloomberg reported

The other top laggards on the Nifty were HDFC Life, SBI Life, which dropped up to 11 per cent. Bajaj Finserv, SBI, IndusInd Bank, BPCL and M&M slipped 2-5 per cent. 

Meanwhile, ICICI Bank, HDFC twins, ITC, Infosys, TCS, Wipro, L&T, Tata Steel were the top Sensex winners that helped it recoup losses. 

Among indices, Nifty PSB and Metal indices shed the most with cuts of up to 6 per cent, while FMCG and IT pockets were the only sectoral outperformers. 

Broader markets were unable to recover from the intra-day lows with BSE Midcap and Smallcap indices dropping up to 1 per cent. 

Rout in Adani Group stocks triggers panic sell-off in PSU banks

State Bank of India, Bank of Baroda (BoB), Canara Bank, Punjab National Bank, Union Bank of India, Indian Bank and Indian Overseas Bank were down in the range of 5 per cent to 10 per cent. READ

BS SPECIAL | ITC, NTC Ind: Strategies for Cigarette-related stocks after duty hike

Shares of cigarette-related companies will be in limelight starting today, as the Finance Minister raised Natural Calamity Contingent Duty (NCCD) on certain cigarettes by 16 per cent in her Union Budget 2023 speech. READ

4:10 PM

Expert comment: Budget is a 'Panch..Amrit' budget, balancing growth with reasonable prudence

The budget is a 'Panch..Amrit' budget, balancing growth with reasonable prudence. It has the potential to boost consumption across the pyramid, with direct tax benefits at both the lower and higher ends, including an increase in rebates at the lowest tax slab and a reduction in the tax rate at the highest tax slab. It also features targeted rural spending through food grain schemes.

Views expressed by Trideep Bhattacharya,  CIO-Equities, Edelweiss MF

4:07 PM

Expert comment: What is bad for the insurance sector could result in being better for the MF sector

What is bad for the insurance industry in the budget presented today by the finance minister (FM) Nirmala Sitharaman, will actually act as a blessing in disguise for the mutual fund (MF) industry. A lot of mis-selling was happening in the insurance industry Where investors were sold a packaged investment cum insurance product as endowment scheme or some other schemes, where premium outlay for investors in a financial year used to be Rs 5 lakh and above. So, they were actually sold some investment product with some insurance part in it. Now, with the tax advantage of such schemes going away, such products will become less lucrative for investors and therefore, we believe that large part of these money which would have otherwise have been invested in insurance, will now come either to MFs or fixed deposits (FDs) or Equities. So, this will be the indirect implied benefit, so what is bad for the insurance sector could result in being better for the MF sector.

Views expressed by Jimeet Modi, Founder & CEO, SAMCO Group

4:01 PM

MARKET COMMENT: Vinod Nair, Head of Research at Geojit Financial Services

A well-tuned budget with strong  emphasis on consumption and capex has lifted optimism in the market; however, volatility sparked in the latter half as focus shifted back to the Adani saga and FOMC meeting. Life insurance players witnessed heavy selling as the budget pushed for the new tax regime, making insurance products less appealing as a tax-saving tool.

3:58 PM

Expert comment: Mutual funds would benefit from change in taxation on insurance companies

I would say the budget was very credible as the numbers presented did not throw up any negative surprises. It shows a clear focus on increasing capital expenditure which shows commitment to drive the future growth. Also, focus on farm economy will lift rural growth. The steps taken to rationalize taxes for individuals and high tax payers is in the right direction and will boost consumption which in my opinion is the need of the hour for the next round of growth. The budget also addressed the ease of doing operation further by giving importance to simplify processes including the current regulatory framework is once again in the right direction to drive new India. Mutual funds would benefit from the change in taxation on insurance companies and change in capital gains limit to buy real estate would augur well for debt funds. Overall, I would rate this budget 10/10.

Views expressed by A.Balasubramanian, MD and CEO of Aditya Birla Sun Life AMC

3:56 PM

Expert comment: New tax regime augurs well for consumption-led growth

Based on the framework of inclusive development and infrastructure play, the Union Budget 2023- 24 has laid the roadmap for a sustainable long-term economic pathway. Continuing on the path of fiscal consolidation, the budget has proposed effective measures for progress with enhanced capital outlay and financial prudence. The infra development will boost private investment and spur employment generation. On the other hand, the various skill development and educational programmes will not only enhance employability but also enhance consumption. The new tax regime also augurs well for consumption-led growth. Focus on green energy adoption and adoption of new-age digital technologies will strengthen the sustainable growth agenda.

Views expressed by Vishal Kampani- Non-executive Vice Chairman, JM Financial

3:52 PM

Gem stocks climb up to 4% after govt boosts measures for lab-grown diamonds

3:49 PM

Auto ancillaries rally after govt pushes for in-house battery manufacturing

3:43 PM

Adani Enterprises, Adani Ports, HDFC Life top Nifty50 laggards

3:41 PM

ICICI Bank, JSW Steel, ITC top Nifty50 leaders

3:39 PM

Broader markets bleed; India VIX drops in red

3:36 PM

Barring Nifty FMCG and Nifty IT, all sectors edge lower

3:35 PM

SENSEX HEATMAP: 16 out of 30 index constituents close in green

3:34 PM

CLOSING BELL: Sensex trims 1,000 pts from day's high, ends at 59,708

3:32 PM

CLOSING BELL: Nifty50 slips below 17,650, down over 50-odd points

3:20 PM

Comment:: Budget 2023 makes bold promises on an all-inclusive growth.

In Budget 2023 FM has made bold and forward-looking promises with strong focus on infrastructure, manufacturing, health, agriculture, green initiatives and inclusive growth. If execution can keep pace and promises can be delivered India is certainly poised for a high level of growth and stability with all countrymen getting benefit. Revamping the credit guarantee scheme and easing KYC with the help of Diggi locker is quite a welcome move for the individual AMS and MSME.
- Rajesh N Gupta, Managing Partner, SNG & Partners
3:07 PM

BLOOMBERG: Credit Suisse's private bank halts margin loans on Adani bonds

>> As per a Bloomberg report, Credit Suisse Group AG has stopped accepting bonds of Gautam Adani’s group companies as collateral for margin loans to its private banking clients.

>> This is a sign that scrutiny of the Indian tycoon’s finances is growing after allegations of fraud by Hindenburg Research.

>> The Swiss lender’s private banking arm has assigned a zero lending value for notes sold by Adani Ports and Special Economic Zone, Adani Green Energy and Adani Electricity Mumbai. 
3:04 PM

Market Check:: Sensex sinks almost 2,000 pts from day's high in intra-day deals

The BSE benchmark index had rallied to a high of 60,773 during the Budget annoucement. However, heavy selling in the last one-hour of trades saw the Sensex slide to a low of 58,817 - down 1,956 points from the day's high.

The Sensex had recouped losses and was almost flat.


2:58 PM

Comment:: Budget 2023 will help India remain amongst fastest growing economies globally

“I believe it is a highly pragmatic and growth-oriented budget which will help India remain amongst fastest growing economies globally. FY23-24 budget is walking the talk and continues Govt focus on 1) bottom end of pyramid with free food grains 2) taxation relief to middle class 3) enhancing Agri credit 4) heightened capex spend with Rs13.7 trillion capex and 5). focus on green energy, energy transition etc. I believe that the budget is targeting inclusive growth with focus on increasing consumption through benefits to middle class and impetus to industry to spur investment for domestic manufacturing and infrastructure development.”
- Amisha Vora, Chairperson and MD, Prabhudas Lilladher Group
2:50 PM

Budget 2023 proposals will put India firmly back on the FII's radar, says Andrew Holland

Foreign investors, too, will take a positive view of this given their concerns about global recession and the recent developments back home with respect to the Adani group, which have hurt market sentiment. The change in personal income-tax structure, on the other hand, will also give a boost to consumption as it will give more money in the hands of spenders. READ MORE

2:45 PM

Adani group :: Rout deepens in stocks; Adani Ent, Adani ports, Ambuja Cement worst hit

First Published: Feb 01 2023 | 07:19 AM IST

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