Markets Slip as Trump Tariffs & Weak Rupee Weigh on Sentiment!

📰Daily Market Wrap-Up by Stock Whisperers-February 03

Author

thestock whisperers
February 03, 2025

03-February-2025

📈 Market Overview:

Summary of the Day's Market Performance

Market Overview

  1. Sensex closed at 77,186.74, down 319.22 points (0.41%).

  2. Nifty ended at 23,361.05, down 121.10 points (0.52%).

  3. Midcap index declined 1%, while smallcap index dropped 1.7%.

  4. Sectoral Performance:

    • Gainers: Consumer Durables (+0.5%), IT (+0.7%).

    • Losers: Capital Goods (-4%), Energy, Metal, Oil & Gas, Power, PSU (-2% to -3%).

💸 Market Transactions:

  • Foreign Institutional Investors (FII): ₹-3,958.37 crore (Net Sellers)

  • Domestic Institutional Investors (DII): ₹2,708.23 crore (Net Buyers)

Heavy foreign investor selling continued, putting additional pressure on Indian equities.

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

  • Rupee fell to a record low of ₹87+ per USD, as global risk-off sentiment intensified.

  • Global fears hit Indian markets as Trump announced tariffs on China, Mexico, and Canada, triggering a fresh wave of trade war concerns.

  • Trade war fears triggered fresh selling across emerging markets, with Indian indices facing the heat.

  • Metal & auto stocks collapsed, fearing price hikes due to tariffs.

  • IT stocks held ground amid global volatility, while capital goods and energy sectors suffered heavy losses.

  • Hopes of an RBI rate cut are keeping select financial stocks buoyant.

  • DII buying helped cushion losses, but sentiment remains weak.

❓ DO YOU KNOW?

💡 Rupee Tanks Past ₹87/USD! 💵🔥
The sharp 55 paise fall came after Trump’s tariff war announcement, sending shockwaves across forex markets. Will the RBI intervene? Stay tuned!

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:

    • Bajaj Finance, M&M, Wipro, Shriram Finance, Bajaj Finserv

  • Top Losers:

    • L&T, ONGC, Bharat Electronics, Tata Consumer, Coal India

1.Bajaj Finance Hits Record High 📈🏦: Stock surged 5% as investors bet on consumption push & potential RBI rate cut.

2.Railway Stocks Crash 🚂📉: RVNL, IRFC fell up to 8% as the Budget kept capex unchanged for FY26.

3.GR Infra Slumps 🏗️📉: Stock dropped 5% after Q3 revenue fell 21% despite a YoY profit increase.

4.Metal Stocks Plunge ⛏️📉: Vedanta, NALCO, NMDC fell 6% as a spike in USD triggered selling pressure.

5.Auto Component Makers Fall 🚗📉: Sona BLW, SAMIL crashed up to 7% as Trump tariffs could impact Mexico-dependent revenue.

6.UPL Surges on Upgrade 🌱📈: Investec upgraded UPL to ‘Buy’, pushing the stock up 5% with a new target of ₹700.

7.ITC Gains More Momentum 🚬📊: Jefferies & Morgan Stanley set a new target above ₹550, indicating further upside.

8.Swiggy Rallies 5% 🍔📈: Kotak Institutional Equities sees another 10% upside, boosting investor sentiment.

9.Taj GVK Hotels Posts Strong Q3 🏨💰: December Net Sales rose 14.23% YoY to ₹126.94 crore, pushing stock higher.

Your Weekly Stock Markets Rundown: Union Budget 2025-26—A Vision for Viksit Bharat!

February 3–7, 2025

  1. Budget 2025-26 Unveiled: The Union Budget focuses on economic reforms, rural upliftment, MSME growth, infrastructure expansion, and streamlined tax reforms.

  2. Global Rate Decisions: The US Fed maintained interest rates at 4.25–4.50%, impacting commodity prices and inflation trends.

  3. Earnings Drive Market Sentiment: Strong results boost stock movements, with financials emerging as a safe bet.

  4. IPO Buzz: Arisinfra Solutions IPO opened on February 3, with strong investor interest.

  5. RBI’s MPC Meet: The central bank's decision on interest rates will be a key factor in market movement next week.

👀Stocks to Focus:

  1. Bajaj Finance, Shriram Finance, Bajaj Finserv: Rate cut expectations could drive further gains.

  2. UPL: Strong buy rating & debt reduction plans make it a potential gainer.

  3. ITC: Analysts see further upside; stock remains in focus.

  4. Metal & Auto Component Stocks (Vedanta, Sona BLW, NMDC): Under pressure due to trade war concerns, watch for opportunities.

  5. Hotel Stocks (Taj GVK, Indian Hotels): The strong demand outlook makes them attractive picks.

📝Summary:

Markets dropped sharply as global uncertainty and trade war fears rattled investor sentiment. FII outflows surged, rupee hit record lows, and mid & small-cap stocks saw major selling. However, financial & IT stocks held firm, while DII buying prevented a deeper fall. Eyes now on the RBI policy decision and further global trade developments. Stay cautious! 🚨📉

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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.