Market Commentary - End-Session
Nifty vaults past 22,400 as market stages dramatic rebound As on : 16-May-24  17:06

Domestic equity benchmarks took a wild ride today, bucking the global trend and finishing nearly 1% higher despite early jitters. The day was volatile thanks to weekly index options expiry, sending the Nifty 50 bouncing off its lows of 22,054.55 to close above 22,400. Sectors like consumer durables, IT, and realty were hot, while PSU banks lagged behind. However, worries about FII selling and upcoming election results persist.

The barometer index, the S&P BSE Sensex gained 676.69 points or 0.93% to 73,663.72. The Nifty 50 index added 203.30 points or 0.92% to 22,403.85.

The broader market outperformed the key indices. The S&P BSE Mid-Cap index added 1.07% and the S&P BSE Small-Cap index rose 0.85%.

The market breadth was positive. On the BSE, 2,125 shares rose and 1,706 shares fell. A total of 121 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 1.36% to 20.

Economy:

India's exports grew slightly (1%) in April to $35 billion, but imports rose faster (10%) leading to a wider trade deficit of $19.1 billion. This deficit is the highest in four months. Positive signs are growth in exports of electronics, chemicals, and pharmaceuticals despite global economic challenges. The wider trade deficit is partly due to a jump in gold imports.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.14% to 7.076 as compared with previous close 7.086.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.5050, compared with its close of 83.4650 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement shed 0.14% to Rs 73,000.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.06% to 104.40.

The United States 10-year bond yield lost 0.34% to 4.338.

In the commodities market, Brent crude for July 2024 settlement lost 33 cents or 0.40% to $82.42 a barrel.

Global Markets:

European stocks dipped on Thursday as investors focused on upcoming earnings reports. This cautious approach contrasted with the positive sentiment in Asia, where markets advanced following record highs on Wall Street.

The Asian rally was fueled by hopes of a potential interest rate cut in the US. This optimism stemmed from Wednesday's data release, which showed US consumer inflation (CPI) rising at a slightly slower pace than expected in April. While inflation remains above the Federal Reserve's target, the slowdown sparked hope for a policy shift by the Fed.

This positive sentiment from Wall Street outweighed negative news in Asia, including a shrinking Japanese economy and rising US-China trade tensions. Japan's GDP contracted by 0.5% in the first quarter of 2024, a sharp reversal from the previous quarter's modest growth.

Stocks in Spotlight:

Somany Ceramics soared 16% after the company?s consolidated net profit climbed 38.85% to Rs 33.88 crore in Q4 FY24 as compared with Rs 24.40 crore in Q4 FY23. Revenue from operations increased 8.34% YoY to Rs 731.81 crore during the quarter.

Texmaco Rail & Engineering rallied 6.54% after the company?s consolidated net profit stood at Rs 45.32 crore in Q4 FY24, steeply higher than Rs 18.33 crore in Q4 FY23. Revenue from operations increased 37.03% to Rs 1,144.56 crore in fourth quarter of FY24 from Rs 835.27 crore recorded in the corresponding quarter previous year.

Titagarh Rail Systems (TSRL) zoomed 9.12% after its standalone net profit surged 57.35% to Rs 83.41 crore in Q4 FY24 as against to Rs 53.01 crore posted in Q4 FY23. Revenue from operations increased 8.03% to Rs 1,052.41 crore in fourth quarter of FY24 from Rs 974.22 crore recorded in the corresponding quarter previous year.

NCC surged 8.66% after the company?s consolidated net profit jumped 25.30% to Rs 239.16 crore in Q4 FY24 as compared with Rs 190.86 crore recorded in Q4 FY23. Revenue from operations increased 31.03% to Rs 6,484.88 crore in Q4 FY24 as compared to Rs 4,949.03 crore posted in Q4 FY23.

Honeywell Automation India rallied 13.4% after the company reported 32.3% rise in 148.2 crore on a 11.9% increase in revenue from operations to Rs 950.7 crore in Q4 FY24 as compared with Q4 FY23.

Hindustan Aeronautics (HAL) rallied 10% after the company?s consolidated jumped 52.19% to Rs 4308.68 crore in Q4 FY24 as compared with Rs 2831.19 crore posted in Q4 FY23. Revenue from operations increased 18.36% YoY to Rs 14,788.75 crore during the quarter.

Dixon Technologies (India) added 1.95% after the company reported 20.68% rise in consolidated net profit to Rs 97.30 crore in Q4 FY24 from Rs 80.62 crore posted in Q4 FY23. Revenue from operations grew by 51.95% YoY to Rs 4,657.97 crore in the quarter ended 31 March 2024.

Indian Energy Exchange (IEX) rose 1.68% after the company?s consolidated net profit rose 9.45% to Rs 96.69 crore on 13.31% increase in revenue from operations to Rs 121.28 crore in Q4 FY24 over Q4 FY23.

CMS Info Systems added 3.64% after the company's consolidated net profit increased 14.38% to Rs 91.42 crore on 25.05% jump in revenue from operations to Rs 627.08 crore in Q4 FY24 over Q4 FY23.

IPO Update:

The initial public offer of Go Digit General Insurance received bids for 3,74,41,910 shares as against 5,28,69,677 shares on offer, according to stock exchange data at 17:00 IST on Thursday (16 May 2024). The issue was subscribed 71%.

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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