Market rebounded ~2% after two weeks of correction, driven by positive global cues and buying in selective heavyweights. Nifty retested record high but settled at 21,853.80. Despite overbought conditions, broader indices gained 2.7%-5.6%. Expect volatility with focus on earnings and RBI meet. US markets continue upward trend, target 39,000 for DJIA. Nifty needs close above 22,150 for next leg.

Bond traders in India are hopeful that the government's financially responsible budget will lead to a more accommodative monetary policy by the central bank. This, along with lower borrowing plans and a reduced budget deficit, has caused yields to reach a seven-month low and could result in further rate cuts. The inclusion of Indian bonds in an emerging market index.

The Interim Budget, presented by Finance Minister Nirmala Sitharaman on February 1, provided a glimpse into the government's fiscal plans for FY24 and FY25. Key takeaways include estimated nominal GDP growth of 10.5%, target of 5.1% fiscal deficit in FY25, net borrowing of Rs 11.75 crore, increased capex target of Rs 11.1 lakh crore and estimated disinvestment of Rs 50,000 crore.

Interim Budget 2024-25 did not create much buzz in Indian business world. RBI cracked down on Paytm Payments Bank for non-compliance with KYC norms, RBI rules and lying about its compliance status. Independent directors of Paytm Bank's Board failed to act despite early warnings. This raises questions on the duty of bank Board, especially independent directors, to fix non-compliance issues.

SBI's Q3 earnings fell short of street estimates due to high wage and pension bill as net profit dropped by 35%. Despite this, overall earnings were healthy with lower credit cost. NII missed expectations but NIM stood at 3.22%. GNPA fell to 2.42% while PPoP growth was affected by high operating expenses. SBI's business growth is robust and asset quality remains healthy according to Motilal Oswal.

On Monday, gold prices dipped as the dollar and Treasury yields rose following a strong U.S. jobs report, dampening hopes for early interest rate cuts from the Federal Reserve. Fed Chair Jerome Powell reaffirmed that inflation is expected to hit the central bank's target, but traders are still pricing in rate cuts for 2024. Investors are also watching for remarks from Fed speakers this week.

The Interim Budget 2024 speech by Finance Minister Nirmala Sitharaman had a positive impact on certain stocks, particularly those in the infrastructure sector. These stocks had been relatively flat in February 2023 but following the budget's emphasis on India's growth and a rising stock market, they have seen significant increases in share price returns.

"IndiGo has broken out above Rs 3000 and is expected to continue its uptrend. Meanwhile, Tata Motors may consolidate before moving higher. The Nifty CPSE index is overbought but in an uptrend, while the oil and gas sector is also strong. Nifty is likely to stay in a range of 21,100-21,900, with potential for a 10% rise if it surpasses 22,000.

LIC's digital transformation, along with closing unprofitable products and launching new ones, is expected to make it a smarter and more market-oriented organization. The progress of this transformation, along with a new actuarial software, has already boosted the government's returns from LIC's listing. DIPAM Secretary Tuhin Kanta Pandey also expressed confidence in completing divestment.

InterGlobe Aviation's shares rose over 5% after strong Q3 earnings and target price upgrades by brokerages. Net profit doubled to Rs 2,998 crore, driven by high demand for air travel and a fuel surcharge. Operational performance also improved, with EBITDA margin expanding to 28.1%. Despite expectations of earnings tapering off, Nuvama Institutional Equities increased its target price by 30%.

Harshdeep Hortico, a company engaged in designing and manufacturing of pots and planters, saw its shares debut at a premium of 55.5% on the BSE SME platform. The IPO received strong demand, with the public offer being subscribed 130 times mainly by institutional and non-institutional investors. The company plans to raise Rs 19.09 crore through the IPO, which will be used for repayment of debt.

The Income Tax Department has given a final notice to Shree Cement, stating that they owe Rs 4,000 crore in tax liability. The department found that the company had wrongfully claimed deductions for solid waste management, but no such evidence was found during a survey. The total demand includes taxes, interest, and penalties.

Shares of Tata Motors jumped over 7% and hit a fresh 52-week high of Rs 878.80 on the BSE on Monday following better-than-estimated December quarter earnings and favourable views by top international brokerages including CLSA, Macquarie, and Goldman Sachs. They also revised their targets upwards. Tata Motors reported earnings for the quarter ended December.

SBI's Q3 net profit dropped by 35% due to a heavy wage and pension bill. However, overall earnings were strong due to lower credit costs and the bank is well-positioned in a tight liquidity environment. Analysts have a bullish outlook on the stock, with targets ranging from Rs 710-810 per share. SBI's asset quality remained strong and loan growth improved.

On February 5, Finnifty opened at Rs 20,373.95 with a 0.29% decrease from last week's closing. The long to short ratio is 33:67 and the VIX is reported at 14.7. FN Feb Futures has a 65% long build-up with positive outlook in the FnO market. 20900/21200 Call Options show aggressive OI additions while support levels are identified at 20,400.