Market drifts lower in early trade; breadth strong

Key benchmark indices are trading lower in early trade on profit booking after recent gains triggered by Union Budget announcements. At 9:25 IST, the barometer index, the S&P BSE Sensex, was down 188.09 points or 0.37% at 50,067.66. The Nifty 50 index was down 28.95 points or 0.2% at 14,761.

The S&P BSE Mid-Cap index was up 0.46%. The S&P BSE Small-Cap index was up 0.56%.

The market breadth, indicating the overall health of the market, is strong. On the BSE, 1228 shares rose and 694 shares fell. A total of 80 shares were unchanged.

The Union Budget 2021 unveiled on 1 February 2021 supported all the essential aspects of growth by an increase in government spending without an increase in indirect taxes. The Budget offered huge stimulus to infrastructure, capex, healthcare and boosted the credit flow by taking out the toxic assets of the banking system. Increased FDI limit in insurance improved the overall outlook of the sector.

Stocks in news:

Bharti Airtel gained 0.29%. Bharti Airtel reported net profit of Rs 853.60 crore in Q3 December 2020 as compared to net loss of Rs 1,035.30 crore in Q3 December 2019. Total income rose 64.05% to Rs 36,377.10 crore in Q3 December 2020 over Q3 December 2019.

Hero MotoCorp gained 3.03%. The company has set up a separate vertical to drive its new business of Harley-Davidson products and merchandise distribution in India. The company has also commenced wholesale dispatches of Harley Davidson products to the dealers from January 18.

HCL Technologies fell 0.62%. HCL Technologies and Alteryx, Inc. announced a global strategic alliance to help companies across the globe succeed in their analytics automation and digital transformation priorities. As part of this strategic engagement, HCL has also been named an Alteryx Elite Alliance Partner.

Procter & Gamble Hygiene and Health Care jumped 7.05% after the company's net profit jumped 84.37% to Rs 250.62 crore on 18.37% rise in total income to Rs 1,027.79 crore in Q3 December 2020 over Q3 December 2019.

Prince Pipes & Fittings surged 6.96% after net profit jumped 175.08% to Rs 66.79 crore on 39.57% rise in total income to Rs 553.64 crore in Q3 December 2020 over Q3 December 2019.

V I P Industries fell 1.8%. The company reported net loss of Rs 8.68 crore in Q3 December 2020 as compared to net profit of Rs 26.55 crore in Q3 December 2019. Total income fell 44.41% to Rs 240.24 crore in Q3 December 2020 over Q3 December 2019.

Global Markets:

Overseas, Asian stocks are trading mostly lower on Thursday following another positive session overnight for the S&P 500 stateside.

In US, the Dow and S&P 500 rose slightly on Wednesday, registering a third straight session of gains, with Alphabet Inc's shares hitting a record high following its strong quarterly results.

The House passed a budget resolution Wednesday, a key step as Democrats push toward a vote on a $1.9 trillion coronavirus relief package. Approval of the measure allows Congress to move forward with reconciliation, through which Democrats can pass an aid bill without Republican support. The Senate is expected to approve a resolution later this week.

Back home, the benchmark indices surged for third consecutive session on Wednesday, as euphoria surrounding the Union Budget continued. The S&P BSE Sensex, soared 458.03 points or 0.92% at 50,255.75. The Nifty 50 index surged 142.10 points or 0.97% at 14,789.95.

Foreign portfolio investors (FPIs) bought shares worth Rs 2,520.92 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 399.74 crore in the Indian equity market on 3 February, provisional data showed.

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