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Markets trade higher with decent gains on value buying ahead of Union Budget 2025
Feb-01-2025

Indian equity benchmarks made slightly positive start on Saturday and turned volatile tracking overnight weakness on Wall Street after White House press secretary Karoline Leavitt confirmed President Donald Trump's threatened tariffs will be levied against major U.S. trading partners beginning Saturday. Leavitt said the Trump administration will be implementing 25 percent tariffs on Mexico and Canada as well as a 10 percent tariff on China. However, markets managed to garner gains in early deals and are trading higher with decent gains supported by value buying ahead of the Union Budget 2025 proposals during a special trading session. Finance Minister Nirmala Sitharaman is set to present her eighth consecutive budget today, which is anticipated to chart the course towards the vision of a 'Viksit Bharat' by 2047. Some support came as the Reserve Bank said India's forex reserves increased $5.574 billion to $629.557 billion in the week ended January 24. Though, upside remained capped amid the government data showing that the output of eight key infrastructure sectors slowed down to 4 per cent in December 2024, as against 5.1 per cent growth registered a year ago.

On the sectoral front, sugar stocks remained in focus as National Federation of Cooperative Sugar Factories (NFCSFL) projected sugar production in India to drop 15 per cent to 27-27.2 million tonnes in the ongoing 2024-25 season ending September. In stock specific development, IndusInd Bank is leading the gainers on the bourses as its Q3 standalone net profit fell to Rs 1402.33 crore from Rs 2301.49 crore Y-o-Y but surpassed street estimates. Sun Pharmaceutical Industries traded higher after it reported a Q3 consolidated net profit of Rs 2917.54 crore, 13.61% up from Rs 2568.03 crore Y-o-Y.

The BSE Sensex is currently trading at 77762.36, up by 261.79 points or 0.34% after trading in a range of 77434.85 and 77832.05. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.67%, while Small cap index was up by 0.81%.

The gaining sectoral indices on the BSE were Power up by 1.71%, Utilities up by 1.61%, Capital Goods up by 1.34%, Industrials up by 1.20%, Realty up by 0.84% while, Oil & Gas down by 0.08% were the losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 2.78%, Ultratech Cement up by 2.14%, Mahindra & Mahindra up by 1.68%, NTPC up by 1.37% and Sun Pharma up by 1.11%. On the flip side, Nestle down by 0.81%, HCL Technologies down by 0.50%, Tech Mahindra down by 0.27%, TCS down by 0.24% and Titan Company down by 0.12% were the top losers.

Meanwhile, Chief Economic Adviser (CEA) V Anantha Nageswaran said that India has to be prepared to take advantage of the conducive global situations to grow at a faster pace to achieve the goal of becoming a developed nation by 2047. He attributed the slowdown in India’s economic growth to global factors. According to the Economic Survey, India needs to grow at 8 per cent for up to two decades to become a developed nation by 2047.

He said the current relative slowdown in the Indian economy should be seen in context and ‘India still remains the fastest growing large economy in the world’. He said whenever the global exports growth picks up, in those years, it contributes another 0.5 to 1 per cent additional growth, which will take it (India’s economic growth) to 7.5-8 per cent, and the agriculture sector itself can contribute one per cent of additional GDP growth.

According to him, Viksit Bharat’s growth rate with respect to the nominal GDP growth rate in dollar terms required is around 10 per cent. He noted that it is not something that is a mechanical number that is applied exactly year after year as the global conditions will influence it in some years positively and negatively in some. He said ‘We have to be prepared to take advantage of it in those conductive years while maintaining a certain minimum level of growth in those years when conditions are not favourable’.

The CNX Nifty is currently trading at 23578.25, up by 69.85 points or 0.30% after trading in a range of 23479.05 and 23595.45. There were 33 stocks advancing against 17 stocks declining, while 1 stock remained on the index.

The top gainers on Nifty were Indusind Bank up by 2.47%, Ultratech Cement up by 2.26%, Mahindra & Mahindra up by 1.70%, Bharat Electronics up by 1.57% and NTPC up by 1.36%. On the flip side, Hero MotoCorp down by 1.24%, Dr. Reddy's Lab down by 1.13%, BPCL down by 0.71%, ONGC down by 0.69% and Wipro down by 0.67% were the top losers.
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