Benchmark equity indices rebounded sharply on Friday following a rally in global markets and gains in IT stocks and index heavyweight Reliance Industries. The Nifty reached its lifetime peak of 22,126.80 points during intra-day trade.
The BSE Sensex climbed 440.33 points or 0.61 per cent to settle at 72,085.63. The NSE Nifty went up by 156.35 points or 0.72 per cent to close at 21,853.80.
This week, the market focus will be on the ongoing Q3FY24 earnings season which is contributing to the movement in stock price, with many companies announcing their results in the coming days such as Ashok Leyland, Bharti Airtel, Sun Pharma, Britannia, Birla Corp, CAMS, Godrej Properties, Lemon Tree, Apollo Tyres, Nestle, Grasim, LIC, Godrej, IRFC and many more.
“Earnings growth and demand is sustained this quarter, with optimism continued for Indian corporate's business performance. IT sector companies reported mediocre performance while banks reported better performance than expected. Real estate sector continues to boom while consumer sector struggled for growth for another quarter due to weak rural demand,” said Arvinder Singh Nanda, Senior Vice President, of Master Capital Services Ltd.
“The market will react to the major domestic and global economic data, crude oil inventories, FII/DII investment pattern, movement of rupee against the dollar, ongoing earnings season, and upcoming elections. Economic numbers will impact the market such as S&P global Services PMI of countries like India, UK, US, crude oil inventories, US trade balance, Initial jobless claims, 10-year Note Auction, China’s Inflation numbers and India’s Interest rate decision and forex reserve numbers are some of the events which should be kept in focus,” Nanda said.
Here are the key stocks to watch on 5 February:
State Bank of India
India’s largest bank reported a 35 per cent year-on-year (YoY) decline in standalone net profit to Rs 9,163 crore for the quarter ended December 2023, after accounting for a one-time exceptional item of Rs 7,100 crore. In the year-ago period, the bank had reported a profit of Rs 14,205 crore. The net interest income (NII) surged 4.5 per cent to Rs 39,815.73 crore, compared to Rs 38,068.8 crore in the corresponding quarter last year. The gross non-performing assets (NPA) ratio as of December end was 2.42%, improved by 72 bps on-year. The net non-performing assets (NPA) ratio during the quarter stood at 0.64%, an improvement of 13 bps YoY.
Tata Motors
The automobile major reported a 137.5 per cent YoY increase in consolidated net profit to Rs 7,025 crore for the December quarter of FY24, compared to Rs 2,957.71 crore in the year-ago period, helped by strong operating numbers. Revenue from operations rose 25 per cent YoY to Rs 110,577 crore compared to Rs 88,489 crore in the same period last year.
Interglobe Aviation
The aviation company posted a consolidated net profit of Rs 2,998.1 crore compared to Rs 1,422.6 in the year-ago period. The revenue surged 30 per cent to Rs 19,452.15 crore. The total income increased to Rs 20,062.2 crore from Rs 15,410.2 crore in the year-ago period.
Aurobindo Pharma
The United States Food and Drug Administration (USFDA) inspected Unit-II of Eugia Pharma Specialities Ltd, a subsidiary of the company, located in Telangana from 22 January to 2 February 2024. The inspection ended with nine observations. The company has decided to temporarily halt manufacturing on certain lines to conduct a holistic investigation and corresponding partial distribution.
Delhivery
The logistics and supply chain company recorded a net profit of Rs 11.7 crore for the December quarter compared to a loss of Rs 195.65 crore in the corresponding quarter. The total income of the company stood at Rs 2,325.3 crore for the quarter under review, up from Rs 1,981.1 crore in the year-ago period.
