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Business & Economy

Sensex, Nifty end in green after Budget day sell-off

IANS

Mumbai, February 3, 2020

The benchmark Sensex edged up 137 points on Monday, over easing oil prices and a rebound in Manufacturing PMI index which rose from 52.7 in December to 55.3 in January, its highest level in just under eight years.

IHS Markits said that the consumer goods sub-sector remained the brightest spot, although growth was sustained in intermediate goods and capital goods moved back into expansion.

"Companies noted the strongest upturn in new business intakes for over five years, which they attributed to better underlying demand and greater client requirements," it added.

The Sensex closed at 39,872.31, higher by 136.78 points and the Nifty gained 62 points to settle at 11,724.05. Nifty PSU Bank index lost 2.46 per cent, the most among the sectoral indices.

Vinod Nair, Head of Research at Geojit Financial Services said: "With valuations on the higher side, the on-going results reported has been mostly inline with estimates. Manufacturing PMI shows notable rebound providing a breather that economy will stabilise as mentioned in the budget.

ITC stocks hit a 52-week low on Monday after the government proposed a hike in tax on tobacco and cigarettes. ITC closed 4.61 per cent lower at Rs 215 a share. Bharti Infratel Limited lost over 6 per cent while Yes Bank declined nearly 5 per cent.

Ajit Mishra, VP - Research, Religare Broking, said that the Indian markets witnessed a volatile session but ended on a positive note as investors absorbed the union budget disappointment.

"We believe absence of any major announcements in the budget may weigh on investor sentiments in the short-term and we may continue to witness volatility. On the global front too, while liquidity boost of $173 bn by China's central bank is a good sign, rising concerns regarding coronavirus may continue to cause uncertainty in the markets," he added.

Meanwhile, Chinese equity markets fell sharply on Monday, the first day after an extended Lunar New Year holiday, when the investors got a chance to react to the Coronavirus spread. The benchmark Shanghai Composite Index fell over 8 per cent intra-day, logging its worst single day fall since August 2015.

IANS

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