Market highlights: Sensex sheds 800 points, Nifty around 21,500 at close; PSU banks shine

The rupee ended flat at 83.11 per US dollar from the previous close of 83.13.

“We believe spending on defence will continue. India is looking to become an exporting hub for defence. We already have attachés from more than 80 countries. It has become a significant part of the economy and the market over the last five years inspiring tremendous excitement. 

“Overall, expecting the Amrit Kaal theme to continue from the budget - it  will cater to the masses. Continued focus on capital expenditure is expected, in addition to the other focus areas that the government had maintained last year. This will be done while maintaining the fiscal deficit. No big announcement expected for the start-ups ecosystem, but the government will definitely be doing right by start-ups in the longer horizon. The government has done well in building the start-up ecosystem with the introduction of building blocks for start-ups; Aadhar and UPI. 

“As for the markets, we foresee no Immediate reaction with the budget announcement. The announcement comes soon after the Fed announcement on the 31st, hence the market reaction for the next few weeks will be from a combination of the budget and the Fed announcement.”

At close, the Sensex was down 801.67 points or 1.11% at 71,139.90, and the Nifty was down 215.50 points or 0.99% at 21,522.10.

“To be vocal for local, facilitate ‘Make in India’ and promote ease of doing business, the FinMin must look at amending the SEZ Act so that SEZs could be better integrated with the domestic market. The budget should look at permitting ‘reverse job-work’, which allows SEZs to sell in the domestic market, where all duties relinquished on raw materials could be paid back. 

"The move would prevent companies in these zones from being disadvantaged due to a lack of access to the entire market. It will allow them to sell domestically, also offering a waiver on all duties on raw materials.

"The move will also lead to further strengthening the SEZs of India, which have emerged as major export hubs in the country. However, in recent times they have started losing their value due to the imposition of minimum alternate tax and the introduction of a sunset clause to end fiscal incentives. This has resulted in many SEZs lying vacant, hurting the economic growth. The policy will put SEZs on an equal footing with non-SEZ units that enjoy the benefits of zero or reduced import duties through free trade agreements."

Gillette posted a net profit of ₹103.90 crore for the December quarter, up nearly 40% from ₹74.50 crore a year ago. Revenue grew a mere 3.4% on-year to ₹639.50 crore but operational performance improved as Ebitda margin expanded to 24.4% from 20.4% a year ago.

-Buy call, target ₹8,900 a share

-Q3 earnings missed estimates owing to lower fees and higher credit costs

-Cut EPS estimates by 3-5% for FY24-26 to factor in lower loan growth and lower fees

-MD Rajeev Jain clarified he will continue to actively engaged in shaping strategy for BAF

BEL has bagged an order worth ₹847 crore from the Central Board of Indirect Taxes and Customs (CBIC), Ministry of Finance.

Adani Total Gas reported an 17.4% increase in consolidated net profit at ₹176.30 crore for the December quarter from ₹150.19 crore a year ago. Total income came in at ₹1,256.42 crore, up 5.3%.

“Bank stocks exhibit high sensitivity to interest rate changes and economic forecasts announced in the budget. Allocations for infrastructure projects can significantly impact construction and related sectors. Measures related to subsidies, taxes, and rural development can influence FMCG and retail stocks,” Vinit Bolinjkar, head of research, Ventura Securities, told Mint in an interview.

“Adhere to your risk management strategies and refrain from excessive trading in the volatile budget-day environment. Stay well-informed with pre-budget expectations and stay updated with live news throughout the day,” he advised retail investors. Read more.

The Nifty PSU Bank index is currently up 1.28% while the Nifty Realty index is up 1.20%. 

With less than a week left for the presentation of the interim budget by Union Finance Minister Nirmala Sitharaman, people from India’s cryptocurrency sector are hoping for the introduction of a well-defined legal framework and the regularisation of the tax structure to address taxation complexities.

The digital asset industry anticipates a much more nuanced approach to outlining a definition of Virtual Digital Assets (VDAs). In addition to this, policy implementation to boost innovation and research and development is also the key to a stronger crypto industry in the country. Read more.

Tata Motors’s stock is up 4.54% at ₹879.20, setting a new all-time high. With this, Tata Motors has surpassed Maruti Suzuki as the most valuable automobile company in India.

At 2 pm the Sensex was down 377.85 points or 0.53% at 71,563.72, and the Nifty was down 73.10 points or 0.34% at 21,664.50.

Net profit was up 28.1% at ₹217.6 crore from ₹169.9 crore a year ago, and revenue up 1.9% at ₹4,013 crore from ₹3,938.9 crore a year ago.

For Indian IT companies, persistent demand uncertainty and lack of revenue visibility have kept revenue performance of the key banking, financial services, and insurance (BFSI) vertical under pressure lately. The impact on revenue aggravated in the December quarter (Q3FY24). Historically, Q3 has been a seasonally weak quarter due to furloughs. Read more.

China's 10-year government bond yield dropped to the lowest in more than two decades as investors still expect more policy easing to defend equity markets after China announced a cut to bank reserves last week, Reuters reported.

Yields on China's 10-year government bonds CN230026=CN10YT=RR dropped below 2.47%, the lowest since June 2002.

China 10-year treasury futures for March delivery CFTC1 rose to the highest since April 2020.

Yields on China's 30-year government bonds CN30YT=RRCN230009= dropped to a record low of 2.71%.

Consolidated net profit is up 21% at ₹2,158 crore from ₹1,782 crore a year ago. Revenue is up 34% at ₹29,038 crore from ₹21,755 crore a year ago.

Mahindra Logistics posted a consolidated net loss of ₹16.4 crore for the December quarter, against a profit at ₹1.67 crore a year ago, thanks to weak operating numbers. Revenue from operations grew 5% to ₹1,397.2 crore.

At 1 pm the Sensex was down 264.25 points or 0.37% at 71,677.32, and the Nifty was down 39.50 points or 0.18% at 21,698.10.

Shares of LIC have crossed their issue price and are up 3.94% at ₹951.70.