..... . VALI disclosures . .....: 02/02/26, Share Market Today

Monday, February 2, 2026

02/02/26, Share Market Today

The Indian stock market is likely to start Monday's session on a positive note, attempting to recover from the sharp sell-off seen previously.

However, volatility is expected to stay high as investors continue to assess the Union Budget 2026 proposals.

Asian markets were trading mixed, while US equities closed lower, with stock futures also pointing downward.

"Indian markets may remain under pressure following the sharp negative reaction to the Union Budget 2026-27, triggered by a surprise hike in the Securities Transaction Tax (STT) on derivatives. While DII buying could offer some support, near-term sentiment remains cautious to mildly bearish as market participants reassess positioning in anticipation of higher F&O costs coming into effect from April 1.The long-term India growth story remains intact, but short-term volatility and correction risks are likely to persist until stability returns," said Ponmudi R, CEO of Enrich Money.

The Indian market slumped in a special trading session on Sunday following the Budget announcement proposing a hike in the Securities Transaction Tax (STT) on F&O trades.

The Sensex tumbled 1,546.84 points, or 1.88%, to end at 80,722.94, while the Nifty 50 fell 495.20 points, or 1.96%, to settle at 24,825.45.

Stocks to watch

Against this backdrop, here's a list of stocks that may attract investor interest and are likely to move today.

Hyundai Motor, Indus Towers, Bajaj Housing Finance, RailTel Corp, Tata Chemicals, Awfis Space Solutions

Shares of Hyundai Motor, Indus Towers, Bajaj Housing Finance, RailTel Corp, Tata Chemicals, Awfis Space Solutions will remain in focus today as companies will declare Q3 results today.

Hero Motocorp

Two-wheeler major Hero MotoCorp on Sunday reported a 26% year-on-year increase in dealer dispatches, reaching 5,57,871 units in January 2026, up from 4,42,873 units in the corresponding month last year.

Adani Green Energy

Adani Green Energy on Saturday issued a fresh clarification on the civil case filed by the US Securities and Exchange Commission against its directors, Gautam Adani and Sagar Adani, in a US federal court, reiterating that the company is not named in the proceedings and that no charges have been levelled against it.

ITC

Cigarette prices have risen steeply across segments following the implementation of a new excise duty on Sunday, resulting in retail price hikes of at least ₹22-25 per pack of 10 sticks.

Defence stocks - BEL, HAL, GRSE, Data Patterns

Shares of BEL, HAL, GRSE, and Data Patterns are likely to remain in the spotlight on Monday as they may respond to the Budget announcements. The capital expenditure allocation for FY27 has been set at ₹2.19 lakh crore, up from the revised FY26 estimate of ₹1.86 lakh crore-an increase of about 18%.

Biocon, Sun Pharma, Dr Reddy's

The biopharma space is set to stay in the spotlight after Finance Minister Nirmala Sitharaman, in her speech, highlighted biologics as critical to longevity and outlined the government's plan to position India as a global biopharma manufacturing hub, supported by the creation of a dedicated biopharma network.

BSE, Groww

Shares of BSE and Groww declined 5-10% on Sunday after Budget 2026 increased the Securities Transaction Tax (STT) on futures and options, a step that brokerage Jefferies described as negative for market sentiment.

Quess Corp

The company said it has received a final assessment order from the Income Tax Department, resulting in a tax demand of ₹160 crore.

Blue Star

The company stated that it identified unauthorised access to its product installation data and promptly took steps to limit access as soon as the issue came to light.

MOIL

The company's board has approved the establishment of a joint venture with Madhya Pradesh State Mining Corporation for manganese ore mining operations in Madhya Pradesh.

soutce: Mint

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.

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Trade Cycles

The four important features of Trade Cycle are (i) Recovery, (ii) Boom, (iii) Recession, and (iv) Depression!

The trades cycle or business cycle are cyclical fluctuations of an economy. A full trade cycle has got four phases: (i) Recovery, (ii) Boom, (iii) Recession, and (iv) depression. The upward phase of a trade cycle or prosperity is divided into two stages—recovery and boom, and the downward phase of a trade cycle is also divided into two stages—recession and depression.

Phases of Trade Cycle:

The phases of trade cycle are explained with a diagram:

(1) Recovery:

In the early period of recovery, entrepreneurs increase the level of investment which in turn increases employment and income. Employment increases purchasing power and this leads to an increase in demand for consumer goods.

As a result, demand for goods will press upon their supply and it shall, thereby, lead to a rise in prices. The demand for consumer’s goods shall encourage the demand for producer’s goods.

The rise in prices shall depend upon the gestation period of investment. The longer the period of investment, the higher shall be the price rise. The rise of prices shall bring about a change in the distribution of income. Rent, wages, interest do not rise in the same proportion as prices.

Consequently, the margin of profit improves. The wholesale prices rise more than retail prices. The prices of raw materials rise more than the prices of semi-finished goods and the prices of semi-finished goods use more than the prices of finished goods.

(2) Boom:

The rate of investment increases still further. Owing to the spread of a wave of optimism in business, the level of production increases and the boom gathers momentum. More investment is possible only through credit creation. During a period of boom, the economy surpasses the level of full employment and enters a stage of over full employment.

(3) Recession:

The orders for raw materials are reduced on the onset of a recession. The rate of investment in producers’ goods industries and housing construction declines. Liquidity preference rises in society and owing to a contraction of money supply, the prices falls. A wave of pessimism spreads in business and those markets which were sometime before sellers markets become buyer’s markets now.

(4) Depression:

The main feature of a depression is a general fall in economic activity. Production, employment and income decline. The prices fall and the main factor responsible for it is, a fall in the purchasing power.

The distribution of national income changes. As the costs are rigid in nature, the margin of profit declines. Machines are not used to their full capacity in factories, because effective demand is much less. The prices of finished goods fall less than the prices of raw materials.

✳Reality Tips to Traders

1)Trading in the stock market is a marathon. 2)Protecting your capital is key. (Learn to protect first) 3)Making 0 on the day is better than losing 50k 4)Losses happen; they are part of this business. 5)It’s not you vs. the market. It’s you VS you. 6)You are your biggest enemy; learn to be mentally disciplined. 7)Don’t follow the majority; follow the correct path. 8)Traders without a stop loss end up not being traders for long. 9)There is always another trade. 10)The big money is made waiting for the right set-ups. 11)Waiting for the right trade is the most powerful strategy. 12)It is better to cut a loss than to wait to be proven right. 13)Position sizing can make or break you. 14)Worry about the downside before you even think about the upside. 15)Don’t listen to headlines

..BANKING TERMINOLOGY

There are various types of Banks: PSU Banks, Private Banks, Co-operative/Regional Banks, Small Finance Banks and Foreign Banks. When you deposit money in a bank, let's say the bank gives you an interest rate of 4%. But when the bank lends out this money, they lend it out at say, 12%. The difference of 8% in the above scenario is effectively the profit of the bank! The loans that do not pay interest for 90 days are known as Non-performing Assets. Banks have to provide for such bad loans. Structure of a Bank Asset for a Bank: The asset portion of a bank's capital includes cash, government securities, and interest-earning loans (e.g., mortgages, letters of credit, and inter-bank loans). Liabilities for a Bank: The bank's main liabilities are its capital (including cash reserves and, often, subordinated debt) and deposits. The latter may be from domestic or foreign sources (corporations and firms, private individuals, other banks, and even governments). Banks are required to maintain Liquidity with the Reserve Bank of India: SLR (Statutory Liquidity Ratio): It is the money a bank needs to preserve in the form of cash, gold or government Bonds before providing credit customers. This limitation is added by RBI on banks to make funds available to customers on-demand at your earliest convenience. Banks are required to maintain SLR at 18%. CRR (Cash Reserve Ratio): Banks are required to hold a certain proportion of their deposits in the form of cash. Banks don’t hold these as cash with themselves, but deposit such amounts with RBI / currency chests. CRR rate is at 4.5% currently. Repo Rate: The rate at which the RBI lends short-term money to the banks. The RBI through its Monetary Policy committee changes the repo rate to balance growth and Inflation. Reverse Repo rate: The rate at which banks park their short-term excess liquidity with the RBI. Now let us understand various terminologies for Banks Net Interest Income (NII): This is the spread the bank makes on its lending. It is calculated as Interest Income – Interest Expended Net Interest Margin (NIM): This is the spread the bank makes on its lending. It is the earning which is left after deducting the cost paid to depositors from its yields on Loans. This is denoted in % terms. The formula is Yield on Loans – Cost of funds Capital Adequacy Ratio (CAR): The capital adequacy ratio (CAR) is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures. Essentially, it is the Capital that is available to lend. Tier I Capital – In simple words this capital is freely available with the bank to lend out. Tier II Capital- This is the capital tied up somewhere and is less freely available to lend. In case of an adverse event, the bank can use this capital to lend. Under Basel III norms, a bank’s tier 1+tier 2 capital must be a minimum of 8% of its risk-weighted holdings. The minimum capital adequacy ratio, also including the capital conservation buffer, is 10.5%. Current Account Saving Account (CASA)- There is no interest paid on the Current Account and a small interest rate is paid on a savings account. The combination of both is called CASA which shows the liabilities of the bank on which it pays relatively less interest. Deposits: Bank deposits are a savings product that customers can use to hold an amount of money at a bank for a specified length of time. In return, the financial institution will pay the customer the relevant amount of interest, based on how much they choose to deposit and for how long. Now let us come to NPA. Gross NPA (GNPA): It is the total loans on which no payment has been paid for 90 days or more. GNPA % is usually shown in each Bank’s quarterly results. The percentage is basically the GNPA amount as a % of the total advances. Slippages: Slippages denote the fresh amount of loans that have turned bad in a year. The slippage ratio of a bank is calculated as Fresh accretion of NPAs during the year /Total standard assets at the beginning of the year multiplied by 100. Provisioning Coverage Ratio (PCR): This is the ratio of provisioning to GNPA and indicates the extent of funds a bank has kept aside to cover loan losses. For Instance, a company has GNPAs of Rs 100 and they have set aside 50 Rs, then the PCR is 50%. Net NPA (NNPA): The total figure left after deducting provisions made for bad loans from GNPA. (GNPA – Provisions+upgrades/writeoffs = NNPA) Special Mention Account (SMA) SMA-0 is a category in which stress with respect to the principal and interest has remained overdue for a period of 0 to 30 days. SMA-1 is a category in which stress with respect to the principal and interest has remained overdue for a period of 30-60 days. SMA-2 is a category in which stress with respect to the principal and interest has remained overdue for a period of 60-90 days

..... . VALI disclosures . .....

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Monday, February 2, 2026

02/02/26, Share Market Today

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