In 2021, the 30-share Sensex took a big leap on Budget Day and jumped over 2,000 points to end 5% higher, recording the strongest rally in the past 20 years.
The index recorded its biggest Budget Day gain ever since 1997, as the first digital Budget in the history of India ticked all the right boxes for the equity market.
The budget announcements made by the FM will set the tone of the stock market on February 1 and thereafter. According to market analysts, the share market is expected to remain volatile in this eventful week.
On Monday, the Indian equity market closed in the green ahead of the Union Budget 2022. Sensex zoomed 813 points to 58,014 and Nifty rose 237 points to 17,339.
Will Sensex, Nifty see a Budget-day rally today? Here's a look at the latest updates of the market action on BSE and NSE today.
3: 30 pm: Indices end in green
Sensex closes 848 points higher at 58,862 and Nifty gains 264 points to end at 17,604.
3:10 pm: Expert quote
Nilesh Shah, Group President & MD, Kotak Mahindra Asset Management said, "This budget is focused on supporting growth through encouraging investments and encouraging entrepreneurs, starts ups and tax payers by creating trust.
Capital expenditure has moved from 12% of budget in FY 15 to 19% of budget in FY 23. Revenue receipt growth at 6% is significantly lower than 27% last year. This is driven by significantly lower divestment and asset monetization target. Hopefully there is an upside on revenue receipts.
This budget is about laying the foundation for the positioning of centenary of India. 68% of defense capital allocation to local manufacturers, launch of CBDC, focus on organic farming and environmental issues / climate change, developing logistics in India, digital banks and futuristic policies like battery swapping or inter operatibility standards etc will be the building blocks on which India will march in its amrut kaal."
2: 50 pm: Titan, PC Jeweller shares rise up to 4%
Shares of jewellery firms rose nearly 4% today after FM Nirmala Sitharaman proposed a reduction of import duty on unpolished diamonds to 5% in her Budget speech.
Shares of leading jewellery maker Titan Company touched an intraday high of Rs 2,416.75, rising 2.37% on BSE. Titan Company stock trades higher than 5 day, 100 day and 200 day moving averages but lower than 20 day and 50 day moving averages.
PC Jeweller share also rose 2.46% to Rs 27 against previous close of Rs 26.35. The stock trades higher than 5 day, 50 day, 100 day and 200 day moving averages but lower than 20 day moving averages.
Also read: Titan, PC Jeweller shares rise up to 4% on import duty cut for unpolished diamonds
2: 40 pm: Expert quote
Siraj Saiyad, Director, ARETE Group said, "Setting up a high-level urban committee for urban planning and governance is a welcome step that will help in developing policies for sustainable urban development, which in turn will give impetus to real estate development as well. Further, the allocation of Rs 48,000 cr to complete 80 lakh affordable homes under PMAY is another laudable step and has once again highlighted the government's continued focus to promote affordable housing for the economically underprivileged sections in the nation's urban areas On the other hand, the Budget has also successfully emphasized the role of PM Gati Shakti Master Plan to expand National Highways by 25,000 kms in 2022-23, which will facilitate faster movement of people, goods and improve infrastructure and connectivity. In the long run, Gati Shakti can be a game-changer, as it will also encourage investments in the real estate sector as the development of infrastructure and connectivity."
2:30 pm: Top gainers
Tata Steel,Sun Pharma, IndusInd Bank and L&T are the top Sensex gaineres in afternoon session, rising up to 7.12%. Of 30 Sensex stocks, 23 are trading in the green.
2:25 pm: Expert quote
Suhail Sameer, CEO, BharatPe says,"We welcome the new budget announced by our Honourable Finance Minister. This budget will fuel the next level of growth of the Indian economy. The budget has re-emphasized that digital payments and FinTech innovations have grown at a rapid pace in the country. The government is continuously providing thrust to ensure digital banking reaches every new nook and corner of the country and this is extremely encouraging. We strongly appreciate the government's decision to set up 75 digital banking units in the country. This will help promote digital payments aggressively in the country and drive financial inclusion further. The introduction of RBI approved digital rupee is another landmark move- it will disrupt the Indian payment system and add a new dimension to the financial system. 'One Nation, One Registration' is a great initiative as it will facilitate ease of living & doing business."
2: 20 pm: Sensex rises 735 points to 58,7 and Nifty surges 196 points to 17,536.
1:46 pm: Indices turn green
Sensex rises 464 points to 58,479 and Nifty zooms 128 points to 17,468.
1: 40 pm: Expert quote
Parth Nyati, Founder, Tradingo says, "The big highlight of the budget is the 35% increase in capex following the same increment last year. It means the government's main focus is on manufacturing and infrastructure that will automatically result in growth and employment. There was no negative surprise for the market in light of state elections. Overall, the budget is sensible to give more fuel to the growth engine of the economy.
1: 17 pm: Mkt loses all gains; Sensex down 154 pts to 57,859 and Nifty falls 24 points to 17,315.
1: 12 pm: Market pares gains
Sensex now up 387 points at 58,401 and Nifty rises 98 points to 17,437.
1:08 pm: FY23 divestment target pegged at Rs 65,000 crore.
1:02 pm: Expert quote
AR Ramachandran, Co-founder & Trainer, Tips2Trades says,"Like last year, Budget 2022 has been minimalistic with neither any major surprises nor shocks. However, considering the economic slowdown and high inflation hurting the majority of the sectors, one expected tax reliefs for certain sectors like education, hotel, entertainment, brick & mortar retail, manufacturing, airlines & tourism sectors. Overall, this Budget is average & should neither have a very positive nor a severely negative impact on the markets."
12: 50 pm: Expert quote on cap on surcharge on LTCG of asset
Saraswathi Kasturirangan, Partner, Deloitte India said, "Long term capital gains to be subject to surcharge only at 15% for all assets as against graded surcharge. Currently this is available only for listed shares and units of mutual funds."
12: 45 pm: Sensex trading 910 points higher at 58,924 and Nifty gains 235 points to 17,575.
12:20 pm: January gross GST collections at a record Rs 1.41 lakh crore, says FM January gross GST collections at a record Rs 1.41 lakh crore, says FM Sitharaman.
12:15 pm: Surcharge on LTCG on the transfer of any type of asset capped at 15%
12:10 pm: FY23 fiscal deficit estimated at 6.9% of GDP in FY22: FM FY23 fiscal deficit estimated at 6.9% of GDP in FY22, says FM Sitharaman.
12:05 pm: Digital rupee in 2022-23, will be issued by RBI: FM Introduction of Digital Rupee using blockchain and other technologies to be issued by the RBI starting 2022-23, says FM Sitharaman.
11:55 am: Sensex zooms over 1000 pts
The 2022 Union Budget announcements cheered investors today as Sensex zoomed over 1000 points to cross 59k mark with buying seen in infra, power and private banks.
11:45 am: Market check
The benchmark indices were trading higher amid the volatile session. Sensex was trading over 800 points higher at 58,848 and Nifty was up 228 points at 17,568.
11:40 am: Govt to bring battery swapping policy for EVs, says Sitharaman
The government will come out with a battery swapping policy to boost the ecosystem for electric vehicles (EVs), Finance Minister Nirmala Sitharaman announced on Tuesday.
The policy is being brought out considering the constraints of space in urban areas for setting up charging stations, Sitharaman said during her speech for Budget 2022-23.
11:30 am: Infra stocks rally
Shares of Infrastructure companies surged after FM Sitharaman said PM Gati Shakti plan is crucial for 'India at 100. Shares of PNC Infra, KNR Constructions, NCC and IRB were trading 4-6 per cent higher.
Also read: Infra stocks rise up to 8% on plan to expand highways network
11:20 am: LIC IPO expected 'shortly': FM Sitharaman FM says LIC's public offer will be done shortly.
11:15 am: Logistics stocks at Day's high
Shares of logistics companies were trading higher Allcargo stock was trading 7 per cent higher on BSE. Concor, Allcargo, Gati and Snowman were up 2 per cent each.
PM Gati Shakti plan is crucial for 'India at 100', said FM Sitharaman. Budget 2022 will focus on PM Gati Shakti, inclusive development, she added.
11:08 am: Sensex up over 800 points
The benchmark indices were trading higher in early trade. Sensex was trading over 800 points higher at 58,842 and Nifty jumped 230 points to 17,571.
11:00 am: FM Sitharaman begins Budget Speech FM Sitharaman begins her Budget 2022 speech.
10:50 am: India’s manufacturing PMI falls to four-month low in Jan at 54
India’s factory activity hit a four-month low in January at 54.0. The manufacturing PMI in December was 55.5. “The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) was at 54.0 in January, down from 55.5 in December and signalling the weakest improvement in the health of the sector since last September. Still, the headline figure remained above its long-run average (53.6),” stated the index compiled and collected by IHS Markit.
10:38 am: Union Cabinet approves Budget 2022
Union Cabinet, chaired by PM Modi, has approved the Union Budget 2022. FM Sitharaman will table the budget in Parliament at 11 am.
10:30 am: Top Nifty gainers
Britannia was the top gainer on Nifty, advancing over 4 per cent, followed by Sun Pharma, IndusInd Bank, ICICI Bank and Axis Bank.
10:19 am: PM Modi arrives at Parliament to chair Cabinet meeting
PM Modi arrives at Parliament for FM Sitharaman's budget speech at 11 am. He will chair the Cabinet meeting which will approve the Union Budget 2022.
10:10 am: Sensex zooms over 800 points
Sensex zoomed over 800 points to 58,869.04 and Nifty jumped over 240 points to 17,581.
Sun Pharma was the top Sensex gainer, advancing over 4 per cent followed by IndusInd Bank, ICICI Bank and L&T.
9:55 am: Tata Motors shares tank 2%
Shares of Tata Motors Limited were trading lower on Tuesday after India's largest automaker Tata Motors reported a loss of Rs 1,516 crore (attributable to shareholders) for the quarter ending 31 December 2021, as semiconductor shortages crimped the Indian automaker's ability to take advantage of the pandemic-driven demand for personal vehicles.
The firm had posted a net profit of Rs 2,906 crore a year earlier when an easing of coronavirus-related restrictions had led to a pick-up in sales. Sequentially, the automaker's loss narrowed from Rs 4,412 crore in the second quarter of this fiscal year.
9:40 am: Focus on economic recovery hit by COVID-19
All eyes are on FM Sitharaman's speech for announcements pertaining to giving a fillip to the economy still reeling from the COVID-19 pandemic.
9:30 am: Market ahead of Budget 2022
Sensex zoomed over 700 points to 58,714 and Nifty jumped over 179 points to 17,531.
9:16 am: Market opening
The benchmark indices opened sharply higher ahead of Budget 2022. At 09:16 hours, the 30-share BSE index was trading 521 points higher at 58,536.03, and the broader NSE Nifty was up 189 points to 17,529.45.
Tata Steel was the top gainer in the Sensex pack, advancing over 2 per cent, followed by HCL Tech, Tech Mahindra, NTPC, Kotak Mahindra Bank and Infosys.
All the 30 stocks on Sensex were trading in the green.
8:52 am: FM Reaches Finance ministry, to Present Budget 2022 Soon
FM Reaches Finance ministry, to Present Budget 2022 Soon.
8:50 am: Pre-market comment by Mohit Nigam, Head - PMS, Hem Securities
Benchmark Indices are expected to open on a positive note as suggested by trends on SGX nifty. US markets closed in green with NASDAQ being a whopping 3.41% up. On the other side European markets are also giving positive signals. The majority of the Asian markets are also trading in green.
On Monday, the benchmark indices showed strength after a fragile last week. Indices made a gap up opening but made a little correction as the day progressed. It remained range-bound throughout the day and consolidated the early gains till the end of the day.
Union Budget 2022 will be announced today. Markets might face excessive volatility today. Intraday traders have to be a little cautious today as historically it is observed that markets show huge swing movements on budget day on either side. Good announcements are expected in railway infra, domestic manufacturing incentives and renewable energy.
On the technical front, the key resistance levels for Nifty50 are 17,410 followed by 17,490 and on the downside 17,270 followed by 17,190 can act as strong support. Key resistance and support levels for Bank Nifty are 38,250 and 37,700 respectively.
8:45 am: India awaits a booster dose budget
Budget 2022 is expected to be a booster budget to help the economy tide over the shock of COVID-19. We will bring all the latest updates from FM Sitharaman's speech, reactions to the Budget and much more.
8:40 am: Rupee jumps 45 paise to close at 74.62
The rupee surged 45 paise to close at 74.62 (provisional) against the U.S. dollar on January 31 supported by positive domestic equities and improved risk appetite.
At the interbank Forex market, the local unit opened strong at 74.97 against the greenback and witnessed an intra-day high of 74.60 and a low of 75.05. It finally settled at 74.62, a rise of 45 paise over its previous close.
8:35 am: FII and DII action
Foreign institutional investors (FIIs) sold shares worth Rs 3,624.48 crore on January 31, and domestic institutional investors (DIIs) bought shares worth Rs 3,648.65 crore, as per provisional data available on NSE.
8:30 am: Global Updates
U.S. stocks closed higher on Monday, at the end of a volatile month for Wall Street where the tech-heavy Nasdaq narrowly avoided its worst-ever start to the year and the S&P 500 recorded its weakest January performance since 2009.
The Dow Jones Industrial Average rose 406.39 points, or 1.17%, to 35,131.86, the S&P 500 gained 83.7 points, or 1.89%, to 4,515.55 and the Nasdaq Composite added 469.31 points, or 3.41%, to 14,239.88.
In Asia, the Nikkei Weighted index was up 0.71 per cent and Hang Seng was trading 1.07 per cent higher. Shanghai Composite was down 0.97 per cent.
8:20 am: SGX Nifty
The Indian equity market is likely to open on a positive note as SGX Nifty was up 160 points at 8:12 am.
Singapore Nifty (SGX Nifty) is the Indian Nifty index that is traded in the Singapore Stock Exchange and is considered to be the first indication of the opening of the Indian market.
8:15 am: Market on Monday
The Indian equity market closed in the green ahead of the Union Budget 2022 to be presented in Parliament on February 1. Sensex zoomed 813 points to 58,014 and Nifty rose 237 points to 17,339.
IT and consumer durables shares were the top sectoral gainers with BSE IT index rising 911 points and BSE consumer durables index gaining 1,020 points in trade. Tech Mahindra, Wipro, Bajaj Finserv and Infosys were the top Sensex gainers, rising up to 4.88%.
IndusInd Bank, Kotak Bank and HUL were the top Sensex losers, falling up to 3.51%. Market cap of BSE-listed firms rose to Rs 264.48 lakh crore. Of 30 Sensex shares, 27 ended in the green.
Market breadth was positive with 1,861 stocks ending higher against 1,674 stocks closing lower on BSE. 151 shares were unchanged.
BSE mid cap and small cap indices rose 426 points and 286 points, respectively.