Stock Market Analysis Today
Feb 01 2024Morning Action – Thursday, February 1st 2024
Wall Street plunges in Wednesday’s trade, with the Dow Jones tumbling 300 points and the Nasdaq Composite marking its biggest decline since 2022.
The negative catalyst: Powell said rate hikes are done, and most importantly, rate cuts coming but the Federal Reserve does not wants to get blindsided again on inflation.
Gift Nifty is above dotted lines in early action indicating traders will mostly juggle and be seen searching for direction ahead of today’s Interim Union Budget.
GLOBAL UPDATE:
GIFT Nifty (+30, 21816)
Dow Future (+46, 38197)
Nikkei (-246, 36041)
Hang Seng (-51, 15652)
Dow Jones (-317, 38150)
Nasdaq (-345, 15164)
Bovespa (+350, 127752).
WHAT HAPPENED AT WALL STREET IN OVERNIGHT TRADE:
Alphabet was the biggest drag on the S&P 500 and Nasdaq today. Shares of the Magnificent 7-stocks plunged 7.5% – shedding $142 billion in market value along the way – as Dalal Street weighed disappointing ad revenue over the Google parent`s Q4 top- and bottom-line beats. The company also said capital expenditures "will be notably larger" in 2024 vs 2023.
At Wednesday’s close, the Dow was down 0.8% at 38,150, the S&P 500 was off 1.6% at 4,845, and the Nasdaq had shed 2.2% to 15,164.
As was widely expected, the central bank left the Federal funds rate at a range of 5.25% to 5.5%. The real anticipation was around the Fed`s outlook for potential rate cuts, and disappointment around this is what sparked widespread selling across Wall Street this afternoon.
Specifically, the Federal Reserve statement indicated the committee "does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably" toward the central bank`s 2% target.
Fed Chair Jerome Powell reiterated this in his subsequent press conference, saying the central bank "needs confirmation" before it can be confident that inflation is coming down to its target before it reduces rates. Powell added that while it`s encouraging how much inflation has declined, there`s still "a ways to go."
Result Today
ABBOTINDIA
ABCAPITAL
ADANIENT
ADANIPORTS
BATAINDIA
CUB
DEEPAKFERT
GOODLUCK
HFCL
INDHOTEL
INDIACEM
LALPATHLAB
MPHASIS
PRAJIND
RAYMOND
RITES
SONATSOFTW
TITAN
TEXRAIL
Securities in Ban For Trade Date 01-FEB-2024:
1. SAIL
2. ZEEL
Stock To watch :
🔸 Godrej Consumer
Godrej Consumer`s consolidated net profit rose 6% year-on-year to Rs 581 crore in the December quarter. Revenue from operations during the third quarter increased 2% year-on-year to Rs 3,660 crore
🔸 Mankind Pharma
Mankind Pharma reported 55% YoY growth its net profit at Rs 460 crore in the third quarter, while revenue from operations increased to Rs 2,607 crore.
🔸Dabur India
Dabur India reported 8% growth in consolidated net profit for the quarter ended December to Rs 514 crore, which was largely on expected lines.
🔸PVR Inox
Leading multiplex chain PVR Inox reported a 20% fall in its consolidated profit after tax (PAT) at 12.8 crore in the December quarter.Stock in Action
🔸Suzlon Energy
Suzlon Energy Ltd reported a healthy set of numbers for the quarter ended December, with the consolidated net profit surging 2.6 times year-on-year (YoY) to Rs 203 crore.
🔸JSPL
JSPL reported revenue from operations of Rs 11,701 crore in the third quarter, while profit stood at Rs 1,928 crore.
🔸Paytm
The Reserve Bank of India (RBI) has directed Paytm Payments Bank to stop onboarding of new customers with immediate effect.
🔸 Shree Cement
Shree Cement reported net profit of Rs 734 crore in the December quarter, while revenue from operations stood at Rs 4,901 crore.
🔸Deepak Nitrite
Deepak Nitrite`s arm Deepak Chem Tech expressed its intention to invest around Rs 9,000 crore in Gujarat.
