Finance Minister Presents Interim Budget: Market Recap
On the heels of Finance Minister Nirmala Sitharaman’s presentation of the Interim Budget, let’s dive into the key happenings in the stock market.
Table of Contents
Market Overview: Steady Performance with Sectoral Variances
The stock markets witnessed a relatively subdued day, with minimal fluctuations. Notable movements included a surge in PSU bank stocks, contrasting with a decline in media stocks.
In the US, the Federal Reserve maintained interest rates, emphasizing a cautious approach towards rate cuts unless there’s heightened confidence in inflation reduction. Subsequently, US markets experienced a dip.
Top Gainers and Losers in NIFTY 50
Top Gainmakers:
- NIFTY 50: Notable climb.
- Maruti Suzuki: Rs 10,637.95, up by 4.43%.
- Cipla: Rs 1,387.65, up by 2.71%.
- Power Grid: Rs 265.80, up by 2.51%.
- Eicher Motors: Rs 3,933.20, up by 2.44%.
- SBI Life: Rs 1,432.75, up by 2.26%.
Top Losers:
- NIFTY 50: Showing a decline.
- UltraTech: Rs 9,922.30, down by 2.41%.
- L&T: Rs 3,398.00, down by 2.35%.
- Grasim: Rs 2,128.60, down by 2.13%.
- Dr Reddy’s: Rs 5,993.15, down by 2.09%.
- JSW Steel: Rs 801.70, down by 2.07%.
Interim Budget Highlights: Infrastructure Boost and Fiscal Goals
The Interim Budget unveiled several significant proposals, including the conversion of 40,000 rail bogies to Vande Bharat standards, the provision of free electricity to 1 crore households through rooftop solar power, and the mandatory blending of Compressed Bio Gas (CBG) in CNG and PNG.
Furthermore, the government aims to reduce the fiscal deficit to 4.5% of GDP by 2025-26.
Quarterly Results: Corporate Performance Snapshot
Titan:
- Standalone net profit increased by 9.4% YoY to Rs 1,040 cr.
- Revenue from operations surged by 20% to Rs 13,052 cr.
Adani Enterprises:
- Net profit soared by 130% to Rs 1,888 cr.
- Revenue from operations rose by 6.5%, reaching Rs 28,336.4 cr.
Adani Ports:
- Net profit witnessed a robust 65% growth, reaching Rs 2,208 cr.
- Revenue from operations increased by an impressive 44.58% to Rs 6,920.10 cr.
Business Developments and Plans
Bain Capital: The investment firm plans to allocate $7 billion for investments in India over the next 3 to 5 years.
Flipkart: In February, Flipkart is set to roll out its same-day delivery services in 20 metro and non-metro cities.
Power and Economy Insights
- India’s power consumption saw a substantial 6% increase in January 2024, reaching 133.83 Billion Units compared to January 2023.
Stocks in News: Market Reactions and Investigations
- Paytm: The company anticipates a potential worst-case impact of Rs 300 to 500 cr on its annual EBITDA due to recent RBI actions.
- India Cements: The Enforcement Directorate initiated searches at its Chennai office in connection with an investigation into potential violations related to foreign exchange regulations.
- Deepak Nitrite: A fully-owned subsidiary of Deepak Nitrite, Deepak Chem Tech, signed an agreement with the Gujarat government for an investment of approximately Rs 9,000 cr for projects in Dahej.
- Coal India: Reported a notable 9.1% increase in coal production, reaching 78.4 million tonnes in January 2024 compared to 71.9 million tonnes in January 2023.
Market Indicators: One Day Changes and Long-Term Returns
One Day Change:
- Gold: ₹62,674, down by 0.18%.
- Silver: ₹71,246, down by 1.42%.
- USD-INR: ₹82.99/USD, down by 0.09%.
- Dow Jones: 38,150.30, down by 0.82%.
- Nasdaq: 15,164.01, down by 2.23%.
Long-Term Returns (Past 20 Years):
- Sensex: Up by 13.57% p.a.
- Nifty: Up by 13.35% p.a.
- Dow Jones: Up by 6.67% p.a.
- Nasdaq: Up by 10.48% p.a.
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