FM proposes three railway corridors, upgrading 40,000 bogies to Vande Bharat standards: Daily Market Update -2 Feb 2024 | Globe Capital Market LTD.
FM proposes three railway corridors, upgrading 40,000 bogies to Vande Bharat standards: Daily Market Update -2 Feb 2024

The government will implement three major economic railway corridor programmes and convert 40,000 normal railway bogies to Vande Bharat standards, Finance Minister Nirmala Sitharaman said on Thursday. Presenting the interim budget for 2024-25, she said that creating the corridors will decongest high-traffic corridors and also improve passenger train operations. While railway corridors will improve efficiency of logistic services and reduce cost, conversion of coaches will increase safety, convenience and comfort of passengers, she said.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled higher by 1%.
  • European equity markets ended lower in range of 0.11% to 0.90%.
  • Asian markets are trading higher.
  • GIFT Nifty is up by 150 points, Nifty futures are likely to open around 21900 levels (as on 8:30AM).


News highlights from across the globe

  • Markets in Japan and Australia rose in early trade on Friday, taking cues from overnight gains from Wall Street, as investors await the U.S. Non-Farm Payroll data due to be published later today.
  • U.S. stocks pared an advance led by big tech as bonds gained, with traders weighing mixed economic data ahead of Friday’s jobs report.
  • Brent crude was trading 2.30% lower at $78.70 a barrel.


Important news updates from the domestic front

  • Rites Q3 Earnings FY24 (Consolidated, YoY) – Revenue up 0.81% at Rs 682.89 crore vs Rs 677.34 crore. Ebitda is down 12.52% at Rs 168.91 crore vs Rs 193.1 crore. Margin down 377 bps at 24.73% vs 28.5% (Bloomberg estimate 23.4%). Net profit down 12.5% at Rs 128.78 crore vs Rs 147.18 crore.
  • Mphasis Q3 Earnings FY24 (Consolidated, QoQ) – Revenue up 1.9% at Rs 3,337.9 crore vs Rs 3,276.5. Ebit is down 1.9% at Rs 497.1 crore vs Rs 506.7 crore. Margin down 57 bps at 14.89% vs 15.46% . Net profit down 4.7% at Rs 373.6 crore vs Rs 391.9 crore.
  • Indian Hotels Q3 Earnings FY24 (Consolidated, YoY) – Revenue up 16.5% at Rs 1,963.8 crore vs Rs 1,685.8 crore. EBITDA is up 22.6% at Rs 732.38 crore vs Rs 597.21 crore. Margin up 186 bps at 37.3% vs 35.4%. Net profit up 18.2% at Rs 476.9 crore vs Rs 403.6 crore.
  • Bata India Q3 Earnings FY24 (Consolidated, YoY) – Revenue up 0.4% at Rs 903.5 crore vs Rs 900.2 crore. Ebitda is down 11.5% at Rs 182.5 crore vs Rs 206.2 crore. Margin down 270 bps at 20.19% vs 22.9%. Net profit down 30.1% at Rs 58 crore vs Rs 83 crore.
  • TVS Motor reported January sales at 3.39 lakh units, up 23% year-on-year, and motorcycle sales at 1.55 lakh units, up 29% year-on-year. The company’s EV sales stood at 16,276 units, up 34% YoY and total exports at 69,343 units, up 22% year-on-year.
  • Hero MotoCorp reported total sales at 4.33 lakh units, up 22% year-on-year, and exports at 12,664 units, up 75% year-on-year for January. The company’s motorcycle sales stood at 4.02 lakh units, up 21% YoY.
  • NMDC reported sales at 4.56 MT up 19% year-on-year and production at 4.54 MT up 8.1% year-on-year for January.
  • Dixon Technologies: Nirupam Sahay resigned from the position of president and chief operating officer with immediate effect.
  • Mahanagar Gas acquired a 100% stake in Unison Enviro for Rs 562 crore.


Nifty Overview & Outlook

The benchmark Nifty index ended on a flat to negative note at 21697 levels, down 28 points from its previous closing values after a lackluster trading session on budget day.

Broader market ended on a mix note as Mid cap index was down 0.67% while Small cap index settled on a positive note , up over 063%, leading to flat market breadth.

Performance on the sectoral front was also mix. Amongst them, Nifty PSU Bank index was at the top of the tally, rose over 3%. On the other hand, Nifty Media, Metal and Realty index led the declines, fell 1% each.

Technically, Nifty index is trading sideways with positive bias in 21250-21800 range for past couple of sessions. Going ahead, we expect it to trade in the similar fashion till it is trading in the above mentioned range.


Derivatives Overview & Outlook

Yesterday, no major changes was seen in all three major F&O indices, while on open interest front, Nifty and Finnifty futures added 1.8% and 3.3% of open interest respectively whereas Banknifty open interest decreased by 1.4%.

On the sectoral front, short buildup was seen in Telecom, Capital Good, Chemicals, Technology and Cement stocks, whereas long buildup was seen in Infrastructure stocks.

On options front, put writing along with call writing was seen at multiple strikes and maximum positions are at 21700 PE and 22000 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1880 Cr in the cash segment, sold stock futures worth Rs 2076 and bought index futures worth Rs 832 Cr. DIIs were net buyers in the cash segment to the tune of Rs 872 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21960-22140; Supports 21570-21400

Banknifty – Resistances 46760-47100; Supports 45920-45400

Finnifty – Resistances 20740-20880; Supports 20410-20260


F&O Securities in Ban Today  – INDIACEM, INDUSTOWER, SAIL, ZEEL.




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