Market Commentary - End-Session
Sensex spurts 455 pts, Nifty settles above 21,900; IT shares rally As on : 06-Feb-24  17:52

The domestic equity benchmarks closed the session near the day's highs despite initial concerns over a delay in US Federal Reserve rate cuts. The Nifty settled above the 21,900 level after hitting day?s low of 21,737.55 in early trade. IT, metals and oil & gas shares led the gains, with the Nifty forming a bullish candle on the daily chart, indicating potential upside if it breaches the 22,100 hurdle. Overall, the market's technical chart structure remained positive, with sectoral rotation evident.

The barometer index, the S&P BSE Sensex gained 454.67 points or 0.63% to 71,186.09. The Nifty 50 index added 157.70 points or 0.72% to 21,929.40.

TCS (up 4.05%), Infosys (up 2.52%) and Larsen & Toubro (up 2.49%) boosted the indices.

The broader market outperformed the benchmarks indices. The S&P BSE Mid-Cap index advanced 1.06% and the S&P BSE Small-Cap index gained 1.23%.

The market breadth was strong. On the BSE, 2296 shares rose and 1574 shares fell. A total of 74 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 1.07% to 15.79.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.01% to 7.090 as compared with the previous close 7.091.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.0550, compared with its close of 83.0325 during the previous trading session.

MCX Gold futures for 5 April 2024 settlement shed 0.06% to Rs 62,276.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.05% to 104.50.

The United States 10-year bond yield shed 0.17% to 4.160.

In the commodities market, Brent crude for March 2024 settlement rose 6 cents or 0.08% to $78.05 a barrel.

Global Markets:

Most European shares advanced while Asian stocks ended mixed on Tuesday. Investors were awaiting the Reserve Bank of Australia?s rate decision.

Chinese benchmark stocks surged as a sovereign fund pledged increased local stock holdings, boosting hopes of government support.

US stocks ended lower on Monday as Treasury yields spiked higher on concerns the Federal Reserve might not cut rates as much as expected. Lackluster results from McDonald?s also dampened investor sentiment.

Stocks in Spotlight:

State-run oil PSUs were in demand. Indian Oil Corporation, HPCL and BPCL rose by 5.42% to 6.10% after a foreign broker report forecasted continued upside for PSU OMCs despite recent gains. Oil refining and marketing firms' stocks seeing re-rating potential on long-term growth outlook. Specific P/BV ratios indicate room for upward adjustment, it reportedly added.

Bharti Airtel added 1.84% after the company?s consolidated net profit jumped 53.77% to Rs 2,442.2 crore in Q3 FY24 as against Rs 1,588.2 crore reported in Q3 FY23. Revenue from operations increased 5.85% YoY to Rs 37,899.5 crore in Q3 FY24. The growth was partially impacted by devaluation of African currencies during the period

Ashok Leyland rose 0.42%. The company reported 60.51% jump in standalone net profit to Rs 580 crore in Q3 FY24 as compared with Rs 361.34 crore in Q3 FY23. Revenue from operations increased 2.69% to Rs 9,273 crore in Q3 FY24 as compared with Rs 9,026 crore posted corresponding quarter last year.

Yes Bank soared 11.49% after the bank announce that the Reserve Bank of India has granted approval to HDFC Bank for the acquisition of an aggregate holding of up to 9.50% of the paid-up share capital or voting rights of Yes Bank. However, if HDFC Bank fails to acquire a major shareholding within one year, the approval will be revoked.

BSE slipped 3.54% after the exchange platform?s consolidated net profit fell 10.22% to 108.19 crore in Q3 FY24 as against Rs 120.50 crore posted in Q2 FY24. However, revenue from operations increased 18.13% quarter on quarter (QoQ) to Rs 371.53 crore in the qarter ended 31 December 2023. On YoY basis, the exchange and data platform?s consolidated net profit surged 109.51% while revenue from operations jumped 82.16% during the third quarter of FY24.

Adani Total Gas (ATGL) rose 0.46% after the company announced that ATGL and INOX India have entered into a mutual support agreement, under which ATGL and INOXCVA shall mutually accord a ?preferred partner? status for the delivery of LNG and LCNG equipment and services for identifying and exploring possible collaboration opportunities for strengthening the LNG ecosystem in the country.

Bajaj Consumer Care declined 3.33%. The company?s consolidated net profit increased 9.49% to Rs 36.35 crore in Q3 FY24 as compared with Rs 33.20 crore in Q3 FY23. Net sales increased 4.3% year on year (YoY) to Rs 236.38 crore in the quarter ended 31 December 2023.

New Listing:

Shares of BLS E-Services closed at Rs 370.75 on the BSE, representing a premium of 174.63% as compared with the issue price of Rs 135.

The scrip was listed at Rs 309, exhibiting a premium of 128.89% to the issue price.

The stock hit a high of 370.75 and a low of 302.75. On the BSE, over 58.31 lakh shares of the company were traded in the counter.

IPO Update:

The initial public offer (IPO) of Apeejay Surrendra Park Hotels received bids for 20,21,97,696 shares as against 3,47,61,903 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (6 February 2024). The issue was subscribed 5.82 times.

The issue opened for bidding on Monday (5 February 2024) and it will close on Wednesday (7 February 2024). The price band of the IPO is fixed at Rs 147-155 per share. An investor can bid for a minimum of 96 equity shares and in multiples thereof.

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