Nifty closes at 17,600 level amid strong volatility; Life Insurance and Adani stocks slide, FMCG surges

ITC, Tata Steel and ICICI Bank emerged as the top gainers from the Nifty 50 index

Market update at 3.30 PM: In a dramatic turn of events, NSE Nifty 50 index slipped over 500 points from day’s high, only to recover over 200 points in the last half hour. In the end, the benchmark index closed at 17,600 level, down by quarter per cent.  

Apart from FMCG and IT, all other sectors witnessed strong sell-off. Life Insurance stocks cracked over 10 per cent post negative reactions from the budget.  

Despite strong volatility in the market, ITC, Tata Steel and ICICI Bank emerged as the top gainers from the Nifty 50 index while Adani Enterprises, Adani Ports and HDFC Life Insurance were the top losers.   

Nifty formed a strong bearish bar with wicks at both ends. Meanwhile, focus turns towards global cues with the upcoming US Fed meet regarding interest rate hike.   

Market update at 2.30 PM: Indices have witnessed sharp sell-off post union budget. NSE Nifty 50 index has slumped 0.31 per cent to trade below 17,600 level while S&P BSE Sensex has lost all its early gains. Nifty Midcap and Nifty Smallcap have plunged 1 per cent each.   

Life Insurance stocks are being hammered amid negative reaction to the budget. PSU Banks and metals have also lost ground.   

About 156 stocks are advancing as against 344 stocks that are declining, thus indicating negative market breadth in Nifty 500 index.   

Budget 2023 LIVE updates: In her 5th union budget speech, FM Nirmala Sitharaman has announced new tax rebate that would have an exception upto 7 lakh.

Fiscal deficit target has been reduced to 5.9 per cent for FY 2023-24 from 6.4 per cent in FY 2022-23, which is quite an optimistic target as per FM.  

The Indian Railways has been allocated a capital outlay of Rs 2.4 lakh crore in the Union Budget 2023-24. This is the highest ever allocation to the national transporter and continues on the trend followed last year with a gross budgetary support of Rs 1.37 lakh crore in fiscal 2022-23. 

New program has been announced to promote research and innovation in pharmaceuticals that will be taken up through various centers of excellence. 

The recently launched national green hydrogen will help the country to transition to low carbon intensity and reduce dependency on fossil fuel imports. Allocation for Rs 35,000 crore capital investment towards energy transition and net zero objective has been made.   

Nifty has soared 1.11 per cent to trade at day’s high of 17,870 level. Sensex has surged over 750 points.

Budget 2023 Update at 11.30 AM: FM announces mega capex plan of Rs 10 lakh crore for FY 2023-24, which is 33 percent higher than the budget estimate of Rs 7.5 lakh crore for 2022-23. 

Nifty bounces about 80 points from day’s low to trade at 17,800 level. 

Market update at 11 AM: Indices are trading higher ahead of union budget. NSE Nifty 50 index trades above 17,800 level while Sensex has jumped 600 points. Strong buying is seen across the broader market.   

All sectors are trading in green as FM commences the presentation of Budget 2023.   

Market update at 9.25 AM: Indices have opened higher ahead of budget and positive global cues. NSE Nifty 50 index has gained 0.61 per cent to trade at 17,750 level while S&P BSE Sensex has surged 400 points. Nifty Midcap and Nifty Smallcap have jumped over a per cent each. 

All sectors are trading in green and India VIX has slipped over 4 per cent.  

Pre-market update: All eyes would be set on FM Nirmala Sitaraman as she is set to present the final union budget of Modi government ahead of 2024 elections. The budget is likely to test the government's resolve to stay fiscally prudent as expectations of lower tax rates, strong social security and boost to corporations gather steam before the elections. 

The world markets also shall remain watchful over the US Fed decision regarding rate hikes. The central bank is widely expected to increase rates by 25 basis points but it is the Fed's commentary that shall determine the sentiment in the market. 

Coal India results: The state-run miner reported 70 per cent YoY jump in net profit to Rs 7556 crore and announced an interim dividend of Rs 5.25 per share.

In the last trading session, the FIIs sold to the tune of Rs 5439 crore while the DIIs bought shares worth Rs 4506 crore.

Nifty is expected to remain volatile throughout the day and keep an eye on India VIX.