February 2nd 2024 Stock Market analysis

Sensex and Nifty Pull Back from Intraday Peaks as Analysts Turn Bullish on Banking Stocks for Next Phase of Rally

Following a subdued response to the Interim Budget in the preceding session, the market showcased robust gains on February 2, witnessing Nifty soaring to a new pinnacle at 22,126.80 and the Sensex surging over 1,400 points.

However, the benchmarks relinquished a portion of their gains, with the Sensex concluding at 72,085.63, down by 440.33 points or 0.61 percent, and the Nifty settling at 21,853.80, a decline of 156.30 points or 0.72 percent.

Boosted by favorable global cues, the market commenced on a positive note and sustained the upward trajectory throughout the day. Yet, profit-booking activities at elevated levels trimmed some of the earlier gains.

The NSE Nifty 50 witnessed notable gains today, with BPCL leading as the top performer, trading at 557 with a remarkable gain of 9.55%. Following closely behind are Powergrid, trading at 278 with a gain of 4.59%, and ONGC, trading at 257.15 with a gain of 3.84%. Conversely, Eichermot experienced a loss of 2.50%, trading at 3835, making it the top loser in the Nifty. Axisbank and HDFCLife also saw declines, trading at 1067.7 and 578.9 respectively, with losses of 1.53% and 1.40%. TataSteel emerged as the most active stock by volume, trading at 138.6 with a staggering volume of 6,92,65,966 shares.

Energy Stocks Surge: BPCL, RIL, IREDA Lead with Up to 10% Gain

The Union Budget 2024's emphasis on clean energy, coupled with softer crude oil prices, spurred a robust rally in energy stocks on Friday, with gains exceeding 10%. Leading the surge was Bharat Petroleum Corporation (BPCL), which saw a 10% intraday increase, reaching a new 52-week high of Rs 555 on the NSE. Additionally, a more than 3% surge in index heavyweight Reliance Industries (RIL) provided the necessary momentum for the Nifty Oil & Gas index to hit a fresh 52-week high. Following BPCL was Indian Oil Corporation (IOC), which gained nearly 9% to reach its new 52-week peak of Rs 161.90. Other top gainers, including Castrol India, Hindustan Petroleum Corporation, GAIL India, and Gujarat Gas and Oil India, also rose by up to 6%, each hitting their respective 52-week highs. The only exception was Gujarat State Petronet, which experienced minor declines in trading at 1:20 pm.

Furthermore, Brent crude prices have dipped below the $80 per barrel mark.

In addition to the energy sector, renewable energy stocks also witnessed significant activity following Finance Minister Nirmala Sithraman's announcements in her last budget of the Modi 2.0 government. Shares of Indian Renewable Energy Development Agency (IREDA), Waaree Renewable, Gensol Engineering, KPI Green Energy, and Inox Wind all rose by 5% each.

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