Benchmark indices are likely to open with gains on Budget 2023 hinted SGX Nifty as Nifty futures traded 130 pts higher at 17882 on the Singapore Exchange. “Markets are likely to see some volatility on budget day. Any constructive announcement by the government in the Union Budget can take the market higher. The focus would be largely growth-oriented with emphasis on further development of infrastructure like roads, railways, water, metro cities. Further, a lot of emphasis would be laid on renewable energy in order to reduce the energy cost to GDP with more incentives being announced to push solar power, EV, public transport, etc. Thus, a lot of stock-specific action will be seen in these sectors,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
10 things to know before share market opens
Global market watch: Asia-Pacific stocks traded higher on Wednesday as investors await Fed meeting outcome, as well as some economic data in the region. Japan’s Nikkei 225 gained 0.8% and the Topix climbed 0.7% in its first hour of trade. South Korea’s Kospi advanced 0.8% and the Kosdaq rose 0.78%. Hong Kong’s Hang Seng index was up 0.14% Overnight in the US, all three major Wall Street indexes rose on the back of strong earnings and encouraging inflation data. Dow Jones rose 1.09%, S&P 500 gained 1.46%, and Nasdaq added 1.67%.
Nifty technical view: “A small negative candle was formed on the daily chart with long lower shadow. Technically, this pattern signal the formation of hanging man type candle pattern, not a classical one. Normally, such patterns are formed at the highs and indicates a reversal of upside. But, having formed this pattern at the lows, the negative implication of this formation could be less. The short-term trend of Nifty seems to have turned positive. But the confirmation of reversal could occur on the sustainable move above 17800 levels. The market is all set to show fresh direction post important economic event of Union Budget 2023, which is scheduled today,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Key levels to watch: “Volume profile indicates that Nifty index has a strong support around 17350-17450 zone. Coming to the OI Data, on the call side, the highest OI observed at 17800 followed by 18000 strike prices while on the put side, the highest OI was at 17500 strike price. On the other hand, Bank Nifty has support at 39500-39700 while resistance is placed at 41100-41300 range,” said Om Mehra, Equity Research Analyst, Choice Broking.
Q3 Result today: Britannia Industries, Ashok Leyland, Ajanta Pharma, Alembic Pharmaceuticals, Gillette India, IDFC, Jubilant FoodWorks, Kaya, Mahindra Logistics, Ramco Systems, Raymond, Redington, RPG Life Sciences, Sundram Fasteners, Tata Chemicals, Timken India, UTI Asset Management Company, Whirlpool of India, and Zuari Agro Chemicals stocks to be in focus ahead of quarterly earnings on February 1.
FII and DII data: Foreign institutional investors (FII) net sold shares worth Rs 5,439.64 crore, whereas domestic institutional investors (DII) net bought shares worth Rs 4,506.31 crore on 31 January, according to the provisional data available on the NSE.
Stocks under F&O ban on NSE: The National Stock Exchange has Ambuja Cements stocks under its F&O ban list for 1 February. According to the NSE, the stock mentioned above is prohibited in the F&O sector because it has exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.
Budget 2023 today: Finance Minister Nirmala Sitharaman will present Modi government’s final full Union Budget before the 2024 general election. Budget 2023 is expected to unveil a bouquet of measures that will boost the economy at a time when global recessionary headwinds are expected to hit growth. FM Sitharaman is expected to remain congnisant of the importance of maintaining fiscal discipline. It is expected that the govt will curb wasteful expenditure to free up funds to boost infra, and build more roads and ports, create jobs and enhance supply chains to bolster PM Modi’s ambition to make India a global powerhouse.
Core sector growth rises: India’s eight core industrial sectors grew by 7.4% in December 2022, as against a growth of 3.8% recorded in the year-ago period. The core sector growth is also higher as compared to the previous month, November 2022, when it stood at 5.4%. A surge in the output of five segments – coal, steel, cement, fertiliser and electricity – aided the higher growth in December, data showed. The production of coal increased by 11.5% on-year, electricity by 10%, steel by 9.2%, cement by 9.1% and fertiliser by 7.3%.
Fiscal deficit rises: Government’s fiscal deficit widened to Rs 9.93 lakh crore in the April-December period, accounting for 59.8% of the full-year target for 2022-23, data released by the Controller General of Accounts showed. The fiscal deficit in the first nine months of the last financial year was 50.4% of last year’s target. The total revenue receipts for the April-December period stood at Rs 22.83 lakh crore, which is 79.9% of the budget estimate for FY23. In the comparable year-ago period, total receipts had hit 89.1% of the budget estimate.
GST collections jump in January: The government collected Rs 1.56 lakh crore as GST in January, second only to the record Rs 1.68 lakh crore collected in April 2022. It is up 10.6% from the first month of 2022 and 4.3% higher from December 2022. GST collections stood at Rs 1.5 lakh crore in December 2022 and Rs 1.41 lakh crore in January 2022. The latest number means GST collections have now exceeded the Rs 1.4-lakh crore mark for 11 months in a row.