Closing Bell: Market zooms as Trump hits tariff pause, Nifty above 23,700, Sensex up 1,397 pts

Indian equity indices ended on strong note with Nifty above 23,700 on February 4. At close, the Sensex was up 1,397.07 points or 1.81 percent at 78,583.81, and the Nifty was up 378.20 points or 1.62 percent at 23,739.25.

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.

Today, the benchmark indices witnessed a sharp bounce back, with the Nifty ends 378 points higher and the Sensex up by 1397 points. Among sectors, almost all major sectoral indices traded in positive territory, with the Oil and Gas and PSU Banks indices outperforming, gaining over 2 percent. Technically, after a gap-up opening, the market successfully cleared the 23,500/77800-resistance zone, and post-breakout, the positive momentum intensified. Additionally, a bullish candle on the daily charts and an uptrend continuation formation on the intraday charts indicate further upward movement from the current levels.

We believe that the current market texture is bullish, and "buy on intraday dips and sell on rallies" would be the ideal strategy for day traders. For traders now, 23,600/78100 and 23,500/77800 would be the key support zones, while 23,800/78700-23,850/78900 could act as key resistance areas for the bulls.

The market extended its recovery trend, climbing nearly 1.5% amid positive cues. A strong start, driven by a rebound in global markets, gained further traction as renewed buying in select heavyweight stocks sustained the upbeat sentiment throughout the session. All major sectors contributed to the rally, with energy, banking, and metals leading the gains. Meanwhile, broader indices also saw solid traction, rising between 1.08% and 1.6%.

The index rebound signals a determined effort by bulls to reclaim lost ground, with a decisive break above the critical resistance at the 200 DEMA i.e. 23,620 in Nifty potentially strengthening their position further. The next target range stands at 23,900–24,200. Notably, the banking and financial sectors have played a key role in the recovery, and a decisive move past the 50,200 level in the banking index will be crucial for sustaining the momentum.

Given the prevailing market conditions, we maintain our focus on selective stock picking, emphasizing relative strength, with a preference for large-cap and large mid-cap stocks.

The Nifty has moved up following a falling wedge pattern retest, indicating the possibility of a decent rally in the short term. Additionally, the index has been sustaining above the critical 21EMA on the daily timeframe. The RSI is in a bullish crossover and rising after forming a base on the daily timeframe, indicating strong momentum.

In the short term, the index may move toward 24,050 and higher, while support levels are placed at 23,500 and 23,250.

Yesterday, the Indian market struggled to absorb the optimism generated by the good union budget due to heightened geopolitical risks stemming from ‘Trump tariff war’. However, India could outperform in a weak global market, and as a rebound has been triggered in the global sentiment, it has fuelled a sharp surge in domestic equities. While overall market sentiment remains positive, large-cap stocks are the preferred choice. Meanwhile, banking stocks are rallying in anticipation of a rate cut in this week's RBI policy, new governor's first meet.

Following strong global trends, Nifty50 opened with a positive start and continued to rise throughout the day, closing at its highest point of the day at 23,739.25 with gains of 378.20 points. All sectors, except FMCG, ended with gains, with PSU Banks and Energy leading the way. The positive momentum was witnessed in the Broader markets also as Mid and Smallcaps surged by 1.56% & 1.09% respectively.

The Index formed a strong bullish pattern, breaking above the key level of 23,500, which will now serve as a support. The momentum looks set to continue, but it may face resistance at the 24,000 mark.

Indian rupee ended 12 paise higher at 87.07 per dollar on Tuesday versus Monday's close of 87.19.

Indian equity indices ended on strong note with Nifty above 23,700 on February 4.

At close, the Sensex was up 1,397.07 points or 1.81 percent at 78,583.81, and the Nifty was up 378.20 points or 1.62 percent at 23,739.25. About 2426 shares advanced, 1349 shares declined, and 144 shares unchanged.

On the sectoral front, except FMCG, all other sectoral indices ended in the green with Nifty PSU Bank, Infra, Energy and Oil & Gas up 2 percent each.

Nifty Midcap index added 1.6 percent and Smallcap index rose 1 percent.

Shriram Finance, L&T, Adani Ports, Bharat Electronics, IndusInd Bank were among the biggest gainers on the Nifty, while losers were Trent, Britannia Industries, Hero MotoCorp, Nestle India and Eicher Motors.

Research house continue to believe that the ABG ecosystem provides a strong growth opportunity to ABCAP. For NBFC, share of direct sourcing is rising with strong momentum in acceptability of Udyog Plus B2B (2.2mn+ registrations; INR33bn+ portfolio) and synergies with the ‘ABCD’ app (24+ products, 4.1mn+ customers).

Udyog Plus contributes 25% to unsecured business loans with 50% sourcing from ABG ecosystem, offsetting the conscious decline from digital partners.

#1 Q3 profit was 4 percent ahead of estimates as slight NII miss was offset by lower provision

#2 AUM growth was muted as state specific issues affected disbursements

#3 NIM was stable QoQ, but may see some pressure with a lag if rates are cut

#4 Asset quality was stable

#5 See muted EPS CAGR & 13-14 percent RoE over FY25-27

#6 At 0.8x FY26 BV, valuations seems reasonable

#1 Operational performance in-line; guidance intact

#2 EBITDA in-line; profit missed due to lower-than-expected other income

#3 Company guides for revenue CAGR of 20 percent in next 3 years, driven by new as well as existing products

Indian Rupee recovered from all-time lows as the US Dollar index pulled back and positive tone in the domestic markets. US dollar eased as Trump administration paused tariffs on Mexico and Canada. However, China, in a retaliatory move imposed import duty on US products.

We expect Rupee to trade with negative bias over uncertainty over US trade tariffs. Escalation of the tariff war by China may dent global risk sentiments wherein the US Dollar may strengthen and investors would look out for safe haven. However, any central bank intervention may support the Rupee. Traders may take cues from JOLTS job openings and factors orders data from the US. Investors may remain cautious ahead of the RBI’s monetary policy meeting this week. USDINR spot price is expected to trade in a range of Rs 86.90 to Rs 87.40.

M.E Energy Pvt Ltd, the wholly owned subsidiary of Kilburn has bagged orders aggregating Rs 6986 Lacs during the year till date.

On a consolidated basis, the Company has received Orders/LOIs amounting to Rs. 45994 lakhs, during the year till date ( in the ordinary course of business ).

#1 Q3 operationally in-line with estimate; higher tax and one-offs hit its reported profit

#2 Outlook on hospitals business remains robust on beds-addition plan & continued focus on efficiency

#3 Sustained pick-up in operating margin remains key catalyst

#1 Q3 EBITDA came above estimate helped by a beat in oil & gas sales volumes

#2 Profit missed forecast by 11 percent due to higher recouped costs

#3 Management highlighted they are on track to deliver on production growth guidance for new field

#4 Benefits from rising share of new well gas in output should begin bearing fruit over next few years

#5 Production enhancement contract with bp should begin bearing fruit over next few years

#6 Cut our FY25 EPS by 5 percent

The company has secured an order valuing around Rs 38 crores (USD 44,77,000/-) from Tecnología en Redes y Telecomunicaciones Edelweiss SA DE CV - Mexico.

#1 Company continues to lose market share & is facing pricing challenges

#2 Lower credit cost offsets earning pressure

#3 Upgrade EPS estimate on better asset quality outlook

#4 Current valuations have corrected materially

Nuvama Wealth Management share price gained most in 10 months

#1 Another disappointing quarter with weak revenue growth in base business

#2 Company saw further drag from acquired Cenexi business

#3 Company expects base business to recover but Cenexi breakeven timelines have been pushed out by a year

#4 Execution remains weak and stock lacks near term catalysts

#5 Lower FY25-27 EPS by 1-4 percent, building a slower Cenexi recovery

#1 Net profit at Rs 455.5 crore vs Rs 64.5 crore, YoY

#2 Revenue up 2.4 percent at Rs 402.5 crore vs Rs 391.9 crore, YoY

#1 Net profit up 24 percent at Rs 19.1 crore vs Rs 15.4 crore, YoY

#2 Revenue up 23.2 percent at Rs 165.9 crore vs Rs 134.7 crore, YoY

#1 Q3 revenue was in-line while EBITDA came in ahead on better product mix

#2 Custom synthesis continued to lead growth, while Gx also rebounded in Q3

#3 Gx pricing remains under pressure, which was offset by higher volume in the quarter

#4 Company confident on GLP-1 but needs to overcome high product concentration of Sacubitril Valsartan in FY27

#1 Net profit up 22.3 percent at Rs 32.9 crore vs Rs 26.9 crore, YoY

#2 Revenue up 12 percent at Rs 821 crore vs Rs 732.5 crore, YoY

Asian Paints, Titan, Tata Power, Thermax, Apollo Micro Systems, Ajmera Realty, Dhanlaxmi Bank, Everest Industries, Bajaj Electricals, Godrej Properties, GPT Infra, Infibeam Avenues, JK Tyres, JB Chemicals, Lemon Tree Hotels, Metropolis Healthcare, Mishra Dhatu Nigam, One Mobikwik Systems, OnMobile Global, Paisalo Digital, PC Jeweller, Whirlpool Of India, Quick Heal Technologies, Torrent Power, V-Mart Retail,

#1 Net profit down 40.8 percent at Rs 16.1 crore vs Rs 27.2 crore, YoY

#2 Revenue up 22.2 percent at Rs 324.4 crore vs Rs 265.4 crore, YoY

#1 Revenue up 12.6 percent at Rs 414.8 crore vs Rs 369.2 crore, YoY

#2 EBITDA at Rs 15.9 crore vs loss of Rs 24.2 crore, YoY

#1 Net loss of Rs 3 crore vs profit of Rs 19 crore, YoY

#2 Revenue up 27.6 percent at Rs 275.6 crore vs Rs 216 crore, YoY

The company reported an 11 percent YoY increase in net profit, reaching Rs 98 crore. Revenue grew by 38 percent YoY to Rs 1,271 crore.

Gland Pharma’s net profit increased by 7 percent YoY to Rs 205 crore. However, revenue from operations declined by 10 percent to Rs 1,384 crore.

HFCL’s net profit declined by 12 percent YoY to Rs 72.58 crore, while revenue from operations fell by 2 percent to Rs 1,012 crore.

#1 Company to acquire 25 percent stake in a Brazil-based Embedded Finance startup for USD 1 million

#2 See acquisition of Brazil-based Embedded Finance Startup as a negative development

#3 Acquisition development is negative for a business that is yet to turn profitable in its home market

#4 Idea of going after newer shinier markets would question assumption

#5 Company’s ability to stay focused is attractive but this is increasingly competitive market