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On February 1, 2024, the Nifty 50 and Sensex closed in the red after Union Finance Minister Nirmala Sitharaman presented the Interim Budget 2024 for the next fiscal year (FY25).
The Nifty 50 fell to an intraday low of 21,658.75, concluding 28 points (0.13%) lower at 21,697.45.
The Sensex hit an intraday low of 71,574.89, ending 107 points (0.15%) lower at 71,645.30.
Weak global cues, influenced by sharp losses on Wall Street and cautious anticipation of the Bank of England interest rate decision, further impacted market sentiment.
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Impact on the stock market
The Nifty PSU Bank index surged by 3.11% following the Finance Minister’s announcement of increased government capital expenditure in the budget speech. Nifty Auto rose by 0.53%, Nifty Bank index ended 0.42% higher, and Nifty Private Bank rose 0.12%. However, Nifty Media and Metal indices each declined over 1%.
| Sector/Index | Performance |
| Information Technology | -0.28% |
| Healthcare | -0.44% |
| Oil & Gas | -0.01% |
| Realty | -0.94% |
| PSU Banks | +3.11% |
Top gainers today
| Company | Price | Change (%age) |
| Maruti Suzuki | 10,637.95 | +4.43% |
| Cipla | 1,387.65 | +2.71% |
| Power Grid Corp | 265.80 | +2.51% |
| Eicher Motors | 3,933.20 | +2.44% |
| SBI Life Insurance | 1,432.75 | +2.26% |
Top losers today
| Company | Price | Change (%age) |
| UltraTech Cement | 9,922.30 | -2.41% |
| Larsen&Toubro | 3,398.00 | -2.35% |
| Grasim | 2,128.60 | -2.13% |
| Dr Reddys Labs | 5,993.15 | -2.09% |
| JSW Steel | 801.70 | -2.07% |
Market aftermath: Impact on stocks
Paytm shares drop 20%
Paytm’s shares plummeted 20% on February 1, resulting in a ₹ 585-crore loss for mutual funds, insurance, and provident funds, following the RBI’s strict restrictions on the company’s lending business.
As of December 2023, mutual funds held a 5% stake in Paytm, with Mirae having the highest at 2.51%. Foreign investors, holding 63.7% stake, lost around ₹ 6,150 crore. Paytm’s stock decline was prompted by RBI’s limitations, impacting Paytm Payments Bank with a potential worst-case annual EBITDA impact of ₹ 500 crore.
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Adani Enterprises reports a 2X jump in Q3 net profit
Adani Enterprises posted an impressive Q3 FY24 performance, with consolidated net profit surging 2.3x to ₹ 1888.4 crore, compared to ₹ 820 crores in the previous year. Revenue from operations increased 6.5% YoY to ₹ 28,336.4 crore.
EBITDA nearly doubled to ₹ 3,227.7 crore, resulting in improved margins of 11.4%, up from 6.1% in the same quarter last fiscal. Adani Enterprises’ incubating businesses, including green hydrogen, airports, and roads, contributed 45% to overall EBITDA.
Jubilant Foodworks slips 3%
Jubilant FoodWorks shares fell 3% on February 1 after Motilal Oswal downgraded the stock to ‘neutral’ from ‘buy,’ citing undervaluation of earnings pressure. Q3FY24 sales grew weakly by 3% YoY to ₹ 350 crore, impacted by a like-to-like decline of 2.9%.
The delivery business saw a 6% increase, while dine-in contracted by 5%. Domino’s, amid increased competition, gained market share, with a 69.7% revenue share and 46.8% store share among 14 pizza chains.
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Crude oil surges
Crude oil futures rose Thursday as the US Federal Reserve hinted at potential interest rate cuts. Additionally, official data revealed a decline in US crude oil inventories. The market responded positively, with investors anticipating favourable outcomes.
Conclusion
In today’s market wrap-up, the Indian stock market faced a downturn after the Interim Budget presentation, with the Nifty 50 and Sensex in red.
While Paytm shares were significantly hit due to RBI restrictions, Adani Enterprises reported a remarkable jump in Q3 net profit. Crude oil surged amid positive signals from the US Federal Reserve.
Stay tuned for more market dynamic updates on StockGro!
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