Market Commentary - End-Session
Market Mayhem! Stocks plunge as election jitters collide with F&O expiry As on : 30-May-24  17:19

Domestic shares plunged today, dropping for the fifth consecutive session. The Nifty 50 closed below 22,500, battered by a brutal expiry of monthly F&O contracts. Metals, IT, and healthcare stocks led the bloodbath. Jittery investors, taking their cues from rising US interest rates, are also worried about the upcoming election results. With exit polls looming on Saturday, traders fear a steep correction if the results don't favor the current government.

The S&P BSE Sensex, was down 617.30 points or 0.83% to 73,885.60. The Nifty 50 index lost 216.05 points or 0.95% to 22,488.65.

In the broader market, the S&P BSE Mid-Cap index declined 1.21% and the S&P BSE Small-Cap index fell 1.33%, underperforming the main stock indices.

The market breadth was weak. On the BSE, 1098 shares rose and 2733 shares fell. A total of 86 shares were unchanged.

Monsoon Arrives in Kerala:

The Indian monsoon season has arrived early, with Kerala receiving its first rains on Thursday, a day sooner than predicted. The monsoon typically arrives in Kerala around June 1st and progresses northward over the following month. The India Meteorological Department predicts above-average rainfall for India this year.

Numbers to Track:

The yield on India's 10-year benchmark federal shed 0.03% to 7.006 as compared with previous close 7.008

In the foreign exchange market, the rupee is edged higher against the dollar. The partially convertible rupee was hovering at 83.3150, compared with its close of 83.4000 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement shed 0.60% to Rs 71,760.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.12% to 104.97.

The United States 10-year bond yield fell 0.60% to 4.595.

In the commodities market, Brent crude for July 2024 settlement lost 46 cents or 0.55% to $ 82.97 a barrel.

Global Markets:

The Dow Jones index futures were down 322 points, indicating a weak opening in the US stocks today.

European stocks advanced while Asian stocks ended lower on Thursday, mirroring declines in the US after another weak Treasury sale renewed concerns about higher yields.

Tepid demand in the $44 billion sale of seven-year US Treasuries initially caused them to fall across the curve. This raised concerns that funding the US deficit will drive up yields, especially with the Federal Reserve unlikely to cut rates soon.

Adding to these concerns, key US inflation data is due on Friday, including the PCE price index, the Federal Reserve's preferred inflation gauge. A revised reading on first-quarter US gross domestic product data is also due on Thursday. US indices fell on Wednesday, reflecting these anxieties. The S&P 500 fell 0.7%, the NASDAQ Composite fell 0.6%, and the Dow Jones Industrial Average fell 1.1%.

New Listing:

Shares of Awfis Space Solutions closed at Rs 419.10 on the BSE, representing a premium of 9.43% as compared with the issue price of Rs 383.

The scrip was listed at Rs 432.25, exhibiting a premium of 12.85% to the issue price.

The stock has hit a high of 451.45 and a low of 409.40. On the BSE, over 9.59 lakh shares of the company were traded in the counter.

Stocks in Spotlight:

Tata Steel fell 5.74% after the company?s consolidated net profit declined 64.59% to Rs 554.56 crore from Rs 1,566.24 crore posted in Q4 FY23. Revenue from operations fell 6.79% YoY to Rs 58,687.31 crore in Q4 FY24.

Cummins India tumbled 6.23%. The company reported 76.3% jump in standalone net profit to Rs 561.52 crore on 20.08% rise in revenue from operations to Rs 2,268.50 crore in Q4 FY24 over Q4 FY23.

KNR Constructions rallied 8.05% after the EPC company's consolidated net profit surged to Rs 340.61 crore in Q4 FY24 as against Rs 141.73 crore in Q4 FY23. Revenue from operations rose 13.54% year on year (YoY) to Rs 1,414 crore in the quarter ended 31 March 2024.

Godfrey Phillips India shed 0.43%. The cigarette maker?s consolidated net profit surged 45.59% to Rs 214.16 crore in Q4 FY24 as against Rs 147.10 crore posted in Q4 FY23. Revenue from operations (excluding excise duty) jumped 20% YoY to Rs 965.78 crore in the quarter ended 31 March 2024.

Meanwhile, the company?s board has recommended a final dividend of Rs 56 per share for the financial year ended 31 March 2024, subject to the approval of the shareholders.

Edelweiss Financial Services tumbled 12% after the Reserve Bank of India (RBI) announced severe business restrictions against ECL Finance and Edelweiss Asset Reconstruction Company, owing to material supervisory concerns.

Marksans Pharma dropped 13% after the pharmaco reported 6.12% decline in consolidated net profit to Rs 77.64 crore in Q4 FY24 from Rs 82.71 crore in Q4 FY23. Revenue from operations jumped 15.23% YoY to Rs 560.01 crore in Q4 FY24, driven by volume gains, new launches, addition of new customers, and increase in our share with existing customers.

SJVN slipped 4.40% after the company reported 56.04% drop in consolidated net profit to Rs 61.08 crore on 11.12% decline in revenue from operations to Rs 482.91 crore in Q4 FY24 over Q3 FY24.

Heritage Foods surged 9.6% after the company?s consolidated net profit zoomed 125.88% to Rs 40.5 crore in Q4 FY24 as against Rs 17.93 crore recorded in Q4 FY23. However, revenue from operations jumped 16.26% year on year to Rs 950.57 crore in the fourth quarter of FY24 as compared with Rs 817.6 crore posted in the corresponding quarter last year.

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