FIRST TRADE: Sensex up over 70 pts; Nifty above 21,700 ahead of the Interim Budget presentation

Stock market today: The Indian share market on Thursday (February 1) edged higher ahead of the Interim Budget, slated to be presented at 11 a.m. Further, global equities were subdued after the US Federal Reserve commentary added to doubts over early rate cuts. Last seen, both indices were up over 0.15 per cent. The S&P BSE Sensex traded 87.04 points, at 71,839.15, while the NSE Nifty soared 22.2 points, to 21,747.9.

"While both the Fed decision and the Budget will influence the market today, the focus will be on the Budget. Even though the Interim Budget is expected to be largely a vote on account with 'no sensational announcements', the PM’s statement yesterday that it will be a ‘blueprint of intent’ has aroused expectations that there will be some significant indications of what is likely to come in the full Budget and beyond. This will keep the market focused on the Budget," said Dr. V. K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Dr. Vijayakumar added that yesterday's 1.61 per cent sell-off in the S&P 500 was a disappointment that the rate cut would not happen in March. But the Fed chief’s comment that the economy is doing well with 3.1 per cent GDP growth in 2023, low 3.7 per cent unemployment, and consumer price inflation declining to 2.6 per cent augurs well for the market going forward.

"Sectoral and stock-specific moves in response to budget proposals will hog the limelight today. But long-term investors should not be carried by the dramatic moves today and may focus on high-quality stocks with good long-term growth prospects," said Geojit Financial Services' Dr. Vijayakumar.

Meanwhile, the Nifty Mid Cap 100 and Small Cap 100 opened in green. Nifty Bank was up 0.17 per cent at 46.076.9.

BUZZING STOCKS

Godrej Consumer Products shares were up over 8 per cent after the company posted best among its peers' Q3 results.

Shree Cement shares were up over 5 per cent after the company posted good Q3 results.

Dixon Technologies shares rose over 2 per cent a day after the company's Q3 numbers beat estimates.

Conversely, Paytm shares hit a 20 per cent lower circuit after the Reserve Bank of India (RBI) barred Paytm Payments Bank Ltd from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, and FASTags, among others, after February 29, 2024.

GLOBAL MARKETS

Asian shares faltered on Thursday after Wall Street took a late spill, while investors stuck to bets for sizable cuts in U.S. interest rates this year even if the kick-off might now be a little later than first hoped.

The Federal Reserve Committee's decision to hold rates at 5.25–5.5 per cent on Wednesday was no surprise; it took a dovish twist by emphasising that rates would not be cut until it had more confidence that inflation was truly beaten.

(With inputs from agencies.)

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