Morning Mint: Your Daily Financial Digest
Date: Saturday, February 1, 2025
Stock Market to remain open on Saturday February 1st on account of Union Budget 2025. Finance Minister will announce Budget at 11 a.m. Key sectors expect tax reforms, healthcare, auto, and financial services.
Market Overview
- Positive Market Momentum: The Indian stock market closed higher for the fourth consecutive session on Friday. The BSE Sensex rose by 740.76 points (0.97%) to 77,500.57, while the Nifty 50 increased by 258.90 points (1.11%) to 23,508.40. This surge was driven by strong Q3 results from Larsen & Toubro and optimism surrounding the Economic Survey presented ahead of the Union Budget.
- Technical Insights: Nifty’s breakout above 23,400 indicates a reversal of the previous month’s bearish trend, suggesting strong bullish momentum. Analysts anticipate the index may reach the 23,800 resistance level shortly, with immediate support at 23,400 followed by 23350, and 23265.
Trading Strategy for Budget Day
With the Budget announcement around the corner, here’s how traders can navigate the markets:
- Key Levels to Watch: For Nifty, the immediate support is at 23,400, while resistance is at 23,800. A breakout above 23,800 could signal further gains.
- Sector Rotation: Sectors like infrastructure, banking, and IT are likely to be in focus during the Budget. Keep an eye on these for potential opportunities.
- Volatility Ahead: Markets may remain volatile, so traders should adopt a cautious approach and avoid over-leveraging.
Foreign Portfolio Investors (FPIs) Activity
- Continued Selling Pressure: FPIs remained net sellers for the 21st consecutive session, offloading equities worth ₹1,189 crore. This persistent selling trend reflects caution among foreign investors.
Economic Insights
- Retail Investor Sentiment at Risk: The government’s Economic Survey warns that a significant market correction could adversely affect retail investor sentiment and spending. With retail participation at record highs—monthly traders on the National Stock Exchange increased from 3.2 million in January 2020 to 14 million in November 2024—a downturn could have substantial implications. (reuters.com)
Corporate Spotlight
- Ola Electric’s Market Position: Ola Tops Two-Wheeler EV Makers By Garnering 25% Market Share In January. Ola Electric continues to lead the electric vehicle (EV) market, maintaining its top position despite a general market downturn.
The company attributed its 65% growth month-on-month and the improved market share to a strong S1 portfolio and expansion of sales and service network.
Stay informed with Morning Mint for your daily financial updates.
-Team Market Mint
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