Market Outlook: February 03’ 2025

Union Budget 2025: A Boon for the Middle Class


The latest budget aims to boost domestic demand through targeted reforms while ensuring fiscal discipline and inclusive growth. Key beneficiaries include sectors such as FMCG, Auto, Consumption, Tourism, and Agriculture.


On the global front, US futures are seeing sharp declines amid rising fears of a global trade war following Trump’s announcement of new tariffs on major trading partners. In response, the US Dollar Index surged close to the 110 mark. Asian markets, including GIFT Nifty, signal a weak start, reflecting broader global uncertainties. Given the negative global cues, we advise traders to focus on domestic consumption-driven stocks.


Market Outlook February 03’ 2025

Market Outlook & Actionable Moves


Stocks to Buy: Maruti, Bajaj Finance, Tata Consumer, Exide Industries


Global Markets

DOW: -337

GIFT NIFTY: -185 (Previous close: 23,567)

NIFTY 50: 23,482

SENSEX: 77,505


Institutional Flows

FII: -1,327 Cr

DII: +824 Cr


BSE Market Breadth

Advances: 2,030

Declines: 1,884


Currency & Commodities

Dollar: $86.61

Dollar Index: 109.73

Gold: $2,779 per ounce

Crude Oil: $76.04 per barrel


Bonds

10-Year US Bond Yield: 4.52%

10-Year Indian Bond Yield: 6.74%


Derivatives Market

Put-Call Ratio (PCR): 0.76

India VIX: 14.09

Options Data:

Max Call OI: 24,000 & 24,500 strikes

Max Put OI: 23,000 & 23,200 strikes

Trading Range: 23,000 - 24,000

Immediate Range: 23,200 - 23,800

Securities in Ban: None


Corporate Announcements & Results


Earnings Announcements Today:

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.


Earnings Performance:

Above Estimates: Anant Raj, Ganesha Ecosphere, Kore Digital

In Line with Estimates: Aarti Industries, Vinati Organics, Neogen Chemicals, G R Infraprojects


Key Market Updates

Lupin: The company successfully closed a USFDA inspection at its Somerset facility with zero observations.

Liquor Stocks: The Rajasthan government has introduced a new excise policy, easing licensing norms for hotel bars. Hotels now need only 10 rooms (down from 20) to obtain a bar license, and the application process has been simplified with automatic approvals.

Happiest Minds: The company has entered a share purchase agreement to acquire a 100% stake in Gavs Technologies Ltd.’s Middle East business, involving entities in Dubai, Oman, and Saudi Arabia, for $1.7 million. The deal is expected to close by March 15, 2025.


Given the current market scenario, a cautious approach is advised, with a preference for domestic consumption-focused stocks over global exposure.


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