MARKET AT RECORD HIGH; FMCG SHARES RALLY

The key equity benchmarks hit a new life high in mid-afternoon trade. The Nifty hovered above the 21,450 level. FMCG shares advanced after declining for two consecutive trading sessions.

At 14:30 IST, the barometer index, the S&P BSE Sensex, was up 262.92 points or 0.37% to 71,578.01. The Nifty 50 index added 69.90 points or 0.33% to 21,488.55.

In the broader market, the S&P BSE Mid-Cap index slipped 0.07% and the S&P BSE Small-Cap index rose 0.35%.

The market breadth was positive. On the BSE, 1,974 shares rose and 1,742 shares fell. A total of 149 shares were unchanged.

Economy:

India�s economic growth rate is expected to remain strong, supported by macroeconomic and financial stability, according to an International Monetary Fund (IMF) assessment report released on Tuesday.

"Going forward, the country�s foundational digital public infrastructure and a strong government infrastructure program will continue to sustain growth. India has potential for even higher growth, with greater contributions from labour and human capital, if comprehensive reforms are implemented,� the report stated.

The country�s current account deficit is expected to improve to 1.8 per cent of GDP in FY2023/24 as a result of resilient services exports and, to a lesser extent, lower oil import costs, the report adds.

It projects a real GDP growth rate of 6.3 per cent in FY2023/24 and FY2024/25 and states that "headline inflation is expected to gradually decline to the target although it remains volatile due to food price shocks�.

The World Bank�s "Migration and Development Brief", released on Monday, states that the inward remittances to India in 2023 increased by 12.3 per cent to $125 billion from 111.22 billion in 2022. India`s inward remittances now account for 3.4 per cent of the country�s gross domestic product (GDP).

According to this report, India continues to be the highest recipient of remittances globally, followed by Mexico ($67 billion) and China ($50 billion). India currently accounts for 66 per cent of all remittances to South Asia, higher than 63 per cent in 2022.

Buzzing Index:

The Nifty FMCG index advanced 1.43% to 54,787.35. The index has fell 0.63% in two consecutive sessions.

Nestle India (up 4.33%), Tata Consumer Products (up 2.87%), Varun Beverages (up 2.46%), Colgate-Palmolive (India) (up 2.06%) and Godrej Consumer Products (up 1.81%) were the top gainers. Among the other gainers were Dabur India (up 1.53%), Marico (up 1.27%), Emami (up 1.12%), Hindustan Unilever (up 1.03%) and ITC (up 1.01%).

On the other hand, United Spirits (down 1.3%), Radico Khaitan (down 1.26%) and United Breweries (down 0.38%) moved lower.

Numbers to Tracks:

The yield on India`s 10-year benchmark federal paper added 0.11% to 7.161 as compared with previous close 7.153.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.1950, compared with its close of 83.1000 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement declined 0.11% to Rs 62,223.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.01% to 102.55.

The United States 10-year bond yield declined 1.19% to 3.909.

In the commodities market, Brent crude for February 2024 settlement rose 3 cents or 0.04% to $77.98 a barrel.

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