February 02, 2026

TOP NEWS

GMDC: Gujarat Mineral Development Corporation’s share price surged ~7% post announcement reaching day’s high of Rs 618, on mining sector reforms and research space. FM initiated major announcement dedicated for rare earth permanent schemes and critical mineral corridors in 4 states like Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to boost extraction, processing, and magnet production. GMDC is a key player in Odisha's mineral belt, benefiting from dedicated infrastructure linking mining sites to ports and processing hubs, slashing logistics costs by 20-30%. Also, the company received an advanced rare-earth processing technology from the Bhabha Atomic Research Centre (BARC) for its Ambadungar Rare Earth Project. (Positive )

Hero Motocorp: 26% year-on-year rise in wholesale dispatches in January, led by sharp growth in scooters and sustained traction in the motorcycle portfolio. dispatched 557,871 units in January, compared with 442,873 units a year earlier. 

Derivatives tax hike: Budget 2026 doubled STT on F&O futures to 0.05% (from 0.02%) and hiked options premium tax to 0.15% (from 0.1%), jacking up costs for everyday traders. The move aims to cool off excessive options speculation, but could hit F&O volumes significantly. Listed stocks that have a negative impact as a result include BSE, Groww, Nuvama Wealth, Angel one.

WTI crude fell nearly 3% to $63 per barrel Monday after Trump talked of serious negotiations with Iran. Previous price rallies stemmed from US-Iran tensions, Strait of Hormuz concerns, and geopolitical issues in Venezuela, Kazakhstan, and Russia. Negative for Oil India and ONGC

EMS stocks such as Kaynes Technology, Amber Enterprises, and others may remain in focus as the market expects extension or expansion of PLI incentives for electronics in the Budget. Customs duty rationalisation and tariff reforms, which could lower input costs for electronics manufacturing, are also key expectations driving interest in the sector.

Union Budget 2027: Crafting New Age Growth Story:

·         Budget 2026-27 was more growth-focused than populist with Supportive policies in heavy manufacturing and emerging sectors such as electronics, semiconductors, biopharma, capital goods, containers, and textiles are clearly the government’s priority bets. message is loud and clear: India looks to position itself as a global manufacturing player, even as amid trade tensions rise worldwide. For businesses in these spaces, the Budget offers better earnings visibility rather than a short-term demand boom.

·         Budget outlined a 10% increase in FY27BE capex, with the capex to GDP ratio set at 3.1%, almost similar to last year’s levels.

·         The government remained committed to fiscal consolidation path and announced moderate capex target (FY27BE capex up by over 9% from FY26BE). For FY27, the government is targeting fiscal deficit at 4.3%,

·         In conclusion, Budget 2026 marks a clear shift from consumption boost to ensuring fiscal and policy stability, amid uncertain global waters. This year’s Budget may have its hits and misses, but to borrow a phrase from the FM’s speech – “The Reform Express is well on its way and will maintain its momentum.

Preferred Picks:

Large-Caps: Sun Pharma, ICICI Bank, M&M, SBIN, L&T, HUL, Dabur, Tata Consumer, Sun Pharma, Hero MotoCorp, NTPC, PowerGrid, UltraTech, TCS, Infosys, DLF, JSW Steel and Jindal Steel.

Mid-caps: Lupin, Torrent Pharma, Biocon, Marico, Persistent Systems, HUDCO, Varun Beverages, Zydus Wellness, Polycab India, REC, PFC.

Small-caps: Kirloskar Oil Engines, Radico, ABDL, Arvind Smartspaces, KEC, V2 Retail and Emami

MACRO WRAP

·         The DJIA, the S&P500, and the Nasdaq Composite Index fell 0.4%, 0.4%, and 0.9% respectively. For the week, the DJIA fell 0.4%, the S&P500 rose 0.4%, while the Nasdaq Composite Index fell 0.2%.

• The Dollar Index rebounded 0.7% to 96.99 last Friday but fell 0.6% for the week, the US 2Y yield fell 4bp to 3.52% last Friday and fell 7bp for the week. The US 10Y yield was flat last Friday at 4.24% and was just 1bp higher for the week. The UK 10Y yield edged up 1bp to 4.52% last Friday and was just 1bp higher for the week.
• Brent crude oil prices were flat last Friday at USD70.69 but rose 7.3% for the week. It has risen by 16.6% so far this year. Gold fell 9% to USD4,894 last Friday and went down 1.9% for the week. Silver plunged by 26.4% to USD85.20 last Friday and went down 17.4% for the week. Year-to-date, gold and silver are still up by 13.3% and 18.9% respectively.
• US President Trump nominated Kevin Warsh to replace Fed Chair Powell, a choice seen by markets as supporting a more disciplined and cautious approach to easing. Positive for USD
• US producer prices rose 0.5% in December, surpassing expectations. Services rebounded and nonferrous metals surged, while diesel fell. Core PPI climbed 0.7%. Annual inflation remained at 3%, and core inflation increased to 3.3%, both above forecasts. Positive for USD
• China’s Manufacturing PMI fell to 49.3 in January 2026 from 50.1, which means factory activity weakened. New orders dropped, production slowed, and foreign demand decreased. Costs for raw materials rose faster, selling prices went up, and business confidence reached its lowest level in six months. Broadly negative for industrial commodities
• However, another reading showed the PMI rising to 50.3, the fastest growth in three months, helped by stronger output and more new orders, especially from Southeast Asia. But metal prices increased sharply, causing companies to raise their selling prices for the first time since November 2024. Even though activity improved, business confidence still fell to a nine month low due to rising costs.

           Weekly Key Events

• Key upcoming data from Europe includes the preliminary January Eurozone CPI due on 4 February, ahead of the ECB policy meeting. In Japan, political attention will intensify as the country enters the final week of campaigning before the 2026 general election on 8 February. Across major developed economies, several important releases are expected, including the final private sector manufacturing PMI readings, UK January housing prices, German December retail sales, and notably, the US ISM manufacturing survey for January, which Bloomberg estimates at 48.5 (up from 47.9 in December), with the price paid sub index projected to rise to 59.4 from 58.5.

OTHER NEWS

Jindal Steel Ltd : For the December quarter of FY26, Jindal Steel Ltd. reported a mixed operating performance. While operating margin slightly decreased to 12.5% as profitability was under pressure due to increasing expenses, revenue growth was bolstered by greater steel volumes. Better capacity utilization was demonstrated by the 25% increase in steel production to 2.51 million tonnes and the 22% increase in steel sales to 2.28 million tonnes. The Angul facility's ongoing expansion projects accounted for ~₹2,076 crore in capital expenditures made during the quarter.(Slightly mixed)