Market Commentary - End-Session
Benchmarks rise for 5th day, Nifty settles above 22,570; Axis Bank climbs 6% As on : 25-Apr-24  17:33

Domestic stocks extended their winning streak for a fifth day, shrugging off mixed global cues. The Nifty surged above 22,570, led by PSU banks, healthcare, and auto stocks. This resilience is surprising, considering rising US bond yields, geopolitical tensions, and even heavy selling by foreign investors. But local institutions are on a buying spree, outweighing the foreign selling, keeping the markets buoyant.

The barometer index, the S&P BSE Sensex jumped 486.50 points or 0.66% to 74,339.44. The Nifty 50 index gained 167.95 points or 0.75% to 22,570.35. The 50-unit index has risen 2.61% in five straight sessions.

Axis Bank (up 5.98%), SBI (up 5.10%) and ICICI Bank (up 1.48%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index rose 0.71% and the S&P BSE Small-Cap index added 0.54%.

The market breadth was positive. On the BSE, 2076 shares rose and 1718 shares fell. A total of 140 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 4.42% to 10.73. Volatility zoomed as the April 2024 F&O contracts expired today, 25 April 2024.

Politics:

The second phase of voting, scheduled for April 26, encompasses 89 constituencies across 13 states and Union territories. The BJP seeks a third consecutive term, while the opposition, including the Congress, has united under the banner of the Indian National Developmental Inclusive Alliance (INDIA) bloc to thwart PM Modi's re-election. The extensive Lok Sabha elections 2024 span seven phases from April 19 to June 1, with the results set to be announced on June 4.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.22% to 7.202 as compared with previous close 7.186.

In the foreign exchange market, the rupee is edged higher against the dollar. The partially convertible rupee was hovering at 83.3175, compared with its close of 83.3300 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement added 0.22% to Rs 71,406.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.23% to 105.61.

The United States 10-year bond yield shed 0.17% to 4.646.

In the commodities market, Brent crude for June 2024 settlement gained 8 cents or 0.09% to $88.10 a barrel.

Global Markets:

The US Dow Jones index futures were currently down by 208 points, signaling a weak opening for US stocks today.

European and Asian stocks were mixed on Thursday. The Bank of Japan kicked off its monetary policy meeting Thursday. Due to be published on Friday, investors will monitor the outcomes from the Bank of Japan, especially for any action to restrict the yen weakness.

Wall Street ended on a mixed note on Wednesday as traders assessed bleak outlook from Meta Inc., one of the magnificent seven, and as treasury yields rose following sales of 5-year U.S. Treasury notes. The US first-quarter gross domestic product figures are due on April 25.

Stocks in Spotlight:

Kotak Mahindra Bank slumped 10.85% after the Reserve Bank of India (RBI) directed the private lender to immediately stop onboarding new customers through its online and mobile banking channels and issuing new credit cards.

Axis Bank rallied 6% after the private lender reported net profit of Rs 7,129.67 crore in Q4 FY24 as against net loss of Rs 5,728.42 recorded in Q4 FY23. Total income rose 25.15% year on year (YoY) to Rs 35,990.33 crore in the quarter ended 31 March 2024.

Nestle India advanced 2.39% after the FMCG major's net profit jumped 26.81% to Rs 934.17 crore in March 2024 quarter as against Rs 736.64 crore in March 2023 quarter. Revenue from operations rose 9.05% year on year to Rs 5267.59 crore in the quarter ended 31 March 2023.

Hindustan Unilever declined 1.25% after the FMCG major reported 5.72% fall in standalone net profit to Rs 2,406 crore in Q4 FY24 as compared to Rs 2,552 crore recorded in Q4 FY23. Revenue from operations rose marginally to Rs 14,693 crore in Q4 FY24 as against Rs 14,638 crore posted in Q4 FY23.

LTIMindtree lost 2.03% after the company?s net profit fell 5.87% to Rs 1,100 crore in Q4 FY24 as compared with Rs 1,169 crore posted in Q3 FY24. Revenue from operations declined 1.38% to Rs 8,892 crore in Q4 FY24 as compared with Rs 9,016 crore in Q3 FY24.

5paisa Capital dropped 6.46% after the company reported 59.95% drop in consolidated net profit to Rs 5.78 crore in Q4 FY24 as compared with Rs 14.41 crore posted in Q4 FY23. Revenue from operations grew by 24.58% year on year (YoY) to Rs 112.86 crore in the quarter ended 31 March 2024.

Kirloskar Pneumatic Company surged 15% after the company reported 87% jump in net profit to Rs 60.23 crore in Q4 FY24 from Rs 32.24 crore in Q4 FY23. Revenue from operations increased by 36% YoY to Rs 489.96 crore during the quarter.

Indian Hotels Company (IHCL) dropped 5.06%. The company reported 27.26% jump in consolidated net profit to Rs 417.76 crore in the quarter ended 31 March 2024 as compared with Rs 328.27 crore in the quarter ended 31 March 2023. Revenue from operations increased 17.22% YoY to Rs 1,905.34 crore in Q4 FY24 as compared with Rs 1,625.43 crore in Q4 FY23. The said growth was led by a 19% growth in Room Revenue and 12% in Food & Beverage.

Oracle Financial Services Software declined 2.57%. The company said that it has reported 15.86% jumped in consolidated net profit to Rs 560.12 crore in Q4 FY24 as compared with Rs 479.30 crore in Q4 FY23. Revenue for the quarter was Rs 1,642 crore, up 12% YoY.

Supreme petrochemicals surged 9.78%. The company?s net profit declined 17.47% to Rs 131.50 crore in Q4 FY24 as against Rs 159.33 crore recorded in Q4 FY23. Net revenue from operations rose 12.69% year on year (YoY) to Rs 1,562.84 crore in the quarter ended 31 March 2024.

MAS Financial Services advanced 3.27% after the company?s net profit jumped 22.5% to Rs 68.05 crore in Q4 FY24 as compared with Rs 55.55 crore posted in corresponding quarter last year. Revenue from operations increased 23% YoY to Rs 328.10 crore during the quarter.

Tata Teleservices (Maharashtra) fell 1.97% after the company?s consolidated net loss widened to Rs 309.34 crore in Q4 FY24 as compared with Rs 277.07 crore posted in Q4 FY23. Revenue from operations grew by 15.41% year on year (YoY) to Rs 323.29 crore in the quarter ended 31 March 2024.

IPO Update:

The initial public offer (IPO) of JNK India received 31,10,55,912 bids for shares as against 1,10,83,278 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (25 April 2024). The issue was subscribed 28.07 times.

The issue opened for bidding on Tuesday (23 April 2024) and it will close on Thursday (25 April 2024). The price band of the IPO is fixed at Rs 395 to Rs 415 per share. An investor can bid for a minimum of 36 equity shares and in multiples thereof.

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