Market Commentary - End-Session
Indices rise for 3rd day, Nifty ends above 22,350, VIX drops to 10 As on : 23-Apr-24  17:24

Domestic investors flexed their muscle today, steering key indices higher for a third consecutive session. The Nifty50 climbed above 22,350 despite global worries like high US bond yields and Middle Eastern jitters. Sectors like realty, FMCG, and consumer durables emerged as winners, while healthcare and oil & gas witnessed some selling pressure. This resilience highlights the growing confidence of domestic institutional investors (DIIs) who are effectively countering the selling by foreign institutional investors (FPIs).

The barometer index, the S&P BSE Sensex rose 89.83 points or 0.12% to 73,738.45. The Nifty 50 index added 31.60 points or 0.14% to 22,368.00.

Grasim Industries (up 3.91%), Bharti Airtel (up 3.38%) and Tata Motors (up 1.34%) boosted the indices.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index advanced 0.52% and the S&P BSE Small-Cap index gained 1.05%.

The market breadth was strong. On the BSE, 2,314 shares rose and 1,512 shares fell. A total of 108 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tumbled 19.72% to 10.20. It hit the day's low of 9.86. The April 2024 F&O contracts will expire on Thursday, 25 April 2024.

Economy:

The headline HSBC Flash India Composite PMI Output Index ? a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors ? rose to 62.2 in April from 61.8 in March. This indicates the fastest rate of increase in aggregate business activity since mid-2010. Survey participants overwhelmingly attributed the expansion to buoyant demand from domestic and external clients. Growth in India remained broad-based across the manufacturing and service sectors.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.26% to 7.173 as compared with previous close 7.192.

In the foreign exchange market, the rupee is edged higher against the dollar. The partially convertible rupee was hovering at 83.3375, compared with its close of 83.3600 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement fell 1.42% to Rs 70,710.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.02% to 106.10.

The United States 10-year bond yield rose 0.13% to 4.629.

In the commodities market, Brent crude for June 2024 settlement shed 15 cents or 0.17% to $86.85 a barrel.

Global Markets:

Shares in Europe and Asia advanced on Tuesday as tech shares rebounded on Wall Street and investors look toward flash business activity figures from Australia, Japan and India.

Investors remained on edge ahead of earnings from some of the world?s biggest companies this week, while more cues on U.S. interest rates were also in focus.

Wall Street stocks climbed on Monday following a market sell-off in previous sessions as investors eyed a busy week for quarterly results from key companies that would provide a glimpse of the US economy's health.

Stocks in Spotlight:

Reliance Industries (RIL) slipped 1.42%. The company?s consolidated net profit rose 0.1% to Rs 21,243 crore on 10.8% increase in gross revenue to Rs 264,834 crore in Q4 FY24 over Q4 FY23. EBITDA stood at Rs 47,150 crore in Q4 FY24, registering the growth of 14.3% as compared with Rs 41,252 crore posted in same quarter last year. EBITDA margin expanded by 50 bps to 17.8% in Q4 FY24 as against 17.3% in Q4 FY23. Capital expenditure for the quarter ended 31 March 2024, was Rs 23,207 crore.

Rallis India declined 4.12% after the company reported a net loss of Rs 21 crore in Q4 FY24, lower than net loss of Rs 69 crore posted in Q4 FY23. Total income dropped to Rs 442 crore from Rs 527 crore.

Mahindra & Mahindra Financial Services fell 5.47%. The NBFC announced deferment of board meeting for considering quarterly results due to detection of fraud at one of company?s branches in the North East.

Aditya Birla Money hit an upper circuit of 5% after the company reported 123.34% surge in net profit to Rs 16.46 crore in Q4 FY24 as compared with Rs 7.37 crore posted in Q4 FY23. Revenue from operations soared 73.05% year on year to Rs 114.06 crore in the quarter ended 31 March 2024.

Netlink Solutions (India) hit an upper circuit of 20% after the company reported 62.09% jump in consolidated net profit to Rs 4.49 crore in Q4 FY24 as compared with Rs 2.77 crore in Q4 FY23. Revenue from operations increased 34.31% YoY to Rs 1.84 crore during the quarter.

Tejas Networks hit an upper circuit of 20% after the company reported consolidated net profit of Rs 146.78 crore in Q4 FY24 as against Rs 11.47 crore posted in Q4 FY23. Revenue from operations zoomed to Rs 1,326.88 crore in March 2024 quarter as compared with Rs 299.32 crore recorded in same quarter last year.

Artson Engineering hit an upper circuit of 5% after the company reported consolidated net profit of Rs 1.31 crore in Q4 FY24 as compared with net loss of Rs 9.96 crore posted in corresponding quarter last year. Revenue from operations declined 15.12% YoY to Rs 24.87 crore in Q4 FY24 from Rs 29.30 crore posted in Q4 FY23.

K P Energy hit an upper circuit of 5% after the company has received new order for development of 9MW wind power project forming part of the wind-solar hybrid power project to be developed in Gujarat.

Shish Industries jumped 10.36% after the company announced that it has received order worth minimum of $37.5 million from USA-based Best Construction Products Inc. (BCP).

Hatsun Agro Product rallied 8.89% after the company reported net profit stood at Rs 52.15 crore in Q4 FY24, steeply higher than Rs 24.98 crore in Q4 FY23. Revenue from operations jumped 14.38% to Rs 2046.87 crore during the quarter as compared with Rs 1,789.46 crore posted in corresponding quarter last year.

Redtape advanced 3.39% after the company has commenced online operational activity from it's new warehouse situated at Bhiwandi, Maharashtra with effect from 22 April 2024. This new warehouse facility will help the company to fulfil delivery of its products more efficiently to the online shopping customers.

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