Volatile times

Nifty50: 17,648 ▲ 44 (+0.2%)
Sensex: 59,500 ▲ 169 (+0.2%)

Hello, dear reader!

Who do you think is the most streamed singer on Youtube?

BTS, Taylor Swift, Justin Bieber or Ed Sheeran?

Well, guess what, she is our very own – Alka Yagnik!

According to a Guinness Book Of World Records report, Yagnik’s songs recorded 1,530 crore streams in 2022, with an average of 4.2 crore streams per day. The queen of the 90s left behind several global music icons to snatch the title.  

BTW, do you know, the prolific singer topped this list in 2020 and 2021 as well?

On that melodic note, here are some market updates that may sound music to your ear after a day that was off-key for the most part.

• The markets ended in the green amid volatility.
• Of the Nifty50 universe, 29 stocks made gains.
• Meanwhile, the government will release the economic survey tomorrow.

Among the Nifty sectoral indices, IT (+1.1%) and PSU Bank (+0.5%) were the top gainers, while Oil & Gas (-3.5%) and FMCG (-0.6%) were the top losers.

What’s trending

⭐ L&T surpasses street estimates 

In the December quarter, the diversified conglomerate’s (-1.7%) net profit rose 24% YoY to ₹2,553 crore. This was higher than the street’s expectations of ₹2,535 crore. The strong performance was aided by improved execution in the infrastructure segment and continued growth momentum in the IT & technology services portfolio. 

⭐ PNB Q3 profit tanks 

The state-owned bank’s (0.3%) net profit dropped by 44% YoY to ₹629 crore. The provisions rose by 40% to ₹4,713 crore, denting the profit. Meanwhile, the net interest income rose 17.6% to ₹9,179 crore.  

⭐ Kajaria cracks on weak Q3 

The tile maker (-3.5%) reported a net profit of ₹74 crore, down 39% YoY. The company’s profitability was impacted by an unprecedented rise in gas prices. Also, the management said that overall volumes were impacted by the prolonged monsoon. 

⭐ Sun Pharma’s new acquisitions 

The pharma company (+0.9%) announced that it has acquired three brands – Disperzyme, Disperzyme-CD and Phlogam – from Mumbai-based Aksigen Hospital Care. These acquisitions were made to strengthen the company’s anti-inflammatory drug portfolio.

⭐ Adani FPO receives tepid response 

On day 2, the follow-on public offer of Adani Enterprises (+3.9%) was subscribed 3%. The energy-to-infrastructure conglomerate is aiming to raise ₹20,000 crore for business growth and reducing debt. Click here to apply for the FPO on Upstox.

In Focus

Union Budget: 5 factors markets will monitor

Rising prices and not-so-fast-rising incomes – isn’t that all of our problems when it comes to managing our homes? Guess what, you are in good company. It includes India’s Finance Minister Nirmala Sitharaman, currently juggling inflation, growth and an upcoming election. 

By now, you would have this down pat, right? But what are markets monitoring this Budget? We break it down for you – 

1. Taxes, taxes 

Yeah! The market wants a tax break too! Traders are still smarting from the securities transactions tax or STT, which has been a major drag on their profits. Fingers crossed, they are hoping it gets scrapped. 

And of course, who wouldn’t want a hike in tax slabs – guess what it’s good for biz too. A higher tax slab would put more money into the hands of the people like you and me, and, in turn, spur consumption, investments and economic growth. 

2. Infra play 

Roads, Airports, Railways, Highways, Expressways, Metro routes make for good economics and even better politics. When the government funds infrastructure, it creates jobs and puts money in people’s pockets. This is beneficial for the overall economy, especially the road and rail infra companies. 

Between FY21 and FY23, the government has already increased the infra outlay by 32% on average annually to ₹7.5 lakh crore. With a general election looming, all bets are on a massive infra push.

3. Rural demand 

The overall health of the economy has improved, but rural demand or consumption has remained subdued. In an election year, investors would hope that the government takes direct steps – such as increasing allocation to job schemes (MNREGA) and rural infrastructure (housing and irrigation) – to revive rural consumption. This would come as music to the ears of FMCG and auto companies.  

4. Government disinvestment plan 

Naturally, to spend money, the government needs to raise funds too. It has been looking to sell or divest its stake in state-run companies like BPCL and IDBI Bank and had set a divestment target of ₹65,000 crore for FY23. However, it may fall short of this target as it has managed to raise only ₹31,000 crore till now. So, investors will be looking for an update on the divestment path.  

5. Fiscal deficit (translated ‘aamdani atthani, kharcha rupaiya)

Like in our households, the government too needs to manage its expenses and debt prudently. Investors will keep a watchful eye on how the government is navigating its fiscal path. 

The government aims to lower the fiscal deficit to 6.4% of the GDP in FY23 from 6.9% in FY22. If the government doesn’t meet this target, its loans could get costlier. This could have a ripple effect in the economy. Costlier funds means the government will spend less, denting consumption. 

India’s finance minister has promised a well-balanced budget which will address the twin issues of inflation and growth. Investors would be keenly looking at what the government will do to walk the talk.

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Learn with Upstox

What is tax deduction?

Tax deduction is the amount that can be deducted from the taxable income annually. For instance, one can invest in financial instruments like Equity Linked Saving Schemes (ELSS) and claim tax deduction for up to ₹1.5 lakh each year. This can help a salaried employee in bringing down the overall tax outgo. Click here to watch a Bollywood-inspired explainer on tax deduction.  

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