Stocks to watch, Feb 1: Hero MotorCorp, Sun Pharma, ONGC, ITC, Marico, Vedanta and more

Stocks to watch: Indian benchmark indices are expected to remain volatile on Saturday, February 1 as investors may remain cautious ahead of the Union budget.

Indian markets are expected to open positively on Saturday before the Union Budget session. The markets posted a strong recovery during the week, rising nearly 3.2% from the recent lows. The broader market indices recovered more fiercely, rising 5% from the lower levels.

On the global front, the US markets fell from near-record high levels on Friday after the Trump administration confirmed imposing tariffs on China, Mexico, and Canada.

Stocks in focus: Rail Vikas Nigam, IRCTC, IRFC, Railtel, IRCON, Jupiter Wagon, Titagarh Wagon.

Indian railways sector has seen sharp upheaval in the past decade after the government decided to improve the quality of India’s largest passenger travel mode. Experts anticipate Finance Minister Nirmala Sitharaman increasing capital expenditure for the railway sector by 15-20% in the upcoming Union Budget 2025.

Stocks in focus: SBI, LIC, Hindustan Zinc, Cochin Shipyard, IDBI Bank, Shipping Corporation of India, Mazagon Dock Shipbuilders, BHEL, IREDA, BPCL, HPCL, Punjab National Bank, Canara Bank, NHPC and more.

The government could not achieve its ambitious divestment target for public sector undertakings in FY25. However, experts suggest that the FY26 budget estimates for divestment are expected to be more realistic.

Stocks in focus: Fertiliser stocks like Coromandel International, RCF, and Madras Fertilizer. Fisheries stocks related to shrimp feeds like Avanti Feeds and Apex Frozen Food. Small Finance companies like Credit Access Grameen, Unity Small Finance, AU Small Finance and more.

The agriculture sector has always received more focus from the government in the budget as the majority of the population is reliant on agriculture and allied activities. According to media reports, the sector is expected to receive increased allocation to ₹1.75 lakh crore and a limit on loans from Kisan credit cards.

Stocks in focus: Hindustan Aeronautics Ltd, Bharat Electronics Ltd, Garden Reach Shipbuilders & Engineers, Bharat Dynamics Ltd, Cochin Shipyard, Data Patterns, Apollo Micro Systems, Astra Microwave Products, MTAR Technologies.

The defence sector has been in focus for many budgets with increased allocation for spending and upgradation of existing sources. Each year, the defence sector has seen some announcements in the budget.

Stocks in focus: Dixon Technologies, Amber Enterprises, PG Electroplast, Kaynes Technologies, Epack Durable.

The government of India is expected to continue supporting electronic manufacturing services (EMS) players through a production-linked investment scheme. According to media reports, the government is expected to announce a PLI scheme worth ₹25,000 crore for electronic component manufacturers and ₹43,000 crore for semiconductors.

Stocks in focus: ITC, Hindustan Unilever, Maruti Suzuki, Godrej Consumer Products, Marico, Adani Wilmar.

The urban FMCG sector, a major contributor to India’s consumption story, is experiencing a slowdown, particularly in mass-market segments. Rural markets, comprising 35% of India’s FMCG sales, are rebounding with a 6% year-on-year growth in volume sales. Getting demand levels back on track is a top priority for industry leaders to spark growth in the consumption sector. For analysts, this remains important, as subdued macros and a complicated geopolitical picture are already weighing down FMCG stocks.

Its revenue from operations rose 10.18% to stand at ₹38,526 crore, compared to ₹34,968 crore in Q3 FY24.

Total revenue from operations rose to ₹13,675 crore in the third quarter compared to ₹12,381 crore in the year-ago period, the company said in a regulatory filing.

The drug maker's board has declared an interim dividend of ₹10.5 per share for the year FY25 against ₹8.50 per share interim dividend for the previous year.

Its Net Interest Income (NII) fell 1.28% YoY to stands at ₹5,228.1 crore, compared to ₹5,295.6 crores in Q3 FY24.

The bank's gross NPA's increased 9.66% to ₹8,375.3 crore from ₹7,638.5 crore in the previous quarter.

Its net interest income (NII) rose 12% YoY to stands at ₹2,830 crore, compared to ₹2,525 crores in Q3 FY24. The bank's gross NPA's fell 24.06% to ₹6,178.5 crore from ₹8,135.54 crore in the previous quarter.

Its revenue from operations decreased 0.37% to stand at ₹537.99 crore, compared to ₹539.97 crore in Q3 FY24.

Godrej Agrovet saw a significant 38.4% growth in EBITDA, which stood at ₹220 crore, up from ₹159 crore in the corresponding period last year.

The FMCG company’s revenue from operations rose 15.4% YoY to ₹2,794 crore as against ₹2,422 crore in the third quarter ended December 31, 2023 (Q3 FY24).