Stock Market stays cautious with Budget in sight amid agri buzz
Image credit X @NSEIndia
Fertilizer stocks shine amid lackluster trade in stock market
By S Jha
New Delhi, July 22: Sensex lost another 100 points on Monday. Nifty shed 30 points while the Economic Survey failed to cheer the market participants.
Union Minister for Finance Nirmala Sitharaman on Monday tabled the Economic Survey 2024 in both the houses of parliament. The Economic Survey portrayed a rosy picture of the economy.
Yet, the Economic Survey highlighted stress on attracting foreign direct investments. The annual pre-Budget document listed geo-strategic challenges.
Also Read: Economic Survey hits out at pvt sector for not creating enough jobs
The Economic Survey also turned spotlight on “soaring profits” of the corporate. It added that the corresponding job creation was lacking in the private sector.
With the Economic Survey not giving bullish cues, the indices traded flat to negative. A big fall in the indices was averted by the HDFC Bank.
The private banking behemoth helped erase deep losses in Sensex, Nifty, and Bank Nifty. The HDFC Bank at one time during the day’s trade was higher by more than two per cent.
But strong buying was seen in the broader market after the initial deep cuts. Avantel, which dived seven per cent in the first half an hour of the trade, went seven per cent higher afterwards.
Also Read: Environment for FDI to grow not highly favourable, says Economic Survey
The defence scrips came strongly after the initial dips. The shipyard firms from the public sector unit pack – Cochin Shipyard, Garden Reach Shipyard, and Mazagon Dock Shipyard – turned green.
The private sector defence play such as Paras Space and Defence and Zen Technology were also higher by almost five per cent each. The rail stocks were flat to positive in day’s trade,
But strong action was seen in the fertilizer sector. The market participants bet on the likelihoods of the Union Budget going bog on agriculture.
The fertilizer stocks were trending in day’s trade. National Fertilizer and Rashtriya Chemical Fertlizer were higher by almost 10 per cent each.
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The market participants are betting on good Monsoon along with Budget attention bringing good tides for the fertilizer stocks. It may be noted that the fertilizer stocks have mostly been laggard in the market rally in the recent months.
The positive attention of the Economic Survey on the hospitality sector brought cheers for investors of the hotel stocks. The Economic Survey highlighted that India should seize the opportunity to create the jobs in the hospitality sector.
The rising stake of India in the global tourism pie was specially mentioned in the Economic Survey. The stocks of Indian Hotel and Chalet Hotels were trading seven per cent higher on Monday.
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