After opening the day higher, Indian benchmark indices gained as the session progressed and ended the day higher.

Benchmark equity indices continued their northward march for the fourth consecutive session to settle with gains, as Finance Minister Nirmala Sitharaman presented the Economic Survey 2024-25 in Parliament today.

Further, The Indian stock markets will remain open for trading on Saturday, 1 February as Finance Minister Nirmala Sitharaman presents the Union Budget 2025-26.

According to the BSE and the NSE, trading activity will begin on the Budget 2025 date at 9:15 AM, as usual, and remain open until 3:30 PM.

At the closing bell, the BSE Sensex stood higher by 741 points (up 0.9%).

Meanwhile, the NSE Nifty closed higher by 259 points (up 1.1%).

Nestle, Trent, and L&Tare  among the top gainers today.

Bharti Airtel, Bajaj Finance, and ICICI Bank on the other hand were among the top losers today.

The GIFT Nifty was trading at 23,610 up by 185 points at the time of writing.

The BSE MidCap index and BSE SmallCap index ended 1.8% higher.

Sectoral indices were trading mixed with stocks in the power sector, capital goods sector, and realty sector witnessing most buying speer.

The rupee is trading at 86.64 against the US$.

Gold prices for the latest contract on MCX are trading 0.3% higher at Rs 82,254 per 10 grams.

Meanwhile, silver prices were trading 0.5% higher at Rs 93,936 per 1 kg.

Here are the three key factors driving the market's momentum:

#1 Budget Optimism

As the Union Budget 2025 approaches on 1 February, markets are bracing for volatility, but with a bullish tilt. The recent uptrend was driven by both short covering and optimistic sentiment around the Union Budget.

#2 Strong Sectoral Performance

Shares of IT, auto, and consumer durable companies have been among the biggest gainers. All 13 sectoral indices were in the green, with FMCG and auto stocks climbing 2 percent each, pulling the Nifty higher.

#3 Index Heavyweights Rally

In Friday's session, Tata Consumer, Bharat Electronics, Nestle, Trent, and L&T topped the Nifty 50 gainers, rising 4-6%. This was on the back robust Q3 numbers.
 

Marico Q3 Results

In news from the FMCG sector, Marico Ltd has reported a 4.2% year-on-year increase in consolidated net profit, which rose to Rs 3.9 bn for the October-December quarter of FY25.

The company's revenue saw a notable 15% YoY growth, reaching Rs 27.9 bn. This growth was primarily driven by higher sales volumes in both the domestic and international markets.

Despite the positive revenue performance, Marico faced significant margin pressures due to escalating input costs.

The company's EBITDA increased by 4% YoY, standing at Rs 5.3 bn, although its EBITDA margin contracted by 2.1% to 19.1%.

This decline was attributed to rising raw material costs, particularly in copra and vegetable oils, which outpaced the company's pricing adjustments. Gross margin also saw a decrease, falling by around 180 basis points YoY.

In a positive development, the board declared an interim dividend of Rs 3.5 per share, with a record date of 7 February 2025, and payment scheduled on or before 2 March 2025.

Looking ahead, Marico expects demand to remain stable in the coming quarters, supported by rural recovery and government measures. However, the rising input costs continue to present challenges for profitability, potentially weighing on the company's margin outlook for the near future.

Defense Stocks Surge Ahead of Union Budget 2025

Moving on to news from the defense sector, shares of key defense sector players such as Hindustan Aeronautics, Bharat Electronics, Bharat Dynamics, Data Patterns, and Paras Defence have been witnessing a surge in recent days, with gains of 3-5% driven by optimism surrounding the upcoming Union Budget 2025.

Investors are hopeful that the government will allocate higher funds to modernize the country's defense infrastructure, focusing on self-reliance, technological advancements, and the enhancement of national security.

Market experts are particularly optimistic about a potential increase in capital expenditure (capex) for defense, along with expanded investments in research and development (R&D).

Such initiatives would not only strengthen India's national security but also position the country as a formidable player in the global defense market.

India's defense expenditure has grown at a compound annual growth rate (CAGR) of 8.1% over the last decade, rising from Rs 2.85 tn in 2014-15 to an expected Rs 6.22 tn in FY25.

This steady increase indicates a growing commitment to modernizing defense capabilities, which has further fueled optimism in the sector.
 

Navin Fluorine Posts Strong Q3, Stock Surges 10%

Moving on to news from the chemical sector, Navin Fluorine International saw a remarkable 10% surge in its stock price on 31 January, reaching a 52-week high of Rs 4,299.05.

This surge followed the company's strong Q3 earnings, which showed a 7.2% year-on-year increase in net profit, reaching Rs 836 m.

Revenue also saw a significant rise, growing by 21.2% YoY to Rs 6 bn.

The company attributed its growth to strong demand across its key segments, which led to improved operational performance.

As a result, Navin Fluorine's EBITDA margin expanded significantly to 24.3%, up from 15.1% in the same period last year.

The company's robust earnings and improved growth visibility have garnered positive sentiment in the market, with several brokerages revising their price targets for the stock.

Additionally, Navin Fluorine's management remains optimistic about the future, with a particular focus on strong growth prospects in its Contract Development Manufacturing Organisation (CDMO) business for FY26.

The company's strategic expansion and improved operational efficiency continue to position it well for future success, making it a stock to watch in the chemical sector.

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