Mkt experiences volatility, Nifty hits record high

The domestic stock market witnessed a roller coaster session as both the Sensex and the Nifty closed with modest gains but faced significant declines from their peak values. The fluctuations were primarily attributed to profit-booking by traders. Despite the dips, there remains optimism for potential uptrend in the markets as uncertainties surrounding the interim budget and the US Fed`s rate meeting dissipate.

The market`s performance was influenced by several key factors, including the reduced fiscal deficit target of 5.1% for FY25 and the government`s lower borrowing plan, which were presented on the budget day. These measures by the government highlighted confidence and control over the economy, thereby contributing to positive investor sentiment.

The barometer index, the S&P BSE Sensex gained 440.33 points or 0.61% to 72,085.63. The Nifty 50 index added 156.35 points or 0.72% to 21,853.80.

The Sensex experienced a notable drop of 1,004 points from its peak of 73,089, while the Nifty decreased by 273 points after hitting an all-time high of 22,126 earlier in the day. Additionally, profit-booking activities were evident in the Bank Nifty index, which declined by 922 points from its daily high of 46,892, shifting into negative territory. Sectorally, oil & gas, metal and IT shares were in demand. On the other hand, banks and financial shares lagged.

In the broader market, the S&P BSE Mid-Cap index advanced 0.80% and the S&P BSE Small-Cap index rose 0.49%.

The market breadth was positive. On the BSE, 1998 shares rose and 1845 shares fell. A total of 100 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, rose 1.67% to 14.70.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper dropped 0.20% to 7.050 as compared with the previous close of 7.064.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.9100, compared with its close of 82.9800 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement declined 0.73% to Rs 63,200.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, shed 0.10% to 102.95.

The United States 10-year bond yield gained 0.57% to 3.882.

In the commodities market, Brent crude for March 2024 settlement shed 67 cents or 0.85% to $79.37 a barrel.

Global Markets:

European stocks advanced while Asian stocks ended mixed on Friday, mirroring Wall Street�s rebound from the sell-off earlier this week after US Fed Chairman Jerome Powell indicated the U.S. Federal Reserve was unlikely to cut rates in March.

US stocks rebounded on Thursday as investors looked to a spate of high-profile earnings and the Friday`s employment report.

Stocks in Spotlight:

Index heavyweight Reliance Industries rose 2.18% to Rs 2914.75. It hit a record high of Rs 2949 today.

Adani Ports and Special Economic Zone (APSEZ) rallied 3.51% to Rs 1261.75 a foreign broker raised its target price to Rs 1,428 per share vs Rs 940 earlier.

Indian Hotels Company rose 1.15% after the company`s consolidated net profit increased 18% to Rs 452 crore on 15% rise in revenue to Rs 2,004 crore in Q3 FY24 over Q3 FY23.

Engineers India jumped 10.41% after the company reported a consolidated net profit of Rs 63.35 crore in Q3 FY24 as against Rs 16.12 crore posted in Q3 FY23. Revenue from operation stood at Rs 867.64 crore in the December quarter, up 3.02% from Rs 842.18 crore recorded in Q3 FY23.

NMDC jumped 4.50% after the state-owned miner`s iron ore production grew by 8.1% to 4.54 million tonnes (MT) in January 2024 as against 4.20 MT in January 2023.

Abbott India surged 8.29% after the company`s net profit increased 26% to Rs 310.98 crore in Q3 FY24 as compared with Rs 246.83 crore in Q3 FY23. Revenue from operations was at Rs 1,437.14 crore in Q3 FY24, up 8.69% from Rs 1,322.19 crore reported in the same quarter previous year.

TVS Motor Company gained 2.38% after the 2-wheeler maker reported monthly sales of 339,513 units in January 2024, registering a growth of 23% as against 275,115 units sold in January 2023.

Hero MotoCorp added 2.81% after the company announced that it had sold 433,598 two-wheeler units in January 2024, which is higher by 22% as compared with the same period last year.

Eicher Motors fell 2.75%. The auto maker�s total motorcycles (Royal Enfield) sales rose 2% to 76,187 units in January 2024 as against 74,746 units sold in January 2023.

Separately, Eicher Motors announced that its unlisted subsidiary VE Commercial Vehicles (VECV) had reported 1.6% decrease in commercial vehicles (CV) sales to 7,066 units in January 2024 from 7,181 units in January 2023.

One 97 Communications (PayTM) was locked in lower circuit of 20%, extending losses for third day in a row. The counter came under significant selling pressure this week after India�s banking sector regulator asked the company�s payment bank to halt its business.

The Reserve Bank of India (RBI) on Wednesday ordered Paytm Payments Bank to stop accepting deposits or top-ups in any customer accounts, wallets, FASTags and other prepaid instruments after 29 February 2024.

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