Closing Bell: Nifty above 17,300, Sensex up 813 points on FY23 GDP forecast of 8-8.5%

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Taking Stock | Market Gains Over 1% On Economic Survey Takeaways, Next Stop Budget

More than 150 stocks, including Oil and Natural Gas Corporation, Canara Bank, IDFC, DB Realty and Gravita India, hit a 52-week high on the BSE

Rajani Sinha, Chief Economist & National Director - Research, Knight Frank India:

The Economic Survey’s GDP growth projection of 8-8.5% for FY23 is quite conservative and lower than that projected by IMF. The Economic Survey has explained in detail the Government’s approach to handling this once in a century pandemic induced crisis. 

The Survey talks in detail about the ‘Agile’ approach that the government has been adopting, which basically implies tracking closely the high frequency economic indicators and tweaking the government’s response on a real time basis as the crisis situation unfolds. 

Apart from discussing in detail the sectoral developments and policy implementations, the Survey very aptly talks in detail about the developments on social parameters of Health and Education. As per the need of the hour, there is also a detailed discussion on sustainable economic growth. The Economic survey has very aptly discussed in detail the current issues for the Indian economy, now the critical aspect would be how the Central and state Governments handle many of these issues going forward

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:

The Nifty opened gap up on January 31 & attempted to stretch higher. It managed to surpass the level of 17400 on an intraday basis however couldn’t sustain in the higher territory. In terms of the Fibonacci retracement, 38.2% retracement of the entire Jan decline acted as a key barrier for the second consecutive session. 

Internal structure shows that the Nifty can take a minor degree dip before stretching higher. Any dip in the near term is expected to subside near 17000. So a dip towards 17000 can be considered as a fresh buying opportunity. 

Overall structure shows that the price action in the last few sessions is a part of the pullback process & the index can head towards 17600 in the short term

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:

As the markets were in an oversold position, today's sharp bounce back was on expected lines ahead of the Union Budget announcement. 

The upward bias was also supported by firm global cues and the economic survey report that has pegged a strong GDP growth for FY23. 

On intraday charts, the Nifty has maintained a higher bottom formation which also supports the uptrend. For the bulls, 17425 would be the important breakout level to watch. And if the market manages to trade above the same, we can expect a quick uptrend rally up to 17475-17550. 

On the flip side, trading below 17250 could trigger further weakness up to 17100/17050 levels.

Adani Wilmar IPO Updates:

The initial public offering (IPO) of Adani Wilmar, the joint venture between Adani Group and Wilmar Group of Singapore, was subscribed 17.34 times by the afternoon of January 31, the final day of bidding, garnering bids for 212.5 crore equity shares against an offer size of 12.25 crore units.

Qualified institutional investors put in bids for 5.73 times of the portion reserved for them. QIB are vital to a public issue as their portion has to get at least 90 percent subscription.

Retail investors subscribed 3.85 times their part of allotted shares, while the portion set aside for non-institutional investors was booked 56.3 times.

Adani Wilmar has also reserved a part of IPO shares for its employees and shareholders, which has seen a subscription of 51 percent and 33.32 times, respectively.

Tata Motors Q3 result

Tata Motors on January 31 reported a consolidated net loss of Rs 1,516 crore for the quarter ended December as against a net profit of Rs 2,906.5 crore.

The Jaguar Land Rover maker reported a 4.5 percent year-on-year decline in consolidated revenues for the reported quarter to Rs 72,229 crore.

Analysts had expected the automaker to report a consolidated net loss of Rs 2,200 crore. In the previous quarter, the company had reported a consolidated net loss of Rs 4,441.6 crore.

Ajit Mishra, VP - Research, Religare Broking:

Markets started the week on a strong note and settled with nearly one and a half percent gains. Firm global cues led to an upbeat start however caution ahead of the crucial event of Union Budget capped the upside. All the sectoral indices contributed to the move wherein IT, realty and PSU banks were the top gainers. Consequently, the Nifty ended higher by 1.4%. The broader indices too ended in a positive range of 1.2-1.6%.
 
It’s going to be a crucial day as all participants will be closely eyeing the Union Budget. The main focus would be on the GDP growth numbers, fiscal deficit target and disinvestment plans. 

Besides, sector-specific announcements and any relief on the taxation front will also be on participants’ radars. 

At the same time, corporate earnings and auto sales numbers would continue to induce stock-specific volatility. 

For further recovery, Nifty should decisively hold above 17,600 zone else profit taking may resume and push the index towards 16,800-17,000 zone. We recommend maintaining a cautious stance and suggest preferring hedged positions.

Sachin Gupta, AVP- Research at Choice Broking:

The benchmark index started positively and continued the upside for the day ahead of Budget 2022. The Nifty index has settled at 17339.80 with a gain of 1.4% while Bank Nifty closed at 379775.30 levels with 0.7% gains. 

All the sectoral indices closed in green led by Nifty Realty, PSU Bank & IT with average gains of 3%. 

Technically, the Nifty has breached the prior three days highs & settled in a green candle on the daily chart. The index is also trading above 78.6% Retracement Levels, which indicates further support around 16800 levels. 

A momentum indicator RSI & MACD is suggesting positive crossover on an hourly chart, which adds positive strength for the coming day. 

Although, we are expecting a high volatility in the index for tomorrow on the account of the Indian Budget. At present, the index has support at 17100/16800 levels while resistance comes at 17500/17650 levels. On the other hand, Bank Nifty has support at 37300 levels while resistance at 38700 levels.

Vinod Nair, Head of Research at Geojit Financial Services:

Taking positive cues from global markets and favourable takeaways from the Economic Survey report, the market rallied ahead of the Budget day with all major sectors in the green. 

The major macro indicators of the survey gave confidence that the country is well placed to face future challenges with GDP growth for FY23 projected at 8-8.5%. 

Global markets turned positive backed by gains in the US market as investors ignored geopolitical disturbances and turned their eye towards strong earnings numbers from tech firms.

Market Close: Benchmark indices ended higher on January 31 with Nifty closing above 17,300 as FY23 GDP forecast at 8-8.5% and ahead Union Budget to be presented on February 1 by Finance Minister Nirmala Sitharaman.

At close, the Sensex was up 813.94 points or 1.42% at 58,014.17, and the Nifty was up 237.80 points or 1.39% at 17,339.80. About 1773 shares have advanced, 1632 shares declined, and 142 shares are unchanged.

Tech Mahindra, Tata Motors, Wipro, BPCL and Bajaj Finserv were the top Nifty gainers, while losers were IndusInd Bank, Kotak Mahindra Bank, UPL, Coal India and HUL.

On the sectoral front, auto, pharma, IT, oil & gas, PSU Bank and realty rose 1-3 percent. BSE midcap and smallcap indices added 1-1.7 percent.