Morning Update :–Eicher Motors, BPCL, Tata Motors, M&M, and Maruti Suzuki were among the Nifty’s top gainers, while Wipro, L&T, LTIMindtree, Britannia, and Nestle fell.
Sensex – Rise +21 Points at 71,773
Nifty 50 – Rise  +19 Points at 21,745
Indian Market
FII AND DII
| FII Bought | Â 1,660.72 Cr |
| DII Bought | 2,542.93 Cr |
Indian Market News
- Wall Street ends lower after the Fed keeps rates unchanged and ruled out a March rate cut.
- Asia markets plummet after the Fed keeps rates.
- Dollar pares losses following Fed meeting statement
- Gold falls after Powell pushes back the chance of a March rate cut.
- The US Federal Reserve keeps interest rates unchanged.
- Infosys co-founder SD Shibulal’s family sells more than 6.59 lakh shares.
- Â KKR and CPPIB launch $465 million block deal to exit Indus Towers.
- GST receipts in January reached Rs 1.72 lakh crore, the second-highest ever.
- India’s core sector growth fell to a 14-month low of 3.8% in December.
- RBI imposes significant business limitations on Paytm Payments Bank.
- One 97 Communications (OCL) announcement following the RBI imposing major business limitations on Paytm Payments Bank.
- Rashi Peripherals IPO will launch on 7 February with hopes to raise Rs 600 crore.
- MOIL has fixed/revised prices of several grades of manganese ore and other goods, beginning from February 1, 2024.
- Macquarie analysts are ‘neutral’ on Paytm after RBI prohibition, with a target price of Rs 761 a share.
Global Markets updates
GIFT Nifty
Trends in the GIFT Nifty predict a strong start for India’s broader index, which has gained 35 points. The Nifty futures were trading near the 21,822 mark.
US Markets
US equities plummeted on the last trading day in January after the Federal Reserve left interest rates unchanged while shattering hopes for interest rate cut as soon as March.
The three major US stock indices were already pulled down by weakness in tech and tech-adjacent megacap stocks the day following poor Alphabet results.
All three extended losses after the Fed’s statement and Chair Jerome Powell’s subsequent press conference. The S&P 500 finished with its sharpest daily loss since September 21. All three indices nevertheless registered increases for the month.
As expected, the Federal Open Markets Committee (FOMC) maintained its benchmark policy rate unchanged at 5.25-5.50 percent against a backdrop of progressively dropping inflation and a strong economy.
The Dow Jones Industrial Average sank 317.01 points, or 0.82 percent, to 38,150.30, the S&P 500 lost 79.32 points, or 1.61 percent, to 4,845.65 and the Nasdaq Composite lost 345.88 points, or 2.23 percent, to 15,164.01.
Asian Markets
Asian markets were trading uneven in the early trade on Thursday with Nikkei index down 0.7 percent and Kospi index up 0.8 percent.
Oil prices
Due to sluggish economic activity in China, the country that imports the most oil, and an unexpected increase in U.S. crude stocks as a result of producers increasing output in response to this month’s very cold weather, oil prices ended the day lower on Wednesday.
The more actively traded April contract finished down $1.89, or roughly 2.3 percent, at $80.55, while Brent crude futures for March, which expire on Wednesday, settled down $1.16, or roughly 1.4 percent, to $81.71 a barrel.
US West Texas Intermediate oil futures ended the day at $75.85, down $1.97, or around 2.5 percent. Earlier in the session, both benchmarks dropped by more than $2 per barrel.
Gold Prices
Following Fed Chair Jerome Powell’s sharp reversal of course and Wednesday’s little decline in gold prices, expectations of a March rate cut by the US were sharply dashed.
At 03:10 p.m. ET (2010 GMT), spot gold was down 0.1% at $2,034.37 per ounce, following a 1% increase earlier in the day. Although gold fell 1.3% this month, it has managed to stay above the crucial $2,000 per ounce mark so far this year.
US gold futures ended the day at $2067.4, up 0.8 percent.
US dollar
The Federal Reserve kept interest rates constant and abandoned a long-standing allusion to potential future increases in borrowing costs on Wednesday, which caused the dollar index to trim its losses.
At 103.39, the dollar index was flat for the day. At $1.08275, the euro was down 0.16% for the day. The dollar’s losses versus the yen decreased, and it ended the day down 0.66% at 146.72 yen.
News Updates
January’s GST collections were the second-highest ever at Rs 1.72 lakh crore.
According to preliminary statistics issued by the Ministry of Finance on January 31, the government’s collections of Goods and Services Tax (GST) increased to Rs 1.72 lakh crore in January.
The January GST collections, at Rs 1.72 lakh crore, are 4.4% more than the December 2023 receipts of Rs 1.65 lakh crore, making them the second-highest ever. Additionally, it raises the average monthly collection to Rs 1.67 lakh crore during 2023–2024.
In contrast to the GST collected until January 31, 2023, at 5 p.m., or Rs 1.56 lakh crore, the provisional figure for this month is 10.4% higher. However, the GST collected as of 5 p.m. on January 31 is 9.3 percent higher than the total amount of Rs 1.58 lakh crore for January 2023.
India’s core sector growth drops to 3.8% in December, a 14-month low.
December growth for India’s eight main industries was 3.8%, as reported by data issued on January 31 by the Ministry of Commerce and Industry.
In the final month of 2023, the growth rate of India’s eight major infrastructure sectors—coal, crude oil, steel, cement, electricity, fertilisers, refinery products, and natural gas—was 3.8%, the lowest in the previous fourteen months.
Growth in the core sector was 7.8 percent as of November 2023. On January 31, the ministry of commerce amended this percentage upward to 7.9 percent. By December 2022, the eight main sectors’ combined output had increased by 8.3 percent.
As in the first nine months of 2022–2023—from April to December, the output of India’s eight core industries increased by 8.1 percent on an annual basis.
RBI requests that Paytm Payments Bank cease accepting new clients.
On January 31, the Reserve Bank of India (RBI) prohibited Paytm Payments Bank from accepting new clients, effective right away.
According to the central bank, a Comprehensive System Audit report and the external auditors’ subsequent compliance validation report exposed ongoing major supervisory concerns and chronic non-compliances in the bank, necessitating additional supervisory action.
With the exception of interest, cashbacks, or refunds that may be credited at any point, no more deposits, credit transactions, or top-ups will be permitted in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, according to the RBI.
However, the RBI made it clear that, up to their available balance, the lender’s customers are free to withdraw or use balances from any of their accounts, including savings bank accounts, current accounts, prepaid cards, FASTags, National Common Mobility Cards, etc.
The April–December fiscal deficit in India was Rs 9.82 lakh crore, or 55% of the target for FY24.
The Controller General of Accounts released figures on January 31 that indicated the fiscal deficit of the Central government increased to Rs 9.82 lakh crore in April-December from Rs 9.07 lakh crore in April-November.
The fiscal deficit for the first nine months of the current fiscal year, at Rs 9.82 lakh crore, represents 55.0% of the target for the entire year, which is Rs 17.87 lakh crore.
59.8% of the budget deficit for the fiscal year 2022–2023 was achieved between April and December of 2022.
Stocks in news
One 97 Communications (Paytm): After February 29, 2024, no more deposits, credit transactions, or top-ups would be permitted in any customer accounts, prepaid devices, wallets, FASTags, NCMC cards, etc., according to new action taken by the Reserve Bank of India against Paytm Payments Bank. The RBI ordered Paytm Payments Bank to halt onboarding new clients immediately on March 11, 2022.
Glenmark Pharmaceuticals: Glenmark and Pfizer collaborated to introduce Abrocitinib in the Indian market. Atopic dermatitis that ranges from moderate to severe is treated with bracitinib.
Shree Cement: Despite strong demand growth, the cement company’s standalone net profit increased by 165 percent year over year to Rs 734 crore for the quarter that ended in December of FY24. This was due to enhanced realisation and cost reduction. At Rs 4,901 crore, operating revenue increased by 20% year over year.
Godrej Consumer Products: The FMCG company’s strong operating results helped it record a 6.4 percent year-over-year increase in consolidated profit for the October–December fiscal year of FY24, at Rs 581 crore. Comparing the quarter’s consolidated revenue from operations to the same time in the previous fiscal year, it climbed by 1.7% to Rs 3,660 crore.
Jindal Steel & Power: The company’s consolidated profit for the quarter that ended in December of FY24 was Rs 1,928 crore, up 272 percent from the profit of Rs 518 crore in the same period last year. Because of the extraordinary loss and increased tax expenses in Q3FY23, the base was low. At Rs 11,701.3 crore, the combined revenue from operations decreased 6% on an annual basis.
Dixon Technologies: Despite a negative operating margin brought on by higher input costs, the electronic manufacturing services provider reported an 87 percent year-over-year increase in consolidated net profit at Rs 97 crore for the October–December quarter of FY24. This increase was driven by a robust topline. Operational revenue increased to Rs 4,818.3 crore, a 100% increase over the same time last year.
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