Barometers trim gains, FMCG stocks firm in choppy mkt

The benchmark indices pared gains amid the ongoing Union Budget announcements by Finance Minister. The Nifty traded near the 21,750 mark. FMCG shares advanced for the second day in a row.

At 11:29 IST, the barometer index, the S&P BSE Sensex, was up 142.74 points or 0.20% to 71,894.85. The Nifty 50 index added 23.95 points or 0.11% to 21,749.65.

In the broader market, the S&P BSE Mid-Cap index declined 0.61% and the S&P BSE Small-Cap index shed 0.33%.

The market breadth was negative. On the BSE, 1,751 shares rose and 1,921 shares fell. A total of 134 shares were unchanged.

Union Budget 2024:

The Finance Minister`s budget speech underscored the government`s dedication to inclusive development and growth, particularly prioritizing the needs of the marginalized segments, including the poor, farmers, youth, and women. Key initiatives highlighted in the speech aimed at empowering women included the prohibition of triple talaq, providing legislative reservation, and offering housing support through the Awas Yojana in rural areas.

Additionally, the government extended substantial support to women entrepreneurs by disbursing 34 crore loans through the Mudra Yojana. Furthermore, the minister emphasized the government`s focus on "GDP" (governance, development, and performance) ahead of the upcoming general election, highlighting India`s robust real GDP growth rate of 7.7% between April and September 2023, which is the highest among major global economies.

Economy:

The HSBC India Manufacturing Purchasing Managers� Index survey, conducted by S&P Global, recovered from an 18-month low of 54.9 in December to 56.5 in January. The latest reading highlighted the strongest improvement in the health of the sector since last September.

Meanwhile, Goods and Services Tax collections jumped 10.4% to over Rs 1.72 lakh crore in January, reflecting buoyant economic activity and setting the stage for the next phase of GST reforms. This is the second-highest monthly collection ever and marks the third month in this financial year with a collection of Rs 1.70 lakh crore or more, a finance ministry statement said on Wednesday. "The gross GST revenue collected in the month of January 2024 is Rs 1,72,129 crore, which shows a 10.4% y-o-y growth over the revenue of Rs 1,55,922 crore collected in January 2023," the ministry said.

Buzzing Index:

The Nifty FMCG index rose 0.88% to 55,554.60. The index rose 1.8% in the two trading session.

Godrej Consumer Products (up 10.91%), Dabur India (up 5.87%), Marico (up 4.32%), Hindustan Unilever (up 1.02%), Emami (up 0.95%), ITC (up 0.51%), United Spirits (up 0.26%), Tata Consumer Products (up 0.09%), Varun Beverages (up 0.01%) advanced.

On the other hand, Procter & Gamble Hygiene and Health Care (down 0.92%), Radico Khaitan (down 0.75%) and Nestle India (down 0.3%) edged lower.

Stocks in Spotlight:

One 97 Communications was locked in 20% lower circuit after the Reserve Bank of India (RBI), has directed Paytm Payments Bank (PPBL) that no further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after 29 February 2024, other than any interest, cashbacks, or refunds which may be credited anytime.

Deepak Nitrite declined 1.48%. The company said that its wholly owned subsidiary Deepak Chem Tech has signed a memorandum of understanding with Government of Gujarat to invest around Rs 9,000 crore to establish projects at Dahej, Gujarat.

Global Markets:

Asian stocks were trading mixed on Thursday in response to the declines on Wall Street, prompted by the US Federal Reserve�s indication of requiring more time before implementing interest rate cuts.

US stocks tumbled on Wednesday after the Federal Reserve held interest rates steady while dashing hopes for interest rate cut as soon as March. As expected, the Federal Open Markets Committee (FOMC) left its key policy rate unchanged at 5.25-5.50% against a backdrop of gradually cooling inflation and a resilient economy. The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks, the Fed said in its statement.

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