Markets End Flat as Budget Triggers Mixed Sentiment!

📰Daily Market Wrap-Up by Stock Whisperers-February 01

Author

thestock whisperers
February 01, 2025

01-February-2025

📈 Market Overview:

Summary of the Day's Market Performance

Market Overview

  1. Sensex closed at 77,505.96, up 5.39 points (0.01%).

  2. Nifty ended at 23,482.15, down 26.25 points (0.11%).

  3. The midcap index fell 0.5%, while the smallcap index added 0.3%.

  4. Sectoral Performance:

    • Gainers: Consumer Durables (+3%), Realty (+3.3%), Auto (+1.9%), Media (+2%), FMCG (+3%).

    • Losers: Capital Goods, Power, PSU (-2% to -3%), Metal, IT, Energy (-1% to -2%).

💸 Market Transactions:

  • Foreign Institutional Investors (FII): ₹-1,327.09 crore (Net Sellers)

  • Domestic Institutional Investors (DII): ₹824.38 crore (Net Buyers)

Foreign investors continued selling, but domestic institutions provided some support.

Budget 2025-26: A Blueprint for Viksit Bharat!

Inclusive Growth, Stronger Economy, and Future-Ready Reforms

In this article, The Union Budget 2025-26 aims to accelerate India's journey towards becoming a developed nation (Viksit Bharat) through strategic reforms, inclusive development, and enhanced capital expenditure. The budget focuses on uplifting the rural economy, empowering MSMEs, boosting private sector investments, and strengthening infrastructure and social welfare programs.

📊📑 Important Observations and Market Sentiments: Editor Special

  • Markets remained volatile on Budget Day, with sharp movements across sectors.

  • Battery, insurance, and tourism stocks gained on key budgetary announcements.

  • Railway, Defence, and Infra stocks saw a downturn as lower capex dampened expectations.

  • Consumption-based sectors gained modestly but did not significantly impact the broader market.

  • A boost in disposable income and business-friendly policies could have long-term positive effects on the economy and markets.

  • Long-term growth themes remain intact, but near-term market sentiment is cautious.

❓ DO YOU KNOW?

💡 Hotel & tourism stocks surged! 🏨✈️
The government plans to develop the top 50 tourist destinations under a state partnership model, boosting the travel and hospitality industry!

Budget 2025-26: Stocks to Watch for Growth & Opportunity

Top Sectors & Companies Set to Benefit from India's Economic Roadmap 🚀📈

In this article, we analyze the top stocks that are likely to benefit from Budget 2025-26, highlighting key sectors and companies that could see strong growth in the coming months. Whether you are a long-term investor or a swing trader, these stocks deserve your attention as they align with India’s vision of Viksit Bharat. 🚀💹

📰Stock News:

Key Stock Movements and News

  • Top Gainers:

    • Trent, Maruti Suzuki, Tata Consumer, Eicher Motors, Bajaj Auto

  • Top Losers:

    • L&T, Bharat Electronics, Power Grid Corp, Grasim Industries, Cipla

  1. Battery Stocks Surge 🔋⚡: Exide Industries, Amara Raja Energy soared as FM announced the exemption of lithium-ion battery scrap from BCD.

  2. Swiggy & Zomato Rally 🍔📈: Stocks jumped 7% as income tax relief was announced, with no tax on income up to ₹12 lakh.

  3. Defense Stocks Slump 🛡️📉: Mazagon Dock (-5%), Bharat Electronics (-4%), and HAL (-4%) tumbled amid lower-than-expected capex spending.

  4. Cigarette Stocks Gain 🚬💨: ITC, Godfrey Philips, and VST Industries rose as no excise duty hikes were announced.

  5. Insurance Stocks Jump 📑💰: HDFC Life, and SBI Life rose 3% as FM increased the FDI limit to 100% in the insurance sector.

  6. Tourism Stocks Rally 🌍🏨: Stocks in hotel & tourism sectors surged as the government announced the development of 50 top tourist destinations.

  7. Broadband Connectivity Boost 📡📶: D-Link, HFCL, and MTNL gained as the government announced a broadband scheme for government schools.

  8. Fisheries & Shrimp Stocks Up 🦐📈: Avanti Feeds (+7%) & Apex Frozen Foods surged as the budget focused on sustainable fisheries growth.

  9. Agriculture Stocks Gain🌾🚜: Kaveri Seed saw gains as FM prioritized agriculture as a key growth engine.

  10. Quess Corp Rallies 👥📊: Stock gained 7% after promoters increased their stake, signaling confidence in future growth.

Your Weekly Stock Markets Rundown: All Eyes on Trump’s Policy Roller-Coaster & India's Upcoming Budget!

January 27-31, 2025

  • Global Focus: The new Trump administration has taken center stage, with global markets reacting to potential shifts in US trade, immigration, and economic policy.

  • India’s Union Budget: The Union Budget 2025-26, to be presented on February 1, is in the spotlight, with experts warning of possible market weakness as FIIs seek higher interest rate environments.

  • Corporate Earnings: Several high-profile companies in India will report their Q3 earnings, including Coal India, Tata Steel, Infosys, Maruti Suzuki, and Sun Pharma.

  • Central Bank Policies: The US Fed and Bank of Japan's interest rate decisions could significantly impact global markets, with the Fed potentially holding or hiking rates to combat inflation.

👀Stocks to Focus:

  1. Battery Stocks (Exide, Amara Raja Energy): Gaining traction due to budgetary incentives on lithium-ion battery scrap.

  2. Insurance (HDFC Life, SBI Life): A higher FDI limit could attract more investments in this sector.

  3. Tourism & Hospitality (Indian Hotels, EIH, Lemon Tree, TAJGVK): Government focus on tourism growth could drive long-term gains.

  4. Broadband Connectivity (D-Link, HFCL, MTNL): Budget focus on digital infrastructure could fuel stock momentum.

  5. Fisheries & Agriculture (Avanti Feeds, Apex Frozen Foods, Kaveri Seed): Government initiatives on sustainable farming and fisheries could benefit these stocks.

📝Summary:

Markets ended flat on Budget Day, reflecting mixed reactions to government policies. While consumer and tourism-related stocks gained, defense and infra stocks fell due to lower-than-expected capex allocation. FII outflows continued, keeping near-term sentiment cautious. However, long-term budget benefits in consumption, tourism, insurance, and digital connectivity could drive future growth. 📊🚀

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Disclaimer: The Stock Whisperers is a media platform providing educational and informational content related to the stock market. We do not offer investment advice, stock recommendations, or tips. Readers should consult a SEBI-registered advisor before making any investment decisions.