Moneycontrol Budget Sensitivity index (MCBudEx) closed 0.73 percent higher on February 3, with Bank of Baroda and Titan emerging as the biggest gainers while Crompton Greaves declining 8 percent.
Bank of Baroda saw a strong move after reporting a net profit of Rs 3,852.74 crore for the December quarter, a 75 percent year-on-year increase that was helped by strong net interest income growth.
The public sector lender's interest income rose to Rs 23,540 crore from Rs 17,963 crore a year ago. Its asset quality metrics showed significant improvement, with the share of bad loans in the overall loan book falling. The gross bad loan ratio dropped to 4.53 percent in the December quarter, from 7.25 percent a year ago.
From the Budget angle, banks are set to see higher credit growth as the government pegged capex spend 33 percent higher at Rs 10 lakh crore for FY24.
Titan was the other big mover on the index. The stock is a big beneficiary of the changes in personal tax regime that will ensure more money in the hands of consumers for spending.
Despite reporting a 10 percent YoY decline in profit in the October-December quarter, brokerages are largely positive on the stock's prospects.
CLSA has maintained a “buy” rating on the stock with a target at Rs 3,000. Morgan Stanley has kept “overweigh”' rating with the target at Rs 3,030 a share.
"The jewellery market share gains and positive demand trends in January are key positives for the medium-term outlook," they said.
Crompton Greaves Consumer Electricals was the biggest loser on the MC BudEx. It fell 8 percent after a sharp rise in employee costs and weak operating leverage weighed on the margin, which contracted sharply by 424 basis points on year, in the December quarter.
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