Market Commentary - End-Session
Nifty ends near 22600, FMCG shares rally As on : 22-May-24  17:46

The benchmark indices clawed their way back today, with the Nifty closing near 22,600 despite early weakness. FMCG stocks were the flavor of the day, buoyed by monsoon optimism. Metal and banking shares, however, remained lackluster. The positive momentum comes despite global jitters ahead of the US Fed minutes release. Investors seem optimistic about reduced election worries, but foreign investors remain cautious on the sidelines awaiting the election outcome.

In the barometer index, the S&P BSE Sensex, was up 267.75 points or 0.36% to 74,221.06. The Nifty 50 added 68.75 points or 0.31% to 22,597.80.

Hindustan Unilever (up 2.45%), Reliance Industries (up 1.72%), Infosys (up 1.43%) and ITC (up 1.10%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index shed 0.05% and the S&P BSE Small-Cap index rose 0.18%.

The market breadth was negative. On the BSE, 1826 shares rose and 2018 shares fell. A total of 104 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 1.57% to 21.47.

Economy:

The Reserve Bank of India (RBI) announced a transfer of Rs 2.11 lakh crore to the government for the financial year 2023-24. This represents the highest surplus transfer on record by the central bank. This surplus will be reflected in the government's accounts for the financial year 2024-25, providing a significant boost to their fiscal position.

Numbers to Track:

The yield on India's 10-year benchmark federal paper declined 0.93% to 7.012 as compared with previous close 7.013.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.2825, compared with its close of 83.3125 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement fell 0.49% to Rs 74,433.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.05% to 104.71.

The United States 10-year bond yield added 0.57% to 4.440.

In the commodities market, Brent crude for July 2024 settlement declined 0.61 cents or 0.74% to $82.27 a barrel.

Global Markets:

European stocks declined while Asian stocks ended mixed on Wednesday. Investors, on edge, held onto hope that tech giant Nvidia could deliver on lofty expectations. However, concerns lingered regarding potential interest rate increases by both the US Federal Reserve and the Bank of England.

The release of the Federal Reserve meeting minutes later today is expected to reaffirm the possibility of a rate cut. Nevertheless, policymakers require further assurance that inflation is definitively on a downward path before implementing such a move.

UK inflation figures, also due out today, could sway the Bank of England's decision on rate adjustments. This data may determine whether they choose to ease rates in June or postpone it until August.

US stocks ended Tuesday with modest gains in the absence of significant market movers. All three major indexes rose, with the S&P 500 and Nasdaq reaching all-time closing highs in anticipation of both Nvidia's earnings report and the release of the Fed meeting minutes.

Stocks in Spotlight:

Reliance Industries added 1.72% after the company entered into licensing agreement with Nel ASA for manufacturing Nel?s alkaline electrolysers in India and for captive purposes globally. Through the agreement, Reliance gets access to Nel?s proven technology platform for manufacturing electrolysers.

One 97 Communications (Paytm) declined 4.86% after the company?s consolidated net loss widened to Rs 549.6 crore in Q4 FY24 as compared with Rs 168.4 crore posted in Q4 FY23.Revenue from operations was at Rs 2267.1 crore in March quarter, down 2.89% from Rs 2334.5 crore recorded in the corresponding quarter last year. Paytm said that its quarterly result was impacted by temporary disruption on account of UPI transition etc. and permanent disruption because of PPBL embargo.

Spicejet advanced 1.67% after the company won a court case against its former promoter, Kalanithi Maran, and his company KAL Airways. This means SpiceJet can get back most of the Rs 730 crore it had paid them earlier. The court decision allows SpiceJet to seek a refund of Rs 450 crore.

Bharat Heavy Electricals (BHEL) dropped 5.42% after The heavy electrical equipment manufacturer's net profit declined by 24.92% to Rs 484.36 in Q4 FY24 as compared with Rs 645.13 crore posted in Q4 FY23. The company?s net sales rose 0.83% to Rs 7,883.88 crore in the quarter ended 31 March 2024 as compared to Rs 7,819.37 crore recorded in Q4 FY24.

Gulf Oil Lubricants India soared 11.56% after the company?s standalone net profit jumped 37.41% to Rs 85.43 crore in Q4 FY24 as compared to Rs 62.17 crore posted in Q4 FY23. Revenue from operations grew by 7.67% year on year to Rs 852.82 crore during the quarter.

H G Infra Engineering surged 8.87% after the company announced that they emerged as the L-1 (lowest) bidder for two tenders floated by the Maharashtra State Road Development Corporation (MSRPC).

Gujarat State Fertilizers & Chemicals (GSFC) slumped 8.20%. The fertilizer maker?s consolidated net profit tumbled 89.01% to Rs 24.71 crore on 17.56% fall in revenue from operations to Rs 1,965.25 crore in Q4 FY24 over Q4 FY23.

G R Infraprojects advanced 3.48% after the company announced that it has emerged as L-1 bidder for two tenders worth Rs 4,346.14 crore floated by the Maharashtra State Road Development Corporation.

Greenply Industries advanced 1.10% after the company's consolidated net profit surged to Rs 28.36 crore in Q4 FY24 as compared with Rs 11.07 crore in Q4 FY23. Revenue from operations jumped 40.4% year on year (YoY) to Rs 599.79 crore in the quarter ended 31 March 2024.

Metropolis Healthcare added 2.76% after the company?s consolidated net profit increased 7.9% to Rs 36.1 crore in Q4 FY24 as compared with Rs 33.5 crore in Q4 FY23. Revenue from operations increased 17.7% to Rs 331 crore in Q4 FY24, compared to Rs 282.5 crore in Q4 FY23.

Welspun Enterprises (WEL) rallied 6.58% after the company emerged as lowest (L1) bidder for a construction work worth Rs 1,864.71 crore from Maharashtra State Road Development Corporation (MSRDC).

IPO Update:

The initial public offer (IPO) of Awfis Space Solutions received 78,92,508 bids for shares as against 86,29,670 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (22 May 2024). The issue was subscribed 91%.

The issue opened for bidding on 22 May 2024 and it will close on 27 May 2024. The price band of the IPO is fixed between Rs 364 to Rs 383 per share. An investor can bid for a minimum of 39 equity shares and in multiples thereof.

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