Indian Benchmark Indices Set New Records Despite Market Swings

At the close, the Nifty 50 was at 22,514.65 up by 0.36%

The NSE Nifty 50 commenced its trading day on a positive note, marking a rise of 0.36 percent and ultimately closing in the green. Surpassing the 22,500 mark, the Indian benchmark indices soared to record levels on April 4, though faced with fluctuations throughout the trading session, particularly on the eve of the Reserve Bank of India (RBI) policy announcement.

The Nifty index experienced a gap-up opening at record highs, reaching 22,619, but relinquished these gains shortly after, oscillating between gains and losses throughout the day. Despite the initial setback, the index rallied with support from heavyweight sectors, notably banking and IT, allowing it to recover losses and conclude at 22,514.65.

Market movements were characterized by extreme volatility, witnessing a swift decline following the session’s high point. However, selected IT and banking counters spearheaded the index’s recovery, resulting in a positive close with a gain of 80 points.

While midcaps marginally underperformed, small caps mirrored the frontline index’s performance, indicating robust market resilience. Investor sentiment remained cautious amidst profit-taking activities and anticipation of the RBI’s monetary policy decision, expected to maintain the repo rate status quo amid prevailing inflation concerns.

Furthermore, market breadth displayed a positive trend within a narrow trading range, with attention focused on the RBI’s upcoming announcement. Anticipation of decent Q4 results in select sectors such as banks, alongside optimistic exports based on composite PMI data, contributed to market optimism amidst uncertainties.

The Nifty 50’s trajectory depicted a U-shaped pattern on Thursday, reflecting healthy gains despite market turbulence. As investors await the RBI’s policy announcement, continued vigilance and strategic positioning remain essential in navigating the evolving market landscape.

Bank Nifty: Up by 0.92%

The Bank Nifty initiated the trading day on a positive note, with a green opening and a notable increase of 0.92 percent. Eventually, it closed in the green zone at 48,060.80, reflecting robust performance and investor confidence in the banking sector. Similarly, the BSE Sensex exhibited a positive trend, recording a gain of 0.47 percent and concluding the trading session in the green at a high of 74,227.63.

In the sectorial front, the Information Technology (IT) sector has seen a notable uptick, gaining 1.08%. Noteworthy performers include Tech Mahindra Ltd., which surged by 1.83%, and Mphasis Ltd., posting gains of 1.60%.

Conversely, the Oil & Gas sector experienced a downturn, registering a decline of 1.37%. Hindustan Petroleum Corporation Ltd. saw a significant drop of -2.83%, while Petronet LNG Ltd. also faced losses, recording a decline of -2.33%.

FIIs/FPIs were net sellers, with a buy value of Rs. 13,478.62 crore and a sale value of Rs. 14,615.09 crore, resulting in a net value of -Rs. 1,136.47 crore. This indicates a higher volume of sales compared to purchases by foreign investors.

Conversely, DIIs engaged in both buying and selling activities, with a buy value of Rs. 12,218.87 crore and a sale value of Rs. 13,111.98 crore, resulting in a net value of -Rs. 893.11 crore. Similarly, DIIs demonstrated a higher volume of sales relative to purchases in the market.

Bank Nifty

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

The gainers included Bandhan Bank with a 4.20% increase, HDFC Bank with a 3.15% increase, AU Bank with a 2.86% increase, IDFC First Bank with a 1.53% increase, and Kotak Bank with a 1.00% increase. On the other hand, the biggest losers in the sector included Bank of Baroda with a 1.66% decline, State Bank of India with a 1.33% decline, Federal Bank with a 1.13% decline. These results suggest that most of the banking stocks performed better for the day.

Rupee Recovers Slightly Against US Dollar Amid Market Optimism

The Indian rupee showed signs of recovery on Thursday, gaining 9 paise to close at 83.44 against the US dollar. This positive trajectory was attributed to a buoyant performance in domestic markets and favorable macroeconomic data. Additionally, the weakened US dollar across international markets contributed to the strengthening of the domestic unit, offering further support.

However, challenges persist as elevated crude oil prices and continued foreign fund outflows restrained the rupee’s ascent. The looming decision from the Reserve Bank’s rate-setting panel, scheduled for announcement on Friday, also induced caution among market participants.

Throughout the trading day, the rupee fluctuated between an intra-day high of 83.42 and a low of 83.46 against the greenback before settling at 83.44, marking a notable increase from its previous close of 83.53 on Wednesday.

In the global arena, the dollar index, reflecting the dollar’s performance against a basket of six currencies, experienced a 0.16% decline, standing at 104.08. This decline was influenced by disappointing services PMI from the US and dovish sentiments expressed by the Federal Reserve.

Meanwhile, Brent crude futures, the international oil benchmark, saw a marginal decrease of 0.13%, reaching $89.23 per barrel. Despite these challenges, the rupee’s resilience underscores the importance of monitoring both domestic and global factors in shaping currency movements and market sentiment. Investors should remain vigilant amidst evolving market dynamics to make informed decisions.

Stocks Highlights

HDFC Bank Ltd. witnessed a notable surge in its share price, climbing by 3.15% from its previous close of Rs 1,482.30 to reach Rs 1,529.00. This uptick reflects investor confidence in the bank’s performance amidst prevailing market conditions. Notably, only 1.01% of trading sessions in the last 19 years saw intraday gains exceeding 5%, underscoring the significance of this rise.

In terms of its loan book growth, HDFC Bank Ltd. demonstrated impressive results, reporting a year-on-year increase of 16.96% in its advances. This growth outpaces its 5-year compound annual growth rate (CAGR) of 13.84%, signaling robust performance and strategic expansion.

Furthermore, the bank’s operating cash flow of Rs 20,813.7 crore stands at 0.45 times its reported net profit of Rs 45,997.11 crore, indicating a healthy financial position and effective cash management.

On the other hand, Oil And Natural Gas Corporation Ltd. (ONGC) experienced a decline in its share price, dropping by -2.12% from its previous close of Rs 275.35 to Rs 269.50. Despite this setback, ONGC’s performance has shown intermittent strength, with only 1.34% of trading sessions in the last 19 years witnessing intraday gains exceeding 5%.

Additionally, key financial indicators reveal ONGC’s prudent expense management, with 1.25% of operating revenues allocated towards interest expenses and 2.36% towards employee costs in the fiscal year ending March 31, 2023.

Moreover, bullish signals are evident with the appearance of a daily MACD crossover on April 2, 2024, suggesting potential opportunities for investors. ONGC’s strong stock returns, surpassing those of the Nifty 100 index, further underscore its resilience amidst market fluctuations.

Advance Decline Ratio

Today, the advance-decline ratio was 1.60, and the market breadth was positive. The volatility index India Vix decreased by 1.34 percent to settle at 11.22 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1579
Decliners – 984
52Wk High –  134
52Wk Low – 1
High Band Hitters – 259
Low Band Hitters – 36
200d SMA – 20475
50d SMA – 22027
20d SMA – 22215

Top Gainers and Losers Stocks

The top gainers were HDFC Bank (+3.15%), Titan (+1.95%), Tech Mahindra (+1.83%), Eicher Motors (+1.80%), and Asian Paint (+1.80%).

The top losers were ONGC (-2.12%), Adani Ports (-2.00%), Shriram Finance (-1.80%), BPCL (-1.72%), and Bharti Airtel (-1.48%).

Top Gainers and Losers Sector

The top gainers sector were IT (+1.08%), Financial Services (+0.83%), Auto (+0.45%), Consumer Durables (+0.39%).

The top losers sector were Oil & Gas (-1.37%), FMCG (-0.43%), Pharma (-0.15%), Media (-0.11%), and Metal (-0.08%).

SECTORS – NOTABLE ACTION
IT +1.08%
FINANCIAL SERVICES +0.83%
AUTO +0.45%
OIL & GAS -1.37%
FMCG -0.43%
PHARMA -0.15%

Stocks Ban List

(SEBI) F&O ban list (SAIL open at +149.70 and close at -145.95), (HINDCOPPER open at +321.00 and close at +313.95), and (ZEEL open at -153.90 and close at +153.05) 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.

INDIACEM, PEL, NATIONALUM, and BANDHANBNK stocks has the possibilities of entrance in the ban list.

Daily Pivots

As per the above pivots data, 22300 to 22700 is the Nifty 50 trading range.

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