Market Commentary - End-Session
Indices snap 5-day streak, Nifty settles at 22,419.95; Bajaj twins slump post Q4 As on : 26-Apr-24  17:21

Domestic stock market took a breather today, ending a five-day winning run. Investors cashed in profits after US economic data showed a slowdown in growth coupled with stubborn inflation. The Nifty fell below 22,450, despite early gains. While consumer durables and media shares found buyers, banking and financials took a hit.

The barometer index, the S&P BSE Sensex dropped 609.28 points or 0.82% to 73,730.16. The Nifty 50 index declined 150.40 points or 0.67% to 22,419.95.

Bajaj Finance (down 7.73%), Bajaj Finserv (down 3.55%) and Nestle India (down 3.08%) were major drags.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.83% and the S&P BSE Small-Cap index added 0.27%.

The market breadth was positive. On the BSE, 1920 shares rose and 1866 shares fell. A total of 127 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 1.81% to 10.93.

Politics:

The second phase of voting for the Lok Sabha elections 2024 were held today across 89 constituencies in 13 states and Union territories. The BJP aims for a third consecutive term, while the opposition, including the Congress, has formed the Indian National Developmental Inclusive Alliance (INDIA) bloc to oppose PM Modi's re-election. These elections span over seven phases from April 19 to June 1, and the results will be announced on June 4.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.03% to 7.206 as compared with previous close 7.204.

In the foreign exchange market, the rupee is edged lower against the dollar. The partially convertible rupee was hovering at 83.3650, compared with its close of 83.2800 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement added 0.55% to Rs 71,699.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.09% to 105.69.

The United States 10-year bond yield fell 0.23% to 4.699.

In the commodities market, Brent crude for June 2024 settlement gained 30 cents or 0.34% to $89.31 a barrel.

Global Markets:

European markets rose on Friday, while most Asian stocks closed higher.

The Bank of Japan (BOJ) left its monetary policy unchanged, maintaining its benchmark interest rate at 0%-0.1%. The BOJ has revised its inflation expectations for fiscal 2024 upwards, projecting inflation between 2.5% and 3%, compared to the 2.2% to 2.5% range forecast in January.

U.S. stocks fell on Thursday in response to data indicating a significant slowdown in economic growth alongside persistent inflation.

The U.S. economy grew at its slowest pace in two years last quarter, as consumer and government spending cooled amid a surge in inflation. The U.S. gross domestic product (GDP) grew at an annualized rate of 1.6% in the first quarter of 2024, down from a 3.4% growth rate in the previous quarter.

Inflationary pressures intensified, with the personal consumption expenditures (PCE) price index, excluding food and energy, rising at a 3.7% annual rate, following a 2% increase in the fourth quarter.

Stocks in Spotlight:

Bajaj Finance tumbled 7.73% after the NBFC?s loan losses and provisions jumped 53% to Rs 1,310 crore in Q4 FY24. The non-banking financial company (NBFC) reported 21.11% increase in consolidated net profit to Rs 3,824.53 crore on a 31.36% jump in total income to Rs 14,931.98 crore in Q4 FY24 as compared with Q4 FY23.

Bajaj Finserv slipped 3.55%. The NBFC said that its consolidated net profit jumped 20% to Rs 2118.53 crore in Q4 FY24 as compared with Rs 1768.95 crore in Q4 FY23. Total income increased 35.63% YoY to Rs 32041.93 crore in Q4 FY24. Profit before tax stood at Rs 5526.54 crore in the quarter ended 31 March 2024, up 21.72% as compared with Rs 4,540.46 crore in Q4 FY23.

Motilal Oswal Financial Services rallied 5.57% after the company?s consolidated operating profit after tax stood at Rs 495 crore in Q4 FY24, up 66% YoY. Operating revenue jumped 60% YoY to Rs 1,569 crore in Q4 FY24. Further, the board recommended issuing 3 bonus shares for each existing equity share held (3:1).

Tech Mahindra surged 7.34% after the IT major's consolidated net profit jumped 29.51% to Rs 661 crore in Q4 FY24 as against Rs 510.4 crore reported in Q3 FY24. Revenue from operations stood at Rs 12,871.3 crore in the March quarter, down 1.76% from Rs 13,101.3 crore recorded in the preceding quarter of FY24.

L&T Technology Services dropped 7.78%. The company said that its consolidated net profit increased 1.4% to Rs 340.9 crore in Q4 FY24 as compared with Rs 336.2 crore in Q3 FY24. Revenue from operations jumped 7.04% to Rs 2,537.5 crore in the quarter ended 31 March 2024 as compared with Rs 2,370.6 crore in the quarter ended 31 December 2023.

IndusInd Bank slipped 3.36%. The private lender's standalone net profit increased 15.01% to Rs 2,346.84 crore on 20.77% rise in total income to Rs 14,699.01 crore in Q4 FY24 over Q4 FY23.

Cyient declined 1.55%. The IT major reported 28.53% rise in consolidated net profit to Rs 189.2 crore on 2.16% increase in revenue from operations to Rs 1,860.8 crore in Q4 FY24 over Q3 FY24.

Zensar Technologies jumped 7.96% after the company?s consolidated net profit jumped 7.17% to Rs 173.3 crore in Q4 FY24 as compared with Rs 161.7 crore in Q3 FY24. Revenue from operations increased 1.41% QoQ to Rs 1,229.7 crore in Q4 FY24.

Supreme Industries advanced 2.34%. The company reported 1.28% fall in consolidated net profit to Rs 354.82 crore on a 15.95% increase in total consolidated income to Rs 3,025.98 crore in Q4 FY24 over Q4 FY23.

Som Distilleries & Breweries lost 2.54%. The company?s consolidated net profit jumped 17.97% to Rs 18.84 crore in Q4 FY24 as compared with Rs 15.97 crore in Q4 FY23. Revenue from operations (excluding excise duty) jumped 43.27% to Rs 381.59 crore in Q4 FY24 as compared with Rs 266.34 crore posted in same quarter last year.

Schaeffler India added 1.88% after the company has reported 3.8% rise in standalone net profit to Rs 227.67 crore on a 9.2% increase in net sales to Rs 1,849.22 crore in Q4 FY24 as compared with Q4 FY23.

Olectra Greentech lost 3.66% after the company reported 49.2% drop in consolidated net profit to Rs 13.71 crore in Q4 FY24 from Rs 27.01 crore in Q4 FY24. Net sales declined by 23.2% YoY to Rs 288.81 crore during the period under review.

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