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Informist, Saturday, Feb. 1, 2025

 

By Alina Geogy

 

MUMBAI – Cheer over the much-anticipated revision in income tax slabs was negated by the government's announcements on capital expenditure and infrastructure-related themes, which disappointed investors. A volatile session saw the benchmark indices rise as much as 0.5% and decline 0.8?fore ending almost flat.

 

The Nifty 50 closed at 23482.15 points, down 26.25 points or 0.1%, and the BSE Sensex closed at 77505.96 points, up 5.39 points. The Nifty 50 closed marginally lower after rising for four consecutive sessions, but snapped three-straight weeks of decline.

 

Finance Minister Nirmala Sitharaman on Saturday announced that there will be no tax on personal income of up to INR 1.2 million, which is expected to give an impetus to household consumption, especially among the middle class. The Budget was certainly consumption-oriented as the revisions in income tax would result in more discretionary money in the hands of taxpayers, Abhilasha Satale, associate fund manager - equity at Quantum Asset Management Co., said. This move is likely to lead to a INR 1-trillion per annum stimulus to the economy, which would have otherwise moved to the government as tax, she said.

 

Shares of most fast-moving consumer goods companies rose after Sitharaman announced income tax relief on personal income of up to INR 1.2 million under the new tax regime. She said tax slabs and rates are being changed across the board to benefit all taxpayers. Shares of Radico Khaitan, Godrej Consumer Products, United Spirits, Varun Beverages, and ITC closed 3-10% higher and pushed the Nifty FMCG index up 3%. Shares of retailers such as Trent and Avenue Supermarts gained 7.6% and 9.8%, respectively.

 

Shares of infrastructure and construction-linked companies fell after the Budget presentation due to lack of major push for the sector and moderation in the capital expenditure projection. The Budget pegged the central government's capital expenditure for FY26 at INR 11.21 trillion, up 10.1% from the revised estimate of INR 10.18 trillion for FY25.

 

"The capex budget target was quite disappointing...the government missed the budgeted capex target in FY25," Tanvee Gupta Jain, chief economist at UBS India, said in a report. The revised capital expenditure for FY25 is INR 927 billion lower than the Budget estimate of INR 11.11 trillion. Stocks related to defence and railway sectors slumped after the Budget presentation. Shares of IRCON International and Rail Vikas Nigam ended down around 9?ch.

Shares of life insurance companies rose 2-4?ter the government increased the foreign direct investment limit for the sector to 100% from the current 74%. Shares of HDFC Life Insurance Co., SBI Life Insurance Co., and ICICI Prudential Life Insurance rose around 3?ch, but all ended slightly lower.

 

Most fertiliser stocks extended gains and rose 4-7?ter Sitharaman said the government will focus on farm growth, rural prosperity, manufacturing, and financial inclusion. She also said that the government will address underemployment in the farm sector. However, most stocks could not sustain gains and ended lower. Shares of Fertilizers and Chemicals Travancore and Gujarat State Fertilizers & Chemicals ended slightly higher.

 

Among other stocks, Power Mech Projects and Walchandnagar Industries rose after the finance minister announced proposals to set up five local and small nuclear reactors by 2033. She also said that the government had allocated INR 200 billion towards research and development in the nuclear energy sector under Nuclear Energy Mission. Shares of battery-makers Exide Industries and Amara Raja Energy & Mobility closed higher by 2% and 4%, respectively, after Sitharaman said the government would exclude cobalt powder and lithium-ion scrap from basic customs duty.

 

Stocks of aquaculture-linked manufacturers and exporters Apex Frozen Foods and Avanti Feeds rose sharply after the government proposed to reduce basic customs duty on fisheries products, frozen fish paste, and fish hydrolysate.

 

* Of the Nifty 50 stocks, 20 rose and 30 fell

* Of the Sensex stocks, 13 rose and 17 fell

* On the NSE, 1,419 stocks rose, 1,328 fell, and 99 were unchanged

* On the BSE, 2,081 stocks rose, 1,829 fell, and 127 were unchanged

* Nifty Realty: up 3.4%; Nifty FMCG: up 3%; Nifty Energy: down 2.1%

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BSE                                                NSE

77505.96 points, up 5.39 points                    23482.15 points, down 26.25 points or 0.1%

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S&P BSE Sensitive Index	Nifty 50
Lifetime High: 85978.25 (Sept. 27, 2024)	: Lifetime High: 26277.35 (Sept. 27, 2024)
Record Close High: 85836.12 (Sept. 26, 2024)	: Record Close High: 26216.05 (Sept. 26, 2024)
2025 1st day close: 78507.41 (Jan. 1)	: 2025 1st day close: 23742.90 (Jan. 1)
2025 Closing High: 79943.71 (Jan. 2)	: 2025 Closing High: 24188.65 (Jan. 2)
2025 Closing Low: 75366.17 (Jan. 27)	: 2025 Closing Low: 22829.15 (Jan. 27)
2025 High (intraday): 80072.99 (Jan. 3)	: 2025 High (intraday): 24226.70 (Jan. 2)
2025 Low (intraday): 75267.59 (Jan. 27)	: 2025 Low (intraday): 22786.90 (Jan. 27)
2024 1st day close: 72271.94 (Jan. 1)	: 2024 1st day close: 21741.90 (Jan. 1)
2024 Closing High: 85836.12 (Sept. 26)	: 2024 Closing High: 26216.05 (Sept. 26)
2024 Closing Low: 70370.55 (Jan. 23)	: 2024 Closing Low: 21238.80 (Jan. 23)
2024 High (intraday): 85978.25 (Sep. 27)	: 2024 High (intraday): 26277.35 (Sept. 27)
2024 Low (intraday): 70001.60 (Jan. 24)	: 2024 Low (intraday): 21137.20 (Jan. 24)
2023 1st day close: 61167.79 (Jan. 2)	: 2023 1st day close: 18197.45 (Jan. 2)
2023 Closing High: 72410.38 (Dec. 28)	: 2023 Closing High: 21778.70 (Dec. 28)
2023 Closing Low: 59288.35 (Feb. 27)	: 2023 Closing Low: 17311.80 (Oct. 17)
2023 High (intraday): 72484.34 (Dec. 28)	: 2023 High (intraday): 21801.45 (Dec. 28)
2023 Low (intraday): 58699.20 (Jan. 30)	: 2023 Low (intraday): 17098.55 (Jan. 17)
2022 1st day close: 59183.22 (Jan. 3)	: 2022 1st day close: 17625.70 (Jan. 3)
2022 Closing High: 63284.19 (Dec. 1)	: 2022 Closing High: 18812.50 (Dec. 1)
2022 Closing Low: 51360.42 (Jun. 17)	: 2022 Closing Low: 15293.50 (Jun. 17)
2022 High (intraday): 63583.07 (Dec. 1)	: 2022 High (intraday): 18887.60 (Dec. 1)
2022 Low (intraday): 50921.22 (Jun. 17)	: 2022 Low (intraday): 15183.40 (Jun. 17)
2021 Closing High: 61305.95 (Oct. 14)	: 2021 Closing High: 18338.55 (Oct. 14)
2021 Closing Low: 46285.77 (Jan. 29)	: 2021 Closing Low: 13634.60 (Jan. 29)
2021 High (intraday): 61353.25 (Oct. 14)	: 2021 High (intraday): 18350.75 (Oct. 14)
2021 Low (intraday): 46160.46 (Jan. 29)	: 2021 Low (intraday): 13596.75 (Jan. 29)
2020 Closing High: 47751.33 (Dec. 31)	: 2020 Closing High: 13981.95 (Dec. 30)
2020 Closing Low: 25981.24 (Mar. 23)	: 2020 Closing Low: 7610.25 (Mar. 23)
2020 High (intraday): 47896.97 (Dec. 31)	: 2020 High (intraday): 14024.85 (Dec. 31)
2020 Low (intraday): 25638.90 (Mar. 24)	: 2020 Low (intraday): 7511.10 (Mar. 24)
2019 High (intraday): 41809.96 (Dec. 20)	: 2019 High (intraday): 12293.90 (Dec. 20)
2019 Low (intraday): 35287.16 (Feb. 19)	: 2019 Low (intraday): 10583.65 (Jan. 29)
2018 High (intraday): 38938.91(Aug. 28))	: 2018 High(intraday): 11760.20 (Aug. 28)
2018 Low (intraday): 32483.8 (Mar. 23)	: 2018 Low (intraday): 9951.9 (Mar. 23)
2017 High (intraday): 34005.37 (Dec. 26)	: 2017 High(intraday): 10515.10 (Dec. 26)

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End

 

Edited by Ashish Shirke

 

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