The Budget Day Volatile Drags Market Lower; Nifty Holds 11K

Share Market News 01-February-2018

The market on Thursday opened higher ahead as Sensex gained over 130 points above 36,000 level while Nifty rose 45 points to trade near 11,100 ahead of the presentation of Union Budget 2018. The market extended gains in the late morning session as the Finance Minister started the Budget speech. Sensex climbed 220 points and Nifty rose 65 points to trade near 11,100. Broader market continued to trade lower as Nifty midcap traded mildly lower.

In the afternoon session, the market took a dip as Sensex was down over 400 points while Nifty traded 120 points lower below 10,900 level after finance minister announced 10% tax on long-term capital gains from the equity market. Nifty midcap lost almost 2%. Market regained in the late afternoon session as Sensex climbed 200 points and Nifty rose 55 points.

In last hour of trade, equity benchmark trimmed gains and turned volatile as Sensex was down by 100 points while Nifty fall 30 points. The market recovered some losses closed lower while Nifty midcap slipped over half a percent. Sensex closed 58.36 points down at 35,906.66, Nifty closed 10.80 points down at 11,016.90.

Top Gainers

M&M by 4.97% to Rs.801, Eicher Motors by 4.78% to Rs.28,210.05, Bajaj Finance by 3.88% to Rs.1,742.90, L&T by 2.93% to Rs.1,458, Bajaj Auto by 2.41% to Rs.3,417.65.

Top Losers

Sun Pharma by -4.22% to Rs.555.40, ONGC by -3.93% to Rs.195.45, Dr. Reddy by -2.94% to Rs.2,160, AuroPharma by -2.91% to Rs.611.20, Lupin by -2.60% to Rs.860.80.

Analysis Of Top Gainer And Loser

M&M is the top gainer in today's market as the company reported January Auto total sales 52,048 vs 39,386 units Year-on-Year up by 32%. Farm Equipment Sector (FES) reported 38% growth in tractor sales in January 2018. FES sold 21,875 tractors in January 2018 against 15,909 tractors in January 2017.

Sun Pharma is the top loser in today's market as company recalled 393 Vials Doxil Generic Injection.

Key Market News

Indian factory growth cooled to a three-month low in January as weaker domestic demand pulled down output despite firms keeping price increases to a minimum, a business survey showed on Thursday. The Nikkei Manufacturing Purchasing Managers Index, compiled by IHS Markit, fell to 52.4 last month from Decembers 54.7.

The Federal Reserve left the benchmark interest rate unchanged today after its first policy meeting of 2018 but said it expects inflation to move up this year -- a possible signal of faster rate increases ahead.

Today the Union Budget 2018 was presented by FM Arun Jaitley in the Parliament.

Some of the Key highlights of Budget:-

10% long-term tax on equity gains above Rs.1 lakh.

Corporate tax for companies up to Rs.250 crore revenue cut to 25%.

Revised fiscal deficit target of 3.5% of GDP at Rs 5.95 lakh crore for the current fiscal. FY19 fiscal deficit target at 3.3% of GDP.

Divestment of target Rs.80,000 crore for FY19.

Propose extra-budgetary expenditure of Rs.5,97 lakh crore on infrastructure.

Rs.5 lakh/year per family for 10 crore families will be allocated.

MSP for Kharif crops raised 1.5 times.

Govt allocates Rs.7,140 crore to Textiles sector.

Stocks To Watch

Escorts Ltd. is on the upside while Jain Irrigation Systems Ltd. on the downside.

Escorts is currently trading at Rs.875, up by Rs.63.25 or 7.79% from its previous closing of Rs.811.75 on the NSE. The scrip opened at Rs.814.95 and has touched a high and low of Rs.882.50 and Rs.814.05 respectively. So far 78,62,360 (NSE) shares were traded on the counter. The current market cap of the company is Rs.10,688.09 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.882.50 on 01-February-2018 and a 52 week low of Rs.361.20 on 01-February-2017.

Jain Irrigation is currently trading at Rs.126.80, down by Rs.13.15 or 9.40% from its previous closing of Rs.139.95 on the NSE. The scrip opened at Rs.141.40 and has touched a high and low of Rs.143.30 and Rs.123.60 respectively. So far 4,50,14,390 (NSE) shares were traded on the counter. The current market cap of the company is Rs.6,291.44 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.150.40 on 29-January-2018 and a 52 week low of Rs.82.60 on 24-May-2017.