Market Commentary - End-Session
Indices rise for 2nd day, Nifty ends above 22,450, M&M spurts 6% As on : 17-May-24  17:36

Domestic stock market climbed for a second day, shrugging off mixed global cues. The Nifty closed above 22,450 after early wobbles. Bargain hunters swooped in on sectors like autos and consumer durables, while positive Q4 earnings from select companies boosted sentiment. The broader market's outperformance and continued buying in mid- and small-caps added fuel to the fire.

The barometer index, the S&P BSE Sensex gained 253.31 points or 0.34% to 73,917.03. The Nifty 50 index added 62.25 points or 0.28% to 22,466.10.

Mahindra & Mahindra (up 5.97%), JSW Steel (up 2.36%) and Reliance Industries (up 0.72%) boosted the indices.

The broader market outperformed the key indices. The S&P BSE Mid-Cap index added 1.18% and the S&P BSE Small-Cap index rose 1.39%.

The market breadth was strong. On the BSE, 2,345 shares rose and 1,479 shares fell. A total of 115 shares were unchanged.

The National Stock Exchange and Bombay Stock Exchange will hold a special live trading session on Saturday, 18 May 2024, in the equity and equity derivative segments with an intra-day switchover from the Primary site to the Disaster Recovery site. The special session would be divided into two parts ? the first session will begin at 9:15 am and conclude at 10 am, followed by another session starting at 11:30 am and ending at 12:30 pm.

Economy:

The United Nations predicts India's economy will grow at 6.9% in 2024 and 6.6% in 2025. This is due to strong government spending and continued consumer spending. Some exports may decline, but pharmaceuticals and chemicals should do well. Inflation is expected to fall to 4.5% in 2024, which is within the central bank's target range.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.31% to 7.098 as compared with previous close 7.076.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.3350, compared with its close of 83.5050 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement shed 0.04% to Rs 72,952.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.27% to 104.74.

The United States 10-year bond yield added 0.37% to 4.391.

In the commodities market, Brent crude for July 2024 settlement gained 20 cents or 0.24% to $83.47 a barrel.

Global Markets:

European stocks declined while most Asian stocks rose on Friday as investors weighed the Federal Reserve's monetary policy path. Fed officials signaled interest rates might stay elevated for longer despite signs of easing inflation.

China's industrial production grew 6.7% year-on-year in April, accelerating from March's 4.5% rise, according to data from the National Bureau of Statistics. However, consumer spending remained weak, with retail sales growing 2.3% year-on-year in April, down from March's 3.1% increase.

US stocks closed slightly lower on Thursday after the Dow Jones reached an intra-day high of 40,000 for the first time. The rally followed recalibrated investor expectations for Fed rate cuts after April's inflation slowdown. Strong corporate earnings also contributed to the bullish sentiment.

On Thursday, the US weekly Initial Jobless Claims for the week ending May 11 came in at 222,000 from the previous week of 232,000, according to the US Bureau of Labor Statistics (BLS). Housing Starts climbed 5.7% MoM to 1.36 million in April, while Building Permits declined by 3% MoM in April to 1.44 million.

Stocks in Spotlight:

Vedanta added 2.15% after the mining company on Thursday, 16 May 2024 announced that its board has approved to raise funds up to Rs 8,500 crore by various financial instruments.

Vedanta's board also declared a dividend of Rs 11 per share for the financial year 2024-25.The record date for the purpose of payment of dividend shall be Saturday, 25 May, 2024.

Kaynes Technology India hit an upper circuit of 20% after the company?s consolidated net profit jumped 96.8% to Rs 813 crore from Rs 413 crore posted in same quarter last year. Revenue from operations increased 74.8% YoY to Rs 637.3 crore in Q4 FY24.

Vodafone Idea rose 0.76%. The telecom service provider?s consolidated net loss widened to Rs 7,674.6 crore in Q4 FY24 as compared with Rs 6,418.9 crore in Q4 FY23. Revenue from operations increased marginally to Rs 10,606.8 crore in Q4 FY24 as against Rs 10,531.9 crore posted in Q4 FY23, aided by improving subscriber mix, 4G subscriber additions and change in entry level plan.

Indian Hume Pipe soared 17.61% after the company?s consolidated net profit surged to Rs 43.66 crore in Q4 FY24 as compared with Rs 16.01 crore posted in Q4 FY23. Revenue from operations fell 11% to Rs 404.28 crore in Q4 FY24 as compared with Rs 454.20 crore in Q4 FY23.

Container Corporation of India (CONCOR) gained 4.80% after the company?s consolidated net profit rose 13.51% to Rs 316.93 crore in Q4 FY24 as compared to Rs 279.20 crore posted in Q4 FY23. Revenue from operations grew by 6.45% year on year to Rs 2,325.13 crore during the quarter.

Endurance Technologies jumped 7% after the auto ancillary company?s consolidated net profit jumped 54% to Rs 210.15 crore on 20.16% rise in revenue from operations to Rs 2,684.78 crore in Q4 FY24 over Q4 FY23.

Restaurant Brands Asia advanced 3.20%. The company reported consolidated net loss of Rs 92.09 crore in Q4 FY24 as compared with net loss of Rs 79.95 crore in Q4 FY23. Revenue from operations jumped 16.319% YoY to Rs 597.14 crore in Q4 FY24.

JK Paper?s jumped 7.75%. The company?s consolidated net profit fell 1.74% to Rs 278.60 crore in Q4 FY24 as against Rs 283.52 crore posted in same quarter last year. Revenue from operations declined marginally to Rs 1,718.61 crore in the quarter ended 31 March 2024.

Ratnamani Metals & Tubes advanced 3.07% after the company?s consolidated net profit rose marginally to Rs 192.16 crore in Q4 FY24 as compared with Rs 191.55 crore in Q4 FY23. Revenue from operations stood at Rs 1,495.70 crore in the March 2024 quarter, registering a marginal decline on YoY basis.

IPO Update:

The initial public offer of Go Digit General Insurance received bids for 50,76,21,455 shares as against 5,28,69,677 shares on offer, according to stock exchange data at 17:00 IST on Friday (17 May 2024). The issue was subscribed 9.60 times.

The issue opened for bidding on Wednesday (15 May 2024) and it will close on Friday (17 May 2024). The price band of the IPO is fixed at Rs 258-272 per share. An investor can bid for a minimum of 55 equity shares and in multiples thereof.

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