Benchmark Indices fell; HDFC dragged Nifty Bank; Broader Markets performed better in the last week; Interim Budget is on the road to come

Indian equity markets saw a sharp fall in the week gone by with Nifty and Sensex falling close to 1.5 percent each.

Among sectoral Indices, Nifty Bank was dragged by HDFC Bank when the heaviest-weight constituent failed to impress the Street with Q3 numbers.

In broader markets, Nifty Midcap 100 gained 1.16 percent while Nifty Smallcap 100 fell 0.17 percent.

Foreign institutional investors (FIIs) turned massive sellers in the cash market having sold equity worth Rs 24,147 crore in three days from 17th through 19th January.

The Indian rupee settles at 83.08 against the US dollar in the week gone

In the coming holiday-shortened week, the interest rate decisions of the Bank of Japan and European Central Bank, along with US GDP data, more quarterly numbers announcements, and pre-budget sentiment are perceived to drive the market dynamics.


BUDGET 2024: The energy sector awaits more focus.

As the Indian energy sector goes greener, it seeks higher budgetary support from the government. The oil and gas industry is keenly anticipating reforms, particularly in city gas distribution (CGD), to bolster natural gas consumption. Simultaneously, the power sector hopes for measures that will further incentivize the adoption of renewable energy sources.

India has committed to achieving 500 GW of renewable energy (RE) capacity by 2030 as part of its Paris Accord commitment. Progress has been notable, surpassing 170 GW in 2023

Budget 2024: High expectations for agri sector after El Nino troubles

it has been a tough 2023-24 for farmers, with the statistics ministry estimating that the sector’s growth rate this year is set to be at an eight-year low of 1.8 percent. El Nino as a global phenomenon continuing into 2024 could spell some downside for the Rabi crop in the face of warmer temperatures over January-March 2024 and April-June 2024.

Further, the anticipated end to El Nino in 2024-25 and the high possibility of a normal Southwest monsoon in 2024 should prove supportive of agricultural output. Solid growth of the agricultural sector is crucial for the Indian economy. The sector accounts for around 15 percent of the Indian economy.

Speculation is already rife that the central government is considering raising its annual cash transfer under the Pradhan Mantri Kisan Samman Nidhi.

Budget 2024: Tax collections

For the third year in a row, the government’s gross tax collections are set to post a double-digit growth rate in 2023-24. The budget for 2023-24 had estimated that gross tax collections would amount to Rs 33.61 lakh crore this year, 10.4 percent higher than the revised estimate for 2022-23.


Japan leads Asia stocks higher

Asian shares followed Tokyo higher as AI hype helped the tech sector ahead of a week brimming with central bank meetings, major economic data, and corporate earnings.

Chip stocks are on a roll as Taiwan Semiconductor Manufacturing (TSMC) upgraded its profit outlook last week on booming demand for high-end chips used in AI applications, sending the Nikkei to a fresh 34-year peak. The index climbed another 0.8% early on Monday, to be up 8.3% so far in January.

S&P 500 notches first record high

The S&P 500 posted a record-high close for the first time in two years, fueled by a rally in chipmakers and other heavyweight technology stocks on optimism around artificial intelligence. The Nasdaq jumped 1.70% to 15,310.97 points, while the Dow Jones Industrial Average rose 1.05% to 37,863.80 points.


Tamilnad Mercantile Bank: Private sector Tamilnad Mercantile Bank has reported a net profit of Rs 284 crore for the October-December 2023 quarter. The bank said it has been giving continued thrust on advances to priority sectors like agriculture, micro, small and medium enterprises, and housing constituting 75 percent of the Adjusted Net Bank Credit (ANBC) which is above the regulatory requirement of 40 percent.

Bharti Airtel: The board of Bharti Airtel has approved the initial public offering of its subsidiary Bharti Hexacom.The IPO will comprise of an offer-for-sale (OFS) of 10 crore equity shares, of face value of Rs 5 each. This constitutes “20 percent of the company’s paid-up share capital”.

Ircon International: IRCON gained 17.25 percent along with other railway stocks as they extended their upward trend ahead of the interim budget on February 1. Analysts expect a high allocation for the rail sector in the budget.

Paytm: Paytm gained 1.15 percent after the company’s revenue grew 38 percent to Rs 2,850 crore in the third quarter. Revenue increased due to accelerated gross merchandise value growth, higher device addition, and growth of the financial services business.

RBL Bank: RBL Bank jumped 1.3 percent despite Q3 results missing the street’s estimates. RBL Bank’s net profit grew 2 percent YoY to Rs 233 crore. But, excluding the contingent provision on AIF investment of Rs 115 crore, net profit swelled 53 percent YoY to Rs 319 crore.

Sanghi Industries: Shares of Sanghi Industries traded flat on January 19 after falling for three consecutive days on concerns that the Master Supply and Service Agreement proposed by Ambuja Cement will limit its profit potential.

HFCL: Himachal Futuristic Communications Limited company Shares gained 12.59 percent after the company said it won a Rs 623 crore order for supplying 5G equipment.