Market Commentary - End-Session
Benchmarks correct for 4th day, Nifty ends below 22,000, VIX crosses 13 mark As on : 18-Apr-24  18:03

Domestic equity market experienced significant volatility on Thursday, extending their losing streak to a fourth consecutive day. Despite mixed global cues, the indices opened higher and remained positive in the first half of the trading session. However, the afternoon saw a surge in volatility, leading to a decline in both indices by the closing bell. The Nifty 50 closed below the 22,000 level after reaching a high of 22,326.50 earlier in the day. The expiry of weekly index options on the NSE contributed to the market's volatility. Sectors such as healthcare, oil & gas, and FMCG corrected sharply.

The barometer index, the S&P BSE Sensex, was slipped 454.69 points or 0.62% to 72,488.99. The Nifty 50 index lost 152.05 points or 0.69% to 21,995.85. In four trading sessions, the Sensex shed 3.40% while the Nifty 50 declined 3.33%.

Titan Company (down 3.31%), Adani Enterprises (down 2.77%) and HDFC Bank (down 0.98%) were major drags.

In the broader market, the S&P BSE Mid-Cap index declined 0.39% while the S&P BSE Small-Cap index gained 0.06%.

The market breadth was negative. On the BSE, 1,761 shares rose and 2,047 shares fell. A total of 121 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 3.36% to 13.04.

Economy:

The International Monetary Fund raised India?s FY25 GDP growth forecast by 30 bps to 6.8% from its January forecast of 6.5%, citing bullish domestic demand conditions and a rising working-age population. IMF sees India's FY26 GDP growth at 6.5%. The global financial agency sees India's retail inflation at 4.6% in FY25 and 4.2% in FY26.

Politics:

India is gearing up for its election in 2024. The BJP is looking to consolidate its grip on power as it aims for a historic third term while a band of opposition parties, including the Congress, has formed a united front called INDIA to deny PM Modi another victory. The elections will occur in 7 phases, starting on 19 April and ending on 1 June. The Lok Sabha elections 2024 results will declared on 4 June.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.24% to 7.176 as compared with previous close 7.193.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.5525, compared with its close of 83.6150 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement rose 0.18% to Rs 72,655.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.05% to 105.89.

The United States 10-year bond yield fell 0.28% to 4.571.

In the commodities market, Brent crude for June 2024 settlement lost 89 cents or 1.02% to $86.40 a barrel.

Global Markets:

Dow Jones index futures were up 120 points, indicating a firm opening in the US stocks today.

Sharres in Europe and Asia advanced on Thursday.

Investors will assess Australia's unemployment rate, which is one of the metrics the country?s central bank weighs when considering monetary policy.

US stocks closed lower on Wednesday as crude prices tumbled and investors weighed cautious US Federal Reserve commentary and ongoing geopolitical strife against mixed quarterly earnings.

The U.S. economy grew slightly over the past six weeks while price increases moved at a modest pace and employment showed slight gains as well, the Federal Reserve said in its latest Beige Book report filed Wednesday.

Stocks in Spotlight:

Bajaj Auto rose 1.11%. The auto major?s standalone net profit jumped 35.11% to Rs 1,936 crore on 28.97% rise in revenue from operations to Rs 11,484.68 crore in Q4 FY24 over Q4 FY23. The revenue growth was led by the broad based buoyancy that was sustained on the domestic business and aided by steady exports, notwithstanding the continued challenges in overseas markets. Meanwhile, the company?s board has approved a final dividend of Rs 80 per share for FY24. The record date for the dividend is Friday, 14 June 2024.

Infosys rose 0.41%. The IT major reported a strong 30% year-over-year increase in its net profit for the quarter ending March 2024. The company's net profit reached Rs 7,969 crore, compared to Rs 6,128 crore in the same quarter last year. Revenue also grew slightly, with revenue from operations reaching Rs 37,923 crore, up 1% from the previous year's quarter.

Infosys forecasts its constant currency revenue growth to be in the range of 1-3% for FY25. The company also expects operating margins to stay between 20-22% during the current fiscal year.

The company's board has recommended a final dividend of Rs 20 per share for FY24, along with an additional special dividend of Rs 8 per share.

Nestle India declined 3.31%, following news reports that the company added sugar to its Cerelac baby cereal in India, but not in its main European and UK markets.

In a joint investigation between Public Eye and International Baby Food Action Network (IBFAN) sent baby food samples in Asia, Latin America, and Africa from Nestle to a testing laboratory in Belgium. The study said that Nestle added the sugar equivalent to an average of 4 gram per sugar cube in wheat-based cereals, Cerelac. It is made for children aged between six months and two years.

Just Dial surged 13% after the company?s net profit jumped 38.02% to Rs 115.65 crore on 16.23% rise in revenue from operations to Rs 270.27 crore in Q4 FY24 over Q4 FY23. Operating EBITDA margin improved to 26.1% in Q4 FY24 as compared to 14.4% recorded in Q4 FY23. The growth in the margin was led by topline growth and cost efficiencies, both on employee costs and other expenses. During the quarter, collections stood at Rs 305.3 crore, up 13.8% YoY. Consequently, deferred revenue was at Rs 507.7 crore in Q4 FY24, up 15.9% YoY.

Angel One shed 2.09%. The brokerage company reported 27.34% rise in consolidated net profit (from continuing operations) to Rs 339.95 crore in Q4 FY24 as against Rs 266.97 crore recorded in Q4 FY23. Total income climbed 63.46% to Rs 1,358.54 crore in Q4 FY24 from Rs 831.09 crore recorded in the corresponding quarter previous year.

Biocon rose 1.60% after the company has signed a licensing and supply agreement with Biomm S.A., for the commercialization of Semaglutide (gOzempic), which is used to improve glycemic control in adults with type-2 diabetes.

Power Grid Corporation of India advanced 2.13% after its board has approved the raising of bonds as POWERGRID bonds issue(s) upto Rs 12,000 crore during FY 2024-25.

Further, the power ? transmission firm has been declared as the successful bidder under tariff based competitive bidding to establish inter-state transmission system for three projects on build, own operate and transfer (BOOT) basis. Additionally, the company has also received letters of Intent (LoI) for the same projects.

Jubilant Pharmova gained 4.47% after Jubilant Generics received a communication from the US drug regulator, which determined the inspection classification of its Roorkee facility as ?Voluntary Action Indicated (VAI)?.

Meanwhile, the pharma company informed that its subsidiary, Jubilant Cadista Pharmaceuticals Inc., USA has decided to close the manufacturing operations of its solid dosage formulation facility at Salisbury, Maryland, USA. The expected date of cessation of manufacturing operation and first separations at the said facility will be on 17 June 2024.

Brigade Enterprises rallied 4.06% after the company announced that it has achieved pre- sales of Rs 2,243 crore in Q4 FY24. The company?s sales volume stood at Rs 2.72 million square feet (sq.ft) in Q4 FY24.

Sterling Tools zoomed 8.52% after the company announced the signing of a memorandum of understanding (MoU) with South Korea?s Yongin Electronics Company for setting up new greenfield manufacturing facility for EV components.

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