Resilient Indian Market Despite Weak Global Peers

NiftyTrader • April 5, 2023

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Index	Price	Change	% Chg
NIFTY 50	17,557.05	+159.00	+0.91%
NIFTY BANK	40,999.15	+186.10	+0.46%
BSE SENSEX	59,689.31	+582.87	+0.99%

Daily closing price, change and % change of benchmark indices.

At the close, the Nifty 50 was at 17,557.05 up by 0.91%

(NSE) Nifty 50 index had a positive day of trading. The index opened higher than its previous closing price and increased by 0.91 percent over the course of the day. It ultimately closed in the green, indicating that the index finished the day higher than its opening price. Additionally, the Nifty 50 index ended the day above the 17,500 level, which is a positive sign for the market.

On Wednesday, the market exhibited bullish behavior as financial services saw a surge in value, a day ahead of the Reserve Bank of India’s (RBI) interest rate decision. Furthermore, positive updates for Q4FY23 contributed to the overall optimism. In addition, the buying momentum of IT, HUL, and ITC shares provided additional support to the market.

Bank Nifty: Up by 0.46%

On April 5, 2023, the Bank Nifty and the BSE Sensex both had a positive day of trading. The Bank Nifty, which is an index of the most liquid and large capitalization banking stocks listed on the National Stock Exchange (NSE), opened in the green and increased by 0.46 percent throughout the day. It ultimately closed in the green at 40,999.15, indicating a positive day of trading for the banking sector.

The BSE Sensex, which is a broad-based index comprising the top 30 stocks listed on the Bombay Stock Exchange (BSE), also had a positive day of trading on April 5, 2023. The Sensex opened higher than its previous closing price and increased by 0.99 percent over the course of the day. It closed in the green at a high of 59,689.31, indicating a significant rise in its value.

On April 5, 2023, the Indian stock market witnessed gains in eight of the thirteen major sectoral indexes. Financials, with a high weightage, recorded an increase of nearly 1%. IT, FMCG, and financial sector indexes all saw gains of above 1%, while PSU banks and auto companies experienced down.

Additionally, HDFC Bank, an index heavyweight, gained over 1.5% following the announcement of a 20.8% YoY increase in deposits to 18.84 trillion rupees as of March 31. The upstream oil companies also experienced a surge after the government reduced its windfall tax on crude oil to zero and halved it on diesel.

Looking ahead, market analysts are keenly anticipating the Reserve Bank of India’s rate decision on Thursday. A Reuters poll of economists suggests that the RBI is likely to increase rates by 25 basis points on Thursday and then adopt a wait-and-watch approach for the rest of the year.

Bank Nifty

The Nifty Banking sector had some gainers and some losers for the day.

The gainers included HDFC Bank with a 2.70% increase, Bandhan Bank with a 1.22% increase, Kotak Bank with a 0.35% increase, and ICICI Bank with a 0.14% increase. On the other hand, the biggest losers in the sector included Federal Bank with a 3.34% decline, Punjab National Bank with a 1.27% decline, IndusInd Bank with a 1.18% decline, Bank of Baroda with a 1.03% decline, and IDFC First Bank with a 0.99% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

Despite weaker performance by global markets, the Indian domestic market has demonstrated resilience. Strong quarterly financial results from banks and NBFCs, as well as the windfall tax cut, have contributed to this trend. Furthermore, recent data from the US has shown a softening of the labor market and a decline in factory orders. This has increased the likelihood of a pause in rate hikes by the Federal Reserve, which has also helped support the Indian market.

On April 5, the shares of Federal Bank witnessed a decline of over 3% after the bank reported a CASA ratio of 32.68%. This marks a decrease of 156 basis points from the previous quarter, and the bank’s best-ever CASA ratio of 36.94% was recorded in Q4 FY22. Unfortunately, the CASA ratio has been declining ever since.

The slowing growth rate of deposits in banks has raised concerns among market participants. As per India Ratings, while the system-level credit growth is expected to continue to outpace deposit growth in FY24, the lackluster pace of deposit accretion may restrict banks from providing loans, even as deposit rates are anticipated to increase further.

Advance Decline Ratio

Today, the advance-decline ratio was 2.94, and the market breadth was positive. The volatility index India Vix decreased by 1.37 percent to settle at 12.41 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1726
Decliners – 587
52Wk High – 63
52Wk Low – 15
High Band Hitters – 229
Low Band Hitters – 21
200d SMA – 17490
50d SMA – 17531
20d SMA – 17216

Top Gainers and Losers Stocks

The top gainers were LT (+4.09%), HDFC (+2.97%), HDFC Bank (+2.70%), ITC (+2.14%), and Hindustan Unilever (+1.89%).

The top losers were Eicher Motors (-2.14%), M&M (-1.35%), IndusInd Bank (-1.18%), NTPC (-1.01%), and Adani Enterprises (-0.93%).

Top Gainers and Losers Sector

The top gainers sectors were FMCG (+1.36%), IT (+1.20%), Financial Services (+1.14%), Pharma (+0.94%), and Consumer Durables (+0.79%).

The top losers sectors were Auto (-0.55%).

The Nifty Midcap 50 was down by 0.03 percent, while the Nifty Small Cap 50 was up by 0.48 percent on the day.

The Nifty Midcap 50 index currently closed at 8,495.55, while the Nifty Small Cap 50 index currently closed at 4,144.25.

SECTORS – NOTABLE ACTION
FMCG +1.36%
IT +1.20%
FINANCIAL SERVICES +1.14%
AUTO -0.55%

Stocks Ban List

The Securities and Exchange Board of India (SEBI) Futures and Options (F&O) ban list has not included any stocks on the ban list for today.

A stock enters the Ban List if its MWPL is above 95%. Implying that, Ban List shows the Futures and Options (FnO ) stocks whose combined open interest in all FnO contracts for a given period crosses 95% of Market-Wide Position Limit.