Fed’s Decision Sparks Market Rejoice, Nifty Surges Above 19,100

At the close, the Nifty 50 was at 19,133.25 up by 0.76%

The NSE Nifty 50 made a strong start today, opening in the green and gaining 0.76% before closing on a positive note, with Nifty surpassing the 19,100 mark. This turnaround comes after the Indian benchmark indices rebounded from losses in the previous two sessions. Several positive factors contributed to this resurgence.

One significant factor was the US Federal Reserve’s decision not to raise interest rates, coupled with dovish commentary, which provided a pause that buoyed both global and domestic market sentiment. Additionally, the decline in US bond yields suggests an extended delay in interest rate hikes, a favorable condition for the market.

Domestically, the macroeconomic landscape remains positive. Robust auto sales figures, a surge in GST collections, strong factory data, and better-than-expected Q2 earnings results have bolstered investor confidence.

The market’s trajectory was underpinned by positive global cues, resulting in a gap-up start for Nifty, followed by a steady and positive trend throughout the session. Investors witnessed a broad-based rally, with sectors like realty, metal, and energy emerging as top performers. This rebound, combined with a resurgence in the broader indices, added to the overall positivity in the market.

Bank Nifty: Up by 0.74%

The Bank Nifty exhibited a strong performance, commencing the day in positive territory and securing a 0.74% gain during the trading session. It closed at 43,017.20, underscoring its resilience and market strength. In a similar vein, the BSE Sensex demonstrated stability and delivered a significant 0.77% gain, reaching a high of 64,080.90.

Turning to the sectorial landscape, the real estate sector stood out with substantial gains, registering an impressive 2.52% increase across the board. This upswing can be attributed to the outstanding performances of key players, including Macrotech Developers Ltd., which achieved a substantial 5.35% gain, and Oberoi Realty Ltd., surging by 4.05%. The Phoenix Mills Ltd. also made noteworthy strides, advancing by 3.97%.

Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI) were net sellers in the Indian market, with a sale value of Rs. 9,118.46 crore and a buy value of Rs. 7,857.27 crore. This resulted in a net value of -Rs. 1,261.19 crore, indicating a net outflow of funds.

Conversely, Domestic Institutional Investors (DII) displayed a positive trading sentiment, as their buy value amounted to Rs. 7,012.69 crore, while their sale value stood at Rs. 5,632.54 crore. This translated to a net value of Rs. 1,380.15 crore, signifying a net inflow of funds into the market.

Bank Nifty

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

The gainers included Bank of Baroda with a 2.20% increase, IndusInd Bank with a 2.10% increase, Punjab National Bank with a 2.06% increase, IDFC First Bank with a 1.73% increase, and Axis Bank with a 1.10% increase. On the other hand, the biggest losers in the sector included AU Bank with a 0.47% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Indian Rupee Shows Resilience Amidst Fed’s Dovish Stance

The Indian rupee displayed stability and closed 2 paise higher at 83.26 against the US dollar, benefiting from the US Federal Reserve’s dovish stance during its recent policy meeting. This development eased the American currency’s ascent from elevated levels, providing some relief for the rupee.

Positive sentiment in the domestic equity markets and risk-on attitudes further bolstered the local currency. The Fed’s decision to maintain interest rates and the reassuring outlook from Chairman Jerome Powell on the economy’s soft landing contributed to the dollar index softening, with the 10-year bond yield falling to 4.70.

The rupee’s trading day saw a range-bound pattern, reaching its highest point at 83.19 and its lowest at 83.27 against the US dollar. Notably, this comes after the rupee had previously settled at 83.28 against the greenback, having touched an all-time low of 83.35 during intraday trading.

Despite the Fed’s dovish tone, the US dollar maintained strength against the rupee, partially due to External Commercial Borrowing (ECB) payments, oil bids, and foreign portfolio investment outflows. The dollar index stood at 106.20, while Asian currencies made gains in response to these market dynamics. Investors will continue to closely monitor these trends and the rupee’s performance in the coming sessions.

Buzzing

Britannia Industries Ltd. exhibited a strong performance in the market, with its share price surging by 2.97% from the previous close of Rs 4,397.30 to reach Rs 4,528.00. The company’s annual revenue growth of 15.02% has outperformed its 3-year CAGR of 11.49%, indicating robust financial performance. Moreover, Britannia Industries delivered an impressive Return on Equity (ROE) of 65.69% for the year ending 31 Mar, 2023, surpassing its 5-year average of 45.21%. These indicators suggest that the company is on a growth trajectory and is creating value for its shareholders.

On the other hand, Hero MotoCorp Ltd. experienced a slight dip in its share price, declining by -1.03% from its previous close of Rs 3,092.45 to Rs 3,060.55. A sell signal was observed with a 20-day moving crossover on Oct 31, 2023, which has historically led to an average price decline of -2.14% within 7 days. However, the company’s annual revenue growth of 15.35% outperformed its 3-year CAGR of 4.97%, indicating positive revenue trends. Notably, Hero MotoCorp has maintained efficient cost management, with minimal spending on interest expenses and employee costs, highlighting its commitment to financial prudence.

Advance Decline Ratio

Today, the advance-decline ratio was 2.22, and the market breadth was positive. The volatility index India Vix decreased by 8.07 percent to settle at 11.08 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1670
Decliners – 753
52Wk High –  70
52Wk Low – 18
High Band Hitters – 119
Low Band Hitters – 45
200d SMA – 18635
50d SMA – 19564
20d SMA – 19440

Top Gainers and Losers Stocks

The top gainers were Britannia (+2.97%), Hindalco (+2.68%), IndusInd Bank (+2.10%), Apollo Hosptials (+1.95%), and Eicher Motors (+1.76%).

The top losers were Hero MotoCorp (-1.03%), Bajaj Auto (-0.47%), HDFC Life (-0.17%), ONGC (-0.16%), and Adani Enterprises (-0.15%).

Top Gainers and Losers Sector

The top gainers sector were Realty (+2.52%), Metal (+1.40%), Oil & Gas (+1.15%), FMCG (+0.98%), and Consumer Durables (+0.96%).

SECTORS – NOTABLE ACTION
REALTY +2.52%
METAL +1.40%
OIL & GAS +1.15%

Stocks Ban List

(SEBI) F&O ban list (GNFC open at +697.30 and close at +697.75) are not currently on the stock exchange.

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.

MANAPPURAM and INDIACEM stocks has the possibilities of enterance in the ban list.

Daily Pivots

As per the above pivots data, 19060 to 19200 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Market Opens Negative, Extends Losses Across Sectors
Volatile Session Ends on a Sour Note for Indian Benchmark Indices
Mixed Global Cues Impact Market Opening, But Heavyweights Drive Mid-Session Recovery

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