Market updates: Sensex rose as much as 2,478 points.
Indian equity benchmarks on Monday recorded their best performance on a budget day in over two decades after the finance minister announced a slew of measures to revive the pandemic-hit economy, while bond yields jumped sharply on the government's plans to raise more funds from the market. The NSE Nifty 50 surged 4.7 per cent to 14,281.2, while the S&P BSE Sensex jumped 5 per cent to 48,600.61 after six sessions of losses in the run-up to the budget. This marked the Nifty's best daily performance on a federal budget day since at least 1996, according to Refinitiv data. Finance Minister Nirmala Sitharaman proposed doubling healthcare spending, a vehicle scrappage policy, recapitalisation of public-sector banks and divestment of some state-owned lenders, aiming to bolster an economy that plunged into its deepest recorded slump amid the virus outbreak.
Here are the highlights of today's market session:
Most Of The Nifty 50 Shares End Higher Led By ICICI Bank
Most of the shares in the Nifty 50 basket ended higher in trade today led by gains in IndusInd Bank's 15 per cent gain. ICICI Bank, Bajaj Finserv, State Bank of India, Larsen & Toubro, HDFC, Shree Cements, UltraTech Cement and axis Bank also rose between 8-13 per cent.
On the flipside, UPL, Dr Reddy's Labs, Cipla, Tech Mahindra and Hindustan Unilever were among the notable losers.
Nifty Bank Index Surges Over 8% To Record High
The Nifty Bank index rose over 8 per cent to close at record high after the budget proposed creation of bad bank to tackle the NPA problem and also proposed infusing Rs 20,000 crore in state-tun banks.
Top gainers in banking space:
- IndusInd Bank up 15%
- ICICI Bank up 13.36%
- RBK Bank up 11.37%
- Bank of Baroda up 8.89 per cent
- Axis Bank up 7.71%
Sensex Surges Over 2,200 Points Nifty Above 14,200
The Sensex and NSE Nifty 50 indexes were trading on a strong note as market participants welcomed Budget proposals presented by Finance Minister Nirmala Sitharaman.
Key market stats:
- In the Nifty 50 basket of shares 43 were trading higher
- Market breadth was positive as 1,884 shares were advancing while 1,001 were declining on the BSE
- ICICI Bank, HDFC, HDFC Bank, Reliance Industries and Larsen & Toubro were top Sensex movers
- Nifty bank index with gain of over 6% was top sectoral gainer
Metal Shares Rally After Government Reduces Custom Duty To 7.5%
Shares of metal companies were trading higher after the government in Budget 2021 proposed to reduce customs duty uniformly to 7.5 per cent on semis, flat, and long products of non-alloy, alloy, and stainless steels.
Top gainers in metal space:
- SAIL up 7.11%
- Hindustan Zinc up 5.69%
- Hindalco up 4.51%
- Hindustan Copper up 2.99%
- Tata Steel up 2.83%
Premium On Nifty Bank 32,000 Strike Price Call Option Surges Over 400%
Premium on Nifty Bank 32,000 call option contract surged over 400 per cent to Rs 816. On the flipside, premium on Nifty Bank 30,000 strike price dropped 86 per cent to Rs 52.
Nifty Bank Index Surges Over 6%, Most In 9 Months
Gauge of banking shares on the National Stock Exchange rallied as much as 6.81 per cent, the most since May, after government in Budget 2021 said that it will set up a company to manage bad debt for banks, which is expected to reach record levels this year, threatening financial stability.
The firm will hold problem loans for banks, which can then be sold on to investors at a reduced price, according to plans outlined by Finance Minister Nirmala Sitharaman in a budget speech on Monday. The Nifty Bank index climbed as much as 2,084 points to hit an intraday high of 32,649.50. All the 12 shares in the index were trading higher.
Top gainers in banking space:
- IndusInd Bank up 11.59%
- ICICI Bank up 11%
- State Bank of India up 8.60%
- Bank of Baroda up 6.39%
- RBL Bank up 6.10%
Markets Rallying On No Negative Surprises In Budget 2021: AK Prabhakar
"The markets are rallying on the back of no negative surprises in the Budget speech by Finance Minister Nirmala Sitharaman,"AK Prabhakar, head of research at IDBI Capital told NDTV. Highest ever infra spending announced in Budget is also boosting the investors' sentiment, he added.
Realty Stocks Gain On Government's Push For Affordable Housing Sector
Shares of real estate developers were trading higher after Finance Minister Nirmala Sitharaman announced tax exemption for notified affordable housing for migrant workers. She also proposed that deduction of payment of interest on affordable housing will be extended for one year.
Top gainers in real estate:
- Indiabulls Real Estate up 4.5%
- Prestige Estates up 4.25%
- Phoenix Mills up 4%
- Brigade Enterprises up 1.888%
- DLF up 1.61%
Government to Borrow Rs 80,000 Crore In Current Financial Year: Finance Minister
The government will borrow additional Rs 80,000 crore from the bond market in current financial year to meet expenditure, Finance Minister Nirmala Sitharaman said while presenting Budget 2021.
No Income Tax Filing For Senior Citizens, Says Finance Minister
Finance Minister Nirmala Sitharaman in Budget 2021 proposed that the senior citizens above the age of 75 having pension or interest income will not be liable to file income tax returns.
Fiscal Deficit For Current Financial Year Pegged At 9.5% Of GDP
The government has pegged fiscal deficit target of 9.5 per cent of GDP for the current financial year. For the next financial year government expects fiscal deficit to be 6.8 per cent of GDP.
State-Run Banks Advance After Government Proposes Rs 20,000 Crore Capital Infusion
Shares of state-run banks were trading higher after Finance Minister Nirmala Sitharaman said the government would infuse Rs 20,000 crore into public sector banks (PSBs) in 2021-22, to meet the regulatory norms. For the current financial year also, the government had made a provision of Rs 20,000 crore for recapitalisation. Unveiling the Budget 2021-22 in the Lok Sabha, the finance minister said the government has proposed to infuse Rs 20,000 crore into the PSBs, to further consolidate financial health of banks.
The gauge of PSU banks on the National Stock Exchange - Nifty PSU Bank index rose 2 per cent.
Top gainers in PSU Banking space:
- Central Bank up 3.69%
- Bank of Baroda up 3.46%
- Indian Overseas Bank up 2.34%
- Bank of India up 2.01%
- Indian Bank up 1.81%
Market Breadth Remains Positive; Over 1,500 Shares Trade Higher On BSE
The market breadth was extremely positive as Finance Minister was presenting the budget for upcoming financial year. Over 1,500 shares were trading higher on the BSE compared with a little over 1,000 shares trading lower.
Government To Launch IPO Of Life Insurance Corporation In Fiscal 2022
Government proposes to launch Life Insurance Corporation's initial public offering (IPO) in financial year 2021-22.
Government Propose Capital Expenditure Of 5.54 Lakh Crore
Finance Minister Nirmala Sitharaman proposes sharp increase in capital expenditure for next fiscal at Rs 5.54 lakh crore, up from Rs 4.39 lakh crore last year.
Government Proposes Raising Foreign investment Limit In Insurance Sector To 74%
Shares of insurance companies rose after Finance Minister approved raising foreign direct investment limit in insurance sector to 74 per cent from 49 per cent.
- HDFC Life rose 0.83%
- ICICI Prudential advanced 0.54%
Finance Minister Proposes 7 New Textile Parks
Government Proposes To Set Up Development Financial Institution
Finance Minister Nirmala Sitharaman proposed to set up Development Financial Institution. Initially capital of Rs 20,000 crore will be provided to the institution and it will have a loan portfolio of Rs 5 lakh crore in three years.
Auto Shares Surge After Finance Minister Announces Scrappage Policy
Shares of auto companies surged after the government announced the scrappage policy for vehicles. Finance Minister Nirmala Sitharaman announced a voluntary vehicle scrapping policy to phase out old vehicles. Vehicles will undergo fitness tests after 20 years for passenger vehicles and 15 years for commercial vehicles, she said.
Top gainers in auto space:
- Mahindra & Mahindra up 2.2%
- Ashok Leyland up 1.9%
- MRF up 1.8%
- Tata Motors up 1.62%
- Bosch up 1.45%
- Maruti Suzuki up 1.45%
Finance Minister Earmarks Rs 64,000 Crore For PM Aaatmanirbhar Swasthya Scheme
Finance Minister while presenting Budget 2021 announced earmarking Rs 64,000 crore For PM Aaatmanirbhar Swasthya scheme. The scheme will provide support to over 17,000 rural and 11,000 urban health centres.
Following the finance minister's announcement healthcare stocks witnessed buying interest.
- Apollo Hospital up 2.5%
- Fortis Healthcare up 4%
- Metropolis up 2.73%
- Thyrocare up 2.15%
- Shalby Hospitals up 6%
Nifty Bank Index Surges Over 750 Points Led By IndusInd Bank, ICICI Bank
The gauge of banking shares - Nifty Bank index - rose as much as 767 points to hit an intraday high of 31,332.90. All the 12 banking stocks in the nifty Bank index were trading higher.
Here are top gainers in banking index:
- IndusInd Bank up 9%
- ICICI Bank up 5.2%
- HDFC Bank up 2.2%
- Bank of Baroda up 1.9%
- State Bank of India 1.45%
Maruti Suzuki Gains After January Sales Numbers
Shares of Maruti Suzuki rose 1 per cent to Rs 7,286 after it reported January monthly sales numbers.
Maruti Suzuki January sales highlights:
- Total domestic sales and exports rise 4.3% to 160,752 units versus 154,123 units (Y-o-Y)
- Mini segment sales decline 2.8% to 25,153 units
- Compact segment sales decline 8.8% to 76,395 units
- Mid-size car sales rise 61.3% to 1,347 units
- Total domestic sales rise 0.2% to 142,604 units
Rupee Rises 8 Paise To 72.88 Against US Dollar Ahead Of budget
The rupee appreciated by 8 paise to 72.88 against the US dollar in opening trade ahead of the Union Budget 2021-22 presentation in parliament. At the interbank forex market, the domestic unit opened at 72.89 against the US dollar, then inched higher to 72.88, registering a rise of 8 paise over its previous close.
Budget Will Be In Accordance With People's Expectations, Says Anurag Thakur
Union Minister of State for Finance Anurag Thakur on Monday asserted that the budget 2021-22 will be in accordance with people's expectations and added that the government is working towards a self-reliant India and making its economy grow.
"The Budget will be in accordance with people's expectations. Sabka Saath, Sabka Vikas, Sabka Vishwas is the agenda of the PM Modi's government. The government which functions on the mantra of ''Sabka Saath, Sabka Vikas, Sabka Vishwas'' gave a new direction to India by announcing the Aatmanirbhar package, protecting it from the pandemic and bringing the economy back on track swiftly," Mr Thakur told ANI.
Sensex Surges over 450 Points Led By Gains In Banking Stocks
The Sensex and Nifty 50 extended gains ahead of presentation of Union Budget 2021 by Finance Minister Nirmala Sitharaman. As of 10:30 am, the Sensex rose 430 points to 46,716 and Nifty 50 index rose 108 points to 13,742.
Top Nifty gainers:
- IndusInd Bank up 7.5%
- ICICI Bank up 5.2%
- HDFC up 3.2%
- Larsen & Toubro up 2.1%
- BPCL up 2%
Top Nifty losers:
- UPL down 8%
- Dr Reddy's Labs down 3.51%
- Tech Mahindra down 2.86%
- Wipro down 1.8%
- Divi's Labs down 1.5%
Budget 2021: 5 Key Numbers To Watch In Nirmala Sitharaman’s Budget
India's annual budget on Monday will be Prime Minister Narendra Modi's chance to spur demand and investments in an economy cratered by the world's second-biggest coronavirus outbreak.
IndusInd Bank Top Sensex Gainer, Surges 7%
IndusInd Bank was the top Sensex performer, up 7.06 per cent, followed by ICICI Bank, Sun Pharma, Housing Development Corporation (HDFC), Titan Company and Infosys.
Nirmala Sitharaman To Read Out Union Budget 2021 Through A Tab
Finance Minister Nirmala Sitharaman will present the Union Budget 2021 at 11 am. She will read out the Budget 2021 at the Parliament through a tab, instead of the traditional 'bahi khata'.
Tata Motors Slips After December Quarter Earnings
Shares of Tata Motors declined 0.2 per cent to Rs 262 after it announced December quarter earnings. Tata Motors net profit rose 67 per cent to Rs 2,906 crore compared with Rs 1,738 crore during the previous quarter.
Its revenue from operation rose 5.5 per cent to Rs 75,653.79 crore as against Rs 71,676.07 crore in the same quarter last year.
ICICI Bank Hits Record High After Profit Rises 19% In December Quarter
Shares of ICICI Bank rose as much as 5.83 per cent to hit record high of Rs 568.35 on the BSE after the Mumbai-based lender reported a 19 per cent growth in net profit to Rs 4,940 crore for the October-December quarter in the current financial year, as compared to Rs 4,146 crore in the year-ago period. The private sector lender reported growth in domestic and retail loans amid strong credit demand in the third quarter. ICICI Bank posted a net profit of Rs 4,251 crore in the second quarter of the current financial year.
The net non-performing asset (NPA) ratio was 0.63 per cent in the October-December quarter. The bank said that, not accounting for the Supreme Court's order on recognition of bad loans, the net NPA ratio would have been at 1.26 per cent, instead of 1.12 per cent in the previous quarter of the financial year.
Six Of 11 Sector Gauges Trade Higher Led By Nifty Bank Index
Six of 11 sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty Bank index's 1.3 per cent gain. Financial Services, private banking indexes were also trading over 1 per cent higher. On the flipside, pharma, IT and select realty stock were witnessing selling pressure.
Tata Motors, Tech Mahindra, ICICI Bank To Be in Focus Today
Tata Motors' net profit rose 67 per cent to Rs 2,906.5 crore in the December quarter from Rs 1,738.3 crore, while revenue rose 5.5 percent to Rs 75,653.79 crore from Rs 71,676.07 crore.
Tech Mahindra's consolidated net profit in the December quarter rose 23 per cent to Rs 1,309.8 crore from Rs 1,064.6 crore, while revenue increased 2.9 percent to Rs 9,647.1 crore from Rs 9,371.8 crore.
ICICI Bank's net profit in Q3FY21 rose 19.1 percent to Rs 4,939.6 crore from Rs 4,146.5 crore, while net interest income rose 16 percent to Rs 9,912.5 crore from Rs 8,545.3 crore, YoY.
Cipla reported sharply higher net profit at Rs 748.2 crore in Q3FY21 as against Rs 351 crore in Q3FY20, while revenue jumped 18.2 percent to Rs 5,168.7 crore from Rs 4,371 crore, YoY.
Vedanta reported higher profit at Rs 4,224 crore in Q3FY21 as against Rs 2,665 crore in Q3FY20, while revenue increased to Rs 22,498 crore from Rs 21,126 crore, YoY.
FIIs Sell Shares Worth Rs 5,931 Crore Ahead Of Budget 2021
The foreign institutional investors sold shares worth Rs 5,930.66 crore on Friday ahead of the Budget 2021 while domestic institutional investors bought shares worth Rs 2,443 crore.
The FIIs bought shares worth Rs 1.70 lakh crore in calendar year 2020.
Buy Nifty Put Options Ahead Of Budget, Says HDFC Securities
The Budget day could therefore turn out into a volatile session for the markets. The benchmark indices could swing wildly in either direction, depending on budgetary announcements.
HDFC Securities has therefore advised investors who are fully invested, to hedge their portfolio, either fully or partly, ahead of Budget Day by purchasing Nifty put options. Hedging is akin to an insurance policy and comes at a cost i.e. the premium that is paid for purchasing the put options. But the gains made in put options, in case of a market downside, would at least partly compensate for erosion in value of the stock portfolio.
January GST Revenue At Record High Of Rs 1.2 Lakh Crore
Goods and services tax or GST revenue collected in January stood at Rs 1.19 lakh crore, the finance ministry said on Sunday. The previous month's collection was Rs 1.15 lakh crore.
India's Foreign Exchange Reserves Rose By $1.091 Billion In Week Ended January 22
India's foreign exchange reserves rose by $1.091 billion to $585.334 billion in the week ended January 22, RBI data showed
Asia Shares Try To Rally, Retail Crowd Catches Silver Bug
Asian shares tried to rally on Monday as Wall Street continued to struggle with doubts about vaccine rollouts and economic recovery, while silver surged as newly empowered retail investors turned speculative eyes to precious metals.
MSCI's broadest index of Asia-Pacific shares outside Japan recouped early losses to rise 0.7 per cent, bouncing after four straight sessions of losses.
SGX Nifty Trades Little Changed
As of 7:40 am, the Nifty futures on the Singapore Exchange rose 0.17 per cent or 24 points to 13,744.