Sheela Foam surged on a 213% profit jump, while Nifty IT slid 7%, erasing ₹2 lakh crore – Paper by Pocketful
Market Recap: 04th February, 2026
Top Gainers & Losers (Nifty 50)
🗞 Stock News Highlights
Sheela Foam (+14.84%): Shares surged after Q3FY26 net profit jumped 213% to ₹52.6 crore, revenue rose 11.1%, EBITDA up 30%, margins expanded to 11% on strong demand trends.
NBCC India (+3.90%): Stock rose after bagging construction orders worth ₹39.19 crore from ICMAI and ₹232.13 crore from Uttarakhand Fisheries Department, totaling ₹271.32 crore for the Namami Ganga Aquarium-cum-Discovery Centre project.
Nazara Technologies (-2.00%): Shares fell after Q3FY26 net profit declined 35% YoY to ₹8.8 crore and revenue dropped 24% to ₹405.9 crore, impacted by Nodwin Gaming deconsolidation.
Triveni Turbine (-7.34%): Stock declined despite 225% cash dividend announcement, as Q3FY26 profit remained flat at ₹92.1 crore, even though revenue grew 24% YoY.
🏢 Sectoral Performance
Consumer Durables | Nifty Consumer Durables (+2.66%): The index advanced for the third consecutive session, led by Titan Company, Dixon Technologies, and Voltas, on strong demand outlook and sustained buying interest.
Oil & Gas | Nifty Oil & Gas (+2.08%): The index advanced with 12 pullers and 3 draggers, supported by firm crude-linked sentiment and global supply cues, including developments related to Venezuela impacting oil markets.
IT | Nifty IT (-5.87%): Index declined sharply as all constituents traded in the red amid global tech sell-off fears triggered by Anthropic’s new AI tools intensifying competition for software and services firms.
Defence | Nifty India Defence (-0.77%): The index declined as Budget expectations were already priced in and no major fresh order catalysts emerged, triggering profit-booking. Heavy selling was seen in HAL, Solar Industries India, and Mazagon Dock Shipbuilders.
🔍 Market Insights
Technical Level: The Nifty opened with a gap-down amid light liquidity in early trade, slipped nearly 100 points initially, then recovered fully to trade in a range throughout the session, forming support near 25,570 and resistance around 25,820.
Advance-Decline Ratio: Market breadth was positive, with 2,151 advances against 1,044 declines, indicating continued buying interest across the broader market.
The Big Picture: Indian IT stocks saw a sharp selloff on February 4 as Nifty IT plunged over 7%, wiping out nearly ₹2 lakh crore, after Anthropic’s new AI tools raised fears of disruption, triggering a global tech rout and a 1.43% fall in the Nasdaq.
FII/DII Activity (Feb 03, 2026): DIIs were net buyers worth ₹1,014 crore, while FIIs were net buyers of ₹5,236 crore, reflecting strong institutional buying support.
🔮 Watch Out For Tomorrow
Earnings Corner: Tata Motors Passenger Vehicles & Suzlon Energy are set to announce their Q3 results tomorrow.
Macro: Australia Balance of Trade (Dec) & Europe Retail Sales MoM (Dec) are scheduled to be released Tomorrow.
Index Watch: Nifty traded positive today on India–US trade deal optimism, supportive commodity trends and improved Q3 earnings, boosting market sentiment, with investors watching whether the index can sustain above 26,000 for a confirmed recovery or face profit-booking pressure.
5 Day Course
Theme: Long-Term Investing
Day 3 – Wednesday: Margin of Safety
Definition: Buying high-quality companies at prices well below their intrinsic value to minimize risk and enhance long-term returns.
Key Points: Protects against valuation errors, market volatility, and unforeseen risks; encourages patience and disciplined investing.
Example: An investor buys a market-leading FMCG company with strong brands and steady cash flows during a broad market correction, when the stock falls 30–40% below its historical valuation despite stable earnings. As the market recovers and earnings compound, the stock delivers strong long-term returns with limited downside risk.
📝 Word Of The Day
Inflection: A turning point where market momentum shifts direction, often driven by changes in earnings, sentiment, or macro cues.
👀 Stay tuned. Stay diversified.
Until next time,
Team Pocketful.