Benchmark equity indices recovered the previous day’s losses and settled nearly 1 per cent higher a day before Interim Budget 2024, on the back of strong buying in heavyweights HDFC Bank and Reliance Industries. Investors are eyeing the interim budget and the US Fed interest rate decision to take further cues from.
The BSE Sensex jumped 612.21 points or 0.86 per cent to settle at 71,752.11. The NSE Nifty climbed 203.60 points or 0.95 per cent to close at 21,725.70. All sectors ended in green with buying seen in PSU Bank, Pharma, and Realty.
Finance Minister Nirmala Sitharaman will present the interim budget at 11 am today, in the Lok Sabha. The full budget for the financial year 2024-25 will be presented in July after the Lok Sabha elections.
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With the Budget being an interim one and a vote on account, market participants are not anticipating any major announcements. However, the government is likely to focus on fiscal consolidation and key policy reforms such as Atmanirbhar Bharat and the PLI scheme can receive further impetus.
“Global markets will keenly await the US Fed’s commentary on the rate cut timeline. On the domestic front, investor’s focus will be on the Budget. While the Interim Budget is non-event, the general expectations are minimal in terms of major proposals. Given that India’s economic growth has been strong in the last 2 years, the government could focus on fiscal consolidation and could set a fiscal deficit target of around 5.2-5.4 per cent of GDP. Since it is colliding with the US Fed outcome we expect the market to see some volatility. However, the overall trend continues to remain positive,” said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd.
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Here are the key stocks to watch ahead of budget on 1 February:
One 97 Communications (Paytm)
The Reserve Bank of India (RBI) on Wednesday barred Paytm Payments Bank Ltd from accepting deposits or allowing credit transactions, or top-ups, in customer accounts, prepaid instruments, wallets, NCMC cards, and FASTags linked to those accounts after 29 February, other than any interest, cashbacks, or refunds that may be credited anytime. The nodal accounts of One97 Communications and Paytm Payments Services are to be terminated at the earliest, in any case not later than February 29, 2024.
Shree Cement
The cement major posted a 165 per cent YoY increase in standalone net profit at Rs 734 crore for the quarter ended December FY24, due to improved realization and cost reduction amid strong demand growth. Revenue from operations jumped 20 per cent YoY to Rs 4,901 crore. EBITDA for the reported period jumped 74 per cent to Rs 1,234 crore and EBITDA margins rose 780 basis points to 25.2 per cent to the year-ago period. Sales volume grew 11 per cent YoY to 8.89 million metric tons and capacity utilization improved to 77 per cent from 72 per cent during the same period.
Infosys
The IT major has received a seven-year contract from Musgrave Group Ltd to automate the Irish food wholesaler’s information technology operations across Ireland and Europe by leveraging its industry-leading AI and Cloud offerings. The financial details related to the weren’t revealed.
Ajanta Pharma
The pharmaceutical company reported 56 per cent growth in consolidated net profit at Rs 210 crore for the December quarter of FY24 compared to Rs 135 crore in the year-ago period. The company’s revenue came in at Rs 1,105 crore, up 14 per cent from Rs 972 crore in the year-ago period. The Board of Directors has approved a second interim dividend of Rs 26 per cent share for FY24.
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Godrej Consumer Products
The FMCG company has reported a 6.4 per cent YoY growth in consolidated net profit at Rs 581 crore for the third quarter of FY24. Consolidated revenue from operations grew 1.7 per cent YoY to Rs 3,660 crore.
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