Benchmark equity indices settled lower on the Budget day on Thursday after selling in capital goods, metal, and realty stocks. Amid no major announcements by FM Nirmala Sitharaman, the markets turned volatile during the presentation of the interim Budget.
The BSE Sensex settled lower by 106.81 points or 0.15 per cent at 71,645.30. The NSE Nifty dipped 28.25 points or 0.13 per cent to close at 21,697.45.
FM Sitharaman on Thursday raised capital expenditure by 11 per cent to Rs 11.11 lakh crore for 2024-25 while trimming the fiscal deficit for this financial year to 5.8 per cent, from the budgeted 5.9 per cent of GDP, and further lowering it to 5.1 per cent in the next fiscal. However, there were no changes in income tax slabs for individuals and corporates.
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“In the Interim Budget, the government emphasized empowering 4 pillars of Viksit Bharat namely Youth, Poor, Women, and Farmers. Further, the government continues to focus on consolidating the fiscal deficit and investing in infrastructure. Some of the sectors to benefit are affordable housing & finance, infra, railway, defense, and consumption. With two major events now behind, we expect markets to take support from the ongoing earning season and should remain in positive territory,” said Vinod Nair, Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
Here are the key stocks to watch on 2 February:
Hero MotoCorp
The world’s largest two-wheeler manufacturer reported total sales of 4,33,598 units in January, up 21.6 per cent over a year-ago period. Domestic sales jumped 20.5 per cent YoY to 4.2 lakh units and exports increased 74.5 per cent to 12,664 units.
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TVS Motor
The company reported a 23 per cent increase in vehicle sales to 339,513 units in January compared to 275,115 units sold in the year-ago period. Sales of two-wheelers jumped 25 per cent from 264,710 units in January 2023 to 329,937 units in January 2024. Domestic sales surged 24 per cent to 268,233 units in January.
Indian Hotels
The company reported a net profit of Rs 476.9 crore, up 18.2 per cent YoY for the December quarter of FY23. Revenue surged 16 per cent to Rs 5,000 crore, led by 21 per cent growth in room revenue. EBITDA grew 22.6 per cent YoY and margins rose to 37.3 per cent.
Mahanagar Gas
The city gas distribution company had acquired a 100 per cent stake in Unison Enviro Pvt Ltd. This is the first-ever strategic acquisition that the company has made. The company has acquired 100 per cent equity shares of Unison Enviro for cash consideration of Rs 562.09 crore, making it a subsidiary of MGL.
Bata India
The footwear brand has recorded a net profit fell 31 per cent YoY to Rs 57.3 crore for the October-December quarter of FY24, impacted by a tepid topline and weak operating numbers. Revenue from operations grew marginally to Rs 903.5 crore for the quarter. Bata’s board members have approved to monetize its freehold industrial land of 11.54 acres in Faridabad.
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