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PremiumEquity benchmarks Sensex and Nifty jumped over 1.4 per cent on Monday, after the Economic Survey 2021-22 projected a 9.2 per cent growth rate for 2021-22. Finance Minister Nirmala Sitharaman on Monday presented the Economic Survey that details the state of the economy ahead of the government's Budget for the fiscal year beginning April 1, 2022. The Economic Survey has pegged GDP growth in 2021-22 at 9.2% and 8-8.5% for FY23 and said economic activity has recovered to the pre-pandemic level.
4 stocks to buy or sell today — 31st January
Shares of AGS Transact Technologies witnessed a flat listing on Monday as the stock started trading at ₹176 on the NSE, up 0.9% as compared to its IPO issue price of ₹175 apiece. On the BSE, the stock made its debut at ₹176 per share and surged over 3% to ₹180 in minutes after listing.
Equity benchmark Sensex surged 712 points in opening trade on Monday, tracking gains in index-majors Wipro, Bajaj Finance and Infosys amid a positive trend in the Asian markets.
Starting on a positive note, the BSE gauge was trading 712.61 points or 1.25 per cent higher at 57,912.84 in early trade. Likewise, the Nifty advanced 216.95 points or 1.27 per cent to 17,318.90.
Meanwhile, Finance Minister Nirmala Sitharaman will present the Economic Survey 2021-22 later in the day.
At market pre-opening, the Sensex was at 57,861, up 660 pts, or 1.16%, while Nifty was at 17,271, up 170 pts, or 0.99%.
V. Anantha Nageswaran, an academic and former executive with Credit Suisse Group AG and Julius Baer Group, took charge as the chief economic adviser on Friday, days ahead of the presentation of the Economic Survey.
Nageswaran succeeds Krishnamurthy Subramanian, who returned to academia in October after completing his three-year tenure.
Till the time, the global uncertainty do not disappear, we are likely to have challenging markets where the volatility remains on the higher side. Now the budget is around the corner and hence, we do not expect any decisive move (on either side) on Monday at least. Technically speaking, 16800 is considered to be a crucial level because it coincides with the 78.6% retracement of the recent up move as well as the trend line support. Market has not only managed to hold it in last couple of sessions but also had an excellent recovery to reclaim 17000 with some authority. Hence, as long as this support holds, we remain hopeful for some recovery from hereon. On the flip side, if market manages to recover, we don’t see it surpassing the sturdy wall of 17350 – 17500 before the budget. Whatever breakout has to happen (upwards or downwards), it is now likely to happen on or after the budget only. Till then one should expect a range bound movement and should focus on stock specific action.
Here is the list of the top 10 stocks that are likely to be in focus on Monday
It will be an action-packed week for the equity market as a host of crucial events are lined up with the Union Budget hogging the limelight along with macroeconomic data announcements, quarterly earnings and global trends, analysts said. "This week is critical, not only for the equity market, but for the economy as a whole. We have the Union Budget scheduled for February 1 and we expect the government to continue with growth agenda but with a roadmap for fiscal prudence. This week marks the beginning of a new month also and auto sales start pouring in from February 1. "Besides, we have manufacturing and services PMI data also scheduled during the week," said Ajit Mishra, VP Research, Religare Broking. Mishra further said that the Union Budget would set the tone for the domestic markets amid the global sell-off.
The dollar was near a year-and-a-half high against the euro on Monday with equities markets volatility expected to push it higher in the short-term as traders eyed upcoming Australian, UK and European central bank meetings.
The euro was at $1.1148, just off last Friday's low of $1.1119, its weakest since June 2020. The Aussie dollar was at $0.6991, also languishing near Friday's 18-month low, while sterling was at $1.34015, near the one-month low hit last week.
The Economic Survey 2021-22 will be laid by Finance Minister Nirmala Sitaraman in Lok Sabha on January 31, while the Budget will be presented by her on February 1 at 11 am.
The Budget Session of Parliament will begin from today with the address by President Ram Nath Kovind to both Houses in the Central Hall.
On February 1, Finance Minister Nirmala Sitharaman will present the Union budget for the year 2022-23.
The Budget Session of Parliament will commence on Monday and is scheduled to conclude on April 8 wherein the first part of the session will extend up to February 11, said the Lok Sabha Secretariat on Sunday.
"There will be a break from February 12 to March 13 during which the Standing Committees will examine Demands-for-Grants of Ministries/Departments and prepare reports thereon. In all, there will be 29 sittings; ten in the first part and 19 in the second part," the Lok Sabha Secretariat's press release stated.
Oil markets opened the week on the front foot on signs of sustained global demand and continued tensions over Ukraine, putting Brent on course for its best January performance in at least 30 years.
The global benchmark rose 1.4%, building on a run of six straight weekly gains that saw prices hit the highest level since 2014. West Texas Intermediate advanced above $88 a barrel after climbing 2% last week.
With tens of thousands of Russian troops massed near Ukraine, there’s concern Moscow may order an invasion, potentially upending energy flows. Moscow further boosted troop levels at the weekend, according to the Pentagon. The crisis will be debated in the United Nations’ Security Council later Monday.
The Singaporean index indicates a positive start to a crucial Budget week for Indian indices.
Asian stocks were mixed and U.S. equity futures wavered Monday after a Federal Reserve official flagged the possibility of sharper interest-rate increases and Chinese data signaled slower growth.
Shares rose in Japan but dipped in Australia and fluctuated in Hong Kong. The latter’s trading session is truncated due to the Lunar New Year holiday, while China is among bourses that are closed.
Fed Atlanta branch president Raphael Bostic told the Financial Times that a 50 basis-point rate increase, or hikes at each policy meeting this year, are options to fight inflation. But he said three quarter-point moves starting March are the most likely 2022 outcome. Bostic doesn’t vote on policy this year.
The dollar held recent gains. Shorter-maturity Treasuries sensitive to the rate outlook declined and the yield curve flattened. Bond investors are braced for more swings as the Fed and other central banks curb pandemic-era stimulus.
