The mood of the stock markets has changed from 27 January. During this time the Nifty has climbed more than 4 percent. On 4 February, the market saw a tremendous boom. On January 5, the main index of the market also appeared in the green mark. This time the market correction was 126 days. This is the second longest market correction in the last 10 years. In the last 10 years, 10 corrections have been seen in the market. After the recent correction, the Nifty is trading at 18.8 times the 1 -year forward PE. This is still 3-4 percent more than the Nifty’s average of 10 years. However, the valuation of the Nifty has come below the high of September 2024.
Here, the rupee continues to be weak against the dollar. The major reason for this is the strength in the dollar index. US President Donald Trump’s tariff policy has affected the market. Now the markets around the world have returned. On February 1, the positive impact of the Finance Minister’s announcement in the union budget will be seen on many sectors. Meanwhile, the eyes are on the RBI’s monetary policy. On 7 February, the new RBI governor Sanjay Malhotra can cut the interest rate by 0.25 per cent. If this happens, this will be the first cut in the repo rate in the last five years. This will have a positive impact on the stock market.
The shares of Tata Chemicals saw a rise of 1.11 per cent on 5 February. On 4 February, the stock of Tata Chemicals declined by 3 percent. The reason for this is the poor results of the company. The company’s performance in the third quarter has been weak. However, given the price trend of Soda Ash, the company is expected to perform better. In the third quarter, the company also received One-Time Exceptional Loss. Bairs says that the demand-support situation in the short term is not favorable. However, the situation is expected to improve in the long term. The management of the company has also predicted better performance in the long term.
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Asian Paints shares saw a decline of 4.32 per cent on 5 February. On 4 February, the stock of Asian Paints rose 2.7 percent. The company has a better performance in its third quarter. The company’s profit in the December quarter stood at Rs 1,128 crore. Both margin and volume were better than expected. The management has expected the growth of revenue to be good in the coming quarters. This indicates that the company is exiting the impact of Slodown. However, the fourth consecutive quarter decline in revenue is a matter of concern. Demand in the paints market is weak, while competition is steadily increasing. In such a situation, the path ahead is not easy for Asian Paints.