Volatile Trading Day for Nifty 50 Amidst Interim Budget and Global Sentiments

At the close, the Nifty 50 was at 21,697.45 down by 0.13%

On February 1, the NSE Nifty 50 experienced a day of market fluctuations, opening on a positive note but ultimately closing with a 0.13 percent dip, settling below 21,700. Finance Minister Nirmala Sitharaman’s presentation of the Provisional Financial Plan played a pivotal role, leading to a seesaw effect. Initially, the market witnessed gains, but the absence of substantial announcements resulted in erasing those gains. The Nifty 50 closed at 21,697.45, indicating a narrow range and a loss of 28.25 points.

In the midst of this market activity, the Auto and Pharma sectors exhibited mixed performance. Meanwhile, the broader market demonstrated divergence, with Midcaps aligning with the benchmark index and Smallcaps ending positively. Despite the eventful day, the Nifty’s range remained relatively narrow.

Globally, the decision by the US Federal Reserve to maintain the status quo without signaling an early rate cut had a dampening effect on market sentiments. The Provisional Financial Plan outlined the government’s focus on empowering key sectors, including affordable housing, infrastructure, railways, defense, and consumption. This emphasis sets the stage for potential market movements in the upcoming sessions, as investors assess the implications for various sectors.

Bank Nifty: Up by 0.42%

The Bank Nifty commenced the trading day on a positive note, opening in the green and witnessing a steady uptick of 0.42 percent. The day concluded on a positive trajectory, with the index closing at 46,188.65, showcasing resilience in the banking sector. Contrastingly, the BSE Sensex experienced a marginal decline of 0.15 percent during the trading session, closing in the red at a low of 71,645.30. This dip in the Sensex indicates a nuanced market scenario, with certain sectors facing headwinds.

In the sectorial front, the auto sector emerges as a frontrunner with a commendable 0.53% gain. Notably, Maruti Suzuki India Ltd. showcases an impressive 4.09% surge, signaling positive market sentiment. Eicher Motors Ltd. follows suit with a noteworthy 2.11% gain, contributing to the overall sectoral growth. On the flip side, the media sector experiences a downturn, registering a 1.09% loss. D.B.Corp Ltd. takes a hit, witnessing a decline of -2.88%, while TV18 Broadcast Ltd. faces a -2.07% setback.

Foreign Institutional Investors (FIIs/FPIs) engaged in a dynamic trading session, with a buy value of Rs. 19,287.92 crore and a sale value of Rs. 21,167.50 crore, resulting in a net value decrease of Rs. 1,879.58 crore. On the domestic front, Domestic Institutional Investors (DIIs) participated actively, showcasing a buy value of Rs. 12,991.07 crore and a sale value of Rs. 12,118.58 crore, yielding a positive net value of Rs. 872.49 crore.

Bank Nifty

The Nifty Banking sector had some gainers and some losers for the day.

The gainers included Punjab National Bank with a 4.24% increase, Bank of Baroda with a 3.59% increase, Axis Bank with a 1.47% increase, State Bank of India with a 1.25% increase, and HDFC Bank with a 0.27% increase. On the other hand, the biggest losers in the sector included Bandhan Bank with a 1.40% decline, IDFC First Bank with a 1.07% decline, Federal Bank with a 0.34% decline, ICICI Bank with a 0.34% decline, and AU Bank with a 0.14% decline. These results suggest that some of the banking stocks performed better for the day.

Rupee Gains Ground Against Dollar Post-Budget Announcement

Following Finance Minister Nirmala Sitharaman’s presentation of the Provisional Financial Plan, the Indian rupee demonstrated resilience, appreciating by 8 paise to close at 82.96 against the US dollar. The government’s commitment to faster fiscal consolidation and reduced borrowings contributed to the positive sentiment.

Despite this upward trend, a robust US dollar against major currencies globally and subdued domestic equity markets restrained the rupee from experiencing a more substantial gain. Sitharaman’s emphasis on an 11% increase in capital expenditure for the next fiscal year aimed at sustaining impressive economic growth rates further fueled market dynamics.

During the trading session, the rupee ranged from a high of 82.93 to a low of 83.03 against the dollar, ultimately settling at 82.96, marking an 8 paise gain from its previous close. The preceding day saw a 6 paise appreciation, with the dollar index showing a 0.45% uptick at 103.55.

Additionally, global oil prices, represented by Brent crude futures, surged by 0.92% to $81.29 per barrel, adding an external factor influencing currency movements. Investors are advised to monitor these multifaceted dynamics for a comprehensive understanding of the rupee’s performance in the evolving economic landscape.

Stocks Highlights

Maruti Suzuki India Ltd. witnessed a commendable surge, with its share price rising by 4.09% to reach Rs 10,603.20 from its previous close of Rs 10,186.90. The company’s impressive annual revenue growth of 32.9% outshone its 3-year Compound Annual Growth Rate (CAGR) of 14.7%. Adding to the positive outlook, a bullish signal emerged with a 50-day moving crossover, historically associated with an average price gain of 4.67% within 30 days.

On the flip side, Grasim Industries Ltd. experienced a decline, with its share price dropping by -2.60% from Rs 2,175.00 to Rs 2,118.35. However, the company’s annual revenue growth of 25.61% surpassed its 3-year CAGR of 16.61%. A bullish signal appeared with a Daily MACD crossover on Jan 30, 2024, historically leading to an average price gain of 3.78% within 10 days.

Insights into Grasim Industries’ financials reveal a prudent approach to expenses, allocating 5.14% towards interest expenses and 6.12% towards employee costs in the fiscal year ending Mar 31, 2023.

Advance Decline Ratio

Today, the advance-decline ratio was 0.76, and the market breadth was negative. The volatility index India Vix decreased by 9.92 percent to settle at 14.46 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1088
Decliners – 1423
52Wk High –  251
52Wk Low – 12
High Band Hitters – 137
Low Band Hitters – 49
200d SMA – 19643
50d SMA – 21205
20d SMA – 21634

Top Gainers and Losers Stocks

The top gainers were Maruti (+4.09%), Power Grid (+2.68%), Cipla (+2.44%), SBI Life (+2.34%), and Eicher Motors (+2.11%).

The top losers were Grasim (-2.60%), Larsen & Toubro (-2.35%), UltraTech Cement (-2.34%), Dr. Reddy (-2.14%), and JSW Steel (-1.89%).

Top Gainers and Losers Sector

The top gainers sector were Auto (+0.53%), FMCG (+0.26%), and Financial Services (+0.09%).

The top losers sector were Media (-1.09%), Metal (-1.03%), Realty (-0.94%), Pharma (-0.55%), and Consumer Durables (-0.44%).

SECTORS – NOTABLE ACTION
AUTO +0.53%
FMCG +0.26%
FINANCIAL SERVICES +0.09%
MEDIA -1.09%
METAL -1.03%
REALTY -0.94%

Stocks Ban List

(SEBI) F&O ban list (SAIL open at +123.50 and close at -119.30), and (ZEEL open at +177.15 and close at -170.55) are not currently on the stock exchange.

A stock enters the Ban List if its MWPL is above 95%. Implying that, Ban List shows the Futures and Options (FnO) stocks whose combined open interest in all FnO contracts for a given period crosses 95% of Market-Wide Position Limit.

HINDCOPPER, and NATIONALUM stocks has the possibilities of entrance in the ban list.

Daily Pivots

As per the above pivots data, 21600 to 21850 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Investor Confidence Soars Nifty Jumps 1% Pre-Budget and Before Fed Meeting
NSE Nifty 50 Starts Green but Closes in Red, Nifty Dips Below 21550
Buying Spree and Heavyweights Propel Indian Equity Indices to a Strong Start in Budget Week

This article is only for educational purposes and is not an investment advice.