Closing Bell: Nifty at 23,350, Sensex down 319 pts; Consumer Durables, IT buck the trend

Indian equity indices ended lower on February 3 with Nifty around 23,350. At close, the Sensex was down 319.22 points or 0.41 percent at 77,186.74, and the Nifty was down 121.10 points or 0.52 percent at 23,361.05.

We wrap up today's edition of the Moneycontrol live market blog, and will be back tomorrow morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices for all the global market action.

The Nifty remained volatile before closing on a negative note. On the daily chart, the index managed to close above the critical 21EMA; however, sentiment appears fragile, and support may be broken in the near term. On the lower end, support is placed at 23,200/23,100, while on the higher end, resistance is placed at 23,400.

Nifty opened gap down and thereafter consolidated during the day to close down ~121 points. On the daily charts we can observe that the Nifty is in the process of retracing the rise it has witnessed from 22786 – 22632. The crucial support zone comes in at 23250 – 23209 which coincides with the 20-day average and the 50% Fibonacci retracement level. We expect the index hold on to this support zone and resume its upmove towards 23820 – 24000 from short term perspective. On the upside, the immediate hurdle is placed at 23560 – 23630 where resistance in the form of the 40-day average and the previous swing high is placed.

After showing high volatility on the day of special Union Budget session on Saturday, Nifty slipped into weakness amidst range movement on Monday and closed the day lower by 121 points. After opening with a downside gap of 162 points, the market shifted into a minor upside recovery with range bound action in the mid to later part of the session. The opening downside gap remains partially filled.

A small green candle was formed on the daily chart with long lower shadow. Technically, this market action could mean weakness in the market with range bound action, which is also signaling absence of sharp downside momentum from the swing highs.

Previous bearish pattern like lower tops and bottoms is in the process of reversal. After surpassing above the last lower top at 23426 levels recently, Nifty is presently in the process of new higher bottom formation in the short term. This is a good sign.

The near-term uptrend of Nifty remains intact. The present weakness could end up soon at the lows and another round of upside bounce is likely to resume from the higher lows. However, a decisive upside breakout of 23500-23600 levels could open more upside ahead. Immediate support is placed at 23200 levels.

Today, the benchmark indices witnessed profit booking, with the Nifty ends 121 points lower and the Sensex down by 319 points. Among sectors, the Defence index lost the most, shedding over 5 percent, while selective financial and IT stocks registered buying interest at lower levels.

Technically, in the backdrop of weak global sentiment, our market opened with a gap down but found support near the 20-day SMA (Simple Moving Average) and reversed.

We believe that the current market texture is volatile and non-directional; hence, level-based trading would be the ideal strategy.

For day traders, the 20-day SMA, along with support levels of 23,270/77,000 and 23,220/76,800, would act as key support zones, while resistance areas for the bulls are around 23,500/77,500 and 23,550/77,800. However, if the market dips below 23,220/76,800, it may retest the levels of 23,100/76,500.

The Indian stock market faced some heat today, due to the borrowed pessimism cues (tariff-related trade war). After a slow start, the markets recovered but however ended with a loss of 121.10 points at 23,361.05. NBFC, IT, and some Auto stocks performed well, while the Energy sector took a big hit. The Metal sector dropped more than 1.5%, making it one of the weakest performers. The disparity was seen in the Broader Markets where significant recovery was seen in the Midcaps while Smallcaps ended at the lows. On the positive side, the market held support of 21DMA i.e. 23,280, which suggests that there’s still potential for a rebound. If the recovery continues, the market could rise to around 23,550.

Slump in global equity markets weighed negatively on Indian benchmarks after Trump announced tariffs on China, Mexico and Canada which fuelled pessimism amongst the investors. The strong bearish undercurrent triggered massive selling in mid and small-cap stocks and the consumption-related FMCG and automobile stocks, as any let up in tariff war could trigger panic selling. Besides, rupee depreciating sharply and breaching above 87k mark against the dollar raised concerns that foreign investors are unlikely to reverse the selling trend.

Indian rupee ended 58 paise lower at fresh record low at 87.19 per dollar on Monday versus Friday's close of 86.61.

Indian equity indices ended lower on February 3 with Nifty around 23,350.

At close, the Sensex was down 319.22 points or 0.41 percent at 77,186.74, and the Nifty was down 121.10 points or 0.52 percent at 23,361.05. About 1102 shares advanced, 2742 shares declined, and 163 shares unchanged.

Biggest Nifty losers were L&T, ONGC, Bharat Electronics, Tata Consumers and Coal India, while gainers included Bajaj Finance, M&M, Wipro, Shriram Finance, Bajaj Finserv.

BSE Midcap index down nearly 1 percent and smallcap index fell 1.7 percent.

On the sectoral front, except Consumer Durables (up 0.5 percent) and IT (up 0.7 percent), all other sectoral indices ended lower with capital goods index down 4 percent, energy, metal, oil & gas, power, PSU indices down 2-3 percent.

#1 Airports eco regulatory authority data’s suggested average aero tariff is lower than estimate for FY26-FY29

#2 Lower average aero tariff is neg vs estimates

#3 Development removes uncertainty around quantum

#4 Estimate FY24-FY27 EBITDA CAGR of 25 percent Vs 30 percent+ earlier

#1 Well poised to navigate the credit cycle

#2 AUM growth moderates to 25 percent YoY, driven by soft disbursement trends

#3 Asset quality deteriorates; credit costs remain stable QoQ: gross NPA/Net NPA inched

#4 Reported margin contracted QoQ; healthy cost ratios

#1 Budget allays one of usual concerns of tobacco tax hikes

#2 Company is well placed for sustainable growth with strong business fundamentals

Indian rupee is trading 50 paise lower at 87.11 per dollar on Monday versus Friday's close of 86.61.

#1 Net profit Rs708 crore, down 4% YoY

#2 Revenue Rs 9380 crore, up 10% YoY

#3 Total costs Rs 8440 cr, up 11% YoY

#1 Net profit at Rs 349 crore, up 16% YoY

#2 Revenue Rs 1650 cr, up 22% YoY

#3 Total costs Rs1200 crore, up 25% YoY

#1 Net profit at Rs 161 crore, up 1.9% YoY

#2 Revenue up 0.5% YoY to Rs 1910 crore

#3 Total costs Rs 1720 crore, up 1.2% YoY

#4 Dividend Rs2 per share

The United States Food and Drug Administration (US FDA) has completed a pre-approval inspection (PAI) of Edaravone oral suspension at its manufacturing facility in Somerset, New Jersey, with zero 483 observations. The inspection took place from January 28 to February 1, 2025.

#1 Total sales grows 2.1% to 4,42,873 units Vs 4,33,598 units, YoY

#2 Domestic sales decline 2% to 4,12,378 units Vs 4,20,934 units, YoY

#3 Exports grow 140.8% to 30,495 units Vs 12,664 units, YoY

Elara Global Research has revised its rating on Marico to 'Accumulate' from 'buy', with target at Rs 752

Agneyastra Innovations, a subsidiary company of Swan Energy Limited has received a Purchase Order / Letter of Acceptance from Agneyastra Technion Private Limited amounting to Rs.111 crore for Supply Installation and Commissioning of AI based Comprehensive Infra-secure items.

The Sensex was down 386.33 points or 0.50 percent at 77,119.63, and the Nifty was down 163.75 points or 0.70 percent at 23,318.40. About 947 shares advanced, 2574 shares declined, and 140 shares unchanged.

Hindustan Unilever share price snapped three day gaining streak

Power Grid Corporation of India, Divis Laboratories, Alembic Pharmaceuticals, Aditya Birla Capital, Barbeque-Nation Hospitality, Bombay Dyeing, Castrol India, DOMS Industries, Dredging Corporation of India, Gateway Distriparks, General Insurance Corporation of India, Gland Pharma, Garden Reach Shipbuilders & Engineers, HFCL, Jyoti Structures, KEC International, KPR Mill, NLC India, Paradeep Phosphates, Poly Medicure, Premier Energies, Shalby, Shankara Building Products, Stove Kraft, Tata Chemicals, Vishnu Prakash R Punglia, and Welspun Enterprises will announce their quarterly earnings on February 3.

#1 To achieve guidance on back of recovery in global macro demand & focus on operational efficiency

#2 UPL should also be able to bring down its overall debt levels in FY25

The share price extended the gain on third consecutive session.

#1 Company comes out as a winner, with government leaving tobacco taxes unchanged

#2 GST rates are also likely to stay stable until Mar’26 until centre settles state dues

#3 In context of somewhat tough demand conditions, stable taxation improves earning visibility

#4 Personal tax rate cuts/benefits will help consumption in general & company may be a natural beneficiary

Paytm Cloud Technologies board at their meeting held on February 03, 2025 has approved an investment of USD 1 million (equivalent to Rs 8.70 crore) in Seven Technology LLC incorporated in Delaware for acquisition of 25% stake and execution of transaction documents in this regard.

The Asset Liability Management Committee of the bank has increased the marginal cost of funds-based lending rate (MCLR) by 5 bps in the 1-month, 3-month, 6-month, and 1-year tenures, effective February 3.

Coal production decreased by 0.8% to 77.8 million tonnes in January, compared to 78.4 million tonnes in the same month last year. Offtake increased by 2.2% to 68.6 million tonnes, compared to 67.1 million tonnes in the same period.

Trading volumes was 112672 shares, triple of 20-day average of 39290 shares. The share price gained 18 percent is last five days.

The Sensex was down 537.44 points or 0.69 percent at 76,968.52, and the Nifty was down 199.85 points or 0.85 percent at 23,282.30. About 983 shares advanced, 2480 shares declined, and 143 shares unchanged.

The company has increased the price of all ferro grades of ore with manganese content of Mn-44% and above by 3.5%. Prices of all other ferro grades of ore with manganese content below Mn-44% have been increased by 8.2%, effective February 1.

Additionally, prices of all SMGR (Mn-30%, Mn-25%, and Mn-20%) and fines grades have risen by 8.2%, and prices of all Chemical grades have also been raised by 8.2%. Meanwhile, the company recorded manganese ore production of 1.6 lakh tonnes, while sales grew by 17% YoY to 1.57 lakh tonnes. Exploratory core drilling increased by 10% YoY to 11,099 meters.

Trump and tariffs have taken center stage. The latest announcement from the White House has affected global markets. Tariffs on imports from Mexico, Canada, and Chinese goods have pushed the Dollar Index to nearly a one-month high. The Dollar index touched a level of 109.50, which resulted in the Rupee dropping to a fresh low. The rise in Dollar and FII outflows has affected INR negatively.

What is surprising is the INR is depreciating against the USD despite the market interventions by the RBI.

Concerns about a slowing Indian economy and the overvaluation of the rupee led to further depreciation. At a macro level, we expect the rupee to depreciate further to 88-90/$. The US's new tariff announcements are likely to put further pressure on the rupee. Clarity on the US trade tariff policy, DXY movement, recovery in domestic consumption, and growth rate will guide the rupee in 2025.

#1 Royal Enfield total sales grow 20% to 91,132 units Vs 76,187 units, YoY

#2 Exports sales surge 79% to 10,080 units Vs 5,631 units, YoY

#1 Profit tanks 62.9 percent to Rs 46 crore Vs Rs 124 crore, YoY

#2 Revenue grows 6.2 percent to Rs 1,840 crore Vs Rs 1,732 crore, YoY

DEV Information Technology has announced securing of two significant cybersecurity orders from an existing USA-based enterprise client. These contracts will contribute an annual revenue of USD 250,000 (~RS 2 crore) to the company.

The company tied-up for DCR cell based Solar Module for FY 2025-26. The company has an existing partnership with Mundra Solar PV Limited (Adani) and Premier Energies Ltd. for the supply of DCR cell based Solar Module.