Market Commentary - End-Session
Benchmarks stage comeback after initial slump, VIX crosses 20 mark As on : 13-May-24  17:56

Domestic stocks clawed their way back after a morning wobble on Monday, with pharma and healthcare leading the charge. The Nifty settled above the 22,100 level after hitting the day?s low of 21,821.05 in mid-morning trade. Market experts attribute the current foreign investor selling frenzy to a global shift in focus towards China's cheaper markets, not India's election concerns. Analysts remain bullish on India's long-term prospects. Union Home Minister Amit Shah echoed this, calling the current weakness a potential buying opportunity.

The stock market should not be linked with elections, but a stable government does help it perform better, Shah told the media on Sunday. He also suggested that the market will shoot up after June 4th as a result of the BJP and its allies sweeping the Lok Sabha elections. The seven-phase elections come to an end with the counting of votes on June 4th.

The barometer index, the S&P BSE Sensex gained 111.66 points or 0.15% to 72,776.13. The Nifty 50 index added 48.85 points or 0.22% to 22,104.05.

HDFC Bank (up 1.27%), Adani Enterprises (up 2.90%) and Adani Ports and Special Economic Zone (up 3.15%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index rose 0.36% and the S&P BSE Small-Cap index shed 0.23%.

The market breadth was weak. On the BSE, 1,707 shares rose and 2,254 shares fell. A total of 126 shares were unchanged

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, climbed 11.51% to 20.60.

Economy:

India's industrial output expanded 4.9% year-over-year in March, slower than the 5.6% in February. The slowdown was primarily driven by weaker growth in mining, which rose just 1.2% annually in March compared to a robust 8.1% surge in February.

India's foreign exchange reserves witnessed a significant increase after three weeks of consecutive dips. For the week ending May 3rd, reserves jumped $3.668 billion to reach $641.59 billion. This is still below the all-time high of $648.562 billion set in early April.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.15% to 7.116 as compared with previous close 7.117.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.5200, compared with its close of 83.5100 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement fell 1.01% to Rs 71,995.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.03% to 105.27.

The United States 10-year bond yield lost 0.49% to 4.481.

In the commodities market, Brent crude for July 2024 settlement gained 29 cents or 0.35% to $83.08 a barrel.

Global Markets:

European shares declined while Asian shares ended mixed on Monday as investors kept a close eye on the latest U.S. inflation figures.

Chinese stocks faced additional downward pressure due to potential new U.S. trade tariffs. Several media outlets reported last week that the Biden administration is considering imposing import tariffs on specific sectors within China, including electric vehicles and solar energy technology.

Regional markets largely followed the muted performance of Wall Street on Friday, with investor focus shifting towards the upcoming U.S. inflation data which could impact future interest rate decisions.

Stocks in Spotlight:

Zomato fell 3.82%. The online food delivery platform reported consolidated net profit of Rs 175 crore in Q4 FY24 as against a net loss of Rs 188 crore posted in Q4 FY23. Revenue from operations soared 73.24% to Rs 3,562 crore in Q4 FY24 as compared with Rs 2,056 crore posted in corresponding quarter last year. Adjusted revenue stood at Rs 3,873 crore in Q4 FY24, up 6% QoQ and up 61% YoY.

Tata Motors slumped 8.34%. The auto major reported a consolidated net profit of Rs 17,528.59 crore in Q4 FY24, steeply higher from Rs 5,496.04 crore posted in Q4 FY23. Total revenue from operations increased 13.52% YoY to Rs 1,19,213.35 crore in the quarter ended 31 March 2024.

Meanwhile, the company's board has recommended a final dividend of Rs 6 per ordinary share and Rs 6.20 per ?A? ordinary share, for the financial year ended 31 March 2024. The dividend, if declared at the AGM, shall be paid to the eligible shareholders on or before 28 June 2024.

Mahindra & Mahindra fell 0.20%. The company said that its total production jumped 19.02% to 70,025 units in the month of April 2024 as compared with 58,830 units produced in the same period last year. The auto major's total sales stood at 68,614 units in April 2024, registering a growth of 13.44% on YoY basis. On the other hand, exports for the period under review rose 2.43% YoY to 1,857 units.

Varun Beverages rose 1%. The company said that its consolidated net profit jumped 24.9% to Rs 547.98 crore in Q1 CY24 as compared with Rs 438.57 crore in Q1 CY23. The growth in the net profit was driven by volume growth, increase in net realization and improved profit margins. Revenue from operations (excluding excise duty) increased 10.9% YoY to Rs 4,317.31 crore in Q1 CY24.

Piramal Pharma advanced 2.69% after the pharmaceutical company reported a consolidated net profit surged 102.1% to Rs 101.27 crore in Q4 FY24 as against Rs 50.11 crore posted in Q4 FY23. Revenue from operations grew by 17.97% year on year (YoY) to Rs 2,552.36 crore during the quarter, , driven by healthy growth in our CDMO and ICH businesses.

BEML rallied 14.64% after the company?s consolidated net profit jumped 62.85% to Rs 256.80 crore in Q4 FY24 as compared with Rs 157.69 crore in Q4 FY23. Revenue from operations increased 9.06% to Rs 1513.65 crore in Q4 FY24.

ABB India jumped 11.16% after the company?s net profit (from continuing operations) surged 87.46% to Rs 459.60 crore in Q1 CY24 as against Rs 245.17 crore recorded in Q1 CY23. The company?s total revenue from operations jumped 27.75% to Rs 3,080.36 crore in Q1 CY24 as compared to Rs 2,411.21 recorded in corresponding quarter last year.

Tube Investments of India slipped 3.88% after the company's consolidated net profit tumbled 49.82% to Rs 189.53 crore in Q4 FY24 as compared to Rs 311.78 crore recorded in Q4 FY23. However, revenue from operations jumped 18.86% to Rs 4,345 crore in 4,490.11 as against Rs 3,777.57 crore posted in Q4 FY23.

JK Cement advanced 2.58% after the cement maker's consolidated net profit zoomed 100.6% to Rs 219.75 crore in Q4 FY24 as compared to Rs 109.52 crore recorded in Q4 FY23. Revenue from operations jumped 11.8% year on year to Rs 3,105.77 crore in the quarter ended 31 March 2024.

Bank of India tumbled 10.33%. The state-run bank?s net profit increased 6.55% to Rs 1,438.91 crore on 8.24% rise in total income to Rs 17,913.03 crore in Q4 FY24 over Q4 FY23.

Union Bank of India slipped 3.98%. The public sector bank's standalone net profit rose 18.99% to Rs 3,310.55 crore on 13.87% increase in total income to Rs 31,057.52 crore in Q4 FY24 over Q4 FY23.

VIP Industries dropped 3.51% after the company reported consolidated net loss of Rs 23.88 crore in Q4 FY24 as against net loss of Rs 4.26 crore in Q4 FY23. Net sales increased 14.59% year on year (YoY) to Rs 516.32 crore in the quarter ended 31 March 2024.

Kalyan Jewellers declined 2.68%. The jewellery retailer?s consolidated net profit jumped 96.3% to Rs 137.59 crore on 34.09% increase in revenue from operations to Rs 4,534.93 crore in Q4 FY24 over Q4 FY23.

New Listing:

Shares of Indegene closed at Rs 570.65 on the BSE, representing a premium of 26.25% as compared with the issue price of Rs 452.

The scrip was listed at Rs 659.70, exhibiting a premium of 45.95% to the issue price.

The stock has hit a high of 659.70 and a low of 527.80. On the BSE, over 22.81 lakh shares of the company were traded in the counter.

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