Market Commentary - End-Session
Sensex corrects 189 pts, Nifty holds 22,600, VIX climbs 5% As on : 30-Apr-24  17:28

Domestic equity benchmarks surrendered early gains and closed moderately lower on Tuesday. The S&P BSE Sensex fell 188.50 points or 0.25% to 74,482.78, while the Nifty 50 slipped 38.55 points or 0.17% to 22,604.85.

After a strong rally in the previous few days and a shortened trading week due to a holiday, investors opted for profit booking, leading to a decline in closing prices. HDFC Bank and ICICI Bank, both financial giants, weighed heavily on the indices. Declines in metal and IT stocks further dampened investor sentiment. However, auto and realty shares rallied.

TCS (down 1.24%), Infosys (down 0.97%), HDFC Bank (down 0.77%) and ICICI Bank (down 0.58%) were major drags.

The Nifty 50 and Bank Nifty clocked all-time highs of 22,783.35 and 49,974.75, respectively early today.

Mixed signals from global markets ahead of the US Federal Reserve policy meeting added to the cautiousness. While markets seem to have priced in a low likelihood of an immediate rate cut, the upcoming decision still lingered in the background.

In the broader market, the S&P BSE Mid-Cap index rose 0.49% and the S&P BSE Small-Cap index added 0.10%.

The market breadth was negative. On the BSE, 1804 shares rose and 2014 shares fell. A total of 132 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 5.19% to 12.87.

The stock exchanges will remain closed on Wednesday, 1 May 2024, on account of Maharashtra Day.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.10% to 7.203 as compared with previous close 7.196.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.4100, compared with its close of 83.4550 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement shed 0.90% to Rs 70,957.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.11% to 105.69.

The United States 10-year bond yield added 0.48% to 4.637.

In the commodities market, Brent crude for June 2024 settlement gained 20 cents or 0.23% to $87.40 a barrel.

Global Markets:

European stocks declined on Tuesday after Euro Zone inflation came flat at 2.4%. Market expectation is mounting for the European Central Bank to start cutting interest rates at its next monetary policy meeting on June 6.

Asian market ended higher. China?s factory activity climbed faster than expected in April, with the official purchasing managers? index coming at 50.4. Factory activity expansion was lower than the 50.8 seen in March.

US stocks closed higher Monday, lifted by Tesla, while traders geared up for a week dominated by corporate earnings and a Federal Reserve meeting.  

Listing:

Shares of JNK India were ended at Rs 693.95 on the BSE, representing a premium of 67.22% as compared with the issue price of Rs 415.

The scrip was listed at Rs 620, exhibiting a premium of 49.4% to the issue price.

The stock has hit a high of 712 and a low of 620. On the BSE, 14.37 lakh shares of the company were traded in the counter.

Stocks in Spotlight:

Mahindra & Mahindra rose 4.53% after launching its new compact SUV, the XUV 3XO. Prices start at Rs 7.49 lakh.

Jana Small Finance surged 20% after its management said it would apply for a universal bank license by next year.

KFin Technologies gained 6.48% after the company?s consolidated net profit jumped 30.61% to Rs 74.47 crore in Q4 FY24 as against 57.01 crore recorded in Q4 FY23. Revenue from operation increased 24.68% year on year (YoY) to Rs 228.34 crore in the quarter ended 31 March 2024. During the quarter, EBITDA stood at Rs 104.6 crore, registering a growth of 24.8% as against Rs 83.83 crore recorded in Q4 FY23. EBITDA margin rose by 3 basis points YoY to 45.8% in Q4 FY24.

Manappuram Finance rallied 1.75% after subsidiary Asirvad Micro Finance got a nod from Sebi to raise funds through an IPO.

Bajaj Consumer Care rose 1.41% as its board will consider a share buyback proposal on May 8th.

Patanjali Foods dropped 3.41% after reports said it was under the scanner for GST evasion.

Vesuvius India rallied 4.22% after the company reported a 58.7% jump in net profit to Rs 68.78 crore in Q1 CY24 from Rs 43.35 crore in Q1 CY23. Net sales increased by 23.9% YoY to Rs 453.09 crore during the period under review.

UCO Bank fell 1.98%. The private lender?s standalone net profit declined 9.54% to Rs 525.77 crore in Q4 FY24 as compared to Rs 581.24 crore reported in Q4 FY23. However, total income grew 17.45% to Rs 6,984.61 crore in the quarter ended 31 March 2024.

Birlasoft slipped 3.62%. The company said that its consolidated net profit jumped 11.82% to Rs 180.08 crore in Q4 FY24 as compared with Rs 161.05 crore in Q3 FY24. Revenue from operations rose 1.46% QoQ to Rs 1,362.54 crore in the quarter ended 31 March 2024.

Gillette India surged 7.23%. The company reported 3.5% decline in net profit to Rs 99.09 crore in the third quarter ended 31 march 2024 as against Rs 102.70 crore recorded in the same period a year ago. Revenue from operations grew by 10% year on year to Rs 680.74 crore in the quarter ended 31 March 2024.

Newgen Software Technologies surged 7.36% after the company?s consolidated net profit jumped 54.02% to Rs 105.27 crore on 15.95% rise in revenue from operation to Rs 375.27 crore in Q4 FY24 over Q3 FY24.

Can Fin Homes advanced 2.22% after the housing finance firm reported 26.07% rise in net profit to Rs 209.03 crore on 21.37% increase in total income from operations to Rs 927.64 crore in Q4 FY24 as compared with Q4 FY23.

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