As bears gripped Dalal Street, Moneycontrol's Budget Sensitivity Index (MC BudEx) fell 3.04 percent on January 27 dragged down by infrastructure, manufacturing, and banking names. In comparison, Nifty and Sensex fell about 1.5 percent each.
Top losers on the MC BudEx were Dixon Technologies, Adani Ports, IRB Infra, and Bank of Baroda. Of the total 30 stocks, Dabur India, ITC, Tata Power, and Mahindra & Mahindra were the only stocks that ended in the green.
Electronics manufacturing services firm Dixon Technologies was the biggest loser, falling over 18 percent after the company cut its FY23 revenue guidance to Rs 12,200 crore ‐Rs 12,700 crore from Rs 15,000 crore.
The company's revenue from operations fell 22 percent year-on-year to Rs 2,405 crore. "We have lowered our guidance primarily due to a slowdown in the mobile business. There is a likelihood of FY24 revenue guidance to be lowered from Rs 19,000 crore," group CFO Saurabh Gupta told CNBC-TV18.
Weak consumer demand and lower prices of pass-through inputs also led to revenue miss, said analysts. With Budget 2023 right around the corner, all eyes will be on how the Government plans to boost consumption in India.
Several consumer companies part of the MC BudEx have highlighted weak demand trends in rural and semi-urban areas amid high retail inflation.
Also Read Budget 2023: As discretionary demand dwindles, industry wish list runs long
Adani Ports was the other big loser on the MC BudEx, declining over 15 percent. The stock has shed over 25 percent year-to-date. Adani Ports was followed by Bank of Baroda which closed 7.4 percent lower. Bank of Baroda was also the biggest loser on Nifty Bank, which ended down by 3.13 percent.
"Participants were already facing challenges due to mixed global cues and caution ahead of the Union Budget and today's breakdown in markets has further added to worries," Ajit Mishra, VP - of Technical Research, Religare Broking said.
Some part of India’s underperformance vis-à-vis global markets off late can be explained by the huge outperformance by India last year, believes Nishit Master, Portfolio Manager, Axis Securities. "Markets are attempting to revert back to the mean," he said.
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