Market Commentary - End-Session
Market rises for 3rd day, Nifty ends above 22,200; Adani Enterprises +5% As on : 14-May-24  17:29

Domestic stocks rallied for a third straight day on Tuesday, shrugging off election jitters. The Nifty 50 closed above 22,200, fueled by buying in metals, autos, and oil & gas. While the wait-and-see approach dominates due to ongoing elections, a close above 73,000 on the Sensex is a bullish sign. However, caution lingers due to upcoming US inflation data as higher inflation could dampen rate cut hopes. Technically, the Nifty 50 needs to stay above 22,200 to maintain its upward climb.

The barometer index, the S&P BSE Sensex gained 328.48 points or 0.45% to 73,104.61. The Nifty 50 index jumped 113.80 points or 0.51% to 22,217.85.

Adani Enterprises (up 5.43%), Larsen & Toubro (up 2.54%) and Reliance Industries (up 1.23%) boosted the indices.

The broader market outperformed the key indices. The S&P BSE Mid-Cap index added 1.14% and the S&P BSE Small-Cap index gained 1.79%.

The market breadth was strong. On the BSE, 2,665 shares rose and 1,145 shares fell. A total of 113 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 1.96% to 20.20.

Economy:

India's inflation based on all India Wholesale Price Index (WPI) rises to a 13-month high of 1.26% (provisional), driven by food, electricity, and fuel costs. This is up from 0.53% in March.

India's inflation based based on all India Consumer Price Index (CPI) eases to 4.83% (provisional), with rural areas (5.43%) experiencing higher inflation than urban areas (4.11%). The CPI continues a downward trend from January (5.10%) and February (5.09%).

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.07% to 7.111 as compared with previous close 7.116.

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 shed 0.05% to Rs 72,550.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was flat at 105.23.

The United States 10-year bond yield lost 0.09% to 4.477.

In the commodities market, Brent crude for July 2024 settlement gained 8 cents or 0.10% to $83.44 a barrel.

Global Markets:

European and Asian markets lacked direction as investors wait for key US inflation reports this week.

Japan's wholesale inflation edged up slightly by 0.9% year-on-year in April.

US markets close mixed. The Dow Jones snapped its winning streak with a minor dip, while other major indexes ended mixed. Tech giants Apple and Alphabet rose despite early weakness. Meme stocks like GameStop, AMC, and Koss surged on speculation surrounding a potential social media return by Roaring Kitty Keith Gill.

Focus shifts to US inflation. This week's key events are the US Producer Price Index (PPI) on Tuesday and the Consumer Price Index (CPI) on Wednesday. These reports will heavily influence investor sentiment.

Stocks in Spotlight:

Cochin Shipyard surged 12.33% after the company wins a big European contract (Rs 500-1000 crore) to design and build a hybrid service vessel for offshore wind farms. The project is expected to be completed by the end of 2026.

Aarti Pharmalabs soared 19.5% after the company?s consolidated net profit jumped 52.2% to Rs 65.25 crore during the quarter as compared with Rs 42.87 crore posted in corresponding quarter last year. Revenue from operations increased 4.27% YoY to Rs 505.77 crore in Q4 FY24.

Ethos surged 5.14% after the company?s consolidated net profit surged 58.36% to Rs 21.03 crore in Q4 FY24 as against Rs 13.28 crore recorded in Q4 FY23. Revenue from operation jumped 21.66% to Rs 252.52 crore in Q4 FY24 as compared with Rs 207.57 crore posted in Q4 FY23.

Electrosteel Castings rallied 6.97% after the company?s consolidated net profit zoomed 153.92% to Rs 227.08 crore in Q4 FY24 as against Rs 89.43 crore posted in Q4 FY23. Revenue from operations grew by 7.04% year on year (YoY) to Rs 2,004.26 crore in the quarter ended 31 March 2024.

PVR Inox slipped 1.43%. The cinema chain operator's consolidated net loss stood at Rs 129.50 crore in Q4 March 2024 as against net loss of Rs 333.40 crore in Q4 March 2023. Net sales rose 9.90% YoY to Rs 1256.40 crore during the quarter.

Jindal Steel & Power jumped 4.33% after the company's consolidated net profit stood at Rs 933 crore , steeply higher than Rs 466 crore posted in corresponding quarter last year. Revenue from operations fell 1.5% to Rs 13,486.96 crore in Q4 FY24 as compared with Rs 13,691.93 crore in Q4 FY23.

Coromandel International gained 2.23% after the company acquires an additional 7% stake in drone manufacturer Dhaksha Unmanned Systems for Rs 150 crore.

Zydus Wellness rose 0.75%. The company reported 3.4% rise in net profit to Rs 150.3 crore on a 9.6% increase in net sales to Rs 778 crore in Q4 FY23 as compared with Q4 FY23.

Devyani International rose 0.87%. The company reported a consolidated net loss of Rs 7.46 crore in Q4 FY24 as against a net profit of Rs 60.72 crore recorded in Q4 FY23. However, revenue from operations jumped 38.69% year on year to Rs 1,047.08 crore in the quarter ended 31 March 2024.

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