Buying Spree and Heavyweights Propel Indian Equity Indices to a Strong Start in Budget Week

At the close, the Nifty 50 was at 21,737.60 up by 1.80%

The NSE Nifty 50 kicked off the week on a high note, surging by an impressive 1.80 percent and currently resting comfortably above the 21700 mark. This bullish trend was notably influenced by encouraging signals from Asian markets, setting the stage for heightened market activity in the upcoming days.

Investors embraced the favorable global sentiment, propelling both Nifty and Sensex to nearly 2 percent gains. The recent market correction provided a strategic entry point for investors to acquire quality stocks at balanced valuations. This widespread buying spree extended across various sectors and heavyweight stocks, affirming the market’s resilience.

Market confidence remains unwavering as anticipation builds around the Interim Budget and the US Federal Reserve’s monetary policy meeting. The latter, a crucial event on the global economic stage, is expected to impact market dynamics and potentially introduce volatility. As investors eagerly await insights into future rate paths, staying informed about global cues and key events is paramount in navigating the dynamic market landscape.

In this dynamic environment, strategic investors are eyeing the Interim Budget and FED policy meeting as potential catalysts for market movements. As the domestic market rebounds, aligning investment strategies with evolving global scenarios becomes essential for making informed decisions in today’s ever-changing financial landscape.

Bank Nifty: Up by 1.28%

The Bank Nifty kicked off the trading day with a positive tone, gaining a noteworthy 1.28 percent and concluding at an impressive 45,442.35. Simultaneously, the BSE Sensex showcased resilience, surging by 1.76 percent and closing at a robust 71,941.57, indicating a bullish trend in the market.

In the sectorial landscape, the Oil & Gas sector emerged as a standout performer, witnessing a substantial gain of 5.18%. Noteworthy performances included Castrol India Ltd., securing an impressive 9.08% gain, and Oil & Natural Gas Corporation Ltd., with a commendable 8.89% increase. Conversely, the FMCG sector experienced a marginal decline of 0.14%, with Radico Khaitan Ltd. facing a downturn of -2.61%, and United Breweries Ltd. following suit with a loss of -2.24%.

Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI) engaged in a closely contested trading session, with a buy value of Rs. 19,030.42 crore and a sale value of Rs. 18,920.41 crore, resulting in a delicate balance reflected in the net value of Rs. 110.01 crore.

On the domestic front, Domestic Institutional Investors (DII) displayed robust transactions, recording a buy value of Rs. 14,592.44 crore and a sale value of Rs. 11,371.10 crore. The net value for DIIs concluded impressively at Rs. 3,221.34 crore, underscoring significant net positive investment in the domestic market. Investors remain watchful for further market dynamics and potential shifts in the coming sessions.

Bank Nifty

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

The gainers included IDFC First Bank with a 4.31% increase, Bank of Baroda with a 3.24% increase, Kotak Bank with a 3.23% increase, Punjab National Bank with a 2.78% increase, and Federal Bank with a 2.57% increase. On the other hand, the biggest losers in the sector included AU Bank with a 11.67% decline. These results suggest that most of the banking stocks performed better for the day.

Rupee’s Modest Decline Amid Global Factors and Domestic Equities

The Indian rupee experienced a marginal depreciation of 3 paise, closing at 83.14 pro against the US dollar on Monday. This decline was attributed to heightened crude oil prices in international markets and increased dollar demand from importers, negatively impacting investor sentiments. Despite the support from positive domestic equities, persistent foreign fund outflows constrained the rupee’s movement, maintaining a narrow trading range.

Opening at 83.14 against the US dollar at the interbank foreign exchange market, the rupee fluctuated between an intraday high of 83.13 and a low of 83.15 during the day. Ultimately settling at 83.14 pro, the local unit concluded the day with a modest 3 paise decline from its previous close.

Amidst higher crude oil prices influencing risk sentiment, the rupee’s trajectory is anticipated to be influenced by geopolitical uncertainties and the Federal Reserve’s stance on rate cuts. The recent range-bound trade saw a marginal rise of 1 paisa on Thursday, closing at 83.11 against the US dollar.

While the dollar index exhibited a 0.12% rise to 103.55, Brent crude futures, the global oil benchmark, traded lower by 0.41% at $83.21 per barrel. As investors navigate through these global and domestic factors, the forex markets await cues from the upcoming Federal Reserve policy decision, which is poised to play a pivotal role in determining the rupee’s direction in the near term.

Stocks Highlights

Reliance Industries Ltd. witnessed a notable surge, with its share price rising by 6.80% to reach Rs 2,890.10 from the previous close of Rs 2,706.15. The company’s impressive annual revenue growth of 24.43% outpaced its 3-year CAGR of 13.22%, reflecting robust financial performance. In the fiscal year ending on March 31, 2023, Reliance allocated 2.23% of its operating revenues to interest expenses and 2.83% to employee costs.

Conversely, ITC Ltd. experienced a downturn, with its share price decreasing by -1.53% to reach Rs 448.70 from the previous close of Rs 455.65. Despite this, the company’s annual revenue growth of 16.66% surpassed its 3-year CAGR of 11.8%. In the fiscal year ending on March 31, 2023, ITC allocated less than 1% of its operating revenues to interest expenses and 8.09% to employee costs.

Advance Decline Ratio

Today, the advance-decline ratio was 1.40, and the market breadth was positive. The volatility index India Vix increased by 13.09 percent to settle at 15.68 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1480
Decliners – 1060
52Wk High –  259
52Wk Low – 15
High Band Hitters – 199
Low Band Hitters – 63
200d SMA – 19584
50d SMA – 21090
20d SMA – 21633

Top Gainers and Losers Stocks

The top gainers were ONGC (+8.89%), Reliance (+6.80%), Coal India (+6.20%), Adani Enterprises (+5.79%), and Adani Ports (+4.20%).

The top losers were Cipla (-2.05%), ITC (-1.53%), Infosys (-1.08%), LTIM (-0.78%), and Bajaj Auto (-0.43%).

Top Gainers and Losers Sector

The top gainers sector were Oil & Gas (+5.18%), Consumer Durables (+1.72%), Auto (+1.68%), Metal (+1.61%), and Financial Services (+1.56%).

The top losers sector were FMCG (-0.14%).

SECTORS – NOTABLE ACTION
OIL & GAS +5.18%
CONSUMER DURABLES +1.72%
AUTO +1.68%
FMCG -0.14%

Stocks Ban List

No stocks have been listed in the ban list by (SEBI) F&O 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.

Daily Pivots

As per the above pivots data, 21500 to 21900 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty Drops as Banks and IT Stocks Face Pressure FII Selling and US Rate Cut Hopes Fade
Indian Benchmark Indices Rebound, Erasing Previous Losses in Volatile Trading
Sector-Wide Selling Impacts Indian Equity Market Nifty50 Down 1.5%

This article is only for educational purposes and is not an investment advice.