MC BudEx ends flat, Bharat Electronics top loser

Moneycontrol’s Budget Sensitive Index closed flat on January 30, as caution crept among investors ahead of the big economic event on February 1 as well as interest rate decisions by central banks.

Bharat Electronics was the biggest laggard on the index with the stock slumping over 6 percent. The Navratna PSU firm missed estimates in terms of profitability during the third quarter of FY23, while higher raw material costs impacted the EBITDA margins. Revenue, however, was in line with expectations.

Also Read: Bharat Electronics down after Q3 profit disappoints but ICICI Securities sees 37% upside

The other worst performers were Larsen & Toubro (L&T), Power Grid Corporation of India and Tata Steel.

L&T shares fell over 2 percent ahead of the engineering major's Q3 earnings, while Power Grid also slipped 3 percent as investors keenly awaited for the power company's quarterly numbers. Power Grid is likely to report healthy growth in revenue driven by better power demand. The company's asset capitalisation plan will be closely tracked.

Coal India and NTPC shares were among the top gainers.

In view of the government's increased focus on clean energy storage and transmission, market participants lately have been focussing more on investing in companies that have bright prospects in the renewable space.

Coal India shares rose about 1.8 percent with reports stating that the state-run miner plans to invest around Rs 42,600 crore in low-emission infrastructure for fossil fuel mining and green energy to help India achieve its net-zero targets.

NTPC's robust sales growth in the December quarter and a solid project pipeline, coupled with asset monetisation, plan got the D-Street excited with the scrip surging 1.4 percent.

Market participants remain hopeful of positive triggers from Budget 2023. "Though recently there has been some net outflow in terms of FPI investment, India continues to be a preferred investment destination in terms of overall growth and stability," Manoj Purohit, Partner & Leader – Financial Services Tax, BDO India said.

The Budget 2023 is likely to provide further acceleration for foreign investment inflows as demonstrated by the government in its previous budgets, he added."Overall, with its focus on growth and development, this Budget may have something for everyone. FMCG, manufacturing, MSME and banking are a few sectors that may see action," said B Gopkumar, MD & CEO, Axis Securities.