Markets end with a bang in the Budget Week: Special Story – Budget Decoded For You | Weekly Market Update February 2nd

Hello Readers!

This week’s biggest event – “The Budget” is finally behind us. The finance minister announced the interim budget on 1^st February 2024. And if you’re confused by the budget jargon and what it means for you, don’t worry! We break it down in simple terms – girl power, faster trains, a greener future & more! Read on for a breakdown of the budget, in just 3 minutes! But first, take a look at some market updates.

🧾In this Article

Weekly Update
Technical Stock Pick
Key results this week
Quick bites
Stocks in News
Sustainability Corner
Cover story – Budget Decoded

📈 Weekly Update

In the closing week following two weeks of consecutive declines, the benchmark indices wrapped up the Budget week on a positive note, fueled by the upward surge of Reliance Industries, Oil & Gas and IT firms.

In a notable session on Friday, the Nifty 50 achieved a significant milestone, breaching the 22,000 mark for the first time since January 16, accompanied by a noteworthy 2.02% gain in the Sensex. Despite this positive momentum, the Nifty faced challenges in sustaining the crucial 22,000 level, and the Sensex saw a retreat after nearing its all-time high. Ultimately, the Nifty concluded with a gain of 156.35 points or 0.72% at 21,854, while the Sensex closed with a rise of 440.34 points or 0.6% at 72,085.63, marking their biggest weekly gain in two months.

PSU stocks were on fire this week, owing to the budget expectations. In fact, among the BSE sectoral indices, BSEPSU was a clear winner gaining 8.23% this week after BSE Energy, which clocked 8.76% weekly returns.

Among the Nifty stocks, BPCL (17.85%), Power Grid (12.73%), Adani Ports (10.04%), ONGC (9.94%), and Adani Enterprises (9.03%) were the top gainers, while L&T (-5.96%), Titan (-4.15%), ITC (-3.35%), Bajaj Finance (-3.35%) and UPL (-0.74%) were the top losers of the week. Among other stocks, NBCC, Punjab & Sind Bank, KPI Green Energy, Hemisphere Properties India, Infibeam Avenues, IRB Infrastructure Developers and India Tourism Development Corporation added gains of 31-47 percent during the week.

On the global front, despite Alphabet Inc. reporting an earnings downturn amidst a historically narrow stock rally reminiscent of the dot-com bubble, and Federal Reserve Chair Jerome Powell downplaying early hopes for interest-rate cuts, the bull market continued its resilience. This week’s Wall Street narrative featured a regional bank rout, but the market found comfort in reassuring economic data and robust performances from Meta Platforms and Amazon.com. However, the reliability of the traditional buy-and-hold strategy on the Magnificent Seven is now shrouded in uncertainty.

The week, characterized by the 13th gain in 14 weeks for the Nasdaq 100, revealed diverse reactions among stocks with soaring valuations, challenging the longstanding dominance of tech heavyweights. Notably, two of the five tech giants announcing quarterly results this week witnessed fluctuations in their stock prices.

🚀Technical Stock Pick

BUY PERSISTENT SYSTEMS
CMP: 8502; TGT: 8700/8750; SL: 8399

The stock is well-placed above all moving averages on Weekly and Daily Chart. CE OI SHEDS on 8300/8400/8500 strikes. Hence we place a buy rating on stock with a target of 8700-8750 and a stop-loss of 8399.

3QFY2024 results this week:

📈 ITC recorded a 10.75% YoY growth in standalone net profit at ₹5,572 crore for the December quarter, from ₹5,031.01 crore a year earlier driven by other income and lower tax cost.
💹 Bajaj Finance registered a 22% YoY growth in consolidated net profit from 2,973 crore to ₹3,639 crore in the December quarter, despite higher loan losses and provisions.
📉 Vodafone Idea posted a net loss of ₹6,986 crore, for the December quarter, with revenue falling 0.4% sequentially to ₹10,673.1 crore.
🚚 Mahindra Logistics reported a net loss of ₹16.4 crore, compared to the profit of ₹1.67 cr last year with revenue up by 5.1% YoY, from ₹1,329.6 crore to ₹1,397.2 crore.
⛽ Petronet LNG recorded a consolidated net profit of ₹1,213 crore for the December quarter, up 41.7% sequentially, backed by healthy operating numbers.
📊 Marico reported consolidated net profit at ₹386 crore for the December quarter, up nearly 16% from a year ago, despite a lower topline.
📉 Piramal Enterprises posted a consolidated net loss of ₹2,377.6 crore for the December quarter, with revenue from operations falling nearly 12% yoy to ₹2,476 crore.
📈 Bajaj Finserv’s net profit surged by 21.08% YoY to ₹ 2,157.67 cr, with a 34% revenue boost to ₹ 29,038 cr.
📊 Dr. Reddy’s witnessed an 11% YoY rise in net profit, reaching ₹ 1,379 cr, and a 7% increase in revenue to ₹ 7,215 cr.
💹 ITC reported a 6.51% YoY growth in net profit at ₹ 5,400.51 cr, coupled with a 2.43% revenue rise to ₹ 19,484.50 cr; a dividend of ₹ 6.25 was declared.
🔺 NTPC marked a 7.3% YoY uptick in net profit at ₹5,208.87 cr, while revenue saw a 3.9% YoY dip to ₹ 42,820.38 cr.
💼 L&T achieved a 15.5% surge YoY in net profit, reaching ₹2,947.4 cr, and a 19% boost in revenue to ₹ 55,128 cr.
🪙 Titan reported a 9.4% YoY rise in standalone net profit to ₹ 1,040 cr and a 20% YoY increase in revenue from operations to ₹13,052 cr.
💼Adani Enterprises witnessed a 2.3x surge in consolidated net profit at Rs 1888.4 crore for the quarter ended December 2023, compared to Rs 820 crore in the year-ago period, alongside a 6.5% YoY increase in revenue to Rs 28,336.4 crore.
🚢 Adani Ports saw a 6.5% YoY net profit increase from ₹1,336.51 crore to ₹2,208 cr, accompanied by a 44.58% YoY rise in revenue from operations to from ₹4,786.17 crore to ₹ 6,920.10 cr.
🏍️ Hero MotoCorp achieved a 21.6% YoY increase in total sales to 4,33,598 units in January, with domestic sales rising 20.5% YoY to 4.2 lakh units, and exports surging 74.6% YoY to 12,664 units.

🍟 Quick Bites

India’s fiscal deficit at ₹9.82 lakh cr, 55% of the ₹17.87 lakh cr full-year target, compared to 59.8% last year.
🔌 India’s power consumption rose by nearly 6% in Jan 2024, reaching 133.83 Billion Units (BU) compared to Jan 2023.
💵 Forex reserves decrease by $2.8 billion, reaching $616.1 billion.
🏦 RBI declared an overnight VRR auction of ₹. 25,000 crore on Jan 30.
India’s gold imports surged by 26.7%, reaching $35.95 billion during the April-Dec period.
📉 Finance Ministry cuts import duty on mobile phone spare parts to 10%, previously 15%;
💰 Bain Capital intends to earmark $7 billion for investments in India over the next 3 to 5 years.
🚚 Flipkart is set to launch same-day delivery services in 20 metro and non-metro cities, with the program slated to commence in February.

📰 Stocks in News

🛫 Azad Engineering inked a 7-year agreement with Rolls-Royce for the production and supply of airplane engine parts.
🚄 Power Mech secured orders totaling ₹645 crore from Rail Vikas Nigam and Neyveli Uttar Pradesh Power.
✈️ SpiceJet reportedly secured funding exceeding ₹900 crore.
💼 ICICI Lombard to acquire a 1.08% stake worth ₹100 crore in Karnataka Bank.
🛢️ GAIL signs a 10-year deal with ADNOC Gas, acquiring 0.5 million tonnes of LNG annually.
💼 Bharat Electronics bags an ₹845 cr order from the Ministry of Finance.
💉 Bajaj Finserv to acquire 100% equity in Vidal Healthcare for ₹ 325 cr.
💻 TCS seals a 15-year deal with UK-based Aviva.
🚗 BPCL orders 1800 DC fast EV chargers worth ₹120 cr from Servotech.
🚫 RBI imposes restrictions on Paytm Payments Bank, halting deposits and services after Feb 29, 2024;
🌐 Kaynes Technology acquires California-based Digicom Electronics; 💼 Coromandel International to invest ₹1,029 cr for new acid plants in Andhra Pradesh;
🖥️ Infosys secures a 7-year IT automation contract from Ireland’s Musgrave.
💰 Havells India approved a $20 million investment in Havels International Inc to explore new growth opportunities in the US.

🌱 Sustainability Corner

💰 In Budget 2024, Finance Minister Nirmala Sitharaman pledges government support to expand and fortify the electric vehicle ecosystem through manufacturing and charging infrastructure.
🌿 Adani Green Energy secures $750 million bond redemption funds through a mix of promoter share allotment, joint venture with TotalEnergies SE, and financial reserves.
☀️ SJVN clinched a 100 MW solar power project valued at ₹ 550 crore through an eReverse Auction conducted by Gujarat Urja Vikas Nigam.
🏗️ L&T secures a contract for a solar power plant in Dubai.
💨 Suzlon awarded a 642-MW wind power project by ABC Cleantech.
🚗 Tata Motors’ well-capitalized EV venture, under Group CFO PB Balaji, anticipates profitable growth fueled by declining battery prices and FY2025 PLI incentives.
🌐 India, with 3.4 million EVs and a 49% sales growth in CY2023, emerges as one of the world’s fastest-growing EV markets; discover leading states/zones in electric 2W, 3W, passenger vehicle, and bus segments.
🌍 Minister of Commerce & Industry Piyush Goyal envisions India becoming the world’s largest EV market by 2030, as electric vehicle adoption accelerates, announced at Bharat Mobility Show 2024.
🏍️ TVS Motor Co, emphasizing R&D and Made-in-India vehicle exports, presents cutting-edge products and sustainable mobility technologies at Bharat Mobility Global Expo, visited by Prime Minister Narendra Modi.
📈 Tata Motors starts 2024 strongly, achieving record monthly sales of 53,633 passenger vehicles and 6,979 EVs in January; aims for total sales surpassing half-a-million PVs, including 75,000 EVs in FY24.
🚗 Maruti Suzuki India showcases the Wagon R Flex Fuel, running on E20-E85 fuel, and the eVX concept previewing the future Maruti EV SUV at Bharat Mobility Global Expo 2024 in New Delhi.
⚡ Ather Energy, the smart e2W manufacturer, having sold over 81,500 EVs from April 2023 to January 31, 2024, chooses Siemens Xcelerator software to streamline design, enhance product quality, and expedite new product launches.

Cover Story
Budget Breakdown: Your Money, Explained!

This year’s budget, though an interim one, is said to have something for everyone. So, buckle up for a quick and clear breakdown of what this interim budget means for you and your family.

Let’s face it, budgets can be as exciting as watching paint dry. But hold on, because this year’s interim budget has some juicy tidbits that might just perk up your ears! Think of it as a movie trailer, giving us a sneak peek at the government’s plans for the future.

Now, this isn’t your typical budget. It’s an “interim” one, setting the stage for what’s to come. But don’t underestimate its significance! Experts are calling it a budget for everyone, focusing on stable finances while investing in important areas. Think of it as a new kind of GDP: one that prioritizes good governance, development, and getting things done.

Entrepreneurs, rejoice! Mudra loans, the lifeline for small businesses, are getting a massive ₹43 crore rupee boost, with 30 crores specifically earmarked for women entrepreneurs. Girl power, indeed! And speaking of empowerment, 70% of new houses in rural areas will be allocated to women, making homeownership a reality for more families. Finally, tax benefits await startups and specific investments.

Health is wealth, and the government knows it: We’re getting more medical colleges to improve accessibility, and medical reforms are on the horizon, promising better healthcare services for all.

Hope for your travelling woes to get over: No tax changes this time, but tired of those bumpy roads? Worry not! Infrastructure spending is getting a whopping 11.1% hike, meaning smoother rides, faster trains (thanks to the Vande Bharat upgrade for 40,000 bogies!), and better airports for all. The government is also offering long-term finance to states to boost tourism, particularly religious tourism and international partnerships.

Encouraging seamless connectivity: The aviation sector is taking flight with 517 new routes and improved airport facilities. Plus, you can expect to see more metros and Namo Bharat projects connecting cities across the country. And for a greener future, the expansion of the EV ecosystem is being encouraged, including in public transport.

Good news for farmers: Agriculture is getting a major push with reforms in animal husbandry, fisheries, and dairy farming. And for those passionate about the environment, rooftop solarization schemes and more electric vehicles are paving the way for a sustainable future.

There’s more! The government is setting up a massive fund for cutting-edge technologies in defense and other crucial sectors. And let’s not forget about our homes! Single women looking to build their own place will have access to special schemes.

Additionally, foreign investment is getting a boost through new treaties and housing for Middle Class scheme is on the horizon as the government plans to take up 2 crore homes over the next five years to meet the rising housing demand.

So, what does this all mean for you?

Hopefully, it means smoother roads, better connections, and a little more support for you and your family. This is just the beginning, but it shows the government is listening and investing in things that matter.

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