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Equity benchmarks ended January 31 with modest gains as investors kept their powder dry ahead of the Union Budget presentation and the US Federal Reserve’s interest rate decision.
Fag-end buying helped the 30-share BSE benchmark Sensex gain 49.49 points, or 0.08%, to end at 59,549.90. It touched a high of 59,787.63 and a low of 59,104.59 in the day’s trade.
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The broader NSE Nifty settled 13.20 points, or 0.07%, higher at 17,662.15.
Mahindra & Mahindra was the top Sensex gainer, jumping 3.53%, followed by UltraTech Cement, Power Grid, SBI, ITC, Tata Motors, Titan and NTPC.
On the other hand, Tata Consultancy Services, Bajaj Finance, Tech Mahindra, Sun Pharma, Asian Paints, HCL Tech and HDFC were the major laggards.
“The Indian market has been poor performance Compared to the rest of the world as it is trading at a premium valuation, contrary to the moderation forecast in the domestic economy for FY24.
“Premiumization has reduced, currently trading with developed markets such as the US; however, we continue to trade at a premium to other emerging markets. The Adani saga has prolonged the correction as FII selling The growth is now in focus. Markets have a mixed outlook on the Budget and Fed policy outcome, said Vinod Nair, head of research at Geojit Financial Services.
pre budget economic surveytabled in Parliament on Tuesday, it said India’s economic growth is projected to slow to 6-6.8% in the next fiscal from 7% estimated in FY23, but the country remains the fastest growing major economy in the world. The economy will continue to perform as it has. Better able to deal with the extraordinary challenges facing the world.
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While it indicated that inflation may not be much of a concern, borrowing costs are likely to remain “high for a prolonged period” as a trapped inflation could prolong the tightening cycle.
The survey said India’s recovery from the pandemic was relatively sharp, growth was supported by solid domestic demand, capital investment picked up, but the rupee remained challenged with the prospect of further interest rate hikes by the US Fed.
The current account deficit or CAD may continue to widen as global commodity prices remain elevated. If the CAD rises further, the rupee may come under devaluation pressure, it said, adding the overall external situation would remain manageable.
“All eyes are now on the Union Budget and we expect volatility to remain higher on Wednesday,” said Ajit Mishra, Vice President, Index. Last two days’ pause in the index has indicated a respite after the breakdown, but the overall tone Still bearish.” Technical Research Religare Broking Ltd.
In the broader markets, the BSE Midcap and Smallcap indices climbed up to 2.21% each.
Markets across the world were on the backfoot ahead of the US Federal Reserve’s monetary policy decision. Investors widely expect the Fed to raise rates by 25 basis points to rein in inflation.
Elsewhere in Asia, bourses in Seoul, Tokyo, Shanghai and Hong Kong closed lower.
Equities in Europe were trading in the red during the mid-session deals. Markets in the US closed in the negative zone on Monday.
International oil benchmark Brent crude fell 1.18% to $83.90 a barrel.
The rupee depreciated 41 paise to close at 81.93 (provisional) against the US dollar on Tuesday after the Economic Survey 2022-23 said the domestic unit remained under pressure due to stagnant exports and subsequent widening of the current account deficit. Can
Foreign institutional investors (FIIs) sold shares worth a net Rs 6,792.80 crore on Monday, according to exchange data.