NSE Nifty was up by 0.03 per cent or 5.95 points to 21,731.65 points, while the BSE Sensex was at 71,806.44 up by 0.04 per cent or six points. A total of 3,820 stocks were actively traded, 1,722 advanced, while 1,962 declined and 136 stocks remained unchanged where 397 stocks hit a 52 week high and 13 stocks hit a 52 week low at 12 pm on Thursday.
About the budget’s impact on the markets, Anand James, Chief Market Strategist from Geojit Financial Services, commented, “The play around budget day is usually around stocks that could benefit from favourable announcements, but with the February one being only a vote on account budget, opportunities may be limited. Yet, we are okay with playing the renewable energy theme as well as railway theme via bororenew and RVNL respectively, despite them having registered substantial gains recently.
Meanwhile, Nifty has benefitted Reliance and Adani stocks surge, helping the index to touch a distance of 21,800, a region that has attracted rejection trades recently. However, we remain positive for continued rise towards 22190 as long dips are contained above 21490, but would be forced to consider 20,900, should we slip back below 21,330. Option traders would do well to note that VIX usually rises in the fortnight ahead of budget, with last year seeing a 66 per cent rise during the same period, only to see a steep fall in VIX, post budget.
Though the full year budget is only in July, the rise in VIX from the fortnight’s low is still underway, with a near 30 per cent rise so far. Towards this end, we favour short strangles on Nifty.”
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, further added, “The 1.61 per cent sell-off in the S&P 500 yesterday was in disappointment that rate cut will not happen in March. But the Fed chief’s comment that the economy is doing well with 3.1 per cent GDP growth in 2023, low 3.7% unemployment and consumer price inflation declining to 2.6 per cent augurs well for the market, going forward.
Sectoral and stock-specific moves in response to budget proposals will hog the limelight today. But long-term investors should not be carried by the dramatic moves today and may focus on high quality stocks with good long-term growth prospects.”
Major gainers on the NSE at 12 include, Maruti (3.56%); Power Grid (2.70%); Cipla (1.92%); M&M (1.91%); TCS (1.59%). Major losers include Dr Reddy’s Lab (-2.40%); ONGC (-1.88%); Grasim (-1.75%); L&T (-1.74%); Ultratech Cement (-1.69%)
Nifty Realty down by 1.57 per cent at 842.75; Nifty Metal down 1.26 per cent at 7,872.80