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Sensex, Nifty witness volatility; FMCG stocks shine amid income tax relief
Feb-01-2025

It was mixed response over the Dalal Street for the Union Budget, with both Sensex and Nifty witnessing a high volatility during early noon deals. However, gains in FMCG sector stocks helped limit the losses, with the reduction in personal income tax rates aimed at boosting consumption in the country. The Union Budget 2025-26 proposes new direct tax slabs and rates under the new income tax regime so that no income tax is needed to be paid for total income up to Rs 12 lakh per annum, i.e. average income of Rs 1 lakh per month, other than special rate income such as Capital Gain. Salaried individuals earning up to Rs 12.75 lakh per annum will pay NIL tax, due to standard deduction of Rs 75,000. 

The BSE Sensex is currently trading at 77260.43, down by 240.14 points or 0.31% after trading in a range of 77006.47 and 77899.05. There were 13 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell by 0.76%, while Small cap index was down by 0.30%.

The top gaining sectoral indices on the BSE were FMCG up by 2.73%, Consumer Durables up by 2.01%, Consumer discretionary up by 1.94%, Realty up by 1.82% and Auto up by 1.50%, while Capital Goods down by 2.70%, Industrials down by 2.31%, Metal down by 2.24%, PSU down by 2.17% and Oil & Gas down by 2.05% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 5.25%, Zomato up by 5.22%, Hindustan Unilever up by 3.22%, ITC up by 2.69% and Asian Paints up by 2.17%. On the flip side, Ultratech Cement down by 3.54%, Larsen & Toubro down by 3.15%, Power Grid down by 2.68%, Tata Steel down by 2.49% and SBI down by 2.10% were the top losers.

Meanwhile, Steel Secretary Sandeep Poundrik has said that India needs to add 100 million tonnes (MT) of steel making capacity by 2030 on priority to avoid becoming dependent on imports. He pointed out that slumped steel demand and over capacities globally have affected domestic industry. Under the National Steel Policy (NSP) 2017, the government has set a target of scaling up India's overall steel manufacturing capacity to 300 MT by 2030.  

The secretary said one priority is to create more capacity. India has about 200 MT steel capacity at present. Roughly 20 MT was added this financial year. Another priority, he said, is keeping domestic steel industry competitive because of the stagnating consumption in other major economies including China, USA, even Europe and the overcapacity in the world. 

He said ‘if we want to protect our domestic industry, then domestic steel prices will have to be competitive so that there are enough margins in the steel industry so that they can invest in expansion of capacity. If they don't have margins, who will invest.’ He further said that as the world moves to less carbon emission, domestic industry will also have to move to green steel manufacturing process. 

The CNX Nifty is currently trading at 23399.15, down by 109.25 points or 0.46% after trading in a range of 23346.05 and 23632.45. There were 20 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Trent up by 5.89%, Maruti Suzuki up by 4.82%, Britannia up by 4.26%, Tata Consumer Products up by 3.54% and Hindustan Unilever up by 3.29%. On the flip side, SBI Life Insurance down by 4.64%, Bharat Electronics down by 4.24%, Ultratech Cement down by 4.09%, Shriram Finance down by 4.00% and HDFC Life Insurance down by 3.71% were the top losers.
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